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2012-07-11 BudgetVIE IDL[ANIS,:-1.-- J AMENDED NOTICE OF SPECIAL MEETINGS MERIDIAN CITY COUNCIL Mayor Tammy de Weerd City Council Members: Keith Bird Brad Hoaglun Charles Rountree David Zaremba NOTICE IS HEREBY GIVEN that the City Council of the City of Meridian will hold Special Meetings / Workshops in the City Council Chambers at Meridian City Hall, 33 East Broadway Avenue, Meridian, Idaho, on Tuesday, July 10th at 8:00 a.m. and Wednesday, July 11th at 10:00 a.m. The Meridian City Council will be receiving and discussing preliminary budgets and presentations from each specific department of the City of Meridian towards approving a tentative budget. DATED this 25th day of June, 2012. Meridian City Council Special Meetings — July 10-11, 2012 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearings, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. CITY OF MERIDIAN CITY COUNCIL MEETING Wednesday, July 11, 2012 at 10:00 a.m. City Council Chambers 33 East Broadway Avenue, Meridian, Idaho 1. Roll -call Attendance: X David Zaremba X Brad Hoaglun X Charlie Rountree X Keith Bird X Mayor Tammy de Weerd 2. Adoption of the Agenda Adopted 3. City of Meridian FY2013 Budget Meeting Hearings Break 11:13-11:20 a.m. Lunch Break 11:55-12:10 p.m. Break 1:01 p.m. -1:12 p.m. Motion approved to set the preliminary budget Adjourned at 1:38 p.m. Meridian City Council Special Meeting Agenda — Tuesday July 11, 2012 Page 1 of 1 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearing, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. Meridian City Council Budget Meeting July 11, 2012 A special meeting of the Meridian City Council was called to order at 10:00 a.m., Wedesday, July 11, 2012, by Mayor Tammy de Weerd. Members Present: Mayor Tammy de Weerd, David Zaremba, Keith Bird, Brad Hoaglun and Charlie Rountree. Others Present: Bill Nary, Jaycee Holman, Stacey Kildenmann, Todd Lavoie, Bruce Chatterton, Jeff Lavey, Mar, Niemeyer, Mollie Mangerich, and Dean Willis. Item 1: Roll-call Attendance: Roll call. X David Zaremba X Brad Hoaglun X Charlie Rountree X Keith Bird X Mayor Tammy de Weerd De Weerd: I will go ahead and get today's meeting started. For the record, it is Wednesday, July 11th. It's 10:00 o'clock. We will start with roll attendance, Madam Clerk. Item 2: Adoption of the Agenda De Weerd: Item No. 2 is adoption of the agenda. Hoaglun: Madam Mayor? De Weerd; Mr. Hoaglun. Hoaglun: I move adoption of the special meeting agenda as printed. Rountree: Second. De Weerd: I have a motion and a second to adopt the agenda as printed. All those in favor say aye. All ayes. Motion carried. MOTION CARRIED: ALL AYES. Item 3: City of Meridian FY2013 Budget Meeting Hearings De Weerd: Item 3 is our budget hearing. Today we have Enterprise Fund. Yea. That was heartfelt, by the way. Wastewater Department Meridian City Council Budget Hearing July 11 , 2012 Page 2 of 57 Barry: Well, thank you, Madam Mayor, Members of the Council. We have a very fun and exciting budget presentation for you this afternoon -- or, actually, this morning I should say. No. It may not be all of that, but we do have a good budget presentation, I think, for you. So, what I'd like to do is, first of all, recognize those who helped put our budget together this year. Obviously, this is an endeavor that involves quite a number of people, including yourselves, of course. But the Mayor, our Council liaison David Zaremba, our certainly Finance staff, most of my staff that are in the audience today have had some sort of part in putting this budget together, as well as I want to give special recognition to Amber Looney and also John McCormick, who were instrumental as well in working through the last several months to help reconcile and put together our budget as represented for the department across all divisions. Yeah. We should applaud. It seems a little odd, but -- nevertheless. This is the -- Kilchenmann: That's applause for Amber and John for putting up with us -- for putting up with Finance for several weeks. Barry: That's true. Finance has been great this year. I mean we have really over the last several years in particular strengthened our working relationship with the Finance Department and we are grateful for their contributions and assistance in all of this and I think our relationship through John and Amber and Stacy and her staff have been markedly improved. So, we are grateful for that. This is the agenda we have for you today. I will talk briefly about the background of our budget, budget and economic trends and how they relate to our budget, our approach, and the impact of our budget for this fiscal year. And, then, we will get specifically into the enhancements that we are requesting for this year through a number of different divisions. We will wrap up with a quick budget summary and, then, open it up for any questions, comments, or concerns you might have. This slide is really more for those in the audience, which we have very few of today, other than Public Works staff. Or those watching at home, right, the differences between the General Fund and the Enterprise Fund. I won't go into detail, because you all know that, other than to say as you all know the Enterprise Fund is not funded through taxes or revenue sharing or those sorts of things, it's primarily funded through base and user fees and that is to support the operations, maintenance, and capital construction administration and engineering components of the utilities. So, let's talk briefly about budget and economic trends. This is a -- this slide shows assessment revenues and as you can see no surprise with regard to the economy and how the economy has been unfolding for the last several years back to 2006. One of the heights of our growth as a city, you know, we were collecting on the order of close to ten million dollars in assessment revenues. These are hook-up fees for water and sewer connection. That has dropped to around 2.8 million was the lowest and now we see the -- sort of the bottoming out and a turning upward, if you will, although slight, we do project that we will be increasing our overall assessments by maybe 400 to 500 thousand dollars this next fiscal year. One thing that's important to note about this slide is it does not show how many ready-to-build-on parcels or lots we have in the city. We have just over 2,000 ready-to-build-on lots and what's important about that number is that that is uncollected revenue that's sitting in the ground right now on the order of over nine million dollars. So, as these lots get purchased and building permits get drawn, we Meridian City Council Budget Hearing July 11 , 2012 Page 3 of 57 will see that assessment revenue come back as, essentially, monies that we don't have to -- we don't have to make any initial investment in. These will come straight back to us. So, hopefully, as the economy continues to improve we will see more revenue on that front. Nevertheless, despite what's going on in assessments, we have seen continued and steady and stable growth in the utilities, both on the water and the wastewater side. This slide shows account growth both in water and in sewer back to 2007 and as you can see it's very stable. What this shows is about two percent growth per year in the utility. We can also see this growth and we plotted it against economic indicators here, the Dow Jones Industrial Average. I have shown this slide several years ago when we were talking about the fact that, essentially, water and sewer services aren't really that impacted, if you will, by some of the economic conditions that are out there. I mean they are to some degree, but this slide does, again, show that we have been selling more and more water over and through these economic times. You see the first one back in October -- the big dip October 1, October 2, that was the dot com area and, then, of course, recently October 2008 up until, essentially, October 2010 we had that big valley there. But what you see is steady growth in water, gallons distributed versus the economic climate and the same there is true when you plat that against sewer or effluent slow growth as well. So, we know that the utility is expanding and with expansion comes new challenges, not just in the continued growth, but with the required investments to plan our infrastructure and to improve that infrastructure and incorporate technologies, particularly requisite of impending regulatory changes and so we will talk briefly about that today in our presentation. You have seen last October, this is just a quick snapshot again updated to June of this year. Our financial dashboard, if you will. I'm pleased to report that in just about every sector -- you know, we have been doing this for years now -- just about every sector we have been able to show marked improvement across the financial dashboard, with the minor exception of annual system reinvestment. This is depreciation. And this is an area that we still need to focus on, but it's not something that we should be alarmed or overly concerned about right now, because most of our infrastructure as a community is within 25 to 30 years of age and so we do have a little bit of time to work through that and we will be working with the Finance Department to set that part up in the model and to also continue modifying the way that we finance our replacements and repairs. So, let's talk about our budget approach just really quickly. Across the Department we did incorporate a number of philosophies and approaches in the generation of our budget. I wanted to walk you through these just very quickly. First of all, absolutely it's essential that we meet regulatory and safety requirements. We also want to preserve product and service quality area and delivery levels. In addition -- oops. I got -- here we go. There we go. We want to adequately protect and maintain infrastructure, use dollars to appropriately fund staff training and the utilization and incorporation of technological resources. Want to be conscientious of rates and I will talk with you about how this budget impacts our rates and vice-versa in just a few slides, but we do want to bring stability to what we do with regard to the rates. We are continuing to use a just in time capital project financing model and Warren with speak to you briefly about what that's done in engineering and how that has impacted what we have been able to do in leveraging more projects with the same dollars and what that's also done is our carry forward. We also wanted to incorporate performance based budgeting principles. You Meridian City Council Budget Hearing July 11 , 2012 Page 4 of 57 will see that today as well. And we wanted to also be very measured about our expansion. We want to be very strategic in our expansion of strategic assets and infrastructure. We have given apresentation -- actually, Tiffany gave a presentation a couple of months back on the wastewater division, building improvements -- the facility plant improvements that we have out there. We are very measured about these kinds of things. We also did set aside as appreciation emergency operational and regulatory reserves. We try to reduce costs where ever we could. We still understand the economy, we still understand the pressures of the economy and the pressures at home for people to cover essential services, like water and sewer. So, we have been conscientious of that. We wanted to maximize our operational efficiencies where ever we could and that has helped bring about some improvements in reductions of cost. We want to ask only for what's needed. And you will see in our budget this year, as in years past, you won't see a bunch of wants. You will see essential needs for the most part. We also want to empower our budget stewards and you will hear from them today and these are the people -- men and woman that are helping to bring about greater accountability and improve budget performance and execution rates across the department. You will hear from them in the presentation of some of their enhancements. So, we are using this fund management strategy. I have talked with you about this before, but what this shows, essentially, is the save-spend model. We initially are collecting more revenues that are -- we have set aside and, then, we eventually intend to draw on those and this is, of course, in alignment with the pay as you go model and if you notice here at the bottom of the screen I did put what are capital improvement dollars over five year increments. This is the last five years, the upcoming five years, and the five years after that and what you will see is just as we have predicted, we are going to be increasing the amount of money that we need for capital improvements going forward. A lot of this is regulatorily driven. A lot of it is actually upgrades, like facility plant improvements, as well as the treatment plant. And also the incorporation of new technologies, like water treatment, which is something we have talked with you in the past about and we are also going to propose as an enhancement for this year. This is what the budget construction or capital looks like for at least the last four years. As you can see we are beginning to spend more and that trend will continue into the foreseeable future. The good news is we have planned for this years ago and with that planning we have been able to stabilize rates and not increase the rates, because we are working under the save-spend model. This shows our budget detail with regard to enhancement history all the way back to 2007. The numbers inside the bars are the number of enhancements we have and, then, the bars themselves represent the total dollar amount of those enhancements and you can see we have a pretty significant increase proposed for fiscal year '13. Nevertheless, we were able to, in our operations, maintenance, and personnel line items reduce overall operating costs and this has been done across the board. You can see Public Works administration, that line item -- or that fund, rather, we are drawing down 18 percent this year. In water we are going to see a reduction in operating of about three and a half percent, 8.8 percent is wastewater. MUBs is increasing slightly to point -- or half a percent if you will and so the total across the entire Enterprise Fund is a reduction close to ten percent, 9.7 percent. It's probably a good time to remind you that last year we were able to reduce operating expenses by 17 percent. So, in the last two years we Meridian City Council Budget Hearing July 11 , 2012 Page 5 of 57 have seen a reduction in operational costs through proposal of both this last year's budget and this year's budget of over 25 percent and we are pretty pleased with that. Nevertheless, we are an expensive utility. We have a lot of expensive equipment and infrastructure and it takes a lot to keep the utility running. But in summary this is what the fund balances looks like. Now, two numbers were transmitted to you by the Finance Department. This is one of the numbers and this shows that we are expecting to receive around close to 24 million dollars of revenue and that our budget is set for around 29 million dollars, so that shows about a six million dollar deficit, if you will, as it relates to revenues. But I will remind you that the majority of that, actually 6.3 million of that is a depreciation set aside, which we don't draw on and we have talked about this in the past. So, the reality is that our budget looks really like this when we talk about true expenses. We will be taking in close to about 24 million in revenue as projected and we will be spending almost 23 million. So, we do expect to post about a million dollars of positive gains to the fund and that's important to keep in mind as we go. So, we do have a balanced budget as it relates to true and actual expenditures, because that depreciation set aside is just that, it's a set aside that we don't draw on. Okay. So, very quickly how does our budget this year relate to the rate model? I always like to come back to the rate model, because we set rates or we review them in February or March. As you know this year we did not need a rate increase, did not recommend, and as we have talked in the past, our rates are stabilized and using this model, as we have in the past, we have come out of that big swing down and now we are seeing more or less some pretty stable projections going forward. Our reserves are fully funded. That was a request that you made of us several years ago, so we do have those four reserves fully set aside. We are going to begin drawing on the regulatory reserve. We did talk about that a few months ago for the lab building and other components that are regulatorily driven. But, again, that's the reason we plan and we save in advance for those types of infrastructure. So, in summary, we do want to just touch on the fact that our budget is consistent with the rate model. We do have an aggressive management of our budget and we have emphasized reducing O and M costs, again, almost ten percent in this year's budget. We focused on improving our execution rate, both in operations and in capital construction. You will hear a little bit about the capital construction here in just a few minutes and, then, we have considered regulatory requirements in this budget. We know that our NPDES permit is going to likely be renewed here probably for the next 12 to 18 months. We are next on the list. We have been told that we will probably be consulted later this year. So, we do need to be prepared for what comes of that. We have also considered the depreciation eligible assets and on making improvements and will continue to incorporate those improvements as we go forward. And, lastly, as we are continuing to utilize continuous process improvements across the department to try to drive lower costs and better efficiencies. That's all I had to share with you as a primer for the start of our budget. I'm going to turn it over to our budget stewards and each of them will come up and present various enhancements that they have. I know this can sometimes be cumbersome for you. On the one hand it's nice that you don't have to listen to one person the entire time. On the other hand, it can be a little bit disruptive as we change different staff members in and out. But I think it's important for our staff members to meet with you and talk with you about what it is that they are doing and share with you Meridian City Council Budget Hearing July 11 , 2012 Page 6 of 57 the important work that they are involved in and it also is a nice opportunity for them to get this kind of experience and -- and prepare them for whatever may come in their futures with regard to careers. So, with that I will turn it over to Public Works administration division, who is going to be represented by John McCormick and then -- we have got a couple of enhancements there. We will turn it over to Mollie Mangerich, our environmental division manager, and she will talk about a couple environmental division enhancements and, then, we will move on to engineering and operations after that. Thank you very much. McCormick: Okay. Madam Mayor, Members of the Council, good morning. I will be speaking to three announcements -- or three enhancements this morning and, then, we will turn it over to Mollie for the remainder of this portion of the presentation. The first enhancement is for an administrative support person to provide administrative support to the environmental services division, the construction division, and the Public Works division specifically in the area of records retention for Public Works as a department and, then, for helping provide assistance to the environmental services group for their policies and programs, as well as providing administrative support for the construction inspection activities that is becoming a much larger portion of their responsibilities. This position is funded with two part-time positions that are currently in the budget, which we are not going to use and so we are proposing to reallocate those funds, it's apart-time mechanic and apart-time pretreatment inspector, and allocate those funds to fund this particular position and this will, then, give us the support that we need to achieve the goals and requirements around the records retention policies, as well as providing ongoing support that's needed by these other two divisions. Some of that support was lost when we did the consolidation of the development services group with planning and created the community development group. They occupied the area downstairs. We moved the environmental services area upstairs and, of course, there is no one there to provide any interface with outside departments or the public as they interact with those departments. The next position is a safety administrator position. We have a very robust safety program in Public Works. We have a number of our personnel that are exposed to hazards as they work in the field or work in the operations at the wastewater treatment plant or the water facility, but we also have people that are in the office area that also go out to the field to do work and this enhancement is to hire afull-time person in order to manage and direct those safety efforts to insure that we are in compliance with our policies and our requirements around that, that we have a good strong program integrity as it relates to training, that people have the standard training that is needed in order for them to do their job safety and to be aware of the hazards that exist in their work environment. Currently we provide these support services through an out sourcer, who comes with a cost and we are proposing to partially fund this position with eliminating those costs that we get -- that we pay to the out sourcer and, then, also the rest of the funding would come through improvements in our budget and other areas and some of that will become evident as you hear other presentations as to where that funding would come from. This person, then, would be also responsible for not only directing the safety program, but also directing the safety committee, which meets monthly, is responsible for the health and safety manual that they were involved in producing and this is the person that would be engaged in the implementation of the Meridian City Council Budget Hearing July 11 , 2012 Page 7 of 57 policies and practices and procedures associated with that health and safety manual. Then, finally, we have a fairly large training conference room upstairs in the Public Works Department. It is not adequately outfitted at this time, never has been, with audio-visual equipment that is fairly typical in a conference room. We do a tremendous amount of meetings and training events in that conference room and it is just very important for us to have something that is available to us on demand built into the room itself, so that we have that as part of a system that we can just walk into and get service from immediately, as opposed to having to round up components and try to figure out how they work and many of them are ancient to begin with, so they don't interact with the technology that we -- that we need. This would certainly, then, provide us with that capability and this is a room that is shared, so other departments use this room, as well as we do, and it's something that I think is badly needed and we would propose that. So, with that in mind I will turn it over to Mollie for her enhancements. De Weerd: Council, do you have any questions for John at this time? Hoaglun: Madam Mayor? De Weerd: Yes, Mr. Hoaglun. Hoaglun: Going back to the safety administrator one. John, on the sheet it talked about the contract method -- I think you're spending 31,000 a year, is not effective in meeting department's goals. I mean full time versus contracting is one of those things we are always looking at as a way to save money, but yet getting the job done. What is it about the contract method that's not meeting the department's goals? McCormick: Well, there is a couple of things. First of all, I think it's the quality of service that we get from the current vendor, so an alternative would be to look for a different vender, you know, that would provide the same service. The other is the service itself is not sufficient to meet the demand that we have for training and he is -- he is available to us on a -- like apart-time basis. We don't have anyone that is dedicated and committed to safety programs for the city and specifically for the Public Works Department and I think therein lies the difference between working with a contractor who is available on their schedule or at a specified service level that you negotiate with. If we stay with the same contractor or, for that matter, even engage a new contractor to meet the needs that we have, would require more and more of their time. So, I would be presenting a budget proposal of one sort or another to increase the funding for the safety program. Hoaglun: Okay. Thank you, John Bird: Madam Mayor? De Weerd: Mr. Bird. Meridian City Council Budget Hearing July 11 , 2012 Page 8 of 57 Bird: How often is -- does wastewater and water have safety meetings? Because out in the private world you -- your insurance requires you to have safety meetings once a week and keep track of everything. Do we have that kind of stuff here now? McCormick: We do. Thank you, Councilman Bird. We do have safety meetings. In fact, the committee chair is from the water department -- at water division, excuse me, and they occur monthly. I think on an event basis they would occur more frequently. Certainly safety is always talked about in the operations world, especially at staff meetings and that sort of thing. They do report on matrix that relate to the incident rate and the severity of that through time loss. We have been very fortunate to have very safety conscious people working in those operations and -- but, yes, they do meet frequently. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: Not to mess with the current flow going on, but John mentioned to me earlier that he might be able to answer a few more questions that we had yesterday about the backup power needs for this building and I don't know if that's appropriate to do while he's standing here or at the end of today's meeting or -- did anybody have any further questions they wanted to ask him about that? Bird: I didn't. De Weerd: I think there is more questions, but why don't we do it under the discussion part, if you will be around. McCormick: I will stay for that. Yes. De Weerd: Okay. Zaremba: Thank you. De Weerd: Thank you, David. I mean Mr. Zaremba. Rountree: Same guy. Mangerich: Good morning, Madam Mayor, Council President and Council Members. This is the environmental division portion of the enhancement request for the fiscal year '13 budget. David Miles is our service water program administrator and he and I will be tag teaming this series of enhancement requests. Beginning with our first enhancement number four, we are seeking to replace the conference tables and chairs that were moved from the conference room during the reorganization to planning and building safety. Both the environmental division and our construction division currently utilized this conference room for professional meetings with external entities and this Meridian City Council Budget Hearing July 11 , 2012 Page 9 of 57 enhancement seeks to replace these temporary folding tables and chairs with a conference table of more to the liking of the one on the left, which was the one that used to be in that room. Miles: Madam Mayor, Members of the Council, enhancement number five is for a city wide irrigation system. This enhancement for a feasibility study would utilize similar existing municipal irrigation systems, such as the city of Nampa's, and would analyze the opportunities, the challenges, the costs, and the structure of a similar type of irrigation citywide system that the city could maintain and administer. Nampa-Meridian Irrigation District and Settlers Irrigation District, which are two of our larger irrigation districts in our city, have engaged the city and shown interest in this type of system. They have also expressed a favorable reaction and experience with similar systems like the city of Nampa's. The feasibility study would review all things, such as water right issues, legal, political and legislative issues. We also review and analyze structural and cost issues, as well as engineering, operation, and maintenance issues, to attempt to determine whether or not a more reasonable and favorable rate model could be established for all rate payers, as well as determine if there is a method -- or a chance to utilize and broaden -- offset those costs to our rate payers. De Weerd: So, David, would that help with some of our flood plain challenges -- Miles: It could. De Weerd: -- with the irrigation districts? Miles: Madam Mayor, Council Members, it certainly could. I think that the feasibility study is sort of the first step to see what the opportunities and impacts might be to a system like that and if it gets down that line the opportunity for the city to manage that type of system -- those canals and creeks that are out there that are utilized for irrigation, could then, as you said, make it easier on the flood plain regulations in terms of having one less agency that is involved in the mix of flood plain regulations. De Weerd: Just one other question. Would that also mean they would not be dredging the creeks or -- oh, excuse me, waterways. Whatever I'm supposed to call them. They are not creeks. Would they still be maintaining those or -- because we would kind of be administering the program would we be more responsible for the maintenance of those waterways? Miles: I think the intention of the study is to examine whether or not -- De Weerd: All of these questions. Miles: All of those questions would be part of that study and whether or not it makes sense to incorporate those types of activities to this city as part of that program. Meridian City Council Budget Hearing July 11 , 2012 Page 10 of 57 De Weerd: Well, certainly I think that if -- if we would include that as part of that study, so we could be more in charge of those waterway amenities and what they look like and how they flow and what they look like in our city limits that would be good. Mr. Hoaglun. Hoaglun: David, originally when -- this was included in the book. There was a 50,000 dollar study and, then, a hundred thousand dollar study. What changed in that? Just the overall scope or enlarging the scope of the study? Miles: Madam Mayor, Councilman Hoaglun, essentially, what we have learned over the dealing with some other water right issues over the past year is that we felt like 50,000 dollars probably would not give us a complete and robust study to make an informed decision relating to the costs that we have spent already on some other water rights issues. It seemed indicative to up the amount to cover the cost that will be incurred. We envision a lot of internal work, but also a lot of the complexity with the water rights issues and state laws and things of that nature will require consultants and can require a large amount of time as well. Hoaglun: Madam Mayor and David, to follow up, you know, one of the things that I'm puzzled about is Nampa-Meridian and Settlers, they have the taxing authority and we don't and how is that going to work? I mean that's a change in state law -- I mean there is a whole -- it is very complex and I want good information to make an informed decision, but at the same time I hate spending 100,000 dollars if I'm thinking we are not going to do this and so that's my quandary here is I don't know where I stand on this, because I want to have more information, but to get more information we need to spend lots of money. So, that's always a -- you know. So, that's always a tough deal. To continue on, my question -- Nampa -- they have several irrigation districts. Do they -- do all the irrigation -- do they oversee all irrigation water within their city limits or only through some of the irrigation districts, like Nampa-Meridian? Do you know that? Miles: Madam Mayor, Councilman Hoaglun, I do not know specifically. Perhaps if Mr. Barry knows he could address it, but I believe that they do control within their city the irrigation delivery through their irrigation system citywide. De Weerd: Mr. Nary -- I mean Barry. Barry: Thank you, Madam Mayor. De Weerd: Barry, Nary, whatever. Barry: Yeah. You know. We both talk a lot. De Weerd: You know, I was going to say that and I thought no. Barry: Thank you for your question. Two points there. The first one is my understanding, as I recall when we met with Mr. Fuse -- Michael Fuse, who is the public works director for the city of Nampa, two years ago or so, in talking about this concept Meridian City Council Budget Hearing July 11 , 2012 Page 11 of 57 when he were evaluating it, that they do control all of the irrigation for the city of Nampa, including Pioneer's portion, Nampa-Meridian's portion and any others, for that matter. The point that you made, Mr. Hoaglun, about the cost, we agree completely. The cost does seem high, but we don't know what we are getting into. Our goal is not to spend 100,000 dollars. Originally we thought we might be able to do this between 40 and 60, but as we looked more to it and looked at the potential issues surrounding it and, in particular, recent experience with attorneys, that dollar amount just seemed a little bit low. So, we are requesting 100,000 dollars with the hope of not having to spend that. I would say maybe the encouraging component of this is that we do seem to have support, in concept, by our two largest irrigation providers. If that didn't exist, then, I would say it's a lot more risky, but because we have been approached, actually, by both of them on their own about this particular concept and have been encourage to investigate it, we feel that working together with them and also incorporating assistance from the city of Nampa, we might be able to make this a reality. The important piece to this is making sure that we work the bugs out through a feasibility study. We identify all the bugs and we try to work them out as much as we can in advance of moving this thing forward. But we don't do anything until after we get the information and present it back to you, so -- I don't know if that helps or not, but -- Hoaglun: It does, Tom. Of course, then, there is the part where it's kind of like my brother-in- law wanting to sell me a car, kind of like, hey, I got a good deal for you, you kind of -- it makes you a little worrisome. But, anyway, I appreciate that information. That is helpful. Thanks. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I have the same concerns when I look at this item given our past experience and I can see why the irrigation districts might very well want to offload what it is they have. I also have been a resident for a number of years and know the cost of using potable water to irrigate with versus using irrigation water. It seems to me that maybe we ought to do this in increments or a phase and the first phase ought to be is it really going to be feasible for the city to take over this rather cumbersome and patchwork system that we have and continue to have rates that the folks are paying now that do get irrigation water. It's pretty minimal on an annual basis. And I have some degree of difficulty seeing the city take on the entire system and having to provide a system for the rest of the city that doesn't have this and still maintain those rather low rates that those people pay. I just have that concern and I think we will spend a lot of money and we might say alittle -- those that have it are going to be subsidizing those that don't and that's not going to fly very well either, so -- Barry: Madam Mayor, if I could respond. Councilman Rountree, that's exactly the point of the study. One of the concerns we have as we grow our reclaimed water program is how are we going to finance that reclaimed water program. Should all rate payers pay to finance the reclaimed water program and, then, in addition on the potable water side Meridian City Council Budget Hearing July 11 , 2012 Page 12 of 57 we do know that our potable water users for irrigation water are paying quite a bit of money for irrigation water. Recent studies on our reclaimed water program have indicated that we are not going to be able to reach the downtown area with reclaimed water. It's just not possible. We don't have enough water production at the treatment plant to do that. So, this type of a system would help us to develop a leveled payment system, if you will. At least that's kind of the intent is to see if we can't develop through devaluation of this type of system, the utilization of multiple water sources that are all equalized and, therefore, paid uniformly across the entire city. That would mean something to -- or some effect I would imagine that there would be a slight increase in those who pay irrigation district water purveyors now at a significant reduction than those who pay for potable water and, then, some sort of reimbursement of the reclaimed water program. That's one of the intentions behind this is to see if we could develop a system whereby there is one uniform irrigation rate and whereby we are using and moving the best water for the best type of use across the city. Right now if we do want to create a reclaimed water utility there is -- there is really no way we can compete financially with the cost of that reclaimed water utility and we would yet create another scenario where you have very low irrigation payments to an irrigation water purveyor, fairly high for those using potable water and probably even higher for those using reclaimed water. If we could under one system make more uniform the application of rates across the entire city for the same use of water, we show that that would be a benefit to all residents. But that was one of the questions we wanted to evaluate here. If that's not something the Council is comfortable with, that is one of the bigger motivators behind this and it probably would be good to get that conversation out and discussed. Rountree: Well, I think that's a valuable part of the study, but I think that's probably the key part of the study as well, as opposed to venturing into the water rights issue and the legalities of that and the cost of the investigation of doing all of that. To me the cost of the investigation, not the fact that there is going to be costs other than that to do it. I mean jumping through the legal hoops with a feasibility study would be the cost of having that done. But if you do them both at the same study with the -- at the same time and you can't figure out to how make the rates compatible and feasible, then, why bother with the rest of the study. Barry: Mr. Rountree, that would be exactly the approach we would use in the study and we have used that approach successfully in the development of other studies. For example, the reclaimed water master plan, whereby we will look at low hanging fruit and sort of have a go, no go, decision or what we call an exit ramp, if you will, that way we don't run up the bill on evaluating a bunch of questions that are not germane, because there is a fundamental critical path flaw that keeps us from moving forward. So, that's how we intend to move forward in this is to, essentially, address the low hanging, but most important prioritized questions first and if those look favorable, then, to continue the study through fruition or until otherwise it doesn't look fruitful. So, that would be the approach with regard to management of this particular project we would utilize. Hopefully that gives you some peace of mind. Meridian City Council Budget Hearing July 11 , 2012 Page 13 of 57 Rountree: Thank you. De Weerd: Any other questions? Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: Madam Mayor, just a comment in support. I mean we -- we conceded what the questions are and how important the questions are. The study is a way to get those questions and I'm -- my feeling is in a number of areas as the city grows and our needs increase we do need to be considering these kind of things. And I fully understand that even after the study the answer may be no, but at least we will have facts and figures to make that decision on as well. So, I'm -- I'm in support of the study and I know it will be done as efficiently and cheaply as possible. De Weerd: Thank you. Okay. Mangerich: Enhancement number six for the environmental division is -- seeks approval for funding to develop four education outreach programs for this next fiscal year, primarily targeting at the area of most concern within city's boundaries. Number one, surface water pollutant reduction program. By leveraging our resources with the clean -- partners for clean water in the larger Ada County area, looking primarily at pollution prevention strategies outreach activities, reduction in phosphorus and fecal coliform, both of which our creeks have listed efficiencies in. Secondly, looking at food waste composting pilot program within a couple of our elementary schools who have expressed interest in doing so, provided the purchase of two large worm bins going out into our schools and having that activity take place during the school hours. So, there is support of that by some of our teachers in our elementary schools. Thirdly, looking at the hazardous waste disposal options available to the City of Meridian businesses, there are affordable services and convenient services available that the education and outreach to link our Meridian businesses with those services does not exist. The funding would help enhance an outreach utilizing our industrial pretreatment program with the over 640 businesses that we visit per year through that program and providing information about where they can take their small business hazardous waste here in Ada County for -- either for a free or low disposal cost. We think that's very important, because we have a very robust household hazardous waste collection program here within the city. And, then, finally this enhancement requests that we roll out and natural yard and home care campaign will connect the primary pollutants that concern us in our service water and ground water protection plans, pesticides, phosphorus, fecal coliform, being able to show alternative partnering with vendors and local businesses within our community and show options to use of hazardous waste is our homes and on our residential landscapes. Thank you. Miles: Madam Mayor, Council Members, enhancement number seven has been withdrawn. This was originally for a FEMA letter of map revision for Nine Mile Creek Meridian City Council Budget Hearing July 11 , 2012 Page 14 of 57 and given the fact that FEMA has indicated they have begun their own study of the area at this point in time, we decided that this would be better suited for future fiscal years while we wait to see what FEMA's results will be. De Weerd: David, is FEMA looking to expand that area? Miles: They are not looking necessarily to expand the area. What they do on a kind of rotating basis every five to ten years is they restudy the maps of flood hazard areas to insure that they are accurate, as well as any -- incorporate any changes that have been made in the areas over time, either through development or things that have not been on the original flood insurance studies. So, this just happens to be part of the lower Boise watershed remapping effort over the next two years and they had funding for Nine Mile Creek at the time. We were apprised of this approximately six to eight weeks ago in the middle of the discussion of this enhancement and which kind of threw a wrench in the plan for this fiscal year. De Weerd: Okay. Thank you. Mangerich: And our final enhancement for the environmental division is requesting funding for a proposed pilot project which would install a water bottle refill station along our pathways. This pilot project we developed in partnership with our Parks and Recreation Department and our water division. This enhancement would purchase and install a water bottle refill station that could be used by our walkers, runners, dog walkers, cyclists along a portion of our parkway. Working with parks and water division, looking at the best and most feasible and cost effective location to place a pilot project of this nature would be along our Bud Porter parkway. There is also a myriad of other stanchions there of dog waste receptacles, benches, et cetera, linking up a couple of our parks. So, we think that that would be a good location for which to bring this. The equipment that we are looking at in manufactured MDS and it is a manufacturer that our parks works with on several occasions for the procurement of their installations for a myriad of equipment within our parks system. They have a good relationship, they know the durability and the customer service with company and so they have encouraged us to go with this provider in the selection of any water bottle refill station. Conversations have also come up to include -- which this model can also incorporate is a drinking fountain arm on this as well. So, it can service both those who are not using a refillable water bottle, but also who would just like to have a drink along our park and pathway. We believe that this enhancement is designed to underscore and promote our Meridian livability factor. Also the growing fabulous network that we are developing in our parks and pathway structures and amenities and also providing support to our Meridian's water division is in support of a national water campaign to drink tap and to reduce use of one time disposable plastic bottles. So, there is a water reduction drink local, drink tap campaign component to this as well. And it is in concert with our city comp plan, Chapter 5 in the Public Works Strategic Plan for public education. And that includes our enhancements. We stand for additional questions if you have some. Hoaglun: Madam Mayor? Meridian City Council Budget Hearing July 11 , 2012 Page 15 of 57 De Weerd: Yes. Hoaglun: Mollie, on this one, was it this -- and this was for the equipment and supplies and installation. Is that something the Parks Department would be doing? Mangerich: Installation would be both parks and water. Water line and because of the this location of Bud Porter those would both be minimal costs. Hoaglun: Okay. Thank you. Mangerich: So, I worked with them to pull together this budget for that. Hoaglun: Okay. De Weerd: Any questions from Mollie or David? Bird: I have none. Rountree: No. Mangerich: Thank you very much. De Weerd: Thank you. Mangerich: We are now going to hand this over to Warren Stewart, the city engineer, and his staff with a series of enhancement for the engineering division. De Weerd: Well, we will make sure to give them a hard time. Mangerich: Thank you. Public Works -Engineering Stewart: Thanks, Mayor. I appreciate that. I'm grateful to be here, Madam Mayor, Members of the Council, today to talk a little bit about some of the things that are going on in the engineering department. Actually, the enhancements today will be presented to you -- presented to you by the engineering and operations staff, but I'm going to have a brief discussion with you about some of the other things that are going on that will lay sort of a foundation or a framework for the enhancement discussions that they will have with you. The engineering division gets involved in a variety areas, but we focus -- we try to focus on the things that you see here on the slide. We work closely with the operations department to insure that they have the infrastructure and the tools they need to effectively meet and efficiently meet our regulatory requirements and serve our community. This means teaming up with the water department to make sure that they have -- or are able to provide -- I got to put my glasses on. I apologize. Adequate water Meridian City Council Budget Hearing July 11 , 2012 Page 16 of 57 quality and quantity to serve our citizens and meet our fire protection needs. It also means teaming up with our wastewater department to insure that our sewer collection system and our wastewater plant have the capacity to serve our growing community and meet their regulatory requirements. Thanks to previous Council approval, we have had and consistently use our water and sewer model, the plan for growth, and insure that we have adequate capacity now and in the future. As you are aware, much of the engineering division's day to day work revolves around managing capital improvement design and construction and we are consistently striving to improve the means and methods that we use for project delivery. This is being accomplished through a combination of training process improvement and better coordination. We are consistently striving not just to work on the day-to-day things that we will do, but also to improve the way in which we do our work. The annual update of our capital improvement plan helps us to revisit our strategy for meeting the city's needs each year. We have also completed or nearly completed master plans for all the major components of our sewer, water, reclaimed water and communication system. These plans are critical in helping us to identify capital improvement and the timelines needed for those capital improvements. We have also been actively involved in several committees within these -- to improve the way we deliver capital projects and we have worked within these committees, as well as independently, to create SOPs and process flows to document and streamline our processes. Thanks again to the Council's support we are currently implementing e-Builder Project Management System and this system will help us to greatly improve many areas of capital project management and delivery. We are also undertaking an update of our City of Meridian supplemental specifications and the creation of design guidelines which will aid our customers in doing business with the City of Meridian. We are also planning to create a project management guidance document to help city staff do the complex process of capital project management. Some of the benefits of these and other Public Works efforts have netted some positive results. As Tom alluded to earlier, carry forward dollars have been on a downward trend for the last several years. In large part this is a result of the just in time financing model which was implemented in 2009, which allows us to better leverage the funding that we have available. And as expected we are beginning to reach a point where the improvements are smaller and more difficult. As you can see we are sort of flattening out at the bottom of this. But I'm confident that we will continue to make additional gains, although they may be smaller than in the past. Some of the carry forward improvements can also be attributed to the fact that our project budget execution rate is improving. Since 2009 we have achieved, excuse me, significant improvement on a year-to-year basis. The national average for public works execution is around 53 percent and as you can see we are substantially better than the national average. Our year-to-date execution rate is around 60 percent, but the most significant construction expenditures will occur over the next two and a half months and I'm confident we will end the year in excess of 60 percent. And I believe we will actually meet or exceed our last year's mark in spite of our skeptics. We have also been generating -- sorry. Got to get back on that. On average our change order values have been less than one percent of the overall costs of construction and I'm very proud of this statistic and my staff for achieving that. We have also been generating and following project schedules for the past couple of years and we have done a better job of meeting our project Meridian City Council Budget Hearing July 11 , 2012 Page 17 of 57 schedules and timelines and we have made solid improvements in our communication and coordination with other departments. Once again I would like to say thanks to the Mayor and Council for giving us the support to implement the e-Builder Project Management System and I believe it will be a great tool in helping us to achieve the improvements that we need in providing the data that we need to track what we are doing and to report that information to not only the Council, but also other people within the city. And with that I will stand for any questions or I will introduce Tiffany Floyd, who is also going to be talking a little bit about some of the operation things that are going on. De Weerd: Council, any questions? Bird: I have none. Stewart: Thank you. Floyd: Need to lower those, uh. For the shorter folks in the room. De Weerd: You even wore heels. Floyd: I did. Good morning, Madam Mayor and Members of the Council. Well, I have finished my first year as utilities operations manager and I thought it would be nice to share some of the business improvements we have made in both divisions. So, to continue with Warren's theme working on the business, not -- not just in the business, I will share what we have been up to last year and what our priorities and challenges are going to be looking into the future. It's still a little high for me. Excuse me. Over the past both divisions have instituted regularly scheduled operational meetings with our division partners. This includes construction division where we look to understand water and wastewater projects, the needs of those projects, and the timelines. We also meet with our environmental division to coordinate pretreatment and surface water activities. We also work closely with our utility billing department to coordinate our water billing needs and services, plus help both divisions understand and gain a better understanding of the roll and the responsibilities of both divisions. Lastly, as Warren said, we coordinate with our engineering division on our activities dictated by the various plans that he mentioned and insure corroboration on our CIP implementation. asset management. About two years ago Hansen was implemented as the asset management and inventory control system for Public Works. It originated in our wastewater division and the water division implementation is currently underway. There are many reasons why asset management is important and I'm sure that you have heard a number of them, but I will cover a few as well. We want to track our infrastructure as far as the life cycle costs are concerned, the timing of installation and, then, of course, the warranties associated with that infrastructure. Hansen also has an inventory module that allows us to track equipment and monitor it to insure that we have on hand materials and supplies for say service orders or any emergency-type situations we need to address. On a more technical note, we do continue to develop our SCADA and remote site communications throughout the utilities. We are in the process of Meridian City Council Budget Hearing July 11 , 2012 Page 18 of 57 finalizing that SCADA master plan that you probably heard much about, which will help dictate the current and future standardization of our equipment and the programming that we need. This master plan will also secure the communication transmission between our central locations, such as water and wastewater and, of course, City Hall with our remote sites, such as the PRVs or lift stations. In the more recent months we have been utilizing performance matrix in our divisions to know how we are doing, what types of things we need to be focusing on. We also use benchmarking measures, which help us track and compare to industry standards, again, trying to figure out where we maybe need to make some improvements or we need to focus our efforts. We do that on a quarterly basis to track along with the budget. And last, but certainly not least, I wanted to be sure to include a current budget snippet, as Warren did, total expenditures for both water and wastewater year to date are really for us -- or at least for myself in the last year at an all-time high. We are executing 89 percent of our budgets and so I feel very good about how we are doing and I think it's a pretty darn good job. Jump ahead too quickly. Okay. So, let's take a look at both divisions and their future priorities, starting with wastewater. As you know, MPDES permit negotiations will soon be upon us, as we are expecting to see our permit in late 2012 into 2013, as Tom described earlier, which means we need to continue to evaluate our -- any and all of our compliance strategies, which includes various phosphorus removal options, evaluating the role and the scope of our reclaimed water program and, then, also looking at alternative means to effluent disposal. We have heard in recent conversations with Boise in their NPDES permit that we may have year around phosphorus limits versus the seasonal limits that we had been expecting, so this may impact our reclaimed water program as we are not able to currently discharge that water all year long due to the reuse permit. Then as for alternative means of effluent disposal, we do plan to evaluate aquifer recharge viability. You will soon hear from staff on an enhancement to fund the site specific aquifer recharge study, again, to determine viability and, hopefully, avoid any additional upgrade at our wastewater treatment plant. Next we will look at optimizing our BNR process, certainly as much as possible. We have recently started modifying the secondary pump station, which we talked a little bit about last week and, then, reconfiguring the return activated sludge line. That is in an effort to reduce the microthrix caused issues that I know you have heard much about as well. Fermentation is another project that we will look to reduce phosphorus levels, but it will also allow us to increase our biological reliability, again focusing on the process that we have. And, then, lastly, is the chemical feed flocculation project. It's going to reduce the acridity issues, but will also improve the phosphorus and removal of that phosphorus. The last item there in support facility improvements. If you recall that in May I spoke to you about the wastewater improvement plan and the needs analysis as we looked forward 20 to 30 years and what the need may be not only now, but into the future. It was determined that wastewater had outgrown its support facilities and that certainly some improvements were needed. One was the current laboratory. It's presently undersized. It cannot really accommodate for future analytical equipment or what we see as the future analytical equipment that we would need to respond to the NPDES permit. Certainly with that permit in the horizon we feel that our lab sampling work will nearly triple. We talked a little bit about the sampling numbers that we are seeing now at 9,600, roughly, to maybe 30,000 samples in trying the meet the NPDES Meridian City Council Budget Hearing July 11 , 2012 Page 19 of 57 permit. So, we feel that we need to be as prepared as possible for that. We also need to retrofit our existing administration building to accommodate our team of operators and our collection staff. As you saw last week on the tour, it, too, is undersized for current staffing needs. So, however, in order to retrofit certainly the existing building we need to build a new administration building, thereby giving us an opportunity to plan and, then, build a facility that will provide for staff now and, then, into the future, as well as for our community. And, finally, the sampling site improvements, which I would like to think as the fun one. On the tour last week you saw that. I like to call it a diving board, because that's what it looks like to me. We would like to improve that to allow staff to take a representative sample, but more importantly it is a safety concern and staff do take samples throughout the wintertime and that is and can be very difficult. Now, moving into water and its priority objective. First of all, water treatment and addressing customer concerns that we have talked about with you all. Brown water issues, as well as insuring that we are protecting our water supply. Both the engineering team and the water staff have evaluated both the use of the chlorine within our water system to prevent contamination and in the formation of brown water, or at least if that's what causes that. They have determined that installing an absorption filtration system would be both effective in protecting our water supply, but more importantly removing the iron and manganese which is creating the brown water and improving our water quality. This system requires low maintenance and the filter media lasts over 20 years or at least that's what I have been told. So, I guess we will see. With that I believe we could focus our efforts on zone two. That was that Well 21 again that we saw last week, which is in the center part of town. This will be our first attempt and trying to address the iron and manganese though, and removing it from our system. Next is water quality. We have seen some trace amounts of uranium in two of our wells, requiring us to install a few test well to determine the best water quality that we have and trying to address that with design and construction of new or say replacement wells. With that information we think we will be able to sort of screen off the best water quality and, then, utilize it, which would, basically, reduce or eliminate the uranium from our drinking water. Another primary objective of our water division is the storage capacity. Meridian is short on water storage and our water master plan addresses that. It's known that we need to increase the storage and our pumping capacity in the southern part of our town, which, you, again, are very familiar with, to address peaking and fire flow demands. Staff will seek an enhancement on the new water reservoir and the details associated with that here in a little bit. Protection of our source water is also critical. We must think about well design and well construction and well head protection. One way we are doing that is through a collaborative effort between Department of Water Resources, Association of Idaho Cities, so AIC, and with other water purveyors to address a number of things, private well construction, abandonment requirements and, then, trying to identify any well hazards that may exist and trying to address those through better design or better design standards or requirements. Lastly, as you may know, we recently converted all of our water meters to the radio reads or known as AMR, the automatic meter reading technology. You may also recalled some discussion about AMI and the automatic meter infrastructure. What the AMI technology is -- you know, would allow us to -- to go from the once a month drive by readings, which we are now, while utilizing the AMR, to an hourly realtime reading is not yet fully Meridian City Council Budget Hearing July 11 , 2012 Page 20 of 57 developed. So, we have elected to place the AMI part of this on hold and utilize our AMR technology first. We will continue, of course, to research and monitor any new and upcoming metering options, but for now I think we are very excited about the AMI technology and that seems to be working well for us. Now, as I close I would like to summarize what you will hear from staff in regards to our budget enhancements for the upcoming year. For wastewater there are 17 enhancements for a total of 8.9 million dollars. And, then, for water we have 16 enhancements for a total of seven million dollars. I'm happy to stand for questions or certainly I can turn it over to our wastewater division and we will start with budget enhancements. Staff will present a number of those to you. De Weerd: Council, do you have any questions for Tiffany at this time? Bird: I have none. Rountree: No. Thank you. Floyd: Thank you. De Weerd: Okay. Mr. Nary, are we -- what I would like to do is if I could take a few minutes break and -- if you guys would, please, have a seat for a moment. As you know we have our city picnic tonight and tonight we did not have -- our employee of the year cannot make tonight's picnic, so we thought we would take an opportunity right now to present our 2012 employee of the year award and I see that person in the room, so certainly our 2012 employee of the year has been a face in the Mayor's office -- oh, dang it. I think Brad needs to do this. But I will at least hand out the award. How about that. Hoaglun: Well, this employee, who is the 2012 employee of the year, does bring a positive presence to the City, into the Mayor's book club, family fishing day, they are a positive helpful individual. When anyone has an issue or concern for the city, they jump right on it. They have been a great resource to our citizens and -- and certainly an example of the Meridian Way and the city is more connected because of their work, they really go above and beyond to get things done and make sure that our citizens are well served and they do it in a way that they don't look for -- they don't do this to bring back attention on themselves, they do it because that's what they want to do and make sure citizens like this community like their government and make sure they get the information needed and -- but today we are going to make sure that person gets the recognition that's due them and I think, Mayor, I will let you announce our 2012 employee of the year and -- you want me to go ahead and announce that? Oh. Our 2012 employee of the year from the Mayor's office is Shelly Houston. Houston: Oh, my gosh. Hi, guys. How are you doing? This is a surprise. I saw my mom and dad in back and I was like -- oh, thank you. We have a good time, don't we? So, thank you for -- I love my job and everything I get to do and you guys are always there for me and -- but we got to keep things fun around here and the Mayor is great to Meridian City Council Budget Hearing July 11 , 2012 Page 21 of 57 work with and I love the Council and everybody. My coworkers are incredible. I have been going through some health issues with my asthma and you see me with an oxygen tank like an old grandpa, so -- I got some bad news from the doctor today, so I'm going to be still wheezing and huffing a little bit. You take care of me. My mom and dad -- I couldn't do anything without them. Just yesterday -- what was it yesterday -- I think my fire alarm on the highest beam was chirping out loud, so poor dad he saved me from the ladder. They help me take care of my house and yard so that I can take care of what we need to do here at work and so I appreciate everybody and I probably won't be to the picnic tonight, because of the -- mostly the heat and breathing is not my best event. So, anyway, thank you for helping me get through all this and this is a great surprise and I'm very tickled. Thank you. De Weerd: We appreciate Luke coming by. He was our decoy. And Shelly really fell for it, too. Houston: I did. I'm like what were they thinking. De Weerd: You know, Shelly has been here for a long time and certainly she adds a great dimension to coming to work, making people smile, putting a positive face on the City of Meridian and, you know, it's -- if anyone builds trust in city government it's Shelly. It's her smile and her presence in a room that make us look good and certainly make coming to work really fun. So, we appreciate you, Shelly. Houston: Thank you. De Weerd: Okay. If you guys want to take it outside. Enough of the touchy Feely stuff. We got work to do. Thank you for letting us take a moment to recognize Shelly. We greatly appreciate that. And keeping in the norm, I have to get emotional about those things, so I apologize for that, too. But thank you, Councilman Hoaglun, for stepping in so adequately. De Weerd: Okay. Come on team. Crane: Madam Mayor, Members of the Council, it's great to be with you and I really appreciate the moment of levity before we stand in front of you and ask for 8.9 million dollars. But, hopefully, that was actually a good thing. We will go ahead and start in the wastewater division with the capital replacements, since we have three. The first one I talked to you a little bit about on the tour is the washer compactor on one of our effluent screens. During routine maintenance they had found that someone had went through it -- wore right through that casing of the press mechanism. It has been temporarily welded back together so that it's still functional. We had FPS Water Engineering do a little study for us to see if it made sense to just replace that or look at other equipment, maybe newer, bigger, better and the tech memo concluded that direct replacement at this point was the preferred course of action. This one is sort of important. It has a six month lead time, so we would really like to get it on the way before our temporary patch fails. The second one is for a new waste gas burner. The one that's at the plant now Meridian City Council Budget Hearing July 11 , 2012 Page 22 of 57 has been in service for -- and burning continuously for about 12 years. The real issue was it was -- back when we had to put it in we didn't have the air permit that we have now and the air permit requires a thermal couple for continuous monitoring and also a pilot for re-ignition. Although it has a pilot it's fairly old and it's like a once inch gas line and so the -- and the thermal couple -- our staff has installed a temporary thermal couple, but it burns out every few months, so the newer ones have a more efficient pilot system and we need to have an engineered solution, really, for the thermal couple. The last one is the HVAC unit on gas number one. I pointed it out as well on the tour. It's been in service for approximately six years sitting over that tank. It has significant corrosion and the service reps have recommended replacement. The whole HVAC unit was upgraded in 2009, but the project didn't include the air handler, because it was working at that time. So, following the HVAC replacement, that's going to be essentially all new. So, with that I can stand for any questions on the capital replacement. De Weerd: Questions on the capital replacements? Rountree: Great. Steve. Jensen: Now we will get into the enhancements. We have 17. Two of which have been withdrawn, because those funds have been moved into the base budget, so we won't have to continuously come and ask every year. And we will start with enhancement number one, which is fermentation. This project is the second part of a three year project. It was funded -- the first design part was funded in FY-12. The enhancement provides for a conversion of one of the old primary and the digester and one old digester and two fermentation allows us to take advantage of that space that it occupies and use some of the existing infrastructure. To remove nitrogen and phosphorus biologically a simple carbon based food source is required. We call it VFA's or volatile fatty acids. The volatile fatty acids can be produced by the fermentation process. Studies that we have done have shown that our nutrient removal capacity is limited by the fact -- by our carbon source that we have, meaning that if we have more VFAs we can remove more soluables and phosphorus biologically. So, the principles of natural selection apply in our biological system and the aeration basin it's basically survival of the fittest. So, by assuring a consistent food source for the VFAs we can actually increase the reliability of the biological system. But as you might imagine fermentation is high aromatic -- some might say it stinks. So, odor control will be required for this particular project, but the odor control is apart of a separate enhancement that we will discuss shortly. Enhancement number two is the second part of the secondary pump station modifications. The first part of this project was approved in fiscal year '12 for 825,000 dollars. We are asking for this funding to complete construction of the improvements related to reducing the potential for the formation of microthrix in the wastewater system. Microthrix causes a lot of settleability problems, which impact capacity of the secondary treatment system. This enhancement has the potential to not only increase capacity of the secondary treatment system, but also reduce chemical costs. Enhancement number three -- it's a continuation of ongoing enhancement that we had requested for several years for flow monitoring. This enhancement will not only fund the purchase of flow meters if we need to go that Meridian City Council Budget Hearing July 11 , 2012 Page 23 of 57 direction, it also will fund a flow monitoring program where we have a systematic approach for going around the collection system, monitoring flows, so that we can nail down the source of the infiltration and in flow in the collection system and this will allow us to prioritize areas to go over with our TV crew to look at the collection system and, then, fix the areas where we find infiltration and flow, which results in direct capacity gains at the wastewater treatment plant. Crane: So, the next enhancement is chemical feed flocculation tanks. This is the second and final part of the chemical feed flocculation project. The purpose -- this is to design and install flocculation tanks just to the south of the chemical feed building bulk station that's being built now. Flocculation is going to be essential for removing future phosphorus after we get out as much of it as we can we -- the particles are too small to get caught on our filters, so you flocculate them and make them big enough to get caught on the filter. The project also has additional benefits as we coagulate things and make those particles bigger we will be able to capture more of those particles and it will have a net benefit for our turbidity requirements on the reclaimed water, which will give us a mechanism to hopefully make the turbidity a little less onerous. It's a very strict turbidity limit of two, which can be tough to meet at times, so this will help us if we have elevated turbidity like we had when we were out on Friday, it will help us add a chemical and flocculate and make those suspended particles big enough to get caught on our filters. Dolsby: Enhancement number five is for sewer main replacement. This is an ongoing enhancement as well to rehab, replace, and repair sewer mains in the city. Not only will this fund replacement projects that are identified by the camera crew, we also -- projects of note for fiscal year '13 that make this enhancement quite a bit larger than last year would be split corridor phase two, as well as a high priority project, the 8th Street improvements that are identified for fiscal year '13. Enhancement number six is for sewer line extensions. This enhancement will fund -- typically fund sewer line extension, new sewer mains that are associated with ACHD projects. In fiscal year '13 this funding is identified for the Franklin Road, Ten Mile to Linder project to put in the sewer utilities related to that project. That project was originally scheduled for fiscal year'12, but it's since been postponed to '13, so we are asking for this funding again for fiscal year'13. Enhancement number seven for a manhole survey has been withdrawn and incorporated into the base budget. Crane: Enhancement number eight is odor control and believe it or not some folks think the wastewater plant stinks. I don't know. Specifically, this portion of it would provide the odor control facilities that are essential to the fermentation project and, basically, one project can't be done without the other. We have to have odor control to implement fermentation. But this -- the reason it's a separate stand-alone project is that it's -- it's designed in a base so that it will be expandable to the headworks, so the first thing that it would do is it would accommodate the fermentation and take care of those odors, but the design is such that as the -- there is a couple more headworks improvements that need to be made and once those improvements are done, then, the headworks, which recent study a couple years ago identified the headworks as the largest source of odors. Meridian City Council Budget Hearing July 11 , 2012 Page 24 of 57 So, once we get the headworks improvements completed, then, it would be hooked into this odor control facility as well. Dolsby: Enhancement number nine is for SCADA system upgrades. The result of our SCADA master plan has identified new radios, as well as antennas and other systems that we need to purchase for our remote and base stations. This enhancement is to complete construction of the upgrades to the remote and the base stations to make our system more reliable and robust. Ball: Wastewater division enhancement number ten is for the sampling station improvements. This enhancement will allow us to evaluate, design, and construct improvements to our Five Mile downstream NPDES required sampling site. Our current sampling station is located too far above Five Mile Creek to easily collect a truly representative sample, especially in the wintertime during low flow conditions. It also poses a safety risk to staff if they have to go down the banks to collect samples. Our new NPDES permit will have more frequent ambient sampling required. It will require more types of analyses that require precise collection techniques, such as oil and grease, low level metals, and bacteria. Again, this enhancement will allow us to complete the necessary improvements that we need for our sampling site to allow staff to safely take the most representative and accurate sample as possible. Wastewater division enhancement number 11 is for the lab building extension. This is phase one of a two year project to design and construct a critically needed expansion to our wastewater laboratory. We are already currently 400 square feet undersized for the needs of today. We are lacking critical infrastructure, such as ventilation and plumbing for an acid washing station, which is critical to run low level phosphorus. We are also lacking the equipment to run the low -- ultralow level phosphorus and ammonia analyses. As Tiffany mentioned, with our new NPDES permit our testing frequency will increase by a large amount. Almost a threefold increase. So, with this lab extension we will be better able to meet the demands of our new NPDES permit. We will be able to run more analyses in house at a cost savings to the city. We will also have more control in the quality assurance and turnaround time of our lab samples and it will give us a potential for future in-house analytical work, which could include significant industrial contributors to the city and also the potential to test the drinking water samples for the city. And wastewater division enhancement number 12 has been withdrawn. As Tracy said, it has been absorbed into our annual base budget and will be evaluated annually as needed. Crane: So wastewater division enhancement 13 is for the administration and operations building. This enhancement would provide funding for the design and partial construction of a new admin building. As you know, due to rapid growth in the recent years the division has outgrown many of the -- what we call the support facilities. With the help of our partners at CH2M Hill we -- they performed some spatial analysis and we have got an idea of what -- the current and future needs. We use flow and load projections from the facility planning effort to try to project out to full build out. Those -- those efforts, basically, as I mentioned at the tour, have our flows increasing by about 400 percent while the staff roughly doubles. So, we are looking to build afacility -- an Meridian City Council Budget Hearing July 11 , 2012 Page 25 of 57 admin building big enough to last us into full build out at the wastewater plant. Also the new building could be used -- include some undesignated space to leave for such purposes as training or education, possibly the continuity of operations in the event of an emergency situation. And so a new admin building, coupled with the remodel of a couple of our existing buildings should give us the adequate space that we need now and well into the future. Dolsby: Wastewater enhancement number 14 is for fiber optics infrastructure at the wastewater treatment plant. This enhancement will fund the installation of fibers from the admin building and also will set it up for the new administration building to the support facilities around the wastewater treatment plant to provide more reliable and robust communications. Wastewater division enhancement number 15 is for a site specific aquifer recharge study. We have recently completed a small investigation into a couple of different areas in Meridian that might be -- might have the potential for some aquifer recharge of our wastewater effluent. This will focus in on a few of those areas and provide more of a complete investigation into the viability of using aquifer recharge at a few sites in Meridian. This could potentially give us the capability of discharging our wastewater effluent, thereby alleviating the discharge to the river and it could help significantly if we, in fact, do get a year around phosphorus limit, because we would be able to divert some of the wastewater effluent or possibly maybe even all the wastewater effluent -- it kind of depends on how the study results come out and alleviate some of the upgrades that we could be otherwise required as a wastewater plant for phosphorus treatment. Floyd: Wastewater division enhancement number 16. This enhancement is to hire an full-time electrician to perform electrical maintenance at both water and wastewater. This is currently outsourced to a number of other vendors and on average Public Works is spending roughly 100,000 dollars a year to those vendors. This position will perform such duties as electrical repair, maintenance of our pumps, valves, generators, blower, conduits. It will also provide training of staff as some of our electrical work is done in house. By conducting this type of work in-house it will not only result in a direct cost savings of about 15,000 dollars a year, but it will also provide of us a greater turnaround time and improving our response time immensely. Dolsby: Wastewater Division Enhancement No. 17 is for the installation of reclaimed water infrastructure to go along with the Ada County Highway District project from Franklin Road, from Ten Mile to Linder. It's pertinent to note that this area is also within the service area that we considered for the reclaimed water for the city. With that we stand for any questions on any of the wastewater enhancements. Hoaglun: Madam Mayor? De Weerd: Mr. Hoaglun. Meridian City Council Budget Hearing July 11 , 2012 Page 26 of 57 Hoaglun: Quick question. The ones they withdraw are the cheapest items? I do have a question on number 15. Clint, I'm just kind of curious on the aquifer recharge. Is that used in Idaho or how extensive is it used out west? I'm just kind of curious about that. Dolsby: Currently not -- to the best of my knowledge it hasn't been utilized in Idaho, but it's -- it's utilized extensively down in the southwest, like California, Arizona, I know in Nevada,. Even over in Washington over towards Olympia and that area they use it extensively over there as well. Hoaglun: Okay. Thank you. De Weerd: And a lot of people are talking about it Dolsby: Yes. De Weerd: -- so it's -- it's a conversation being had by a number of communities in Idaho at this point. Hoaglun: And another question on the next one, No. 16, the electrician, we are spending up to -- I think you said 100,000 a year and does that include the parts or is that all labor or does that also include materials that they have to provide for whatever project they are on? Floyd: Well, it would actually be -- it would combine both of those, is my understanding. Our business operations put together that -- John, do you know that further? In terms of the cost of the program -- if that contract also includes material. McCormick: Yes. Most of it is labor. There is some electronic components that are included in that. It depends on which vendor is involved and where they source their parts from and that sort of thing. And the actual cost for those four vendors is well over 150,000 dollars a year, but we subtracted out of that and made allowance for those costs that were associated with programing the ELC devises that are used in SCADA. De Weerd: So, would it not include that work, then? That would still be outsourced? McCormick: Pardon me? De Weerd: That work would still be outsourced, then, on the SCADA? McCormick: Yes. That's correct. Bird: Madam Mayor? De Weerd: Mr. Bird. Meridian City Council Budget Hearing July 11 , 2012 Page 27 of 57 Bird: Stay up there, John. Regarding the electrician and being very conservative at a vendor's cost of 80 dollars an hour he's probably charging and if we go to 200,000, that's roughly about 250 hours in a year and you want to hire somebody that's going to work 2,000 hours? It don't make sense. Floyd: Madam Mayor, Councilman Bird, as we have looked over the expenses over the last few years, 2009, 2010 and '11, that is what we are seeing, you know, the bulk of the cost and so that we would see that direct cost savings. Granted, it's 15,000 dollars a year, but we do see that we could have the work to add up to 2,080 hours a year for a person. Bird: Follow up. A journeyman electrician is going to cost you close to that 150,000 and, then, what are you going to -- where are you going to work him the rest of the time? As a journeyman electrician you're not going to want to go out and dig pipe or anything like that and yet you're only -- at your -- what you're telling is costing for a vendor, he's charging you I'm sure over 80 dollars an hour, put I'll put 80 dollars in there. You're only looking at 250 hours that you're calling him out. So, we have only got 250 hours of labor we need for an electrician and we want to hire afull-time one that we pay for 2,080 hours? Barry: Mr. Bird, if I may. Madam Mayor. De Weerd: Go ahead, Tom. Barry: So, I'm trying to track your math here, Mr. Bird, and -- Bird: It's wrong. Barry: Pardon me? Bird: It could be wrong. Barry: Well, I want to make sure I'm not wrong either. But if you're using a value of 80 dollars per hour and you multiply that by your 2,080 hours in a typical work year, that's 166,000 dollars. We are reporting 150,000 dollars. So, we are roughly trending with you on that number. We removed the controls, which is something that this person could possibly do, but we thought in fairness that we would remove that dollar amount simply because we weren't certain about the skill and capability level of that particular -- of apotential new hire. But we are trending at still roughly the same number of hours at 80 dollars an hour on your number and, of course, we think we can get somebody in much cheaper than 80 dollars an hour. Of course, we are reflecting 79,000 with benefits. So, we do believe that the work is there and that it does justify a close look at bringing this particular resource in-house. The alternative, of course, is to continue to outsource it. But we feel that with the trend we have witnessed over the last several years it does make sense and would save the city not substantial money, but, you know, pretty good -- pretty good amount of money, 15 to 20 thousand dollars annually. Meridian City Council Budget Hearing July 11 , 2012 Page 28 of 57 Bird: And, Tom, I don't disagree with you if you can keep them busy, but I'm -- you know, an electrician isn't going to go dig ditch. If we can keep them busy I have no problem with that, having an in-house electrician, but we got to justify that -- you know. And when you figure your cost you know dang good and well he's going to have a vehicle, he's going to have equipment, he's going to need equipment outside of his hand tools and -- which he would furnish. So, just his labor and -- isn't a cost to the city, where when you have a vendor all that cost is figured in the hourly rate. Barry: That is true, Mr. Bird. McCormick: Madam Mayor? De Weerd: Yes, John McCormick: Councilman Bird, just to address the point that this person might have available time on their hands, we do have aggressive actions around performance matrix that this person would be involved in related to the meantime to repair of equipment and the meantime between failure. Both of those matrix are important to our operations people. Right now if the equipment goes down they wait for a person to show up and that equipment doesn't come back up until the person is on site and the repair work is completed. So, there is an additional value here that goes way beyond the cost of the person that we are talking about and it, obviously, would increase our efficiencies in the plant operations, which, in addition, lowers our cost. So, I just wanted to point that out. Thank you. De Weerd: Mr. Rountree, did you have a comment? Rountree: Madam Mayor, yes. Just -- nothing about the budget per se, it's the timing and maybe a risk question. You have a couple projects in your requested budget for Franklin Road 2013 project. That project's a contingency project on ACHD's program, which means it's probably going to slip. So, it's more of a procedural question. Do we anticipate that in the budget or do we do a budget amendment if, in fact, that project comes this year. My guess it probably won't, but it could. It's slipped -- it's been slipping and it could slip some more. I'm not sure they are even are through the right of way, but I know they have started the right of way acquisition. Just a procedural question. Not for you guys to answer, for us to answer. How is it best to handle that situation? I appreciate the anticipation, but would it be better to maybe not be so aggressive in that particular one. The next question -- De Weerd: Before you move on, I was at a business this week and the business owner mentioned that ACHD is talking to businesses and many of the businesses felt that they were doing it this year and they are doing it -- they are going to be starting it from what they have been told, but it is for budget year 2013. So, I think they are moving forward, but -- Meridian City Council Budget Hearing July 11 , 2012 Page 29 of 57 Rountree: But it's still a -- De Weerd: -- we do need that. Yeah. Rountree: So, that's just something to throw out there, nothing for you guys to answer. The other question is several of the proposed enhancements are based on this elusive permit that we have been talking about for a number of years and apparently it's our turn maybe to go through that process. If we were to get a new permit in fiscal year '13, is there an allowance or a period of time that the city is allowed to gear up for whatever requirements that might be in that permit, so, for instance, the lab, anticipating more tests on a permit we have yet to receive. Would it be better to receive the permit and know that we are going to get three times the tests or maybe we are not. I don't know. To me, again, that's a timing thing. And I appreciate, again, the anticipation, Tom, and based on what we have seen, but just -- just looking at the numbers. Barry: Madam Mayor, Mr. Rountree, that is an excellent point and it's one we have struggled with now for several years. Our indication in reality is what we have seen in a finalized permit for the city of Boise. Obviously, a different system, a much that larger and -- not necessarily more complex, but certainly a larger system and what we are hearing from the EPA, both in my direct conversations with staff locally and at headquarters -- well, not headquarters, rather regional headquarters and in addition to conversations that have been shared with us from city of Nampa staff as well and we think that it's reasonable what we are expecting as of what we are witnessing through these conversations and in prior permit. There is -- to answer your question --generally an allowance or recognition I should say by the EPA in helping to gear up towards permit requirements, there is usually a compliance schedule that's usually required to be met. That certainly exists in the city of Boise's permit as it relates to phosphorus reduction. They have a stepwise reduction that has to occur over a ten year period. As it relates to laboratory analyses that would be something we would have to negotiate directly with EPA. There is a possibility that the EPA could say we will allow you a year, 18 months, two years to get your laboratory up to -- up to date. I think, rather, that there will not be an allowance likely for that, they would just simply say we want these analyticals done and you figure out how to do it. There are outsourcing opportunities for you to do that and there could be significant costs associated with, you know, outsourcing these in the interim while we are building the lab. So, we think that what we have proposed is the most reasonable based upon the information we have, but it's a very good question and I'm not certain I can answer it maybe to your satisfaction. That's probably the best I can do at this point. Rountree: Well, you know, I appreciate the foresight and the best information you have is what we have seen happen in Boise and I suspect you're probably pretty close to being on it. I just asked the question to make sure that on the record if it's been analyzed, it's been looked at, there is a reasonable rationale for moving forward. I do have a little concern about -- if we do get something less than we anticipate and being forward looking on some of this stuff, we might overbuild, but it will be useful at some point in time and the space may be there, you may not have to equip it. Meridian City Council Budget Hearing July 11 , 2012 Page 30 of 57 Barry: Exactly, Mr. Rountree. I think -- I think that's probably where we go if we had maybe a little extra space and -- Rountree: It wouldn't hurt. Barry: Right. And we just wouldn't equip it. Rountree: Yeah. Okay. Crane: Madam Mayor, Councilman Rountree, if I may. Part of our spatial analysis that we did to try to make the best decision was to look at treatment plants that are our size and our projected size across the country. We specifically chose CH2M Hill because they -- their arm runs a lot of treatment plants and we have -- we asked them to look at laboratories across their section and tell us is this too big, is this too small, is this the right size and I even posed the question to the project manager, I said if this was a design build operate and this was your company's money, is this what you would -- you would recommend, right? Because that's what we are looking for. I want to be able to tell my rate payers the same thing, that we have done our diligence and this is -- so, there was a great deal of discussion that took place with the consultant as we were looking at the sizing, because we, too, had the same concerns and I think that I finally got to a point where I was comfortable and they could look at me and say, yeah, if this was our company's money we feel like that it's in -- to quote him, he said it's not too big , but it's not too small. We feel like it's what you're going to need, so those square footages and costs are based on that as well. Rountree: Very good. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: This is kind of a sideways and, actually, I believe for the Finance Department, prompted by number five, the sewer main replacements. My question isn't that something that for finance purposes would relate to the depreciation reserve? Isn't the idea behind the depreciation reserve to be able to replace facilities as they get worn out or used? I know we normally think of buildings, but couldn't we use it for this? Kilchenmann: I'm not -- it is a depreciation type item. I'm not sure what your question is exactly. Zaremba: Well, I'm just wondering whether it ought to be -- if we are setting up the depreciation reserve, the purpose of that would be to pay for facilities that need to be replaced and I know we talked about -- Kilchenmann: Correct. We just don't -- Meridian City Council Budget Hearing July 11 , 2012 Page 31 of 57 Zaremba: -- being ready for like 20 years from now, but wouldn't that apply to something like -- Kilchenmann: It would. However, we don't have a depreciation fund set up at this time. Zaremba: I thought we did. Kilchenmann: No, we don't. Zaremba: Oh. Kilchenmann: We transferred -- we have -- this year's transfer in actual cash is like 250,000 dollars. I think last year we did 250,000. We have three or four -- five hundred thousand in there. So, at this point we -- Zaremba: The purpose is to start -- is to keep accumulating that -- Kilchenmann: Correct. Zaremba: -- but at the current time, in the next several years we are going to do pay as you go -- Kilchenmann: Well, correct, we -- Zaremba: -- and let depreciation from -- Kilchenmann: Because Tom -- he touched on it at the beginning when he first gave his introduction, so we haven't actually set up -- except for these small amounts, a cash fund for depreciation, because most of the assets are relatively new and -- because it's complex when we actually set one up, because that means that they have to go through and really determine what assets will be -- they will use at replacement, so it's kind of restricting, so it's a long process for them to determine how much should be in that fund and when shall we start using it, what kind of assets for replacement. These assets are relatively smaller and not probably the big infrastructure replacements that they will eventually build a fund for. We can elaborate if you would like. Zaremba: Okay. Barry: Madam Mayor, if I might just add to that. Councilman Zaremba, that's all correct. The depreciation fund that we have -- remember we talked about a reserve that we set aside -- is actually just earmarked within the ending fund balance right now and what we would like to do is formalize that, as Stacy was alluding to going forward and Public Works has developed and is continuing to refine the list of eligible depreciating assets that we would, then, allocate that funding for, but that hasn't been formally set up. Right now it's a set aside strictly in the ending fund balance and so that's how we use these Meridian City Council Budget Hearing July 11 , 2012 Page 32 of 57 terms undesignated ending fund balance and designated ending fund balance. The designated component is funds that are earmarked for certain types of reserves, like the depreciation reserve, the operation reserve, the regulatory reserve, and so forth. So, the money does exist, we are just utilizing it and, therefore, you're not seeing it come out through that line item, because that doesn't exist just yet and that's something we are trying to work on as we go forward. Zaremba: That helps. Thank you both. De Weerd: Okay. Council, anything else at this point? Bird: I have none, Mayor. De Weerd: Okay. Thank you. I will call a break right now. Council, there is lunch in the other room. You can grab some lunch and we can reconvene to -- in 15 minutes. (Recess: 11:55 a.m. to 12:10 p.m.) Water Department De Weerd: Okay. We will go ahead and call this meeting back to order and now we will be hearing from the water department. Teller: All right. Good afternoon, Madam Mayor, Members of the Council. Thank you for your time today with us. I'd like to start today's water presentation with two capital replacement projects. First being a vehicle replacement request for our current fire hydrant maintenance program. The city currently maintains and services a growing list of over 4,300 fire hydrants, better protection for public safety and insure that all fire hydrants are accessible and operational for emergency personnel we have developed the following scheduled routine maintenance program. Our current vehicle for this program that you see in the picture to the left is incapable of carrying the required equipment and tools necessary for servicing and maintaining our growing number of fire hydrants. The proposed replacement should be on the right, to be appropriately sized, and equipped with the necessary equipment and tools needed to safely and efficiently perform all aspects for a growing program. Our second capital replacement that we are asking for is a request for four chairs for our administrative office. This request is in alignment with our equipment replacement plan. Now, with that I would ask for any questions on those replacements. De Weerd: Council, any questions?. Rountree: I have none. Radek: Madam Mayor, Council Members, we have 16 enhancements for the water division, two of which have been withdrawn, similar to wastewater to go into the base budget. The first enhancement source water master planning. This enhancement is Meridian City Council Budget Hearing July 11 , 2012 Page 33 of 57 intended simply, I believe, to accomplish two things to, number one, understand our source water resources and, number two, protect our interest to insure that we have a clean, safe water supply at a reasonable cost forever. It includes long-term measurement efforts, pump testing, scientific reports and developmental plans, policies, and regulations. This is the third year that we have requested this enhancement. We have accomplished significant work thus far and we have quite a bit of work currently underway. Enhancement number two is the ground reservoir number two. This enhancement is to complete design and begin construction of a two million gallon reservoir in south Meridian. The storage reservoir is needed to be able to supply peak and emergency water supply to the area as it continues to grow and increase demand. We have made significant efforts to engage local residents regarding this project to understand and address their issues and concerns and we have recently completed a new property search and are ready to continue this effort and move forward with the entitlement process for this project. Teller: Enhancement number three is a request for funding to help assist the water division in developing and incorporating Hansen asset management software into our daily operations. With the incorporation of this software we will gain operational efficiencies through improved scheduling and tracking of priority assets and maintenance programs, such as our critical inventory needs, fire hydrant and valve maintenance programs, well operations and maintenance programs, our water sampling and regulatory compliance and even our newly implemented backflow prevention program. Professional assistance is required to help expedite this software integration due to the large and diverse operation of the water division and the complexity of tailoring the software to suit our specific needs. This is the first phase of a two-phase project and will be completed over the next two years. Enhancement number four is a request for funding to improve the security of our city's water, well, and reservoir facilities. This is a continuation of our ongoing efforts to better secure our water production sites from potential threats and harm. Last year's improvements including upgrading the site security of the installation of a more robust padlock system and doors with nonduplicatable keys at all of our water facilities. Plans for next year's funding includes the installation of security fencing at Well No. 24, a motion triggered alarm system for our storage facilities and the installation of more robust and secure doors at Well No. 22. Radek: Enhancement No. 5 has been withdrawn to be included in the operations base budget, since most of the work is of a maintenance nature. This means that I will have to find other opportunities besides the budget presentation to report our successful projects in this area. But since I'm here now I will take the opportunity to let know what we accomplished this last year. We performed the assessment of Well 12, 23 and 24 and Well 24 was our first assessment of a PVC cased well that's been in service for ten years now and it showed us that -- that use of PVC as an alternative to steel for casing material was a very good decision and this well should be in service for many many decades to come and this coming year we plan to evaluate Well 15 and Well 11. Next enhancement is Well 16B. This enhancement is more evidence that PVC casing was a good decision. This well has been in service for only 16 years and it has a severely Meridian City Council Budget Hearing July 11 , 2012 Page 34 of 57 corroded casing. This well might be rehabilitated with PVC sleeve inside this well casing, however, the well also has problematic water chemistry that includes iron and uranium. So, this enhancement is for the design and construction of a new production well on the same lot. That way we can utilize the building power and the generator that are currently on site and we are currently doing a test well at that location to figure out where we are going to put that production well. Teller: Okay. Enhancement number seven is a request for funding for the purchase of information of additional chlorine analyzers at our well sites and pressure reducing stations. We have made great strides in the past few years and are now completing remaining installation analyzers at our pumping facilities. Next year with the site map completed we will be turning our efforts towards the distribution system in our PRD stations. By installing analyzers at these locations we will be gaining a better understanding of our disinfection levels throughout the distribution system and use this information to better enhance and further protect the water quality while helping to reduce residual concerns of disinfection such as brown water. Radek: Enhancement No. 8 is SCADA system upgrades. Just as with wastewater with the completion of the SCADA master plan we are now ready to begin equipping our wells and PRV sites with new radio and antennas and PLCs -- I'm sorry -- radios, antennas and PLCs and associated equipment and this will help to optimize our system for power consumptions, water quality, and other parameters with the more reliable communications we have. The next enhancement, No. 9, is water main replacement and this enhancement we have done a successful job I believe of messing up downtown streets for the last couple of years on our own and replacing a lot of water main, but this year we are dedicating virtually all the money for this enhancement to the split corridor work, so ACHD will mess up the road for us and we will get to get our -- our water main replacement in their project. Enhancement No. 10 is Well 17 pumping facility upgrade. This enhancement will upgrade the pump and control at Well 17 to allow it to function like other pumps in our system, which provides flexibility and more consistent service to our customers. Essentially, that's a constant speed pump with a cycle stop valve controlling flow into the system and we are going to put a variable frequency drive on it and a new pump, which will allow us to control it and be -- be more flexible and provide better service. Enhancement number 11 was withdrawn to go to the base budget and it is for different facility improvements, valves, VFD harmonic filters, surge tanks, things like that, just to improve our system reliability and robustness and that's in the operations budget now. Enhancement No. 12 is Well 15 treatment. This enhancement is for the design of a water treatment system at Well 15 and is -- will actually be our second effort to begin correcting brown water at the source of the problem. Well 15 will be evaluated, as I mentioned earlier, to assess -- and we will include in the normal evaluation an assessment of whether water chemistry correction can be made at the well itself before we design a treatment facility, but ultimately we believe a treatment facility will be necessary to improve the source water quality at Well 15. Enhancement No. 13, Well 21 treatment. This would be our first effort at correcting brown water at its source. We have completed preliminary pilot testing for treatment at Well 21 and this enhancement is intended to complete the evaluation and design of a Meridian City Council Budget Hearing July 11 , 2012 Page 35 of 57 treatment facility to address iron and manganese and to begin construction at the facility. Teller: Enhancement No. 14 is a request for funding to equip the 8th Street water administrative office with a backup power supply. Only 13 of the city's 19 water production wells are equipped with an on-site power generation unit. These generators, powered by both diesel and natural gas, are capable of running emergency power to critical wells in the event of an electrical failure. Under normal circumstances the city's network of wells is controlled by a central SCADA system located at our water administrative office. In the event of a power failure operators are currently unable to control or receive essential information or alarms from the SCADA system or utilize radio communications. To increase our system robustness and insure continuity of service during periods of emergency we are requesting the purchase of a generator for this location. Backup power supply will be fully capable of powering the facility indefinitely, of course pending fuel, while addressing the operational needs of our SCADA and radio communication equipment. This enhancement will also fill the requirements of the city's continuity of operations plan and will align us with other city facilities equipped with such backup generators like the fire department and police department. Radek: Enhancement No. 15 is land acquisition for reservoir, booster, and well site. This enhancement is for the identification and purchase of a property in northwest Meridian to be used for a future reservoir, booster, and well site. Our goal as -- and this was -- this need for this in the future was identified in our current master plan update and our goal for this enhancement is to obtain a property which can then be designated and publicly signed for this purpose well in advance of the actual project and in advance of development around the site. De Weerd: That would be cool. Zaremba: Way to go. Radek: We do tend to learn from -- learn from the past. That's half the battle. Enhancement No. 16, water line extensions, is to fund the design, construction, and water line extension project in order to expand and improve the distribution system. The particular project that this is scheduled for is the Franklin Road, Ten Mile to Linder project and our water line replacements and -- or, I'm sorry, our waterline improvements and adjustments within that project. Teller: Madam Mayor and Council, we would stand for any questions or comments you may have. De Weerd: Council, any questions? Rountree: I have none. Meridian City Council Budget Hearing July 11 , 2012 Page 36 of 57 De Weerd: None? Teller: Thank you for your time. Radek: Thank you. De Weerd: Thank you. Barry: And with that, Madam Mayor and Members of the Council, we draw to a close our budget request and information sharing with you and turn the time over to you for any additional questions or comments you might have regarding what you have heard today and certainly look forward to that conversation regarding your deliberations. So, thank you for your time. De Weerd: Thank you, Tom, to you and your staff. I know a lot of work goes into the budget presentation, the budget preparation, and I appreciate everything that you have done. Council, discussion? Any additional information needed on any of the items before we go through it replacement and enhancement? Okay. Seeing none. You have the list of capital improvements in front of you -- or capital replacements. Any additional questions on any of these items? If there aren't any we can go into the capital enhancements. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I do have -- on that Ford Ranger, 69,000? Zaremba: Madam Mayor? Bird: That -- is that the -- it's -- is that -- that isn't the -- this truck, the one that's going to take the -- which truck is that for 69,000? Teller: Madam Mayor, Councilman Bird, that's a replacement vehicle from that small Ford Ranger to a larger ton, ton and half -- Bird: That's the one to the -- with the lift and everything. Teller: It will have a crane on -- Bird: Everything on it. Okay. Teller: It will have all the -- yes. De Weerd: We thought it was a Hummer. Meridian City Council Budget Hearing July 11 , 2012 Page 37 of 57 Bird: You're not replacing -- Teller: Yeah. I was kind of shocked, too, when we quoted it out. Yeah. The equipment on the truck that -- Bird: Well, I think that's cheap with all the equipment and everything. Great. Teller: Yeah. I was shocked when I saw that. I was not expecting it that high, but -- yeah, that's actually what it cost, so -- Bird: I thought that was awful expensive for a Ranger. Teller: They like the stereo system. De Weerd: Can you maybe do something with that line item to make it a little bit more descriptive to reflect that there -- it's equipped with hydraulic or something. Because if I saw -- Bird: Maintenance Truck. Zaremba: Put the word upgrade in there. Madam Mayor, the comment I was going to make is that we saw yesterday that the Parks Department is replacing Rangers for 21,000 dollars, something like that, so -- De Weerd: I think we need to -- Zaremba: I think we need to identify somehow that we are not replacing a Ranger with a Ranger, we are upgrading. Bird: I would pull the Ranger out if it was me and put in a one ton maintenance truck and -- De Weerd: Utility or -- Bird: -- utility truck -- De Weerd: -- something. Bird: -- with equipment. Rountree: Madam Mayor? Bird: And look at that and they are going to be just like me. De Weerd: If I can just give Mr. Rountree a -- Meridian City Council Budget Hearing July 11 , 2012 Page 38 of 57 Kilchenmann: We probably should have put that as an enhancement, because it is a change, rather than a replacement, so Todd can fool -- fool around -- Todd can -- but, yeah, in the future I would recommend -- De Weerd: I don't know. I thought he had double -- Kilchenmann: Since we are tripling the cost it should have been an enhancement. But we will see where it is and -- De Weerd: Okay. Any questions in this section? Okay. So, we move to enhancements. Okay. You have your Public Works section or division. Any questions in this one? Which, by the way, includes environmental. So, Mollie, I was not trying to avoid you. Hoaglun: I'm -- Madam Mayor. The safety administrator, if I read this correctly, we have an ongoing -- where we have been doing 25,000 dollars -- somewhere I thought I read 31,000. And I guess I'm making an assumption here that somehow this person comes into the training, but there is already a safety individual designated for each department to oversee that. Maybe that's a question for John. Should have asked this earlier, I apologize, John, but on that safety administrator, do you have people within each division who are in charge of safety to some degree or another or it's just safety is everybody's responsibility. I know that's the mantra, but how does that process work? McCormick: Madam Mayor and Councilman Hoaglun, we do have a representative in each division that have association with the safety activities, particularly as it relates to identifying hazards and dealing with things of that nature. We don't have a centralized focus around that beyond the health and safety manual, the safety committee that oversees that process. Typically that would report into the deputy director, which has since retired and we are look at replacing him. But this is not a dedicated effort, so it's a matter of, you know, people doing their other jobs and trying integrate a safety component into that work. Hoaglun: Okay. Bird: Madam Mayor, while John is up there. John, what are we paying now, 25,000 under contract? Is that what that -- McCormick: This year I believe it will be about 37,000 is how we will end up the year. Bird: And, basically, this contracted safety guy does inspections. Does he inspect the facilities? McCormick: Most of the work that he does is associated with training and providing some oversight in a couple of areas as it relates to the operations. He does nothing for the engineering, the other divisions outside of water and wastewater. Meridian City Council Budget Hearing July 11 , 2012 Page 39 of 57 Bird: But he does the scope that you have requested for that contract; right? McCormick: He does. Bird: And if you change the scope he could also do that; right? McCormick: We could. Bird: And how often -- how often does the water department or the wastewater treatment department have a safety meeting where all employees come in for ten or 15 minutes and go over stuff? How often do we do that? And who does that? McCormick: Each of the divisions have -- just a moment. We will let them speak to that. Teller: Madam Mayor, Councilman Bird, currently at the water division we hold safety meetings on a regular basis every two weeks. We are actually looking into that right now to hold it every week. Just small -- Bird: With all your -- with all of employees -- Teller: Oh, yeah. Bird: -- that's working that day? Teller: With all the staff working -- Bird: Is it just a little table top meeting that -- do they sign in or our minutes kept? Teller: Minutes are kept and they do sign in. Bird: Okay. Teller: And some of them are small, like you said, ten, 15 minutes, and some are a little bit longer, that can be up to an hour with a video and stuff and like that. Bird: And who conducts those? Teller: We conduct those inside with our representative on the safety committee. He's the one that's leading that up. Bird: Okay. Ballantyne: And currently -- Madam Mayor and Members of the Council. Currently wastewater our retired assistant superintendent was headed -- did head up all of the safety, so we have -- we have moved some of those duties to other folks while we Meridian City Council Budget Hearing July 11 , 2012 Page 40 of 57 recruit for that position. However, we have several things that we do do outside of the safety committee and our representation on the safety committee. One of the things we do is we require or we have our employees -- every month we have one of the health and safety procedures that's in the whole manual and we have them review it and sign off that they reviewed it and we continually go through the whole manual and we get to the beginning and we start over again. About on a quarterly basis we would do what we call sort of refresher PowerPoint training for -- at the general staff meeting where we will go over confined space entry, rough grade protection, those kind of things. We have a program of PowerPoints that we have developed that we do. And, then, on a routine basis we do a lot of confined space entry and those kind of things and we use a permit system to where all of the folks that are going to be involved in that project will have a prior meeting and they will go over the permit. The permits are written and signed. At staff meetings folks do sign in and folks do sign or initial that they have read the H&S safety proceedings. The rest of the training and the other things are all broad with either our contractor or other outside sources. So, that sort of large safety program and, then, right now thankfully Laurelei has agreed to head up what Gail was doing until we can find a replacement for -- Bird: Madam Mayor, follow up? De Weerd: Yes. Bird: If an operator finds an unsafe deal at either one of you guys -- who does -- who does he report that to right now? Ballantyne: I would say he could report it to his supervisor, but any of us. I don't think -- you know, he -- anywhere in -- Bird: Have a designated at each plant. Ballantyne: We do not have -- they would bring it forward in one of the staff meetings and we would make note of it. So, they could -- you know, we want to make sure they feel free that they could report it to anybody and we would take action on it, but there is not a designated this is the following procedure that you do in that event at our place currently. Bird: And that's something that I feel we should have in place at each plant and I think we can deal with. Two guys are very capable of doing it. I would -- to be truthful with you, I would sooner stay with the contract -- if our scope needs to get a little bigger, do it, see what it is, see what it's going to cost, but -- over hiring another employee, that's my personal opinion. I think that we are capable and it's probably better if we do internally within our plant. Every employee should be looking out and every employee should have weekly or bi-weekly or whatever you want to -- however often you want to have it. You should have meetings and go over this stuff, just remind them of -- to watch this and this and this. And it don't take 15, 20 minutes, to have a cup of coffee and do it. So, I think that we stay with a good contacted deal. I know that as a Meridian City Council Budget Hearing July 11 , 2012 Page 41 of 57 contracted thing it is very -- very successful on the very large construction jobs. You never see inside safety people anymore. They are all constructed out. Because it's nice to have an outside eyes. If I'm working for an employer I'm going to be more favorable to him if I see something than if I'm on the job as a -- working for somebody else doing that as a job. I would like to see us at least go another year under contract with a different scope -- John, whatever scope you think you need, you know, within reason. And those two guys right there are capable to make sure their plants are handled. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: It was my understanding that many of the safety things that you just talked about -- that the current contractor is not involved in those. They show up for a meeting now and then, but I -- it was my understanding that to get the scope of what we are talking about we would probably end up paying that contractor four times what we are paying them now or five times. It's a very part time -- that was my understanding. Extremely part time and not really available when we need them sometimes and that was my understanding for why it would make more sense to have somebody that was right in our hand and on site. But tell me a little bit more about what we depend on the current contract to do. Ballantyne: Councilman Zaremba, everything I mentioned was outside of the contractor. The PowerPoints were developed in-house. The H&S safety procedure, the views we do in-house. We do our own confined space entry permits. That does require annual recertification training and that's -- the contractor does provide that. But everything that I mentioned that we do on the safety side is outside of our safety committee and the interaction with the contractor. He's providing some overlay BAT, a few training sessions for us and he does go through the plant and sort of gives us a list of what potential violations are each year, which we address, and from -- I guess from my perspective that's about all that he's providing our division at this point. Teller: I would agree with that. McCormick: And if I could respond to that, Councilman Zaremba, and maybe address Councilman Bird's point as well. We have just gotten to the point of having a well-defined program with policies and procedures in place, with the training identified for dealing with hazards, basic safety training in addition to that. So, that scope of work is going to grow tremendously, because we not implementing that program as it's defined. And so also as regulations come into the mix, you know, we have challenges on that front, too. So, what you have got is a fairly casual approach to managing safety and health. It's a good one. It's a good start. But the resources available on a -- kind of casual part-time basis to come in and do spot things, you know, and we do the other things operationally to keep things going and keep the engagement level up with employee base, but beyond that it's not happening on the training side to the extent that Meridian City Council Budget Hearing July 11 , 2012 Page 42 of 57 it needs to. So, that would be an additional scope of work, Councilman Bird, that would have to be incorporated, as well as the extension of that beyond the wastewater treatment plant and the water division. Bird: Madam Mayor? De Weerd: Uh-huh. Bird: Could I ask another question? I just -- our inspectors that go out on the job, who is doing safety for them? Because every job they go on is -- is -- most contractors are married to OSHA now, you know, they -- who is giving them the safety and who is -- when are they having their meetings and going through all of this stuff that legally you have got to do. McCormick: Councilman Bird, I can't speak for the inspectors that we have on contract Bird: Those guys, they are doing it. McCormick: But -- Bird: I'm talking about the ones you got under Public Works that goes out on the sewer lines and water -- the guys that are -- I see -- I think it's them that are going out here all the time carrying stuff, going over and getting Public Works cars. McCormick: Oh, there you are. Jensen: Madam Mayor, Council Members. The -- the contract safety consultant that we do have that goes out on these projects -- capital projects development projects, he goes out there and verifies -- verifies that the project is safe for the inspectors to be out there doing a project. Their inspections also. Goes up there and verifies that the -- that the inspector's inspecting safely. But those are all spot inspections, they are unannounced, so that kind of helps out as a third-party consultant going out and doing it unannounced. So, he -- he verifies that everybody is safe on site and that the site is safe for the inspectors. Bird: Madam Mayor, follow up? De Weerd: Uh-huh. Bird: Is that -- is that our inspector or is that the inspector that the contractor hires on the job -- the particular job or is that the one we contract to doing that? Jensen: Our contract safety consultant does that for -- for the city employee inspector Bird: Okay. Thank you. Meridian City Council Budget Hearing July 11 , 2012 Page 43 of 57 Jensen: Thank you. Bird: That answered it very good. Thank you. Thank you, guys. Hoaglun: Madam Mayor? De Weerd: Mr. Hoaglun. Hoaglun: I'm kind of like Councilman Bird, I don't know if we are there yet for afull-time safety administrator. I'm -- I mean safety is that issue that they are to be focused on every day in their jobs, because what they do is something -- they have to pay attention to. And if we need to increase that contracted bid, it sounds like there is some dissatisfaction with the current contractor, I'm okay with that, coming back and saying it's going to be instead of 31, 37 thousand, it's going to have to be 45 thousand and there probably will be a point where we go, okay, it's reached that level of funding that it makes sense to have someone full time. I don't know. I listened very carefully to what was being said and I don't know if I was convinced enough that that time is here yet to hire someone full time. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I -- don't get me wrong, I'm open and I want us to be the safest working place that there is and I think we are thanks to our employees and our managers. I would like to get a more defined scope, John, to a safety -- and I think there is two or three firms out there that are pretty reputable on this safety thing and I would at least like to try it another year, this -- under the existing -- and I'm like Councilman Hoaglun, I'm sure at some point -- and it's probably going to be sooner than we want it to be -- we are going to have to have a safety guy. But Idon't -- I just don't see a reasoning for afull-time employee right now, because there is more -- there is more to -- than just wages and benefits to a full-time employee in my opinion. Zaremba: Madam Mayor? De Weerd: Yes. I'm sorry. Mr. Zaremba. Zaremba: I don't want this to totally sound like an opposing opinion, but when I first talked about this with staff or they talked about it with me, I mean the thing that I factor into it is -- I'm always wondering with every contractor we have, when is the time that this should become an in-house position or should it never. As we see from the other enhancements and the other things that are going on in 2013, I can totally agree that if we -- if we talk about today maybe it isn't time today. But all of the things that we have going on -- I'm assuming we are going to approve all of or most of them -- in 2013 in all of the Public Works areas, having a dedicated person whose responsibility it is to make sure everybody understands -- I am in support of having this be an in-house person that Meridian City Council Budget Hearing July 11 , 2012 Page 44 of 57 reports to our staff and is responsible for our staff. I just -- maybe that's just a gut feeling, but I think we have enough things proposed for 2013 that it's a bigger position than I think we should contract for. Bird: Madam Mayor? De Weerd: Mr. Bird. Or do you want Mr. Barry's comment first? Bird: Go ahead, Tom, and, then, I will follow. Barry: Madam Mayor and Members of the Council, respectfully, I appreciate the dialogue that's going on and based on what I'm picking up I would be comfortable saying a couple things here and I will give you a recommendation for your consideration. First of all, we do know that in the department, based upon a recent update of our health and safety manual, which numbers something on the order of 33 chapters, that we are deficient in meeting the policies and procedures outlined in that manual. While we do have some -- some policies and programs in place and some training that is occurring, we do feel that that needs to be improved. However, I don't think that the department has done an adequate job in justifying to you what that -- what those improvements would need to look like and, therefore, in justifying how we would move forward with closing gaps as we -- as we feel they exist in the department. So, my recommendation would be to, essentially, respectively withdraw this particular enhancement and ask that you allow us to go back under this -- either enhanced contract or a contract with another vendor to do an audit of our safety program in the department and come back to you with recommendations of what that audit has found and present to you recommendations that come out of that audit as well. I think that way we could all have peace of mind knowing how big of a gap, if any -- and we believe there is one. But how big of a gap there is with regard to safety, improvements, training, policies, procedures, those sorts of things and make a more reasonable and responsible presentation to you related to that particular activity within the department. So, that would be my offering to you with the suggestion that we do up the allotted contract amount to -- I think Mr. Hoaglun said something like 45,000. I think that would be reasonable to include maybe an audit as a component. That would be maybe my revised recommendation to you for your consideration. Bird: Madam Mayor? De Weerd: Thank you, Tom. Yes, Mr. Bird. Bird: One thing, David, I think your -- we do have a lot of projects, but every -- every project -- every general contractor that we have on deal should be given a safety book of all his subcontractors and everything, because everybody has to turn in a safety book. Your safety program and all this stuff. Tom, I think that's a great idea. Forty-five, fifty thousand, fine. Let's see what we can do. You're getting these safety manuals and stuff for every project that you're subcontracting out, am I not right? Meridian City Council Budget Hearing July 11 , 2012 Page 45 of 57 Barry: Mr. Bird -- Bird: They are on file with the job shack. Or should be. Barry: They should not at the job shack, but that's not -- Bird: You might want to look at some of them and get you some ideas. You got a great idea. We do need -- with the chemicals and stuff, your plan out there at wastewater treatment probably has -- should have the most safety conscious set of documents that there is and I know we are lacking in that. Barry: Uh-huh. Bird: It's just -- thank God we have had good people there. But you're dealing with something out there that it's very dangerous and -- or could be very dangerous. So, having an outside source I think is -- to help us with that, set up a policy, a very strict policy, and, then, it's up to us to make sure that it's lived by. I think you got a great idea. I'm for it a hundred percent. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I think Tom's suggestion is a fine suggestion. I'm confused, however, what this job is intended to do from what I heard and what I read. My emphasis and primary emphasis in this area is the health and safety of our employees. I hope that's the primary purpose. I do get a drift that there is some kind of an enforcement capacity that might be included in this on job sites and I'm not sure that's where we want to go with this particular position. It sounds like our contracted safety person goes out on job sites and looks at the safety conditions, as opposed to training our inspectors on what they should be looking for. So, I -- to clarify that point in your job analysis, if this, in fact, is to do that and maybe some more activities, I would like to know that before I move forward with it. But I'm comfortable we need to do this, whether we hire it or whether we expand our scope of deliverable from a consultant. Barry: Thank you for your question, Councilman Rountree. The position was initially conceived to close gaps that, obviously, we have done not necessarily the best of job identifying for you. But with regard to safety, the training component -- we know that we are not providing enough training. We know that there is more procedures and policies in our revised health and safety manual than we can even get to in a year. I will tell you that having been, essentially, overseeing the update to the health and safety manual, that it has taken us roughly 18 months to do just the update internally alone. And that was not necessarily even the most robust of jobs for that matter. The conceived components of this position are to provide, first of all, policy administration and compliance with policies through a variety of different mechanisms. One would be training, which is a huge component to what we do in the department and, then, also Meridian City Council Budget Hearing July 11 , 2012 Page 46 of 57 auditing, that is some of the spot checking that was referred to earlier that currently our consultant is doing. And, then, also compliance and oversight of impending regulations that are coming. We don't even really track OSHA improvements or Labor and Industry improvements that are coming our way. I mean there is really -- there is no one looking at that. We don't feel -- and, again, vendor issues are one thing that we can set aside, but we are just not feeling comfortable that we can provide the kind of safety, training, auditing and compliance programs that we really need for the department. So, this position was intended to sort of address all of that. Now, what's apparent here is that unlike how we have approached this in the past, we have developed a program and outlined the components of the program and the staff resources required to meet the program. I will use a recent example, the inventory management program. That's how we -- how we went about that. In this case we approached it a little bit differently, believing that this particular person would help develop the program as in-staff or in- house person. What I'm hearing is that the Council might feel more comfortable if we -- we went back to just kind of the way we did it before, which was develop the program, identify the gaps, the shortcomings and the overall recommendations and the level of effort that would be needed to close those gaps, both in a short term and a long term basis, which is why I make the recommendation I did. So -- so some of the questions that you're asking, Councilman Rountree, which are very important and very good questions, were intended to be addressed once the person got on staff, but I'm hearing that that's not necessarily a comfort area for the Council and I'm okay with that, too. De Weerd: Okay. Bird: Madam Mayor, then, can we -- I guess -- would that remain an enhancement to change that -- to change that from -- that wouldn't be an enhancement -- it would wipe that completely out and that would just be on his existing operations and just take -- take it up from whatever you're at now to -- Rountree: Professional services. De Weerd: Yeah. Todd will -- Lavoie: Madam Mayor, Councilman Bird, what I will do is I will keep the line item here and just represent the difference between -- I believe the value is going to be 45,000, is that what I'm hearing? The contracted price? Hoaglun: Yeah. I'd mention that. I mean we could do 50,000. Lavoie: Okay. Hoaglun: Give them some room to be able to go out there and find the contractors they want. Lavoie: So, what I will do I will go ahead and figure out the difference between our current contract and I will work with our purchase department to verify the contract and, Meridian City Council Budget Hearing July 11 , 2012 Page 47 of 57 then, I will split the difference on this line item so we know what it represents and I will remove the wages and whatnot so you will have an increase in ongoing operating, everything else will fall off. De Weerd: That's good. Okay Zaremba: And Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: Since I expressed an alternate opinion, I would chime in that I agree with the new suggestion and it sounds good to me. De Weerd: Good. Okay. Any other items in the Public Works section that needs to be discussed? Hoaglun: Madam Mayor, I just want to comment and -- on the irrigation system study. I think Councilman Rountree brought up some excellent points about how that's going to be phased and what I heard from Tom and others was the fact that that's the approach that you're going to take, because if we hit some things that are go, no go, and let's spend the rest of the money if we hit something that going to say, hey, is this not workable. So, I'm putting it in your capable hands to go about it in that process that he talked about there, so -- Jensen: Madam Mayor and Councilman, I think that's the exact -- excuse me -- exact approach that we will be looking at when we draft work plan and things of that nature just to find those stop gap measures that are go, no go, type of things. Hoaglun: Thank you. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: Question on the administrative assistant. The proposal is just to fund that with monies from two part-time positions. Who is going to pick up the load of those two part-time positions? Barry: Councilman Rountree, you mean who as in water or wastewater or who -- Rountree: Do you have personnel to do that or are the functioning as -- Barry: I see. I'm sorry, I misunderstood. Rountree: Are we going to see a mechanic come back to us next year or a pretreatment person full time next year? What's the deal? Meridian City Council Budget Hearing July 11 , 2012 Page 48 of 57 Barry: No, sir. Thank you for the question. And I always appreciate those questions. No. Those are two positions that have been vacant. The pretreatment inspector position has been vacant for some time and with the addition of Mollie and oversight of that group and consolidation with the assignments in that group we have determined that we can eliminate that position and take whatever duties that that particular person was going to do that would still need to be retained and get them covered by an administrative assistant position. Additionally, on the part-time mechanic position that was a position that was occupied until a recent retirement and, then, that person left our -- left the city and we kept the position on the books to evaluate whether or not we would need it before we went straight to hire. We have determined talking with the wastewater division staff that it's not needed. You might recall I think two years ago we added a full time mechanic. That full time mechanic gave us a little bit more capacity on the mechanical side of maintenance and so with the retirement of the part-time position we have decided that we are okay mechanic wise and so aren't recommending, you know, that that position be either rehired in part time or full time. Additionally, the duties of this position that we are recommending would help with records retention department wide, not just to service the three divisions that we have talked about earlier, so -- Rountree: Thank you. De Weerd: Okay. Any other questions on this? Okay. Shall we move to water then. Or is that wastewater? Bird: Water. De Weerd: Water. Rountree: Water. Lavoie: Excuse me, Madam Mayor. I'm going to quickly try to reset this computer. We seem to be having issues with it. So, I'm going to reset Excel real quick and I will be right back. De Weerd: Okay. Rountree: Does that mean we have a short break? De Weerd: Yeah. Why don't we take a five minute break. (Recess: 1:01 p.m. to 1:12 p.m.) Council budget decisions and discussion De Weerd: Okay. We will get started again. Did you get everything reset, Todd? So, Council, we are in the water section. Not treading water. Just looking at it. Meridian City Council Budget Hearing July 11 , 2012 Page 49 of 57 Rountree: Madam Mayor, I just have a question I brought up about when do we -- when do we budget for some of these if we know a project that we are anticipating doesn't happen or it's kind of in flux? Is it better to anticipate -- put it in the budget or is it better to add to the budget once we know the project is going to happen? I'm not opposed to the budget item itself, but -- De Weerd: And that's particular to the extension for both water and sewer on -- Rountree: On Franklin. De Weerd: -- Franklin Road. Rountree: Yeah. De Weerd: I know that Caleb was going to take a look at that, because, again, that question did come up from a business owner. So, I -- I had heard that it was coming this next budget year, but -- Bird: Madam Mayor? De Weerd: Yes, Mr. Bird. Bird: I -- I don't have any problem putting it in the budget, because we can always carry it over and hopefully we will luck out -- let's start in FY-13. I don't mind leaving it in, because we can always carry it. But I think some projects -- I'm like Councilman Rountree, some of the projects that we know isn't going to we -- we don't need to be shoving it in the budgets. De Weerd: Well -- and I think that our Public Works staff and all the divisions have been very conscientious about that and the statistics they gave us and percentages of budget used is pretty impressive. So, I'm sure if they didn't anticipate they wouldn't be doing it next year, you wouldn't be seeing it. But I'm -- Rountree: Madam Mayor. I'm okay either way. I just brought it up as we may be looking at having to slide that one more year. Hoaglun: And, Madam Mayor, question for Finance on this. That money, if it -- it stays in the interest generating account until it's needed to transfer -- although there is not much interest out there -- but you know, a million dollars at, you know -- De Weerd: At zero Hoaglun: -- .001 percent generates something, but -- Meridian City Council Budget Hearing July 11 , 2012 Page 50 of 57 Kilchenmann: Madam Mayor, Members of the Council, yes, it does stay in the investment account and, actually, we have most of our money in long term, which generates a whole one percent interest, so -- Bird: Aren't we getting two? Kilchenmann: No. We do -- and at one point in time with the Enterprise Fund money we earned three or four million dollars a year in interest, but now not so much. Hoaglun: Thank you. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I think I agree with the consensus that it makes sense to leave it in. If necessary it can be carried over. The only thing that would be a caution to me is if we are setting this money aside and there is some other higher priority project that could have been done instead, but I don't believe that's the case. These -- these projects need to be done at same point anyhow and I'm comfortable with a solution of leaving them in for 2013 and if it slips to 2014, then, we carry it over. De Weerd: Well, believe me, I think both water and sewer every once in awhile have an opportunity to bring -- an opportunity to approve an amendment, because sometimes ACHD all of a sudden comes up with a rogue project and we never want to lose an opportunity to participate and get our system upgraded, but it's -- some things are hard to predict. So, any other questions in regards to water? Rountree: Again, it's not a question with respect to the budget, but the comments I made I think at the last -- couple weeks ago at a Council meeting about getting some information on the timing and prioritization of treatment on the wells. This has a further study on -- I think Well 15. We have already -- we already know and are approved with the study and the advancement on Well 21, but I'd like to see some rationale of how we approach the wells and how we are going about establishing what treatment and when. De Weerd: That's a future agenda topic . Barry: We can provide that. I can't recall, Mr. Rountree -- we did come to the Council some month or two ago to talk about water treatment. I don't know if you were present or not, but what we will do is we will go back and look as we don't want to duplicate information that you might already have if that, obviously, didn't answer your questions. But we will look that up and if you weren't here we will get that information to you separately. If you were and, then, what we will do is we will come back and do a brief full Council presentation on answering and adjusting your questions. Does that sound okay? Meridian City Council Budget Hearing July 11 , 2012 Page 51 of 57 Rountree: That's fine. De Weerd: Okay. So, we move to wastewater. Rountree: I have nothing. Hoaglun: I want to -- Madam Mayor? De Weerd: Uh-huh. Hoaglun: Just on number 17, the journeyman electrician. Councilman Bird brought up something I thought was interesting and that's the number of hours that electrical work is being done and, then, 200 some hours and, then, jumping to a full-time person where we have 2,080 hours. And that seems like a big jump. And, then, I'm wondering do you need equipment, do you need a truck, do you need -- what do you need? I'm -- I'm not so sure about number 17. So, who draws the short straw to come up and kind of defend that one? Barry: Councilman Bird, Madam Mayor, Members of the Council, Tiffany and I can address that issue, but first to clarify -- I'm not sure maybe if we made this -- made this clear or not. But the scenario that Mr. Bird had discussed about 250 hours was not mathematically correct, all due respect, Mr. Bird. Bird: Yeah. I just -- Rountree: Dropped a zero. De Weerd: We just wanted you to say that. It might show up in your evaluation. Barry: I'm sorry, Mr. Bird. I took one for the rest of the Council. No. If you do the math, for example, of the 100,000 dollars that we have, essentially, identified as the cost that this position would -- the work that comes with that cost that this position would, essentially, do and you divided by that 2,080 hours, you get, essentially, about 50 dollars -- 48 dollars an hour of time. Now, you used an 80 dollars an hour figure. At 80 dollars an hour that comes up to 166,000 dollars. So, there is a difference there. It's certainly not 250 hours and that's not what we have suggested, it's not what our data shows. We are not going from 250 hours to 2,080 hours of work. That is just -- that's not accurate. So, I needed to make that point, so that we knew we are dealing roughly with the same level of work, but just in a different manner and what we believe is a more cost prudent manner. So, with that I will turn it over to Ms. Floyd. Floyd: So -- and maybe to just add to that, we had spoke during the breaks and something that Councilman Zaremba had shared earlier, some things that we are considering and maybe what we call some clean-up activities, to certainly evaluate our plant and our water division and any areas -- other areas within the city and make sure that we are covered as far as wiring is concerned and what kind of changes we may Meridian City Council Budget Hearing July 11 , 2012 Page 52 of 57 need to make or in upgrades that need to be looked at, you know, we don't have anyone really looking at that, they are contracted in, they come and they address a job. Also with 2013 with the projects that you have seen come forward there will be much work involved in there. If there is any chance we can use the in-house electrician to address that and reduce the cost of the new buildings and things that we are working on, that may be an opportunity for this position as well. We even considered that. Hoaglun: Madam Mayor? De Weerd: Yes. Hoaglun: Tiffany, are they going to need a vehicle? What do you anticipate in those -- some of those areas? Floyd: There is definitely -- that is definitely something we that have thought about. I think with our current fleet we could probably accommodate them. The bulk of the work would be probably in the one location at the wastewater division. We do want to keep in house some projects at water, but they are somewhat short lived and, you know, I think that we could accommodate that with our current thinking -- did not account for -- that I'm aware of any additional vehicle for that. Hoaglun: And that's a true statement, the water and electricity is short lived. Floyd: Thank you for agreeing, Councilman. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Tiffany -- and maybe somebody else has to answer this, but how many -- how many service calls did we have last year? I mean what did we average? We averaged three a month, two a month, ten a month, 30 a month? Floyd: Madam Mayor, Councilman Bird, in terms of service calls related to electrical type work? Bird: Electrical service calls. Floyd: The electrical-type work that we are referring to here is contracted projects. So, the three to four vendors it's when there is something that needs to be installed, that that type of number, Iwould -- I don't have that number handy as far as how many, you know, times that they were called in. I do have the amount of dollars that we paid each and every vendor for the type of work that we contract with them to come out and do. Freeman: Tracy might know Meridian City Council Budget Hearing July 11 , 2012 Page 53 of 57 Floyd: I will defer to Tracy Crane. Crane: Madam Mayor, Councilman Bird, we do not have -- I don't have the statistics of number of calls on the top of my head. I think we could probably get some data back for you from Hansen. A lot of this is, as Tiffany said, we do have a couple of electricians that are on call, if we have a drive or some piece of equipment that won't start, then, we will call them out and try to do some emergency stuff. A lot of it won't show up maybe on call, too, it will be that panel needs to be replaced and some proactive work that wouldn't necessarily show up in those work orders, the emergency call out type work orders. Most of our maintenance staff they will come in and find a way to get the equipment running again and, then, we would call a nonemergency electrician say the next day or whatever and have a wire pulled. I can certainly see if our asset analyst can look and see, you know, how many calls that we actually had that were electrical related, but as far as having that number -- Bird: And to be truthful with you, if you called them out it's usually reactive not proactive. Crane: Typically, yes. Bird: And to put it -- Tracy, do you think there is enough proactivity that would save us money in the long run by wear and tear on the equipment by having afull-time electrician who I understand is not going to be able to go through every piece of equipment every month or every day. In your opinion do you -- can you justify a journeyman electrician on a full-time basis out there? Crane: So, Councilman Bird, I would say that the -- the enhancement is to share it with water and its well, too, so I -- just to make that point, so that it would have been a shared position between water or wastewater. I think that our facility is big enough now that I would defer sort of to the financial analysis first to -- you know, does it make cost -- is it cost effective, does it make sense. If the dollars and cents workout, then, in my opinion, yes, we could utilize them -- some question of whether they could do some kind of SCADA programing, but even if we had a candidate that didn't, we could get them trained and that would save us a ton and, quite honestly, the whole industry is going that direction. We get more technical and more computers controlling everything and more of the prints and those kind of things. I would also add, you know, every one of these projects they bring all the electrical prints and PNIDs and I confess to you they just look like lines on a piece of paper, so it would be good to have someone in house that you could run that through that's sort of an electrician and say what are these drawing and things, they make sense. If you get to those electrical drawings and -- a lot of times they are way over my head and so -- Bird: And I understand that, but somebody stated that we could use them on -- on our bid -- our bid out projects, well, you're not going to do that. If you got -- I mean the thing -- and another thing I fear, to be truthful, we get one this year, we give you one this year, you're going to find out that there is a two man job there, because go look back Meridian City Council Budget Hearinc July 11 , 2012 Page 54 of 57 and see how many times you had to have two electricians on that job. Next year we are going to have a request for another journeyman electrician; right? Floyd: That is not in our plans. De Weerd: Good answer, Tiffany. Bird: I tell you what -- Crane: That is not in our plan. Bird: I tell you what, I don't say -- we try this for a year. If you really feel you could keep one busy and really need one out there and in the long run it will save the city money, between your two departments, I can support it. Floyd: Thank you, Councilman. Crane: Appreciate that very much. De Weerd: Thank you. Anything else on item? Hoaglun: No. I agree. De Weerd: Okay. Council, anything else in the Enterprise budget request in front of you? If not, that is it for the Enterprise Fund. Stacy, any final comments? Kilchenmann: Amen. Zaremba: Madam Mayor? Kilchenmann: Oh. I was just going to clarify that we did not include depreciation expense in the summary this year, so that 5.7 million that you see is use of fund balance, that's similar to the General Fund, that's actually use of fund balance for capital projects. So, operating wise they are in the good and, then, they are using certain portions of the fund balance to fund capital projects. But other than that I just want to thank everyone again for their hard work. I think we started this process, what, in January, February and we worked on our capital improvement plan, actually, forever it seems like. So, thank you to the departments, the Council, for participating in the process and the Mayor for driving it, making sure we get it done and also her active participation. Bird: Madam Mayor? De Weerd: Mr. Bird. Meridian City Council Budget Hearing July 11 , 2012 Page 55 of 57 Bird: I want to thank you guys in Finance -- all employees and departments. You don't know how much easier -- while our budgets are a lot larger than they were ten years ago, you don't know how much easier the budget process is, because starting with Tammy on through the Finance Department and to each one of you departments, I don't know about you, but I think they feel the same way, I appreciate all this work that you guys put forward, so we don't have to ask a bunch of questions and we also know that you don't put much fluff in it. We just have to watch Tom. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: Did we want to take John McCormick up on his offer to discuss City Hall backup power more or just leave it as it is for now or -- Bird: Leave it as it is. Zaremba: We know it needs a little further looking at, but leave the number in that we chose yesterday. I also would thank everybody. I wasn't subject to the older budget process, but as long as I have been in this position it's -- it gets better every year and I do appreciate how everybody works together and weighs each other's enhancements and each other's needs and the five year trends that Todd proposes to everybody, all of that makes the process easier and when it comes to us budget -- balanced budget first we clearly understand if we change something, then, we need to change something else equivalently, but knowing that it was balanced to begin with certainly sets us off in the right direction and I appreciate that the Mayor and the department heads and all of the other wonderful people put into it and Finance Department as well. So, thank you all for making our job easier. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I know there has been some reflection and musing about ten years ago. Igo back to the 20th century and say that we are a century ahead of that time now. It was brutal 20 years ago and by the time you got done you really didn't know what you had or why you had it, but you moved forward. The thing we did have back there was some vision for Meridian and the vision for Meridian was it was going to be a great place and it was going to grow and by golly it did and it did because of the previous folks and folks like you that have given the time and the energy and the care and enthusiasm for your community to make it work and our budget process now I think is a reflection of our community. It's open. It's real. If you want to know where the money goes, if you can read and you're patient, you can find almost every dollar and it's terrific and I thank you all for your time and the Mayor for her leadership. De Weerd: Thank you. Meridian City Council Budget Hearing July 11 , 2012 Page 56 of 57 Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: Do we need a motion to publish this for the public hearing? De Weerd: Yes, we will need to. I think that Mr. Hoaglun had a comment and, then, we will do that. Hoaglun: Madam Mayor, thank you. Just a quick comment. Councilman Rountree went back to the 20th century. I will go up to the nightly news last night. I don't know if any of you saw the mayor of Scranton cut everybody's -- all employees, fire and police included, down to minimum wage because they are in such financial dire straits. In a town about our size. I think they are 70, 80 thousand, something like that, and they are looking at a property tax of 78 percent, which the citizens just can't handle and -- that's the increase on top of what they already pay and -- and so we are not in that situation because of the work of the Mayor and the employees of this city and we appreciate that. I hope Public Works doesn't feel like you're picked on. I mean your Enterprise Fund, you don't have the competition like the General Fund, you know, all those folks are scrambling for the same pie, you're Enterprise Fund, that's -- but, you know, we recognize the fact, as you do, it comes out of the same pocket, tax payers, rate payers, it -- because it's your pockets as well. So, we try to go through this as carefully as possible and you already have -- we sit through the process as liaisons and we really appreciate the work that goes into this and what you do to reach this point. So, I hope you don't mind us poking a little bit more, but just what we have to do. Anyway -- but thank you all. De Weerd: Well, I will just put in my two cents. I think that Council has recognized that there is a great deal of work that goes beyond -- behind this and I will extend my appreciation to the Council as well and each one of you as Council Members attended our good cop, bad cop, a show that Todd and I provided with each of the departments as they came in and did the line by line item discussion and that makes a difference. Certainly the participatory approach that we have in setting our budgets and really scrubbing them and looking at every line has benefitted everyone from those that manage the budgets as we move forward to those who, then, anticipate them as we go into the next year and I will give kudos to the Finance Department and also to the directors that they look holistically at this and as Charlie goes back a couple of decades to -- to make his comments, those elected officials at that time were practicing that fund management model of save and spend and planning for the future and they gave us a solid foundation to really operate on. There is not very many cities that have experienced the kind of growth that we have and we have done it relatively gracefully. Certainly sometimes it felt like we were drinking out of a fire hose while we were doing it and when we had a chance to breathe and reflect and gather up and move forward we saw some areas we wanted to improve upon, but the city has a lot to be proud of and I certainly appreciate working with each and every one of you employees and electeds Meridian City Council Budget Hearing July 11, 2012 Page 57 of 57 alike. So we a reciate that. Certainly big kudos -- I know that the Finance pp De artment u until the great recession was kind of the dreaded department in the city p p and now the really are our heroes, because their attention to detail and conservative Y forecastin has real) kept us in a solid position and that -- and that s working together g Y with all of us. So, ood job to Enterprise Fund, good job to General Fund, and g Communit Development. This is a good team. So, Mr. Zaremba, I would love to have Y a motion. Zaremba: Madam Mayor, incorporating the amendments that we made yesterday and today, I move thatwe publish this budget forthe public hearing. Rountree: Second. De Weerd: I have a motion and a second. Any discussion? Madam Clerk, will you call roll. Roll Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. De Weerd: All ayes. Motion carried. MOTION CARRIED: ALL AYES. ~. De Weerd: I would now entertain a motion to adjourn. Rountree: So moved. Bird: Second. De Weerd: All those in favor. MOTION CARRIED: ALL AYES. MEETING ADJOURNED AT 1:39 P.M. (AUDIO RECORDING ON FILE OF THESE PROCEEDINGS) ~~ MAYOR T Y DE WEERD ATTEST: JAYCEE F{QLMAN, CITY CLERK ~ ~ a5 ~ la DATE APPROVED Q~~~~D A ~C~S~ G~4~ l~ 9 ~,~. O~ ~1~ 4~ IDIAN~-- ~uAMa `~ SEAL w ~~~r~ yeti ~°f fbe T~E!-S~~ CITY of MERIDIAN... CIP Council Summary r . GENERAL FUND 5 YEAR CIP SUMMARY... $26 million FY13-FY17SUMMARY GENERALFUND PARKIMPACT FIREIMPACT POLICEIMPACT DONATIONS FUNDBALANCE TOTALCIP OPERATINGCOST PARKS $1,311,780 $3,700,000 $0 $0 $660,000 $1,500,000 $7,191,780 $275,500 FIRE $3,140,000 $0 $1,600,000 $0 $1,900,000 $520,000 $7,160,000 $1,290,000 POLICE $1,382,500 $0 $0 $2,095,000 $3,100,000 $3,800,000 $10,377,500 $161,200 IT $1,277,250 $0 $0 $0 $0 $0 $1,277,250 $0 GRANDTOTALS $7,111,530 $3,700,000 $1,600,000 $2,095,000 $5,680,000 $5,820,000 $26,006,530 $1,726,700 How will we fund the 5 YEAR CIP? AVAILABLE FUNDING: NEW REVENUE or our discretionary revenue: $ 3,759,305 III' NEW Impact Fee Revenue $30,000,000 Police 300,000 Fire 1,400,000 Parks 5,202,309 DONATIONS: Max Public Safety Fund Police 3,100,000 Fire 1,900,000 Parks 680,000 Fund Balance available projected 9/30/2012 $4,000,000 - Impact Fund 2,649,284 Safety Fund 2,089,202 Unrestricted Fund 12,490,533 TOTAL Funding Available 33,570,633 LESS: 5 YEAR CIP FY2013 thru FY2017 26,006,530 Projected Fund Balance end of FY2017 $ 7,564,103 Operational reserve is included in Fund Balance, $ 8,500,000 FUND BALANCE after 10yrs w/CIP additions $16,000,000 $14,000,000 Income CIP PC/OE Increase $30,000,000 Om Fund Balance $12,000,000 -- i - -- unreserved $10,000,000 Max Public Safety Fund $8,000 ,000 ® Police Impact Fund $6,000000 -- -- ---- -- $4,000,000 - - ---- --- - Fire Impact Fund $2,00.000,000-- -- ---- $15,000,000 ME Park Impact Fund $10,000,000 - $12,000,000I - FY2012 FY2017 _- _-- - Fund Balance reserve $(4,000,000)-.__ _. --__-. __ _ $8.5m $(6,000,000) ----- Forecasted GF Revenue Available for Enhancements with CIP Plan (3% Base Growth, Max Property Tax Request) $45,000,000 , Transfer out $40,000,000 > DiscrentionarY $35,000,000 Income CIP PC/OE Increase $30,000,000 Operating Costs $25,000,000 $20,0000,000 j $15,000,000 $10,000,000 - $5,000,000 FY2013 FY2014 FY2015 FY2016 FY2017 1 CITY of MERIDIAN... CIP Council Summary CITY OF MERIDIAN GENERAL FUND DISCRETIONARY REVENUE PROJECTION Inter Fund Transfers `, -$1,446,494 $1,663,245 ; -$1,713,142 -$1,764,536 3%', -$1,817,473 3%, -$1,871,9971 3%'; -$1,928,157 Levy Rate with 3% 0,004111 0.004611 Levy Rate w/o 3% 0.004090, 0.0044801 Historical Initial Discretionary Revenue Available for Enhancements FY2005 General Fund General Fund $1,669,547 General Fund General Fund General Fund General Fund General Fund $3,046,5461 Final Budget Final Budget FY2011 Base Budget Base Budget Base Budget Base Budget Base Budget Forecast Discretionary Revenue FY2011 FY2012 $1,435,634! FY2013 FY2014 FY2015 FY2016 FY2017 Unrestricted Revenue $29,321,207 $29,601,259 1% $31,105,000 5% $32,202,714 2% $32,746,347 2%; $34,128,493' 4%' $35,306,668 3% Property Tax FY2015 $1,269,308;, FY2016 $1,709,182 FY2017 $1,914,777 Forecast Discretionary Revenue no property tax Personnel $21,237,765e $23,545,062 3% $24,251,414' 3% $24,981,720 3%' $25,729,134 3% $26,498,969 3% $27,293,939 Operating $10,703,483 $6,923,392' 3% $7,131,094 3% $7,345,027 3% $7,565,377 3%' $7,792,339' 3% $8,026,109' Total $31,941,249 $30,468,454 3%' $31,382,508' 3% $32,326,747, 3% $33,294,511 3% $34,291,308 3%', $35,320,048' Inter Fund Transfers `, -$1,446,494 $1,663,245 ; -$1,713,142 -$1,764,536 3%', -$1,817,473 3%, -$1,871,9971 3%'; -$1,928,157 Levy Rate with 3% 0,004111 0.004611 Levy Rate w/o 3% 0.004090, 0.0044801 Historical Initial Discretionary Revenue Available for Enhancements FY2005 $1,006,199 FY2006 $1,669,547 FY2007 $2,719,999 FY2008 $5,239,251 FY2009 $3,046,5461 FY2010 $2,908,850' FY2011 $2,711,000 FY2012 $2,123,875' FY2013 $2,091,111 Forecast Discretionary Revenue Available for Enhancements after CIP FY2013 $1,435,634! FY2014 $1,258,504 FY2015 $861,108, FY2016 $15,982; FY2017 $188,077 Forecast Discretionary Revenue Available for Enhancements w/3% base ;no cip, no FY2013 $1,435,634 enhancements' FY2014 $1,640,504 FY2015 $1,269,308;, FY2016 $1,709,182 FY2017 $1,914,777 Forecast Discretionary Revenue no property tax Available for Enhancements w/3% base increase FY2013 $1,435,634! FY2014 FY2015 FY2016 $1,709,182' FY2017 0.004482 0.004017 0.004301 0.0041681 0.004359', $31,105,000 $580,431 Forecast Revenue Assumptions - FY2012 to FY2013 -$24,221,720 Construction Taxable Value Increases Property Tax 2%per year -$7,084,884' City Net Taxable Value increases 7% for FY2013 levy (2011) $1,713,142 City Net Taxable Value increases $2,091,969' City Net Taxable Value increases 2% each year for FY2015/FY2016/FY2017 levy Forecast Expense Assumptions - FY2013 to FY2017 Base increases only 3% except for; FY2013 FY2014 Training Range $160,000 Pathway $5,000 Pathway $5,000 Field house $217,000, FY2015 FY2016 WW Park $20,000 Pathway $5,000 Pathway $5,000 Fire Station $1,280,000 rural to pay net rural first year FY2017 Pathway $5,000 Neigh. Park $18,500 2 CITY of MERIDIAN... CIP Council Summary CITY OF MERIDIAN GENERAL FUND FIVE YEAR CAPITAL IMPROVEMENT PLAN GENERAL FUND - CAPITAL IMPROVEMENT PLAN FY2013 TO FY2017 Updated 5/24/2012 includes PS Fund CIP I NEW BUDGET NEW BUDGET NEW BUDGET NEW BUDGET DONATIONS & GENERAL TOTAL ANNUAL YEAR DESCRIPTION GENERALFUND PARKIMPACT FlREIMPACT POLICEIMPACT RURALFlRE FUNDBALANCE BUDGET OPERATING COST Pal FY2013 Pathway Connection $100,000 $100,000 Flai FY2013 Maintenance Shop Construction $0 Pa FY2013 Field House $0 Pa FY2013 Split Corridor $143,000 $143,000 Pa FY2013 Kleiner Park $87,400 $87,400 Pa FY2013 Settlers Village $300,000 $300,000 Pa FY2013 Vehicles/Equip $82,880 $82,880 Pa FY2013 Borup phase 1 $75,000 $75,000 Pai FY2013 Tulley Park Irrigationj $40,000 $40,000 Pai FY2013 Parks Subtotal 1 $453,280 $375,000 $0 $0 $0 $0 $828,280 $0 Fin FY2013 Purchase Station #5 from Rural Fire $600,000 $600,000 fIrE FY2014 Replace St#1 air com $50,000 $50,000 Fin FY2013 Cardiac Monitors $160,000 $160,000 Fin FY2013 Air Compressor $50,000 $50,000 Fr FY2013 Fire Subtotal $260,000 $0 $600,000 $0 $0 $0 $860,000 $0 Pol FY2013 Training Center Ph#1 $2,000,000 $2,000,000 Pol FY2013 Replace Vehicles $182,500 $182,500 Pol FY2013 Pol FY2013 Police Subtotal $182,500 $0 $0 $0 $0 $2,000,000 $2,182,500 $0 fT FY2013 Replace Computers $90,750 $90,750 rr FY2013 Replace IT Hardware $225,000 $225,000 fT FY2013 Software $50,000 $50,000 fT FY2013 rr FY2013 IT Subtotal $365,750 $0 $0 $0 $0 $0 $365,750 $0 To FY2013 Total $1,261,530 $375,000 $600,000 $0 $0 $2,000,000 $4,236,530 $01 Pd FY2014 Pathway Connectionq $100,000 $100,000 $5,000 Pa FY2014 77 Acre South Meridian Park $400,000® $400,000 Pa FY2014 Field House $1,500,000 $1,500,000 $217,0004 Pa FY2014 Vehicles/Equipment $86,500 I $86,500 Pa FY2014 Storey Park Development $175,000 $175,000 Par FY2014 Borup phase 1 $750,000 $750,000 Par FY2014 Par FY2014 Parks Subtotal $186,500 $1,325,000 $0 $0 $0 $1,500,000 $3,011,500 $222,000 firE FY2014 moved S11#6 to FY15 firE FY2014 Replace St#1 air com moved to FY13 $0 Fir FY2013 Replace Engine #39 $520,000 $520,000 fir FY2014 Replace Engine #33 $520,000 $520,000 firE FY2014 fjrE FY2014 Fire Subtotal $520,000 $0 $0 $0 $0 $520,000 $1,040,000 $0 Pol FY2014 Replace Vehicles $300,000 $300,000 Pol FY2014 Training Center Ph#1 $2,000,0004 $1,800,000 $3,800,000 $160,000 Pol FY2014 Police Subtotal $300,000 $0 $0 $2,000,000 $0 $1,800,000 $4,100,000 $160,000 IT FY2014 Replace Computers $120,000 $120,000 IT FY2014 Replace IT Hardware $80,000 $80,000 IT FY2014 Software $131,500 $131,500 IT FY2014 IT FY2014 IT Subtotal $331,500 $0 $0 $0 $0 $0 $331,500 $0 To FY2014 Total $1,338,000 $1,325,000 $0 $2,000,000 $0 $3,820,0001 $8,483,000 $382,000' CITY of MERIDIAN... CIP Council Summary Pa Pa Pa Pa Pa Pd Fir Fir Fir Fir Fir Fir Pb Pb Pb Pb R R rr rr IT TO Fla Pa Pa Pa Pa Fir Fir Fir Fir PO PO PO IT IT IT IT R TO Pa Fla Pa Pa Fla Fir Fir Fir Fir Pb Pb Po IT rr rr R TO CITY OF MERIDIAN GENERAL FUND FIVE YEAR CAPITAL IMPROVEMENT PLAN GENERAL FUND - CAPITAL IMPROVEMENT PLAN FY2013 TO FY2017 Updated 5/2412012 includes PS Fund CIP NEW BUDGET NEW BUDGET NEW BUDGET NEW BUDGET DONATIONS& GENERAL TOTAL ANNUAL YEAR DESCRIPTION Pathway Connection u GENERAL FUND $100,000 PARKIMPACT FIREIMPACT POLICEIMPACT RURALFIRE FUNDBALANCE BUDGET $100,000 OPERATING COST FY2015 $5,000 FY2015 Storey Park $800,000 $800,000 FY2015 William Watson $400,000 $400,000 $20,000® PY2015 Vehicle sfEquipme nt $128,000 $128,000 FY2015 $0 FY2015 Parks Subtotal $228,000 $1,200,000 $0 $0 $0 $0 $1,428,000 $25,000 FY2015 Replace Engine #31 $520,000 $520,000 FY2015 Station #6 $1,900,000 $1,900,000 FY2015 Quint Engine for St#6 $1,000,000 $1,000,000 FY2015 Quick Response #6 $0 FY2015 FY2015 Fire Subtotal $520,000 $0 $1,000,000 $0 $1,900,000 $0 $3,420000 $0 FY2015 Training Center Ph#2 $3,100,000 $3,100,000 FY2015 Station #6 substation $95,000 $95,000 $1,200 FY2015 Replace Vehicles $300,000 $300.000 FY2015 FY2015 Police Subtotal $300,000 $0 $0 $95,000 $3,100,000 $o $3,495,000 $1,200 FY2ols Replace Computers $120,000 $120,000 FY2015 Replace IT Hardware $150,000 $150,000 FY2015 Software $0 FY2015 FY2015 IT Subtotal $270,000 $0 $0 $0 $0 $0 $270,000 TO FY2015 Total $1,318,000 $1,200,000 $1,000,000 $95,000 $5,000,000 $0 $8,613,000 $26,200 FY2016 Pathway Connection q $100,000 $100,000 $5,000 FY2016 Borup, Construction Docs $300,000 $300,000 FY2016 Vehicles/Equipment $128,000 1 $128,000 FY2016 $0 FY2016 Parks Subtotal 1 $228,000 $300,000 $0 $0 $0 $0 $528,000 $5,06-0 FY2016 Station #6 rural will pay 1st year $1,280,000 Ey2o% Replace Engine #38 $520,000 $520,000 FY2016 $0 FY2016 Fire Subtotal $520,000 $0 $0 $o $0 $0 $520,000 $1,280,000 FY2o16 Replace Vehicles $300,000 $300,000 FY2016 FY2016 Police Subtotal $300,000 $0 $0 $o $0 $o $300,000 $o FY2o16 Replace Computers $80,000 $80,000 FY2016 Replace IT Hardware $70,000 $70,000 FY2016 Software $0 FY2016 FY2016 IT Subtotal $150,000 $0 $0 $0 $0 $0 $150,000 $0 FY2016 Total $1,198,000 $300,000 $0 $0 $0 $0 $1,498,000 $1,285,000 FY2017 Pathway Connection., $100,000 $100,000 $5,000 FY2017 Neighborhood Park $500,000 $680,000 $1,180,000 $18,500 FY2017 VehiclestEquipment $116,000 $116,000 FY2017 FY2017 Parks Subtotal $216,000 $500,000 $0 $0 $680,000 $0 $1,396,000 $23,500 FY2017 Heavy Rescue Tru $600,0007 $600,000 $5,000" FY2017 Engine #34 (3rd reser, $720,000® $720,000 $5,00 FY2017 FY2017 Fire Subtotal $1,320,000 $0 $0 $0 $0 $0 $1,320,000 $10,506, FY2017 Replace Vehicles $300,000 $300,000 FY2017 FY2017 Police Subtotal $300,000 $0 $0 $0 $0 $0 $300,000 FO FY2017 Replace Computers $80,000 $80,000 FY2017 Replace IT Hardware $80,000 $80,000 FY2017 FY2017 IT Subtotal $160,000 $0 $0 $0 $0 $o $160,000 $0 FY2017 Total $1,996,000 $500,000 $0 $0 $680,000 $0 $3,176,000 $33,500 [;;ND TOTAL Syr CIP' $7,111,530 $3,700,000 $1,600,000 $2,095,000 $5,680,000 $5,820,000 $26,006,5301 $1,726,700 CITY of MERIDIAN... CIP Council Summary GENERAL FUND CIP FY2018 thru FY2022 CITY OF MERIDIAN GENERAL FUND FIVE YEAR CAPITAL IMPROVEMENT PLAN GENERAL FUND CAPITAL IMPROVEMENT PLAN FY2018 TO FY2022 Updated 5/24/2012 CIP NEW BUDGET NEW BUDGET GENERAL FUND PARK IMPACT NEW BUDGET NEW BUDGET FIRE IMPACT POLICE IMPACT DONATIONS & RURAL FIRE GENERAL FUND BALANCE TOTAL BUDGET OPERATING COST DESCRIPTION Pathway Connections $500,000 $500,000 $25,000 Rails with Trails $1,000,000 $1,000,000 Borup Construction $4,500,000 $4,500,000 $25,000 Neighborhood Park Develop $900,000 $280,000 $1,180,000 $23,886 Field House $0 Land Acquisition $500,000 $500,000 $1,000,000 Vehicles/ Equipment Parks Subtotal $2,000,000 $5,900,000 $0 $0 $280,000 $0 $6,180,000 $73,866 Station Expansion S2,500,000 S1,000.000 S3„500,000 S100,000 Replacement Vehicles $1,000,000 S1,000,000 Animal Shelter $250,000 $200,000 $450,000 $139,544 Police Subtotal $3,750,.000 $0 $0 $1,200.000 $0 $0 $4,950,0001 $239,544 Fire Station 97 $1,600,000 $1,600,000 $760,000 Engine Station #7 $520,000 $520,000 Multi Purpose Vehicle $350,000 $350,000 Purchase Station #6 frm RF $1,900,000 $1,900,000 Fire Station #6 $1,600,000 $1,600,000 $760,000 Engine Station 98 $520,000 $520,000 Fire Subtotal $350,000 $0 $2,940,000 $0 $3,200,000 $0 $6,490,000 $1,520,000 City Computer Replacement $365,000 $365,000 Phone purchase VOIP $212,500 $212,500 IT Replacement/Hardware $491,000 $491,000 Additional Operating Costs ° $0 $20,000 ff Subtotal $1,068,500 $0 $0 $0 $0 $0 $1,068,500 $20,000 Annual GRAND TOTAL $7,168,500 $5,900,000 $2,940,000 $1,200,000 $3,480,000 $0 $20,688,500 $1,853,430Inc rease NEW REVENUES $1,905,875 $3,500,000 $1,400,000 $300,000 $3,200,000 $10,305,875 FUND BALANCE Available $3,204,618 $332,467 $708,710 $3,318,308 $7,564,103 Total Funds Available $1,905,875 $6,704,618 $1,732,467 $1,008,710 $3,200,000 $3,318,308 $17,869,978 Under/Over FUNDS ($5,262,625) $804,618 ($1,207,533) ($191,290) ($280,000) $3,318,308 ($2,818,522) TOTALFund Batancefnciuding What does this do to our Fund Balances? our$8.5m reserve FY2017 Year -End Projected Fund Balance 3,204,618 332,467 708,710 3,318,308 7,564,103 Budget Fund over (under) 804,618 (1,207,533) (191,290) (5,262,625) Budget of General Fund Balance 0 FY2022 Year -End Projected Fund Be[ 804,618 (1,207,533) (191,290) (1,944,317) This should be at least $8.5m for our reserve 5 CITY of MERIDIAN... CIP Council Summary CITY OF MERIDIAN GENERAL FUND SUMMARY ACTUAL CAPITAL IMPROVEMENT PROJECTS Date of Funded by Funded by Funded by Funded by Cost :Completion General Fund Impact Fees Rural Fire Donation Total Acres, per Acre COMPLETED PARKS Storey Park $908,137 $908,137 24 $37,972 Generations Plaza $293,140 $293,140 0.3 $1,145,078 Tully Park $1,069,665 $181,530 $1,251,195 19" $66,998 NW 8th Street Park $143,821 $143,821 4' $35,955 Bear Creek Park FY2005 $5,000 $518,559 $762,782 $1,286,341 19 $68,422 Chateau Park FY2005 $449,235 $33,001 $100,500' $582,736 7 $86,976 Centennial Park FY2005 $366,894 $17,000 $383,894' 0.4 $959,735 Fire Station #4 Park FY2006 $33,267 $33,267 0.25; $133,068 Champion Park FY2007 $609,215 $609,215 6 $101,841 Seasons Park FY2008 $15,183 $726,379 $741,562 7 $103,991 Renaissance Park FY2008 $203,538 $1,205,886 $1,409,424 7 $215,937 Gordon Harris FY2009 $64,284, $704,423 $836,147 $1,604,854 11 $144,257 SUBSTANTIALLY COMPLETED PARKS Settlers Park $2,717,657 $1,1225625 $35840,282 Adventure Island $976,670 $603,823 $1,580,493 Youth Baseball Complex $329,736 $1,838,550 $1,476,228 $3,644,514' 56 $161,514 PARKS UNDER CONSTRUCTION HEROS PARK $175,885 $2,455,290 $1,068,329 $3,699,504 30 $123,046 Maintenance bldg $832,755 $832,755 GRANT - bldg improvements $36,657 $36,657 Pathways (grants $110,363) $354,017 $354,017 KLEINER PARK UNDEVELOPED LAND William Watson $3,351 $780 $1,275,000' $1,279,131 7.5 $170,551 Regional Park South $604,462 $601,192 $1,205,654 77 $15,658 Borup Property $475,870 $55000 $480,870 30 TOTAL $8,369,879 $10,480,889 $0, $7,350,695 $26,201,463 304 $86,060 COMPLETED FIRE STATIONS Fire Station #1 FY2000 $704,881: $704,881 $1,409,761 Fire Station #2 FY2001 $805,333 $88,302 $893,635 Fire Station #3 FY2002 $66,721 $1,114,150 $1,180,871' Fire Station #4 FY2006 $1,133,211 $357,000' $1,490,211' Fire Station #5 FY2008 $1,394,000 $60,000 $1,454,000 Training Tower FY2008 $449,415 $962,585;, $1,412,000 FIRE ENGINES 7 Engines - 1982 - 2006 $1,139,592 $667,440; $1,807,032' Fire Engine FY2006 $412,909 $412,909 Fire Eng Refurbish FY2007 $179,496 $179,496' Fire Engine FY2008 $419,2731 $419,273 Aerial Ladder Truck FY2009 $641,266 $305,071 $946,337, Fire Engine FY2010 $92,741 $92,741 Fire Engine FY2011 $417,857 $417,857 TOTAL $4,460,795' $1,173,759' $5,976,267'$12,116,123 POLICE COMPLETED Police Station FY2003 $3,665,915 $3,665,915 FY2005- Y2005-Vehicles VehiclesFY2011 $2,590,658 $2,590,658 POLICE IN PROGRESS Police Station Expansion $22,345 $22,345 Firing Range $105,000• $105,000 TOTAL $6,383,918' $6,383,918 ADMINISTRATION City Hall FY2012yt $28,333,7321 $28,333,732 Includes $4.5 million from Enterprise Fund Accela_ FY2010 $671,425 $671,425 TOTAL $29,005,1571 $0'' $0, $0 $29,005,157 GRAND TOTAL GENERAL FUND: $48,219,749' $11,654,648'' $5,976,267: $7,855,9971 $73,706,661 CITY of MERIDIAN... CIP Council Summary ENTERPRISE FUND 5 YEAR CIP SUMMARY ... $62 million FY2013 thru FY2017 How will we fund the 5 YEAR CIP? AVAILABLE FUNDING: Waste Water $ 46,275,549 Fund Balance available projected 9/30/2012 Water Treatment 73,955,300 Fiscal Year Enterprise Fund'. Enterprise Fund Enterprise TOTAL FY2013 $6,410,000'!' $8,740,000 $15,150,000' FY2014 $2,320,000 $11,733,000 $14,053,000 FY2015 $1,705,000 $9,455,000 $11,160,000 FY2016 $2,440,000 $7,635,000 $10,075,000' FY2017 $1,665,000' $10,035,000 $11,700,000'1 How will we fund the 5 YEAR CIP? AVAILABLE FUNDING: NEW REVENUE or our discretionary revenue: $ 46,275,549 Fund Balance available projected 9/30/2012 27,679,751 TOTAL Funding Available 73,955,300 LESS: Enterprise Fund CIP FY2013 thru FY2017 62,138,000 Projected Fund Balance end of FY2017 $ 11,817,300 Operational reserve is included in Fund Balance;; $ 4,500,000 7 CITY of MERIDIAN... CIP Council Summary ENTERPRISE FUND CIP FY2013 thru FY2017 ... $62 million WATER FY2013 FY2014 FY2015 FY2016 FY2017 5 yr TOTAL Ground Reservoir 3,000,000 - - - - 3,000,000 Well Reconstruction 110,000 110,000 !, 110,000 110,000 110,000 550,000 Well 16b 300,000 60,000 ! 360,000 Well 16 abandonment 40,000 40,000 SCADA Master Plan 75,000 75,000 Water Master Plan update 150,000 150,000 Water Main Replacement 1,000,000 500,000 300,000 300,000 300,000 2,400,000 Presuure Zone 1 220,000 220,000 Iron & Magnesium Mitigation - Well 17 Pumping Facilities Upgrades 160,000 160,000 Well 29 160,000 350,000 350,000 860,000 Well 30 - Well 15 water treatment 150,000 800,000 950,000 Well 17 water treatment 150,000 800,000 950,000 Well 19 water treatment 150,000 800,000 950,000 Well 21 water treatment 900,000 900,000 Well 22 water treatment 150,000 800,000 950,000 ,Land for Ground Reservoir 500,000 500,000 Automatic Meter Reading Infrastructure 50,000 400,000 450,000 Waterline Extensions 250,000 220,000', 105,000 105,000 105,000 785,000 ;Hansen Bar Coding & Mobil Solution 100,000', 100,000 Fiber Optic Line 190,000 1901000 WATER TOTALS $ 6,410,000 $ 2,320,000, $ 1,705,000 $ 2,440,000 ! $ 1,665,000 $ 14,540,000 2013-2017 WWTP FY2013 FY2014 FY2015 FY2016 FY2017 5 yr TOTAL ,Temperature Control Improvements 1,500,000 1,500,000 3,000,000 Drying Bed d Centrifuge Conveyor 170,000 170,000 Fermentation at WWTP 2,090,000 1,500,000 375,000 1,950,000 5,915,000 Secondary Pump Station Modification 700,000 700,000 IFAS Integrated Fixed Film /Activated Sludge Aeration Base Reconfig 1,385,000 1,385,000 Flow Monitoring 100,000 25,000 25,000 25,000 25,000 200,000 Ultraviolet Disinfection Improvements 250,000 250,000 500,000 Chemical Fee Bldg Flocculation Tanks 600,000 600,000 ;Sewer Cleaning Truck/Camera Truck 400,000 200,000 600,000 Sewer Main Replacement 2,205,000 1,200,000 890,000 450,000 500,000 5,245,000 Sewer Line Extensions 520,000 300,000 250,000 250,000 250,000 1,570,000 Filter Media replacement 75,000 75,000 75,000 225,000 Sidestream Phosphorus Recovery 350,000 3,000,000 700,000 4,050,000 WWTP Odor Control 775,000 980,000 250,000 250,000 1,750,000 4,005,000 Sidestream Nitrogen Removal 200,000: 900,000 ! 1,100,000 HeadworkstFine Screens 200,000 900,000 1,100,000 Sampling Station Improvements 75,000 ! 75,000 Lab Building Expansion 500,000 2,250,000 2,750,000 Fiber Optics 100,000 100,000'; 190,000 390,000 Digester 6 & new Digester Control Bldg 500,000 1,500,000 2,000,000 Hansen Bar Coding & Mobile Solution - WW 100,000 100,000 New Admin Bldg / Operations Bldg retro( 730,000 2,670,000 ! 3,400,000 ,Resurface WWTP asphalt 100,000 100,000 'Land Acquisition 800,000 1,500,000 2,300,000 RV Dump Station @ WWTP 60,000 60,000 120,000 Sewer trunkline to abandon Ashford Green Lift St 225,000 ! 1,000,000 1,225,000 Maintenance Fleet Facility Upgrades 800,000 800,000 Vehicle Storage Building 575,000 ! 575,000 Aquifer Recharge 150,000 175,000 !; 250,000 600,000 600,000 1,775,000 Aquifer Recharge Class A Permit modification 100,000 100,000 200,000 ,REUSE Reclaimed Franklin, TenMlle to L 180,000 180,000 WWTP Facility Plan 550,000 550,000 ,Sewer Master Plan 225,000 ! 225,000 SCADA Master Plan 75,000 ! 150,000 225,000 Confined Space training facility 90,000 90,000 Huber Wash Press 53,000' 53,000 Energy Audit Conservation Plan 100,000 100,000 WWTP TOTALS $ 8,740,000 $ 11,733,000 i $ 9,455,000 i $ 7,635,000', $ 10,035,000 $ 47,598,000 GRAND TOTAL WATER & WWTP ! $ 15,150,000 !: $ 14,053,000 j $ 11,160,000 $ 10,075,000 $ 11,700,000 $ 62,138,000 CITY of MERIDIAN... CIP Council Summary FY2005 ENTERPRISE FUND CIP FY2018 thru FY2022 ... $70 million FY2008 FY2009 WATER FY2018 FY2019 FY2020 FY2021 FY2022 5 yr TOTAL Ground Reservoir - Well Reconstruction 110,000 110,000 110,000 110,000 110,000 550,000 Water Main Replacement 500,000 500,000', 1,000,000 1,000,000 1,000,000 4,000,000 Iron & Magnesium Mitigation 200,000 800,000, 200,000: 800,000 ! 200,000 2,200,000 Well 29 350,000 3509000 $ 2,548,600 Waterlines 700,000 Well 30 $ 550,746 $ 150,000 350,000 500,000 Waterline Extensions 200,000 200,000 200,000 200,000' 200,0001 1,000,000 WATER TOTALS $ 1,360,000 $ 1,960,000 $ 19510,000 $ 2,260,000, $ 1,8609000 $ 8,950,000 134,407 $ 457,050 $ 674,668 $ 2018-2022 WWTP FY2018 FY2019 FY2020 FY2021 FY2022 5 yr TOTAL Temperature Control improvements 2,000,000: 2,000,000' 2,000,000' $ 95,734 6,000,000 Fermentation at WWTP 225,000 2,025,000' $ 183,636 $ 2,250,000 Secondary Pump Station Modification 800,000 ! 800,000 Integrated Fixed Film / Activated Sludge' 12,450,000 8,479,000 20,929,000 Ultraviolet Disinfection Improvements 500,000' Plant $ 2,543,978 5009000 Chemical Fee Bldg Flocculation Tanks $ 11,568,090 350,000 4,958,999 $ 3509000 WWTP Odor Control 300,000 " 300,000 300,000 300,000 300,000 1,500,000 Sidestream Nitrogen Removal 5,989,810 106,000' 950,000 $ 5,926,778 1,056,000 Lab Building Expansion $ 939,922 $ 784,899 750,000 750,000 Land Acquisition 25,365,786 750,000 ! 750,000 1,500,000 Aquifer Recharge 600,000 600,000 1,200,000 REUSE Reclaimed Water projects 1,000,000 1,000,000 600,000' 600,000 700,000 3,900,000 WWTP Facility Plan $ 31,450, 1,200,000 29,259 $ 1,200,000 Grit Classifier ReplacemenURpr 570,545 $ 300,000 $ 181,479 300,000 Secondary Clarifier #6 TOTAL $ 200,000 1,000,000 1,000,000 2,200,000 Centrate Tank Rehab $ 12,015,618 $ 5,767,635 500,000 500,000 WWTP Automation/Software Upgrades 30,000 30,000: 30,000 j' 30,000 ! 30,000 150,000 Digester Grinders 425,000 425,000 Unidentified Nutrient Removal 1,000,000 1,000,000 2,000,000 Unidentified Treatment Future projects 3,000,000 3,000,000 6,000,000 Unidentified Collection Future projects 1,500,000 ! 1,500,000 1,500,000 1,800,000 1,500,0001 7,800,000 WWTP TOTALS $ 19,330,000 $ 17,290,000 ! $ 7,430,000 ! $ 7,730,000 (: $ 9,530,000 $ 61,310,000 GRAND TOTAL WATER & WWTP $ 20,690,000 ! $ 19,250,000 ! $ 8,940,000 $ 9,990,000 $ 11,390,000 $ 70,260,000' SUMMARY OF ACTUAL CAPITAL EXPENDITURES ENTERPRISE FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 TOTAL WATER Building $ 79,914 $ 1,716,595 $ 728,521 $ 23,570 $ 2,548,600 Waterlines $ 1,514,125 $ 550,746 $ 1,477,925 $ 1,077,364, $ 449,121 $ 745,300 $ 1,088,490 $ 6,903,071 Wells $ 914,956 $ 864,681 $ 134,407 $ 457,050 $ 674,668 $ 803,405 $ 777,908 $ 4,627,075 Equipment $ 91,330 $ 133,598 $ 59,187 $ 95,734 $ 65,631 $ 110,903 $ 183,636 $ 740,019 WWTP Plant $ 2,543,978 L $ 7,398,475 $ 11,568,090 $ 4,958,999 $ 3,067,748 $ 2,301,015 $ 2,165,345 $ 34,003,650 Sewerlines $ 5,989,810 $ 5,291,326 $ 5,926,778 $ 4,663,378 $ 939,922 $ 784,899 $ 1,769,673 $ 25,365,786 Reclaim Water ! $ 3,305,985: $ 703,349 $ 4,009,334 Equipment $ 72,549 $ 31,450, $ 29,259 $ 34,572 $ 570,545 $ 41,691 $ 181,479 $ 961,545 TOTAL $ 11,126,748 $ 14,350,190 ! $ 20,912,241 $ 12,015,618 $ 5,767,635 ! $ 8,093,198; $ 6,893,4501 $ 79,159,080 9 City of Meridian — Revenue Manual City, of Meridian FY2013 Budget Revenue Manual IDAHO ECONOMIC FORECAST - DIV of FINANICAL MANAGEMENT On a quarterly basis the State of Idaho Division of Financial Management releases an economic forecast. The State of Idaho uses data and analysis from a company called Global Insight Inc. The Idaho economic forecast is of particular interest to the City in forecasting our revenue. Idaho economic indicators such as employment, population growth, job sector growth, and new construction are particularly relevant to the Treasure Valley. The Idaho Economic Forecast released in April 2012 for the period 2012-2015 (Volume XXXIV, No. 2) indicates slight improvements on the horizon in comparison to last year's forecast. This is the result of some improvement in the national economy and because job growth in 2011 was stronger by a small percentage, than previously predicted. Idaho employment grew by .05% in 2011. Most of the improvement was in the nongoods producing sector which accounts for two thirds of Idaho's nonfarm payroll. The nongoods producing sector consists of two categories: services and trade. The major service categories include information services, financial services, transportation, warehousing, and utilities, professional and business services, education and health services, and leisure and hospitality services. The trade category is split between retail and wholesale with retail being 75%. Service employment is expected to grow slightly faster than trade employment, 2.8% to 3% through 2015. Professional and business services are expected to pick up and be an important sector of the state's employment as will be health and private education. The trade sector, namely retail also is expected to grow. This April unemployment marked the seventh straight month of decline falling to 7.7%. This percentage while an improvement is note worthy considering Idaho's unemployment percentage before the recession was 3%! Mike Ferguson, Idaho's former chief economist said "Idaho is characterized by having turned down earlier and deeper, and it's turning around more slowly than other states." In the period around 2010 to 2011 Idaho housing starts had fallen to 4,600, the lowest level since 1989. Construction jobs were at 30,000, the lowest level since 1995. The Gobal Insight forecast calls for construction growing 2.3% in 2013, 4.2% in 2014, and 3.6% in 2015. City of Meridian — Revenue Manual The graph below illustrates that through the years the forecasts have been optimistic to say the least. However the { line for the 2012 forecast and the FY2013 forecast are identical and the FY2012 forecast hit the actual. This may indicate that the industry has leveled off instead of being in free fall. 25,000 20,000 15,000 10,000 5,000 Idaho Economic Forecast Housing Start Predictions —0—Housing Starts Forecast 2008 Housing Starts Forecast 2009 Housing Starts Forecast 2010 Housing Starts Forecast 2011 Housing Starts Forecast 2012 Housing Starts Forecast 2013 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 CITY of MERIDIAN ECONOMIC & POPULATION FORECAST In FY2010 Meridian sold 562 residential building permits, exactly the same number sold in FY2009 and the smallest number since FY1991 until FY2011. In FY2011 Meridian issued 483 building permits. In FY2008 commercial building permit sales were at an all time high of $1,316,153, the culmination of a five year over year increase in commercial building activity. In FY2010 commercial building permit sales dropped to $372,654 but did climb to $816,820 in FY2011. At the end of April 2012, halfway through FY2012, residential building permits are up 54% over the same period last year. Commercial building permits are also significantly exceeding FY2011 with the month of April being a single month sales record breaker. In April permits were issued for the Center Cal power shopping center at the corner of Fairview and Eagle Rd as well as for a 168,000 square foot office tower on the Scentsy campus. Building permit sales of course influence the Building Department revenue but also impact the amount of property tax the City will collect due to new construction. New construction for the tax year starting 1/1/2011 (FY2012) was valued at $96,073,750 with new construction for the tax year ending 1/1/2012 valued at approximately $128,659,413. The uptick in building permits sales occurring in the spring of 2012 indicate that new construction will increase over FY2013 when it is calculated for collection during the City's 2014 fiscal year. The City of Meridian is located in Ada County, by far the state's largest county. One quarter of the state population is in the metropolitan area of Ada County. The population of Meridian is one quarter of the entire population of Ada County. Unemployment in the City of Meridian as of April 2012 was 6.4% compared to 7.8% at the same time last year. The county unemployment 2 City of Meridian — Revenue Manual rate in April 2012 was 6.9% compared to the prior year rate of 8.2% with the State of Idaho at 7.7% compared to 8.7%. Per trulia.com the median sales price for homes in Meridian during the three months ending April 12, 2012 was $199,080. This is an increase of 17.1% compared to the last year. At the end of the week ending May 9th, 2012 Meridian had 604 homes listed for sale and 355 homes in foreclosure. So, the economic outlook is improving for the State of Idaho although the factors that marked the recession still exist; high unemployment, large inventory of housing, and lack of consumer spending. The City of Meridian's economic improvement is ahead of the State as a whole, with lower unemployment rates and a larger percent of new construction. Meridian has the advantage of availability of assessable undeveloped land and also enjoys a higher per capita and median household income than both the State of Idaho and the national average. When we use population forecasts in the report we are using the COMPASS (Community Planning Association of Southwest Idaho) demographic reports. COMPASS prepares both predictive demographic reports and estimates of annual actual populations (based on building data). The chart below illustrates the estimated historical population estimates compared to the census compared to the current COMPASS population estimates through 2030. COMPASS last updated their forecast in March of 2010 so it does not reflect the 2010 census. The COMPASS forecast for 2010 population was 81,950 whereas the census came back at 75,092. Since 2007 Meridian's annual growth rate has been between 2% and 3% and we expect it to stay in that neighborhood through 2015. This rate is also consistent with the population increase expected by the State of Idaho. The complete COMPASS Trend Forecast can be found on their website www.compassidaho.or- REVENUE SOURCES City revenue comes from two principal sources; first, tax revenue that is used to finance services that cannot be provided on a fee per user basis such as public safety, parks, and city administration and two, fee revenue that results from charging a fee for the measurable use of a 3 City of Meridian — Revenue Manual service such as consumption fees for water and sewer or connection fees to- connect buildings to utility lines in order to pay to increase capacity for drinking water and sewer service. The former are tracked in the General Fund and the later in the Enterprise Fund. Community Development is part of the general fund but also tracked separately because any excess of revenue over expense is directed to the Capital Improvement Fund. The Community Development Department has three division; Planning, Building, and Economic Development. Analysis and projection of revenue is essential to the City's budget development process. Starting in budget year 2002 the City adopted a budget process that identified the cost necessary to maintain the current service and activity levels, referred to as the "base budget". Estimated revenue minus base equals discretionary revenue, the revenue that is available to the City to use for program "enhancements". Budget enhancements are additions to the budget for new programs or services to allow the City to provide that same service level in spite of population growth. The following graphs illustrate changes in the base budget and available discretionary revenue over time in the City's two major funds. 1 City of Meridian — Revenue Manual 5 GENERAL FUND REVENUE The majority of general fund revenue comes from property tax. Other sources of revenue include state revenue sharing and other intergovernmental agreements, cable, electrical, gas franchise agreements, park impact fees and investment interest. These revenues fund the fire, police, parks, and city administration. The percent of contribution of each type of City of Meridian — Revenue Manual General Fund Revenue History Lehe4" cZO apt Gr �° XKV revenue to the general fund revenue "pie" changes little from year to year. Revenue is classified in the audit report illustrated in the sidebar to the right. TAXES P ropertay tax revenue Penalties & Interest LICENSES & PERMITS Alcohol permits Dog Licenses Building Permits INTERGOVERNMENTAL State Liquor Apportionment State Sales Tax Sharing State Revenue Sharing Rural Fire Grants INTEREST FRANCHISE FEES Gas Franchise Revenue Cable TV Franchise Revenue Power Franchise Revenue FINES & FORFEITURES Parking Fines Court Revenues False Alarms Restitution CHARGES For SERVICES Park & Recreation Fees School Resource Revenue Impact Fee Revenue Planning Filing Fees as The only "service" that has been fully supported by user fee charges is the Building Department. The Building Department issues permits and conducts building inspections for both residential and commercial developments. The Planning Department also charges fees for services. The Building Department, the Planning Department, and Economic Development are divisions of the department Community Development. From FY2003 through FY2007 building permit fees generated revenue above and beyond expenses for both the Planning Department and the Building Department. The 0 City has an ordinance that this excess revenue be transferred to the Capital Improvement Fund to be used for general fund capital projects. Total actual audited general fund revenue for fiscal year FY2011 on a fund accounting basis was $32 million compared to an original budget of $30.7 million and a final amended budget of $31.5 million. FY2012 revenue is budgeted at $30.5 million and the actual is projected to be consistent City of Meridian — Revenue Manual Development Services Revenue History $2,500,000 — $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Building Permits Planning Fees Int/Misc ®FY2011 Actual 13FY2010 Actual 13FY2009 Actual with that amount. This total revenue number includes revenues and interest income that are available only for specific uses, such as the interest from the Public Safety fund, impact fees and interest, and Capital Improvement Fund interest. PROPERTY TAX Property tax is the City of Meridian's largest source of general fund revenue. Property tax is calculated by Ada County based on State of Idaho code. The following is a brief summary of very complicated tax code that has changed many times since its inception. Idaho code limits the amount of property tax that cities can collect. Starting in the late seventies and continuing through the nineties, the Idaho Legislature passed numerous laws in response to taxpayers concern with increases in property tax. Finally in 1995, the Idaho legislature enacted code that limited property tax increases to 3% over the prior year. The first cap became effective in fiscal year 1997. Later code revisions allowed cities to apply the prior years levy rate to new construction and annexation. A quasi tax revolt started in 2005 with citizens protesting rapid increases in property tax bills. The building bubble resulted in the market prices of homes increasing by double digit percentages. The grumbling started in resort type areas where property values had increased substantially. The Idaho legislature convened an interim tax committee who conducted large public hearings all over the state. State law now requires the homeowner's exemption to change each year as home values change. For tax year 2008 the maximum exemption was $100,938, for tax year 2009 the value was $104,471, for tax year 2010 the value was $101,153, tax year 2011 the value fell to $92,040, and for tax year 2012 it is $83,974. Meridian has traditionally had a low levy rate. During the eighties cities had various opportunities to increase the levy rate. Meridian, as a small town with few services, did not take advantage of them. The only way to increase the levy artificially is with a 60% vote. As will be discussed below the rapid decline in market values has resulted in a steep increase in Meridian's levy rate compared to historical rates. 7 City of Meridian — Revenue Manual The levy rate is the percentage of each dollar of market value of a property that will be paid in property tax. Each year the rate "levied" against the taxable value of all properties is recalculated. The ability to include the value of new construction and annexation to arrive at the maximum property tax that can be levied has helped the City collect enough property tax revenue to keep pace during periods of rapid growth. Calculating the levy "rate" involves creating a fraction with the property tax dollar amount as the numerator and the total taxable value of the City as the denominator. An important item to note is that the City receives tax revenue a year in arrears from the date of the property valuation. At the writing of this report in May 2012 we used the preliminary Ada County Assessor number for new construction and taxable value. The total taxable value is not the final number. The Idaho Legislature passed legislation during the 2012 session that will allow developers to exempt certain site improvements such as roads and utilities from property tax. The legislation was made effective immediately in spite of opposition by the counties and cities. The counties did not have any mechanism in place to capture this information so it will be the last hour before we know what the dollar impact of this might be. We also still lose some new construction value due to previously passed legislation that allowed developers to change tax status from new commercial back to agricultural if their project is stalled. Cities will likely continue to face threats from state legislative changes made to property tax After several years of decline the City's total taxable value has started to increase. For the tax year enA; ng 1/1/2012 the value increased just over 8%. This is a marked change from last year's decrease of 10.8% and the year before decrease of 9.21 %. Construction values used to calculate the allowable property tax levy increased dramatically in fiscal years 2005 through 2008 and started to descend in FY09. The taxable value of new construction peaked in FY07 (tax year 2006) at $695,193,626. In contrast the new construction used to Change in City of Meridian Taxable Value and New Construction (net exemptions) $800,000,000 - ---- - - -- - -- - - --._ - .- - - $7,000,000,000 $700,000,000 --- -- - - --- $6,000,000,000 $600,000,000 - - — $5,000,000,000 $500,000,000 - - - — — - -- $4,000,000,000 $400,000,000 — -- - $3,000,000,000 $300,000,000 - - $200,000,000 - - — - _ _ $2,000,000,000 $100,000,000 _ _ $1,000,000,000 $o $0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Taxable Value fNewConstrudion Value calculate last's year's property tax revenue was $96 million with the low being the year before at $93 million. This year new construction is up slightly at $128 million. City of Meridian — Revenue Manual The following graph illustrates the components that make up the total dollar amount of tax the City receives each year. The base is the dollar amount of property tax levied the prior year increased by 3%. The new construction portion of the tax received is the value of new construction multiplied by the prior year's levy rate. The annexation portion is recently annexed property value multiplied by the prior year levy rates. The City elected to not take the allowable 3% increase to base in FY2011 or FY2012. The FY2013 estimate does include the 3% allowable tax base increase. The last two years the City has not taken the base levy tax increase in consideration of the need to keep taxes low for property owners during the recession. The decrease in the taxable value of property meant that to sustain the same amount of property tax revenue the levy rate increased even without the City taking the allowable 3% to base increase. Although the levy rate changes look dramatic on the graph in actuality the increase in the levy rate was offset by the change in property value. Almost all residential property owners experienced significant declines in the value of their individual properties. City of Meridian Levy Rate History 0.005000 0.004500 0.004000 0.003500 0.003000 OOW 0.002500 0.002000 0.001500 0.001000 0.000500 0.000000 - ----t---------i-- - -- - f FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 C City of Meridian — Revenue Manual The graph below is a sampling of taxes paid by property owners in different parts of Meridian. STATE REVENUE SHARING State revenue sharing is the City's second largest general fund revenue source. The State of Idaho collects a 6% sales tax however 1% is exempt from city and county revenue sharing. 13.75% of the collected sales tax is distributed to cities and counties. 7.75% is distributed into a program called Revenue Shaf-big — State Distribution, and 6% is distributed into a program called Revenue Sharing — Couniy Distribution. The City portion is divided and distributed based on market value and population. The base is distributed based on the fourth quarter 1999 distribution plus 5%. The excess portion is then divided by population. House Bill 468 passed in the 2000 legislature created a new distribution formula for that portion of the state sales tax that had been known as the `Business Inventory Replacement". The new revenue sharing combined the old Business Inventory Tax replacement portion with the sales tax distribution known as City -County Revenue Sharing. The state revenue sharing distribution remained the same but the amount is distributed like the state revenue, each city, county, and special district will be provided a new base. The base is the amount received for the fourth quarter of 1999. Additional growth in sales tax will be distributed to cities and counties according to population growth. Sales tax revenue sharing is often on the table each the State of Idaho legislative session. The State passed a temporary sales tax hike a few years ago to help get through a budget shortfall. This increase became permanent but was not shared with municipalities. There were a couple of bills on the table during the 2012 legislative session generally dealing with exemptions. One of the bills to decrease 10 City of Meridian — Revenue Manual exemptions, tax services, and lower the percentage did not make it out of committee. A second bill to collect sales tax from internet sales through the Streamlined Sales and Use Tax Agreement also did not make it out of committee. A third bill with an industry specific exemption did pass. Idaho sales tax steadily increased during the first part of decade. Revenue peaked in 2008 and then declined as the recession took hold in Idaho. By 2011 consumer spending started to creep upward and sales tax revenue reversed its downward course. The State is predicting sales tax revenue will continue to climb at a bit faster rate, in 2013. In 2008 Meridian's share of state sales tax peaked at $3.5 million, falling to about $3 million from FY2009 through FY2011. When preparing for the FY2012 budget the City took a very conservative approach and budgeted $2.75 million. It looks like the actual revenue for FY2012 will be right around the $3 million mark and that is what has been budgeted for FY2013. LIQUOR TAX $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 City of Meridian Sales Tax Revenue Sharing o5S' o°a o°�' 0°(0 0°A o° o°° °ti° ti otiti a��` ,yo The City receives a portion of the State's liquor sales surcharge. The State charges a 15% surcharge on liquor sold through the State Liquor Dispensary. The surcharge is distributed to cities, counties and specific programs. After distributions to alcoholism treatment, public schools, community colleges, the cooperative welfare account and the state general fund, the remainder was distributed between the counties and cities, 49% to counties and 60% to cities. For incorporated cities with liquor stores the distribution is based on the city's proportion of total sales. Some portion of the overall city share is distributed to cities that do not have a liquor store based on their population. Meridian has three liquor stores. Unfortunately the State is in the process of reducing the 60% distribution to cities and counties to 50% by 2014. This means each year the distribution has decreased by 2%. Additionally the state has finished a repayment to cities and counties that resulted from a use of liquor funds to purchase water rights. The decease in the sharing percentage has been offset by the increase in the volume of sales and the revenue has remained between $450,000 and $500,000. For FY2013 it is budgeted at $490,000. The final piece of intergovernmental income the City receives is from the Meridian Rural Fire District. The City has an agreement with the District to provide service within the fire district boundaries. As the City's boundaries grow, the Rural Fire District service area becomes smaller. 11 City of Meridian — Revenue Manual The Rural Fire District normally pays 20% of the City Fire Department operating expenses. By special agreement they have built fire stations and made other major capital improvements as well as picking up an additional operating expense reimbursement for specific periods of time. The City will be repaying the Rural District for some capital projects, such as Fire Station #5, with public safety impact fees as the City collects them. At the writing of this report it appears that the reimbursement for FY2013 is expected to remain at 20%. The actual reimbursement cannot be calculated until the Fire Department budget has been set however for the last five years it has been right around $1.5 million so we will use that number for the FY2013 budget. FRANCHISE FEES The state of Idaho allows cities to enter into franchise agreements with water, gas, electric, cable and solid waste collection providers. The percentage collected varies from 1% to 5% of the provider's gross sales. Natural Gas — The franchise fee is 3% of gross (net of uncollected accounts) annual sales. The City currently has a 30 -year franchise agreement with Intermountain Gas Company which expires January 7, 2017. Intermountain Gas lowered rates in 2010 resulting in revenue decreasing the next two years, additionally revenue will go up or down depending on the winter weather. It is anticipated that revenue will continue to stay around $650,000 for the foreseeable future. Cable — The franchise fee is 5% of gross sales. Cable franchise revenue is paid twice a year based on a calendar year. The existing agreement is for a term of 15 years and was renewed July of 2011. Over the past few years the revenue has gradually increased to slightly over $300,000 however decreased to under $300,000 in FY2011. We expect our revenue from the agreement to remain under $300,000 in FY2013. Electricity — Franchise fee is 1 % of Idaho Power gross sales in Meridian. The City currently has a 25 -year franchise agreement with Idaho Power, which expires November 1, 2023. As with gas, uncertainty over rate changes and weather makes predictions difficult. GENERAL FUND FRANCHISE FEES Actual Actual Actual Actual Budget Budget Description FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Natural Gas $ 781,353 $ 804,270 $ 658,508 $ 673,082 $ 650,000 $ 650,000 Cable 331,190 334,158 324,010 295,742 285,000 280,000 Electricity 314,684 372,247 391,353 383,044 383,000 383,000 TOTAL $ 1,427,227 $ 1,510,674 $ 1,373,871 $ 1,351,868 $ 1,318,000 $ 1,313,000 12 City of Meridian — Revenue Manual PUBLIC SAFETY Court Revenue: The City receives ninety percent (90%) of all fines and forfeitures collected under Idaho Code. The number of infractions and the pay schedule of each is the basis for the City's fine revenue. The penalty for an infraction is set in the payment schedule adopted by the Supreme Court order. The City contracts with the City of Boise to handle prosecution services, currently neither Meridian nor the City of Boise have been able to get access to the data controlled by Ada County needed to determine if 100% of total fine revenue is collected or if some of it is lost to delinquency. The amount of revenue collected is inconsistent varying in recent years from over $500,000 to $400,000. The relationship between the City and the Ada County court system is currently in contention as the County has alleged that the City should pay Ada County for use of the court for Meridian related cases. This dispute is not anywhere near resolution but at some point may eliminate any revenue Meridian receives and additionally require the City spend additional money to house a courthouse or pay for court costs. Due to the uncertainty over the timing and end result of this legal dispute court revenue is included in the FY2013 revenue budget. Animal Control and Adoption Fees: City code authorizes animal fees and fines to be charged for licensing and impounding domestic animals and for animal adoptions. Annual fee collections vary from $65,000 to $70,000. School Resource Officers: Meridian School District #2 has had an agreement with the Meridian Police Department to provide School Resource Officers at designated campuses and special events. The school district has paid approximately 47% of the officer's wages (the cost of benefits is not shared). The agreement is for the school period; which starts in August and ends in June. PUBLIC SAFETY REVENUE Description Actual F2008 Actual FY2009 Actual FY2010 Actual FY2011 Budget FY2012 Budget FY2013 Court Revenue $ 457,477 $ 401,432 $ 485,572 $ 424,426 $ 400,000 $ 400,000 School Resource Officers 167,167 223,548 224,629 224,608 200,000 200,000 Animal Control 70,937 63,122 66,382 69,045 65,000 65,000 TOTAL $ 695,581 $ 688,102 $ 776,583 $ 718,079 $ 665,000 $ 665,000 PARKS AND RECREATION Parks and Recreation Fees: Specific programs are charged fees, such as the summer recreation programs. The City Council is authorized by Idaho State Code to establish fees for certain services provided. Rates are separately set for each fee. Fee schedules are periodically reviewed and adjusted as necessary to cover related costs. There are two types of recreation programs. Adult sports revenue are fees collected for teams playing in leagues such as the softball league. Recreation program revenue is the revenue collected 13 City of Meridian - Revenue Manual from a wide variety of classes and activities organized through the City Parks Department. It includes revenue from the summer camp program and special events such as fun runs. The City sports and recreation programs continue to increase in popularity and participation. Park Reservations: Fees are charged for the reserved use of the City's park shelters, baseball fields and special events held on City property. Revenue projections are based on the population growth, availability of park shelters, ball fields and weather. As the number of available shelters increases reservation revenue also increases. Facilities Lease: In October 1978, a 25 -year lease agreement was signed between the City of Meridian and Cherry Lane Recreation, Inc. A 25 -year time extension was put in place in 2001. During the years of this lease the City received $6,000 per year. During FY05 the leaseholder was changed to Lake View Meridian Investors and Boise Ranch Golf Course and the name of the course changed to Lake View. The golf course management contract was somewhat modified in FY2010. Since the management change in 2005 the City has not collected a lease fee and has actually provided some financial assistance for golf course improvement projects. Donations for Parks: The City has received small cash donations as well as larger donations of land, equipment or in-kind services. We do not budget for donations; they are only recorded when actually received. PARKS AND RECREATION REVENUE Actual Actual Actual Actual Budgeted Budgeted FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Recreation Programs $109,602 $125,648 $106,920 $116,159 $130,000 $120,000 Sports Programs $115,344 $131,712 $154,254 $173,791 $156,000 $175,000 Community Events $17,437 $13,565 $16,250 $20,132 $24,100 $16,000 Park Resery $36,238 $51,531 $50,085 $56,401 $50,000 $56,000 Donations $95,665 $36,570 $8,000 $374,286 $359,026 $327,509 $374,483 $360,100 $367,000 IMPACT FEES The City has had park impact fees for several years. At the issuance of a residential building permit the City collects $1,384 (fee effective Jan. 1, 2008) per single family residence to use for new park development. The money is tracked in a separate account and is used only to develop new parks which maintain the current level of service. In December of 2006 the City instituted fire and police impact fees to help pay for the capital cost of constructing fire stations and paying for major equipment necessary due to growth. The Fire impact fee is $377 per residential building permit and .25 per square foot per commercial building permit. The Police impact fee is $85 per residential building permit and .06 per square for commercial building permits. 14 City of Meridian — Revenue Manual The impact fees can only be spent for the portion of capital construction that can be attributed to growth. The City has a capital outlay plan that defines what percentage of a planned project is due to growth and maintenance of the current level of service. Impact fees cannot be used to increase the level of service so their use is restricted. In addition, since the Rural Fire Department has paid for several capital construction projects for the City Fire Department (fire stations, training tower, etc.); impact fees collected for Fire will need to be returned to the Rural District. Impact fee revenue peaked for Parks in FY2005 at $2 million dollars compared to $733,220 in FY2011. Park impact fee collections for FY2012 are trending higher than the $600,000 budget however the amount budgeted in FY2013 for Parks, Fire, and Police remains conservative at $700,000, $280,000, and $60,000 respectively. LICENSES AND FEES The City collects fees for various licenses and permits. These fees are a minor percentage of general fund revenue and do not change significantly from around $45,000 year to year. The City Clerk's Office plans to start selling passports and has determined that this will bring in $56,000. However, the revenue is offset by the need to hire additional staff. BUILDING AND DEVELOPMENT REVENUE Fees collected for building permits, inspections and planning and development services are General Fund revenue. These revenue sources are generated in the Community Development Services Department which includes the Planning Division, the Building Division, and Economic Development. Any excess of revenue over expenditures for this department are transferred to a fund set aside for general fund capital projects. Over 90% of the revenues collected in the Community Development Department are from the Building Division. The Building Division issues and collects money for building permits and performs building inspections. The Department contracts with inspectors who conduct building, electrical, plumbing, fire and gas inspections for residential and commercial building projects. These private inspectors are paid a percentage of the permit fees. Permit fees are based on the size and dollar value of the project. 15 City of Meridian — Revenue Manual Fees for the Planning Department cover the cost of development applications; site inspections, site and landscape plan reviews, certificates of zoning compliance etc. Effective January 2, 2002, the City Council approved new fees and increased fees to cover the costs that were not being recouped through the old fee structure. The fees were increased again in September of 2005. The new fees substantially increased fee revenue. Another new fee schedule became effective April 1, 2008. As with building permit sales, Planning Department revenue has dramatically decreased during this construction slow down. Both Building Department and Planning Department revenues are obviously tied to construction activity. When building growth drops, the revenue will drop correspondingly. The following graph provides a history of Community Development revenue. The first decade of the new century was boom and bust as far as the building industry. Residential building permits peaked in FY2005 with commercial building permits peaking in FY2008. Residential building permit sales started to slow in FY2006 and continued to drop until FY2008 remaining fairly flat from that point on. Defying the normal scenario that a spurt of commercial growth follows residential growth commercial growth shot upward in FY2012 and continues in that vein in FY2012. However many of the larger projects were planned a few years ago and put on hold during the worst of the recession. Although residential growth is picking up in FY2012 we are taking a cautious approach with revenue for our FY2013 budget. Commercial building is very hard to project and revenue varies drastically with the size of project There are still several uncertainties on the horizon such as 16 City of Meridian — Revenue Manual economic uncertainties in Europe and the economic slowdown in China. Some economists feel the sudden burst of residential building in Idaho may not be sustainable. ENTERPRISE FUND The City provides water and sewer services on a fee basis. There are two separate fee structures. Water and sewer usage fees are charged for the day to day operation and maintenance of the existing utility infrastructure. Assessment (connection) fees are charged when a new property connects to the utility system and are to expand or extend the system to accommodate additional service demands. Connection Fees Connection fees peaked in FY2005 at $10.5 million. Since FY2009 they have been approximately $3 million dollars but a spark in building activity in FY2012 is resulting in pushing revenue over the $3 million dollar mark. In the FY2013 budget we increased our revenue to $3.4 million dollars. The assessment (or connection fee) is Enterprise Fund Operating and Utility System Connection Revenue $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 s $0 Actual Actual FY06 FY07 Actual Actual Actual Actual Budget Budget FY08 FY09 FY2010 FY2011 FY2012 FY2013 KM Operating Income -i-Connection Fee Income Connection Fee History $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 collected at the time the building permit is issued. For commercial assessments, Public Works makes a determination of the amount the business will use, referred to as "ERU" or "equivalent residential unit". For example, a business might be assessed 10 ERU's, which means that they will use an amount of water equivalent to the amount 10 homes would use. 17 City of Meridian — Revenue Manual When a new residential property connects to the City Sewer and Water systems, the homeowner is assessed $2,749 for a sewer connection and $1,794 for a water connection. Utility Fees The City of Meridian started the decade with 12,000 individual utility accounts and by mid -year FY2012 there are just over 27,000 accounts. The City has two sets of fees: a fee for water usage and a fee for sewer usage. Water and sewer usage revenues have grown steadily with the growth in customer accounts and various small rate increases. However the costs to operate the utility systems, particularly the sewer system, outpaced revenue growth. The sewer system is more costly to operate than the water system. To address this problem the City approved a fixed cost rate increase for water and sewer usage effective in three installments over three years. Rates were increased in FY2009 and FY2010 but the FY2011 rate increase was cancelled. The City was hesitant to impose another rate increase during a sluggish economy and opted to postpone projects until growth picks up again. On an annual basis the City forecasts operating and capital costs for a five year period to determine if fees are sufficient to operate the system, keep up with growth, and meet regulatory requirements. The rate consists of two components: • Base (minimum charge) — Administrative costs that stay fixed regardless of the level of operation. For example, billing and accounting services. Even if the account has zero usage this rate will be charged. • Volume Charge — Covers the direct costs of providing the service, costs tend to fluctuate with the quantity of output. Such costs include maintenance and repairs, depreciation of assets and plant labor. The fee structure is as follows: The base fee is $5.38 The volume charge (cost per 1000 gallons) is $1.86 Projecting water sales is not clear cut. Factors like weather, length of the irrigation season and water conservation are impossible to predict. Water revenue changes from year to year are somewhat erratic. Most new subdivisions in Meridian have pressurized irrigation and do not need to use City water to water their landscaping. The number of water accounts has increased steadily during the mid -decade building spurt but has now slowed to less then 2% per fiscal year. FY2011 water sales were just under $6.8 million dollars with the budget for FY2012 at $6.7 million dollars and the FY2013 budget at $6.9 million dollars. :. SEWER The fee structure is as follows: The base fee is $8.48 • The volume charge (cost per 1000 gallons) is $5.43 The philosophy and methodology for the monthly user sewer charge is the same as the water charge with one change. The system cannot separate water used outside the house from water used inside City of Meridian — Revenue Manual Water and Sewer Average Annual Sales per Account $500 $450 $400 $350 $300 $250 $200 $iso $100 $so $o O, O� (P Off` Oy OD OA C.$ & tip \IV NT Ja Ja �J0 Ja �Ja Ja Ja Ja Ja ,y\� J�Q lNater Sewer the house. Water used inside the house goes into the sewer system. So, to calculate the sewer rate for each user the City averages the gallons used by the homeowner during the four winter months December, January, February and March. This is based on the assumption that no water is used outside the house during those months. This averaged rate is recalculated on an annual basis. FY2012 revenue was budgeted at $11.8 million dollars with FY2013 revenue budgeted at $ 12.2 million dollars. Actual FY2011 revenue was $11.9 million dollars. PUBLIC WORKS REVIEW FEES The Public Works Department charges fees for providing certain services such as review of development applications, inspections, site plans, and water, sewer and drainage system inspections. During the building boom these fees have generated up to $500,000 per year. However the last few years' fees have been between $35,000 and $40,000. For FY2013 budget we are budgeting $40,000. Sanitary Service Administration Fee The City has contracted with a private company, Sanitary Services Co to provide garbage pick-up service since April 1, 1997. During FY2012 SSC was purchased by another trash hauler, Republic Services, however the contract remains the same. The City receives 6% of gross sales for an administration fee because the City does all of the billing and collection. The City includes the garbage collection charge on its utility bills and remits it to the contracted trash hauler. SSC administrative fee revenue increased annually until FY2008. About that time residential growth rates started to slow and construction dumpster accounts decreased significantly. In the spring of 2010 the City switched from unlimited pick-up to an automated can collection system with free recycling. Revenues for FY2011 at $511,760, under the new rate structure were 6% over FY2010. From FY2011 to FY2012 revenues are up about 3%. We set the FY2013 budget at $500,000. 19 City of Meridian — Revenue Manual Other Income Various other departments within the utility charge small fees for other services such as making arrangements for property managers to direct the services bill to the tenant, rental of hydrant meters for construction, and certain inspections and reviews. INTEREST INCOME All of the City of Meridian's funds have cash and investment balances that generate interest. The City's investment vehicles are in accordance with the Idaho code. The City retains an investment advisor who, for an annual fee of a quarter of a percent of the dollar amount invested, maintains a portfolio of certificates of deposit, and government bonds of varying maturities. The City's checking account balances, held at Bank of The Cascades are currently 100% insured under the NOW FDIC insurance program. NOW insurance is temporary unlimited insurance for government accounts earning no interest. The City also invests in the State of Idaho investment pool. The pool behaves somewhat like a money market account; it is highly liquid with no restrictions on deposits or withdrawals. Due to the lack of restrictions on allowable withdrawals the interest rate is generally low. The State of Idaho allows local governments to invest in its diversified bond fund. Fees for participating in the bond fund are minimal. This fund is considered to be a longer term investment and withdrawals and deposits are limited. The graphs below show the City's investment portfolio and interest rates as of May 31St, 2012. City of Meridian Investment Portfolio At the writing of this report in May of 2012 the City was earning an average of less than 1% on our total investment portfolio. For the fiscal year ended 2007 the City earned almost $3.5 million dollars on a portfolio of $45.8 million dollars. In stark contrast for the fiscal year ended 2012 the City will likely only earn $400,000 on a portfolio of about $68 million dollars. On a hopeful note we are budgeting FY2013 interest revenue at $428,000, for FY2013. 20 City of Meridian - Revenue Manual ACTUAL YEAR-END CASH AND INVESTMENT BALANCES ACTUAL FISCAL YEAR INTEREST INCOME BY FUND Actual FY07 Actual FY08 Actual FY09 Actual FY2010 Actual FY2011 YE FY07 YE FY08 YE FY09 YE FY2010 YE FY2011 General Fund $22,395,898 $15,778,460 $17,762,377 $21,716,017 $18,626,778 Impact Fee Fund $2,356,215 $2,192,009 $1,982,180 $1,964,241 $2,980,470 Public Safety Fund Capital Impry $261,244 $66,521 $14,954 $2,089,202 Develop Sery/CIP Fund $4,895,585 $5,434,155 $2,204,535 $2,519,705 $4,732,850 Enterprise Fund $38,916,598 $26,926,585 $28,834,247 $31,002,315 $32,667,245 Total City $68,564,296 $50,331,208 $50,783,338 $57,202,278 $61,096,545 ACTUAL FISCAL YEAR INTEREST INCOME BY FUND Actual FY07 Actual FY08 Actual FY09 Actual FY2010 Actual FY2011 Estimated FY2012 Budget FY2013 General Fund $918,038 $845,980 $511,534 $432,118 $248,059 $170,000 $170,000 Impact Fee Fbnd $124,803 $63,759 $55,804 $16,228 $21,967 $16,000 $16,000 Capital Impry $261,244 $66,521 $14,954 $2,981 $4,159 $2,000 $2,000 Public Safety $29,348 Ebterprise Rind $2,228,460 $1,141,833 $907,521 $489,414 $386,311 $240,000 $240,000 DewlpServices $102,659 $31,010 $22,361 $9,478 $13,000 Total City $3,635,204 $2,149,103 $1,512,175 $950,220 $702,844 $428,000 $428,000 The General Fund is the fund for the general activities of the City. Revenues and expenses for public safety, parks and recreation, and general administration go through the General Fund. The largest source of revenue flowing into the General Fund is property tax. The City always maintains a four month operating reserve in the General Fund, the rest of the balance is referred to as unrestricted. Unrestricted funds are available to use for capital projects and/or to provide an additional safety margin. CIP stands for Capital Improvement Fund. The Development Services Fund was used to account for the Building Department and the Planning Department. Any excess in the Development Services Fund over operating reserves was transferred to the Capital Improvement Fund. This model worked well when the City's building permit revenue was rapidly growing. Once the building boom stopped Building Department revenues were not sufficient to support the Building and Planning Department. Technically these functions are general fund functions and reported that way in the audited year-end financial statements. Starting in FY2012 the Development Services Fund was merged into the General Fund. We do continue to isolate Planning and Building revenue and expenses and should there be an excess of revenue over expense again those funds will be transferred to the Capital Improvement Fund. Impact Fund is used to segregate impact fees for Fire, Police and Parks that are collected when building permits are sold. This fund is restricted and may only be used for designated capital projects. The Enterprise Fund balance is the fund used for the water and sewer utility operations. The fund balance is used to provide operating and other reserves and as a source of funding for large infrastructure projects. 21 City of Meridian - Revenue Manual FY2013 REVENUE BY FUND Attached are the budgeted FY2013 schedules of revenue by fund. For questions or additional information concerning the material in this report please contact the City of Meridian Finance Department by phone at 489-0419 or by email at skilchennianii @nwridian�. CAPITAL IMPRO ITEMENT FUND Actual Revenues FY2007 Actual FY2008 Actual FY2009 Actual FY2010 Actual FY2011 BudgetBudget FY2012 FY2013 Interest $214,390 $63,056 $14,523 $1,657 $4,159 $1,000 $2,000 COMMUNI T Y DE VEL OPAIENT Revenues Building Permits & Fees Planning Fees Total charges for services Interest Miscellaneous ENTERPRISE FUND Actual Actual Actual Actual Actual Budget Budget FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 10,436,067 Sale of meters 325,007 201,737 153,663 141,479 Engineering Fees $3,752,683 $3,450,564 $2,212,842 $1,938,875 $2,371,844 $1,8089000 $2,135, $330,165 $230,636 $127,410 $125,963 $1349293 $135,000 $135, $4,082,847 $3,661,200 $29340,252 $2,064,838 $2,506,137 $1,943,000 $2,270, $96,933 $36,365 $209671 $8,552 $13,000 $10,000 2,017,216 $65,291 $16,858 $29,581 $19,240 $660 $0 $4,247,071 $39734,423 $2,390,505 $2,092,630 $2,519,797 $1,953,000 $2,270,1 Actual Actual Actual Actual Actual Budget Budget Revenues FY2007 FY 2008 FY2009 FY2010 FY2011 FY2012 FY2013 Charges for services: Water revenues 4,324,846 5,271,449 5,830,195 6,390,976 Sewer revenues 6,052,325 6,411,722 7,862,962 10,436,067 Sale of meters 325,007 201,737 153,663 141,479 Engineering Fees 339,487 170,066 51,331 63,505 Trash Billing Service - - 475,567 463,148 Miscellaneous 331,874 367,676 432,428 362,019 Interest Income 1,904,725 1,282,178 672,301 430,820 Water connections 2,256,295 1,855,581 1,270,867 1,188,783 r Sewer connections r 3,063,556 r 2,709,045 2,017,216 r 1,834,076 TOTAL REVENUE: 18,598,116 18,269,453 18,766,549 21,330,873 Operating Revenue 11,373,540 12,422,650 14,806,166, 17,877,194 Capital Projects Revenue 7,224,576 5,846,804 3,960,383 3,453,679 6,756,589 6,700,000 6,920,000 11,912,510 11,800,000 12,248,000 125,448 15 0, 00 0 150,000 62,418 45,000 55,000 511,761 500,000 500,000 466,669 325,000 325,000 386,311 425,000 240,000 1,080,403 1,150,000 1,300,000 r r 1,807,672 1,900,000 2,150,000 23.131.781 22.995.000 23.888.000 19,857,395 19,520,000 20, 22 City of Meridian - Revenue Manual GENERAL FUND Fines and forfeitures Court Revenue Actual Actual Actual Actual Actual Budget Budget Revenues FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Property Tax $543,107 $485,960 $436,654 $511,560 $434,096 $405,000 $400 Base + New Construction $13,434,463 $15,679,063 $17,060,769 $18,784,574 $19,416,599 $19,335,124 $19,915,560 Allowable Increase $159,876 $167,167 $223,548 $224,629 $224,608 $200,000 $576,017 Sanitary Service Admin $13,434,463 $15,679,063 $17,060,769 $18,784,574 $19,416,599 $19,335,124 $20,491,577 Special Events 24% 17% 9% 10% 3% 0% 3% Licenses and Permits $171,211 $242,384 $270,925 $2775424 $310,082 $301,000 $311 Alcohol licenses $53,196 $42,385 $50,312 $53,725 $53,675 $50,000 $52,000 Dog License/Adoption $69,650 $70,937 $63,122 $66,382 $69,045 $65,000 $65,000 Miscellaneous $11,462 $5,073 $10,949 $16,717 $16,645 $5,000 $60,925 Total licenses -perm its $134,308 $118,395 $124,383 $136,823 $139,365 $120,000 $177,925 Intergovernmental State liquor apport. $418,775 $458,546 $496,850 $474,307 $489,949 $450,000 $490,000 State revenue sharing $3,388,596 $3,568,686 $3,126,994 $3,012,053 $3,087,105 $2,750,000 $3,000,000 Rural Fire $1,012,107 $1,504,890 $1,488,522 $1,407,660 $1,598,137 $1,569,061 $1,500,000 Grants $46,621 $101,425 $288,824 $603,269 $719,885 $709,074 ® $645,000 Total intergovernmental $4,866,099 $5,633,548 $5,401,189 $5,497,288 $5,895,076 $5,478,135 $5,635,000 Franchise Fees $1,307,324 $1,427,227 $1,510,674 $1,373,872 $1,351,866 $1,320,000 $1,313,000 Fines and forfeitures Court Revenue $523,639 $457,477 $401,432 $485,572 $424,426 $400,000 $400 Other $19,469 $28,483 $35,222 $25,987 $9,670 $5,000 Total Fines and Forfeitures $543,107 $485,960 $436,654 $511,560 $434,096 $405,000 $400 Charges for Service School Resource Officer $159,876 $167,167 $223,548 $224,629 $224,608 $200,000 $200 Sanitary Service Admin $399,427 $488,609 $0 $0 $0 $0 Special Events $24,310 $19,300 $25,850 $107,971 $85,994 $20,000 $20 Recreation programs $171,211 $242,384 $270,925 $2775424 $310,082 $301,000 $311 Park Reservations $35,389 $36,238 $51,531 $50,085 $56,401 $50,000 $56 Rental Income $7,632 $6,730 $32,609 $54,946 $41,095 $4,000 $4 Total charges for services $797,845 $960,428 $604,462 $715,056 $7185180 $575,000 $591 Interest Unrestricted $810,877 $777,328 $381,766 $383,100 $277,407 $300,000 $170 Miscellaneous Rent $0 $0 $0 $0 $0 $0 Donations $335,183 $61,047 $245,961 $90,485 $54,634 $14,000 $4 Miscellaneous $135,936 $282,400 $649321 $11,804 $92,942 $100,000 $35 Total Miscellaneous $471,120 $343,447 $310,283' $102,288 $147,575 $114,000 $39 RESTRICTED Impact Park Impact Fees $891,706 $1,039,104 $757,938 $753,830 $711,299 $600,000 $700 Fire Impact Fees $445,555 $523,836 $241,814 $266,060 $335,697 $275,000 $280 Police Impact Fees $103,116 $126,770 $54,824 $64,732 $77,720 $65,000 $60 Total Impact Revenues' $1,440,377, $1,689,710 $1,054,575 $1,084,622' $1,124,716 $940,000 $1,040 Interest Restricted $114,947 $76,603 $44,180 $25,803, $21,967' $20,000 $16 TOTAL REVENUE $239920,467' $27,191,708' $26,928,937 $28,614,986 $29,526,850, $28,607,259 $29,873 Income Restricted $1,555,324, $1,766,313 $1,098,755', $1,110,424' $1,146,683' $960,000 $1,056 Income Unrestricted $22,365,143', $25,425,396 $25,830,182' $27,504,561' $28,380,167; $27,647,259 $28,817 23