2009-2010 Final 2009-2010 Final Budget Budget

PresentationPresentationBrigham City Mayor Brigham City Mayor

Lou Ann ChristensenLou Ann Christensen

May 14, 2009May 14, 2009

State of the City 2009State of the City 2009

““In the In the middle of middle of difficulty difficulty

lies lies opportunitopportunity.”y.” Albert EinsteinAlbert Einstein

1. Stay the course for Vision 20122. No reduction in city services.3. Maintain the integrity of our

infrastructure.4. Fund for capital improvements.5. Maintain our emergency funds.6. Avoid a reduction in workforce.7. Protect employee benefits.8. Keep employees’ salaries to at least

96% of market.

2009-’10 Budget Focus

Created a culture of: Frugality Team work Can do attitude Cost awareness Awareness of

cost reduction opportunities

Jobs

Households

Increased Sales

TaxesCommercial

Fiscal ResponsibilityFiscal Responsibility

Fiscal ResponsibilityFiscal Responsibility

Working SmarterWorking Smarter Restructuring of Restructuring of

departmentsdepartments Improved collaboration Improved collaboration

between departmentsbetween departments Resulted in cost Resulted in cost

savings to Citysavings to City Performance Performance

Management programManagement program Employees are held Employees are held

accountableaccountable Measureable resultsMeasureable results

Federal Grants Obtained (over 6 Federal Grants Obtained (over 6 years)years) Bear River Access Road $10.9 millBear River Access Road $10.9 mill Dance Academy Building $ 1.15 millDance Academy Building $ 1.15 mill Wind Energy Study -3 phases $ 2.6 Wind Energy Study -3 phases $ 2.6

millmill Airport Enhancement $ 24 mill Airport Enhancement $ 24 mill NRCS Creek mitigation $ 400KNRCS Creek mitigation $ 400K Homeland SecurityHomeland Security $ 3.8 mill $ 3.8 mill Trails Grant $250,000 Trails Grant $250,000 Innovation Center $ 48,000Innovation Center $ 48,000 CDBG $ 425,000CDBG $ 425,000 ACOREACORE $ 500,000 $ 500,000 LibraryLibrary $ 650,000$ 650,000

TotalTotal $44.7 $44.7 millmill

Ambulance:

Rebid oxygen saving $5,000

Developed a “real time” inventory for disposable supplies, resulting in cost savings.

Fire: Train in house. Using

carpooling/city van

Emergency Management:

Use of volunteers for office work.

Leisure Services: Reclassification of

all temporary positions Streamlining

positions Elimination of

nonessential job categories.

 Delayed early hiring of temporaries and letting go seasonal workers as early as possible.

Leisure Services Cont. Requested

vendors to “warehouse” supplies and materials for us and still give us the volume purchase price.

Use in house resources wherever possible. 

Maximize the use of volunteers.

Use of federal Summer Stimulus Internship Program.

Public Works: Reduced Storm Drain

Cleaning Expenses $10K Use of UDOT fueling

station for vehicles for an average savings of 15 cents per gallon.

Saved $75K for tree trimming

Saved $2K by repairing a back flow valve in house

Centralizing purchasing has saved money

Repaired hydrants on Main Street instead of purchasing new hydrants saving $6K.

Public Works (cont): Bidding projects now

due to the economy has cut pricing in half from engineering estimates.

Rebuilding aerator at WWTP and saved $7K.

Coordinating street cuts with the Street/Water departments has saved several thousand $$ on street repairs.

Using the new city track hoe to do concrete tear out and prep work is saving money on each job.

Making and installing our own filtering on the irrigation system at Pioneer Park saved $5K.

Rebuilding a pump at the Waste Water Treatment Plant saved $15K

Administration: Purchases order over $5K must be

preapproved by the Director of Finance prior to purchase.

Investing excess cash in higher yielding CDs to maximize our interest income.

Analyzed the cost of banking services and saved $2K per year by canceling a sweep service that was not making any money for us while rates are low.

Police: Reduced one part

time employee saving $12K/year.   

Reduced one Police Fleet Vehicle saving $24K.   Strike Force picked up the purchase. (City responsible for fuel / Maint.)

Senior Center: Cost stabilization

overall for several years with the exception of the nutrition line

Utilizes the community pantry and seeks better prices for the items that they use regularly. 

Protocols are in place if they need to limit the number of participants receiving meals on wheels or attending the congregate lunch site.

Museum: Reduced exhibit expenses

by taking advantage of the National Endowment for the Humanities

Switched to postcard mailers for advertising.

Stopped out sourcing graphic design work.

Saved in the “Professional and technical” category by doing projects themselves and restricting unnecessary projects. 

Utilizing volunteers.

The General Economic effect on Brigham City Citizens.

Projecting a 10%, or $300K decrease in Sales Tax Revenue.

Projecting a 69%, or $225K decrease in Interest Income

Projecting a 12% decreases in revenue from Commercial/Industrial Power Sales.

Electricity Rate Increases from RMP and WAPA are projected.

$1 Million budgeted in 2009-10 for Electrical Grid Improvements.

$552,000 budget for Water System Improvements.

2009/10 General Fund Budget 11.2M 2009/10 Utility Budget 17.1M

(including storm drain)

Pass Through Energy Cost Increases.

Use Approximately $177,000 of Fleet Fund Balance to Cover Expenditures.

Budget Restraint by Directors.

No Projected Increase in the General or Utility Fund Balances.

Use Grant Funding for Capital Projects when Available. Airport Ramp Area Construction Mantua Trail System Police Safety Vests

Use of Capital Project Fund. Take advantage of the purchasing power

of the dollar in the current economy. Continue to aggressively seek grant

funding

INTEREST INCOME1%

MISCELLANEOUS2%

CHARGES FOR SERVICES

17%

INTERNAL GOVERNMNT

9%

LICENSES/PERMITS3%

FRANCHISE TAXES8%

SALES TAXES24%

FUND BALANCE0%

TRANSFER IN30%

PROPERTY TAXES6%

Projected to be $2.7 million

2009/10 Budget 10% decrease

From 2008/09 budget

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

FY'04

FY'05

FY'06

FY'07

FY'08

FY'09

FY'10

Sales Tax

Decreased percentage transfer to the General Fund from the Utility Funds FY 2006/07 - 16.86% FY 2007/08 - 16.21% FY 2008/09 - 15.50% FY 2009/10 – 15.3%

14.50%

15.00%

15.50%

16.00%

16.50%

17.00%

2006-07 2007-08 2008-09 2009-10

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2009 Est 2008 2007 2006 2005 2004 2003

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2009 2007 2005 2003 2001

FB

18% State Limit

$2,023,000

Increase utility rates 3.32% Water Waste Collection Storm Drain (per eru) Waste Treatment Electrical

Less than the 3.8% 2008 CPI

Estimated Fund Balance June 30, 2009

$304,000 Estimated Fund Balance June 30, 2010

$354,000 $50,000 Increase

Electrical Rocky Mountain Power – 3.65% Western Area Power Administration –

2.42% Municipal Energy Sales Tax increase of

0.75% to be passed on to users

Public Utility49%

General Fund30%

Capital Projects

3%

Fleet5%

Library2%

RDA6%

Golf2%

Debt3%

Airport.2%

GENERAL FUND EXPENDITURES

ADMIN.22%

POLICE26%

EMERGENCY SERVICES

9%

PUBLIC WORKS

26%

LEISURE SERVICES

12%

SENIOR CITIZENS

5%

INC. IN FUND BALANCE

0%

TRANSFERS OUT0%

Estimated Balance June 30, 2009

$20,000 Estimated

Balance June 30, 2010 $120,000

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

2009/10 2008/07

SUBMITTED

BUDGETED

Total Funding FY 2009-10

Purchase 21 pieces of new

equipment Lease 10 pieces

of existing equipment

FY 2008-09 purchased 18

pieces of new equipment

Leased 12 pieces of existing equipment

850000

900000

950000

1000000

1050000

1100000

1150000

1200000

2009-10 2008-09 2007-08 2006-07

Vehicle/Equipment Expenditures (dollars)

1% Pay for Performance/ Merit

Additional funding for market adjustments

96% of Market

$540K decrease in Sales Tax and Interest Income from 2008-09

Utility Transfer to General Fund decreased by .2%

$4.2M in Capital Projects($2M City’s Share)

No reduction in city services. Budgeted to maintain the

integrity of our infrastructure.

Utility Rates Increases of 3.32%

Continue match for employee 401k retirement plans.

Health insurance participation remains the same.

Funded for market adjustment. 1% merit increase for

employees. No employee lay offs, work

furloughs or reduced work hours.