PERSONNEL SERVICES HIGHLIGHTS
A salary schedule was developed in Fiscal Year (FY) 2014‐15. Each fiscal year, employee evaluations are given in January and employees are considered for a step increase. The step increase is reflected in the FY 2018‐19 budget along with a 2.75 percent cost of living adjustment.
Citywide, FY 2018‐19 personnel services will increase $134,155 or approximately 10 percent over the FY 2017‐18 budget. There is a scheduled 9.1 percent increase in the cost of medical insurance benefits for FY 2018‐19. Workers’ Compensation insurance is expected to decrease 2 percent. There is a new unemployment reserve in FY 2018‐19. The City’s rate for Public Employees Retirement System (PERS) is the same as for FY 2017‐18. However, the PERS rates are projected to increase beginning in FY 2019‐20.
For FY 2018‐19, the Assistant City Recorder/Court Clerk position was eliminated. The effect of this offset some of the increase in personnel costs.
GENERAL FUND HIGHLIGHTS
The taxable value of all the property within the Creswell City Limits increased by $15,645,105 to a total taxable value of $370,359,827. We estimate that the General Fund will receive approximately $964,610 in current property taxes in FY 2018‐19, an anticipated increase of $36,290. The 2018‐2019 Budget continues to reflect the City Council policy decisions to reduce the fund balance reserves to provide improved services to the community. In an effort to enhance services to the community, the City is continuing to pursue economic development in much of the commercial and industrial zones that lack proper infrastructure.
Further, the General Fund will make a loan to the Airport Fund to build hangars and transfer reserves to the Capital Improvement Fund to complete the second floor of City Hall to rent out to an agency such as LCOG. Both endeavors will provide future revenue streams for the respective funds.
The General Fund for FY 2016‐17 reflected a $187,551 increase in the ending fund balance, from $1,460,037 to $1,647,588. This increase was due to a decrease in capital outlay in culture and recreation and a decrease in materials and services in planning and land use. For FY 2017‐18, the projected General Fund reserves will be decreased to $1,561,279. For FY 2018‐19, General Fund reserves are budgeted to be reduced to $705,738. Ending fund balance reserves and contingency meet the minimum requirements established by City fiscal policy.
General Fund revenue estimates indicate a 23 percent increase over FY 2017‐18. This is due primarily to grant revenues of $250,000 to build a community commercial kitchen at the Cobalt Activity Center. Further, new revenue sources in FY 2018‐19 includes Internet service provider-related telecom fees from Charter of $33,000, franchise fees from Emerald Valley Wastewater of $8,520 and long‐term tenants at the Cobalt Activity Center and the Community Center of $14,000. This year the City anticipates a 7.5 percent increase in insurance coverage for property. However, there are no rate increases expected for liability insurance. The appropriations for health insurance has been increased by 9.1 percent to account for the anticipated rate increases.
Councilor stipends were reclassified from materials and services to personal services in FY 2018‐19, resulting in an $18,000 increase in personal services over FY 2017‐18. Miscellaneous expenditures decreased $27,200 in FY 2018‐19 as the funds granted to the Creswell Heritage Foundation in FY 2017‐18 were a one‐time expenditure. City Hall/Shop facilities maintenance increased $10,750 in FY 2018‐19 for scheduled HVAC system repairs.
Culture and Recreation
A Custodial position has been added to provide additional maintenance support to the Cobalt Activity Center and Community Center in FY 2018‐19. C&R Grants expenditures decrease $26,000 in FY 2018‐19 as the funds granted to the Creswell Heritage Foundation in FY 2017‐18 were a one‐time expenditure. Capital outlay increases $234,297 in FY 2018‐19 to install the community commercial kitchen at the Cobalt Activity Center using grant funds.
Contractual services for police protection increases $13,371 or 1.8 percent in FY 2018‐19.
Planning and Land Use
Contractual services related to economic development will decrease $50,000 in FY 2018‐19 as plans are nearing completion to prepare an Urban Renewal District. Also, the Comprehensive Plan update expenditures will decrease $7,500 in FY 2018‐19 as work is progressing to update the plan.
STREET FUND HIGHLIGHTS
State Highway revenues are anticipated to increase by $96,866 (30 percent) to $392,117 in FY 2018‐19 due to the passage of HB 2017. Further, $165,031 in Oregon Department of Transportation (ODOT) State Exchange funds that have accumulated each year since 2014 will be carried forward as the 5th Street project is still underway. In FY 2018‐19 a transfer of $100,000 is proposed to continue funding the Street Capital Improvement Reserve Fund.
BICYCLE FOOTPATH FUND
Revenues in this fund have been transferred from the Street Fund to finance ongoing bicycle lane striping projects. These projects will continue this fiscal year. The transfer from the Street Fund will increase $1,000 in FY 2018‐19 due to the increase in State Highway revenues.
BUILDING DEPARTMENT FUND
Permit revenues are projected to increase approximately 30 percent due to raising permit fees to be in common with our partner in Cottage Grove. Appropriations for Contractual Services are based on a percentage of permit revenues. The ending fund balance for FY 2018‐19 is expected to increase $26,229 to $71,913 compared to the FY 2017‐18 budget amount of $45,684.
The Water Fund contains federally- and state-mandated programs. It is necessary that the utility rates are structured to ensure that funds are available to pay for operating expenses, ongoing capital needs and debt service obligations. A water rate increase of 4 percent is recommended for FY 2018‐19 by the Water Rate Advisory Committee. Transfers of $292,580 are being made to the Water Capital Improvement Fund in FY 2018‐19 for current and future capital improvement plans. Debt service reserves meet the requirements set by lenders. Ending fund balance reserves and contingency meets the minimum requirements established by City fiscal policy.
A sewer base rate increase of $41.75 to customers was recommended for FY 2018‐19 by the Water Rate Advisory Committee. This will result in a $1.25 increase to the utility bill per month. With the proposed rate increase, the Sewer Fund will be able to transfer funds to the Sewer Capital Improvement Fund to build reserves, as noted in the recent Wastewater System Facilities Plan. Transfers of $204,455 are being made to the Sewer Capital Improvement Fund in FY 2018‐19. As a significant portion of the current debt service will be retired in FY 2019‐20, the capital reserves will be used to help finance new projects and keep new debt service requirements at a level that will not drastically affect future rates.
A debt service reserve of $215,000 in FY 2018‐19 ensures adequate reserves are set aside for debt service obligations for the following year. Ending debt service reserves meet the requirements set by lenders. Ending fund balance reserves and contingency meet the minimum requirements established by City fiscal policy.
Airport revenues are expected to increase in FY 2018‐19 due to receiving grant awards for taxi lane improvements. Also, an interfund loan from the General Fund of $280,000 is being recommended to fund hangar construction. Airport fuel revenues have rebounded in FY 2017‐18 due to the return of a regular jet customer. However, fuel sales for FY 2018‐19 are not projected to increase. New box hangars are budgeted to be constructed in FY 2018‐19 with plans to add more tenants in subsequent years. Additional hangars could mean more fuel sales to new tenants.
The Airport Fund for FY 2016‐17 reflected a $17,073 decrease in the ending fund balance, from $213,818 to $196,745. For FY 2017‐18, the projected Airport Fund reserves will be decreased to $153,272. For FY 2018‐19, Airport Fund reserves are budgeted to be further decreased to $120,838. Ending fund balance reserves and contingency meet the minimum requirements established by City fiscal policy.
LOCAL IMPROVEMENT DISTRICT
The City will continue to collect receipts associated with the improvements on Harvey Road. There are no new local improvement districts planned for FY 2018‐19.
CAPITAL IMPROVEMENT FUND
Improvements scheduled for completion in FY 2018‐19 include replacing 20 percent of the personal computers, updating the access control system and upgrading the lighting in the Council Chambers.
WATER CAPITAL IMPROVEMENT RESERVE FUND
In FY 2018‐19, transfers of $292,580 will be received from the Water Fund for current and future capital improvement plans. Water capital improvement for FY 2018-19 includes completing work on the 5th Street project.
SEWER CAPITAL IMPROVEMENT RESERVE FUND
In FY 2018‐19, transfers of $204,455 will be received from the Sewer Fund for current and future capital improvement plans. Sewer capital improvements for FY 2018‐19 includes completing work on the 5th Street project.
STREET CAPITAL IMPROVEMENT RESERVE FUND
In FY 2018‐19, transfers of $100,000 will be received from the Street Fund for current and future capital improvement plans. Street capital improvements for FY 2018‐19 includes completing work on the 5th Street project.
SDC RESERVE FUNDS
The System Development Charges (SDCs) account for revenues and expenditures for projects associated with development of residential and commercial property growth in the community. As the economy continues to improve, revenues in these funds will increase. System Development Charges are held in reserve for projects in accordance with Oregon Revised
Statute (ORS Chapter 223) and can only be expended for purposes specifically outlined in ORS 223.307. In FY 2018‐19, expenditures for park land acquisition and park planning and design are budgeted in the amount of $362,250.