Budget Review and OutlookCITY TF
MONTANA
February 19, 2009
TO: Mayor & City Council
FRM: Interim City Manager
Re: Budget Outlook Workshop
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
The purposes of this workshop are to:
• Brief the council on present FY2009 budget status.
• Brief the council on the projected outlook for the FY2010 budget.
• Brief the council on changing the way the Parks and Rec Dept is funded.
• Provide an opportunity for the council to provide guidance to the staff in formulating
department budgets for FY2010.
1. FY2009 status:
• General Fund- the finance director projects the general fund to end the year with a reserve
of $179,538. This is a slight increase over the projection last month. This fund is now
balanced between revenues and expenditures. While the general fund situation may not be
getting any better it is not getting any worse.
Ambulance Fund- the ambulance is projected to have an operating deficit of $50,000
which, if not corrected, will come from the general fund reserves. Last year the operating
deficit was $20,000. The higher deficit this year comes from higher salaries and a lower
collection rate.
• Other Funds: there are no issues.
2. FY2010 Projection: General Fund- revenues/expenditures/reserve for FY2010 are projected to
be:
• Revenues- $10,475,145
• Expenditures- $10,403,880
• Reserve- $259,758 (2.5%)
This assumes:
1. No salary increases except for longevity and contractual obligations.
2. Solve the ambulance deficit issue.
3. No hiring except for approved replacements.
4. Limited layoffs allowed.
• Ambulance Fund- is projected to run an operating deficit of at least $50,000.
Other Funds: all other funds, with the exception of the ambulance fund, have at least a
reserve of 10% or more.
Building Code- 25% Light Maint-38%
Gas Tax- 36% Street- 35%
Urban Forestry- 12% Community Develop- 44%
Water- 46% Sewer/WWTP- 11%
Storm Sewer- 100% Solid Waste- 17%
Airport- 38%
Data Processing- 17%
3. Department heads will complete their FY2010 budgets based on the FY2010
revenue/expenditure projection and return with:
• How many FTE's will be funded.
• What equipment will be purchased.
What tasks the department can and or cannot accomplish.
4. Park and Rec alternate funding- Amy Robertson/Mike Baker.
Cl,n'f City of Kalispell
W
IE Post Office Box 1997 - Kalispell, Montana 59903
11� ONTANA Telephone: (406) 758-7701 Fax: (406) 758-7758
REPORT TO: Mayor Kennedy and City Council Members
FROM: Amy Robertson, Finance Director
Mike Baker, Parks & Recreation Director
SUBJECT: Parks & Recreation Funding
MEETING DATE: February 23, 2009
In an effort to stabilize the Parks and Recreation Department we would like to suggest that the
Parks department budgets be put in a Special Revenue Fund. This can be accomplished by
allocating a number of mills directly to the Parks fund. Currently the General Fund levies 138.76
mills for all operations including Parks & Rec. The attached spreadsheet shows the allocation of
mills to cover Parks and Recreation programs at today's budget level.
The advantages to pulling the Parks Department out of the General Fund include:
• Not having to compete for resources in the General Fund —fixed amount of
funding.
• Encourages the Recreation programs to operate efficiently. Good management
would allow the department to grow. The Special Revenue Fund would receive
the revenue generated by all recreation programs including the pool.
• Allocating 9 of mills would provide additional revenue as the City grows and the
value of a mill grows - the fund would benefit.
The disadvantage would be our fiscal year — we would need to implement this prior to July 1st
simply because June is the month that Recreation (Day Camps and Pool) programs generate the
most income. Beginning cash flows would be helped by implementing this in the spring.
It would be necessary to do a budget amendment and prorate the mills. We will have the same
issue with reserves as the General Fund and so would suggest that the City designate 25 mills for
parks. If we implement prior to July 1st we would prorate approximately 2 mills per month to the
Parks program.
The resolution establishing the number of mills should probably state "minimum mills" as this
level does not provide for any capital purchases or improvements. The Parks Department could
each budget year request additional mills based on need and resources available through the
budget process.
This was discussed with the auditors and they are on board. Many governments are designating
levies for this function as well as public safety.
Parks analysis - tax support
Athletic
Parks Complex
2009
BUDGET $ 453,131 $ 129,775 $
REVENUE $ 18,000 $ - $
Youth Camps
Recreation After School Ice Rink Pool Total
191,634 $ 202,239 $ 39,407 $ 284,123 $ 1,300,309
94,000 $ 118,500 $ 25,000 $ 193,000 $ 448,500
$ 435,131 $ 129,775 $ 97,634 $
11.919 3.555 2.674
mill= $36,507
83,739 $ 14,407 $ 91,123 $ 851,809
2.294 0.395 2.496 23.333
Tax Support $ 851,809
# of mills 23.33