Town of Elizabeth 2009 Budget TAB TITLE HERE Adopted December 12, 2008 I. General Fund The 2009 General Fund Budget is presented with revenues and expenditures balanced. That is, the amount of anticipated revenues plus other financing sources is equivalent to the amount of expenditures. The 2009 budget includes $1,454,476 in revenues and $1,565,442 in expenditures, which includes a spend down of fund balance of $110,392 for instituting Home Rule($20,000), roof and gutter repairs to the Police Department Building ($12,000), Town Hall roof repairs and painting ($20,000), Downtown Planning ($30,000), Municipal Land Use Code updates ($15,000), compensation survey ($10,000), and GIS mapping ($3,392). Please note that it is generally an accepted practice to spend down fund balance only for one-time expenditure and not annual operating costs. Since the costs would be considered one-time expenditures, the spend down of fund balance is permissible pending Board approval. A. Revenues 1. Taxes The 2009 Budget includes an anticipated 2% increase in revenues and other financing sources. Based on the December 3 Certified Valuation information provided by the County Assessor, the Town should experience a 4% increase in property tax. Note the Town is granted allowances for new construction before calculating the 5.5% property tax limitation. Also note that although the property tax revenues are increasing, in order to comply with the 5.5% property tax limitation, the Town will be required to complete a temporary mill levy reduction from 21.000 mills to 15.913 mills. The budget also includes a forecast of flat sales tax form the 2008 estimated collections. True-Value hardware and Landlley Meats are welcome additions to the Town’s sales tax base, but the impact of a new Wal-Mart being constructed outside of the Town boundaries is unknown at this time. The Elbert and Highway 86 Metropolitan District will be distributing 40% of a 4% Public Improvement Fee (PIF) assessed on properties in the Wild Pointe commercial development to the Town of Elizabeth. Wal-Mart anticipates opening in August of 2009. The collections from Wal-Mart are unknown at this time. As a precautionary measure the 2009 budget does not account for any collections from the Elbert and Highway 86 Metropolitan District. This will enable the Town to utilize the PIF revenues to respond to any loss in retail sales tax to existing businesses impacted by Wal-Mart. The Town receives $900.00 for a telephone utilities occupation tax. 2. Licenses and Fees The 2009 Budget includes a 2% increase in Franchise Fees collected from Black Hills Energy, IREA, and Comcast. The Comcast Franchise Fees is calculated based on 5% of gross revenue collected within the Town of Elizabeth from Comcast for services in the Town. The IREA payment is 3% of the first $10,000 of annual gross revenue, plus 2% of the annual gross revenue in excess of $10,000 derived from the sale of electric energy to each customer for such service at any one location in Town. The Black Hills Energy franchise agreement is an amount equal to three percent (3%) of gross receipts derived from the sale, distribution or transportation of natural gas delivered within the Town limits. The 2% increase is primarily based on expected increase from Black Hills Energy from rate increases. The only substantial building permit anticipated for 2009 is the Walnut Groves Town home project. Outside of that project, there appears to be little anticipated activity. Walnut Groves anticipates beginning construction once the cleanup of the site has been completed. They will not build all 29 units at once, but will build the units when demand is realized. Therefore, the 2009 Building Fees revenue is conservative. Please note also that SAFEbuilt of Colorado, Inc, the Town’s Building Official, receives 75% of building permit fees. 3. Fines and Forfeitures The budget includes a similar amount in court fines in the 2009 budget to the previous year’s figures. The amount of court fines collected in 2008 remains consistent with 2007 and it is anticipated that with the current staff those figures will not fluctuate greatly in 2009. 4. Other Funds The transfer in from the Street Maintenance and the Water and Sewer Fund is increasing dramatically in 2009 primarily due to budgeting of the Public Works Department personnel costs in the General Fund. The most significant change to the 2009 budget is that the General Fund will be paying for 10% of the personnel costs for the Public Works Department. Additionally, the personnel costs have been placed in the General Fund and the other 90% of the personnel costs from the Street Maintenance Fund and the Water and Sewer Fund are paid through a transfer from those funds to the General Fund. 5. Earmarked Funds The Conservation Trust fund dollars received for the Town’s portion of the lottery proceeds are earmarked for park and recreation land acquisition or capital improvements. The lottery proceeds are distributed to local governments based on population. The Town anticipates that 2009 collections will be consistent with 2008 or $9,674. Finally in 2009 the Town will receive $2,700.00 from a Colorado Rural Law Enforcement Grant for a power switch at the Elizabeth Police Department. The power switch will enable switching of power sources to the Police Department building in case of electrical outage. B. Expenditures 1. Personnel The 2009 Budget proposes the additional of one new Full Time employee to the Public Works Department. The new position is entry level Public Works employee at $10.00 per hour. The position was created partially through savings in hiring a replacement Public Works employee in September of 2008 at an entry level rate instead of at the Public Works III level. This will create a Public Works Department staff including four Full time employees and one seasonal worker. The 2009 Budget proposes the following salary plan based on merit. The details follow: The 2009 budget includes a 2.5% salary increase for all positions. Please note that the 2.5% salary increase is not automatic at the beginning of the year. The proposal is for merit increases at the employee’s anniversary date. The Town Administrator will determine the distribution of merit increases for department directors ranging from 0% to 4% depending on performance. Department Directors will be responsible for employees within their department, upon final approval by the Town Administrator. At the employees anniversary date an evaluation will be conducted and based on the evaluation the amount of merit increase will be determined. Essentially, the Board would be granting a 2.5% merit pool or the equivalent of $17,450 for salary increases. The 2009 budget includes an anticipated increase in medical insurance of 10% over the previous year premiums. The health insurance package is again with Kaiser Permanente, which is a high deductible ($2,000 individual/ $4,000 family) with a health savings account (HSA). The budget includes a Town contribution of $2,000 towards the HSA for the individual employee to cover the individual deductible. The Town covers employee’s premiums at the following percentages: o 100% Medical Coverage for employee only for the first two years. After two years the Town pays for employee and 80% of dependent care. o The Town covers 100% of dental and vision insurance for employee and dependants. 2. Supplies and Services Substantial items in the 2009 General Fund Budget Supplies and Services categories include: $20,000 in legal service for becoming Home Rule. $30,000 for a Downtown Development Plan. $12,000 for an upgrade to the utility billing system and $40,000 for new meter reading equipment. $15,000 for professional assistance in revisions to the Municipal Code including Zoning, Site Plan, Landscape, Parking, and Lighting. $20,000 for the annual financial audit. 3. Capital Outlay The 2009 Budget includes budget for the Police building lease purchase payment and $30,000 for a replacement police vehicle. II. Street Maintenance Fund The 2009 Street Maintenance Fund Budget is presented with revenues and expenditures balanced. That is the amount of anticipated revenues plus other financing sources is equivalent to the amount of expenditures. The 2009 budget includes $296,725 in revenues and $482,022 in expenditures, which includes a spend down of fund balance of $185,297 for the asphalt overlay of County Road 13 from SH-86 to the north end of the High School. A. Revenues 1. Taxes The 2009 Budget for the Street Maintenance Fund includes 10% of the portion of the 1.5% sales and use tax imposed for street maintenance. The 2009 budget includes no increase to the sales and use tax collections. 2. Intergovernmental The 2009 Budget includes an increase in the Town’s portion of the Road and Bridge property tax from the County by $2,183. 3. Other Sources Investment earnings are forecasted to decline based on lower available interest rates and the spend down of fund balance, which will reduce available funds for investment. B. Expenditures 1. Personnel The 2009 Budget for the Street Maintenance Fund includes 30% of the personnel costs associated with (1) Public Works Director, (3) Maintenance Workers, and (1) temporary employee. The Public Works employees will be paid out of the General Fund with transfers from the Street Maintenance and Water and Sewer Funds for their designated percentages. Personnel costs are allocated thirty percent (30%) from the Street Maintenance Fund, thirty percent (60%) from the Water and Sewer Funds, and ten (10%) from the General Fund. The 2009 Budget proposes a 2.5% merit salary pool for staff. 2. Supplies and Services The 2009 budget includes $202,661 in Contract Services for the overlay of CR 13 north from SH-86 to the town boundary and $15,000 for road material associated with water gate valve replacements. 3. Capital Outlay The 2009 Budget identifies three capital outlays amounting to $19,000. The budget includes $8,000 for a snow blow blade for a Ford F250, $5,000 for a skid steer sweeping attachment, and $6,000 for utility vehicle for the additional employee. 4. General and Administration The 2009 Budget includes a $154,483 transfer out to the General Fund to offset administrative costs associated with managing the street program and thirty percent (30%) of public works personnel costs. The administrative costs $85,286 is derived based on the availability of resources not specifically earmarked for street maintenance. III. Street Capital Improvement Fund The 2009 Street Capital Improvement Fund Budget was created to account for the 90% of the 1.5% sales and use tax earmarked for street improvements. The budget includes the remaining portion of the bond funds issued for street, utilities and drainage improvements. The 2009 budget assumes the 2007 -2008 project will be completed. No further budget for the project, except litigation costs associated with the Scott Contracting dispute are included in the 2009 budget. A. Revenues 1. Taxes The 2009 Budget for the Street Capital Improvement Fund includes 90% of the portion of the 1.5% sales and use tax imposed for street improvements. The 2009 budget forecasts flat sales and use tax collections. 2. Grant The $4,150 GOCO grant will be placed in the Street Capital Improvement Fund to account for the annual contribution towards the Okerman land purchase. This will be the last year the Town receives $4,150 in grant proceeds. The Okerman lease purchase will be paid out in 2010 in the amount of $1,000, the 2010 GOGO grant will be $200. B. Expenditures 1. Personnel No personnel expenditures occur in the Street Capital Improvement Fund. 2. Supplies and Services No personnel expenditures occur in the Street Capital Improvement Fund. 3. Capital Outlay The 2009 Budget includes $500,000 as a contingency for potential litigation costs associated with the Scott Contracting dispute and $150,000 for evaluation and construction of drainage issues related to storm water runoff and detention on the southeast quadrant of Town. 4. Debt Service The 2009 Budget includes the annual debt service payments for the 2003 and 2006 street bond issues. Additionally, $20,238 is budgeted for the Okerman Lease Purchase for property in Bandt Park. This will be the last year of full payment for the Okerman Lease Purchase. The 2010 budget should reflect a substantial decrease as final payment is $1,000 in 2010. IV. Water and Sewer Fund The 2009 Water and Sewer Fund Budget is presented with annual revenues greater than expenditures by $53,233. The $53,233 is based on $64,000 budgeted for water and sewer tap fees and which should not be utilized for operating and maintenance expenditures. Without the tap fees, the Water and Sewer Fund has a budgeted spend down of $10,767 for needed improvements and equipment for the water system. There are substantial capital improvements budgeted for in 2009 including the upgrade and expansion of the Gold Creek Wastewater Treatment Facility and upgrade to the Lower Dawson water well. Please note that a portion of the fund balance is reserved for future capital improvements established by the reserve of tap fees earned and budgeted. A. Revenues 1. Charges for Services The Charges for Services revenues includes the monthly water and sewer charges. The 2009 budget anticipates revenues consistent with the 2008 estimated year-end figures. There is no foreseeable major change to consumption patterns or use and therefore, collections are expected to remain flat. 2. Water Taps The 2009 Budget includes an estimate of a portion of the water and sewer taps fees from the development of the Walnut Groves Town Home Project. Note however, that the tap fees are reserved for future major capital improvements and should not be included in revenue available for annual operating expense. 3. Grant Revenues The budget has no grant funds; however, the Town will still seek grant assistance with the major capital improvements when designed. 4. Other Financing Sources The budget includes $4,745,273 from revenue bonds for the upgrade and expansion to the Gold Creek Wastewater Treatment Plant. Design is nearing completion and the project should being construction in late fall 2008 or early spring 2009. 5. Transfer In The 2009 Budget includes the transfer of $656,924 from the Capital Improvement Fund from the 1.5% sales and use tax approved by the voters in 2007. $306,924 of the transfer is for the debt service on the revenue bond issued for the wastewater treatment plant. The remainder $350,000 is for upgrade to the Lower Dawson Water Well. 6. Miscellaneous The miscellaneous revenues includes the lease of effluent water from the Wastewater Treatment Plants. B. Expenditures 1. Personnel The 2009 Budget for the Water and Sewer Fund includes (1) Public Works Director and (3) Maintenance Workers. The Public Works employees will be paid out of the General Fund with transfers from the Street Maintenance and Water and Sewer Funds for their designated percentages. Personnel costs are allocated thirty percent (30%) from the Street Maintenance Fund, thirty percent (60%) from the Water and Sewer Funds, and ten (10%) from the General Fund. The 2009 Budget proposes a 2.5% merit salary pool for staff. 2. Finance Transfer The 2009 Budget includes $369,202 transfer to the General Fund to allocate costs for utility billing and customer service costs incurred by the Office Assistant, Town Clerk, and Finance Officer. Additionally, the transfer includes 50% of the Town Administrator and 25% Town Planner personnel costs. Finally, the transfer includes 60% of the Public Works personnel costs. 3. Services and Supplies The 2009 Budget includes an increase in services and supplies, primarily due to the replacement of water gate valves throughout Town. a. Water Contract Services includes one-half of a year of one-third of the funds for AAA Operator’s bi-weekly service as well as $40,000 for contractor’s replacement of water gate valves. The Public Works employees are getting certifications to reduce the Town’s reliance on AAA Operators and the portion of the contractor service for that purpose includes 6 months of their time to transition. There is an increase in supply budget for pump replacements and a portion of software costs for AutoCad. Legal services includes $10,000 for consideration of adjudicating rights for water from recent annexed properties. b. Sewer Contract Services includes two-thirds of the expense for AAA Operator’s bi-weekly service as well as some additional funds for emergency call outs or additional work. The reduction in this line item is due to the expected transition to Town staff responsibilities. Electricity is increasing due to the Running Creek Lift station coming on line. We will still be treating at Running Creek as well, so there is no decrease in electricity costs until we decommission Running Creek. Training budget has increased in an effort to get PW employees certified in wastewater operations. $2,000 in equipment rental is budgeted for potential demand for shoring boxes. $6,000 is budgeted for annual sewer line jetting and $5,000 for repair and maintenance as needed. $5,000 is available for miscellaneous engineering outside of the design improvements. 3. Capital Outlay The 2009 Budget includes $4,745,273 for the upgrade and expansion of the Gold Creek Wastewater Plant. The Town was authorized by the CWPRDA for revenue bonds in the amount of $5,145,273. The engineering design costs of $400,000 took place in 2008; the remaining funds are for construction and management of the project. The second project identified is $350,000 for upgrade of the Lower Dawson Water Well. The project involves re-drilling the well and installing new components to provide more efficient delivery of water. 5. Debt Service The 2009 budget includes debt service for the 1995 Revolving Loan with the Colorado Water Resources Power Development Authority, the CWRPDA 2007 wastewater construction loan for the Running Creek Lift Station and Force Main project, and annual debt service for the 2008 CWPRDA 2008 loan for Gold Creek Plant upgrade and expansion. V. Capital Improvement Fund The 2009 budget for the Capital Improvement Fund tracks the 1.5% sales and use tax approved by the voters in November 2007 for capital improvements. The only expenditures are a transfer out of the fund to the Water and Sewer Fund to pay for the annual debt service on the 2008 CWPRDA loan. A. Revenues 1. Taxes The 1.5% Sales and Use Tax is projected to generate $627,244 in 2009. Interest on collections is forecasted to include $7,800. B. Expenditures 1. Transfer Out The 2009 budget includes a transfer of $306,924 to the Water and Sewer Fund for the annual debt service on the Gold Creek Wastewater Plant upgrade and expansion and $350,000 for upgrade to the Lower Dawson Water Well.
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