City of Edmond, Budget and Financial Plan FY17-18

C I T Y O F E D M O N D , O K L A H OM A BUDGE T AND F I NANC I AL PLAN FISCAL YEAR 2 0 1 7 – 1 8

Introduction Tab

Revenue has again been included in the 17-18 budget for the Utility Bill Check-Off Program. However, we may be asking you to consider moving away from this program in future years. This program generates less than $3,000 per year, and our people have spent much more than that in staff time trying to solve the computer/automation issue associated with special donation type programs. This is our example of why simple-sounding automated donation programs are in reality something to be avoided.

The third component of this fund is the City's contribution of up to 1% to public art for municipal construction projects over $250,000, as authorized by ordinance.

Hospital Sale Trust Fund The proceeds from the 1982 City sale of the hospital facility now known as OU Medical Center Edmond is accounted for in this fund, and a portion of the accrued interest is also annually included (pages 6162). A public vote is required to spend any portion of the principal, and in 2011 voters approved a structure for the Trust to LOAN the principal amount as an investment to provide the interim financing for City capital projects such as the Public Safety Center project.

The loan principal amount of $6.881M used for the Public Safety Center was repaid to this fund on time, in March of this year. The interest earnings from this fund have been transferred to the Real Property Fund for land acquisitions. With a climate of low investment earnings, this fund now has a minimal balance of around $100,000.

Real Property Fund This fund contains the balance of the interest from the Hospital Trust Fund and can be used for the purchase of property for City use as needed (pages 63-64). In addition to the $1M transferred into this fund during the current budget year, there were also two "in and out" transfers from the 2000 Capital Improvements Tax and the surplus funds from the Public Safety Center project. These three amounts were then combined to purchase a 23+ acres of property near the northeast corner of 15th & Kelly for the new City/School Tennis Center complex for $2.SM. CDBG Fund This fund provides for the operation of the City's Community Development Block Grant program (pages 53-54). Edmond is a designated "entitlement" community (over 50,000 population), and the only source of funding is the annual federal CDBG allocation. Only the funds actually received are spent. The federal amount is never known until after the budget is prepared, and as a result this budget is identified on only a year-to-year-basis.

Convention and Visitors Bureau Fund The only revenue available for this fund is the 4% hotel/motel (bed) tax (pages 65-66). However, in anticipation of the move in the next several months to the new office at the Hotel/Conference Center at 1-35 & Covell, you have authorized an allocation of $44,000 from Council Contingency budget. xiv

The Plan projects negative balances in the last three years for this fund. A new full-time position has also been authorized to start at the beginning of next year's budget, to take full advantage of the marketing opportunities created by the HCC. However, the anticipation is that the CVB should begin generating additional revenue in the next couple of years as well because of the new activity beginning to be generated by the Hotel/Conference Center.

At some point the expectation is that the new bed tax revenue will help correct the fiscal imbalance.

Employee Pension Fund This self-funded program includes all City employees except uniformed police and fire personnel and the City Manager, and the projected contributions are identified in the individual fund budgets.

The City's annual contribution rate is determined by an actuary hired by the Employee Pension Board.

This amount for next year's budget is recommended at 9.45%, an increase from the 8.99% in this year's budget, and I support the recommendation. Since we do not know how future economic conditions might affect the pension program, this rate will be used for all five years of the Plan.

The employee contribution rate will again remain at 5.25%. In an effort to address the growing disparity between the employee contribution rate and the City's contribution rate, a provision was added a few years ago that provides for a review of the employee rate if the City's rate reaches 10%.

HUMAN RESOURCES Human Resources Director Lisa Goodpasture prepared the very thorough report included in the personnel section at the end of the budget document, which includes the personnel budget.

I am recommending a conditional 1% COLA for all non-union employees in next year's budget. The "condition" would involve an improvement in sales tax collections that would identify at least the start of some form of an upward trend. Such a determination would be made by me, after consulting with our staff. (A reminder that our non-union employees also did not receive a percentage increase in the current budget.)

Included in Lisa's report is a recommendation to add a net three additional full-time employees as identified. This recommendation compares to 18 new positions in this year's budget, with the majority of these going to the Water and Sewer utilities. These additions would increase the number of full-time people to 750 employees.

Employee Group Insurance Fund The City's self-funded health insurance program is the most significant benefit for full-time and some part-time employees (pages 117-118). The City has historically provided the full cost of individual employee coverage except that those employees who choose the enhanced individual plan pay $50 month. Since the plan year for health insurance coincides with the calendar year it includes parts of two budget years.

In January our program converted from a two-tier plan to a four-tier plan for the optional dependent coverage, as recommended by our Employee Health Insurance Committee and becoming more common

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Budget Summary Tab

General Fund Tab

Special Revenue Funds Tab

Capital Project Funds Tab

EPWA Utility Funds Tab

Other Enterprise Funds Tab

Internal Service Funds Tab

Personnel Tab

Capital Outlay Tab