City Council Meeting Agendas and Minutes

FY 2023 – 2024 Budget Presentation 1  Budget Objectives-General Fund ❖No significant reductions or changes regarding services the City offers ❖Fair and reasonable fees for acceptable levels of service ❖Not utilizing fund balance to cover significant recurring operational expenditures ❖To reduce the operating transfer from the Electric fund to the General Fund by 10% as required by Board Resolution, and consistent with LGC requirement ❖To more aggressively plan for and address capital needs in a fiscally 2 responsible manner  Budget Objectives - Utility Funds Goal: To adequately meet our financial needs. Meeting needs entails providing sufficient resources to operate, maintain and reinvest in our systems. ❖Electric ❖Water/Wastewater ❖Stormwater ❖Natural Gas 3  Budget Objectives-All funds ❖2.5% annual wage / across the board (ATB) increase for all employees ❖2.5% mid year bonus or additional ATB -Bonus vs ATB, tbd, based upon actual revenues, other economic factors ❖To avoid Health Insurance premium increases for employees while maintaining multiple plan options 4  Budget Highlights-General Fund ❖Held total recurring operating costs relatively flat (less than 2% net increase) ❖5% Salary increase budgeted (ATB vs bonus -2.5% ATB, 2.5% TBD if bonus or additional mid. year ATB)-ALL FUNDS ❖No net positions added to the General Fund (added Engineer, eliminated Communications) ❖Removed/eliminated contingencies-will amend budgets if necessary (stressing greater accuracy and precision in budgeting) 5  Budget Highlights-General Fund (cont.) ❖Adjusted cost allocations to ensure all enterprise funds are paying their fair share ❖Downtown MSD ❖MSD Tax +$75K contractually + $25K earned - 501 (c)(3) via contract ❖Proposing capital of $7.1M in the 23-24 budget ❖Paving and rolling stock (police, fire, streets, solid waste) ❖Proposed capital is dependent on the resources to repay future debt service 6  Budget Highlights-Enterprise Funds Generally, we plan on doing cost of service study updates on all major utilities in the next 6-9 months. Electric and Natural Gas Funds ❖No proposed rate increases at this time ❖No proposed fund balance appropriation to balance the operating budgets ❖Doubled the capital budgets for equipment and system infrastructure compared with 22-23 amounts 7  Budget Highlights-Enterprise Funds (Cont.) Water and Sewer ❖10% proposed ATB rate increases-less than inflation last 2 years (13.5%), first rate increase since FY16-17 ❖Competitive and lower than surrounding communities ❖Will most likely require additional increases after 23-24 cost of service study-habitually we have not generated enough revenues to adequately maintain and reinvest in the system 8  Budget Highlights-Enterprise Funds (Cont.) Stormwater ❖$1.50 monthly rate increase to $4 per month per household ❖No rate change since 2012 ❖Must increase revenues to institute a Stormwater program to comply with NC DEQ requirements-currently we are not in compliance with our permit. Recently received N.O.V. ❖Added two positions with additional revenues and added capital budget 9 10  General Fund Functions ❖ Non- Departmental ❖ Administration/Finance/Customer Service (Billing) ❖ Human Resources ❖ Elections ❖ Police ❖ Fire & EMS ❖ Public Works - Admin/Garage/Streets & Grounds/Solid Waste/Cemetery ❖ Planning/Development Services ❖ Moss Lake ❖ Inspections and Codes ❖ Lawrence Patrick Senior Center ❖ Mauney Memorial Library ❖ Information Technology (IT) ❖ Marketing, Tourism, Events ❖ Parks & Recreation 11  General Fund Revenue Sources ❖Property taxes ❖Local option sales taxes ❖Fees (Solid Waste, Permits) ❖Franchise/other taxes ❖Debt proceeds for capital ❖Fund balance appropriations if necessary ❖Transfers in 12  General Fund Overview Proposed 23-24 Adopted 22-23 Change Recurring expenditures $ 18,521,120 $ 18,211,675 $ 309,445 Non-recurring/non-capital expenditures 300,000 350,000 (50,000) a Capital outlay 7,077,456 1,545,000 5,532,456 b Total non-recurring expenditures: 7,377,456 1,895,000 5,482,456 Total expenditures after Manager review $ 25,898,576 $ 20,106,675 $ 5,791,901 Operating Revenues $ 18,808,126 $ 15,944,675 $ 2,863,451 c Other Sources: Debt proceeds 4,140,450 537,000 3,603,450 d Fund balance appropriations - - - Transfers from Electric-operations 1,350,000 1,200,000 150,000 e Transfers-non-recurring COVID-19 ARPA - 1,750,000 (1,750,000) Transfers reserve fund-capital 1,600,000 675,000 925,000 f Total other revenues: 7,090,450 4,162,000 2,928,450 Total revenues $ 25,898,576 $ 20,106,675 $ 5,791,901 a 23-24 amount assumes 2.5% payroll bonus, not a permanent ATB increase b Will be discussed in greater detail- Primarily paving ($1.6M) and large rolling stock ($4.14M) c Increased tax rate (.05), expiring incentives,sales tax growth, fee increases for solid waste and permits and fees 13 d 24-25 debt service for debt issued in 23-24 will be roughly $650,000-assuming a 7 year average term, 5% APR e Max 23-24 per Ordinance is $1,350,000-must reduce 10% per year minimum going forward-$1,215,000 for 24-25 f Transfer in 23-24 is for additional paving in excess of annual Powell Bill funds available  General Fund Analysis 2022-23 Original Budget ** $ 20,106,675 Changes: 2.5% ATB increase for 23-24 (Standard op. procedure) $ 300,000 2.5% Bonus/ possible ATB tbd. mid-year $ 300,000 Increase in capital outlay $ 5,557,456 Operations (all other than listed above) $ (365,555) 2023-24 Proposed Budget $ 25,898,576 % Change in General Fund Budget-Total 28.8% % Change in General Fund Budget-Recurring (operating) 1.7% % Change in General Fund Recurring revenues 18.0% ** Amended at 3/31/22 was $20.8M 14 15  General Fund Revenues 23-24 Proposed 22-23 Adopted Property Taxes $ 9,050,760 35% $ 7,150,000 36% Debt proceeds $ 4,140,450 16% $ 537,000 3% Local Option Sales Tax $ 4,083,865 16% $ 3,994,000 20% Transfers In-Capital $ 1,600,000 6% $ 675,000 3% Transfers In-ARPA $ - 0% $ 1,750,000 9% Transfers In-Electric $ 1,350,000 5% $ 1,200,000 6% All Other $ 2,069,001 8% $ 1,616,175 8% Solid waste fees $ 1,837,500 7% $ 1,500,000 7% Franchise Tax $ 1,060,000 4% $ 1,060,000 5% Moss Lake Fees $ 374,500 1% $ 374,500 2% Building and Zoning Fees $ 332,500 1% $ 250,000 1% $ 25,898,576 100% $ 20,106,675 100% 16  General Fund-Revenues Property Taxes ❖For a local government property taxes are considered a general revenue to be used for services that are not paid for by specific user fees-public safety, public works, streets, administration, etc. ❖Transparency-using the “proper” revenue stream ❖Local taxes are deductible for income tax purposes in certain situations ❖Property taxes are less “regressive” than fees 17  General Fund-Revenues Tax Rate ❖The proposed tax rate is necessary to provide resources to address capital needs (debt service) ❖Property tax rate proposed is .48, an increase of 11.6% ❖Inflation since the last Cleveland County tax revaluation (1/2021) - 13.5%, next revaluation in 1/2025 ❖ A property tax rate of .48 is roughly 11% below our peer group average of .54 ❖1-cent of property tax (gross) is roughly $200,000 ❖The impact of our proposed tax increase on $100,000 in valuation is $4.16 per month 18  Tax rate: How do we compare? Note: Cities of 10-20K with an electric fund Few if any of our peer group pays almost 100% of the cost of Library and Senior Services 19 “In comparison, KM offers much more”  Tax rate: How do we compare? Statewide Peer Group Unit Population FB% Tax Rate Waynesville 10,144 67.6 0.50 Winterville 10,450 131.0 0.48 Pineville 10,628 116.5 0.33 Tarboro 10,685 38.1 0.41 Lincolnton 11,134 33.9 0.56 Kings Mountain 11,172 58.8 0.43 Smithfield 11,378 94.0 0.57 Newton 13,173 76.1 0.54 Laurinburg 14,916 37.9 0.40 Albemarle 16,437 47.3 0.64 Morganton 17,431 120.4 0.57 Elizabeth City 18,651 NR 0.66 Lumberton 18,922 8.6 0.65 Lexington 19,660 43.0 0.65 20 Kinston 19,873 26.7 0.73 Average 14,310 64.3 0.54  Tax rate: How do we compare? Peer Group-Units within 100 miles Unit Population FB% Tax Rate Lincolnton 11,134 33.9 0.56 Newton 13,173 76.1 0.54 Morganton 17,431 120.4 0.57 Albemarle 16,437 47.3 0.64 Lexington 19,660 43.0 0.65 Average 15,567 64.1 0.59 21  General Fund-Revenues Building Permits ❖Various changes to get us closer to industry standards ❖Competitive with surrounding units ❖Not adding additional “new” fees, simply adjusting current calculations 22  Building Permits – New Rate Structure • Permit fee schedule has not been revised in 7 years. (2016) • The national average per sq. ft. for construction is evaluated and reported biannually by the International Code Council (ICC). As the national average increases, the permit fee will adjust to stay comparable with the current market without having to adjust the fee multiplier. • Recommend adopting the construction cost data, as published by ICC, into the fee schedule so that the fee automatically readjusts. The ICC data is published in February and August of each year; however, we would recommend just updating once a year in accordance with February’s published data. • Using the Building Valuation Data will make a fair playing field for all contractors in cases where a “low ball” construction cost is given on the permit application. In cases where the 23 permit applicant lists a construction cost greater than the BVD, the higher cost will be used in calculating the fee.  Building Permits – New Rate Structure CURRENT PERMIT FEE Permit Fee: $400,000 x .002 = $800 current multiplier construction cost given by permit applicant PROPOSED PERMIT FEE Permit Fee: 2,000 sq. ft. x $249.54 = $499,080 x .0033 = $1,647 proposed multiplier construction cost per Building Valuation Data construction cost per sq. ft. (Building Valuation Data national average 2023) PERMIT FEE MULTIPLIER = Department’s Budget x (%) Total Annual Construction Value 24  Building Permits – Comparative Data Example: • Sq. ft. 2,000 • A-2 (Restaurant) IIB (Construction type) • Project cost listed on permit application: $400,000 • Project cost per ICC Building Valuation Date: 2,000 sq. ft. x $249.54 = $499,080 KINGS MOUNTAIN $ 800 current fee $1,647 proposed fee CLEVELAND COUNTY $1,234 CABARRUS COUNTY (includes: Concord and Kannapolis) $1,544 SHELBY $1,645 GASTON COUNTY (includes: Gastonia, Cramerton, Mount Holly, Belmont, Bessemer City, Cherryville, Delview, Dallas, High Shoals, Lowell, McAdenville, Ranlo, Stanley and Spencer Mountain) $2,000 MECKLENBURG COUNTY (includes: Charlotte, Huntersville, Matthews, Pineville, Mint Hill, Cornelius) $2,480 25  Budget Highlights-General Fund-Revenues Solid Waste Fees ❖Solid waste rate change proposed for both residential (see below) and commercial (25% ATB) ❖Residential bill would go from $12.51 to $15.00-necessary to provide existing level of services and better cover cost of services provided ❖Proposed rate is extremely competitive vs private sector and public sector for those units not heavily supplementing cost with other revenue streams 26 ❖We are reinvesting in capital for the solid waste/leaf program Solid Waste Fees – Comparative Data Residential Rate (fixed monthly) COKM Old $ 12.51 COKM New Proposed $ 15.00 Shelby $ 13.23 Gastonia (includes leaf collect.) $ 13.08 Dallas $ 14.00 Cherryville $ 15.00 Republic - Cleve. County 6/22 $ 25.00 Average of comparables $ 16.06 27  Budget Highlights-General Fund-Revenues Transfers from the Electric Fund ❖Agreed via Resolution (Sept 2022) to reduce transfers from the Electric Fund to become more consistent with LGC recommended best practice ❖Total transfers cannot exceed $1,350,000 this year per our resolution ❖This is roughly $900,000 less than what we had transferred for operations and capital in past years ❖Will reduce transfers 10% per year going forward until we are 28 in compliance with best practice 29  General Fund Expenditures 23-24 Proposed 22-23 Adopted Police/Fire $ 10,484,000 40% $ 7,650,050 38% Public Works (Streets/Solid Waste/ Garage) $ 7,585,361 29% $ 4,721,300 23% Non-Departmental/Admin/HR/Elections $ 2,011,805 8% $ 2,508,560 12% Library/Senior Center $ 1,674,550 6% $ 1,620,625 8% Planning & Development Services $ 1,164,500 4% $ 884,500 4% Parks and Recreation $ 665,000 3% $ 604,000 3% Marketing, Tourism, Events $ 558,500 2% $ 612,900 3% Inspections & Codes $ 554,000 2% $ 503,200 3% IT $ 445,860 2% $ 396,540 2% Moss Lake $ 437,000 2% $ 414,400 2% Cemetary/Perpetual care $ 318,000 1% $ 190,600 1% $ 25,898,576 100% $ 20,106,675 100% 30 Total capital included above $ 7,077,456 27% 1,545,000 8%  2023-24 Capital Outlay-General Fund General Fund City Hall Renovations-Misc. $ 150,000 Covered Payment Kiosk-Billing $ 100,000 Agenda Management Software $ 15,000 Applicant Tracking Software-HR $ 10,000 Police-Software Upgrades $ 117,000 Police-Vehicles $ 207,000 Replace 1997 Fire Engine $ 750,000 Replace 2000 Aerial Ladder $ 1,500,000 Fire-Building Exhaust System/Venting $ 100,000 Public Works Building Renovations-misc. $ 150,000 Public Works-KM Historical Museum (Roof) $ 60,000 Street Paving $ 1,600,000 Streets-Leaf Machines (2) $ 416,456 Streets-Backhoe $ 150,000 Streets-Dump Truck $ 150,000 31 2023-24 Capital Outlay-General Fund (cont.) Streets-Tri Axle Dump Truck $ 150,000 Streets-400T Roller $ 60,000 Streets-Vehicle Shed/Pad Extension $ 80,000 Streets-Pickup $ 35,000 Solid Waste-Heil Front Loader Truck $ 427,000 Solid Waste-Rear Loader Truck Ces $ 230,000 Cemetery-Small Dump Truck $ 100,000 GIS Mapping/Workorder Project $ 250,000 Planning-Small Truck $ 30,000 Inspections and Codes-Small Truck $ 32,000 Senior Ctr-Small SUV $ 33,000 Senior Ctr-HVAC $ 10,000 Moss Lake-Patrol Boat $ 45,000 Park Enhancements (playground equip., outdoor court) $ 100,000 IT-Server Hardware $ 20,000 $ 7,077,456 32  2023-24 Capital Outlay-General Fund Total financed $ 4,140,450 Cash from capital reserve (additional paving) $ 1,600,000 Total paid in cash from operations $ 1,337,006 Total capital budget $ 7,077,456 33 34 35 Notes Applicable to All General Fund Departments: * Salaries - 5% across the board (ATB) increase budgeted (2.5% ATB adjustment, 2.5% bonus/potential mid-year additional ATB, tbd.) *LGERS expense increased slightly *Medical per employee was increased 5% given claims projection for next year. *No “new” net positions were budgeted in the General Fund, though some shifting of positions occurred and will be noted as we discuss budget for the various individual departments. 36  00-Non-Departmental Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 203,368 $ 189,800 $ 199,720 OPERATING $ 544,250 $ 602,500 $ 726,200 CAPITAL $ - $ - $ - CHGS TO OTHER FUNDS $ (135,000) $ (135,000) $ (300,000) TOTAL $ 612,618 $ 657,300 $ 625,920 Budget Highlights: ➢ Personnel-Medical charges (current employees) were up slightly for this budget year based upon the 23-24 claims projection prepared by our third party consultant. ➢ Change in operations is due primarily to increased retiree medical costs ($70k) as we simply have more retirees receiving the benefit in 23-24, and increased payments to the TDA for occupancy tax collected ($50k)-this is simply a pass through-we were ultra conservative in 22-23 projecting TDA revenues and the corresponding passthrough expenditure. 37 ➢ Charges to other funds were recomputed and the Enterprise Funds are receiving a larger share of allocable cost-this is evaluated and readjusted annually.  02-Administration/Finance/Customer Service (Billing) Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 1,206,388 $ 1,264,200 $ 1,261,000 OPERATING $ 775,600 $ 791,000 $ 878,393 CAPITAL $ 200,000 $ 200,000 $ 265,000 CHGS TO OTHER FUNDS $(1,337,225) $(1,230,465) $(1,459,758) TOTAL $ 844,763 $ 1,024,735 $ 944,635 Budget Highlights: ➢ Total personnel expenditures decreased slightly. There were rate increases from the prior year salary study. These were offset by the elimination of the Communications position which was vacant. There is one less position budgeted in this department for fye 23-24. ➢ Operations are up across the board given inflationary factors. Note also, all General Fund legal is now budgeted in this department and will be allocated to the other funds as applicable. ➢ Capital is set aside for agenda management software ($10,000), City Hall renovations ($150,000) and a covered payment Kiosk ($100,000). ➢ Charges to other funds were recomputed based upon current budget-this is evaluated and readjusted annually. 38  03-Human Resources Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 330,600 $ 358,200 $ 384,000 OPERATING $ 100,500 $ 582,500 $ 133,000 CAPITAL $ - $ - $ 10,000 CHGS TO OTHER FUNDS $ (107,775) $ (120,175) $ (131,750) TOTAL $ 323,325 $ 820,525 $ 395,250 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increase discussed previously. ➢ Operations-the 22-23 budget for implementing the third party salary/market study ($460k) was budgeted in a single line item in this department and later allocated to the various GF departments once the plan was officially adopted/finalized, thus the huge change. Once this skew is removed, the operating budget increased minimally. ➢ Capital is for applicant tracking software. 39 ➢ Charges to other funds were recomputed based upon current year’s budget.  04 – Elections Board Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ - $ - $ - OPERATING $ 5,000 $ 6,000 $ 7,000 CAPITAL $ - $ - $ - CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 5,000 $ 6,000 $ 7,000 Budget Highlights: ➢ No significant items of note. 40  05 - Garage Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 332,500 $ 337,500 $ 378,000 OPERATING $ 86,408 $ 101,000 $ 110,400 CAPITAL $ - $ - $ - CHGS TO OTHER DEPTS. $ (35,875) $ (38,000) $ (140,600) TOTAL $ 383,033 $ 400,500 $ 347,800 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increase discussed on previous slides. No change in positions from the prior year. ➢ Slight operating increases across the board for inflation. ➢ Charges increased for increased personnel costs and charge for fleet management allocated to the Enterprise funds. 41  06-Police Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 22-23 PERSONNEL $ 4,150,000 $ 4,264,500 $ 4,597,500 OPERATING $ 736,945 $ 810,250 $ 873,950 CAPITAL $ 80,000 $ 275,000 $ 324,000 CHGS TO OTHER DEPTS $ - $ - $ - TOTAL $ 4,966,945 $ 5,349,750 $ 5,795,450 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed previously. No change in number of positions from the prior year. ➢ Increase in operations represents inflationary increases. ➢ Capital budgeted for vehicles $207k (4 replacements) and computer software upgrades ($117k). 42  07-Fire Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 1,696,044 $ 1,829,300 $ 1,914,000 OPERATING $ 447,782 $ 471,000 $ 418,550 CAPITAL $ 50,000 $ - $ 2,350,000 CHGS TO OTHER DEPTS $ - $ - $ - TOTAL $ 2,193,826 $ 2,300,300 $ 4,682,550 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. No change in number of positions from the prior year. ➢ Operating budget decreased primarily for non capital supplies/equipment, debt payment dropping off. ➢ Capital-$2.25M is for an Engine and Ladder Unit, $100k misc./station improvements. 43  08-Public Works Administration Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 242,300 $ 260,600 $ 455,000 OPERATING $ 93,094 $ 109,000 $ 109,000 CAPITAL $ 25,000 $ 200,000 $ 210,000 CHGS TO OTHER FUNDS $ (19,000) $ (19,000) $ (158,895) TOTAL $ 341,394 $ 550,600 $ 615,105 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. Also, a City Engineer position was added to this department (nets out Communications position eliminated in City Admin. department.) ➢ Operations are flat. ➢ Capital ($150k) is for PW/Energy Services building renovations/various projects, $60K building repairs/roof KM Historical Museum. 44 ➢ Charges to other funds is to allocate a portion of the engineering salary and benefits as well as janitorial services to the Enterprise funds.  09-Streets/Grounds/Building Maint. Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 1,208,125 $ 1,234,000 $ 1,361,500 OPERATING $ 350,449 $ 367,000 $ 399,500 CAPITAL $ - $ 86,000 $ 2,641,456 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 1,558,574 $ 1,687,000 $ 4,402,456 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slide. No change in number of positions from the prior year. ➢ Operations up roughly 5% for inflation. ➢ Capital is for: paving ($1.6M, 7.8miles), Leaf machines/vacs (2) $414k, dump trucks (2) $300K, backhoe $150k, roller $60k. 45  General Fund Paving-Additional Details STREETS TO BE REPAVED Street Name From To Feet Cost Kiser Street E Gold St Cline Street 995 $36,969.78 Carolina State Lane Spruce Street Gold Street 281 $5,573.17 Catherine Street Stowe Acres Second Street 963 $25,840.50 May Street Grace Street Church Street 325 $7,583.33 Stowe Acres Fairview Street Second Street 1741 $46,716.83 Phenix Street Linwood Road Mill Street 1353 $34,095.60 Linwood Road Second Street Cleveland Ave. 1700 $66,300.00 Henry Street Katherine Ave. Dead End 2062 $62,547.33 N. Cansler Street Walker Street City Limits 3062 $183,720.00 Jackson Street Church Street Boyce Street 1905 $44,450.00 Northwoods Drive Groves Street Alpine Drive 3319 $144,376.50 Joanne Court Manor Drive Cul-De-Sac 259 $9,790.20 Moble Home Drive Pennington Place City Limits 190 $4,211.67 Groves Street Alpine Dead End 170 $5,950.00 Linwood Road NC 216 Second Street 1584 $90,288.00 Slater Street York Road Oriental Ave. 789 $19,883.80 Church Street Cleveland Ave. Lynn Street 3138 $167,360.00 Myers Street Baker Street Dead End 450 $12,075.00 Dilling Street Kings Street Phenix Street 2283 $62,592.25 Alpine Drive Northwoods Drive Northwoods Drive 1571 $68,338.50 Grace Street Linwood Road Dead End 2586 $65,167.20 Fourth Street Linwood Road Dead End 497 $8,117.67 Boyce Ave. Linwood Road Groves Street 1048 $28,121.33 Monroe Ave. Woodside Ave Henry Street 1143 $30,670.50 Gaston Street N.Battleground Ave. Dead End 3671 $166,418.67 46 Groves Street Cleveland Ave. Dead End 3075 $131,200.00 Peaceful Valley Second Street City Limits 528 $12,566.40 Plaza Drive Garrison Street Parking Area 266 $7,137.58 total $1,548,061.81 General Fund Paving-Additional Details 47 Paving-North 48 Paving-South 49 Paving-Gaston County 50  10-Solid Waste Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 631,150 $ 656,300 $ 683,000 OPERATING $ 850,508 $ 889,900 $ 880,000 CAPITAL $ - $ 537,000 $ 657,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 1,481,658 $ 2,083,200 $ 2,220,000 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed previously. No change in number of positions from the prior year. ➢ Operations are basically flat. ➢ Capital is for one automated garbage truck ($427k) and one rear load garbage truck 51 ($230k).  11-Cemetery Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 137,900 $ 146,600 $ 174,500 OPERATING $ 28,290 $ 39,000 $ 38,500 CAPITAL $ - $ - $ 100,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 166,190 $ 185,600 $ 313,000 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. No change in number of positions from the prior year. ➢ Operations are flat. ➢ Capital is for a small dump truck ($100k). 52  12-Planning/Development Services Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 22-23 PERSONNEL $ 372,288 $ 502,500 $ 575,000 OPERATING $ 305,627 $ 357,000 $ 412,500 CAPITAL $ - $ 25,000 $ 280,000 CHGS TO OTHER FUNDS $ - $ - $ (109,000) TOTAL $ 677,915 $ 884,500 $ 1,158,500 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed previously. No change in number of positions from the prior year. ➢ Operating costs-Note cost for MSD is included here (Occupancy tax plus $100k grant/match). ➢ Capital is for a software project (mapping/work orders) $250K, and a vehicle $30k. ➢ Cost redistribution (charges to other funds) are for a portion of the Development 53 Services Director’s salary and benefits, as well as an allocation for the software project.  13-Inspections and Codes Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 325,381 $ 336,200 $ 362,000 OPERATING $ 148,362 $ 167,000 $ 160,000 CAPITAL $ - $ - $ 32,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 473,743 $ 503,200 $ 554,000 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. No change in number of positions from the prior year. ➢ Operating request is up due to general inflationary increases. ➢ Capital request is for a replacement vehicle. 54  14-Senior Center Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 435,640 $ 456,800 $ 479,500 OPERATING $ 424,739 $ 288,025 $ 308,000 CAPITAL $ - $ 85,000 $ 43,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 860,379 $ 829,825 $ 830,500 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. No change in number of positions from the prior year. ➢ Operations are relatively flat. ➢ Capital is for HVAC repairs ($10k) and a replacement vehicle ($33k, small SUV). 55  15-Library Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 511,050 $ 461,800 $ 507,000 OPERATING $ 302,399 $ 329,000 $ 330,050 CAPITAL $ 130,000 $ - $ - CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 943,449 $ 790,800 $ 837,050 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed previously. No change in number of positions from the prior year. ➢ Operating expenditures are relatively flat. 56  What do these items have in common? ❖ Human Resources ❖ Finance Department ❖ Customer Service Department-Salaries/Benefits ❖ City Manager’s Office ❖ City Garage ❖ Public Works Administration-Salaries/Benefits/Operating ❖ Cemetery ❖ Development Services-Salaries/Benefits, net ❖ Codes and Inspections ❖ Library-Salaries/Benefits ❖ Senior Center-Salaries/Benefits ❖ Moss Lake ❖ Recreation-YMCA contract ❖ Information Technologies (IT) 57  Answer……. Their 2023-24 proposed budgets are less than the 2023-24 proposed budget for Marketing, Tourism, and Events 58  16-Marketing, Tourism, Events Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 160,800 $ 241,400 $ 274,500 OPERATING $ 293,753 $ 337,000 $ 284,000 CAPITAL $ - $ 34,500 $ - CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 454,553 $ 612,900 $ 558,500 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. No change in number of positions from the prior year. ➢ “Event specific” line item budget adjusted back to 21-22 levels-focus on “quality over quantity”. ➢ Expand focus from events to include marketing and tourism promotion. 59  17-Moss Lake Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 231,950 $ 227,900 $ 260,000 OPERATING $ 132,543 $ 159,000 $ 132,000 CAPITAL $ 57,500 $ 27,500 $ 45,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 421,993 $ 414,400 $ 437,000 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. No change in number of positions from the prior year. ➢ Operating contingency removed from the budget-will amend budget if needs arise. ➢ Capital is for a boat (Police Boat-Sea Arc 2072). 60  18-Transfer to Perpetual Care Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ - $ - $ - OPERATING $ 5,000 $ 5,000 $ 5,000 CAPITAL $ - $ - $ - CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 5,000 $ 5,000 $ 5,000 Budget Highlights: ➢ A portion of Cemetery Plot Sales are transferred to the Perpetual Care Fund annually for cemetery upkeep. 61  19 – Parks and Recreation Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ - $ - $ - OPERATING $ 538,138 $ 554,000 $ 565,000 CAPITAL $ - $ 50,000 $ 100,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 538,138 $ 604,000 $ 665,000 Budget Highlights: ➢ YMCA contact ($469k) and maintenance is budgeted here as well as a park maintenance line item ($98K-previously in PW’s). ➢ Any future park improvements, expansions, or other capital will budgeted here. ➢ Capital is for Park expansions/improvements-playground structures, outdoor court 62  20-Information Technology (IT) Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 253,450 $ 280,900 $ 310,000 OPERATING $ 374,140 $ 380,000 $ 413,100 CAPITAL $ - $ - $ 20,000 CHGS TO OTHER FUNDS $ (250,000) $ (264,360) $ (297,240) TOTAL $ 377,590 $ 396,540 $ 445,860 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. No change in number of positions from the prior year. ➢ Operations is up for inflationary increases, increased user licenses. ➢ Capital is for server hardware. ➢ Admin. allocation percentage change based upon incidents and increased operating 63 costs, thus the increase in charges to the other funds.  Additional items of note…. ❖Our Electric System is in need of capacity expansion so its capital needs over the next ten years will be significantly more than they were the past ten years. ❖This means any additional operating needs of the General Fund should be financed with General Fund revenues, not additional transfers from the Electric Fund. ❖We agreed to reduce transfers from the Electric Fund in order to obtain debt financing-Our Resolution stated we will reduce the transfer 10% a year until we are in compliance with best practice. *Best Practice -5% of gross annual revenues of the electric system or 3% of 64 gross capital assets, whichever is greater  General Government Future Needs “50,000 foot view” ❖Public Works/City Hall/HR building renovations/expansions ❖Potential garage expansion/replacement ❖Future satellite Police/Fire locations due to annexation ❖Additional staffing needs due to growth/annexation-numerous departments ❖Street infrastructure/paving ❖Solid waste-capital required for service provision/expansion 65 66  Powell Bill Fund Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ - $ - $ - OPERATING $ 310,000 $ 418,000 $ 350,000 CAPITAL $ - $ - $ - TOTAL $ 310,000 $ 418,000 $ 350,000 Budget Highlights: ➢ Overall, total budget was up in 22-23 due to acceleration of paving. We budgeted $100k more due to availability of Powell Bill restricted fund balance. ➢ The current budget returns to the concept of a balanced budget based upon annual Powell Bill revenues (no appropriation of Fund Balance.) The Powell Bill Paving/resurfacing budget is $200k. 67 ➢ Note the additional $1.6M paving budgeted in the General Fund (financed by capital reserve funds). 68  29-Emergency 911 Fund Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ - $ - $ - OPERATING $ 148,000 $ 80,000 $ 90,000 CAPITAL $ - $ 25,000 $ 25,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 148,000 $ 105,000 $ 115,000 Budget Highlights: ➢ Current E911 allocation for the City is $91,500. ➢ These funds are accounted for in a separate fund. The fund is self-sufficient and dollars can only be used for certain approved operating and capital needs related to the 911 system. Funds cannot be used to pay personnel. 69 70  Economic Incentives SRF Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ - $ - $ - OPERATING $ 1,200,000 $ 1,050,000 $ 455,000 CAPITAL $ - $ - $ - CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 1,200,000 $ 1,050,000 $ 455,000 Budget Highlights: ➢ This fund was created mid-year 19-20 to account for economic/industrial incentive agreements. ➢ These agreements were previously accounted for in the General Fund. ➢ Primary revenue is the portion of property taxes subject to “incentive” refunds/ payments. 71 ➢ The fund is self-balancing, i.e. property tax revenues budgeted equal incentive payments due assuming payments are earned. 72 73  Water/Sewer Revenues Orig. Bud Orig. Bud Requested Revenue Category 21-22 22-23 23-24 WATER SALES $ 4,130,000 $ 4,450,000 $ 4,895,000 SEWER SALES $ 2,600,000 $ 2,300,000 $ 2,530,000 SYSTEM DEVELOPMENT FEES $ - $ - $ 500,000 ALL OTHER OPERATING $ 332,000 $ 372,000 $ 379,500 PROCEEDS FROM DEBT $ 480,000 $ - $ - APPROPRIATED FUND BALANCE $ 676,436 $ 1,642,100 $ 2,264,531 TOTAL $ 8,218,436 $ 8,764,100 $10,569,031 ❖ 10% proposed ATB rate increase for Water and Sewer sales-less than inflation last 2 years (13.5%). ❖ First rate increase since FY16-17, which was required by the LGC for debt approval. ❖ After the increase the City is competitive, and in may cases lower than surrounding communities ❖ Will most likely require additional increases after 23-24 cost of service study- 74 habitually we have not generated enough revenues to adequately maintain and re-invest in the system ❖ $30 residential bill impacted $3 per month  Water/Sewer – Comparative Data RESIDENTIAL WATER BILL ASSUMING 5,000 GALLONS PER DAY KM OLD RATE KM NEW RATE SHELBY TWO RIVERS CHERRYVILLE STATE MEDIAN $21.37 $23.51 $27.60 $26.80 $43.00 $39.10 RESIDENTIAL SEWER BILL ASSUMING 5,000 GALLONS PER DAY KM OLD RATE KM NEW RATE SHELBY TWO RIVERS CHERRYVILLE STATE MEDIAN $24.61 $26.75 $44.30 $38.60 $43.00 $48.00 75  Water/Sewer Department The divisions listed below are associated with the Water/Sewer Fund. These divisions are funded entirely by Water/Sewer sales and other related revenues. ❖ Water Resources ❖ Water Plant ❖ System Maintenance ❖ Wastewater Treatment Plant ❖ Pump Maintenance 76 77 78  2023-24 Capital Outlay-Water/Sewer Moss Lake Spillway Repairs $ 100,000 Spillway Joint Replacement $ 50,000 Backhoe $ 85,000 Slip-line Sewer Rehab. $ 50,000 Camera Trailer $ 20,000 Replace Membranes On Diffusers $ 60,000 Generator Relocation $ 45,000 Beason Creek-Rehab. and Expansion EDA Grant Project- additional City contribution $ 1,500,000 ** Beason Creek-Rehab. and Expansion EDA Grant Project- required current City Match $ 330,000 Williams Road Sewer Relocation $ 90,000 $ 2,330,000 **Working to acquire additional grant funding in lieu of utilizing City funds 79  31-Water Resources Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 280,825 $ 288,900 $ 329,000 OPERATING $ 2,826,340 $ 2,980,000 $ 3,095,231 CAPITAL $ 275,000 $ 375,000 $ 150,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 3,382,165 $ 3,643,900 $ 3,574,231 Budget Highlights: ➢Personnel change due to wage study impact and ATB increases discussed previously. ➢Operating-Debt payments related to all the DEQ loans are budgeted in this department (total approximately $1,530,000 annually). Note charges for administrative services increased significantly based upon updated study/General Fund budget. ➢Capital- $150k-Moss Lake Spillway repairs and joint grout replacement. 80  32-Water Plant Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 313,600 $ 321,200 $ 448,500 OPERATING $ 805,870 $ 876,000 $ 1,050,800 CAPITAL $ 295,000 $ 270,000 $ - CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 1,414,470 $ 1,467,200 $ 1,499,300 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. Transferred a position from another water/sewer department, so there is one additional position in this department in 23-24 versus 22-23. Note Water/Sewer Fund in total has the same number of budgeted positions in 23-24 as they had in 22-23. ➢ Change in operations is due to an increase in non-capital repairs and chemicals for water treatment. 81  33-System Maintenance Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 440,125 $ 447,100 $ 529,500 OPERATING $ 395,050 $ 516,000 $ 524,500 CAPITAL $ 130,000 $ 100,000 $ 135,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 965,175 $ 1,063,100 $ 1,189,000 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. Transferred a position from another water/sewer department, so there is one additional position in this department in 23-24 versus 22-23. Note Water/Sewer in total has the same number of budgeted positions in 23-24 as they had in 22-23. ➢ Operations are flat. 82 ➢ Capital outlay is for sewer slip lining ($50k) and a backhoe ($85k).  34-Wastewater Treatment Plant Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 419,900 $ 433,800 $ 477,000 OPERATING $ 711,658 $ 817,000 $ 884,500 CAPITAL $ 70,000 $ 50,000 $ 125,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 1,201,558 $ 1,300,800 $ 1,486,500 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. No change in number of positions from the prior year. ➢ Operations increased due to significant price increases for chemicals and overall inflationary increases in other line items. 83 ➢ Capital is for a camera trailer ($20k), diffuser membrane replacement ($60K) and relocation of a generator ($45k).  36-Pump System Maintenance Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 408,938 $ 432,100 $ 374,500 OPERATING $ 366,130 $ 527,000 $ 525,500 CAPITAL $ 520,000 $ 330,000 $ 1,920,000 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 1,295,068 $ 1,289,100 $ 2,820,000 Budget Highlights: ➢ Personnel change due to wage study impact and ATB increases discussed on previous slides. Note transferred two positions to other departments in the 23-24 budget. ➢ Operating budget is flat. ➢ Capital is for Beason Creek Grant match/project completion ($1.830M) and Williams Road Sewer Relocation ($85k). 84 85  62-Stormwater Fund Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 303,500 $ 353,000 $ 473,785 OPERATING $ 134,840 $ 87,000 $ 136,000 CAPITAL $ 21,660 $ 20,000 $ 126,215 CHGS TO OTHER FUNDS $ - $ - $ - TOTAL $ 460,000 $ 460,000 $ 736,000 Budget Highlights: ➢ This fund is self-balancing. ➢ No fund balance appropriated to balance the budget. ➢ Proposing a rate increase of $1.50 to our rate structure (Residential goes from $2.50 to $4.00 monthly, commercial $2.50 to $4.00 X square footage, monthly). There have been no fee adjustments since 2012. ➢ Added two additional positions. 86 ➢ All increased operating and capital costs are necessary to bring our system into compliance with our DEQ permit. N.O.V.  Stormwater– Comparative Data Residential Rate (fixed monthly) COKM Old $ 2.50 COKM New Proposed $ 4.00 Shelby $ 2.50 Gastonia $ 5.00 Dallas $ 4.52 Cherryville NA Belmont $ 5.00 Average of comparables $ 4.26 87 88 89  Electric Revenues Orig. Bud Orig. Bud Requested Revenue Category 21-22 22-23 23-24 ELECTRIC SALES $ 12,526,000 $14,626,000 $18,182,700 ALL OTHER OPERATING $ 477,438 $ 228,397 $ 220,403 PROCEEDS FROM DEBT $ 312,000 $ 395,000 $ 650,000 TRANSFERS FROM OTHER FUNDS $ 115,000 $ - $ - APPROPRIATED FUND BALANCE $ 3,415,800 $ 1,088,641 $ 395,000 TOTAL $ 16,846,238 $16,338,038 $19,448,103 ❖No rate increases proposed. ❖Budget prepared assuming rates in effect at 3-31-23. ❖A cost of service study is underway and will be presented once completed 90 and will require Council adoption. 91  Electric Division-Capital Outlay Line Truck 614 $ 395,000 Financed in 22-23 Bucket Truck 615 $ 375,000 Financed Line Expansion $ 335,000 Service Bucket Tk 619 $ 275,000 Financed Exit 5 Commercial Developments $ 200,000 Scada Upgrade $ 150,000 Subdivision Expansions $ 125,750 Chesterfield Upgrade Project $ 100,000 I-85/Canterbury Loop $ 66,000 Ami Disconnect Meter Purchases $ 60,000 Led Lighting Upgrades $ 40,000 4 X 4 Pickup Replacement (603) $ 31,000 Carolina Garden Apartments Upgrade Project $ 15,000 Service Saver $ 10,000 Outage Map Integration $ 10,000 Led Lighting Of I-85 Area $ 10,000 $ 2,197,750 92  Electric Division Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 1,375,369 $ 1,434,605 $ 1,879,500 OPERATING $ 9,144,002 $12,129,520 $ 13,962,742 CAPITAL $ 1,096,500 $ 1,015,500 $ 2,197,750 TRANSFERS OUT $ 5,150,000 $ 1,700,000 $ 1,350,000 METER SERVICES $ 80,367 $ 58,413 $ 58,111 TOTAL $ 16,846,238 $16,338,038 $ 19,448,103 -Personnel change is due to wage study impact and ATB increases. Electric is up net ½ position as we are no longer charging “partial” positions to the Electric/Gas funds. Note the impact to the Electric Fund due to market adjustments was significant in comparison to other City departments. -Operating budget increased due to $1.1M increase in purchased power cost, significant increase in admin costs, $300k, and a $500k net increase in debt service, primarily for new debt service for the Delivery 5 project based upon borrowings in 2022. -Capital was increased significantly-see breakout on prior slide. 93 -Transfers were adjusted to the 23-24 level agreed to by the City. Moving forward, we must reduce them by 10% a year until we are in compliance with best practice, as previously discussed. 94 95  Natural Gas Revenues Orig. Bud Orig. Bud Requested Revenue Category 21-22 22-23 23-24 NATURAL GAS SALES $ 3,923,100 $ 5,623,100 $ 6,781,400 METERING CHARGE -CPP $ 284,196 $ 300,000 $ 338,000 ALL OTHER OPERATING $ 139,500 $ 18,500 $ 27,500 PROCEEDS FROM DEBT $ - $ - $ - TRANSFERS FROM OTHER FUNDS $ 575,000 $ - $ - APPROPRIATED FUND BALANCE $ 629,216 $ 716,420 $ 356,210 TOTAL $ 5,551,012 $ 6,658,020 $ 7,503,110 ❖No rate increases proposed. ❖Budget prepared assuming variable rates in effect at 3-31-23. ❖A cost of service study most likely will be completed in 23-24 and will 96 require Council adoption. 97 Natural Gas Division-Capital Outlay Deal St. Reg Station Replacement $ 120,000 Steel Main Improvement $ 100,000 Remove E. Gold Reg Station $ 100,000 Capital Projects Expansion $ 60,000 Pickup Replacement $ 50,000 Meter Change Out Program $ 50,000 Scada Installation $ 45,000 Pickup-Replacement $ 40,000 Regulator Station Improvement $ 40,000 Forklift Purchase $ 40,000 Replacement Of Pipe Trailers $ 30,000 Gis Mapping $ 25,000 Ami Module 10Yr Plus Replacements $ 20,000 Hydraulic Valve Grease Guns $ 8,000 $ 728,000 98  Natural Gas Division Orig. Bud Orig. Bud Requested Expense Category 21-22 22-23 23-24 PERSONNEL $ 1,240,848 $ 1,213,545 $ 1,277,300 OPERATING $ 3,917,164 $ 5,065,475 $ 5,497,810 CAPITAL $ 278,000 $ 379,000 $ 728,000 TRANSFERS OUT $ 115,000 $ - $ - TOTAL $ 5,551,012 $ 6,658,020 $ 7,503,110 -Personnel change due to wage study impact and ATB increases. Gas lost ½ position as we are no longer charging “partial” positions to the Electric/Gas funds. We added (2) utility locators in 23-24. Total 23-24 positions are 13, total 22-23 positions were 11.5. -Operating changed due primarily to increases in administrative costs ($200k) and increased debt costs related to borrowings for the I85 loop project ($150K). The remainder of the change was increases overall in operating supplies and materials for system repairs and maintenance. 99 -Capital-see breakout on previous slide 100 101  Personnel-Full and PT Total 23-24 Total 22-23 23-24 Changes General Fund 00 Non-Departmental 8 8 02 Administration, Finance and Cust. Svc (Billing) 13 14 Removed Communications 03 Human Resources 4 4 05 Garage 5 5 06 Police Department 61 61 07 Fire Department 29 29 08 Public Works Administration 5 4 Added City Engineer 09 Streets and Grounds 23 23 10 Solid Waste 11 11 11 Cemetery 2 2 12 Planning/Development Services 6 6 13 Inspections and Codes 4 4 14 Senior Center 10 10 15 Library 9 8 16 Marketing, Tourism, Events 2 3 17 Moss Lake 4 4 20 Information Technology 3 3 Total General Fund 199 199 Water/Sewer 27.0 27.0 Stormwater 7.0 5.0 Added 2 Laborers Energy Services: Electric 17.0 16.5 Meter readers charged here Gas 13.0 11.5 Added 2 new techs-locators 102 Total Energy Services 30 28 Grand Total 263 259 103 104 105 106  Healthcare Benefits Summary ❖No proposed medical plan changes (Gold, Silver, Bronze) ❖No increase in employee cost for medical ❖Will present additional detailed information at our open enrollment meetings 107 108 109 110 111 112 Totals- Annually Budgeted Funds 2023-24 2022-23 Increase Proposed Adopted (Decrease) % Notes General Fund $ 25,898,576 $ 20,106,675 $ 5,791,901 29% See slides for additional analysis-"Capital driven" Electric $ 19,448,103 $ 16,338,038 3,110,065 19% Increased personnel costs given market adjustment, Purchased power cost increase, increased capital Water & Sewer $ 10,569,031 $ 8,764,100 1,804,931 21% See slides for additional analysis-"Capital driven" Gas $ 7,503,110 $ 6,658,020 845,090 13% See slides for additional analysis-"Capital driven" Stormwater $ 736,000 $ 460,000 276,000 60% Rate increase over 2012 used for additional personnel and increased capital Incentives $ 455,000 $ 1,050,000 (595,000) -57% Expiring incentives Powell Bill $ 350,000 $ 418,000 (68,000) -16% No utilization of fund balance in 23-24 -note large paving budgeted in the General Fund- $1.8M City-wide total for paving E911 $ 115,000 $ 105,000 10,000 10% Immaterial dollar change 113 Perpetual Care $ 5,000 $ 5,000 - 0% Flat Total $ 65,079,820 $ 53,904,833 $ 11,174,987 21%