City Council

MURFREESBORO CITY COUNCIL Workshop Meeting Agenda Airport Business – 11:30 AM March 8, 2023 Action Items 1. Resolution 23-R-05 MED Pension Plan (Administration) 2. FY23 Budget Amendment (Administration) First Reading: Ordinance 23-O-11 3. Retail Package Liquor Store Certificate of Compliance-Bubba's Wine & Liquor (Finance) Workshop Items 4. TDOT Interstate 24 SMART Corridor Project Update (Transportation) 5. CIP Allocation Review (Finance) 6. January 2023 Dashboard (Administration) Board & Commission Appointments Licensing Payment of Statements Other Business Adjourn  COUNCIL COMMUNICATION Meeting Date: 03/08/2023 Item Title: MED Pension Plan Resolution 23-R-05 Department: Administration Presented by: Craig Tindall, City Manager Requested Council Action: Ordinance ☐ Resolution ☐ Motion ☒ Direction ☐ Information ☐ Summary Resolution 23-R-05 accepting MED Pension Committee recommendation regarding annuity purchase and authorize City Manager to accept lowest and best bid. Staff Recommendation Approve the Pension Plan Resolution authorizing the City Manager to accept the lowest bid and approve the list of insurance carriers based on the MED Pension Committee recommendation. MED Pension Committee approved similar resolution on March 6, 2023 meeting. Background Information Upon the sale of the Electric Department operations to Middle Tennessee Electric Membership Corporation (MTE), the City retained the MED Pension Plan. The City intended to terminate the Plan by transferring the liability to an annuity. MTE agreed to pay for half the costs of the transfer up to $3.5m provided the transfer occurred by June 30, 2023. The cost of the pension liability transfer is dependent on several factors: the date of the transfer, the value of the plan assets, the total Plan liability after lump sum distributions, and the prevailing interest rate available to the annuity company. At the August 18th City Council meeting, Council approved contracts with BCG Pension Risk Consultants and Cowden & Associates to provide annuity placement, lump sum distribution, and plan termination services. To facilitate the transfer, allow for an offer an option lump sum distribution, and complete the plan termination through an annuity purchase, the MED Pension Plan document was amended at the October 12, 2022 City Council meeting. At the March 6, 2023 MED Pension Committee meeting, the Committee received the Due Diligence report from BCG Pension Risk Consultants regarding the insurance carriers that expressed interest in bidding on the MED Pension annuities. This report provided information and assurances to the Committee that each of the carriers qualifies to meet the standards to provide the safest available annuity. The annuity purchase decision should be made when final pricing is received on March 14, 2023. Council Priorities Served Responsible budgeting Transfer of the MED Pension Plan removes potential future financial liability from the City without impacting the benefits of Plan participants. Fiscal Impact Varies depending on market conditions. Current estimates show the transfer costs just under $7m, which would have a cost to the City of $3.5 million after contribution by MTE. It is anticipated that these costs will be funded from the sale proceeds to be distributed to the General Fund. Attachments 1. Resolution 23-R-05 2. MED Pension Committee Resolution and Exhibit A 2 DocuSign Envelope ID: FCBA2976-7F84-4A86-A96C-5D63724BB36B RESOLUTION 23-R-05 authorizing City Manager to award annuity contract for MED Pension Plan to the insurance carrier that both satisfies the safest available annuity standard and submits the lowest- priced final bid. WHEREAS, the City of Murfreesboro (the “City”) has previously decided to terminate the Murfreesboro Electric Department Pension Plan (the “Plan”), effective March 31, 2023; and WHEREAS, in connection with such termination, the City must enter into annuity contracts for the provision of retirement benefits to Plan Participants; and WHEREAS, the City is engaged in a bid solicitation process to select a commercial insurance company for purposes of providing retirement benefits to Plan Participants following the termination of the Plan; and WHEREAS, in connection with such bid solicitation process, the City retained BCG Pension Risk Consultants (“BCG”), a qualified independent expert, to assist the City in selecting an annuity provider; and WHEREAS, six insurance companies—American National, One America, CMFG, Midland, Principal and United of Omaha—have made preliminary bids and have indicated their intent to submit final bids (the “Prospective Carriers”); WHEREAS, at its meeting on March 6, 2023, the Murfreesboro Electric Department Pension Committee (the “Committee”) heard due diligence summaries from BCG with respect to the Prospective Carriers and information regarding current developments in the pension plan annuity market and the insurance industry generally; and WHEREAS, in connection with its evaluation of the Prospective Carriers, the Committee took into account as a non-binding benchmark the “safest available annuity” standard applicable to private sector plans under U.S. Department of Labor Interpretive Bulletin 95-1; and WHEREAS, with respect to the Prospective Carriers and per the information and recommendations provided by BCG, the Committee considered: (1) the quality and diversification of the investment portfolios of the Prospective Carriers; (2) the level of each Prospective Carrier’s capital and surplus; (3) the lines of business of each Prospective Carrier and other indications of each Prospective Carrier’s exposure to liability; and (4) the availability of additional protection through state guaranty associations and the extent of their guarantees; and DocuSign Envelope ID: FCBA2976-7F84-4A86-A96C-5D63724BB36B WHEREAS, the Committee has reported its determination to the City Council that American National, One America, CMFG, Midland, Principal and United of Omaha (the “Recommended Carriers”) satisfy the “safest available annuity” standard for purposes of payment of retirement benefits to Plan Participants following termination of the Plan (see March 6, 2023 Resolution of the Murfreesboro Electric Department Pension Committee attached hereto as Exhibit A); and WHEREAS, the City Council has considered the Committee’s determination and agrees with the Committee’s recommendation that the City should award the necessary annuity contract to the Recommended Carrier that submits the lowest- priced contract to the City provided such contract also satisfies the “safest available annuity standard”; and WHEREAS, the six Recommended Carriers must submit their final bids for the annuity contract no later than 11:00 a.m. Central Time on March 14, 2023; and WHEREAS, because such bids will also expire on March 14, 2023, the City Council finds it reasonable and prudent to delegate to the City Manager the City Council’s authority to select from among the Recommended Carriers submitting final bids on March 14, 2023. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURFREESBORO, TENNESSEE, AS FOLLOWS: SECTION 1. The City Council directs and authorizes the City Manager to award the annuity contract to the Recommended Carrier offering the lowest-priced contract to the City that also satisfies the “safest available annuity” standard and to execute such carrier’s acceptance agreement on behalf of the City, provided, the price of such contract does not exceed Twenty-One Million Three Hundred Fifty Thousand Seventy-Four and 00/100ths Dollars ($21,350,074.00). In the event all of the final bids submitted by the Recommended Carriers exceed Twenty-One Million Three Hundred Fifty Thousand Seventy-Four and 00/100ths Dollars ($21,350,074.00), the City Manager shall reject all of the final bids. SECTION 2. This Resolution shall be effective immediately, the public welfare and the welfare of the City requiring it. Passed: Shane McFarland, Mayor ATTEST: APPROVED AS TO FORM: Jennifer Brown Adam F. Tucker City Recorder City Attorney  COUNCIL COMMUNICATION Meeting Date: 03/08/2023 Item Title: FY23 Budget Amendment Ordinance Department: Administration Presented by: Erin Tucker, Budget Director Requested Council Action: Ordinance ☒ Resolution ☐ Motion ☐ Direction ☐ Information ☐ Summary Amendment to the City’s FY23 Budget. Staff Recommendation Approve Ordinance 23-O-11, amending the City’s budget. Background Information State Street Aid Fund The FY23 Budget includes State Street Aid funded expenses for construction, paving and lighting throughout the City. Additional projects and initiatives require additional funding as follows: - $570,000 - Interchange & High Mast Lighting - $135,000 - Paving - $145,000 – Right-of-Way (ADA repairs) Council Priorities Served Responsible budgeting The budget amendments reflect General Fund’s increased revenues and expenses. Fiscal Impact These additional expenditures, totaling $850,000, will be funded from the Restricted State Street Aid Fund balance, which is derived from gas tax revenues. Attachments FY23 Budget Ordinance 23-O-11 and Exhibit A DocuSign Envelope ID: 895E07B0-6BE3-4F79-A569-7F97919EBDA5 ORDINANCE 23-O-11 amending the 2022-2023 Budget (5th Amendment). WHEREAS, the City Council adopted the 2022-2023 Budget by motion; and, WHEREAS, the City Council adopted an appropriations ordinance, Ordinance 22-O-11, on June 8, 2022 to implement the 2022-2023 Budget; and, WHEREAS, it is now desirable and appropriate to adjust and modify the 2022-2023 Budget and authorized full-time position counts adopted by this Ordinance to incorporate expenditure and hiring decisions made during the 2022-2023 fiscal year. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MURFREESBORO, TENNESSEE, AS FOLLOWS: SECTION 1. The 2022-2023 Budget adopted by the City Council is hereby revised and amended as shown on Exhibit A, attached hereto. SECTION 2. That this Ordinance take effect immediately upon and after its passage upon second and final reading, as an emergency Ordinance, an emergency existing, and it being imperative to provide for the necessary expenses, general and special, of said City of Murfreesboro for the Fiscal Year 2022-2023 at the earliest practicable time, the welfare of the City requiring it. Passed: Shane McFarland, Mayor 1st reading 2nd reading ATTEST: APPROVED AS TO FORM: Jennifer Brown Adam F. Tucker City Recorder City Attorney SEAL Exhibit A Page 1 BUDGET AMENDMENT AS PASSED OR AMENDED INCREASE Department Account PREV AMENDED BUDGET (DECREASE) General Fund Revenues $ - Expenditures Restricted State Street Aid Repair & Maintenance - Roads & Streets $ 3,600,000.00 $ 3,735,000.00 $ 135,000.00 State Street Aid Repair & Maintenance - Street Lights $ 75,000.00 $ 645,000.00 $ 570,000.00 State Street Aid Repair & Maintenance - Right-of-way $ 625,500.00 $ 770,500.00 $ 145,000.00 $ 850,000.00 CHANGE IN RESTRICTED FUND BALANCE (CASH) $ (10,099,100.00) $ (10,949,100.00) $ (850,000.00) TOTAL CHANGE IN FUND BALANCE (CASH) $ (33,896,303.82) $ (34,746,303.82) (850,000.00)  COUNCIL COMMUNICATION Meeting Date: 03/08/2023 Item Title: Retail Liquor Certificate of Compliance – Bubba’s Wine & Liquor – Ownership Change Department: Finance Presented by: Jennifer Brown Requested Council Action: Ordinance ☐ Resolution ☐ Motion ☒ Direction ☐ Information ☐ Summary Information pertaining to the issuance of a certificate of compliance for a retail liquor store. Background Information State law requires that an applicant for retail liquor stores obtain a certificate of compliance from the local jurisdiction to be submitted to the Tennessee Alcoholic Beverage Commission as part of the Commission’s licensing process. Compliance for the certificate is based only on the applicant’s criminal background information and that the location complies with local zoning ordinances and distance requirements. A certificate of compliance is requested by Roumani Saleb and Nader Saleb for the Bubba’s Wine & Liquor at 2510 S. Church St., which is a change of ownership for a retail liquor store. This request complies with statutory requirements. Council Priorities Served Maintain public safety The City’s role in issuing a Certificate of Good Moral Character allows the City to be aware of locations that would like to operate as a retail liquor store, to review zoning restrictions, review applicant background issues, and check for past problems with following City Code. Attachments Summary of Request for Certificate of Compliance for Retail Liquor Store City of Murfreesboro Request for Certificate of Compliance for Retail Liquor Store Summary of information from the application: Owners/Partners/Stockholders/Officers: Name Roumani Saleb Age 40 Home Address 111 Point Given Way Residency City/State Smyrna, TN 37167 Race/Sex Egyptian/M Background Check Findings: City of Murfreesboro: None Rutherford County: None Nashville Criminal Court: None TBI: None Name Nader Saleh Age 21 Home Address 2573 Johnson Ridge Rd. Residency City/State Antioch, TN 37013 Race/Sex Egyptian/M Background Check Findings: City of Murfreesboro: None Rutherford County: None Nashville Criminal Court: None TBI: None Name of Business Bubba's Wine & Liquor Business Location 2510 S. Church St. Type of Application: New Location Ownership Change X Name Change Corporation Partnership X LLC Sole Proprietor Application Completed Properly? Yes Application Completion Date: 3/2/2023 The actual application is available in the office of the City Recorder.  COUNCIL COMMUNICATION Meeting Date: 3/8/2023 Item Title: TDOT Interstate 24 SMART Corridor Project Update Department: Transportation Presented by: Jim Kerr, Director Summary TDOT officials will provide an update of the I-24 SMART Corridor Project. Background Information I-24 is an integral part of the Nashville-Davidson County transportation network. Since 2005, traffic volumes have increased by more than 60% in the Murfreesboro segments of l-24. TDOT’s I-24 SMART Corridor Project takes a comprehensive approach to managing the existing infrastructure and improving travel time reliability between Rutherford and Davidson Counties. This project integrates freeway and arterial roadway elements, along with physical, technological, and operational improvements, to provide drivers accurate, real-time information and to actively manage traffic. The project is phased as follows: Phase 1: Short-Term Deployments  Ramp improvements and emergency pull-offs along I-24  Roadside dynamic message signs (DMS) along I-24  Dedicated short-range communication (DSRC) deployment  Upgraded signal system including updated signal timings along the arterials Phase 2: Intermediate Deployments  Upgraded fiber along I-24  Overhead DMS for Active Traffic Management System along I-24  Upgraded detection along I-24 and the arterials Phase 3: Long-Term Deployments  Ramp Metering along I-24  Upgraded fiber along arterials  CCTVs and DMS along arterials  ADA improvements along arterials  Automated Decision Support Systems for Active Traffic Management Council Priorities Served Improve economic development The enhancement of major transportation corridors through the City assists in locating beneficial economic development projects within the City. Expand infrastructure The improvement of traffic flow on I-24 assists with removing traffic from City streets and serves to expend the capacity of existing roadways.  COUNCIL COMMUNICATION Meeting Date: 03/08/2023 Item Title: CIP Allocation Review Department: Finance Presented by: Jennifer Brown, Finance Director Summary CIP allocation and the reasons an on-going review and potential reallocation is required. Background Information The City has borrowed with tax-exempt bonds to fund many capital improvement projects. Because of the historical low borrowing rates during the past few years, projects were fully funded. Varying circumstances have slowed development of some planned capital improvements, and reallocation of funds is necessary to maintain the bonds’ exempt status. Additionally, the sudden increase in interest rates requires reallocation to avoid arbitrage earnings that would result in federal penalties. Discussion will provide an overview of this review and the purpose of potential future allocations to be brought to Council for approval. Council Priorities Served Responsible budgeting Proper management of borrowed funds is required to maintain the funding’s tax status and avoid undue penalties.  COUNCIL COMMUNICATION Meeting Date: 03/08/2023 Item Title: January 2023 Dashboard Department: Administration Presented by: Erin Tucker, Budget Director Summary January 2023 Dashboard packet Background Information Dashboard information includes relevant Financial, Building & Codes, Risk Management and Construction data. Council Priorities Served Responsible budgeting Providing Council with assessable financial information on a regular basis assists in critical decision-making about the fiscal affairs of the City. Fiscal Impacts None Attachments: 1. January 2023 Dashboard 2. City Schools January Dashboard  COUNCIL COMMUNICATION Meeting Date: 3/8/2023 Item Title: January 2023 MCS Cash Flow Statement and Revenue and Expenditure Budget Comparison Reports Department: Murfreesboro City Schools Presented by: Kim Williams Requested Council Action: Ordinance ☐ Resolution ☐ Motion ☐ Direction ☐ Information ☒ Summary FY23 Cash Flow Statement (January 2023) FY23 Revenue and Expenditure Budget Comparison Reports (January 2023) Background Information The State has recommended the Schools provide a Cash Flow Statement to the City Council on a monthly basis to indicate enough cash reserves are forecasted to be available to pay monthly expenses. We also will be including Revenue and Expenditure Budget Comparison Reports, that is provided to the Murfreesboro City School Board each month. This information will be included in the Wednesday agenda each month. A formal presentation will not be made each month, however there will be an opportunity for questions and comments. Council Priorities Served Strong and Sustainable Financial and Economic Health Fiscal Impact None Attachments January 2023 MCS Cash Flow Statement January 2023 MCS Revenue and Expenditure Budget Comparison Reports  JANUARY 2023 DASHBOARD FUND BALANCE The City’s Fund Balance policy requires a reserve of 15-30% of General Fund revenues. This reserve is maintained in the Unassigned Fund Balance within General Fund. Other components of this account include non-spendable assets, including Accounts Receivable. The remaining funds are available for use, generally for one-time, non-recurring expenses. Examples include economic development related expenses and capital spending for land, buildings and equipment. The graph and chart below reflects the total Unassigned Fund Balance categorized by required reserves, non-cash items, and available balance. The maximum reserve (30% of General Fund operating revenues) is used. These amounts are unaudited. 1/31/2023 Available Balance 23,671,916 Fund Balance Non-Cash Items (ex: Accounts Receivable) 26,260,517 Income Stabilization - Required Reserves 59,927,171 109,859,604 100,000,000 Available Balance 80,000,000 Items Allocated From Fund Balance: Non-Cash Items (ex: Towne Creek Budgeted Use 10,800,000 60,000,000 Accounts Receivable) Insurance Fund Transfer 895,396 40,000,000 Income Stabilization - 11,695,396 Required Reserves 20,000,000 - The chart below displays the changes in use of Unassigned Fund Balance by month. Monthly Fund Balance Analysis 70,000,000 50,000,000 60,000,000 45,000,000 40,000,000 50,000,000 35,000,000 40,000,000 30,000,000 30,000,000 25,000,000 20,000,000 20,000,000 10,000,000 15,000,000 - 10,000,000 6/1/2022 7/1/2022 8/1/2022 9/1/2022 10/1/2022 11/1/2022 12/1/2022 1/1/2023 Income Stabilization - Required Reserves Non-Cash Items (ex: Accounts Receivable) Available Balance  REVENUES Property Tax 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 - FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Property Tax notices were mailed in early October. The FY23 budget reflects a 3.08% increase over FY22. Actual results were $321,890 over budget. This has been reflected in the October budget amendment. LOCAL SALES TAX BUDGET vs ACTUAL 8 70 Millions 7 60 Millions 6 50 Cumulative Total 5 Monthly Total 40 4 30 3 20 2 1 10 - 0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY23 Budget FY23 Actual FY 23 Cumulative FY 22 Cumulative FY23 Local Sales Tax collections were budgeted at 6% over FY22’s projected collections. With collections through October trending over FY22 by 11% and over budget by 4.7%, a budget amendment was approved in November to reflect these increases. Subsequent November and December collections came in over the revised budget by 2.6% and 4% respectively; however, collections weakened in January, reflecting only a 1% growth over FY22. This was immediately communicated to Council and is being closely monitored.  STATE SALES TAX BUDGET vs ACTUAL 2,000 18 Thousands 1,800 16 Millions 1,600 14 1,400 12 Cumulative Total 1,200 Monthly Total 10 1,000 8 800 6 600 4 400 200 2 - 0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY23 Budget FY23 Actual FY 23 Cumulative FY 22 Cumulative Early FY23 State Sales Tax collections were still showing the impact of the newly certified 2020 census results, resulting in an increase over FY22 by 21% and over budget by 9.5%. This growth began to slow down at the end of the first quarter once a full year of the new census impacts were recognized. This budget was amended to reflect higher than budgeted results through October. November and December collections resulted in an increase of 3.9% and 3.4%, respectively, over this year’s budget. January collections, in at 4.5% over FY22, failed to meet the budget projections of 6% growth over FY22. This was also communicated to Council and will be closely monitored in the coming months.  STATE TAX DISTRIBUTIONS Business Tax - Gross Receipts Tax 7.93% State Street Aid - Gas Tax 15.87% State Sales Tax TVA Gross Receipts 52.97% 16.27% Mixed Drink Tax 5.93% Telecom Sales Tax 0.21% Gas Tax Allocation 0.83% For December, Sales Tax receipts made up 53% of State revenues. State Street Aid (restricted to road improvements) followed with 16%. TVA Gross Receipts taxes reflect 16 of State revenues, as well. Mixed Drink tax totaled 6% and Gross Receipts (Business Tax) totaled 8% for the month. The remaining revenues were made up with other miscellaneous taxes, including telecom and miscellaneous gas tax revenues.  State Revenue Collections 5.00 35 Millions 4.50 Millions 30 4.00 3.50 25 3.00 Total Collections 20 2.50 15 2.00 1.50 10 1.00 5 0.50 0.00 0 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE FY22 Actual FY23 Actual FY22 Cumulative FY23 Cumulative Overall, State Shared Revenue collections showed 11% growth for January and 14% cumulatively as compared to FY22. Sales Taxes receipts are showing a 4.5% increase as compared to January 2022. Most other taxes are showing growth for the month, as well. Mixed Drink taxes reflect a 37% increase for the month. Business License (Gross Receipts) Taxes are up $98k (77%) compared to last year for the month and 69% cumulatively. State Street Aid Gas Tax reflects a 1% increase compared to January 2022 but maintains a 5% growth for the year. These revenues are restricted and can only be spent on eligible roadway maintenance and construction projects.  HOTEL/MOTEL BUDGET vs. ACTUAL 450 4.00 Millions Thousands 400 3.50 350 3.00 Monthly Collections Cumulative Collections 300 2.50 250 2.00 200 1.50 150 1.00 100 50 0.50 - - JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN FY23 Budget Based on 5 yr Average Actual Budgeted Cumulative Actual Cumulative FY23 Hotel/Motel Taxes were budgeted to include a 10% increase over FY22 projected results. January results reflected a 19% increase over budget and an 8% increase compared to last year. Cumulatively, this tax is up 11% over FY22 and over budget 11%.  EXPENSES Salaries & Benefits 16,000,000 100,000,000 14,000,000 90,000,000 80,000,000 12,000,000 70,000,000 10,000,000 60,000,000 8,000,000 50,000,000 6,000,000 40,000,000 30,000,000 4,000,000 20,000,000 2,000,000 10,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 23 Budget FY 23 Actual FY 23 Cumulative FY 22 Cumulative Salaries & Benefits make up 40% of General Fund’s budget. The FY23 budget included 27 additional full-time positions, increasing full-time approved positions from 1,056 to 1,083 positions. Two additional positions were added in October, increasing the full-time approved positions to 1,085. As of 1/31/23, there were 991 filled full-time positions and 94 vacancies Police had 67 open positions at the end of January, including 48 sworn officer positions. Salaries & Benefits are running 10% under budget for the year. Cumulative results are up 12% as compared to last year, when the August one-time bonuses are excluded from FY22 results. Schools Transfer 700,000 9,000,000 8,000,000 600,000 7,000,000 500,000 6,000,000 400,000 5,000,000 300,000 4,000,000 3,000,000 200,000 2,000,000 100,000 1,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 23 Budget FY 23 Actual FY 23 Cumulative FY 22 Cumulative Transfers to City Schools makes up 3% of General Fund’s budget. Budgeted Transfers to City Schools is budgeted at $7.885M. This transfer is made in monthly increments evenly distributed throughout the year.  Debt Service Transfer 30,000,000 40,000,000 35,000,000 25,000,000 30,000,000 20,000,000 25,000,000 15,000,000 20,000,000 15,000,000 10,000,000 10,000,000 5,000,000 5,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 23 Budget FY 23 Actual FY 23 Cumulative FY 22 Cumulative Budgeted Debt Service makes up 17% of General Fund’s budget. The budgeted Debt Service Transfer increased by $4.8m in FY23 due to the 2022 Bond issuance. At this time, no additional borrowings are planned until FY24. Repairs & Maintenance 4,000,000 14,000,000 3,500,000 12,000,000 3,000,000 10,000,000 2,500,000 8,000,000 2,000,000 6,000,000 1,500,000 4,000,000 1,000,000 500,000 2,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 23 Budget FY 23 Actual FY 23 Cumulative FY 22 Cumulative Repairs & Maintenance make up 5% of General Fund budgeted expenses. These costs are down 16% as compared to budget and up 2% as compared to last year through January. This includes maintenance of software ($2.3M), fleet services ($3.9M), and Police R&M for radios, mobile data terminals, etc. ($1 M). State Street Aid R&M of streets, markings and right of way totals $4.9M. While monthly budgeted amounts are based on last year’s actual results, these expenses are seasonal and fluctuate depending on contract timing and timing of repairs.  Utilities 1,000,000 6,000,000 900,000 5,000,000 800,000 700,000 4,000,000 600,000 500,000 3,000,000 400,000 2,000,000 300,000 200,000 1,000,000 100,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 23 Budget FY 23 Actual FY 23 Cumulative FY 22 Cumulative Utilities make up 2% of General Fund’s budget. Results are up 17% as compared to FY22 and are running nearly 7% over budget through January – this is largely due to TVA rate increases for electricity. This year’s overrun is expected to be covered by budgeted savings in other areas. However, next year’s budget will reflect these increases. Supplies 1,200,000 4,500,000 4,000,000 1,000,000 3,500,000 800,000 3,000,000 2,500,000 600,000 2,000,000 400,000 1,500,000 1,000,000 200,000 500,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 23 Budget FY 23 Actual FY 23 Cumulative FY 22 Cumulative Supplies make up 2% of General Fund’s budget. Through December, expenses are running 7% under budget. Expenses are up 28% as compared to last year. Much of this is due to inflationary increases – especially in the fuel expenses and in the Fleet Services parts supplies item. Fuel is running about 40-45% higher than last year. Fleet Services parts expenses are running 25-30% over budget and will likely need a budget amendment in the next 2-3 months.  Fixed Assets 10,000,000 10,000,000 9,000,000 9,000,000 8,000,000 8,000,000 7,000,000 7,000,000 6,000,000 6,000,000 5,000,000 5,000,000 4,000,000 4,000,000 3,000,000 3,000,000 2,000,000 2,000,000 1,000,000 1,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 23 Budget FY 23 Actual FY 23 Cumulative FY 22 Cumulative Fixed Assets make up 19% of General Fund’s budget, totaling $52M These items include: • $5.6M – Infrastructure for grant funded road • $10.8M – Towne Creek construction • $1.6M – Public Safety Equipment • $4.65M – Police Vehicles • $1.4M – Transit Buses • $4.0M – Transit Facility • $1.2M – Fire Rescue/Parks Admin build-out • $3.0M – Community West Park • $860k – Skate Park Timing on spending in Fixed Assets is also seasonal and can fluctuate based on the construction schedules and delivery of equipment. Through December, fixed asset spending was more than double last year’s expenses through December. This is due to the one-time spending on the Towne Creek property acquisitions – about $4.6m has been spent so far on these properties.  BUILDING & CODES Budgeted Building & Codes budgeted revenues reflect a 27% decrease as compared to FY22’s actual results. Actual results indicate a 37% drop as compared to last year through January. This is largely due to the expected decline in new residential and commercial buildings in response to rising interest rates. New Dwelling Units (Single Family, Townhomes & Apartments) 120 2,500 100 2,000 80 1,500 60 1,000 40 500 20 0 0 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE New Permits Cumulative FY 23 Cumulative FY 22 Cumulatively, FY23 dwelling permits are down 72% through January as compared to last year. Due to today’s economic climate, the department expects fluctuations like this to continue as new residential building tapers off. Total Permits (all types) 1,000 14,000 900 12,000 800 700 10,000 600 8,000 500 400 6,000 300 4,000 200 2,000 100 - - JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE FY 23 Total Permits Cumulative FY 23 Cumulative FY 22 Total permits were trending down from last year by 16% through January. The department expects fluctuations like this to continue as new construction continues to slow down.  375,000 Revenues 5,100,000 350,000 4,700,000 325,000 4,300,000 300,000 3,900,000 3,500,000 275,000 3,100,000 250,000 2,700,000 225,000 2,300,000 200,000 1,900,000 175,000 1,500,000 150,000 1,100,000 125,000 700,000 100,000 300,000 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE FY 23 Monthly Revenues FY 23 Cumulative Revenues FY 22 Cumulative Revenues Through January, revenues are down 37% as compared to last year, which has been anticipated due to rising interest costs and supply chain issues.  JANUARY SAFETY REPORT City Cumulative All Incidents as of January Yr 2022 = 17 Yr 2023 = 11 10 9 9 8 7 6 5 5 4 4 3 3 2 2 1 1 1 1 1 1 0 0 0 0 0 0 0 Fire Police Parks & Water Comm Fleet Street Transp Rec Yr 2022 Yr 2023 Safety incidents are reflected on a calendar vs. fiscal year basis. Overall, for the City, total incidents for 2023 are down by 6 incidents or 35% from 2022.  Cost of PEP Claims as of Jan $800,000 $700,000 $49,367 $600,000 $289,874 $268,358 Fire $500,000 $323,702 Police $400,000 P&R Street $300,000 $225,386 $253,309 $66,174 Water $200,000 $18,370 $2,908 $98,724 Other $7,874 $8,806 $17,500 $100,000 $119,880 $131,879 $134,287 $42,255 $27,886 $- $63 $0 2020 2021 2022 2023  Number of PEP Claims as of Jan 200 180 160 40 42 63 140 Fire 120 Police 100 P&R 75 80 74 64 Street 60 Water 9 15 Other 40 10 11 11 7 9 20 15 17 21 15 5 12 2 1 0 3 2020 2021 2022 2023  FEBRUARY 9, 2023 Project Tracking Project Cost (including approved Change Orders) Billed to Date (Construction Only) Project Days (including approved Change Orders) Days Used $9,000,000.00 500 $8,000,000.00 450 400 $7,000,000.00 350 $6,000,000.00 300 $5,000,000.00 250 $4,000,000.00 200 $3,000,000.00 150 $2,000,000.00 100 $1,000,000.00 50 $0.00 0 Bradyville Pike Cherry Lane Phase II Cherry Lane Phase III Dr. Martin Luther King Blvd Sidewalks Rucker Lane Phase 1 Brinkley Road Phase 1 Gateway Boulevard Extension Beasie/River Rock Connector Pareto Chart for Cumulative Percent of Annual Costs across all Cost Centers is in cells B2 through E3. Project Limits Project Cost (including Billed to Date Project Days (including Estimated Substantial Project Name From To Distance approved Change Orders) (Construction Only) approved Change Orders) Days Used Percent Days Completion N.T.P. Bradyville Pike SE Broad Street S Rutherford Blvd 2.10 Miles $10,570,000 (Est Cost) $0.00 0 0 0% Cherry Lane Phase II Siegel Soccer Park Sulphur Springs Road 1.73 Miles $13,800,000 (Est Cost) $0.00 0 0 0% Cherry Lane Phase III Broad Street Memorial Blvd (231) 1.10 Miles $46,000,000 (Est Cost) $0.00 0 0 0% Dr. Martin Luther King Blvd Sidewalks SE Broad Street Middle TN Blvd .70 Miles $1,100,292 $681,119.80 365 373 102% 5/25/2022 5/17/2021 Rucker Lane Phase 1 Muirwood Blvd Veterans Parkway .75 Miles $2,299,947 $1,969,983.33 244 244 100% 1/9/2022 5/10/2021 Brinkley Road Phase 1 Timber Creek Blaze Drive .3 Miles $3,839,997 $2,487,631.33 462 284 61% 7/10/2023 4/4/2022 Gateway Boulevard Extension Gateway Robert Rose .3 Miles $1,432,842(Est Cost) $0.00 0 0 0% Beasie/River Rock Connector River Rock Beasie Rd .3 Miles $8,244,535 $0.00 TBD 0 0% 5/17/2024 TBD Total $87,287,613 $5,138,734  FEBRUARY 9, 2023 Project Status / Comments Contractor has 95% of deck steel installed. 2nd portion of bridge deck scheduled to be poured 2/15/2023. Water line work on east side of Brinkley complete. Contractor also scheduled to begin grading Brinkley Road Phase I on phase 2 roadwork in the coming weeks. Cherry Lane Phase II City has received new proposal from consultant to accommodate design changes requested by the Corps of Engineers. It is currently under legal review and will go to Council for final approval. Cherry Lane Phase III Right-of-way consultant (Volkert) continuing to work on second batch of appraisals for right of way acquisition. Right-of-way plans finalized. Consultant beginning to develop exhibits and descriptions for needed right of way and easements. Appraisal proposal under legal review and will go to Council for final Butler Dr. Realignment approval Gateway Blvd Extension Staff working with consultant to incorporate signal design at Robert Rose and Gateway. Appraisals complete. Staff finalizing right of way negotiations and acquisition. Medical Center Phase 1 Consultant delivered functional plan. Staff reviewing plan and getting comments back. Consultant beginning utility coordination. Developments in the area continuing to construct portion third lane. Council awarded construction contract on January 5th, 2023 to Bell and Associates. Contracts are being finalized with contractor and City. City staff and consultants are finalizing environmental River Rock Beasie Connector documents and right of way acquisition. Preconstruction meeting scheduled for 2/14/2023. Rucker Lane Phase II Staff working with consultant to finalize plans, bid book, and design over Colonial gas line. Negotiations are being finalized with the Colonial gas line to agree on design over crossing. Project ROW Updates Bradyville Pike 85% of ROW Acquisition completed Cherry Lane Phase III Volkert continuing ROW acquisition. Appraisals in process. Gateway Boulevard Extension Appraisals complete. City finalizing ROW acquisition River Rock / Beasie Connector Ap+A1:B15praisals complete. ROW negotiations being finalized. No items.