City Council

NOTICE OF SPECIAL WORKSHOP MEETING Council Chambers, 865 SE Barrington Drive NOTICE IS HEREBY GIVEN that the Oak Harbor City Council will hold a Special Workshop Mee ng on April 10, 2024 at 2:00 PM to discuss the following agenda items. This mee ng will be held in the Council Chambers, 865 SE Barrington Drive . DATED this 4th of April, 2024 . Julie Nester, City Clerk The City Council may meet informally in workshop sessions (open to the public) to do concentrated strategic planning, to review forthcoming programs of the City, receive progress reports on current programs or projects, or receive other similar information from the Interim City Administrator, provided that all discussions and conclusions thereon shall be informal. The Council may elect to make disposition of any item at a workshop meeting when noticed for action. Public comment is not normally allowed at workshop meetings, although Council may allow, or request participation. ** Please Note: No action will be taken** SPECIAL WORKSHOP MEETING APRIL 10, 2024 CITY COUNCIL AGENDA AT 2:00 PM 2:00 P.M. MAYOR 2:05 P.M. ADMINISTRATION a. CITY COUNCIL OVERARCHING PRIORITIES 3:05 P.M. FINANCE a. CITY COUNCIL FINANCIAL PRIMER PART 1 - BUDGET PROCESS OVERVIEW April 10, 2024 Special Council Workshop Page 1  Date: a. April 10, 2024 City of Oak Harbor Subject: City Council Overarching City Council Priorities Workshop Agenda Bill FROM:Administration SUMMARY STATEMENT As a follow-up to the Council retreat of February 12, 2024, staff will review the Council's overarching priorities from that meeting and discuss how these may be implemented in terms of timelines, funding and the budget process. ATTACHMENTS 1. 2024 Overarching Priorities Presentation 2. Draft Council Overarching Priorities April 10, 2024 Special Council Workshop Page 2 2024 City Council Priorities SPECIAL City Council Workshop Interim City Administrator Sabrina Combs April 10, 2024 April 10, 2024 Special Council Workshop Page 3  Background The draft 2024 priorities list was created during the February 12, 2024 Council Retreat. April 10, 2024 Special Council Workshop Page 4  Retreat Insights We Do What We Fund Our priorities are great ideas, plans, projects, amenities; but how do we fund it? Items that include a need for on-going operations should include how they will be funded whether it be through grants, partnerships, levies, taxes, etc. We need to include the public in the conversation because we are spending their dollars. April 10, 2024 Special Council Workshop Page 5  Overarching Priorities Central Development Area (CDA) Marina Recreation/Pool/Civic Center Infrastructure Facilities Improvement Quality/Safety Housing Affordability Representative Form of Government April 10, 2024 Special Council Workshop Page 6  Ranking Priorities 1 Central Development Area Marina 2 Recreation Center/Pool/Civic Center Infrastructure/Facilities Quality/Safety Housing 3 Affordability Representative Form of Government April 10, 2024 Special Council Workshop Page 7  1 CENTRAL DEVELOPMENT AREA (CDA) An area of commercial development is located in the downtown corridor between State Route 20 and the City of Oak Harbor Marina. Creating a connective and inviting downtown corridor for residents, businesses, and tourists. Infrastructure Market Analysis Design Guidelines Cohesive Connection between Downtown and Waterfront Add Housing Supply and Increase Density Consider the building of a tourism-related venue as a potential revenue source for the City (hotel, convention center, mixed-use facility, etc.) April 10, 2024 Special Council Workshop Page 8  2 Oak Harbor Marina Develop the current City of Oak Harbor Marina into a destination location by addressing required dredging for larger vessels, making necessary repairs, enhancing and adding amenities, and pursuing the addition of other buildings to increase the facility use. Draft a Marina Development Plan. Implementation of the Dredging Project with phases for dredging of the Marina, the channel, replacement of the breakwater and failing docks. Identify funding methods for the Marina Dredging project. Gain community support for Marina projects. Grow Marina usage for non-boaters by creating events and venues that attract both boaters and non-boaters to the Marina. Upgrade the Harbormasters office, restrooms, showers, and laundry facilities. Address boat storage needs and parking for increased use of the property. Identify transportation resources to move people between downtown and the Marina. Consider building a tourism-related venue as a potential revenue source. Identify recurring revenue sources outside of user fees (B&O funding for debt service). April 10, 2024 Special Council Workshop Page 9  2 Recreation Center/Pool/Civic Center Create a strategic plan for building a recreation center with indoor/outdoor amenities, including walking tracks, classrooms, sports recreation fields, pool for community use and increased tourism opportunities, and office space for staffing to support programs. Complete a feasibility study. Investigate funding sources. Identify building needs based on current facilities and potential site locations. Consider the addition of an EV Charging Station Consider transition from current structures (i.e., The Center). Address inclusion for various age groups and cultures. Engagement with the community for needs assessment including input regarding priorities for spaces, programs, and potential funding sources. Provide multiple transportation options to meet community needs. Include security features for cameras, badge readers, and broadcast system for emergencies and lost child notices. Establish a cost recovery model to ensure sustainable operations. April 10, 2024 Special Council Workshop Page 10  2 Infrastructure/Facilities Improvements Identify necessary building improvements and options for short-term repairs and long-term replacement of the City Hall, Police Department, and The Center. Future facility discussions must include plans for future City services and an increase in staffing to provide resources for residential growth. The plan needs to include funding of the Facility Replacement Fund (504), by using the facility evaluation as a baseline to understand potential funding requirements. April 10, 2024 Special Council Workshop Page 11  Infrastructure/Facilities Improvements 2 City Hall This building was formerly the community library before being a shared City Hall and library and finally the City Hall building. It is more than sixty years old and has the needs of a building of that age, including the need for multiple repairs and facility challenges as an older building. The major systems, such as electrical, HVAC, roofs, windows, will all require replacement at some point. The City needs to consider future options for housing City Hall staff because these buildings have potential safety and seismic standard concerns. Facilities staff is conducting limited (low cost) office improvements and basic repairs as the City starts the planning process for future replacement structures. April 10, 2024 Special Council Workshop Page 12  Infrastructure/Facilities Improvements 2 City Hall Here is a list of items staff is currently working on: Procurement is working on ordering generators. There is a new state contract that is under review before we go out to bid. Generators should have EV charging capability. Consider the addition of an EV Charging Station Roof replacement is required. Need to determine a funding source and the type of roofing repair the City wants to complete. Consideration of building a new City Hall and requirements, including but not limited to space for additional staff, community space, larger Council Chambers with technology enhancements for meetings, Council office space, breakroom/workout room to address wellness needs for staff, parking for staff/community use, and security cameras/badging systems for staff safety. A new facility should be designed in a way to address serving the City for several decades. April 10, 2024 Special Council Workshop Page 13  Infrastructure/Facilities Improvements 2 Fire Department Building a second Fire Station. Adding staff to improve response times. Identify if there are any current or upcoming needs for the current Fire Station. April 10, 2024 Special Council Workshop Page 14  Infrastructure/Facilities Improvements 2 The Center Procurement is working on ordering generators. There is a new state contract that is under review before we go out to bid. Generators should have EV charging capability. Roof was replaced in 2023. Additional facilities on the property require repairs/roof. Currently working on funding to address parking lot repairs. Considering new facility options as part of the plan for a Recreation Center and which services in this building and additional buildings on-site need to be included in the plans for the recreation center. Consider the addition of an EV Charging Station April 10, 2024 Special Council Workshop Page 15  Infrastructure/Facilities Improvements 2 Police Department This facility is also nearing the end of its useful life cycle. This building requires multiple repairs and has several facility challenges as an older building. The major systems, such as electrical, HVAC, roofs, windows, will require replacement. The City needs to consider future options for housing Police Department staff because these buildings have potential safety and seismic standard concerns. Currently, staff is working to address roof replacement as a necessary repair. However, the City needs to determine a funding source and decide the type of roof replacement plan they want to use. A new facility should be designed in a way to address serving the City for several decades, including but not limited to jail requirements/needs, space for staff growth, training, workout room/break rooms, storage, and community space. April 10, 2024 Special Council Workshop Page 16  Infrastructure/Facilities Improvements 2 Police Department Procurement staff is working on ordering generators. There is a new state contract that is under review before we go out to bid. Generators should have EV charging capability. We might also consider the addition of an EV Charging Station. Facility staff are currently addressing limited low-cost office improvements that provide basic repairs while the City starts the planning process to replace (or purchase) structures that will address future needs. April 10, 2024 Special Council Workshop Page 17  2 Quality/Safety Improve the amenities and accessibility for the community while addressing the safety concerns of community members by increasing Police presence by adding more officers to the Police Department. Identify funding for more police officers. Look for creative ways to provide more police presence through technology opportunities. Research funding mechanisms for adding more police officers to the department. Continue to highlight and share the work our law enforcement staff are doing in our community. Work with legislators to increase regional training opportunities to increase the number of applicants for positions. Continue to keep competitive pay for officers. Restarting Citizen Academy and Police Advisory Board. April 10, 2024 Special Council Workshop Page 18  3 Housing Provide more workforce housing to increase affordable housing options for the community. Work with Legislators to address growth requirement impacts to Oak Harbor and to spread growth out evenly across Whidbey Island. Increase affordable housing options for individuals working in Oak Harbor. April 10, 2024 Special Council Workshop Page 19  3 Affordability Reduce the cost impact to residents for utilities. Work with legislators to reduce the City’s debt. Continue to educate customers about rate structures. April 10, 2024 Special Council Workshop Page 20  3 Representative Form of Government Council is discussing the options for changing government operations in the City of Oak Harbor. Currently the City has a strong Mayor form of government. Any changes would require a vote by registered voters in the City limits. Some of the options under consideration include: No changes – keep part-time strong Mayor. Increasing part-time Mayor to a full-time Mayor position. Consider shifting to a City Manager/Council form of government. April 10, 2024 Special Council Workshop Page 21 2024 Council Priori�es This is the list of priorities discussed at the 2024 Council Retreat at the Whidbey Campus of Skagit Valley College on February 12, 2024. Of the 15 potential priorities identified, eight received the majority of support from City Council and the Leadership Team. Overarching Priorities • Central Development Area (CDA) • Marina • Recreation/Pool/Civic Center • Infrastructure Facilities Improvement • Quality/Safety • Housing • Affordability • Representative Form of Government Ranking Priorities The ranking of the eight overarching priorities by the City Council and City Leadership Team to include: Ranking One Ranking Two Ranking Three • Central Development Area • Marina • Housing (CDA) • Recreation • Affordability Center/Pool/Civic Center • Representative Form of • Infrastructure/Facilities Government • Quality/Safety Central Development Area (CDA) An area of Commercial development in the downtown corridor between State Route 20 and the City of Oak Harbor Marina. Creating a connective and inviting downtown corridor for residents, businesses, and tourists. • Infrastructure • Market Analysis • Design Guidelines • Cohesive Connection Between Downtown and Waterfront • Add Housing Supply and Increase Density • Consider the building of a tourism-related venue as a potential revenue source for the City (hotel, convention center, mixed use facility, etc.). Marina Develop the current City of Oak Harbor Marina into a destination location by addressing required dredging for larger vessels, making necessary repairs, enhancing and adding amenities, and pursuing the addition of other buildings to increase the facility use. • Draft a Marina Development Plan. • Implementation of the Dredging Project with phases for dredging of the Marina, the channel, replacement of the breakwater and failing docks. 1|Page April 10, 2024 Special Council Workshop Page 22 2024 Council Priori�es • Identify funding methods for the Marina Dredging project. • Gain community support for Marina projects. • Grow Marina usage for non-boaters by creating events and venues that attract both boaters and non- boaters to the Marina. • Upgrade the Harbormasters office, restrooms, showers, and laundry facilities. • Address boat storage needs and parking for increased use of the property. • Identify transportation resources to move people between downtown and the Marina. • Consider building a tourism-related venue as a potential revenue source. • Identify recurring revenue sources outside of user fees (B&O funding for debt service). Recreation Center/Pool/Civic Center Create a strategic plan for building a recreation center with indoor/outdoor amenities, including walking tracks, classrooms, sports recreation fields, pool for community use and increased tourism opportunities, and office space for staffing to support programs. • Complete a feasibility study. • Investigate funding sources. • Identify building needs based on current facilities and potential site locations. • Consider the addition of an EV Charging Station • Consider transition from current structures (i.e., The Center). • Address inclusion for various age groups and cultures. • Engagement with the community for needs assessment including input regarding priorities for spaces, programs, and potential funding sources. • Provide multiple transportation options to meet community needs. • Include security features for cameras, badge readers, and broadcast system for emergencies and lost child notices. • Establish a cost recovery model to ensure sustainable operations. Infrastructure/Facilities Improvements Identify necessary building improvements and options for short-term repairs and long-term replacement of the City Hall, Police Department, and The Center. Future facility discussions must include plans for future City services and an increase in staffing to provide resources for residential growth. The plan needs to include funding of the Facility Replacement Fund (504), by using the facility evaluation as a baseline to understand potential funding requirements. City Hall This building was formerly the community library before being a shared City Hall and library and finally the City Hall building. It is more than sixty years old and has the needs of a building of that age, including the need for multiple repairs and facility challenges as an older building. The major systems, such as electrical, HVAC, roofs, windows, will all require replacement at some point. The City needs to consider future options for housing City Hall staff because these buildings have potential safety and seismic standard concerns. Facilities staff is conducting limited (low cost) office improvements and basic repairs as the City starts the planning process for future replacement structures. 2|Page April 10, 2024 Special Council Workshop Page 23 2024 Council Priori�es Here is a list of items staff is currently working on: • Procurement is working on ordering generators. There is a new state contract that is under review before we go out to bid. Generators should have EV charging capability. • Consider the addition of an EV Charging Station • Roof replacement is required. Need to determine a funding source and the type of roofing repair the City wants to complete. • Consideration of building a new City Hall and requirements, including but not limited to space for additional staff, community space, larger Council Chambers with technology enhancements for meetings, Council office space, breakroom/workout room to address wellness needs for staff, parking for staff/community use, and security cameras/badging systems for staff safety. A new facility should be designed in a way to address serving the City for several decades. Fire Department • Building a second Fire Station. • Adding staff to improve response times. • Identify if there are any current or upcoming needs for the current Fire Station. The Center • Procurement is working on ordering generators. There is a new state contract that is under review before we go out to bid. Generators should have EV charging capability. • Roof was replaced in 2023. • Additional facilities on the property require repairs/roof. • Currently working on funding to address parking lot repairs. • Considering new facility options as part of the plan for a Recreation Center and which services in this building and additional buildings on-site need to be included in the plans for the recreation center. • Consider the addition of an EV Charging Station Police Department This facility is also nearing the end of its useful life cycle. This building requires multiple repairs and has several facility challenges as an older building. The major systems, such as electrical, HVAC, roofs, windows, will require replacement. The City needs to consider future options for housing Police Department staff because these buildings have potential safety and seismic standard concerns. Currently, staff is working to address roof replacement as a necessary repair. However, the City needs to determine a funding source and decide the type of roof replacement plan they want to use. A new facility should be designed in a way to address serving the City for several decades, including but not limited to jail requirements/needs, space for staff growth, training, workout room/break rooms, storage, and community space. Procurement staff is working on ordering generators. There is a new state contract that is under review before we go out to bid. Generators should have EV charging capability. We might also consider the addition of an EV Charging Station. Facility staff are currently addressing limited low-cost office improvements that provide basic repairs while the City starts the planning process to replace (or purchase) structures that will address future needs. 3|Page April 10, 2024 Special Council Workshop Page 24 2024 Council Priori�es Quality/Safety Improve the amenities and accessibility for the community while addressing the safety concerns of community members by increasing Police presence by adding more officers to the Police Department. • Identify funding for more police officers. • Look for creative ways to provide more police presence through technology opportunities. • Research funding mechanisms for adding more police officers to the department. • Continue to highlight and share the work our law enforcement staff are doing in our community. • Work with legislators to increase regional training opportunities to increase the number of applicants for positions. • Continue to keep competitive pay for officers. • Restarting Citizen Academy and Police Advisory Board. Housing Provide more workforce housing to increase affordable housing options for the community. • Work with Legislators to address growth requirement impacts to Oak Harbor and to spread growth out evenly across Whidbey Island. • Increase affordable housing options for individuals working in Oak Harbor. Affordability Reduce the cost impact to residents for utilities. • Work with legislators to reduce the City’s debt. • Continue to educate customers about rate structures. Representative Form of Government Council is discussing the options for changing government operations in the City of Oak Harbor. Currently the City has a strong Mayor form of government. Any changes would require a vote by registered voters in the City limits. Some of the options under consideration include: • No changes – keep part-time strong Mayor. • Increasing part-time Mayor to a full-time Mayor position. • Consider shifting to a City Manager/Council form of government. Some Insights from the Retreat - We Do What We Fund Our priorities are great ideas, plans, projects, amenities; but how do we fund it? Items that include a need for on-going operations should include how they will be funded whether it be through grants, partnerships, levies, taxes, etc. We need to include the public in the conversation because we are spending their dollars. 4|Page April 10, 2024 Special Council Workshop Page 25  Date: April 10, 2024 City of Oak Harbor Subject: a. City Council Financial Primer City Council Part 1 - Budget Process Workshop Agenda Bill Overview FROM:David Goldman, Deputy City Administrator Finance SUMMARY STATEMENT Deputy City Administrator Goldman will present the first part of the biennial budget primer series - Budget Process Overview. This presentation has been updated with new budgeting techniques which will be rolled out for the 2025-26 Biennial Budget Process. ATTACHMENTS 1. 2024 City Council Financial Primer - Part 1 April 10, 2024 Special Council Workshop Page 26 COUNCIL FINANCE & BUDGET PRIMER PART 1: BUDGET April 10, 2024 Special Council Workshop Page 27 CONTENTS • Budget Overview • Budget Components • Biennial Budgeting Development Process • Fund Organization • Overall Budget Amounts • Budget Types • Advanced Budgeting Examples April 10, 2024 Special Council Workshop Page 28 WHAT IS A BUDGET? BUDGET OVERVIEW April 10, 2024 Special Council Workshop Page 29 A BUDGET IS… • An Expression of Public Policy • Resolves conflicting views on resource allocation • Reflects council’s priorities for community • A Financial Plan • Coordination of revenues and expenditures • A Control Mechanism • Authorizes amounts to be spent • Compares past to proposed expenditures April 10, 2024 Special Council Workshop Page 30 REGULATORY REQUIREMENTS • State Auditors Office requirements, accounting standards, and auditing standards • Government Accounting Standards Board • Generally Accepted Accounting Principles • Fund Accounting April 10, 2024 Special Council Workshop Page 31 WHAT TO LOOK FOR • Structural Integrity • Maintenance of services • Current revenues supports current expenses (e.g., on-going operations and maintenance) • One-time revenues support one-time expenses (e.g. grant revenues, capital projects) • Future commitments are supported by growth or planned resource enhancements • Safety Net • Reserves to support short term needs, if needed. Replenish at first opportunity • Planning for the future • For future service needs • For funding sources April 10, 2024 Special Council Workshop Page 32 TWO BUDGET ACTIVITIES BIENNIAL BUDGET CAPITAL IMPROVEMENT PROGRAM (CIP) • Operating expenses / public services • Led by Development Services in conjunction with other departments • Non-operating • Capital • Capital projects with value greater than • Reserves $50,000 • Debt payments • Six-year focus • Two-year focus • First two years are included in the biennial budget April 10, 2024 Special Council Workshop Page 33 WHAT IS IN THE BUDGET? BUDGET COMPONENTS April 10, 2024 Special Council Workshop Page 34 BUDGET DOCUMENTS • Two Documents Produced • Preliminary Budget (Mayor’s Proposed Budget) • City Council’s Adopted Budget April 10, 2024 Special Council Workshop Page 35 MAIN SECTIONS • Budget Message (Transmittal Required by Law) • Budget Highlights • City Council Policy Direction & Goals (from retreat) • Financial Management Policies Overview • Budget Summary • Long-term Capital Plan (the first two-years included in budget) • Fund/Department Overviews • Appendix (Glossary, Budget Ordinance, and Wage and Salary Schedule) April 10, 2024 Special Council Workshop Page 36  2025-2026 BIENNIAL BUDGET DEVELOPMENT PROCESS – COUNCIL INTERACTION AND FEEDBACK • City Council Priorities/Goals Discussion (February Retreat) • City Council Financial Primers (February – August Workshops) • Public Hearing: Revenue Projections for the Upcoming Biennial Budget (September. Must Be Done Prior To Adoption Of Property Tax Levy - RCW 84.55.120) • Financial Status update (September) • Presentation of Mayor’s Preliminary Budget Proposal (Sept. Workshop. By Oct. 7 – RCW 35.34.230) • Capital Project Presentations (September - October) Upcoming Council Policy Action • Filing of Mayor’s Final Preliminary Budget with Council (By Nov. 1 – RCW 35.34.090) • Public Hearing: Adopt Property Tax levy and certification of levy for 2025 (By Nov. 30 – RCW 84.52.070)) • Public Hearing: Preliminary Hearing on the Budget (By Dec. 7 - RCW 35.34.090) • Public Hearing: Adoption of the Budget (By Dec. 31 - RCW 35.34.110) April 10, 2024 Special Council Workshop Page 37 FINANCIAL MANAGEMENT POLICIES (HIGHLIGHTS) • Biennial operating budgets should include appropriations for maintenance and replacement of the City’s capital facilities and equipment to protect the City’s capital investments and minimize future maintenance and replacement costs. • On-going revenues will be sufficient to support on-going expenditures. • A well-diversified and stable revenue system will be maintained to shelter public services from short-run fluctuations from a particular revenue source. • One-time, limited, or indefinite revenues will be used for capital projects or one-time operating expenditures to ensure that no ongoing service program is unexpectedly lost when such revenues are reduced or discontinued. April 10, 2024 Special Council Workshop Page 38 FINANCIAL MANAGEMENT POLICIES (HIGHLIGHTS) • When considering grants for capital construction or other projects of an acquisition nature, an analysis will be made of the City’s ongoing ability to maintain, repair, or commit the facilities to a specific economic purpose. • To ensure enterprise funds remain self-supporting, user fees/rate structures will be updated periodically to support all current and known future expenses and reserves. • High priority will be given to technology expenditures that will increase efficiencies and reduce future operating costs. • Emphasis is placed on improving individual and workgroup productivity rather than adding to the workforce. April 10, 2024 Special Council Workshop Page 39 FINANCIAL MANAGEMENT POLICIES (HIGHLIGHTS) • Develop and maintain a comprehensive productivity/work measurement program to improve efficiency and effectiveness of service delivery. • Maximize the reporting and analysis of data that demonstrates progress and highlight areas for further refinement. • Investment and Debt Policies (future primer). • Special revenue funds will be created and maintained in accordance with Governmental Accounting Standards Boards (GASB) and reviewed by the City during the budget process. April 10, 2024 Special Council Workshop Page 40  HOW THE BUDGET IS ORGANIZED • Governmental Funds: • General Fund • Special Revenue • Debt Service • Capital Projects * Marked funds also have corresponding capital projects • Proprietary Funds and/or reserve funds. • Enterprise • Internal Service April 10, 2024 Special Council Workshop Page 41  2023-2024 BUDGET BY CATEGORY AND FUND TYPE Revenues: General Fund Special Revenue Debt Service Capital Project Enterprise Internal Service Grand Total Resources (Beg. Fund. Bal.) 5,353,775.14 6,745,701.16 0.00 3,271,767.85 29,550,591.15 13,006,175.98 57,928,011.28 Property Tax 9,615,700.00 9,615,700.00 Sales Taxes 11,025,000.00 3,070,000.00 14,095,000.00 Utility Taxes 5,834,568.00 120,282.00 5,954,850.00 REET 2,000,000.00 2,000,000.00 Other Taxes 17,120.00 90,000.00 107,120.00 Licenses and Permits 1,009,750.00 14,400.00 5,762.00 1,029,912.00 Intergov't Revenues 3,783,420.00 5,303,295.00 260,000.00 6,116,000.00 0.00 15,462,715.00 Charges for Services 784,600.00 631,875.00 56,097,652.00 57,514,127.00 Fines and Penalties 193,300.00 193,300.00 Bond Proceeds 7,867,305.00 0.00 0.00 7,867,305.00 Miscellaneous 754,000.00 148,075.00 25,000.00 944,088.00 54,650.00 1,925,813.00 Interfund Allocations 4,937,600.00 315,000.00 14,002,606.98 19,255,206.98 Transfers 1,605,000.00 5,492,506.00 119,792.00 626,104.00 516,200.00 445,000.00 8,804,602.00 Total Resources and Revenues 52,781,138.14 21,841,134.16 119,792.00 6,182,871.85 93,320,293.15 27,508,432.96 201,753,662.26 Expenses General Fund Special Revenue Debt Service Capital Project Enterprise Internal Service Grand Total Resources (End. Fund. Bal.) 5,492,390.10 4,050,126.99 1,557,717.85 27,393,093.47 11,977,836.13 50,471,164.54 Personnel 25,161,528.00 1,565,947.00 7,666,673.00 4,281,101.00 38,675,249.00 Operating & Maintenance 9,568,691.86 1,930,514.95 0.00 20,453,777.25 4,123,257.66 36,076,241.72 Interfund Charges 3,765,530.18 2,773,183.22 0.00 10,177,391.43 2,276,238.17 18,992,343.00 Debt Service 0.00 119,792.00 15,096,748.00 0.00 15,216,540.00 Capital Outlay 8,313,000.00 8,179,062.00 1,054,050.00 11,566,410.00 4,405,000.00 33,517,522.00 Transfers 479,998.00 3,342,300.00 3,571,104.00 966,200.00 445,000.00 8,804,602.00 Total Resources and Expenses 52,781,138.14 21,841,134.16 119,792.00 6,182,871.85 93,320,293.15 27,508,432.96 201,753,662.26 April 10, 2024 Special Council Workshop Page 42 ALL FUNDS ALL FUNDS 2023-2024 BUDGET BUDGET • General Fund comprises about one-fifth of the budget • Enterprise Funds comprise about half of the budget • Remaining Funds comprise about one-third of the budget. April 10, 2024 Special Council Workshop Page 43 PROGRAM PERFORMANCE BUDGET OAK HARBOR April 10, 2024 Special Council Workshop Page 44 RETHINKING BUDGETING • Partnership between: • Government Finance Officer’s Association (GFOA), • National League of Cities (NLC) • International City/County Management Association (ICMA) • https://www.gfoa.org/rethinking- budgeting April 10, 2024 Special Council Workshop Page 45 April 10, 2024 Special Council Workshop Page 46 April 10, 2024 Special Council Workshop Page 47 April 10, 2024 Special Council Workshop Page 48 April 10, 2024 Special Council Workshop Page 49 April 10, 2024 Special Council Workshop Page 50 INCREMENTAL LINE-ITEM BUDGETING (TRADITIONAL BUDGET) • Most used Budget Style due to its • Every program increases (or simplicity. decreases) automatically. • Simply take last year’s • Little use of goals, strategy, or appropriations and increase (or performance in allocating funds. decrease) by X %. • Little outside input from • Request forms used for items in stakeholders. excess of X %. April 10, 2024 Special Council Workshop Page 51 PROGRAM Anywhere City - Recreation Department PERFORMANCE BUDGET Programs • Cultural Investments • Golf • Groups revenues and expenses into • Swimming programs. • Parks Maintenance • Volunteer Program • Provides relevant and measurable • Library performance measures. April 10, 2024 Special Council Workshop Page 52 PROGRAM PERFORMANCE BUDGET • Golf Program April 10, 2024 Special Council Workshop Page 53 PROGRAM PERFORMANCE BUDGET • Swim Program April 10, 2024 Special Council Workshop Page 54 PROGRAM PERFORMANCE BUDGET • Parks Maintenance April 10, 2024 Special Council Workshop Page 55 April 10, 2024 Special Council Workshop Page 56 April 10, 2024 Special Council Workshop Page 57 NEXT STEPS • Meet with Departments to develop a • Develop program tracking codes in new Service Inventory. ERP system. • Group Service Inventory items into • All expenses (and dedicated revenues) tied programs. to a program code for coverage • Tie dedicated revenues with comparison. expenses. • Allocate staff times to one or more • Allocate Departmental expenses programs (this can be done once per year between programs. or via the new timekeeping system). • Develop meaningful and measurable (and available) performance measurements. April 10, 2024 Special Council Workshop Page 58 PERFORMANCE EXAMPLES April 10, 2024 Special Council Workshop Page 59  Goal Area Short Title Kirkland Example – 1 Fire and Emergency Medical Services Fire/Emergency Med. 2 Recycling and Garbage Collection Recycling/Garbage Council Goals 3 Police Services Police 4 Pedestrian Safety Pedestrian Safety 5 City Parks Parks 6 Protecting Our Natural Environment Environment 7 Recreation Programs and Classes Recreation Programs 8 Support for Arts in the Community Arts 9 Community Events Community Events 10 Emergency Preparedness Preparedness 11 Availability of Sidewalks and Walking Paths Sidewalks/Paths 12 Bike Safety Bike Safety 13 Maintaining Streets Street Maintenance 14 Services for People in Need People in Need 15 Support for Neighborhoods Neighborhoods 16 Managing Traffic Flow Traffic Flow Mgmt. 17 Attracting and Keeping Businesses in Kirkland Attract/Keep Businesses 18 City planning & response to growth (Prev. Zoning and Land Use) Planning/Growth Response 19 Building, Permitting and Inspection Permitting/Inspection 20 Support for an inclusive & welcoming community Inclusive Community 21 Ensuring Affordable Housing Options Affordable Housing April 10, 2024 Special Council Workshop Page 60 Kirkland Example – Survey Quad • Stars – Residents view these as very important and that the City performs at a high level. Most valued strengths. • Imperatives – Important to the residents. Opportunities for improvement. • Lesser Priorities – Not a priority, but City should always strive to improve. • Successes – Residents feel that these are doing well but are believed to be less important. Not major drivers of satisfaction with the City. April 10, 2024 Special Council Workshop Page 61 Bellevue Example – Benchmarking April 10, 2024 Special Council Workshop Page 62 Bellevue Example – Council Goals Importance/Performance April 10, 2024 Special Council Workshop Page 63 Bellevue Example – Graphed Survey Results April 10, 2024 Special Council Workshop Page 64 ECONOMIC DEVELOPMENT EXAMPLE #1 April 10, 2024 Special Council Workshop Page 65 ECONOMIC DEVELOPMENT EXAMPLE #2 April 10, 2024 Special Council Workshop Page 66 TRANS- PARENCY EXAMPLE April 10, 2024 Special Council Workshop Page 67 Financial Transparency Example April 10, 2024 Special Council Workshop Page 68 COUNCIL FINANCE & BUDGET PRIMER – PART 1 UPCOMING PARTS: • PROPERTY & SALES TAXES • OTHER REVENUES & RESOURCES • EXPENSE CATEGORIES AND DETAILS • PROJECT FUNDING AND BUDGETING • INVESTMENTS April 10, 2024 Special Council Workshop Page 69