Public Hearing-Budget Amendment

MEMORANDUM TO: Mayor and City Council DATE: January 13, 2022 FROM: Duane Huffman RE: FY 2022 Budget Amendments _______________________________________________________________________________ This memo is intended to outline issues for consideration for amendments to the fiscal year ending June 30, 2022. These items will be discussed at the January 18th council meeting, with potential action at subsequent meetings. The changes can be categorized into three broad areas: A. New Issues; B. Previously Discussed/Planned Issues; and, C. Technical Issues. New Issues 1. Golf Course – Lakeside just finished its second very strong year in a row. While growth in play was certainly affected by outside circumstances, the course was well-positioned for this growth, both in terms of the management and course conditions. To continue this success, staff recommends the council consider the following items: a. Mechanic/3rd Maintenance Position. Estimated Annual Cost $75,000. Prior to 2010, the golf course operated for many years with three full-time employees for golf course maintenance. Financial circumstances necessitated that the course pare down, for a time to just one full-time employee, and then again up to two. For many years now course staff has recommended bringing a third employee back for the position of mechanic. Staff is bringing it for the council’s consideration now due to the combination of improved financial standing and the difficulty in finding reliable part- time mechanics. b. Equipment. While not an FY 22 budget item, staff is requesting permission to order equipment now so that it will be here in time for the 2023 season of play (it will take between 9-12 months for orders to be completed). An equipment inventory/replacement schedule is attached to this memo. The estimated cost for the 3 needed mowers is $150K (one-time, but subsequent years will have other mowers that will need to be replaced). In the past, the city borrowed for similar expenses, but staff recommends using available golf funds. For reference and context, attached to this memo is list of short-term and long-terms needs and projects for the golf course. Most of these items will be considered as part of the FY 23 budget and beyond. Also attached are the cash flow statements for the last two fiscal years; FY 21 shows a cash flow increase of $421K and FY 20 shows an increase of $193K. 550 North 800 West, West Bountiful, UT 84087 (801) 292-4486  2. Public Works Wages. Estimated Annual Cost $30K. Similar to the recent discussion with police wages, public works positions are currently in high demand. This is due primarily to several years of very high construction activity along the Wasatch Front as well as low unemployment rates in general. In reviewing current wages, management staff is recommending a $2/hr increase across the board for current frontline public works employees. This would be funded through the General Fund, Water Fund, Storm Water Fund, and Solid Waste Fund. 3. Inflationary Cost Increases. Staff generally tries to manage small increases in costs within existing budgets; however, some items such as fuel have increased higher and faster than anticipated. A detailed list of this accounts will be provided in the future. 4. Capital Facilities Plans. Staff is currently soliciting proposals for updates to the city’s transportation, water, and storm water capital facilities plans. These plans as well as work necessary to update impact fees are eligible impact fee expenses. Previously Discussed/Planned Issues 5. Public Works Facility. The budget amendment will recognize the $6 million bond as well as expenses for the facility that will be completed this year (design work, and some site work). 6. Police Wages. The budget amendment will adjust for the recent change in police wages. It is anticipated that this will be about $94,000 for the rest of the year. 7. Electronic Speed Limit Signs. The budget will adjust for the $11,600 approved by the council for four new electronic speed limit signs Technical Adjustments 8. The Porter Lane project will be moved from FY 21 to FY 22. 9. Certain expenses related to police vehicles will be moved from FY 21 to FY 22. 10. Funds from completed capital projects will be closed out and transferred to the capital projects fund. 11. The Storm Water Fund will receive a transfer from the capital projects fund to account for the 800 W project. 550 North 800 West, West Bountiful, UT 84087 (801) 292-4486  MOWERS * Most course equate 1 hour of use equals between 55 and 60 miles a mower that has 4000 hours is equal to an automobile with 220,000 miles TORO 3150 MOWER TYPE serial/model number year hours HRS/YR useful life replacement notes VERTICUT 04358-316000849 2016 822 165 4000 HRS 2031 GREENS 04358-313000662 2013 1768 300 4000HRS 2028 GREENS 04358-313000677 2013 2575 300 4000 HRS 2026 TEE 04358-313000674 2013 2804 350 4000 HRS 2026 TEE 04357-240000728 2004 4067 350 4000 HRS 2020 motor rebuilt in 2020, still has issues ROLLER 04357-250000759 2005 4565 200 4000 HRS 2020 motor replaced in 2019 MOWER TYPE TORO 5410 year hours HRS/YR useful life replacement notes FAIRWAY 03672A-314090146 2014 2684 383 4500 hours 2025 runs well MOWER TYPE TORO 5400 year hours HRS/YR useful life replacement notes RANGE TEE 03543-230000315 2003 4921 200 4500 hours 2021 mower was given to us in 2016 FAIRWAY 03543-260000312 2006 5222 250 4500 hours 2021 mower purchased in 2017 $1000 MOWER TYPE TORO 4700 year hours HRS/YR useful life replacement notes ROUGH 30858N-314000115 2014 3550 440 4500 2024 consistantly has problems MOWER TYPE TORO 3500 year hours HRS/YR useful life replacement notes submerged in lake in 2017, consistanlty has ROUGH 80809-313000101 2013 3606 450 4000 2021 problems MOWER TYPE TORO 328 year hours HRS/YR useful life replacement notes very old mower, has issues but low use does not ROUGH 30626-2400161 90'S 3618 150 4500 ? warrant replacement  TRANSPORT MOWER TYPE TORO WORKMAN year hours HRS/YR useful life replacement notes LG TRANSPORT 07368-313000116 2013 1890 230 4000 2031 runs well MOWER TYPE JOHN DEERE PRO GATOR year hours HRS/YR useful life replacement notes LG TRANSPORT TC203AT010098 2008 2694 200 4500 2029 runs well MOWER TYPE JOHN DEERE GATOR TS year hours HRS/YR useful life replacement notes SM TRANSPORT 1MO4X2SJHGM111692 2016 1329 265 4000 2031 runs well MOWER TYPE CLUB CAR TURF II year hours HRS/YR useful life replacement notes GOLF CART RG0745-834053 2008 2672 205 17 AS NEEDED runs well MOWER TYPE TORO MULTIPRO 1250 year hours HRS/YR useful life replacement notes extremly important equipment with a lot of issues. GREENS SPRAYER 41106-210000158 2001 2423 121 3000 2023 Purchased used by Marcus Fenton 2013? YAMAHA CARTS 4 EARLY 2000"S CARTS USED FOR MAINTENANCE TASKS AS NEEDED a couple need to be replaced, possibly use rental TRACTOR MOWER TYPE KUBOTA year hours HRS/YR useful life replacement notes LOADER TRACTOR ? 2696 ? ? underpowered to load MOWER TYPE NEW HOLLAND year hours HRS/YR useful life replacement notes IMPLEMENT TRACTOR UX23825 AX413A ? 2646 ? ? runs well MISCELLANEOUS MOWER TYPE TORO 648 year hours HRS/YR useful life replacement notes AERATOR 09200-250000471 2005 711 80 1500 AS NEEDED runs well MOWER TYPE TORO PROFORCE BLOWER year hours HRS/YR useful life replacement notes DEBRIS BLOWER 44538-313000282 2013 1083 135 4000 2040? runs well, we could use a second blower MOWER TYPE TURFCO TOPDRESSER year hours HRS/YR useful life replacement notes TOPDRESSER 85809-R00310 2013? 15 YEARS 2028 runs well MOWER TYPE TORO SAND PRO year hours HRS/YR useful life replacement notes new motor in 2018, almost adequate, many BUNKER RAKE 08880-00793 1987 ? 4000 PAST DUE problems MOWER TYPE WOOD CHIPPER year hours HRS/YR useful life replacement notes WOOD CHIPPER BC1000 XL 2004 520 30 4000 ? runs well MOWER TYPE CASE BACHOE year hours HRS/YR useful life replacement notes BACK HOE 580 SUPER M 2 - N6C411255 2009 2249 187 13K-19K HRS 2035? runs well MOWER TYPE TEREX MINI EXCAVATOR year hours HRS/YR useful life replacement notes 58 HR 13 001300/0752 2004 980 57 runs well REPLACEMENT SCHEDULE 2022/23 TORO 3150 YR HOURS COST 04357-250000759 2005 4565 $51K TORO 5400 03543-230000315 2003 4921 $56k TORO 3500 80809-313000101 2013 3606 $43K 2023/24 TORO 3150 04357-240000728 2004 4067 $40-45k TORO MULTIPRO 1250 41106-210000158 2010 2423 $40K TORO SAND PRO 08880-00793 1987 ? $30K 2024/2025 TORO 4700 30858N-314000115 2014 3550 $65K TORO 5400 03543-260000312 2006 5222 $56K 2025/26 ?????????? 26/27 TORO 3150 04358-313000677 2013 2575 $40-45K 04358-313000674 2013 2804 40-45K  Lakeside Golf Course Needs Short Term Long Term 1. Mechanic/ 3rd Full Time Employee 1. Café Extension/ Building Update 2. Driving Range Net/Pole Update 2. East Border Fence Along Trail 3. #13 Tee Box Cart Path Repair 3. Pro Shop/Café Carpet Update 4. Tee Boxes 4. #9 Cart Path Extension 5. Artificial Turf Driving Range Tee Box 6. Equipment Replacement* Mechanic/ 3rd Full Time Maintenance Employee - Due to the increase in play, the need to keep up with the day-to-day grounds work and the amount of maintenance needed for carts and other equipment, we could greatly use another Full-Time Employee. We have struggled finding a mechanic that is willing to work part time over the past few years. Driving Range Net/Pole Update – The average lifespan of the driving range poles is around 25 years. We are approaching 30 on our Wood Poles. We need to fix the net and update the poles on the entire fence line. It’s also staff’s recommendation to extend the fence further to the east. #13 Tee Box Cart Path Repair – This spot is the worst cart path on the golf course. The tree roots have made the path almost undrivable. We need to solve the problem with the trees and the cart path as well. Tee Boxes – We will continue to update, level, and repair our Tee Boxes on the golf course. Driving Range Artificial Turf Teeing Area - With the increase demand on the Driving Range during non- growing-months, we’d like to add an artificial hitting area on the back of the driving range tee area. Not only could this help our turf but could allow us to keep the driving range open more during the spring when it’s very wet. Equipment Replacement – We need to follow an equipment replacement plan to stay up to date with maintenance equipment to maintain our excellent course conditions. Café Extension/ Building Update – The ability to host larger parties for tournaments and other events would help us increase revenue. Currently it’s difficult to host larger groups because of not being able to seat groups larger than 80 in one area. (Half inside/half outside) Pro Shop/Café Carpet Update – Our current carpet is very outdated and wearing down in high traffic areas. We could benefit from an improvement in our appearance in the building like this. East Border Fence Line – The last couple years we have had an increase in vandalism and traffic on the course during our closed times. This is predominately on the holes closest to the trail. To prevent this, we would install a vinal fence like the one along the road on 1100 West. #9 Cart Path Extension – When the conditions are wet, #9 is one of our worst draining holes. This causes us to not allow carts more because there’s nowhere to driving on #9 when the conditions are wet. We would like to see a cart path extension from the tee box to green. The course could allow carts more often after large precipitation times.  West Bountiful City Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2021 Business-Type Activities - Enterprise Funds Water Solid Storm Golf Utility Waste Drain Course Total Cash flows from operating activities Receipts from customers and users $ 1,426,499 427,624 104,858 1,404,821 3,363,802 Payments to suppliers of goods or services (172,027) (436,309) (169,765) (433,811) (1,211,912) Payments to employees and related benefits (458,059) (18,128) (61,019) (558,805) (1,096,011) Net cash provided (used) by operating activities 796,413 (26,813) (125,926) 412,205 1,055,879 Cash flows from noncapital financing activities Transfers in (out) - - - 31,500 31,500 Net cash provided (used) by noncapital financing activities - - - 31,500 31,500 Cash flows from capital and related financing activities Acquisition and construction of capital assets (1,091,179) - 92,608 (25,700) (1,024,271) Grants - - - 48,482 48,482 Proceeds from sales of capital assets 86,723 - - - 86,723 Impact fees received 150,325 - 18,550 - 168,875 Principal paid on long-term debt (273,000) - - (39,032) (312,032) Interest paid (67,951) - - (6,280) (74,231) Net cash provided (used) by capital and related financing activities (1,195,082) - 111,158 (22,530) (1,106,454) Cash flows from investing activities Interest on cash and investments 33,905 2,017 1,162 28 37,112 Net cash provided (used) by investing activities 33,905 2,017 1,162 28 37,112 Net increase (decrease) in cash and cash equivalents (364,764) (24,796) (13,606) 421,203 18,037 Cash and cash equivalents - beginning 4,971,158 486,629 107,364 422,264 5,987,415 Cash and cash equivalents - ending $ 4,606,394 $ 461,833 $ 93,758 $ 843,467 $ 6,005,452 Reconciliation of operating income to net cash provided (used) by operating activities Earnings (loss) from operations $ 575,357 (30,265) (33,267) 312,703 824,528 Adjustments to reconcile earnings (loss) provided (used) by operating activities: Depreciation expense 246,340 369 68,167 102,557 417,433 Changes in assets and liabilities (Increase) decrease in accounts receivable, net 28,106 810 311 - 29,227 (Increase) decrease prepaid expenses (19,327) - - (1,308) (20,635) (Increase) decrease inventories (21,533) - - 1,628 (19,905) (Increase) decrease deferred outflows relating to pensions 2,329 173 193 (58,772) (56,077) Increase (decrease) accounts payable 141,053 876 (155,451) 21,098 7,576 Increase (decrease) accrued liabilities 1,732 123 250 5,343 7,448 Increase (decrease) unearned revenue - - - (24,019) (24,019) Increase (decrease) compensated absences (22,873) - - 32,164 9,291 Increase (decrease) customer deposits 1,641 - - - 1,641 Increase (decrease) net pension liability (64,684) (4,310) (9,504) (72,818) (151,316) Increase (decrease) claims outstanding (160) - - - (160) Increase (decrease) deferred inflows relating to pensions (71,568) 5,411 3,375 93,629 30,847 Total adjustments 221,056 3,452 (92,659) 99,502 231,351 Net cash provided (used) by operating activities $ 796,413 (26,813) (125,926) 412,205 1,055,879 Noncash capital and financing activities: Contribution of capital assets $ 530,000 - 567,000 - 1,097,000 The notes to the financial statements are an integral part of this statement. 26  WEST BOUNTIFUL CITY STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS For The Year Ended June 30, 2020 Business-type Activities - Enterprise Funds Water Solid Waste Storm Drain Golf Course Total Cash Flows From Operating Activities Receipts from customers and users $ 1,374,139 $ 407,021 $ 101,251 $ 1,123,565 $ 3,005,976 Receipts from customer deposits 4,234 - - - 4,234 Payments to suppliers of goods or services (239,840) (406,697) 115,771 (422,480) (953,246) Payments to employees and related benefits (303,382) (17,023) (59,502) (471,008) (850,915) Net cash flows from operating activities 835,151 (16,699) 157,520 230,077 1,206,049 Cash Flows From Non-Capital Financing Activities Transfers in - - - 34,000 34,000 Due to/from other funds (43,836) - 43,836 - - Net cash flows from non-capital financing activities (43,836) - 43,836 34,000 34,000 Cash Flows From Capital and Related Financing Activities Acquisition and construction of capital assets (1,788,706) - (373,236) (31,287) (2,193,229) Proceeds from sales of capital assets 129,865 - - - 129,865 Impact fees received 263,727 - 17,351 - 281,078 Proceeds from issuance of long-term debt - - - 51,099 51,099 Principal paid on long-term debt (265,000) - - (62,170) (327,170) Interest paid (74,894) - - (28,116) (103,010) Net cash flows from capital and related financing activities (1,735,008) - (355,885) (70,474) (2,161,367) Cash Flows From Investing Activities Interest on investments 97,859 9,781 3,621 101 111,362 Net cash flows from investing activities 97,859 9,781 3,621 101 111,362 Net Increase (Decrease) In Cash and Cash Equivalents (845,834) (6,918) (150,908) 193,704 (809,956) Cash and Cash Equivalents, Beginning 5,775,105 493,547 302,108 228,560 6,799,320 Cash and Cash Equivalents, Ending $ 4,929,271 $ 486,629 $ 151,200 $ 422,264 $ 5,989,364 The notes to the basic financial statements are an integral part of this statement. 24