New Fairview City Council Strategic Planning Workshop May 2020

City of New Fairview City Council Strategic Planning and Budget Workshop May 16, 2020 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Agenda 9:00 Welcome, Refreshments, Call the meeting to order 9:15 Ice Breaker 9:20 Council Procedures and Decorum Policy 10:20 Break 10:40 Results of the Strategic Planning Questionnaire 11:30 Introduction to FY 2021 Budget-in-Progress 12:30 Working Lunch 12:30 Five-Year Financial Plan 1:30 Street Program/Debt Service Discussion 2:45 Multi-voting goal setting 3:00 Wrap Up, Adjourn This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Ice Breaker The Paper Clip Exercise Write down everything you can think of that you can use a paper clip for Example, a fishhook. This presentation is part of a workshop with discussion. These slides should not be taken out of context.

We will now go around the room taking turns naming something off your list. If someone else announces an item on your list before you do, cross it off your list. Paper Clip Exercise This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Paper Clip Exercise Count your items. How many did we come up with together? We are smarter together then as individuals. Let s work together. This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Council Procedures and Decorum Policy Provides structure and certainty to Council meetings for Council, staff and citizens. Presents a professional appearance for citizens, developers and future residents. Allows work to get done in an orderly manner. Provides rules for Council to monitor itself and be respectful of one another. This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Strategic Planning Questionnaire Results Core Values Speaking with staff, we identified these seven core values: Citizen-oriented Transparent Honest Reliable Teamwork Life-long learning This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Strategic Planning Questionnaire Results Strengths From the community engagement questionnaire these strengths were identified: Country living, rural lifestyle Voting site City hours of service Kind neighbors School district Neighborhoods Low crime rate This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Strategic Planning Questionnaire Results Weaknesses These weaknesses were identified: Streets Water quality Perceived lack of transparency at City Hall Specific crime No City police or fire departments Perceived lack of accountability No community events Lack of businesses and commercial tax base This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Strategic Planning Questionnaire Results Opportunities These opportunities were identified: Growth, tax base Rehabilitate streets Improve crime control City park City-wide events Planning and Zoning Commission Better communication with citizens Use of property around City Hall Business corridor along US 287 Better public safety This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Strategic Planning Questionnaire Results Threats/Challenges These opportunities were identified: Growth Water issues Lack of oversight Crime Traffic Brush fires. This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Budget-in-Progress Date April 1 April 30 April 1 April 30 April 1 April 30 May 4 May 16 June 20 July 18 July 24 August 3 August 3 Event Prepare Budget-in-Progress Prepare Five-Year Financial Plan Prepare Street Program scenarios Street Reconstruction Program Presentation Council Strategic Planning and Budget Workshop Budget Workshop Budget Workshop (Optional) Receive Certified Tax Roll from WCAD Present Recommended Budget to City Council Call for bond election for November 4, 2020 (Optional) Responsible Party City Administrator City Administrator City Administrator Pacheco Koch City Administrator, Council City Administrator, Council City Administrator, Council WCAD City Administrator City Administrator, Council August 17 August 20 September 8 September 21 Set a Public Hearing for the Tax Rate, Budget Publish notice of Public Hearings Public Hearing on the Tax Rate and Budget Approve the FY 2021 Budget City Administrator, Council City Secretary City Administrator, Council City Council This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Budget-in-Progress Revenue FY 2019 Actual FY 2020 Amended FY 2021 Recomm. Revenue Current Property Tax Delinquent Property Tax Penalties Sales/Beverage Tax Licenses and Permits Franchise Fees Court Fines Other Revenue TOTAL REVENUE 500,531 10,215 1,532 100,000 200,000 46,235 15,000 80,000 953,513 500,531 10,215 100,000 200,000 47,000 15,000 415,000 1,289,278 1,532 220,395 129,344 32,646 46,234 12,084 87 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Revenue Assumptions Property Taxes No change FY 2021 Budget-in- Progress Revenue Sales Tax Reduce by $30,000 due to COVID-19 Licenses and Permits Assumes 100 homes built Franchise Fees 2% growth Other Revenue Increase pass through funds from developers for building permits. Court Fines No change. This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Budget-in-Progress Expenditures Personnel Worksheets Health Insurance Life & ADD Rate Annual Overtime Longevity Total TMRS FICA Dental Vision STD LTD WC Total Administration City Administrator 45.00 93,600 100 93,700 10,307 7,168 8,200 500 165 320 425 206 300 121,291 City Secretary City Secretary 28.33 58,926 748 59,674 6,564 4,565 8,200 500 165 320 425 206 200 80,820 Court City Clerk 16.22 33,738 1,000 100 34,838 3,832 2,665 8,200 500 165 320 425 206 150 51,301 Public Works Street Supt. 32.50 67,600 253,864 5,000 6,000 100 72,700 260,912 7,997 28,700 5,562 19,960 8,200 32,800 500 165 660 320 425 206 824 1,100 1,750 97,175 350,586 Totals 1,048 2,000 1,280 1,700 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Budget-in-Progress Expenditures FY 2019 Actual FY 2020 Amended FY 2021 Recomm. Expenditures Payroll & Benefits Contract Labor Supplies & Services Capital Outlay Debt Service TOTAL EXPENDITURES 202,524 89,770 74,179 33,524 847,388 113,182 431,237 297,969 1,253,585 354,945 637,600 261,040 - - - - 5,051 5,000 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Assumptions Personnel Add City Administrator, Street Superintendent FY 2021 Budget-in- Progress Expenditures Step raises for City Secretary and City Clerk (4%), add health insurance. Add pass through expense for building permits for 100 new homes. This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Expenditures Benefits Per Employee Health Insurance Single Coverage for Employee Only - $8,200 Dental - $500 Vision - $165 Short-term disability - $320 Long-term disability - $425 Life Insurance ($25,000) - $206 Total for 4 employees - $39,264 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Five-Year Financial Plan Revenue Assumptions Property Tax FY 2021 No Change. Covin-19 Pandemic may cause appraisal districts to leave flat. FY 2022 - $3,000,000 new value added from new houses + 2% growth FY 2023 - $27,500,000 new growth from 100 new homes w/average value of $275,000 + 2% FY 2024 - $27,500,000 new growth from 100 new homes w/average value of $275,000 + 2% FY 2025 - $41,250,000 new growth from 150 new homes w/average value of $275,000 + 2% This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Five-Year Financial Plan Revenue Assumptions Sales Tax Reduce $30,000 in FY 2021, return to normal in FY 2022, 2% growth per year FY 2023 to FY 2025. Assumes no new businesses very conservative approach. Licenses and Permits Assumes number of homes to be built, City s share after paying contract inspectors and Building Official. Franchise Fees assumes 2% growth based on new households very conservative. Other Revenue Pass-thru to/from developers to contract consultants. If activity/revenue increases or decreases expenses are offset by a like amount. Court Fines No change. This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Add Street Superintendent (reduce contract labor expense) FY 2023 Add Police Chief FY 2024 Add Police Officer FY 2025 Add 2nd Police Officer and Public Works Maintenance Worker (reduce contract labor expense) Five-Year Financial Plan Expenditure Assumptions This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Supplies & Services 1% increase year-to- year FY 2023 Add $5000 for Police Chief FY 2024 Add $5000 for Police Officer FY 2025 Add $5000 each for 2nd Police Officer and PW Maintenance Worker Five-Year Financial Plan Expenditure Assumptions This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Lease Payments/Debt Service FY 2022 - $50,000 Property Tax for I&S each year forward FY 2023 Vehicle for Police Chief FY 2024 Vehicle for Police Officer FY 2025 Vehicle for 2nd Police Officer and PW Maintenance Worker Contract Labor No change Five-Year Financial Plan Expenditure Assumptions This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Pacheco Koch did an analysis of the 25 worst sections of street in town Some need milling and rework the base (3), some pothole patching and seal coat (7), and the remainder need full reconstruction (15). A little more than 35,000 linear feet at an estimated cost of $2.4 million. Street Program/Debt Service Discussion This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Funding Options Pay-as-you-go 25 years at $100,000/year Bond election or Certificates of Obligation? 3-Year or 4-Year Program? 10 Year of 15 Year Payout? This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Impact on the Tax Rate Tax Rate Comparison Street Program I&S Only 3-Year Program, 10-Year Payout FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 - 0.05 0.10 0.12 0.10 3-Year Program, 15-Year Payout - 0.02 0.06 0.08 0.07 4-Year Program, 10-Year Payout - 0.01 0.05 0.08 0.10 4-Year Program, 15-Year Payout - - 0.03 0.05 0.06 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Impact on the Tax Rate Tax Rate Comparison Street Program Total Tax Rate 3-Year Program, 10-Year Payout FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 0.30 0.35 0.40 0.42 0.40 3-Year Program, 15-Year Payout 0.30 0.32 0.36 0.38 0.37 4-Year Program, 10-Year Payout 0.30 0.31 0.35 0.38 0.40 4-Year Program, 15-Year Payout 0.30 0.30 0.33 0.35 0.36 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Total Costs Comparison Comparison of Interest and Fees Debt Interest & Fees Total 3-Year Program, 10-Year Payout 2,375,400 973,060 3,348,460 3-Year Program, 15-Year Payout 2,375,400 1,177,243 3,552,643 4-Year Program, 10-Year Payout 2,375,400 961,748 3,337,148 4-Year Program, 15-Year Payout 2,375,400 1,165,241 3,540,641 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Funding Options Pay-as-you-go? Bond election or Certificates of Obligation? 3-Year or 4-Year Program? 10 Year of 15 Year Payout? This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Goal Setting Each Council member will receive 15 dots, 5 each of red, blue and green. Red = 3 points, Blue = 4 Points and Green = 5 Points Place dots by your priorities. You can place as many dots as you like by any priority. Dots will be totaled for points (priority) and number of dots (intensity). Staff will use the results to put together a 2-year work plan to be approved at a future meeting This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Goals _____ Staff Retention and Turnover _____ Police/Safe Community _____ Infrastructure Streets _____ Park Development _____ Infrastructure Water/Sewer _____ Recreation Opportunities _____ Fire/EMS _____ Community Planning _____ Economic Development/Jobs _____ Financial Sustainability This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Community Results from Questionnaire Priorities - Community Survey Streets Police Fire/EMS Water/Sewer Financial Sustainability Park Development Community Planning Economic Development Recreation Staff Retention Total Avg 2.077 3.538 3.692 4.385 5.462 6.077 6.462 6.538 6.923 9.846 27 46 48 57 71 79 84 85 90 128 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Wrap Up Staff will prepare a strategic plan and work plan for Council approval. Plan will be based on the feedback from this meeting. Staff will prepare for the sale of debt as directed. Once approved by Council all will be posted to the City s website. Progress will be reported regularly. Budget workshops will be scheduled and posted. Questions? Thank you for your time today! This presentation is part of a workshop with discussion. These slides should not be taken out of context.