City of Brunswick, MDProposed FY2014 General Government Budget

By Accountant Kimberly Miller

Discussion Item Three – Expenses by department

Budget OverviewProposed FY 2014 General Government

Discussion Item One – Revenue sources & assumptionsWhere the money comes from…

Discussion Item Two – Expense categories & impactsWhere the money goes…

Discussion Item Four – General Fund transfer

Discussion Item Five – Capital Project Fund Revenue & Expense & Capital Improvement Program 6 year Goal

1.

2.

3.

4.

5.

General Fund Revenue

Fines & Forfeitures, Rental Income, Employee Paid Heath Insurance, a credit for State Retirement, and Event Revenues make up the bulk

of the Misc. Revenue Source

Comparison to FY 2013 An overall 2% decrease in revenues

Revenue Source 2013 2014 Diff % Change

Taxes 2,500,280 2,353,767 -146,513 -6%

Intergovernmental 809,695 949,093 139,398 17%

Misc. Revenue 228,126 166,892 -61,234 -27%

Utility Revenue 176,500 176,500 0 none

User Fees 114,850 109,650 -5,200 -5%

Grants & Other 79,735 69,995 -9,740 -12%

Franchise Fees 73,962 73,962 0 none

TOTAL REVENUES 3,983,148 3,899,859 -83,289 -2%

General Fund Expenses

Comparison to FY 2013 An overall 1% increase in expenses

Expense Category 2013 2014 Diff % Change

Public Works 1,060,915 1,066,550 5,635 1%

Police Department 1,004,592 1,013,698 9,106 1%

Finance & Admin 537,199 568,216 31,017 6%

Waste Collection 325,000 328,500 3,500 1%

Transfer Out to CP 278,000 227,687 -50,313 -18%

Planning & Zoning 171,244 192,925 21,681 13%

Rec, Parks, Camp 112,685 123,124 10,439 9%

Other 110,955 98,780 -12,175 -11%

Mayor/Council, EDC 62,171 96,486 34,315 55%

Swimming Pool 75,480 76,180 700 1%

TOTAL EXPENSES 3,738,241 3,792,146 53,905 1%

1. Despite an overall 44% premium increase in Medical Insurance, the City’s

absorbed cost is much less. To offset the increase in premium and to correct over

utilization of the plan, the City will fund $400 per employee as opposed to the full

deductible amount in a Health Reimbursement Account. Please note that the

numbers presented below are City-wide, which includes 10 Enterprise Fund

employees.

2. To create competitive salary & benefit packages for recruitment & retention of

employees and to offset rising health care costs, the proposed budget includes a

1.55% Cost of Living Adjustment. This is the 4 month average of Consumer Price

Index data published by the Bureau of Labor Statistics.

FY 2014 Expense Impacts

CITY PAID EXPENSES

MEDICAL PREM

HRA

FY 2013 $368,095 $66,000

FY 2014 $426,066 $13,200

DIFFERENCE $57,971 $(52,800)

MD State Retirement will give a 2.069%

COLA

Personnel Expense ChangesData below does not include seasonal positions & M&C

Currently, 3 full-time& 3 part-time employees; FY14 includes 5 full-time & 1 part-time.

FY 14 includes $30,000 in Project Outlay for new Accounting software. Our current software was purchased in 2004 & is very outdated. More importantly, last year approximately $250,000 in checks disappeared as a result of a system glitch.

Added Information Technology account to update computer processing units. XP will no longer be supported by Windows.

Finance & Admin HighlightsDepartment 504, page 6 in Budget Report

14% increase in Consultant Fees for GIS.

Added Utilities for CASS building, no longer accounted for in Contribution Dept. (pg.26)

Added Information Technology account to update computer processing units.

Increased Dues/Subscriptions & Training by $750 each for International Property Maintenance Code

Planning & Zoning HighlightsDepartment 507, page 9 in Budget Report

Added account for Shift Differential pay ($0.75 hr x 11 hr shift x 365 days)

Added account for Clothing/Shoe allowance, increased $40 per officer

Added IT account to upgrade desktops & to add a server for new phone system

Project Outlay increased $1,000; includes the purchase of ballistic vests, a marked cruiser & accessories

Police Department HighlightsDepartment 520, page 10 in Budget Report

Maryland State Police Aid

should increase to

$58,395, will help offset

these expenses

Currently,12 employees; FY14 budget includes an additional position.

FY 14 budget includes $16,300 to lease/purchase a new 2013 John Deere backhoe. The lease is for 5 years with Jesco inc.

Project Outlay appears to decrease drastically; however, this is offset by increased expenses in the Tools account & the capital lease purchase described above. $6,000 for trailer purchase in FY14.

$14,700 in Tools for plow blade & cab for ATV, heavy equipment tires, a grapple, and other small tools/equipment under $5,000 capitalization threshold.

Public Works HighlightsDepartment 530, page 13 in Budget Report

Added account for Park Equipment Maintenance & City Park Building Improvements. Budgeted amounts decided based on historical trends.

Park Renewal account includes expenses related to Adopt A Park

Decreased Operating Expense & Misc. Event Expenses by a total of $5,000, savings help offset increased Park expenses

Increased Veteran’s Day Parade by $2,000, also offset by above savings

Parks, Rec, Pool & CampgroundDept 540, 541, 543, 545 pgs. 16-18, 20

Insurance is less than prior years based on allocation of full-time equivalents and not actual # of employees.

Able to increase Parts & Supplies to be more in line with historical actuals as a result of above decrease

ParksParks

REC

Pool

Decreased Parts & Supplies, used to help offset new account created for General Campground Maintenance.

Added IT account, includes expenses related to WIFI set-up

Camp-ground

Account added in M&C Dept. 501 for Sustainability Efforts- $3,500. (pg. 4)

Account added in EDC Dept. 560 for TRIPP grant expense tracking purposes. City will spend $3,000 for $11,000 worth of improvements. (pg. 21)

Main Street funding was moved to EDC as opposed to Contributions Dept. 580 (pg. 24). Finance Committee approved $14,000 of the $17,500 requested.

Finance Committee also approved $14,250 in Contributions to various organizations, includes an added amount of $2,000 for Civic Contributions. (pg. 24)

Other Notable ChangesGeneral Government Expenses

We are in the process of wrapping up various Bond funded projects as well as Capital Projects funded by Capital Project Fund balance. As a result of this, the transfer amount is 18% less than FY13.

Staff along with Mayor & Council will work on prioritizing future Capital Projects to utilize the projected $107,713 General Fund surplus.

General Fund Transfer OutDepartment 600, page 25

1. Staff is currently working on a 6 year Capital Improvement Program

(CIP). Preliminary documentation regarding CIP process changes has

been distributed to M&C.

2. The bulk of the revenue in Fund 30 is related to grants and a transfer

from the GF. All of the revenue items have an offsetting expense

item which leads to a balance budget. (pg. 1)

3. Staff is working on various projects, as such, some projects have

been re-budgeted for in FY14. These amounts will be amended after

all invoices for June 30, 2013 have been paid.

a. Gum Springs Bridge & Culvert (bond funded)

b. City Hall Building Improvements & Possible Senior Center Facade

Updates ($140,000 included in prior year transfers)

c. Blacktop Improvements ($70,000 previously transferred)

$221,000 funded in FY14

General Government- Revenue & Projects

FY 2014 Capital Project Fund

1. Several grants were approved late in FY13 so the above logic used

with project expenses was also used for budgeting grant revenues

& expenses.

a. Bike Path Amenities- State Highway Administration $35,108 (pg.

6)

b. Caboose/WB Tower- Community Legacy $66,000 (pg. 6)

c. Stream Restoration- DNR $41,223 (pg. 6)

2. All grants less the POS Splash Park Grant are 100% funding. The

POS grant requires a 25% match; of the $9,375 required, $4,688

was previously transferred & $4,687 is included in the FY14

transfer. (pg. 7)

General Government- Grants

FY 2014 Capital Project Fund

What’s next?General Fund Budget Vote anticipated on June 11th

Water & Sewer Funds will be presented in the next few weeks.

Questions? Comments…