TOWN OF DEWEY-HUMBOLDT P.O. BOX 69 HUMBOLDT, AZ 86329 Phone 928-632-8562 ▪ Fax 928-632-7365 Dewey-Humboldt, Arizona Annual Budget Fiscal Year 2014-2015 Town of Dewey-Humboldt Annual Budget Fiscal Year 2014-2015 Town Council Terry Nolan, Mayor Arlene Alen, Vice Mayor Jack Hamilton Mark McBrady Dennis Repan Sonya Williams-Rowe Nancy Wright 1 Organizational Chart Citizens of Dewey-Humboldt Town Council Town Manager Boards, Commissions & Committees Legal Magistrate Court Court Clerk Community Development & Library Town Clerk & Records Management Public Safety Public Works Finance Contact Town Hall at 928.632.7362 2 Table of Contents User’s Guide ........................................................................................................................................... 5 Message from Town Staff....................................................................................................................... 6 Chapter 1: Budget Overview .................................................................................................................. 7 Summary of Changes in Major Programs and Projects ...................................................................... 7 Personnel Detail ................................................................................................................................ 11 Town Council .................................................................................................................................... 12 Town Clerk and Records Management............................................................................................. 12 Community Development ................................................................................................................. 13 Public Safety...................................................................................................................................... 13 Municipal Court ................................................................................................................................ 14 Finance .............................................................................................................................................. 14 Engineering ....................................................................................................................................... 15 Capital Expenditures ......................................................................................................................... 15 Summary of Changes in Major Revenues ......................................................................................... 16 Projected Changes in Fund Balances ................................................................................................ 17 Budget Process.................................................................................................................................. 18 Budget Calendar ............................................................................................................................... 19 Budget Resolution............................................................................................................................. 20 Chapter 2: Town Council Department.................................................................................................. 21 Town Council .................................................................................................................................... 22 Town Boards, Commissions, and Committees ................................................................................. 24 Town Manager .................................................................................................................................. 25 Legal Counsel Services ...................................................................................................................... 25 Chapter 3: Finance Department ........................................................................................................... 27 Chapter 4: Enterprise Technology ........................................................................................................ 31 Chapter 5: Community Development .................................................................................................. 33 Chapter 6: Engineering and Public Works ............................................................................................ 36 Chapter 7: Town Clerk Department ..................................................................................................... 42 Chapter 8: Public Safety ....................................................................................................................... 44 Chapter 9: Municipal Court .................................................................................................................. 46 3 Appendix A: Fund Summary ................................................................................................................. 48 Appendix B: Four Year Financial Detail ................................................................................................ 52 Appendix C: Glossary ............................................................................................................................ 57 Appendix D: Town Supplemental Data ................................................................................................ 59 Appendix E: Financial Policies............................................................................................................... 61 Appendix F: State Auditor Forms ......................................................................................................... 76 4 Users’ Guide The budget document serves a myriad of purposes. Most importantly is its use as a communications device. The budget presents the public an opportunity to review the types of services and levels of service provided within the financial constraints of the community. The allocation of financial resources translates into what services will be provided to the community. As community needs and demands for service change, the allocation of resources should respond accordingly. Therefore, this document attempts to communicate financial information to allow for informed citizenry. Transmittal - The Town Manager’s Message. Budget Overview - The overview provides a summary of the key policy issues, priorities and strategies which shaped the fiscal year 2015 budget, the budget process fiscal policies, revenue assumptions, and expenditure highlights. Financial Summaries – The schedules consolidate the major financial information and operating data elements. Several schedules also serve to meet state statutory reporting requirements. The expenditure summaries are used primarily for operational purposes, e.g., monitoring expenditures at a fund level and at a category level, and maintaining accountability at a department level, with managers accountable at the cost center level. Program Detail - Each operating Department Summary provides a description, goals and objectives, major accomplishments, commentary on significant changes, budget and sources of funding. Capital Improvements - The current year portion of the ten-year capital improvement program is also presented. A more detailed project planning sheet is available in the separately published ten-year Capital Budget and Capital Improvement Plan. Financial Policies and Background - This section provides information on fiscal and budget policies as it relates to certain funds, debt performance, fund balances, expenditure limitation control, revenues, operating budget impact, and capital investments. Community Profile - The profile provides background information so that the budget can be viewed in the context of the factors that shape and affect budget decisions, priorities, and financial parameters within which the community operates. Also provided are select statistical tables providing historical trend information on tax rates, expenditures, and assessed valuations of property. Appendix - In the appendices, the user will find a glossary of budget terminology, summaries, policies, statistical data, and Auditor General Forms. For additional information, please call Town Hall directly at (928) 632-7362. This budget document may also be viewed on the Town of Dewey-Humboldt website, www.dhaz.gov, in Adobe Acrobat format. 5 Message from Town Staff The Honorable Mayor, Town Council and Citizens of Dewey-Humboldt: Staff is pleased to present the budget for Fiscal Year 2014-2015. This budget is the result of months of dedicated work by all of us here in Dewey-Humboldt. The municipal government of the Town of the Dewey-Humboldt operates under a council-manager form of government. The 7 member elected Town Council provides legislative directives, establishes town policy and monitors its execution by the town staff. The Town Manager serves as the Town’s chief administrative officer and is responsible for directing the day-to-day administrative operations of the Town. The Town encompasses 23 square miles of area, with a population of 3,894. The overall financial forecast is positive for Fiscal Year 2014-2015. The Town has three funds: the General Fund, the Highway User Revenues Fund (HURF) and the Grant Fund. The General Fund Revenues are $1.505 million which represents a 5% increase from FY 13-14. The HURF revenues are $290,537 whereas $277,850 last year. The total operational expenditures are approximately $1.49 million in the General Fund and $343,360 in HURF. This year’s budget reflects significant changes and events that takes place in the town since FY 1314. Despite the demands such as fully funding an additional full time employee, FY 14-15 Budget is balanced without tapping into the fund balance for operational expenditure in the General Fund. The fund balance is planned to be utilized for capital purchases. The Town’s budget is subject to the “expenditure limitation requirement” established by the State. FY 14-15’s expenditure limitation is $4,147,812 which is well above the town’s budgeted expenditure. Led by the Town Council’s conservative fiscal approach, the Town’s financial status is solvent. The Town does not have debt. Throughout the budget in each chapter, one will find the successes of the current year and their impacts on the future years. I look forward to another year of productivity and team work in DeweyHumboldt. Sincerely, Yvonne Kimball, ICMA-CM Town Manager 6 Chapter 1: Budget Overview Revenues are expected to increase in FY2015. Existing programs are to continue and improve with increases in public works service levels and building safety service in house transition. We believe that those limited services that the Town does provide are being provided as efficiently, professionally, and sustainably as possible for the money. There are new costs in the public works under the General Fund and the HURF as we expanded the Department by hiring the third full time employee and continuing to acquire appropriate heavy equipment to enhance efficiency. These costs will be offset by reduced contract costs, increased revenues, fund balances (used for capital equipment acquisition) and efficient management. The FY15 Budget funds a cost overrun contingency of $240,000 and sets aside the maximum amount of reserves $654,920 (equal to 50% of the average General and HURF fund total revenues or expenditures for the preceding three years; whichever amount is higher). The Town has over $1.7 millioin in uncommitted, unallocated funds in ending balance should all budgeted expenditures occur. The Town has no current debt obligations and no capital lease payments. The basis of budgeting for all funds is the same as the basis of accounting used in the annual audit. Summary of Changes in Major Programs and Projects Most of the Town’s expenses are on a modest scale. Accordingly, the best way to look at expenditures is to look at totals by program. Because the engineering program includes the allocations for road projects, it is the program with the largest amount of dedicated funds. It is the intention of the Town to do everything reasonably possible to avoid consuming either the reserve or the contingency, except when clearly warranted after careful consideration by the Council. The total financial program adopted for FY2014-15 is $3,951,023 and consists of the following: EXPENDITURE SUMMARY BY FUNDING SOURCE (REVENUE) GENERAL REVENUES HURF REVENUES GRANTS CASH FUND BALANCE ALL FUNDS TOTAL Estimates of Revenues and Expenditures Revenues and Available CF Balance 1,505,000 290,537 1,877,000 278,486 3,951,023 Expenditures Town Counci l Ma gi s tra te Publ i c Sa fety Town Cl erk Fi na nce Lega l & IT Support Cos t Over-run Contingency Communi ty Devel opment Publ i c Works & Engi neeri ng Opera tiona l Ca pi tal Expendi tures Other Budgeted Expendi tures 173,599 86,837 380,238 207,022 85,172 41,980 240,000 219,242 $ 266,572 30,000 92,000 251,360 1,877,000 1,490,663 $ 343,360 $ 1,877,000 173,599 86,837 380,238 207,022 85,172 41,980 240,000 219,242 358,572 2,158,360 - $ 240,000 $ 3,951,023 7 EXPENDITURE SUMMARY ALL FUNDS Counci l, Mgmt & Legal $173,600.00 Fi nance & ETS $127,152.00 Court $86,837 Publ ic Safety $380,238 Ca pi tal Projects & Acqui sitions, $1,877,000 Publ ic Works Ma int $557,601 Community Development $219,242 Town Cl erk $207,022 Publ ic Works Eng $82,331 Conti gency $240,000 EXPENDITURE SUMMARY: General Fund and HURF Council,Mgmt & Public Works Legal 10% - Eng 34% Finance & ETS 7% Courts 5% Town Clerk 11% Public Safety 21% Community Development 12% Public Works Maintence 16% 8 Consolidated Expenditure Summary by Source of Funding FUNDING SOURCE General Fund FY2014-15 Expenditures Local, Existing Cash Intergovernment, Fund Balance and Misc Salary Overtime Allowances Health Insurance (BCBS, Life, HS) Dental & Vision Retirement Medicare State Unemployment Workers Compensation OSP: on going Contracts, IGAs(for non-capital) OSP: Facility Leases Dues and Memberships- Town and Staff Training, Travel, Education - Staff Training, Education - Council/Committees Printing & Publishing Newsletter Printing Publishing Advertising General Supplies/Rd. Maintainance Materials Software: Granicus & American Legal Software Maint & Acquisition Hardware Maint & Acquisition Maintenance Town Hall office/PW Yard Facilities Utilities Building & Auto Liability Insurance Vehicle/Equip Maint & Fuel Facilities/ Open Space Maintenance Neighborhood Outreach Road Preservation & Chip Sealing Captil Outlay (property equipment accquisition) Operating Contingency $ 481,184 800 4,560 56,060 5,940 51,093 6,989 5,460 6,288 540,659 63,240 15,670 7,700 16,660 16,000 5,500 12,000 16,000 27,100 12,600 3,000 23,260 26,500 23,500 200 34,700 Total Expenditure $ 1,490,663 $ Grant Effort 2015 HURF Fund FY2014-15 - Local, Intergovernment, and Misc HURF Fund Existing Cash Fund Balance $ $ - Misc. Grant Revenues - $ TOTAL - 38,000 20,000 28,000 34,000 198,535 52,823 1,877,000 290,535 52,823 $ 1,877,000 240,000 $ 240,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 481,184 800 4,560 56,060 5,940 51,093 6,989 5,460 6,288 578,659 63,240 15,670 7,700 16,660 16,000 5,500 12,000 16,000 27,100 12,600 3,000 23,260 26,500 43,500 200 34,700 34,000 2,156,358 240,000 $ 3,951,021 9 SUMMARY OF EFFORTS BY PROGRAM Town Council Town Clerk Finance Expenditure Items &Mgt&Legal OPERATIONS Salary $ 78,358 $ 95,016 $ 44,253 Overtime Allowances 4,560 Health Insurance BCNS, Life, HS) 7,080 14,160 7,460 Dental & Vision Insurance 660 1,320 660 Retirement 9,403 11,402 5,310 Medicare 1,136 1,378 642 State Unemployment 420 840 420 Workers Compensation 212 246 127 OSP: Contracts, IGAs (non-captial) 41,000 26,000 23,000 OSP: Facility Leases Dues and Memberships 14,110 360 500 Training and Travel Staff 1,500 500 Training Council & Committees 16,660 Printing & Publishing Newsletter 16,000 Printing Publishing Advertising 5,500 General Supplies&Rd. Maint. Material Software :Granicus & American Legal 16,000 Software Maint & Acquisition 17,300 2,300 Hardware Maint & Acquisition Maintenance Town Hall office/PW yard Facilities Utilities Building and Auto Liability Insurance Facilities/Open Space Maintenance Vehicle/Equip Maint & Fuel Neighborhood Outreach TOTAL OPERATIONS $ 173,599 $ 207,022 $ 85,172 E.T.S. Magistrate Court Public Safety $ 46,623 24,480 2,331 676 840 127 22,700 3,540 Com. Dev. Public Works Public Works (incl.library) Engineering Maintenance % of 2015 $ Total Operating $ $ 481,184 $ 800 $ 4,560 $ 56,060 $ 5,940 $ 51,093 $ 6,989 $ 5,460 $ 6,288 $ 596,659 $ 63,240 $ 15,670 $ 7,700 $ 16,660 $ 16,000 $ 5,500 $ 12,000 $ 16,000 $ 27,100 $ 12,600 $ 3,000 $ 23,260 $ 26,500 $ 200 $ 23,500 $ 34,700 31.7% 252,241 $ 1,518,663 100% 30,000 34,000 241,360 $ 30,000 $ 34,000 $ 251,360 $ 1,877,000 $ 240,000 $ 6,900 1,320 8,456 1,445 1,680 1,420 46,141 14,000 500 2,500 368,038 9,500 2,500 1,500 7,500 10,000 99,680 52,772 $ 6,900 660 6,333 765 420 1,781 2,000 64,482 800 13,560 1,320 7,858 947 840 2,374 43,300 36,200 200 500 200 500 10,000 2,600 3,400 3,000 17,360 26,500 2,500 200 23,500 34,700 $ 41,980 $ 86,837 $ 380,238 $ 219,242 $ OTHER Capital Outlay General Fund Major Maintainance HURF Capital Outlay HURF Capital Projects Grant Funded Operating Contingency 72,331 $ 0.1% 0.3% 3.7% 0.4% 3.4% 0.5% 0.4% 0.4% 39.3% 4.2% 1.0% 0.5% 1.1% 1.1% 0.4% 0.8% 1.1% 1.8% 0.8% 0.2% 1.7% 1.7% 0.0% 1.5% 2.3% % of Total 10,000 TOTAL $ 173,599 $ 207,022 $ 85,172 $ 41,980 $ 86,837 $ 380,238 $ 219,242 $ 82,331 $ 557,601 0.8% 0.9% 6.4% 47.5% 6.1% $ 3,951,023 10 Personnel Detail Many staffing changes have occurred in preparation for the FY2015 budget. Under the Engineering / Public Works program, in 2010, the Town recognized the need and efficiency of having in-house public works personnel. The town hired a fulltime public works employee to handle field work in September 2010. As a result there were two full time employees under the Engineering/Public Works Department. The Council continued to recognize the ever increasing needs for road maintenance work; in January 2014, the Town hired the third Public Works full time employee. This personnel expansion has brought about a higher level of service to the community. Under the community development department, building safety services have been provided by Yavapai County personnel through an inter-governmental agreement (IGA) since 2009. The IGA expires beginning FY 14-15. We are to expand the Community Development personnel by one parttime employee to accommodate the increased services. The total personnel for FY 2014-15 is detailed below. Town of Dewey-Humboldt Personnel Detail - All Funds FY2015 FY2012 FY2013 FY2014 ACTUAL ACTUAL ACTUAL PLANNED Department POSITION Town Council Town Manager 1.00 1.00 1.00 1.00 Community Development Community Development Coordinator and Bldg Insp Receptionist 1.00 1.00 1.00 1.00 1.00 1.00 1.80 1.00 Public Works Supervisor Public Works Operator 1.00 0.00 1.00 1.00 1.00 2.00 1.00 2.00 Accountant 1.00 1.00 1.00 1.00 Town Clerk Administrative Assistant / Records Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Magistrate Court Clerk 0.20 0.60 0.20 0.60 0.20 0.60 0.20 0.60 Total 7.80 8.80 9.80 10.60 Engineering/ Pubic Works Finance Town Clerk Magistrate Court 11 Town Council Through Council initiatives, efficiency and effectiveness remains a strong focus as Council and staff works on a continuous process of review and improvement. The Town has a Council-Manager form of government, with the Council and Manager roles defined by separate ordinances. The Town does not have a charter. The Town Council is responsible for establishing goals and adopting public policy that meets the community’s needs. In addition, they are responsible for adopting an annual budget that maintains the fiscal stability of the Town. Town Council & Management $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- $41,000 $39,012 $30,179 $112,492 $113,465 2013 Actual 2014 Projected $41,363 $91,331 2012 Actual Town Council $132,599 2015 Proposed Legal Town Clerk and Records Management The Town Clerk’s Department continues to focus on communication, open government, and the Town’s legal responsibility to maintain its records. Town Clerk & Records Management $250,000 $207,022 $200,000 $150,000 $133,691 $143,982 $117,646 $100,000 $50,000 $2012 Actual 2013 Actual 2014 Projected 2015 Proposed 12 Community Development The community development department strives to promote sustainable and fair development in Dewey-Humboldt. FY15 the building safety function is going to return back in-house. As we restructure and improve the Community Development processes, the goal is to provide a complete one-stop solution for development services while enhancing customer services. Community Development $250,000 $219,242 $202,629 $200,000 $168,999 $172,108 2013 Actual 2014 Projected $150,000 $100,000 $50,000 $2012 Actual 2015 Proposed Public Safety While the town’s fire services and EMS are provided by Central Yavapai Fire District separately from the town’s services, Dewey-Humboldt’s policing services are managed through an intergovernmental agreement with the Yavapai County Sheriff’s office. This program provides the resources to accomplish the mission of public safety for the citizens of Dewey-Humboldt. Under Public Safety program, the Town also has an IGA with Yavapai County Emergency Management office for disaster planning and responses. The cost remains steady in FY 15. Sheriff $385,000 $380,238 $380,000 $375,000 $371,186 $368,185 $370,000 $365,000 $361,564 $360,000 $355,000 $350,000 2012 Actual 2013 Actual 2014 Projected 2015 Proposed 13 Municipal Court The Town Magistrate oversees the municipal court. The court’s function is to promptly and fairly process all criminal and traffic violations filed in court and to effectively obtain complacence of the court’s orders. The Court contracts out the prosecutor services. The court program sees no significant budgetary changes in FY 15. Magistrate $90,000 $86,837 $85,000 $78,680 $80,000 $76,392 $73,868 $75,000 $70,000 $65,000 2012 Actual 2013 Actual 2014 Projected 2015 Proposed Finance Under the direction of the Town Manager, the finance department oversees budget, finance, investments, human resource, performance management, enterprise technology and grants. Program costs remain steady comparing to FY 13-14. Finance & IT $160,000 $140,000 $33,185 $120,000 $100,000 $41,980 $21,335 $24,278 $80,000 $60,000 $40,000 $87,347 $105,677 $81,931 $85,172 2014 Projected 2015 Proposed $20,000 $- 2012 Actual 2013 Actual Finance IT 14 Engineering Engineering and Public Works collectively manages the maintenance and development of Town infrastructure (i.e. roads, rights-of-way, culverts and river crossings). In FY 14, the council allocated $60,000 out of the HURF reserve to expedite the maintenance schedule. During FY 14 we acquired a dump truck and hired a third fulltime employee to accomplish the goal more efficiently and effectively. In FY 14 we also secured Yavapai County Flood Control funding to begin improving Foothill Dr. drainage. We are able to continue the funding in FY 15 to compete the project. FY15 proposes another heavy equipment purchase. We continued to increase maintenance of the roadways to a higher level while managing the day-to-day tasks. See the Engineering section for detailed narrative, cost comparisons and maintenance schedules. Engineering & Public Works $350,000 $300,000 $30,000 $250,000 $35,000 $200,000 $194,241 $150,000 $124,914 $146,603 $67,568 $62,598 $72,331 2013 Actual 2014 Projected 2015 Proposed $100,000 $50,000 $- $89,620 $3,262 2012 Actual Engineering Public Works Capital Capital Expenditures The Capital Improvement program began in FY2008, and has progressed each year. The total dollar amount of capital improvement projects for FY2015 is approximately $1,877,000. For a more detailed discussion of the FY2015 CIP, please see the Engineering Department chapter. Capital projects are included in the FY2015 CIP that can be funded with one-time revenues, but most of the funding is planned to come from unidentified, even speculative grant sources. 15 Summary of Changes in Major Revenues As a result of the overall economy recovery, we expect FY2015 total general fund revenues to increase about 5%. The revenues collected from across the state and fund most of our operations: GENERAL FUND REVENUE Misc 0.3% Fees & Fines 5.4% Local Taxes 25.2% State Shared 69.0% 16 Projected Changes in Fund Balances The General Fund Balance is projected to be $2,350,856 when FY2015 begins; with that, the Town will continue to fund a contingency $240,000 and the maximum amount of operational reserves $693,692. Under the contingency fund, the Council is considering the potential maintenance of Old Black Canyon Highway, purchase land, a community wide water facility study, and an additional vehicle. All these activities are still under Council discussion. Whether the fund will be spent is unknown at this stage. Should any or all of the activities be funded in FY 15 under Council direction, a change in the General Fund balance would occur. Projected change in the HURF Fund is a decline of $52,823 to fund one-time purchase of equipment and to pay for a small portion of road maintenance efforts and increasing cost in coating and chipsealing. General Fund Excess of Revenues over (under) Expenditures HURF Fund Subtotal of General and HURF Funds Grants Fund 2014-15 Total 14,337 (52,823) (38,486) - (38,486) Other (Uses) Operatingy Contingency (240,000) - (240,000) - (240,000) Net Increase (Decrease) in Fund Balance (225,663) (52,823) (278,486) - (278,486) Fund Balance at the Start ot the Year 2,899,668 372,947 3,272,615 - 3,272,615 Fund Balance at the End ot the Year 2,674,005 320,124 2,994,129 - 2,994,129 Budgeted expenditures were managed without using any of the Contingency or Operational Reserve funds from the prior year. To provide a vital margin of safety, total committed funds are $894,920 leaving an unassigned fund balance of $1,779,085. General Fund Summary Committed for Contingency Committed for Reserves 240,000 654,920 HURF Fund - Subtotal of General and HURF Funds Grants Fund 2014-15 Total 240,000 654,920 - 240,000 654,920 Unassigned Fund Balance 1,779,085 320,124 2,099,209 - 2,099,209 Total Fund Balance 2,674,005 320,124 2,994,129 - 2,994,129 17 Budget Process The budget process has been the Town’s primary strategic planning tool since incorporation. Other planning processes include development of the Town’s General Plan and master plans (like the FY2009 Drainage Study and the FY2010 and Open Space and Trails Master Plan). Once a budget is adopted, it may be amended by a simple majority of Council, but only by transferring funds between allocations and only if the transfer is “in the public interest and based on a demonstrated need.” State law (A.R.S. § 42-17106) also requires that the Town must not: spend money for a purpose that is not included in its budget; or spend more money or promise to spend more money than is stated for each purpose in the finally adopted budget for that year, even if the Town has more money than it planned at the beginning of the year. 18 Budget Calendar FISCAL YEAR 2014 - 15 BUDGET SCHEDULE (revised) Date Task February - March 2014 Preliminary Budget guidelines provided to Staff Town Manager preliminary budget Communications with Council Members, including needs and priorities, input for budget narrative, road plan expectations State Shared Revenues provided by the League of Cities/Towns March 14 - April 4, 2014 Departmental budget estimates and narrative due, including Sheriff and IT proposals April 1 - 30, 2014 State Expenditure Limitation information available Revised Stateshared Revenues provided by the League of Cities/Towns April 7, 2014 Council Budget Worksheet Completion Begin composing narrative and graphs and charts April 15, 2014 Preliminary Budget (budget worksheet) Council Acknowledgement @ Regular Council meeting April 22, 2014 Council Budget workshop #1 at 9:00 a.m. Revisions by staff April 29, 2014 Council Budget Workshop #2 at 9:00 a.m. Revisions by staff; Forming the Tentative Budget (including narrative) May 6, 2014 Council Budget Workshop #3 at 9:00 a.m. Revisions by staff; Forming the Tentative Budget (including narrative) May 13, 2014 Council Budget Workshop #3 at 9:00 a.m. Morning budget workshop, afternoon Council work session Revisions by staff May 21, 2014 Council adoption of the Tentative Budget @ evening regular meeting Publication of the Tentative Budget within 7 days, Prepare and post notice of June's budget hearing and adoption June 3, 2014 Council Budget Workshop #4 at 3.30 p.m. Evening regular meeting June 17, 2014 Council Budget Workshop #5 at 2.00 p.m. Public Hearing at Regular Council Meeting Planned Adoption of FY 14-15 Budget; publication within 7 days upon adoption June 2014 Fiscal Year 2014-2015 Setup in accounting system July 1, 2014 Fiscal Year 2014-2015 Begins July 1, 2014 - June 30, 2015 FY 13-14 Audit; FY 14-15 Budget Monitor, Measure, Assess, Report 19 Budget Resolution RESOLUTION NO 14-112 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF DEWEY-HUMBOLDT, COUNTY OF YAVAPAI, ARIZONA, ADOPTING THE DEWEY-HUMBOLDT FY2015 BUDGET; AND PROVIDING FOR AN EFFECTIVE DATE. Whereas, the Town of Dewey-Humboldt has an important responsibility to its citizens to carefully account for public funds, to manage its finances wisely, and to plan for the adequate funding of services desired by the public, including the provision and maintenance of public facilities; and Whereas, the Town of Dewey-Humboldt FY2015 Budget (the “Budget”) has been developed by the Town of Dewey-Humboldt to deliver quality services in an affordable, efficient and cost-effective basis providing full value for each tax dollar; to maintain an adequate financial base to sustain a sufficient level of municipal services, thereby preserving the quality of life in the Town of Dewey-Humboldt; and to have the ability to withstand local and regional economic fluctuations, to adjust to changes in the service requirements of our community, and to respond to changes in Federal and State priorities and funding as they affect the Town's residents; and Whereas, the Budget has been carefully reviewed by Council, who believes that it fairly provides for the provision of public goods and services furthering the health, safety, and welfare of the Town’s citizens. Now, Therefore, Be it resolved by the Mayor and Common Council of the Town of Dewey-Humboldt, Arizona: 1. The Dewey-Humboldt FY2015 Budget shall be adopted as follows: 1.1. The Budget is hereby adopted as an official Budget of the Town of Dewey-Humboldt for fiscal year 2015 (beginning on July 1, 2014, and ending on June 30, 2015). 1.2. The Budget shall be implemented, monitored, and maintained by the officials and staff of the Town for a period of one year (FY2015) with the support of this resolution. 2. Effective Date. That this resolution shall be effective as of the 1st day of July 2014. PASSED AND ADOPTED by the Mayor and Common Council of the Town of Dewey-Humboldt, Arizona, this ___ day of June 2014. ___________________________________ Terry Nolan, Mayor ATTEST: APPROVED AS TO FORM: ______________________________________ ______________________________________ Judy Morgan, Town Clerk Town Attorney 20 Chapter 2: Town Council Department This department’s major focus is on connecting the Council with the community, and connecting Council’s Vision to the delivery of Town services. The Town Council has three major appointed positions that report directly to them: Town Manager, Town Attorney, and Town Magistrate. It is the Town Council’s responsibility to oversee these functions and to provide the needed policy direction for the effective management of the Town. In FY2014, The Council revised and adopted the comprehensive Public Body Code of Ethics. The Town Council continued updating the town codes to clarify procedures and policies governing the public bodies’ procedures. The Council emphasized road maintenance by allocating more resources to Public Works operation. The Council instituted a Volunteer of the Year program to recognize volunteers in the community. The Council improved the clean town programs by partnering the dumpster day program with the Town of Prescott Valley and beginning to partner with the City of Prescott in the Hazardous Waste Disposal program. The Town began the process of improving the accessibility of a Prescott National Forest multiuse trail which abuts the town’s western boundary. The Town applied for a grant to expedite the project. The Council conducted an emergency response training hosted by Yavapai Emergency Management office. The Town also applied for a grant to install a firebreak along western boundary to prevent wild fire. The Town Council was able to secure a plan with ADOT and CYMPO to install a traffic light at the intersection of SR 69 and Main St. in FY 16. The Town Council secured a $75,000 Flood Control funding for FY 14 and another $75,000 for FY 15. The Council adopted sign code change after a couple of years’ effort. Council also considered other code modifications, such as accessory dwelling units/ guest homes, transient merchant ordinance. The Town Council considered the town’s marketing ideas and held an economic development related visioning session. The town installed a welcome sign at the southern boundary of the town. The town continued the financial assistance to D-H HS. The Town Council explored the historical right-of-way issues of Outback Road and along Old Black Canyon and decided to allocate fund in FY 15 budget to potentially address the maintenance issue. The Town Council evaluated the Town Manager’s performance. The Town Manager was recognized by the International City/County Management (ICMA) as a credentialed manager (ICMA-CM). The Town Manager was appointed by the Governor to the Groundwater User Advisory Council. 21 In FY 2015, The Council desires to continue its effort to address issues that are of the community’s general interests and analyze the effects of proposed changes to ensure maximum efficiency and positive impact on the community. The Council continues to institute Town Code clarification and revisions. The Council continues to explore the historical Old Black Canyon Hwy ownership and maintenance issue and potentially utilizing fund in FY 15 budget to address the maintenance issue should the council decides to proceed with its maintenance Under the Town Council’s direction, the Town Manger will continue: Implement Council’s decisions and visions; report Town information to the Town Council in a regular and timely manner; update the town codes, especially sections pertaining to land uses; improving organizational structure; updating operational procedures and internal policies; emphasizing on customer services; working with the community to address daily issues. Town Council The Town Council serves Dewey-Humboldt’s citizens as elected representatives and provides for the orderly government of the Town. The town is a general law town organized in December 2004 under Arizona Revised Statutes (ARS) Title 9, Chapter 2, Article 3. The Town has a Council-Manager form of government, with the Council and Manager roles defined by separate ordinances. The Town does not have a charter at this time. The Town Council is responsible for establishing goals and adopting public policy that meets the community’s needs. In addition, they are responsible for adopting an annual budget that maintains the fiscal stability of the Town. Unlike many other cities and towns, D-H Town Council members and all other public body members receive no financial compensation for any of the services and support they provide to the Town. Members are reimbursed for mileage and travel expenses when on Town duty. In support of the Council’s mission, the Town Attorney is Curtis, Goodwin, Sullivan, Udall & Schwab PLC. The Firm supports the Town’s legal concerns with principled, ethical, and professional counsel and insightful research. In the Council’s intergovernmental outreach, professional memberships are important for the Town to remain a vital part of regional, state-wide, and national efforts to maintain the voice of our town in these significant areas, and to maintain the professionalism of town management. The Town (or a representative staff member of the Town) is a member of the following organizations: Arizona Bar Association Arizona Municipal Clerks Association Arizona Building Officials Association – Grand Canyon Chapter Arizona Planning Association Yavapai Regional Medical Center Board Arizona City and County Management Association Governor’s Groundwater User Council Arizona League of Cities and Towns Government Finance Officers Association of Arizona 22 International City and Management Association County International Code Council International Institute of Municipal Clerks Northern Arizona Council of Governments Central Yavapai Metropolitan Planning Organization Greater Prescott Partnership Regional Economic Yavapai County Commission Water Advisory The Council’s Vision is central to everything done by the Town, and is included in its entirety as follows: Dewey – Humboldt Vision 2028 A Statement Describing the Next Twenty Years The Town of Dewey‐Humboldt was created in 2004 to preserve the low- density lifestyle that area residents came to enjoy, and were fearful of losing. People live in Dewey‐Humboldt because they like a slower pace, more elbow room, and a more rural character. They like the freedom to be themselves, to respect and be respected regardless of their role in the community. They like the view of the mountains and want to know the skies will be clear, the water clean, and the air fresh. Keeping these attributes will make Dewey-Humboldt a jewel in the quad-cities. Growth projections for the State Route 69 corridor indicate significant pressure to develop over the next few years. Therefore, the council’s vision for Dewey-Humboldt is that it maintain its uniqueness to be the “crown jewel” in the predicted megalopolis that will stretch from Prescott to Nogales. We know and expect that… 1. Our population will grow in conformance with the General Plan. People will be attracted by our low-density residential community and small‐town lifestyle. 2. Some commercial enterprises will be needed to help support the Town’s population, but the locations of those businesses should be focused and concentrated. 3. Non-industrial type home‐based businesses will be part of the future growth. 4. Some property owners will want to maximize the value of their land and make it available for development. 5. Water supply will be a limiting factor in our growth and development. We need to emphasize water conservation and reuse. 6. With increased growth, transportation and circulation needs to be well planned. No one can stop change from coming and not all change is bad. Therefore, we, the Town Council, will focus any changes we’re asked to support on meeting the following fundamental criteria. We promote… 1. Broad, inclusive and effective involvement by residents in all planning activities. 2. Development that will foster the look and feel of openness and protect the viewscape. 23 3. Codes, laws, standards and regulations that balance the rights of the individual and lowdensity residential living with the rights of the collective population. 4. Protection and non-destructive use of our natural resources including the surrounding mountains and hills, natural open space, public lands, rivers, and streams. 5. A balanced, cost-effective outlook to maintain a healthy environment and future development. 6. Public safety and the quiet enjoyment of this wonderful place by all that live or visit here. Town Staff is responsible to identify how each proposed Council action relates to the following values: Active Citizenship – each Dewey-Humboldt citizen has the right and responsibility to participate in the governance of the Town. Sustainable Development – the land regulated by the Town should be developed such that it remains at least as valuable in future generations as it is today, ceteris paribus, with no additional external resources. Creating Community – Town activities should tend to create mutual respect and understanding between citizens; shared resources like air, the river, the mountains, and the feeling of openness should be preserved by governance, public investment, and celebration. Self-Reliance – whenever civil, each person should earn the benefits and bear the burdens of his or her own actions. Efficient Public Services – the few services of the Town should be delivered as efficiently and fairly as possible, with strong fiscal discipline. Limited Public Services – the Town should only deliver those public services that cannot be efficiently provided by the private sector. Durable Public Improvements – the Town should deliver public services with the expectation that the Town will live for as long as the State of Arizona exists. Town Boards, Commissions, and Committees Town Boards and Commissions are critical to our government. They provide support to Town Council by acting on Council’s behalf in important land use areas or by providing a recommendation to Council. The Town’s committees are formed by Council resolution, in accordance with the Town Council Rules and Procedures. This year’s budget provides for comprehensive Council training, including the annual Council retreat for policy development, training for all members of the Planning and Zoning Commission through the annual Arizona Planning Association Annual Conference, and additional funds for committee training and projects. Planning and Zoning Commission Tammy Dewitt, Chairperson Dee Parker Jeff Siereveld Vacant Claire Clark Barry Smilye Vacant 24 Open Space and Trails Committee Sandra Goodwin, Chairperson Laurence McCormick Carl Marsee, Associate Member Doris Cellarius Bob Bowman Town Manager The Town Manager is responsible for overseeing the day-to-day operations of the Town and for carrying out the policies that are adopted by the Town Council. The Town Manager’s office provides the overall administrative leadership necessary for the implementation of Town Council policies, administration of the organization and delivery of services to the citizens, promotes interaction with other levels of government to serve the best interests of Dewey-Humboldt’s citizens, advocates the Town’s position, and encourages and develops public-private partnerships that support Council direction and meet the needs of the community in a cost-effective manner. Legal Counsel Services The Town Attorney serves as legal advisor to the Council, Manager, and all Town programs and represents the Town in all legal proceedings. The Civil program of the Town Attorney’s Office is responsible for civil court proceedings in various state and federal courts in all areas of the law, including but not limited to, zoning, contract, public bidding, personnel, bankruptcy, water, real estate and environmental. The Civil program also provides verbal and written legal opinions to the Town Council, Town Manager, Town programs, boards, commissions, and committees. The Civil program drafts Town ordinances, resolutions, leases, contracts, and other legal documents. 25 Town Council, Management and Legal General Revenues: Local & Shared ACCT# 10-413-4000 10-413-4100 10-413-4110 10-413-4111 10-413-4120 10-413-4150 10-413-4160 10-414-4160 DESCRIPTION Salary Town Manager Allowances TM., Mayor & CM Health Insurance (BCBS, Life, HS) Dental & Vision Insurance Retirement Medicare State Unemployment Workers Compensation $ $ $ $ $ $ $ $ 78,358 4,560 7,080 660 9,403 1,136 420 212 General General Revenues: Fund Fines & Fees Existing Cash Fund Balance $ - $ - - HURF Revenues 2015Total Estimate NOTES $ - - HURF Fund Grant Effort Existing Cash 2015 Fund Balance - $ - - - $ - - - - - $ $ $ $ $ $ $ $ 10-413-6010 Dues and Memberships $ 14,110 - - - - $ 10-413-6020 Training: Town Manager $ 2,100 - - - - - $ 10-413-6020 Training: Council Individualized $ 13,860 - - - - - $ 10-413-6020 Training:Boards, Committee and Commission $ 700 $ 10-416-5001 OSP Town Attorney $ 41,000 $ $ 173,599 78,358 4,560 7,080 660 9,403 1,136 420 212 14,110 Salary TM Phone & Vehicle, Mayor & CM's BCBS, Fort Dearborn, Health Equity Delta Dental, Avesis Vision ICMA 401A ADP Payroll ADP Payroll AMRRP League of Az Cities and Towns, CYMPO, NACOG, GPREP, WAC, APA, AZBO and ICC: Anacronyms defined below ICMA, ACMA and professional development 2,100 per contract Council to Annual League Conf, routine TOTAL $ - $ - $ - $ - $ - $ 13,860 representations and individual trainings 700 41,000 municipal legal services 173,599 * Special Revenues would include HURF, LTAF Anacronyms defined: CYMPO - Central Yavapai Metropolitan Planning Association (4% + State Transportation Board Meeting), ACMA - Arizona City/County Management Association, ICMA -International City/County Management Association, APA- American Planning Association AZBO - Arizona Building Officlais(DH belongs to AZBO's Grand Canyon Chapter), ICC- Interntational Code Council NACOG - Northern Arizona Council of Governments, and the Water Advisory Committee 26 Chapter 3: Finance Department Under direction of the Town Manager, the finance department oversees Budget, Finance, Performance Management, Grants, Human Resources, and Enterprise Technology. FY2014 Accomplishments Achieved a clean, comprehensive audit. Provided monthly financial reports. Revised reporting procedures to improve audit trail. Established the “change fund” policy. Closely monitored the Town’s LGIP investment fund. Updated IT hardware inventory, assisted IT service provider acquire a server for the Town. Recommended the Council participate in the state “OpenBooks” accounting reporting and implemented “openbooks” reports. Assisted D-H community organizations with grant seeking and application. Assisted expansion of the Public Works Department: acquisition of heavy equipment, hiring of the third full time employee. FY2015 Performance Goals Increase the number and amount of grant awards. Update the Town’s Sound Finance Policy; make recommendations to the Town Manager. Continue updating and revising operational procedures. Support Building Safety services transition as the transition relates to finance and accounting. Research and attempt to earn the GFOA Distinguished Budget presentation award. Continue to improve local sales tax collections by working with the Arizona Department of Revenue and local businesses to bring noncompliant taxpayers into compliance. Continue to closely monitor LGIP fund and research investment options for the Town. Finance Under the direction of the Town Manager, the Finance program provides financial management and support services to other Town programs. In addition to maintaining the financial integrity of the Town with comprehensive financial and budget administration, this program also provides assistance for all grant activities throughout the Town and directs the performance management efforts of the Town. The adopted Principles of Sound Financial Management establishes guidelines for the Town’s overall fiscal planning and management. These principles are intended to foster and support the continued financial strength and stability of the Town, as reflected in its financial goals. The Town’s financial goals are broad, fairly timeless statements of the financial position the Town seeks to attain: 27 To deliver quality services in an affordable, efficient and cost-effective basis providing full value for each tax dollar. To maintain an adequate financial base to sustain a sufficient level of municipal services, thereby preserving the quality of life in the Town of Dewey-Humboldt. To have the ability to withstand local and regional economic fluctuations, to adjust to changes in the service requirements of our community, and to respond to changes in Federal and State priorities and funding as they affect the Town's residents. To maintain a high bond credit rating to ensure the Town’s access to the bond markets and to provide assurance to the Town's taxpayers that the Town government is well managed and financially sound. Adhering to these principles protects the Town's financial health as well as its image and credibility with its citizens; the public in general, bond rating agencies and investors. The Principles are reproduced in their entirety as Appendix C hereof. In accordance with the Principles, Finance is responsible for maintaining accurate financial records and providing timely financial information to the public, any future bondholders, grantors, auditors, Town Council and Town management. This program is responsible for the areas of general ledger, accounts payable, accounts receivable, payroll, special assessments, fixed assets, cash management, investments, debt management, risk management, and grant accounting. Budget Fiscal planning is the process of identifying resources and allocating those resources among numerous and complex competing purposes. The primary vehicle for this planning is the preparation, monitoring and analysis of the Town’s budget. It is increasingly important to incorporate a long-term perspective and to monitor the performance of the programs competing to receive funding. The Budget Program ensures effective and efficient allocation of Town resources to enable the Town Council, Town Manager, and Town programs to provide quality services to our citizens. The program prepares, monitors, researches alternatives, and presents the Town’s Annual Budget. Performance Management This program provides uniform, nationally comparable standards for all areas of Town performance, and includes an on-going survey effort to ensure that the Town is maintaining the highest standards of citizen service. In FY 15, Council desires to consider a town wide survey to gauge the current satisfaction for the current service provision and future service needs. Grants Acquisition and Management Staff has ongoing research into Federal, State and private grant opportunities with several applications pending. The strategy in this document is to authorize the maximum amount under the state expenditure limits, with the difference between income and costs being made up by grant funds. Of course, since the Town is unlikely to qualify for as much grant money as is in the budget, it should be assumed that some or many of the grant-funded projects in the budget will not be inaugurated in this year. 28 Human Resources This program strives to provide human resources services and develop opportunities in support of the following guiding principles: practice open and constructive communication; promote excellence in teamwork, customer service, and respect for individuals; and provide programs that balance the needs of the Town with that of its employees and citizens. 29 Finance General Revenues: Local & Shared ACCT# DESCRIPTION 10-415-4000 Salary Accountant 10-415-4110 Health Insurance (BCBS, Life, HS) Dental & Vision Insurance Retirement Medicare State Unemployment Workers Compensation OSP: Audit Services 10-415-4111 10-415-4120 10-415-4150 10-415-4160 10-415-4160 10-415-5001 $ 44,253 General General Revenues: Fund Fines & Fees Existing Cash Fund Balance $ 7,460 660 5,310 642 420 127 13,000 - $ - - HURF Revenues 2015 Total Estimate NOTES $ - - HURF Fund Grant Effort Existing Cash 2015 Fund Balance - $ - - - $ - - - - $ 44,253 Salary - - $ $ $ $ $ $ $ 7,460 660 5,310 642 420 127 13,000 10,000 and miscellenaous servcie fees 500 GFOA, GFOAz Anacronyms below 500 annual conference BCBS, Fort Dearborn, Health Equity Delta Dental, Avesis Vision ICMA 401A ADP Payroll ADP Payroll AMRRP Audit Open books, ADP, Banking,HS OSP: Banking Services AND ADP 10-415-6010 Dues and Memberships 10-415-6020 Training and Travel 10-415-5200 10-415-6380 Software Maint & Acquisition TOTAL $ 10,000 500 500 - - - - - $ $ $ 2,300 - - - - - $ 2,300 - $ 85,172 85,172 $ - $ - $ - $ - $ Accounting software annual license and Clarity* upgrade Anacronyms defined: GFOA - Government Finance Officers of America and Canada, GFOAz - Local Chapter, 30 Chapter 4: Enterprise Technology The Enterprise Technology program is responsible for developing and coordinating the use of technology across the various programs of Dewey-Humboldt Town government, to ensure that accurate and timely information is provided to residents, elected officials, management, and staff. The ET program also manages technology investments and assets such as the Town’s enterprise computer network, systems, and applications. Other areas of responsibility include providing customer service, project management, business analysis and process re-engineering, training, technology upgrades, Town-wide technology and desktop personal computer management, security management, and disaster recovery of enterprise-wide systems. FY2014 Accomplishments Hardware Purchasing: We continued with our hardware rotation plan to keep all critical hardware in warranty or under service contract. In 2014 we purchased the following: Firewall: A Cisco ASA5505-U-AIP5P-K9 which includes three years total of basic SmartNet coverage (hardware/software maintenance) Server: A Dell server was purchased and is in full production Software: The Microsoft agreement was completed and all PC Operating System and Productivity Suite software is now licensed at the current version levels. Blue host web hosting renewal Digicert “mail.dhaz.gov” domain Offsite backup storage Transferred to Postlayer email filter system FY2015 Performance Goals Hardware Updates; plan to replace four five-year-old computers in town office. Assist the transition of in-house building safety services; assist implementation of permitting module update. Efficiencies: ETS will continue focus on providing technology support with the upmost efficiency. 31 Enterprise Technical Support ACCT# General Fund Revenues: Local & Shared DESCRIPTION Enterprise Technical Support ETS Town Website 10-417-6380 Software Maint & Acquisition 10-417-6900 Equipment Non Capital repair 10-417-6950 Hardware Maint & Acquisition 10-417-5100 $ 10-417-5110 TOTAL $ General General Revenues: Fund Fines & Fees Existing Cash Fund Balance 24,480 2,000 5,500 1,600 8,400 $ 41,980 $ - - $ $ - - HURF Revenues HURF Fund Grant Effort Existing Cash 2015 Fund Balance 2015 Total Estimate NOTES $ $ - - $ $ - - $ $ - - $ $ $ $ $ 24,480 2,000 5,500 1,600 8,400 $ 41,980 Contract with Four D, general maintainance @ 16 hours/wwek+8 hrs/month contigency&E-device initial setup Town website maintenance routine licensing and maintenance repair hardware, remote storage 4 computers replacement, 6 monitors, and E-device for Council 32 Chapter 5: Community Development Department The Community Development Department strives to promote sustainable and fair development in Dewey-Humboldt. The Development is responsible for the overall functioning of planning, code enforcement, and building safety coordination. Library services and community outreach programs are accounted for under Community Development Department. All duties to be carried out within the department are performed by Town staff, contract consultants, or in coordination with intergovernmental agreements. Currently two full time employees are budgeted under the Department (one reports to the town clerk). With in-house building safety transition, an additional part time employee is budgeted in FY 15. FY2014 Accomplishments Successfully revised the Sign Code under Town Council’s direction. Researched and put forward a transit merchant ordinance at Council’s request. The Council considered the ordinance, but decided to postpone further discussions. Achieved a better customer service and a higher voluntary compliance of new code enforcement cases. Library: Implemented new computer classes at the Library. FY2015 Performance Goals Building safety services in-house transition. Continue to revise the zoning ordinance of the Town Code. Successfully implement in-house building safety services transition. Increase library patron visits. Planning The Planning and Zoning services are provided by in house town staff – the Community Development Coordinator, the Town Manager/Zoning Administrator and other supporting town staff. Current planning provides zoning administration and site plan review. This zoning administration function is to review private development projects to ensure consistency with the Town’s general plan, zoning code, and other laws and regulations; and to provide professional support to the Planning & Zoning Commission, Board of Adjustment, and Town Council. Long range planning guides and directs growth through the development of plans, policies, and ordinances that preserve the character and enhance the livability of the Town. Long range planning tracks land use and population statistics, prepares development policies and code amendments, and manages the General Plan as required by state statutes. In the coming year, particular attention will be paid to a revised general plan and ordinance revision. Building Safety Building Safety reviews applications and plans, issues permits and performs inspections for all development projects. In 2009, an IGA was established with Yavapai County Development Services 33 to provide plan review and inspection services. This year upon expiration of the IGA, building safety will be brought back in-house. It is planned a part-time employee to be hired to oversee the transition and conduct inspection. This change will have long-lasting impact on town overall operation. All town staff is geared up to assist for the smooth transition and effective implementation. Code Enforcement The Code Enforcement program provides public information and enforcement efforts to bring about compliance with Town zoning, property maintenance, and nuisance code requirements. This program also engages in public education through community outreach wherein citizens are advised of their right to due process under the law whether they are filing a complaint or have been cited for a violation. When necessary, code enforcement cases are adjudicated by the Town’s hearing officer. Community Outreach Under this program, the Town reimbursed Historical Society’s museum rent for a second year in FY 14. In FY 15, Council decided to continue to reimburse the rent. The town began to partner with the Town of Prescott Valley and Yavapai County in the roving dumpster program in FY 14. The Town also entered into an inter-governmental agreement with the City of Prescott to allow D-H citizens to participate in the Hazardous Household Waste program. These programs are expected to continue. Town staff will evaluate implementing another community based cleanup program. In FY 14, the Town instituted a Volunteer of the Year program to recognize all volunteers in the community. The first Volunteer of the Year was Ms. Pat Mathews. The program will continue into FY 15 and a community wide recognition event will take place. Council also decided to support Agua Fria festival and Meals on Wheels. Council also considers to conduct a community wide survey in FY 15 to gauge community desires on certain programs. Additionally, Council allocated funds in FY 15 budget for the continued “branding” programs. Library Under the direction of the Town Librarian, Mr. Jeff Franklin, the library is entering its eighth year as a valued service and asset to the citizens of our community. The library has continued to increase operational hours and provide numerous programs especially for children. The Town’s costs for the library, consisting of the building rent and the IGA costs are actually much less than the total cost for the services provided to our Town because a county-wide library district property tax is used to supplement the cost of local service. The current estimate of the district’s contribution in FY2015 is $36,143 in addition to the amount budgeted by the Town. 34 Community Development: Planning, Zoning & Community Outreach General Revenues: Local & Shared ACCT# 10-465-4000 10-465-4110 10-465-4111 10-465-4120 10-465-4100 10-465-4150 10-465-4170 10-465-5001 10-465-5501 10-465-5501 DESCRIPTION Salary -Community Development Dept.$ Health Insurance (BCBS, Life, HS) Dental & Vision Insurance Retirement Medicare State Unemployment Workers Compensation OSP: Planning & Zoning Support Facilities: Library YCO IGA Facilities: Library CAP Lease OSP: Other (IGA Yav Bldg Insp) Dues and Memberships 10-465-6020 Training and Travel 10-465-6100 Supply: Book Subscriptions 59,180 6,900 1,320 8,456 1,445 1,680 1,420 5,000 36,141 14,000 General General Revenues: Fund Fines & Fees Existing Cash Fund Balance $ 10-465-6010 $ - - HURF Fund Grant Effort Existing Cash 2015 Fund Balance 2015 Total Estimate NOTES $ - - 5,000 500 2,500 500 10-465-5900 40,500 - HURF Revenues - $ - - - $ - - - - - - $ $ $ $ $ $ $ $ $ $ 99,680 6,900 1,320 8,456 1,445 1,680 1,420 5,000 36,141 14,000 Salary for CD coordinator, receptionist, and Temp. B/O /personnel change once building services is brought in house. BCBS, Fort Dearborn, Health Equity Delta Dental, Avesis Vision ICMA 401A ADP Payroll ADP Payroll AMRRP Building inspection service OSP if needed IGA with Yavapai County for Library Support Library buidling lease and up to $1200 repair. in-house transition service overlap; Buidling services IGA with County expries on June 30,2014. APA, CELA, AACE; Anacronym defined below $ $ $ $ 5,000 500 2,500 Building inspection certs training and testing 500 Council Events & neighborhood clean-up 10-465-6950 Neighborhood Outreach 10,000 10-465-6950 Neighborhood Outreach 14,700 10-465-6590 Neighborhood Outreach Neighborhood Outreach 5,000 5,000 10-465-6950 TOTAL $ 178,742 $ $ 40,500 $ - $ Anacronyms defined: OSP: Outside Service Providers, for example an Environmental Consultant, Hearing Officer, APA - American Planning Association AACE - American Association of Code Enforcement - $ - $ 10,000 programs $ 14,700 - $ $ 5,000 5,000 - $ 219,242 CELA - Code Enforcement League of Arizona Mayor Nolan requests(lock boxes $1000 & Aqua Fria Festival $5000 & musuem yearly rent $7200 CM Wright &Hamilton request-commnity wide survey VM Alen request- Town branding efforts NACOG - Northern Assn Council of Governments 35 Chapter 6: Engineering and Public Works Department The Engineering and Public Works program promotes safety while maintaining and developing the infrastructure of Dewey-Humboldt to preserve the rural atmosphere. The Town Engineer, Shepard and Wesnitzer Inc., has been retained to provide on-call engineering services. The Town utilizes the on-call services for flexible and professional outside engineering services. Public Works The Public Works program is charged with providing management direction and support to capital improvements and overall street maintenance. The Town Public Works Supervisor is in charge of the public works program, which maintains data on all Town infrastructure and assures compliance with town code. The streets maintenance program provides for the care, repair, and maintenance of all Town-owned rights-of-way. In FY 14, the Town hired a third Public Works full time employee whose position title is public works operator. With the additional staff the Department is able to conduct more in-house maintenance as opposed to contracting the work out. The Department also acquired a used dump truck in FY 14. As a result of the personnel and equipment inventory expansion, the department is able to maintain the roadways at a higher level of standard. This Department’s expenditure is made up by two budget units under General Fund and HURF: Engineering and Maintenance. The General Fund funds all personnel expenses and the costs for town facilities (rents, maintenance and utilities), Park and Recreation services and general supplies for all town offices. The HURF portion is designated for maintenance and development of the Town’s roadway infrastructure (i.e. roads, rights-of-way, culverts and river crossings). Three full time positions are under this Department: a Public Works Supervisor and two Public Works Operators. An on-call engineering firm supplements services when needed. FY2015 Road Maintenance Schedule Like previous years, FY2015 does not propose any new chip sealed miles. The Town has numerous failing roads and needs to concentrate money to repairing the existing roads rather than paving more roadways due to value engineering (it is less expensive to repair the failing roads now then it is to replace the same road later). As a result this year’s budget is committed to a higher level of maintenance standard to both the paved and dirt roads. The Town has expanded the Public Works Department since FY 13 with additional heavy equipment (Town used to rent much of the equipment) and hiring an additional full time employee. The maintenance program will:    Preserve the existing asphalt roads with a fog and crack seal. Increase maintenance on the chip seal roads by patching them and preparing them for single chip seal in future years. Increase the frequency of the grading on the dirt roads. The increased levels of service in several maintenance activities are expected to address the trends. The associated costs, based on addressing these trends, are shown in the “level of service” chart. The costs are based on bringing a majority of the maintenance in-house, adjusting costs due to existing Town contracts, and estimates based from projects in our region. The Town intends to only maintain public roads that have been dedicated to the Town via documents on record with the Yavapai County Recorder’s Office. Roads with questionable ownership or roads that were not built to Town standards are maintained, with a lower level of priority. Roads that are 36 clearly in private ownership are not maintained. However, the Council has discussed the Old Black Canyon Hwy issue during the budget discussions and decided to allocate fund aside in FY 15 budget should the town decide to do some additional maintenance on the road way in order to bring the road condition to a higher standard. Suggested road section for pavement preservation: Merrill Rd. - .27Miles S. Piute Rd. - .83Miles East Hopi Trail - .42Miles South Hopi trail - .86Miles E. Marilyn Ln. - .42Miles E. Shirley Ln. - .80Miles Tonto Dr. - .37Miles E. White Dr. - 1.00Miles S. Golden View Dr. - .15Miles S. Gladstone Ave. - .14Miles E. Mccabe Circle - .15Miles Blue Ridge Rd. - .73Miles Nancy Ln. - .16 Kathy Ln. - .23Miles Suggested road section for chip sealing: E. Henderson Road (From Pony to Merrill) - 3.06 Miles Foothills Dr. (from Hwy169 to E. Bradshaw3 Road) - 1.87 Miles Green Valley (From Lazy River to End) - .25Miles Agua Fria Ln. (from Green Valley to Holiday Dr.) - .12Miles Holiday Dr. (Lazy River to Agua Fria Ln.) - .25Miles Yavapai Dr. - .37Miles Pony Dr. (from Henderson to Antelope) Green Valley (From Lazy River to Bradshaw Rd.) -.12Miles Bradshaw Rd.(From Green Valley to Foothills) - .24Miles 37 Item Road Level of Service (LOS) FY2012 FY2013 FY2014 FY2015 FY2016 tentative 5%^OSP tentative FY2017 tentative 1 PAVEMENT PRESERVATION, IMPROVEMENTS, AND MAINTENANCE Fog coat asphaltic concrete roads by OSP every 6 years and crack seal if necessary $ 40,000 $ 40,000 $ 40,000 $ 41,600 $ 44,000 $ 2 Single chip seal on black roads by OSP every 6 years; 16.7% of roads $ 125,000 ? $ 125,000 $ 144,000 $ 149,760 $ 140,000 $ 140,000 3 Road rebuild to prepare for preservation and chip sealing- new since FY 14 per Council; by OSP $ - - $ 60,000 $ 20,000 4 Asphalt concrete for road failures (hot patch) by OSP $ 25,000 $ 25,000 $ 28,800 $ 21,000 $ 21,000 $ 21,000 5 Pothole repair by in-house staff: 30 tons $ 2,500 $ $ $ $ $ 4,000 6 ROW weed abatement; 2 times; all roads; where applicable $ In-House $ In-House $ In-House $ In-House $ In-House $ In-House 7 Tree trimming along right-of-way by in-house personnel; where applicable $ In-House $ In-House $ In-House $ In-House $ In-House $ In-House 8 Tree trimming along right-of-way by OSP or in-house personnel; assumed two locations $ $ $ $ In-House $ In-House $ In-House 9 Sloped area weed abatement; areas with poor sight distance; highly visible areas $ In-House DIRT ROAD MAINTENANCE Grade dirt roads; 2 times/year since FY 12-13 contract** $ 11,000 $ In-House $ In-House $ In-House $ In-House $ In-House $ 10,000 $ 14,000 $ 14,000 $ 11,000 $ 11,000 Dirt Road Grading in-house with rental equipment; as needed by weather condition DRAINAGE MAINTENANCE Ditch Maintenance by OSP; as needed in high liability areas** $ 6,500 $ 10,000 $ 8,000 $ 6,000 $ 6,500 $ 6,500 12 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 13 Ditch maintenance by in-house personnel ; rental equipment needed $ In-House $ 7,500 $ In-House $ 20,000 $ In-House $ In-House 14 Agua Fria River crossing culvert clean out and roadway debris removal $ In-House $ In-House $ In-House $ In-House $ In-House $ In-House 15 Culvert Maintenance conducted by in- house; material rental cost $ $ $ $ $ $ $ 44,000 ROADSIDE MAINTENANCE 10 11 2,000 2,500 3,500 2,000 4,000 4,000 2,000 4,000 4,000 4,000 4,000 2,500 2,500 FISCAL YEAR TOTALS Total $ 217,500 $ 222,500 $ 307,800 $ 283,360 $ 236,500 $ 236,500 FY 14-15 budget anticipates a 5% increase on OSP cost and material cost due to inflation FY 14-15 services providision - less OSP usage, more in-house service due to the additional PW employee hired in January 2014 "$ In-House" indicates that the activity will be included in the overall department budget $ values for in house tasks represent cost for materials and rental equipment. 1+2+3 20-431-7006 HURF Captail Maintt (OSP): FY 13 $225,000 ($60,000 for Kachina re-budget) 4+8+10+12 20-431-5900 OSP other (on-going) maintenance: 5+6+7+8+9+11+13+15 20-431-7001 in-house maint. Materials (equipement rental): FY13 $ 165,000 $ 40,000 $ 25,000 FY14 $ 244,000 $ 47,800 $ 16,000 FY15 $ 211,360 $ 38,000 $ 34,000 FY2014 Accomplishments Increase maintenance on existing chip-sealed roads by patching them and preparing them for single chip seal in future years (to be conducted by utilizing continuing contract services). Continue the bi-annual dirt road grading schedule (in-house grading as needed in addition to twice a year town wide grading by contract services). Some dirt roads condition can be improved by applying milling material (in house work) Coordinate with federal, state, county transportation agencies to complete the grant funded town-wide road sign replacement project. Continue the level of maintenance established the last two years by * preserving 3 miles of existing “black” roads with fog coating and crack sealing (to be conducted by utilizing continuing contract services). * Single chip seal approximately 2.5 miles of existing “black” roads (to be conducted by utilizing continuing contract services). Received $75,000 from Yavapai County Flood Control District. Coordinated with the on-call engineer to design the Foothill Drainage Improvement projects. Acquired a used dump truck and a trailer for the tractor. Acquired and installed a cargo container for the storage yard which helped organization of miscellaneous tools and equipment. Hired one Public Works staff member to assist in continual maintenance activities, project management, and overall operations within the Public Works program. 38 Maintained the Town roadway system, prorated per the date of this document, per the council approved budget. Updated the Town’s Geographical Information System (GIS) system from data provided by Yavapai County GIS. Utilized the GIS data to create maps, provide addressing capabilities, and support departmental requests. Assisted the development community in understanding the Town’s ordinance and codes as they related to Engineering and Public Works. Coordinated Central Yavapai Metropolitan Planning Organization (CYMPO) and Arizona Department of Transportation (ADOT) sign replacement projects. The projects were to utilize federal and state dollars to replace failing signs and their post bases within Town right-of-way to provide a secure foundation for regulatory and advisory signage. Maintained Butte Street Park and installed park equipment. Developed a practical multi-year road maintenance plan to outline the maintenance schedule based on current HURF funding level. Documented daily activities and complaints to assist in developing subsequent budgets and work requests. Citizen complaints were handled by the Public Works Department in a timely fashion. FY2015 Performance Goals Roadway and roadside maintenance will evolve using a hybrid approach with a majority of Town personnel performing the maintenance and minor portion being provided by an outside service provider. The continued goal is to increase maintenance activities while utilizing the Town’s HURF revenues to their maximum potential. In order for the roads to hold up its condition, drainage has been a focus for the Public Works Supervisor. The Department will continue repair the drainage so that needed paving or preservation maintain ace can last through expected lifespan. Continue the level of maintenance established the last three years by * preserving 3 miles of existing “black” roads with fog coating and crack sealing (to be conducted by utilizing continuing contract services). * Single chip sealing approximately 2.5 miles of existing “black” roads (to be conducted by utilizing continuing contract services). * grading dirt roads twice a year by on call contractor. Continue to seek grants for the unfunded capital Improvement projects. Manage implementation of the fully funded FY2015 Capital Improvement Program. Use Flood Control District Fund to complete the Foothill Dr. Drainage project construction. Assist Open Space and Trail Committee’s trail initiative. Continue to manage and maintain the Town’s leased facilities and property. Capital Engineering Capital Engineering is responsible for maintaining the orderly development and construction of the Town’s infrastructure. Master plans of public works infrastructure are implemented through a Capital Improvement Program. Infrastructure design and construction are coordinated through this program, while actual construction is managed by the Public Works division. This program assures compliance with Town standards and code requirements for public and private development. 39 Town of Dewey-Humboldt FY2014 Capital Improvement Projects (primarily funded by grant funding) Project Title FY2013-2014 Community Facilities - Parks, Recreation, Trails, Open Space and Library Multi-use trails Open Space project - Planning Phase Trailhead Parking Area by Precott N. Forest $ 146,768 35,000 10,000 General Government Road/Facility Acquisition (OBCHwy, Town Facilties) General Office Operations CDBG Fund 200,000 20,000 Transportation - Roads and Right-Of-Way Miscellanous road acquisition and improvement Sign Replacement Capital Equipment Traffic Control/ Light at Main St. and SR 69 410,703 111,500 45,000 600,000 Utilities - Drainage, Sanitation, Water, and Sewer Drainage Improvements 85,500 Total $ 1,664,471 Project Funding Other Funds 10,000 Grant Revenues 1,654,471 Total $ 1,664,471 40 Engineering: Public Works, Facilities, Infrastructure General Revenues: Local & Shared ACCT# General Fund Existing Cash Fund Balance HURF Revenues HURF Fund Existing Cash Fund Balance Grant Effort 2015 2015 Total Estimate DESCRIPTION NOTES 10-430-4000 10-430-4110 10-430-4111 10-430-4120 10-430-4150 10-430-4160 10-414-4160 ENGINEERING Public Works Operator Health Insurance (BCBS, Life, HS) Dental & Vision Insurance Retirement Medicare State Unemployment Workers Compensation 10-430-5001 10-430-6010 10-430-6020 OSP: Engineering Dues and Memberships Training and Travel $ 52,272 6,900 660 6,333 765 420 1,781 $ 2,000 200 500 Total Engineering 10-431-4000 10-431-4010 10-431-4110 20-431-4111 10-431-4120 10-431-4150 10-431-4160 10-431-4170 10-431-5200 10-431-5500 10-431-5503 General Revenues: Fines & Fees $ PUBLIC WORKS, FACILITIES Salary - Public Works Operators Overtime Health Insurance (BCBS, Life, HS) Dental & Vision Insurance Retirement Medicare State Unemployment Workers Compensation OSP: Janitorial Service Facilities Town Hall Rent Maint Town Hall Offices/PW Yard 71,831 $ 500 - $ - - - - - 500 $ - $ - $ $ - $ - - 52,772 6,900 660 6,333 765 420 1,781 - - 2,000 200 500 - $ $ - - $ 72,331 $ $ $ $ $ $ $ $ $ $ $ 64,482 800 13,560 1,320 7,858 947 840 2,374 3,000 36,200 3,000 $ $ $ $ 2,300 26,500 200 10,000 64,482 800 13,560 1,320 7,858 947 840 2,374 3,000 36,200 3,000 - - - - - - - - - - - - - - - - - - - - - - - - - $ $ $ $ $ $ $ $ $ 7,000 1,560 6,000 2,800 2,000 1,500 18,000 12,000 - $ $ $ $ $ 38,000 9,000 1,000 10,000 34,000 $ $ $ 10,000 191,360 30,000 10-431-5900 10-431-5903 10-431-6020 10-431-6300 OSP: Other Liability & Auto Insurance Training and Travel General Supplies 2,300 26,500 200 10,000 - - - - 10-431-6500 10-431-6510 10-431-6520 10-431-6530 10-431-6600 10-431-6595 10-431-7001 10-431-7006 Facilities: Electric Facilities: UNS Gas Facilities: Telephone Facilities: Cellular Facilities: Fuel Facilities: Vehicle Maint Road/Facility Accquisition Parks & Recreation 7,000 1,560 6,000 2,800 2,000 1,500 18,000 12,000 - - - 20-431-5900 20-431-6600 20-431-6595 20-431-6900 20-431-7001 OSP: Road Maintenance Facilities: Fuel Facilities: Vehicle Maint Heavy Equip Maintenance In-House ROW Maint Materials - - - 38,000 9,000 1,000 10,000 34,000 - - - - 20-431-7002 20-431-7006 20-431-7400 Capital Road Improvements -Eng Capital Road Improvements - PW Capital Equipment - - - 7,177 191,360 2,823 Total Public Works TOTAL - 30,000 $ 224,241 $ - $ - $ 290,537 $ 32,823 $ - $ 547,601 $ 296,072 $ 500 $ - $ 290,537 $ 32,823 $ - $ 692,263 Anacronyms defined: APWA American Public Works Association AZBTR Salary Salary 52,772 ICMA 401A ADP Payroll ADP Payroll AMRRP general engineering needs, such as sign enginering, surveys APWA conferences or trainings 2 FTE's Town hall cleaning service. Lease, Town Hall Town Hall alarm,insect control, storage and misc. inpsections AMRRP office supplies, furnitures Town Hall Utilities&traffic signal @Kachina Pl. Town Hall Utilities town offices phones cell phones/ allowances for PW and B/S non-road maintenance related Increased use of trucks for inpsections property purchase related, assessment park operation & $10,000 for trails see Level of Service sheet see Level of Service sheet Foothill draiange in conjunction w/ Flood control fund; firebreak ongoing maint see Level of Service sheet heavy equipment, such as excavator Arizona Board of Technical Registration 41 Chapter 7: Town Clerk Department The Town Clerk’s office is responsible for the preservation of legal documents and is the source of information on Town Council legislation and actions. The Town Clerk’s office also conducts all municipal elections, assists the Town Council in administering the appointment of members to serve on various Town boards, commissions, and committees, and provides special services to the public, including notary services. The Town Clerk’s Office is also the direct liaison with the Town’s insurance provider – AZ municipal risk retention pool. With the on-going implementation of a new departmental-wide records management system, we expect to improve the organization and accessibility of the Town’s vital records. The Town Clerk’s Office consists of the Town Clerk, an Administrative Assistant who is also sharing duties with other departments and a Receptionist who assists the Community Development on permitting and case entry. The Office’s budget accounts for the personnel cost for the Clerk and the Administrative Assistant (the Receptionist’s personnel cost is reflected under the Community Development Department). In addition to personnel cost and records related operating cost, this budget unit also accounts for state of art technologies such as the Granicus live meeting streaming and minutes-taking tool and the Laserficshe system for record archiving and searching. The Town’s monthly newsletter cost is also included in the Clerk’s budget. FY2014 Accomplishments Processed and conducted all Council meetings; managed live and archived on-line audio and video broadcasts of Town Council and other meetings. Coordinated an open meeting law training for all public body members and staff. Provided a Candidate Orientation for the 2014 fall election. Responded to requests for public records within 48 hours. All information requests were reviewed and processed accordingly. Indexed all existing permit records into Laserficshe system. Develop searchable electronic versions of existing records for staff and public on a continuing basis. As records get indexed they will also be searchable electronically The Administrative Assistant continued to attend the Arizona Municipal Clerks’ Institute, obtaining the maximum points possible. Entered all old permit records into the town’s current permitting system. Receptionist became familiar with daily permit questions and procedures. FY2015 Performance Goals Will conduct a Mayor and Council Candidate election. The election process includes scheduling election deadlines, managing and providing election packets, managing candidate reporting timelines, liaison with Yavapai County Elections Department and other public entities. Continue to index records. Develop searchable electronic versions of existing records for staff and public. Adopt records management protocols for all departments. Continue research replacing current obsolete permit module. Assist building safety services transition. 42 Town Clerk ACCT# 10-414-4000 10-414-4110 10-414-4111 10-414-4120 10-414-4150 10-414-4160 10-414-4160 General Revenues: Local & Shared General General Revenues: Fund Fines & Fees Existing Cash Fund Balance $ $ $ $ $ $ $ $ DESCRIPTION Salary: Town Clerk Department Health Insurance (BCBS, Life, HS) Dental & Vision Insurance Retirement Medicare State Unemployment Workers Compensation 95,016 14,160 1,320 11,402 1,378 840 246 - $ - - HURF Revenues HURF Fund Grant Effort Existing Cash 2015 Fund Balance 2015 Total Estimate NOTES $ - - $ - - $ - - - $ $ $ $ $ $ $ 95,016 14,160 1,320 11,402 1,378 840 246 Salary for town clerk & admin asst BCBS, Fort Dearborn, Health Equity Delta Dental, Avesis Vision ICMA 401A ADP Payroll ADP Payroll AMRRP $11,000 Granicus annual; Am Legal $5000 annual/rate depending on quantity 10-414-5100 Softwar Impl: Granicus & Amer Legal $ 16,000 - - - - - $ 16,000 10-414-5300 OSP Elections $ 26,000 - - - - - $ 26,000 scheduled elections August, 2014 10-414-6010 Dues and Memberships $ 360 $ 10-414-6020 Training and Travel $ 1,500 $ $ $ $ 16,000 2,400 3,100 AMCA and IIMC Anacronym defined 360 below 1,500 clerk's institute/academy, annual conf. monthly issue(Melcher), 8 B&W Newsletter Publication 10-41-6200 Print,Publish,Advertise-printer 10-414-6200 Print,Publish,Advertise-other 10-414-6100 10-414-6380 Software License 17,300 TOTAL $ Anacronyms defined: AMCA - American Municipal Clerks Association, 207,022 - - - - - - - - - - $ - $ - $ - $ - $ $ $ $ 16,000 Publications, Postage, 8-page limit 2,400 sharper printer lease 3,100 Legal ads, Public Hearings, etc. - $ $ 17,300 - - $ 207,022 Annual Support Records Mgmt Software (Laserfiche)$2500; new permit module(rebudget) IIMC - International Institute of Municipal Clerks 43 Chapter 8: Public Safety Dewey-Humboldt’s Town public safety program is managed through an intergovernmental agreement with the Yavapai County Sheriff’s Office. This program provides the resources to accomplish the mission of public safety for the citizens of Dewey-Humboldt. The Town’s public safety is an effort that begins with law enforcement, continues through adjudication, and concludes with process improvements. The Public Safety department handles law enforcement, and Silent Witness, while the Justice department will include the Municipal Court, the Town prosecutor, the public defender, and related services. FY 2014- 15’s IGA maintains the previous years’ level of services which provides for 1 deputy Sherriff to the Town for 20 hours per day between the hours of 6 am and 2 am daily (rotation of 3 full-time Deputy Sherriff positions). The Yavapai County Sherriff’s Department also provides related ancillary and support services, such as sergeant supervision, dispatch services, and animal control services. FY 15 IGA cost will be $366,238. The Town is responsible for the facility and utility costs of the Sherriff’s D-H station. The Town also anticipates an approximate $1,800 for emergency response services that the County’s Emergency management office provides. 44 Public Safety (Sheriff Services, Emergency Management) General Revenues: Local & Shared ACCT# DESCRIPTION 10-425-5300 OSP: Sheriff Services 10-425-5301 OSP: YC Emergency Management Facilities: Sheriff Office Rent Maintenance Sheriff's Office Utilities 10-425-5501 10-425-5503 10-425-6500 General Revenues: Fines & Fees Grant Effort 2015 2015 Total Estimate NOTES 366,238 - - $ 1,800 9,500 200 2,500 - - $ $ $ $ 366,238 Intergovernmental Agreement (IGA) with Yavapai County Intergovernmental Agreement (IGA) with Yavapai County 1,800 9,500 Local office for Sheriff and Deputies 200 maintenance and supplies 2,500 electricity Total Sheriff Services $ 380,238 $ - $ - $ 380,238 TOTAL PUBLIC SAFETY $ 447,075 $ 20,000 $ - $ 467,075 45 Chapter 9: Municipal Court The Town Court budget unit accounts for costs associated with the judicial branch of the town government. The Town Court consists of one Judge, one court Clerk, one contracted prosecutor and one contracted public defender. The Judge of the Town Court hears cases involving violations of town ordinances, civil and criminal traffic cases, and misdemeanor cases that occur within the Town limits. The court also issues orders of protection, injunctions against harassment and marriage licenses. The expenditures are funded by the general fund revenues. FY2014 Accomplishments Communication between law enforcement, prosecution, defense and the court continued to grow. Both the Town prosecutor and public defender contracts were changed to new providers this year. This change benefited the Town financially in that appropriate caps were put on expenditures in those areas. Both the Town prosecutor and the public defender are consummate professionals who understand the nature and function of this level of court and represent both the Town and citizens in a highly skilled and personable manner. A solid foundation of trust has been built between all of the parties which ultimately leads to a court system the citizens can trust and rely on. Reported to the Council every quarter along with other public safety personnel. Heard three code enforcement cases as the town’s hearing officer. Clarified the restricted funds from funds that can be used for general purposes. Received a clean audit of the court financial records. FY2015 Performance Goals Community outreach, in conjunction with the court will begin a community service program with the dual purposes of providing a pool of volunteers for projects in the town and to allow defendants to have an alternative to jail for fines owed to the Court. Enhance the court room by placing the state seal and town logo. Continued efforts will be made to make locating and using the court easier for citizens through enhanced signage and information available from the Sheriff's office. The Court will meet quarterly with public safety and the Council to report on caseload and court activity. The continuing emphasis of the court will be on providing convenient services for citizens regardless of the type of need. Continue hearing code violation cases as the Hearing Officer free of charge to the Town. 46 Magistrate Court General Revenues: Local & Shared ACCT# 10-421-6520 10-421-6900 Equipment Non-Capital 10-421-4120 10-421-4150 10-421-4160 10-421-4170 10-421-5303 10-421-6300 10-421-6010 10-421-6020 10-421-6300 10-421-6300 10-421-6500 Grant Effort 2015 2015 Total Estimate DESCRIPTION Salary: Town Magistrate Retirement Medicare State Unemployment Workers Compensation Lease, Magistrate Court OSP: Specialized Court Fees Dues and Memberships Training and Travel Books & Subscription General Supplies Utilities - Electric & Gas Telephone 10-421-4000 General Revenues: Fines & Fees NOTES $ 26,623 2,331 676 840 127 3,540 1,500 2,500 500 1,000 2,620 780 $ 20,000 - $ - $ $ $ $ $ $ $ $ $ $ $ $ $ 46,623 2,331 676 840 127 3,540 1,500 2,500 500 1,000 2,620 780 Salary ICMA 457 ADP Payroll ADP Payroll AMRP - - - - $ $ $ 2,600 new quick book software 2,000 Public Defender $60/hr 19,200 Prosecutor Contract $1,600/mo - $ 86,837 translator, judge Pro Term Includes travel to Jail appearances Legal research General office supplies as related to Court function Annual hardware lease from State and 10-421-5001 OSP:Legal Services -Public Defender 10-421-5003 OSP:Legal Services - Prosecutor Total Magistrate Court 2,600 2,000 19,200 $ 66,837 $ 20,000 $ 47 Appendix A: Fund Summary The Town’s budgetary fund structure is organized around financial principles and legal requirements. Financial principles explain why the General Fund is divided into funds with fundamentally different purposes. Legal requirements attach to other income, like HURF, LTAF, and grant funds. Other funds are maintained to help match income available to the General Fund with activities supported by the General Fund, like the building and court fees. Purpose Source General Fund (on-going) Fund Operational costs supporting programs and services that are intended to continue for more than one year Current Revenues: Town sales tax; franchise fees. State Shared sales tax, income tax and vehicle license tax and finally, interest and miscellaneous revenues. General Fund (one-time) Operational or capital costs for programs and services that can be accomplished in a single year Cash reserves of unspent Town sales tax; franchise fees. State Shared sales tax, income tax and vehicle license tax and finally, interest and miscellaneous revenues. General Fund (Fees) Support the costs associated with staff review Current local fee revenues General Fund (Court Fines) Contribute to the costs associated with court administration Current Court fine and fee revenues General Fund Operational Reserves Support committed Cash reserves (savings) HURF Development and maintenance of transportation improvements Current Highway User Revenue Fund distributions and cash fund balance ARS § 28-6501 and transportation impact fees LTAF Transportation, cultural, educational, historical, recreational or scientific facilities or programs Current Local Transportation Assistance Fund revenue distributions assistance fund, ARS § 28-8101 Grant funds Purpose in grant application Grant donors Impact Fees Fees associated with paying for the costs of growth Impact Fees levied per A.R.S. § 9-463.05 48 Town of Dewey Humboldt General Fund Summary GENERAL FUND REVENUES Local Taxes Permits and Fees Intergovernmental Fines, Forfeitures and Penalties Interest Earnings Miscellanous Total Revenues EXPENDITURES Town Council, Mgt & Legal Magistrate Court Public Safety Town Clerk Finance IT Support Com. Devel.& Library Public Works &Engineering Operational Capital Expenditures Total Expenditures Excess of Revenues over (under) Other (Uses) Operating Contingency Net Increase (Decrease) in Fund 2013 BUDGET 2014 BUDGET 2015 BUDGET 350,000 50,000 906,000 21,000 40,000 3,000 1,370,000 350,000 51,000 972,000 27,000 30,000 1,000 1,431,000 380,000 56,000 1,038,150 25,650 5,000 200 1,505,000 125,128 83,950 370,311 149,133 115,329 88,800 213,448 127,658 83,804 370,831 180,305 88,779 97,000 196,041 173,599 86,837 380,238 207,022 85,172 41,980 219,242 215,406 2,000 239,631 5,000 266,572 30,000 1,363,505 6,495 1,389,049 41,951 1,490,663 14,337 (508,652) (511,520) (240,000) (502,157) (469,569) (225,663) Fund Balance at the Start of the Year 2,429,668 1,927,511 1,457,942 Fund Balance at the End of the Year 1,927,511 1,457,942 1,232,279 Summary Committed for Contingency Committed for Reserves Unassigned Fund Balance Total Fund Balance 508,652 654,920 763,939 1,927,511 511,520 654,920 291,502 1,457,942 240,000 654,920 337,359 1,232,279 49 Town of Dewey Humboldt HURF Fund Summary HURF FUND 2015 BUDGET 2013 BUDGET 2014 BUDGET REVENUES HURF Impact Fees Interest Earnings Total Revenues 260,000 1,500 500 262,000 274,000 3,000 850 277,850 290,237 EXPENDITURES Operational Capital Expenditures 23,000 309,000 84,800 279,000 174,801 86,355 ExcessExpenditures Total of Revenues over (under) Expenditures Other (Uses) Operating Contingency 332,000 (70,000) 363,800 (85,950) 261,156 29,081 - (295,000) Net Increase (Decrease) in Fund Balance (70,000) (85,950) (265,919) Fund Balance at the Start of the Year 302,875 232,875 146,925 Fund Balance at the End of the Year 232,875 146,925 (118,994) 654,920 (422,045) 232,875 654,920 (507,995) 146,925 1,309,840 (1,428,834) (118,994) Summary Committed for Contingency Committed for Reserves Unassigned Fund Balance Total Fund Balance 290,037 200 50 Town of Dewey Humboldt Combined Budget Summary General Fund, HURF (Special Revenue) Fund and Grants Fund 2014-2015 General Fund HURF Fund Subtotal of General and HURF Funds Grants Fund 2014-15 Total Total Revenues 1,505,000 290,537 1,795,537 1,877,000 3,672,537 Total Expenditures 1,490,663 343,360 1,834,023 1,877,000 3,711,023 14,337 (52,823) (38,486) - (38,486) Other (Uses) Operating Contingency (240,000) - (240,000) - (240,000) Net Increase (Decrease) in Fund Balance (225,663) (52,823) (278,486) - (278,486) Fund Balance at the Start of the Year 2,899,668 372,947 3,272,615 - 3,272,615 Fund Balance at the End of the Year 2,674,005 320,124 2,994,129 - 2,994,129 Excess of Revenues over (under) Expenditures Summary Committed for Contingency 240,000 240,000 240,000 Committed for Reserves 654,920 654,920 654,920 2,099,209 Unassigned Fund Balance Total Fund Balance 1,779,085 320,124 2,099,209 2,674,005 320,124 2,994,129 - 2,994,129 51 Appendix B: Four Year Financial Detail 52 53 54 55 56 Appendix C: Glossary AMRRP means the “Arizona Municipal Risk Retention Pool,” a not-for-profit corporation, owned and operated by its Members in a cooperative effort to provide protection from losses to Members’ resources. ARS means “Arizona Revised Statutes,” as found at http://www.azleg.state.az.us/ArizonaRevisedStatutes.asp. CAFR means “Comprehensive Annual Financial Report,” an annual financial report prepared by local governments. Capital Assets are assets of the Town costing more than $10,000 with a useful life of longer than one year. Capital Expenditures are expenditures for Capital Assets. CIP means “Capital Improvement Program.” A CIP helps plan multi-year construction, supplementing the one-year Budget. Development Agreements are agreements between the Town and a Developer to facilitate development. Described by ARS § 9-500.05, development agreements can be used in a variety of ways to ensure that capital facilities are adequate to serve new development. Some examples are a developer constructing capital facilities to serve a greater area than their particular development with an agreement that he or she will be paid back as new developments come on-line and tie into the facilities, or a development agreement that specifies that certain facilities will be constructed at different phases of development. Development fees or Impact fees are defined under ARS § 9-463.05. A municipality may assess development fees to offset costs to the municipality associated with providing necessary public services to a development. Fees must be assessed in a nondiscriminatory manner. The Town has a development fee program. Fiscal year (FY) means the year used by the Town for accounting and budgeting purposes, from July 1 to June 30. FY2011 begins on July 1, 2010, and ends on June 30, 2011. FTE means “Full Time Equivalent,” that is, approximately the number of persons performing the work on a full time basis. Fund Balance is the difference between assets and liabilities reported in a governmental fund. GFOA means the “Government Finance Officers Association of the US & Canada,” a professional association of state, provincial and local finance officers in the United States and Canada. HURF means “Highway User Revenue Fund” as outlined by ARS § 28-6501. ICMA means the “International City/County Management Association,” the professional and educational association for appointed local government administrators throughout the world. Impact fees: see “Development fees.” Income Tax Revenues are the Town’s portion of the State income tax. Although local governments in Arizona do not have the authority to assess income tax, the State issues 15% of the previous 57 two years income tax collected by the State to the Town based on the Town’s population as a percentage of total State population. LTAF means “Local Transportation Assistance Fund” as outlined by ARS § 28-8101 and following. NCS means “National Citizens Survey,” which provides tailored data to help with performance management, longitudinal trends, and comparisons with other communities. NFIP means “National Flood Insurance Program,” the program provides flood insurance in more than 20,000 communities and is managed by the Federal Insurance and Mitigation Administration (FIMA). See http://www.floodsmart.gov/ for more information “Part 1 crimes” are murder, non-negligent manslaughter, forcible rape, robbery, aggravated assault, burglary, larceny-theft, motor vehicle theft, and arson. State-Shared Revenues are the Town’s portion of the state transaction privilege tax. All sales transactions in the State are subject to a 5% state transaction privilege tax. This is allocated to state government (50%), school districts (40%) and cities and towns (10%). The formula for calculating the share of these funds that will be distributed to a given municipality is based on the population as a percentage of the total State population Town Staff means: Town Manager Building Official/Inspector Community Development Coordinator Town Clerk Administrative Assistant Receptionist Public Works Supervisor Public Works Operators Accountant Town Magistrate Court Clerk Town IT Consultants: Four D. LLC Town Attorney Curtis, Goodwin, Sullivan, Udall & Schwab PLC Transaction Privilege Tax (TPT) is basically the same thing as a sales tax, except that the person responsible for paying the tax is the vendor, not the purchaser. In addition to sales tax received from State shared revenues, a municipality may assess a sales tax within its jurisdictional boundaries to fund a variety of capital facilities and services. The Town assesses TPT at the 2% rate for most activities in FY2011. Transportation Revenues are revenues for street and highway funding distributed by the state to the Town from several sources. These include HURF, LTAF, State lottery, and vehicle license fees. There are restrictions on many of these funds. User Fees mean revenues assessed per Council ordinance for work done by the Town primarily benefiting a specific person or parcel owner, and requested by that person or owner. Examples include zoning permits and building fees. 58 Appendix D: Town Statistical and Supplemental Data The Town of Dewey-Humboldt is located in Central Yavapai County approximately 18 miles west of Interstate 17 and 15 miles east of the City of Prescott. Two major state highways, SR 69 and SR 169, transect the Town, providing access to services, employment and transportation throughout the County and Arizona. On December 20, 2004, the Town of Dewey-Humboldt was incorporated with an estimated population of approximately 4,005. The Town of Dewey-Humboldt's incorporation in December, 2004 combined two adjacent unincorporated communities: Dewey and Humboldt. These distinct but interconnected places share a rich history form the first non-Indian settlers in the area in the 1860's. The settlers found ruins providing evidence of Indians, engaged in raising livestock, growing crops, and mining from 900 to 1300 A.D. Rock Art was left by the earliest of these people who may have been known as the "Tribe with White Dogs." It is believed that they were the Hohokom People, and were later followed by the Yavapai Tribe who inhabited the area and continued the agricultural and mining traditions. The 1860's brought prospectors to Dewey and Humboldt in search of gold. The first of these was King Woolsey, whose house near the Agua Fria River was built from stones of Indian ruins on his property. Later, Levi Bashford built a small smelter that operated from 1876 through 1884. When it was destroyed by fire, the remains were bought and operated by a company that built the Val Verde Smelter, a larger operation running from 1899 until 1904. The company-owned town of Val Verde developed, including a post office. After another fire and subsequent purchase of the land and water rights by the Arizona Smelting Company, a new and larger smelter was constructed in 1906, and the Town was renamed Humboldt after the naturalist and explorer, Friedrich Heinrich Alexander Von Humboldt. This was the beginning of a period of growth and prosperity with the forming of the Humboldt Improvement District resulting in the building of a hospital, fire station, clubhouse, stores, large homes and a population over 1,000 in 1907. The area prospered until after World War I when the demand for ore diminished and the population declined. The smelter's closing in 1930 was followed by the closings of the hospital and many businesses during the Depression years. In the Dewey area, formerly known as Cherry Siding, settlers came for ranching and growing crops in addition to mining. With a train stop and stage coach station, Dewey expanded. Just prior to the turn of the 20th Century, there was a hotel, boarding house, saloons, livery stable and grocery located near the present intersection of SR 69 and SR 169. After fires destroyed many buildings, the community rebuilt including a schoolhouse, which closed in 1931 during the Great Depression. Farming and ranching continued to be mainstays in the fertile, temperate area. The populations of the Dewey and Humboldt communities continued to decline until the 1950's with the paving of SR-69, the rebuilding of the Humboldt Elementary School and the Blue Hills subdivision. Other land divisions and the Lazy River Acres subdivision in the 1960's resulted in population growth through the area, even with the closing of the Iron King Mine and later removal of the railroad tracks in 1971. 59 Young's Farm, established by Elmer Young in 1946 at the intersection of SR 69 and SR 169, was the center of activity in the area, hosting a variety of activities including a farmer's market, corn festival, and the annual pumpkin festival which drew 150,000 people from throughout the state in the 1980's, and continued to prosper until it closed in 2006. Through those 30 years and into the present, the Dewey-Humboldt area enjoys slow growth, which ensures the survival and continuation of the Town's rural character. 60 Appendix E: Financial Policies Dewey-Humboldt Principals of Sound Financial Management Introduction The Town has an important responsibility to its citizens to carefully account for public funds, to manage its finances wisely, and to plan for the adequate funding of services desired by the public, including the provision and maintenance of public facilities. In these times of tight budgets, of major changes in federal and state policies toward local government, and of limited growth in the Town's tax base, the Town needs to ensure that it is capable of adequately funding and providing those government services desired by the community. Ultimately, the Town’s reputation and success will depend on the public’s awareness and acceptability of the management and delivery of these services. These adopted Principles of Sound Financial Management establish guidelines for the Town’s overall fiscal planning and management. These principles are intended to foster and support the continued financial strength and stability of the Town of Dewey-Humboldt as reflected in its financial goals. The Town’s financial goals are broad, fairly timeless statements of the financial position the Town seeks to attain:  To deliver quality services in an affordable, efficient and cost-effective basis providing full value for each tax dollar.  To maintain an adequate financial base to sustain a sufficient level of municipal services, thereby preserving the quality of life in the Town of Dewey-Humboldt.  To have the ability to withstand local and regional economic fluctuations, to adjust to changes in the service requirements of our community, and to respond to changes in Federal and State priorities and funding as they affect the Town's residents.  To maintain a high bond credit rating to ensure the Town’s access to the bond markets and to provide assurance to the Town's taxpayers that the Town government is well managed and financially sound. Following these principles will enhance the Town's financial health as well as its image and credibility with its citizens; the public in general, bond rating agencies and investors. To achieve these purposes as the Town of Dewey-Humboldt continues to grow and develop, it is important to regularly engage in the process of financial planning including reaffirming and updating these financial guidelines. Policy changes will be needed as the Town continues to grow and become more diverse and complex in the services it provides, as well as the organization under which it operates to provide these services to its citizens. Fiscal Planning and Budgeting Fiscal planning refers to the process of identifying resources and allocating those resources among numerous and complex competing purposes. The primary vehicle for this planning is the preparation, monitoring and analysis of the Town’s budget. It is increasingly important to incorporate a long-term perspective and to monitor the performance of the programs competing to receive funding. Forecasting The Chief Financial Officer will prepare a 3-year long-range financial forecast that will incorporate both revenue and expenditure estimates for the Town’s major operating funds. The 3-year revenue forecast will focus solely on revenues that are anticipated to be sustainable over the 3-year period. 61 The estimates of non-agency revenues, grant and agency revenues, and inter-fund transfers will also be provided. Expenditure projections should include the anticipated operating impacts of the adopted capital improvement program. The 3-year long-range forecast will be updated annually and presented to the Town Council at the start of the Town budget process. In the event that the Town issues debt securities, the CFO will prepare 5-year forecasts, rather than 3-year. Additionally, the CFO will prepare less detailed 10-year forecasts for use in the Capital Improvement Program budget only. Schedule The Town Manager shall submit a proposed annual budget to the Town Council before the March 31st in each year. This proposed budget must be based on Council’s established goals. The Town Manager shall execute the budget as finally adopted, pursuant to Title 42, Chapter 7, Article 3, Section 17105 of the Arizona Revised Statutes, as amended. The Town will budget revenues and expenditures on the basis of a fiscal year which begins July 1st and ends on the following June 30th. The Town Council shall adopt the budget for the following fiscal year no later than June 1st. If the budget is not adopted before June 1st, the Council shall adopt a continuing resolution to allow the Town to expend funds until the budget is adopted. The Town Manager shall provide annually a budget preparation schedule outlining the preparation timelines for the proposed budget. Budget packages for the preparation of the budget, including forms and instructions, shall be distributed to Town programs in a timely manner for the Programs’ completion. Program officials shall prepare and return their budget proposals to the Budget Office, as required in the budget preparation schedule. Standards The Town will prepare a budget in accordance with the framework established by the National Advisory Council on State and Local Budgeting in Recommended Budget Practices – A Framework for Improved State and Local Government Budgeting and the Government Finance Officers Association in its Distinguished Budget Award Program. The proposed budget will contain the following:  Revenue estimates by major category, by fund;  Expenditure estimates by program levels and major expenditure category, by fund;  Estimated fund balance by fund;  Debt service, by issue, detailing principal and interest amounts;  Proposed personnel staffing levels per program;  A detailed schedule of capital projects; and  Any additional information, data, or analysis requested of management by the Town Council. The Town maintains its financial records in accordance with accounting principles generally accepted in the United States of America known as GAAP. Although the Town’s budget is prepared on a modified cash basis that differs from GAAP, the Town will attempt to minimize these differences between the budget basis of accounting and GAAP. Operating Budget The operating budget will be organized around policy outcomes, typically in programs, intended to be achieved within the budget period. It is often appropriate to refer to interim outcomes towards a 62 longer-term outcome beyond the current year. The preferred policy outcomes will be explicitly outlined and will describe the changes in the lives of individuals, families, organizations, or the Town as a result of the program. Line items within programs should describe discrete actions, and should be neither so vague as to confuse the expected outcome nor so granular that the mass of detail is distracting. Fiscally, the operating budget will be based on the principle that current operating expenditures, including debt service, will be funded with current revenues creating a balanced budget. The budget will not use one-time (non-recurring) sources to fund continuing (recurring) uses, postpone expenditures, or use external borrowing for operational requirements. The budget will incorporate the best available estimates of revenues and expenditures. The budget will fully appropriate the estimated actual expenditures needed for authorized regular staffing. A system will be used to facilitate position control. At no time shall the number of full-time and regular part-time employees on the payroll exceed the total number of positions authorized by the Town Council. Pursuant to Personnel Administrative Regulations, additional temporary appointment of employees can be made with the approval of the Town Manager. Unspent appropriations for significant programs and major projects will be considered for reappropriation in the subsequent fiscal year. Such re-appropriation shall be included to finance the overall proposed budget. There may be transfers of appropriations between programs that occur only by Council action amending the adopted budget. Performance Measures Performance measurement indicators will be integrated into the budget process as appropriate. Performance measures will be monitored and reported on an annual basis. Alternatives for improving the efficiency and effectiveness of the Town's programs and the productivity of its employees will be considered during the budget process. Duplication of services and inefficiency in service delivery should be eliminated wherever they are identified. Budget Risk Management The Town’s annual budget will include contingency appropriation to provide for unanticipated increases in service delivery costs, emergencies, and needs that may arise throughout the fiscal year. The contingency appropriation can only be expended upon separate Council action. The Town shall establish appropriate management controls to monitor expenditure budgets to ensure they do not exceed authorizations. For operating budgets, this control shall be exercised at the program/fund level. For capital budgets, this control shall be at the project level. A quarterly report on the status of the General Fund budget and trends will be prepared by the Finance Department and presented to the Town Council by no later than 60 days of the end of each quarter. In addition, the quarterly report shall include revenue and expenditure projections through the end of the fiscal year. If a deficit is projected during any fiscal year, the Town will take steps to reduce expenditures, increase revenues or, if a deficit is caused by an emergency, consider using the Undesignated General Fund Balance, to the extent necessary to ensure a balanced budget at the close of the fiscal year. The Town Manager may institute a cessation during the fiscal year on new hires, promotions, transfers, and capital equipment purchases. Such action will not be taken arbitrarily and without knowledge and support of the Town Council. 63 Capital Budget The Capital Budget will be prepared in accordance with the Capital Improvement Program section hereof. Fund Balance Fund Balance is comprised of Nonspendable, Restricted, Committed, Assigned, or Unassigned components. This policy refers to unrestricted fund balances which would include the latter three fund balance components: Committed, Assigned, or Unassigned. See the chart at the end of this section for an explanation of Fund Balance Reporting. The Town’s Unrestricted Fund Balances will be maintained to provide the Town with a comfortable margin of safety to address emergencies and/or unexpected declines in revenue without borrowing. Committed Fund Balance Mayor and Council action is required to “Commit” and “Uncommit” funds for a specific purpose. The Town will maintain a Contingency Reserve Fund as part of the committed component. This fund will maintain a balance of at least 10% and no more than 30% of the general fund budgeted expenditures for the current fiscal year. The exact percentage will be set by Council each year as part of the budget process. The Town will maintain an Operational Reserve at least 30% and no more than 50% of the average General and HURF fund total revenues or expenditures for the preceding three years; whichever amount is higher. The intent of this is to provide additional stability to the General Fund recognizing the cyclical nature of the economy. The Operational Reserve may only be used to cover unforeseen emergencies and unexpected declines in revenue. To the extent these reserves are expended, the Town will increase its General Fund revenues or decrease its expenditures as necessary to prevent the continued use of these reserves. The Town must restore to the minimum limit over a period not to exceed three years. Assigned Fund Balance Use of any Assigned Fund Balance up to $4,999 requires approval of both the Town Manager and finance. Amounts $5,000 and up requires finance, Town Manager and Council approval. Unassigned Funds in excess of the minimum targets will be retained in the Unassigned General Fund Balance, and may be considered to supplement "pay as you go” capital outlay and one-time operating expenditures, or may be used to prepay existing Town debt. These funds may not be used to establish or support costs that are recurring in nature. 64 Fund Balance Reporting CLASSIFICATION DEFINITION "Amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be NONSPENDABLE maintained intact." UNRESTRICTED "Fund balance should be reported as restricted when constraints placed on the use of resources are either: a. Externally imposed by creditors (such as RESTRICTED through debt covenants), grantors, contributors, or laws or regulations of other governments; or b. Imposed by law through constitutional provisions or enabling legislation." "Used for specific purposes pursuant to constraints imposed by formal action of the government's highest level of decision-making COMMITTED authority" "Amounts that are constrained by the government's intent to be used for specific purposes, but are neither restricted nor ASSIGNED committed" EXAMPLES Permanent principal of an endowment fund, Prepaid items, inventories Restricted by state statute, Taxes dedicated to a specific purpose (HURF), Revenues restricted by enabling legislation, Grants earned but not spent, Unspent bond proceeds, Debt covenants Formal Minimum Fund Balance Contingency Reserve Fund Economic Uncertainty Fund Town Council decides to set aside $1M for a new town hall Other Specified Contingencies, Appropriated Fund Balance, Council deligates the authority to assign fund balance to the Town Manager (during budget process) Unassigned fund balance is the residual classification for the General Fund. This is fund balance that has not been reported in any other classification. The General Fund is the only fund that can report a positive unassigned fund balance. Other governmental funds would report deficit UNASSIGNED fund balances as unassigned. Expenditure Control Management must ensure compliance with the legally adopted budget. In addition, purchases and expenditures must comply with legal requirements and policies and procedures set forth by the Town. Expenditures will be controlled by an annual appropriated budget at the program/fund level. The Town Council shall establish appropriations through the budget process. The Town Manager may transfer expenditure authority between line items within a program, but only the Council may transfer appropriations between programs. Written procedures will be maintained for administrative approval and processing of budget transfers between line items, programs, and funds. All purchases, including contracts exceeding $5,000 must be executed by the Town Council: other purchases, including contracts and financial obligations may be executed by the Town Manager when appropriated in the annual budget. Program heads are responsible for monitoring expenditures to prevent exceeding their total program expenditure budget. It is the responsibility of these program heads to immediately notify the Town’s Chief Financial Officer and the Town Manager of any circumstances that could result in a program budget being exceeded. 65 The Town will maintain a purchasing system that provides needed commodities and services in a timely manner to avoid interruptions in the delivery of services. All purchases shall be made in accordance with the Town's procurement code, purchasing policies, guidelines and procedures and applicable state and federal laws. The Town will endeavor to obtain supplies, equipment and services that provide the best value. A system of appropriate internal controls and procedures using best practices shall be maintained for the procurement and payment processes. These internal controls will be reviewed in conjunction with the Town’s annual financial audit. The Town will make all payments within the established terms. The Town shall pay applicable contractor invoices in accordance with the requirements of Arizona Revised Statutes § 34-221. The State of Arizona sets a limit on the expenditures of local jurisdictions. The Town will comply with these expenditure limitations and will submit an audited expenditure limitation report, audited financial statements, and audited reconciliation report as defined by the Uniform Expenditure Reporting System (A.R.S. § 41-1279.07) to the State Auditor General within the prescribed timelines. The Town Council will pursue local override of the State expenditure limitation as provided by the State Constitution if the projected expenditures within 2 years are anticipated to exceed the expenditure limitation. This override may be through local voter approval of a permanent base adjustment (Article IX, Section 20, Subsection 6), or by local voter approval of Home Rule (Article IX, Section 20, Subsection 9). Revenues and Collections In order to provide funding for service delivery, the Town must have reliable revenue sources. These diverse revenues must be assessed and collected equitably, timely, and efficiently. The Town's goal is a General Fund revenue base balanced between local sales (transaction privilege) taxes, state shared revenues (including state sales taxes), and other revenue sources. The Town will maintain a diversified and stable revenue base to shelter it from economic changes or short-term fluctuations by doing the following:  Conducting a cost of service study every 3 years to determine if all allowable fees are being properly calculated and set at an appropriate level.  Establishing new charges and fees as appropriate and as permitted by law.  Pursuing legislative change, when necessary, to permit changes or establishment of user charges and fees.  Aggressively collecting all revenues, late penalties and related interest as authorized by the Arizona Revised Statues. Grants Many grants require Council’s appropriation of funds, either for the original grant or to continue programs after the grant funding has expired. Council should review these grant programs prior to determining whether application should be made for these grant funds. The Town shall apply for only those grants that are consistent with the objectives and high priority needs previously identified by Council. The potential for incurring ongoing costs, to include the assumption of support for grant-funded positions from local revenues, will be considered prior to applying for a grant. 66 The Town shall attempt to recover all allowable costs – direct and indirect – associated with the administration and implementation of programs funded through grants. The Town may waive or reduce indirect costs if doing so will significantly increase the effectiveness of the grant. All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet the Town’s policy objectives. When the potential for ongoing expenditures exceeds the program budget allocation, programs shall seek Council approval prior to submission of the grant application. If time constraints under the grant program make this impossible, the program shall obtain approval to submit an application from the Town Manager and then, at the earliest feasible time, seek formal Council approval. If there is a cash match requirement, the source of funding shall be identified prior to application. The Town may terminate grant-funded programs and associated positions when grant funds are no longer available unless alternate funding is identified. When such grant funding is terminated, Town staff will prepare a report evaluating the results of the grant program and will make a finding to determine whether to continue funding the project with other financial resources. Many grants are given to enable towns to try a program or to provide seed money to establish a program, and followup analysis is required to make the best use of such funds. User Fee Cost Recovery and Indirect Cost Allocations User fees and charges are payments for voluntarily purchased, publicly provided services that benefit specific individuals. The Town relies on user fees and charges to supplement other revenue sources in order to provide public services. Indirect cost charges are assessed to recover a portion of the costs for services provided between various funds. The Town may establish user fees and charges for certain services provided to users receiving a specific benefit. The Town will conduct a cost of service study to identify the full cost of providing a service for which fees are charged. The calculation of full cost will include all reasonable and justifiable direct and indirect cost components. Fees and charges will be established to recover the full cost of service, unless the percentage of full cost recovery has been reduced by specific action of the Town Council. It is recognized that occasionally competing policy objectives may result in reduced user fees and charges that recover only a portion of service costs. User fees shall be reviewed every 3 years to calculate their full cost recovery levels, to compare them to the current fee structure, and to recommend adjustments where necessary. The Town shall establish a cost allocation plan to determine annually the administrative service charges due to the appropriate operating fund for overhead and staff support provided to another fund. Funds shall pay these indirect cost charges for services provided by another fund. Development Impact Fees The Council’s policy is that growth should pay for itself to the maximum extent possible. As such, the Council has adopted a system of development impact fees. Development impact fees are one-time charges assessed against new customers to recover a proportional share of capital costs incurred to provide service capacity for new customers. Appropriate development fees are an important component in the overall strategy for pricing services. The Town’s objectives for development impact fees shall include the following: 67  Support the cost of growth.  Minimize the impact of growth on existing residents.  Develop cost justified development fees.  Address infrastructure requirements.  Promote economic development.  Provide financial capacity.  In general, development impact fees must be based on a rational analysis. This analysis will include: o an assessment of the impacts of growth on the Town’s capital needs; o a determination that the amount of the fee does not exceed the reasonable cost to provide capacity to accommodate growth; o the funds collected must be adequately allocated to pay for growth related impacts; and o an identification of potential waivers or offsets to recognize other financial commitments resulting from development. The Town will monitor the use of impact fee credits (both offsets and reimbursements) and will track and report liabilities associated with these credits. Development impact fees will be assessed for the purposes allowed by law. The Town is allowed to adopt impact fees for the following:  Libraries  Parks, recreation facilities, rivers and trails and open space  Law enforcement  General government  Transportation The Town shall conduct a review of its development impact fees every 3 years. Capital Improvement Program The purpose of the Capital Improvement Program is to systematically identify, plan, schedule, finance, track and monitor capital projects to ensure cost-effectiveness as well as conformance to established policies. The Town Manager will annually submit a 10-year Capital Improvement Program for review by the Town Council pursuant to the timeline established in the annual budget preparation schedule. A 5year program would be more accurate and give the public more assurance that all of the projects within the plan will be completed, but the Town’s level of income is such that a full 10 years is needed to accumulate enough funds to include any significant improvements. Submission of the Capital Improvement Program shall be consistent with the requirements of Title 42, Chapter 17, Article 3 of the Arizona Revised Statutes. The Capital Improvement Program will incorporate a methodology to determine a general sense of project priority according to developed criteria. 68 The Capital Improvement Program shall provide:  A statement of the objectives of the Capital Improvement Program and the relationship with the Town’s General Plan, program master plans, necessary service levels, and expected facility needs.  An implementation program for each of the capital improvements that provides for the coordination and timing of project construction among various Town programs.  An estimate of each project’s costs, anticipated sources of revenue for financing the project, and an estimate of the impact of each project on Town revenues and operating budgets. The operating impact information shall be provided for the period covered in the Town’s current 10-year Capital Improvement Program. No capital project shall be funded unless operating impacts have been assessed and the necessary funds can be reasonably anticipated to be available when needed for the systematic improvement and maintenance of the Town’s capital infrastructure.  Revenues and project costs will be calculated in current dollars.  Debt ratio targets that comply with the Debt Management section of these policies.  A schedule of proposed debt issuance. The Town will match programs and activities identified in the Capital Improvement Program with associated funding sources. The Town will also seek to match project costs with project users, with may require the issuance of debt to allow future users to pay in the future and to maintain intergenerational equity. When current revenues or resources are available for capital improvement projects, consideration will be given first to those capital assets with the shortest useful life and to those capital assets whose nature makes them comparatively more difficult to finance with bonds or lease financing. Using cash for projects with shorter lives and bonds for projects with longer lives facilitates intergenerational equity, wherein projects with long useful lives are paid over several generations using the project through debt service payments. Capital improvement projects will not be authorized or awarded until the funding sources have been identified to finance the project and operating costs have been accounted. Staff will monitor projects in progress to insure their timely completion or the adjustment of the Capital Improvement Program as approved by Council if a project is delayed or deferred. A quarterly status report will be presented to Town Council to monitor each project’s progress and to identify any significant issues associated with a project. A prior year capital project status report shall be presented to the Town Council for information purposes when the capital improvement budget is considered. Within 90 days of the completion of a capital project any remaining appropriated funds for the project will be closed off and will revert to the fund balance of the funding source. The Capital Improvement Program will be updated annually as a multi-program effort. Cash Management and Investment Cash management includes the activities undertaken to ensure maximum cash availability and maximum investment yield on a government’s idle cash, and the cash collection function. 69 The Town shall maintain and comply with a written Investment Policy that has been approved by the Town Council. The Chief Financial Officer, as Chief Investment Officer, or his designee shall invest all funds of the Town according to the approved Investment Policy. The Town will collect, deposit and disburse all funds on a schedule that insures optimum cash availability for investment. In order to maximize yields from its overall portfolio, the Town will consolidate cash balances from various funds for investment purposes, and will allocate investment earnings to each participating fund. Bond funds will be segregated from all other funds for arbitrage and accounting purposes. The Town will project the cash needs of the Town to optimize the efficiency of the Town's investment and cash management program. The Town will conduct its treasury activities with financial institution(s) based upon written contracts. Ownership of the Town’s investment securities will be protected through third party custodial safekeeping. All Town bank accounts shall be reconciled and reviewed on a monthly basis. Investment performance will be measured using standard indices specified in the Town's written investment policy. The Chief Financial Officer shall provide the Town Council with a quarterly investment report within 45 days of the end of each quarter. The Town’s Cash Management and Investment processes will be in accordance with written internal controls and procedures. Debt Management It is the Town’s intention to utilize long term debt to finance capital projects with long useful lives. Financing capital projects with debt provides for an “intergenerational equity,” as the actual users of the capital asset pay for its cost over time, rather than one group of users paying in advance for the costs of the asset. The purpose of this debt management policy is to provide for the preservation and eventual enhancement of the Town’s bond ratings, the maintenance of adequate debt service reserves, compliance with debt instrument covenants and provisions, and required disclosures to investors, underwriters and rating agencies. These policy guidelines will also be used when evaluating the purpose, necessity and condition under which debt will be issued. These policies are meant to supplement the legal framework of public debt laws provided by the Arizona Constitution, State Statutes, Town incorporation documents, federal tax laws, and any future bond resolutions and covenants. The Arizona Constitution limits a Town’s bonded debt capacity (outstanding principal) to certain percentages of the Town’s secondary assessed valuation by the type of project to be constructed. There is a limit of 20% of secondary assessed valuation for projects involving water, sewer, artificial lighting, parks, open space, and recreational facility improvements. There is a limit of 6% of secondary assessed valuation for any other general-purpose project. All projects funded with Town general obligation bonds or revenue bonds must be included in the Town’s Capital Improvement Plan and can only be undertaken after voter authorization is obtained through a Town-wide bond election. 70 The overall debt management policy of the Town is to ensure that financial resources of the Town are adequate in any general economic situation to not preclude the Town’s ability to pay its debt when due. The Town will not use long-term debt to fund current operations or projects that can be financed from current revenues or resources. The Town will first attempt to utilize "pay as you go" capital financing and/or the use of operating funds or impact fees where applicable. The Town does not intend to issue commercial paper (CP) or bond anticipation notes (BANs) for periods longer than 2 years or for the term of a construction project. If CP or a BAN is issued for a capital project, it will be converted to a long-term bond or redeemed at its maturity. The issuance of variable rate debt by the Town will be subject to the most careful review and will be issued only in a prudent and fiscally responsible manner. The Town shall make every effort to combine debt issuances in order to minimize issuance costs. Whenever the Town finds it necessary to issue tax-supported bonds, the following policy will be adhered to:  Tax supported bonds are bonds for which funds used to make annual debt service expenditures are derived from Ad Valorem Tax (property tax) revenue of the Town.  The target for the maturity of general obligation bonds will typically be between 20 and 30 years. The target for the “average weighted maturities” for general obligation bonds of the Town will be 12 years and 6 months.  Where applicable, the Town will structure general obligation bond issues to create level debt service payments over the life of the issue.  Debt supported by the Town’s General Fund will not exceed 10% of the annual General Fund revenues.  Secondary property tax rates will be determined each year as part of the budgetary process (pursuant to State law) to pay the necessary debt service payments of general obligation bonds currently outstanding or expected to be issued within the fiscal year.  In accordance with requirements of the State of Arizona Constitution, total bonded debt will not exceed the 20% limitation and 6% limitation of the total secondary assessed valuation of taxable property in the Town.  Reserve funds, when required, will be provided to adequately meet debt service requirements in subsequent years.  Interest earnings on bond fund balances will only be used to pay debt service on the bonds unless otherwise committed for other uses or purposes of the project.  The term of any bond will not exceed the useful life of the capital project/facility or equipment for which the borrowing is intended. Revenue bonds are defined as a bond on which the debt service is payable from the revenue generated from the operation of the project being financed or a category of facilities, from other nontax sources of the Town, or from other designated taxes such as highway user’s revenues, excise tax, or special fees or taxes. For any bonds or lease-purchase obligations in which the debt service is paid from revenue generated by the project and/or partially paid from non-property tax sources, that debt 71 service is deemed to be revenue bonds and are excluded from the calculation of the annual debt service limitation. Whenever the Town finds it necessary to issue revenue bonds, the following guidelines will be adhered to:  Revenue bonds of the Town will be analyzed carefully by the Finance Department for fiscal soundness. Part of this analysis shall include a feasibility report prepared by an independent consultant prior to the issuance of utility supported revenue bonds to ensure the generation of sufficient revenues to meet debt service requirements, compliance with existing bond covenants and to protect the bondholders.  Revenue bonds should be structured to provide level annual debt service over the life of the issue.  Debt Service Reserve Funds will be provided when required by rating agencies, bond insurers or existing bond covenants.  Interest earnings on the reserve fund balances will be used to pay debt service on the bonds unless otherwise committed for other uses or purposes of the project.  The term of any revenue bond or lease obligation issue will not exceed the useful life of the capital project/facility or equipment for which the borrowing is intended.  The target for the term of revenue bonds will typically be between 20 and 30 years. The target for the “average weighted maturities” for revenue bonds of the Town (except for those issued through the Arizona-Water Infrastructure Finance Authority) will be 12 years and 6 months. Improvement District (ID) and Community Facility District (CFD) Bonds shall be issued only when the formation of the district demonstrates a clear and significant purpose for the Town. It is intended that Improvement District and Community Facility District bonds will be primarily issued for neighborhoods desiring improvements to their property such as roads, water lines, sewer lines, street lights, and drainage. The District must provide a specific benefit to the property owner(s). The Town will review each project through active involvement of Town staff and/or selected consultants to prepare projections, review pro-forma information and business plans, perform engineering studies, and analyze minimum debt coverage and value to debt ratios, and other analyses necessary to consider the proposal against specified criteria. Both ID and CFD bonds will be utilized only when it is expected that they will be outstanding for their full term. An expanded policy will be maintained detailing the policy and procedures of the Town related to any future consideration of the formation of a Community Facilities District. Use of a CFD would require compliance with the new guidelines and procedures and specific Council approval. Refunding bonds will be measured against a standard of the net present value debt service savings exceeding 5% of the debt service amount of the bonds being refunded, or if savings exceed $250,000, or for the purposes of modifying restrictive covenants or to modify the existing debt structure to the benefit of the Town. The investment of bond proceeds shall at all times be in compliance with the Town’s Investment and Portfolio Policies and meet all requirements of bond covenants. The Town shall comply with all U.S. Internal Revenue Service arbitrage rebate requirements for bonded indebtedness. The Town shall comply with Arizona Revised Statutes and all other legal requirements regarding the issuance of bonds and certificates of the Town or its debt issuing authorities. The Town will maintain contact with rating 72 agencies through meetings and visits on and off-site. The Town will secure ratings on all bonds issued when economically feasible. The Town shall maintain a debt profile for all bonds issued and update the profile on an annual basis. The debt profile shall include specific information regarding the size and type of debt issued, projects financed by the bonds, debt service schedules and other pertinent information related to each specific bond issue. Risk Management Risk management has become increasingly important in guarding against economic loss and in ensuring public safety in a time of increasing public liability and litigation. Risk management is involved in the identification, evaluation, and treatment of the Town’s risk. The Town shall make diligent efforts to prevent or mitigate the loss of Town assets and to reduce the Town's exposure to liability through training, safety, risk financing and the transfer of risk when cost effective. When cost effective, the Town shall manage its exposure to risk through self-insurance or through the purchase of traditional third-party insurance in the following areas: general liability, automobile liability, public officials' errors and omissions, police professional liability, property loss and workers' compensation. The use of risk-pooling opportunities should be maximized, e.g., by use of the Arizona risk retention pool. When cost effective, the Town will further control its exposure to risk through the use of “hold harmless” agreements in Town contracts and by requiring contractors to carry liability insurance, including errors and omissions coverage for architectural, engineering, and other applicable professional firms. Insurance reserves shall be maintained at a level which, together with any purchased insurance, will adequately indemnify the Town’s assets and its elected officials, officers and directors against loss. A study will be conducted every 3 years for potential liability areas and shall be used as a basis for determining self-insurance reserves based on historical loss data. The Town will strive to fully fund actual and estimated liabilities including reserves for incurred-but-not-reported (IBNR) claims. The Town will identify and disclose material contingent liabilities in the Town’s Comprehensive Annual Financial Report (CAFR). Cost allocations to various funds will be based on an analysis of contributing factors. Accounting, Auditing and Financial Reporting Accounting, auditing and financial reporting form the informational infrastructure for public finance. Internal and external financial reports provide important information to the Town’s legislative body, management, citizens, investors and creditors. The Town will comply with accounting principles generally accepted in the United States in its accounting and financial reporting, as contained in the following publications:  Codification of Governmental Accounting and Financial Reporting Standards, issued by the Governmental Accounting Standard Board (GASB).  Pronouncements of the Financial Accounting Standards Board, (FASB).  Governmental Accounting, Auditing, and Financial Reporting (GAAFR), issued by the Government Finance Officers Association (GFOA) of the United States and Canada. 73  Municipal Budget and Finance Manual, prepared by the League of Arizona Cities and Towns.  Audits of State and Local Governmental Units, an industry audit guide published by the American Institute of Certified Public Accounts (AICPA).  Government Accounting Standards, issued by the Comptroller General of the United States.  U.S. Office of Management and Budget (OMB) Circular A-133, issued by the U.S. Office of Management and Budget. Quarterly financial reports will be provided for all programs summarizing financial activity comparing actual revenues and expenditures with budgeted amounts. A system of internal accounting controls and procedures will be maintained to provide reasonable assurance of the safeguarding of assets and proper recording of financial transactions of the Town and compliance with applicable laws and regulations. In accordance with State law, a comprehensive financial audit, including an audit of federal grants according to the Single Audit Act and the OMB Circular A-133, will be performed annually by an independent public accounting firm, with the objective of expressing an opinion on the Town’s financial statements. The Town will prepare its financial statements in accordance with applicable standards and will account for its operations in a manner consistent with the goal of obtaining an unqualified opinion from its auditors. The Town will prepare a Comprehensive Annual Financial Report (CAFR) in accordance with the principles and guidelines established by the Government Finance Officers Association “Certificate of Achievement for Excellence in Financial Reporting” program. Staff will issue the CAFR to the Town Council by the 2nd Council meeting in November and to the Government Finance Officers Association by December 31st of each year for the preceding fiscal year or as required by the Arizona Revised Statues. All programs will provide notice of all significant events and financial and related matters to the Chief Financial Officer for the Town’s annual disclosures, as required by the SEC Rule 15c2-12, for the municipal markets, financial statements and bond representations. A listing of significant events is included in Appendix A to this document. The Chief Financial Officer will notify all Nationally Recognized Municipal Securities Information Repositories of these significant events. The Town’s Comprehensive Annual Financial Report (CAFR) will include the bond related on-going disclosure requirements and will fully disclose all significant events and financial and related issues. The Town will provide the CAFR to the Town Council, rating agencies, municipal bond insurers, national bond disclosure repositories and other interested parties. Policy Review By their nature policies must change and evolve over time. As with any other policies, these financial policies should be subject to periodic review and revision. Accordingly, the Town Council will review and affirm the financial policies contained in this document every 3 years. Reporting of Significant Events (Continuing Disclosure Requirements) If knowledge of the occurrence of a listed event would be material to the Town, the Town shall promptly file a “Notice of Material Event” with the Municipal Securities Rulemaking Board and with each depository. The following events are defined as significant events with respect to municipal securities: 74  Principal and interest payment delinquencies.  Non-payment related defaults.  Unscheduled draws on debt service reserves reflecting financial difficulties.  Unscheduled draws on credit enhancements reflecting financial difficulties.  Substitution of credit or liquidity providers or their failure to perform.  Adverse tax opinions or events affecting the tax-exempt status of the securities.  Modifications to rights of holders (i.e., owners).  Bond calls (which are other than mandatory or scheduled redemptions, not otherwise contingent upon the occurrence of an event are optional or unscheduled).  Defeasances.  Release, substitutions or sale of property securing repayment of the securities (including property leased, mortgaged or pledged as such security).  Bond rating changes. 75 Appendix F: State Auditor Forms 1. Summary schedule of estimated revenues and expenditures 2. Revenues other than property taxes 3. Expenditures/Expenses by Fund 4. Expenditures/expense by department Town of Dewey-Humboldt Summary Schedule of Estimated Revenues and Expenditures/Expenses Fiscal Year 2015 FUND 1. General Fund ADOPTED FUND BUDGETED ACTUAL BALANCE/ EXPENDITURES/ EXPENDITURES/ NET EXPENSES* EXPENSES** POSITION*** 2014 2014 July 1, 2014** $ 1,900,569 $ 1,220,198 $ 2. Special Revenue Funds 2,018,271 PROPERTY TAX REVENUES 2015 Primary: $ Secondary: ESTIMATED REVENUES OTHER THAN PROPERTY OTHER FINANCING TAXES 2015 2015 SOURCES $ 227,728 1,505,000 $ $ INTERFUND TRANSFERS 2015 IN $ $ 2,167,537 TOTAL FINANCIAL BUDGETED RESOURCES EXPENDITURES/ AVAILABLE EXPENSES 2015 2015 $ 1,505,000 $ 1,730,663 2,167,537 2,220,360 $ 3,672,537 $ 3,951,023 3. Debt Service Funds Available 4. Less: Amounts for Future Debt Retirement 5. Total Debt Service Funds 6. Capital Projects Funds 7. Permanent Funds 8. Enterprise Funds Available 9. Less: Amounts for Future Debt Retirement 10. Total Enterprise Funds 11. Internal Service Funds 12. TOTAL ALL FUNDS $ 3,918,840 $ 1,447,926 $ $ EXPENDITURE LIMITATION COMPARISON 1. Budgeted expenditures/expenses 2. Add/subtract: estimated net reconciling items 3. Budgeted expenditures/expenses adjusted for reconciling items 4. Less: estimated exclusions 5. Amount subject to the expenditure limitation 6. EEC or voter-approved alternative expenditure limitation $ 3,672,537 $ $ $ $ 2014 2015 $ 3,918,840 $ 3,951,023 3,918,840 3,951,023 $ 3,918,840 $ 3,951,023 $ $ X The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted. * Includes Expenditure/Expense Adjustments Approved in current year from Schedule E. ** Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. *** Amounts in this column represent Fund Balance/Net Position amounts except for amounts not in spendable form (e.g., prepaids and inventories) or legally or contractually required to be maintained intact (e.g., principal of a permanent fund). 76 Town of Dewey-Humboldt Revenues Other Than Property Taxes Fiscal Year 2015 ESTIMATED REVENUES 2014 SOURCE OF REVENUES ACTUAL REVENUES* 2014 ESTIMATED REVENUES 2015 GENERAL FUND Local taxes Local Sales Tax $ Licenses and permits Building Permits Planning and Zoning Fees Plan Check Fees Utility Franchise Fees 407,000 $ 407,000 $ 380,000 50,000 4,300 50,000 4,300 10,700 10,700 40,000 5,500 500 10,000 433,000 327,000 190,000 433,000 327,000 190,000 471,365 351,856 214,929 Fines and forfeits Magistrate Court Fines Magistrate Court Fines - Restricted 24,000 8,000 24,000 8,000 20,000 5,650 Interest on investments Interest on LGIP 24,500 24,500 5,000 9,200 9,200 200 Intergovernmental Income Tax State Sales Tax Vehicle License Tax Charges for services In-lieu property taxes Contributions Voluntary contributions Miscellaneous Miscellaneous Total General Fund $ 1,487,700 $ 1,487,700 $ 1,505,000 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. SPECIAL REVENUE FUNDS HURF Local Transportation Agreement Impact Fees Interest Earned $ 264,000 $ 50,000 600 314,600 Miscellaneous Grants Flood Control Foothill $ 75,000 $ 264,000 $ 290,037 $ 50,000 600 314,600 $ 500 290,537 $ 75,000 $ 1,802,000 75,000 $ 75,000 $ 75,000 $ 1,877,000 Total Special Revenue Funds $ 389,600 $ 389,600 $ 2,167,537 DEBT SERVICE FUNDS $ $ $ Total Debt Service Funds $ $ $ $ $ $ Total Capital Projects Funds $ $ $ CAPITAL PROJECTS FUNDS PERMANENT FUNDS $ $ $ Total Permanent Funds $ $ $ $ $ $ Total Enterprise Funds $ $ $ $ $ $ Total Internal Service Funds $ $ $ ENTERPRISE FUNDS INTERNAL SERVICE FUNDS TOTAL ALL FUNDS $ 1,877,300 $ 1,877,300 $ 3,672,537 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 77 Town of Dewey-Humboldt Expenditures/Expenses by Fund Fiscal Year 2015 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2014 FUND/DEPARTMENT EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2014 ACTUAL EXPENDITURES/ EXPENSES* 2014 BUDGETED EXPENDITURES/ EXPENSES 2015 GENERAL FUND Town Council $ Magistrate Court Public Safety Town Clerk Finance & Budget Legal & IT Support Community Develop & Library Public Works & Eng-Operational Public Works & Eng-Capital Exp Contingency 127,658 83,803 370,831 180,306 88,780 97,000 196,041 227,630 17,000 511,520 $ $ 113,465 73,868 371,186 143,982 81,931 54,457 172,108 207,649 1,552 $ 132,599 86,837 380,238 207,022 85,172 82,980 219,242 194,242 102,331 240,000 Total General Fund $ 1,900,569 $ $ 1,220,198 $ 1,730,663 $ 11,000 352,800 1,654,471 $ $ $ 10,000 333,360 1,877,000 Total Special Revenue Funds $ 2,018,271 $ $ $ 2,220,360 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ SPECIAL REVENUE FUNDS Engineering Public Works Grants 152,728 75,000 227,728 DEBT SERVICE FUNDS $ Total Debt Service Funds $ CAPITAL PROJECTS FUNDS $ Total Capital Projects Funds $ PERMANENT FUNDS $ Total Permanent Funds $ ENTERPRISE FUNDS $ Total Enterprise Funds $ INTERNAL SERVICE FUNDS $ Total Internal Service Funds $ TOTAL ALL FUNDS $ 3,918,840 1,447,926 3,951,023 * Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. 78 Town of Dewey-Humboldt Expenditures/Expenses by Department Fiscal Year 2015 DEPARTMENT/FUND Town Council & Management General Fund ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2014 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2014 ACTUAL EXPENDITURES/ EXPENSES* 2014 BUDGETED EXPENDITURES/ EXPENSES 2015 $ 127,658 $ $ 113,465 $ 132,599 Department Total $ 127,658 $ $ 113,465 $ 132,599 $ 83,803 $ $ 73,868 $ 86,837 Department Total $ 83,803 $ $ 73,868 $ 86,837 $ 370,831 $ $ 371,186 $ 380,238 Department Total $ 370,831 $ $ 371,186 $ 380,238 $ 180,306 $ $ 143,982 $ 207,022 Department Total $ 180,306 $ $ 143,982 $ 207,022 $ 88,780 $ $ 81,931 Department Total $ 88,780 $ $ 81,931 $ 85,172 $ 97,000 $ $ 54,457 $ 82,980 Department Total $ 97,000 $ $ 54,457 $ 82,980 $ 196,041 $ $ 172,108 $ 219,242 Department Total $ 196,041 $ $ 172,108 $ 219,242 List Department: Public Works & Eng-Operational General Fund $ 244,630 $ $ 207,649 $ 194,242 Department Total $ 244,630 $ $ 207,649 $ 194,242 $ $ $ 1,552 $ 102,331 Department Total $ $ $ 1,552 $ 102,331 List Department: Magistrate Court General Fund List Department: Public Safety General Fund List Department: Town Clerk General Fund List Department: Finance & Budget General Fund List Department: Legal & IT Support General Fund List Department: Community Deveolpment General Fund List Department: Public Works & Eng - Capital General Fund List Department: Contingency General Fund 85,172 $ 511,520 $ $ $ 240,000 Department Total $ 511,520 $ $ $ 240,000 $ 11,000 $ $ $ 10,000 Department Total $ 11,000 $ $ $ 10,000 $ 352,800 $ $ 152,728 $ 333,360 Department Total $ 352,800 $ $ 152,728 $ 333,360 $ 1,654,471 $ $ 75,000 $ 1,877,000 Department Total $ 1,654,471 $ $ 75,000 $ 1,877,000 List Department: Engineering HURF List Department: Public Works HURF List Department: Grants Grants * Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. 79 TOWN OF DEWEY-HUMBOLDT P.O. BOX 69 HUMBOLDT, AZ 86329 Phone 928-632-8562 ▪ Fax 928-632-7365 Dewey-Humboldt, Arizona 2015 Town of Dewey-Humboldt Annual Budget 2014-2015