Budget Message
May 3, 2011
City of Roseburg Budget Committee Members:
Subject: 2011-2012 Budget Transmittal Memo
I am very pleased to present the proposed FY 2011-2012 City of Roseburg budget for your consideration. While these challenging economic times have had an impact on our local, state and national economy, the City of Roseburg has been able to continue providing the basic services to which our citizens have become accustomed.
In January, the Budget Committee members unanimously agreed to direct City Staff to propose a FY 2011/12 budget that would maintain current service levels and continue the policy to retain a 30% General Fund Reserve. Through innovative thinking and teamwork, the Department Head team, led by Cheryl Guyett, was able to meet that goal. This goal was achieved by reducing personnel (6.4 FTE less than FY 2007/08), holding the line on materials and services expenditures where possible and delaying capital equipment and vehicle replacement. This was accomplished in an environment where the need for our services has increased dramatically.
Looking into the future, the solution to keep up with the demand for services and escalating operational costs will be to continue to find operational efficiencies, implement strategies to provide these services with fewer personnel and expand the city limits and regional economy through annexation and creation of family wage jobs. The Umpqua Economic Development Partnership (represented by City of Roseburg, Douglas County, Roseburg Area Chamber of Commerce and CCD Business Development) has been working to revamp the organization to provide a more robust structure to create, retain and expand jobs in Douglas County and Roseburg. The proposal is to expand the organization by increasing the number of private/public partners in the region which will, in turn, bring more players to the table to compete with the global economy.
Proceeding with the implementation of the Council adopted policy of pursuing annexation of properties within the City’s Urban Growth Boundary (UGB) will also be important. These annexations will be critical as well continue to see a decline in the growth of our tax base due to the reduced number of permits for commercial/residential construction.
CITY GOALS AND OBJECTIVES
In February 2011, the Council adopted the 2011-2016 Strategic Plan which outlines objectives, strategies and actions within four principles: Great Neighborhoods; Safe City; Healthy Economy; Effective Government. This major revision to the 2007-2012 Plan more clearly defines the actions to support each goal which are specifically measured with an accomplishment date. The updated Plan better reflects the City Council’s goals and the departmental goals outlined within this budget document. The Strategic Plan will be utilized as a “score card” to evaluate how the City is investing the resources given to us by the taxpayer, promoting fiscal responsibility. This ever-evolving product will assist us with the continual improvement that the City must engage in to keep Roseburg prepared for the future.
SUCCESSES
This year, our employees strove to hold expenditures to the significant General Fund reduction originally implemented
in 2009-2010 and to meet the Budget Committee’s goal of a 30% General Fund reserve. They have used the financial resources given by the Budget Committee to provide services that are needed and valued by City residents. A few of the more notable successes include:
City Administration and Finance Departments
Processed over 225 business registrations, 19 OLCC licenses, 34 special OLCC permits, 65+ formal public records requests, 37 special permits, 33 ordinances, 18 resolutions and sale of 34 vehicles/equipment. Processed nine new telecommunication franchises.
Completed 52 personnel transitions including the recruitment of new Human Resources Director and Airport Director.
For the 17th consecutive year, received the Government Finance Officers Association award for “Excellence in Financial Reporting.”
Received eighth Safety Award from the League of Oregon Cities.
Expanded Government Channel usage.
Implemented electronic City Council and Commission agendas.
Implemented online utility billing system and barcode payment scanning.
Established Disaster Recovery site for data backup and system replication.
Implemented virtualization with substantial cost savings in power, cooling and software licensing and provide more flexibility in system maintenance.
Police and Fire Departments
Began efforts to institute K-9 Program.
Roseburg Area Youth Services provided regular youth court sessions, closed 1133 cases and provided 1413 hours of community services.
Volunteers in Police Service (VIPS) contributed 3010 hours of service.
Police service call volume of 21,486; issued 6,267 traffic citations; 14,599 traffic warnings; 4,687 crime reports; 5,745 non-criminal reports and 5,422 arrests.
Partnered with Roseburg School District by providing School Resource Officer; partner in Major Crime Team and Douglas Interagency Narcotics Team.
Fire call volume of 4,570 emergency incidents of which 3,125 were medical in nature.
Completed Polycom camera system to enable training session broadcast to all stations.
Participated in county-wide “Galesville Rush 2010” table top drill and earthquake drill.
Performed 500 business fire inspections.
Completed improvements to Harvard Fire Station.
Community Development
Completed Waterfront Plan.
Participated in successful merging of downtown interests into the Downtown Roseburg Association.
Completed Mill-Pine Neighborhood Plan.
Completed West Avenue Neighborhood Redevelopment Plan.
Completed First Phase of Sustainability Plan.
Public Works
Received three energy assistance grants for park irrigation pumps, traffic controller replacement and Art Center window renovation.
Received four ConnectOregon III grants for airport runway and taxiway improvements.
Accommodated 118 reservations for park facilities.
Replaced 2200 lineal feet of high maintenance water mains.
Adopted Water system Master Plan and Capital Improvement Plan.
Adopted first city-wide Capital Improvement Plan.
Reconstructed Broad Street.
Designed new multi-use path connecting to the Stewart Park natural Area through Veterans Affairs property with assistance of $800,000 grant.
Conducted City’s first geocache event.
Installed lighting retrofits for two fire stations, parks maintenance facility and water treatment plant.
CHALLENGES AND OPPORTUNITIES
We also face a number of continuing challenges and opportunities in the coming fiscal year, to include:
Implementation of airport improvements.
Complete contract negotiations with two labor groups.
Work with Cow Creek Band of Umpqua Tribe of Indians business incubator program.
Investigate potential annexation opportunities in North Roseburg and analyze cost/benefit of such annexation.
Address urban Growth Boundary Expansion Population Appeal.
Implement K-9 and photo red light enforcement program.
Investigate measures to address continuing rising costs and limited financial resources.
Revamp Umpqua Economic Development Partnership into a more robust private/public organization.
OVERALL BUDGET SUMMARY
The total FY 2011-2012 proposed budget, including General Fund and all enterprise fund expenditures is proposed at $53,854,456 compared to the current year adopted budget of $52,398,442. Through the very dedicated efforts of City Staff, we were able to begin and finish the year in compliance with the Budget Committee’s goal for a 30% General Fund Reserve.
GENERAL FUND SUMMARY
Basic operations in the General Fund include Parks, a portion of Public Works, Police, Fire, Community Development, Finance and Management Services, Municipal Court and Administration. The General Fund provides funding for daily services most residents recognize and use frequently. The FY 2011-2012 General Fund is proposed at $23,305,980.
GENERAL FUND REVENUES
Total Operating Revenues are proposed at $16,583,718 an increase of $207,425 from the 2010-2011 adopted budget of $16,376,293. A factor in the increase is the result of additional property taxes. Property taxes continue to be the largest share of General Fund revenues. Current year property taxes are planned to increase by $180,000 or 1.67% from the 2010-2011 adopted budget of $10,800,000.
With the passage of Measure 50 in 1997, the property tax system changed from a levy based system to a modified tax rate system. A permanent tax rate was established at $8.4774 for the City of Roseburg. As an example, a home with an assessed value of $150,000 will pay $1,272 in property taxes to the City.
GENERAL FUND EXPENDITURES
Total General Fund expenditures are proposed at $17,921,793 for next fiscal year, equaling a $1,029,852 increase. A majority of this is due to Budget Committee direction to prepare the proposed budget with the goal of maintaining current year service levels and restoring needed equipment/vehicles and maintenance which were deferred through prior year spending reductions.
ENTERPRISE, SPECIAL REVENUE, AND CAPITAL PROJECTS FUNDS
Enterprise Funds, Special Revenue Funds and Capital Projects Funds actually comprise the majority of the City’s overall budget. Enterprise Funds include the Water Fund, Storm Drainage, Off Street Parking, Airport and Golf. Special Revenue Funds consist of Public Works, Grants, Downtown Development District, Hotel/Motel Tax, Bike Trail, Housing Rehab, Economic Development and the Stewart Trust. Capital Projects Funds consist of Transportation, Park Improvement, Equipment Replacement, Assessment Improvements and Facilities Replacement.
Most of these funds will remain constant with a few changes that will be explained during the budget process.
I look forward to reviewing the proposed budget with you and wish to thank the many City Staff responsible for assembling this proposed budget. Special thanks go to Cheryl Guyett, Director of Finance and Management Services. As in past years, Cheryl spent many long hours putting the budget together and making sure it is as accurate as it can be.
Cheryl Guyett, Finance and Management Services Director
Jim Burge, Police Chief
Sheila Cox, City Recorder
Mike Danielle, Airport Director
Debi Davidson, Management Technician
Brian Davis, Community Development Director
Ronda Fluetsch, Accounting Clerk
Esther Howerton, Payroll/Benefits Technician
Debbie Keller, Accountant
Mike Lane, Fire Chief
Nikki Messenger, Public Works Director
John VanWinkle, Human Resources Director
Respectfully submitted,
P. Eric Swanson
City Manager