City Council Agenda and Packet 2014 06 24 SP

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SUBJECT: 2015 BUDGET, CITY COUNCIL GOALS, AND 2015 -2019 CIP DATE: JUNE 24, 2014 PAGE 2 OF 3 1. Current (25% split among Water, Wastewater, Open Space & Parks, Capital Projects) 2. Space Allocation based on the square footage that will be used by each operation 3. Total FTEs budgeted in each fund 4. FTEs of the Total who will be based at the CSF 5. An average of 2, 3 and 4 above 6. A weighted average of 2 and 4, giving more weight (50 %) to Space and (50 %) to FTEs based at the facility. Using a different allocation method would shift the cost impact among the funds as shown in the spreadsheet. All options assume that Fleet space is allocated based on the number of vehicles, Streets space is allocated 100% to Capital Projects, and Shared space is allocated based on each activity's relative share of total space. Based on this analysis, and on Council member comments when this was discussed previously, there are multiple defensible ways to allocate costs for the CSF. Allocating 25% of the cost of the CSF to each of the four funds is a reasonable approximation, but it may overstate the Capital Projects and Waste Water Funds' "benefit" from the facility and underestimate the Open Space and Parks Fund's "benefit" and it does not allocate any "benefit" from the facility to the Stormwater Fund. If Council wants to revise the current allocation, it would negatively impact the OS &P Fund by the amounts shown (unless Council also approves a General Fund transfer to offset the impact). 1% For Arts Program Potential Impact Council discussed this issue during study session and asked staff to calculate the potential impact of implementing such a program. The attached spreadsheets show the impact if such a program was in place from 2009 -2014 and if such a program was implemented in 2015 -2018. As the spreadsheets indicate, such a program would have allocated about $240,000 to arts in 2009 -2014 and would allocate about $140,000 through 2018 if implemented. These numbers exclude expenditures for utility programs. In most, but not all cases, the cost of allocations for art would increase the cost of the project. FISCAL IMPACT: The Louisville budget is the most important policy approved by the City Council each year; it establishes priorities and funding for all programs and services. RECOMMENDATION: Discussion /Direction as noted above. ATTACHMENTS: 1. Draft 2015 Goals and Objectives 2. Revenue Projections and Major Fund Forecasts for 2015 CITY COUNCIL COMMUNICATION 3