Document Fernley_doc_0c1a70d5ac

CITY OF FERNLEY NEVADA FY2005/2006 ANNUAL BUDGET FOR THE FISCAL YEAR JULY 1, 2005 TO JUNE 30, 2006 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 City Council Mayor David Stix, Jr. Council Member Ward 1 Richard Jones Council Member Ward 2 Joe Mortensen Council Member Ward 3 Monte Martin Council Member Ward 4 Curt Chaffin Council Member Ward 5 Ralph Menke The Fernley City Council meets in regular session the first and third Wednesday of the month in the Council Chambers in City Hall located at 595 Silver Lace Boulevard, Fernley Nevada. Planning Commission Bill Amerman Bill Clegg Marty Hardie Bruce Maxwell Bert McCoy Jim Petersen Robert Smith The City of Fernley Planning Commission meets in regular session the second Wednesday of the month in the Council Chambers in City Hall located at 595 Silver Lace Boulevard, Fernley Nevada. Staff Gary Bacock, City Manager Bonnie Duke Patricia Norman Lowell Patton Keith Penner Peter Wysocki Administrative Services Director (City Treasurer) City Clerk Public Works Director Parks and Recreation Director Community Development Director Paul Taggart, Law Offices of King and Taggart , City Attorney Daniel Bauer, Municipal Court Judge Sid Smith, Chief of Police ---PAGE BREAK--- City of Fernley Annual Budget - Fiscal Year 2005-2006 Table of Contents Budget 1 Introduction 5 Description of the Budget Document 5 Community Profile 5 The Budget Process and Calendar of Events 7 Fund Structure and Budget 10 Debt Management Policy 11 Capital Improvement Plan 12 Performance 13 Financial and Program Policies 13 City of Fernley Organizational Chart 16 17 Budget Summary-All 17 Revenue 21 Tax Rate 30 Assessed Value 31 Interfund Transfers 31 Capital Expenditure 32 General 35 General Fund 36 Program Descriptions 42 Administration 43 Administrative Services Department 53 Municipal 58 Public Works (Streets and Storm Drains) 61 Parks 62 Community 66 Animal Control 72 Vector Control 75 Debt 77 78 Special Revenue 79 Administrative Assessment Fees 80 Court Facility 81 Grants 82 Residential Construction Tax District 83 Residential Construction Tax District 86 Streets and Storm Drains 89 Capital Project 95 Capital Fund 96 Enterprise 99 Water Utility 100 Sewer Utility 109 Non-Potable Water Utility 116 119 Appendix A – Salary Schedules 120 Appendix B – Authorized Personnel 121 Appendix C – Allocation Percentages for 123 Appendix D – Glossary of Key Terms 124 Appendix E – Acronyms 145 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Fernley, Nevada for its annual budget for the fiscal year beginning July 1, 2004. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Budget Message City of Fernley CITY MANAGER’S OFFICE Administration, Human Resources, Parks, Budgeting, Risk Management, & Contracts August 23, 2005 Honorable Mayor and City Council City of Fernley I respectfully submit the final budget for the City of Fernley for fiscal year 2005/2006 (FY 05/06). In the past fiscal year, the challenges have been many and there are more challenges ahead. Teamwork, perseverance, and cooperation will enable the City to meet the challenges ahead and meet the objectives discussed in various City Council meetings. This budget reflects a positive outlook for next fiscal year. This document was updated on 8/18/05 to reflect the approved budget numbers (adopted 5/17/05), however most of the text is the same as originally submitted (3/31/05), with the exception of miscellaneous modifications. I believe the FY 05/06 budget meets the following City Council objectives: Property Tax Rate - The FY 05/06 property tax rate in the budget is $0.1528 per $100 of assessed value, an increase of $0.00 over last year’s levy and $.1919 less that the allowed rate of $.3447. The recommended budget contains a new vector control program that will be funded without increasing property taxes. Assessed values increased 24.6%, largely due to new construction. Stable Funding Source: Revenues from Building Permits and Fees account for approximately 45% of total General Fund Revenues in FY 05/06 projections. As development slows, this revenue source will likely decline and assessed values will not grow as rapidly. The budget assumes a transfer of monies from the General Fund to other funds so that the City is not completely relying on these revenues for operating expenditures. County Pass-Through Road Fund: At the beginning of the budget preparation, County representatives proposed many changes in taxes collected by the County and redistributed to public entities. After a number of meetings with the County Board of Commissioners, County staff, City Council, and City staff, County representatives changed their position and reinstated the full revenue to the City (the City will receive approximately $293,506 this fiscal year). Therefore, “Cooperative intergovernmental relations between the City and the County representatives resulted in fiscal equity between the two governments.” 1 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Maintain existing levels of service to the community. The growth in Fernley increases the demand for city services. The City is using proper planning, management, and technology to provide services effectively with minimal increases in authorized positions. However, the tremendous growth has resulted in the need to increase staffing to maintain existing levels of service. The budget contains new positions, eliminates certain positions and provides additional hours for an existing position all of which results in a net additional 9.01 Full Time Equivalents (FTE). The new positions are Deputy City Treasurer, Senior Planner, Building Inspector Assistant/Associate Engineer, Senior Plans Examiner, Administrative Specialist (per Class Study) – Office of the City Manager, Animal Control Officer (part-time, .5 FTE), Office Assistant (Animal Control, part-time) FTE), Maintenance Worker (Parks, full – time), and (10) additional hours for the Office Assistant in the Office of the City Clerk (0.11 FTE). A contract for public works inspections was added and the full cost of this contract will be recovered from developers as part of the subdivision review process. This contract would not be an employer-employee relationship. A contract for maintenance of certain parks is included in the Parks budget and this contract would not be an employer-employee relationship. Although the budget did not include all requests from departments, this budget has been discussed with department heads and discussed in our budget workshop sessions. This budget provides the necessary resources to accomplish our goals and to address issues associated with our high growth. Maintain minimum fund balances to protect the City’s financial integrity. The General Fund has an ending fund balance of approximately 12% of total annual expenditures or just over 1½ months of expenditures to provide sufficient cash for unexpected shortfalls in revenues or demands upon city resources. This equates to an ending fund balance of approximately $360,529. In addition to the General Fund balance, the ending fund balance for the Capital Fund is approximately $345,182 and the ending fund balance for the Grant Fund is approximately $231,069. Establish utility fees that meet the Utility funds operating, debt service, and depreciation expenses. The City of Fernley strives to set utility rates to fully recover the costs of providing the services. Staff reviewed the current rates and believes that some adjustments will be needed within the next fiscal year. However, potential increases must be reviewed after the upcoming rate study and generally; budgets are prepared based on current conditions. If rates are increased in the future, adjustments may be made during FY 05/06. THE BUDGET IN BRIEF: Revenues and “Other Financing Sources” for all funds are estimated at $15.8 million in the FY05/06 budget. Expenditures and other uses total $18.4 million in the FY05/06 budget. We will be spending more in capital projects (approximately $2.6 million) related to amounts collected for future capital projects. Again, the City will be faced with major decisions and costs associated with the operations of the water utility as new regulations regarding water treatment for arsenic are implemented. The City is proactively seeking outside funding to react to this unfunded mandate and will continue to proactively seek solutions to minimize the impact 2 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 to rate payers. Future rate increases will be needed to comply with this unfunded federal mandate. MAJOR POLICY ISSUES/PROJECTS: There are many issues that affected the development of this budget. These issues represent challenges and opportunities that will impact how Fernley develops over the next several years. WATER RIGHTS PRESERVATION: There are ordinances and procedures in place that have some water rights protection value, however this area has been under attack for many years and recently has been in the spotlight. The recent adoption of the alternative water service provides a mechanism to protect our water resources and the challenge is the full implementation of a practical delivery system. Staff will continue to pursue various methods to retain water rights in the Fernley Basin. STREET ISSUES: The City inherited streets after the City’s incorporation (7/1/01) and therefore there are many issues to address relating to bringing some streets up to standard, including the concern about the existing non-maintained graveled roads. The establishment of the Streets Fund will help with identifying funds and carefully prioritizing the street improvements by addressing the most deficient streets sooner rather than later. The City intends to prepare a comprehensive Streets Capital Improvement Plan, including a long term financing plan, in FY06 to address this issue. Additionally, there has been interest from a number of residents in the Fernley Highlands area (both from the westside and eastside) to improve their graveled roads with commitments to develop a “Highlands” assessed funding mechanism. REVISION OF MASTER PLAN – This project is a major undertaking partially completed in FY03/04 and FY04/05 that will be completed in FY05/06. RESIDENTIAL CONSTRUCTION TAX – The “RCT”, has been implemented and revenue is currently flowing. Meetings with Park User Groups occurred and a Capital Improvement Plan was completed to manage the use of these funds. Several projects were either completed or started in FY04 and FY05. In FY06, the City plans to continue implementation of the Capital Improvement Plan and complete projects. LEADERSHIP AND MANAGEMENT PROCESSES: The City of Fernley is at a critical stage in developing a stable structure for the success of the City government and improvement of the Fernley community long term. Strategic planning, organizational definitions, and community leadership will be critical elements in the success or failure of the City government over the next five years. LONG-TERM FINANCIAL POLICIES: This budget has been prepared within the context of a long-term financial plan. The plan’s goal is to identify resources in the General Fund that can be used to fund future capital projects without compromising funding for operations. RESIDENTIAL AND COMMERICIAL DEVELOPMENT: Residential and commercial development in Fernley is important to the community and important to the City government. Quality development should lead to quality services to the growing 3 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 community. The City must begin to address long term strategic plans for construction and maintenance of infrastructure. Since the legislature and the Governor approved the relocation of the Washoe County line to the north, several square miles of residential and commercial development will create many challenges to overcome and benefits for the City. The budget is presented according to recommended practice of the Government Finance Officers Association (GFOA). The format has allowed the Council and the public to better understand the budget and the budget process. The City’s FY 03/04 & FY 04/05 budgets received the award (GFOA’s “Distinguished Budget Presentation Awards Program”) and we intend to present this final budget to GFOA for review and consideration later this month. I would like to thank the department heads in their efforts to submit information for the budget. Once again, a special thanks goes to Bonnie Duke, City Treasurer/Administrative Services Director for her efforts to complete this entire document. I look forward to working with the Mayor, City Council, Department Heads, and the community to achieve our goals. Respectfully submitted, Gary A. Bacock, City Manager 4 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Introduction Description of the Budget Document The budget document is divided into several sections. The Introduction includes narratives about the budget document, a community profile, a description of the budget process, the fund structure, citywide policies, and an organizational chart. The Overview section contains general information about revenues, appropriations and other financing sources. Following the Overview section are sections for each fund type, beginning with the General Fund and followed by Special Revenues Funds, Capital Project Funds, and Enterprise Funds. Each section provides detailed information on revenues, expenditures, and work programs for each function. The Appendices section contains a salary schedule, a listing of approved positions, a table of assumptions of cost allocation of personnel costs, and a glossary of terms and acronyms. Community Profile Fernley recently experienced growth due to its location near the Reno-Sparks metropolitan area and its excellent transportation systems that provide access to west coast markets. Fernley is situated on Interstate 80, approximately 28 miles east of Reno, and at the intersection of U. S. Highways 40, 50, and alternate 95. Fernley also has rail (freight) access. Northern and Central California markets are reached overnight, while Los Angeles, San Francisco, Portland, Salt Lake City, and Las Vegas are all within a 500 mile radius. The growth led to increased demand for services as residential development increased in response to the industrial development. The City was incorporated effective July 1, 2001 to respond to the growth. Fernley is a growing community of approximately 15,000 people and includes surrounding agricultural areas. Fernley was established in 1904 as primarily an agricultural and ranching community. The Truckee Canal is about 32 miles in length and was constructed as part of the Newlands Project (a federal Bureau of Reclamation project) in 1905. The canal was designed to carry 1,500 cubic feet per second of water from the Truckee River through Fernley and ultimately into the Lahontan Reservoir. The Truckee Canal provided water to allow ranching and farming. This also coincided with the development of the railroad. In 1905 the Fernley station was listed in the official railroad guide and in December 1913, grading started for the new Fernley Depot, which was completed in August of 1914. The Depot was in use until the Southern Pacific Railroad closed it in September of 1985. The Depot was purchased by the Fernley Preservation Society in January of 1986 and was moved to its present location on Main Street in September 1986. The City acquired the Depot from the Preservation Society and there is a management agreement between the City and the Preservation Society for operation of the Depot. Through donations, the labor of the community, and State and Federal grants, the Depot is being restored and will live on as a symbol of the community's rich history. 5 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Fernley was established as a "township" in the 1930's with the Lyon County Board of Commissioners as the governing body for Fernley. In 1985, the citizens installed a self- governing “town board” separate from the Lyon County Board of Commissioners. Effective July 1, 2001, Fernley incorporated as a city and assumed additional functions. All matters of development and business go before either the Fernley City Council or the Fernley Planning Commission. The North Lyon County Fire Protection District provides fire protection services and a Volunteer Fire Department provides full-time paramedic services. The County provides a Sheriff Substation and the County Sheriff provides law enforcement within the City under an interlocal agreement between Lyon County and the City of Fernley. In October 2002, the City established separate municipal court operations. The County also provides certain services within Fernley such as operation of the Canal Township Justice Court, senior center, indigent programs, cemetery, public health nurse and library. In the 1980's business and industry started to take hold in Fernley with the establishment of the first Industrial Park. The second major Industrial Park developed and today several companies have located facilities in Fernley, benefiting the community and leading the way into the future. Companies that have recently moved to, or opened facilities in Fernley include, Amazon.com, Trex Inc., Quebecor Printing, MSC Industrial Supply, Allied Signal, UPS Worldwide Logistics (Honeywell), ARE Campers, Johns Manville, Sherwin Williams, and Feldmeir Corporation, just to name a few. Fernley is an easy 1/2 hour drive to the historic Fort Churchill, the Buckland Station (currently being restored), and a "Pony Express" station. Fernley is just an hour's drive to historic Native American (east of Fallon) and Virginia City (to the southwest). Historic Ghost Towns and mine sites are all within a day’s drive of Fernley. Fernley is close to outdoor activities such as hunting and fishing, including Lake Tahoe, Lahontan Reservoir, Pyramid Lake and Walker Lake. The Fernley Wildlife Management area joins Fernley on the east with the Truckee River canal on the west. Fernley has six community parks that include tennis courts, basketball courts, a skate park, lighted baseball and softball fields, and rodeo grounds. The City is also applying for transfer of 2,246 acres of federal land for various public purposes. Off road adventures include a professional ATV racetrack, the Reno/Fernley Raceway, and a Paint Ball Gaming Facility. The 18-hole Desert Lakes Golf Course provides recreational opportunities and full services in the clubhouse. Fernley offers a high quality of life and includes an ample work force for labor, administration, and clerical positions. 6 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The Budget Process and Calendar of Events The budget process generally begins in January with a general overview of the financial condition of the City and a projection of revenues for the coming year, considering economic conditions. The City Council outlines general budget policies and goals and budget preparation packets are distributed to department heads and others involved in submitting budget requests. Budget requests are submitted to the City Manager with a copy to the City Treasurer/Administrative Services Director. The City Manager and the City Treasurer then review each request and meetings are held with each person submitting a request to review programs and clarify requests. The City Manager and City Treasurer then compile all requests into a single recommended budget document to be considered in budget workshops of the City Council. A separate document in the format required by the Nevada State Tax Commission (the Tentative Budget) is filed by April 15 containing the basic financial information included in the City Manager’s Recommended Budget. Following budget workshops, changes may be made to the City Manager’s Recommended Budget for consideration in the public hearing on the budget. The public hearing is generally held in May. The City Council directs the City Manager and City Treasurer to make final adjustments to the budget following public hearings. The City Council must adopt the final budget by the end of May. The final budget document and the final document in the format required by the Nevada State Tax Commission are issued by June 1. Developing the projected revenues used in the budget is a dynamic process. The Nevada State Tax Commission prepares preliminary revenue estimates for certain revenues in mid-February. The Tax Commission issues final revenue estimates in mid-March. City staff members prepare estimates of other revenues such as building and planning fees, business license fees, franchise fees, and miscellaneous revenues. After the budget has been approved, the City Council may change the budget for governmental fund types in the following ways: 1. For changes between expenditure line items within a single function: The individual with budget responsibility sends a memorandum to the City Manager requesting adjustments between line items. The total appropriation (the “bottom line”) cannot be increased through this process. The number of positions, salaries, wages, and employee benefits cannot be changed through this process. However, reduction in personnel line items (due to unfilled positions, for example) can be used to increase non-personnel line items. If the request is in order, the City Manager approves the request and the line item adjustments are read into the record at the next City Council meeting. The Administrative Services Department then records the budget adjustments in the computerized accounting system and, if necessary, files the changes with the Nevada Department of Taxation. 7 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 2. For changes in expenditure line items between departments that do not increase total appropriations: Budget modifications between departments (cost centers) must be accomplished through a resolution duly adopted by the City Council. The individual with budget responsibility submits a request to the City Manager. The City Manager and City Treasurer review the request. If the request is in order, the Administrative Services Department prepares a draft resolution for presentation to the City Council. Upon adoption of the resolution, the Administrative Services Department records the budget adjustments in the computerized accounting system and amends the budget filed with the Department of Taxation. As long as total appropriations are not increased, the resolution does not require advertising as an “augmentation.” 3. For changes in total appropriations when new sources of funds are identified: Budget adjustments that increase the total appropriation for a particular fund must be accomplished through a process known as “Budget Augmentation” as defined in Nevada Revised Statutes. The Budget Augmentation must be accomplished through a resolution of the City Council following proper advertisement and public hearing. The Budget Augmentation process is commonly used for appropriation of grant proceeds, final audited fund balances greater than anticipated or other money received that was not anticipated in the original budget. The Budget Augmentation resolution must identify the source of funds for the increased appropriation. The individuals with budget responsibility submit a request to the City Manager. The City Manager and the Administrative Services Department review the request. If the request is in order, the Administrative Services Department prepares the resolution and the advertisement for the resolution. The item is placed on the City Council agenda for public hearing, review and approval. Upon adoption of the resolution, the Administrative Services Department records the budget adjustments in the computerized accounting system and amends the budget filed with the Department of Taxation. The following calendar summarizes the events for the Fiscal 2005-2006 budget year: Jan 18, 2005 Tuesday Distribution of Budget Request Instruction Manual to Department Heads Feb 18, 2005 Friday Deadline for Submission of Budget Requests to City Manager and City Treasurer. Feb 18, 2005 Friday Dept of Taxation provides Preliminary Revenue Projections Package Feb 18 – Feb 28, 2005 Fri – Mon City Manager and City Treasurer read all submissions and prepare outline for a recommended budget and prepare for meetings with departments. 8 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Mar 1, 2005 Tuesday Governor certifies population for distribution of Cigarette, Liquor, Basic City/County Relief Tax and Gasoline Tax. (NRS 370.260; 369.173; 377.055(3); and 360.285) Mar 1, 2005 Tuesday Assessor files tax roll with the State Board of Equalization and the Segregation of Property report with the Department of Taxation Mar 15, 2005 Tuesday Dept of Taxation provides final Revenue Projections Package Mar. 16, 2005 Wednesday Regular City Council Meeting. Designation of auditor or auditing firm must be made no later than three months prior to the close of the fiscal year. Dept of Taxation is to be notified of the designation (NRS 354.624) March 31, 2005 Thursday Issuance of City Manager’s Recommended Budget to City Council to prepare for budget workshops. April 11, 2005 Monday 1st Workshop Session April 15, 2005 Friday Tentative Budget Submitted to Dept of Taxation (NRS354.596) April 27, 2005 Wednesday 2nd Workshop Session May 4 & 11, 2005 Wednesday Notice of public hearing published for tentative City budget (NRS 354.596) May 17, 2005 Tuesday Public Hearing-Tentative City Budget (3rd Tuesday in May NRS 354.596) Final Budget, as amended, adopted by the City Council. Council members authorized to sign final document. May 31, 2005 Thursday Final Budget Filed with Dept. of Taxation (NRS 354.598) Jun 30, 2005 Thursday Indebtedness Report, Capital Improvement Plan and Debt Management Policy due to Department of Taxation 9 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Fund Structure and Budget Basis The accounts of the City of Fernley are organized on the basis of funds and account groups, each of which is considered a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in this report into fund types with four broad categories as follows. The following numbering system is standard in governmental accounting: Governmental Funds: General Fund (Fund 100): The General Fund is the general operating fund for the City. This fund accounts for all transactions not recorded in other funds and receives financial support from such sources as property taxes, sales taxes, fees, and intergovernmental revenues. Expenditures are authorized in the General Fund budget and include areas such as general government, community development, judicial, parks, and others. Special Revenue Funds (Funds 200-299): Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Capital Project Funds (Funds 300-399): Capital project funds account for financial resources used for the acquisition or construction of capital projects. These funds are often used to set aside money for projects identified in the Capital Improvement Plan. Debt Service Funds (Funds 400-499): Debt Service Funds are used to account for the payment of principal and interest on certain general obligation debt, if a debt service fund is required in the bond covenants. Debt service for enterprise funds is accounted for within the enterprise fund. Proprietary Funds: Enterprise Funds (Funds 500-599): Enterprise funds are used to account for the revenues earned, expenses incurred, and net income for business-type functions. These businesses are financed from fees paid by the users of the systems. Internal Service Funds (600-699): Internal Service Funds are used to account for the financing of goods and services provided by one department or agency to other departments or agencies on a cost reimbursement basis. 10 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Fiduciary Funds: Trust and Agency Funds (Funds 700-799): Trust and Agency Funds are used to account for money that “passes through” the City or that is otherwise outside of the control of the City Council. The City of Fernley maintains capital assets records and other records necessary to convert the fund financial statements to the full accrual method for the government wide statements. The City does not maintain “account groups” for General Fixed Assets or General Long Term debt. The basis for budgeting is Generally Accepted Accounting Principles. The City adopted Governmental Accounting Standards Statement #34 in FY2003/2004. The City does not budget at the government wide financial statement level. The funds in the budget are prepared according to Generally Accepted Accounting Principles for the fund financial statements. In the General Fund, Special Revenue Funds, and Capital Project Fund, the budget is based on the current financial resources measurement focus and the modified accrual basis of accounting. In the Enterprise funds, the budget is based on the economic resources measurement focus and the accrual basis of accounting. Debt Management Policy The City of Fernley’s policy is to maintain manageable debt limits through proper planning of projects and identification of sources of revenues for debt repayment without compromising revenue allocated to on-going operations. The City of Fernley has no outstanding general obligation debt and no authorized future general obligation debt. The City of Fernley does not currently have specific plans for proposed future general obligation debt. However, the City Council may develop a Community Center project in the future and may consider general obligation debt as a means of financing the project. The City created a capital fund to finance future capital projects, including future debt service for projects. The City may seek other sources of funding, such as room tax revenues, for repayment of any debt that may be incurred. The City of Fernley is limited in the debt that may be incurred as follows: FY2006 Assessed Valuation $377,743,200 30% of Assessed Valuation (NRS 266.600(4)) $113,322,960 Outstanding General Obligation Bond $0 Legal Debt Margin $113,322,960 Projected cash flow to repay debt is also an important factor in debt capacity. Since the City fully repaid a debt in FY2002/2003, cash flow may be available in the General Fund for either debt service for a new obligation or for other purposes as determined by the City Council during the budget process. The City budgeted for transfers from the 11 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 General Fund to other funds in FY2003/2004, FY2004/2005 and FY2005/2006 indicating positive cash flow from operations. The debt in the water and sewer enterprise funds is not classified as general obligation debt. Use fees in the Water and Sewer Enterprise Funds are used to repay these debts. The Water and Sewer Enterprise funds currently have positive cash flow from operations before depreciation. Therefore, adequate cash is available to service existing debts. Debt in the water and sewer enterprise funds will be repaid from user fees. Per NRS 266.600(4), the debt limit does not apply to debts related to water and sewer projects. It is the policy of the City of Fernley to retain qualified financial advisors and bond counsel when contemplating any new debt issuance to obtain the appropriate type of financing at favorable rates. The City of Fernley will identify the expected sources of funds for debt repayment for either general obligation debt that may be repaid from property taxes or revenue obligations that may be repaid from other sources such as use fees. Capital Improvement Plan The City of Fernley prepares as separate Five Year Capital Improvement Plan. This plan involves projections of available monies for capital projects as well as operation and maintenance of capital projects. A listing of capital projects for the current fiscal year are included under the heading “Capital Expenditure Summary.” The major capital expenditure items relate to either streets or utility operations. The City currently uses gas tax, intergovernmental revenue from Lyon County, and transfers from the General Fund to maintain streets and to repair or reconstruct streets. Reconstruction of streets will improve the condition of the street and initially decrease maintenance costs for the street. The City currently does not maintain gravel roads within the City limits. New developments are required to improve streets to City standards before the streets will be accepted into the maintenance program. Maintenance costs for City streets and gravel roads within the City limits will continue to be a challenge. The City intends to undertake a comprehensive Streets Capital Improvement Plan in FY06 that will include recommendation for financing. The City is currently facilitating a process for certain partially developed areas to examine the feasibility of establishing an assessment district for improvement of roads so that the roads can be accepted into the maintenance system. The City will continue to examine alternatives for funding on-going maintenance of streets and may not accept streets into the maintenance system if funding is not available. The operation and maintenance costs associated with the capital improvements in the water and sewer enterprise funds are being considered in analysis of rates. The maintenance costs associated with unfunded mandates such as arsenic removal have a significant impact on rates for the water and sewer utilities. In the near future, the City may be required to expand its sewer treatment facilities. This is also being considered in the rate analysis. The City intends to set user rates at the proper levels to provide adequate funding for operations and capital replacements. 12 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Performance Measurements The City Council holds workshops in July of each year to discuss performance during the prior fiscal year and goals and objectives for future years. Following the City Council workshops, the City publishes a qualitative performance measurement document which details the results and performance during the prior year of operation and discusses the goals established in the budget and longer term goals for future years. This document also discusses projects that occurred during the year that were not anticipated in the original budget together with an explanation of how the projects were completed within available resources. Currently, qualitative measures of performance include methods developed to cope with the City’s significant growth without major bottlenecks. The City has been successful in bringing new functions online without major surprises. The City has not established formal quantitative performance measurement standards. The City may establish more formal quantitative performance measures as the City further develops. Financial and Program Policies The Fernley City Council has the responsibility to set the budget and establish tax rates for City operations. The Fernley City Council then is responsible for monitoring the budget throughout the year and establishing systems to safeguard City assets. The City uses a fund accounting system as recommended by the National Council on Governmental Accounting. Fund accounting is needed to demonstrate compliance with regulations governing funding sources. Depending on the fund type, the basis of accounting may be different. The basis of accounting determines when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The budgetary basis is the same as Generally Accepted Accounting Principles (GAAP). Formal budgetary integration is employed as a management control device during the year. Encumbrance accounting is used for major purchases through a computerized purchase order system that interfaces with the Accounts Payable and General Ledger modules. Major financial and program policies are listed below. Efficient Safeguarding of Assets: Management of the City of Fernley is responsible for establishing and maintaining an internal control structure designed to ensure that assets are protected from loss, theft, or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principals. Proper authorization is required for encumbrance or expenditure of funds. The proper department must have adequate appropriation available prior to approval of the purchase. The City does not currently use a centralized purchasing function and has not adopted purchasing policies more stringent than state law. Per state law, at least two documented quotes must be attached to purchases between $5,000 and $10,000 and the City Manager is authorized to sign contracts under $10,000. Either formal bids or advertising of intent to award a bid are required for 13 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 purchases between $10,000 and $25,000 per NRS 332.036 and the City Council must formally award the bid. Purchases exceeding $25,000 must be advertised and competitively bid. Splitting of orders, allowance for non-monetary items, or any other practices that might be construed as circumventing the purchasing process are unacceptable. Management is also responsible for adequately addressing risk and insurance issues to efficiently safeguard City assets. Fund Balances and Contingencies: The City general fund balance should be maintained at an amount equivalent to between one and two months of projected annual expenditures (equivalent to between 8% and 17%). The projected annual expenditures before transfers and contingency for the general fund are approximately $3 million; therefore the targeted ending fund balance for the general fund is between $240,000 and $510,000. The contingency account in the general fund should be established at 3% of projected annual expenditures, the maximum contingency allowed under State of Nevada statutes. Therefore, the contingency in the general fund was established at $90,000 million X plus an additional $15,000 pending the outcome of labor negotiations. Balanced Budget: The annual budget should be balanced with current revenues equal to or greater than current expenditures/expenses. The primary mechanisms, in order of priority, for balancing the budget are improve productivity, improve revenues establish fees consistent with the cost of providing the service, reduce programs use fund balances in excess of target amounts, and, lastly, increase property tax rates. Tax Rate: The tax rate should be set at a rate adequate to produce revenues needed to pay for City services, as approved by the City Council, and to provide a stable revenue source. In this Budget, the tax rate for FY2005/2006 is unchanged, despite the additiona of new services, specifically vector control. The tax rate in future years will likely increase to fund this program. The tax rate has remained unchanged for many years. The current practice of transferring money from the General Fund to various funds for capital or special projects reduces the City’s dependence on volatile revenues such as building permits. General and Administrative Charges: Full cost accounting should be used to allocate costs to various funds, including general and administrative services such as management, finance, personnel, and use of facilities. The budget continues the past practice of allocating facility costs to enterprise funds as “building rent” but eliminates the practice of the enterprise funds paying certain costs (gas, electric, etc.) and deducting these costs from the “rent”. All costs of maintaining City Hall are now included in the General Fund so that costs can be appropriately monitored. The enterprise funds include an allocation of other costs such as management, finance, and personnel. Full cost accounting is also an important element in establishing user charges to cover the full cost of enterprise fund services. Capital Improvement Plan: The City will establish an annual process to plan, prioritize and identify financing for replacement of existing capital that is worn out or to create new capital projects. New capital projects or programs will not be implemented until a plan 14 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 for financing the operation and maintenance of the project or program is identified and quantified. The Capital Fund includes a budget to prepare a more formal CIP with more financial projections and a more in depth analysis of funding alternatives to establish prudent public policy and to determine sources of funds for capital expenditures. Investments: Investments made by the City will be in conformance with State statutes and any investment policies that may be adopted by the City Council. All investments will address safety, liquidity, and yield. Interest earned from investment of available cash will be distributed to funds according to the average balance according to “ownership” of each fund in the total invested cash. Investments should be adequately collateralized. Utility Rates: The City will periodically review utility rates and establish rates that will generate revenues adequate to cover operating expenses, debt service, and capital replacements/expansions in the water distribution and sewage collection systems. The water and sewer rates will require review and increase in the near future. Specific financial and operational policies for the FY2005/2006 budget year are listed below: Improve productivity through use of technology and leadership: The City was faced with numerous challenges upon incorporation. It is critical for the City to establish systems in which employees can be productive and proud of their accomplishments. Adequate technology, training, and organizational leadership are critical in achieving productivity improvements. The City began a project in FY03/04 to logically approach this through a needs assessment, plan, budget, and implementation schedule. The first phase of the plan was implemented in FY04/05 and planning for the next phase began. Fully explore alternatives for certain services: The City was forced to critically examine each service provided and thoroughly explore alternatives for providing services as efficiently as possible due to limited resources at the July 1, 2001 incorporation. The City simply had to find better, more efficient ways to conduct business. The City will be outsourcing some park maintenance functions to explore the cost/benefit ratio for outsourcing this service. The City will also be analyzing alternatives for the animal control function to determine the desired level of service, the delivery method and the costs of alternatives. Pursue other funding sources: The City will pursue other sources of funding, such as grants, to improve services to the community. The City may also examine alternatives for increase the business license fee for public utilities or for franchise fees. Full Funding of Estimated Leave Payoff at Termination: Prior budgets of the City and Town did not include a provision for potential cash due to employees for certain accrued leave payable at termination of employment. Under the City’s personnel rules, accrued vacation and, in some cases, a portion of accrued sick leave are payable at termination and represent an unfunded liability. In addition, recent changes to the personnel rules allow for cash out prior to termination of certain annual leave and conversion of excess sick leave to annual leave. The budget provides for potential payoffs based on accrued amounts. 15 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 City of Fernley Organizational Chart Voters of Fernley Mayor/City Council Municipal Court Judge City Manager City Attorney Planning Commission Office of the City Clerk Adm Serv Dept Community Dev. Dept Public Works Dept Office of the City Manager Parks Dept Elections Accounting/Budgeting Building Insp./Permits Water Utility General Administration Park Development Business License Administration Muni Court Planning Sewer Utility Risk Management Park Mainteance Records Utility Billing Code Enforcement Streets & Storm Drains Human Resources Buildings & Grounds Investments Economic Development Plan Check Police (Lyon Co.) Minutes/Agendas Vector Control Financial Reporting Plans Review/Examination Contracts Non-Potable Water Maint Dist Admin Engineering / GIS City Treasury Capital Projects Human Res/Payroll Animal Control Services 16 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Overview Budget Summary-All Funds Total citywide sources and uses of cash projected for FY2005/2006 are shown in the following table. General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Funding Sources Taxes 576,132 882,000 1,458,132 Licenses and Permits 2,566,500 41,000 2,607,500 Intergovernmental Resources 243,300 2,337,114 2,580,414 Charges for Services 0 3,873,500 3,873,500 Fines and Forfeits 134,500 27,200 161,700 Miscellaneous 75,000 41,400 30,000 616,000 762,400 Other Financing Sources 0 0 400,000 3,962,828 4,362,828 Total Revenue & Other Financing Sources 3,595,432 3,328,714 430,000 8,452,328 15,806,474 Beginning Fund Balance 277,140 1,663,476 2,325,182 14,508,566 18,774,364 Total Available Resources 3,872,572 4,992,190 2,755,182 22,960,894 34,580,838 Funding Uses General Government 827,240 827,240 Judicial 184,603 22,500 207,103 Public Works 0 2,501,276 8,387,600 10,888,876 Community Development 1,156,750 2,410,000 3,566,750 Culture and Recreation 569,800 1,252,500 1,822,300 Health 268,650 268,650 Debt Service 0 316,729 316,729 Other Uses 505,000 505,000 Total Expenditures and Other Uses 3,512,043 3,776,276 2,410,000 8,704,329 18,402,648 Ending Fund Balance 360,529 1,215,914 345,182 14,256,565 16,178,190 Total Fund Commitments and Fund Balances 3,872,572 4,992,190 2,755,182 22,960,894 34,580,838 The Citywide uses of cash by object are summarized in the following table: General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Salaries and Wages 1,356,143 94,276 698,100 2,148,519 Payroll Taxes and Benefits 672,200 46,200 367,300 1,085,700 Service and Supplies 876,700 593,300 1,837,200 3,307,200 Capital Expenditures 102,000 3,032,500 2,410,000 5,485,000 11,029,500 Debt Service 0 316,729 316,729 Contingency & Transfer 505,000 505,000 Total Uses by Object 3,512,043 3,766,276 2,410,000 8,704,329 18,392,648 17 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The Citywide sources of cash are shown in the following chart: FY2005/2006 Sources-All Funds Micellaneous, $762,400 , 2% Beginning Fund Balance, $15,806,474 , 50% Other Financing Sources, $4,362,828 , 14% Licenses and Permits, $2,607,500 , 8% Taxes, $1,458,132 , 5% Fines and Forfeits, $161,700 , 1% Intergovernmental Resources, $2,580,414 , 8% Charges for Services $3,873,500 , 12% The Citywide revenues (without Beginning Fund Balance and Other Financing Sources) are shown in the following chart: FY2005/2006 Revenues-All Funds Micellaneous, $762,400 , 7% Licenses and Permits, $2,607,500 , 23% Taxes, $1,458,132 , 13% Fines and Forfeits, $161,700 , 1% Intergovernmental Resources, $2,508,414 , 22% Charges for Services, $3,873,500 , 34% 18 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The Citywide uses of cash, detailed by function, are shown in the following chart: FY 2005/2006 Citywide Uses by Type Other Uses, $505,000, 1% Culture and Recreation, $1,822,300, 5% Debt Service, $316,729, 1% Health, $268,650, 1% Community Development, $3,566,750, 10% Ending Fund Balance, $16,178,190, 48% Public Works, $10,888,876, 31% General Government, $827,240, 2% Judicial, $207,103, 1% The Citywide expenditures (without Ending Fund Balance, Contingencies and Transfers) by function are shown in the following chart: FY 2005/2006 Citywide Expenditures by Type Culture and Recreation, $1,822,300, 10% Debt Service, $316,729, 2% Health, $268,650, 1% Community Development, $3,566,750, 19% Other Uses, $505,000, 3% Public Works, $10,888,876, 60% General Government, $827,240, 4% Judicial, $207,103, 1% 19 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The Citywide uses of cash, detailed by object, are shown in the following chart: Projected FY2005/2006 Citywide Uses by Object Ending Fund Balance, $18,402,648 , 50% Debt Service, $316,729 , 1% Contingency & Transfer, $505,000 , 1% Capital Expenditures, $11,029,500 , 30% Salaries and Wages, $2,148,519 , 6% Payroll Tax and Benefits, $1,085,700 , 3% Service and Supplies, $3,307,200 , 9% The Citywide expenditures (without Ending Fund Balance, Contingencies and Transfers) by object are shown in the following chart: Projected FY2005/2006 Expenditures by Object Debt Service, $316,729 , 2% Capital Expenditures, $11,029,500 , 62% Salaries and Wages, $2,148,519 , 12% Payroll Tax and Benefits, $1,085,700 , 6% Service and Supplies, $3,307,200 , 18% 20 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Revenue Sources Property (Ad Valorem) Taxes: NRS 361 determines the procedure for assessment and levy of taxes on real and personal property in Nevada. The County Assessor performs certain assessments and the State of Nevada performs other assessments (centrally assessed property). Tax levies are expressed in terms of dollars per $100 of assessed value. The assessed valuation of the property is computed at 35% of “taxable value” as determined by County and State assessments according to statutes. The amount of tax is determined by multiplying the assessed value by the tax rate applicable to the area in which the property is located divided by 100. The Fernley City Council annually establishes the tax levy for the City, subject to certain statutory limitations. Each “Local Government Taxing Unit” in Lyon County is subject to a limited Allowed Rate determined annually according to statutory formulas based on growth factors. The Fernley City Council may not establish a levy greater than the “Allowed Rate.” Voters may approve imposition of rates above the “Allowed Rate” and the Nevada State Legislature may impose rates above the “Allowed Rate.” The total combined rate for all “Local Government Taxing Units” in a single district may not exceed $3.64 per $100 of assessed value. The City of Fernley Allowed Rate for FY2005/2006 is $0.3447 per $100 of assessed value. The FY2005/2006 budget assumes a levy of $0.1528 per $100 of assessed value with no increase from the prior year. The City could levy an additional $0.1919 representing revenue of $724,889, if necessary. The City of Fernley Allowed Rate versus rate levied is shown in the following chart: Year Assessed Value Allowed Rate Levied Rate Allowed Revenue Levied Revenue Difference FY05/06 $377,743,200 $0.3447 $0.1528 $1,302,081 $577,192 $724,889 FY04/05 $303,180,006 $0.3432 $0.1528 $1,040,514 $463,259 $577,255 FY03/04 $279,403,487 $0.3141 $0.1528 $877,606 $426,929 $450,677 FY02/03 $246,640,476 $0.2936 $0.1528 $724,136 $376,867 $347,269 FY01/02 $233,552,164 $0.2576 $0.1528 $601,630 $356,868 $244,762 The highest levy in a Lyon County area in FY2004/2005 is $3.5957 per $100 of assessed value, $0.0443 below the $3.64 overall cap. The tax rate for property located in the City of Fernley in FY2004/2005 is $2.8965 per $100 of assessed valuation, $0.7435 below the $3.64 cap. 21 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The following table shows a hypothetical FY2004/2005 tax bill for the owner of a $100,000 home within the City. Local Government Taxing Unit Levy Tax State $0.1700 $59.50 School District $1.3367 $467.85 Lyon County $0.8644 $302.54 City of Fernley $0.1528 $53.48 Fernley Swimming Pool District $0.2000 $70.00 North Lyon Fire Maintenance District $0.1726 $60.41 Total $2.8965 $1,013.78 The following graph represents the information in the above table for a hypothetical tax bill on a $100,000 home in the City of Fernley FY2004/2005 Property Tax Bill on $100,000 Home in Fernley County, $0.8664, 30% City, $0.1528, 5% Pool, $0.2000, 7% Fire Dist., $0.1726, 6% State, $0.1700, 6% School, $1.3367, 46% Licenses and Permits: Business Licenses: Effective with the City’s incorporation on July 1, 2001, the City of Fernley began issuing business licenses and collecting revenue for issuance of business licenses. Business license revenues increased 19% during FY2004/2005 from $79,480 to $95,000. Business license revenue is projected to increase 5% during FY2005/2006 to $100,000 per year. Public Utility Business License and Franchise Fees: Upon incorporation, the City was able to charge a business license to certain public utilities and franchise fees for certain operations within the city limits. The City examined the rates for these types of services and increased rates during FY2002/2003 to provide a more stable revenue base for City operations. The City estimates FY2004/2005 revenues from the following public utilities and/or franchisees: 22 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Public Utility/Franchisee Type of Business Rate FY2004 Revenue Sierra Pacific Power (Bus Lic) Electricity 2% $180,000 Southwest Gas (Bus Lic) Natural Gas 3% $200,000 Wasatch Engergy (Bus Lic) Natural Gas 3% $95,500 SBC Communications (Bus Lic) Telephone 2% $40,000 AT&T (Bus. Lic) Communication 2% $2,500 Charter Communications (Franchise) Cable TV 5% $45,000 Reno Disposal (Franchise) Refuse Disposal 5% $112,000 TOTAL $675,000 County Gaming Licenses: NRS 463 relates to licensing of gaming activity in Nevada. Lyon County is authorized to issue gaming licenses per NRS 463. Per NRS 463.323, Lyon County pays the City 75% of the revenue from gaming licenses collected from businesses within the boundaries of the incorporated City. The City estimates that the City’s share of County gaming licenses will be approximately $65,000 in FY2005/2006 based on the trend of amounts received from this revenue source in prior years. The town government received this same distribution before incorporation. Building Permits and Fees: Upon incorporation, the City of Fernley was able to institute building permits and related fees. The proceeds from this function fund the new Community Development Department created during FY2001/2002. The City anticipates revenue of approximately $1.6 million from building permit fees during FY06. Planning and Zoning Fees: Upon incorporation, the City was able to impose certain planning and zoning fees. The proceeds from planning and zoning fees are used to fund the new Community Development Department created in FY2001/2002. The City anticipates revenue of approximately $100,000 from planning and zoning application fees in FY2005/2006. Public Works Fees: The Public Works Department charges fees for items such as road cut permits, plan reviews, and grading permits. The City anticipates receiving approximately $16,000 during FY2005/2006 for these charges based on activity in prior years. The Public Works Department instituted new fees for inspection of developments. These fees will cover the City’s cost to inspect the improvements. Intergovernmental Revenues: Consolidated Tax: Consolidated tax is made up of several elements, including certain component of sales tax. The elements of the consolidated tax are 1) Basic City-County Relief Tax 2) Supplemental City-County Relief Tax 3) Cigarette Tax, 4) Liquor Tax, 5) Real Property Transfer Tax (RPTT), and 6) Government Services Tax (GST). and are components of sales tax. The sales tax rate for sales made in the City of Fernley is 6.5%, the minimum rate for the State of Nevada. Lyon County does not impose a sales tax over and above the minimum rate. The components of the 6.5% sales tax are shown in the following table: 23 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 NRS Chapter Tax Rate Description Distribution 372 2.00% State Sales Tax To the State General Fund 374 2.25% Local School Support Tax In state sales-Back to the school district in which the business is located. Out-of-state sales: To the State Distributive Schools Fund 377 0.50% Basic City-County Relief Tax In-state sales: Back to the County where the sale was made distributed to cities and districts as part of consolidated tax according to a statutory formula Out-of-state sales: Distributed to counties based on population and distributed to cities and districts as part of consolidated tax according to statutory formula 377 1.75% Supplemental City-County Relief Tax Tax distributed to all local governments in the state according to statutory formula as part of consolidated tax 6.5% Total Minimum Statewide rate 24 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The amounts available for distribution in Lyon County for consolidated tax are listed in the following table: FY2005/2006 FY2004/2005 FY2003/2004 Basic City-County Relief Tax $ 1,933,873 $ 1,512,801 $ 1,432,234 Supplemental City County Relief Tax 9,905,704 8,880,057 8,382,949 Cigarette Tax 307,617 288,185 281,463 Liquor Tax 56,680 49,206 42,253 Real Property Transfer Tax (RPTT) 1,954,374 966,858 427,835 Government Services Tax (GST) 2,585,200 1,985,481 1,745,993 TOTAL $16,743,449 $13,682,588 $12,312,727 The following table shows the elements of FY2005/2006 consolidated tax for Lyon County: Elements of FY2005/2006 Lyon Co. Consolidated Tax Cigarette, $307,617 , 2% $9,905,704 , 59% $1,993,873 , 12% Liquor, $56,680 , 0% RPTT, $1,954,374 , 12% GST, $2,585,200 , 15% The largest component of Consolidated Tax is the Supplemental City County Relief Tax. Lyon County is considered an “importer” of because the tax actually collected for in Lyon County is less than the amount distributed because of formulas for guaranteed minimum distributions to rural counties in Nevada. Estimates for FY2005/2006 indicate that approximately $5.7 million will actually be collected for in Lyon County but approximately $9.9 million will be distributed as part of consolidated tax for 25 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Consolidated Tax is distributed to Lyon County, incorporated cities, and other districts in Lyon County according to a statutory formula described in NRS 360.600 through 360.740. The estimated FY2005/2006 distribution of consolidated tax in Lyon County is shown in the following table: FY2005/2006 FY2004/2005 FY2003/2004 Stagecoach General Imp. District $19,064 $ 19,064 $ 19,064 Willowcreek General Imp. District 2,304 2,304 2,304 Lyon County 15,082,579 12,230,041 10,933,802 City of Yerington 305,038 291,222 291,641 City of Fernley 188,504 143,752 123,003 Carson-Truckee Water Conservancy 10,018 8,385 7,725 Central Lyon Fire Protection 504,836 430,364 396,315 Mason Valley Fire Protection 61,077 57,378 56,592 Mason Valley Mosquito Abatement 53,398 50,172 49,611 North Lyon Fire Protection 156,735 129,549 119,795 Silver Springs Stagecoach Hospital 75,382 67,681 65,787 Smith Valley Fire Protection 53,258 43,485 41,141 South Lyon Hospital District 231,256 209,191 205,947 Total 16,743,449 $13,682,588 $12,312,727 The FY2004/2005 projected distribution of consolidated tax in Lyon County is shown in the following chart: FY2005/2006 Projected Consolidated Tax Distribution Lyon County, $15,082,579 , 90% City of Yerington, $305,038 , 2% City of Fernley, $188,504 , 1% No. Lyon Fire, $156,735 , 1% Other Districts, $1,010,593 , 6% 26 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The Town of Fernley received a consolidated tax distribution prior to incorporation and the City of Fernley continued to receive the distribution based on the initial “seed” amount established for the town government. The following table shows the historical distributions of consolidated tax: Fernley % Inc. Yerington % Inc. Lyon County % Inc. FY2005-2006 $188,504 31.3% 305,038 4.7% $15,082,579 18.9% FY2004-2005 $143,572 16.7% $291,222 $12,230,041 11.9% FY2003-2004 $123,003 4.3% $291,641 $10,933,802 2.7% FY2002-2003 $117,944 11.6% $291,433 1.9% $10,643,282 6.8% FY2001-2002 $105,652 7.2% 285,864 6.3% 9,962,442 6.7% FY2000-2001 $98,587 9.6% 268,805 8.5% 9,341,125 8.8% FY1999-2000 $89,943 247,694 8,584,772 Motor Vehicle Fuel Taxes (Gas Taxes): The City of Fernley receives an allocation of certain taxes levied on sales of motor fuel. The State of Nevada administers the collection and distribution of proceeds to counties in the State. Lyon County disburses the City’s portion of gas taxes to the City In addition to gas tax directly disbursed to the City, the City is entitled to a portion of gas tax distributed to the Lyon County Regional Transportation Commission, a statutory board established to account for a specific tax on sales of motor fuel. All of these funds are restricted for use in maintenance or capital projects relating to City streets. The various gas taxes with FY2005/2006 estimated amounts allocable to the City of Fernley are shown in the following table. Description Rate per Gallon Note Statute Reference Estimated FY06 Lyon Co. Total Estimated FY06 City Amount County Option (RTC) 9¢ 1 NRS 373.030 $1,706,800 $612,740 County Option 1 1¢ 2 NRS 365.192 $190,617 $58,805 Motor Vehicle Fuel Tax 1.25¢ 3 NRS 365.180 269,808 0 Motor Vehicle Fuel Tax 1.75¢ 4 NRS 365.190 328,459 117,818 Motor Vehicle Fuel Tax 2.35¢ 5 NRS 365.180 507,235 76,985 Subtotal $1,296,119 $253,608 Total N/A $3,002,919 $866,348 Note References in Table: 1. County Option (RTC)-The City of Fernley does not receive a direct distribution of this tax (NRS 373.040(2)(a)). The money collected goes into a fund in Lyon County’s books and a Regional Transportation Commission oversees use of the money. The City of Fernley appoints one member of the three-member RTC board. The RTC can approve projects to use the money and incorporated cities receive an allocation based on relative assessed value (NRS 373.150). The FY2005/2006 assessed value of Lyon County is $1,053,093,222 and the FY2005/2006 assessed value of the City of Fernley is $377,743,200. The City of Fernley 27 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 assessed value is 35.87% of the total county assessed value, therefore the City of Fernley could expect $612,740 of this amount to be “reserved” for Fernley projects. 2. County Option 1¢-The City of Fernley receives an allocation of this tax based on relative population. The estimated population of the City of Fernley is 13,775 and the estimated population of Lyon County is 44,646. Therefore, the City of Fernley would receive 30.85% or $58,805 from this tax. 3. MVFT 1.25¢ - This tax is allocated to the county road fund with no amounts passed through to the City of Fernley. 4. MVFT 1.75¢ - The City of Fernley receives an allocation of this tax based on relative assessed value. Therefore, the City of Fernley would receive 35.87% of this tax or $117,818. 5. MVFT 2.35¢ - The City of Fernley receives an allocation of this tax based on a formula weighted ¼ on Total Area, ¼ on Population, ¼ on Road Mileage, and ¼ on Vehicle travel miles. This formula results in 15.18% of the tax or $76,985 apportioned to the City of Fernley. The amount the City expects to receive for various motor vehicle fuel taxes is approximately 16% more than prior year estimates as shown in the following table: Description FY02 City Amount FY03 City Amount FY04 City Amount % Change FY05 City Amount % Change FY06 City Amount % Change County Option (RTC) 9¢ $521,877 $501,811 $520,230 6.37% $527,439 1.39% $612,740 16.2% County Option 1¢ $44,382 $44,232 $45,380 2.60% $49,550 9.19% $58,805 18.7% Motor Vehicle Fuel Tax 1.25¢ 0 0 0 0 Motor Vehicle Fuel Tax 1.75¢ 101,476 96,199 $100,273 4.24% $101,396 1.12% $117,818 16.2% Motor Vehicle Fuel Tax 2.35¢ 59,325 53,790 $57,023 6.01% $68,574 20.26% $76,985 12.3% Subtotal $205,183 $194,221 202,676 4.35% 219,520 4.35% $253,608 15.5% Total $727,060 $696,032 $722,906 3.86% $746,959 3.33% $866,348 16.0% Road Ad Valorem Tax: Pursuant to NRS 403 and NRS 266, the City of Fernley is entitled to a portion of the ad valorem tax collected in the Lyon County road fund based on relative assessed value. Prior to FY2003/2004, Lyon County assessed $0.0777 per $100 of assessed value in the County Road Fund. In FY2003/2004, Lyon County stopped the levy in the Road Fund and levied the tax in the County general fund instead. This eliminated the legal requirement to share revenue with the City. Lyon County decided to provide an amount to the City in lieu the lost revenue since the City assumed the expenses previously associated with this revenue. In the County’s FY06 budget, the County Commissioners elected to provide approximately $293,500 to the City. Parks Agreement: Lyon County has a policy to provide funding to Cities and other districts in the County for parks. In FY2001/2002, FY2002/2003, FY2003/2004, and FY2004/2005 the City received $52,882 from Lyon County for parks. The Lyon County Board of Commissioners included the $52,882 in the County budget; however, there was some discussion about eliminating this shared revenue in the future. 28 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Fines and Forfeitures: Municipal Court Fines and Forfeitures: The City of Fernley operates a municipal court and receives fines, forfeitures, and other fees from cases adjudicated in the court. The FY2002/2003 revenue of $104,330 was for the nine month period from October 1, 2002 through June 30, 2003. Revenue from Court operations is expected to remain unchanged at $134,500 in FY2004/2005 and FY2005/2006. Charges for Services: Water and Sewer Use Fees: The City of Fernley provides water and sewer services to a majority of the residents of Fernley. The City established a rate structure to charge users an amount needed to cover cost of operations, including depreciation and debt service. These funds are currently not recovering full costs of operations after depreciation and rate increases will be needed to fund operations. These funds currently have a positive cash flow because depreciation is a non-cash item and because the City receives capital contributions from developers for new homes. Capital contributions and the funded portion of depreciation are slated for use in capital projects and are not available for payment of operating costs. The City will also need to consider increases in capital fees in order to maintain sufficient balances for projected capital projects, especially compliance with unfunded mandates such as water treatment for arsenic removal. Miscellaneous Income: Park Development Fees: The City and the developer of the Donner Trails subdivision have an agreement that provides for payment of $100 per lot for park development. Based on the number of lots remaining in the subdivision, the City anticipates receiving $15,000 in FY05 and $10,000 in FY06 as this subdivision is virtually built out. 29 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Tax Rate History The City’s (or Town’s) Allowed Rate and the rate levied for the past several fiscal years are shown in the following table: Year Fernley Allowed Rate Fernley Levied Rate Excess Rate Not Levied FY2005-2006 $0.3447 $0.1528 $0.1919 FY2004-2005 $0.3432 $0.1528 $0.1904 FY2003-2004 $0.3141 $0.1528 $0.1613 FY2002-2003 $0.2936 $0.1528 $0.1408 FY2001-2002 $0.2576 $0.1528 $0.1048 FY2000-2001 $0.2286 $0.1528 $0.0758 FY1999-2000 $0.2284 $0.1528 $0.0756 The tax rate history is shown in the following table: Tax Rate History $0.1528 $0.1528 $0.1528 $0.1528 $0.1528 $0.1528 $0.1528 $0.0756 $0.0758 $0.1048 $0.1408 $0.1613 $0.1904 $0.1919 $0.0500 $0.1000 $0.1500 $0.2000 $0.2500 $0.3000 $0.3500 $0.4000 FY00 FY01 FY02 FY03 FY04 FY05 FY06 Fiscal Year Rate Rate Not Levied Levied Rate 30 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Assessed Value History The history for the assessed value of the Town of Fernley or the City of Fernley over the past several fiscal years is shown in the following table: Year Fernley Assessed Value % Change in Value Lyon County Assessed Value % Change in Value FY2005-2006 377,743,200 24.6% 1,053,093,222 17.3% FY2004-2005 303,180,006 8.51% 897,631,383 10.72% FY2003-2004 279,403,487 13.28% 810,688,136 9.15% FY2002-2003 246,640,476 5.60% 762,493,482 5.57% FY2001-2002 233,552,164 9.90% 722,102,643 5.14% FY2000-2001 212,507,285 13.30% 672,144,241 9.26% FY1999-2000 187,568,265 615,185,680 Fernley Assessed Value History $188 $213 $234 $247 $279 $303 $378 $0 $50 $100 $150 $200 $250 $300 $350 $400 FY1999- 2000 FY2000- 2001 FY2001- 2002 FY2002- 2003 FY2003- 2004 FY2004- 2005 FY2004- 2005 Fiscal Year Assessed Value (millions) Interfund Transfers Budgeted transfers between funds in FY2005/2006 are shown in the following table: To RCT #2 To Capital Fund From General Fund $400,000 From RCT#1 $400,000 31 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Capital Expenditure Summary Capital expenditures approved in FY2005/2006 for the General Fund are: Fund/Description: Amount General Fund Administration: None Subtotal Administration - $ Finance: None Subtotal Finance - $ Muncipal Court: None - $ Subtotal Municipal Court - $ Parks Park Maintenance Machinery 10,000 $ Vehicle 23,000 $ Subtotal Parks 33,000 $ Vector Control: Building for Chemical Storage 10,000 $ Subtotal Community Development 10,000 $ Community Development (Building & Planning): 2 Vehicles for additional personnel 34,000 $ Subtotal Community Development 34,000 $ Animal Services: Vehicle and associated equipment 25,000 $ Subtotal Animal Services 25,000 $ Total General Fund 102,000 $ 32 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Capital expenditures approved in FY2005/2006 for the Special Revenue Funds are: Fund/Description: Amount Special Revenues Funds: Administrative Assessment Fees Fund: None Subtotal Administrative Assessment Fees - $ Court Facilities Fees Fund: None (Note amounts accumulate for future court facilities) Subtotal Court Facilities Fees Fund - $ Grants Fund: Matching Funds for TCID Grants-Check Automation 202,500 $ Subtotal Grants Fund 202,500 $ Residential Construction Tax District #1 Projects 40,000 $ Subtotal RCT District #1 40,000 $ Residential Construction Tax District #2 Projects 1,000,000 $ Subtotal RCT District #2 1,000,000 $ Streets Fund Crack Seal Program 170,000 $ Slurry Seal and Patch Program 250,000 $ Cape Seal Program 150,000 $ Improvement Projects 1,070,000 $ Contingencies for Capital Projects 150,000 $ Subtotal Streets Fund 1,790,000 $ Total Special Revenue Funds 3,032,500 $ 33 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Capital expenditures approved in FY2005/2006 for the Capital Fund are: Fund/Description: Amount Capital Project Funds: Capital Fund: Capital Improvement Program 30,000 $ Technology Development 350,000 $ City Hall Expansion 2,000,000 $ Contribution Regional Animal Control Facility 30,000 $ Storage Building-City Hall Subtotal Capital Fund 2,410,000 $ Total Capital Project Funds 2,410,000 $ Capital expenditures approved in FY2005/2006 for the Enterprise Funds are: Fund/Description: Amount Enterprise Funds: Water Utility Enterprise Fund Arsenic Pilot Plant at Well TBA 10,000 $ Wellhead Protection Program 150,000 $ NE Booster 4-Way Valve Replacement 50,000 $ Surface Water Treatment Pilot Plant and Study 50,000 $ Subtotal Water Utility Fund 260,000 $ Non-Potable Water Utility Enterprise Fund Alternate Water Distribution System million transfer from Water Fund) 1,400,000 $ Subtotal Non-Water Utility Fund 1,400,000 $ Sewer Utility Enterprise Fund: East Sewer Treatment Plant Upgrade 3,350,000 $ Donner Trails Lift Station and Force Main Upgrade 150,000 $ Rolling Meadows Lift Station Generator and Automatic Transfer Switch75000 75,000 $ East WWTP Lift Station Grit Screw 150,000 $ East Sewer Plant Building 100,000 $ Subtotal Sewer Utility Enterprise Fund 3,825,000 $ Total Enterprise Funds 5,485,000 $ Total capital expenditures approved in FY2005/2006 for all funds are: Total Capital Expenditures 11,029,500 $ 34 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 General Fund Overview: The General Fund is used to account for all transactions not recorded in other funds. The primary sources of revenue for the General Fund include Property (Ad Valorem) Tax, Intergovernmental Revenues, and Licenses and Permits. The General Fund contains the following cost centers arranged according to the function indicated. The function classifications are required under Nevada statutes for budgets of local governments in Nevada. General Government: Administration Finance Judicial: Municipal Court Public Works: Public Works (Streets & Storm Drains) Note: Transferred to Special Revenue Fund in FY2003/2004 Culture and Recreation: Parks Community Development: Community Development (Building and Planning) Health: Animal Services Vector Control Services Debt Service: Debt Service-City Hall Construction Bond Other Uses: Contingency Interfund Transfers 35 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 General Fund Summary The following table summarizes the activity of the General Fund: FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Revenues: Taxes 374,654 427,738 463,300 576,132 Licenses and Permits 1,724,743 2,230,728 2,528,000 2,566,500 Intergovernmental Resources 708,336 192,492 198,500 243,300 Charges for Services 0 0 0 0 Fines and Forfeits 104,330 141,028 134,500 134,500 Miscellaneous 51,734 78,861 69,300 75,000 Total Revenues 2,963,797 3,070,847 3,393,600 3,595,432 Operating Expenditures: Administration 374,933 433,348 566,470 659,540 Administrative Services 82,257 95,558 130,700 167,700 Municipal Court 118,839 151,937 184,360 184,603 Public Works (Streets/Stormdrains) 324,346 0 0 0 Parks 212,378 324,629 437,800 536,800 Vector Control 0 0 53,670 122,800 Community Development 297,649 397,798 714,320 1,122,750 Animal Services 35,343 48,395 67,960 110,850 Debt Service 95,431 0 0 0 Total Operating Expenditures 1,541,176 1,451,665 2,155,280 2,905,043 Excess of Revenues over Operating Expenditures 1,422,621 1,619,182 1,238,320 690,389 Capital Expenditures: Administration 9,473 1,568 0 0 Administrative Services 8,402 0 0 0 Municipal Court 0 0 0 0 Animal Services 5,485 0 0 25,000 Public Works (Streets/Stormdrains) 193,509 0 0 0 Parks 17,172 41,144 23,500 33,000 Vector Control 0 0 40,000 10,000 Debt Service 0 0 0 0 Community Development 3,620 23,973 0 34,000 Total Capital Expenditures 237,661 66,685 63,500 102,000 Total Expenditures 1,778,837 1,518,350 2,218,780 3,007,043 Revenues less Total Expenditures 1,184,960 1,552,497 1,174,820 588,389 Other Financing Sources & Uses: Contingency (100-900-900) 0 0 0 105,000 Sale of Capital Assets (100-392-100) -4,277 Transfer to Streets Fund (100-900-910) 750,000 450,000 0 Transfer to Capital Fund (100-900-910) 800,000 776,830 1,140,000 400,000 Transfer to Grants Fund (100-900-910) 150,000 250,000 100,000 0 Total Other Financing Uses 950,000 1,772,553 1,690,000 505,000 Total Expenditures and Other Uses 2,728,837 3,290,903 3,908,780 3,512,043 Net Increase (Decrease) in fund Balance 234,960 -220,056 -515,180 83,389 Fund Balance July 1 777,416 1,012,376 792,320 277,140 Fund Balance June 30 1,012,376 792,320 277,140 360,529 36 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The following table summarizes General Fund Expenditures by Object: FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Salaries and Wages 652,814 670,804 983,170 1,356,143 Payroll Taxes and Benefits 222,901 254,990 500,430 672,200 Service and Supplies 570,030 525,871 671,680 876,700 Capital Expenditures 237,661 66,685 63,500 102,000 Debt Service 95,431 0 0 0 Contingency and Transfers 950,000 1,772,553 1,690,000 505,000 Total 2,728,837 3,290,903 3,908,780 3,512,043 The following table summarizes General Fund Expenditures by Function FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Administration 384,406 434,916 566,470 659,540 Administrative Services 90,659 95,558 130,700 167,700 Municipal Court 118,839 151,937 184,360 184,603 Public Works (Streets/Stormdrains) 517,855 0 0 0 Parks 229,550 365,773 461,300 569,800 Vector Control 0 0 93,670 132,800 Community Development 301,269 421,771 714,320 1,156,750 Animal Services 40,828 48,395 67,960 135,850 Debt Service 95,431 0 0 0 Contingency and Transfers 950,000 1,772,553 1,690,000 505,000 Total 2,728,837 3,290,903 3,908,780 3,512,043 37 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The following chart shows FY2005/2006 General Fund Revenues by Type FY2005/2006 General Fund Revenues Licenses and Permits, $2,566,500 , 71% Taxes, $576,132 , 16% Fines and Forfeitures, $134,500 , 4% Miscellaneous, $75,000 , 2% Intergovernmental, $243,300 , 7% The following chart shows FY2005/2006 General Fund Expenditures By Object FY2005/2006 General Fund Expenditures By Object Capital Expenditures, $102,000 , 3% Contingency & Transfers, $505,000 , 14% Service & Supply, $876,700 , 25% Employee Benefits, $672,200 , 19% Salaries & Wages, $1,356,143 , 39% 38 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The following chart shows FY2005/2006 General Fund Expenditures By Function FY2005/2006 General Fund Expenditures By Function Contingency & Transfers, $505,000 , 14% Animal Services, $135,850 , 4% Community Development, $1,156,750 , 33% Parks, $569,800 , 16% Municipal Court, $184,603 , 5% Adm Serv , $167,700 , 5% Administration, $659,540 , 19% Vector Control, $132,800 , 4% 39 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The detail for General Fund Revenues is shown in the following table: Account Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget TAXES: 100-310-100 Property Taxes 367,860 420,189 463,300 576,132 100-310-200 Property Taxes - Delinquent 6,794 7,549 0 Total Taxes 374,654 427,738 463,300 576,132 LICENSES AND PERMITS: 100-320-100 Business License Fees 93,816 79,480 95,000 100,000 100-320-110 Bus Lic/Franchise Public Utilities 628,305 632,996 673,500 675,000 100-320-120 Realtor License Fees 20 100-320-150 Liquor License Fees 19,331 19,034 23,000 25,000 100-320-160 Gaming License Fees 63,795 75,015 65,000 65,000 100-320-170 Animal License Fees 1,220 1,766 1,500 1,500 100-320-190 Other License Fees 30 100-320-200 Building Permits and Fees 859,311 1,338,991 1,600,000 1,600,000 100-320-205 Fire Life Safety Contract 11,343 0 0 100-320-210 Planning and Zoning Permits and Fees 37,728 83,446 70,000 100,000 100-320-220 Public Works Fees 9,844 * Total Licenses and Permits 1,724,743 2,230,728 2,528,000 2,566,500 INTERGOVERNMENTAL RESOURCES: 100-330-300 County Road Fund Property Tax 194,964 * * * 100-330-310 CTX (Consolidated Tax) 120,652 137,610 143,700 188,500 100-330-325 MVFT (Gas Tax) 185,205 * * * 100-330-325 RTC (Regional Transportation Comm.) 152,633 * * * 100-330-400 Park Agreement 54,882 54,882 54,800 54,800 State Grants Total Intergovernmental Resources 708,336 192,492 198,500 243,300 CHARGES FOR SERVICES: Total Charges for Services 0 0 FINES AND FORFEITS: 100-350-100 Municipal Court Revenue 93,078 121,437 120,000 120,000 100-350-110 Town Code Violations (Justice Court) 3,412 1,740 1,000 1,000 100-350-200 Warrant Fees 3,088 9,207 6,000 6,000 100-350-205 Misc Fees 2,272 6,004 5,000 5,000 100-350-210 Bond Fees 2,480 2,640 2,500 2,500 Total Fines and Forfeits 104,330 141,028 134,500 134,500 MISCELLANEOUS: 100-360-100 Interest Income 10,526 7,220 18,000 25,000 100-360-200 Building Rental 20,000 20,000 20,000 20,000 100-360-710 Park Development 12,300 16,950 15,000 10,000 100-360-720 Donations-Animal Control 25 0 100-360-730 Donations-Waste Removal Project 2,700 100-360-810 Downtown Rehab Project 770 0 100-360-822 Developer Agreements 23,310 7,300 10,000 100-360-900 Miscellaneous 5,413 11,381 9,000 10,000 Total Miscellaneous 51,734 78,861 69,300 75,000 TOTAL REVENUES 2,963,797 3,070,847 3,393,600 3,595,432 Analysis: In FY 2005-2006 the property tax increased due to the assessed value increase of 24.6%. The largest component of general fund revenues is Building Permits and Fees at approximately 43% to 47% of total general fund revenues each fiscal year. Revenues from Building Permits and Fees have increased substantially since the City incorporated and demonstrate the growth in Fernley, primarily in residential development. This 40 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 revenue source is volatile and will likely decrease in future years as growth slows and projects are built out. In FY06, the other major components of General Fund revenues are property taxes, consolidated tax, and a combination of business license and franchise fees, especially from public utilities operating within the City. Increases in assessed value have provided additional revenue each year to fund ongoing services; however, as the City provides new services such as Animal Control and Vector Control, the property tax rate should increase to provide a source of funding. Increases in consolidated tax are based on a statutory allocation formula based on growth factors so this revenue source will likely increase in future years as growth continues. However, if the City assumes responsibility for some services currently provided by Lyon County (such as law enforcement), then the City would request the Nevada Department of Taxation to re-allocate the Consolidated Tax revenue. Revenues from business licenses and franchise fees will also likely increase in future years as growth continues and the City may increase these rates, especially for public utilities, in future years to provide additional revenues. 41 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Program Descriptions The City of Fernley uses cost centers (departments) to account for the costs of each program in the General Fund. This allows the City to determine the direct cost to provide a particular service or program. Indirect costs, such as administration, finance, insurance, facilities and general government, are allocated at the fund level rather than the program level. The General Fund contains the following cost centers: Category Cost Center Number General Government Administration 411 General Government Administrative Services 415 Judicial Municipal Court 425 Public Works Public Works (Streets and Storm Drains) 475 Culture and Recreation Parks 575 Community Development Community Dev. (Building & Planning) 600 Health Animal Services 525 Health Vector Control 528 Debt Service Debt Service 625 Other Uses Contingency 900 The North Lyon County Fire Protection District, a separate legal and accounting entity, provides fire services within the boundaries of the City of Fernley. The Fernley Swimming Pool District, a separate legal and accounting entity, owns and operates the Fernley Swimming Pool. Lyon County provides certain services within the boundaries of the City of Fernley, such as law enforcement, library, senior center, juvenile probation, district court, justice court, welfare (indigent) programs, and operation of a regional youth facility. 42 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Administration Organizational Chart: Voters of Fernley Mayor/City Council City Manager City Attorney City Clerk’s Office Deputy City Clerk Office Assistant (1.1 FTE) Senior Office Asst Administration FY2005/2006 Expenditures Capital Service and Supplies $300,100 45.50% Salaries and Wages $251,240 38.09% Payroll Taxes and Benefits $108,200 16.41% Description: The Administration cost center includes cost for the activities of the Mayor, City Council, City Manager, City Attorney, City Clerk, maintenance of City Hall, general liability insurance, community support, and other general expenses. 43 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The City of Fernley operates under a Council/Manager form of government, which combines the strong political leadership of the elected Mayor and City Council with the strong professional experience of an appointed manager. The general powers of the City Council are described in NRS 266.390 and NRS 266.260 through 266.368. The primary duties of the City Council are to: 1. Acquire, improve, equip, operate and maintain public works 2. Control and maintain buildings and real property for City use 3. Regulate traffic and parking 4. Provide utilities 5. Grant franchises 6. Create and enforce ordinances 7. Control animals and collect associated fees 8. Provide for safeguarding of public health within the City 9. Provide for the abatement, prevention and removal of nuisances 10. License and regulate professions, trades, and businesses 11. Create any office that may be deemed necessary for the good government of the city 12. Provide for filling all vacancies in elective and appointive offices 13. Regulate and prescribe the powers, duties and compensation of all officers of the city, except as otherwise provided by law 14. Require all officers or employees of the city responsible for the handling of city funds to give bond and security for the faithful performance of their duties 15. Require from every officer of the city at any time a report in detail of all transactions in his office, or any matters connected therewith The mayor is considered the Chief Executive Officer of the City (NRS 266.165) and is responsible for the general affairs of the City through performing the following general duties: 1. Give the City Council information relative to the state of the City 2. Recommend to the City Council measures that may be beneficial to the City 3. See that general laws and ordinances of the City are observed and enforced 4. Take proper measures to preserve the public peace 5. Oversee contract administration 6. Perform other duties prescribed by ordinance 7. Preside over the City Council when in session 8. Vote in the case of a tie of the City Council 9. Veto 10. Sign resolutions, ordinances, licenses, warrants, and claims against the City The City Manager is the Chief Administrative Officer of the City. The duties of the City Manager are contained in Fernley City Ordinance 2001-0001. The primary duties of the City Manager include: 1. Direct and supervise the administration of all departments, offices, and agencies of the City 2. Administer the affairs of the City 44 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 3. Assist the Mayor in accomplishing the Mayor’s statutory duties 4. Appoint and remove non-elected officers and employees 5. Prepare the City’s budget annually 6. Keep the Council advised on financial matters and make recommendations 7. Recommend a schedule of pay for each office and position in the City 8. Recommend adoption of policies and procedures 9. Maintain the structure of the organization, subject to City Council approval 10. Attend meetings of the City Council 11. Supervise purchase of items, let contracts under $10,000, bid items over $10,000 12. Investigate the affairs of the City or any department 13. Perform other duties as may be required by the Council The primary responsibilities of the City Clerk are to administer and safeguard the integrity of the municipal governing process including the administration of an open and fair election process. Pursuant to NRS 266.480, the city clerk shall keep their office at the place of meeting of the city council, or some other place convenient thereto, as the council may direct, keep the corporate seal and all papers and records of the city, keep a record of the proceedings of the city council, whose meetings they shall attend, countersign all contracts made in behalf of the city, and every such contract or contracts to which the city is a party shall be void unless signed by the city clerk, and cause to be published quarterly in some newspaper published in the city a statement of the finances of the city, showing receipts and disbursements, and bills allowed and paid with the signature of the mayor attested by the city clerk. The City Clerk is also responsible for overseeing city elections pursuant to NRS 293C to NRS 306. Additional responsibilities include processing City Council agendas and minutes, providing notification of meeting decisions to interested parties, processing passport applications, maintaining the calendar for use of City Hall meeting rooms, distributing mail, preparing the Clerk’s budget, processing the Franchise Business License fees, administering the Business and Liquor license programs and providing clerical support to the Mayor, City Council, and City Manager, as needed. The City Clerk is also responsible for the timely and accurate accumulation, organization, dissemination, and archival of information from City Council, staff, and citizens for decision-making consistent with public law and community values. Pursuant to NRS 266.470, the city attorney shall be the legal adviser of the council and all officers of the city in all matters respecting the affairs of the city and shall perform such duties as may be required by the council or prescribed by ordinance. Significant Expenditures and Staffing Changes: A new Senior Office Assistant position was added to directly assist the City Manager. One part time Office Assistant in the Clerk’s Office was upgraded to a regular full time position and the hours increased from 19 hours per week to 25 hours per week. Professional services were increased to provide for an outside chief negotiator for labor contracts and to provide consultation on records retention. 45 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Staffing Levels and Cost Allocation: The Administration cost center includes the following personnel allocated at the noted percentages: Position FTE % Allocated FTE Mayor 1.00 90% .90 City Council 5.00 90% 4.50 City Manager 1.00 90% .90 Senior Office Assistant 1.00 90% .90 City Clerk 1.00 90% .90 Deputy City Clerk 1.00 90% .90 Office Assistant II (2 positions) 1.10 90% .99 Driver/Clerk 1.00 10% .10 12.10 10.09 Goals and Objectives: Clerk’s Goal: To conduct city business in compliance with NRS and the Open Meeting Law. Objective To process City Council agendas in a timely and effective manner. Task #1 Gather agenda items from Mayor, Council, Staff, and the public Task Post agendas 3 days prior to the day of the meeting, excluding weekends and holidays. Task Mail, fax, or email a copy of the agenda to all persons requesting a copy and to anyone who has an item on the agenda. Task Ensure a Recording Secretary is present at the meeting and that minutes are approved within 30 days of each meeting. Task Enter agenda items into database for easy access. File agenda, agenda reports, and audiocassette tapes and electronic media in an easily retrievable fashion. Clerk’s Goal: To provide a basis to regulate entities which do business in Fernley, collect fees sufficient to cover the cost of any impact of such business upon Fernley, and collect additional revenue for the operations of Fernley Government Objective To assist applicants in obtaining the proper business or liquor licenses, processing franchise fees, and to ensure compliance of all businesses with the City’s business license ordinances, State and Federal regulations. Task Review application for applicable inspector’s signatures, completion of all applicable forms, and payment of fees and penalties Task Agendize each application for City Council approval Task Complete background investigation for liquor license applicants Task Mail the approved license to the applicant in a timely fashion Task Notify all businesses of annual renewal requirements and/or payment delinquency Tsk Provide information on businesses as requested by the public and other State and local agencies. 46 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Task Maintain database with business information including payment records Task Provide funds to the Administrative Services Department for deposit Task Investigate reports of businesses being conducted without a valid business license Task #10: Enforce regulations and assist businesses, which are operating without a license or with a delinquent license, to become compliant Task #11: Review and revise Title 5 regarding issuance of business licenses Clerk’s Goal: To conduct City elections pursuant to NRS 293C, including redistricting when necessary Objective To proactively train and prepare for future elections, including completing an agreement with Lyon County Clerk/Treasurer to conduct municipal elections in even number years. Task Obtain training and assistance, as needed, to plan for efficient election Task Arrange for adequate funding needed to prepare plan and implement plan Task Review and modify Ward boundaries Task Establish an inter-local agreement with Lyon County to combine resources and provide assistance with elections Task Ensure candidates meet legal requirements for filing declaration of candidacy and assist them in mandatory filing requirements Task Fulfill publication requirements for notice of city election in a timely fashion Task Recruit and appoint the necessary election officers and election boards, including: poll workers, absent ballot board and counting board Task Review and choose voting format such as touch screen machines or paper ballot and make arrangements for the necessary equipment Task Design sample, absent, and general ballots in compliance with grouping order for type of office, content, mailing, and notice of location requirements Task #10: Establish procedures and location for security of ballots Task #11: Arrange for absentee and early voting, including extended hours the Clerk’s office is open to the public Task #12: Work with Lyon County to obtain the necessary pollbooks and equipment Task #13: Prepare polling location materials supplies, and arrange for secure location until distributed. Task #14: Ensure compliance with accessibility to polling place for elderly and disabled voters Task #15: Establish procedures for replacement of spoiled ballots. Task #16: Establish procedures for accounting of used and unused ballots and for rejecting ballots Task #17: Establish standard for counting votes 47 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Task #18: Post copies of voting results in a timely fashion, including submitting information to the Secretary of State’s election web site Task #19: Ensure canvass and abstract of votes is completed in a timely fashion Task #20: Ensure proper reports are submitted to the Commission on Ethics and Secretary of State in a timely manner Clerk’s Goal: To process ordinances and resolutions Objective To process ordinances and resolutions in compliance with NRS 266.115 Task Place ordinances and resolutions on City Council agendas for approval Task Publish notification of proposal and adoption of ordinances and resolutions Task Ensure that the ordinances are completed within the timeframe required by NRS 266.155 Task Ensure the Mayor and City Clerk sign the originals and distribute copies as necessary Task Accept all ordinances and resolutions in electronic format for codification with City Code Clerk’s Goal: To process passport applications, including passport photo service if requested. Objective To process complete passport applications and/or photos in compliance with U. S. Department of State regulations. Task Provide appropriate application to applicant Task Review application for correct information, verifying proof of citizenship and current photo identification Task If requested, provide two 2” X 2” photographs Task Process payments to City of Fernley and US Department of State Task Complete transmittal form and send applications, photos, and payments to US Department of State Clerk’s Goal: To countersign contracts, keep the corporate seal and records of the City Objective To establish and maintain a comprehensive electronic imaging, records and information management program Task Pursuant to NRS 266.480(4), countersign all contracts made in behalf of the City Task Establish document categories and classes, including documents deemed “sensitive” Task Initiate a records retention program based on department policies and schedules Task Establish electronic imaging and document tracking process Task Establish migration process from active records to storage Task Establish records destruction procedure Task Establish training program Task Establish monitoring to measure program compliance 48 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Task Establish program enforcement Task #10: Implement plans Mayor/City Council Goal: To effectively and efficiently govern the City of Fernley Objective To consider and act upon Council agenda items at regular meetings and request of staff any adjustments in regulations or policies to address issues confronting the City. Mayor/City Council Goal: To effectively and efficiently prioritize projects and to allocate resources accordingly. Objective To annually review goals, objectives, and projects and provide appropriate feedback to staff during the budget process. Mayor/City Council Goal: To provide vision and leadership Objective To annually, and as needed, review goals, objectives, and priorities and provide for appropriate feedback to staff. Mayor/City Council Goal: To develop policies and procedures to efficiently direct City operations and maximize the creativity and performance of City employees. Objective To annually, and as needed, review with the City Manager desired changes in the organization Mayor/City Council Goal: To develop effective intergovernmental relations to improve services to the public. Objective To meet with Lyon County regarding continued law enforcement, road tax, and animal control issues. Objective To attend various meetings of the Nevada League of Cities, POOL/PACT, and legislative meetings to keep abreast of current trends and issues. City Manager Goal: To effectively manage and administer the day-to-day operations of the City according to the policy and direction of the Mayor and City Council within the limitations of appropriated resources: Objective To effectively delegate appropriate responsibility and authority to qualified department heads according to the direction of the Mayor and City Council. Objective To keep the Mayor and City Council members informed regarding day-to-day operations and issues. City Manager Goal: To efficiently plan and complete quality capital projects, within available resources and as directed by the Mayor and City Council. Objective To provide input into the prioritization process for the Capital Improvement Program. Objective To effectively select quality consultants to provide specialized services toward completion of projects within available resources. City Manager Goal: To provide advice to the Mayor and City Council. 49 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Objective To keep current on trends and issues at both the state and federal level. Objective To coordinate efforts for intergovernmental relations. 50 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The line item budget for the Administration cost center follows: Account # Descripton FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget 100-411-100 Salaries and Wages 160,767 182,644 197,470 212,000 100-411-130 Overtime 479 1,000 1,200 100-411-140 Annual Leave Pay 779 626 8,000 17,240 100-411-150 Sick Leave Pay 483 564 1,500 11,600 100-411-160 Holiday Pay 709 783 2,000 9,200 Contract Salaries 0 Subtotal Salaries & Wages 163,217 184,617 209,970 251,240 100-411-200 FICA 1,724 1,942 1,500 100-411-210 Medicare 2,345 2,637 3,000 3,600 100-411-220 Unemployment -30 481 2,100 2,500 100-411-230 Retirement (PERS) 25,336 29,083 37,500 49,400 100-411-240 Group Insurance 16,466 23,733 35,800 44,000 100-411-250 Workers Compensation Insurance 5,037 4,130 10,500 7,500 100-411-260 Other Benefits 562 1,123 1,000 1,200 Subtotal Employee Benefits 51,440 63,129 91,400 108,200 Total Salaries & Benefits 214,657 247,746 301,370 359,440 100-411-300 Professional Services-City Attorney 46,200 53,995 55,200 55,200 100-411-310 Professional Services-Legal 3,373 1,425 10,000 10,000 100-411-322 Professional Services-Other 7,997 19,683 33,000 60,000 100-411-342 Tech Services-Other 677 1,000 1,000 100-411-344 Tech Services-Elections 9,895 0 5,000 5,000 100-411-348 Commission on Ethics Assessment 1,132 1,200 1,200 100-411-410 Utility Service-Water & Sewer 292 2,229 3,000 3,000 100-411-412 Utility Service-Refuse 876 888 1,500 1,500 100-411-430 Service-Building Maintenance 4,370 4,064 3,000 3,000 100-411-441 Rental 1,964 1,503 3,000 3,000 100-411-520 Insurance 20,248 23,745 31,000 25,000 100-411-530 Communications 5,260 4,400 6,000 6,000 100-411-540 Advertising 464 650 3,000 3,000 100-411-550 Printing and Postage 2,000 2,231 2,000 2,000 100-411-580 Travel & Training 6,686 13,925 20,000 25,000 100-411-581 Dues & Subscriptions-NLCM 3,232 4,468 7,000 7,000 100-411-585 Educational Assistance Program 0 0 1,000 1,000 100-411-600 General Supplies 6,041 5,718 11,000 12,000 100-411-603 Hazardous Waste Program 2,737 100-411-605 Minor Equipment 1,517 6,720 5,000 10,000 100-411-612 Bldg Maint-Supplies 3,562 8,292 9,000 9,000 100-411-621 Natural Gas 1,687 1,542 2,000 2,000 100-411-622 Electricity 10,842 11,840 12,000 15,000 100-411-640 Books and Periodicals 66 145 200 200 100-411-650 Community Support 20,647 16,330 40,000 40,000 Total Service & Supplies 160,276 185,602 265,100 300,100 Total Operating Expenses 374,933 433,348 566,470 659,540 100-411-730 Improvements Other Than Buildings 9,473 100-411-741 Machinery 0 1,568 100-411-743 Furniture and Fixtures 0 Total Capital 9,473 1,568 0 0 Total Operating and Capital 384,406 434,916 566,470 659,540 51 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Analysis: In FY05/06, Salaries and Wages increased approximately 7%due to an additional position of Senior Office Assistant in the Office of the City Manager and additional hours for personnel in the City Clerk’s Office. Annual increases for existing personnel are factored into the budget, however, no Cost of Living increase (COLA) is factored into the budget. Employee Benefits increased primarily due to assumptions regarding full Group Insurance Coverage at maximum rates for each employee, even though some existing employees opted out of coverage and due to a new position eligible for PERS. The City’s Group Insurance premiums decreased approximately 18% in FY05 and are assumed to remain the same during FY06. In FY 05/06, the Professional Services-Other line item was increased to hire a consultant to conduct labor negotiations and for the City Clerk to hire a consultant to plan for records retention. The Travel and Training line item was increased for anticipated conferences for City Council members, the City Manager, and the City Clerk. The Minor Equipment line item was increased for computer replacements, software, and furniture. These items will be less than $5,000 each; therefore, they do not meet the capitalization criteria to be included in the capital section. The Community Support Line item was increased to fund community programs such as fireworks for the 4th of July celebration ($12,500), contributions to the Lyon Council on Alcohol and Drugs ($3,000), Western Nevada Development District ($7,500), Northern Nevada Development Authority ($5,000)Youth Awards Program, and other programs. 52 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Administrative Services Department Organizational Chart: Voters of Fernley Mayor/City Council City Manager Adm Srv Dir (City Treasurer) Asst City Treasurer Business Off. Administrator Senior Office Assistant Office Asst II Office Assistant (PT) Animal Control Officer Animal Control Off. (PT) Admin Serv (Finance) FY2005/2006 Expenditures Salaries and Wages, $86,200 , 51% Payroll Taxes and Benefits, $43,300 , 26% Service and Supplies, $38,200 , 23% Capital, , 0% Description: The Administrative Services Department provides financial management, internal control, and guidance to the City Manager, Mayor, and City Council. The Administrative Services Department is responsible for utility billing, payroll, accounts payable, purchasing, fund accounting (general ledger), administrative functions of the municipal court, fixed assets, employee benefit administration, capital asset accounting, investment of central treasury, internal financial reporting, certain aspects of risk management and human resource management, internal audit, coordination of the annual examination of the financial statements by independent accountants, compliance with accounting standards, and special projects as assigned by the City Manager. Because the Administrative Services Department performs services for enterprise funds and performs the administrative function of the municipal court, the costs of the department are allocated between cost centers the General Fund and the enterprise funds. 53 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The priorities of the Administrative Services Department for the upcoming year are: 1. Streamline the steps needed for audit of the financial statement prepared under GASB #34, a new accounting standard that requires additional record keeping 2. Coordinate planning and implementation of appropriate technology, including coordination of the Technology Committee, administration of contracts, presentations to the City Council for approval of projects, and implementation of approved projects 3. Streamline processes in human resource management and payroll 4. Coordinate water and sewer rate analysis and implementation of appropriate rate increases 5. Provide quality internal and external customer service through appropriate training and policy/procedure development 6. Submit the completed budget for consideration under the Government Finance Officers Association Distinguished Budget Presentation Awards Program and plan for future submission of a Comprehensive Annual Financial Report and other “popular” reporting programs 7. Provide quality financial information and support to the City Manager, Mayor, City Council, other City departments for continued improvement of the public perception of the City government 8. Begin research and planning for future implementation of a more formal performance measurement program Legal Requirements: The Office of the City Treasurer was established under City of Fernley Ordinance #2001- 0005. Appointment of a City Treasurer is required pursuant to NRS 266.405. The City Treasurer reports to and is under the supervision of the City Manager. The statutory duties and responsibilities of the City Treasurer are described in NRS 266.500 through 266.525. The City Council may prescribe the specific duties and responsibilities of the City Treasurer through ordinances. The job description for the City Treasurer (Administrative Services Director), duly adopted by the City Council, indicates that the City Treasurer serves as the chief financial officer and budget officer for the City, oversees payroll and data processing functions of the City, manages the operation of the Administrative Services Department, and provides related assistance to the City Manager. Significant Expenditures and Staffing Changes: A new position of Deputy City Treasurer was added to provide assistance in providing increasing services. The volume of transactions handled by the Administrative Services Department has increased tremendously over the last three fiscal years. As a result, certain functions such as general ledger reconciliations, capital asset tracking and depreciations, miscellaneous accounts receivable journal, internal audit functions, and special projects have not been completed. The new position will be assigned primary responsibilities for these functions. Also see the Animal Control cost center for additional staffing information. 54 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Staffing Levels and Cost Allocation: The Administrative Services cost center includes the following personnel allocated at the noted percentages: Position FTE % Allocated FTE Adm Services Dir (City Treasurer) 1.00 30% .30 Deputy City Treasurer 1.00 34% .34 Business Office Administrator 1.00 30% .30 Senior Office Assistant 1.00 34% .34 Senior Office Assistant 1.00 20% .20 Senior Office Assistant 1.00 30% .30 Office Assistant II 1.00 8% .08 Office Assistant II 1.00 5% .05 Office Assistant II 1.00 8% .08 TOTALS 7.00 1.99 Goals and Objectives: Goal: To efficiently provide timely internal financial services in a cost effective manner within resource constraints. Objective To effectively implement and use applicable technology to maximize productivity. Task To maintain integrated financial software. Task To expand and upgrade computer hardware and networks, as needed, to implement further integrated financial software. Task To develop the knowledge, skills, and abilities of Department personnel, as needed, to effectively and efficiently use software to increase productivity. Task To delegate responsibilities to the Assistant City Treasurer to assure that tasks are completed. Objective To develop and implement internal policies and procedures for efficient processing of financial data. Task To design and implement new procedures for purchasing and cash disbursements to improve internal controls and accountability Task To train staff on policies and procedures Task To delegate responsibilities to the Assistant City Treasurer to monitor programs Objective To improve administration of payroll and benefits. Task To develop an Employee Benefits Orientation program and coordinate with the City Manager’s Office on Human Resource issues. Task To develop and implement procedures for maintenance of personnel records, including computerized information. Objective To implement procedures for general ledger “closing” and issuance of internal financial statement Task To develop checklists and assign personnel to reconciliation of certain general ledger accounts to subsidiary ledgers 55 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Task To develop a review procedure for the City Treasurer or Assistant City Treasurer to sign off on the processes Task To develop an internal audit function to periodically review actual practices against internal control procedures Goal: To efficiently coordinate the annual examination of the financial statements by independent accounts Objective To provide information needed for audit of financial statements under GASB #34 and other pronouncements Task Develop record-keeping systems to gather the information necessary to implement the new accounting standards Task Keep current on standards Task Prepare checklist and take decisions regarding implementation of accounting standards to the person or body with proper authority to make the decision Objective To prepare workpapers and other information needed to streamline the audit process Task Coordinate with independent accountants in planning of the audit Task Prepare certain workpapers Task Train personnel in the practices to facilitate the audit at year-end Goal: To streamline the budget process and create a user friendly budget document Objective To obtain information from department heads, City Council, and other parties to ascertain citywide visions and goals Task Develop budget instructions and forms Task Assist departments in format of budget submissions Task Coordinate with City Manager on budget workshops to obtain the vision and direction of the City Council and incorporate in final budget documents Objective To prepare the budget document according to the format recommended by GFOA Task Research GFOA criteria Task Organize the budget document according to the criteria Task Complete the outlined document using information gathered Goal: To develop the process for analysis of water and sewer rates to initially set the rate structure and to annually update the rate analysis and set rates accordingly Objective To prepare analysis Objective To prepare for public meetings with City Council on analysis Objective To implement the new rates and rate structure Goal: To participate in organizations and attend conferences to improve the leadership and technical capacity of the Administrative Services Department, including staff Objective To attend conferences to keep current Objective To develop targeted training for staff to improve productivity through development of skill levels. 56 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The line item budget for the Administrative Services Department follows: Account # Descripton FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget 100-415-100 Salaries and Wages 40,274 42,189 46,200 69,400 100-415-130 Overtime 311 542 2,000 2,000 100-415-140 Annual Leave Pay 2,064 3,127 3,500 6,000 100-415-150 Sick Leave Pay 394 749 1,500 4,800 100-415-160 Holiday Pay 1,267 1,325 4,000 4,000 Subtotal Salaries & Wages 44,310 47,932 57,200 86,200 100-415-200 FICA 0 100-415-210 Medicare 605 649 800 1,200 100-415-220 Unemployment 204 175 600 900 100-415-230 Retirement (PERS) 8,043 9,382 11,600 16,600 100-415-240 Group Insurance 7,405 10,239 13,800 21,900 100-415-250 Workers Compensation Insurance 334 1,207 2,900 2,600 100-415-260 Other Benefits 26 78 100 100 Subtotal Employee Benefits 16,617 21,730 29,800 43,300 Total Salaries & Benefits 60,927 69,662 87,000 129,500 100-415-322 Professional Services-Other 1,451 30 10,000 1,500 100-415-328 Professional Services-Auditing 8,709 5,667 10,000 13,000 100-415-342 Tech. Services-Other 1,462 10,371 3,000 3,000 100-415-530 Communications 673 962 1,200 1,200 100-415-540 Advertising 1,565 1,694 2,500 2,500 100-415-550 Printing and Postage 990 756 1,500 1,500 100-415-580 Travel & Training 1,537 1,479 3,000 3,000 100-415-581 Dues & Memberships 135 509 1,000 1,000 100-415-585 Educational Assistance Program 0 0 1,000 1,000 100-415-600 General Supplies 3,588 2,227 4,000 4,000 100-415-605 Minor Equipment 1,220 2,201 6,000 6,000 100-415-640 Books & Periodicals 0 500 500 Total Service & Supplies 21,330 25,896 43,700 38,200 Total Operating Expenses 82,257 95,558 130,700 167,700 100-415-730 Improvements Other Than 100-415-741 Machinery 6,615 100-415-743 Furniture and Fixtures 1,787 Total Capital 8,402 0 0 0 Total Operating and Capital 90,659 95,558 130,700 167,700 Analysis: In FY05/06, Salaries and Wages increased due a new position of Deputy City Treasurer. The calculations include projected step increases for existing personnel. No annual salary adjustment increases for existing personnel are included, pending labor negotiations. Professional Services decreased for non-recurring special projects in the prior fiscal year such as required physical inventories of capital assets, small technology projects, and specialized projects such as implementation of GASB #34. No major capital items are anticipated, other than the technology improvements identified in the Capital fund. 57 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Municipal Court Organizational Chart: Voters of Fernley Mayor/City Council Muni Court Judge City Manager City Attorney Adm Serv Dir Public Defender Contract Prosecutor Contract Bus. Office Admin. Senior Office Assistant Senior Office Assistant Office Assistant II Office Assistant II Office Assistant I Municipal Court FY2005/2006 Expenditures Salaries and Wages, $75,603 , 41% Payroll Taxes and Benefits, $32,000 , 17% Service and Supplies, $77,000 , 42% Capital, , 0% Description: The Fernley Municipal Court is a limited jurisdiction court that hears misdemeanor cases. Maximum sentences are $1,000 or six months in jail or both. Growth: The Municipal Court began operations on October 1, 2001 as a joint operation with the Canal Township Justice Court. The City began separate operations on October 1, 2002. In the last two fiscal years, there has been an increase of approximately 12% per year in the operations of the Court. 58 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Following is a summary of the charges filed in Municipal Court for the periods indicated: Drug DUI Domestic Violence Traffic Non- Traffic Other Total 7/1/02 to 6/30/03 55 82 37 1979 160 5 2318 7/1/03 to 6/30/04 33 71 48 2132 309 0 2593 % change (40%) (13.4%) 29.7% 7.7% 93.1% N/M 11.9% 7/1/04 to 6/30/05 (est.) 34 75 65 2410 314 1 2899 % change 3.03% 5.6% 35.4% 13.0% 1.6% N/M 11.8% Legal Requirements: NRS 266.550 through 266.595 describes the jurisdiction and operation of municipal courts. The municipal court has similar powers and jurisdiction in the city that are provided by law for justices’ courts, subject to the overall limited jurisdiction of misdemeanor criminal offenses. The powers of the municipal court include the power to charge and collect those fees authorized pursuant to NRS 5.073. Significant Expenditures and Staffing Changes: The number of FTE assigned to Municipal Court duties is the same as the prior fiscal year at 1.99 FTE Staffing Levels and Cost Allocation: The Prosecutor and Public Defender services are provided through contracts and therefore, no City employees are involved in these functions. The Municipal Court cost center includes the following personnel allocated at the noted percentages: Position FTE % Allocated FTE Municipal Court Judge .40 100% .40 Administrative Services Director 1.00 10% .10 Business Office Administrator 1.00 10% .10 Senior Office Assistant 1.00 40% .40 Senior Office Assistant 1.00 10% .10 Office Assistant II 1.00 2% .02 Office Assistant II 1.00 85% .85 Office Assistant I (II) 1.00 2% .02 TOTAL 7.40 1.99 59 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Goals and Objectives: Goal: To provide efficient and fair disposition of traffic and non-traffic misdemeanors that involve violation of city ordinances. Goal: To establish policies and procedures for efficient and timely administration of court processes. The line item budget for the Municipal Court follows: Account # Descripton FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget 100-425-100 Regular Pay 34,778 58,484 63,500 61,603 100-425-130 Overtime Pay 2,479 97 1,000 1,000 100-425-140 Annual Leave Pay 1,189 1,864 3,500 5,300 100-425-150 Sick Leave Pay 292 2,293 1,000 4,300 100-425-160 Holiday Pay 901 1,615 3,000 3,400 Subtotal Salaries & Wages 39,639 64,353 72,000 75,603 100-425-200 FICA 590 1,468 1,500 1,500 100-425-210 Medicare 571 1,013 1,000 1,100 100-425-220 Unemployment 150 240 700 800 100-425-230 Retirement (PERS) 4,725 7,833 9,500 2,800 100-425-240 Group Insurance 579 3,794 17,500 21,900 100-425-250 Workers Comp-Other 1,227 2,161 3,600 2,300 100-425-260 Other Benefits 1,014 1,339 1,560 1,600 Subtotal Employee Benefits 8,856 17,848 35,360 32,000 Total Salaries & Benefits 48,495 82,201 107,360 107,603 100-425-312 Professional Service-Prosecutor 30,000 36,000 36,000 36,000 100-425-314 Professional Service-Pub. Def. 24,434 23,644 24,500 24,500 100-425-322 Professional Service-Other 4,859 3,109 2,500 2,500 100-425-342 Tech Services-Other 636 1,375 1,500 1,500 100-425-530 Communications 817 1,305 1,000 1,000 100-425-540 Advertising 1,091 0 500 500 100-425-550 Printing and Postage 296 971 1,000 1,000 100-425-580 Travel & Training 2,759 789 3,000 3,000 100-425-581 Dues and Memberships 150 255 500 500 100-425-585 Educational Assistance Program 0 1,000 1,000 100-425-600 General Supplies 4,368 2,157 4,000 4,000 100-425-605 Minor Equipment 609 131 1,000 1,000 100-425-640 Books & Periodicals 325 0 500 500 Interlocal Agreement Total Service & Supplies 70,344 69,736 77,000 77,000 Total Operating Expenses 118,839 151,937 184,360 184,603 100-425-730 Improvements Other Than 100-425-741 Machinery 100-425-743 Furniture & Fixtures Total Capital 0 0 0 0 Total Operating and Capital 118,839 151,937 184,360 184,603 Analysis: There are not significant increases or decreases in the budget for the municipal court function. Increases in prior years were due to the increased volume of activity. 60 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Public Works (Streets and Storm Drains) See the Special Revenue Fund Section – Streets for information regarding the Public Works Department, including Streets. This cost center was moved to a Special Revenue Fund in FY2003/2004. The line item budget for the Public Works Department (Streets and Storm Drains) cost center follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget 100-475-100 Regular Pay 73,438 * * * 100-475-120 Standby Pay 781 * * * 100-475-130 Overtime 6,157 * * * 100-475-140 Annual Leave Pay 4,020 * * * 100-475-150 Sick Leave Pay 5,310 * * * 100-475-160 Holiday Pay 2,742 * * * Subtotal Salaries and Wages 92,448 0 0 0 100-475-200 FICA 0 * * * 100-475-210 Medicare 584 * * * 100-475-220 Unemployment 436 * * * 100-475-230 Retirement (PERS) 16,302 * * * 100-475-240 Group Insurance 17,514 * * * 100-475-250 Workers' Compensation Ins. 4,164 * * * 100-475-260 Other Benefits * * * Subtotal Employee Benefits 39,000 0 0 0 Total Salaries and Benefits 131,448 0 0 0 100-475-320 Professional Services-Engineering 55,257 * * * 100-475-322 Professional Services-Other 478 * * * 100-475-324 Professional Services-Environmenta 7,125 * * * 100-475-412 Utility Service-Refuse 632 * * * 100-475-420 Contract-Street Sweeping 3,388 * * * 100-475-422 Contract-Traffic Light Maintenance 20,344 * * * 100-475-424 Contract-Weed Abatement 0 * * * 100-475-426 Contract-Striping 0 * * * 100-475-430 Service-Repair & Maintenance 1,742 * * * 100-475-442 Rental-Eqiupment/Vehicles 70 * * * 100-475-530 Communications 2,653 * * * 100-475-540 Advertising 345 * * * 100-475-550 Printing and Postage 342 * * * 100-475-580 Travel & Training 1,694 * * * 100-475-581 Dues and Memberships 177 * * * 100-475-585 Educational Assistance Program 0 * * * 100-475-600 General Supplies 15,610 * * * 100-475-605 Minor Equipment 1,041 100-475-610 Automotive Supplies 2,641 * * * 100-475-615 Supplies-Signs and Striping 4,738 * * * 100-475-616 Safety Supplies 149 100-475-622 Electricity 70,471 * * * 100-475-626 Gasoline 3,995 * * * 100-475-642 Licenses and Permits 6 * * * Total Service and Supplies 192,898 0 0 0 Total Operating Expenses 324,346 0 0 0 100-475-730 Improvements Other Than 174,295 * * * 100-475-741 Machinery 19,214 * * * 100-475-742 Vehicles * * * 100-475-743 Furniture and Fixtures * * * Total Capital 193,509 0 0 0 Total Operating and Capital 517,855 0 0 0 * See Streets Special Revenue Fund for FY04 and FY05 Expenditures. 61 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Parks Organizational Chart: Voters of Fernley Mayor/City Council City Manager Parks & Rec. Director Maintenance Supervisor Vector Control Supervisor Maintenance Worker Maintenance Helper Seasonal PT Maintenance Helper Parks FY2005/2006 Expenditures Salaries and Wages, $228,300 , 40% Payroll Taxes and Benefits, $121,700 , 21% Service and Supplies, $186,800 , 33% Capital, $33,000 , 6% Description: Parks Department staff members are responsible for maintenance of the following parks: Out of Town Park In Town Park Green Valley Park Dr. Rick Johnson Memorial Park Millennium Grove Civic Center Park Fernley Depot Park The Parks Department staff members also maintain the grounds at City Hall and provide cleaning services in City Hall. Significant Expenditures and Staffing Changes: 62 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 In FY05/06, the budget assumes creation of one new full time Maintenance Worker position. The City will continue to use a contract to manage projects and will contract the maintenance of certain parks. The FY2005/2006 budget assumes a continuation of use of three seasonal employees for a total of 3,060 hours per year and one additional seasonal employee at 60 hours per year. Staffing Levels and Cost Allocation: The Parks cost center includes the following personnel allocated at the noted percentages: Position FTE % Allocated FTE Parks and Recreation Director 1.00 100% 1.00 Maintenance Supervisor 1.00 100% 1.00 Maintenance Worker (4 Positions) 4.00 100% 4.00 Maintenance Helper (part time) .03 100% .03 Maintenance Helpers (Part time) 1.48 100% 1.48 Vector Control Supervisor 1.00 0% Vector Control Helpers (part time) .89 0% TOTAL 9.40 7.51 Goals and Objectives: Goal: To conduct Department business and activities in an effective and timely manner. Objective To improve staff performance. Task Recruit competent and motivated permanent and temporary employees Task Evaluate work performance per policy requirements, or as needed. Task Establish work programs and staff assignments and schedules Task Evaluate training needs and schedule as needed within budget constraints Objective To improve public services. Task Meet and communicate regularly with user groups. Task Attend and work special events and activities in order to understand user and facility needs. Task Guide user groups in improving event planning and operations. Objective To repair and renovate inadequate irrigation systems. Task Identify problem areas. Task Define system needs and identify projects as in-house or contractor based. Objective To establish written policies and procedures for facility, special event, and activity management. Task Define events and activities. Task Create guidelines and forms for event and activity requests. Task Establish risk management and insurance requirements Task Create handout packages with submission requirements 63 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Task Meet with user groups to familiarize them with requirements and procedures. Objective To establish written fee schedules for park events and activities. Task Evaluate events and activities for impacts to utilities, facilities and staffing. Task Set fees based on impacts. Task Coordinate revenue accounting and deposition with the Administrative Services Department 64 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The line item budget for the Parks cost center follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget 100-575-100 Regular Pay 88,807 94,066 168,000 196,600 100-575-130 Overtime Pay 3,223 4,073 4,700 5,500 100-575-140 Annual Leave Pay 2,181 3,042 9,800 11,500 100-575-150 Sick Leave Pay 4,302 4,196 5,000 5,900 100-575-160 Holiday Pay 3,656 3,973 7,500 8,800 100-575-170 Other Leave Pay 0 Subtotal Salaries and Wages 102,169 109,350 195,000 228,300 100-575-200 FICA 1,057 1,213 1,500 1,500 100-575-210 Medicare 1,391 1,507 2,800 3,300 100-575-220 Unemployment 745 558 2,000 2,300 100-575-230 Retirement (PERS) 14,842 17,377 33,900 39,500 100-575-240 Group Insurance 17,316 24,450 53,000 66,000 100-575-250 Workers Compensation Insurance 2,430 3,216 9,800 6,800 100-575-260 Other Beneifts 0 2,000 2,300 Subtotal Employee Benefits 37,781 48,321 105,000 121,700 Total Salaries & Benefits 139,950 157,671 300,000 350,000 100-575-322 Professional Services-Other 623 40,766 15,000 40,000 100-575-342 Tech Services-Other 2,110 1,664 17,568 30,000 100-575-410 Utility Service-Water and Sewer 20,873 33,734 28,000 28,000 100-575-412 Utility Service-Refuse 2,480 2,666 3,300 3,000 100-575-430 Service-Repair and Maintenance 5,254 17,190 13,400 10,000 100-575-530 Communications 1,209 2,186 3,000 4,000 100-575-540 Advertising 68 749 500 500 100-575-550 Printing and Postage 340 100-575-580 Travel and Training 200 175 1,007 1,500 100-575-581 Dues and Memberships 370 500 100-575-585 Educational Assistance Program 0 0 1,000 1,000 100-575-600 General Supplies 26,694 48,536 30,000 40,000 100-575-605 Minor Equipment 1,599 3,490 4,100 5,000 100-575-610 Automotive Supplies 634 1,825 2,300 3,000 100-575-612 Building Maintenance Supplies 1,100 1,500 100-575-616 Safety Supplies 927 2,500 3,000 100-575-622 Electricity 6,668 8,361 8,300 8,300 100-575-623 Propane 726 414 1,000 1,000 100-575-626 Gasoline 3,290 4,241 4,500 6,000 100-575-640 Books and Periodicals 15 100-575-642 Licenses and Permits 34 500 500 Total Service & Supplies 72,428 166,958 137,800 186,800 Total Operating Expenditures 212,378 324,629 437,800 536,800 100-575-730 Improvements Other Than 17,172 1,026 0 Depot Restoration 100-575-741 Machinery 0 15,800 10,000 10,000 100-575-742 Vehicles 24,318 13,500 23,000 100-575-743 Furniture and Fixtures Total Capital 17,172 41,144 23,500 33,000 Total Operating and Capital 229,550 365,773 461,300 569,800 Analysis: In FY05/06, Salaries and Wages increased due to the addition of one fully time maintenance employee. Professional and contract services were increased to supplement City personnel for park maintenance and to properly plan for park development. 65 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Community Development Organizational Chart: Voters of City Mayor City Council Planning Commission City Manager Community Dev Director Senior Planner Building Official Full Time Animal Control Officer Sr. Plans Examiner Associate Planner Inspector/Plan Checker Development Asst Inspectors Clerk/Driver Office Asst Building & Planning FY2005/2006 Expenditures Salaries and Wages, $603,600 , 52% Payroll Taxes and Benefits, $312,800 , 27% Service and Supplies, $206,350 , 18% Capital, $34,000 , 3% Description: The Community Development Department exists to perform four primary functions: building inspections and permits, planning and zoning, engineering, and code enforcement. The Community Development Department provides support to the Planning Commission, including research and recommendations. 66 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Growth Permits Issued / Inspections Performed 0 200 400 [PHONE REDACTED] 1200 1400 1600 FY03 FY04 FY05 Fiscal Year # of Permits 0 5000 10000 15000 20000 25000 # of Inspections Permits Inspections Planning Application Activity 85 144 195 211 0 50 100 150 200 250 FY02 FY03 FY04 FY05 Fiscal Year # of Applications 67 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Legal Requirements: NRS 278 describes the Nevada laws related to planning. City Councils are authorized to establish planning departments or participate in Regional Planning Commissions. Pursuant to NRS 266, the City Council has the authority to pass ordinances relating to buildings and to require building inspections. Significant Expenditures and Staffing Changes: In FY05/06, four full-time positions were added to the Community Development Department: Senior Planner (Assistant Department Head), Building Inspector, Senior Plans Examiner and Assistant/Associate Engineer. The net increase is 4.00 FTE. Staffing Levels and Cost Allocation: The Community Development cost center includes the following personnel allocated at the noted percentages: Position FTE % Allocated FTE Community Development Director 1.00 100% 1.00 Senior Planner 1.00 100% 1.00 Building Official 1.00 100% 1.00 Office Assistant 2.00 100% 2.00 Building Inspectors 5.00 100% 5.00 Senior Plans Examiner 1.00 100% 1.00 Assistant/Associate Engineer 2.00 100% 2.00 Assistant/Associate Planner 1.00 100% 1.00 Development Assistant 1.00 100% 1.00 Driver/Clerk 1.00 50% 0.50 16.00 15.50 Goals and Objectives: Goal: To meet all statutory requirements for review of planning applications. Goal: To maintain residential building permit review/process to two weeks. Task Continue to implement policies and procedures to improve plan review and building permit process Goal: To complete and adopt the Master Plan Update Task Hold final public hearings with the Planning Commission and City Council Task Create all maps and the master plan document Goal: To review commercial building plans within 30 days 68 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Goal: To review civil improvement plans within 30 days of submittal Task Ensure that all applications are complete and accurate. Task Establish policies and procedures for efficient review of civil plans. Goal: To start roadway capital improvement plan (CIP) Task Hire necessary consultants to assist the City with the CIP. Task Establish CIP Committee. Task Hold necessary public hearings Goal: To continue to perform all inspections within the requested dates. Goal: To continue high level of customer service and professional review of projects Task Provide public counter service during business hours Task Reply to phone calls within 24 hours Task Establish over the counter plan check procedures for minor residential projects Task Continue to compete all staff reports by Planning Commission and City Council deadlines Goal: To increase roadway capacities and Level of Service (LOS) Task Require roadway improvements with new development to maintain or increase LOS Task Work with NDOT staff to improve LOS on State Highways Task Coordinate City road projects with road improvements required with development. Goal: To fill the Senior Planner position Goal: To update the Development Code upon adoption of the Comprehensive Plan Task Include changes identified in the Comprehensive Plan Task Include changes desired by the Planning Commission and the City Council Task Include changes identified by staff. Goal: To provide code enforcement services upon receipt of written complaints Task Investigate and respond to written complaints within one week Task Re-inspect violations within one week after deadlinesl Task Maintain statistical information. Task Coordinate failures to comply cases with the City Attorney’s Office. Goal: To start the Downtown Fernley Plan. Task Recruit and contract with a consultant Task Hold workshops with stakeholders Goal: To implement the Design Award Program 69 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Goal: To replace 2000 ICC (International Code Council) “stock” building plans with plans conforming to the 2003 ICC codes Task Establish plan review schedule Task Review all “stock plans” and provide comments to the designers Task Replace “stock plans” with 2003 ICC codes Goal: To assist in City-wide technology updates Goal: To assist with City Hall Expansion Goal: To assist the Parks and Recreation Department in long term planning for parks and open space Task Identify potential public lands for open space as part of the Master Plan update Task Continue to acquire land under the Truckee canal for a regional trail system Task Work with BOR and BLM on long-term park and open space planning Goal: To create Planning and Engineering review process public information pamphlets Goal: To request an ISO re-evaluation and re-rating Goal: Update and codify water and sewer Fernley Town Ordinances to be part of the Development Code. Goal: To Work with FEMA in a re-study of Fernley Task Digitize FIRM maps of the City’s GIS system Task File an application with FEMA with necessary technical information. Task Work with BOR and BLM on long-term park and open space planning 70 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The line item budget for the Community Development Department follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget 100-600-100 Regular Pay 180,987 210,995 330,000 494,200 100-600-130 Overtime Pay 990 8,120 15,000 4,000 100-600-140 Annual Leave Pay 2,077 4,210 18,000 44,200 100-600-150 Sick Leave Pay 1,503 4,931 7,500 34,200 100-600-160 Holiday Pay 3,255 5,688 18,000 27,000 100-600-170 Other Leave Pay Subtotal Salaries and Wages 188,812 233,944 388,500 603,600 100-600-200 FICA 0 100-600-210 Medicare 2,649 3,272 5,400 8,800 100-600-220 Unemployment 236 1,007 3,700 6,000 100-600-230 Retirement (PERS) 33,787 41,363 74,600 118,400 100-600-240 Group Insurance 20,941 37,855 108,000 159,500 100-600-250 Workers Compensation Insurance 3,728 5,773 18,600 18,100 100-600-260 Other Benefits 1,040 2,600 2,000 2,000 Subtotal Employee Benefits 62,381 91,870 212,300 312,800 Total Salaries & Benefits 251,193 325,814 600,800 916,400 100-600-322 Professional Services-Other 21,431 29,790 42,700 118,100 100-600-342 Tech Services-Other 413 721 1,000 1,000 100-600-430 Service-Repair and Maintenance 595 479 2,000 3,000 100-600-441 Rental 1,162 4,112 6,000 4,800 100-600-530 Communications 2,837 4,280 6,400 6,600 100-600-540 Advertising 548 1,283 1,500 1,500 100-600-550 Printing and Postage 922 5,887 3,000 5,000 100-600-580 Travel & Training 4,874 9,239 12,000 22,000 100-600-581 Dues and Memberships 428 1,132 2,000 2,000 100-600-585 Educational Assistance Program 390 0 0 1,000 100-600-600 General Supplies 5,780 6,016 8,000 12,000 100-600-605 Minor Equipment 4,253 1,364 19,800 20,250 100-600-610 Automotive Supplies 60 581 4,500 3,100 100-600-616 Safety Supplies 139 500 500 100-600-626 Gasoline 2,273 1,932 3,120 4,500 100-600-640 Books and Periodicals 490 5,029 1,000 1,000 Total Service & Supplies 46,456 71,984 113,520 206,350 Total Operating Expenditures 297,649 397,798 714,320 1,122,750 100-600-730 Improvements Other Than 100-600-741 Machinery 2,188 100-600-742 Vehicles 23,973 34,000 100-600-743 Furniture and Fixtures 1,432 Total Capital 3,620 23,973 0 34,000 Total Operating and Capital 301,269 421,771 714,320 1,156,750 Analysis: Salaries and Wages increased due to additional staff positions and projected step increases for existing personnel No annual salary adjustments for employees have been factored in, pending labor negotiations. Benefits increased primarily due to additional staff positions. Professional services include updates for the GIS system and the Fernley Downtown plan. Expenses for a capital improvement plan will be accounted for in the Capital Fund. 71 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Animal Control Organizational Chart: Voters of Fernley Mayor/City Council City Manager Adm Srv Dir (City Treasurer) Asst City Treasurer Business Off. Administrator Senior Office Assistant Office Asst II Office Assistant (PT) Full Time Animal Control Officer Part Time Animal Control Officer Animal Control FY2005/2006 Expenditures Salaries and Wages, $59,100 , 43% Payroll Taxes and Benefits, $32,000 , 24% Service and Supplies, $19,750 , 15% Capital, $25,000 , 18% Description: The City of Fernley assumed responsibility for animal control services in the latter part of FY2001/2002. Lyon County provided services relating to animals in the Town of Fernley prior to incorporation. After the July 1, 2001 incorporation, Lyon County ceased providing the services and the City ultimately organized the services in the latter part of the first year of operation as an incorporated city. The City initially employed one part time person for animal control service who reported to the Community Development Director. In FY2002/2003, the part-time position was increased to full time. In FY2004/2005, the program was transferred from the Community Development Department to the Administrative Services Department. 72 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Significant Expenditures and Staffing Changes: For the City to provide 7 day a week services, call out, coverage for vacations, coverage for illnesses, and coverage for transportation of animals to the animal shelter, additional personnel and better programming are needed. Staff reviewed alternatives for providing service, including contracting with Lyon County. The City Council decided to add a part-time animal control officer to provide coverage for the current full time animal control officer. In order to get the programs more clearly defined and monitored, a part time office assistant was added in the Administrative Services Department. This position would assist the Administrative Services Director in establishing programs, accounting for programs, and maintaining the proper records and statistics to assure compliance with laws and risk management issues related to the animal control function. Staffing Levels and Cost Allocation: The Animal Control cost center includes the following personnel allocated at the noted percentages: Position FTE % Allocated FTE Administrative Services Director 1.00 0% 0.00 Animal Control Officer 1.00 100% 1.00 Animal Control Officer (part time) .50 100% 0.50 Office Assistant (part time) .50 100% 0.50 10.50 2.00 Goals and Objectives: Goal: To respond to requests for service related to animals within the City limits according to local and state laws. Objective To respond to complaints regarding animals at large or animals posing a threat to the health and safety. Objective To coordinate with the Lyon County Sheriff’s office to attain and transport animals in emergency situations. Objective To deposit dogs at the Lyon County Animal Shelter. Objective To return animals to owners, if possible, in 24 hours. Goal: To patrol the City and react to observed situations, as needed, when not responding to a call or performing other required duties. Goal: To provide quality customer service to the citizens of Fernley related to animal services. 73 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The line item budget for the Animal Control cost center follows: Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Regular Pay 19,927 25,113 27,200 49,900 Overtime Pay 782 2,126 2,000 1,000 Annual Leave Pay 498 1,106 1,500 3,500 Sick Leave Pay 101 963 1,000 2,700 Holiday Pay 911 1,300 1,800 2,000 0 Subtotal Salaries and Wages 22,219 30,608 33,500 59,100 FICA 0 700 Medicare 307 421 500 900 Unemployment 131 147 300 600 Retirement (PERS) 3,896 5,680 6,400 11,500 Group Insurance 2,248 5,061 11,000 16,500 Workers Compensation Insurance 244 783 1,700 1,800 Subtotal Employee Benefits 6,826 12,092 19,900 32,000 Total Salaries and Benefits 29,045 42,700 53,400 91,100 Professional Services-Other 261 79 500 500 Tech Services-Other 338 500 500 Co. Shelter Agreement 3,000 3,000 Service-Repair & Maintenance 496 1,088 500 1,000 Communications 490 1,067 2,000 3,000 Advertising 25 0 500 1,000 Printing and Postage 78 82 1,000 500 Travel & Training 0 0 1,500 1,500 Dues and Memberships 284 100 500 500 Educational Assistance Program 0 0 1,000 General Supplies 1,418 1,423 1,000 1,500 Minor Equipment 1,408 0 2,000 3,000 Automotive Supplies 435 50 250 500 Gasoline 1,403 1,468 1,060 2,000 Books and Periodicals 0 250 250 Total Service and Supplies 6,298 5,695 14,560 19,750 Total Operating Expenses 35,343 48,395 67,960 110,850 Improvements Other Than Machinery Vehicles 5,485 25,000 Furniture and Fixtures Total Capital 5,485 0 0 25,000 Total Operating and Capital 40,828 48,395 67,960 135,850 Analysis: Salaries and Wages increased due to the creation of new positions. The budget also includes projected step increases for current employees. No annual salary adjustments are included pending labor negotiations. The capital expenditure is for acquisition of another vehicle for the added personnel. 74 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Vector Control Organizational Chart: See Parks Department Vector Control FY2005/2006 Expenditures Salaries and Wages, $52,100 , 38% Payroll Taxes and Benefits, $22,200 , 17% Service and Supplies, $48,500 , 37% Capital, $10,000 , 8% Description: The City of Fernley recently experienced cases of West Nile Virus in mosquitoes. The City has developed a Vector Control Program to deal with the Public Health issue. Significant Expenditures and Staffing Changes: Existing staff levels were added in the latter part of FY05. Staffing Levels and Cost Allocation: The Animal Control cost center includes the following personnel allocated at the noted percentages: Position FTE % Allocated FTE Vector Control Supervisor 1.00 100% 1.00 Vector Control Helpers (part time) .89 100% 0.89 1.89 1.89 Goals and Objectives: Goal: Establish a baseline program. Objective: To minimize public health impacts due to vector borne diseases. Task#1: Identify and treat annual mosquito breeding sites Task#2: Identify and treat season and ephemeral breeding sites Task Create a database of treatment locations and activities Task Establish a mapping program for all abatement services 75 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Task#5: Develop a public education and information program to mitigate cultural practices that create mosquito breeding habitat Task Coordinate with the Community Development Department and the Public Works Department to improve retention basin managment The line item budget for the Vector Control cost center follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget 100-528-100 Regular Pay 27,000 46,500 100-528-130 Overtime Pay 0 500 100-528-140 Annual Leave Pay 0 1,800 100-528-150 Sick Leave Pay 0 1,800 100-528-160 Holiday Pay 0 1,5 100-528-170 Other Leave Pay Subtotal Salaries and Wages 0 0 27,000 52,100 100-528-200 FICA 1,200 1,100 100-528-210 Medicare 400 800 100-528-220 Unemployment 270 500 100-528-230 Retirement (PERS) 2,000 6,200 100-528-240 Group Insurance 2,000 11,000 100-528-250 Workers Compensation Insurance 800 2,600 100-528-260 Other Beneifts 0 0 Subtotal Employee Benefits 0 0 6,670 22,200 Total Salaries & Benefits 0 0 33,670 74,300 100-528-322 Professional Services-Other 5,000 10,000 100-528-342 Tech Services-Other 0 1,000 100-528-410 Utility Service-Water and Sewer 0 100-528-412 Utility Service-Refuse 0 100-528-430 Service-Repair and Maintenance 0 1,000 100-528-530 Communications 0 1,000 100-528-540 Advertising 0 100-528-550 Printing and Postage 0 100-528-580 Travel and Training 0 1,000 100-528-581 Dues and Memberships 0 100-528-585 Educational Assistance Program 0 1,000 100-528-600 General Supplies 5,000 10,000 100-528-605 Minor Equipment 5,000 10,000 100-528-610 Automotive Supplies 5,000 10,000 100-528-612 Building Maintenance Supplies 0 100-528-616 Safety Supplies 0 1,000 100-528-622 Electricity 0 5 100-528-623 Propane 0 100-528-626 Gasoline 0 2,0 100-528-640 Books and Periodicals 0 100-528-642 Licenses and Permits 0 Total Service & Supplies 0 0 20,000 48,500 Total Operating Expenditures 0 0 53,670 122,800 100-528-730 Improvements Other Than 0 Buildings 10,000 100-528-741 Machinery 25,000 100-528-742 Vehicles 15,000 100-528-743 Furniture and Fixtures Total Capital 0 0 40,000 10,000 Total Operating and Capital 0 0 93,670 132,800 00 00 00 Analysis: This is a new program. Comparison to the prior year does not include a full 12 months. 76 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Debt Service This cost center was used to account for the payment of debt incurred for construction of the City Hall building. The debt was originally issued in 1993 in the name of the Fernley Town Board. The original principal amount was $700,000 with an interest rate of 6.3%. The debt was fully repaid in FY2002/2003. The FY2005/2006 budget for the debt service function follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Total Salaries and Benefits 0 0 100-625-861 Principal 89,797 100-625-860 Interest 5,534 100-625-331 Service & Supplies (Bank Fee) 100 Total Service and Supplies 95,431 0 Total Operating Expenses 95,431 0 0 0 77 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Contingency The City of Fernley may budget for a contingency not to exceed 3% of total estimated annual expenditures, excluding transfers out. The annual expenditures (before transfers and contingency) for the City of Fernley for FY2005/2006 are approximately $3 million. The contingency is established at the full 3% or $90,000 plus $15,000 as a contingency for the pending labor negotiations and potential implementation of the pending classification and compensation study. Pursuant to NRS 354.608, no expenditure may be made directly from a contingency account, except as a budget transfer to the appropriate account. If the City Council desires to use money from the contingency account, the City Council may authorize a budget transfer (for example from Contingency to Service and Supplies) and then pay for the item from the appropriate account (for example, Service and Supplies). The City of Fernley does not anticipate using the FY2004/2005 contingency of $63,000 by June 30, 2004; so this amount was removed from the FY2004/2005 budget. The City did not use amounts budgeted for contingency in FY01/02 or FY02/03. The FY2005/2006 budget for the contingency function follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Total Salaries & Benefits 0 0 100-900-900 Contingency 0 0 0 105,000 Total Service & Supplies 0 105,000 Total Operating Expenditures 0 105,000 Capital Expenditures Total Capital 0 0 Total Operating and Capital 0 0 0 105,000 78 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Special Revenue Funds Overview: Special Revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. The City of Fernley maintains the following special revenue funds for the purposes described: Administrative Assessment Fees Fund: To account for a portion of fees collected in the Fernley Municipal Court as required by NRS 176.059. These monies are used to improve the operations of the court, or to acquire and/or use appropriate advanced technology, including training, acquisition of capital items, management and operations studies or audits. Any money remaining in the fund after two fiscal years reverts to the City General Fund. Court Facilities Assessment Fees Fund: To account for fees collected in the Fernley Municipal Court pursuant to NRS 176.0611 and authorized in City of Fernley Ordinance #2001-0011. These monies are used to acquire land for court facilities, construct or acquire court facilities, renovate or remodel existing court facilities, acquire furniture, fixtures and equipment needed due to construction, acquisition or renovation or court facilities, acquire advanced technology for use in renovation of court facilities, or to pay debt service on bond issues related to construction, acquisition, or renovation of court facilities. Any money remaining in the fund after five fiscal years reverts to the City General Fund. Grants: To account for certain projects primarily financed through grants and to segregate funds earmarked as matching funds for grants. Grants relating to enterprise funds are not included in this fund. Residential Construction Tax District To account for a tax to be used for park development in the District #1 identified in the City of Fernley park plan. Residential Construction Tax District To account for a tax to be used for park development in the District #2 identified in the City of Fernley park plan. Streets and Storm Drain: To account for gas taxes that must be used for street maintenance and capital expenditures as well as other revenues that may be used for projects associated with streets and storm drains. 79 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Administrative Assessment Fees Description: This fund was established to account for a portion of the fees collected in the Fernley Municipal Court as required by NRS 176.059. Prior to FY04, the court assessed between $15 and $105 for certain misdemeanors. The Nevada State Legislature increased the required assessments to between $25 and $115. Of this assessment, $2 is allocated to Lyon County’s juvenile court or juvenile probation program to provide service to juvenile offenders; $7 is placed in this special revenue fund for the use of the Municipal Court, and the remainder of each assessment is paid to the State of Nevada for a special account in the State general fund. The monies in this Administrative Assessment Fees special revenue fund are used to improve the operation of the court or to acquire and/or use appropriate advanced technology, including training, acquisition of assets, management and operations studies, or audits. Any money remaining in the fund after two fiscal years reverts to the City General Fund. The Municipal Court Judge and the City Manager share responsibility and accountability for this fund. The FY2005/2006 budget for this fund follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Revenues: Fines & Forfeitures 200-350-100 Admin Assess Fee Revenue 10,147 12,642 11,200 11,200 200-360-100 Interest Earnings 43 78 1,000 100 Miscellaneous Revenues Total Revenues 10,190 12,720 12,200 11,300 Operating Expenditures: 200-425-322 Professional Services-Other 10,000 200-425-580 Travel & Training 535 2,000 7,500 200-425-600 General Supplies 2,042 0 5,000 200-425-605 Minor Equipment 10,000 10,000 Total Operating Expenditures 10,000 2,577 12,000 22,500 Net from Operations 190 10,143 200 -11,200 Capital Expenditures: 200-425-741 Machinery 2,773 Furniture and Fixtures Total Capital 2,773 0 0 0 Revenues less Expenditures -2,583 10,143 200 -11,200 Transfers in & Out Fund Balance July 1 7,033 4,450 14,593 14,793 Fund Balance June 30 4,450 14,593 14,793 3,593 80 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Court Facility Fees Description: The fund was created to account for fees collected in the Fernley Municipal Court as allowed in NRS 176.0611 and authorized in City of Fernley Ordinance #2001-0011. The fee will be collected for twenty-five years, from 2001 through 2026. The court facility assessment fee is $10 for each case in which a defendant is found guilty of certain misdemeanors. The fee is in addition to any fines imposed by the Municipal Court Judge. The fees collected in this fund are to be used to: • Acquire land on which to construct additional facilities for the Fernley Municipal Court or a regional justice center that includes the Municipal Court • Construct or acquire additional facilities for the Fernley Municipal Court • Renovate or remodel existing facilities for the Fernley Municipal Court • Acquire furniture, fixtures, and equipment necessitated by the construction or acquisition of additional facilities or the renovation of an existing facility. • Acquire advanced technology for use in the additional or renovated facilities • Pay debt service on any bonds issued for the acquisition of land or facilities or the construction or renovation of facilities for the Municipal Court or a regional center that includes the Municipal Court Any money remaining in the fund after five fiscal years reverts to the City General Fund for the continued maintenance of court facilities. The FY2005/2006 budget for this fund follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Revenues: 210-350-100 Court Facility Fee Revenue 14,027 17,166 16,000 16,000 210-360-100 Interest Earnings 118 157 400 200 Total Revenues 14,145 17,323 16,400 16,200 210-425-322 Professional Service-Other 2,235 210-425-741 Machinery 10,950 Total Expenditures 13,185 0 Revenues less Expenditures 960 17,323 16,400 16,200 Fund Balance July 1 10,201 11,161 28,484 44,884 Fund Balance June 30 11,161 28,484 44,884 61,084 81 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Grants Description: The grants special revenue fund is used to account for the receipt and use of grant funds for certain projects related to general government (non-enterprise fund) projects. The fund is also used to segregate specific City funds for use as match for certain grants. The use of a special revenue fund to account for grants will allow for appropriate control of grant monies, identification of specific monies to use as matching funds, and allocation of expenditures, if appropriate, to quantify in-kind contributions for grants. Only grants that have been awarded or are pending award are included in the projected revenues. If pending grants are not awarded, the associated revenue and expenditure accounts will be removed, thereby “freeing” the allocated match money for other projects. If additional grants are awarded in the future, appropriate revenue and expenditure accounts will be added to account for each grant. The amount of match initially transferred to the Grants special revenue fund in FY2002/2003 was $150,000. An additional $250,000 was transferred in FY2003/2004 and $100,000 was transferred in FY2004/2005. The line item budget for the Grants special revenue fund follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Revenues: 220-330-100 CDBG Grant Revenue 40,000 220-330-300 PUC Grant Revenue 105,000 220-360-100 Interest Earnings 767 2,064 6,000 10,000 Other Grant Revenue Total Revenues 40,767 107,064 6,000 10,000 Expenditures: 220-480-322 Prof Serv-WNDD Grant Writing 7,500 Total Operating Expenditures 0 7,500 0 0 220-480-645 CDBG Grant Expenditures 83,398 105,963 Tourism Grant Expenditures 0 220-480-650 TEA-21 Match-Depot Restoration 0 220-480-655 PUC Grant Expenditures 105,000 220-480-730 Other Grant Expenditures 7,601 75,000 202,500 Total Capital Expenditures 83,398 113,564 180,000 202,500 Total Expenditures 83,398 121,064 180,000 202,500 Revenues less Expenditures -42,631 -14,000 -174,000 -192,500 220-390-500 Transfer from General Fund 150,000 250,000 100,000 0 220-390-505 Transfer from RCT #1 Fund 154,200 0 Fund Balance July 1 0 107,369 497,569 423,569 Fund Balance June 30 107,369 497,569 423,569 231,069 82 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Residential Construction Tax District #1 Description: The Residential Construction Tax (RCT) District #1 special revenue fund is used to account for the receipt and use of a special tax that is dedicated to specific purposes for construction of parks in accordance with the City Park plan. The fund may also be used to account for additional revenues for park projects if multiple funding sources, including RCT, are used for a specific project. The line item budget for the Residential Construction Tax District #1 special revenue fund follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Revenues: 230-310-300 RCT Tax 138,071 454,733 432,000 432,000 230-330-100 CDBG Grant Revenue 7,000 0 230-330-110 Land & Water Conservation Grant 40,949 0 230-360-100 Interest Earnings 240 1,373 1,000 1,000 Other Revenue Total Revenues 138,311 504,055 433,000 433,000 Expenditures: 230-575-322 Professional Services 8,317 Total Operating Expenditures 8,317 0 0 0 230-575-710 Land 1,769 230-575-720 Buildings 0 230-575-730 Improvements 16,412 448,857 830,000 40,000 230-575-741 Machinery 8,720 Total Capital 16,412 459,346 830,000 40,000 Revenues less Expenditures 113,582 44,709 -397,000 393,000 Transfers From General Fund 400,000 -400,000 Transfers To Grants Fund -154,200 0 Fund Balance July 1 0 113,582 4,091 7,091 Fund Balance June 30 113,582 4,091 7,091 91 83 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The multi-year capital improvement plan for the RCT District #1 Fund follows: City of Fernley District #1 Capital Improvement Plan Parks Project Number FY03 FY04 FY05 FY06 FY07 FY08 Total Sources Residential Construction Tax $138,071 $454,733 $432,000 $432,000 $432,000 $432,000 $2,320,804 TEA-21 Grants $0 Land, Water Conserv. Grant $40,949 $40,949 CDBG Grant Restrooms (Grants Fund) 220-001 $40,000 $40,000 CDBG Grant - ADA 230-001 $7,000 $7,000 Interfund Activity $2,763 $400,000 ($400,000) $2,763 Other Grants $0 Interest Income $240 $1,373 $1,000 $1,000 $1,000 $1,000 $5,613 $0 Total Sources $178,311 $506,818 $833,000 $33,000 $433,000 $433,000 $2,417,129 $0 Uses: $0 Develop Parks CIP $0 OTP Restroom Sewer Phase I (Grants Fund) 220-001 $83,398 $110,816 $194,214 OTP Restrooms-ADA Compliance 230-001 $11,528 OTP Restroom Concession Phase II (L&WCF Grant) 230-003 $111,593 Bandstand Shelters Project 230-002 $24,729 $153,939 $178,668 BOR Park-Acquisition and Development 230-004 $0 $180,000 $40,000 $100,000 $320,000 Eagle's Nest/Fernwood Park-Improvements 230-005 $20,109 $5,000 $0 $5,000 $5,000 $35,109 OTP-Senior Field Lights 230-006 $135,738 $135,738 Quigley Property Fields / Equestrian Area (Sundance Park) 230-007 $2,000 $400,000 $0 $402,000 OTP New Skate Park 230-008 $0 $20,000 $20,000 $40,000 Rodeo Bleachers & Canopy 230-009 $150 $0 $150 Bandstand Shelters Electical Lighting Sound 230-010 $14,405 $20,000 $34,405 Develop North Side (Round-A-Bout & Hwy 50A Imp) 230-011 $0 $100,000 $100,000 OTP - Install lights on Little League Minor League field 230-012 $100,000 $100,000 Other Park Improvements 230-999 $12,633 $225,000 $0 $25,000 $25,000 $287,633 Total Uses $108,127 $572,911 $830,000 $40,000 $350,000 $50,000 $1,951,038 Sources Less Uses $70,184 ($66,093) $3,000 ($7,000) $83,000 $383,000 $466,091 Balance July 1, 20XX $0 $70,184 $4,091 $7,091 $91 $83,091 84 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Project Number Project Title Project Description 220-001 OTP Restroom/Sewer Improvement- Phase I Completed Out of Town Park-Install Prefabricated Restroom Building, Install Water/Sewer/Electrical for the new restroom and the rest of the park, Remove three septic systems. Partially funded through CDBG Grant ($40K) 230-001 OTP Park Restrooms-ADA Compliance Completed Out of Town Park – Install sidewalks to Restrooms, ADA Parking, Ramp to Restroom, Ramp to Bandstand. Partially funded through CDBG Grant #CDBG/03/007 ($11,700 of which ~ 60% or $7,000 to this project) 230-002 OTP-Bandstand & Shelters Completed Out of Town Park – Erect Picnic Shelter, Replace Bandstand (old bandstand destroyed by vandal fire) , construct concrete walls 230-003 OTP-Restroom Concession Stand Improvements (Phase 2) Completed Out of Town Park – Install a new pre-fabricated combination restroom/concession stand building with utility hookups, Connect building to water sewer electrical. Partially funded through Land and Water Conservation Fund Grant # 32- 00269 ($40,949) 230-004 BOR Park – Property Acquisition from through BLM Acquire 100+ acres currently under the control of the Bureau of Reclamation through BLM Recreation and Public Purposes Lease Program. Contract for studies needed to effect the transfer 230-005 Eagle’s Nest / Fernwood Park Eagles’ Nest Subdivision – Acquire land, install fences, concrete pads for picnic tables and BBQ Pits, sprinkling system, grass 230-006 OTP-Senior Field Lights Install Lights at Senior Field 230-007 Quigley Property (Sundance Park) Completed Acquire property south of Out of Town Park, planning, grading, development 230-008 OTP-New Skate Park Construct a new skate park 230-009 Rodeo Bleachers and Canopy Construct improvements at the rodeo grounds 230-010 Bandstand Shelters Electrical Lighting Sound Electrical Improvements at Bandstand area 230-011 OTP-North Side Development (Round- About & Hwy 50A Improvements) Improve Park in relation to changes from the NDOT project 230-012 OTP-Install lights on two little league fields Install additional lighting 85 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Residential Construction Tax District #2 Description: The Residential Construction Tax (RCT) District #2 special revenue fund is used to account for the receipt and use of a special tax that is dedicated to specific purposes for construction of parks in accordance with the City Park plan. The fund may also be used to account for additional revenues for park projects if multiple funding sources, including RCT, are used for a specific project. The line item budget for the Residential Construction Tax District #2 special revenue fund follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Revenues: 231-310-300 RCT Tax 72,733 308,127 450,000 450,000 231-330-100 CDBG Grant 4,700 0 231-360-100 Interest Earnings 104 1,717 6,000 10,000 Other Revenue Total Revenues 72,837 314,544 456,000 460,000 Expenditures: 231-575-322 Professional Services Other Grant Expenditures Total Expenditures 0 0 0 0 231-575-720 Buildings 0 231-575-730 Improvements Other Than Buildings 98,268 50,000 1,000,000 231-575-741 Machinery 4,160 Total Capital 0 102,428 50,000 1,000,000 Revenues less Expenditures 72,837 212,116 406,000 -540,000 Transfers to RCT Dist #1 -400,000 400,000 Fund Balance July 1 0 72,837 284,953 290,953 Fund Balance June 30 72,837 284,953 290,953 150,953 86 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The multi-year capital improvement plan for the RCT District #2 Fund follows: City of Fernley District #2 Capital Improvement Plan Parks Project Number FY03 FY04 FY05 FY06 FY07 FY08 Total Sources Residential Construction Tax $72,733 $308,127 $450,000 $450,000 $450,000 $450,000 $2,180,860 TEA-21 Grants $0 Land, Water Conserv. Grant $0 CDBG Grant 231-001 $4,700 $4,700 Interfund Activity ($400,000) $400,000 Other Grants $0 Interest Income $104 $1,717 $6,000 $10,000 $10,000 $10,000 $37,821 $0 Total Sources $72,837 $314,544 $56,000 $860,000 $460,000 $460,000 $2,223,381 $0 Uses: $0 Develop Parks CIP $0 ITP-ADA Improvement Project 231-001 $650 $10,000 $10,000 $20,650 Green Valley Park- Field/Parking Lot/Restroom 231-002 $40,000 $15,000 $85,000 ITP-Picnic Shelter at Old BB Court w/ADA Access 231-004 $50,000 $5,000 $5,000 $60,000 ITP-Skatepark Improvements 231-005 $18,523 $10,000 $10,000 $38,523 ITP-Softball field lights 231-006 $77,577 $77,577 Picnic Shelter over Old School House BBQ's 231-007 $20,000 $5,000 $25,000 Depot Park Restroom and Sewer System 231-008 $45,000 $25,000 $25,000 $95,000 Civic Center Park-Greenbelt Development 231-009 $300 $30,000 $30,000 $30,000 $90,300 City Hall Landscaping 231-011 $40,000 $25,000 $25,000 $90,000 Gazebo Silver Lace & Main Street 231-012 $30,000 $30,000 Memorial Park Improvements 231-013 $25 $10,000 $10,000 $5,000 $25,025 80 Acre Park Fernley Hill/BLM Exchange 231-014 $10,000 $10,000 $20,000 Memorial Park - ADA Restrooms & Septic 231-015 $18,000 $18,000 Other Park Improvements 231-999 $5,353 $740,000 $200,000 $945,353 $0 Total Uses $0 $102,428 $50,000 $1,000,000 $338,000 $100,000 $1,590,428 Sources Less Uses $72,837 $212,116 $6,000 ($140,000) $122,000 $360,000 $632,953 Balance July 1, 20XX $0 $72,837 $284,953 $290,953 $150,953 $272,953 87 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Project Number Project Title Project Description 231-001 ITP Park Restrooms-ADA Compliance In Town Park – Install Parking for ADA from 95A. Partially funded through CDBG Grant #CDBG/03/007($11,700 of which ~ 40% or 4,700 to this project) 231-002 Green Valley Park Field, Parking Lot, Restroom Improvements Construct improvements at Green Valley Park 231-004 ITP-Picnic Shelter at Old Basketball Court w/ADA Access Improve access at the In Town Park 231-005 ITP – Skatepark Improvements Add improvements to the existing park 231-006 ITP-Softball field lights Install lights at softball field 231-007 Picnic Shelter over Old School House BBQ’s Install picnic shelters 231-008 Depot Park Restroom and Sewer Improvements Improvements to the Depot park 231-009 Civic Center Park-Greenbelt Development Improve the property across from City Hall and adjacent to Millenium Grove. Grass, Sprinkling System, Path 231-010 Millenium Grove Improve property near City Hall (Completed Project) 231-011 City Hall Landscaping Improve the property at City Hall 231-012 Gazebo Silver Lace and Main Street Install Gazebo and related improvements 231-013 Memorial Park Install Half Moon Basketball Court Construct basketball court 231-014 80 Acre Park – Fernley Hills/BLM Exchange Create a new park 231-015 Memorial Park – ADA Restrooms and Septic Add improvements in Memorial Park 231-999 RCT District #2 Park Equipment Acquisition Costs Cost to plan, specify, bid, and install park equipment 88 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Streets and Storm Drains Organizational Chart: Voters of Fernley Mayor/City Council City Manager Public Works Director Public Works Superintendent Public Works Supervisor Mechanic Public Works Worker WWTP Operator Office Assistant Streets FY2005/2006 Expenditures Capital, $1,790,000 , 71% Service and Supplies, $570,800 , 23% Payroll Taxes and Benefits, $46,200 , 2% Salaries and Wages, $94,276 , 4% Description: The Public Works Department is committed to excellence in public service in all assigned responsibilities, including maintaining roadways and storm drains, coordinating with the Community Development Department, reviewing plans, and performing other public works activities. The Public Works Department is responsible for all public roadways, storm drains, and signage within the incorporated areas of the City. The Public Works Department is also responsible for reviewing plans for development within 89 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 the incorporated city. The Public Works Department is expected to respond in a timely and efficient manner to all public roadway and drainage problems. The highest priority project for the department is to implement the streets improvement and maintenance plan. Several major capital projects are planned for FY2005/2006. The major programs for the department during FY2005/2006 will be: 1. sign replacement and repair 2. pothole patching 3. weed mitigation 4. street sweeping (contracts) 5. crack sealing (contracts using RTC funds) 6. street striping (contracts using RTC funds) Revenue Estimates: The City receives a direct distribution of certain gas taxes from the State of Nevada. The revenue received from these taxes is shown in the following table and chart: Tax FY03 Revenue FY04 Revenue FY05 Revenue FY06 Revenue 1¢ Option $44,232 $45,380 $49,550 $58,805 % Change 2.6% 9.2% 18.7% 1.75¢ Tax $96,199 $100,273 $101,396 $117,818 % Change 4.2% 1.1% 16.2% 2.35¢ Tax 53,790 57,023 68,574 $76,985 % Change 6.0% 20.3% 12.3% $20,000.00 $40,000.00 $60,000.00 $80,000.00 $100,000.00 $120,000.00 $140,000.00 1¢ 1.75¢ 2.35¢ FY03 FY04 FY05 FY06 The 1¢ tax is allocated based on the City’s population relative to the total population of the County. The 1.75¢ tax is allocated based on the City’s assessed value relative to the total assessed value of the county. The 2.35¢ tax is allocated based on relative area, population, road miles, and vehicle travel miles. 90 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The City also receives intergovernmental revenues from Lyon County for use on City streets. Prior to FY03/04, the revenue source was equivalent to7.77¢ per $100 of assessed value. In the City’s the three year history of this revenue source follows: FY03 Revenue FY04 Revenue FY05 Revenue FY06 Revenue Intergovernmental $194,964 $217,100 $212,800 $81,825 % Change 11.35% (61.6%) The City also receives a portion of the County 9¢ option tax that is administered by the Lyon County Regional Transportation Commission. This fund is available for streets projects. The City does not receive a direct distribution of this money but draws against amount held on its behalf as projects are completed, similar to a construction draw system. The history of this fund is as follows: Revenue Draw Balance FY02 $521,877 $0 $521,877 FY03 $501,811 $152,633 $871,055 FY04 $520,230 $711,214 $680,071 FY05 (Estimated) $527,439 $650,000 $557,510 FY06 (Estimated) $612,740 1,050,000 $120,250 In addition to these revenue sources, the City transferred money to the Streets and Storm Drains Fund to provide for maintenance and reconstruction of City Streets and storm drain systems. Legal Requirements: Storm drain systems and streets must be designed to meet not only the City of Fernley standards but also Orange Book standards for Public Works Construction. Significant Expenditures and Staffing Changes: No positions were added in the Public Works Department in the FY06 Budget. Staffing Levels and Cost Allocation: The Streets and Storm Drains fund includes the following personnel allocated at the noted percentages: Position FTE % Allocated FTE Public Works Director 1.00 30% .30 Public Works Field Superintendent 1.00 30% .30 Public Works Supervisor 1.00 20% .20 Office Assistant 1.00 34% .34 Mechanic 1.00 10% .10 WWTP Operator 1.00 10% .10 Public Works Worker (6 positions) 6.00 10% .60 Public Works Worker (OIT) 1.00 10% .10 13.00 2.04 91 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Capital Improvement Projects: The following Capital Improvement Projects are planned for FY06: Project Amount Crack Sealing Program 170,000 Slurry Seal Coat and Patch Program 250,000 Cape Seal Program 150,000 Improvement Projects 1,070,000 Contingency for projects 150,000 Total 1,790,000 Goals and Objectives: Goal To provide adequate access to all areas of Fernley via City-maintained right of way whenever fiscally practical. Objective To maintain, update, and use the data within the City Paver Program street inventory. Task Input collected survey information into Paver database for purpose of prediction modeling. Task Maintain and update the City’s street inventory upon acceptance of new streets, changes in street names, and naming of new streets and identification of right-of-way ownership via research of historical documents. Task Use the data from the Paver Program to determine streets in need of maintenance repair. Task Determine the best maintenance and repair alternative for each project with the objective of optimizing spending. Task Prepare construction drawings, bid documents, advertisements for bids and to award projects. Objective To manage and inspect street projects and programs that have been contracted out. Task Manage and assure that the weed mitigation and street sweeping programs are being performed as required in contracts. Task Manage and inspect the maintenance repair crack sealing and slurry seal projects to assure contractor performance in compliance with specifications in contracts. Task Manage and inspect reconstruction projects to assure that construction meets the required contractual specifications. Objective To maintain, repair, and install traffic control devices within the City of Fernley. Task Perform maintenance repairs on the City traffic lights and signs. 92 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Task Replace street signs that are damaged, missing, or required to be changed by MUTCD (Manual of Uniform Traffic Control Devices) standards. Task Re-stripe existing or install new striping to meet MUTCD requirements thereby enhancing public safety. Goal To manage programs and provide operation and maintenance repairs on all City streets based on the funds available. Collect GIS data and train personnel to propare the exiting storm drain model, collect and review previous Hydrology studies, and prepare EA to utilitze TCID ditches. Objective To collect survey data and previous hydrology studies for the development of storm drain model. Task Train City personnel in the use of the survey equipment for the collection of GIS data. Task Collect survey data to aid in the development of City storm drain model. Task Collect and review previous hydrology studies for use in the calibration of the storm drain model. Task Build the storm drain model based on the above collected information. Objective To prepare an Environmental Assessment to utilize the Truckee Carson Irrigation District (TCID) ditches for the transport of storm water as required by the National Environmental Policy Act of 1969 (NEPA). Task Identify potential locations based on the information from the above objectives. Task Clarify Bureau of Reclamation (BOR) requirements. Task Research potential funding sources for the project. Task Estimate the long-term costs as a result of the project. 93 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 94 Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Revenues: 240-320-220 Public Works Fees 10,901 16,000 16,000 240-320-2XX Inspsection Fees 10,000 25,000 240-330-300 County Road Fund Property Tax 221,819 212,800 293,506 240-330-320 Motor Vehicle Fuel Tax (Gas Tax) 216,736 219,500 253,608 240-330-325 Regional Transportation (RTC) 731,764 650,000 1,050,000 Road Tax 740,000 240-360-100 Interest Earnings 1,351 8,000 10,000 Total Revenues 0 1,182,571 1,116,300 2,388,114 Expenditures: 240-475-100 Regular Pay 76,075 93,000 70,176 240-475-120 Standby Pay 2,229 2,000 2,100 240-475-130 Overtime 8,578 7,000 7,300 240-475-140 Annual Leave Pay 5,630 6,000 6,000 240-475-150 Sick Leave Pay 3,866 5,000 4,900 240-475-160 Holiday Pay 2,985 5,000 3,800 Subtotal Salaries and Wages 0 99,363 118,000 94,276 240-475-200 FICA 346 250 240-475-210 Medicare 768 1,700 1,400 240-475-220 Unemployment 346 1,200 900 240-475-230 Retirement (PERS) 18,358 22,100 18,200 240-475-240 Group Insurance 16,139 28,800 22,400 240-475-250 Workers' Compensation Ins. 4,311 5,900 2,800 240-475-260 Other Benefits 500 500 Subtotal Employee Benefits 0 40,268 60,450 46,200 Total Salaries and Benefits 0 139,631 178,450 140,476 240-475-320 Professional Services-Engineering 56,487 125,000 200,000 240-475-322 Professional Services-Other 188 1,000 1,000 240-475-324 Professional Services-Environmental 2,660 10,000 25,000 240-475-325 Professional Services-PW Inspections 10,000 25,000 240-475-342 Tech Services-Other 338 0 240-475-412 Utility Service-Refuse 611 0 1,000 240-475-420 Contract-Street Sweeping 9,203 10,000 50,000 240-475-422 Contract-Traffic Light Maintenance 1,127 10,000 10,000 240-475-426 Contract-Striping 0 10,000 50,000 Contract-Gravel Road Investigations 50,000 240-475-430 Service-Repair & Maintenance 1,600 1,000 1,500 240-475-442 Rental-Eqiupment/Vehicles 0 7,000 1,000 240-475-530 Communications 3,458 4,500 3,000 240-475-540 Advertising 1,180 1,000 1,000 240-475-550 Printing and Postage 1,477 2,000 2,000 240-475-580 Travel & Training 4,032 3,500 3,500 240-475-581 Dues and Memberships 201 500 1,000 240-475-585 Educational Assistance Program 0 0 1,000 240-475-600 General Supplies 6,589 14,600 14,600 240-475-605 Minor Equipment 2,700 9,400 10,000 240-475-610 Automotive Supplies 1,331 1,000 3,000 240-475-615 Supplies-Signs and Striping 8,068 5,000 7,500 240-475-616 Safety Supplies 329 3,000 3,000 240-475-622 Electricity 84,606 94,000 98,000 240-475-626 Gasoline 5,384 6,000 7,500 240-475-640 Books & Periodicals 24 0 200 240-475-642 Licenses and Permits 94 1,000 1,000 Total Service and Supplies 0 191,687 329,500 570,800 Total Operating Expenses 0 331,318 507,950 711,276 240-475-730 Improvements Other Than 731,764 1,020,000 1,790,000 240-475-741 Machinery 11,053 14,600 Total Capital 0 742,817 1,034,600 1,790,000 Total Operating and Capital 0 1,074,135 1,542,550 2,501,276 Revenues less Expenditures 108,436 -426,250 -113,162 240-390-500 Transfers From General Fund 750,000 450,000 0 Fund Balance July 1 0 0 858,436 882,186 Fund Balance June 30 0 858,436 882,186 769,024 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Capital Project Funds Overview: Capital project funds are used to account for financial resources used for the acquisition or construction of capital projects. The City of Fernley uses these funds to set aside money for a specific purpose. The City of Fernley currently maintains one capital project fund. Capital Fund: To accrue funds under a “pay as you go” program to provide funding for future projects involving replacement of equipment and buildings or new facilities and equipment. 95 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Capital Fund Description: The purpose of the Capital Fund is to segregate money earmarked for capital replacement and improvements so that adequate funds will be available to meet future needs for capital items. These types of funds are sometimes referred to as “depreciation” funds because the purpose is to set aside funds annually for the ultimate replacement of capital items. The fund is also used to plan for new equipment and facilities that may be needed. The City’s annual process to update the Capital Improvement Plan is an important element in the amount and nature of funds set aside in this fund as well as priority for expenditures in the funds. The line item budget for the Capital Fund follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget Revenues: 300-360-100 Interest Earnings 2,143 8,480 20,000 30,000 Miscellaneous Revenues Total Revenues 2,143 8,480 20,000 30,000 300-425-720 Cost Sharing-New Animal Shelter Facility 0 30,000 300-425-322 Feasibility Study-Community Center/City Hall 0 20,000 0 300-425-720 Buildings 73,948 145,000 2,000,000 300-425-741 Machinery (Technology) 150,000 350,000 300-425-322 Capital Improvement Plan 5,000 30,000 300-425-730 Improvements (Entrance Signs) 0 300-425-742 Vehicles 14,323 14,000 Total Capital 73,948 14,323 334,000 2,410,000 Revenues less Expenditures -71,805 -5,843 -314,000 -2,380,000 300-390-500 Transfer from General Fund 800,000 776,830 1,140,000 400,000 Fund Balance July 1 0 728,195 1,499,182 2,325,182 Fund Balance June 30 728,195 1,499,182 2,325,182 345,182 Specific projects included in the capital expenditures line items are: If Lyon County proceeds with plans for a regional animal shelter facility, the City may benefit from contributing toward the costs of constructing the facility. The Fund segregates $30,000 in the budget for potential contribution toward a regional animal shelter facility. Phase I – Expansion of City Hall (needs assessment, site selection, preliminary design, coordination of public meetings, identification of construction funding, identification of operation and maintenance funding, and potential implementation schedule.). Then proceed to design and construction. Capital Improvement Plan: Multi-disciplinary project to create a comprehensive capital improvement plan for the city, emphasizing street improvements. Technology: The City recently completed a multi-year budget for technology development in the city. This project includes communication systems, security systems, 96 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 web site development, and homeland security issues. In FY05, the City intends to implement the first phase of the multi-year technology plan, including improving a room dedicated to computer, phone, and technology equipment, installing a new phone system, upgrading the local area network, providing disaster recovery, implementing integrated systems applications, developing a web site, participating in an emergency operations center, implementing homeland security plans, implementing video recording and conferencing, and planning records storage and retrieval systems. The remaining amounts in the fund will accumulate for future capital replacements. 97 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 (This page intentionally left blank) 98 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Enterprise Funds Enterprise funds are used to account for the revenues earned, expenses incurred, and net income for businesses operated by the City of Fernley. The businesses are financed from fees paid by users of the services. The City of Fernley maintains the following enterprise funds: Fernley Water Enterprise Fund: The City of Fernley provides water services to certain customers within the City. This fund is used to account for the operations of the water utility. Fernley Sewer Enterprise Fund: The City of Fernley provides sewer services to certain customers within the City. This fund is used to account for the operations of the sewer utility. Fernley Non-Potable Water Enterprise Fund: The City of Fernley intends to provide non-potable water to certain customers within the City for landscaping and irrigation to conserve potable water for drinking and inside the home use. 99 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Water Utility Fund Organizational Chart: Voters of Fernley Mayor/City Council City Manager Public Works Director (Operations) City Treasurer (Billing) Business Office Administrator Office Asst Public Works Superintendent Sr. Office Assistant Public Works Supervisor Office Assistant Mechanic Public Works Worker WWTP Operator Water Enterprise Fund FY2004/2005 Expenditures Salaries and Wages, $345,800 , 13% Capital, $260,000 , 9% Interest, $27,138 , 1% Payroll Taxes and Benefits, $181,100 , 7% Depreciation, $680,000 , 25% Operating Expenses, $1,260,000 , 45% 100 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Description: The water utility fund exists to provide safe drinking water to customers within the utility service area. The largest issue facing the water utility is the new regulations regarding arsenic levels allowed in water. The City currently does not provide for treatment of water, other than disinfection with chlorine, because of the good quality of water from the groundwater aquifer. Unfortunately, the standards for water quality will be much more stringent when proposed regulations are implemented in March 2006. The City is beginning to prepare for implementation of the new regulations because of the significant impact the new regulations will have on the operations of the water utility. The new regulations will require the City to construct and operate new treatment plants to treat water to the new standards. Many water utilities in Nevada fought the new standards because they felt that the science behind the new standards was flawed. However, the standards will be implemented and the City will have to comply with the new standards. This will result in a fundamental change in the operations because of the necessity to construct and pay for the operation and maintenance of the new facilities. The City is investigating and applying for financial assistance to implement the unfunded mandate, but user rates will eventually need to be increased to pay for a portion of the unfunded mandate. Growth The number of customers served has increased significantly in recent years. Approximately 3,000 customers were on the city water system when the City incorporated on July 1, 2001. The number of customers on the system was 4,980 on June 30, 2004, a 66% increase over three years. The following chart shows the number of new connections to the water system since July 1, 2001, including estimates for FY05 and FY06. The number of customer on the system is projected to be 7,680 by June 30, 2006. Water System New Connections [PHONE REDACTED] 1200 1500 0 500 1000 1500 2000 FY02 FY03 FY04 FY05 FY06 (est) Fiscal Year # of Connections The City has been able to accommodate the growth in the system through requiring developers to build appropriate infrastructure for the specific development, through 101 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 requirements for dedication of water rights or payments in lieu of water rights, and through imposition of connection and other fees. The City has incurred capital expenditures to drill new wells and improve existing wells to provide an adequate supply of water for the development. Rate Increases The City is currently conducting a rate analysis and increases in user rates will be necessary to fund current cash operating costs as well as to provide funding for future capital replacements. The enterprise fund is meeting its current direct operating costs through existing use fees, however, the current rates do not fully provide for the projected replacement costs of the plant and equipment. The enterprise fund has collected a substantial amount from connection fees to fund expansions needed to accommodate development, however, these rates will also need to be increased because of the new plant and equipment needed to comply with arsenic regulations and other plant expansions. Rate increases have not been factored into the budget because they have not yet been implemented. Capital Improvement Projects The following capital improvement projects are included in the FY06 budget: Water Utility Enterprise Fund Arsenic Pilot Plant at Well TBA 10,000 $ Wellhead Protection Program 150,000 $ NE Booster 4-Way Valve Replacement 50,000 $ Surface Water Treatment Pilot Plant and Study 50,000 $ Subtotal Water Utility Fund 260,000 $ Significant Expenditures and Staffing Changes: No new positions were added in the Public Works Department in the FY06 Budget. The Administrative Services Department performs the billing function and collects fees from developers for charges related to water service. Staff was added in the Administrative Services Department to handle the additional volume and accounting required for the increased activity. Staffing Levels and Cost Allocation: The Water Utility enterprise fund includes the following personnel allocated at the noted percentages, including the Administrative Services Department (ASD): Position FTE % Allocated FTE Mayor 1.00 5% .05 City Council (5 Members) 5.00 5% .25 City Manager 1.00 5% .05 Senior Office Asst (CM Office) 1.00 5% .05 City Clerk 1.00 5% .05 Deputy City Clerk 1.00 5% .05 102 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Position FTE % Allocated FTE Office Assistant II (City Clerk’s Office) 1.10 5% .06 City Treasurer/Adm Serv Director 1.00 30% .30 Deputy City Treasurer 1.00 33% .33 Business Office Administrator 1.00 30% .30 Senior Office Assistant (ASD) 1.00 33% .33 Senior Office Assistant(ASD) 1.00 20% .20 Senior Office Assistant (ASD) 1.00 30% .30 Office Assistant (ASD) 1.00 45% .45 Office Assistant (ASD) 1.00 45% .45 Office Assistant (ASD) 1.00 5% .05 Public Works Director 1.00 40% .40 Public Works Field Superintendent 1.00 40% .40 Public Works Supervisor 1.00 40% .40 Office Assistant (Public Works) 1.00 33% .33 Mechanic 1.00 40% .40 WWTP Operator 1.00 20% .20 Public Works Worker (OIT) 1.00 20% .20 Public Works Worker (6 positions) 6.00 50% 3.00 Driver/Clerk 1.00 20% .20 34.10 8.80 Goals and Objectives: Goal: To provide safe adequate water supply and distribution to the City of Fernley water customers in the most efficient and cost effective manner as fiscally practical Objective To construct new water storage tank for adequate storage and transfer of water to needed areas for improved system delivery capabilities and maintain system pressure equalization. Task Coordinate the design with the engineering team to incorporate future needs and existing conditions. Task Review the existing conditions and prior engineering reports to determine the size and location of the tank. Task Design the modifications and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. Objective To install water booster pumping station to efficiently deliver water to new storage site(s). Task Coordinate the design with the engineering team to implement the pumping station design. Task Determine the characteristics of the design. Task Design the pumping equipment and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. 103 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Task Test the facility and place it into service. Objective To install water distribution and transmission mains for adequate transfer of water to needed areas for improved system delivery capabilities and storage sites. Task Coordinate the design with the engineering team to incorporate future needs and existing conditions. Task Review the existing conditions and prior engineering reports to determine the size and alignment of pipelines. Task Design the pipeline alignments and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. Objective To equip new production wells with pumping equipment. Task Coordinate the design with the engineering team to implement the pumping station design. Task Review the testing reports and determine the characteristics of the design. Task Design the pumping equipment and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. Objective To incorporate modeling and GIS mapping for water and utility system planning and upgrading of the City’s water system. Task Coordinate the design parameters with the engineering team. Task Review the existing conditions and prior engineering reports to determine the extent of the modeling and GIS mapping. Task Develop useable reports and mapping for future planning. Objective To construct new facilities to expand the water distribution system to serve new public facilities. Task Work with other City departments to accommodate construction of new public facilities. Objective To utilize City of Fernley surface water rights as part of expanding water production by examining surface water treatment options via surface water treatment plant. Task Coordinate the design with engineering team to incorporate future needs and existing conditions Task Construct and review results of surface water treatment pilot plant 104 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The cash flow statement for the water utility follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget CASH FLOW STATEMENT Cash Received from Customers 1,491,003 1,814,697 2,053,000 2,373,000 Service & Supplies -786,286 -837,145 -1,102,273 -1,260,000 Wages & Benefits -367,055 -423,879 -516,900 -526,900 Non-Operating Revenues 23,236 37,142 30,000 25,000 Cash from Operations 360,898 590,815 463,827 611,100 Proceeds from Grants 50,000 233,914 Cash Received from Other Funds -24,002 Cash Advances to Other Funds Intergovernmental Transfer -800,000 Interest Paid on Debt -57,104 -46,351 -33,013 -27,138 Interest Income 44,174 43,321 100,000 45,000 Principal Payments on Long Term Debt -125,000 -128,546 -135,001 -135,000 Capital Contributions 975,831 1,419,780 1,765,000 1,283,914 Developer Oversize Agreement 103,907 154,858 In Lieu Of Water Rights Fees 319,040 722,743 500,000 500,000 Grants for Construction 1,754 Acquisition of Assets & Projects -470,402 -763,440 -2,388,800 -260,000 Increase (Decrease) in Cash 1,153,098 1,969,178 322,013 1,451,790 Cash & Equivalents July 1 3,340,204 4,493,302 6,462,480 6,784,493 Cash & Equivalents June 30 4,493,302 6,462,480 6,784,493 8,236,283 105 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The summarized income statement for the water utility follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget SUMMARY INCOME STATEMENT Operating Revenues: 510-370-100 Water Use Fees 1,342,977 1,555,133 1,680,000 2,000,000 510-370-300 Material & Labor Charges 165,726 239,297 373,000 373,000 510-370-400 Engineer Review Fees 200 Operating Revenues 1,508,903 1,794,430 2,053,000 2,373,000 Operating Expenses: Salaries, Wages & Benefits 366,636 425,250 516,900 526,900 Service & Supplies 782,056 911,609 1,102,273 1,260,000 Depreciation 340,813 649,691 662,400 680,000 Total Operating Expenses 1,489,505 1,986,550 2,281,573 2,466,900 Operating Income or Loss 19,398 -192,120 -228,573 -93,900 Non-Operating Revenues & Expenses 510-380-100 Interest Income 43,024 44,368 100,000 45,000 510-800-860 Interest Expense -77,096 -49,096 -33,013 -27,138 510-380-900 Miscellaneous Income 23,236 37,142 30,000 25,000 510-370-400 Engineer Review Fees 510-370-500 Assessment Fees 0 510-380-500 In Lieu of Water Rights Fees 319,040 722,743 500,000 500,000 Intergovernmental Transfer Loss on Disposition of Assets Total Non-Operating Income & Expenses 308,204 755,157 596,987 542,862 Capital Contributions In: 510-395-900 Developer Contribution-Donner Trails 103,907 132,920 200,000 200,000 510-395-910 Customer Constributions-Hookups 868,331 1,529,900 1,500,000 1,500,000 510-395-920 Capital Grant BOR 1,754 50,000 233,914 510-395-930 Desert Lakes Reimbursements 103,508 15,000 150,000 510-395-934 Whippletree Assessments 2,346 510-395-940 Developer Donated Infrastructure 2,448,328 510-395-950 Developer Donated Water Rights 1,619,855 Intergovernmental Transfer -800,000 Other Grants Total Capital Contributions In 973,992 5,836,857 1,765,000 1,283,914 Net Income or Loss 1,301,594 6,399,894 2,133,414 1,732,876 Beginning Retained Earnings 3,079,411 3,079,411 3,763,340 5,896,754 Adjustment for Change in Capitalization -617,665 106 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The detail of expenditures in the water utility enterprise fund follows: City City Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget DETAIL OPERATING EXPENSES: 510-810-100 Regular Pay 208,755 235,316 264,000 266,700 510-810-120 Standby Pay 4,145 4,083 4,000 4,000 510-810-130 Overtime 17,867 19,914 22,000 22,000 510-810-140 Annual Leave Pay 13,241 15,446 15,000 20,000 510-810-150 Sick Leave Pay 9,288 9,657 15,000 18,500 510-810-160 Holiday Pay 8,362 8,990 17,000 14,600 510-810-170 Other Leave Pay 0 Contract Salaries Total Salaries and Wages 261,658 293,406 337,000 345,800 510-810-200 FICA 46 45 300 300 510-810-210 Medicare 2,564 2,767 4,900 5,000 510-810-220 Unemployment 878 1,062 3,400 3,500 510-810-230 Retirement-PERS 44,396 51,701 63,000 64,300 510-810-240 Group Insurance 46,354 64,437 90,600 96,800 510-810-250 Workers Compensation 10,684 11,698 16,900 10,400 510-810-260 Other Benefits 56 134 800 800 Total Employee Benefits 104,978 131,844 179,900 181,100 Total Salaries and Benefits 366,636 425,250 516,900 526,900 510-810-300 Professional Services-City Attorney 14,400 16,283 17,000 17,000 510-810-310 Professional Services-Legal 4,319 0 5,000 5,000 510-810-320 Professional Services-Engineering 28,773 28,851 52,000 52,000 510-810-322 Professional Services-Other 1,294 3,171 2,000 2,000 510-810-328 Professional Services-Auditing/Acct Asst 5,333 5,666 10,400 12,000 510-810-340 Tech Services-Lab Analysis 15,649 17,271 17,000 20,000 510-810-342 Tech Services-Other 3,457 5,364 5,000 7,000 510-810-410 Utility Service Water and Sewer 510-810-345 Research and Development 10,996 600 510-810-412 Utility Service Refuse 1,264 1,643 2,000 2,000 510-810-430 Service Repair and Maintenance 51,002 23,020 33,000 35,000 510-810-431 Road Maintenance (contract service) 0 6,000 510-810-441 Rental 12,464 11,938 16,000 18,000 510-810-520 Insurance 21,641 23,547 26,000 30,000 510-810-530 Communications 4,431 3,942 4,000 4,000 510-810-540 Advertising 1,025 502 1,500 3,500 510-810-550 Printing and Postage 9,651 16,468 15,000 20,900 510-810-580 Travel and Training 2,342 3,113 4,000 5,000 510-810-581 Dues and Memberships 596 729 1,000 1,500 510-810-585 Educational Assistance Program 0 0 0 1,000 510-810-600 General Supplies 56 134 510-810-601 Office Supplies 4,888 8,122 7,000 9,000 510-810-605 Minor Equipment 22,716 24,273 29,000 510-810-610 Automotive Supplies 6,066 4,452 15,000 36,000 510-810-614 Plant/Shop/Maint Supplies 116,508 57,192 75,000 108,000 510-810-615 Customer Hookup Supplies (see revenue) 199,347 274,280 373,000 373,000 510-810-616 Safety Supplies 736 854 3,000 3,000 510-810-618 Supplies-Well Head Protection Program 0 0 500 500 510-810-621 Natural Gas 2,471 2,393 3,000 4,000 510-810-622 Electricity 207,666 244,650 300,000 370,000 510-810-623 Propane 0 100 100 510-810-626 Gasoline 8,495 10,727 30,000 20,000 510-810-640 Books and Periodicals 533 761 500 500 510-810-642 Permits and Licenses 7,335 28,617 10,000 10,000 510-810-698 Water Rights Protection 39,318 94,603 50,000 55,000 510-810-699 Miscellaneous Expense 0 0 Total Service & Supplies 782,056 911,609 1,102,273 1,260,000 Other Expenses 510-810-800 Depreciation 340,813 649,691 662,400 680,000 510-800-860 Interest Expense 77,096 49,096 33,013 27,138 107 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Analysis: Use fees are projected to increase 19% due to an increase in the number of connections. Customer contributions for hookup (connection) fees and other development contributions are expected to increase by approximately 1,200 new hookups in FY06. Salaries and Wages increased due to change in the allocation of personnel costs and projected step increases for existing personnel. No annual salary adjustment increases for employees are reflected pending completion of collective bargaining and a classification compensation study. See the Capital Expenditure Summary for a listing of approved capital projects. 108 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Sewer Utility Fund Organizational Chart: Voters of Fernley Mayor/City Council City Manager Public Works Director (Operations) City Treasurer (Billing) Bus. Office Administrator Office Asst Public Works Superintendent Sr. Office Assistant Public Works Supervisor Office Assistant Mechanic Public Works Worker WWTP Operator Sewer Enterprise Fund FY2005/2006 Expenditures Capital, $3,825,000 , 70% Interest, $39,155 , 1% Salaries and Wages, $352,300 , 6% Payroll Tax and Benefits, $186,200 , 3% Depreciation, $580,000 , 10% Operating Expenses, $577,200 , 10% Description: The sewer utility exists to provide for safe effective disposal of sewage in compliance with regulatory standards. Activities accounted for in the sewer utility enterprise fund include maintenance of the sewer collection system and the wastewater treatment facility. The sewer collection system consists of lift stations and sewer mains. The wastewater 109 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 treatment facility consists of aerated ponds with discharge of treated effluent to either rapid infiltration basins or wetlands for wildlife refuge. Growth The number of customers served has increased significantly in recent years. Approximately 3,000 customers were on the city sewer system when the City incorporated on July 1, 2001. The number of customers on the system was 4,957 on June 30, 2004, a 65% increase over three years. The following chart shows the number of new connections to the sewer system since July 1, 2001, including estimates for FY05 and FY06. Sewer System New Connections [PHONE REDACTED] 1152 1200 0 200 400 [PHONE REDACTED] 1200 1400 FY02 FY03 FY04 FY05 FY06 (est) Fiscal Year # of Connections The City has been able to accommodate the growth in the system through requiring developers to build appropriate infrastructure for the specific development and through imposition of connection and other fees. The City has incurred capital expenditures to improve lift stations. The City will be expanding the sewer treatment facilities. Rate Increases The City is currently conducting a rate analysis and increases in user rates will be necessary to fund current cash operating costs as well as to provide funding for future capital replacements. The enterprise fund is meeting its current direct operating costs through existing use fees, however, the current rates do not fully provide for the projected replacement costs of the plant and equipment. The enterprise fund has collected a substantial amount from connection fees to fund expansions needed to accommodate development, however, these rates will also need to be increased because of the new plant and equipment needed to comply with arsenic regulations and other plant expansions. Rate increases have not been factored into the budget because they have not yet been implemented. 110 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Capital Expenditures: The following capital expenditures are included in the FY06 budget: Sewer Utility Enterprise Fund: East Sewer Treatment Plant Upgrade 3,350,000 $ Donner Trails Lift Station and Force Main Upgrade 150,000 $ Rolling Meadows Lift Station Generator and Automatic Transfer Switch75000 75,000 $ East WWTP Lift Station Grit Screw 150,000 $ East Sewer Plant Building 100,000 $ Subtotal Sewer Utility Enterprise Fund 3,825,000 $ Significant Expenditures and Staffing Changes: No positions were added in the Public Works Department in the FY06 Budget. Staffing Levels and Cost Allocation: The Sewer Utility enterprise fund includes the following personnel allocated at the noted percentages: Position FTE % Allocated FTE Mayor 1.00 5% .05 City Council (5 Members) 5.00 5% .25 City Manager 1.00 5% .05 Senior Office Asst (CM Office) 1.00 5% .05 City Clerk 1.00 5% .05 Deputy City Clerk 1.00 5% .05 Office Assistant II (City Clerk’s Office) 1.10 5% .06 City Treasurer/Adm Serv Director 1.00 30% .30 Deputy City Treasurer 1.00 33% .33 Business Office Administrator 1.00 30% .30 Senior Office Assistant (ASD) 1.00 33% .33 Senior Office Assistant(ASD) 1.00 20% .20 Senior Office Assistant (ASD) 1.00 30% .30 Office Assistant (ASD) 1.00 45% .45 Office Assistant (ASD) 1.00 45% .45 Office Assistant (ASD) 1.00 5% .05 Public Works Director 1.00 30% .30 Public Works Field Superintendent 1.00 30% .30 Public Works Supervisor 1.00 40% .40 Office Assistant (Public Works) 1.00 33% .33 Mechanic 1.00 50% .50 WWTP Operator 1.00 70% .70 Public Works Worker (OIT) 1.00 70% .70 Public Works Worker (6 positions) 6.00 40% 2.40 Driver/Clerk 1.00 20% .20 34.10 9.10 111 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Goals and Objectives: Goal: To provide uninterrupted adequate sewer collection system, treatment and disposal services to the City of Fernley sewer customers in the most efficient and cost effective manner as fiscally practical Objective To provide engineering and GIS services for planning and assessment of the existing collection system. Task Complete surveying, mapping, flow analysis and correlation, to allow model generation and analysis of the sewer collection infrastructure. Task Review the existing conditions of a portion of the City’s collection system through video inspections. Task Compile collected information into a database that can be set up in the GIS system and shared with the Sewer Model. Task Develop a Master Plan Report for planning and budgeting of system upgrades. Objective To complete upgrades of existing facilities to improve efficiencies and reduce operation and maintenance (O&M) costs. Task Develop plans and specifications and bid documents for planned upgrades to existing facilities as well as identifying costs associated with changing current City policy regarding ownership of sanitary sewer laterals. Task Advertise and solicit bids from contractors to complete planned work. Task Obtain authorization from City Council to proceed with construction. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Start up and verify operation of upgrades to facilities. Objective To construct new facilities to expand the sewer collection system to serve public facilities. Task Work with other City departments to accommodate construction of new public facilities. Objective To make repairs to existing sewer lift stations as part of an ongoing program to continually maintain and improve existing facilities. Task Assess facilities with greatest need for repairs. Task Select necessary repairs to appropriate facilities. Task Coordinate the repairs with City staff or outside contractors. Task Start up and monitor operations. 112 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The cash flow statement for the sewer utility enterprise fund follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget CASH FLOW STATEMENT Cash Received from Customers 1,006,052 1,235,540 1,251,000 1,500,500 Service & Supplies -318,823 -348,751 -599,000 -577,200 Wages & Benefits -369,540 -392,667 -522,100 -538,500 Miscellaneous Income 0 0 0 0 Cash from Operations 317,689 494,122 129,900 384,800 Proceeds from Grants Cash Received from Other Funds Cash Advanced to Other Funds Developer Agreements 25,149 Interest Expense -52,346 -48,122 -41,464 -39,155 Interest Income 40,722 41,386 100,000 45,000 Principal Payments on Long Term Debt -104,554 -108,778 -106,699 -115,436 Capital Contributions 1,215,925 1,798,158 1,877,500 1,945,000 Grants for Construction Acquisition of Assets & Projects -137,528 -103,614 -808,800 -3,825,000 Increase (Decrease) in Cash 1,279,908 2,098,301 1,150,437 -1,604,791 Cash & Equivalents July 1 3,095,077 4,374,985 6,473,286 7,623,723 Cash & Equivalents June 30 4,374,985 6,473,286 7,623,723 6,018,932 The summary income statement for the sewer utility enterprise fund follows: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget SUMMARY INCOME STATEMENT Operating Revenues: 520-370-100 Sewer Use Fees 991,355 1,187,062 1,250,000 1,500,000 520-370-300 Material and Labor Charges 33 150 1,000 500 Miscellaneous 834 Operating Revenues 992,222 1,187,212 1,251,000 1,500,500 Operating Expenses: Salaries, Wages & Benefits 368,221 395,249 522,100 538,500 Service & Supplies 298,945 363,948 599,000 577,200 Depreciation 352,891 542,244 561,900 580,000 Total Operating Expenses 1,020,057 1,301,441 1,683,000 1,695,700 Operating Income or Loss -27,835 -114,229 -432,000 -195,200 Non-Operating Revenues & Expenses 520-380-100 Interest Income 40,140 42,604 100,000 45,000 520-800-860 Interest Expense -50,255 -45,947 -41,464 -39,155 520-380-900 Miscellaneous Income 520-380-400 Loss on Disposition of Assets Total Non-Operating Income & Expenses -10,115 -3,343 58,536 5,845 Capital Contributions In: 520-395-900 Developer Contribution-Donner Trails 11,448 14,769 22,000 22,000 520-395-910 Customer Contributions-Hookups 1,096,977 1,907,505 1,848,000 1,848,000 520-395-930 Desert Lakes Reimbursement 30,000 7,500 75,000 520-395-932 Fremont Assessment 983 520-395-940 Developer Donated Infrastructure 2,317,013 Other Grants Total Capital Contributions In 1,108,425 4,270,270 1,877,500 1,945,000 Net Income or Loss 1,070,475 4,152,698 1,504,036 1,755,645 113 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The detail expenditures for the sewer enterprise fund follow: Account # Description FY02-03 Actual FY03-04 Actual FY04-05 Expected FY05-06 Budget DETAIL OPERATING EXPENSES: 520-810-100 Regular Pay 208,351 216,954 272,000 269,400 520-810-120 Standby Pay 4,567 3,736 5,400 5,400 520-810-130 Overtime 18,898 18,144 22,500 22,500 520-810-140 Annual Leave Pay 13,301 14,538 15,000 21,000 520-810-150 Sick Leave Pay 8,307 9,411 10,000 19,000 520-810-160 Holiday Pay 8,321 8,414 15,000 15,000 Total Salaries and Wages 261,745 271,197 339,900 352,300 520-810-200 FICA 46 45 100 0 520-810-210 Medicare 2,752 2,730 4,900 5,100 520-810-220 Unemployment 889 1,007 3,400 3,500 520-810-230 Retirement-PERS 44,126 47,443 63,200 65,400 520-810-240 Group Insurance 47,866 61,714 92,100 100,100 520-810-250 Workers Compensation 10,741 10,979 17,000 10,600 520-810-260 Other Benefits 56 134 1,500 1,500 Total Employee Benefits 106,476 124,052 182,200 186,200 Total Salaries and Benefits 368,221 395,249 522,100 538,500 520-810-300 Professional Services-City Attorney 14,400 17,007 17,000 17,000 520-810-310 Professional Services-Legal 2,463 0 5,000 5,000 520-810-320 Professional Services-Engineering 37,185 63,188 182,000 120,000 520-810-322 Professional Services-Other 1,109 4,114 2,000 2,000 520-810-328 Professional Services-Auditing/Acct Asst 5,334 5,666 10,400 12,000 520-810-340 Tech Services-Lab Analysis 8,153 9,551 12,000 15,000 520-810-342 Tech Services-Other 2,339 3,214 10,000 10,000 520-810-412 Utility Service Refuse 1,180 1,460 2,000 2,000 520-810-426 Contract-Sewer Cleaning & Inspection 0 0 5,000 30,000 520-810-430 Service Repair and Maintenance 44,263 21,597 25,000 35,000 520-810-435 Equipment Rental 0 0 3,000 520-810-441 Rental 11,964 11,438 15,000 15,000 520-810-520 Insurance 21,141 24,524 26,000 50,000 520-810-530 Communications 4,819 4,222 4,000 4,500 520-810-540 Advertising 76 371 2,500 2,500 520-810-550 Printing and Postage 8,079 14,616 15,000 17,800 520-810-580 Travel and Training 1,122 2,305 4,000 4,000 520-810-581 Dues and Memberships 0 0 1,000 1,500 520-810-585 Educational Assistance Program 0 0 0 1,000 520-810-600 General Supplies 67 0 0 0 520-810-601 Office Supplies 4,134 5,936 7,000 10,000 520-810-605 Minor Equipment 13,064 8,200 10,000 520-810-610 Autmotive Supplies 4,357 2,288 10,000 17,000 520-810-614 Plant/Shop/Maint Supplies 51,191 42,699 43,200 63,200 520-810-616 Safety Supplies 736 878 3,000 3,000 520-810-621 Natural Gas 2,477 2,406 4,000 4,000 520-810-622 Electricity 64,220 102,044 154,000 98,000 520-810-623 Propane 48 486 200 200 520-810-626 Gasoline 7,799 10,788 13,000 12,000 520-810-640 Books and Periodicals 88 0 500 500 520-810-642 Permits and Licenses 201 86 15,000 15,000 520-810-699 Miscellaneous Expense 0 0 Total Service & Supplies 298,945 363,948 599,000 577,200 520-810-800 Depreciation 352,891 542,244 561,900 580,000 520-800-860 Interest 50,255 45,950 41,464 39,155 Total Expenses 1,070,312 1,347,391 1,724,464 1,734,855 114 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Analysis: Use fees are projected to increase 20% due to an increase in the number of connections. Customer contributions for hookup (connection) fees and other development contributions are expected to increase by approximately 1,200 new hookups in FY06. Salaries and Wages increased due to a change in allocation of personnel costs to the sewer function and projected step increases for existing personnel. No annual salary adjustment increases for employees are included in the budget pending collective bargaining agreements and completion of an employee classification and compensation study. See the Capital Expenditure Summary for a full list of capital expenditures. 115 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Non-Potable Water Utility Fund Organizational Chart: Voters of Fernley Mayor/City Council City Manager Public Works Director (Operations) City Treasurer (Billing) Bus. Office Administrator Office Asst Public Works Superintendent Sr. Office Assistant Public Works Supervisor Office Assistant Public Works Worker Mechanic WWTP Operator Description: The Non-potable water utility exists to account for the construction of infrastructure and subsequent operations and maintenance costs for an alternative water system to provide non-potable water for landscaping and irrigations. The use of non-potable water will result in conservation of treated water and lower costs to customers (versus using potable water for landscaping and irrigation). Rates The City is currently conducting a rate analysis and will establish user rates necessary to fund current cash operating costs as well as to provide funding for future capital replacements. The City currently collects $1,300 for each new home in defined areas for use in planning and constructing the non-potable water delivery system. In addition, developers are required to put in “purple pipe” mains and laterals to each home for delivery of non-potable water when the City completes infrastructure. 116 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Capital Expenditures: The following capital expenditures are included in the FY06 budget: Non-Potable Water Utility Enterprise Fund Alternate Water Distribution System million transfer from Water Fund) 1,400,000 $ Subtotal Non-Water Utility Fund 1,400,000 $ Significant Expenditures and Staffing Changes: The City intends to construct an alternative water distribution center near the Truckee Canal. The construction of the center will allow the City to utilize surface water rights which will increase the City’s water production capacity. While the City plans to construct the distribution center in FY2005/2006, the necessary infrastructure to reach current “purple pipe” subdivisions will not occur until FY2006/2007. As a result, there are no current operations and maintenance costs associated with this capital improvement. Future operations and maintenance costs will be paid for through user fees. Staffing Levels and Cost Allocation: No staff costs are currently allocated to this fund. Staff will be allocated when the program is defined further and the assets for the program are constructed. Goals and Objectives: Goal: To provide a safe adequate alternative water supply and distribution to the City of Fernley water customers in the most efficient and cost effective manner as fiscally practical Objective To utilize the City of Fernley surface water rights as part of expanding water production by constructing alternate water distribution center. Task Coordinate the design with the engineering team to incorporate future needs and existing conditions Task Review the existing conditions and prior engineering reports to determine the size and alignment of infrastructure. Task Design the infrastructure and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. 117 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 The cash flow statement for the non-potable water utility enterprise fund follows: Account # Description FY03-04 Actual FY04-05 Expected FY05-06 Budget CASH FLOW STATEMENT Cash Received from Customers 0 0 Service & Supplies 0 0 Wages & Benefits 0 0 Miscellaneous Income 0 0 Cash from Operations 0 0 0 Proceeds from Grants Cash Received from Other Funds Cash Advanced to Other Funds Developer Agreements Intergovernmental Transfers 800,000 Interest Expense Interest Income 350 1,000 Principal Payments on Long Term Debt Capital Contributions 100,000 500,000 Grants for Construction Acquisition of Assets & Projects -1,400,000 Increase (Decrease) in Cash 0 100,350 -99,000 Cash & Equivalents July 1 0 100,350 The summary income statement for the non-potable water utility enterprise fund follows: Account # Description FY03-04 Actual FY04-05 Expected FY05-06 Budget SUMMARY INCOME STATEMENT Operating Revenues: 520-370-100 Sewer Use Fees 520-370-300 Material and Labor Charges Miscellaneous Operating Revenues 0 0 0 Operating Expenses: Salaries, Wages & Benefits 0 0 0 Service & Supplies 0 0 0 Depreciation 0 0 0 Total Operating Expenses 0 0 0 Operating Income or Loss 0 0 0 Non-Operating Revenues & Expenses 520-380-100 Interest Income 350 1,000 520-800-860 Interest Expense 520-380-900 Miscellaneous Income 520-380-400 Loss on Disposition of Assets Total Non-Operating Income & Expenses 0 350 1,000 Capital Contributions In: 520-395-910 Customer Contributions-Hookups 100,000 500,000 520-395-940 Developer Donated Infrastructure Intergovernmental Transfer 800,000 Other Grants 118 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Appendices The following appendices are included in this budget: Appendix A-Salary Schedule Appendix B-Authorized Personnel (Including Full Time Equivalents) Appendix C-Allocation Percentages for Personnel Costs Appendix D-Glossary of Key Terms Appendix E-Acronyms 119 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Appendix A – Salary Schedules The salary table for the City of Fernley effective July 1, 2004 (and July 1,2005 pending collective bargaining) is shown in the following table. The table includes 4.00% step increments and 2.50% range increments. Hourly Rates of Pay Annual Rates Range Classification A B C D E F G H I A I 98 9.04 9.40 9.78 10.17 10.58 11.00 11.44 11.90 12.38 18,803 25,750 99 9.27 9.64 10.03 10.43 10.85 11.28 11.73 12.20 12.69 19,282 26,395 100 9.51 9.89 10.29 10.70 11.13 11.58 12.04 12.52 13.02 19,781 27,082 101 9.75 10.14 10.54 10.96 11.40 11.86 12.33 12.83 13.34 20,280 27,747 102 9.99 10.39 10.81 11.24 11.69 12.16 12.64 13.15 13.67 20,779 28,434 103 Office Asst I/Driver-Clerk 10.24 10.65 11.08 11.52 11.98 12.46 12.96 13.48 14.02 21,299 29,162 104 10.50 10.92 11.35 11.81 12.28 12.77 13.28 13.81 14.37 21,840 29,890 105 10.76 11.19 11.64 12.10 12.59 13.09 13.61 14.16 14.73 22,381 30,638 106 11.03 11.47 11.93 12.41 12.90 13.42 13.95 14.51 15.09 22,942 31,387 107 Office Asst II/Dep Clerk/Maint. Worke 11.30 11.76 12.23 12.72 13.22 13.75 14.30 14.88 15.47 23,504 32,178 108 11.59 12.05 12.53 13.03 13.55 14.10 14.66 15.25 15.86 24,107 32,989 109 PW Worker I 11.88 12.35 12.85 13.36 13.89 14.45 15.03 15.63 16.25 24,710 33,800 110 12.17 12.66 13.17 13.69 14.24 14.81 15.40 16.02 16.66 25,314 34,653 111 Sr Off Asst/Dev Asst/PW Adm Coord 12.48 12.98 13.50 14.04 14.60 15.18 15.79 16.42 17.08 25,958 35,526 112 12.79 13.30 13.83 14.39 14.96 15.56 16.18 16.83 17.50 26,603 36,400 113 13.11 13.63 14.18 14.75 15.34 15.95 16.59 17.25 17.94 27,269 37,315 114 Bldg Insp I / Animal Control Off. 13.44 13.97 14.53 15.12 15.72 16.35 17.00 17.68 18.39 27,955 38,251 115 PW Wrk II/Maint Supervisor 13.77 14.32 14.90 15.49 16.11 16.76 17.43 18.12 18.85 28,642 39,208 116 14.12 14.68 15.27 15.88 16.52 17.18 17.86 18.58 19.32 29,370 40,186 117 14.47 15.05 15.65 16.28 16.93 17.61 18.31 19.04 19.80 30,098 41,184 118 WWTP Operator / Bldg Insp II 14.83 15.43 16.04 16.68 17.35 18.05 18.77 19.52 20.30 30,846 42,224 119 Bus Off Adm/PW Supervisor 15.20 15.81 16.44 17.10 17.79 18.50 19.24 20.01 20.81 31,616 43,285 120 Mechanic / Bldg Insp III(ck)/Asst Plan 15.58 16.21 16.85 17.53 18.23 18.96 19.72 20.51 21.33 32,406 44,366 121 15.97 16.61 17.28 17.97 18.69 19.43 20.21 21.02 21.86 33,218 45,469 122 Asst Engineer 16.37 17.03 17.71 18.42 19.15 19.92 20.72 21.54 22.41 34,050 46,613 123 16.78 17.45 18.15 18.88 19.63 20.42 21.23 22.08 22.97 34,902 47,778 124 Assoc Planner 17.20 17.89 18.60 19.35 20.12 20.93 21.76 22.64 23.54 35,776 48,963 125 17.63 18.34 19.07 19.83 20.63 21.45 22.31 23.20 24.13 36,670 50,190 126 Assoc Engineer 18.07 18.79 19.54 20.32 21.13 21.98 22.86 23.77 24.72 37,586 51,418 127 City Clerk 18.52 19.26 20.03 20.83 21.66 22.53 23.43 24.37 25.34 38,522 52,707 128 18.98 19.74 20.53 21.35 22.20 23.09 24.01 24.97 25.97 39,478 54,018 129 PW Field Superintendent 19.45 20.23 21.04 21.88 22.76 23.67 24.62 25.60 26.62 40,456 55,370 130 19.94 20.74 21.57 22.43 23.33 24.26 25.23 26.24 27.29 41,475 56,763 131 20.44 21.26 22.11 22.99 23.91 24.87 25.86 26.89 27.97 42,515 58,178 132 20.95 21.79 22.66 23.57 24.51 25.49 26.51 27.57 28.67 43,576 59,634 133 21.47 22.33 23.22 24.15 25.12 26.12 27.16 28.25 29.38 44,658 61,110 134 Asst CD Dir (Sr Planner)/Asst City Tre22.01 22.89 23.81 24.76 25.75 26.78 27.85 28.96 30.12 45,781 62,650 135 22.56 23.46 24.40 25.38 26.40 27.46 28.56 29.70 30.89 46,925 64,251 136 23.12 24.04 25.00 26.00 27.04 28.12 29.24 30.41 31.63 48,090 65,790 137 23.70 24.65 25.64 26.67 27.74 28.85 30.00 31.20 32.45 49,296 67,496 138 Parks & Rec Director 24.29 25.26 26.27 27.32 28.41 29.55 30.73 31.96 33.24 50,523 69,139 139 24.90 25.90 26.94 28.02 29.14 30.31 31.52 32.78 34.09 51,792 70,907 140 25.52 26.54 27.60 28.70 29.85 31.04 32.28 33.57 34.91 53,082 72,613 141 Building Official/Plans Examiner 26.16 27.21 28.30 29.43 30.61 31.83 33.10 34.42 35.80 54,413 74,464 142 26.81 27.88 29.00 30.16 31.37 32.62 33.92 35.28 36.69 55,765 76,315 143 27.48 28.58 29.72 30.91 32.15 33.44 34.78 36.17 37.62 57,158 78,250 144 28.17 29.30 30.47 31.69 32.96 34.28 35.65 37.08 38.56 58,594 80,205 145 28.87 30.02 31.22 32.47 33.77 35.12 36.52 37.98 39.50 60,050 82,160 146 29.59 30.77 32.00 33.28 34.61 35.99 37.43 38.93 40.49 61,547 84,219 147 30.33 31.54 32.80 34.11 35.47 36.89 38.37 39.90 41.50 63,086 86,320 148 Comm Dev Dir./Treasurer/PW Dir. 31.09 32.33 33.62 34.96 36.36 37.81 39.32 40.89 42.53 64,667 88,462 120 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Appendix B – Authorized Personnel The following table shows the authorized positions for Fiscal Year 2005-2006 in terms of Full Time Equivalents (FTE). Department/Position FY02 FY03 FY04 FY05 FY06 ELECTED OFFICIALS: Mayor 1.00 1.00 1.00 1.00 1.00 City Council Members (5 Members) 5.00 5.00 5.00 5.00 5.00 Subtotal Elected Officials 6.00 6.00 6.00 6.00 6.00 MUNICIPAL COURT: Municipal Court Judge 0.20 0.20 0.40 0.40 0.40 Subtotal Judicial 0.20 0.20 0.40 0.40 0.40 OFFICE OF THE CITY MANAGER: City Manager 1.00 1.00 1.00 1.00 1.00 Senior Office Assistant 1.00 Subtotal Office of the City Manager 1.00 1.00 1.00 1.00 2.00 OFFICE OF THE CITY CLERK: City Clerk 1.00 1.00 1.00 1.00 1.00 Deputy City Clerk 1.00 1.00 Office Assistant II (regular part-time) 0.75 0.75 0.75 0.50 1.10 Office Assistant II (part-time) 0.10 0.50 0.98 0.49 0 Subtotal Office of the City Clerk 1.85 2.25 2.73 2.99 3.10 ADMINISTRATIVE SERVICES DEPARTMENT: Admin. Services Director (City Treasurer) 1.00 1.00 1.00 1.00 1.00 Deputy City Treasurer 1.00 Business Office Manager 1.00 1.00 1.00 1.00 1.00 Senior Office Assistant 1.00 1.00 1.00 3.00 3.00 Office Assistant II (Court Clerk) 1.00 1.00 1.00 1.00 Office Assistant I (regular part-time) 0.50 0.50 Office Assistant I (II) 2.00 2.00 2.00 2.00 2.00 Animal Control Officer 1.00 1.00 Animal Control Officer (regular part-time) 0.50 Office Assistant I (II) (part-time) 0.50 Subtotal Administrative Services Department 5.00 6.50 6.50 9.00 11.00 COMMUNITY DEVELOPMENT DEPARTMENT: Community Development Director 1.00 1.00 1.00 1.00 1.00 Senior Planner (Assistant Director) 1.00 Building Official 1.00 1.00 1.00 1.00 1.00 Office Assistant 1.00 1.00 1.00 2.00 2.00 Building Inspector 1.00 2.00 2.00 4.00 5.00 Senior Plans Examiner 1.00 Assistant/Associate Engineer 1.00 2.00 Assistant/Associate Planner 1.00 1.00 Development Assistant 1.00 1.00 1.00 1.00 Driver/Clerk 1.00 1.00 Subtotal Community Development Department 4.50 7.00 7.00 12.00 16.00 121 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Department/Position FY02 FY03 FY04 FY05 FY06 Parks and Recreation Department: Parks and Recreation Director 1.00 1.00 Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 Maintenance Worker 2.00 2.00 2.00 3.00 4.00 Maintenance Helper (3 seasonal) 1.47 1.47 1.47 1.47 Maintenance Helper (part time) 0.05 0.03 0.03 0.03 .03 Vector Control Supervisor 1.00 1.00 Vector Control Workers (3 seasonal) .90 Subtotal Parks and Recreation Department 3.50 4.50 4.50 7.50 9.40 PUBLIC WORKS DEPARTMENT: Public Works Director 1.00 1.00 1.00 1.00 1.00 Public Works Field Superintendent 1.00 1.00 1.00 1.00 1.00 Public Works Field Supervisor 1.00 1.00 1.00 1.00 Office Assistant II 1.00 1.00 1.00 Public Works Admin Coordinator 1.00 1.00 Office Assistant (part time) 0.49 Mechanic 1.00 1.00 1.00 1.00 1.00 Sr. WWTP Operator 1.00 1.00 1.00 WWTP Operator 1.00 1.00 Public Works Worker I (II) 1.00 1.00 1.00 7.00 7.00 Utility Worker I (II) 6.00 5.00 5.00 Subtotal Public Works Department 12.00 12.00 12.49 13.00 13.00 TOTAL 33.60 39.45 40.62 51.89 60.90 122 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Appendix C – Allocation Percentages for Personnel Range Position Admin. Finance Community Development Animal Services Parks Vector Control Streets Municipal Court Water Sewer Ord. 2001-007 Mayor / Council Members 90% 5% 5% Contract Municipal Court Judge 100% Contract City Manager 90% 5% 5% 111 Senior Office Assistant 90% 5% 5% 127 City Clerk 90% 5% 5% 107 Deputy City Clerk 90% 5% 5% 107 Office Assistant II (Clerk's Office) (PT) 90% 5% 5% 148 City Treasurer 30% 10% 30% 30% 129 Deputy City Treasurer 34% 33% 33% 119 Business Office Administrator 30% 10% 30% 30% 111 Senior Office Assistant 34% 33% 33% 111 Senior Office Assistant 20% 40% 20% 20% 111 Senior Office Assistant 30% 10% 30% 30% 103/107 Office Assistant 5% 85% 5% 5% 103/107 Office Assistant (2 positions) 8% 2% 45% 45% 114 Animal Control Officer 100% 114 Animal Control Officer (Part Time) 100% 103 Office Assistant (Part Time) 100% 144 Community Dev. Director 100% 134 Senior Planner (Asst Director) 100% 141 Building Official 100% 107 Office Assistant (2 positions) 100% 114/118/120 Building Inspector (5 positions) 100% 120 Senior Plans Examiner 100% 122/126 Assistant/Associate Engineer (2 positions) 100% 120/124 Assistant/Associate Planner 100% 111 Development Assistant 100% 103 Driver/Clerk 10% 50% 20% 20% 138 Parks Director 100% 115 Maintenance Supervisor 100% 107 Maintenance Worker (4 positions) 100% Fixed $7.62/hr. Maintenance Helpers (Part Time) 100% 119 Vector Control Supervisor 100% Fixed $10/Hr. Vector Control Seasonal Workers 100% Flat Public Works Director 30% 40% 30% 129 Public Works Field Superintendent 30% 40% 30% 119 Public Works Supervisor 20% 40% 40% 107 Office Assistant 34% 33% 33% 120 Mechanic 10% 40% 50% 118 WWTP Operator 10% 20% 70% 109/115 Public Works Worker (6 positions) 10% 50% 40% 109/115 Public Works Worker (OIT) 10% 20% 70% Full Time Equivalent (FTE) 10.09 1.99 15.50 2.00 7.51 1.89 2.04 1.99 8.58 9.10 60.69 Total FTE Total Number of Positions: Descriptions Positions FTE Elected Officials 6 6.00 Contract 1 0.40 Full Time Employees 50 50.00 Regular Part Time Employees 3 1.60 Part Time/Seasonal Employees 8 2.90 Total 68 60.90 123 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Appendix D – Glossary of Key Terms Accountability – The state of being obliged to explain one’s actions, to justify what one does. Accountability requires governments to answer to the citizenry – to justify the raising of public resources and the purpose for which they are used. Account Groups – Accounting entities used to establish control over and accountability for the government’s general fixed assets and the unmatured principal of its general long- term debt, including special assessment debt for which the government is obligated in some manner. Current authoritative literature provides for two such account groups: the general fixed assets account group (GFAAG) and the general long-term debt account group (GLTDAG). The long-term portions of claims, judgments, compensated absences and unfunded pension contributions not reported in proprietary or trust funds are also usually reported in the GLTDAG. Account groups are dissimilar to funds in that they are not used to account for sources, uses and balances of expendable available financial resources. Accounting System – The methods and records established to identify, assemble, analyze, classify, record and report a government’s transactions and to maintain accountability for the related assets and liabilities. Accounts Payable – A short-term liability account reflecting amounts owed to private persons or organizations for goods and services furnished to a government (but not including amounts due to other funds or other governments). Accounts Receivable – An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government (but not including amounts due from other funds or other governments). Accrual Basis – The recording of the financial effects on a government of transactions and other events and circumstances that have cash consequences for the government in the periods in which those transactions, events and circumstances occur, rather than only in the periods in which cash is received or paid by the government. Accrued Benefits – The amount of a pension plan participant’s benefit (whether or not vested) as of a specified date, determined in accordance with the terms of the pension plan and based on compensation (if applicable) and service to that date. Accrued Salaries and Wages Payable – A liability account reflecting salaries and wages earned by employees but not due until a later date. Accumulated Depreciation – A contra-asset account used to report the accumulation of periodic credits to reflect the expiration of the estimated service life of fixed assets. Ad Valorem Tax – A tax based on value a property tax). Adopted Budget – The resulting budget that has been approved by the City Council. 124 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Advance from Other Funds – A liability account used to record noncurrent portion of long-term debt owed by one fund to another fund within the same reporting entity. See Due to Other Funds and Interfund Receivable/Payable. Agency Fund – A fund normally used to account for assets held by a government as an agent for individuals, private organizations or other governments and/or other funds. Allocation – The distribution of available monies, personnel, and equipment among various city departments or offices. Allowance for Uncollectibles – A contra-asset valuation account used to indicate the portion of a receivable not expected to be collected. Amortization – the portion of the cost of a limited-life or intangible asset charged as an expense during a particular period. The reduction of debt by regular payments of principal and interest sufficient to retire the debt to maturity. Amount to be Provided – An “other debit” account in the GLTDAG representing the amount to be provided from taxes, special assessments or other general revenues to retire outstanding general long-term liabilities. Annual Budget – A budget applicable to a single fiscal year. Annual Financial Report – A financial report applicable to a single fiscal year. Appropriated Budget – The expenditure authority created by the appropriation bills or ordinances, which are signed into law, and the related estimated revenues. The appropriated budget would include all reserves, transfers, allocations, supplemental appropriations and other legally authorized legislative and executive changes. Appropriation – A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation usually is limited in amount and time it may be expended. Appropriation Account – A budgetary account set up to record spending authorizations for specific purposes. The account is credited with the original appropriation and any supplemental appropriation and is charged with expenditures and encumbrances. Asset – a probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events. Audit – A systematic collection of sufficient, competent evidential matter needed to attest to the fairness of management’s assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out is responsibilities. The auditor obtains this evidential matter through inspection, observation, inquiries and confirmations with third parties. 125 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 See Internal Auditing, Financial Audit, Single Audit, Performance Audit, Pre-Audit and Post-Audit. Audit Committee – A group of individuals, selected by the governing body, having specific responsibility for addressing all issues related to the external financial audit. Ideally, the audit committees form a direct communication link between the auditor and the governing body; therefore, the majority of the committee’s members normally would be expected not to have management responsibilities within the entity under audit. Audit Finding – In the context of a financial audit, a weakness in internal controls or an instance of noncompliance with applicable laws and regulations that is presented in the audit report in conformity with GAGAS. A typical audit finding is composed of a statement of the conditions (i.e. weakness or instance on noncompliance) and the criterion or criteria used t define it, and explanation of the cause of the condition, a discussion of its results and recommendations for improvement. Findings ordinarily are presented together with a response from management that states management’s concurrence or non-concurrence with each finding and its plan for corrective action. Audit Management – The process used to procure auditing services (See Audit Procurement), to monitor the performance of the auditor and to ensure the satisfactory resolution of issues raised in the audit. Audit Procurement – The process used to obtain auditing services from independent public accountants. Audit Program – A detailed outline of the work to be done and the procedures to be followed in any given audit. Auditor’s Report – In the context of a financial audit, a statement by the auditor describing the scope of the audit and auditing standards applied in the examination, and setting forth the auditor’s opinion on the fairness of presentation of the financial information in conformity with GAAP or some other comprehensive basis of accounting. Audit Resolution – The process whereby corrective action is planned, implemented and monitored to remedy weakness discovered and reported in conjunction. Audit Scope – In the context of a financial audit, the focus of audit testing as well as the reference point used by auditors when evaluating the results of audit tests or otherwise exercising their professional judgment. The minimum acceptable audit scope for government would result in an opinion on the combined general purpose) financial statements, with each fund type and account group considered separately when applying materiality evaluations. Balance Sheet – The financial statement disclosing the assets, liabilities and equity of an entity at a specified date in conformity with GAAP. 126 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Basic Financial Statements – Those financial statements, including notes thereto, necessary for the fair presentation of the financial position and results of operations of an entity in conformity with GAAP. The basic financial statements include a balance sheet, an “all-inclusive” operating statement, a budget comparison statement (for all governmental funds for which annual appropriated budgets are adopted), and a statement of changes in financial position (for proprietary funds, pension trust funds, and nonexpendable trust funds). Basis of Accounting – A term used to refer to when revenues, expenditures, expenses, and transfers – and the related assets and liabilities – are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement, on either the cash or accrual method. Bond – A written promise to pay a specified sum of money (principal) of face value at a specified future date (maturity date) along with periodic interest paid at a specified percentage (interest rate) of the principal. Bonds are typically used for long-term debt. Bond Anticipation Notes – Short-term interest bearing notes issued in anticipation of bonds to be issued at a later date. Bond Discount – The difference between the present value and the face amount of bonds when the former is less than the latter. In common usage, the term also often includes issuance costs withheld from the bond proceeds by the underwriter. Bond Indenture – A formal agreement, also called a deed of trust, between an issuer of bonds and the bondholder. Bond Ordinance or Resolution – An ordinance or resolution authorizing a bond issue. Bond Premium – The difference between the present value and the face amount of bonds when the former is greater than the latter. Book Value – Value as shown by the books of account. In the case of assets subject to reduction by valuation allowances, book value refers to cost or stated value less the appropriate allowance. Sometimes a distinction is made between gross book value and net book value, the former designating value before deduction of related allowances and the latter the value after their deduction. In the absence of any modifiers, however, book value is understood to be synonymous with net book value. Budget – A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Budgetary Accounts – Accounts used to enter the formally adopted annual operating budget into the general ledger as part of the management control technique of formal budgetary integration. 127 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Budget Calendar – The schedule of key dates or milestones that a government follows in preparation and adoption of the budget. Budgetary Control – The control or management of a government or enterprise in accordance with an approved budget to keep expenditures within the limitations of available appropriations and available revenues. Budget Document – The instrument used by the City Manager and/or Budget Director to present a Comprehensive Financial Program to the Mayor and City Council and general public. This document serves as a Financial Plan, a policy statement for current and future services, and a management tool for reporting the City’s goals and objectives, and a medium for communicating the Council’s plan, the City’s organization structure and service priorities to the public. The budget document usually consists of three parts. The first part contains a message from the City Manager, together with a summary of proposed expenditures and the means of financing them. The second consists of schedules supporting the summary. These schedules show in detail the past years’ actual revenues, expenditures and other data used in making estimates. The third part is composed of drafts of the appropriation, revenue and borrowing measures necessary to put the budget into effect. Budget Message – A general discussion of the proposed budget as presented in writing by the City Manager to the Mayor and Council. The budget message should contain an explanation of the principal budget items, an outline of the government’s experience during the past period and its financial status at the time of the message, and recommendations regarding the financial policy for the coming period. Capital Assets – See Fixed Assets. Capital Budget – A plan of proposed capital expenditures and the means of financing them. Capital Expenditures – Expenditures resulting in the acquisition of or addition to the government’s general fixed assets. Capital Improvement Program (CIP) – A five year plan of capital expenditures and the proposed means of financing the expenditures. A plan for capital expenditures to be incurred each year over a fixed period of years setting forth each capital project, the duration of the project and the amount to be expended each year in financing those projects. Capital Projects Fund – A fund created to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). Carrying Amount – the amount at which assets and liabilities are reported in the financial statements. Carrying amount also is known as book value. 128 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Cash Basis – A basis of accounting under which transactions are recognized only when cash is received or disbursed. Cash Flow Budget – A projection of the cash receipts and disbursements anticipated during a given period. Certified Public Accountant (CPA) – An accountant who has met all the statutory and licensing requirements of a given state for use of that designation. All U.S. states require accountants, at a minimum, to complete successfully a uniform national examination before being allowed to designate themselves as CPAs. Combined Statements – Overview – See General Purpose Financial Statements. Combining Statements – By Fund Type – The second of the financial reporting pyramid’s three reporting levels containing GAAP financial statements. Such statements are presented for each fund type special revenue funds) for which the government maintains more than one fund. They include GAAP financial statements for each fund of a particular fund type in separate adjacent columns and a total column, which duplicates the column for that fund type in the combined statements-overview. Compensated Absences – Absences, such as vacation, illness, and holidays, for which it is expected employees will be paid. The term does not encompass severance or termination pay, postretirement benefits, deferred compensation or other long-term fringe benefits, such as group insurance and long-term disability pay. Compliance Auditing – Auditing for compliance with applicable laws and regulations. Tests of compliance with laws and regulations are substantive tests; therefore, the term “compliance auditing” should not be confused with the similar term “compliance testing” which usually refers to testing for compliance with internal control procedures. Comprehensive Annual Financial Report (CAFR) – The official annual report of a government. It includes the five combined financial statements in the combined statements – overview and their related notes (the “liftable” GPFS) and combining statements by fund type and individual fund and account group financial statements prepared in conformity with GAAP and organized into a financial reporting pyramid. It also includes supporting schedules necessary to demonstrate compliance with finance- related legal and contractual provisions, required supplementary information, extensive introductory material and a detailed statistical section. Every government reporting entity should prepare a CAFR. Continuing Appropriation – An appropriation that, once established, is automatically renewed without further legislative action, period after period, until altered or revoked. Contributed Capital - The permanent fund capital of a proprietary fund. Contributed capital forms one of two classifications of equity found on the balance sheet of a proprietary fund. Contributed capital is created when a residual equity transfer is received by a proprietary fund, when a general fixed asset is “transferred” to a proprietary 129 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 fund or when a grant is received that is externally restricted to capital acquisition or construction. Contribution restricted to capital acquisition and construction and fixed assets received from developers and customers, as well as amounts of tap fees in excess of related costs, also would be reported in this category. Control Procedures – The policies and procedures in addition to the control environment and accounting system that management has established to provide reasonable assurance that specific entity objectives will be achieved. Cost Accounting – The method of accounting that provides for the assembling and recording of all the elements of cost incurred to accomplish a purpose, to carry on an activity or operation, or to complete a unit of work or a specific job. Covered Payroll – All compensation that is paid to active employees covered by the PERS and on which contributions are based. Covered payroll also may be referred to a covered compensation. Credit Risk – The risk that a counter party to an investment transaction will not fulfill its obligations. Credit risk can be associated with the issuer of a security, with a financial institution holding deposits or with parties holding securities or collateral. Credit risk exposure can be affected by concentration of deposits or investments in any one investment type or with any one counter party. Debt Ratios – Comparative statistics illustrating the relation between the issue’s outstanding debt and such factors as its tax base, income, or population. These ratios often are used as part of the process of determining the credit rating of an issue, especially with general obligation bonds. Debt Service – Actual cost of interest and principal on bond maturities as well as interest costs of bond anticipation notes. Deferred Compensation Plans – Plans that offer employees the opportunity to defer receipt of a portion of their salary and the related liability for federal income taxes. Several sections of the Internal Revenue Code authorize certain state and local governments to provide deferred compensation plans for their employees. Deferred Maintenance – The act of not performing (deferring) maintenance at the time it should have been, or was scheduled to be, performed. Maintenance in this context means more than routine preventative maintenance and repairs. It also includes replacement of parts, periodic road resurfacing and other activities needed to maintain the fixed asset at its originally contemplated serviceability for its original estimated life. Deficit - The excess of an entity’s liabilities over its assets; the excess of expenditures over revenues during a single accounting period. 130 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Delinquent Taxes – Taxes remaining unpaid on and after the date to which a penalty for nonpayment is attached. Department – An organizational or budgetary unit established by City Code to carry out specified public services. Depreciation – Expiration in the service life of fixed assets, other than wasting assets, attributable to wear and tear, deterioration, action of the physical elements, inadequacy and obsolescence. The portion of the cost of a fixed asset, other than a wasting asset, charged as an expense during a particular period. In accounting for depreciation, the cost of fixed assets, less any salvage value, is prorated over the estimated service life of such an assets, and each period is charged with a portion of such cost. Through this process, the entire cost of the asset is ultimately charged off as an expense. Direct Expenses – Expenses specifically traceable to specific goods, services, units, programs, activities, or functions. Direct expenses differ from indirect expenses in that the latter cannot be specifically traced and so must be allocated on some systematic and reasonable basis. Division – An organizational unit composed of one or more responsibility centers and/or activities that perform like tasks within a city department. Due From Other Funds – An asset account used to indicate amounts owed to a particular fund by another fund for goods sold or services rendered. The account includes only short-term obligations on open account, not interfund loans. This account is used to record the position of each fund in the central treasury. Due To Other Funds – A liability account reflecting amounts owed by a particular fund to another funds for goods sold or services rendered. These amounts include only short- term obligations on open account, not interfund loans. This account is used to record the position of each fund in the central treasury. Encumbrance – Commitments related to unperformed (executory) contracts for goods or services. Used in budgeting, encumbrances are not GAAP expenditures or liabilities, but represent the estimated amount of expenditures ultimately to result if unperformed contracts in process are completed. An obligation in the form of a purchase order, contract, or salary commitment that is chargeable to an appropriation, or for which part of an appropriation is reserved. Endowment – Funds or property that are donated with either a temporary or permanent restriction as to the use of principal. Enterprise Fund – A fund established to account for operations that are financed and operated in a manner similar to private business enterprises. The intent is that the full costs of providing the goods or services be financed primarily through charges and fees thus removing the expenses from the tax rate. 131 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Entitlement – The amount of payment to which a state or local government is entitled pursuant to an allocation formula contained in applicable statutes. Equity of Accounts – Those accounts presenting the difference between assets and liabilities of the fund. Estimated Current Costs of Closure and Postclosure Care – The total current cost of equipment, facilities and services expected to result in disbursements near or after the date a municipal solid waste landfill stops accepting solid waste. Estimate Life – The expected economic useful life of an asset from the date placed in service to the projected retirement date. Expendable Trust Fund – A trust fund whose resources, including both principal and earnings may be expended. Expendable trust funds are accounted for in essentially the same manner as governmental funds. Expenditures – Decreases in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service and capital outlays, and intergovernmental grants, entitlements and shared revenues. Expenses – Outflows or other using up of assets or incurrence of liabilities (or a combination of both) from delivering or producing goods, rendering services or carrying out other activities that constitute the entity’s ongoing major or center operations. Federal Financial Assistance – For purposes of applying the provisions of the Single Audit Act of 1984 and OMB CircularA-128, Audits of State and Local Governments, assistance provided by a federal agency in the form of grants, contracts, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance, or direct appropriations. Federal financial assistance does not include direct federal cash assistance to individuals. Fiduciary Type Fund – The trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. Financial Reporting Pyramid – The plan of organization for the financial section of the CAFR/CUFR, as set forth in the 1987 Codification of Governmental Accounting and Financial Reporting Standards. The pyramid presents GAAP financial statements on three distinct and progressively more detailed reporting levels: combined statements – overview (the “liftable” GPFS/CUFS), combining statements – by fund type and individuals fund statements. Financing Plan – The estimate of revenues and their sources that will pay for the service programs outlined in the annual budget. 132 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Fiscal Year – A twelve-month period for which an organization plans the use of its funds. In the City of Fernley , the fiscal year is July 1 to June 30. Fixed Assets – Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include buildings, equipment, improvements other than buildings, and land. In the private sector, these assets are referred to most often as property, plant, and equipment. Fixed Budget – A budget setting forth dollar amounts that are not subject to change based on the volume of goods or services to be provided. Fixed Costs – Costs of providing goods or services that do not vary proportionately to the volume of goods or services provided insurance and contributions to retirement systems). Flexible Budget – A budget whose dollar amounts vary according to the volume of goods or services to be provided. Fund – A fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances, and changes therein, are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions or limitations. Fund Balance – The difference between fund assets and fund liabilities of governmental and similar trust funds. Fund Balance-Reserved for Inventories – An account used to segregate a portion of fund balance to indicate that inventories of supplies do not represent expendable available financial resources even though they are a component of net current assets. Fund Type – Any one of seven categories into which all funds are classified in governmental accounting. The seven fund types are: general, special revenue, debt service, capital projects, enterprise, internal service, and trust and agency. General Fixed Assets – Capital assets that are not assets of any fund, but of the governmental unit as a whole. Most often these assets arise from the expenditures of the financial resources of governmental funds. General Fixed Asset Account Group (GFAAG) - A self-balancing group of accounts established to account for fixed assets of a government not accounted for through specific proprietary funds or trust funds. General Fund – The fund used to account for all financial resources, except those required to be accounted for in another fund. 133 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 General Long Term Debt – Long-term debt expected to be repaid from governmental funds. General Long Term Debt Account Group (GLTDAG) – A self-balancing group of accounts established to account for the unmatured general long-term debt of a government. Generally Accepted Accounting Principles (GAAP) – Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. The primary authoritative body on the application of GAAP to state and local governments is the GASB. General Purpose Financial Statements (GPFS) – Five combined financial statements that, together with the accompanying notes, constitute the minimum financial reporting needed for fair presentation in conformity with GAAP. Goal – A desired outcome or end product, as well as a statement of purpose of an organization. Goals are usually broad in scope and rarely change from year to year. Governmental Accounting – The composite activity of analyzing, recording, summarizing, reporting and interpreting the financial transactions of governments. Governmental Accounting Standards Board (GASB) – The authoritative accounting and financial reporting standard-setting body for government entities. Governmental Fund Types – Funds used to account for the acquisition, use and balance of expendable financial resources and the related current liabilities except those accounted for in proprietary funds and fiduciary funds. In essence, these funds are accounting segregations of financial resources. Expendable assets are assigned to a particular governmental fund type according to the purposes for which they may or must be used. Current liabilities are assigned to the fund type from which they are to be paid. The difference between the assets and liabilities of governmental fund types is referred to as fund balance. The measurement focus of these fund types is on the determination of financial position and changes in financial positions (sources, uses and balances of financial resources), rather than on net income determination. The statement of revenues, expenditures and changes in fund balance is the primary governmental fund type operating statement. It may be supported or supplemented by more detailed schedules of revenues, expenditures, transfers and other changes in fund balance. Under GAAP, there are four governmental fund types: general, special revenue, debt service, and capital projects. 134 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Grant – A contribution of assets by one governmental unit or other organization to another. Typically, these contributions are made to local governments from the state and federal governments. Grants are usually made for specific purposes. Impact Fees – Fees charged to developers to cover, in whole or in part, the anticipated cost of improvement that will be necessary as a result of the development. Incurred-But-Not-Reported (IBNR) Claims/Losses – Claims for insured events that have occurred but have not yet been reported to the government entity, insurer or reinsurer as of the date of the financial statements. IBNR claims also may include expected future developments on claims already reported. Indirect Expense – See Overhead. Infrastructure Assets – Public domain fixed assets such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems and similar assets that are immovable and of value only to the government unit. Interfund Receivable/Payable – Short-term loans made by one fund to another, or the current portion of an advance to or from another fund. Interfund Transactions – Transactions between funds of the same governmental reporting entity. They include Quasi-external transactions, reimbursements, residual equity transfers, and operating transfers. Interfund Transfers – All interfund transactions except loans, quasi-external transactions, and reimbursements. Transfers can be classified as belonging to one of two major categories: Residual Equity Transfers or Operating Transfers. Internal Auditing – An independent appraisal of the diverse operations and controls within a governmental entity to determine whether acceptable policies and procedures are followed, established standards are met, resources are used efficiently and economically, and the organization’s objectives are being achieved. The term covers all forms of appraisal of activities undertaken by auditors working for and within the organization. Internal Control Structure – Policies and procedures established to provide reasonable assurance that specific government objectives will be achieved. Internal Service Fund – A fund used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a government, or to other governments, on a cost-reimbursement basis. Legal Level of Budgetary Control – The level at which spending in excess of budgeted amounts would be a violation of law. 135 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Level of Budgetary Control – One of three possible levels of budgetary control and authority to which organizations, programs, activities, and functions may be subject. These levels of budgetary control are appropriated budget, legally authorized nonappropriated budget review and approval process, which is outside the appropriated budget process, or nonbudgeted financial activities, which are not subject to the appropriated budget and the appropriation process or to any legally authorized nonappropriated budget review and approval process, but still are relevant for sound financial management and oversight. Levy – (Verb) to impose taxes, special assessments or service charges for the support of government activities. (Noun) The total amount of taxes, special assessments or service charges imposed by a government. Liability – Debt or other legal obligations arising out of transactions in the past that must be liquidated, renewed or refunded at some future date. Probable future sacrifices of economic benefits, arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. “Liftable” General Purpose Financial Statements (GPFS) – The GPFS designed to be “liftable” from the financial section of the CAFR for inclusion in official statements for securities offerings or for widespread distribution, along with an independent auditor’s opinion, to users requiring less detailed information than is contained in the full CAFR. In order to be “liftable”, the GPFS must include all disclosures necessary for their presentation in conformity with GAAP including certain specified disclosures related to individual funds. Liquidity – The ability to convert assets to cash quickly, without significant losses. Lump-Sum Appropriation – An appropriation made for a stated purpose, or for a named department, without specifying further the amounts that may be spent for specific activities or for particular objects of expenditures a lump-sum appropriation for the police department would not specify the amounts to be spent for uniform patrol, traffic control, etc., or for salaries and wages, materials and supplies, and travel). Maintenance – The act of keeping capital assets in a state of good repair. It includes preventative maintenance; normal periodic repairs; replacement of parts, structural components and so forth and other activities needed to maintain the assets so that it continues to provide normal services and achieves its optimum life. Market Risk – The risk that the market value of an investment, collateral protecting a deposit or securities underlying a repurchase agreement will decline. Market risk is affected by the length to maturity of a security, the need to liquidate a security before maturity, the extent to which collateral exceeds the amount invested and how often the amount of collateral is adjusted for changing market values. 136 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Measurement Focus – The accounting convention that determines which assets and which liabilities are included on a government’s balance sheet and where they are reported there, and whether an operating statement presents information on the flow of financial resources (revenues and expenditures) or information on the flow of economic resources (revenues and expenses). Mid-Year Review – A projection of current year expenditures that is completed after six months of activity in the fiscal year. Modified Accrual Basis – The accrual basis of accounting adapted to the governmental fund-type measurement focus. Under it, revenues and other financial resource increments are recognized when they become susceptible to accrual, that is when they are both “measurable” and “available to finance expenditures of the current period”. “Available” means collectible in the current period or soon enough thereafter to be used to pay liabilities of the current period. Basis of accounting for all governmental funds and expendable trust and agency funds under which revenues are recorded when they become measurable and available. Expenditures are recorded when the liability is incurred, except interest on general long-term obligations which is recorded when due. Municipal Solid Waste Landfill – A discrete area of land or an excavation that receives household waste. The term “municipal” does not indicate ownership. Net Income – Proprietary fund excess of operating revenues, nonoperating revenues and operating transfers in over operating expenses, nonoperating expenses and operating transfers out. Nonappropriated Budget – A financial plan for an organization, program, activity or function approved in a manner authorized by constitution, charter, statute or ordinance but not subject to appropriation and, therefore, outside the boundaries of the definition of appropriated budget. Nonoperating Expenses – Proprietary fund expenses not directly related to the fund’s primary activities (e.g. interest). Nonoperating Revenues – Proprietary fund revenues incidental to, or by-products of, the fund’s primary activities. Non-personnel expenditures – An expenditure group that includes supplies and materials, contractual services, communications and transportation expenses, and other miscellaneous expenses. Notes to the Financial Statements – The SSAP and other disclosures required for a fair presentation of the financial statements of a government in conformity with GAAP and not included on the face of the financial statements themselves. The notes to the financial statements are an integral part of the GPFS/CUFS. 137 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Objectives – Specific Statements describing what is to be achieved toward accomplishment of a stated goal including by how much and within what time frame. Operating Budget – Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled. The use of annual operating budgets is usually required by law. Even when not required by law, however, annual operating budgets are essential to sound financial management and should be adopted by every government. Operating Expenses – Proprietary fund expenses related directly to the fund’s primary activities. Operating Revenues – Proprietary fund revenues directly related to the fund’s primary activities. They consist primarily of user charges for goods and services. Operating Transfer – All interfund transfers other than residual equity transfers (e.g. legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended). Ordinance – A law set forth by a governmental authority; a municipal regulation. Other Financing Sources – Governmental fund general long-term debt proceeds, amounts equal to the present value of minimum lease payments arising from capital leases, proceeds from the sale of general fixed assets, and operating transfers in. Such amounts are classified separately from revenues on the governmental operating statement. Other Financing Uses – Governmental operating transfers out and the amount of refunding bond proceeds deposited with the escrow agent. Such amounts are classified separately from expenditures on the governmental operating statement. Overhead – Those elements of cost necessary in the production of a good or service which are not directly traceable to the product or service. Usually these costs relate to an object of expenditure that does not become an integral part of the finished product or service, such as rent, heat, light, supplies, management, accounting, and supervision. Performance Auditing – A systematic process of objectively obtaining and evaluating evidence regarding the performance of an organization, program, function, or activity. Evaluation is made in terms of its economy and efficiency of operations, effectiveness in achieving desired regulations, for the purpose of ascertaining the degree of correspondence between performance and established criteria and communicating the results to interested users. The performance audit function provides an independent, 138 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 third-party review of management’s performance and the degree to which the performance of the audited entity meets prestated expectations. Performance Measures – The units used to express the extent to which an activity or service meets the objective. More specifically, the performance measure or indicator documents the lever or quality of a service output. Perpetual Inventory – A system whereby the inventory of units of property at any date may be obtained directly from the records, without resorting to an actual physical count, for each item or group of items to be inventoried. This system provides an ongoing record of goods ordered, received and withdrawn and the balance on hand, in units and frequently also in value. Policy – A definite course of action adopted after a review of information and directed at the realization of goals. Post-Audit – An examination of financial transactions that have been completed or are in various stages of completion at the end of an accounting period. Pre-Audit – An examination of financial transactions that have been completed or are in various stages of completion at the end of an accounting period. Premium – The excess of the price of a security over its face value, excluding any amount of accrued interest bought or sold. Priority – A value that ranks goals and objectives in order of importance relative to one another. Procedure – A method used in carrying out a policy or plan of action. Program – Collections of work-related activities initiated to accomplish a desired end. Property, Plant & Equipment – Durable goods usually valued over $1,000 and having a useful life of more than one year. Proprietary Fund Types – Sometimes referred to as income determination or commercial-type funds, the classification used to account for a government’s ongoing organizations and activities that are similar to those often found in the private sector enterprise and internal service funds). All assets, liabilities, equities, revenues, expenses and transfers relating to the government’s business and quasi-business activities are accounted for through proprietary funds. The GAAP used are generally those applicable to similar businesses in the private sector and the measurement focus is on determination of net income, financial position and changes in financial position. However, where the GASB has issued pronouncement applications to those entities and activities, they should be guided by these pronouncements. Public Entity Risk Pool – A cooperative group of government entities joining together to finance an exposure, liability or risk. Risk may include property and liability, workers’ 139 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 compensation or employee health care. A pool may be a stand-alone entity or included as part of a larger governmental entity that acts as the pool’s sponsor. Purchase Order – A document authorizing the delivery of a specified merchandise or the rendering of certain services and the making of a charge for them. Qualified Opinion - An opinion stating that “except for” the effect of the matter to which the qualification relates, the financial statements present fairly the financial positions, results of operations and (when applicable) changes in financial position in conformity with GAAP. Such an opinion is expressed when a lack of sufficient, competent evidential matter or restrictions on the scope of the auditor’s examination have led the auditor to conclude that an unqualified opinion cannot be expressed, ore when the auditor believes, on the basis of his examination, that the financial statements contain a departure from GAAP, the effect of which is material, there has been a material change between periods in accounting principles or in the method of their application or there are significant uncertainties affecting the financial statements, and the auditor has decided not to express an adverse opinion or to disclaim an opinion. Quasi-External Transactions – Interfund transactions that would be treated as revenues, expenditures or expenses if they involved organizations external to the government unit payments in lieu of taxes from an enterprise fund to the general fund, internal service funds billings to departments, routine employer contributions to a pension trust fund and routine service charges for inspection, engineering, utilities or similar services provided by a department financed from one fund to a department financed from another fund). These transactions should be accounted for as revenues, expenditures or expenses in the funds involved. Ratings – In the context of bonds, normally an evaluation of creditworthiness performed by an independent rating service. Recoverable Expenditure – An expenditure that is made for or on behalf of another government, fund or department or for a private individual, firm or corporation that will subsequently be recovered in cash or its equivalent. Reimbursements – Repayments of amounts remitted on behalf of another party Interfund transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it but that properly apply to another fund an expenditure properly chargeable to a special revenue fund is initially made from the general fund, and is subsequently reimbursed). These transactions are recorded as expenditures or expenses (as appropriate) in the reimbursing fund and as reduction of expenditures or expenses in the fund reimbursed. Reinsurance – A transaction in which a reinsurer, for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer. However, the legal rights of the insured are not affected by the reinsurance transaction, and the insurance 140 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 enterprise issuing the insurance contract remains liable to the insured for payment of policy benefits. Reserved Fund Balance – Those portions of fund balance that are not appropriatable for expenditure or that are legally segregated for a specific future use. Residual Equity Transfers – Nonrecurring or nonroutine transfers of equity between funds contribution of enterprise fund or internal service fund capital by the general fund, subsequent return of all or part of such contribution to the general fund and transfer of residual balances of discontinued funds to the general fund). Retained Earnings – An equity account reflecting the accumulated earnings of an enterprise or internal service fund. Revenue Bonds – Bonds whose principal and interest are payable exclusively from earnings of an enterprise fund. In addition to a pledge of revenues, such bonds sometimes contain a mortgage on the enterprise fund’s property. Revenues – Increases in the net current assets of a government fund type from other than expenditure refunds and residual equity transfers. Also, general long-term debt proceeds and operating transfers are classified as “other financing sources” rather than revenues. Increases in the net total assets of a proprietary fund type from other than expense refunds, capital contributions and residual equity transfers. Also, operating transfers in are classified separately from revenues. Risk Management – All the ways and means used to avoid accidental loss or to reduce the consequence if it does occur. Salary-Related Benefits – Benefits and payments that are directly related to salary payments such as taxes, pension payments and employee insurance premiums. Self-Insurance – A term often used to describe the retention by an entity of a risk of loss arising out of the ownership of property or from some other cause, instead of transferring that risk to an independent third party through the purchase of an insurance policy. It is sometimes accompanied by the setting aside of assets to fund any related losses. Because no insurance is involved, the term self-insurance is a misnomer. Self-Supporting or Liquidating Debt - Debt obligations whose principal and interest are payable solely from the earnings of the enterprise fund whose constructions or improvements the bonds were originally issued. Shared Revenues – Revenues levied by one government but shared on a predetermined basis, often in proportion to the amount collected at the local level, with another government or class of governments. 141 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Single Audit – An audit performed in accordance with the Single Audit Act of 1984 and the Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. The Single Audit Act allows or requires a government (depending on the amount of federal assistance received) to have one audit performed to meet the needs of all federal grantor agencies. Special Revenue Fund – A fund used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditure for specified purposes. GAAP only require that use of special revenue funds when legally mandated. Statement of Cash Receipts and Disbursements – A financial presentation summarizing an entity’s cash transactions in an accounting period. This statement is not currently required by GAAP. Statement of Changes in Financial Position – A GAAP financial statement for proprietary and similar trust funds that summarizes all important aspects of a government’s financing and investing activities, regardless of whether cash or other elements of working capital are directly affected. Statement of Changes in Equity – The financial statement that reconciles the equity balances of an entity at the beginning and end of an accounting period in conformity with GAAP. It explains the relation between the operating statement and the balance sheet. Statements of changes in equity of government should be combined with operating statements into “all-inclusive” operating statement formats. Statement of Financial Position – See Balance Sheet. Statement of Revenues and Expenditures – The financial statement that is the government funds and expendable trust fund GAAP operating statement. It presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in an entity’s net current assets. Statement of changes in equity of governments should be combined with operating statements into “all-inclusive” operating statement formats. Submitted Budget – The proposed budget that has been approved by the City Manager and forwarded to the City Council for their approval. Summary of Significant Accounting Policies (SSAP) – A disclosure of accounting policies, required by GAAP, that should identify and describe the accounting principals followed by the reporting entity and the methods of applying those principles that materially affect the determination of financial position, changes in financial position or results of operations. In general, the disclosure should encompass important judgments as to the appropriateness of principles relating to the recognition of revenue and allocation of asset costs to current and future periods; in particular, it should encompass those accounting principles and methods that involve any of the following: a selection from existing acceptable alternatives, principles and methods peculiar to government 142 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 and unusual or innovative applications of accounting principles, including those peculiar to government. Sundry Expenses – An expenditure group that represents transfers, grant cash matched, grant subsidies, insurance payments and welfare expenditures. Supplemental Appropriation – Appropriation made by the City Council to cover expenditures that exceed the original appropriations. Tax Abatement – A complete or partial cancellation of a levy imposed by a government. Abatements usually apply to tax levies, special assessments and service charges. Tax Liens – Claims governments have upon properties until the taxes levied against them have been paid. This term is sometimes limited to those delinquent taxes the government has taken legal action to collect through the filing of liens. Traditional Budget – A term sometimes applied to the budget of a government wherein expenditures are based entirely or primarily on objects of expenditure. Trust and Agency Fund – One of seven fund types in governmental accounting. See Trust Funds and Agency Funds. Transfers In & Out – See Interfund Transfers and Operating Transfers. Unamortized Discounts on Bonds Sold – A contra-liability account used to reflect that portion of the face value of bonds exceeding the amount received from their sale (excluding amounts paid for accrued interest) which remains to be amortized over the remaining life of such bonds. Unamortized Premiums on Investments – An asset account used to reflect that portion of the excess of the amount paid for investments (excluding amounts paid for accrued interest) over their face value which remains to be amortized over the remaining life of such investments. Unencumbered Appropriation – That portion of an appropriation not yet expended or encumbered. Unqualified Opinion – An auditor’s opinion stating that the financial statements present fairly the financial position, results of operations and (when applicable) changes in financial position in conformity with GAAP (which include adequate disclosure). This conclusion may be expressed only when the auditor has formed such an opinion on the basis of an examination made in accordance with GAAS or GAGAS. 143 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Vested Benefit – A benefit for which the employer has an obligation to make payment even if an employee terminates; thus, the benefit is not contingent on an employee’s future service. Voucher – A written document that evidences the propriety of transactions and usually indicates the accounts in which they are to be recorded. Vouchers Payable – Liabilities for goods and services evidenced by vouchers that have been pre-audited and approved for payment but that have not been paid. Wasting Assets – Mines, timberlands, quarries, oil fields and similar assets that diminish in value by the removal of their contents. Work Order – A written order authorizing and directing the performance of a certain task and issued to the person who is to direct the work. Among the items of information included on the order are the nature and location of the job, specifications of the work to be performed and a job number, which is referred to in reporting the amount of labor, materials and equipment used. 144 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2005-2006 Appendix E – Acronyms ADA Americans with Disabilities Act Basic City County Relief Tax BLM Bureau of Land Management BOR Bureau of Reclamation CDBG Community Development Block Grant CIP Capital Improvement Program (Plan) COLA Cost of Living Adjustment CTX Consolidated Tax EA Environmental Assessment FEMA Federal Emergency Management Agency FTE Full Time Equivalent FYXX/ZZ or FYZZ Fiscal year beginning July 1, 20XX and Ending June 30, 20ZZ GAAP General Accepted Accounting Principles GAAS General Accepted Auditing Standards GASB Governmental Accounting Standards Board GFOA Government Finance Officers Association GIS Geographic Information System GST Government Services Tax ICC International Code Council ISO Insurance Services Office ITP In Town Park L&WCF Land and Water Conservation Fund LOS Level of Service MUTCD Manual of Uniform Traffic Control Devices MVFT Motor Vehicle Fuel Tax NDOT Nevada Department of Transportation NEPA National Environmental Policy Act of 1969 NRS Nevada Revised Statutes OTP Out of Town Park RCT Residential Construction Tax RPTT Real Property Transfer Tax RTC Regional Transportation Commission Supplemental City County Relief Tax TCID Truckee Carson Irrigation District TEA-21 Transportation Equity Act for the 21st Century 145