Document Fernley_doc_6dee649d0a

                                                   ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 City Council Mayor Todd Cutler Council Member Ward 1 Elayne Logue Council Member Ward 2 Joe Mortensen Council Member Ward 3 Monte Martin Council Member Ward 4 Curt Chaffin Council Member Ward 5 Cal Eilrich 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. Staff Gary Bacock, City Manager Jeff McGowan , City Attorney Bonnie Duke Patricia Norman Lowell Patton Keith Penner Robert “Terry” Gilbert Finance Director (City Treasurer) City Clerk Public Works Director Parks and Recreation Director Community Development Director Daniel Bauer, Municipal Court Judge Allen Veil, Chief of Police ---PAGE BREAK--- City of Fernley Annual Budget - Fiscal Year 2008-2009 Table of Contents BUDGET 1 4 DESCRIPTION OF THE BUDGET DOCUMENT 4 COMMUNITY PROFILE 4 LONG-TERM NON-FINANCIAL GOALS AND OBJECTIVES 6 BUDGET PROCESS AND CALENDAR OF 7 FUND STRUCTURE AND BUDGET 10 DEBT MANAGEMENT 11 CAPITAL IMPROVEMENT PLAN 13 PERFORMANCE 14 FINANCIAL AND PROGRAM 14 CITY OF FERNLEY ORGANIZATIONAL 18 OVERVIEW 19 BUDGET SUMMARY-ALL FUNDS 19 REVENUE SOURCES 31 TAX RATE HISTORY 43 ASSESSED VALUE 44 POPULATION 45 CAPITAL EXPENDITURE SUMMARY 46 GENERAL 47 GENERAL FUND SUMMARY 48 PROGRAM DESCRIPTIONS 54 Administration 55 Mayor and City 56 Office of the City 60 Office of the City Attorney 63 Office of the City Treasurer/Finance Department 69 Information 74 Office of the City Clerk 77 Facilities and General Expenditures 83 Municipal 85 89 Community 93 Building 94 Planning 98 Animal Control 103 Vector Control 106 Debt 109 Contingency 110 SPECIAL REVENUE FUNDS 111 ADMINISTRATIVE ASSESSMENT 113 GRAFFITI REWARD AND ABATEMENT 114 COURT FACILITY FEES 115 116 RESIDENTIAL CONSTRUCTION TAX DISTRICT 117 RESIDENTIAL CONSTRUCTION TAX DISTRICT 118 STREETS AND STORM DRAINS 119 PRIVATE SECTOR COMMUNITY SUPPORT 127 GREEN VALLEY LANDSCAPE MAINTENANCE DISTRICT 128 AUTUMN WINDS LANDSCAPE MAINTENANCE DISTRICT 129 SILVERLAND LANDSCAPE MAINTENANCE DISTRICT 130 FRIENDLY FIVE LANDSCAPE MAINTENANCE DISTRICT 131 B C RANCH LANDSCAPE MAINTENANCE 132 SARIO RANCH LANDSCAPE MAINTENANCE DISTRICT 133 JACKSON RANCH LANDSCAPE MAINTENANCE 134 ---PAGE BREAK--- City of Fernley Annual Budget - Fiscal Year 2008-2009 Table of Contents CAPITAL PROJECT FUNDS 136 CAPITAL FUND 137 ENTERPRISE FUNDS 138 WATER UTILITY FUND 139 SEWER UTILITY FUND 148 ALTERNATIVE WATER UTILITY 156 APPENDICES 160 APPENDIX A – SALARY 161 APPENDIX B – AUTHORIZED 163 APPENDIX C – FTE BY DEPARTMENT AND COST 165 APPENDIX D – FIVE-YEAR CAPITAL IMPROVEMENT 166 APPENDIX E – GLOSSARY OF KEY 172 APPENDIX F – 190 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 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, 2007. 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 2008-2009 1 
Administration, Human Resources, Budgeting, Risk Management, & Contracts April 17, 2008 Honorable Mayor and City Council City of Fernley I respectfully submit the recommended budget for the City of Fernley for fiscal year 2008/2009 (FY 08/09). We face challenges in the budget due to lower projected revenues primarily related to the economic slump in housing. Teamwork, perseverance, and cooperation will enable the City to meet the challenges ahead and meet the objectives discussed in various City Council meetings. There are five major challenges reflected below, recovering from a flood event that occurred on January 5, 2008, completing infrastructure improvements needed to provide necessary services, establishing proper organizational structures and culture to manage operations effectively and efficiently, maintaining a conservative approach for programs due to economic uncertainty and a slow down in growth and labor negotiations & planning for potential liabilities for post-employment benefits other than pensions. (revenue sources consistent) I believe the FY 08/09 budget meets the following City Council objectives: Flood Event: The January 5th flood has impacted flood victims and many others, including the City. Staff has been sorting out all of the issues, both short term and long term, and will continue to strive to make those impacted “whole”. Initial federal and state assistance has helped to maintain adequate levels of service to the public and we are still seeking long term assistance from the various sources of federal funds. Although past conservative budgeting resulted in building up a good savings account or “Rainy Day Fund”, the flood essentially depleted the savings. Infrastructure Improvements -.Construction of the City’s water treatment plant is needed to comply with regulations related to removal of arsenic from the City’s groundwater supply, to utilize surface water rights in both potable water systems and alternative water systems in the future, and to provide some capacity for growth. The water treatment plant is designed to be expandable in the future if additional capacity is required for new developments. In addition to the water treatment plant, associated piping systems are needed to convey untreated water to the treatment plant and to deliver treated water to customers. This project is fully underway and has a federal ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 2 compliance deadline extended to July 23, 2009. Staff anticipates the plant to be fully operational in advance of the deadline and during the next fiscal year, thereby requiring an early staffing of the operation and that will be noted below. Organizational effectiveness and efficiencies: From time to time departmental changes are made to improve our operations. Recently a temporary change in the functions of Planning and Building began and will be finalized with this budget implementation of 7/1/08. The Community Development Department will handle all planning issues and the Building Department will handle all building issues. Any crossover functions, such as Code Enforcement will be handled by the Building Department and the usual interaction with Community Development will continue. The intake and tracking of applications will be handled by the appropriate department. The permit technician unit will change from 3 Permit Technicians and 1 Technical Supervisor, to 2 Permit Technicians in Building and 2 Permit Technicians in Community Development. Departments review organizational changes on a regular basis and therefore there may be other department changes during the budget review process. Conservative approach to programs: Each request for added programs or staffing has been carefully considered and those that are recommended are truly needed at this time. However, there have also been a number of programs that departments have considered and under our current fiscal conditions some of those programs have had to be either delayed or not pursued at this time. Labor negotiations & potential liabilities for post employment benefits: As presented on 4/16/08, the completed study of the true liability of the benefits under the current health benefit plan, the State of Nevada Public Employee Benefit Plan, recommend a change to an alternate health plan, effective 7/1/08. With this challenge, seeking a comparable alternate health plan is a high priority and will be part of labor negotiations with the employees’ bargaining unit representative IBEW. The labor contract expires at the end of this fiscal year and all fiscal issues will be considered in the effort to come to a successful conclusion to the process, hopefully resulting in a new labor contract. SUMMARY OF PERSONNEL CHANGES: Over the past seven years, the City of Fernley added many new positions to respond to the tremendous growth in population and demand for city services. Growth has slowed dramatically due primarily to nationwide housing market declines and general slow down in the economy. The unusual growth in commercial and industrial projects has helped to maintain many services. The City is using proper planning, management, and technology to provide services effectively with minimal increases in authorized positions. In FY 08/09, certain positions were eliminated, certain positions were added, and hours were increased for certain positions resulting in a net 0.19 decrease full time equivalents (FTE) for a total workforce of 70.93 FTE’s, as follows: Positions added: • Assistant to the City Manager (Human Resources, Risk Management, Emergency Management, & Contract Admin.) – Office of the City Manager • Senior Water Treatment Plant Operator – Public Works Dept. • Water Treatment Plant Operator (full time for ½ year) – Public Works Dept. • Public Works Worker – Public Works Dept. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 3 Positions eliminated: • Office Assistant II – Community Development Dept. • Building Inspector – Building Dept. • Seasonal Maintenance Workers – Parks & Recreation Dept. Positions with increased hours: • Animal Control Officer from 0.50 FTE to 0.75 FTE - Parks & Recreation Dept. Positions reclassified: Technical Supervisor reclassified to Permit Technician. Although the budget did not include all requests from departments, this budget has been discussed with department heads. This budget provides the necessary resources to accomplish our goals and to address issues associated with our high growth. THE BUDGET IN BRIEF: Revenues and “Other Financing Sources” for all funds are estimated at $13.7 million in the FY08/09 budget. The City has significant cash balances (including proceeds from previous bond issues) that will be used for expenditures in FY08/09, primarily for infrastructure improvements such as the new water treatment plant. Cash balances plus revenues and other financing resources total approximately $95 million. Expenditures and other uses total $75.7 million in the FY08/09 budget, primarily for capital expenditures associated with construction of a new water treatment facility. Revenues will be sufficient to provide for operating expenses in the enterprise funds. Operating expenses in governmental type funds are covered by anticipated operating revenues. CLOSING: 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 FY03/04, FY04/05, FY05/06, FY06/07, and FY07/08 budgets received the award (GFOA’s “Distinguished Budget Presentation Awards Program”) and we intend to present the final budget to GFOA for review and consideration again this year. I would like to thank the department heads in their efforts to submit information for the budget. Once again, special thanks goes to Bonnie Duke, City Treasurer/Finance 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 4   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 20,000 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 5 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 ten 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. The community is now experiencing development of services and businesses. Lowe’s and Walmart recently opened stores in Fernley. Other service businesses and retail businesses are developing in Fernley. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 6 Long-term Non-financial Goals and Objectives The City of Fernley was incorporated in 2001 and faced numerous challenges in providing services in a high growth community. The population more than doubled in the first six years of the City’s operations. The City encompasses over 160 square miles, with a majority of this area currently undeveloped. Real estate development initially was primarily residential with the majority of residents working in the Reno-Sparks metropolitan area. Recently, residential development has slowed and business development has grown. The City’s long term goal is to develop Fernley as a “Great Place to Live Work and Play” through quality planning and decision making. The major issues to be addressed to accomplish the City’s long term goals are: sustained and controlled growth, adequate infrastructure, provision of effective and efficient City services at appropriate service levels, public safety, recreational and cultural opportunities, and development of adequate funding sources to accomplish the goal. Objectives that must be met in order to achieve these goals include: planning and foresight in policies for real estate development, updates in comprehensive plans and facility plans to provide adequate infrastructure, documentation and performance measurement for City services, coordination of public safety with other entities that currently provide the majority of public safety functions, development of recreational and cultural facilities and events, and implementation of necessary rate increases for enterprise fund operations, and development of new funding sources to provide necessary funding for sustained growth in operations other than enterprise funds. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 7 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/Finance Director. The City Manager and the Finance Director then review each request and meetings are held with each person submitting a request to review programs and clarify requests. The City Manager and Finance Director 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 held on the third Tuesday in May according to State statute. The City Council directs the City Manager and Finance Director 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 Finance Department then records the budget adjustments in the computerized accounting system and, if necessary, files the changes with the Nevada Department of Taxation. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 8 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 Finance Director review the request. If the request is in order, the Finance Department prepares a draft resolution for presentation to the City Council. Upon adoption of the resolution, the Finance 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 Finance Department review the request. If the request is in order, the Finance 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 Finance 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 2008-2009 budget year: Feb. 14, 2008 Thursday Last Day for Quarterly Economic Survey 2nd Quarter FY07 Feb. 15, 2008 Friday Dept of Taxation provides Preliminary Revenue Projections Package Feb. 20, 2008 Wednesday Last day for City to notify Department of Taxation about proposed tax rate changes. Mar. 3, 2008 Monday Deadline for Submission of Budget Requests to City Manager and Finance Director. Mar. 3, 2008 Monday 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. 5, 2008 Wednesday Assessor files tax roll with the State Board of Equalization and the Segregation of Property report with the Department of Taxation Mar. 14, 2008 Friday Due date for department requests ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 9 Mar. 17, 2008 Monday Dept of Taxation provides final Revenue Projections Package, specifically for motor vehicle fuel tax and consolidated tax Mar. 19, 2008 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) April 15, 2008 Tuesday Issuance of final recommended budget to Mayor, City Council, departments and other interest parties for preparation for the budget workshops Apr. 15, 2008 Tuesday Tentative Budget Submitted to Dept of Taxation (NRS354.596) Apr. 23, 2008 Monday 1st Session of Workshops Apr. 28, 2008 Monday 2nd Session of Workshops Apr. 30, 2008 Wednesday 3rd Session of Workshops May Other workshops, as needed May 7 & 14, 2008 Wednesday Notice of public hearing published for tentative City budget (NRS 354.596) May 20, 2008 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 30, 2008 Friday Final Budget Filed with Dept. of Taxation (NRS 354.598) June 25, 2008 Friday Nevada Tax Commission meets to certify tax rates for all entities (NRS 361.455) July 1, 2008 Tuesday Publish annual fiscal report (NRS354.6015 and NAC 354.561) July 31, 2008 Thursday Indebtedness Report, Capital Improvement Plan and Debt Management Policy due to Department of Taxation ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 10 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 11 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. As of June 30, 2007, the City had $51,282,780 of general obligation revenue supported debt outstanding. The City’s general obligation revenue supported debt is paid from water and sewer systems revenue. The City obtained authorization for an additional $50,000,000 of general obligation revenue supported debt and issued $32,600,000 in March 2008. The remaining $17,400,000 may be issued over the next two years, if needed, to respond to growth. Because the national economy and the local economy (especially residential housing) have slowed, the City does not anticipate another bond issue in the short term. However, if other sectors of the economy grow or the local economy in general booms, the City will have authorized debt to respond with water and sewer projects that may be needed to respond to the growth. This additional debt will be used to provide infrastructure for the City’s water and sewer systems. The City presently has approximately $126,975,941 of statutory debt limit available. The City also has installment purchase debt outstanding in the amount of $4,842,000. The installment purchase is paid from general fund resources and is not considered general obligation debt. The City of Fernley does not currently have specific plans for proposed future general obligation debt beyond the amounts described above. However, the City Council may develop a Community Center project in the future and may consider general obligation ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 12 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: FY2009 Assessed Valuation $755,529,070 30% of Assessed Valuation (NRS 266.600(4)) $226,658,721 Outstanding General Obligation Debt $82,282,780 Authorized/Unissued General Obligation Debt $17,400,000 Legal Debt Margin $126,975,941 Projected cash flow to repay debt is also an important factor in debt capacity. Use fees in the Water and Sewer Enterprise Funds are used to repay the general obligation revenue supported debts. The City recently enacted increases in water and sewer rates to provide cash flow for debt repayment as well as operating and capital expenditures. The rate increase involved multiple years so rate increases will occur on July 1, 2008, 2009, 2010, and 2011. The City completed medium term obligation financing in the amount of $5 million for construction of an expansion to City Hall. The medium term financing involved an Installment Purchase Agreement. The collateral for the Installment Purchase Agreement is pledged revenue in the City’s general fund and a security interest in the property. The Installment Purchase Agreement contains a non-appropriation clause that extinguishes if the City Council fails to appropriate funds for repayment. The agreement allows the lender to pursue repayment from the secured property if the City Council does not appropriate money for repayment. The total project cost of $7 million was funded from the $5 million medium term obligation and $2 million in cash from the Capital Fund. The medium term obligation is not considered general obligation debt for purposes of the statutory debt limit. The City issued $50 million in general obligation revenue supported debt issued in March 2007 for water and sewer projects. Bond proceeds in the amount of $5.5 million will be used for a sewer interceptor project and $44.5 million will be used for a new water treatment plant and associated systems to convey water to and from the new treatment facility. The City issued $32.6 million in general obligation revenue supported debt in March 2008 for water and sewer projects. Bond proceeds in the amount of $2.5 million will be used for the Highway 50 Lift Station Project and $30.1 million will be used to complete the water treatment facility and the associated piping projects to deliver raw water to the plant and to distribute treated water to customers. 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 funding at favorable rates. The City of Fernley will identify the expected sources of ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 13 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. The City annually completes a debt management policy to fulfill the requirement of NRS 350.013. The City also annually completes a capital improvement plan to fulfill the requirements of NRS 354.5945. The capital improvement plan identified the need for approximately $141,591,394 of capital improvements in fiscal years 2008 through 2012. These projects will be funded with general revenues, grants, user fees, consolidated taxes, bonds, and by developer reimbursements. Capital Improvement Plan The City of Fernley prepares as Five Year Capital Improvement Plan that is attached as Appendix D. 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 is included under the heading “Capital Expenditure Summary.” The major capital expenditure items relate to either streets or utility operations. The City recently organized a Capital Improvements Advisory Committee to specifically examine and make recommendations regarding public improvements and funding of specific improvements. The results of the Capital Improvements Committee may be used to implement impact fees, special assessment districts, or other methods to finance the necessary infrastructure improvements. The Capital Improvements Committee is specifically required for implementation of impact fees. The results of the committee will be incorporated into the citywide capital improvements plan required by statute. 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 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 were addressed in the recent rate increases. The costs associated with unfunded mandates such as arsenic removal have a significant impact on rates for the water and sewer utilities. The City intends to review water and sewer rates annually and to set rates at the proper levels to provide adequate funding for operations, capital expansion, and capital replacements. The operation and maintenance costs associated with capital improvements other than water and sewer operations must be provided from other funding sources such as property taxes, consolidated tax, and franchise or business license fees. Limitations on ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 14 these revenues sources provides greater challenges in providing a constant revenue stream to maintain new improvements such as city parks, streets, and storm drains. The City Council increased franchise/business license fees for public utilities doing business within the City as the first step to raise additional revenue for operation and maintenance cost of City facilities. 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 that 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 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 principles. Proper authorization is required for encumbrance or expenditure of funds. The proper department must have adequate appropriation available ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 15 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 purchases between $10,000 and $25,000 per NRS 332.039 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 $4 million; therefore the targeted ending fund balance for the general fund is between $320,000 and $680,000. 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. Approximately $300,000 of the amount in fund balance was collected from developers for use in future projects, therefore, the projected fund balance of approximately $653,193 less the $300,000 earmarked for projects is consistent with this policy. 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, maximize property tax rates when external constraints control these revenues. 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. Major legislative changes in property tax limitation have limited the amount of revenue the City will receive from property taxes. Therefore, the levy set by the City Council is not the major determinant of property tax revenue that the City will actually receive. The property tax limitation legislation had the unintended affect (sometimes referred to as a “perverse incentive”) of providing an incentive for each local government to levy the maximum rate available. In this Budget, the tax rate for FY2007/2008 is increased to the maximum available. Although this increase will not produce a significant amount of additional revenue, the City must have a funding source for new services, specifically vector control, animal control and added park properties. The tax rate has remained unchanged for many years. 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 16 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. The growth in the number of funds and volume of transactions in the City will likely require the City to change the method of allocation of overhead to various funds. This project may be considered in FY08. 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 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 were increased effective July 1, 2007 and will be increased for each of the next four fiscal years. Specific financial and operational policies for the FY2008/2009 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 subsequent phases have occurred each fiscal year. 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 17 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 18 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 Finance Dept Planning Dept Public Works Dept Office of the City Manager Elections Business License Records Accounting &Budgeting Utility Billing Investments Financial Reporting Planning Code Enforcement Economic Development Water Utility Sewer Utility Administration Risk Management Human Resources Contracts Parks/ Rec Development Maintenance Minutes/Agendas Municipal Court Administration Vector Control Animal Control Streets and Storm Drains Quality Assurance Alternative Water Building Dept. Bldg Permit Bldg Inspection Plan Review CIP Committee Audit Committee Emergency Management ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 19   Budget Summary-All Funds A history of citywide funding sources is shown in the following graph. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 FY02-03 FY03-04 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 Other Misc Fines & Forfeits Intergovernmental Licenses & Permits Taxes City Hall Expansion Bond Issue Use Saved RTC $ Implement Park Tax Largest components of "Other" are Bond Issues and Capital Contributions and Developer Donated Infrastructure in Enterprise Funds Water and Sewer Bond Issue $50 M Analysis A history of citywide uses of funds is shown in the following graph. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 FY02-03 FY03-04 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 Capital Expend. Contingency/Transfer Debt Service Service/Supply Benefits/Taxes Salaries/Wages ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 20 Analysis: The large increase in FY07-08 is primarily due to projected capital expenditures for a new water treatment facility to comply with more stringent standards for water. A history of total citywide sources and uses of funds is shown in the following graph. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 FY02- 03 FY03- 04 FY04- 05 FY05- 06 FY06- 07 FY07- 08 FY08- 09 Sources Uses City Hall Bond Issue $ Water/Sewer Projects Bond Issue $50M Construction of Projects using Bond Issue Proceeds City Hall Const. A history of total citywide cash balances is shown in the following graph. Cash $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 FY01- 02 FY02- 03 FY03- 04 FY04- 05 FY05- 06 FY06- 07 FY07- 08 FY08- 09 Cash City Hall Expansion Bond $5M Water/Sewer $50M and $32.6M bonds ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 21 Total citywide sources and uses of cash for FY2002/2003 are shown in the following table. FY02-03 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Funding Sources Taxes 374,654 210,804 585,458 Licenses and Permits 1,724,743 0 1,724,743 Intergovernmental Resources 708,336 40,000 748,336 Charges for Services 0 2,497,055 2,497,055 Fines and Forfeits 104,330 24,174 128,504 Miscellaneous 51,734 1,272 2,143 427,172 482,321 Other Financing Sources 0 150,000 800,000 2,297,417 3,247,417 Total Revenue & Other Financing Sources 2,963,797 426,250 802,143 5,221,644 9,413,834 Beginning Fund (Cash) Balance 777,416 17,234 0 6,435,281 7,229,931 Total Available Resources 3,741,213 443,484 802,143 11,656,925 16,643,765 Funding Uses General Government 475,065 475,065 Judicial 118,839 25,958 144,797 Public Works 517,855 0 2,449,634 2,967,489 Community Development 301,269 73,948 375,217 Culture and Recreation 229,550 108,127 337,677 Health 40,828 40,828 Debt Service 95,431 339,004 434,435 Other Uses 950,000 950,000 Total Expenditures and Other Uses 2,728,837 134,085 73,948 2,788,638 5,725,508 Ending Fund (Cash) Balance 1,012,376 309,399 728,195 8,868,287 10,918,257 Total Fund Commitments and Fund (Cash) Balances 3,741,213 443,484 802,143 11,656,925 16,643,765 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Salaries and Wages 652,814 0 548,776 1,201,590 Payroll Taxes and Benefits 222,901 0 187,819 410,720 Service and Supplies 570,030 18,317 1,105,109 1,693,456 Capital Expenditures 237,661 115,768 73,948 607,930 1,035,307 Debt Service 95,431 339,004 434,435 Contingency & Transfer 950,000 950,000 Total Uses by Object 2,728,837 134,085 73,948 2,788,638 5,725,508 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 22 Total citywide sources and uses of cash for FY2003/2004 are shown in the following table. FY03-04 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Funding Sources Taxes 427,738 762,860 1,190,598 Licenses and Permits 2,230,728 10,901 2,241,629 Intergovernmental Resources 192,492 1,327,968 1,520,460 Charges for Services 0 3,050,237 3,050,237 Fines and Forfeits 141,028 29,808 170,836 Miscellaneous 78,861 6,740 8,480 869,741 963,822 Other Financing Sources 0 1,000,000 776,830 3,348,794 5,125,624 Total Revenue & Other Financing Sources 3,070,847 3,138,277 785,310 7,268,772 14,263,206 Beginning Fund (Cash) Balance 1,012,376 309,399 728,195 8,868,287 10,918,257 Total Available Resources 4,083,223 3,447,676 1,513,505 16,137,059 25,181,463 Funding Uses General Government 530,474 530,474 Judicial 151,937 2,577 154,514 Public Works 0 1,074,135 2,869,496 3,943,631 Community Development 421,771 14,323 436,094 Culture and Recreation 365,773 682,838 1,048,611 Health 48,395 48,395 Debt Service 0 331,797 331,797 Other Uses 1,772,553 1,772,553 Total Expenditures and Other Uses 3,290,903 1,759,550 14,323 3,201,293 8,266,069 Ending Fund (Cash) Balance 792,320 1,688,126 1,499,182 12,935,766 16,915,394 Total Fund Commitments and Fund (Cash) Balances 4,083,223 3,447,676 1,513,505 16,137,059 25,181,463 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Salaries and Wages 670,804 99,363 564,603 1,334,770 Payroll Taxes and Benefits 254,990 40,268 251,943 547,201 Service and Supplies 525,871 194,264 1,185,896 1,906,031 Capital Expenditures 66,685 1,425,655 14,323 867,054 2,373,717 Debt Service 0 331,797 331,797 Contingency & Transfer 1,772,553 1,772,553 Total Uses by Object 3,290,903 1,759,550 14,323 3,201,293 8,266,069 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 23 Total citywide sources and uses of cash for FY2004/2005 are shown in the following table. FY04-05 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Funding Sources Taxes 491,820 825,006 1,316,826 Licenses and Permits 2,765,687 31,278 2,796,965 Intergovernmental Resources 203,299 1,151,222 1,354,521 Charges for Services 0 3,272,365 3,272,365 Fines and Forfeits 144,407 30,760 175,167 Miscellaneous 124,430 38,007 30,176 1,159,236 1,351,849 Other Financing Sources 0 550,000 1,140,000 4,348,156 6,038,156 Total Revenue & Other Financing Sources 3,729,643 2,626,273 1,170,176 8,779,757 16,305,849 Beginning Fund (Cash) Balance 792,320 1,688,126 1,499,182 12,935,766 16,915,394 Total Available Resources 4,521,963 4,314,399 2,669,358 21,715,523 33,221,243 Funding Uses General Government 595,297 595,297 Judicial 170,595 1,273 171,868 Public Works 0 1,281,068 3,778,222 5,059,290 Community Development 669,105 167,229 836,334 Culture and Recreation 397,853 729,086 1,126,939 Health 124,091 124,091 Debt Service 0 332,212 332,212 Other Uses 1,690,000 1,690,000 Total Expenditures and Other Uses 3,646,941 2,011,427 167,229 4,110,434 9,936,031 Ending Fund (Cash) Balance 875,022 2,302,972 2,502,129 17,605,089 23,285,212 Total Fund Commitments and Fund (Cash) Balances 4,521,963 4,314,399 2,669,358 21,715,523 33,221,243 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Salaries and Wages 931,695 99,889 450,566 1,482,150 Payroll Taxes and Benefits 338,936 39,372 171,261 549,569 Service and Supplies 639,542 286,174 1,522,377 2,448,093 Capital Expenditures 46,768 1,585,992 167,229 1,634,018 3,434,007 Debt Service 0 332,212 332,212 Contingency & Transfer 1,690,000 1,690,000 Total Uses by Object 3,646,941 2,011,427 167,229 4,110,434 9,936,031 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 24 Total citywide sources and uses of cash for FY2005/2006 are shown in the following table. FY05-06 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Funding Sources Taxes 590,127 1,197,822 1,787,949 Licenses and Permits 2,231,632 40,071 2,271,703 Intergovernmental Resources 242,754 988,978 1,231,732 Charges for Services 0 4,009,287 4,009,287 Fines and Forfeits 192,646 35,778 228,424 Miscellaneous 289,389 309,154 5,195,809 1,184,106 6,978,458 Other Financing Sources 0 0 850,000 2,266,195 3,116,195 Total Revenue & Other Financing Sources 3,546,548 2,571,803 6,045,809 7,459,588 19,623,748 Beginning Fund (Cash) Balance 875,022 2,302,972 2,502,129 17,605,089 23,285,212 Total Available Resources 4,421,570 4,874,775 8,547,938 25,064,677 42,908,960 Funding Uses General Government 717,355 717,355 Judicial 163,631 5,533 169,164 Public Works 0 2,293,389 5,605,415 7,898,804 Community Development 837,307 515,459 1,352,766 Culture and Recreation 537,507 1,177,538 1,715,045 Health 275,985 275,985 Debt Service 94,789 334,420 429,209 Other Uses 850,000 850,000 Total Expenditures and Other Uses 3,476,574 3,476,460 515,459 5,939,835 13,408,328 Ending Fund (Cash) Balance 944,996 1,398,315 8,032,479 19,124,842 29,500,632 Total Fund Commitments and Fund (Cash) Balances 4,421,570 4,874,775 8,547,938 25,064,677 42,908,960 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Salaries and Wages 1,221,480 92,561 306,283 1,620,324 Payroll Taxes and Benefits 400,436 38,794 210,914 650,144 Service and Supplies 835,570 250,749 1,754,659 2,840,978 Capital Expenditures 74,299 3,094,356 515,459 3,333,559 7,017,673 Debt Service 94,789 334,420 429,209 Contingency & Transfer 850,000 850,000 Total Uses by Object 3,476,574 3,476,460 515,459 5,939,835 13,408,328 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 25 Total citywide sources and uses of cash for FY2006/2007 are shown in the following table. FY06-07 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Funding Sources Taxes 934,000 176,000 1,110,000 Licenses and Permits 2,008,500 16,000 2,024,500 Intergovernmental Resources 275,345 2,133,348 2,408,693 Charges for Services 0 4,200,500 4,200,500 Fines and Forfeits 140,500 36,000 176,500 Miscellaneous 205,278 55,200 300,000 1,656,000 2,216,478 Other Financing Sources 0 565,000 135,000 52,036,739 52,736,739 Total Revenue & Other Financing Sources 3,563,623 2,981,548 435,000 57,893,239 64,873,410 Beginning Fund (Cash) Balance 944,996 1,398,315 8,032,479 19,124,842 29,500,632 Total Available Resources 4,508,619 4,379,863 8,467,479 77,018,081 94,374,042 Funding Uses General Government 990,050 990,050 Judicial 201,550 5,000 206,550 Public Works 0 2,145,895 12,900,100 15,045,995 Community Development 753,300 5,800,000 6,553,300 Culture and Recreation 645,020 198,000 843,020 Health 400,150 400,150 Debt Service 378,400 886,436 1,264,836 Other Uses 565,000 135,000 700,000 Total Expenditures and Other Uses 3,933,470 2,483,895 5,800,000 13,786,536 26,003,901 Ending Fund (Cash) Balance 575,149 1,895,968 2,667,479 63,231,545 68,370,141 Total Fund Commitments and Fund (Cash) Balances 4,508,619 4,379,863 8,467,479 77,018,081 94,374,042 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Salaries and Wages 1,188,100 122,200 786,900 2,097,200 Payroll Taxes and Benefits 554,400 41,595 326,200 922,195 Service and Supplies 1,153,470 390,100 1,700,600 3,244,170 Capital Expenditures 94,100 1,795,000 5,800,000 10,086,400 17,775,500 Debt Service 378,400 886,436 1,264,836 Contingency & Transfer 565,000 135,000 700,000 Total Uses by Object 3,933,470 2,483,895 5,800,000 13,786,536 26,003,901 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 26 Total citywide sources and uses of cash for FY2007/2008 are shown in the following table. FY07-08 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Funding Sources Taxes 1,130,000 30,000 1,160,000 Licenses and Permits 1,946,400 26,000 1,972,400 Intergovernmental Resources 250,000 1,965,857 2,215,857 Charges for Services 0 - $ 5,580,000 5,580,000 Fines and Forfeits 152,500 24,500 177,000 Miscellaneous 443,753 96,460 75,000 673,750 1,288,963 Other Financing Sources 0 20,000 0 35,015,681 35,035,681 Total Revenue & Other Financing Sources 3,922,653 2,162,817 75,000 41,269,431 47,429,901 Beginning Fund (Cash) Balance 588,946 1,568,588 2,397,510 63,039,407 67,594,451 Total Available Resources 4,511,599 3,731,405 2,472,510 104,308,838 115,024,352 Funding Uses General Government 1,337,529 1,337,529 Judicial 265,900 7,000 272,900 Public Works 0 2,890,019 24,469,841 27,359,860 Community Development 929,080 1,471,000 2,400,080 Culture and Recreation 675,653 204,900 880,553 Health 329,110 329,110 Debt Service 378,702 351,551 730,253 Other Uses & Transfers 10,000 11,000 21,000 Total Expenditures and Other Uses 3,925,974 3,112,919 1,471,000 24,821,392 33,331,285 Ending Fund (Cash) Balance 585,625 618,486 1,001,510 79,487,446 81,693,067 Total Fund Commitments and Fund (Cash) Balances 4,511,599 3,731,405 2,472,510 104,308,838 115,024,352 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Salaries and Wages 1,673,656 109,300 1,097,700 2,880,656 Payroll Taxes and Benefits 624,123 49,050 544,300 1,217,473 Service and Supplies 1,175,640 424,500 2,511,841 4,111,981 Capital Expenditures 63,853 2,520,069 1,471,000 20,316,000 24,370,922 Debt Service 378,702 351,551 730,253 Contingency & Transfer 10,000 10,000 20,000 Total Uses by Object 3,925,974 3,112,919 1,471,000 24,821,392 33,331,285 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 27 Total citywide sources and uses of cash for FY2008/2009 are shown in the following table. FY08-09 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Funding Sources Taxes 1,351,000 30,000 1,381,000 Licenses and Permits 2,130,000 11,000 2,141,000 Intergovernmental Resources 256,000 1,119,989 1,375,989 Charges for Services 0 25,300 6,885,000 6,910,300 Fines and Forfeits 161,000 24,500 185,500 Miscellaneous 93,500 32,550 60,000 445,000 631,050 Other Financing Sources 0 175,000 0 942,000 1,117,000 Total Revenue & Other Financing Sources 3,991,500 1,418,339 60,000 8,272,000 13,741,839 Beginning Fund (Cash) Balance 585,625 618,486 1,001,510 79,487,446 81,693,067 Total Available Resources 4,577,125 2,036,825 1,061,510 87,759,446 95,434,906 Funding Uses General Government 1,420,650 1,420,650 Judicial 252,200 16,000 268,200 Public Works 0 1,297,862 68,841,100 70,138,962 Community Development 913,000 200,000 1,113,000 Culture and Recreation 622,000 553,340 1,175,340 Health 323,110 323,110 Debt Service 379,113 615,436 994,549 Other Uses & Transfers 120,000 10,000 145,000 275,000 Total Expenditures and Other Uses 4,030,073 1,877,202 345,000 69,456,536 75,708,811 Ending Fund (Cash) Balance 547,052 159,623 716,510 18,302,910 19,726,095 Total Fund Commitments and Fund (Cash) Balances 4,577,125 2,036,825 1,061,510 87,759,446 95,434,906 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Salaries and Wages 1,687,300 141,100 1,228,300 3,056,700 Payroll Taxes and Benefits 804,900 80,950 585,100 1,470,950 Service and Supplies 1,029,760 414,840 3,632,100 5,076,700 Capital Expenditures 9,000 1,230,312 200,000 63,395,600 64,834,912 Debt Service 379,113 615,436 994,549 Contingency & Transfer 120,000 10,000 145,000 275,000 Total Uses by Object 4,030,073 1,877,202 345,000 69,456,536 75,708,811 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 28 The FY 2008/2009 citywide projected sources of cash are shown in the following chart: FY2008/2009 Sources-All Funds Micellaneous, $631,050 , 1% Beginning Fund Balance, $81,693,067 , 87% Other Financing Sources, $1,117,00 , 1% Licenses and Permits, $2,141,000 , 2% Taxes, $1,381,000 , 1% Fines and Forfeits, $185,500 , 0% Intergovernmental Resources, $1,375,989 , 1% Charges for Services, $6,910,300 , 7% The FY2008/2009 Citywide projected revenues (without Beginning Fund Balance and Other Financing Sources) are shown in the following chart: FY2008/2009 Revenues-All Funds Micellaneous, $631,050 , 5% Other Sources, $1,117,000 , 8% Licenses and Permits, $2,141,000 , 16% Taxes, $1,381,000 , 10% Fines and Forfeits, $185,500 , 1% Intergovernmental Resources, $1,375,989 , 10% Charges for Services, $6,910,300 , 50% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 29 The FY2008/2009 Citywide projected uses of cash, detailed by function, are shown in the following chart: FY 2008/2009 Citywide Uses by Type Other Uses, $275,000, 0% Culture and Recreation, $1,175,340, 1% Debt Service, $94,549, 0% Health, $323,110, 0% Community Development, $1,113,000, 1% Ending Fund Balance, $19,726,095, 21% Public Works, $70,138,962, 75% General Government, $1,420,650, 2% Judicial, $268,200, 0% The FY2008/2009 Citywide projected expenditures (without Ending Fund Balance, Contingencies and Transfers) by function are shown in the following chart: FY 2008/2009 Citywide Expenditures by Type Culture and Recreation, $1,175,340, 2% Debt Service, $994,549, 1% Health, $323,110, 0% Community Development, $1,113,000, 1% Other Uses, $275,000, 0% Public Works, $70,138,962, 94% General Government, $1,420,650, 2% Judicial, $268,200, 0% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 30 The FY2008/2009 Citywide projected uses of cash, detailed by object, are shown in the following chart: Projected FY2008/2009 Citywide Uses by Object Ending Fund Balance, $19,726,095 , 21% Debt Service, $994,549 , 1% Contingency & Transfer, $275,000 , 0% Capital Expenditures, $64,834,912 , 68% Salaries and Wages, $3,056,700 , 3% Payroll Tax and Benefits, $1,470,950 , 2% Service and Supplies, $5,076,700 , 5% The FY2008/2009 Citywide projected expenditures (without Ending Fund Balance, Contingencies and Transfers) by object are shown in the following chart: Projected FY2008/2009 Expenditures by Object Debt Service, $994,549 , 1% Capital Expenditures, $64,834,912 , 86% Salaries and Wages, $3,056,700 , 4% Payroll Tax and Benefits, $1,470,950 , 2% Service and Supplies, $5,076,700 , 7% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 31 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 State of Nevada enacted property tax limitation legislation in the 2005 legislative session. In general, this legislation limits the amount of tax liability for an owner- occupied single-family residence and certain rental properties to 3% of the prior year tax, assuming no new improvements were made to the residence. The legislation also limits other properties not otherwise qualifying for the 3% limitation to an 8% increase in the tax liability. New construction is not subject to the limit in the first year. The limitation legislation does not directly limit assessed value or tax levy, but provides for abatement of tax if the traditional method of calculation exceeds the limits. The abatement is then allocated to each entity comprising the combined tax rate. The amount of tax, before abatement, 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 abatement is the amount in excess of the maximum tax to the taxpayer. The abatement is allocated to each taxing entity for a particular property resulting in a decrease in the tax bill to the owner and a decrease in tax revenue to each taxing entity. In addition to the statutory limitation referred to above, 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 FY2008/2009 is $0.3515 per $100 of assessed value. The FY2008/2009 budget assumes a levy of the full $0.3515 per $100 of assessed value. This represents revenue of approximately $1,356,000, after abatement. The City of Fernley Allowed Rate versus rate levied is shown in the table on the following page: ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 32 Year Assessed Value Allowed Rate Levied Rate Allowed Revenue before abatement Levied Revenue before abatement Abatement Of Tax Maximum Revenue Possible After Abate. Tax Levied Difference between maximum and levied FY08/09 $755,529,070 $0.3515 $0.3515 $2,655,679 $2,655,679 $1,310,000 $1,345,679 $1,346,000 0 FY07/08 $681,831,281 $0.3505 $0.3505 $2,393,519 $2,383,260 $1,267,527 $1,125,992 $1,130,000 0 FY06/07 $511,154,623 $0.3481 $0.3481 $1,779,329 $1,779,329 $851,329 $928,000 $928,000 0 FY05/06 $377,743,200 $0.3447 $0.1528 $1,302,081 $577,192 $1,060 Not Calc. $576,132 Not Calc. FY04/05 $303,180,006 $0.3432 $0.1528 $1,040,514 $463,259 N/A 1,040,514 $463,259 $577,255 FY03/04 $279,403,487 $0.3141 $0.1528 $877,606 $426,929 N/A 877,606 $426,929 $450,677 FY02/03 $246,640,476 $0.2936 $0.1528 $724,136 $376,867 N/A 724,136 $376,867 $347,269 FY01/02 $233,552,164 $0.2576 $0.1528 $601,630 $356,868 N/A 601,630 $356,868 $244,762 The highest levy in a Lyon County area in FY2007/2008 is within the City of Yerington at $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 FY2007/2008 is $3.0988 per $100 of assessed valuation, $0.5412 below the $3.64 cap. As indicated earlier, the recent property tax limitation legislation limits the amount the taxpayer will pay for property tax, regardless of the amount levied or the $3.64 cap. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 33 The following table shows a hypothetical FY2007/2008 tax bill for the owner of a $100,000 home within the City, before abatement under the property tax limitation legislation. Local Government Taxing Unit Levy Tax Before Abatement State $0.1700 $59.50 School District $1.3367 $467.85 Lyon County $0.8644 $302.54 City of Fernley $0.3505 $122.68 Fernley Swimming Pool District $0.2000 $70.00 North Lyon Fire Maintenance District $0.1772 $62.02 Total $3.0988 $1,084.59 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. If this were an existing home subject to abatement, the City would receive approximately half the amount (the other half abated). FY2007/2008 Property Tax Bill on a new $100,000 Home in Fernley County, $0.8664, 28% City, $0.3505, 11% Pool, $0.2000, 6% Fire Dist., $0.1772, 6% State, $0.1700, 5% School, $1.3367, 44% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 34 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. A history of collections for business licenses is shown in the following table: 0 20000 40000 60000 80000 100000 120000 140000 160000 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 Business License Revenue The revenue estimate for FY2008/2009 was based on this trend analysis and other information such as population. Business license revenues are expected to be essentially flat from FY07/08 due to general economic slowdown. To date, most of the economic downturn related to the residential housing market. Several businesses have opening recently including WalMart, Lowe’s, and food and beverage operations. The City believes that these businesses will remain open until the residential housing markets rebounds. 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 again raised rates effective April 1, 2007 for the majority of these public utilities. A history for revenue from business license/franchise fees as well as a projection of franchise fees for FY2008-2009 is shown in the following table: $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 FY02/03 FY04/05 FY06/07 FY08/09 Public Utility License/Franchise Revenue The revenue estimate for FY2008/2009 was based on this trend analysis and other information such as population. The number of customers assumed to be served by the public utilities was not changed because the net effect of a decrease in the number of residential customers in offset by an increase in the number of commercial customers. A ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 35 more specific breakdown of the revenue from public utilities is shown in the following table: Public Utility Type of Business Rate FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 Sierra Pacific Power (Bus Lic) Electricity 2% $163,663 $184,914 $215,600 $225,000 $278,000 $371,250 Southwest Gas (Bus Lic) Natural Gas 3% 159,794 264,917 278,000 290,000 333,400 409,640 Wasatch Energy (Bus Lic) Natural Gas 3% 95,500 99,402 109,000 114,000 134,500 165,320 AT&T (Bus Lic) Telephone 2% 37,359 41,379 44,100 46,000 55,700 74,250 AT&T (Bus. Lic) Comm. 2% 3,123 2,824 2,250 2,000 3,000 3,300 Charter Communications (Franchise) Cable TV 5% 48,943 52,665 54,000 55,100 60,500 60,500 Reno Disposal (Franchise) Refuse Disposal 5% 112,000 116,112 129,000 135,450 143,000 143,000 Other Various 12,614 1,971 4,050 2,000 7,740 TOTAL $632,996 $765,184 $863,449 $850,000 $1,010,000 $1,235,000 Fees for cable TV are already at the maximum of The City intends to amend its contract with Reno Disposal to increase the franchise fee. The budget estimates do not include the proposed increase. The budget will be amended during FY2009 if this increase is enacted. 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 $101,200 in FY2007/2008 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 Community Development Department. The City anticipates revenue of approximately $500,000 from building permit fees during FY2008/2009. Revenues from building permits are down significantly primarily as a result of a soft residential housing market. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY078/0 FY08/09 Building Permits ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 36 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 Community Development Department. The City anticipates revenue of approximately $100,000 from planning and zoning application fees in FY2008/2009. 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 $11,000 during FY2008/2009 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 components 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: 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 37 The amounts (expressed in thousands of dollars) available for distribution in Lyon County (the City receives only a small portion of this revenue) for consolidated tax are listed in the following table: Amounts in thousands FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 Basic City-County Relief Tax $ 1,643 $ 1,988 $ 1,934 $2,624 $2,378 $2,050 Supplemental City County Relief Tax 8,382 8,881 9,905 11,178 12,249 12,438 Cigarette Tax 271 285 308 306 331 325 Liquor Tax 49 51 57 58 69 68 Real Property Transfer Tax (RPTT) 746 1,101 1,954 1,919 787 520 Government Services Tax (GST) 2,144 2,540 2,585 3,230 3,158 3,103 TOTAL $13,237 $14,846 $16,743 $19,315 $18,972 $18,504 The following table shows the trend of the elements of consolidated tax for Lyon County since incorporation of the City in July 2001: $0.00 $5,000,000.00 $10,000,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 FY01/02 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 Liquor GST RPTT Cigarette 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 FY2008/2009 indicate that approximately $5.6 million will actually be collected for in Lyon County but approximately $12.4 million will be distributed as part of consolidated tax for ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 38 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 distribution of consolidated tax in Lyon County is shown in the following table: Amounts in thousands FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 Stagecoach GID $ 19 $ 19 $19 $ 19 $ 19 $ 19 Willowcreek GID 2 2 2 2 2 2 Lyon County 11,000 12,230 15,083 17,413 17,041 17,413 City of Yerington 292 291 305 356 380 356 City of Fernley 123 144 189 215 215 215 Carson-Truckee Water Conservancy District 8 8 10 11 11 11 Central Lyon Fire Protection 396 430 505 586 582 586 Mason Valley Fire Protection 56 57 61 68 70 68 Mason Valley Mosquito Abatement District 50 50 53 60 62 60 North Lyon Fire Protection 120 130 157 174 176 174 Silver Springs Stagecoach Hospital 66 68 75 84 92 84 Smith Valley Fire Protection 41 43 53 64 60 64 South Lyon Hospital District 206 209 231 262 263 262 Total $12,313 $13,683 16,743 19,315 18,972 19,315 GID-General Improvement District The following table shows the trend of the distributions of consolidated tax for entities within Lyon County since incorporation of the City in July 2001: $0.00 $5,000,000.00 $10,000,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 FY01/02 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY07/08 Lyon County Others This chart shows that Lyon County is primarily benefiting from growth in sales tax, real property transfer tax, and the other elements of consolidated tax while the other taxing entities do not enjoy the substantial revenue increases. The City of Fernley intends to address this fundamental fiscal inequity as Lyon County reduces shared revenues and decreases the level of service Lyon County provides under shares service agreements. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 39 However, the benefit of the City of Fernley not obtaining a significant portion of this revenue source is that declines in this revenues source do not dramatically impact the City’s operating budget. 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. The State of Nevada disburses the City’s portion of certain 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 FY2008/2009 estimated amounts allocable to the City of Fernley are shown in the following table. Description Rate per Gallon Note Statute Reference Estimated FY09 Lyon Co. Total Estimated FY09 City Amount County Option (RTC) 9¢ 1 NRS 373.030 $1,802,256 $733,158 County Option 1 1¢ 2 NRS 365.192 $201,278 $70,508 Motor Vehicle Fuel Tax 1.25¢ 3 NRS 365.180 310,698 0 Motor Vehicle Fuel Tax 1.75¢ 4 NRS 365.190 347,065 141,186 Motor Vehicle Fuel Tax 2.35¢ 5 NRS 365.180 584,107 100,137 Subtotal $1,443,148 $311,831 Total N/A $3,245,404 $1,044,989 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 FY2008/2009 assessed value of Lyon County is $1,857,324,881 and the FY2008/2009 assessed value of the City of Fernley is $755,529,070. The City of Fernley assessed value is 40.68% of the total county assessed value, therefore the City of Fernley could expect $733,158 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 19,585 and the estimated population of Lyon County is 55,903. Therefore, the City of Fernley would receive 35.03% or $70,508 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 40.68% of this tax or $141,186. 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. The formula results in 17.14% of the tax or $100,137 apportioned to the City of Fernley. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 40 The historical estimates for the City’s portion of fuel taxes are shown in the following table: Tax FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 (RTC) 9¢ $521,877 $501,811 $520,230 $527,439 $612,740 $632,945 $658,883 $733,158 1¢ $44,382 $44,232 $45,380 $49,550 $58,805 63,177 62,895 $70,508 1.25¢ 0 0 0 0 0 1.75¢ 101,476 96,199 $100,273 $101,396 $117,818 121,864 126,933 141,186 2.35¢ 59,325 53,790 $57,023 $68,574 $76,985 88,307 97,105 100,137 Subtotal $205,183 $194,221 202,676 219,520 $253,608 273,348 $286,933 $311,831 Total $727,060 $696,032 $722,906 $746,959 $866,348 906,293 $945,816 $1,044,989 The following graph shows the data for fuel taxes: $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 FY01/02 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 2.35¢ 1.75¢ 1¢ 9¢ RTC 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 of 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. Lyon County changed its mind in FY07 and decided not to share this revenue with the City. The City is investigating its alternatives to restore the fiscal inequity caused by Lyon County’s action. Parks Agreement: Lyon County has a policy to provide funding to Cities and other districts in the County for parks. In FY2001/2002 through FY2006/2007 the City received $52,882 each fiscal year from Lyon County for parks. The FY08 budget for Lyon County increased this shared revenue to $60,000. The City anticipates the same amount for FY09. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 41 Fines and Forfeitures: Municipal Court Fines and Forfeitures: Revenue from Court operations is expected to increase based on trends of revenues in prior fiscal years. The revenue estimate is $161,000 for FY 09. The historical revenue for fines and forfeits is shown in the following chart: $50,000 $100,000 $150,000 $200,000 $250,000 FY03 FY04 FY05 FY06 FY07 FY08 FY09 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. Capital contributions and the funded portion of depreciation are slated for use in capital projects and are not available for payment of operating costs. In FY08, the City increased both user rates and capital fees in order to maintain sufficient balances for projected capital projects, especially compliance with unfunded mandates such as water treatment for arsenic removal. The increase for user fees was spread over a five year implementation period. Rates were increased 50% effective July 1, 2007 and will be increased an additional 35% on July 1, 2008. The revenue estimates for FY09 were based on an analysis of the customer base and the revised user fees as shown in the following chart. The customer base for residential is flat to down and the customer base for commercial is up. The net effect is essential a flat assumption for the number of customers on the system between FY08 and FY09. The rates used for the analysis have been adopted by the City Council in the five year phased rate increase: ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 42 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 FY01/02 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 Water Use Fees Sewer Use Fees 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. The subdivision is largely built out so no revenue is expected in FY09. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 43 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. Note that these levies are before the abatement provisions of the tax limitation legislation. Year Fernley Allowed Rate Fernley Levied Rate Excess Rate Not Levied FY2008-2009 $0.3515 $0.3515 FY2007-2008 $0.3505 $0.3505 FY2006-2007 $0.3481 $0.3481 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 $0.3481$0.3505$0.3515 $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 FY07 FY08 FY09 Fiscal Year Rate Levied Rate Rate Not Levied ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 44 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 FY2008-2009 755,529,070 10.81% 1,857,324,881 11.02% FY2007-2008 681,831,281 33.39% 1,672,893,091 22.59% FY2006-2007 511,154,623 35.32% 1,364,617,737 29.58% FY2005-2006 377,743,200 24.60% 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 $511 $682 $756 $0 $100 $200 $300 $400 $500 $600 $700 $800 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Fiscal Year Assessed Value (millions) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 45 Population History The following table shows population data as published by the Nevada State Demographer, except for July 1, 2008 estimates which are based on City data: Year Fernley % Change Lyon County % Change July 1, 2008 (est) 20,000 2.08% 57,100 2.14% July 1, 2007 19,585 3.90% 55,903 3.46% July 1, 2006 18,850 15.24% 54,031 10.58% July 1, 2005 16,357 18.74% 48,860 9.44% July 1, 2004 13,775 17.55% 44,646 8.25% July 1, 2003 11,718 12.24% 41,244 6.36% July 1, 2002 10,440 9.56% 38,777 3.88% July 1, 2001 9,529 (0.43%) 37,329 (0.17%) July 1, 2000 9,570 8.40% 37,393 8.38% April 1, 2000 8,830 34,501 Population - 10,000 20,000 30,000 40,000 50,000 60,000 4/1/2000 7/1/2000 7/1/2001 7/1/2002 7/1/2003 7/1/2004 7/1/2005 7/1/2006 7-1-2007 (est) 7-1-2008 (est) Fernley Lyon Co. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 46 Capital Expenditure Summary Capital Expenditures for FY2008/2009 are summarized in Appendix D. The largest capital improvement projects slated for FY2009 are water, alternative water, and sewer infrastructure projects. The operation and maintenance costs of these projects were factored into the multiyear water and sewer rate increase effective July 1, 2007. The capital improvement plan also has several streets projects funded primarily through shared revenues. The operation and maintenance costs for the street projects will be funded through gas taxes. The proposed water treatment plant and associated piping systems are expected to cost in excess of $63 million. The proposed treatment plan is designed to meet necessary compliance with the USEPA Arsenic Rule. Currently, all groundwater sources exceed the Maximum Contaminant Level for arsenic. However, the City and the State of Nevada (regulatory authority for the federal unfunded mandate) executed a Bilateral Compliance Agreement extending the compliance to January 2009. The treatment plant is also designed to treat surface water in the future to utilize the City’s surface water rights since most of the underground right are currently used for existing customers. A combination of groundwater and surface water will be required to provide adequate potable water to the growing customer base. The system is also designed to provide untreated or minimally treated water for irrigation, landscaping, and construction. The largest sewer project is a lift station project estimated at $2.5 million. . The largest street project is reconstruction of the indicated street at an estimated cost of approximately $400,000. The City will also be spending approximately $375,000 for its Crack Seal Program and its Slurry, Seal Coat and Patch Program for multiple areas in the City. These programs will be paid from Gas Taxes. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 47    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 (eliminated in FY2007/2008) Mayor and City Council Office of the City Manager Office of the City Attorney Office of the City Treasurer/Finance Office of the City Clerk Facility and General Expenditures Information Systems Judicial: Municipal Court Public Works: Public Works (Streets & Storm Drains) Note: Transferred to Special Revenue Fund in FY2003/2004 Culture and Recreation: Parks Community Support: Building Planning/Community Development Health: Animal Services Vector Control Services Debt Service: Debt Service-City Hall Construction Bond Other Uses: Contingency Interfund Transfers ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 48 General Fund Summary The following table summarizes the activity of the General Fund: FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: Taxes 590,127 929,276 1,130,000 1,351,000 Licenses and Permits 2,231,632 1,920,189 1,946,400 2,130,000 Intergovernmental Resources 242,754 248,128 250,000 256,000 Charges for Services 0 0 0 0 Fines and Forfeits 192,646 199,723 152,500 161,000 Miscellaneous 289,389 256,871 443,753 93,500 Total Revenues 3,546,548 3,554,187 3,922,653 3,991,500 Operating Expenditures: Administration 574,932 855,805 0 0 Mayor/City Council 0 0 129,300 109,000 Office of the City Manager 0 0 296,650 303,800 Office of the City Attorney 0 0 124,060 113,700 Finance 142,423 169,490 210,700 167,900 Office of the City Clerk 0 0 253,450 233,350 Facility and General Expense 0 0 323,369 363,000 Technology 0 0 0 120,900 Municipal Court 163,631 192,468 265,900 252,200 Public Works (Streets/Stormdrains) 0 0 0 Parks 508,797 646,383 611,800 622,000 Vector Control 161,150 170,593 191,860 202,710 Community Development 810,965 800,700 929,080 0 Animal Services 95,588 105,312 137,250 120,400 Planning 0 0 0 423,100 Building 0 0 0 489,900 Debt Service 94,789 379,032 378,702 379,113 Total Operating Expenditures 2,552,275 3,319,783 3,852,121 3,901,073 Excess of Revenues over Operating Expenditures 994,273 234,404 70,532 90,427 Capital Expenditures: Office of the City Attorney 0 0 0 9,000 Animal Services 0 25,044 0 0 Parks 28,710 6,700 63,853 0 Vector Control 19,247 36,102 0 0 Community Development 26,342 16,741 0 0 Total Capital Expenditures 74,299 84,587 63,853 9,000 Total Expenditures 2,626,574 3,404,370 3,915,974 3,910,073 Revenues less Total Expenditures 919,974 149,817 6,679 81,427 Other Financing Sources & Uses: Contingency (100-900-900) 0 0 0 100,000 Sale of Capital Assets (100-392-100) -61,450 Transfer to Streets Fund (100-900-910) 0 550,000 Transfer to Capital Fund (100-900-910) 850,000 0 0 0 Transfer to Private Sector Community Support 17,317 20,000 20,000 Transfer to (from) Grants Fund (100-900-910) 0 0 -10,000 Total Other Financing Uses 850,000 505,867 10,000 120,000 Total Expenditures and Other Uses 3,476,574 3,910,237 3,925,974 4,030,073 Net Increase (Decrease) in fund Balance 69,974 -356,050 -3,321 -38,573 Fund Balance July 1 875,022 944,996 588,946 585,625 Fund Balance June 30 944,996 588,946 585,625 547,052 Designated for future projects -275,126 Undesignated Fund Balance 271,926 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 49 The following table summarizes General Fund Expenditures by Object: FY05-06 Actual FY06-07 Expected FY07-08 Expected FY08-09 Budget Salaries and Wages 1,221,480 1,298,263 1,673,656 1,687,300 Payroll Taxes and Benefits 400,436 463,907 624,123 804,900 Service and Supplies 835,570 1,178,581 1,175,640 1,029,760 Capital Expenditures 74,299 84,587 63,853 9,000 Debt Service 94,789 379,032 378,702 379,113 Contingency and Transfers 850,000 505,867 10,000 120,000 Total 3,476,574 3,910,237 3,925,974 4,030,073 The following table summarizes General Fund Expenditures by Function FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Administration 574,932 855,805 0 0 Mayor/City Council 0 0 129,300 109,000 Office of the City Manager 0 0 296,650 303,800 Office of the City Attorney 0 0 124,060 122,700 Finance 142,423 169,490 210,700 167,900 Office of the City Clerk 0 0 253,450 233,350 Facility and General Expense 0 0 323,369 363,000 Information Technology 0 0 0 120,900 Municipal Court 163,631 192,468 265,900 252,200 Public Works (Streets/Stormdrains) 0 0 0 0 Parks 537,507 653,083 675,653 622,000 Vector Control 180,397 206,695 191,860 202,710 Community Development 837,307 817,441 929,080 0 Building 0 0 0 489,900 Planning 0 0 0 423,100 Animal Services 95,588 130,356 137,250 120,400 Debt Service 94,789 379,032 378,702 379,113 Contingency and Transfers 850,000 505,867 10,000 120,000 Total 3,476,574 3,910,237 3,925,974 4,030,073 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 50 The following chart shows FY2008/2009 General Fund Revenues by Type FY08/09 General Fund Revenues Licenses and Permits, $2,130,000 , 54% Taxes, $1,351,000 , 34% Fines and Forfeitures, $161,000 , 4% Miscellaneous, $93,500 , 2% Intergovernmental, $256,000 , 6% The following chart shows FY2008/2009 General Fund Expenditures By Object FY2008/2009 General Fund Expenditures By Object Capital Expenditures, $9,000 , 0% Debt Service, $379,113 , 9% Service & Supply, $1,029,760 , 26% Employee Benefits, $804,900 , 20% Contingency & Transfers, $120,000 , 3% Salaries & Wages, $1,687,300 , 42% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 51 The following chart shows FY2008/2009 General Fund Expenditures By Function FY2008/2009 General Fund Expenditures By Function Vector Control, $202,710 , 5% Contingency & Transfers, $120,000 , 3% Debt Service, $379,113 , 9% Animal Services, $120,400 , 3% Planning, $423,100 , 10% Building, $489,900 , 12% Parks, $622,000 , 16% Municipal Court, $252,200 , 6% Information Technology, $120,900 , 3% Facilities and General Expenditures, $363,000 , 9% Finance, $167,900 , 4% City Attorney, $122,700 , 3% City Manager, $303,800 , 8% Mayor/Council, $109,000 , 3% City Clerk, $233,350 , 6 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 52 The detail for General Fund Revenues is shown in the following table: Account Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget TAXES: 100-310-100 Property Taxes 583,851 921,565 1,120,000 1,346,000 100-310-200 Property Taxes - Delinquent 6,276 7,711 10,000 5,000 Total Taxes 590,127 929,276 1,130,000 1,351,000 LICENSES AND PERMITS: 100-320-100 Business License Fees 111,075 123,382 144,000 144,000 100-320-110 Bus Lic/Franchise Public Utilities 863,449 968,668 1,010,000 1,235,000 100-320-120 Realtor License Fees 100-320-150 Liquor License Fees 24,831 27,736 25,200 30,000 100-320-160 Gaming License Fees 97,121 98,753 101,200 105,000 100-320-170 Animal License Fees 2,348 4,318 3,000 3,000 100-320-180 Passport Fees 9,300 17,742 13,000 13,000 100-320-200 Building Permits and Fees 1,042,513 614,080 550,000 500,000 100-320-205 Fire Life Safety Contract 0 100-320-210 Planning and Zoning Permits and Fees 80,995 65,510 100,000 100,000 Total Licenses and Permits 2,231,632 1,920,189 1,946,400 2,130,000 INTERGOVERNMENTAL RESOURCES: 100-330-310 CTX (Consolidated Tax) 187,872 188,128 190,000 196,000 100-330-400 Park Agreement 54,882 60,000 60,000 60,000 State Grants Total Intergovernmental Resources 242,754 248,128 250,000 256,000 CHARGES FOR SERVICES: Total Charges for Services 0 0 0 0 FINES AND FORFEITS: 100-350-100 Municipal Court Revenue 166,847 174,971 132,000 140,000 100-350-200 Warrant Fees 12,126 13,778 11,000 11,000 100-350-205 Misc Fees 10,713 7,934 7,000 7,000 100-350-210 Bond Fees 2,960 3,040 2,500 3,000 Total Fines and Forfeits 192,646 199,723 152,500 161,000 MISCELLANEOUS: 100-360-100 Interest Income 60,479 40,234 45,000 40,000 100-360-200 Building Rental 20,000 20,000 10,200 100-360-201 Interfund Cost Allocation Enterprise funds 40,000 40,000 100-360-202 Interfund Cost Alloc.City Projects 268,700 100-360-710 Park Development 8,150 48,355 1,000 0 100-360-735 Donations-Youth City Council 1,250 6,500 5,000 100-360-736 Donations-Founders Day 4,804 500 500 100-360-820 Bike Path Assessment 28,515 55,414 100-360-821 Hwy 95A Turn Lane @ Cottonwood 13,724 100-360-822 Hwy 95A Sidewalk Curb Gutter 27,378 100-360-824 Miller Lane @ Shadow Lane 105,381 100-360-825 Park In Lieu Willow Springs 63,853 100-360-905 School RCT Admin Fee 1,536 1,344 2,000 2,000 100-360-900 Miscellaneous 51,604 58,092 6,000 6,000 Total Miscellaneous 289,389 256,871 443,753 93,500 TOTAL REVENUES 3,546,548 3,554,187 3,922,653 3,991,500 Analysis: In FY 2008-2009 the property tax revenue increased 20% on an increase in assessed value of 11%. The difference represents two factors: new construction and recovery of prior abatement of tax under property tax limitation legislation. In FY2006- 2007, the City increased the tax rate from $0.1528 to $0.3481 per $100 of assessed value (more than double) and assessed value increased 35.32%. However, revenue to the City ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 53 only increased 52% due to the abatements under the property tax limitation legislation. The budget assumes the maximum legal levy even though each taxpayer will not pay the full levy and the City will not receive the full revenue from the levy. Previously, the largest component of general fund revenues was Building Permits and Fees at approximately 25% to 47% of total general fund revenues each fiscal year. In the last fiscal year, revenues from Building Permits and Fees decreased substantially due to a slow down in residential development, despite an increase in the commercial market. This revenue source is volatile and will likely decrease in future years as growth slows and projects are built out. In FY09, 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. Decreases 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. If the City assumes responsibility for some services currently provided by Lyon County (such as law enforcement), the City would request reallocation of the Consolidated Tax revenue or other revenues to fund the programs. There is no guarantee than any re-allocation would occur. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 54 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 Mayor and City Council 412 General Government Office of the City Manager 413 General Government Office of the City Attorney 414 General Government Office of the City Treasurer/Finance 415 General Government Office of the City Clerk 416 General Government Facilities and General Expenditures 417 General Government Information Technology 418 Judicial Municipal Court 425 Public Works Public Works (Streets and Storm Drains) 475 Culture and Recreation Parks 575 Health Animal Services 525 Health Vector Control 528 Community Support Community Dev. (Building & Planning) 600 Community Support Building Department 605 Community Support Planning Department 610 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 55 Administration Description: The Administration cost center was eliminated in the FY2007/2008 budget and the costs previously accounted for in this cost center were allocated to other cost centers. The Administration cost center previously included 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. Account # Descripton FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-411-100 Salaries and Wages 231,650 276,655 100-411-130 Overtime 980 9,777 100-411-140 Annual Leave Pay 2,490 3,537 100-411-150 Sick Leave Pay 2,354 2,476 100-411-160 Holiday Pay 3,067 4,515 Subtotal Salaries & Wages 240,541 296,960 0 100-411-200 FICA 987 1,358 100-411-210 Medicare 3,377 4,160 100-411-220 Unemployment 966 1,968 100-411-230 Retirement (PERS) 42,416 50,933 100-411-240 Group Insurance 32,500 44,941 100-411-250 Workers Compensation Insurance 5,112 8,711 100-411-260 Other Benefits 787 858 Subtotal Employee Benefits 86,145 112,929 0 Total Salaries & Benefits 326,686 409,889 0 100-411-300 Professional Services-City Attorney 50,582 55,455 100-411-310 Professional Services-Legal 13,360 63,426 100-411-321 Professional Services-GIS 2,938 100-411-322 Professional Services-Other 20,265 29,304 100-411-342 Tech Services-Other 922 2,486 100-411-344 Tech Services-Elections 1,775 0 100-411-348 Commission on Ethics Assessment 2,326 2,277 100-411-410 Utility Service-Water & Sewer 1,153 1,971 100-411-412 Utility Service-Refuse 1,420 1,466 100-411-430 Service-Building Maintenance 3,005 1,505 100-411-441 Rental 1,745 3,518 100-411-520 Insurance 46,310 59,252 100-411-530 Communications 6,384 8,343 100-411-540 Advertising 2,055 11,150 100-411-550 Printing and Postage 4,554 15,243 100-411-580 Travel & Training 13,937 22,754 100-411-581 Dues & Subscriptions-NLCM 13,811 8,482 100-411-585 Educational Assistance Program 0 66 100-411-600 General Supplies 8,461 58,057 100-411-604 General Supplies-Passports 1,250 100-411-605 Minor Equipment 3,560 11,275 100-411-612 Bldg Maint-Supplies 1,347 31 100-411-621 Natural Gas 3,257 3,971 100-411-622 Electricity 19,147 28,316 100-411-640 Books and Periodicals 0 1,195 100-411-650 Community Support 28,870 52,185 Total Service & Supplies 248,246 445,916 0 Total Operating Expenses 574,932 855,805 0 Total Capital 0 0 0 Total Operating and Capital 574,932 855,805 0 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 56 Mayor and City Council Organizational Chart: Mayor/City Council FY2008/2009 Expenditures Salaries and Wages, $55,700 , 52% Payroll Taxes and Benefits, $10,300 , 9% Service and Supplies, $43,000 , 39% Capital, , 0% Description: 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 Voters of Fernley Elayne Logue Council Ward 1 Joe Mortensen Council Ward 2 Monte Martin Council Ward 3 Curt Chaffin Council Ward 3 Cal Eilrich Council Ward 5 Todd Cutler Mayor ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 57 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 Goals and Objectives: 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 58 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 59 Line Item Budget Mayor/City Council: Account # Descripton FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-412-100 Salaries and Wages 54,100 55,700 Subtotal Salaries & Wages 0 0 54,100 55,700 100-412-200 FICA 1,900 1,900 100-412-210 Medicare 800 900 100-412-220 Unemployment 600 600 100-412-230 Retirement (PERS) 5,100 5,200 100-412-250 Workers Compensation Insurance 1,700 1,700 Subtotal Employee Benefits 0 0 10,100 10,300 Total Salaries & Benefits 0 0 64,200 66,000 100-412-322 Professional Services-Other 3,000 3,000 100-412-342 Tech Services-Other 1,000 1,000 100-412-530 Communications 2,000 2,000 100-412-540 Advertising 2,000 2,000 100-412-550 Printing and Postage 2,500 2,500 100-412-580 Travel & Training 15,000 10,000 100-412-581 Dues & Subscriptions 500 500 100-412-600 General Supplies 15,000 10,000 100-412-602 Supplies - Events 5,000 5,000 100-412-603 Youth City Council 6,500 5,000 100-412-605 Minor Equipment 12,000 2,000 100-412-650 Community Support 600 0 Total Service & Supplies 0 0 65,100 43,000 Total Operating Expenses 0 0 129,300 109,000 Total Capital 0 0 0 0 Total Operating and Capital 0 0 129,300 109,000 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 60 Office of the City Manager Organizational Chart: Office of City Manager FY2008/2009 Expenditures Capital, , 0% Salaries and Wages, $176,000 , 58% Payroll Taxes and Benefits, $75,000 , 25% Service and Supplies, $52,800 , 17% Description: 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 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 Voters of Fernley Mayor and City Council City Manager Various Departments Office of the City Manager Assistant to the City Manager Administrative Specialist Office Assistant II ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 61 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 Legal Requirements: The City operates under a Council/Manager form of government. Ordinance 2001-001 created the Office of the City Manager. Significant Expenditures and Staffing Changes: One new position was added to perform human resource, emergency management, risk management, and other duties. Staffing Levels and Cost Allocation: Portions of the cost of the department are allocated to this cost center in the General Fund as well as to enterprise funds. See Appendices A through C of this report for a full analysis of the cost allocations. Goals and Objectives: 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. Objective To keep current on trends and issues at both the state and federal level. Objective To coordinate efforts for intergovernmental relations. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 62 Line Item Budget - Office of the City Manager: Account # Descripton FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-413-100 Salaries and Wages 144,000 145,400 100-413-130 Overtime 9,000 1,500 100-413-140 Annual Leave Pay 5,000 10,900 100-413-150 Sick Leave Pay 1,000 10,100 100-413-160 Holiday Pay 6,000 8,100 Subtotal Salaries & Wages 0 0 165,000 176,000 100-413-200 FICA 0 100-413-210 Medicare 2,500 2,600 100-413-220 Unemployment 800 1,800 100-413-230 Retirement (PERS) 32,600 35,800 100-413-240 Group Insurance 19,200 29,500 100-413-250 Workers Compensation Insurance 4,000 5,300 100-413-260 Other Benefits 0 Subtotal Employee Benefits 0 0 59,100 75,000 Total Salaries & Benefits 0 0 224,100 251,000 100-413-310 Professional Services-Legal 10,000 10,000 100-413-322 Professional Services-Other 15,000 10,000 100-413-342 Tech Services-Other 1,500 1,500 100-413-441 Rental 300 0 100-413-530 Communications 3,150 3,000 100-413-540 Advertising 2,000 2,000 100-413-550 Printing and Postage 11,500 11,500 100-413-580 Travel & Training 10,000 5,000 100-413-581 Dues & Subscriptions 300 300 100-413-585 Educational Assistance Program 2,000 500 100-413-600 General Supplies 10,000 7,500 100-413-605 Minor Equipment 1,300 1,000 100-413-640 Books and Periodicals 1,500 500 100-413-650 Community Support 4,000 Total Service & Supplies 0 0 72,550 52,800 Total Operating Expenses 0 0 296,650 303,800 Total Capital 0 0 0 0 Total Operating and Capital 0 0 296,650 303,800 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 63 Office of the City Attorney Organizational Chart: Office of City Attorney FY2008/2009 Expenditures Salaries and Wages, $53,400 , 43% Payroll Taxes and Benefits, $22,700 , 19% Service and Supplies, $37,600 , 31% Capital, $9,000 , 7% Description: The City Attorney's Office provides legal advice to City Council, Mayor, City Manager, and department heads. The duties of the City Attorney require the exercise of extensive independent judgment as the ultimate legal authority for the City including the following: 1. Renders verbal and written opinions to the City Council, Mayor, City Manager, department heads, and other City officials. 2. Attends City Council meetings and conferences for the purpose of learning policies underlying official action, and gives advice on legal questions involved, including advice as to alternative legal and administrative approaches to the solution of major City problems. 3. Plans and supervises the work of professional staff. 4. Supervises the preparation and trial of important cases. Voters of Fernley Mayor and City Council City Manager City Attorney Legal Secretary Coordination with Outside Counsel ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 64 5. Represents the City in all courts. 6. Reviews information to keep informed of proposed state and federal legislation affecting the City. 7. Prepares, reviews, and approves proposed ordinances for final consideration by the City Council. 8. Demonstrates continuous effort to improve operations, decrease turnaround times, streamline work processes, and work cooperatively and jointly to provide quality seamless customer service. 9. Research, draft, review and negotiate contracts and agreements including, but not limited to, interlocal agreements, land transactions, employment, planning, sewer, business licenses, grant proposals and redevelopment. 10. Draft, review, evaluate, revise and recommend City ordinances, policies and procedures; explain and promote City policies and issues to employees, elected officials and the general public. 11. Perform legal research and provide legal opinions to educate all departments, board, commissions, agencies and established committees. 12. Review, evaluate, negotiate and consult on all claims, court complaints, cross claims and third party accusations filed against the City. 13. Prepare, file, research and represent the City in all administrative agency, State and Federal appellate actions. 14. Review, analyze, answer, oppose, initiate, research and file all pleadings in court actions; perform discovery including interrogatories, depositions, investigations, evidence preparation and preparation of reports. 15. Serve as City's counsel in all court appearances, mediation, arbitration, negotiation and conferences with opposing counsel; prepare legal strategy for trial, discovery, negotiations, resolutions, mediation, arbitration and court appearances. 16. Select, train, motivate and evaluate legal personnel; provide or coordinate staff training; work with employees to correct deficiencies; implement discipline and termination procedures. 17. Plan, direct, coordinate and review the work plan for the assigned division; meet with staff to identify and resolve problems; assign work activities, projects and programs; monitor work flow; review and evaluate work products, methods and procedures. 18. Participate in the development and administration of the division budget; direct the forecast of additional funds needed for staffing, equipment, materials and supplies; direct the monitoring of and approve expenditures; direct and implement adjustments as necessary. 19. Serve as liaison for the assigned division with other City departments, divisions and outside agencies; negotiate and resolve significant and controversial issues. 20. Provide responsible staff assistance to the City; prepare and present staff reports and other necessary correspondence. Legal Requirements: Pursuant to NRS 266.470, City Ordinance 2001-003, and the City Council approved job description, the City Attorney is the legal adviser of the City ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 65 Council, Mayor, City Manager, and department heads in all matters respecting the affairs of the city and shall perform such duties as may be required of him by the City Council or prescribed by ordinance. Significant Expenditures and Staffing Changes: The City Attorney’s Office is requesting the purchase of an office copier to meet the current and future demands of court and litigation. Staffing Levels and Cost Allocation: The costs of the office of the City Attorney are allocated to various cost centers as follows: 40% to prosecution services, 40% to general civil services, and 20% to legal matters relating to enterprise funds. Goals and Objectives: Goal Act as General Counsel for the Mayor and City Council, City Manager and Department Heads to ensure that City operations comply with all federal, state and local laws. Objective Provide legal representation through legal advice by providing responses which are timely, clear, supported by law, and answers the question(s) asked. Performance Measures a. Respond to requests for service for general legal analysis, advice, opinions and answers related to legal issues within 10 business days of receipt 90% of the time. b. Review submitted standard contracts within 5 business days 90% of the time and submitted non-standard contracts within 15 business days 90% of the time. c. Review other submitted non-standard legal documents to which the City is a party within 15 business days 90% of the time. Objective Provide legal assistance and guidance at Council, board, and staff meetings. Performance Measures a. Attend City Council Meetings 100% of the time. b. Attend appointed boards 90% of the time. c. Attend other boards as requested 100% of the time. d. Maintain a satisfactory level of quality performance by requesting a client satisfaction survey bi-annually from the City Council, Mayor, and all appointed boards, rating the services received from the City Attorney’s Office on the issues of timeliness, cooperation, courtesy, availability, understanding clients needs, quality of service and overall satisfaction. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 66 Objective Provide legal services regarding ordinances, resolutions and other council actions. Performance Measures a. Respond to city council requests for ordinances and resolutions as requested within 8 business days of request 95% of the time. b. Provide legal review of agenda items submitted to the City Attorney’s Office within 5 business days 90% of the time. Objective Defend and prosecute civil lawsuits involving the city. Performance Measures a. Upon receipt of a complaint or other legal pleading, requiring outside counsel, notify the necessary parties including the City Manager, Mayor and insurance representative within 2 business days 95% of the time. b. Review all pleadings filed by outside counsel within 2 business days of receipt. c. Communicate with contracted outside legal counsel once a month, at a minimum, 95% of the time where cases are active. d. Provide legal briefings, at the minimum, once every two months. Objective Establish a City of Fernley Code. Performance Measure a. Prepare and submit an Ordinance to the City Council establishing and codifying the City of Fernley Code. Objective Promote continuing education to ensure competent representation. Performance Measure a. Fulfill requirements for State Bar of Nevada Continuing Education Requirements. b. Review case summaries received by from the US Supreme Court, 9th Circuit Court of Appeals, and Nevada Supreme Court within 5 business days of receipt 90% of the time. Goal Prosecute all criminal cases in such a manner that justice may be served. Objective Zealously represent the interest of the City in all criminal matters. Performance Measures a. Attend scheduled Court 100% of the time. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 67 Objective Critically review and analyze all criminal cases to determine that there is a reasonable likelihood of successful prosecution. Performance Measure a. Review and make charging decisions within 15 business days upon receipt of report submitted 90% of the time. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 68 Line Item Budget – City Attorney Cost Center: Account # Descripton FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-414-100 Salaries and Wages 43,100 44,000 100-414-130 Overtime 1,000 500 100-414-140 Annual Leave Pay 1,800 3,300 100-414-150 Sick Leave Pay 1,500 3,100 100-414-160 Holiday Pay 1,400 2,500 Other Benefits 0 0 860 0 Subtotal Salaries & Wages 0 0 49,660 53,400 100-414-200 FICA 0 100-414-210 Medicare 800 800 100-414-220 Unemployment 600 600 100-414-230 Retirement (PERS) 8,600 10,900 100-414-240 Group Insurance 3,300 8,800 100-414-250 Workers Compensation Insurance 1,600 1,600 Subtotal Employee Benefits 0 0 14,900 22,700 Total Salaries & Benefits 0 0 64,560 76,100 100-414-300 Professional Services-City Attorney 18,750 100-414-310 Professional Services-Legal 3,000 3,000 100-414-322 Professional Services-Other 3,000 3,100 100-414-342 Tech Services-Other 1,100 1,150 100-414-530 Communications 2,150 2,250 100-414-550 Printing and Postage 1,500 3,100 100-414-580 Travel & Training 6,500 9,000 100-414-581 Dues & Subscriptions 1,000 1,500 100-414-600 General Supplies 10,000 10,000 100-414-605 Minor Equipment 5,000 1,500 100-414-640 Books and Periodicals 7,500 3,000 Total Service & Supplies 0 0 59,500 37,600 Total Operating Expenses 0 0 124,060 113,700 100-414-741 Machinery 9,000 Total Capital 0 0 0 9,000 Total Operating and Capital 0 0 124,060 122,700 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 69 Office of the City Treasurer/Finance Department Organizational Chart: Finance FY2008/2009 Expenditures Salaries and Wages, $79,300 , 48% Payroll Taxes and Benefits, $35,900 , 21% Service and Supplies, $52,700 , 31% Capital, , 0% Description: The Finance Department provides financial management, internal control, and guidance to the City Manager, Mayor, and City Council. The Finance Department is responsible for utility billing, payroll, accounts payable, purchasing, fund accounting (general ledger), employee benefit administration, capital asset accounting, investment of central treasury, internal financial reporting, information technology, 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 Finance Department performs services for enterprise funds, the costs of the department are allocated between this cost center in the General Fund and the enterprise funds. The priorities of the Finance Department for the upcoming year are: Voters of Fernley Mayor/City Council City Manager Finance Dir. (City Treas.) Accountant (Dep. Treas.) Admin Specialist IT Specialist Technical Specialist GIS Accounting Tech (2.5 FTE) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 70 1. Streamline the steps needed for compliance with new auditing standards that require more formal internal controls. 2. Streamline processes in human resource management and payroll and assist in developing a separate human resource function in the City Manager’s office.. 3. Coordinate water and sewer rate analysis. 4. Provide quality internal and external customer service through appropriate training and policy/procedure development. 5. 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. 6. 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. 7. 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: One FTE was added to the department in FY09 related to information technology. See the information technology section for a description of this position. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 71 Staffing Levels and Cost Allocation: The staff levels and cost allocations for the department are shown in Appendix C of this report. A total of 1.405 FTE are allocated to this cost center. 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. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 72 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 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 73 Line Item Budget Office of the City Treasurer/Finance Cost Center: Account # Descripton FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-415-100 Salaries and Wages 62,240 73,187 89,700 64,800 100-415-130 Overtime 1,727 720 2,500 1,500 100-415-140 Annual Leave Pay 3,310 3,084 6,800 4,900 100-415-150 Sick Leave Pay 3,366 1,809 5,300 4,500 100-415-160 Holiday Pay 1,669 1,729 5,000 3,600 Subtotal Salaries & Wages 72,312 80,529 109,300 79,300 100-415-200 FICA 0 100-415-210 Medicare 976 1,106 1,600 1,200 100-415-220 Unemployment 363 625 600 800 100-415-230 Retirement (PERS) 13,554 15,283 22,100 16,000 100-415-240 Group Insurance 13,712 15,787 15,200 15,500 100-415-250 Workers Compensation Insurance 1,553 2,514 3,300 2,400 100-415-260 Other Benefits 72 78 400 0 Subtotal Employee Benefits 30,230 35,393 43,200 35,900 Total Salaries & Benefits 102,542 115,922 152,500 115,200 100-415-322 Professional Services-Other 9,703 7,766 10,000 4,000 100-415-328 Professional Services-Auditing 12,667 14,864 20,000 20,000 100-415-342 Tech. Services-Other 2,494 4,053 4,000 4,000 100-415-530 Communications 1,376 1,148 2,200 2,200 100-415-540 Advertising 904 2,667 1,000 3,000 100-415-550 Printing and Postage 1,265 1,649 2,000 2,000 100-415-580 Travel & Training 4,425 9,121 7,500 5,000 100-415-581 Dues & Memberships 989 647 1,000 1,000 100-415-585 Educational Assistance Program 0 0 1,000 100-415-600 General Supplies 5,212 6,035 5,000 5,000 100-415-605 Minor Equipment 846 5,500 5,000 5,000 100-415-640 Books & Periodicals 0 118 500 500 Total Service & Supplies 39,881 53,568 58,200 52,700 Total Operating Expenses 142,423 169,490 210,700 167,900 Total Capital 0 0 0 0 Total Operating and Capital 142,423 169,490 210,700 167,900 Analysis: ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 74 Information Technology Organizational Chart: Information Technology FY2007/2008 Expenditures Salaries and Wages, $48,800 , 40% Payroll Taxes and Benefits, $23,600 , 20% Service and Supplies, $48,500 , 40% Capital, , 0% Description: The Finance Department provides supervision for the information technology of the City including network administration and geographic information systems applications. See the Finance Department section. The priorities of the Information Technology function for the upcoming year are: 1. Create a technology “roadmap” encompassing all key projects to occur over the next several years through collaboration with outside consultants and all departments within the City. 2. Implement the most critical projects with a vision to the overall plan. Voters of Fernley Mayor/City Council City Manager Finance Dir. (City Treas.) Accountant (Dep. Treas.) Admin Specialist IT Specialist Technical Specialist GIS Accounting Tech (2.5 FTE) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 75 Legal Requirements: The job description for the City Treasurer (Finance Director), duly adopted by the City Council, indicates that the City Treasurer oversees payroll and data processing functions of the City. Significant Expenditures and Staffing Changes: A new position of Geographic Information Systems Technician was added in FY09. Staffing Levels and Cost Allocation: The staff levels and cost allocations for the department are shown in Appendix C of this report. A total of 1 FTE is allocated to providing this function. Goals and Objectives: Goal: To effectively manage planning and implementation of appropriate technology. Objective To develop a Business Technology Plan for the City network addressing the following: • Current and future business requirements of the City which can be resolved using technology • A high-level overview of the technologies and projects required to meet those business requirements • A description of how the technology can be applied in the City network • A budget estimate to implement each technology project • A tentative timeline in which these technology projects can be implemented. Objective To develop and implement internal policies and procedures for efficient use of the City’s network and protection of the City’s network. Objective To properly define and program effective and efficient use of GIS technology. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 76 Line Item Budget Information Technology Cost Center: Account # Descripton FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-418-100 Salaries and Wages 40,100 100-418-130 Overtime 500 100-418-140 Annual Leave Pay 3,100 100-418-150 Sick Leave Pay 2,800 100-418-160 Holiday Pay 2,300 Contract Salaries 0 Subtotal Salaries & Wages 0 0 0 48,800 100-418-200 FICA 0 100-418-210 Medicare 700 100-418-220 Unemployment 500 100-418-230 Retirement (PERS) 9,900 100-418-240 Group Insurance 11,000 100-418-250 Workers Compensation Insurance 1,500 100-418-260 Other Benefits 0 Subtotal Employee Benefits 0 0 0 23,600 Total Salaries & Benefits 0 0 0 72,400 100-418-321 Professional Services-GIS 25,000 100-418-342 Tech Services-Other 10,000 100-418-580 Travel & Training 3,000 100-418-600 General Supplies 5,000 100-418-605 Minor Equipment 5,000 100-418-640 Books and Periodicals 500 Total Service & Supplies 0 0 0 48,500 Total Operating Expenses 0 0 0 120,900 Total Capital 0 0 0 0 Total Operating and Capital 0 0 0 120,900 Analysis: ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 77 Office of the City Clerk Organizational Chart: Office of City Clerk FY2008/2009 Expenditures Salaries and Wages, $126,900 , 54% Payroll Taxes and Benefits, $66,700 , 29% Service and Supplies, $39,750 , 17% Capital, , 0% Description: 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 Voters of Fernley Mayor and City Council City Manager City Clerk Deputy City Clerk Court Clerk Court Clerk Office Assistant II Office Assistant II (.75 FTE) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 78 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, develop and maintain a citywide record management program, processing passport applications, distributing mail, preparing the Clerk’s budget, processing the Franchise Business License fees, and administering the Business and Liquor license programs. 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. In FY2007-2008, the administrative operations of the Municipal Court were transferred to the Office of the City Clerk. Because the Office of the City Clerk performs services for enterprise funds and performs the administrative functions of the municipal court, the costs of the department are allocated between cost centers in the General Fund and the enterprise funds. Legal Requirements: The general duties of the Office of the City Clerk are described in NRS 266.480. The requirements related to elections are described in NRS 293C through NRS 306. Significant Expenditures and Staffing Changes: The Office of the City Clerk assumed responsibility for the administrative functions in the Fernley Municipal Court. Two staff members were transferred into the Office of the City Clerk from another department. In addition, one Office Assistant II position was increased from .50 FTE to 1.00 FTE and another Office Assistant II positions was increased from .50 FTE to .75 FTE. Staffing Levels and Cost Allocation: The cost allocations for all the positions are shown in Appendix C of this report. 3.10 FTE are allocated for these functions. Goals and Objectives: 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 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 Post on the City web site, 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 of the meeting is available within 30 days of each meeting. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 79 Task Enter agenda items into database for easy access. File agenda, agenda reports, and audiocassette tapes and electronic media in an easily retrievable fashion. Task Ensure accurate minutes are approved by the City Council as the official record of the meetings. Task Improve productivity through use of technology and training opportunities 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. Task Provide information on businesses as requested by the public and other State and local agencies. Task Maintain database with business information including payment records. Task Provide funds to the Finance 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 City code regarding issuance of business licenses. Task #12: Make recommendations to the City Council regarding modification of fees and/or fee structures Task #13: Improve productivity through use of technology and training opportunities. Goal: To conduct City elections pursuant to NRS 293C, including redistricting when necessary. Objective To proactively train and prepare for future elections, including coordinating with Lyon County Clerk/Treasurer to conduct municipal elections in even number years. Task Improve productivity through use of technology and training opportunities. Task Arrange for adequate funding needed to prepare plan and implement plan. Task Review and modify Ward boundaries, as necessary. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 80 Task Pursuant to an inter-local agreement with Lyon County, 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 Arrange for early voting, including extending the hours the Clerk’s Office is open to the public. Task Obtain the necessary pollbooks and equipment from Lyon County Task Ensure compliance with accessibility to polling place for elderly and disabled voters. Task #10: post copies of voting results in a timely fashion, including submitting information to the Secretary of State’s election web site. Task #11: Ensure canvas and abstract of votes is completed in a timely fashion. Task #12: Ensure proper reports are submitted to the Commission on Ethics and Secretary of State in a timely manner 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. 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. Task Improve productivity through use of technology and training opportunities. 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. Task Improve productivity through use of technology and training opportunities Goal: To countersign contracts, keep the corporate seal and records of the City. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 81 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. Task Establish program enforcement. Task #10: Implement plans. Task #11: To improve productivity through use of technology and training opportunities. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 82 Line Item Budget – Office of the City Clerk: Account # Descripton FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-416-100 Salaries and Wages 98,400 103,600 100-416-130 Overtime 2,500 2,500 100-416-140 Annual Leave Pay 7,400 7,800 100-416-150 Sick Leave Pay 6,900 7,200 100-416-160 Holiday Pay 5,500 5,800 Subtotal Salaries & Wages 0 0 120,700 126,900 100-416-210 Medicare 1,800 1,900 100-416-220 Unemployment 1,200 1,300 100-416-230 Retirement (PERS) 24,200 25,500 100-416-240 Group Insurance 20,000 34,100 100-416-250 Workers Compensation Insurance 3,600 3,900 100-416-260 Other Benefits 1,400 0 Subtotal Employee Benefits 0 0 52,200 66,700 Total Salaries & Benefits 0 0 172,900 193,600 100-416-321 Professional Services-GIS 1,500 1,500 100-416-322 Professional Services-Other 37,000 6,000 100-416-342 Tech Services-Other 1,500 500 100-416-344 Tech Services-Elections 10,000 10,000 100-416-441 Rental 1,000 100-416-530 Communications 1,750 1,750 100-416-540 Advertising 5,000 1,000 100-416-550 Printing and Postage 7,500 7,500 100-416-580 Travel & Training 5,000 500 100-416-581 Dues & Subscriptions 500 0 100-416-585 Educational Assistance Program 500 100-416-600 General Supplies 5,000 5,000 100-416-604 Supplies Passports 4,000 3,000 100-416-605 Minor Equipment 1,000 1,000 100-416-612 Building Maintenance Supplies 300 100-416-640 Books and Periodicals 500 500 Total Service & Supplies 0 0 80,550 39,750 Total Operating Expenses 0 0 253,450 233,350 Total Capital 0 0 0 0 Total Operating and Capital 0 0 253,450 233,350 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 83 Facilities and General Expenditures Organizational Chart: N/A Description: Certain general and administrative costs that are not readily allocable to certain cost centers were previously accounted for in the Administration cost center. In FY2007- 2008, certain cost centers were split out of the Administration cost center. The remaining costs that were not readily allocable were moved to this cost center. Legal Requirements: There is no legal requirement to segregate the general and administrative costs. Significant Expenditures and Staffing Changes: The allocation of personnel to perform the function in City Hall is shown in Appendix C. A Total of 2.15 FTE are allocated to these functions. Staffing Levels and Cost Allocation: The budget includes an allocation of personnel to facilities for cleaning, maintenance, supplies, and utilities for City Hall. The detail for the community support line is: Fernley 4th of July Fireworks 13,500 Lyon Council on Alcohol and Drugs 10,000 Western Nevada Development District 5,000 Northern Nevada Development Authority 7,500 Retired Senior Volunteer Program (RSVP) 4,000 TOTAL 40,000 The money available for community support was cut from $50,000 in FY08 to $40,000 in FY09. In the prior fiscal year, $10,000 was transferred from the grant fund to allow for a larger program for community support. The grant fund does not have available money this year. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 84 Line Item Budget: Account # Descripton FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-417-100 Salaries and Wages 51,456 76,100 100-417-130 Overtime 0 100-417-140 Annual Leave Pay 3,517 5,800 100-417-150 Sick Leave Pay 2,643 5,300 100-417-160 Holiday Pay 2,580 4,300 Contract Salaries 0 Subtotal Salaries & Wages 0 0 60,196 91,500 100-417-200 FICA 0 100-417-210 Medicare 804 1,400 100-417-220 Unemployment 360 1,000 100-417-230 Retirement (PERS) 11,066 18,800 100-417-240 Group Insurance 8,353 23,700 100-417-250 Workers Compensation Insurance 1,272 2,800 100-417-260 Other Benefits 468 0 Subtotal Employee Benefits 0 0 22,323 47,700 Total Salaries & Benefits 0 0 82,519 139,200 100-417-322 Professional Services-Other 6,500 2,000 100-417-342 Tech Services-Other 2,000 2,000 100-417-348 Commission on Ethics Assessment 4,000 4,000 100-417-410 Utility Service-Water and Sewer 6,000 4,000 100-417-412 Utility Service-Refuse 4,500 4,500 100-417-430 Service-Building Maintenance 1,000 0 100-417-520 Insurance 68,000 70,000 100-417-540 Advertising 200 0 100-417-581 Dues & Subscriptions-NLCM 11,000 11,000 100-417-600 General Supplies 20,000 20,000 100-417-605 Minor Equipment 3,000 3,000 100-417-612 Building Maintenance Supplies 300 300 100-417-621 Natural Gas 15,000 15,000 100-417-622 Electricity 48,000 48,000 100-417-640 Books and Periodicals 250 100-417-650 Community Support 51,100 40,000 Total Service & Supplies 0 0 240,850 223,800 Total Operating Expenses 0 0 323,369 363,000 Total Capital 0 0 0 0 Total Operating and Capital 0 0 323,369 363,000 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 85 Municipal Court Organizational Chart: Municipal Court FY2008/2009 Expenditures Salaries and Wages, $143,600 , 57% Payroll Taxes and Benefits, $66,100 , 26% Service and Supplies, $42,500 , 17% 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. The caseload for the court has decreased as shown in the following table and chart. Voters of Fernley Mayor/City Council Muni Court Judge City Manager City Attorney City Clerk Public Defender Contract Court Clerk Office Asst II PT Office Asst II Prosecutor (40%) Deputy City Clerk Legal Secretary (40%) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 86 Following is a summary of the charges filed in Municipal Court for the periods indicated: Drug DUI Domestic Violence Traffic Non- Traffic Other Total FY03 55 82 37 1979 160 5 2318 FY04 33 71 48 2132 309 0 2593 % change (40%) (13.4%) 29.7% 7.7% 93.1% N/M 11.9% FY05 34 75 65 2410 314 1 2899 % change 3.03% 5.6% 35.4% 13.0% 1.6% N/M 11.8% FY06 67 86 44 2474 315 0 2986 % change 48% 15% (32%) 2.6% - NM 3% FY07 35 81 5 1829 319 0 2269 % change (48%) (87%) (26%) 1% (24%) FY08 (est) 22 90 3 1,868 394 2 2,379 % change (37%) (11%) 2% 24% FY09 (est) 22 90 3 1900 360 2375 0 500 1000 1500 2000 2500 3000 3500 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Other Non-Traffic Traffic Domestic DUI Drug ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 87 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 personnel allocated to the operation of the Municipal Court are shown in Appendix C of this report. A total of 3.00 FTE are involved in Municipal Court Operations. Staffing Levels and Cost Allocation: None 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. Goal: To improve productivity through the use of technology and training opportunities Goal: To address issues and implement remedies related to the identified deficiencies in the December 2007 Minimum Accounting Standards Audit. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 88 Line Item Budget – Municipal Court Cost Center: Account # Descripton FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-425-100 Regular Pay 67,527 81,135 123,700 124,600 100-425-130 Overtime Pay 661 2,717 500 1,000 100-425-140 Annual Leave Pay 2,486 3,257 6,600 6,700 100-425-150 Sick Leave Pay 2,321 4,106 6,100 6,300 100-425-160 Holiday Pay 2,057 2,258 4,900 5,000 Subtotal Salaries & Wages 75,052 93,473 141,800 143,600 100-425-200 FICA 1,488 1,954 0 100-425-210 Medicare 1,098 1,331 2,100 2,200 100-425-220 Unemployment 314 614 1,500 1,500 100-425-230 Retirement (PERS) 9,866 11,438 21,600 29,300 100-425-231 Retirement (JRS) 13,500 28,600 100-425-240 Group Insurance 6,811 7,266 30,900 4,500 100-425-250 Workers Comp-Other 2,022 3,213 4,300 0 100-425-260 Other Benefits 1,216 1,326 1,600 Subtotal Employee Benefits 22,815 27,142 75,500 66,100 Total Salaries & Benefits 97,867 120,615 217,300 209,700 100-425-312 Professional Service-Prosecutor 33,000 36,000 3,000 100-425-314 Professional Service-Pub. Def. 21,300 23,169 30,000 30,000 100-425-322 Professional Service-Other 1,546 1,365 2,500 1,500 100-425-342 Tech Services-Other 1,204 2,536 4,000 4,000 100-425-530 Communications 2,087 2,247 2,000 2,000 100-425-540 Advertising 0 500 0 100-425-550 Printing and Postage 1,353 514 1,000 1,000 100-425-580 Travel & Training 588 -218 1,000 0 100-425-581 Dues and Memberships 201 99 600 500 100-425-600 General Supplies 3,805 2,953 4,000 3,000 100-425-605 Minor Equipment 285 2,643 0 100-425-640 Books & Periodicals 395 45 500 500 Total Service & Supplies 65,764 71,853 48,600 42,500 Total Operating Expenses 163,631 192,468 265,900 252,200 Total Capital 0 0 0 0 Total Operating and Capital 163,631 192,468 265,900 252,200 Analysis: The increase in Salaries and Wages for the Municipal Court regular step increases for employees but no change to the salary table. The decrease in service and supplies reflects the change in prosecution services. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 89 Parks Organizational Chart: Parks FY2008/2009 Expenditures Capital, , 0% Service and Supplies, $267,600 , 43% Payroll Taxes and Benefits, $127,100 , 20% Salaries and Wages, $227,300 , 37% Description: Parks Department staff members are responsible for maintenance of the following parks: Facility Name Nearest Cross Streets Area (in acres) Fernley Depot (Assistance) Main Street/Lois Lane 1.00 Eagle’s Nest Park Eaglewood Dr/Wildwood Dr. 0.25 Green Valley Park Green Valley Dr/Ricci Ln. 6.00 In Town Park Hwy 95A/Cedar St. 2.25 Johnson Memorial Park Richards Wy/Smithridge 10.00 Millennium Park/City Hall Silver Lace Blvd/Main St 1.00 Out of Town Park Farm District Rd/Hwy 50A 72.30 Ponderosa Park Farm District Rd/Edgewood Dr 2.00 River Ranch Park River Ranch Rd 2.00 Fernley Pool (Assistance) Cottonwood Ln./Hardie Ln. Voters of Fernley Mayor/City Council City Manager Parks and Recreation Director Animal Control Parks Vector Control Animal Control Officer Animal Control Officer (part time) Vector Control Supervisor Maintenance Supervisor Sr Maintenance Worker Maintenance Worker Maintenance Worker (0.03FTE) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 90 The following parks are scheduled to come into the maintenance system in the near future: Facility Name Nearest Cross Streets Area (in acres) Autumn Winds Park Farm District Rd./Clearwater Pwy. 7.00 Cloverland Park Clover Ln. 2.00 Silverland Park Tamsen Ln. 3.00 Jackson Ranch Friendly Five The Parks Department staff members also maintain the grounds at City Hall and provides maintenance and cleaning services in City Hall (see facilities and general expenses section). Significant Expenditures and Staffing Changes: Seasonal employees were eliminated. Staffing Levels and Cost Allocation: The Parks cost center includes allocated costs for personnel as noted in Appendix C of this report. A total of 6.42 FTE are allocated to provide park maintenance and event functions. Goals and Objectives: Goal: To conduct effectively manage, maintain and improve existing parks and facilities while ensuring proper development of new properties and programs. Objective To repair and renovate inadequate irrigation systems. Task Identify problem areas and systems. Task Establish system mapping with GPS and GIS interface. Task Budget for system improvements annually until improvements are completed for all facilities. Task Create as-builts for all park irrigation systems using GPS and GIS. Objective To establish written fee schedules for appropriate events and activities within the Parks. Task Evaluate events and activities based on impacts to utilities. Task Meet with user groups for their input and recommendations. Task Propose fee schedule based on impacts. Objective To expand available athletic field opportunities, enhance existing athletic facilities and coordinate facility management. Task Program all athletic tournaments and other special events up to one year in advance to avoid conflicts with other athletic leagues, activities and special events. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 91 Task Meet with athletic field users to schedule and coordinate routine and tournament activities. Task Facilitate pursuit of donations, grants and sponsorships to fund facility improvements by user groups. Objective To facilitate creation of new youth activities, programs and facilities. Task Attend and participate in COMPASS and other youth activity groups. Task Coordinate with groups to improve and enhance their efforts to develop and establish activities, programs and facilities. Task Complete update of Parks and Recreation Plan, including inventory of existing facilities, possible properties for and projection of future development priorities. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 92 Line Item Budget – Parks Cost Center: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-575-100 Regular Pay 209,153 251,611 200,000 181,100 100-575-130 Overtime Pay 10,248 17,251 17,500 10,000 100-575-140 Annual Leave Pay 5,634 13,487 5,000 13,600 100-575-150 Sick Leave Pay 6,512 10,967 7,000 12,500 100-575-160 Holiday Pay 6,927 7,733 11,900 10,100 Subtotal Salaries and Wages 238,474 301,049 241,400 227,300 100-575-200 FICA 1,141 3,310 2,800 100 100-575-210 Medicare 3,296 4,200 4,000 3,200 100-575-220 Unemployment 1,483 1,802 2,600 2,200 100-575-230 Retirement (PERS) 27,901 33,103 32,700 44,400 100-575-240 Group Insurance 32,049 44,350 30,600 69,100 100-575-250 Workers Compensation Insurance 5,982 9,669 9,100 6,900 100-575-260 Other Beneifts 1,430 1,410 1,200 1,200 Subtotal Employee Benefits 73,282 97,844 83,000 127,100 Total Salaries & Benefits 311,756 398,893 324,400 354,400 100-575-322 Professional Services-Other 51,795 52,915 48,700 30,000 100-575-342 Tech Services-Other 4,048 21,924 5,000 1,000 100-575-410 Utility Service-Water and Sewer 32,287 47,268 80,000 70,000 100-575-412 Utility Service-Refuse 6,883 8,451 11,000 12,000 100-575-430 Service-Repair and Maintenance 8,495 9,292 8,000 6,000 100-575-441 Rental 2,802 100-575-520 Insurance 500 100-575-530 Communications 7,294 6,176 7,500 5,500 100-575-540 Advertising 42 1,298 1,500 500 100-575-550 Printing and Postage 0 23 500 500 100-575-580 Travel and Training 403 2,120 2,000 2,300 100-575-581 Dues and Memberships 110 240 500 500 100-575-585 Educational Assistance Program 0 0 500 100-575-600 General Supplies 43,382 53,824 75,000 93,000 100-575-605 Minor Equipment 5,511 5,476 9,000 4,000 100-575-610 Automotive Supplies 2,832 1,830 3,000 3,000 100-575-612 Building Maintenance Supplies 1,053 436 500 1,000 100-575-616 Safety Supplies 3,527 2,754 3,500 3,000 100-575-621 Natural Gas 559 1,000 1,000 100-575-622 Electricity 17,924 15,887 17,600 17,600 100-575-623 Propane 487 682 600 300 100-575-626 Gasoline 10,468 13,533 12,000 16,000 100-575-642 Licenses and Permits 0 0 400 Total Service & Supplies 197,041 247,490 287,400 267,600 Total Operating Expenditures 508,797 646,383 611,800 622,000 100-575-730 Improvements Other Than 0 0 63,853 0 100-575-741 Machinery 28,710 6,700 Total Capital 28,710 6,700 63,853 0 Total Operating and Capital 537,507 653,083 675,653 622,000 Analysis: Salaries and wages decreased in FY09 due to the elimination of 2.94 FTE of seasonal laborers. If seasonal labor is needed, an employment agency will be used. The budget assumes normal step increases but does not provide for an increase in the salary table. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 93 Community Development Description: The Community Development Department previously existed to perform four primary functions: building inspections and permits, planning and zoning, geographic information systems and mapping, and code enforcement. The department was split in to two new departments. See Building Department and Planning Department below. Line Item Budget – Community Development: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-600-100 Regular Pay 435,469 398,085 482,300 100-600-130 Overtime Pay 7,498 3,562 3,000 100-600-140 Annual Leave Pay 18,939 14,952 33,100 100-600-150 Sick Leave Pay 13,098 12,544 34,200 100-600-160 Holiday Pay 11,068 10,086 24,200 Subtotal Salaries and Wages 486,072 439,229 576,800 100-600-210 Medicare 6,660 6,236 8,900 100-600-220 Unemployment 3,518 4,253 4,900 100-600-230 Retirement (PERS) 64,969 62,607 104,800 100-600-240 Group Insurance 70,131 62,829 73,000 100-600-250 Workers Compensation Insurance 8,016 16,487 15,400 100-600-260 Other Benefits 0 5,000 2,000 Subtotal Employee Benefits 153,294 157,412 209,000 0 Total Salaries & Benefits 639,366 596,641 785,800 0 100-600-320 Professional Services-Engineering 120 429 3,000 100-600-321 Professional Services-GIS 74,230 62,000 100-600-322 Professional Services-Other 105,686 53,490 5,000 100-600-342 Tech Services-Other 1,639 3,071 2,000 100-600-430 Service-Repair and Maintenance 930 1,175 1,780 100-600-441 Rental 4,852 4,977 3,000 100-600-530 Communications 9,971 9,577 10,000 100-600-540 Advertising 840 3,663 3,000 100-600-550 Printing and Postage 8,042 4,083 5,000 100-600-580 Travel & Training 10,182 6,925 10,000 100-600-581 Dues and Memberships 838 1,874 1,000 100-600-585 Educational Assistance Program 49 425 100 100-600-600 General Supplies 9,738 24,452 20,000 100-600-605 Minor Equipment 11,804 9,818 7,900 100-600-610 Automotive Supplies 381 54 0 100-600-616 Safety Supplies 145 0 500 100-600-626 Gasoline 5,686 4,372 6,000 100-600-640 Books and Periodicals 696 1,444 3,000 Total Service & Supplies 171,599 204,059 143,280 0 Total Operating Expenditures 810,965 800,700 929,080 0 100-600-741 Machinery 26,342 100-600-742 Vehicles 0 16,741 Total Capital 26,342 16,741 0 0 Total Operating and Capital 837,307 817,441 929,080 0 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 94 Building Department Organizational Chart: Building Department FY2008/2009 Expenditures Capital, , 0% Service and Supplies, $47,500 , 10% Payroll Taxes and Benefits, $152,200 , 31% Salaries and Wages, $290,200 , 59% Description: The Building Department exists to perform three primary functions: building inspections and permits, plan review, and code enforcement. Voters of Fernley Mayor City Council City Manager Building Offical Plans Examimer Permit Techs Building Inspectors Senior Plans Examiner ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 95 Growth Building Permits and Inspections 0 200 400 [PHONE REDACTED] 1200 1400 1600 # of Permits 0 5000 10000 15000 20000 25000 # of Inspections Permits Inspections Permits 783 1343 1445 897 498 352 320 Inspections 7042 1592 1910 1414 5506 3107 2800 FY03 FY04 FY05 FY06 FY07 FY09 (est) FY09 (est) Legal Requirements: 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: The Community Development Department was split into two separate departments: A Building Department and a Planning/Community Development Department. Two unfilled positions were eliminated. Staffing Levels and Cost Allocation: The Building Department cost center includes 7 positions as listed in Appendix C of this report. . Goals and Objectives: Goal: To continue to improve the building permit process. Task Continue to implement policies and procedures to improve the plan review and building permit process. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 96 Task Improve the civil improvement plan process. 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 coverage during business hours. Task Reply to phone calls within 24 hours. Task Improve over the counter plan check procedures for minor residential projects. Goal: To establish greater communication between the City, the development community, and the citizens of Fernley. Task Continue quarterly meetings with the development community. Task Establish neighborhood meetings Task Continue to improve customer service training for staff. Goal: To provide code enforcement services. Task Respond and investigate complaints within one week. Task Re-inspect violations within one week after deadlines. Task Utilize non-judicial means to correct the issue. Task Coordinate failures to comply cases with the City Attorney’s office. Task Maintain statistical information. Goal: To reduce and maintain residential building permit review/process to two weeks. Task Continue to streamline building permit processing procedures. Goal: To maintain statistical pubic information pamphlets. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 97 Line Item Budget –Building Department: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-605-100 Regular Pay 241,400 100-605-130 Overtime Pay 500 100-605-140 Annual Leave Pay 18,100 100-605-150 Sick Leave Pay 16,800 100-605-160 Holiday Pay 13,400 Subtotal Salaries and Wages 0 0 0 290,200 100-605-210 Medicare 4,200 100-605-220 Unemployment 2,900 100-605-230 Retirement (PERS) 59,400 100-605-240 Group Insurance 77,000 100-605-250 Workers Compensation Insurance 8,700 Subtotal Employee Benefits 0 0 0 152,200 Total Salaries & Benefits 0 0 0 442,400 100-605-322 Professional Services-Other 4,000 100-605-342 Tech Services-Other 1,000 100-605-430 Service-Repair and Maintenance 5,000 100-605-530 Communications 5,000 100-605-550 Printing and Postage 2,500 100-605-580 Travel & Training 5,000 100-605-581 Dues and Memberships 1,000 100-605-605 General Supplies 5,000 100-605-605 Minor Equipment 5,000 100-605-610 Automotive Supplies 500 100-605-616 Safety Supplies 500 100-605-626 Gasoline 8,000 100-605-640 Books and Periodicals 5,000 Total Service & Supplies 0 0 0 47,500 Total Operating Expenditures 0 0 0 489,900 Total Capital 0 0 0 0 Total Operating and Capital 0 0 0 489,900 Analysis: This is a new cost center for FY09. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 98 Planning Department Organizational Chart: Planning FY2008/2009 Expenditures Capital, , 0% Service and Supplies, $34,000 , 8% Salaries and Wages, $265,200 , 63% Payroll Taxes and Benefits, $123,900 , 29% Description: The Community Development Department exists to perform two primary functions: planning and zoning and community development. The Community Development Department provides support to the Planning Commission, including research and recommendations. Voters of Fernley Mayor City Council City Manager Community Dev Director Senior Planner Associate Planner Permit Technician ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 99 Growth Planning Applications 0 50 100 150 200 250 # of Permits Planning Applications Planning Applications 144 195 211 238 107 150 150 FY03 FY04 FY05 FY06 FY07 FY08 (est) FY09 (est) 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: No positions were added or removed. The Geographic Information Systems function was moved into the Finance Department as part of the Information Technology function.. Staffing Levels and Cost Allocation: The Planning and Community Development cost center includes 5 positions as listed in Appendix C of this report. Goals and Objectives: Goal: To meet all statutory requirements for review of planning applications. Goal: To continue high level of customer service and professional review of projects. Task Provide public counter coverage during business hours. Task Reply to phone calls within 24 hours. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 100 Task Continue to complete all staff reports by Planning Commission and City Council packet deadlines. Goal: To update the development code. Task Include changes identified in the Comprehensive Plan. Task Include changes desired by the Planning Commission and City Council. Task Include changes identified by staff and public input. Goal: To establish greater communication between the City, the development community, and the citizens of Fernley. Task Continue quarterly meetings with the development community. Task Establish neighborhood meetings Task Continue to improve customer service training for staff. Goal: To continue the development process of the Downtown. Task Hold neighborhood meetings with the citizens. Task Hold meetings with downtown business/land owners. Task Meet with all stakeholders to develop a plan and to determine needs. Task Present plan options to all stakeholders Task Prioritize planning options for presentation to the Planning Commission and the City Council. Goal: To maintain statistical pubic information pamphlets. 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 new review process public information pamphlets. Planning Projects for FY09 Downtown Development Plan: Both the citizens and the City are interested in revitalizing the downtown area and getting much needed business services brought into the City of Fernley. To determine the needs of the citizens and the current business/land owners, neighborhood meetings were held throughout the City during FY08. As a result of the meetings, a list of needs was established to assist in bringing new businesses to the City. The list may help existing businesses modify their existing businesses to better serve their customers. The City staff worked closely with the Chamber of Commerce, business community, citizens, builders, and developers to begin the transition of the downtown. Involved in this process will be changes to the City’s codes, research for grants, and community involvement. Once all data is collected, development options are established and Code changes are identified, additional neighborhood meetings will be held to get a consensus from the citizen and downtown business/land owners. The plan ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 101 options will be presented to the Planning Commission and the City Council for review, approval and possible implementation of projects. Development Code and Comprehensive Plan: During FY08, significant changes to the layout and content of the Development Code were presented to the Planning Commission and City Council. These changes provide more options to the citizens and the development community as well as clarifying the content of the Code. During FY09, additional changes will be proposed to the Development Code and the Comprehensive Plan. A major work load for the Department will be the zoning and conformance process, which will run throughout FY09 and FY10. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 102 Line Item Budget –Planning Department: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-610-100 Regular Pay 220,500 100-610-130 Overtime Pay 500 100-610-140 Annual Leave Pay 16,600 100-610-150 Sick Leave Pay 15,300 100-610-160 Holiday Pay 12,300 Subtotal Salaries and Wages 0 0 0 265,200 100-610-200 FICA 100-610-210 Medicare 3,900 100-610-220 Unemployment 2,700 100-610-230 Retirement (PERS) 54,300 100-610-240 Group Insurance 55,000 100-610-250 Workers Compensation Insurance 8,000 Subtotal Employee Benefits 0 0 0 123,900 Total Salaries & Benefits 0 0 0 389,100 100-610-322 Professional Services-Other 4,000 100-610-342 Tech Services-Other 1,000 100-610-430 Service-Repair and Maintenance 1,000 100-610-530 Communications 5,000 100-610-540 Advertising 3,000 100-610-550 Printing and Postage 5,000 100-610-580 Travel & Training 5,000 100-610-581 Dues and Memberships 1,000 100-610-610 General Supplies 5,000 100-610-605 Minor Equipment 2,000 100-610-640 Books and Periodicals 2,000 Total Service & Supplies 0 0 0 34,000 Total Operating Expenditures 0 0 0 423,100 Total Capital 0 0 0 0 Total Operating and Capital 0 0 0 423,100 Analysis: In FY09, the Community Development Department was split into two new departments, the Building Department and the Planning/Community Development Department. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 103 Animal Control Organizational Chart: Animal Control FY2008/2009 Expenditures Capital, , 0% Salaries and Wages, $70,500 , 59% Payroll Taxes and Benefits, $28,900 , 24% Service and Supplies, $21,000 , 17% 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, and an additional part-time Animal Control Officer position was added. In FY06-07, the function was transferred to the Parks and Recreation Department. Voters of Fernley Mayor/City Council City Manager Parks and Recreation Director Animal Control Parks Vector Control Animal Control Officer Animal Control Officer (part time) Vector Control Supervisor Maintenance Supervisor Sr Maintenance Worker Maintenance Worker Maintenance Worker (0.03FTE) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 104 Significant Expenditures and Staffing Changes: The hours for an existing Animal Control Officer were increased from 0.50 FTE to 0.75 FTE. The Parks and Recreation Director is responsible for implementing programs, through use of staff in the department. The allocation of time spent by the director in this function was reduced. A small percentage of the costs in the Finance Department are allocated to animal control since the Finance Department is responsible for selling dog licenses. Staffing Levels and Cost Allocation: The Animal Control cost center includes personnel allocated as listed in Appendix C of this report. A total of 2.025 FTE is used in providing this function. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 105 Line Item Budget – Animal Control: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-525-100 Regular Pay 48,801 41,968 68,800 57,000 100-525-130 Overtime Pay 1,223 1,498 5,000 2,000 100-525-140 Annual Leave Pay 3,371 1,908 4,300 4,300 100-525-150 Sick Leave Pay 1,751 1,200 3,900 4,000 100-525-160 Holiday Pay 2,419 2,069 3,000 3,200 Subtotal Salaries and Wages 57,565 48,643 85,000 70,500 100-525-200 FICA 0 0 0 100-525-210 Medicare 820 696 1,300 1,000 100-525-220 Unemployment 417 1,520 900 700 100-525-230 Retirement (PERS) 9,512 8,698 17,400 14,000 100-525-240 Group Insurance 4,618 3,963 2,000 11,000 100-525-250 Workers Compensation Insurance 1,520 1,947 2,700 2,200 100-525-260 Other Benefits 260 2,000 Subtotal Employee Benefits 16,887 17,084 26,300 28,900 Total Salaries and Benefits 74,452 65,727 111,300 99,400 100-525-322 Professional Services-Other 3,712 1,994 1,900 1,900 100-525-342 Tech Services-Other 2,191 543 2,000 500 100-525-346 Co. Shelter Agreement 3,000 3,000 3,500 4,500 100-525-430 Service-Repair & Maintenance 1,419 343 1,000 1,000 100-525-530 Communications 4,563 4,386 3,000 3,000 100-525-540 Advertising 29 502 1,500 1,000 100-525-550 Printing and Postage 39 114 500 500 100-525-580 Travel & Training 44 1,540 2,000 1,600 100-525-581 Dues and Memberships 0 0 500 0 100-525-585 Educational Assistance Program 3,262 0 0 100-525-600 General Supplies 1,443 3,075 2,500 2,500 100-525-605 Minor Equipment 0 1,197 2,500 0 100-525-610 Automotive Supplies 0 500 500 100-525-616 Safety Supplies 800 500 100-525-626 Gasoline 1,434 2,856 3,500 3,500 100-525-640 Books and Periodicals 0 0 250 0 100-525-642 Licenses and Permits 35 100-252-650 Legal Settlement 20,000 Total Service and Supplies 21,136 39,585 25,950 21,000 Total Operating Expenses 95,588 105,312 137,250 120,400 100-525-742 Vehicles 0 25,044 Total Capital 0 25,044 0 0 Total Operating and Capital 95,588 130,356 137,250 120,400 Analysis: In FY09, additional hours were added for an existing part-time Animal Control Officer. The amount of time allocated for the Parks and Recreation Director was reduced. The Budget assumes regular step increases but does not include any increase to the salary table. The Service and Supply section of the budget for FY06/07 contains $20,000 for a legal settlement that is non-recurring. With the exception of the legal settlement, Service and Supply line items decreased primarily due to lower expenditures for small equipment items that were purchased in previous years. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 106 Vector Control Organizational Chart: Vector Control FY2008/2009 Expenditures Capital, , 0% Salaries and Wages, $58,900 , 29% Payroll Taxes and Benefits, $24,800 , 12% Service and Supplies, $119,010 , 59% 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: No changes in staffing occurred. Voters of Fernley Mayor/City Council City Manager Parks and Recreation Director Animal Control Parks Vector Control Animal Control Officer Animal Control Officer (part time) Vector Control Supervisor Maintenance Supervisor Sr Maintenance Worker Maintenance Worker Maintenance Worker (0.03FTE) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 107 Staffing Levels and Cost Allocation: The Vector Control cost center includes the personnel allocated as listed in Appendix C of this report. A total of 1.05 FTE are allocated to this function. Goals and Objectives: Goal: To minimize public health impacts due to vector borne diseases. Objective: To further develop a baseline program to include more comprehensive surveillance and testing of mosquitoes to identify public health concerns. Task#1: Budget for additional light traps to increase sampling of mosquito species. Task#2: Survey known breeding sites for appropriate sampling locations and install additional light traps at those sites. Task Budget for college intern to provide a seasonal scientific resource employee to facilitate species specific identification, surveillance and testing. Task Continue development of GIS mapping program from breeding sites and chemical application records. Goal: To integrate Vector Control and Parks staffing and equipment for maximum efficiency. Objective To facilitate work assignment flexibility and resource integration. Task#1: Cross train Parks staff in use of abatement equipment and chemicals. Task#2: Utilize college intern position for chemical application and scientific analysis. Task Utilize Vector Control equipment for appropriate Park applications such as broadcasting fertilizer pellets using larvacide cannons. Objective To increase public education and expand the use of low impact methods of larvaciding to reduce the need for adulticiding with aerial and/or fogging applications. Task#1: Utilize seasonal employee and college intern for non-complex larvacide applications to drain intersects and retention basins via all terrain vehicle operations. Task#2: Increase available mosquito fish population by working with the Desert Lakes Golf Course management team to breed fish in existing course water harzards. Task Increase stocking of mosquito fish in appropriate breeding sites. Task Develop effective public information program to mitigate cultural practices that create mosquito breeding habitat. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 108 Line Item Budget – Vector Control: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-528-100 Regular Pay 40,210 29,185 53,000 48,400 100-528-130 Overtime Pay 7,800 2,566 10,000 3,000 100-528-140 Annual Leave Pay 287 3,292 2,000 2,800 100-528-150 Sick Leave Pay 1,459 1,652 1,700 2,600 100-528-160 Holiday Pay 1,708 1,685 3,000 2,100 Subtotal Salaries and Wages 51,464 38,380 69,700 58,900 100-528-200 FICA 709 0 700 100-528-210 Medicare 761 535 1,000 900 100-528-220 Unemployment 431 359 700 600 100-528-230 Retirement (PERS) 7,652 6,599 11,100 9,200 100-528-240 Group Insurance 6,721 6,826 13,700 11,600 100-528-250 Workers Compensation Insurance 1,509 1,784 2,000 1,800 Subtotal Employee Benefits 17,783 16,103 28,500 24,800 Total Salaries & Benefits 69,247 54,483 98,200 83,700 100-528-322 Professional Services-Other 4,796 16,194 16,810 16,810 100-528-342 Tech Services-Other 632 414 2,000 0 100-528-430 Service-Repair and Maintenance 50 1,149 2,000 2,000 100-528-530 Communications 2,061 3,131 1,250 1,250 100-528-540 Advertising 0 500 100-528-580 Travel and Training 0 452 1,000 1,000 100-528-600 General Supplies 64,694 87,211 60,000 84,250 100-528-605 Minor Equipment 7,072 1,983 2,000 5,000 100-528-610 Automotive Supplies 7,583 -202 1,000 2,000 100-528-612 Building Maintenance Supplies 65 14 100 100-528-616 Safety Supplies 1,029 910 1,000 1,000 100-528-626 Gasoline 3,921 4,854 6,000 5,700 Total Service & Supplies 91,903 116,110 93,660 119,010 Total Operating Expenditures 161,150 170,593 191,860 202,710 100-528-730 Improvements Other Than 10,698 0 0 100-528-741 Machinery 8,549 17,537 100-528-742 Vehicles 18,565 Total Capital 19,247 36,102 0 0 Total Operating and Capital 180,397 206,695 191,860 202,710 Analysis: Salaries and wages decreased due to the elimination of the Vector Control Assistant part time position. The budget includes normal step increases for employees but does not include an adjustment to the salary table. Service and supplies increased due primarily to the cost of chemicals used in the vector control program. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 109 Debt Service This cost center is used to account for the payment of debt incurred for construction of the expansion of the City Hall building. The debt was originally issued in December 2005 in the amount of $5 million and bears interest at 4.49% payable over 20 years. The FY2008/2009 budget for the debt service function follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget 100-625-861 Principal 158,000 165,000 173,000 100-625-860 Interest 94,789 221,032 213,702 206,113 100-625-331 Service & Supplies (Bank Fee) Total 94,789 379,032 378,702 379,113 Total Operating Expenses 94,789 379,032 378,702 379,113 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 110 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 FY2008/2009 are approximately $4 million. Therefore, the contingency could be established at up to $120,000. 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 FY2008/2009 budget for the contingency function follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Budget FY08-09 Budget 100-900-900 Contingency 0 120,000 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 111   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. Graffiti Reward and Abatement Fund: To account for fees collected in the Fernley Municipal Court as required by NRS 268.4085. These monies are used to pay a reward to a person who, in response to the offer of a reward, provides information which results in the identification, apprehension, and conviction of a person who violated a city ordinance that prohibits graffiti or other defacement of property. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 112 Private Sector Community Support: To account for private sector donations that are restricted for specific programs or facilities. Green Valley Landscape Maintenance District: To account for fees charged to property owners within the Green Valley subdivision used for maintenance of a park located within the subdivision Autumn Winds Landscape Maintenance District: To account for fees charged to property owners within the Autumn Winds Subdivision used for maintenance of a park located within the subdivision. Silverland Landscape Maintenance District: To account for fees charged to property owners within the Silverland Subdivision used for maintenance of a park located within the subdivision. Friendly Five Landscape Maintenance District: To account for fees charged to property owners within the Friendly Five Subdivision used for maintenance of a park located within the subdivision. B C Ranch Landscape Maintenance District: To account for fees charged to property owners within the B C Ranch Subdivision used for maintenance of a park located within the subdivision. Sario Ranch Landscape Maintenance District: To account for fees charged to property owners within the Sario Ranch Subdivision used for maintenance of a park located within the subdivision. Jackson Ranch Landscape Maintenance District: To account for fees charged to property owners within the Jackson Ranch Subdivision used for maintenance of a park located within the subdivision. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 113 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 FY2008/2009 budget for this fund follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: Fines & Forfeitures 200-350-100 Admin Assess Fee Revenue 15,113 13,810 7,500 7,500 200-360-100 Interest Earnings 1,148 1,943 600 600 Miscellaneous Revenues Total Revenues 16,261 15,753 8,100 8,100 Operating Expenditures: 200-425-322 Professional Services-Other 200 5,000 200-425-580 Travel & Training 3,427 773 5,000 200-425-581 Dues and Memberships 525 200-425-600 General Supplies 293 0 5,000 200-425-605 Minor Equipment 1,613 752 2,000 5,000 Total Operating Expenditures 5,533 2,050 7,000 15,000 Net from Operations 10,728 13,703 1,100 -6,900 Capital Expenditures: 200-425-741 Machinery Furniture and Fixtures Total Capital 0 0 0 0 Revenues less Expenditures 10,728 13,703 1,100 -6,900 Transfers in & Out -45,000 Fund Balance July 1 26,897 37,625 6,328 7,428 Fund Balance June 30 37,625 6,328 7,428 528 The transfer in FY06-07 was to supplement appropriations for the City Hall Expansion Project, which includes the Court room, Chambers, and administrative offices for the Fernley Municipal Court. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 114 Graffiti Reward and Abatement Fund Description: This fund was established to account for a portion of the fees collected in the Fernley Municipal Court as required by NRS 268.4085. The monies in this special revenue fund are used to pay a reward to a person who, in response to the offer of a reward, provides information which results in the identification, apprehension and conviction of a person who violated a city ordinance that prohibits graffiti or other defacement of property. If sufficient money is available in the Graffiti Award and Abatement Fund, a law enforcement agency for the city may offer a reward, not to exceed $1,000. The FY2008/2009 budget for this fund follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 205-350-100 Fine Revenue 1,000 1,000 205-360-100 Interest Earnings 0 Total Revenues 0 0 1,000 1,000 205-425-322 Professional Service-Other 1,000 1,000 205-425-741 Machinery 0 Total Expenditures 0 0 1,000 1,000 Revenues less Expenditures 0 0 0 0 Transfers In & Out Fund Balance July 1 0 0 0 0 Fund Balance June 30 0 0 0 0 . ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 115 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 FY2008/2009 budget for this fund follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 210-350-100 Court Facility Fee Revenue 20,665 20,820 16,000 16,000 210-360-100 Interest Earnings 2,095 3,345 500 500 Total Revenues 22,760 24,165 16,500 16,500 210-425-322 Professional Service-Other 210-425-741 Machinery 0 0 Total Expenditures 0 0 0 0 Revenues less Expenditures 22,760 24,165 16,500 16,500 Transfers In & Out -89,766 Fund Balance July 1 47,258 70,018 4,417 20,917 Fund Balance June 30 70,018 4,417 20,917 37,417 The transfer in FY06-07 was to supplement appropriations for the City Hall Expansion Project, which included the Court room, chambers, and administrative offices for the Fernley Municipal Court. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 116 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 FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 220-330-100 CDBG Grant Revenue 220-330-105 FEMA Public Assistance Revenue 715,793 220-330-300 PUC Grant Revenue 220-360-100 Interest Earnings 17,062 25,939 15,000 1,000 Other Grant Revenue Total Revenues 17,062 25,939 730,793 1,000 Expenditures: 220-480-322 Prof Serv- 70,000 95,000 Total Operating Expenditures 0 0 70,000 95,000 220-480-645 CDBG Grant Expenditures 220-480-646 FEMA Match Individual Assistance 31,000 220-480-647 FEMA Public Assistance Expenses 954,390 220-480-648 Flood Ineligible Expenses 200,000 Tourism Grant Expenditures 220-480-650 TEA-21 Match 1,652 1,141 63,099 220-480-655 PUC Grant Expenditures 220-480-730 Other Grant Expenditures 0 Total Capital Expenditures 1,652 1,141 1,185,390 63,099 Total Expenditures 1,652 1,141 1,255,390 158,099 Revenues less Expenditures 15,410 24,798 -524,597 -157,099 220-390-500 Transfer from General Fund 0 0 0 Transfer in From Capital Fund 145,000 Transfer to General Fund -10,000 220-390-505 Transfer from RCT #1 Fund Fund Balance July 1 507,352 522,762 547,560 12,963 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 117 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 FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 230-310-300 RCT Tax 440,536 6,000 10,000 10,000 230-330-100 CDBG Grant Revenue 230-330-110 Land & Water Conservation Grant 230-360-100 Interest Earnings 5,032 4,641 250 250 Other Revenue 0 Total Revenues 445,568 10,641 10,250 10,250 Expenditures: 230-575-322 Professional Services Total Operating Expenditures 0 0 0 0 230-575-710 Land 240,000 230-575-720 Buildings 0 230-575-730 Improvements 51,710 230-575-741 Machinery 7,525 Total Capital 299,235 0 0 0 Revenues less Expenditures 146,333 10,641 10,250 10,250 Transfers From General Fund Transfers To Other Fund -200,000 -144,395 -10,000 Fund Balance July 1 178,421 124,754 -9,000 1,250 Fund Balance June 30 124,754 -9,000 1,250 1,500 The amounts previously collected in District #1 have been expended on projects. In addition, District #1 borrowed funds from District #2 to complete projects. No projects are slated for construction from District #1 until amounts are fully repaid to District #2 and sufficient money is accumulated to pay for a future project. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 118 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 FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 231-310-300 RCT Tax 757,286 52,780 20,000 20,000 231-330-100 Grants 0 60,000 3,800 231-360-100 Interest Earnings 17,891 24,846 24,000 20,000 Other Revenue 25,000 38,600 Total Revenues 800,177 137,626 86,400 40,000 Expenditures: 231-575-322 Professional Services 1,159 Other Grant Expenditures Total Expenditures 0 1,159 0 0 231-575-731 Land 398,020 120,350 231-575-720 Buildings 60,875 4,800 231-575-730 Improvements Other Than Buildings 314,477 36,919 135,000 500,000 231-575-741 Machinery 92,800 38,600 Total Capital 866,172 157,269 178,400 500,000 Revenues less Expenditures -65,995 -20,802 -92,000 -460,000 Transfers to RCT Dist #1 200,000 144,395 10,000 Fund Balance July 1 318,203 452,208 575,801 483,801 Fund Balance June 30 452,208 575,801 483,801 33,801 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 119 Streets and Storm Drains Organizational Chart: Voters of Fernley Mayor/City Council City Manager Public Works Director O & M Division Assistant Public Works Administrative Support Technical Specialist Office Assistant II Construction Services Public Works Superintendent Plan Review (contract) Public Works Supervisor Water/Alt Water Streets and Storm Drains Capital Projects (contract) Quality Assurance Water Treatment Wastewater Treatment/Coll Meter Reading Mechanical Sr. PW Worker Sr. PW Worker Treatment Plant Operator Sr Treatment Plant Operator Meter Reader Mechanic PW Worker PW Worker PW Worker PW Worker PW Worker Treatment Plant Operator PW Worker PW Worker Meter Reader ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 120 Streets and Storm Drains FY2007/2008 Expenditures Capital, $667,213 , 58% Service and Supplies, $266,400 , 23% Payroll Taxes and Benefits, $74,950 , 7% Salaries and Wages, $131,200 , 12% 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 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 FY2008/2009. The major programs for the department during FY2008/2009 will be: 1. sign replacement and repair 2. pothole patching 3. weed mitigation 4. street sweeping (contracts) 5. crack sealing (contracts using RTC and RCT funds) 6. street striping (contracts using RTC and RCT funds) 7. Reconstruction Projects 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 FY04 FY05 FY06 FY07 FY08 FY09 1¢ $44,232 $45,380 $49,550 $58,805 $63,177 $62,895 $70,508 Inc(Dec) 2.6% 9.2% 18.7% 7.4% 12.1% 1.75¢ $96,199 $100,273 $101,396 $117,818 $121,864 $126,933 $141,186 Inc(Dec) 4.2% 1.1% 16.2% 3.4% 4.16% 11.2% 2.35¢ 53,790 57,023 68,574 $76,985 $88,307 $97,105 $100,137 Inc(Dec) 6.0% 20.3% 12.3% 14.71% 10.0% 3.1% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 121 $20,000.00 $40,000.00 $60,000.00 $80,000.00 $100,000.00 $120,000.00 $140,000.00 $160,000.00 1¢ 1.75¢ 2.35¢ FY03 FY04 FY05 FY06 FY07 FY09 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. The total amounts received for these three types of fuel tax over the past fiscal years are shown in the following chart: $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00 $350,000.00 FY03 FY04 FY05 FY06 FY07 FY08 FY09 2.35¢ 1.75¢ 1¢ The City also previously received 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 FY07, Lyon County decided to cease this shared revenue. The City is analyzing its options to restore fiscal equity. 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%) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 122 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: City RTC portion Draw Balance FY02 $521,877 $0 $521,877 FY03 $501,811 $152,633 $871,055 FY04 $520,230 $711,214 $680,071 FY05 $527,439 $650,000 $557,510 FY06 $612,740 $1,050,000 $120,250 FY07 $632,945 $630,295 $122,900 FY08 $658,883 $781,783 0 FY09 (Estimated) $733,158 $733,158 0 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. The County implemented a residential construction tax on each building permit issued in the City. These funds are collected by the City of Fernley with each building permit and remitted to Lyon County. The funds collected in Fernley can be drawn against projects. Revenue is recognized when the funds are drawn for a project. The history of this revenue source is as follows: Collections Draw Balance FY05 $ 44,850 0 $ 44,850 FY06 $414,280 0 $459,130 FY07 $240,785 $699,915 0 FY08 (Estimated) $300,000 $300,000 0 FY09 (Estimated) $ 75,000 $ 75,000 0 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 position were added in the Public Works Department specifically for this function. Staffing Levels and Cost Allocation: The Streets and Storm Drains fund includes allocation of personnel in the Public Works Department as indicated in Appendix C. A total of 2.90 FTE are allocated to this cost center ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 123 Capital Improvement Projects: The Capital Improvement Plan, Appendix D, lists the streets projects approved for FY09 as well as projections for the following four years. Projects for FY09 are listed below: Streets Fund Crack Seal Program 100,000 $ Slurry, Seal Coat and Patch Program 200,000 $ Comstock Drainage Improvements 10,000 $ Rancho Sierra (Lily Lane, Ambee Way, Raven Way) 357,231 $ Goals and Objectives: Goal To provide adequate access to all areas of Fernley via City-maintained right of way whenever fiscally practical. Objective Maintain, update, and use 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, naming of new streets and identification of right-of-way ownership via research of historical documents. Task Use data from the Paver Program to determine streets in need of maintenance repair. Task Determine the best maintenance and repair alternative for the project with the objective of optimizing spending. Task Prepare construction drawings, bid documents, advertise for bidding, and award projects. Objective 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 authorized by the City contracts. Task Manage and inspect the maintenance repair crack sealing and slurry seal projects awarded by the City to ensure that construction is meeting the required contractual specifications. Task Manage and inspect the reconstruction projects awarded by the City to ensure that construction is meeting the required contractual specifications. Objective Maintain, repair, and install traffic control devices within the City of Fernley. Task Perform maintenance repairs on the City traffic lights and signs. Task Replace street signs that are damaged, missing, or required to be changed by Manual of Uniform Traffic Control Devices (MUTCD) standards. Task Re-stripe existing or install new striping to meet MUTCD requirements thereby enhancing public safety. Goal Manage programs and provide operation and maintenance repairs on all City streets based on the funds available. Collect GIS data and train personnel to prepare the ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 124 existing storm drain model, collect and review previous Hydrology Studies, and prepare EA to utilize TCID ditches. Objective 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 aide in the development of the 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 Prepare 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 or 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. The revenues for the Streets and Storm Drains fund are listed in the following table: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 240-320-220 Public Works Fees 6,491 8,488 6,000 6,000 240-320-221 Inspsection Fees 33,580 21,251 20,000 5,000 240-320-300 Other Fees (Copies, etc.) 19 240-330-300 County Road Fund Property Tax 293,745 0 0 240-330-320 Motor Vehicle Fuel Tax (Gas Tax) 227,691 259,603 287,381 311,831 240-330-325 Regional Transportation (RTC) 467,542 1,765,602 658,883 733,158 240-330-326 Road Tax 0 0 300,000 75,000 Donations (Cash & Mat/Labor) 190,000 240-360-100 Interest Earnings 29,665 2,235 10,000 10,000 Total Revenues 1,248,714 2,057,198 1,282,264 1,140,989 The revenue from the County Road Fund Property Tax cannot be replaced by increases in the City’s tax rate due to property tax limitation legislation. Additional sources of revenue for this fund will be required to keep up on the services provided. The City is researching impact fees and other possible charges, the possible formation of additional taxing districts, and other methods of providing a steady source of revenue for this core City function. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 125 Streets and Storm Drains Fund Expenditures and Fund Balance: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Expenditures: 240-475-100 Regular Pay 73,403 113,333 87,300 95,900 240-475-120 Standby Pay 1,506 2,242 2,300 6,000 240-475-130 Overtime 6,122 6,678 7,000 10,000 240-475-140 Annual Leave Pay 4,919 3,477 4,700 7,200 240-475-150 Sick Leave Pay 3,482 3,111 3,500 6,700 240-475-160 Holiday Pay 3,129 3,724 4,500 5,400 Subtotal Salaries and Wages 92,561 132,565 109,300 131,200 240-475-200 FICA 200 240-475-210 Medicare 1,290 1,843 1,600 1,700 240-475-220 Unemployment 561 1,063 1,000 1,200 240-475-230 Retirement (PERS) 18,372 21,725 20,200 23,600 240-475-240 Group Insurance 13,274 17,598 21,000 43,500 240-475-250 Workers' Compensation Ins. 4,634 6,972 4,500 4,000 240-475-260 Other Benefits 663 624 750 750 Subtotal Employee Benefits 38,794 49,825 49,050 74,950 Total Salaries and Benefits 131,355 182,390 158,350 206,150 240-475-320 Professional Services-Engineering 41,639 74,149 70,000 44,300 240-475-322 Professional Services-Other 500 2,872 3,000 3,000 240-475-324 Professional Services-Environmental 1,140 718 1,000 1,500 240-475-325 Professional Services-PW Inspections 22,613 27,880 25,000 5,000 240-475-342 Tech Services-Other 96 85 1,000 0 240-475-412 Utility Service-Refuse 0 758 2,000 1,900 240-475-420 Contract-Street Sweeping 20,240 22,004 20,000 20,000 240-475-422 Contract-Traffic Light Maintenance 1,674 2,610 5,000 5,000 240-475-426 Contract-Striping 0 37,081 0 0 240-475-430 Service-Repair & Maintenance 7,566 2,078 3,000 2,200 240-475-442 Rental-Eqiupment/Vehicles 0 0 500 240-475-530 Communications 6,416 3,317 3,500 3,500 240-475-540 Advertising 727 4,033 2,500 2,500 240-475-550 Printing and Postage 802 2,575 2,000 2,000 240-475-580 Travel & Training 1,824 2,044 3,500 3,500 240-475-581 Dues and Memberships 135 10 500 500 240-475-585 Educational Assistance Program 0 1,135 0 1,000 240-475-600 General Supplies 13,465 20,493 20,000 20,000 240-475-605 Minor Equipment 525 4,871 5,000 0 240-475-610 Automotive Supplies 1,566 1,533 2,000 2,000 240-475-615 Supplies-Signs and Striping 8,380 13,528 15,000 20,000 240-475-616 Safety Supplies 444 296 3,000 3,000 240-475-622 Electricity 104,513 98,681 115,000 108,000 240-475-623 Propane 0 1,000 1,000 240-475-626 Gasoline 10,951 9,360 15,000 15,000 240-475-640 Books & Periodicals 0 661 1,000 500 240-475-642 Licenses and Permits 0 232 1,000 500 Total Service and Supplies 245,216 333,004 320,000 266,400 Total Operating Expenses 376,571 515,394 478,350 472,550 240-475-730 Improvements Other Than 1,916,818 1,816,380 1,085,779 667,213 240-475-741 Machinery 11,482 70,500 0 Total Capital 1,916,818 1,827,862 1,156,279 667,213 Total Operating and Capital 2,293,389 2,343,256 1,634,629 1,139,763 Revenues less Expenditures -1,044,675 -286,058 -352,365 1,226 240-390-500 Transfers From General Fund 0 550,000 0 Fund Balance July 1 1,224,841 180,166 444,108 91,743 Fund Balance June 30 180,166 444,108 91,743 92,969 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 126 Analysis: Revenues decreased in FY09, primarily due to less money from the Road Construction Tax that is collected with Building Permits. The slowdown in the residential housing was the major factor in the reduced revenue. Revenues estimates for gas taxes increased based on data provided by the Nevada Department of Taxation. Salaries and Wages increased due for allocation of Public Works staff to the Streets and Storm Drains function. The budget includes costs for normal step increases but does not contain an increase to the salary table. Service and supplies decreased due to cutbacks in operations needed for decreased revenues and the inability for a transfer from the General Fund. Gravel Road Maintenance was removed from the budget. The Contract – Street Sweeping line item was reduced by $10,000. Tthe Annual PCI Update and Program Recommendation Process were suspended to cut an additional $41,000. Capital projects slated for construction in FY09 are smaller than prior years due to limited funds available. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 127 Private Sector Community Support Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 235-310-300 Private Sector Donations 21,098 235-360-725 Donations 2,395 6,200 235-360-726 Donations 1,500 1,310 235-360-100 Interest Earnings 163 42 Other Revenue Total Revenues 21,261 3,937 7,510 0 Expenditures: 235-575-322 Professional Services 10,479 30,662 0 235-575-650 Community Support 2,000 26,500 20,000 Other Grant Expenditures Total Expenditures 10,479 32,662 26,500 20,000 235-575-720 Buildings 235-575-730 Improvements Other Than Buildings 235-575-741 Machinery Total Capital 0 0 0 0 Revenues less Expenditures 10,782 -28,725 -18,990 -20,000 Transfers From Other Funds 17,317 20,000 20,000 Fund Balance July 1 0 10,782 -626 384 Fund Balance June 30 10,782 -626 384 384 The fund was originally established for broad purposes. This will be used for the concert in the parks series of events as well as other events. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 128 Green Valley Landscape Maintenance District Description: The approval process for this subdivision contained a provision to create a landscape maintenance district pursuant to NRS 278.4787, NRS278A, 278.360 and 278.460. The documents that created the landscape district require a special revenue fund to account for the fees collected from property owners and the costs incurred for maintenance of certain common areas within the subdivision. The fees collected can be used for landscape, lighting, security wall, fence, trail, park and open space maintenance. Revenue Estimates: The budget assumes that 80 homeowners will be charged $10 per month for total revenue of $9,600. The Parks and Recreation Department staff will maintain the facilities and the full cost will be charged to this special revenue fund. The fee will be collected with the water/sewer bill for each parcel. Account # Description FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 251-340-100 Landscape Maint Dist Fees 9,600 Interest Earnings 100 Total Revenues 0 0 9,700 Expenditures: 251-581-100 Regular Pay 2,200 251-581-140 Annual Leave Pay 200 251-581-150 Sick Leave Pay 200 251-581-160 Holiday Pay 200 Subtotal Salaries and Wages 0 0 2,800 251-581-200 FICA 0 251-581-210 Medicare 100 251-581-220 Unemployment 100 251-581-230 Retirement (PERS) 600 251-581-240 Group Insurance 800 251-581-250 Workers' Compensation Ins. 100 251-581-260 Other Benefits 0 Subtotal Employee Benefits 0 0 1,700 Total Salaries and Benefits 0 0 4,500 251-581-600 General Supplies 500 251-581-622 Electricity 1,500 Total Service and Supplies 0 0 2,000 Total Operating Expenses 0 0 6,500 Total Capital 0 0 0 Total Operating and Capital 0 0 6,500 Revenues less Expenditures 0 3,200 251-390-500 Transfers From General Fund Fund Balance July 1 0 0 0 Fund Balance June 30 0 0 3,200 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 129 Autumn Winds Landscape Maintenance District Description: The approval process for this subdivision contained a provision to create a landscape maintenance district pursuant to NRS 278.4787, NRS278A, 278.360 and 278.460. The documents that created the landscape district require a special revenue fund to account for the fees collected from property owners and the costs incurred for maintenance of certain common areas within the subdivision. The fees collected can be used for landscape, lighting, security wall, fence, trail, park and open space maintenance. Revenue Estimates: The budget assumes that 100 homeowners will be charged $10 per month for total revenue of $112,000. The Parks and Recreation Department staff will maintain the facilities and the full cost will be charged to this special revenue fund. The fee will be collected with the water/sewer bill for each parcel. Account # Description FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 252-340-100 Landscape Maint Dist Fees 12,000 Interest Earnings 100 Total Revenues 0 0 12,100 Expenditures: 252-582-100 Regular Pay 4,500 252-582-140 Annual Leave Pay 400 252-582-150 Sick Leave Pay 400 252-582-160 Holiday Pay 300 Subtotal Salaries and Wages 0 0 5,600 252-582-200 FICA 0 252-582-210 Medicare 100 252-582-220 Unemployment 100 252-582-230 Retirement (PERS) 1,100 252-582-240 Group Insurance 1,800 252-582-250 Workers' Compensation Ins. 200 252-582-260 Other Benefits 0 Subtotal Employee Benefits 0 0 3,300 Total Salaries and Benefits 0 0 8,900 252-582-600 General Supplies 11,000 252-582-622 Electricity 3,240 Total Service and Supplies 0 0 14,240 Total Operating Expenses 0 0 23,140 Total Capital 0 0 0 Total Operating and Capital 0 0 23,140 Revenues less Expenditures 0 0 -11,040 252-390-500 Transfers From General Fund Fund Balance July 1 0 0 0 Fund Balance June 30 0 0 -11,040 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 130 Silverland Landscape Maintenance District Description: The approval process for this subdivision contained a provision to create a landscape maintenance district pursuant to NRS 278.4787, NRS278A, 278.360 and 278.460. The documents that created the landscape district require a special revenue fund to account for the fees collected from property owners and the costs incurred for maintenance of certain common areas within the subdivision. The fees collected can be used for landscape, lighting, security wall, fence, trail, park and open space maintenance. Revenue Estimates: The City intends to begin billing for this district effective July 1, 2008.. Account # Description FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 253-340-100 Landscape Maint Dist Fees 3,700 Total Revenues 0 0 3,700 Expenditures: 253-583-100 Regular Pay 1,200 253-583-140 Annual Leave Pay 100 253-583-150 Sick Leave Pay 100 253-583-160 Holiday Pay 100 Subtotal Salaries and Wages 0 0 1,500 253-583-200 FICA 0 253-583-210 Medicare 100 253-583-220 Unemployment 100 253-583-230 Retirement (PERS) 300 253-583-240 Group Insurance 400 253-583-250 Workers' Compensation Ins. 100 Subtotal Employee Benefits 0 0 1,000 Total Salaries and Benefits 0 0 2,500 253-583-600 General Supplies 300 253-583-622 Electricity 900 Total Service and Supplies 0 0 1,200 Total Operating Expenses 0 0 3,700 Total Capital 0 0 0 Total Operating and Capital 0 0 3,700 Revenues less Expenditures 0 0 0 253-390-500 Transfers From General Fund Fund Balance July 1 0 0 0 Fund Balance June 30 0 0 0 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 131 Friendly Five Landscape Maintenance District Description: The approval process for this subdivision contained a provision to create a landscape maintenance district pursuant to NRS 278.4787, NRS278A, 278.360 and 278.460. The documents that created the landscape district require a special revenue fund to account for the fees collected from property owners and the costs incurred for maintenance of certain common areas within the subdivision. The fees collected can be used for landscape, lighting, security wall, fence, trail, park and open space maintenance. Revenue Estimates: The homes in this subdivision have not been built and occupied. The park in this subdivision has not been built. No activity will occur in this special revenue fund until the park is completed. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 132 B C Ranch Landscape Maintenance District Description: The approval process for this subdivision contained a provision to create a landscape maintenance district pursuant to NRS 278.4787, NRS278A, 278.360 and 278.460. The documents that created the landscape district require a special revenue fund to account for the fees collected from property owners and the costs incurred for maintenance of certain common areas within the subdivision. The fees collected can be used for landscape, lighting, security wall, fence, trail, park and open space maintenance. Revenue Estimates: The homes in this subdivision have not been built and occupied. The park in this subdivision has not been built. No activity will occur in this special revenue fund until the park is completed. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 133 Sario Ranch Landscape Maintenance District Description: The approval process for this subdivision contained a provision to create a landscape maintenance district pursuant to NRS 278.4787, NRS278A, 278.360 and 278.460. The documents that created the landscape district require a special revenue fund to account for the fees collected from property owners and the costs incurred for maintenance of certain common areas within the subdivision. The fees collected can be used for landscape, lighting, security wall, fence, trail, park and open space maintenance. Revenue Estimates: The homes in this subdivision have not been built and occupied. The park in this subdivision has not been built. No activity will occur in this special revenue fund until the park is completed. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 134 Jackson Ranch Landscape Maintenance District Description: The approval process for this subdivision contained a provision to create a landscape maintenance district pursuant to NRS 278.4787, NRS278A, 278.360 and 278.460. The documents that created the landscape district require a special revenue fund to account for the fees collected from property owners and the costs incurred for maintenance of certain common areas within the subdivision. The fees collected can be used for landscape, lighting, security wall, fence, trail, park and open space maintenance. Revenue Estimates: The homes in this subdivision have not been built and occupied. The park in this subdivision has not been built. No activity will occur in this special revenue fund until the park is completed. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 135 Concerts in the Park Series David John and the Comstock Cowboys started the City’s 2nd season of Concerts in the Park. Here David John and Doc Quam are dueling fiddles ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 136     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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 137 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 FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget Revenues: 300-360-100 Interest Earnings 195,809 258,076 75,000 60,000 Bond Proceeds 5,000,000 Miscellaneous Revenues Total Revenues 5,195,809 258,076 75,000 60,000 300-425-720 Cost Sharing-New Animal Shelter Facility 0 300-425-322 Feasibility Study-Community Center/City Ha 0 300-425-720 Buildings 450,644 5,953,248 1,080,000 300-425-741 Machinery (Records Management) 64,815 100,000 300-425-741 Machinery (Disaster Recovery/Software Upgrades/ comput 74,563 150,000 200,000 300-425-741 Machinery 20,000 300-425-322 Capital Improvement Plan 0 300-425-730 Improvements (Basement Records) 40,000 300-425-742 Vehicles 81,000 Total Capital 515,459 6,027,811 1,471,000 200,000 Revenues less Expenditures 4,680,350 -5,769,735 -1,396,000 -140,000 Transfer To Grants Fund -145,000 300-390-500 Transfer from Other Funds 850,000 134,766 Fund Balance July 1 2,502,129 8,032,479 2,397,510 1,001,510 Specific projects included in the capital expenditures line items are: Expansion of City Hall: The City completed this project in FY08. The project was funded through issuance of debt in the amount of $5 million and approximately $2 million in cash from the capital fund. The flood event that occurred on January 5, 2008 essentially used the entire fund balance of the grant fund. Money will be transferred from the capital fund to the grant fund in FY09 to cover matching funds and lobbying costs. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 138     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 Alternative Water Enterprise Fund: The City of Fernley intends to provide alternative water to certain customers within the City for landscaping, irrigation, construction and other uses to conserve potable water for drinking and inside the home use. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 139 Water Utility Fund Organizational Chart: Water Enterprise Fund FY2007/2008 Expenditures Capital, $50,323,785 , 91% Interest, $1,900,000 , 3% Salaries and Wages, $522,000 , 1% Payroll Tax and Benefits, $277,800 , 1% Depreciation, $800,000 , 1% Operating Expenses, $1,653,560 , 3% Voters of Fernley Mayor/City Council City Manager Public Works Director Operations and Maintenance Finance Director (billing) Asst Finance Dir Admin Specialist Tech. Specialist Administration Technical Specialist Public Works Superintendent Public Works Supervisor Mechanic Public Works Workers Treatment Plant Operators Accounting Tech (2.5FTE) Office Assistant II Senior Public Works Workers ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 140 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 implementation of 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 are much more stringent because new regulations were implemented in March 2006. Fortunately, the City entered into a Bi-Lateral Agreement with the State of Nevada to reach compliance by 2009. The City is constructing of a new groundwater treatment plant to treat water to the new standards. In addition, this water treatment plant will also treat surface water so the City can use its surface water rights for potable water use. This will result in a fundamental change in operations because of the necessity to construct and pay for the operation and maintenance of the new facilities. 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 has more than doubled during this time with an estimated 6,916 customers on the system by June 30, 2009. The following chart shows the number of new connections to the water system since July 1, 2001, including estimates for FY09. Water System New Connections 3000 3309 3966 4980 6083 6634 6816 6916 [PHONE REDACTED] 1103 551 182 100 100 0 2000 4000 6000 8000 FY02 FY03 FY04 FY05 FY06 FY07 FY08 (est) FY09 (est) Fiscal Year # of Connections Existing New 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 requirements for dedication 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 and has charged the development for the pro rata share. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 141 Rate Increases The City conducted a rate analysis and increased user rates and development rates to fund current cash operating costs as well as to provide funding for future capital replacements. Connection fees increased from $1,500 per unit to $5,165 per unit. Additional increases for connection fees are not enacted. User rates increased an average of 50% effective July 1, 2007 and additional rate increases are enacted effective July 1, 2008 (approximately 35%), July 1, 2009 (approximately 35%) and July 1, 2010 (approximately The City intends to update the rate analysis during FY09 to determine if the rate increases are still appropriate with the slowdown of growth. Capital Improvement Projects The five year capital improvement plan, including capital expenditures authorized in FY09, is detailed in Appendix D. The FY09 projects are listed below: Water Utility Enterprise Fund 3/4 Ton Pickup 27,000 $ Utility Bed for Pickup 7,000 $ Clamp on Flow Meter 7,000 $ Vehicle/Machinery Replacements Groundwater/Surface Water Treatment Plant 35,787,000 $ Water Conveyance Infrastructure 22,541,000 $ Blend Tank Yard Piping Separation - Design 10,080 $ Flowmeter Retrofit 30,000 $ Water Tanks Interior Coating (NE, Sage, Ricci) 150,000 $ Transmission Main Rehabilitation 250,000 $ The largest projects planned over the next year will be the Groundwater/Surface Water Treatment plant and the associated Water Conveyance systems. The project will span multiple fiscal years and required rate increases and bonding to provide cash for construction. Significant Expenditures and Staffing Changes: Three positions (2.5 FTE) were added in the Public Works Department in FY09. The operation of the Water Treatment Plant will require at least two operators. The City has not completed discussions with the State of Nevada that will ultimately identify the required full complement of operators. A Senior Water Treatment Plant Operator position (1FTE) will be staffed at the beginning of the fiscal year in an effort to ensure maximum understanding of the Water Treatment Plant’s operation. A Water Treatment Operator position is anticipated to be filled at mid-year (0.5 FTE) to support the Senior Water Treatment Plant Operator and begin the required Contractor-City training program for delivery of the Water Treatment Plant. A Public Works Worker position will be staffed at the beginning of the fiscal year to provide support for the additional +/-$23M large-format Water Conveyance Infrastructure being installed around the City in support of the Water Treatment Plant. Staffing Levels and Cost Allocation: ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 142 The Water Utility enterprise fund includes personnel allocated at various percentages, including allocation from various other departments (overhead). The full listing of personnel is included in Appendices A through C of this report. A total of 14.698 FTE are allocated to the fund to perform the services, including an allocation for overhead. 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 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 To review the existing conditions and prior engineering reports to determine the size and location of the tank. Task To design the modifications and put the project out to bid. Task To coordinate construction activities to ensure the construction is in compliance with design. Task To test the facility and place it into service. Objective 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 To determine the characteristics of the design. Task To design the pumping equipment and put the project out to bid. Task To coordinate construction activities to ensure the construction is in compliance with design. Task To test the facility and place it into service. Objective 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 To review the existing conditions and prior engineering reports to determine the size and alignment of the pipelines. Task To design the pipeline alignments and put the project out to bid. Task To coordinate construction activities to ensure the construction is in compliance with design. Task To test the facility and place it into service. Objective Equip new production wells with pumping equipment. Task Coordinate the design with the engineering team to implement the pumping station design. Task To review the testing reports and determine the characteristics of the design. Task To design the pumping equipment and put the project out to bid. Task To coordinate construction activities to ensure the construction is in compliance with design. Task To test the facility and place it into service. Objective Incorporate modeling and GIS mapping for water utility system planning and upgrading of the City’s water system. Task Coordinate the design parameters with the engineering team. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 143 Task To review the existing conditions and prior engineering reports to determine the extent of the modeling and GIS mapping. Task To develop useable reports and mapping for future planning. Objective 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 Utilize City of Fernley surface water rights as part of expanding water production by examining surface water treatment options via surface water treatment pilot plant. Task Coordinate the design with the engineering team to incorporate future needs and existing conditions. Task Construct and review results of surface water treatment pilot plant. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 144 The cash flow statement for the water utility follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget CASH FLOW STATEMENT Cash Received from Customers 2,325,752 2,330,586 3,750,000 5,009,500 Service & Supplies -1,407,417 -1,305,438 -1,784,891 -2,500,100 Wages & Benefits -370,977 -389,122 -790,100 -945,700 Non-Operating Revenues 46,941 48,562 253,750 25,000 Cash from Operations 594,299 684,588 1,428,759 1,588,700 Proceeds from Grants 0 438,681 600,000 Proceeds from Bond Issue 44,918,068 32,100,000 Proceeds short term trade accounts 1,414,106 Cash Received from Other Funds Cash Advances to Other Funds Intergovernmental Transfer -800,000 Interest Paid on Debt -26,432 -19,638 -18,000 -10,000 Interest Income 315,950 910,903 20,000 20,000 Deferred Charge -6,087 -321,986 -400,000 Principal Payments on Long Term Debt -145,000 -167,394 -160,000 -170,000 Capital Contributions 1,014,573 362,051 100,000 100,000 Developer Oversize Agreement 149,452 In Lieu Of Water Rights Fees 329,970 307,160 100,000 100,000 Grants for Construction Disposition of Capital Asset Acquisition of Assets & Projects -1,475,577 -5,602,388 -19,519,825 -58,809,080 Increase (Decrease) in Cash -48,852 42,485,470 14,089,615 -56,580,380 Cash & Equivalents July 1 9,107,889 9,059,037 51,544,507 65,634,122 Cash & Equivalents June 30 9,059,037 51,544,507 65,634,122 9,053,742 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 145 The summarized income statement for the water utility follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget SUMMARY INCOME STATEMENT Operating Revenues: 510-370-100 Water Use Fees 1,991,035 2,192,430 3,670,000 4,954,500 510-370-300 Material & Labor Charges 173,453 92,489 50,000 50,000 510-370-310 PW Inspection Fees 37,428 21,274 30,000 5,000 510-370-400 Engineer Review Fees Operating Revenues 2,201,916 2,306,193 3,750,000 5,009,500 Operating Expenses: Salaries, Wages & Benefits 513,064 550,160 790,100 945,700 Service & Supplies 1,144,496 1,146,095 1,784,891 2,500,100 Depreciation 739,799 836,132 860,000 860,000 Total Operating Expenses 2,397,359 2,532,387 3,434,991 4,305,800 Operating Income or Loss -195,443 -226,194 315,009 703,700 Non-Operating Revenues & Expenses 510-380-100 Interest Income 345,511 1,047,914 20,000 20,000 510-800-860 Interest Expense -25,224 -526,166 -18,000 -10,000 510-380-200 Rental Income 8,250 9,000 3,750 510-380-900 Miscellaneous Income 38,691 37,094 250,000 25,000 510-370-400 Engineer Review Fees 510-370-500 Assessment Fees 510-370-601 SB62 Grant Revenue 38,681 510-370-602 TROA Grant Revenue 400,000 600,000 510-380-500 In Lieu of Water Rights Fees 329,970 307,160 100,000 100,000 510-380-501 Water Rights Settlement 39,292 Intergovernmental Transfer 510-380-400 Sale of Capital Assets 0 Total Non-Operating Income & Expenses 697,198 875,002 833,723 735,000 Capital Contributions In: 510-395-900 Developer Contribution-Donner Trails 62,920 34,606 30,000 50,000 510-395-910 Customer Constributions-Hookups 881,823 362,051 100,000 100,000 510-395-920 Capital Grant BOR 132,750 510-395-930 Desert Lakes Reimbursements 86,209 13,956 0 510-395-934 Whippletree Assessments 324 510-395-940 Developer Donated Infrastructure 2,633,534 1,520,734 5,000,000 5,000,000 510-395-950 Developer Donated Water Rights 10,501,525 14,372,138 10,000,000 10,000,000 Intergovernmental Transfer -800,000 Other Grants Total Capital Contributions In 13,499,085 16,303,485 15,130,000 15,150,000 Net Income or Loss 14,000,840 16,952,293 16,278,732 16,588,700 The detail of expenditures in the water utility enterprise fund follows: ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 146 Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget DETAIL OPERATING EXPENSES: 510-810-100 Regular Pay 301,979 316,480 407,900 496,800 510-810-120 Standby Pay 5,338 8,205 8,000 8,000 510-810-130 Overtime 22,692 24,041 25,000 26,300 510-810-140 Annual Leave Pay 16,944 17,071 30,500 37,300 510-810-150 Sick Leave Pay 14,611 14,738 28,100 34,500 510-810-160 Holiday Pay 11,142 11,641 22,500 27,500 Total Salaries and Wages 372,706 392,176 522,000 630,400 510-810-200 FICA 55 76 200 100 510-810-210 Medicare 4,627 5,430 7,100 8,900 510-810-220 Unemployment 2,369 3,206 4,900 6,200 510-810-230 Retirement-PERS 58,838 63,698 99,600 121,900 510-810-240 Group Insurance 59,113 64,620 139,700 159,100 510-810-250 Workers Compensation 13,650 19,589 15,800 19,100 510-810-260 Other Benefits 1,706 1,365 800 0 Total Employee Benefits 140,358 157,984 268,100 315,300 Total Salaries and Benefits 513,064 550,160 790,100 945,700 510-810-300 Professional Services-City Attorney 15,501 15,501 6,000 0 510-810-310 Professional Services-Legal 840 0 5,000 20,000 510-810-320 Professional Services-Engineering 90,029 58,077 50,000 58,000 510-810-322 Professional Services-Other 6,323 25,210 5,000 29,000 510-810-324 Professional Services-Environmental 0 75 1,500 3,000 510-810-325 Professional Services-PW Inspections 33,210 27,688 30,000 5,000 510-810-328 Professional Services-Auditing/Acct Asst 12,666 14,862 15,000 15,000 510-810-340 Tech Services-Lab Analysis 15,046 22,056 45,000 50,000 510-810-342 Tech Services-Other 4,147 9,875 16,000 20,000 510-810-412 Utility Service Refuse 1,774 2,423 2,000 4,000 510-810-430 Service Repair and Maintenance 94,675 26,706 35,000 35,000 510-810-431 Road Maintenance (contract service) 5,331 675 3,000 3,000 510-810-441 Rental 56,038 11,725 8,000 25,000 510-810-444 Interfund Cost Allocation Bldg Space 20,000 20,000 510-810-520 Insurance 25,724 33,307 34,000 45,000 510-810-530 Communications 4,001 4,396 6,000 6,000 510-810-540 Advertising 1,296 3,391 3,500 3,500 510-810-550 Printing and Postage 20,831 23,136 30,000 30,000 510-810-580 Travel and Training 2,947 3,613 10,000 7,500 510-810-581 Dues and Memberships 656 1,001 1,500 1,500 510-810-585 Educational Assistance Program 0 966 0 1,000 510-810-601 Office Supplies 7,571 8,847 9,000 9,000 510-810-605 Minor Equipment 2,600 8,838 45,460 91,000 510-810-610 Automotive Supplies 13,336 16,394 36,000 36,000 510-810-612 15,070 510-810-614 Plant/Shop/Maint Supplies 57,688 92,236 85,000 369,000 510-810-615 Customer Hookup Supplies (see revenue) 206,837 75,368 50,000 75,000 510-810-616 Safety Supplies 1,804 885 3,000 3,000 510-810-618 Supplies-Well Head Protection Program 0 0 0 5,000 510-810-621 Natural Gas 4,586 3,796 3,150 4,000 510-810-622 Electricity 320,646 460,289 600,000 739,000 510-810-623 Propane 0 0 100 100 510-810-626 Gasoline 51,566 18,350 25,000 25,000 510-810-640 Books and Periodicals 1,517 1,592 3,000 2,500 510-810-642 Permits and Licenses 4,000 12,184 10,000 10,000 510-810-696 TROA Grant Expense 400,000 600,000 510-810-697 SB62 Water Rights Tech Support 26,265 38,681 510-810-698 Water Rights Protection 66,240 136,368 150,000 150,000 Total Service & Supplies 1,144,496 1,146,095 1,784,891 2,500,100 510-810-800 Depreciation 739,799 836,132 860,000 860,000 510-800-860 Interest Expense 25,224 526,166 18,000 10,000 Total Expenses 2,422,583 3,058,553 3,452,991 4,315,800 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 147 Analysis: Use fees are projected to increase approximately 35% due to an enacted rate increase effective July 1, 2008. The customer base is assumed to remain flat in the revenue estimate because there has been an increase in the number of commercial customers and some vacancies in residential customers. Salaries and Wages increased due to additional positions for operations of the new treatment plant and associated piping facilities. The budget assumes no increase to the salary table but does include projected step increases for existing personnel. Service and supplies increased primarily due to added operational costs associated with the new treatment plant and other constructed assets. Most of the interest incurred for bonds issued in FY07 and FY08 is capitalized as a part of the cost of the constructed assets. Upon completion of the construction period, interest expense will be expensed. The largest capital project is construction of a water treatment facility and associated conveyance systems. Additional projects for system replacements are also slated for FY09. For a full list of the five year capital improvement plan, see Appendix D. Operation and maintenance costs for these capital projects were factored into recently enacted rate increases. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 148 Sewer Utility Fund Organizational Chart: Voters of Fernley Mayor/City Council City Manager Public Works Director O & M Division Assistant Public Works Administrative Support Technical Specialist Office Assistant II Construction Services Public Works Superintendent Plan Review (contract) Public Works Supervisor Water/Alt Water Streets and Storm Drains Capital Projects (contract) Quality Assurance Water Treatment Wastewater Treatment/Coll Meter Reading Mechanical Sr. PW Worker Sr. PW Worker Treatment Plant Operator Sr Treatment Plant Operator Meter Reader Mechanic PW Worker PW Worker PW Worker PW Worker PW Worker Treatment Plant Operator PW Worker PW Worker Meter Reader ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 149 Sewer Enterprise Fund FY2008/2009 Expenditures Capital, $4,267,000 , 63% Interest, $320,000 , 5% Salaries and Wages, $460,400 , 7% Payroll Tax and Benefits, $215,600 , 3% Depreciation, $580,000 , 9% Operating Expenses, $843,400 , 13% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 150 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 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 has more than doubled for an expected customer count of 6,802 by June 30, 2009. The following chart shows the number of new connections to the sewer system since July 1, 2001, including estimates for FY08 and FY09. Sewer System New Connections 3000 3301 3950 4957 6049 6600 6702 6802 [PHONE REDACTED] 1092 551 102 100 100 0 2000 4000 6000 8000 FY02 FY03 FY04 FY05 FY06 FY07 FY08 (est) FY09 (est) Fiscal Year # of Connections Existing New 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 conducted a rate analysis and increased user rates needed to fund current cash operating costs as well as to provide funding for future capital replacements. The enterprise fund has collected connection fees to fund expansions needed to accommodate development, however, these rates also increased because of the new plant and equipment needed to new customers and other plant expansions. The enacted rate increase effective July 1, 2008 of approximately 2.5% is included in the revenue estimates for the fund. The City intends to update its rate analysis during the fiscal year. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 151 Capital Expenditures: The capital expenditures in the FY09 budget are listed below: Sewer Utility Enterprise Fund: Skip Loader with Attachments 67,000 $ Sewer Main Rehabilitation 200,000 $ Vehicle/Equipment Replacements Manhole Replacement/Relining Project 200,000 $ Lift Station Pressure Transducers 30,000 $ EWWTP Pond I Relining 400,000 $ West Lift Station Upgrade 620,000 $ 95A Interceptor - Manhole 19 - Front - Manhole 345 Highway 50 Lift Station 2,600,000 $ SCADA Upgrade 150,000 $ Donner Trails Lift Station Oversize Agreement 237,308 $ The largest projects are the Fernley Interceptor Upgrade Project and the Highway 50 Lift station Project. The operations and maintenance costs for the constructed assets have been factored into rates. Significant Expenditures and Staffing Changes: The staff increases in the Public Works Department in FY09 all relate to the Water enterprise fund. Staffing Levels and Cost Allocation: The Sewer Utility enterprise fund includes personnel allocated at the noted percentages in appendix C. A total of 9.398 FTE are included in the costs for sewer operations, including billing and administrative overhead. 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 Provide engineering and GIS services to provide 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 Master Plan Report for planning and budgeting of system upgrades. Objective Complete upgrades of existing facilities to improve efficiencies and reduce Operations 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 152 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 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 Make repairs to existing sewer lift station(s) as part of an ongoing program to continually maintain and improve the 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 153 The cash flow statement for the sewer utility enterprise fund follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget CASH FLOW STATEMENT Cash Received from Customers 1,683,535 1,741,523 1,830,000 1,875,500 Service & Supplies -347,242 -1,304,270 -686,350 -843,400 Wages & Benefits -146,220 -376,508 -687,300 -676,000 Miscellaneous Income 12,500 0 0 Cash from Operations 1,202,573 60,745 456,350 356,100 Proceeds from Grants Proceeds from Bond Issue 5,551,671 2,500,000 Proceeds from Short Term Trade Accounts 970,931 Deferred Charge -40,427 Cash Received from Other Funds Cash Advanced to Other Funds Developer Agreements 24,660 4,410 Interest Expense -39,156 -34,398 -46,100 -320,000 Interest Income 304,633 428,923 300,000 300,000 Principal Payments on Long Term Debt -117,745 -122,502 -127,451 -115,436 Capital Contributions 1,120,919 497,034 196,000 196,000 Grants for Construction Acquisition of Assets & Projects -1,857,982 -5,940,945 -593,825 -4,267,000 Increase (Decrease) in Cash 637,902 1,375,442 2,684,974 -3,850,336 Cash & Equivalents July 1 8,365,207 9,003,109 10,378,551 13,063,525 Cash & Equivalents June 30 9,003,109 10,378,551 13,063,525 9,213,189 The summary income statement for the sewer utility enterprise fund follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget SUMMARY INCOME STATEMENT Operating Revenues: 520-370-100 Sewer Use Fees 1,648,640 1,731,332 1,800,000 1,845,000 520-370-300 Material and Labor Charges 33 2,318 500 520-370-310 PW Inspection Fees 37,428 21,170 30,000 30,000 Miscellaneous Operating Revenues 1,686,101 1,754,820 1,830,000 1,875,500 Operating Expenses: Salaries, Wages & Benefits 483,433 535,429 687,300 676,000 Service & Supplies 506,921 641,525 686,350 843,400 Depreciation 503,744 540,916 580,000 580,000 Total Operating Expenses 1,494,098 1,717,870 1,953,650 2,099,400 Operating Income or Loss 192,003 36,950 -123,650 -223,900 Non-Operating Revenues & Expenses 520-380-100 Interest Income 337,837 414,689 300,000 300,000 520-800-860 Interest Expense -36,800 -94,713 -46,100 -320,000 520-380-900 Miscellaneous Income 193 520-380-400 Disposition of Assets 12,500 Total Non-Operating Income & Expenses 313,537 320,169 253,900 -20,000 Capital Contributions In: 520-395-900 Developer Contribution-Donner Trails 7,201 3,845 1,000 1,000 520-395-910 Customer Contributions-Hookups 1,120,919 497,034 175,000 175,000 520-395-930 Desert Lakes Reimbursement 17,459 565 0 0 520-395-933 East Lift Station Assessment 12,767 96,373 5,000 5,000 520-395-934 Sewer Interceptor Assessment 36,328 210,152 15,000 15,000 520-395-940 Developer Donated Infrastructure 2,469,666 1,239,499 5,000,000 5,000,000 Total Capital Contributions In 3,664,340 2,047,468 5,196,000 5,196,000 Net Income or Loss 4,169,880 2,404,587 5,326,250 4,952,100 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 154 The detail expenditures for the sewer enterprise fund follow: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget DETAIL OPERATING EXPENSES: 520-810-100 Regular Pay 279,771 307,785 352,300 352,700 520-810-120 Standby Pay 5,641 6,934 10,800 10,800 520-810-130 Overtime 21,581 21,416 25,000 26,300 520-810-140 Annual Leave Pay 17,282 17,296 26,300 26,500 520-810-150 Sick Leave Pay 13,683 14,228 24,300 24,500 520-810-160 Holiday Pay 10,815 11,939 19,400 19,600 Total Salaries and Wages 348,773 379,598 458,100 460,400 520-810-200 FICA 55 75 200 100 520-810-210 Medicare 4,427 5,221 6,200 6,400 520-810-220 Unemployment 2,271 3,176 4,300 4,500 520-810-230 Retirement-PERS 56,403 60,996 85,900 86,500 520-810-240 Group Insurance 57,133 65,982 117,200 104,100 520-810-250 Workers Compensation 12,899 19,172 13,900 14,000 520-810-260 Other Benefits 1,472 1,209 1,500 0 Total Employee Benefits 134,660 155,831 229,200 215,600 Total Salaries and Benefits 483,433 535,429 687,300 676,000 520-810-300 Professional Services-City Attorney 15,501 18,319 6,000 0 520-810-310 Professional Services-Legal 0 0 5,000 10,000 520-810-320 Professional Services-Engineering 54,688 86,923 50,000 94,200 520-810-322 Professional Services-Other 8,680 24,598 4,000 29,000 520-810-324 Professional Service-Environmental 0 0 1,500 3,000 520-810-325 Professional Services-PW Inspections 32,686 27,681 30,000 5,000 520-810-328 Professional Services-Auditing/Acct Asst 12,667 14,862 15,000 15,000 520-810-340 Tech Services-Lab Analysis 9,605 10,115 17,500 15,000 520-810-342 Tech Services-Other 3,111 8,415 17,500 15,000 520-810-412 Utility Service Refuse 1,384 4,488 7,500 10,000 520-810-426 Contract-Sewer Cleaning & Inspection 9,803 1,100 20,000 30,000 520-810-430 Service Repair and Maintenance 9,005 15,270 23,500 35,000 520-810-431 Service Road Maintenance 3,000 3,000 520-810-441 Rental 11,786 11,144 5,000 15,000 [PHONE REDACTED] Interfund Cost Allocation Bldg Space 20,000 20,000 520-810-520 Insurance 25,356 33,307 34,000 70,000 520-810-530 Communications 4,354 4,220 6,000 6,000 520-810-540 Advertising 956 3,178 5,000 3,000 520-810-550 Printing and Postage 22,362 21,467 25,000 30,000 520-810-580 Travel and Training 1,032 4,120 5,000 7,500 520-810-581 Dues and Memberships 173 190 500 1,500 520-810-585 Educational Assistance Program 0 966 0 1,000 520-810-600 General Supplies 0 0 0 520-810-601 Office Supplies 7,400 7,230 7,500 10,000 520-810-605 Minor Equipment 959 7,327 24,000 24,000 520-810-610 Automotive Supplies 9,646 9,509 11,000 17,000 520-810-612 Buildings and Grounds Supplies 14,766 5,875 520-810-614 Plant/Shop/Maint Supplies 58,810 47,836 60,000 70,000 520-810-616 Safety Supplies 1,816 2,543 3,000 3,000 520-810-621 Natural Gas 5,046 4,844 3,150 4,000 520-810-622 Electricity 152,756 242,122 230,000 250,000 520-810-623 Propane 51 0 200 200 520-810-626 Gasoline 26,841 18,377 30,000 30,000 520-810-640 Books and Periodicals 719 1,223 1,500 2,000 520-810-642 Permits and Licenses 4,962 4,276 15,000 15,000 Total Service & Supplies 506,921 641,525 686,350 843,400 520-810-800 Depreciation 503,746 540,916 580,000 580,000 520-800-860 Interest 36,800 94,713 46,100 320,000 Total Expenses 1,530,900 1,812,583 1,999,750 2,419,400 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 155 Analysis: Use fees are projected to increase in FY09 due to an enacted rate increase effective July 1, 2008 of approximately 2.5%. The customer base is expected to be the same as the prior year due to the slowdown of new housing. Connection fees are not expected to increase from the prior fiscal year also due to the slowdown in residential housing. Most of the connection fees in FY08 were related to commercial development and the FY09 estimates are also based largely on commercial development. Salaries and Wages decreased due to a change in allocation of personnel costs to the other functions. The salaries and wages section assumes no increase in the wage scale but does include projected step increases for existing personnel. See the Capital Expenditure Summary in Appendix D for a full list of capital expenditures. Services and supplies increased primarily due to higher expected engineering costs, higher insurance costs (more assets to insure) and the cost to update the rate study. Interest expense is expected to increase due to the new debt incurred for the Highway 50 lift station project. Some of this interest will be capitalized into the cost of the asset. The largest capital item is construction of a lift station for approximately $2.6 million. This project is funded through proceeds from a bond in FY07-08 and existing cash balances. See the Capital Expenditure Summary in Appendix D for a full list of capital expenditures ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 156 Alternative Water Utility Fund Organizational Chart: See water and sewer fund descriptions for an organizational chart. Description: The Alternative 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, irrigation, construction and other uses. The use of untreated water will result in conservation of treated water and lower costs to customers (versus using potable water for landscaping, irrigation, construction or other uses). Rates The City will conduct 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 alternative water delivery system. In addition, developers are required to put in “purple pipe” mains and laterals to each home for delivery of alternative water when the City completes delivery infrastructure. The City also plans to set appropriate rates for water used in construction and to eliminate the use of water meters attached to fire hydrants on the potable water system for construction use. Capital Expenditures: The following capital expenditures are included in the FY09 budget: Alternative Water Utility Enterprise Fund Alternative Water Transmission Mains 145,000 $ Alternative Water Piping-Cottonwood Lane 29,040 $ Alternative Water Piping-Green Valley 29,040 $ Bulk Water Truck Fill Stations (3 site) 38,000 $ Truckee Canal Localized Intake Structure 78,440 $ Subtotal Alternative Water Fund 319,520 $ Significant Expenditures and Staffing Changes: The City anticipates that there will be at least two sources of construction water sales associated with this fund (Bulk Water Truck Filling Station and Well The City intends to connect 400 homes to the Alternative Water System by the end of FY08/09. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 157 Objective Utilize City of Fernley surface water rights as part of expanding water production by constructing alternative water distribution center. Task Coordinate the design with the engineering team to incorporate future needs and existing conditions. Task To review the existing conditions and prior engineering reports to determine the size and alignment of infrastructure. Task To design the infrastructure and put the project out to bid. Task To coordinate construction activities to ensure the construction is in compliance with design specifications. Task To test the facility and place it into service. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 158 The cash flow statement for the Alternative Water Utility Enterprise Fund follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget CASH FLOW STATEMENT Cash Received from Customers 0 0 0 0 Service & Supplies 0 -120 -40,600 -288,600 Wages & Benefits 0 0 -164,600 -191,700 Miscellaneous Income 0 0 0 0 Cash from Operations 0 -120 -205,200 -480,300 Intergovernmental Transfers 800,000 Interest Income 13,703 50,689 55,000 20,000 Capital Contributions 117,000 105,301 26,000 26,000 Acquisition of Assets & Projects -102,217 -202,350 -319,520 Increase (Decrease) in Cash 930,703 53,653 -326,550 -753,820 Cash & Equivalents July 1 131,993 1,062,696 1,116,349 789,799 Cash & Equivalents June 30 1,062,696 1,116,349 789,799 35,979 The summary income statement for the Alternative Water Utility Enterprise Fund follows: Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget SUMMARY INCOME STATEMENT Operating Revenues: Operating Revenues 0 0 0 0 Operating Expenses: Salaries, Wages & Benefits 0 0 164,600 191,700 Service & Supplies 120 0 40,600 288,600 Depreciation 580 9,340 15,000 200,000 Total Operating Expenses 700 9,340 220,200 680,300 Operating Income or Loss -700 -9,340 -220,200 -680,300 Non-Operating Revenues & Expenses 530-380-100 Interest Income 19,433 48,683 55,000 20,000 Total Non-Operating Income & Expenses 19,433 48,683 55,000 20,000 Capital Contributions In: 530-395-910 Customer Contributions-Hookups 117,000 105,301 26,000 26,000 530-395-940 Developer Donated Infrastructure 319,036 252,442 Intergovernmental Transfer 800,000 Total Capital Contributions In 1,236,036 357,743 26,000 26,000 Net Income or Loss 1,254,769 397,086 -139,200 -634,300 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 159 Account # Description FY05-06 Actual FY06-07 Actual FY07-08 Expected FY08-09 Budget DETAIL OPERATING EXPENSES: 530-810-100 Regular Pay 85,600 87,800 530-810-120 Standby Pay 5,300 8,000 530-810-130 Overtime 15,000 24,000 530-810-140 Annual Leave Pay 4,400 6,600 530-810-150 Sick Leave Pay 2,600 6,100 530-810-160 Holiday Pay 4,700 5,000 Total Salaries and Wages 0 0 117,600 137,500 530-810-200 FICA 200 100 530-810-210 Medicare 1,600 1,900 530-810-220 Unemployment 1,200 1,400 530-810-230 Retirement-PERS 20,800 21,600 530-810-240 Group Insurance 19,000 24,900 530-810-250 Workers Compensation 4,100 4,300 530-810-260 Other Benefits 100 0 Total Employee Benefits 0 0 47,000 54,200 Total Salaries and Benefits 0 0 164,600 191,700 530-810-310 Professional Services-Legal 5,000 530-810-320 Professional Services-Engineering 120 30,000 22,300 530-810-322 Professional Services-Other 900 30,000 530-810-324 Professional Services-Environmental 1,000 530-810-325 Professional Services-PW Inspections 700 5,000 530-810-328 Professional Services-Auditing/Acct Asst 2,000 530-810-340 Tech Services-Lab Analysis 3,500 530-810-342 Tech Services-Other 1,000 2,400 530-810-412 Utility Service-Refuse 700 530-810-430 Service Repair and Maintenance 12,000 530-810-431 Service-Road Maintenance 1,000 530-810-441 Rental 8,400 530-810-520 Insurance 10,000 530-810-530 Communications 500 2,000 530-810-540 Advertising 3,500 530-810-550 Printing and Postage 8,400 530-810-580 Travel and Training 500 2,500 530-810-581 Dues and Memberships 500 1,500 530-810-585 Educational Assistance Program 1,000 530-810-601 Office Supplies 500 3,000 530-810-605 Minor Equipment 500 14,500 530-810-610 Automotive Supplies 12,000 530-810-614 Plant/Shop/Maint Supplies 5,000 36,000 530-810-615 Meter Installation Supplies 25,000 530-810-616 Safety Supplies 3,000 530-810-618 Supplies-Well Head Protection Program 10,000 530-810-621 Natural Gas 1,400 530-810-622 Electricity 50,000 530-810-626 Gasoline 5,000 530-810-640 Books and Periodicals 500 1,500 530-810-642 Permits and Licenses 5,000 Total Service & Supplies 120 0 40,600 288,600 520-810-800 Depreciation 580 9,340 15,000 200,000 Total Expenses 700 9,340 220,200 680,300 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 160  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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 161 Appendix A – Salary Schedules The salary table (assuming employer only PERS) for the City of Fernley effective July 1, 2007 is shown in the following table. The table includes 4.00% step increments, 2.50% range increments. Hourly Rates of Pay Annual Rates Range A B C D E F G H I A I 98 9.86 10.25 10.66 11.09 11.53 11.99 12.47 12.97 13.49 20,509 28,059 99 10.10 10.50 10.92 11.36 11.81 12.28 12.77 13.28 13.81 21,008 28,725 100 10.36 10.77 11.20 11.65 12.12 12.60 13.10 13.62 14.16 21,549 29,453 101 10.63 11.06 11.50 11.96 12.44 12.94 13.46 14.00 14.56 22,110 30,285 102 10.89 11.33 11.78 12.25 12.74 13.25 13.78 14.33 14.90 22,651 30,992 103 11.17 11.62 12.08 12.56 13.06 13.58 14.12 14.68 15.27 23,234 31,762 104 11.44 11.90 12.38 12.88 13.40 13.94 14.50 15.08 15.68 23,795 32,614 105 11.73 12.20 12.69 13.20 13.73 14.28 14.85 15.44 16.06 24,398 33,405 106 12.02 12.50 13.00 13.52 14.06 14.62 15.20 15.81 16.44 25,002 34,195 107 12.32 12.81 13.32 13.85 14.40 14.98 15.58 16.20 16.85 25,626 35,048 108 12.64 13.15 13.68 14.23 14.80 15.39 16.01 16.65 17.32 26,291 36,026 109 12.96 13.48 14.02 14.58 15.16 15.77 16.40 17.06 17.74 26,957 36,899 110 13.27 13.80 14.35 14.92 15.52 16.14 16.79 17.46 18.16 27,602 37,773 111 13.60 14.14 14.71 15.30 15.91 16.55 17.21 17.90 18.62 28,288 38,730 112 13.94 14.50 15.08 15.68 16.31 16.96 17.64 18.35 19.08 28,995 39,686 113 14.29 14.86 15.45 16.07 16.71 17.38 18.08 18.80 19.55 29,723 40,664 114 14.65 15.24 15.85 16.48 17.14 17.83 18.54 19.28 20.05 30,472 41,704 115 15.01 15.61 16.23 16.88 17.56 18.26 18.99 19.75 20.54 31,221 42,723 116 15.40 16.02 16.66 17.33 18.02 18.74 19.49 20.27 21.08 32,032 43,846 117 15.78 16.41 17.07 17.75 18.46 19.20 19.97 20.77 21.60 32,822 44,928 118 16.17 16.82 17.49 18.19 18.92 19.68 20.47 21.29 22.14 33,634 46,051 119 16.57 17.23 17.92 18.64 19.39 20.17 20.98 21.82 22.69 34,466 47,195 120 16.98 17.66 18.37 19.10 19.86 20.65 21.48 22.34 23.23 35,318 48,318 121 17.41 18.11 18.83 19.58 20.36 21.17 22.02 22.90 23.82 36,213 49,546 122 17.84 18.55 19.29 20.06 20.86 21.69 22.56 23.46 24.40 37,107 50,752 123 18.29 19.02 19.78 20.57 21.39 22.25 23.14 24.07 25.03 38,043 52,062 124 18.75 19.50 20.28 21.09 21.93 22.81 23.72 24.67 25.66 39,000 53,373 125 19.21 19.98 20.78 21.61 22.47 23.37 24.30 25.27 26.28 39,957 54,662 126 19.69 20.48 21.30 22.15 23.04 23.96 24.92 25.92 26.96 40,955 56,077 127 20.18 20.99 21.83 22.70 23.61 24.55 25.53 26.55 27.61 41,974 57,429 128 20.68 21.51 22.37 23.26 24.19 25.16 26.17 27.22 28.31 43,014 58,885 129 21.20 22.05 22.93 23.85 24.80 25.79 26.82 27.89 29.01 44,096 60,341 130 21.73 22.60 23.50 24.44 25.42 26.44 27.50 28.60 29.74 45,198 61,859 131 22.27 23.16 24.09 25.05 26.05 27.09 28.17 29.30 30.47 46,322 63,378 132 22.83 23.74 24.69 25.68 26.71 27.78 28.89 30.05 31.25 47,486 65,000 133 23.40 24.34 25.31 26.32 27.37 28.46 29.60 30.78 32.01 48,672 66,581 134 23.99 24.95 25.95 26.99 28.07 29.19 30.36 31.57 32.83 49,899 68,286 135 24.59 25.57 26.59 27.65 28.76 29.91 31.11 32.35 33.64 51,147 69,971 136 25.20 26.21 27.26 28.35 29.48 30.66 31.89 33.17 34.50 52,416 71,760 137 25.83 26.86 27.93 29.05 30.21 31.42 32.68 33.99 35.35 53,726 73,528 138 26.48 27.54 28.64 29.79 30.98 32.22 33.51 34.85 36.24 55,078 75,379 139 27.14 28.23 29.36 30.53 31.75 33.02 34.34 35.71 37.14 56,451 77,251 140 27.82 28.93 30.09 31.29 32.54 33.84 35.19 36.60 38.06 57,866 79,165 141 28.52 29.66 30.85 32.08 33.36 34.69 36.08 37.52 39.02 59,322 81,162 142 29.23 30.40 31.62 32.88 34.20 35.57 36.99 38.47 40.01 60,798 83,221 143 29.96 31.16 32.41 33.71 35.06 36.46 37.92 39.44 41.02 62,317 85,322 144 30.71 31.94 33.22 34.55 35.93 37.37 38.86 40.41 42.03 63,877 87,422 145 31.48 32.74 34.05 35.41 36.83 38.30 39.83 41.42 43.08 65,478 89,606 146 32.27 33.56 34.90 36.30 37.75 39.26 40.83 42.46 44.16 67,122 91,853 147 33.08 34.40 35.78 37.21 38.70 40.25 41.86 43.53 45.27 68,806 94,162 148 33.91 35.27 36.68 38.15 39.68 41.27 42.92 44.64 46.43 70,533 96,574 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 162 The following table shows the classifications and ranges approved by the City: Range Classification Hourly (Part-time and seasonal) Maintenance Helper 102 Vector Control Assistant 103 Office Assistant I 110 Office Assistant II 111 Maintenance Worker 112 Permit Technician 113 Accounting Technician I Court Clerk I Public Works Worker I Senior Maintenance Worker 114 Animal Control Officer 115 Accounting Technician II Court Clerk II Technical Specialist I 116 Treatment Plant Operator I 117 Building Inspector I Deputy City Clerk Public Works Worker II Technical Specialist II Water Meter Reader 119 Maintenance Supervisor Senior Public Works Worker 120 Treatment Plant Operator II 121 Administrative Specialist Building Inspector II Legal Secretary Mechanic Plans Examiner GIS Technician 122 Treatment Plant Operator II 123 Building Inspector III Senior Plans Examiner Senior Treatment Plant Operator Vector Control Supervisor 125 Public Works Supervisor 128 Assistant Planner Information Technology Specialist 130 Associate Planner 132 Assistant Engineer 134 Accountant (Deputy City Treasurer) Associate Engineer Assistant to the City Manager Public Works Superintendent Assistant Public Works Director Senior Planner 136 City Clerk 140 Parks and Recreation Director 141 Building Official 148 Finance Director/City Treasurer Community Development Director Public Works Director Contract City Manager City Attorney ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 163 Appendix B – Authorized Personnel The following table shows the authorized positions for Fiscal Year 2007-2008 in terms of Full Time Equivalents (FTE). Department/Position FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 ELECTED OFFICIALS: Mayor 1.00 1.00 1.00 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 5.00 5.00 5.00 Subtotal Elected Officials 6.00 6.00 6.00 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 0.40 0.40 0.40 Subtotal Judicial 0.20 0.20 0.40 0.40 0.40 0.40 0.40 0.40 OFFICE OF THE CITY MANAGER: City Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Assistant to the City Manager 1.00 Senior Office Assistant 1.00 Administrative Specialist 1.00 1.00 1.00 Office Assistant II (1/2 Animal Control) 0.50 1.00 Subtotal Office of the City Manager 1.00 1.00 1.00 1.00 2.00 2.00 2.50 4.00 OFFICE OF THE CITY ATTORNEY: City Attorney 1.00 1.00 Legal Secretary 1.00 1.00 Subtotal Office of the City Manager 2.00 2.00 OFFICE OF THE CITY CLERK: City Clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Deputy City Clerk 1.00 1.00 1.00 1.00 1.00 Court Clerk (moved from Adm Srv Dpt) 1.00 1.00 Court Clerk (moved from Adm Srv Dpt) 1.00 1.00 Office Assistant II (regular full time) 1.00 1.00 Office Assistant II (regular part-time) 0.75 0.75 0.75 0.50 1.10 1.10 0.75 0.75 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 3.10 5.75 5.75 FINANCE DEPARTMENT (CITY TREAS) Finance Director (City Treasurer) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Asst Adm Serv Dir (Deputy City Treas.) 1.00 1.00 Accountant (Deputy City Treasurer) 1.00 1.00 Business Office Manager 1.00 1.00 1.00 1.00 1.00 Administrative Specialist 1.00 1.00 1.00 Senior Office Assistant 1.00 1.00 1.00 3.00 3.00 Information Technology Specialist 1.00 1.00 GIS 1.00 Technical Specialist 2.00 1.00 1.00 Office Assistant II (Court Clerk) 1.00 1.00 1.00 1.00 Court Clerk 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 0.50 Accounting Technician 3.00 2.00 2.50 Animal Control Officer 1.00 1.00 1.00 Animal Control Officer (regular part-time) 0.50 0.50 Office Assistant II (part-time) 0.50 0.50 Subtotal Finance Department 5.00 6.50 6.50 9.00 11.00 11.00 7.50 8.50 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 164 Department/Position FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 PLANNING DEPARTMENT Community Development Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Planner 1.00 1.00 1.00 1.00 Assistant/Associate Planner 1.00 1.00 1.00 1.00 1.00 Technical Specialist/Office Supervisor 1.00 1.00 Office Assistant 1.00 1.00 1.00 2.00 2.00 Permit Technician 2.00 Office Assistant II 1.00 1.00 Assistant/Associate Engineer 1.00 2.00 2.00 Development Assistant 1.00 1.00 1.00 1.00 Driver/Clerk 0.50 1.00 1.00 Subtotal Planning Department 2.50 3.00 3.00 7.00 9.00 7.00 5.00 5.00 BUILDING DEPARTMENT: Building Official 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Plans Examiner 1.00 1.00 1.00 1.00 Plans Examiner 1.00 1.00 Building Inspector 1.00 2.00 2.00 4.00 5.00 5.00 3.00 2.00 Permit Technician 2.00 3.00 2.00 Subtotal Building Department 2.00 3.00 3.00 5.00 7.00 9.00 9.00 7.00 Parks and Recreation Department: Parks and Recreation Director 1.00 1.00 1.00 1.00 1.00 Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Maintenance Worker 1.00 1.00 Maintenance Worker 2.00 2.00 2.00 3.00 4.00 5.00 6.00 6.00 Maintenance Helper (6 seasonal) 1.47 1.47 1.47 1.47 2.95 2.94 Maintenance Helper (part time) 0.05 0.03 0.03 0.03 .03 .03 .03 .03 Vector Control Supervisor 1.00 1.00 1.00 1.00 Vector Control Assistant Animal Control Officer 1.00 1.00 Animal Control Officer (regular part time) 0.50 0.75 Office Assistant II (1/2 City Manager’s Off) 0.50 Operations and Projects Coordinator 1.00 Vector Control Workers (3 seasonal) .90 .90 Subtotal Parks and Recreation Department 3.50 4.50 4.50 7.50 9.40 11.88 14.97 11.78 PUBLIC WORKS DEPARTMENT: Public Works Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Public Works Director 1.00 1.00 1.00 Public Works Field Superintendent 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Public Works Field Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Technical Specialist 1.00 1.00 Office Assistant II 1.00 1.00 1.00 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 1.00 1.00 1.00 Sr. WWTP Operator 1.00 1.00 1.00 Senior Treatment Plant Operator 1.00 Treatment Plant Operator 1.00 1.00 1.00 2.00 2.50 Senior Public Works Worker 2.00 2.00 Public Works Worker I (II) 1.00 1.00 1.00 7.00 7.00 6.00 5.00 6.00 Water Meter Reader 2.00 2.00 2.00 Utility Worker I (II) 6.00 5.00 5.00 Subtotal Public Works Department 12.00 12.00 12.49 13.00 13.00 15.00 18.00 20.5 TOTAL 34.05 38.45 39.62 51.89 60.90 65.38 71.12 70.93 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 165 Appendix C – FTE by Department and Cost Center G E N E R A L F U N D Special Revenue Funds Enterprise Funds Mayor & Council City Manager City Attorney Finance City Clerk General /Facilities Information Technology Municipal Court Parks Building Department Planning Community Development Animal Control Vector Control Green Valley Landscape Silverland Landscape Autumn Winds Landscape Streets & Storm Drains Water Sewer Alternative Water Total FTE 100-412 100-413 100-414 100-415 100-416 100-417 100-418 100-425 100-575 100-605 100-610 100-525 100-528 251-581 253-583 252-582 240-475 510-810 520-810 530-810 Mayor/Council 6.000 5.350 0.250 0.250 0.150 Office of the City Manager 4.000 2.680 0.500 0.500 0.320 Office of the City Attorney 2.000 0.800 0.400 0.300 0.300 0.200 Finance Department 8.500 1.405 1.000 0.125 2.710 2.710 0.550 City Clerk 5.750 3.100 2.200 0.188 0.188 0.075 Building Department 7.000 7.000 Planning Department 5.000 5.000 Court 0.400 0.400 Parks and Recereation 11.780 2.150 6.420 1.900 1.050 0.070 0.030 0.160 Public Works 20.500 2.900 10.750 5.750 1.100 Total 70.930 5.350 2.680 0.800 1.405 3.100 2.150 1.000 3.000 6.420 7.000 5.000 2.025 1.050 0.070 0.030 0.160 2.900 14.698 9.698 2.395 Total Number of Positions: Descriptions Positions FTE Elected Officials 6 6.00 Contract (Part time) 1 0.40 Full Time Employees 63 62.50 Regular Part Time Employees 3 2.00 Part Time/Seasonal Employees 1 0.03 Total 74 70.93 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 166 Appendix D – Five-Year Capital Improvement Plan ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 167 Fund/Description: FY2009 FY2010 FY2011 FY2012 FY2013 General Fund Office of the City Attorney Machninery 9,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ Subtotal Office of the City Attorney 9,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ Finance: Equipment Replacements 500 $ 500 $ 500 $ 500 $ Subtotal Finance - $ 500 $ 500 $ 500 $ 500 $ Muncipal Court: Equipment Replacements 500 $ 500 $ 500 $ 500 $ Subtotal Municipal Court - $ 500 $ 500 $ 500 $ 500 $ Parks Park Maintenance Machinery 2,000 $ 2,000 $ 2,000 $ 2,000 $ Park Improvements Vehicles Subtotal Parks - $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ Vector Control: Equipment Replacements 2,000 $ 2,000 $ 2,000 $ 2,000 $ Vehicles Subtotal Vector Control - $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ Animal Services: Vehicle and associated equipment 1,000 $ 1,000 $ 1,000 $ 1,000 $ Subtotal Animal Services - $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ Total General Fund 9,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 168 Fund/Description: FY2009 FY2010 FY2011 FY2012 FY2013 Special Revenues Funds: Residential Construction Tax District #1 Projects 200,000 $ 200,000 $ Subtotal RCT District #1 - $ - $ 200,000 $ 200,000 $ - $ Residential Construction Tax District #2 Projects 500,000 $ 200,000 $ Subtotal RCT District #2 500,000 $ - $ - $ 200,000 $ - $ Streets Fund Crack Seal Program 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ Slurry, Seal Coat and Patch Program 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ Comstock Drainage Improvements 10,000 $ Rancho Sierra (Lily Lane, Ambee Way, Raven Way) 357,231 $ West Street/Diane Way Reconstruction (Contruction, Design Complete) Winnie's Lane Improvements 503,917 $ Lyon Drive Phase I Reconstruction 789,277 $ Lyon Drive Phase II Reconstruction 830,992 $ Willow Way, Curry, Cedar Reconstruction 112,043 $ 700,267 $ Willow Way Rehabilitation 40,000 $ 254,416 $ Hardie Lane Phase I Reconstruction 1,048,143 $ Hardie Lane Phase II Reconstruction 144,009 $ Shadow Lane Reconstruction 70,854 $ 340,097 $ Subtotal Streets Fund 667,231 $ 874,771 $ 1,541,417 $ 1,871,259 $ 1,746,568 $ Total Special Revenue Funds 1,167,231 $ 874,771 $ 1,741,417 $ 2,271,259 $ 1,746,568 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 169 Fund/Description: FY2009 FY2010 FY2011 FY2012 FY2013 Capital Project Funds: Capital Fund: Records Management Hardware/Software Hardware/Software upgrades and implementation of Technology Master Plan Equipment Replacements/Technology Improvements 200,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ Basement Improvements-Records Management Subtotal Capital Fund 200,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ Total Capital Project Funds 200,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ Fund/Description: FY2009 FY2010 FY2011 FY2012 FY2013 Enterprise Funds: Water Utility Enterprise Fund 3/4 Ton Pickup 27,000 $ Utility Bed for Pickup 7,000 $ Clamp on Flow Meter 7,000 $ Vehicle/Machinery Replacements 200,000 $ 200,000 $ 200,000 $ 200,000 $ Groundwater/Surface Water Treatment Plant 35,787,000 $ 2,000,000 $ Water Conveyance Infrastructure 22,541,000 $ Blend Tank Yard Piping Separation - Design 10,080 $ Flowmeter Retrofit 30,000 $ Water Tanks Interior Coating (NE, Sage, Ricci) 150,000 $ 150,000 $ 150,000 $ Transmission Main Rehabilitation 250,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ Well 15 Pump Station and Transmission Main 1,601,000 $ Well 10 Pump Station and Transmission Main 1,425,000 $ Surface Water Treatment Plant Expansion 20,000,000 $ Subtotal Water Utility Fund 58,809,080 $ 4,151,000 $ 21,975,000 $ 400,000 $ 400,000 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 170 Fund/Description: FY2009 FY2010 FY2011 FY2012 FY2013 Alternative Water Utility Enterprise Fund Alternative Water Transmission Mains 145,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ Alternative Water Piping-Cottonwood Lane 29,040 $ Alternative Water Piping-Green Valley 29,040 $ Bulk Water Truck Fill Stations (3 site) 38,000 $ Truckee Canal Localized Intake Structure 78,440 $ Subtotal Alternative Water Fund 319,520 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ Fund/Description: FY2009 FY2010 FY2011 FY2012 FY2013 Sewer Utility Enterprise Fund: Skip Loader with Attachments 67,000 $ Sewer Main Rehabilitation 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ Vehicle/Equipment Replacements 250,000 $ 250,000 $ 250,000 $ 250,000 $ Manhole Replacement/Relining Project 200,000 $ Lift Station Pressure Transducers 30,000 $ EWWTP Pond I Relining 400,000 $ West Lift Station Upgrade 620,000 $ 95A Interceptor - Manhole 19 - Front - Manhole 345 5,300,000 $ Highway 50 Lift Station 2,600,000 $ SCADA Upgrade 150,000 $ Donner Trails Lift Station Oversize Agreement 237,308 $ Interceptor Construction Manholes 345-296 3,800,000 $ Interceptor Construction Manholes 19-25 740,000 $ Interceptor Extension Phase I MH 38 Southward 860,000 $ Interceptor Construction Manholes 222-107 340,000 $ Interceptor Extension Phase II MH 38 Southward 1,500,000 $ East Lift Station Upgrade II 2,200,000 $ EWWTP Expansion beyond 3 MGD Phase I 3,700,000 $ EWWTP Expansion up to 11 MGD 26,000,000 $ East Lift Station Upgrade III 580,000 $ - $ Subtotal Sewer Utility Enterprise Fund 4,504,308 $ 5,750,000 $ 5,850,000 $ 8,190,000 $ 27,030,000 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 171 Total Enterprise Funds 63,632,908 $ 10,401,000 $ 28,325,000 $ 9,090,000 $ 27,930,000 $ Total Capital Expenditures 65,009,139 $ 11,383,771 $ 30,174,417 $ 11,469,259 $ 29,784,568 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 172 Appendix E – 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. 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. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 173 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. 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 174 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. 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 175 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. 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 176 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 – Land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single period. . 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. Cash Basis – A basis of accounting under which transactions are recognized only when cash is received or disbursed. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 177 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. 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 178 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. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 179 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. Entitlement – The amount of payment to which a state or local government is entitled pursuant to an allocation formula contained in applicable statutes. 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, ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 180 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. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 181 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 Fund – The fund used to account for all financial resources, except those required to be accounted for in another fund. 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. 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. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 182 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. 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 183 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. 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. 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 184 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. 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. 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. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 185 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, 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 186 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’ 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 187 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 enterprise issuing the insurance contract remains liable to the insured for payment of policy benefits. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 188 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. 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. 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. 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 and unusual or innovative applications of accounting principles, including those peculiar to government. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 189 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. Trust and Agency Fund – One of seven fund types in governmental accounting. See Trust Funds and Agency Funds. 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. 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. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 190 Appendix F – 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2008-2009 191 Planning Commission Bill Amerman Bill Clegg Garret Burleson Bruce Maxwell Bert McCoy Jim Petersen Robert Smith Capital Improvements Advisory Committee Bill Clegg Bert McCoy Tica Looper Ray Lacy Ray Lowery Bob Smith Michael Vegas Audit Committee Bill Clegg Elayne Logue Jeff McGowan Arts and Culture Committee Regina K. Brush Stephanie Chin Mary Beth Henson Ann Maybury Arlie McCoy David McLain Claudia J. Respess Board of Appeals Trevor Card James Hoover Donald L. Howard Ray Lowery Steven G. Moon Brook Renslow