Document Fernley_doc_b17d096bca

                                   ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 City Council Mayor Todd Cutler Council Member Ward 1 Charles Shepperd Council Member Ward 2 Joe Mortensen Council Member Ward 3 Monte Martin Council Member Ward 4 Curt Chaffin Council Member Ward 5 Ralph Menke The Fernley City Council meets in regular session the first and third Wednesday of the month in the Council Chambers in City Hall located at 595 Silver Lace Boulevard, Fernley Nevada. Planning Commission Bill Amerman Bill Clegg Marty Hardie Bruce Maxwell Bert McCoy Jim Petersen Robert Smith The City of Fernley Planning Commission meets in regular session the second Wednesday of the month in the Council Chambers in City Hall located at 595 Silver Lace Boulevard, Fernley Nevada. Staff Gary Bacock, City Manager Bonnie Duke Patricia Norman Lowell Patton Keith Penner Robert “Terry” Gilbert Finance Director (City Treasurer) City Clerk Public Works Director Parks and Recreation Director Community Development Director Paul Taggart, Law Offices of King and Taggart , City Attorney Daniel Bauer, Municipal Court Judge Allen Veil, Chief of Police ---PAGE BREAK--- City of Fernley Annual Budget - Fiscal Year 2007-2008 Table of Contents BUDGET 1 9 DESCRIPTION OF THE BUDGET DOCUMENT 9 COMMUNITY PROFILE 9 LONG-TERM NON-FINANCIAL GOALS AND OBJECTIVES 11 BUDGET PROCESS AND CALENDAR OF 12 FUND STRUCTURE AND BUDGET 15 DEBT MANAGEMENT 16 CAPITAL IMPROVEMENT PLAN 17 PERFORMANCE 18 FINANCIAL AND PROGRAM 19 CITY OF FERNLEY ORGANIZATIONAL 22 OVERVIEW 23 BUDGET SUMMARY-ALL FUNDS 23 REVENUE SOURCES 34 TAX RATE HISTORY 47 ASSESSED VALUE 48 POPULATION 49 CAPITAL EXPENDITURE SUMMARY 50 GENERAL 51 GENERAL FUND SUMMARY 52 PROGRAM DESCRIPTIONS 58 Administration 59 Mayor and City 60 Office of the City 64 Office of the City Attorney 67 Office of the City Treasurer/Finance Department 70 Office of the City Clerk 75 Facilities and General Expenditures 81 Municipal 82 86 Community 90 Animal Control 95 Vector Control 98 Debt 101 Contingency 102 SPECIAL REVENUE FUNDS 103 ADMINISTRATIVE ASSESSMENT 105 COURT FACILITY FEES 106 107 RESIDENTIAL CONSTRUCTION TAX DISTRICT 108 RESIDENTIAL CONSTRUCTION TAX DISTRICT 110 STREETS AND STORM DRAINS 112 PRIVATE SECTOR COMMUNITY SUPPORT 120 GREEN VALLEY LANDSCAPE MAINTENANCE DISTRICT 121 AUTUMN WINDS LANDSCAPE MAINTENANCE DISTRICT 122 SILVERLAND LANDSCAPE MAINTENANCE DISTRICT 123 FRIENDLY FIVE LANDSCAPE MAINTENANCE DISTRICT 124 B C RANCH LANDSCAPE MAINTENANCE 125 SARIO RANCH LANDSCAPE MAINTENANCE DISTRICT 126 JACKSON RANCH LANDSCAPE MAINTENANCE 127 ---PAGE BREAK--- City of Fernley Annual Budget - Fiscal Year 2007-2008 Table of Contents CAPITAL PROJECT FUNDS 129 CAPITAL FUND 130 ENTERPRISE FUNDS 131 WATER UTILITY FUND 132 SEWER UTILITY FUND 141 ALTERNATIVE WATER UTILITY 148 APPENDICES 153 APPENDIX A – SALARY 154 APPENDIX B – AUTHORIZED 156 APPENDIX C – ALLOCATION PERCENTAGES FOR 158 APPENDIX D – FIVE-YEAR CAPITAL IMPROVEMENT 159 APPENDIX E – GLOSSARY OF KEY 165 APPENDIX F – 183 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 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, 2006. 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 2007-2008 The New Fernley City Hall ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 1  
Administration, Human Resources, Budgeting, Risk Management, & Contracts October 15, 2007 Honorable Mayor and City Council City of Fernley I respectfully submit the final budget for the City of Fernley for fiscal year 2007/2008 (FY 07/08). In the past fiscal years, due to our growth rate (fastest growing City in Nevada for several years), the challenges have been many and there are more challenges ahead. Teamwork, perseverance, and cooperation will enable the City to meet the challenges ahead and meet the objectives discussed in various City Council meetings. This budget reflects a positive outlook for next fiscal year, however, there are four major challenges reflected below, which include property tax changes & consequences (due to State Legislative action), the threat of changes to Franchise Fee requirements (due to a State Senator’s threats), the removal of the old “Road Fund” revenue (due to Lyon County action), and infrastructure improvements needed to provide necessary services. I believe the FY 07/08 budget meets the following City Council objectives: Property Tax Rate - The FY 07/08 property tax rate in the budget is $0.3505 per $100 of assessed value, the maximum allowed under state statutes. Major tax limitation legislation (AB489) passed in the State Legislature limits a taxpayer’s liability for property taxes, virtually independent of the levy rate. Therefore, the City’s revenue from property tax is limited. If property tax limitation did not exist, the City could generate approximately $1.3 million in additional revenue to provide services. The abatement of $1.3 million is larger than the projected revenue from property tax of $1.1 million. The property tax limitation legislation is very significant to the City. The property tax levy set by the City Council (and previously by the Town Council) did not increase over a twelve fiscal year period from FY1995 to FY2006. Operations increased significantly due to growth and operations were funded through development of other revenue sources and growth in property tax revenue (due solely to growth in assessed value). The intent of the City Council has always been to increase the property tax rate only when needed for new services that were not provided (or were provided by other entities) in the past. For example, the City added animal control services and vector control services in prior years without a new source of revenue or increase in the property tax rate. By the State action the City is now effectively unable to produce significant revenue from property tax for new services, despite large increases in ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 2 assessed value and increased demands for services. Therefore, there is a clear incentive to levy the maximum rate allowed. The City levied the maximum amount allowed by State law in FY2007 and FY2008. Assessed values increased 33%, largely due to new construction. Revenue from property tax increased 21%. This should be sufficient for providing the current level of services; however, the demand for services has outpaced growth in property tax revenue. Therefore, the City intends to develop other revenue sources in order to provide the service to the community at the appropriate levels based on revenue limitations. Franchise Fees: A significant portion of the general fund revenues are derived from either franchise fees or business license fees charged to public utilities operating within the City. The fees are 2% for electricity and telecommunications, 3% for natural gas and propane, and 5% for cable TV and refuse disposal. Although attempts to limit franchise fees were unsuccessful in the last legislative session, there is a movement to limit revenue from these sources. The City Council agreed to increase fees during FY2008. The final budget includes no rate increases because the increases were not enacted at the time the budget was set. Once these increases are implemented, additional revenue will be available to replace some of the revenue lost to property tax limitation. County Pass-Through Road Fund: Prior to incorporation, Lyon County provided maintenance of City streets using revenues from gas taxes and property taxes (the property tax rate was $0.0777). At incorporation, the City became responsible for maintaining the City streets and therefore received the distribution of gas taxes and property tax from Lyon County. In Lyon County’s adopted budget for FY06/07 and each fiscal year thereafter, Lyon County stopped the property tax revenue that was previously allocated to the City. The current estimated revenue for this tax ($0.0777) is approximately $500,000. The City is currently examining its alternative to restore the fiscal equity, including petitions for re-allocation of consolidated tax and legal remedies for the act that resulted in the fiscal inequity. Adequate Facilities and Infrastructure: With the growth in Fernley, the City is working diligently to provide both adequate facilities for effective and efficient provision of City services and adequate infrastructure for appropriate development in the City. A project to expand City Hall was substantially completed during FY2007. Water and sewer rates, including rates charged to developers, increased significantly effective July 1, 2007, primarily to fund a new treatment plant but also to provide sufficient revenues for operations and capital improvements. Numerous public works projects for water, sewer, streets, and storm drains are either slated for construction in FY2008 or are in the planning stages for implementation according to the capital improvement plans. Acquisition and development of properties for parks are also ongoing. Funding for park acquisition and development of parks is primarily provided from a Residential Construction Tax implemented in FY2003. Future operation and maintenance costs will be provided through user and developer fees for water and sewer projects, through gas taxes for street and storm drain projects and through general fund revenues for parks projects. In addition, the City established certain “Landscape Maintenance Districts” to provide funds for park maintenance through assessments to property owners. Summary of Personnel Changes: The growth in Fernley increases the demand for city services. The City is using proper planning, management, and technology to provide services effectively with minimal increases in authorized positions. However, the ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 3 tremendous growth has resulted in the need to increase staffing to maintain existing levels of service. Several changes were made during FY2007 to reorganize City operations. These included a plan to transition from contracted City Attorney and Prosecutor service to an Office of the City Attorney staffed by City employees, moving Animal Control from the Administrative Services Department to the Parks and Recreation Department, and moving Municipal Court administrative functions from the Administrative Services Department to the Office of the City Clerk. The Administrative Services Department was changed to the Finance Department (Office of the City Treasurer) with an added position to address information technology needs. The following analysis shows the changes from the originally adopted FY07 budget to the FY08 budget, including interim changes made during FY07. The FY08 contains new positions, eliminates certain positions and provides additional hours for existing positions all of which results in a net additional 4.75 Full Time Equivalents (FTE). The new positions are: • City Attorney (1 FTE) • Legal Secretary (1 FTE) • Information Technology Specialist (1 FTE) • Office Assistant II in the City Manager’s Office (0.5 FTE) • Senior Maintenance Worker (1 FTE) • Two Senior Public Works Workers (2 FTE) • Court Clerk (1 FTE) The eliminated positions are: • Accounting Technician (0.50 FTE) • Assistant/Associate Engineer (2 FTE) Previously authorized positions that were not filled or funded • Seasonal Vector Control Workers (0.90 FTE) Additional hours for existing positions are: • Increase Office Assistant II (Recording Secretary) in the Clerk’s office from half time to full time, an increase of (0.50 FTE) • Increase Office Assistant II in the Clerk’s office from 0.60 FTE to 0.75 FTE, an increase of (0.15 FTE) 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. Records Management: The City retained a consultant to perform an analysis of the records management function in the City. The results of the analysis will be considered in future budgets, subject to availability of revenue, to fund records management operations. Maintain minimum fund balances to protect the City’s financial integrity: The projected ending fund balance for the General Fund at June 30, 2007 is approximately ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 4 $653,000. Of this amount approximately $300,000 is designated for future improvements (money was collected from developers in lieu of construction a portion of the improvements) leaving a fund balance of $353,000 for future operations. This available ending fund balance is approximately 9% of total annual expenditures or more than one month of expenditures to provide sufficient cash for unexpected shortfalls in revenues or demands upon city resources. In addition to the General Fund balance, the projected ending fund balance for the Capital Fund is approximately $1,546,479, ending fund balance for the Residential Construction Tax Districts is $541,962 and the ending fund balance for the Grant Fund is approximately $542,962. These fund balances are sufficient to protect the City’s financial integrity. Total ending fund balance for all governmental fund types (excluding enterprise funds) is $3,449,025. Establish utility fees that meet the Utility funds operating, debt service, and depreciation expenses: The City of Fernley strives to set utility rates to fully recover the costs of providing the services. The City recently completed a water facilities plan and a sewer facilities plan. The City also created a capital improvement committee to examine public improvement needs over the next several years and to recommend both improvements and possible funding sources for improvements. The results of these plans were incorporated into a comprehensive rate study for utility operations, capital replacements, debt service and capital improvements related to growth. The results of the rate study allowed the City to established appropriate rates for both customers and developers. The Rate Schedule was approved, effective July 1, 2007. The revenue estimates in the budget are based on old rates, since the budget was completed prior to implementation of the new rates. The FY2008 budget will be amended to reflect the additional revenues from the rate increase. The City also plans to issue bonds over the next five years as indicated in the rate study to fund operations and planned capital improvements over the five year study period. THE BUDGET IN BRIEF: Revenues and “Other Financing Sources” for all funds are estimated at $16 million in the FY07/08 budget. The City has significant cash balances (including proceeds from previous bond issues) that will be used for expenditures in FY2008, primarily for infrastructure improvements such as the new water treatment plant. Cash balances plus revenues and other financing resources total approximately $84 million. Expenditures and other uses total $74 million in the FY07/08 budget, primarily for capital expenditures associated with construction of a new water treatment facility. The budget does not reflect the recent rate increase for water and sewer enterprise funds because the rate increase had not been enacted at the time the budget was finalized. After the budget is adjusted for rate increases, operating 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. MAJOR POLICY ISSUES/PROJECTS: There are many issues that affected the development of this budget. These issues represent challenges and opportunities that will impact how Fernley develops over the next several years. WATER AND SEWER INFRASTRUCTURE: The City completed its comprehensive plan and facility plans and implemented water and sewer rate increases in order to ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 5 provide infrastructure for both current customers and future customers. The rates were established to provide a structure in which “growth pays for growth” and existing customers pay their fair share for operations, replacements, debt service and required facilities. The new Federal regulations for water quality standards require the construction of a new water treatment facility. In the past, the City has been able to delivery water, within previous water quality standards, with only disinfection treatment. The new stringent standards, primarily related to removal of arsenic, require significantly more treatment of groundwater prior to delivery to the customer. Also, the City will need to begin to use its surface water rights, in addition to groundwater rights, to provide water to the growing customer base. The water treatment facility is designed to treat both surface and groundwater to maximize efficiency in treating water with different influent qualities. The $50 million bond issue was completed to provide the funding to construct the new treatment facility. Construction is schedule to begin in the fall of 2007. The City also is developing a system to deliver water that does not meet the new drinking water standards (non-potable water) to be used strictly for landscape irrigation and construction uses. The concept is to provide non-potable water at a lower cost to the customer through a separate delivery system and meter. This should reduce the overall cost to the customer and conserve the more costly treated water. This system is generally referred to as the “purple pipe” system or alternative water systems. An enterprise fund was established to provide a separate accounting for alternative water delivery systems, including alternative systems for construction water. The City intends to start the system in the last quarter of FY2008. The five-year Capital Improvement Plan for water and sewer projects was an integral part of the water and sewer rate analysis and implementation. Several additional water and sewer projects were identified that are planned for construction over the next five years. There is a further discussion of water and sewer projects in the enterprise fund section of this report. Residential construction activity declined in the past 18 months but commercial construction activity increased. The City intends to adjust the five-year capital improvement schedule, as needed to respond to increases and decreases in development activity. The City also intends to authorize bonds needed for the five-year period covered by the Capital Improvement Plan and to periodically issue bonds for projects. Although the City will continue to face challenges in providing water and sewer infrastructure, the City has made great strides in facing these challenges and implementing plans to solve the challenges. CREATION OF NEW REVENUE SOURCES: The City is proactively examining alternatives to generate revenue to replace revenue lost through property tax limitation, minimal revenue from consolidated tax, and lost property tax revenue in the Streets and Storm Drains fund. The City Council approved a plan to increase franchise/business license fees for public utilities as the first step in replacing these revenues. The City is involved in monitoring the legislative process for either some relief from property tax limitation or from proposed legislation that would further limit property tax revenue. The City is studying the possibility of creating an enterprise fund for storm drain systems. The City is also considering a voter approved “override” tax rate if plans to construct and ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 6 operate a City Community Center move forward. The City formed a Capital Improvement Committee to begin the process of impact fees for streets. The City also intends to become more proactive in obtaining special appropriations or grants for certain projects. There are still challenges ahead to provide a steady revenue stream so that City can provide services. The process for prioritizing services was very challenging due to limited revenues. Public safety, human resources, risk management, street maintenance, parks, and government relations were just some of the areas discussed in the budget that may require more funding in the future. New revenue sources are needed before expansion of services in these areas can be considered. Although there are challenges in accomplishing this goal, the City has completed much of the groundwork needed to obtain the revenue. The City intends to diligently pursue this goal FY2008. WATER DELIVERY & WATER RIGHTS PRESERVATION: There are ordinances and procedures in place that have some water rights protection value, however this area has been under attack for many years and recently has been in the spotlight. The recent adoption of the alternative water service provides a mechanism to protect our water resources and the challenge is the full implementation of a practical delivery system. Staff will continue to pursue various methods to retain water rights in the Fernley Basin and to implement more efficient ways of utilizing water. STREET ISSUES: The City inherited streets after the City’s incorporation (7/1/01) and therefore there are many issues to address relating to bringing some streets up to standard, including the concern about the existing non-maintained graveled roads. The establishment of the Streets Fund will help with identifying funds and carefully prioritizing the street improvements by addressing the most deficient streets sooner rather than later. The City prepared a comprehensive Streets Capital Improvement Plan, including a long term financing plan, in FY07 to address this issue. The City also established a Capital Improvement Plan advisory committee to address issue related to potentially implementing impact fees for streets. The City intends to continue to pursue a long term plan and impact fees for new development. LEADERSHIP AND MANAGEMENT PROCESSES: The City of Fernley is at a critical stage in developing a stable structure for the success of the City government and improvement of the Fernley community long term. Strategic planning, organizational definitions, and community leadership will be critical elements in the success or failure of the City government over the next five years. LONG-TERM FINANCIAL POLICIES: This budget has been prepared within the context of a long-term financial plan. The plan’s goal is to identify resources in the General Fund that can be used to fund future capital projects without compromising funding for operations. RESIDENTIAL AND COMMERICIAL DEVELOPMENT: Residential and commercial development in Fernley is important to the community and important to the City government. Quality development should lead to quality services to the growing community. The City must begin to address long term strategic plans for construction and maintenance of infrastructure. Since the legislature and the Governor approved the relocation of the Washoe County line to the north, several square miles of residential ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 7 and commercial development will create many challenges to overcome and benefits for the City. The City will continue to evaluate all projects with the intent of requiring development to mitigate all impacts of their project, including bringing appropriate water rights or water delivery to their project. 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 and FY06/07 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. 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/Administrative Services Director for her efforts to complete this entire document. I look forward to working with the Mayor, City Council, Department Heads, and the community to achieve our goals. Respectfully submitted, Gary A. Bacock, City Manager ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 8 Fernley City Hall Groundbreaking Ceremony From left: Steve Brigman, Shaw Engineering, Project Manager; Jim Magrogan, United Construction Company, contractor; Torben Schroder, United Construction Company, contractor; David Stix, Jr., Mayor; Brad Van Woert, Sheehan Van Woert Bigotti Architects; Monte Martin, Councilmember; Ralph Menke, Councilmember; Rick Jones, Councilmember; Curt Chaffin, Councilmember; Joe Mortensen, Council member. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 9   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 2007-2008 10 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 are schedule to open stores in the first half of FY2008. Other service businesses and retail businesses are developing in Fernley. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 11 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 2007-2008 12 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 2007-2008 13 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 2007-2008 budget year: Jan. 10, 2007 Wednesday City Manager review and approval of budget instruction manual Jan. 10, 2007 Wednesday Distribution of Budget Request Instruction Manual to Department Heads Feb. 7, 2007 Wednesday Regular City Council Meeting to discuss required 2-20-07 notification to Department of Taxation of proposed tax rate changes. Feb. 14, 2007 Wednesday Last Day for Quarterly Economic Survey 2nd Quarter FY07 Feb. 15, 2007 Thursday Dept of Taxation provides Preliminary Revenue Projections Package Feb. 20, 2007 Tuesday Last day for City to notify Department of Taxation about proposed tax rate changes. Feb. 20, 2007 Tuesday Deadline for Submission of Budget Requests to City Manager and Finance Director. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 14 Feb. 21 – 28, 2007 Wed. – Wed. City Manager and Finance Director read all submissions and prepare outline for a recommended budget and prepare for meetings with departments. Mar. 1 – Mar 9, 2007 Thurs. – Fri. City Manager and Finance Director meet with departments to review and make determinations for inclusion in the recommended budget Mar. 1, 2007 Thursday Governor certifies population for distribution of Cigarette, Liquor, Basic City/County Relief Tax and Gasoline Tax. (NRS 370.260; 369.173; 377.055(3); and 360.285) Mar. 1, 2007 Thursday Assessor files tax roll with the State Board of Equalization and the Segregation of Property report with the Department of Taxation Mar. 15, 2007 Tuesday Dept of Taxation provides final Revenue Projections Package, specifically for motor vehicle fuel tax and consolidated tax Mar. 21, 2007 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 2, 2007 Monday Issuance of final recommended budget and recommended Five- Year Capital Improvement Plan to Mayor, City Council, departments and other interest parties for preparation for the budget workshops Apr. 9 - 13, 2007 Mon - Fri 1st Session of Workshops (Date and Time to be determined) Apr. 16, 2007 Monday Tentative Budget Submitted to Dept of Taxation (NRS354.596) Apr. 18, 2007 Wednesday Regular City Council Meeting. (Possible further budget workshops) Apr. 25 - 27, 2007 Mon. – Fri. 2nd Session Workshops (Date and Time to be determined) May 7 – May 11, 2007 Mon. – Fri. Other workshops, as needed. (Sessions 3, 4, etc.) May 2 & 9, 2007 Wednesday Notice of public hearing published for tentative City budget (NRS 354.596) May 15, 2007 Tuesday Public Hearing-Tentative City Budget (3rd Tuesday in May NRS 354.596) Final Budget, as amended, adopted by the City Council. Council members authorized to sign final document. May 31, 2007 Thursday Final Budget Filed with Dept. of Taxation (NRS 354.598) July 31, 2007 Friday Indebtedness Report, Capital Improvement Plan and Debt Management Policy due to Department of Taxation ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 15 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 2007-2008 16 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 is currently in the process of obtaining authorization for an additional $50,000,000 of general obligation revenue supported debt which it anticipates issuing over the next two years. This additional debt will be used to provide infrastructure for the City’s water and sewer systems. The City presently has approximately $103,266,904 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 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 17 The City of Fernley is limited in the debt that may be incurred as follows: FY2008 Assessed Valuation $681,831,281 30% of Assessed Valuation (NRS 266.600(4)) $204,549,384 Outstanding General Obligation Debt $51,282,780 Proposed General Obligation Debt $50,000,000 Legal Debt Margin $103,233,904 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 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. 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 funds for debt repayment for either general obligation debt that may be repaid from property taxes or revenue obligations that may be repaid from other sources such as use fees. Capital Improvement Plan The City of Fernley prepares as 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 18 The City recently organized a Capital Improvements 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 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 approved a plan to increase 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 19 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 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 20 $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 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 21 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 FY2007/2008 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 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 2007-2008 22 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 Community Dev. Dept Public Works Dept Office of the City Manager Elections Business License Records Accounting &Budgeting Utility Billing Investments Financial Reporting Building Insp./Permits Planning Code Enforcement Economic Development Plan Review Water Utility Sewer Utility Engineering / GIS Administration Risk Management Human Resources Police (Lyon Co.) Contracts Parks/ Rec Dept Park Development Park Mainteance Minutes/Agendas Municipal Court Administration Vector Control Animal Control Streets and Storm Drains Quality Assuance Alternative Water ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 23 Budget Summary-All Funds A six fiscal year 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 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 six fiscal year 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 Capital Expend. Contingency/Transfer Debt Service Service/Supply Benefits/Taxes Salaries/Wages ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 24 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 six fiscal year 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 Sources Uses City Hall Bond Issue $ Water/Sewer Projects Bond Issue $50M Construction of Projects using Bond Issue Proceeds City Hall Const. A six fiscal year history of total citywide cash balances is shown in the following graph. Cash $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 FY01-02 FY02-03 FY03-04 FY04-05 FY05-06 FY06-07 FY07-08 Cash City Hall Expansion Bond $5M Water/Sewer $50M ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 25 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 2007-2008 26 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 2007-2008 27 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 2007-2008 28 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 2007-2008 29 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 2007-2008 30 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 1,130,000 550,000 1,680,000 Licenses and Permits 2,351,400 31,000 2,382,400 Intergovernmental Resources 272,336 1,246,264 1,518,600 Charges for Services 0 4,453,500 4,453,500 Fines and Forfeits 153,000 36,000 189,000 Miscellaneous 155,000 39,600 250,000 2,234,000 2,678,600 Other Financing Sources 0 0 0 2,958,000 2,958,000 Total Revenue & Other Financing Sources 4,061,736 1,902,864 250,000 9,645,500 15,860,100 Beginning Fund (Cash) Balance 575,149 1,895,968 2,667,479 63,231,545 68,370,141 Total Available Resources 4,636,885 3,798,832 2,917,479 72,877,045 84,230,241 Funding Uses General Government 1,073,400 1,073,400 Judicial 243,100 20,000 263,100 Public Works 0 1,799,479 64,416,020 66,215,499 Community Development 1,124,680 1,391,000 2,515,680 Culture and Recreation 731,900 700,000 1,431,900 Health 391,910 391,910 Debt Service 378,702 2,400,436 2,779,138 Other Uses & Transfers 40,000 10,000 50,000 Total Expenditures and Other Uses 3,983,692 2,529,479 1,391,000 66,816,456 74,720,627 Ending Fund (Cash) Balance 653,193 1,269,353 1,526,479 6,060,589 9,509,614 Total Fund Commitments and Fund (Cash) Balances 4,636,885 3,798,832 2,917,479 72,877,045 84,230,241 General Fund Special Revenue Funds Capital Projects Enterprise Funds Total Salaries and Wages 1,691,900 149,900 1,114,700 2,956,500 Payroll Taxes and Benefits 864,200 77,800 574,000 1,516,000 Service and Supplies 1,008,890 435,500 2,602,360 4,046,750 Capital Expenditures 0 1,856,279 1,391,000 60,124,960 63,372,239 Debt Service 378,702 2,400,436 2,779,138 Contingency & Transfer 40,000 10,000 50,000 Total Uses by Object 3,983,692 2,529,479 1,391,000 66,816,456 74,720,627 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 31 The FY 2007/2008 Citywide projected sources of cash are shown in the following chart: FY2007/2008 Sources-All Funds Micellaneous, $2,678,600 , 3% Beginning Fund Balance, $68,370,141 , 81% Other Financing Sources, $2,958,00 4% Licenses and Permits, $2,382,400 , 3% Taxes, $1,680,000 , 2% Fines and Forfeits, $189,000 , 0% Intergovernmental Resources, $1,518,600 , 2% Charges for Services, $4,453,500 , 5% The FY2007/2008 Citywide projected revenues (without Beginning Fund Balance and Other Financing Sources) are shown in the following chart: FY2007/2008 Revenues-All Funds Micellaneous, $2,678,600 , 17% Other Sources, $2,958,000 , 19% Licenses and Permits, $2,382,400 , 15% Taxes, $1,680,000 , 11% Fines and Forfeits, $189,000 , 1% Intergovernmental Resources, $1,518,600 , 10% Charges for Services, $4,453,500 , 27% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 32 The FY2007/2008 Citywide projected uses of cash, detailed by function, are shown in the following chart: FY 2007/2008 Citywide Uses by Type Other Uses, $50,000, 0% Culture and Recreation, $1,431,900, 2% Debt Service, $2,779,138, 3% Health, $391,910, 0% Community Development, $2,515,680, 3% Ending Fund Balance, $9,509,614, 11% Public Works, $66,215,499, 80% General Government, $1,073,400, 1% Judicial, $263,100, 0% The FY2007/2008 Citywide projected expenditures (without Ending Fund Balance, Contingencies and Transfers) by function are shown in the following chart: FY 2007/2008 Citywide Expenditures by Type Culture and Recreation, $1,431,900, 2% Debt Service, $2,779,138, 4% Health, $391,910, 1% Community Development, $2,515,680, 3% Other Uses, $50, 0% Public Works, $66,215,499, 89% General Government, $1,073,400, 1% Judicial, $263,100, 0% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 33 The FY2007/2008 Citywide projected uses of cash, detailed by object, are shown in the following chart: Projected FY2007/2008 Citywide Uses by Object Ending Fund Balance, $9,509,614 , 11% Debt Service, $2,779,138 , 3% Contingency & Transfer, $50,000 , 0% Capital Expenditures, $63,372,239 , 75% Salaries and Wages, $2,956,500 , 4% Payroll Tax and Benefits, $1,516,000 , 2% Service and Supplies, $4,046,750 , 5% The FY2007/2008 Citywide projected expenditures (without Ending Fund Balance, Contingencies and Transfers) by object are shown in the following chart: Projected FY2007/2008 Expenditures by Object Debt Service, $2,779,138 , 4% Capital Expenditures, $63,372,239 , 85% Salaries and Wages, $2,956,500 , 4% Payroll Tax and Benefits, $1,516,000 , 2% Service and Supplies, $4,046,750 , 5% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 34 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 FY2007/2008 is $0.3505 per $100 of assessed value. The FY2007/2008 budget assumes a levy of the full $0.3505 per $100 of assessed value. This represents revenue of approximately $1,130,000. In past years, the City did not levy the full tax available. 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 2007-2008 35 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 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 2007-2008 36 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 2007-2008 37 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 five-year 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 Business License Revenue The revenue estimate for FY2007/2008 was based on this trend analysis and other information such as population that indicate that prior growth rates should be indicative of growth during FY2007/2008. 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. A six-year history for revenue from franchise fees as well as a projection of franchise fees for FY2007-2008 is shown in the following table: $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 Public Utility License/Franchise Revenue The revenue estimate for FY2007/2008 was based on this trend analysis and other information such as population that indicate that prior growth rates should be indicative of growth during FY2007/2008. A more specific breakdown of the revenue from public utilities is shown in the following chart: ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 38 Public Utility Type of Business Rate FY2004 Revenue FY2005 Revenue FY2006 Revenue FY2007 Revenue FY2008 Estimate Sierra Pacific Power (Bus Lic) Electricity 2% $163,663 $184,914 $215,600 $225,000 $247,500 Southwest Gas (Bus Lic) Natural Gas 3% 159,794 264,917 278,000 290,000 319,000 Wasatch Energy (Bus Lic) Natural Gas 3% 95,500 99,402 109,000 114,000 125,400 SBC Communications (Bus Lic) Telephone 2% 37,359 41,379 44,100 46,000 50,600 AT&T (Bus. Lic) Comm. 2% 3,123 2,824 2,250 2,000 2,200 Charter Communications (Franchise) Cable TV 5% 48,943 52,665 54,000 55,100 60,610 Reno Disposal (Franchise) Refuse Disposal 5% 112,000 116,112 129,000 135,450 148,995 Other Various 12,614 1,971 4,050 TOTAL $632,996 $765,184 $863,449 $850,000 $935,000 The City started the process to increase the fees 1% for public utilities in FY2008, with the exception of cable TV which is already at the maximum of The budget estimates do not include the proposed increase. The budget will be amended during FY2008 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 $1 million from building permit fees during FY2007/2008. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 Building Permits 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 FY2007/2008. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 39 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 $25,000 during FY2007/2008 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 2007-2008 40 The amounts 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: FY2007/2008 FY2006/2007 FY2005/2006 FY2004/2005 FY2003/2004 Basic City-County Relief Tax $2,378,456 $2,624,296 $ 1,933,873 $ 1,988,103 $ 1,643,052 Supplemental City County Relief Tax 12,248,840 11,177,596 9,905,704 8,880,060 8,382,948 Cigarette Tax 331,007 306,412 307,617 285,453 271,057 Liquor Tax 68,904 57,625 56,680 50,616 49,484 Real Property Transfer Tax (RPTT) 786,920 1,919,248 1,954,374 1,101,306 746,134 Government Services Tax (GST) 3,157,819 3,229,631 2,585,200 2,540,371 2,143,670 TOTAL $18,971,517 $19,314,808 $16,743,449 $14,845,909 $13,236,645 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 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 FY2007/2008 indicate that approximately $6.5 million will actually be collected for in Lyon County but approximately $12.2 million will be distributed as part of consolidated tax for ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 41 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: FY2007/2008 FY2006/2007 FY2005/2006 FY2004/2005 FY2003/2004 Stagecoach GID $ 19,064 $ 19,064 $19,064 $ 19,064 $ 19,064 Willowcreek GID 2,304 2,304 2,304 2,304 2,304 Lyon County 17,041,443 17,413,382 15,082,579 12,230,041 10,933,802 City of Yerington 380,036 355,855 305,038 291,222 291,641 City of Fernley 215,335 215,345 188,504 143,752 123,003 Carson-Truckee Water Conservancy District 11,231 11,175 10,018 8,385 7,725 Central Lyon Fire Protection 582,525 586,021 504,836 430,364 396,315 Mason Valley Fire Protection 70,189 67,744 61,077 57,378 56,592 Mason Valley Mosquito Abatement District 61,514 59,795 53,398 50,172 49,611 North Lyon Fire Protection 175,728 174,031 156,735 129,549 119,795 Silver Springs Stagecoach Hospital 92,317 84,182 75,382 67,681 65,787 Smith Valley Fire Protection 60,231 64,330 53,258 43,485 41,141 South Lyon Hospital District 262,600 261,580 231,256 209,191 205,947 Total 18,971,517 19,314,808 16,743,449 $13,682,588 $12,312,727 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: ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 42 $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 South Lyon Hospital Smith Valley Fire SS/Stagecoach Hosp North Lyon Fire Mason Mosquito Mason Fire Central Lyon Fire Carson-Truckee Fernley Yerington Lyon County Willowcreek GID Stagecoach GID 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. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 43 Motor Vehicle Fuel Taxes (Gas Taxes): The City of Fernley receives an allocation of certain taxes levied on sales of motor fuel. The State of Nevada administers the collection and distribution of proceeds to counties in the State. Lyon County disburses the City’s portion of gas taxes to the City In addition to gas tax directly disbursed to the City, the City is entitled to a portion of gas tax distributed to the Lyon County Regional Transportation Commission, a statutory board established to account for a specific tax on sales of motor fuel. All of these funds are restricted for use in maintenance or capital projects relating to City streets. The various gas taxes with FY2007/2008 estimated amounts allocable to the City of Fernley are shown in the following table. Description Rate per Gallon Note Statute Reference Estimated FY08 Lyon Co. Total Estimated FY08 City Amount County Option (RTC) 9¢ 1 NRS 373.030 $1,614,119 $658,883 County Option 1 1¢ 2 NRS 365.192 $180,266 $62,895 Motor Vehicle Fuel Tax 1.25¢ 3 NRS 365.180 311,639 0 Motor Vehicle Fuel Tax 1.75¢ 4 NRS 365.190 310,959 126,933 Motor Vehicle Fuel Tax 2.35¢ 5 NRS 365.180 585,878 97,105 Subtotal $1,388,742 $286,933 Total N/A $3,002,861 $945,816 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 FY2007/2008 assessed value of Lyon County is $1,665,951,811 and the FY2007/2008 assessed value of the City of Fernley is $679,959,918. The City of Fernley assessed value is 40.82% of the total county assessed value, therefore the City of Fernley could expect $658,883 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 18,850 and the estimated population of Lyon County is 54,031. Therefore, the City of Fernley would receive 34.89% or $62,895 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 40.82% of this tax or $126,933. 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 16.57% of the tax or $97,105 apportioned to the City of Fernley. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 44 The historical estimates for fuel taxes are shown in the following table: Description FY02 City Amount FY03 City Amount FY04 City Amount FY05 City Amount FY06 City Amount FY07 City Amount FY08 City Amount County Option (RTC) 9¢ $521,877 $501,811 $520,230 $527,439 $612,740 $632,945 $658,883 County Option 1¢ $44,382 $44,232 $45,380 $49,550 $58,805 63,177 62,895 Motor Vehicle Fuel Tax 1.25¢ 0 0 0 0 Motor Vehicle Fuel Tax 1.75¢ 101,476 96,199 $100,273 $101,396 $117,818 121,864 126,933 Motor Vehicle Fuel Tax 2.35¢ 59,325 53,790 $57,023 $68,574 $76,985 88,307 97,105 Subtotal $205,183 $194,221 202,676 219,520 $253,608 273,348 $286,933 Total $727,060 $696,032 $722,906 $746,959 $866,348 906,293 $945,816 The following graph shows the data for fuel taxes: $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 FY01/02 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 2.35¢ Gas Tax 1.75¢ Gas Tax County Option 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 45 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 tentative budget for Lyon County increased this shared revenue to $60,000. Fines and Forfeitures: Municipal Court Fines and Forfeitures: Revenue from Court operations is expected to increase approximately 9% based on trends of revenues in prior fiscal years. The revenue estimate is $154,000 for FY 08. 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 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. 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 revenue estimates for FY08 were based on trend analysis as shown in the following chart. The rate increase is not reflected because the rates were not in place at the time the budget was adopted by the City Council: ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 46 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 FY01/02 FY03/04 FY05/06 FY07/08 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. Based on the number of lots remaining in the subdivision, the City anticipates receiving $15,000 in FY05 and $10,000 in FY06 as this subdivision is virtually built out. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 47 Tax Rate History The City’s (or Town’s) Allowed Rate and the rate levied for the past several fiscal years are shown in the following table: Year Fernley Allowed Rate Fernley Levied Rate Excess Rate Not Levied 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 $0.0756 $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 Fiscal Year Rate Levied Rate Rate Not Levied ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 48 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 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 $0 $100 $200 $300 $400 $500 $600 $700 $800 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Fiscal Year Assessed Value (millions) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 49 Population History The following table shows population data as published by the Nevada State Demographer, except for July 1, 2007 estimates which are based on City data: Year Fernley % Change Lyon County % Change July 1, 2007 (est) 20,000 6.10% 56,750 5.03% 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) Fernley Lyon Co. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 50 Capital Expenditure Summary Capital Expenditures for FY2007/2008 are summarized in Appendix D. The largest capital improvement projects slated for FY2008 are water, alternative water, and sewer infrastructure projects. The operation and maintenance costs of these projects were factored into a 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 an interceptor upgrade project estimated at $5.5 million. The main trunk (approximately 8,000 linear feet) of the City’s wastewater collection system, the Fernley Interceptor, is currently underperforming due to reverse grade conditions and undersizing. The project will upgrade the interceptor to correct these conditions. The City designed a adequately-sized interceptor that will allow continued collection as well as expand the City’s capabilities for wastewater collection in the future. 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 2007-2008 51  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 Judicial: Municipal Court Public Works: Public Works (Streets & Storm Drains) Note: Transferred to Special Revenue Fund in FY2003/2004 Culture and Recreation: Parks Community Development: Community Development (Building and Planning) Health: Animal Services Vector Control Services Debt Service: Debt Service-City Hall Construction Bond Other Uses: Contingency Interfund Transfers ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 52 General Fund Summary The following table summarizes the activity of the General Fund: FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Revenues: Taxes 491,820 590,127 934,000 1,130,000 Licenses and Permits 2,765,687 2,231,632 2,008,500 2,351,400 Intergovernmental Resources 203,299 242,754 275,345 272,336 Charges for Services 0 0 0 0 Fines and Forfeits 144,407 192,646 140,500 153,000 Miscellaneous 124,430 289,389 205,278 155,000 Total Revenues 3,729,643 3,546,548 3,563,623 4,061,736 Operating Expenditures: Administration 489,598 574,932 807,450 0 Mayor/City Council 0 0 0 78,450 Office of the City Manager 0 0 0 248,850 Office of the City Attorney 0 0 0 90,150 Finance 105,699 142,423 182,600 216,900 Office of the City Clerk 0 0 0 256,550 Facility and General Expense 0 0 0 182,500 Municipal Court 170,595 163,631 201,550 243,100 Public Works (Streets/Stormdrains) 0 0 0 0 Parks 378,300 508,797 632,020 731,900 Vector Control 40,139 161,150 208,900 225,760 Community Development 669,105 810,965 736,500 1,124,680 Animal Services 56,737 95,588 126,950 166,150 Debt Service 0 94,789 378,400 378,702 Total Operating Expenditures 1,910,173 2,552,275 3,274,370 3,943,692 Excess of Revenues over Operating Expenditures 1,819,470 994,273 289,253 118,044 Capital Expenditures: Administration 0 0 0 0 Mayor/City Council 0 0 0 0 Office of the City Manager 0 0 0 0 Office of the City Attorney 0 0 0 0 Finance 0 0 0 0 Office of the City Clerk 0 0 0 0 Facility and General Expense 0 0 0 0 Municipal Court 0 0 0 0 Animal Services 0 0 25,100 0 Public Works (Streets/Stormdrains) 0 0 0 0 Parks 19,553 28,710 13,000 0 Vector Control 27,215 19,247 39,200 0 Debt Service 0 0 0 0 Community Development 0 26,342 16,800 0 Total Capital Expenditures 46,768 74,299 94,100 0 Total Expenditures 1,956,941 2,626,574 3,368,470 3,943,692 Revenues less Total Expenditures 1,772,702 919,974 195,153 118,044 Other Financing Sources & Uses: Contingency (100-900-900) 0 0 0 50,000 Sale of Capital Assets (100-392-100) Transfer to Streets Fund (100-900-910) 450,000 0 550,000 0 Transfer to Capital Fund (100-900-910) 1,140,000 850,000 0 0 Transfer to Private Sector Community Support 15,000 Transfer to (from) Grants Fund (100-900-910) 100,000 0 0 -10,000 Total Other Financing Uses 1,690,000 850,000 565,000 40,000 Total Expenditures and Other Uses 3,646,941 3,476,574 3,933,470 3,983,692 Net Increase (Decrease) in fund Balance 82,702 69,974 -369,847 78,044 Fund Balance July 1 792,320 875,022 944,996 575,149 Fund Balance June 30 875,022 944,996 575,149 653,193 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 53 The following table summarizes General Fund Expenditures by Object: FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Salaries and Wages 931,695 1,221,480 1,188,100 1,691,900 Payroll Taxes and Benefits 338,936 400,436 554,400 864,200 Service and Supplies 639,542 835,570 1,153,470 1,008,890 Capital Expenditures 46,768 74,299 94,100 0 Debt Service 0 94,789 378,400 378,702 Contingency and Transfers 1,690,000 850,000 565,000 40,000 Total 3,646,941 3,476,574 3,933,470 3,983,692 The following table summarizes General Fund Expenditures by Function FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Administration 489,598 574,932 807,450 0 Mayor/City Council 0 0 0 78,450 Office of the City Manager 0 0 0 248,850 Office of the City Attorney 0 0 0 90,150 Finance 105,699 142,423 182,600 216,900 Office of the City Clerk 0 0 0 256,550 Facility and General Expense 0 0 0 182,500 Municipal Court 170,595 163,631 201,550 243,100 Public Works (Streets/Stormdrains) 0 0 0 0 Parks 397,853 537,507 645,020 731,900 Vector Control 67,354 180,397 248,100 225,760 Community Development 669,105 837,307 753,300 1,124,680 Animal Services 56,737 95,588 152,050 166,150 Debt Service 0 94,789 378,400 378,702 Contingency and Transfers 1,690,000 850,000 565,000 40,000 Total 3,646,941 3,476,574 3,933,470 3,983,692 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 54 The following chart shows FY2007/2008 General Fund Revenues by Type FY2007/2008 General Fund Revenues Licenses and Permits, $2,351,400 , 57% Taxes, $1,130,000 , 28% Fines and Forfeitures, $153,000 , 4% Miscellaneous, $155,000 , 4% Intergovernmental, $272,336 , 7% The following chart shows FY2007/2008 General Fund Expenditures By Object FY2007/2008 General Fund Expenditures By Object Capital Expenditures, , 0% Debt Service, $378,702 , 10% Service & Supply, $1,008,890 , 25% Employee Benefits, $864,200 , 22% Contingency & Transfers, $40,000 , 1% Salaries & Wages, $1,691,900 , 42% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 55 The following chart shows FY2007/2008 General Fund Expenditures By Function FY2007/2008 General Fund Expenditures By Function Community Development, $1,124,680 , 29% Contingency & Transfers, $40,000 , 1% Debt Service, $378,702 , 10% Animal Services, $166,150 , 4% Vector Control, $225,760 , 6% Parks, $731,900 , 18% Municipal Court, $243,100 , 6% Facilities and General Expenditures, $182,500 , 5% Finance Department, $216,900 , 5% Office of the City Attorney, $90,150 , 2% Office of the City Manager, $248,850 , 6% Mayor/Counci, $78,450 , 2% Office of the City Clerk, $256,550 , 6% ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 56 The detail for General Fund Revenues is shown in the following table: Account Description FY04-05 Actual FY05-06 Actual FY06-07 Estimated FY07-08 Budget TAXES: 100-310-100 Property Taxes 487,281 583,851 928,000 1,125,000 100-310-200 Property Taxes - Delinquent 4,539 6,276 6,000 5,000 Total Taxes 491,820 590,127 934,000 1,130,000 LICENSES AND PERMITS: 100-320-100 Business License Fees 96,718 111,075 140,000 154,000 100-320-110 Bus Lic/Franchise Public Utilities 765,184 863,449 850,000 935,000 100-320-120 Realtor License Fees 100-320-150 Liquor License Fees 25,925 24,831 32,000 35,200 100-320-160 Gaming License Fees 71,271 97,121 92,000 101,200 100-320-170 Animal License Fees 1,611 2,348 3,000 3,000 100-320-180 Passport Fees 9,300 11,500 13,000 100-320-200 Building Permits and Fees 1,724,012 1,042,513 815,000 1,010,000 100-320-205 Fire Life Safety Contract 0 0 100-320-210 Planning and Zoning Permits and Fees 80,966 80,995 65,000 100,000 Total Licenses and Permits 2,765,687 2,231,632 2,008,500 2,351,400 INTERGOVERNMENTAL RESOURCES: 100-330-310 CTX (Consolidated Tax) 148,417 187,872 215,345 212,336 100-330-400 Park Agreement 54,882 54,882 60,000 60,000 State Grants Total Intergovernmental Resources 203,299 242,754 275,345 272,336 CHARGES FOR SERVICES: Total Charges for Services 0 0 0 FINES AND FORFEITS: 100-350-100 Municipal Court Revenue 119,863 166,847 120,000 132,000 100-350-110 Town Code Violations (Justice Court) 665 0 0 100-350-200 Warrant Fees 13,414 12,126 11,000 11,000 100-350-205 Misc Fees 7,425 10,713 7,000 7,000 100-350-210 Bond Fees 3,040 2,960 2,500 3,000 Total Fines and Forfeits 144,407 192,646 140,500 153,000 MISCELLANEOUS: 100-360-100 Interest Income 29,547 60,479 65,000 80,000 100-360-200 Building Rental 20,000 20,000 20,000 40,000 100-360-710 Park Development 13,400 8,150 3,500 3,000 100-360-720 Donations-Animal Control 130 0 0 100-360-730 Donations-Waste Removal Project 100-360-735 Donations-Youth City Council 1,250 100-360-810 Downtown Rehab Project 0 0 0 100-360-820 Bike Path Assessment 3,402 28,515 55,500 100-360-821 Hwy 95A Turn Lane @ Cottonwood 6,871 13,724 100-360-822 Hwy 95A Sidewalk Curb Gutter 7,260 23,528 100-360-824 Miller Lane @ Shadow Lane 105,381 100-360-823 Hardie Lane 27,180 100-360-905 School RCT Admin Fee 1,536 1,500 2,000 100-360-900 Miscellaneous 16,640 51,604 35,000 30,000 Total Miscellaneous 124,430 289,389 205,278 155,000 TOTAL REVENUES 3,729,643 3,546,548 3,563,623 4,061,736 Analysis: In FY 2007-2008 the property tax increased 21% on an increase in assessed value of 33%. The difference represents abatement of tax under recent property tax limitation legislation. Property tax limitation legislation limits the growth in this revenue source. 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, ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 57 revenue to the City 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. The largest component of general fund revenues is Building Permits and Fees at approximately 25% to 47% of total general fund revenues each fiscal year. Revenues from Building Permits and Fees increased substantially after the City incorporated, primarily in residential development. 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 FY08, the other major components of General Fund revenues are property taxes, consolidated tax, and a combination of business license and franchise fees, especially from public utilities operating within the City. Increases in 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 2007-2008 58 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 Judicial Municipal Court 425 Public Works Public Works (Streets and Storm Drains) 475 Culture and Recreation Parks 575 Community Development Community Dev. (Building & Planning) 600 Health Animal Services 525 Health Vector Control 528 Debt Service Debt Service 625 Other Uses Contingency 900 The North Lyon County Fire Protection District, a separate legal and accounting entity, provides fire services within the boundaries of the City of Fernley. The Fernley Swimming Pool District, a separate legal and accounting entity, owns and operates the Fernley Swimming Pool. Lyon County provides certain services within the boundaries of the City of Fernley, such as law enforcement, library, senior center, juvenile probation, district court, justice court, welfare (indigent) programs, and operation of a regional youth facility. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 59 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 FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-411-100 Salaries and Wages 198,777 231,650 225,000 100-411-130 Overtime 543 980 1,500 100-411-140 Annual Leave Pay 814 2,490 18,000 100-411-150 Sick Leave Pay 724 2,354 12,000 100-411-160 Holiday Pay 1,642 3,067 10,000 Subtotal Salaries & Wages 202,500 240,541 266,500 0 100-411-200 FICA 1,371 987 100-411-210 Medicare 2,867 3,377 5,050 100-411-220 Unemployment 892 966 2,700 100-411-230 Retirement (PERS) 34,595 42,416 51,050 100-411-240 Group Insurance 27,366 32,500 45,000 100-411-250 Workers Compensation Insurance 4,207 5,112 8,000 100-411-260 Other Benefits 926 787 1,200 Subtotal Employee Benefits 72,224 86,145 113,000 0 Total Salaries & Benefits 274,724 326,686 379,500 0 100-411-300 Professional Services-City Attorney 59,778 50,582 55,200 100-411-310 Professional Services-Legal 16,980 13,360 43,750 100-411-321 Professional Services-GIS 1,500 100-411-322 Professional Services-Other 21,155 20,265 60,000 100-411-342 Tech Services-Other 25 922 2,000 100-411-344 Tech Services-Elections 0 1,775 0 100-411-348 Commission on Ethics Assessment 1,130 2,326 4,000 100-411-410 Utility Service-Water & Sewer 1,467 1,153 3,000 100-411-412 Utility Service-Refuse 1,042 1,420 1,500 100-411-430 Service-Building Maintenance 2,217 3,005 3,000 100-411-431 Service-Janitorial 100-411-441 Rental 1,474 1,745 4,000 100-411-520 Insurance 30,750 46,310 60,000 100-411-530 Communications 3,487 6,384 7,000 100-411-540 Advertising 1,132 2,055 7,000 100-411-550 Printing and Postage 2,721 4,554 15,000 100-411-580 Travel & Training 13,597 13,937 20,000 100-411-581 Dues & Subscriptions-NLCM 11,116 13,811 11,000 100-411-585 Educational Assistance Program 0 0 0 100-411-600 General Supplies 5,545 8,461 30,000 100-411-604 General Supplies-Passports 4,000 100-411-605 Minor Equipment 5,204 3,560 5,000 100-411-612 Bldg Maint-Supplies 1,821 1,347 0 100-411-621 Natural Gas 2,835 3,257 5,000 100-411-622 Electricity 13,711 19,147 25,000 100-411-640 Books and Periodicals 26 0 1,000 100-411-650 Community Support 17,661 28,870 60,000 Total Service & Supplies 214,874 248,246 427,950 0 Total Operating Expenses 489,598 574,932 807,450 0 100-411-730 Improvements Other Than Buildings 100-411-741 Machinery Total Capital 0 0 0 0 Total Operating and Capital 489,598 574,932 807,450 0 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 60 Mayor and City Council Organizational Chart: Mayor/City Council FY2007/2008 Expenditures Salaries and Wages, $54,100 , 69% Payroll Taxes and Benefits, $10,100 , 13% Service and Supplies, $14,250 , 18% 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 Voters of Fernley Charles Shepperd Council Ward 1 Joe Mortensen Council Ward 2 Monte Martin Council Ward 3 Curt Chaffin Council Ward 3 Ralph Menke Council Ward 5 Todd Cutler Mayor ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 61 4. Provide utilities 5. Grant franchises 6. Create and enforce ordinances 7. Control animals and collect associated fees 8. Provide for safeguarding of public health within the City 9. Provide for the abatement, prevention and removal of nuisances 10. License and regulate professions, trades, and businesses 11. Create any office that may be deemed necessary for the good government of the city 12. Provide for filling all vacancies in elective and appointive offices 13. Regulate and prescribe the powers, duties and compensation of all officers of the city, except as otherwise provided by law 14. Require all officers or employees of the city responsible for the handling of city funds to give bond and security for the faithful performance of their duties 15. Require from every officer of the city at any time a report in detail of all transactions in his office, or any matters connected therewith The mayor is considered the Chief Executive Officer of the City (NRS 266.165) and is responsible for the general affairs of the City through performing the following general duties: 1. Give the City Council information relative to the state of the City 2. Recommend to the City Council measures that may be beneficial to the City 3. See that general laws and ordinances of the City are observed and enforced 4. Take proper measures to preserve the public peace 5. Oversee contract administration 6. Perform other duties prescribed by ordinance 7. Preside over the City Council when in session 8. Vote in the case of a tie of the City Council 9. Veto 10. Sign resolutions, ordinances, licenses, warrants, and claims against the City 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 2007-2008 62 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 2007-2008 63 Line Item Budget Mayor/City Council: Account # Descripton FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-412-100 Salaries and Wages 54,100 100-412-130 Overtime 100-412-140 Annual Leave Pay 100-412-150 Sick Leave Pay 100-412-160 Holiday Pay Subtotal Salaries & Wages 0 0 0 54,100 100-412-200 FICA 1,900 100-412-210 Medicare 800 100-412-220 Unemployment 600 100-412-230 Retirement (PERS) 5,100 100-412-240 Group Insurance 0 100-412-250 Workers Compensation Insurance 1,700 100-412-260 Other Benefits Subtotal Employee Benefits 0 0 0 10,100 Total Salaries & Benefits 0 0 0 64,200 100-412-300 Professional Services-City Attorney 100-412-310 Professional Services-Legal 100-412-321 Professional Services-GIS 100-412-322 Professional Services-Other 100-412-342 Tech Services-Other 500 100-412-348 Commission on Ethics Assessment 100-412-441 Rental 1,000 100-412-530 Communications 1,750 100-412-540 Advertising 100-412-550 Printing and Postage 0 100-412-580 Travel & Training 5,000 100-412-581 Dues & Subscriptions-NLCM 100-412-585 Educational Assistance Program 100-412-600 General Supplies 100-412-602 Supplies - Events 5,000 100-412-605 Minor Equipment 1,000 100-412-640 Books and Periodicals 100-412-650 Community Support Total Service & Supplies 0 0 0 14,250 Total Operating Expenses 0 0 0 78,450 100-412-730 Improvements Other Than Buildings 100-412-741 Machinery 100-412-743 Furniture and Fixtures Total Capital 0 0 0 0 Total Operating and Capital 0 0 0 78,450 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 64 Office of the City Manager Organizational Chart: Office of City Manager FY2007/2008 Expenditures Salaries and Wages, $131,100 , 53% Payroll Taxes and Benefits, $58,000 , 23% Service and Supplies, $59,750 , 24% Capital, , 0% 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 Voters of Fernley Mayor and City Council City Manager Various Departments Office of the City Manager Administrative Specialist ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 65 7. Recommend a schedule of pay for each office and position in the City 8. Recommend adoption of policies and procedures 9. Maintain the structure of the organization, subject to City Council approval 10. Attend meetings of the City Council 11. Supervise purchase of items, let contracts under $10,000, bid items over $10,000 12. Investigate the affairs of the City or any department 13. Perform other duties as may be required by the Council 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 half time Office Assistant II was added to the Office of the City Manager during Fy2007/2008. 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 2007-2008 66 Line Item Budget - Office of the City Manager: Account # Descripton FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-413-100 Salaries and Wages 108,000 100-413-130 Overtime 1,500 100-413-140 Annual Leave Pay 8,100 100-413-150 Sick Leave Pay 7,500 100-413-160 Holiday Pay 6,000 Subtotal Salaries & Wages 0 0 0 131,100 100-413-200 FICA 0 100-413-210 Medicare 1,900 100-413-220 Unemployment 1,300 100-413-230 Retirement (PERS) 26,600 100-413-240 Group Insurance 24,200 100-413-250 Workers Compensation Insurance 4,000 100-413-260 Other Benefits Subtotal Employee Benefits 0 0 0 58,000 Total Salaries & Benefits 0 0 0 189,100 100-413-300 Professional Services-City Attorney 100-413-310 Professional Services-Legal 10,000 100-413-321 Professional Services-GIS 100-413-322 Professional Services-Other 25,000 100-413-342 Tech Services-Other 500 100-413-348 Commission on Ethics Assessment 100-413-441 Rental 1,000 100-413-530 Communications 1,750 100-413-540 Advertising 2,000 100-413-550 Printing and Postage 7,500 100-413-580 Travel & Training 5,000 100-413-581 Dues & Subscriptions-NLCM 100-413-585 Educational Assistance Program 500 100-413-600 General Supplies 5,000 100-413-605 Minor Equipment 1,000 100-413-640 Books and Periodicals 500 100-413-650 Community Support Total Service & Supplies 0 0 0 59,750 Total Operating Expenses 0 0 0 248,850 100-413-730 Improvements Other Than Buildings 100-413-741 Machinery 100-413-743 Furniture and Fixtures Total Capital 0 0 0 0 Total Operating and Capital 0 0 0 248,850 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 67 Office of the City Attorney Organizational Chart: Office of City Attorney FY2007/2008 Expenditures Salaries and Wages, $52,300 , 58% Payroll Taxes and Benefits, $23,600 , 26% Service and Supplies, $14,250 , 16% Capital, , 0% Description: Legal Requirements: Pursuant to NRS 266.470, the city attorney shall be the legal adviser of the council and all officers of the city in all matters respecting the affairs of the city and shall perform such duties as may be required by the council or prescribed by ordinance. Significant Expenditures and Staffing Changes: The City Attorney services were previously provided by an outside law firm. Prosecution services were also provided by an outside law firm. Effective July 1, 2007, these services were changed to an in-house Office of the City Attorney. 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 2007-2008 68 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 69 Line Item Budget – City Attorney Cost Center: Account # Descripton FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-414-100 Salaries and Wages 43,100 100-414-130 Overtime 500 100-414-140 Annual Leave Pay 3,300 100-414-150 Sick Leave Pay 3,000 100-414-160 Holiday Pay 2,400 Subtotal Salaries & Wages 0 0 0 52,300 100-414-210 Medicare 800 100-414-220 Unemployment 600 100-414-230 Retirement (PERS) 10,600 100-414-240 Group Insurance 10,000 100-414-250 Workers Compensation Insurance 1,600 Subtotal Employee Benefits 0 0 0 23,600 Total Salaries & Benefits 0 0 0 75,900 100-414-342 Tech Services-Other 500 100-414-441 Rental 1,000 100-414-530 Communications 1,750 100-414-580 Travel & Training 5,000 100-414-600 General Supplies 5,000 100-414-605 Minor Equipment 1,000 Total Service & Supplies 0 0 0 14,250 Total Operating Expenses 0 0 0 90,150 Total Capital 0 0 0 0 Total Operating and Capital 0 0 0 90,150 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 70 Office of the City Treasurer/Finance Department Organizational Chart: Finance FY2007/2008 Expenditures Salaries and Wages, $109,300 , 50% Payroll Taxes and Benefits, $55,400 , 26% Service and Supplies, $52,200 , 24% 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.) Admin Specialist Technical Specialist IT Specialist Accounting Tech (2.5 FTE) Asst. Finance Dir. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 71 1. Streamline the steps needed for audit of the financial statement prepared under GASB #34, a new accounting standard that requires additional record keeping. 2. Coordinate planning and implementation of appropriate technology, including coordination of the Technology Committee, administration of contracts, presentations to the City Council for approval of projects, and implementation of approved projects. 3. Streamline processes in human resource management and payroll. 4. Coordinate water and sewer rate analysis and implementation of appropriate rate increases. 5. Provide quality internal and external customer service through appropriate training and policy/procedure development. 6. Submit the completed budget for consideration under the Government Finance Officers Association Distinguished Budget Presentation Awards Program and plan for future submission of a Comprehensive Annual Financial Report and other “popular” reporting programs. 7. Provide quality financial information and support to the City Manager, Mayor, City Council, other City departments for continued improvement of the public perception of the City government. 8. Begin research and planning for future implementation of a more formal performance measurement program. Legal Requirements: The Office of the City Treasurer was established under City of Fernley Ordinance #2001- 0005. Appointment of a City Treasurer is required pursuant to NRS 266.405. The City Treasurer reports to and is under the supervision of the City Manager. The statutory duties and responsibilities of the City Treasurer are described in NRS 266.500 through 266.525. The City Council may prescribe the specific duties and responsibilities of the City Treasurer through ordinances. The job description for the City Treasurer (Administrative Services Director), duly adopted by the City Council, indicates that the City Treasurer serves as the chief financial officer and budget officer for the City, oversees payroll and data processing functions of the City, manages the operation of the Administrative Services Department, and provides related assistance to the City Manager. Significant Expenditures and Staffing Changes: No new positions were added. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 72 Staffing Levels and Cost Allocation: The staff levels and cost allocations for the department are shown in Appendices A through C of this report: 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 2007-2008 73 Task Prepare checklist and take decisions regarding implementation of accounting standards to the person or body with proper authority to make the decision. Objective To prepare workpapers and other information needed to streamline the audit process. Task Coordinate with independent accountants in planning of the audit. Task Prepare certain workpapers. Task Train personnel in the practices to facilitate the audit at year- end. Goal: To streamline the budget process and create a user friendly budget document. Objective To obtain information from department heads, City Council, and other parties to ascertain citywide visions and goals. Task Develop budget instructions and forms. Task Assist departments in format of budget submissions. Task Coordinate with City Manager on budget workshops to obtain the vision and direction of the City Council and incorporate in final budget documents. Objective To prepare the budget document according to the format recommended by GFOA. Task Research GFOA criteria. Task Organize the budget document according to the criteria. Task Complete the outlined document using information gathered. Goal: To develop the process for analysis of water and sewer rates to initially set the rate structure and to annually update the rate analysis and set rates accordingly. Objective To prepare analysis. Objective To prepare for public meetings with City Council on analysis. Objective To implement the new rates and rate structure. Goal: To participate in organizations and attend conferences to improve the leadership and technical capacity of the Administrative Services Department, including staff. Objective To attend conferences to keep current. Objective To develop targeted training for staff to improve productivity through development of skill levels. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 74 Line Item Budget Office of the City Treasurer/Finance Cost Center: Account # Descripton FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-415-100 Salaries and Wages 48,523 62,240 74,000 89,700 100-415-130 Overtime 2,024 1,727 1,100 1,500 100-415-140 Annual Leave Pay 1,928 3,310 3,400 6,800 100-415-150 Sick Leave Pay 1,329 3,366 2,000 6,300 100-415-160 Holiday Pay 1,483 1,669 3,200 5,000 Subtotal Salaries & Wages 55,287 72,312 83,700 109,300 100-415-200 FICA 0 100-415-210 Medicare 741 976 1,300 1,600 100-415-220 Unemployment 311 363 900 1,100 100-415-230 Retirement (PERS) 10,479 13,554 17,700 22,100 100-415-240 Group Insurance 11,135 13,712 19,900 27,200 100-415-250 Workers Compensation Insurance 1,217 1,553 2,800 3,300 100-415-260 Other Benefits 85 72 100 100 Subtotal Employee Benefits 23,968 30,230 42,700 55,400 Total Salaries & Benefits 79,255 102,542 126,400 164,700 100-415-322 Professional Services-Other 2,380 9,703 9,000 4,000 100-415-328 Professional Services-Auditing 8,333 12,667 18,000 18,000 100-415-342 Tech. Services-Other 1,938 2,494 4,000 4,000 100-415-530 Communications 1,128 1,376 1,700 1,700 100-415-540 Advertising 1,928 904 3,000 3,000 100-415-550 Printing and Postage 1,075 1,265 2,000 2,000 100-415-580 Travel & Training 1,957 4,425 9,000 9,000 100-415-581 Dues & Memberships 794 989 1,000 1,000 100-415-585 Educational Assistance Program 0 0 0 1,000 100-415-600 General Supplies 5,247 5,212 4,500 4,500 100-415-605 Minor Equipment 1,467 846 3,500 3,500 100-415-640 Books & Periodicals 197 0 500 500 Total Service & Supplies 26,444 39,881 56,200 52,200 Total Operating Expenses 105,699 142,423 182,600 216,900 100-415-730 Improvements Other Than 100-415-741 Machinery 100-415-743 Furniture and Fixtures Total Capital 0 0 0 0 Total Operating and Capital 105,699 142,423 182,600 216,900 Analysis: No new positions were added in FY08. In the latter part of FY07, reorganization occurred that transferred the animal control services to the Parks and Recreation Department and the administrative functions of the Municipal Court to the Office of the City Clerk. An Information Technology Specialist position was added. The calculations include projected step increases for existing personnel and Cost of Living Increases. No major capital items are anticipated, other than the technology improvements and software upgraded identified in the Capital fund. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 75 Office of the City Clerk Organizational Chart: Office of City Clerk FY2007/2008 Expenditures Salaries and Wages, $118,700 , 46% Payroll Taxes and Benefits, $69,600 , 27% Service and Supplies, $68,250 , 27% 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 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 2007-2008 76 be published quarterly in some newspaper published in the city a statement of the finances of the city, showing receipts and disbursements, and bills allowed and paid with the signature of the mayor attested by the city clerk. The City Clerk is also responsible for overseeing city elections pursuant to NRS 293C to NRS 306. Additional responsibilities include processing City Council agendas and minutes, providing notification of meeting decisions to interested parties, processing passport applications, maintaining the calendar for use of City Hall meeting rooms, distributing mail, preparing the Clerk’s budget, processing the Franchise Business License fees, administering the Business and Liquor license programs and providing clerical support to the Mayor, City Council, and City Manager, as needed. The City Clerk is also responsible for the timely and accurate accumulation, organization, dissemination, and archival of information from City Council, staff, and citizens for decision-making consistent with public law and community values. 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: One Office Assistant II positions was upgraded from part time to full time. Another Office Assistant II positions was increased from 0.60 FTE to 0.75 FTE. One Court Clerk and one Accounting Technician (reclassified to Court Clerk) position was transferred from the Administrative Services Department in the latter part of FY07. The cost allocations for all the positions are shown in Appendices A through C of this report. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 77 Task Mail, fax, or email a copy of the agenda to all persons requesting a copy and to anyone who has an item on the agenda. Task Ensure a Recording Secretary is present at the meeting and that minutes are approved within 30 days of each meeting. Task Enter agenda items into database for easy access. File agenda, agenda reports, and audiocassette tapes and electronic media in an easily retrievable fashion. 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 Administrative Services Department for deposit. Task Investigate reports of businesses being conducted without a valid business license. Task #10: Enforce regulations and assist businesses, which are operating without a license or with a delinquent license, to become compliant. Task #11: Review and revise Title 5 regarding issuance of business licenses. Goal: To conduct City elections pursuant to NRS 293C, including redistricting when necessary. Objective To proactively train and prepare for future elections, including completing an agreement with Lyon County Clerk/Treasurer to conduct municipal elections in even number years. Task Obtain training and assistance, as needed, to plan for efficient election. Task Arrange for adequate funding needed to prepare plan and implement plan. Task Review and modify Ward boundaries. Task Establish an inter-local agreement with Lyon County to combine resources and provide assistance with elections. Task Ensure candidates meet legal requirements for filing declaration of candidacy and assist them in mandatory filing requirements. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 78 Task Fulfill publication requirements for notice of city election in a timely fashion. Task Recruit and appoint the necessary election officers and election boards, including: poll workers, absent ballot board and counting board. Task Review and choose voting format such as touch screen machines or paper ballot and make arrangements for the necessary equipment. Task Design sample, absent, and general ballots in compliance with grouping order for type of office, content, mailing, and notice of location requirements. Task #10: Establish procedures and location for security of ballots. Task #11: Arrange for absentee and early voting, including extended hours the Clerk’s office is open to the public. Task #12: Work with Lyon County to obtain the necessary pollbooks and equipment. Task #13: Prepare polling location materials supplies, and arrange for secure location until distributed. Task #14: Ensure compliance with accessibility to polling place for elderly and disabled voters. Task #15: Establish procedures for replacement of spoiled ballots. Task #16: Establish procedures for accounting of used and unused ballots and for rejecting ballots. Task #17: Establish standard for counting votes. Task #18: Post copies of voting results in a timely fashion, including submitting information to the Secretary of State’s election web site. Task #19: Ensure canvass and abstract of votes is completed in a timely fashion. Task #20: Ensure proper reports are submitted to the Commission on Ethics and Secretary of State in a timely manner. Goal: To process ordinances and resolutions Objective To process ordinances and resolutions in compliance with NRS 266.115. Task Place ordinances and resolutions on City Council agendas for approval. Task Publish notification of proposal and adoption of ordinances and resolutions. Task Ensure that the ordinances are completed within the timeframe required by NRS 266.155. Task Ensure the Mayor and City Clerk sign the originals and distribute copies as necessary. Task Accept all ordinances and resolutions in electronic format for codification with City Code. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 79 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. Goal: To countersign contracts, keep the corporate seal and records of the City. Objective To establish and maintain a comprehensive electronic imaging, records and information management program. Task Pursuant to NRS 266.480(4), countersign all contracts made in behalf of the City. Task Establish document categories and classes, including documents deemed “sensitive”. Task Initiate a records retention program based on department policies and schedules. Task Establish electronic imaging and document tracking process. Task Establish migration process from active records to storage. Task Establish records destruction procedure. Task Establish training program. Task Establish monitoring to measure program compliance. Task Establish program enforcement. Task #10: Implement plans. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 80 Line Item Budget – Office of the City Clerk: Account # Descripton FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-416-100 Salaries and Wages 98,400 100-416-130 Overtime 500 100-416-140 Annual Leave Pay 7,400 100-416-150 Sick Leave Pay 6,900 100-416-160 Holiday Pay 5,500 Subtotal Salaries & Wages 0 0 0 118,700 100-416-210 Medicare 1,800 100-416-220 Unemployment 1,200 100-416-230 Retirement (PERS) 24,200 100-416-240 Group Insurance 38,800 100-416-250 Workers Compensation Insurance 3,600 Subtotal Employee Benefits 0 0 0 69,600 Total Salaries & Benefits 0 0 0 188,300 100-416-321 Professional Services-GIS 1,500 100-416-322 Professional Services-Other 25,000 100-416-342 Tech Services-Other 500 100-416-344 Tech Services-Elections 10,000 100-416-441 Rental 1,000 100-416-530 Communications 1,750 100-416-540 Advertising 5,000 100-416-550 Printing and Postage 7,500 100-416-580 Travel & Training 5,000 100-416-585 Educational Assistance Program 500 100-416-600 General Supplies 5,000 100-416-604 Supplies Passports 4,000 100-416-605 Minor Equipment 1,000 100-416-640 Books and Periodicals 500 Total Service & Supplies 0 0 0 68,250 Total Operating Expenses 0 0 0 256,550 Total Capital 0 0 0 0 Total Operating and Capital 0 0 0 256,550 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 81 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: This is a new cost center. Staffing Levels and Cost Allocation: The budget does not include any allocation of personnel to facilities but does contain janitorial contracts, supplies, and utilities for City Hall. The detail for the community support line is: Fernley 4th of July Fireworks 15,000 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 Compass 8,500 TOTAL 50,000 Line Item Budget: Account # Descripton FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Subtotal Salaries & Wages 0 0 0 0 Subtotal Employee Benefits 0 0 0 0 Total Salaries & Benefits 0 0 0 0 100-417-348 Commission on Ethics Assessment 4,000 100-417-410 Utility Service-Water and Sewer 3,000 100-417-412 Utility Service-Refuse 1,500 100-417-430 Service-Building Maintenance 3,000 100-417-431 Service-Janitorial 20,000 100-417-520 Insurance 60,000 100-417-581 Dues & Subscriptions-NLCM 11,000 100-417-621 Natural Gas 5,000 100-417-622 Electricity 25,000 100-417-650 Community Support 50,000 Total Service & Supplies 0 0 0 182,500 Total Operating Expenses 0 0 0 182,500 Total Capital 0 0 0 0 Total Operating and Capital 0 0 0 182,500 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 82 Municipal Court Organizational Chart: Municipal Court FY2007/2008 Expenditures Salaries and Wages, $141,800 , 59% Payroll Taxes and Benefits, $64,300 , 26% Service and Supplies, $37,000 , 15% 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 Admin Spec. Court Clerk Office Asst II PT Office Asst II Prosecutor (40%) Deputy City Clerk ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 83 Following is a summary of the charges filed in Municipal Court for the periods indicated: Drug DUI Domestic Violence Traffic Non- Traffic Other Total 7/1/02 to 6/30/03 55 82 37 1979 160 5 2318 7/1/03 to 6/30/04 33 71 48 2132 309 0 2593 % change (40%) (13.4%) 29.7% 7.7% 93.1% N/M 11.9% 7/1/04 to 6/30/05 34 75 65 2410 314 1 2899 % change 3.03% 5.6% 35.4% 13.0% 1.6% N/M 11.8% 7/1/05 to 6/30/06 67 86 44 2474 315 0 2986 % change 48% 15% (32%) 2.6% - NM 3% 7/1/06 to 6/30/07 (est.) 35 81 5 1829 319 0 2269 % change (48%) (87%) (26%) 1% (24%) 7/1/07 to 6/30/08 (est) 35 80 0 2000 300 0 2415 % change - - - 9.3% 6.4% 0 500 1000 1500 2000 2500 3000 3500 FY03 FY04 FY05 FY06 FY07 FY08 Other Non-Traffic Traffic Domestic DUI Drug ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 84 Legal Requirements: NRS 266.550 through 266.595 describes the jurisdiction and operation of municipal courts. The municipal court has similar powers and jurisdiction in the city that are provided by law for justices’ courts, subject to the overall limited jurisdiction of misdemeanor criminal offenses. The powers of the municipal court include the power to charge and collect those fees authorized pursuant to NRS 5.073. Significant Expenditures and Staffing Changes: The number of FTE assigned to Municipal Court duties in the prior fiscal year was 1.99 FTE, excluding the prosecution service. In FY2007-2008, prosecution services were converted from a contract with a firm to City employees. This accounts for the majority in the increase in FTE for this cost center. FTE allocation in FY08 is 3.00. Staffing Levels and Cost Allocation: The Prosecutor services were previously provided under a contract. In FY2007-2008, these services are provided through allocation of the staff in the Office of the City Attorney. Public Defender services are provided through contracts and therefore, no City employees are involved in this function. The Municipal Court cost center includes the personnel allocated at the noted percentages as shown in Appendices A through C of the report. 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. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 85 Line Item Budget – Municipal Court Cost Center: Account # Descripton FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-425-100 Regular Pay 66,159 67,527 75,000 123,700 100-425-130 Overtime Pay 252 661 2,000 500 100-425-140 Annual Leave Pay 2,137 2,486 4,300 6,600 100-425-150 Sick Leave Pay 1,284 2,321 4,300 6,100 100-425-160 Holiday Pay 1,855 2,057 3,400 4,900 Subtotal Salaries & Wages 71,687 75,052 89,000 141,800 100-425-200 FICA 1,488 1,488 1,700 2,300 100-425-210 Medicare 1,049 1,098 1,400 2,100 100-425-220 Unemployment 395 314 800 1,500 100-425-230 Retirement (PERS) 9,284 9,866 10,500 21,600 100-425-240 Group Insurance 7,951 6,811 21,900 30,900 100-425-250 Workers Comp-Other 1,972 2,022 2,400 4,300 100-425-260 Other Benefits 1,333 1,216 1,600 1,600 Subtotal Employee Benefits 23,472 22,815 40,300 64,300 Total Salaries & Benefits 95,159 97,867 129,300 206,100 100-425-312 Professional Service-Prosecutor 39,016 33,000 36,000 100-425-314 Professional Service-Pub. Def. 24,946 21,300 24,500 24,500 100-425-322 Professional Service-Other 2,208 1,546 2,500 2,500 100-425-342 Tech Services-Other 1,203 1,204 2,500 1,500 100-425-530 Communications 1,563 2,087 2,000 2,000 100-425-540 Advertising 0 0 0 500 100-425-550 Printing and Postage 1,120 1,353 750 1,000 100-425-580 Travel & Training 1,665 588 0 0 100-425-581 Dues and Memberships 385 201 500 500 100-425-600 General Supplies 1,939 3,805 3,000 4,000 100-425-605 Minor Equipment 996 285 0 0 100-425-640 Books & Periodicals 395 395 500 500 Total Service & Supplies 75,436 65,764 72,250 37,000 Total Operating Expenses 170,595 163,631 201,550 243,100 Total Capital 0 0 0 0 Total Operating and Capital 170,595 163,631 201,550 243,100 Analysis: The increase in Salaries and Wages for the Municipal Court reflect a salary increase for the judge, an additional court clerk position, and a change from contracted prosecution services to prosecutions services provided in-house by the City Attorney’s Office. The decrease in service and supplies reflects the change in prosecution services. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 86 Parks Organizational Chart: Parks FY2007/2008 Expenditures Salaries and Wages, $319,500 , 43% Payroll Taxes and Benefits, $165,000 , 23% Service and Supplies, $247,400 , 34% Capital, , 0% 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 Seasonal Helpers (2.97FTE) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 87 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 provide cleaning services in City Hall. Significant Expenditures and Staffing Changes: In FY07/08, the budget assumes creation of one new full time Senior Maintenance Worker position. Staffing Levels and Cost Allocation: The Parks cost center includes allocated costs for personnel as noted in Appendices A through C of this report. 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. Task Meet with athletic field users to schedule and coordinate routine and tournament activities. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 88 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 2007-2008 89 Line Item Budget – Parks Cost Center: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-575-100 Regular Pay 145,295 209,153 220,000 266,600 100-575-130 Overtime Pay 5,896 10,248 13,500 10,000 100-575-140 Annual Leave Pay 8,615 5,634 12,000 16,100 100-575-150 Sick Leave Pay 5,457 6,512 10,000 14,900 100-575-160 Holiday Pay 5,392 6,927 10,000 11,900 Subtotal Salaries and Wages 170,655 238,474 265,500 319,500 100-575-200 FICA 968 1,141 2,500 3,300 100-575-210 Medicare 2,354 3,296 4,600 4,500 100-575-220 Unemployment 1,563 1,483 2,500 3,100 100-575-230 Retirement (PERS) 25,708 27,901 45,000 52,700 100-575-240 Group Insurance 23,303 32,049 54,000 90,600 100-575-250 Workers Compensation Insurance 4,631 5,982 7,400 9,600 100-575-260 Other Beneifts 1,040 1,430 2,000 1,200 Subtotal Employee Benefits 59,567 73,282 118,000 165,000 Total Salaries & Benefits 230,222 311,756 383,500 484,500 100-575-322 Professional Services-Other 11,143 51,795 50,000 48,700 100-575-320 Professional Services -engineering 206 0 100-575-342 Tech Services-Other 1,710 4,048 10,000 10,000 100-575-410 Utility Service-Water and Sewer 28,127 32,287 38,000 38,000 100-575-412 Utility Service-Refuse 4,168 6,883 8,000 11,000 100-575-430 Service-Repair and Maintenance 11,792 8,495 10,000 9,000 100-575-441 Rental 2,500 100-575-520 Insurance 500 100-575-530 Communications 4,868 7,294 8,420 8,500 100-575-540 Advertising 410 42 0 0 100-575-550 Printing and Postage 301 0 500 500 100-575-580 Travel and Training 1,006 403 2,000 2,000 100-575-581 Dues and Memberships 380 110 500 500 100-575-585 Educational Assistance Program 12 0 1,000 1,000 100-575-600 General Supplies 55,781 43,382 75,000 75,000 100-575-605 Minor Equipment 5,587 5,511 8,300 9,000 100-575-610 Automotive Supplies 3,013 2,832 1,000 1,000 100-575-612 Building Maintenance Supplies 767 1,053 1,500 1,500 100-575-616 Safety Supplies 2,123 3,527 3,500 3,500 100-575-621 Natural Gas 1,000 1,000 100-575-622 Electricity 10,182 17,924 14,600 14,600 100-575-623 Propane 630 487 600 600 100-575-626 Gasoline 5,790 10,468 12,000 12,000 100-575-640 Books and Periodicals 15 0 100-575-642 Licenses and Permits 67 0 100 Total Service & Supplies 148,078 197,041 248,520 247,400 Total Operating Expenditures 378,300 508,797 632,020 731,900 100-575-741 Machinery 6,000 28,710 13,000 100-575-742 Vehicles 13,553 0 Total Capital 19,553 28,710 13,000 0 Total Operating and Capital 397,853 537,507 645,020 731,900 Analysis: In FY08 one new full time position (1 FTE) was added. Salaries and Wages increased due to the additional employee and regular cost of living and merit increases. Service and supplies appropriation decreased Vehicle and equipment purchases will be made from the Capital Fund. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 90 Community Development Organizational Chart: Building & Planning FY2007/2008 Expenditures Salaries and Wages, $611,300 , 54% Payroll Taxes and Benefits, $333,200 , 30% Service and Supplies, $180,180 , 16% Capital, , 0% Description: The Community Development Department exists to perform four primary functions: building inspections and permits, planning and zoning, geographic information systems and mapping, and code enforcement. 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 Planning Administration Planning Commission GIS/Mapping Building Sr. Planner Associate Planner Tech Specialist Permit Techs Office Assistant II Contract Building Official Sr Plans Examiner Blg Inspectors Plans Examiner ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 91 Growth Permits Issued 0 200 400 [PHONE REDACTED] 1200 1400 1600 FY03 FY04 FY05 FY06 FY07 FY08 (est) Fiscal Year # of Permits Permits 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 new positions were added in the department. Two previously unfilled and unfunded positions were removed from the Authorized Positions for FY08. Staffing Levels and Cost Allocation: The Community Development cost center includes 14 positions as listed in Appendices A through C of this report. The cost of one of the positions is allocated 50% to this cost center. Goals and Objectives: Goal: To meet all statutory requirements for review of planning applications. 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. Task Improve the civil improvement plan process. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 92 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. Task Continue to complete all staff reports by Planning Commission and City Council packet deadlines. Goal: To evaluate the Department and reorganize the structural and staff alignments, as needed. 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 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 initiate 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 Develop a plan though the use of a consultant 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 in City-wide technology updates. Goal: To assist with City Hall expansion. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 93 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 FY08 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 are being held throughout the City. As a result of the meetings, a list of needs will be established to assist in bringing new businesses to the City. The list will also help existing business modify their existing businesses to better serve their customers. The City staff will work 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 options will be presented to the Planning Commission and the City Council will be briefed on the process. Development Code and Comprehensive Plan: During FY08, significant changes to the layout and content of the Development Code will be presented to the Planning Commission and City Council. These changes will provide more options to the citizens and the development community as well as clarifying the content of the Code. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 94 Line Item Budget – Community Development: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-600-100 Regular Pay 346,248 435,469 325,000 507,300 100-600-130 Overtime Pay 14,300 7,498 3,000 2,500 100-600-140 Annual Leave Pay 11,267 18,939 15,000 38,100 100-600-150 Sick Leave Pay 7,788 13,098 20,000 35,200 100-600-160 Holiday Pay 9,177 11,068 15,000 28,200 Subtotal Salaries and Wages 388,780 486,072 378,000 611,300 100-600-210 Medicare 5,336 6,660 5,000 8,900 100-600-220 Unemployment 2,593 3,518 3,600 6,100 100-600-230 Retirement (PERS) 59,802 64,969 70,000 124,800 100-600-240 Group Insurance 67,196 70,131 90,000 173,000 100-600-250 Workers Compensation Insurance 9,078 8,016 10,000 18,400 100-600-260 Other Benefits 1,300 0 5,000 2,000 Subtotal Employee Benefits 145,305 153,294 183,600 333,200 Total Salaries & Benefits 534,085 639,366 561,600 944,500 100-600-320 Professional Services-Engineering 120 6,000 6,000 100-600-321 Professional Services-GIS 38,000 51,000 100-600-322 Professional Services-Other 61,057 105,686 40,000 40,000 100-600-342 Tech Services-Other 570 1,639 3,000 2,000 100-600-430 Service-Repair and Maintenance 1,180 930 2,000 5,780 100-600-441 Rental 6,227 4,852 6,000 6,000 100-600-530 Communications 7,880 9,971 10,000 10,000 100-600-540 Advertising 2,557 840 6,000 3,000 100-600-550 Printing and Postage 3,884 8,042 6,500 7,500 100-600-580 Travel & Training 11,140 10,182 17,500 17,500 100-600-581 Dues and Memberships 1,627 838 2,000 2,000 100-600-585 Educational Assistance Program 0 49 1,000 1,000 100-600-600 General Supplies 11,461 9,738 24,000 13,000 100-600-605 Minor Equipment 19,468 11,804 6,400 6,900 100-600-610 Automotive Supplies 3,289 381 500 500 100-600-616 Safety Supplies 165 145 500 500 100-600-626 Gasoline 3,760 5,686 4,000 6,000 100-600-640 Books and Periodicals 755 696 1,500 1,500 Total Service & Supplies 135,020 171,599 174,900 180,180 Total Operating Expenditures 669,105 810,965 736,500 1,124,680 100-600-741 Machinery 26,342 100-600-742 Vehicles 0 16,800 Total Capital 0 26,342 16,800 0 Total Operating and Capital 669,105 837,307 753,300 1,124,680 Analysis: In FY06 and FY07, positions were authorized but not fully funded for two engineering positions. These positions have been dropped in the FY08 budget. The FY08 budget includes cost of living and step increases for employees. There were several unfilled positions in FY07 that are fully funded in FY08. Service and supply line items increased, primarily for professional services for special projects, such as downtown improvement plan, and engineering and GIS services. In FY06, Salaries and Wages increased due to additional staff positions and projected step increases for existing personnel Expenses for a capital outlays will be accounted for in the Capital Fund. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 95 Animal Control Organizational Chart: Animal Control FY2007/2008 Expenditures Capital, , 0% Salaries and Wages, $88,100 , 53% Payroll Taxes and Benefits, $51,500 , 31% Service and Supplies, $26,500 , 16% 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 Seasonal Helpers (2.97FTE) Office Assistant II (0.50 FTE) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 96 Significant Expenditures and Staffing Changes: No new positions were added in FY08. A portion of the Parks and Recreation Director’s salary was allocated to this cost center in FY08 that was not allocated in previous fiscal years. The Parks and Recreation Director is responsible for implementing programs, through use of staff in the department. Staffing Levels and Cost Allocation: The Animal Control cost center includes personnel allocated as listed in Appendices A through C of this report. A portion of the cost of the Parks and Recreation Director is allocated to this cost center in FY08. 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 2007-2008 97 Line Item Budget – Animal Control: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-525-100 Regular Pay 27,213 48,801 40,000 70,800 100-525-130 Overtime Pay 1,307 1,223 2,000 3,100 100-525-140 Annual Leave Pay 1,119 3,371 2,600 5,300 100-525-150 Sick Leave Pay 2,397 1,751 2,000 4,900 100-525-160 Holiday Pay 1,395 2,419 3,000 4,000 Subtotal Salaries and Wages 33,431 57,565 49,600 88,100 100-525-210 Medicare 451 820 800 1,300 100-525-220 Unemployment 280 417 500 900 100-525-230 Retirement (PERS) 6,338 9,512 10,500 17,400 100-525-240 Group Insurance 5,008 4,618 16,500 29,200 100-525-250 Workers Compensation Insurance 919 1,520 1,800 2,700 Subtotal Employee Benefits 12,996 16,887 30,100 51,500 Total Salaries and Benefits 46,427 74,452 79,700 139,600 100-525-322 Professional Services-Other 0 3,712 2,000 2,000 100-525-342 Tech Services-Other 0 2,191 2,000 2,000 100-525-346 Co. Shelter Agreement 3,000 3,000 3,000 3,500 100-525-430 Service-Repair & Maintenance 7 1,419 1,500 1,500 100-525-530 Communications 2,432 4,563 4,500 4,500 100-525-540 Advertising 0 29 1,000 1,000 100-525-550 Printing and Postage 239 39 500 500 100-525-580 Travel & Training 55 44 2,000 500 100-525-581 Dues and Memberships 235 0 500 500 100-525-585 Educational Assistance Program 0 3,262 1,000 0 100-525-600 General Supplies 1,135 1,443 3,500 3,000 100-525-605 Minor Equipment 459 0 3,000 2,500 100-525-610 Automotive Supplies 1,937 500 500 100-525-616 Safety Supplies 800 100-525-626 Gasoline 811 1,434 2,000 3,500 100-525-640 Books and Periodicals 0 0 250 250 100-252-650 Legal Settlement 20,000 Total Service and Supplies 10,310 21,136 47,250 26,550 Total Operating Expenses 56,737 95,588 126,950 166,150 100-525-742 Vehicles 0 25,100 Total Capital 0 0 25,100 0 Total Operating and Capital 56,737 95,588 152,050 166,150 Analysis: In FY08, no new positions were added. 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. In FY06, Salaries and Wages increased due to the creation of new positions. The budget also includes projected step increases for current employees. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 98 Vector Control Organizational Chart: Vector Control FY2007/2008 Expenditures Salaries and Wages, $65,700 , 29% Payroll Taxes and Benefits, $33,500 , 15% Service and Supplies, $126,560 , 56% Capital, , 0% 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: The seasonal labor was deleted in FY08 in favor of contracts for aerial application of pesticides. A portion of the Parks and Recreation Director’s salary was allocated to this cost center in FY08 that was not allocated in previous fiscal years. The Parks and Recreation Director is responsible for implementing programs, through use of staff in the 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 Seasonal Helpers (2.97FTE) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 99 Staffing Levels and Cost Allocation: The Vector Control cost center includes the personnel allocated as listed in Appendices A through C of this report. A total of 1.33 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 2007-2008 100 Line Item Budget – Vector Control: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-528-100 Regular Pay 7,149 40,210 46,000 53,000 100-528-130 Overtime Pay 2,069 7,800 3,500 2,000 100-528-140 Annual Leave Pay 137 287 2,000 4,000 100-528-150 Sick Leave Pay 1,459 2,000 3,700 100-528-160 Holiday Pay 1,708 2,300 3,000 Subtotal Salaries and Wages 9,355 51,464 55,800 65,700 100-528-200 FICA 95 709 500 0 100-528-210 Medicare 70 761 800 1,000 100-528-220 Unemployment 160 431 600 700 100-528-230 Retirement (PERS) 835 7,652 11,000 13,100 100-528-240 Group Insurance 0 6,721 11,000 16,700 100-528-250 Workers Compensation Insurance 244 1,509 2,800 2,000 Subtotal Employee Benefits 1,404 17,783 26,700 33,500 Total Salaries & Benefits 10,759 69,247 82,500 99,200 100-528-322 Professional Services-Other 0 4,796 10,000 16,810 100-528-342 Tech Services-Other 0 632 2,000 12,000 100-528-430 Service-Repair and Maintenance 0 50 2,000 2,000 100-528-530 Communications 0 2,061 2,500 1,250 100-528-540 Advertising 26 100-528-580 Travel and Training 710 0 1,000 1,000 100-528-581 Dues and Memberships 0 500 100-528-585 Educational Assistance Program 0 0 0 1,000 100-528-600 General Supplies 10,159 64,694 97,100 80,000 100-528-605 Minor Equipment 13,831 7,072 2,000 2,000 100-528-610 Automotive Supplies 1,790 7,583 1,000 2,000 100-528-612 Building Maintenance Supplies 107 65 100-528-616 Safety Supplies 2,757 1,029 3,300 2,000 100-528-626 Gasoline 0 3,921 5,500 6,000 Total Service & Supplies 29,380 91,903 126,400 126,560 Total Operating Expenditures 40,139 161,150 208,900 225,760 100-528-730 Improvements Other Than 10,698 0 0 100-528-741 Machinery 11,313 8,549 13,800 100-528-742 Vehicles 15,902 25,400 Total Capital 27,215 19,247 39,200 0 Total Operating and Capital 67,354 180,397 248,100 225,760 Analysis: The costs for FY05 represent approximately half a year since the program began in mid FY05. Costs for chemicals are much higher than originally anticipated. High chemical costs are expected in FY08. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 101 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 FY2007/2008 budget for the debt service function follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget 100-625-861 Principal 158,000 165,000 100-625-860 Interest 94,789 220,400 213,702 100-625-331 Service & Supplies (Bank Fee) Total 94,789 378,400 378,702 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 102 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 FY2007/2008 are approximately $3.9 million. The contingency is established at less than the full 3% limit ($117,000). The $50,000 contingency amount is less than 1% of annual expenditures. 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 FY2007/2008 budget for the contingency function follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Total Salaries & Benefits 0 0 100-900-900 Contingency 0 0 50,000 Total Service & Supplies 0 50,000 Total Operating Expenditures 0 50,000 Capital Expenditures Total Capital 0 0 Total Operating and Capital 0 0 50,000 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 103   Overview: Special Revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. The City of Fernley maintains the following special revenue funds for the purposes described: Administrative Assessment Fees Fund: To account for a portion of fees collected in the Fernley Municipal Court as required by NRS 176.059. These monies are used to improve the operations of the court, or to acquire and/or use appropriate advanced technology, including training, acquisition of capital items, management and operations studies or audits. Any money remaining in the fund after two fiscal years reverts to the City General Fund. Court Facilities Assessment Fees Fund: To account for fees collected in the Fernley Municipal Court pursuant to NRS 176.0611 and authorized in City of Fernley Ordinance #2001-0011. These monies are used to acquire land for court facilities, construct or acquire court facilities, renovate or remodel existing court facilities, acquire furniture, fixtures and equipment needed due to construction, acquisition or renovation or court facilities, acquire advanced technology for use in renovation of court facilities, or to pay debt service on bond issues related to construction, acquisition, or renovation of court facilities. Any money remaining in the fund after five fiscal years reverts to the City General Fund. Grants: To account for certain projects primarily financed through grants and to segregate funds earmarked as matching funds for grants. Grants relating to enterprise funds are not included in this fund. Residential Construction Tax District To account for a tax to be used for park development in the District #1 identified in the City of Fernley park plan. Residential Construction Tax District To account for a tax to be used for park development in the District #2 identified in the City of Fernley park plan. Streets and Storm Drain: To account for gas taxes that must be used for street maintenance and capital expenditures as well as other revenues that may be used for projects associated with streets and storm drains. 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 104 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 2007-2008 105 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 FY2007/2008 budget for this fund follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Revenues: Fines & Forfeitures 200-350-100 Admin Assess Fee Revenue 12,698 15,113 15,000 15,000 200-360-100 Interest Earnings 879 1,148 1,500 1,100 Miscellaneous Revenues Total Revenues 13,577 16,261 16,500 16,100 Operating Expenditures: 200-425-322 Professional Services-Other 200 200-425-580 Travel & Training 1,273 3,427 4,000 5,000 200-425-600 General Supplies 0 293 0 5,000 200-425-605 Minor Equipment 1,613 1,000 10,000 Total Operating Expenditures 1,273 5,533 5,000 20,000 Net from Operations 12,304 10,728 11,500 -3,900 Capital Expenditures: 200-425-741 Machinery Furniture and Fixtures Total Capital 0 0 0 0 Revenues less Expenditures 12,304 10,728 11,500 -3,900 Transfers in & Out -45,000 Fund Balance July 1 14,593 26,897 37,625 4,125 Fund Balance June 30 26,897 37,625 4,125 225 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 2007-2008 106 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 FY2007/2008 budget for this fund follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Revenues: 210-350-100 Court Facility Fee Revenue 18,062 20,665 21,000 21,000 210-360-100 Interest Earnings 712 2,095 2,500 2,500 Total Revenues 18,774 22,760 23,500 23,500 210-425-322 Professional Service-Other 210-425-741 Machinery 0 0 Total Expenditures 0 0 0 Revenues less Expenditures 18,774 22,760 23,500 23,500 Transfers In & Out -90,000 Fund Balance July 1 28,484 47,258 70,018 3,518 Fund Balance June 30 47,258 70,018 3,518 27,018 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 2007-2008 107 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 FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Revenues: 220-330-100 CDBG Grant Revenue 220-330-300 PUC Grant Revenue 220-360-100 Interest Earnings 9,232 17,062 20,200 15,000 Other Grant Revenue Total Revenues 9,232 17,062 20,200 15,000 Expenditures: 220-480-322 Prof Serv-WNDD Grant Writing Total Operating Expenditures 0 0 0 0 220-480-645 CDBG Grant Expenditures Tourism Grant Expenditures 220-480-650 TEA-21 Match-Depot Restoration 1,652 5,000 220-480-655 PUC Grant Expenditures 99,449 220-480-730 Other Grant Expenditures 0 Total Capital Expenditures 99,449 1,652 5,000 0 Total Expenditures 99,449 1,652 5,000 0 Revenues less Expenditures -90,217 15,410 15,200 15,000 220-390-500 Transfer from General Fund 100,000 0 0 0 Transfer to General Fund -10,000 220-390-505 Transfer from RCT #1 Fund 0 Fund Balance July 1 497,569 507,352 522,762 537,962 Fund Balance June 30 507,352 522,762 537,962 542,962 No appropriations were approved for FY08 because projects were not identified and awarded at the time the budget was approved. Appropriations may be adjusted as projects or grants are awarded. The changes will be made in FY08 though and augmentation process, if needed. Interest will accrue on the money held in the fund. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 108 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 FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Revenues: 230-310-300 RCT Tax 381,140 440,536 46,000 200,000 230-330-100 CDBG Grant Revenue 0 230-330-110 Land & Water Conservation Grant 0 230-360-100 Interest Earnings 1,320 5,032 5,000 1,000 Other Revenue 0 Total Revenues 382,460 445,568 51,000 201,000 Expenditures: 230-575-322 Professional Services 3,662 Total Operating Expenditures 3,662 0 0 0 230-575-710 Land 240,000 230-575-720 Buildings 0 230-575-730 Improvements 604,468 51,710 230-575-741 Machinery 7,525 Total Capital 604,468 299,235 0 0 Revenues less Expenditures -225,670 146,333 51,000 201,000 Transfers From General Fund 400,000 Transfers To Other Fund 0 -200,000 -175,000 -25,000 Fund Balance July 1 4,091 178,421 124,754 754 Fund Balance June 30 178,421 124,754 754 176,754 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 2007-2008 109 Projects included in District #1 since inception of the fund Project Number Project Title Project Description 220-001 OTP Restroom/Sewer Improvement- Phase I Completed Out of Town Park-Install Prefabricated Restroom Building, Install Water/Sewer/Electrical for the new restroom and the rest of the park, Remove three septic systems. Partially funded through CDBG Grant ($40K) 230-001 OTP Park Restrooms-ADA Compliance Completed Out of Town Park – Install sidewalks to Restrooms, ADA Parking, Ramp to Restroom, Ramp to Bandstand. Partially funded through CDBG Grant #CDBG/03/007 ($11,700 of which ~ 60% or $7,000 to this project) 230-002 OTP-Bandstand & Shelters Completed Out of Town Park – Erect Picnic Shelter, Replace Bandstand (old bandstand destroyed by vandal fire) , construct concrete walls 230-003 OTP-Restroom Concession Stand Improvements (Phase 2) Completed Out of Town Park – Install a new pre-fabricated combination restroom/concession stand building with utility hookups, Connect building to water sewer electrical. Partially funded through Land and Water Conservation Fund Grant # 32- 00269 ($40,949) 230-004 BOR Park – Property Acquisition from through BLM Acquire 100+ acres currently under the control of the Bureau of Reclamation through BLM Recreation and Public Purposes Lease Program. Contract for studies needed to effect the transfer 230-005 Eagle’s Nest / Fernwood Park Eagles’ Nest Subdivision – Acquire land, install fences, concrete pads for picnic tables and BBQ Pits, sprinkling system, grass 230-006 OTP-Senior Field Lights Install Lights at Senior Field 230-007 Quigley Property (Sundance Park) Completed Acquire property south of Out of Town Park, planning, grading, development 230-008 OTP-New Skate Park Construct a new skate park 230-009 Rodeo Bleachers and Canopy Construct improvements at the rodeo grounds 230-010 Bandstand Shelters Electrical Lighting Sound Electrical Improvements at Bandstand area 230-011 OTP-North Side Development (Round- About & Hwy 50A Improvements) Improve Park in relation to changes from the NDOT project 230-012 OTP-Install lights on two little league fields Install additional lighting No projects are slated during FY08 due to limited revenue availability. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 110 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 FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Revenues: 231-310-300 RCT Tax 443,866 757,286 130,000 350,000 231-330-100 Grants 0 0 60,000 231-360-100 Interest Earnings 10,891 17,891 23,000 20,000 Other Revenue 25,000 Total Revenues 454,757 800,177 213,000 370,000 Expenditures: 231-575-322 Professional Services Other Grant Expenditures Total Expenditures 0 0 0 0 231-575-731 Land 398,020 231-575-720 Buildings 60,875 700,000 231-575-730 Improvements Other Than Buildings 21,507 314,477 170,000 231-575-741 Machinery 92,800 Total Capital 21,507 866,172 170,000 700,000 Revenues less Expenditures 433,250 -65,995 43,000 -330,000 Transfers to RCT Dist #1 -400,000 200,000 175,000 25,000 Fund Balance July 1 284,953 318,203 452,208 670,208 Fund Balance June 30 318,203 452,208 670,208 365,208 The capital project slated for FY08 from this fund is the Diamond F Improvement Project. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 111 Projects included in District #2 since the creation of the Fund Project Number Project Title Project Description 231-001 ITP Park Restrooms-ADA Compliance In Town Park – Install Parking for ADA from 95A. Partially funded through CDBG Grant #CDBG/03/007($11,700 of which ~ 40% or 4,700 to this project) 231-002 Green Valley Park Field, Parking Lot, Restroom Improvements Construct improvements at Green Valley Park 231-004 ITP-Picnic Shelter at Old Basketball Court w/ADA Access Improve access at the In Town Park 231-005 ITP – Skatepark Improvements Add improvements to the existing park 231-006 ITP-Softball field lights Install lights at softball field 231-007 Picnic Shelter over Old School House BBQ’s Install picnic shelters 231-008 Depot Park Restroom and Sewer Improvements Improvements to the Depot park 231-009 Civic Center Park-Greenbelt Development Improve the property across from City Hall and adjacent to Millenium Grove. Grass, Sprinkling System, Path 231-010 Millenium Grove Improve property near City Hall (Completed Project) 231-011 City Hall Landscaping Improve the property at City Hall 231-012 Gazebo Silver Lace and Main Street Install Gazebo and related improvements 231-013 Memorial Park Install Half Moon Basketball Court Construct basketball court 231-014 80 Acre Park – Fernley Hills/BLM Exchange Create a new park 231-015 Memorial Park – ADA Restrooms and Septic Add improvements in Memorial Park 231-016 Diamond F Improvements Improvements to facilities located in the “Farm District” planning area to bring the facilities up to code for use as a public event facility 231-999 RCT District #2 Park Equipment Acquisition Costs Cost to plan, specify, bid, and install park equipment The expenditures in FY08 are all related to Project 231-016, the Diamond F Improvements Project. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 112 Streets and Storm Drains Organizational Chart: Streets FY2007/2008 Expenditures Capital, $1,156,279 , 65% Service and Supplies, $415,500 , 23% Payroll Taxes and Benefits, $77,800 , 4% Salaries and Wages, $149,900 , 8% 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 Voters of Fernley Mayor/City Council City Manager Public Works Director Public Works Superintendent Public Works Supervisor Mechanic Senior PW Workers Treatment Plant Operator Public Works Workers Assistant Public Works Director Administration Technical Specialist Office Assistant II Meter Readers ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 113 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 FY2007/2008. The major programs for the department during FY2007/2008 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 Revenue FY04 Revenue FY05 Revenue FY06 Revenue FY07 Revenue FY08 Revenue 1¢ Option $44,232 $45,380 $49,550 $58,805 $63,177 $62,895 % Change 2.6% 9.2% 18.7% 7.4% 1.75¢ Tax $96,199 $100,273 $101,396 $117,818 $121,864 $126,933 % Change 4.2% 1.1% 16.2% 3.4% 4.16% 2.35¢ Tax 53,790 57,023 68,574 $76,985 $88,307 $97,105 % Change 6.0% 20.3% 12.3% 14.71% 10.0% $20,000.00 $40,000.00 $60,000.00 $80,000.00 $100,000.00 $120,000.00 $140,000.00 1¢ 1.75¢ 2.35¢ FY03 FY04 FY05 FY06 FY07 FY08 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 114 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 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%) 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 (Estimated) $658,883 $781,783 0 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 115 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 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: Two positions were added to the Public Works Department in FY08. Two Senior Public Works Workers were added to respond to the increased maintenance for City streets from increased road miles accepted into the maintenance system. Staffing Levels and Cost Allocation: The Streets and Storm Drains fund includes allocation of personnel in the Public Works Department as indicated in Appendices A through C. A total of 3.40 FTE are allocated to this cost center Capital Improvement Projects: The Capital Improvement Plan lists the streets projects approved for FY08 as well as projections for the following four years. Goals and Objectives: Goal To provide adequate access to all areas of Fernley via City-maintained right of way whenever fiscally practical. Objective To maintain, update, and use the data within the City Paver Program street inventory. Task Input collected survey information into Paver database for purpose of prediction modeling. Task Maintain and update the City’s street inventory upon acceptance of new streets, changes in street names, and naming of new streets. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 116 Task Use the data from the Paver Program to determine streets in need of maintenance repair. Task Determine the best maintenance and repair alternative for each project with the objective of optimizing spending. Task Prepare construction drawings, bid documents, advertisements for bids and to award projects. Objective To manage and inspect street projects and programs awarded under contract. Task Manage and assure that the weed mitigation and street sweeping programs are being performed as required in contracts. Task Manage and inspect the maintenance repair crack sealing and slurry seal projects to assure contractor performance in compliance with specifications in contracts. Task Manage and inspect reconstruction projects to assure that construction meets the required contractual specifications. Objective To maintain, repair, and install traffic control devices within the City of Fernley. Task Perform maintenance repairs on the City traffic lights and signs. Task Replace street signs that are damaged, missing, or required to be changed by MUTCD (Manual of Uniform Traffic Control Devices) standards. Task Re-stripe existing or install new striping to meet MUTCD requirements thereby enhancing public safety. Goal To provide adequate conveyance and disposal of storm drain water generated in the Fernley area. Objective To collect survey data and previous hydrology studies for the development of storm drain model. Task Train City personnel in the use of the survey equipment for the collection of GIS data. Task Collect survey data to aid in the development of City storm drain model. Task Collect and review previous hydrology studies for use in the calibration of the storm drain model. Task Build the storm drain model based on the above collected information. Objective To prepare an Environmental Assessment to utilize the Truckee Carson Irrigation District (TCID) ditches for the transport of storm water as required by the National Environmental Policy Act of 1969 (NEPA). Task Identify potential locations based on the information from the above objectives. Task Clarify Bureau of Reclamation (BOR) requirements. Task Research potential funding sources for the project. Task Estimate the long-term costs as a result of the project. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 117 The revenues for the Streets and Storm Drains fund are listed in the following table: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Revenues: 240-320-220 Public Works Fees 15,747 6,491 6,000 6,000 240-320-2XX Inspsection Fees 15,531 33,580 10,000 25,000 240-330-300 County Road Fund Property Tax 213,620 293,745 0 0 240-330-320 Motor Vehicle Fuel Tax (Gas Tax) 233,448 227,691 273,348 287,381 240-330-325 Regional Transportation (RTC) 704,154 467,542 1,100,000 658,883 240-330-326 Road Tax 0 700,000 300,000 Donations (Cash & Mat/Labor) 190,000 240-360-100 Interest Earnings 14,973 29,665 0 0 Total Revenues 1,197,473 1,248,714 2,089,348 1,277,264 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 2007-2008 118 Streets and Storm Drains Fund Expenditures and Fund Balance: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Expenditures: 240-475-100 Regular Pay 76,936 73,403 95,300 111,500 240-475-120 Standby Pay 1,453 1,506 4,200 6,000 240-475-130 Overtime 7,316 6,122 8,000 10,000 240-475-140 Annual Leave Pay 5,484 4,919 6,000 8,400 240-475-150 Sick Leave Pay 5,505 3,482 4,900 7,800 240-475-160 Holiday Pay 3,195 3,129 3,800 6,200 Subtotal Salaries and Wages 99,889 92,561 122,200 149,900 240-475-200 FICA 27 0 240-475-210 Medicare 916 1,290 1,682 2,000 240-475-220 Unemployment 566 561 822 1,400 240-475-230 Retirement (PERS) 17,595 18,372 17,775 27,400 240-475-240 Group Insurance 15,374 13,274 16,000 41,750 240-475-250 Workers' Compensation Ins. 4,413 4,634 4,566 4,500 240-475-260 Other Benefits 481 663 750 750 Subtotal Employee Benefits 39,372 38,794 41,595 77,800 Total Salaries and Benefits 139,261 131,355 163,795 227,700 240-475-320 Professional Services-Engineering 107,248 41,639 47,000 50,000 240-475-322 Professional Services-Other 504 500 3,500 3,000 240-475-324 Professional Services-Environmental 8,501 1,140 1,500 3,000 240-475-325 Professional Services-PW Inspections 14,996 22,613 25,000 25,000 240-475-342 Tech Services-Other 300 96 100 0 240-475-412 Utility Service-Refuse 17 0 1,000 3,000 240-475-420 Contract-Street Sweeping 0 20,240 25,000 50,000 240-475-422 Contract-Traffic Light Maintenance 3,860 1,674 3,000 15,000 240-475-426 Contract-Striping 0 0 5,000 5,000 240-475-427 Contract-Gravel Road Investigations 0 0 50,000 5,000 240-475-430 Service-Repair & Maintenance 926 7,566 2,000 3,000 240-475-431 Service-Gravel Road Maintenance 45,000 240-475-442 Rental-Eqiupment/Vehicles 6,130 0 1,000 1,000 240-475-530 Communications 5,170 6,416 3,000 3,500 240-475-540 Advertising 337 727 4,000 2,500 240-475-550 Printing and Postage 2,524 802 3,000 2,000 240-475-580 Travel & Training 662 1,824 3,500 3,500 240-475-581 Dues and Memberships 0 135 1,000 1,000 240-475-585 Educational Assistance Program 0 0 1,000 1,000 240-475-600 General Supplies 16,718 13,465 25,000 20,000 240-475-605 Minor Equipment 6,782 525 2,500 10,000 240-475-610 Automotive Supplies 576 1,566 1,500 3,000 240-475-615 Supplies-Signs and Striping 6,152 8,380 25,000 25,000 240-475-616 Safety Supplies 662 444 1,000 3,000 240-475-622 Electricity 93,106 104,513 111,000 115,000 240-475-623 Propane 1,000 240-475-626 Gasoline 6,068 10,951 10,000 15,000 240-475-640 Books & Periodicals 0 0 1,000 1,000 240-475-642 Licenses and Permits 0 0 500 1,000 Total Service and Supplies 281,239 245,216 357,100 415,500 Total Operating Expenses 420,500 376,571 520,895 643,200 240-475-730 Improvements Other Than 852,018 1,916,818 1,600,000 1,085,779 240-475-741 Machinery 8,550 20,000 70,500 Total Capital 860,568 1,916,818 1,620,000 1,156,279 Total Operating and Capital 1,281,068 2,293,389 2,140,895 1,799,479 Revenues less Expenditures -83,595 -1,044,675 -51,547 -522,215 240-390-500 Transfers From General Fund 450,000 0 550,000 Fund Balance July 1 858,436 1,224,841 180,166 678,619 Fund Balance June 30 1,224,841 180,166 678,619 156,404 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 119 Analysis: Revenues decreased in FY08, primarily due to withdrawal and use of the majority of funds available in the Regional Transportation Commission fund administered by Lyon County in FY07. The funds were used for projects. Salaries and Wages increased due to additional personnel. Projected projects are lower due to limited funding available for projects. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 120 Private Sector Community Support Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Revenues: 235-310-300 Private Sector Donations 21,098 3,000 235-330-100 235-360-100 Interest Earnings 163 Other Revenue Total Revenues 0 21,261 3,000 0 Expenditures: 235-575-322 Professional Services 10,479 28,000 0 Other Grant Expenditures Total Expenditures 0 10,479 28,000 0 235-575-720 Buildings 235-575-730 Improvements Other Than Buildings 235-575-741 Machinery Total Capital 0 0 0 0 Revenues less Expenditures 0 10,782 -25,000 0 Transfers to Other Funds 15,000 Fund Balance July 1 0 0 10,782 782 Fund Balance June 30 0 10,782 782 782 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 2007-2008 121 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 Expected FY07-08 Budget Revenues: 251-340-100 Landscape Maint Dist Fees 9,600 Interest Earnings 100 Other Revenue Total Revenues 0 9,700 Expenditures: 251-581-100 Regular Pay 4,000 251-581-120 Standby Pay 251-581-130 Overtime 100 Subtotal Salaries and Wages 0 4,100 251-581-200 FICA 300 251-581-210 Medicare 100 251-581-220 Unemployment 0 251-581-230 Retirement (PERS) 251-581-240 Group Insurance 251-581-250 Workers' Compensation Ins. 100 Subtotal Employee Benefits 0 500 Total Salaries and Benefits 0 4,600 251-581-320 Professional Services-Engineering 251-581-322 Professional Services-Other 500 251-581-410 Utility Service-Water and Sewer 1,000 251-581-412 Utility Service-Refuse 500 251-581-600 General Supplies 1,000 Total Service and Supplies 0 3,000 Total Operating Expenses 0 7,600 Total Capital 0 0 Total Operating and Capital 0 7,600 Revenues less Expenditures 0 2,100 251-390-500 Transfers From General Fund Fund Balance July 1 0 0 Fund Balance June 30 0 2,100 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 122 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 Expected FY07-08 Budget Revenues: 252-340-100 Landscape Maint Dist Fees 12,000 Interest Earnings 100 Other Revenue Total Revenues 0 12,100 Expenditures: 252-582-100 Regular Pay 7,000 252-582-120 Standby Pay 252-582-130 Overtime 100 Subtotal Salaries and Wages 0 7,100 252-582-200 FICA 400 252-582-210 Medicare 100 252-582-220 Unemployment 100 252-582-250 Workers' Compensation Ins. 200 Subtotal Employee Benefits 0 800 Total Salaries and Benefits 0 7,900 252-582-320 Professional Services-Engineering 252-582-322 Professional Services-Other 500 252-582-410 Utility Water & Sewer 1,500 252-582-412 Utility Service-Refuse 500 252-582-600 General Supplies 1,500 Total Service and Supplies 0 4,000 Total Operating Expenses 0 11,900 Total Capital 0 0 Total Operating and Capital 0 11,900 Revenues less Expenditures 0 200 252-390-500 Transfers From General Fund Fund Balance July 1 0 0 Fund Balance June 30 0 200 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 123 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 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. Account # Description FY06-07 Expected FY07-08 Budget Revenues: 253-340-100 Landscape Maint Dist Fees Interest Earnings Other Revenue Total Revenues 0 0 Expenditures: 253-583-100 Regular Pay Subtotal Salaries and Wages 0 0 Subtotal Employee Benefits 0 0 Total Salaries and Benefits 0 0 Total Service and Supplies 0 0 Total Operating Expenses 0 0 Total Capital 0 0 Total Operating and Capital 0 0 Revenues less Expenditures 0 0 253-390-500 Transfers From General Fund Fund Balance July 1 0 0 Fund Balance June 30 0 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 124 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. Account # Description FY06-07 Expected FY07-08 Budget Revenues: 254-340-100 Landscape Maint Dist Fees Interest Earnings Other Revenue Total Revenues 0 0 Expenditures: Subtotal Salaries and Wages 0 0 Subtotal Employee Benefits 0 0 Total Salaries and Benefits 0 0 Total Service and Supplies 0 0 Total Operating Expenses 0 0 Total Capital 0 0 Total Operating and Capital 0 0 Revenues less Expenditures 0 0 254-390-500 Transfers From General Fund Fund Balance July 1 0 0 Fund Balance June 30 0 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 125 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. Account # Description FY06-07 Expected FY07-08 Budget Revenues: 255-340-100 Landscape Maint Dist Fees Interest Earnings Other Revenue Total Revenues 0 0 Expenditures: Subtotal Salaries and Wages 0 0 Subtotal Employee Benefits 0 0 Total Salaries and Benefits 0 0 Total Service and Supplies 0 0 Total Operating Expenses 0 0 255-585-730 Improvements Other Than 255-585-741 Machinery 255-585-742 Vehicles 255-585-743 Furniture and Fixtures Total Capital 0 0 Total Operating and Capital 0 0 Revenues less Expenditures 0 0 255-390-500 Transfers From General Fund Fund Balance July 1 0 0 Fund Balance June 30 0 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 126 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. Account # Description FY06-07 Expected FY07-08 Budget Revenues: 256-340-100 Landscape Maint Dist Fees Interest Earnings Other Revenue Total Revenues 0 0 Expenditures: Subtotal Salaries and Wages 0 0 Subtotal Employee Benefits 0 0 Total Salaries and Benefits 0 0 Total Service and Supplies 0 0 Total Operating Expenses 0 0 Total Capital 0 0 Total Operating and Capital 0 0 Revenues less Expenditures 0 0 256-390-500 Transfers From General Fund Fund Balance July 1 0 0 Fund Balance June 30 0 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 127 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. Account # Description FY06-07 Expected FY07-08 Budget Revenues: 257-340-100 Landscape Maint Dist Fees Interest Earnings Other Revenue Total Revenues 0 0 Expenditures: Subtotal Salaries and Wages 0 0 Subtotal Employee Benefits 0 0 Total Salaries and Benefits 0 0 Total Service and Supplies 0 0 Total Operating Expenses 0 0 Total Capital 0 0 Total Operating and Capital 0 0 Revenues less Expenditures 0 0 256-390-500 Transfers From General Fund Fund Balance July 1 0 0 Fund Balance June 30 0 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 128 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 2007-2008 129     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 2007-2008 130 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 FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget Revenues: 300-360-100 Interest Earnings 30,176 195,809 300,000 250,000 Bond Proceeds 5,000,000 Miscellaneous Revenues Total Revenues 30,176 5,195,809 300,000 250,000 300-425-720 Cost Sharing-New Animal Shelter Facility 0 300-425-322 Feasibility Study-Community Center/City Hall 0 300-425-720 Buildings 77,692 450,644 5,500,000 1,000,000 300-425-741 Machinery (Records Management) 75,984 64,815 275,000 100,000 300-425-741 Machinery (Disaster Recovery/Software Upgrades/ computer replacements) 150,000 300-425-741 Machinery 20,000 300-425-322 Capital Improvement Plan 0 300-425-730 Improvements (Basement Records) 0 25,000 40,000 300-425-742 Vehicles 13,553 81,000 Total Capital 167,229 515,459 5,800,000 1,391,000 Revenues less Expenditures -137,053 4,680,350 -5,500,000 -1,141,000 300-390-500 Transfer from Other Funds 1,140,000 850,000 135,000 Fund Balance July 1 1,499,182 2,502,129 8,032,479 2,667,479 Fund Balance June 30 2,502,129 8,032,479 2,667,479 1,526,479 Specific projects included in the capital expenditures line items are: If Lyon County proceeds with plans for a regional animal shelter facility, the City may benefit from contributing toward the costs of constructing the facility. The Fund segregated $30,000 in the budget for potential contribution toward a regional animal shelter facility in FY06 and FY07. The appropriation is not included in FY08 but the budget may be amended during the year if the City Council decides to contribute. Expansion of City Hall: The City completed the majority of this project in FY07. Expenditures will be incurred in FY08 to fully complete the project. The project was funded through issuance of debt in the amount of $5 million and approximately $2 million in cash from the capital fund. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 131     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 2007-2008 132 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 2007-2008 133 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 preparing for construction 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. The City is investigating and applying for financial assistance to implement the unfunded mandate, but user rates will need to be increased to pay for a portion of the unfunded mandate. Growth The number of customers served has increased significantly in recent years. Approximately 3,000 customers were on the city water system when the City incorporated on July 1, 2001. The number of customers on the system has more than doubled during this time with an estimated 7,066 customers on the system by June 30, 2008. The following chart shows the number of new connections to the water system since July 1, 2001, including estimates for FY08. Water System New Connections 3000 3309 3966 4980 6083 6634 6816 [PHONE REDACTED] 1103 551 182 250 0 2000 4000 6000 8000 FY02 FY03 FY04 FY05 FY06 FY07 FY08 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 134 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. 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. Rate increases have not been factored into the budget because they were not in effect at the time the budget was adopted. The budget will be adjusted during FY08 to reflect revenue based on the new rates. Capital Improvement Projects The five year capital improvement plan, including capital expenditures authorized in FY08, is detailed in Appendix D: The largest project planned over the next year will be the Groundwater/Surface Water Treatment plant at an estimated total project cost of more than $43 million. The project will span multiple fiscal years and required rate increases and bonding to provide cash for construction. Significant Expenditures and Staffing Changes: Two positions were added in the Public Works Department in FY08. Two Senior Public Works Worker positions were added to provide adequate services for a growing customer base and to oversee the significant capital projects that will be undertaken in the near future. Staffing Levels and Cost Allocation: 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 10.82 FTE are allocated to the fund to perform the services, including an allocation for overhead. Goals and Objectives: Goal: To provide a safe adequate water supply and distribution system to the City of Fernley water customers in the most efficient and cost effective manner as fiscally practical. Objective To construct new water storage tanks for adequate storage and transfer of water to needed areas for improved system delivery capabilities and maintain system pressure equalization. Task Coordinate the design with the engineering team to incorporate future needs and existing conditions. Task Review the existing conditions and prior engineering reports to determine the size and location of the tank. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 135 Task Design the modifications and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. Objective To install water booster pumping station to efficiently deliver water to new storage site(s). Task Coordinate the design with the engineering team to implement the pumping station design. Task Determine the characteristics of the design. Task Design the pumping equipment and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. Objective To install water distribution and transmission mains for adequate transfer of water to needed areas for improved system delivery capabilities and storage sites. Task Coordinate the design with the engineering team to incorporate future needs and existing conditions. Task Review the existing conditions and prior engineering reports to determine the size and alignment of pipelines. Task Design the pipeline alignments and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. Objective To equip new production wells with pumping equipment. Task Coordinate the design with the engineering team to implement the pumping station design. Task Review the testing reports and determine the characteristics of the design. Task Design the pumping equipment and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. Objective To incorporate modeling and GIS mapping for water and utility system planning and upgrading of the City’s water system. Task Coordinate the design parameters with the engineering team. Task Review the existing conditions and prior engineering reports to determine the extent of the modeling and GIS mapping. Task Develop useable reports and mapping for future planning. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 136 Objective To construct new facilities to expand the water distribution system to serve new public facilities. Task Work with other City departments to accommodate construction of new public facilities. Objective To continue compliance with the Bilateral Compliance Agreement with the State of Nevada by continuing with construction of a groundwater arsenic water treatment plant. Task Review preliminary engineering report and coordinate design with engineering team to incorporate future needs and existing conditions. Task Secure Funding. Task Put project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Objective To utilize City of Fernley surface water rights as part of expanding water production by construction of a surface water treatment plant. Task Review preliminary engineering report and coordinate design with engineering team to incorporate future needs and existing conditions. Task Secure funding. Task Put project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test facility and place in service. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 137 The cash flow statement for the water utility follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget CASH FLOW STATEMENT Cash Received from Customers 1,857,837 2,325,752 2,540,000 2,798,000 Service & Supplies -1,027,005 -1,407,417 -1,125,400 -1,653,560 Wages & Benefits -316,079 -370,977 -579,100 -799,800 Non-Operating Revenues 63,024 46,941 35,000 34,000 Cash from Operations 577,777 594,299 870,500 378,640 Proceeds from Grants 0 Proceeds from Bond Issue 44,918,068 Cash Received from Other Funds Cash Advances to Other Funds Intergovernmental Transfer -800,000 Interest Paid on Debt -34,203 -26,432 -535,000 -1,900,000 Interest Income 132,032 315,950 860,000 1,500,000 Deferred Charge -6,107 -6,087 -400,000 Principal Payments on Long Term Debt -135,000 -145,000 -135,000 -135,000 Capital Contributions 2,026,164 1,014,573 800,000 1,175,000 Developer Oversize Agreement 122,988 149,452 In Lieu Of Water Rights Fees 693,236 329,970 350,000 350,000 Grants for Construction Disposition of Capital Asset 7,030 Acquisition of Assets & Projects -738,508 -1,475,577 -3,139,750 -50,323,785 Increase (Decrease) in Cash 2,645,409 -48,852 43,588,818 -48,955,145 Cash & Equivalents July 1 6,462,480 9,107,889 9,059,037 52,647,855 Cash & Equivalents June 30 9,107,889 9,059,037 52,647,855 3,692,710 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 138 The summarized income statement for the water utility follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget SUMMARY INCOME STATEMENT Operating Revenues: 510-370-100 Water Use Fees 1,699,220 1,991,035 2,420,000 2,420,000 510-370-300 Material & Labor Charges 260,850 173,453 100,000 373,000 510-370-310 PW Inspection Fees 15,381 37,428 20,000 5,000 510-370-400 Engineer Review Fees Operating Revenues 1,975,451 2,201,916 2,540,000 2,798,000 Operating Expenses: Salaries, Wages & Benefits 455,586 513,064 579,100 799,800 Service & Supplies 944,090 1,144,496 1,125,400 1,653,560 Depreciation 701,678 739,799 750,000 800,000 Total Operating Expenses 2,101,354 2,397,359 2,454,500 3,253,360 Operating Income or Loss -125,903 -195,443 85,500 -455,360 Non-Operating Revenues & Expenses 510-380-100 Interest Income 149,709 345,511 860,000 1,500,000 510-800-860 Interest Expense -33,077 -25,224 -535,000 -1,900,000 510-380-200 Rental Income 1,500 8,250 9,000 9,000 510-380-900 Miscellaneous Income 61,524 38,691 26,000 25,000 510-370-400 Engineer Review Fees 510-370-500 Assessment Fees 510-380-500 In Lieu of Water Rights Fees 693,236 329,970 350,000 350,000 Intergovernmental Transfer 510-380-400 Sale of Capital Assets 2,210 Total Non-Operating Income & Expenses 875,102 697,198 710,000 -16,000 Capital Contributions In: 510-395-900 Developer Contribution-Donner Trails 105,392 62,920 50,000 50,000 510-395-910 Customer Constributions-Hookups 1,875,000 881,823 750,000 1,125,000 510-395-920 Capital Grant BOR 151,164 132,750 510-395-930 Desert Lakes Reimbursements 17,596 86,209 0 0 510-395-934 Whippletree Assessments 324 510-395-940 Developer Donated Infrastructure 1,432,404 2,633,534 5,000,000 5,000,000 510-395-950 Developer Donated Water Rights 3,615,650 10,501,525 10,000,000 10,000,000 Intergovernmental Transfer -800,000 Other Grants Total Capital Contributions In 7,197,206 13,499,085 15,800,000 16,175,000 Net Income or Loss 7,946,405 14,000,840 16,595,500 15,703,640 Beginning Retained Earnings 3,763,340 9,479,305 23,480,145 40,075,645 Adjustment for Change in Capitalization Ending Retained Earnings 11,709,745 23,480,145 40,075,645 55,779,285 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 139 The detail of expenditures in the water utility enterprise fund follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget DETAIL OPERATING EXPENSES: 510-810-100 Regular Pay 248,829 301,979 310,000 407,900 510-810-120 Standby Pay 3,729 5,338 8,000 8,000 510-810-130 Overtime 23,793 22,692 24,000 25,000 510-810-140 Annual Leave Pay 20,065 16,944 15,000 30,500 510-810-150 Sick Leave Pay 12,655 14,611 20,000 28,100 510-810-160 Holiday Pay 10,637 11,142 15,000 22,500 Total Salaries and Wages 319,708 372,706 392,000 522,000 510-810-200 FICA 73 55 300 200 510-810-210 Medicare 3,518 4,627 5,700 7,100 510-810-220 Unemployment 1,991 2,369 3,000 4,900 510-810-230 Retirement-PERS 54,247 58,838 75,000 99,600 510-810-240 Group Insurance 61,043 59,113 90,000 139,700 510-810-250 Workers Compensation 13,853 13,650 11,800 15,800 510-810-260 Other Benefits 1,153 1,706 1,300 800 Total Employee Benefits 135,878 140,358 187,100 277,800 Total Salaries and Benefits 455,586 513,064 579,100 799,800 510-810-300 Professional Services-City Attorney 16,910 15,501 17,000 0 510-810-310 Professional Services-Legal 1,088 840 0 5,000 510-810-320 Professional Services-Engineering 99,268 90,029 50,000 50,000 510-810-322 Professional Services-Other 505 6,323 15,000 2,500 510-810-324 Professional Services-Environmental 0 500 3,000 510-810-325 Professional Services-PW Inspections 15,033 33,210 25,000 5,000 510-810-328 Professional Services-Auditing/Acct Asst 8,333 12,666 17,000 15,000 510-810-340 Tech Services-Lab Analysis 16,914 15,046 22,000 20,000 510-810-342 Tech Services-Other 5,740 4,147 9,000 7,000 510-810-412 Utility Service Refuse 1,585 1,774 2,000 2,000 510-810-430 Service Repair and Maintenance 31,784 94,675 10,000 35,000 510-810-431 Road Maintenance (contract service) 0 5,331 1,000 6,000 510-810-441 Rental 14,524 56,038 25,000 25,000 510-810-520 Insurance 23,593 25,724 35,000 66,000 510-810-530 Communications 3,447 4,001 5,000 6,000 510-810-540 Advertising 2,428 1,296 1,500 3,500 510-810-550 Printing and Postage 17,458 20,831 25,000 25,000 510-810-580 Travel and Training 3,869 2,947 4,000 5,000 510-810-581 Dues and Memberships 584 656 1,500 1,500 510-810-585 Educational Assistance Program 0 0 1,000 1,000 510-810-600 General Supplies 264 0 510-810-601 Office Supplies 5,180 7,571 9,000 9,000 510-810-605 Minor Equipment 14,401 2,600 8,300 45,460 510-810-610 Automotive Supplies 10,256 13,336 20,000 36,000 510-810-612 15,070 510-810-614 Plant/Shop/Maint Supplies 74,564 57,688 108,000 108,000 510-810-615 Customer Hookup Supplies (see revenue) 234,748 206,837 100,000 373,000 510-810-616 Safety Supplies 2,477 1,804 3,000 3,000 510-810-618 Supplies-Well Head Protection Program 266 0 500 5,000 510-810-621 Natural Gas 3,512 4,586 3,500 4,000 510-810-622 Electricity 252,371 320,646 425,000 600,000 510-810-623 Propane 102 0 100 100 510-810-626 Gasoline 26,813 51,566 20,000 25,000 510-810-640 Books and Periodicals 1,995 1,517 1,500 1,500 510-810-642 Permits and Licenses 4,812 4,000 10,000 10,000 510-810-698 Water Rights Protection 49,266 66,240 150,000 150,000 Total Service & Supplies 944,090 1,144,496 1,125,400 1,653,560 510-810-800 Depreciation 701,678 739,799 750,000 800,000 510-800-860 Interest Expense 33,077 25,224 535,000 1,900,000 Total Expenses 2,134,431 2,422,583 2,989,500 5,153,360 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 140 Analysis: Use fees are projected to remain unchanged and do not reflect a rate increase enacted shortly after the final budget was approved. User fees increased approximately 250% under a phased implementation over a five year period. The rate structure was also changed to provide a more equitable split between various consumer groups such as single family homes, master metered multi-family dwellings, and commercial accounts. Connection fees charged to developers increased 244% to provide funding for new customers. Salaries and Wages increased due to additional positions and change in the allocation of personnel costs and projected step increases for existing personnel. The largest capital project is construction of a water treatment facility and associated conveyance systems. Additional projects for system replacements are also slated for FY08. 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 2007-2008 141 Sewer Utility Fund Organizational Chart: Sewer Enterprise Fund FY2007/2008 Expenditures Capital, $9,018,825 , 81% Interest, $250,000 , 2% Salaries and Wages, $458,100 , 4% Payroll Tax and Benefits, $237,000 , 2% Depreciation, $580,000 , 5% Operating Expenses, $708,700 , 6% 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 Technicians (2.5FTE) Office Assistant II Senior Public Works Workers ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 142 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 6,952 by June 30, 2007. The following chart shows the number of new connections to the sewer system since July 1, 2001, including estimates for FY08. Sewer System New Connections 3000 3301 3950 4957 6049 6600 6702 [PHONE REDACTED] 1092 551 102 250 0 2000 4000 6000 8000 FY02 FY03 FY04 FY05 FY06 FY07 FY08 (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. Rate increases have not been factored into the budget because they were not implemented at the time the budget was approved. The revenue estimates will be adjusted during FY08. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 143 Capital Expenditures: The capital expenditures in the FY08 budget are listed in the Capital Improvement Plan in Appendix D of this report. The largest projects are the Fernley Interceptor Upgrade Project and the Highway 50 Liftstation Project. Significant Expenditures and Staffing Changes: Two positions were added in the Public Works Department in FY08. Two full time Senior Public Works Worker positions were added to provide adequate service for a growing customer base and the significant capital projects that will be undertaken in the near future. Staffing Levels and Cost Allocation: The Sewer Utility enterprise fund includes personnel allocated at the noted percentages in appendices A through C. A total of 9.02 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 To provide engineering and GIS services for planning and assessment of the existing collection system. Task Complete surveying, mapping, flow analysis and correlation, to allow model generation and analysis of the sewer collection infrastructure. Task Review the existing conditions of a portion of the City’s collection system through video inspections. Task Compile collected information into a database that can be set up in the GIS system and shared with the Sewer Model. Task Develop a Master Plan Report for planning and budgeting of system upgrades. Objective To complete upgrades of existing facilities to improve efficiencies and reduce operation and maintenance (O&M) costs. Task Develop plans and specifications and bid documents for planned upgrades to existing facilities as well as identifying costs associated with changing current City policy regarding ownership of sanitary sewer laterals. Task Advertise and solicit bids from contractors to complete planned work. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 144 Task Obtain authorization from City Council to proceed with construction. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Start up and verify operation of upgrades to facilities. Objective To construct new facilities to expand the sewer collection system to serve public facilities. Task Work with other City departments to accommodate construction of new public facilities. Objective To make repairs to existing sewer lift stations as part of an ongoing program to continually maintain and improve existing facilities. Task Assess facilities with greatest need for repairs. Task Select necessary repairs to appropriate facilities. Task Coordinate the repairs with City staff or outside contractors. Task Start up and monitor operations. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 145 The cash flow statement for the sewer utility enterprise fund follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget CASH FLOW STATEMENT Cash Received from Customers 1,414,528 1,683,535 1,660,500 1,655,500 Service & Supplies -495,372 -347,242 -575,200 -708,700 Wages & Benefits -305,748 -146,220 -534,000 -695,100 Miscellaneous Income 0 12,500 1,000 0 Cash from Operations 613,408 1,202,573 552,300 251,700 Proceeds from Grants Proceeds from Bond Issue 5,551,671 Deferred Charge -44,000 Cash Received from Other Funds Cash Advanced to Other Funds Developer Agreements 18,799 24,660 Interest Expense -43,729 -39,156 -101,000 -250,000 Interest Income 129,157 304,633 410,000 350,000 Principal Payments on Long Term Debt -113,173 -117,745 -115,436 -115,436 Capital Contributions 2,182,969 1,120,919 1,041,000 1,633,000 Grants for Construction Acquisition of Assets & Projects -895,510 -1,857,982 -6,844,650 -9,018,825 Increase (Decrease) in Cash 1,891,921 637,902 449,885 -7,149,561 Cash & Equivalents July 1 6,473,286 8,365,207 9,003,109 9,452,994 Cash & Equivalents June 30 8,365,207 9,003,109 9,452,994 2,303,433 The summary income statement for the sewer utility enterprise fund follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget SUMMARY INCOME STATEMENT Operating Revenues: 520-370-100 Sewer Use Fees 1,425,278 1,648,640 1,650,000 1,650,000 520-370-300 Material and Labor Charges 796 33 500 500 520-370-310 PW Inspection Fees 15,381 37,428 10,000 5,000 Miscellaneous Operating Revenues 1,441,455 1,686,101 1,660,500 1,655,500 Operating Expenses: Salaries, Wages & Benefits 440,013 483,433 534,000 695,100 Service & Supplies 499,040 506,921 575,200 708,700 Depreciation 528,916 503,744 580,000 580,000 Total Operating Expenses 1,467,969 1,494,098 1,689,200 1,983,800 Operating Income or Loss -26,514 192,003 -28,700 -328,300 Non-Operating Revenues & Expenses 520-380-100 Interest Income 145,033 337,837 410,000 350,000 520-800-860 Interest Expense -41,464 -36,800 -101,000 -250,000 520-380-900 Miscellaneous Income 1,000 520-380-400 Disposition of Assets 12,500 Total Non-Operating Income & Expenses 103,569 313,537 310,000 100,000 Capital Contributions In: 520-395-900 Developer Contribution-Donner Trails 11,710 7,201 22,000 22,000 520-395-910 Customer Contributions-Hookups 2,182,969 1,120,919 924,000 1,386,000 520-395-930 Desert Lakes Reimbursement 7,089 17,459 0 75,000 520-395-933 East Lift Station Assessment 12,767 30,000 50,000 520-395-934 Sewer Interceptor Assessment 36,328 65,000 100,000 520-395-940 Developer Donated Infrastructure 1,065,523 2,469,666 5,000,000 5,000,000 Total Capital Contributions In 3,267,291 3,664,340 6,041,000 6,633,000 Net Income or Loss 3,344,346 4,169,880 6,322,300 6,404,700 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 146 The detail expenditures for the sewer enterprise fund follow: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget DETAIL OPERATING EXPENSES: 520-810-100 Regular Pay 238,771 279,771 310,000 352,300 520-810-120 Standby Pay 4,277 5,641 10,800 10,800 520-810-130 Overtime 23,761 21,581 24,100 25,000 520-810-140 Annual Leave Pay 19,071 17,282 15,000 26,300 520-810-150 Sick Leave Pay 12,482 13,683 20,000 24,300 520-810-160 Holiday Pay 10,427 10,815 15,000 19,400 Total Salaries and Wages 308,789 348,773 394,900 458,100 520-810-200 FICA 73 55 100 200 520-810-210 Medicare 3,443 4,427 5,700 6,200 520-810-220 Unemployment 1,923 2,271 2,000 4,300 520-810-230 Retirement-PERS 52,799 56,403 56,900 85,900 520-810-240 Group Insurance 58,592 57,133 61,100 117,200 520-810-250 Workers Compensation 13,332 12,899 11,800 13,900 520-810-260 Other Benefits 1,062 1,472 1,500 1,500 Total Employee Benefits 131,224 134,660 139,100 237,000 Total Salaries and Benefits 440,013 483,433 534,000 695,100 520-810-300 Professional Services-City Attorney 19,728 15,501 17,000 0 520-810-310 Professional Services-Legal 360 0 0 5,000 520-810-320 Professional Services-Engineering 119,567 54,688 50,000 50,000 520-810-322 Professional Services-Other 370 8,680 14,000 4,000 520-810-324 Professional Service-Environmental 0 0 3,000 520-810-325 Professional Services-PW Inspections 14,996 32,686 25,000 5,000 520-810-328 Professional Services-Auditing/Acct Asst 8,334 12,667 17,000 15,000 520-810-340 Tech Services-Lab Analysis 12,641 9,605 10,000 10,000 520-810-342 Tech Services-Other 6,302 3,111 10,000 10,000 520-810-412 Utility Service Refuse 1,395 1,384 5,000 10,000 520-810-426 Contract-Sewer Cleaning & Inspection 975 9,803 5,000 30,000 520-810-430 Service Repair and Maintenance 32,524 9,005 20,000 35,000 520-810-431 Service Road Maintenance 6,000 520-810-435 Equipment Rental 2,550 520-810-441 Rental 10,586 11,786 5,000 15,000 520-810-520 Insurance 22,899 25,356 40,000 70,000 520-810-530 Communications 3,799 4,354 6,000 6,000 520-810-540 Advertising 575 956 2,000 2,500 520-810-550 Printing and Postage 17,184 22,362 20,000 25,000 520-810-580 Travel and Training 2,909 1,032 4,000 5,000 520-810-581 Dues and Memberships 326 173 500 1,500 520-810-585 Educational Assistance Program 60 0 500 1,000 520-810-600 General Supplies 608 0 0 0 520-810-601 Office Supplies 5,246 7,400 8,000 10,000 520-810-605 Minor Equipment 6,729 959 10,000 24,000 520-810-610 Automotive Supplies 7,231 9,646 12,000 17,000 520-810-612 Buildings and Grounds Supplies 414 14,766 520-810-614 Plant/Shop/Maint Supplies 40,829 58,810 50,000 65,000 520-810-616 Safety Supplies 1,646 1,816 3,000 3,000 520-810-621 Natural Gas 3,565 5,046 5,000 4,000 520-810-622 Electricity 133,034 152,756 205,000 230,000 520-810-623 Propane 152 51 200 200 520-810-626 Gasoline 15,147 26,841 20,000 30,000 520-810-640 Books and Periodicals 714 719 1,000 1,500 520-810-642 Permits and Licenses 5,645 4,962 10,000 15,000 Total Service & Supplies 499,040 506,921 575,200 708,700 520-810-800 Depreciation 528,916 503,746 580,000 580,000 520-800-860 Interest 41,464 36,800 101,000 250,000 Total Expenses 1,509,433 1,530,900 1,790,200 2,233,800 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 147 Analysis: Use fees are projected to remain unchanged for FY08, before increases in revenues expected due to a planned rate increase in FY08. The rate increase was enacted after the final approval of the budget, therefore revenues will be adjusted accordingly during FY08. Rate increases for user fees are approximately 25% over five years. Development charges increased approximately 90%. Salaries and Wages increased due to added personnel and a change in allocation of personnel costs to the sewer function and projected step increases for existing personnel. See the Capital Expenditure Summary in Appendix D for a full list of capital expenditures. The largest capital items are construction of a sewer interceptor for approximately $5.3 million and a lift station for approximately $2.5 million. These projects are funded through proceeds from a bond in FY06-07 and existing cash balances. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 148 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 FY08 budget: Fund/Description: FY2008 Alternative Water Utility Enterprise Fund 3/4 Ton Pickup 25,000 $ Utility Bed for Pickup 7,500 $ Shop Tenant Improvements (10% of $32,000) 3,200 $ Equipment Storage Building (10% of $189,000) 18,900 $ Small Equipment Tilt Trailer (10% of $6,000) 600 $ 10 Wheel Dump Truck (10% of $130,000) 13,000 $ Angle Broom (10% of $6,500) 650 $ Asphalt Hotbox Trailer (10% of $35,000) 3,500 $ Alternative Water Transmission Mains 500,000 $ Construction Water Filling Stations 160,000 $ Alternative Water Master Plan 50,000 $ Subtotal Alternative Water Fund 782,350 $ Significant Expenditures and Staffing Changes: The City intends to construct an alternative (non-potable) water distribution main to connect the Alternative Water Distribution Facility to available distributions systems in developments and for other uses such a construction. FY08 is the first year the system will be operational, therefore FY08 is the first year with budgeted operation and ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 149 maintenance costs. User fees will be established and implemented in conjunction with completion of construction of facilities and startup of operations. Goals and Objectives: Goal: To provide a safe adequate alternative water supply and distribution to the City of Fernley alternative water customers in the most efficient and cost effective manner as fiscally practical. Objective To utilize the City of Fernley surface water rights as part of expanding water production by constructing an alternate water distribution center. Task Coordinate the design with the engineering team to incorporate future needs and existing conditions. Task Review the existing conditions and prior engineering reports to determine the size and alignment of pipelines. Task Design the pipeline alignment and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. Objective To install alternative water distribution and transmission mains for adequate transfer of non-potable water to needed areas for improved system delivery capabilities and storage sites, including sites for drawing water for construction use. Task Coordinate the design with the engineering team to incorporate future needs and existing conditions. Task Review the existing conditions and prior engineering reports to determine the size and alignment of pipelines. Task Design the pipeline alignment and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. Objective To construct new water storage tanks for adequate storage and transfer of alternative water to needed areas for improved system delivery capabilities and maintain system pressure equalization. Task Coordinate the design with the engineering team to incorporate future needs and existing conditions. Task Review the existing conditions and prior engineering reports to determine the size and location of the tank. Task Design the modifications and put the project out to bid. Task Coordinate construction activities to ensure the construction is in compliance with design specifications. Task Test the facility and place it into service. Objective To incorporate modeling and GIS mapping for water and utility system planning and upgrading of the City’s non-potable water system. Task Coordinate the design parameters with the engineering team. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 150 Task Review the existing conditions and prior engineering reports to determine the extent of the modeling and GIS mapping. Task Develop useable reports and mapping for future planning. Objective To construct new facilities to expand the alternative water distribution system to serve new public facilities. Task Work with other City departments to accommodate construction of new public facilities. ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 151 The cash flow statement for the Alternative Water Utility Enterprise Fund follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget CASH FLOW STATEMENT Cash Received from Customers 0 0 0 0 Service & Supplies 0 0 0 -240,100 Wages & Benefits 0 0 0 -193,800 Miscellaneous Income 0 0 0 0 Cash from Operations 0 0 0 -433,900 Intergovernmental Transfers 800,000 Interest Income 693 13,703 40,000 20,000 Capital Contributions 131,300 117,000 130,000 130,000 Acquisition of Assets & Projects -102,000 -782,350 Increase (Decrease) in Cash 131,993 930,703 68,000 -1,066,250 Cash & Equivalents July 1 0 131,993 1,062,696 1,130,696 Cash & Equivalents June 30 131,993 1,062,696 1,130,696 64,446 The summary income statement for the Alternative Water Utility Enterprise Fund follows: Account # Description FY04-05 Actual FY05-06 Actual FY06-07 Expected FY07-08 Budget SUMMARY INCOME STATEMENT Operating Revenues: Operating Revenues 0 0 0 0 Operating Expenses: Salaries, Wages & Benefits 0 0 0 193,800 Service & Supplies 0 120 0 240,100 Depreciation 0 580 0 200,000 Total Operating Expenses 0 700 0 633,900 Operating Income or Loss 0 -700 0 -633,900 Non-Operating Revenues & Expenses 530-380-100 Interest Income 990 19,433 40,000 20,000 Total Non-Operating Income & Expenses 990 19,433 40,000 20,000 Capital Contributions In: 530-395-910 Customer Contributions-Hookups 131,300 117,000 130,000 130,000 530-395-940 Developer Donated Infrastructure 319,036 300,000 Intergovernmental Transfer 800,000 Total Capital Contributions In 131,300 1,236,036 430,000 130,000 Net Income or Loss 132,290 1,254,769 470,000 -483,900 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 152 (this page intentionally left blank) ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 153  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 2007-2008 154 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 2007-2008 155 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 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 Assistant Admin. Services Director (Deputy Treasurer) Associate Engineer 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 2007-2008 156 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 ELECTED OFFICIALS: Mayor 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 Subtotal Elected Officials 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 Subtotal Judicial 0.20 0.20 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 Senior Office Assistant 1.00 Administrative Specialist 1.00 1.00 Office Assistant II (1/2 Animal Control) 0.50 Subtotal Office of the City Manager 1.00 1.00 1.00 1.00 2.00 2.00 2.50 OFFICE OF THE CITY ATTORNEY: City Attorney 1.00 Legal Secretary 1.00 Subtotal Office of the City Manager 2.00 OFFICE OF THE CITY CLERK: City Clerk 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 Court Clerk (moved from Adm Srv Dpt) 1.00 Court Clerk (moved from Adm Srv Dpt) 1.00 Office Assistant II (regular full time) 1.00 Office Assistant II (regular part-time) 0.75 0.75 0.75 0.50 1.10 1.10 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 FINANCE DEPARTMENT (CITY TREAS) Finance Director (City Treasurer) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Asst Finance Director (Deputy City Treas.) 1.00 1.00 1.00 Business Office Manager 1.00 1.00 1.00 1.00 1.00 Administrative Specialist 1.00 1.00 Senior Office Assistant 1.00 1.00 1.00 3.00 3.00 Information Technology Specialist 1.00 Technical Specialist 2.00 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 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 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 157 Department/Position FY02 FY03 FY04 FY05 FY06 FY07 FY08 COMMUNITY DEVELOPMENT Community Development Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Planner 1.00 1.00 1.00 Assistant/Associate Planner 1.00 1.00 1.00 1.00 Building Official 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Plans Examiner 1.00 1.00 1.00 Plans Examiner 1.00 Building Inspector 1.00 2.00 2.00 4.00 5.00 5.00 3.00 Technical Specialist/Office Supervisor 1.00 1.00 Office Assistant 1.00 1.00 1.00 2.00 2.00 Permit Technician 2.00 3.00 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 Community Development 4.50 7.00 7.00 12.00 16.00 16.00 14.00 Parks and Recreation Department: Parks and Recreation Director 1.00 1.00 1.00 1.00 Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Maintenance Worker 1.00 Maintenance Worker 2.00 2.00 2.00 3.00 4.00 5.00 5.00 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 Vector Control Supervisor 1.00 1.00 1.00 Animal Control Officer 1.00 Animal Control Officer (regular part time) 0.50 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 13.97 PUBLIC WORKS DEPARTMENT: Public Works Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Public Works Director 1.00 1.00 Public Works Field Superintendent 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 Technical Specialist 1.00 Office Assistant II 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 Sr. WWTP Operator 1.00 1.00 1.00 Treatment Plant Operator 1.00 1.00 1.00 2.00 Senior Public Works Worker 2.00 Public Works Worker I (II) 1.00 1.00 1.00 7.00 7.00 6.00 5.00 Water Meter Reader 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 TOTAL 33.60 39.45 40.62 51.89 60.90 65.38 70.12 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 158 Appendix C – Allocation Percentages for Personnel Range Position Mayor/Council City Manager's Office City Attorney's Office Finance City Clerk's Office Community Development Animal Services Parks Vector Control Streets Municipal Court Water Sewer Non-Potable Park Maint Dist Ord. 2001-007 Mayor 85% 5% 5% 5% Council Members 90% 4% 4% 2% Contract Municipal Court Judge 100% Contract (CM-CA) City Manager 88% 5% 5% 2% 121 Admin Specialist 60% 20% 20% 110 Office Asst II (Receptionist 1/2) 90% 5% 5% Contract (CM-CA) City Attorney 40% 20% 20% 20% 121 Legal Secretary 40% 20% 20% 20% 136 City Clerk 78% 10% 5% 5% 2% 119 Deputy City Clerk 78% 10% 5% 5% 2% 115 Court Clerk II 100% 115 Court Clerk II 100% 110 Office Asst II (Recording Secretary) (PT) 88% 5% 5% 2% 110 Office Assistant II (Clerk's Office) (PT) 88% 5% 5% 2% 148 Finance Director/City Treasurer 30% 30% 30% 10% 134 Accountant/Deputy City Treasurer 34% 33% 33% 6% 121 Administrative Specialist 30% 30% 30% 10% 128 Information Technology Specialist 60% 20% 20% 117 Technical Specialist 34% 33% 33% 115 Accounting Technician II 10% 40% 40% 10% 115 Accounting Technician II 10% 40% 40% 10% 110 Accounting Technician II (Part Time) 10% 40% 40% 10% 148 Community Dev. Director 100% 134 Senior Planner 100% 130 Associate Planner 100% 141 Building Official 100% 123 Senior Plans Examiner 100% 121 Plans Examiner 100% 121 Office Supervisor 100% 112 Permit Technician (3 positions) 100% 123 Building Inspector 3 100% 121 Building Inspector 2 100% 117 Building Inspector 1 100% 110 Office Assistant II 100% 141 Parks and Recreation Director 33% 34% 33% 119 Maintenance Supervisor 100% 113 Senior Maintenance Worker 100% 111 Maintenance Worker (5 positions) 100% Fixed $8.06 Maintenance Helpers (Part Time) 100% 114 Animal Control Officer (2 postions) 100% 110 Office Assistant (Part Time) 100% 123 Vector Control Supervisor 100% 102 Vector Control Assistant 100% 148 Public Works Director 20% 35% 35% 10% 134 Assistant Public Works Director 20% 35% 35% 10% 134 Public Works Field Superintendent 20% 35% 35% 10% 125 Public Works Supervisor 20% 35% 35% 10% 117 Technical Specialist 20% 35% 35% 10% 117 Technical Specialist 20% 35% 35% 10% 120 Mechanic 20% 35% 35% 10% 119 Senior Public Works Worker 100% Senior Public Works Worker 80% 20% Public Works Worker (3 positions) 100% 117 Water Meter Reader (2 positions) 100% 122 Treatment Plant Operator 100% 116 Treatment Plant Operator 100% Public Works Worker 100% Public Works Worker 100% Full Time Equivalent (FTE) 5.35 1.93 0.80 2.13 3.10 14.00 2.33 10.31 1.33 3.40 3.00 10.82 9.02 2.60 70.12 Total FTE Total Number of Positions: Descriptions Positions FTE Elected Officials 6 6.00 Contract (Part time) 1 0.40 Full Time Employees 59 59.00 Regular Part Time Employees 3 1.75 Part Time/Seasonal Employees 7 2.97 Total 75 70.12 ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 159 Appendix D – Five-Year Capital Improvement Plan Fund/Description: FY2008 FY2009 FY2010 FY2011 FY2012 General Fund Administration: Equipment Replacements 2,000 $ 2,000 $ 2,000 $ 2,000 $ Subtotal Administration - $ 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 $ 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 $ Community Development (Building & Planning): Equipment Replacements 2,000 $ 2,000 $ 2,000 $ 2,000 $ Subtotal Community Development - $ 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 - $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 160 Fund/Description: FY2008 FY2009 FY2010 FY2011 FY2012 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 700,000 $ 200,000 $ Subtotal RCT District #2 700,000 $ - $ - $ 200,000 $ - $ Streets Fund 3/4 Ton Pickup 25,000 $ Utility Bed for Pickup 7,500 $ Street Sweeper Pickup Mounted Street Striper 38,000 $ Storm Drainage Master Plan 30,000 $ Crack Seal Program 125,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ Slurry, Seal Coat and Patch Program 250,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ Rancho Sierra Design (Lily Lane, Ambee Way, Raven Way) 58,900 $ 677,352 $ West Street/Diane Way Reconstruction (Contruction, Design Co 404,628 $ Lyon Drive Phase I Reconstruction 789,277 $ Lyon Drive Phase II Reconstruction 72,251 $ 830,992 $ Willow Way, Curry, Cedar Reconstruction 812,310 $ Willow Way Rehabilitation 40,706 $ 254,416 $ Hardie Lane Phase I Reconstruction 112,301 $ 935,842 $ Hardie Lane Phase II Reconstruction 144,009 $ 1,200,079 $ Shadow Lane Reconstruction 70,854 $ 340,097 $ Palomino Drive Reconstruction 15,380 $ 83,053 $ Sierra Street Reconstruction 18,547 $ 100,543 $ Pioneer Court Reconstruction 16,315 $ 88,102 $ 6th Street Reconstruction 62,367 $ 7th Street Reconstruction 50,580 $ G Street Reconstruction 35,366 $ Subtotal Streets Fund 1,011,279 $ 3,562,938 $ 1,634,267 $ 1,621,175 $ 1,060,108 $ Total Special Revenue Funds 1,711,279 $ 3,562,938 $ 1,834,267 $ 2,021,175 $ 1,060,108 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 161 Fund/Description: FY2008 FY2009 FY2010 FY2011 FY2012 Capital Project Funds: Capital Fund: City Hall Expansion 1,000,000 $ Records Management Hardware/Software 100,000 $ Hardware/Software upgrades and implementation of Technolog 150,000 $ Chevy Colorado - Parks and Recreation Director 13,000 $ Ford Escape - Fleet Vehicle City Hall 18,000 $ Chevy Silverado Full Size Pickup-New Parks Employee 21,000 $ Chevy Colorado - Animal Control (re-using existing Box/Cages) 13,000 $ 1/2 Ton Full Size 4WB Extended Cab Pickup-CDD 16,000 $ Tractor 20,000 $ Equipment Replacements/Technology Improvements 100,000 $ 100,000 $ 100,000 $ 100,000 $ Basement Improvements-Records Management 40,000 $ Subtotal Capital Fund 1,391,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ Total Capital Project Funds 1,391,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 162 Fund/Description: FY2008 FY2009 FY2010 FY2011 FY2012 Enterprise Funds: Water Utility Enterprise Fund 3/4 Ton Pickup 25,000 $ Utility Bed for Pickup 7,500 $ Shop Tenant Improvements (45% of $32,000) 14,400 $ Equipment Storage Building (45% of $189,000) 85,050 $ Small Equipment Tilt Trailer (45% of $6,000) 2,700 $ 10 Wheel Dump Truck (45% of $130,000) 58,500 $ Angle Broom (45% of $6,500) 2,925 $ Asphalt Hotbox Trailer (45% of $35,000) 15,750 $ Vehicle/Machinery Replacements 250,000 $ 450,000 $ 450,000 $ 450,000 $ Groundwater/Surface Water Treatment Plant 42,000,000 $ Raw Water Supply Infrastructure 6,500,000 $ 6,500,000 $ Potable Water Distribution Infrastructure ($5M) - $ 1,000,000 $ Water Tanks Interior Coating (NE, Sage, Ricci) 15,000 $ 150,000 $ 150,000 $ 150,000 $ Ricci Tank Exterior Coating Repair 80,000 $ Well Building Air Conditioning Upgrades 100,000 $ SCADA 150,000 $ Water Master Plan Update 30,000 $ Well Electrical Retrofits 50,000 $ Transmission Main Rehabilitation 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ Well 12 Pump Station and Transmission Main ($1.425M) 1,425,000 $ Well 4 Pump Station Conversion 586,960 $ Mesa Drive Tansmission Main 450,000 $ Well 15 Pump Station and Transmission Main ($1.6M) 1,601,000 $ Micci/Mull Transmission Main (610000) 610,000 $ Well 10 Pump Station and Transmission Main 1,425,000 $ Ricci Lane Transmission Main 350,000 $ Canal Transmission Main 610,056 $ Additional Ricci Tank Storage 350,388 $ Surface Water Treatment Plant Expansion 20,000,000 $ Subtotal Water Utility Fund 50,323,785 $ 13,561,000 $ 1,760,444 $ 800,000 $ 20,650,000 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 163 Fund/Description: FY2008 FY2009 FY2010 FY2011 FY2012 Sewer Utility Enterprise Fund: 3/4 Ton Pickup 25,000 $ Utility Bed for Pickup 7,500 $ 3/4 Ton Pickup 25,000 $ Utility Bed for Pickup 7,500 $ Shop Tenant Improvements (45% of $32,000) 14,400 $ Equipment Storage Building (45% of $189,000) 85,050 $ Small Equipment Tilt Trailer (45% of $6,000) 2,700 $ 10 Wheel Dump Truck (45% of $130,000) 58,500 $ Angle Broom (45% of $6,500) 2,925 $ Asphalt Hotbox Trailer (45% of $35,000) 15,750 $ Sewer Main Rehabilitation 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ Lateral Rodder 5,000 $ Vehicle/Equipment Replacements 250,000 $ 250,000 $ 250,000 $ 250,000 $ East WWTP Aerator Upgrade 29,500 $ East WWTP Equipment Storage Facility 90,000 $ Sewer Master Plan Update 30,000 $ West Lift Station Upgrade 620,000 $ 95A Interceptor - Manhole 19 - Front - Manhole 345 5,300,000 $ Highway 50 Lift Station 2,500,000 $ SCADA Upgrade 150,000 $ 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 9,018,825 $ 6,000,000 $ 8,190,000 $ 450,000 $ 27,030,000 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 164 Fund/Description: FY2008 FY2009 FY2010 FY2011 FY2012 Alternative Water Utility Enterprise Fund 3/4 Ton Pickup 25,000 $ Utility Bed for Pickup 7,500 $ Shop Tenant Improvements (10% of $32,000) 3,200 $ Equipment Storage Building (10% of $189,000) 18,900 $ Small Equipment Tilt Trailer (10% of $6,000) 600 $ 10 Wheel Dump Truck (10% of $130,000) 13,000 $ Angle Broom (10% of $6,500) 650 $ Asphalt Hotbox Trailer (10% of $35,000) 3,500 $ Alternative Water Transmission Mains 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ Construction Water Filling Stations 160,000 $ Alternative Water Master Plan 50,000 $ Subtotal Alternative Water Fund 782,350 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ Total Enterprise Funds 60,124,960 $ 20,061,000 $ 10,450,444 $ 1,750,000 $ 48,180,000 $ Total Capital Expenditures 63,227,239 $ 23,733,938 $ 12,394,711 $ 3,881,175 $ 49,350,108 $ ---PAGE BREAK--- City of Fernley Annual Budget For Fiscal Year 2007-2008 165 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 2007-2008 166 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 2007-2008 167 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 2007-2008 168 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 2007-2008 169 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 2007-2008 170 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 2007-2008 171 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 2007-2008 172 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 2007-2008 173 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 2007-2008 174 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 2007-2008 175 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 2007-2008 176 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 2007-2008 177 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 2007-2008 178 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 2007-2008 179 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 2007-2008 180 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 2007-2008 181 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 2007-2008 182 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 2007-2008 183 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