City of Bella vista

1. City of Bella vista Approved 2018 Budget

2. City of Bella VistaApproved 2018 Budget - Revenues • The approved 2018 budget reflects the City’s ability to maintain and improve the quality of services expected by our community, despite tremendous residential growth not currently offset by corresponding commercial growth. • The City is primarily supported by Sales Tax revenues at 46% of total City revenues. We have budgeted $2.1 million for City Sales Tax and $5.9 million for our share of County Sales Tax revenue, for a total Sales Tax revenue of $8 million. This is an increase over the 2017 budget of 857,000, and is based on the past 6 year trend. • Next in line are Property Taxes at 16% of total City revenue. The City is expected to collect $2.8 million in property taxes, which is $585,000 more than budgeted in 2017. This is partly due to the .5 millage increase, which equates to $262,000 in increased revenue. • The remaining $323,000 in expected increased property tax revenue is due to an increase in the assessed valuation of taxable property in Bella Vista to $524 million, again reflecting the City’s tremendous growth.

3. City of Bella VistaApproved 2018 Budget - Revenues, Cont. • State and County turnback revenues comprise approximately 15% of total City revenues, the majority of which support a portion of the City’s Street operations. Unfortunately, the estimates for the 2018 State turnback per capita for Streets remained dormant at $65.50 per capita, which equates to approximately $1.737 million. • The County turnback revenue for Streets is budgeted at approximately $467,500, based on the trend of the past six years. These two funding sources equate to a total combined turnback revenue dedicated to Streets of $2.2 million. • Based on the approved 2018 Streets budget of $3.7 million, it is necessary for the General Fund to cover the difference of approximately $1.5 million. • A smaller portion of State turnback revenues are designated to the General Fund, and also remained dormant at an estimate of $15.50 per capita, or $411,000. • These per capita figures are based on the 2010 census.

4. City of Bella VistaApproved 2018 Budget-Revenues, cont. • Franchise fees comprise approximately 12% of the City’s total revenue, and are budgeted at $2.153 million, based on the trend of the past six years. This is an increase of $373,000 over the 2017 budget.

5. City of Bella VistaApproved 2018 Budget-RevenuesDetail

6. City of Bella VistaApproved 2018 Budget-Revenues, cont.

7. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesGeneral Highlights • New for 2018 is the inclusion of budget amounts for Vacation, Sick, and Comp Time payouts. • The City’s policy is to pay an employee the balance of their accrued vacation hours upon termination. Since it is impossible to know which employees may accept employment elsewhere during the year, we have opted to include the possibility of payouts calculated at 1% of gross payroll. • The City also pays a retiring employee the balance of their accrued sick hours upon retirement. We have identified those employees who have indicated their retirement in 2018 and have accounted for this expense in the appropriate department. • Finally, the City provides the option of switching overtime hours for compensatory time off. However, once the employee accrues 40 hours of “comp time”, they must take the additional time as overtime pay, so an allowance for this possibility was built into the 2018 budget. • Dental benefits increased approximately 16%. Medical benefits remained the same. • 2018 will be the first full year for Court operations.

8. City of Bella VistaApproved 2018 Budget-Appropriation of Revenuesby Departments

9. City of Bella VistaApproved 2018 Budget-Appropriation of Revenuesby Expense Category

10. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesFire and Ambulance

11. City of Bella VistaApproved 2018 Budget-Distribution of RevenuesFire and Ambulance-Highlights – Payroll and Emp. Benefits • Payroll – • The addition of 9 new firefighters partially funded through the SAFER grant increased payroll by $372,358 before application of grant reimbursements. Post-grant reimbursements results in a net city-funded payroll expense for SAFER grant employees of $93,090. • The addition of a full-time training officer and supplemental expenses which will be the result of mid-year certifications and subsequent increased duties of three paramedics and 9 current engineers will result in an increase to payroll expense of $90,000. • Scheduled promotions of two (2) captains and two (2) battalion chiefs will result in an additional increase to payroll expense of $25,000. • Employee Benefits – • Benefit expense for the 9 SAFER grant employees increased total benefit expense by $151,929 before application of grant reimbursements. Post-grant reimbursements results in a net city-funded benefit expense for SAFER grant employees of $37,982. • Five (5) employees will take advantage of the Education Assistance benefit for a cost of $7,500.

12. City of Bella VistaApproved 2018 Budget-Distribution of RevenuesFire and Ambulance-Highlights – M&R, Operations, and Supplies • The Fire Department is splitting the cost of new microwave towers with the Police and Street Departments. All three departments have budgeted $7,500 for this project. This increase is reflected in account no. 53200 – Maintenance and Repair – Communication Equipment. • Annual support for the new Image Trend software is $14,800. This increase is reflected in account no. 53300 – Maintenance Contract – Software Support. • Supplies Expense for Computer Software of $26,000 reflects one-half of the cost of new pre-arrival software. The other half is being shared by the Police Department. • We are asking for $78,000 for Ambulance Supplies, which is a $15,000 increase over the 2017 budget, but in line with the past year actual expenditures. • Vehicle insurance increased as a result of the 2017 purchase of the new Pumper truck. In addition, the City’s vehicle rate increased from .5 bps per $$ of declared value to 1 bps per $$, due to accident history in 2016. These two factors resulted in an increase over the 2017 budget of $15,600. • Employee surveys indicate that additional training would be a factor that would keep employees from seeking employment elsewhere. Consequently, the Training and Travel budgets have increased approximately $20,000 over the 2017 budget. • Uniform expense has increased $10,400 over the 2017 budget.

13. City of Bella VistaApproved 2018 Budget-Distribution of RevenuesFire and Ambulance – Highlights - Equipment • The following new equipment is requested for 2018: • Equipment over $1,000/unit:

14. City of Bella VistaApproved 2018 Budget-Distribution of RevenuesFire and Ambulance – Highlights – Equipment, cont. • Equipment under $1,000/unit:

15. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesPolice

16. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesPolice – Highlights – Payroll and Employee Benefits • It is estimated that approximately $9,000 may be paid at the end of 2018 for accrued comp time. • The inclusion of Vacation and Sick Payout estimates increased the budget by $28,000 over 2017. • New staff approvals requested for 2018 include one dispatcher, one lieutenant, and three officers. These adds result in a $213,000 increase over 2017.

17. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesPolice – Highlights – M&R & Equipment • M&R – (Maintenance and Repair) • The Police Department is splitting the cost of new microwave towers with the Fire and Street Departments. All three departments have budgeted $7,500 for this project. This increase is reflected in account no. 53200 – Maintenance and Repair – Communication Equipment. • Equipment over $1,000/unit: • The following new equipment is requested for 2018:

18. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesPolice – Highlights – Equipment, cont. • Equipment under $1,000/unit: • .

19. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesPolice – Highlights – Supplies & Operations • Supplies Expense for Computer Software of $26,000 reflects one-half of the cost of new pre-arrival software. The other half is being shared by the Fire Department • Health Supplies expense is significantly more than the 2017 budget due to the following: • $8,000 for 40 individual trauma shooting kits. The kits are essential for any modern PD, and can mean the difference between life or death in a traumatic shooting of either an officer or citizen. This program will be coordinated with the FD, who will provide the necessary training needed. • $4,000 for a supply of Narcan nasal spray, which is essential in saving officers who become inadvertently exposed to Fentanyl or other opioid-type drugs. Each officer would be issued a Narcan nasal spray canister which can be administered with no risk to the exposed officer. • We are currently negotiating a contract with the Bella Vista Animal Shelter for the following services budgeted in acct. no. 56750 – Operations – Animal Control. The fixed rate portion of this contract is $12,000 more than our current contract:

20. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesPolice – Highlights – Operations, cont. • New for 2018 is a budget request for operating the bike unit of the PD. We are requesting $5,775 for this line item. • Vehicle insurance expense is approximately $10,000 more than 2017 actual, due to the requested addition of 11 new cars, four of which are budgeted through Capital Improvements. In addition, the City’s vehicle rate increased from .5 bps to 1 bps per $$ of declared value due to the accident history in 2016. • An increase is requested for Public Relations expense due to additional funds needed for the “Night Out” event, additional informational handouts, and a contingency for food which has been donated in the past, but not guaranteed. • Additional officers created an increase in Uniform expense of $4,100 over the 2017 budget.

21. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesStreets

22. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesStreets – Highlights – Payroll and Benefits • Payroll – • Payroll reflects increases in individual employee’s current salaries and wages in a range from 2% to 7%, based on two factors: • Results of market data research for comparable job descriptions in NW Arkansas • Results of job performance evaluations. • The Street Department will not increase their approved staff in 2018. However, there are currently four vacant positions. • Employee Benefits – • One employee will take advantage of the Education Assistance program at $1,500. • New for 2018 is the addition of an employee benefit for Tools Allowance Expense. We are requesting an allowance of $1,200 each for two mechanics.

23. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesStreets – Highlights – Maintenance and Repair/Equipment • The Street Department is splitting the cost of new microwave towers with the Fire and Police Departments. All three departments have budgeted $7,500 for this project. This increase is reflected in account no. 53200 – Maintenance and Repair – Communication Equipment. • Equipment over $1,000/unit

24. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesStreets – Highlights - Supplies • The budget request for Road Materials Supplies was increased by $50,000 due to the anticipated stockpile purchase of salt and sand. • With the new sign shop added in 2017, our budget request for Sign Supplies is increased $3,000 over 2017. We anticipate additional sign requests from other departments. • We increased our budget request by $10,000 over 2017 for Vehicle Fleet supplies due to a 2017 shortfall and the 6-year upward trend.

25. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesStreets – Highlights - Operations • Calculating a fuel consumption of 46,000 gallons for 2018 at $2.50 per gallon for both unleaded and diesel resulted in a total budget request of $115,000, which is approximately $16,000 more than the 2017 budget. • Our budget request for property insurance is based on the 2017 actual for combined building and contents, which was approximately $4,500 more than what was budgeted. • Our budget request for vehicle insurance is based on a 2017 increase from .5 bps to 1 bps per $$ of declared value. The increase was due to the City’s accident history in 2016, and was approximately $5,000 more than what was budgeted. • The budget request for Street Lighting expense was based on the past year of billings from Carroll Electric, which exceeds the 2017 budget by $11,000. • The budget request for Traffic Lights expense was also based on the past year of billings, which exceeds the 2017 budget by $25,000. • New for 2018 is the addition of a budget request for the cost of motor vehicle reports for all employees who drive a City vehicle. This addition is reflected in account 56880 – Operations-Miscellaneous. • Increases in Training and Travel are to cover the cost of sending three (3) employees to “Work Zone Safety” training, and result in an increase over the 2017 budget of $2,900. • The 2017 budget for Uniforms expense included uniform shirts, rain gear, hi-vis vests, gloves, chaps, boots, jeans, and winter wear. The majority of that budget was transferred to an employee benefit titled “Uniform Allowance”. For 2018, the benefit account will cover boots, jeans, and winter wear. The operations account will cover the other items.

26. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesCommunity Development

27. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesCommunity Development – Highlights – Payroll and Emp. Benefits • Payroll • The inclusion of possible Comp time, vacation, and sick payouts for 2018 increased the budget by approximately $18,000. • We are requesting funding for a chief inspector, which increases the 2018 budget by $56,000. • We are also asking to change the status of one of our Admin employees from part-time to full-time, which will increase payroll by approximately $16,000. • We expect overtime to increase by $1,320 over 2017.

28. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesCommunity Development – Highlights – M&R; Utilities; Operations • Utilities – • First for 2018 is the inclusion of water costs for the water fountains on the trails. We’ve added $7,500 to the 2018 budget for this line item. • Operations – • Additional fuel consumption for one new vehicle added $1,498 to our budget for Operations - Gas/Fuel/Oil. • Vehicle insurance expense was increased by $326 to account for coverage on one new vehicle.

29. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesCommunity Development – Highlights – Operations, cont. • Miscellaneous operations expense includes budgeting for the Back 40 Fall for All, Back 40 Story Programming, recording expenses for structural encroachment notices, zoning, and planning ordinances, rights of way, and easement deeds for construction projects. The estimated costs for these expenses come in at approximately $8,000 more than the 2017 budget. • Combined training and travel expenses are increased $9,000 over 2017.

30. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesCommunity Development – Highlights – Equipment • The Community Development requests approval for the following equipment purchases: • Equipment over $1,000/unit: • Equipment under $1,000/unit

31. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesAdministration

32. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesAdministration – Highlights – Payroll and Emp. Benefits • Payroll – • Wages for the City Clerk, Councilpersons, and Mayor were raised in accordance with Resolution No. R2016-24. This resulted in an increase of approximately $5,000 over 2017 • Possible vacation payout expense increased the budget by approximately $5,900. • It is necessary to add one additional full-time employee (a Network Specialist) to IT, resulting in an increase of approximately $51,000. • Benefits – • Three employees took advantage of the Education Assistance benefit of $1,500/yr., resulting in an increase of $4,500. • Workmen’s Compensation Insurance expense increased $4,800 for the non-street portion of the premium.

33. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesAdministration – Highlights – Contracts and M&R • Contracts – • The constant, rapid changes sweeping across the IT industry require the City to improve their infrastructure for security and efficiency. Projects related to this effort are as follows: • Transforming our server infrastructure from Physical to Virtual • Centralizing network monitoring • Setting up a help-desk and trouble-ticket framework • GIS systems and support • M&R – • City Hall will more than likely require a new roof in 2018, as there are many new leaks being noticed after every heavy rain. We have budgeted $10,000 for this in 2018.

34. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesCapital Improvements • Capital Improvement requests are as follows:

35. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesDebt Service

36. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesLibrary

37. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesLibrary – Highlights – M&R; Operations; Supplies • M&R – • The increase in Maintenance and Repair expenses is based on the trend from the past two years. • Operations – • Insurance for the building and contents has increased to almost $5,000, which accounts to a $2,100 increase over the 2017 budget. • Data services include services such as Overdrive, Freegal, Rocket Languages, Boopsie, Ancestry.com, and Beanstack. These services show a marked upward trend over the past four years, and account for a $1,500 increase over the 2017 budget. • We are requesting a $5,800 increase in our budget for Library Materials. • Supplies - • We have increased our budget for Janitorial and Office Supplies based on the trend of the past four years.

38. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesCourt

39. City of Bella VistaApproved 2018 Budget-Appropriation of RevenuesLegal

40. City of Bella VistaApproved 2018 Budget- Summary

41. City of Bella VistaApproved 2018 Budget- Projection of Sufficiency of Ending Reserve Balance • It is the current administration’s policy to maintain no less than three month’s worth of “spend”, (i.e. budgeted expenditures), in cash. Three month’s worth of the 2018 budgeted expenditures equates to $4.663 million. We project the December 31, 2018 cash balance will be $5.014 million, as illustrated below: