City of Bend 2011 2013 Biennial Budget Committee

City of Bend 2011 -2013 Biennial Budget Committee Deliberations May 24 - 26, 2011

Tonight’s Schedule § Program Based Budgeting § Budget Message/City Wide Trends § Infrastructure Service Area Programs § Public Comment City of Bend, Oregon

The Move to Program Based Budgeting § Starting the transition with the 2011 -13 Biennial Budget - Document is structured differently - Budget is being presented differently § What’s next - Further refinement of sub-programs - Development of more robust performance measures - Regular reporting of performance measures throughout the year (not just during budget) City of Bend, Oregon

New Budget Vernacular Service Area – Grouping of “like” programs & funds Ex: Infrastructure Service Area or Public Safety Service Area Program – Breakout of the Service Area into smaller “like” functions Ex: Water Program, Accessibility Program or Transportation Ops & Plng Program Sub-Program – Breakout of the Program into specific functions / tactical services Ex: Water Operations Sub-Program or Traffic Operations Sub-Program City of Bend, Oregon

Performance Measure Benchmarks International City Manager’s Association (ICMA) § Professional association of City managers § Developed over a decade by city/county managers and other service-area specialists § Provides comparative data from nearly 200 cities and counties annually for the following city service areas: Code Enforcement Facilities Management Fire and EMS Fleet Management Human Resources Information Technology Police Services Procurement Risk Management Building Permits and Plan Review Highway and Road Maintenance City of Bend, Oregon

Budget Reduction Principles City of Bend, of Bend Oregon

CITY-WIDE OVERVIEW City of Bend, Oregon

Changes to Proposed Budget City of Bend, Oregon

Resources City of Bend, Oregon

Requirements by Service Area * Decrease due to accounting change in Risk Management Fund. Without accounting change, city-wide admin & support totaled $61. 6 M City of Bend, Oregon

Budget Requirements by Category 2007 -09 Actual Personnel 2009 -11 Estimate 2011 -13 Proposed Budget $103 M $95 M $94 M $46 M Materials & Svcs $56 M $62 M Debt & Capital $84 M Transfers Contingency & Reserves $93 M $78 M $57 M $67 M $46 M $385 M $409 M $146 M $68 M City of Bend, Oregon

Personnel Cost Increases City of Bend, Oregon

Personnel Costs City of Bend, Oregon

Materials and Services ($45. 7 M) City of Bend, Oregon

2011 -13 Capital Proposed $120. 9 M $8. 4 M $100. 1 M $6. 4 M $6. 0 M City of Bend, Oregon

Debt ($159 million outstanding at 6/30/2013) Principal Repayments $13. 4 million Pay down Bulletin debt from $3. 5 to $1. 7 M Interest Payments $11. 6 million New Debt Proposed $74. 3 million New debt Water $38. 7 M Pay off BURAdowntown debt City of Bend, Oregon Sewer $34. 3 M Street Equip $1. 4 M

Change in Reserves & Contingencies City of Bend, Oregon

Reserves & Contingencies City of Bend, Oregon

2011 -13 Budget Highlights 1. Revenues • • Decrease in Property Taxes Little growth in other revenues 2. Strategic draw down of reserves • • Planned draw down for capital & projects Draw down for operations which will require plan to replenish reserves 3. Proposed personnel costs • • • Net decrease in total FTEs COLA and merit increases per contract only PERS increase Reduction in health premiums Funding of OPEB 4. Capital and Debt • • Water and Water Reclamation GO Bond City of Bend, Oregon

INFRASTRUCTURE OVERVIEW City of Bend, Oregon

Infrastructure Programs City of Bend, Oregon

Expenditures for Water Sys Improvements Surface water project City of Bend, Oregon

Expenditures for Sewer Sys Improvements SE Interceptor & Secondary Expansion Project City of Bend, Oregon

Primary Budget Issues for 2011 -13 • Significant debt burden on water and water reclamation. Strategies to manage debt: – Rate increases to ensure target coverage ratio of 1. 5 to 1. 75 – Debt service reserves – Pursue low cost financings – Using State bond bank funds but working with State to minimize debt requirements City of Bend, Oregon

Infrastructure Service Area Programs § § § Water Reclamation Stormwater Laboratory Engineering Transportation Operations and Planning Transportation Construction Airport Downtown Parking Public Transit, SDC’s, LID’s Accessibility Construction & Program City of Bend, Oregon

Infrastructure Service Area 2011 Council Goals City of Bend, Oregon

Infrastructure Service Area Measures City of Bend, Oregon

Infrastructure Service Area: 2011 -13 Proposed FTE Changes City of Bend, Oregon