City of Twin Falls City of Twin Falls

City of Twin Falls

City of Twin Falls City Manager’s FY 2020 Recommended Budget The City of Twin Falls fiscal year begins on October 1, 2019, and ends on September 30, 2020 (FY 2020). The budget is submitted in accordance with Government Finance Officers’ Association (GFOA) best practices and the requirements expressed in the Idaho Code pertaining to municipal corporation and budgets. Idaho Code Section 50 -811 states the City Manager shall “. . . keep the council fully advised of the financial condition of the city and its future needs. . . ” and “…prepare and submit to the council a tentative budget for the next fiscal year. ”

City of Twin Falls City Manager’s FY 2020 Recommended Budget

City of Twin Falls City Manager’s FY 2020 Recommended Budget The Recommended Budget: directly linked to the City of Twin Falls’ 2030 Strategic Plan maintains and enhances service levels designed to protect our citizen’s health, safety, accessibility and wellbeing funds projects and initiatives designed to enhance our citizen’s quality of life continues our reputation for being a strong, fiscally-sound municipal government. Most importantly, is sustainable, thoughtful and proactive.

City of Twin Falls City Manager’s FY 2020 Recommended Budget A population of 49, 764 residents, the eighth largest city in Idaho, based on July 2018 US Census estimates. The city serves as the retail, educational, medical and employment center for this eight county area that has a total population of over 260, 000 causing the City to growth to a estimated daytime population of 85, 000 to 90, 000. On weekends when the City is hosting large events, the daytime population can swell to more than 100, 000+. Median household income is $46, 284 and the median home value is $205, 200. Unemployment rate is 2. 4%. The Hispanic population has increased to 16. 1% and the median age is 32. 7 years.

Mission Guiding Principles Secure Community Learning Community Accessible Community Environmental Community Internal Organization Healthy Community Prosperous Community Responsible Community Vision

City of Twin Falls City Manager’s FY 2020 Recommended Budget FY 2019 Adopted Budget FY 2020 Recommended Budget Total Taxable Value $2, 895, 692, 554 $3, 224, 858, 701 Total Net Expenses $65, 175, 529 $67, 806, 508 Tax Supported Funds $39, 727, 362 $43, 058, 774 Non-Tax Supported $25, 448, 167 $24, 747, 735 $7. 50/$1, 000 $7. 12/$1, 000 Taxes per $1, 000 in Value The City’s taxable value excludes the taxable value of the properties located in the Twin Falls Urban Renewal Agency revenue allocation areas, which have a total value of $561, 553, 248. Collectively, the taxable values for both the City of Twin Falls and Twin Falls Urban Renewal Agency total $3, 786, 411, 949. The e City of Twin Falls’ taxable value in FY 2012 was $2. 315 Billion.

City of Twin Falls City Manager’s FY 2020 Recommended Budget Net Assessed Taxable Value 2020 $3, 224, 858, 701 2019 $2, 895, 692, 554 2018 [VALUE] 2017 [VALUE] 2016 [VALUE] 2015 [VALUE] 2014 2013 [VALUE] the City of Twin Falls’ overall preliminary total taxable valuation is expected to increase by $329, 166, 147, or 11. 37%, This growth is on top of the $211, 938, 217 that was realized in the prior fiscal year.

City of Twin Falls City Manager’s FY 2020 Recommended Budget City of Twin Falls Tax Rate - Since FY 2013 0. 0077140 2013 0. 0078565 2014 0. 0076647 2015 2016 0. 0078683 0. 0080390 0. 0074299 0. 0075039 2017 2018 2019 2020 0. 0071226

City of Twin Falls City Manager’s FY 2020 Recommended Budget Homeowners Exemption $120, 000 $104, 471 $101, 153 $100, 938 $100, 000 $80, 000 $100, 000 $94, 745 $92, 040 $89, 580 $100, 000 $83, 974 $83, 920 $81, 000 $89, 325 $75, 000 From 2006 to 2017, the maximum exemption has been indexed and adjusted annually to reflect statewide real property market trends. During the 2016 session, the Idaho Legislature increased the exemption to a fixed $100, 000 for 2017 (FY 2018 Budget), which will remain in place until the legislature amends this code. $60, 000 $40, 000 $20, 000 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

City of Twin Falls City Manager’s FY 2020 Recommended Budget The median home value in Twin Falls is $205, 200. Estimated Median Home Value $ 240, 000 $ 220, 000 $ 205, 200 $ 200, 000 $ 180, 000 $ 179, 000 $ 160, 000 $ 140, 000 $ 163, 000 $ 146, 000 $ 137, 000 $ 158, 000 $ 150, 000 $ 128, 000 $ 120, 000 $ 116, 000 $ 147, 000 $ 126, 000 $ 118, 000 $ 100, 000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Twin Falls home values have gone up 12. 3% over the past year and are predicted to rise an additional 8. 9% within the next year. The median list price per square foot in Twin Falls is $140. The median price of homes currently listed in Twin Falls is $245, 000. - Zillow

City of Twin Falls City Manager’s FY 2020 Recommended Budget Total Taxes 2018 Median Property Value FY 2019 TR $1, 067. 68 $209, 000 0. 0097952 Coeur d'Alene $914. 06 $284, 000 0. 0049677 Idaho Falls $872. 11 $182, 000 0. 0095836 Pocatello $822. 72 $144, 000 0. 0114267 Caldwell $762. 19 $185, 000 0. 0082398 Nampa $715. 45 $196, 000 0. 0073005 Twin Falls $682. 85 $182, 000 0. 0075039 Lewiston Note: Idaho’s median value of an owner occupied home for this same period of time was $266, 400. The table and graph represent the amount of property tax paid on a median-valued, owner-occupied home in each of the larger, full-service cities in Idaho. The information used in the table was collected from the Associated Taxpayers of Idaho’s 2018 Levy Book (tax rate) and Zillow.

City of Twin Falls City Manager’s FY 2020 Recommended Budget Property Taxes on Median Value Home Lewiston $1, 067. 68 Coeur d'Alene $914. 06 Idaho Falls $872. 11 Pocatello $822. 72 Caldwell For FY 2020, the Street Fund budget for the City of Twin Falls is $5, 874, 240, or approximately 13% of the total tax supported funds. $762. 19 Nampa $715. 45 Twin Falls $682. 85 $0. 00 $200. 00 $400. 00 $600. 00 $800. 00 $1, 000. 00 The cities serviced by the Ada County Highway District (Boise & Meridian) were intentionally excluded because they are not directly responsible for the transportation systems in their communities. $1, 200. 00

City of Twin Falls City Manager’s FY 2020 Recommended Budget Total New Construction and Annexation Roll $ 75, 841, 520 $ 71, 830, 807 $ 80, 000 $ 70, 000 $ 54, 309, 262 $ 60, 000 $ 49, 539, 223 The New Construction and Annexation Roll reflects growth in the taxable value that is associated with new development or lands that were incorporated into the City through annexation over the course of the prior fiscal year. $ 50, 000 For FY 2020, the City of Twin Falls’ New Construction and Annexation Roll is $75, 841, 520, which will yield an additional $569, 105 in property tax revenue. $ 36, 199, 378 $ 31, 133, 208 $ 40, 000 $ 24, 348, 201 $ 30, 000 $ 20, 000 $ 10, 000 $2014 2015 2016 2017 2018 2019 2020

City of Twin Falls City Manager’s FY 2020 Recommended Budget Building Permit Revenue $ 1, 041, 122 $ 1, 200, 000 $ 1, 000 $ 846, 168$ 828, 014 $ 805, 946 $ 720, 901 $ 875, 000 $ 800, 000 As of May 2019, the number of single-family building permits is up 38% from FY 2018 (with four months remaining this fiscal year). The City has not issued this many single-family building permits since 2006. $ 800, 000 FY 2019 building permit revenue thru May is on track for the budgeted amount. $ 600, 000 $ 400, 000 The FY 2020 proposed budget decreases $75, 000 compared to FY 2019, primarily due to changes within the City’s Area of Impact. $ 200, 000 $2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Budget 2020 Proposed

City of Twin Falls City Manager’s FY 2020 Recommended Budget Preview of FY 2020 Budget - Overview: § FY 2020 Net Budget, which excludes transfers, is $67, 806, 508, or $2, 630, 979 more (4. 04%) than the budget adopted for FY 2019, which was $65, 175, 529. § The FY 2020 calls for the use of $2. 613 M in cash reserves from all funds to support one-time capital improvement projects. The most significant include: § $1. 5 M in Public Safety/Dispatch CAD system § $157, 000 for fiber to the airport § $235, 000 for terminal rehab project (front) and ARFF sleeping quarters § $176, 320 for parking lot repairs and ADA access at Dierkes Lake/Shoshone Falls

City of Twin Falls City Manager’s FY 2020 Recommended Budget Preview of FY 2020 Budget - Overview: § Limit Tax Collections to statutory allowed 3%, which will generate $661, 050 in new tax revenue. Total property tax collections will equal $23. 3 M. § New Construction value is $69. 771 M, which is $17. 1 M larger than last FY and will generate $523, 559 in new revenue ($132, 299 more than what was generated last FY). § Keeps the entirety of the $1, 416, 284 foregone balance intact. § Limits rate Increases to: 1% Water, 1% Sewer and 4. 9% Sanitation*

City of Twin Falls City Manager’s FY 2020 Recommended Budget Expenditures by Category - All Funds Debt Service [VALUE] Capital [VALUE] Maintenance and Operations [VALUE] Transfers [VALUE] Personnel [VALUE] As reflected, municipal governments also devote a large amount of their resources to personnel, the significant investment in infrastructure drives the percentage of the budget devoted to operating and capital costs higher than most other government agencies.

City of Twin Falls City Manager’s FY 2020 Recommended Budget When analyzing General Fund expenses by category, Personnel costs are a much higher percentage than compared to all funds as a whole. More than 65% of all employee costs are in the general fund, police, fire, general administration, and parks and recreation. Expenditures by Category - General Fund Capital [VALUE] Transfers [VALUE] Maintenance and Operations [VALUE] Personnel [VALUE] The General Fund supports very little capital improvement when compared to all funds as a whole.

City of Twin Falls City Manager’s FY 2020 Recommended Budget Preview of FY 2020 Budget - Overview: § Funds operational and maintenance expenses of the City, totaling $17. 981 M (2. 35% increase) § Makes capital investments totaling $12. 855 M for vehicles and equipment replacement, roads and sidewalks improvements, trails and park enhancements, and improvements to water and sewer systems. § Continues opportunity to evaluate and possibly modify service delivery levels and methods through performance management/measurement system.

City of Twin Falls City Manager’s FY 2020 Recommended Budget PERSONNEL 305. 75 Full-Time Equivalents - [VALUE] All Funds 315 312. 00 Total personnel cost will increase by $1, 653, 487 to $30, 736, 807, or 5. 69%. • Other expenditures associated with personnel in the FY 2020 Recommended Budget: 290. 63 285. 63 305 279. 25 295 • 274. 25 • 285 275 • 265 2014 2015 2016 2017 2018 2019 2020 Provides for a performancebased adjustment of 3% for all employees and moves the City’s compensation table 3%. Increased funding for health insurance (5%)

City of Twin Falls City Manager’s FY 2020 Recommended Budget PERSONNEL Family Monthly Coverage $[VALUE] $[VALUE] $[VALUE] 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Initial health insurance increase was 14%, an amount too large to fund in FY 2020 by simple renewal. As a result, we made plan changes for FY 2020. Employees will see modest increases to co-pays, deductibles, and out of pocket maximums, and we added a prescription deductible to the traditional plan. We reduced the insurance premium cost increase to approximately 5%.

City of Twin Falls City Manager’s FY 2020 Recommended Budget Funding Fiscal Year 2020 Adjustments Position Full Time Equivalent Revenue Adjustment City Attorney 1. 0 Elimination of legal contract Fire Fighter 5. 0 Revenue from federal grant Utility Services Representative . 25 Saving realized through retirement Lifeguard . 25 Adjustment between funds

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 NEW FTE Requests – Funded Position Full Time Equivalent Fully Burdened Cost Airport Operations/Security Coordinator 1. 0 $78, 279 GIS Technician (3/4 to full time) 0. 25 $11, 466

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 NEW FTE Requests – Unfunded FTE Fully Burdened Cost Fire Fighter 2. 0 $148, 319 Deputy Fire Chief 1. 0 $131, 767 911 Communications Assistant Manager 1. 0 $97, 603 Traffic Technician 1. 0 $84, 636 Facility Maintenance Technician 1. 0 $75, 836 Patrol Officer (SRO replacement) 1. 0 $69, 419 Operator – Parks 1. 0 $68, 363 Police Records Clerk 1. 0 $66, 938 Wellness and Safety Coordinator 0. 5 $41, 917 Custodian 0. 5 $23, 989 Property and Evidence Supervisor (position upgrade) $12, 798

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Capital Requests - Highlights Healthy Community § Shoshone Falls/Dierkes Lake – § Planning/Engineering for Access Road Redesign - $300, 000 (Council Capital Project) § Parking Lot, ADA Access - $300, 000 § Cascade Park and Preserve Trailhead enhancements - $225, 000 Secure Community § Public Safety Computer-Aided Dispatch/Records Management Software - $1, 500, 000 § Replacement Patrol vehicles - $130, 000 § Crime van and equipment - $159, 000

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Capital Requests - Highlights Accessible Community § Zone 8 Seal Coating - $1, 032, 722 § Maintenance and miscellaneous overlay projects - $543, 100 § Locust Street reconstruction - $984, 000 § Sidewalk Program § Construction projects - $207, 095 § Streets/Council Capital projects - $250, 000 § Matching grant program - $50, 000 § Trail Maintenance (fencing, asphalt and repair) - $30, 000

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Capital Requests - Highlights Environmental Community § Mainline & Meter Replacement (water) - $582, 615 § Hankins Pressure Zone Expansion (water) - $400, 000 § Well #5 piping (water) - $300, 000 § Mainline upgrades (wastewater) - $200, 000 § CCTV Van and Camera (wastewater) - $215, 000

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Capital Requests - Highlights Responsible Community § Water Master Plan Addendum - $150, 000 § National Citizen Survey - $20, 000 § Park Planning § Facility Master Plans - $15, 000 § Parks Standards and Specifications (update) - $15, 000

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Enterprise Funds account for services financed through the assessment of user-fees. The main goal or purpose of these business-like funds is to provide services to customers at a price that will cover both the current cost of operations and the purchase and maintenance of necessary capital assets. Enterprise Fund may not be co-mingled with any other fund or spent for any purpose other than the one it has been collected or reserved for without direct and specific action by the City Council.

City of Twin Falls City Manager’s FY 2020 Recommended Budget Revenue by Fund - Enterprise Funds Sanitation [VALUE] Non-Major Enterprise Funds [VALUE] Water [VALUE ] Wastewater [VALUE] Enterprise Funds account for $25. 36 million (36. 2%) of the $70. 06 million total revenues budgeted in the FY 2020 budget. The majority of revenues, or almost 92. 5%, are from user fees. The remaining revenue sources include investment earnings, inter-fund transfers, and miscellaneous income.

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Utility Rates Water Fund We are recommending an increase to the water rate of 1%. The average water user (18, 000 gallons) will see an increase of $. 41 per month or $4. 93 per year. The FY 2020 revenue projections estimate $11, 733, 738, which represents an increase from 2019 of $39, 827 (. 34%). Wastewater Fund We are recommending an increase to the sewer rate of 1%. The user that caps out at 12, 000 gallons will see an increase of $. 30 per month and $3. 58 per year. The FY 2020 revenue projections estimate $9, 704, 742, which combined with reserves of $200, 000, equals $9, 904, 742 in total funding. This is a decrease from FY 2019 of $37, 137 (. 37%). Sanitation Fund We are recommending an increase in sanitation of 4. 90%, which represents a $0. 90 per month per customer increase or $10. 80 per year. The FY 2020 revenue projections estimate $3, 476, 201, which represents an increase from 2019 of $107, 726 (5. 16%). The total of these adjustments would increase the average user by approximately $1. 61/month or $19. 32/year.

City of Twin Falls City Manager’s FY 2020 Recommended Budget

City of Twin Falls City Manager’s FY 2020 Recommended Budget FY 2020 Budget Calendar July Friday, July 5 Monday, July 8 Monday, July 15 Monday, July 22 Monday, July 29 August Monday, August 5 Monday, August 12 Monday, August 19 Monday, August 26 Week of August 26 Preliminary budget to Council for review Budget Presentation to Council - Overview Budget Presentation to Council - FOCUS AREAS 5, 6 & 7 Budget Presentation to Council - FOCUS AREAS 2 & 3 Budget Presentation to Council - FOCUS AREAS 1 & 4 Budget Presentation to Council - FOCUS AREAS 8 Budget Overview, Adoption of Preliminary FY 2020 Budget, set Public Hearing date Public Hearing on Proposed Rate Adjustments Council Review of Preliminary Budget - All Sections Council Adoption of FY 2020 Budget - Public Hearing Certify Tax Levy to County Publish Appropriations Ordinance & Send Copy to Secretary of State

City of Twin Falls City Manager’s FY 2020 Recommended Budget Questions?