City of Kelsey Public Policy

City of Kelsey

City of Kelsey Annual Budget for the Fiscal Year 2005-06

Making sense of your dollars

City of Kelsey

Mission of Kelsey Amenities of the big city without sacrificing the small town charm

City Values: Public Trust - we are honest, accountable and trustworthy

Customer Service - we provide excellent effective and efficient services to our citizen

Employees - we value and respect each other as we serve the public

Continuous Improvement – just as the needs of our residents change so must the service we provide. We look for innovative and imaginative team problem solving to deliver superior customer service

People of Kelsey

Mayor and Council

City Manager

Police

Community Services

Development Services

Administration

Fire

Transportation

City of Kelsey

June 1, 2005 To Honorable Mayor and Council members: We are pleased to submit to you the 2006 Kelsey City Budget. The approached to this year’s budget is in line with Council’s objectives of effective and cost efficient services to meet the needs of Kelsey’s residents. Budget in Brief We present a balance budget with modest increase. This years’ budget increased by 6.4% primarily due to increases in employer retirement contribution and health care costs. Positions were added in Police and Community Services to bolster the City’s commitment to public safety and social services. Major Services Accomplishments For the year ended – during the 2005 fiscal year the City accomplished the following service objectives:

Library - increased children story telling times by a grant from the Kelsey Community College

Public Safety - maintained less than a five minute response time to citizen calls Fire Department - instituted a babysitter CPR certification classes Transportation - completed the five year streets sign projects

Administration - maintained our highest bond rating of AAA from Fitch which is evidence of the City’s financial strength

For the future – the economic outlook is good for Kelsey with strong and stable fund balance reserves. As a result of the continued retail and commercial improvements, the City can diversify and strengthen its revenue base without comprising our small town values. We look for grants and partnerships to deliver community services. Also, we emphasize public safety with increased community policing efforts. Finally, the completion of the five year street sign project, which converted all signs to energy efficiency lighting, we move into our new pavement review program. With the budget adoption, I would like thank the Mayor and Council, Citizen of Kelsey, and our City Staff for their time and effort throughout this process. Respectfully Submitted, Kelsey City Manager

City of Kelsey

Council Budget Tenets

Continue the modified base budget implemented at the start of the budget process, incorporating historical spending patterns, program cost adjustments, and long- range forecasts in the preparation of budget allocation targets, thereby limiting the rate of budgetary growth.

Continue to re-examine current programs, re-engineering processes and competitiveness in the City as necessary.

Continue to identify and address Council’s strategic issues.

Continue periodic budget reviews with the City Council.

Continue examination of current programs by each department for potential sunsetting opportunities.

Continue annual citizen satisfaction survey to solict feedback.

Continue open public forum and public hearing to solict Kelsey residents input.

City of Kelsey

Budget Policies The budgetary policies enumerated below outline a general framework of budgetary goals and objectives regarding the operating budget, debt service, capital expenditures, reserves, and financial reporting. They provide standards against which current budgetary performance can be measured and proposals for future programs evaluated.

Operating Budget Policies

Current revenues will be sufficient to support current operating expenditures. Status: Estimated General Fund operating revenues ($40.1 million) to

expenditures ($37.5 million) Ratio 1.0:1 Financial systems will be maintained to monitor expenditures, revenues and program performance on an ongoing basis. Status: Ongoing monitoring system with monthly reviews including payment and purchase

requisition system Revenues and expenditures will be projected for the next five years and will be updated annually. Status: Projections completed in Comprehensive Financial Plan (Fall 2004 Update)

Debt Service Policies

Long-term debt will not be issued to finance current operations. Status: None issued to finance current operations

Capital Expenditures Policies

As required by City Charter, a five-year capital improvements program will be developed and updated annually, including anticipated funding sources. Status: FY 2005-06 CIP Budget of $2 million adopted as part of a 6 year

Capital projects financed through the issuance of bonds will be financed for a period not to exceed the expected useful life of the project. Status: Average weighted life years on CIP bonds: FY 2005-06 15 years

The City will coordinate development of the capital improvements budget with development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts.

Reserve Policies

The City will continue its healthy financial reserve position. Fund balance coverage for the General Fund will be maintained at a minimum of 25% of General Fund revenue. Highway User fund (Transportation) will be maintained at a minimum of one fiscal year of revenues; since this funds are subject to changes in state appropriation.

City of Kelsey

Financial Reporting Policies

The City's accounting and financial reporting systems will be maintained in conformance with current accepted principles and standards of the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). Status: GFOA Certificate of Achievement for Excellence in Financial Reporting. GFOA

Distinguished Budget Presentation Award

Full disclosure will be provided in the general financial statements and bond representations. Status: Notes to the financial statements and official bond statement provide full disclosure

An annual audit will be performed by an independent public accounting firm with the subsequent issue of an official annual financial statement. Status: Unqualified independent audit report

Financial Stability

Several steps were undertaken to insure our continued financial stability amid declining local and state-shared revenues. These recommendations, listed under the Financial Action Plan in the Comprehensive Financial Plan, include the following:

Long-Range Forecast was prepared for all funds projecting revenues and expenditures over

the next three years.

Sales Tax Revenues (in General Fund) derived from the sales tax election of 1993 approving an increase in the rate from 1.0% to 1.1%, appears sufficient to meet projected expenditure needs through the five year forecast.

Annual review of the Debt Management Plan and sizing of Capital Budget to Debt Criteria led us to limit new debt issues to an average of $2 million each year for the next 6 years.

Building on the Benchmarking Program and Competitive Analyses, incorporating recommended benchmarks from the Governmental Accounting Standards Board Service Efforts and Accomplishments Reporting program, International City/County Management Association Performance Measures, and citywide internal and external benchmarking programs to assist in public accountability and continuous improvement in the efficiency, quality, and outcomes of work processes and services.

Strategic Issues Program implemented to identify and prioritize key strategic issues, leading to incorporation of recommended corresponding strategies and goals into the budget process.

Financial Policy Implementation and Monitoring continues to be fine-tuned to refine financial guidelines and the administrative procedures to monitor performance criteria.

Continue efforts in coalition with the League of County Cities and Towns to help Protect State-Shared Highway User Revenues.

Manage Stability as effectively as growth has been managed in the past. Financial flexibility, which comes easily during rapid revenue growth periods, must be intentionally constructed through effective decision-making when managing stability.

City of Kelsey

The Budget Process Budgets are appropriations which is a legal authorization granted by the legislative body to incur liabilities for purposes specified in the appropriation act or ordinance. Per State Statue, the City of Kelsey must adopt an annual budget. This process begins in November and completes in June. Budget Process Overview

Budget preparation allows departments the opportunity to reassess goals and objectives and the means for accomplishing them. Even though the budget may be heard by the Mayor and Council in May and adopted in June, its preparation begins at least six months prior with projections of City reserves, revenues, expenditure limit requirements, and financial capacity. It is with this "groundwork" that departmental expenditure requests are made and subsequently reviewed.

Financial Capacity Phase

Forecasting is an integral part of our decision-making process. Both long-range and short- range projections are prepared. The City's Comprehensive Financial Plan is updated annually to assess our current financial condition and future financial capacity, given our long range plans and objectives. A five-year financial forecast is prepared for each major fund, projecting both expenditures and revenues. As a part of this phase, alternative scenarios are examined for their fiscal impact on each respective fund.

Policy/Strategy Phase

The Council's goals and directives set the tone for the development of the budget. In fact, shortly after the budget is adopted, the Council meets to identify strategic priorities, issues, and projects impacting the next fiscal year budget. The Council identifies key strategic issues that will provide the direction and framework for the budget. It is within this general framework that departments' supplemental requests are formulated. Aside from the Council's own objectives, the departments identify and discuss their own policy issues with the City Manager.

City of Kelsey

Presentations by Budget Office staff at "budget kickoff" meetings include a discussion of citywide goals and objectives, budgeting guidelines for the operating and capital budgets, timelines, an overview of fiscal constraints, and resources available for allocation. The Budget Manual distributed at these meetings is designed to assist the departments in preparing all budget requests and forms.

Needs Assessment Phase

The departments have an opportunity to assess current conditions, programs, and needs. Examination of current departmental programs or positions for possible trade-offs, reduction, or elimination is strongly suggested. During this phase, departments are encouraged to thoroughly review all programs and services, assessing their value and priority to the citizens of Kelsey. Additionally, departments reassess service level standards and workload indicators. They then attempt to provide the "best fit" of resource allocation with service and workload estimates. From this process, they prepare preliminary departmental budgets.

As part of this Needs Assessment Phase, a citizen survey is conducted to solicit citizen satisfaction with City services and their perception of resource allocation or budget priorities.

Review/Development Phase Within the framework of the City's financial capacity, Council and City Manager priorities

requests are reviewed and a preliminary Citywide operating budget takes shape. The departments initially prepare and submit base budget work sheets reflecting allocation targets. The amount of the allocation is determined by modifying the prior year budget by historical spending patterns and then adjusting for price increases (inflation). Supplemental requests are evaluated and presented at various budget levels: (1) base budget level, (2) recommended level providing monies to implement new or expand City programs, and (3) policy level which allows additional program options.

Adoption/Implementation Phase

Prior to May 1, the City Manager submits to the Council a proposed operating budget for the next biennium commencing the following July. The operating budget includes proposed expenditures and the means of financing them. According to state statutes, tentative budget adoption must occur on or before the 3rd Monday in July each year, with final adoption taking place no less than 7 days prior to adoption of the property tax rate. Thus, the formal action by the Council is to adopt the budget for the upcoming fiscal year rather than both years of the biennium. The property tax levy must be adopted by the 3rd Monday in August. State law requires cities and towns with property taxes to adopt their tax rates annually, even though a jurisdiction may operate on a biennial budget.

City of Kelsey

Financial Structure

The City’s operating budget is organized into funds in accordance with Generally Accepted Accounting Principle (GAAP) with guidelines established by the Governmental Accounting Standards Board (GASB). The City of Kelsey financial structure separates resources into five funds. Funds are a self balancing set of accounts can be viewed a mini-checkbooks or subsidies with specific purpose.

Overview of Major Fund Types:

General Governmental

General Fund (GF) – Used to account for the majority of general government operating activities (e.g. Police, Fire, Administration).

Debt Service Funds (DSF) - Used to account for financial resources segregated to pay principal or interest on long-term general liabilities; this fund has much in common with sinking funds set aside funds to retire debt.

Capital Projects Funds (CPF) - Used to account for financial resources segregated to pay for construction or acquisition of long-lived capital assets; used to set aside resources to fund construction, does not have assets.

Permanent Funds - Used to account for resources provided by trust in which the earnings but not the principal must be used for public purposes (e.g. donation can only use interest).

Special Revenue Funds (SRF) - Used when required by law or by policy to account for financial resources earmarked for a specified operating purpose (e.g. toll on highway to collect fund for highway repair and maintenance).

Overview of Accounting Methods General Governmental funds – use a modify accrual accounting method. This is where revenues are recognized in the period which they become available and measurable and expenditures are recognized at the time the liability is incurred. Budget basis is modified accrual where according to GAAP 1) encumbrances considered to be expenditures chargeable to appropriations, 2) no depreciation is budgeted 3) investments in supply inventories and assets restricted for self- insurance purposes are not considered to be appropriable, 4) revenues accruing to sinking funds are not appropriable, and 5) contributions into sinking funds are not budgeted.

City of Kelsey

Operating Budget Overview The citywide operating budget for FY 2005-06 $37.5 million, and represent a 6.4% operating budget growth. Much of the operating budget growth is due to an increase in funds for Police and Community Services reflecting the City’s continued commitment to public safety, youth and social services programs. General Fund appropriations grew by 6.7% in FY 2005-06. This primarily reflects funding for new employees to address workload increases in the Police Department, Development Services, Council priorities in Community Services, and increases for employee health care and retirement. General Fund Fund Structure Description The General Fund is the general operating fund of the City and is used to account for all financial activity not reflected in another fund. Major Services The General Fund consists of the following major functions:

• Administrative Services-Accounting, Budget, Human Resources, Payroll, Facilities • Police • Fire • Community Services • Development Services

Revenue Structure Major revenue sources for the fiscal years are: Local Sales Taxes, Charges for Services, Property Taxes, Charges for Services, and All Other. Local Sales Taxes Local sales tax revenues are estimated at $30.0 million in FY 2005-06, derived from a 1.1% City sales tax. Over half of the sales tax revenue comes from retail sales, with the remainder collected primarily from rental payments, utility and telecommunication payments, restaurant and bar sales and contracting sales. While Kelsey's single largest revenue source is highly responsive to changes in economic activity, the diverse and robust nature. Property Tax Kelsey’s property tax rate is $1.00 per $100 of assessed valuation, consisting of a primary tax rate of $0.80 per $100 of assessed valuation and a secondary tax rate of $0.20 per $100 of assessed valuation. Only the primary levy goes to the General Fund. While there is no restriction on its usage, the primary levy is limited by state law to a 2% annual increase plus any amount generated by new construction. The primary levy is estimated at $2.0 million for FY 2005-06.

City of Kelsey

Expenditure Structure As the City of Kelsey is a service entity it is not surprising that the largest expenditure is personal services. For the FY 2005-06 Personal Services account for 80% of the total budget. The remainer of 20% appropraited into Fees and Services (10%), Materials and Supplies (5%), and Capital (5%). Personnel expenditures increase by 4% primarily due to increases in health care and retirement contribution rate. Additional staff was added to Police and Community Services reflecting the City’s continued commitment to public safety, youth and social services programs. Transportation Funds Fund Structure Description The Highway User Revenue Fund (HURF) and the Local Transportation Assistance Fund (LTAF) are Special Revenue funds that comprise the City’s Transportation funds. They have been established to account for the receipt and expenditure of Kelsey’s allocation of state-shared Highway User taxes and state Lottery funds. Major Services

Studies and Design Operations Traffic Lights and Signal System Street and Field Maintenance Planning

Revenue Structure Transportation revenues are derived primarily 95.0% from state-shared Highway User taxes. State Lottery proceeds account for 5.0% of FY 2005-06. Highway User Tax Highway User revenues come primarily (60%) from the fuel tax (currently $0.05 per gallon), with the remainder from motor carrier fees (20%), vehicle license taxes (10%), vehicle registration fees (5%), and other transportation-related fees (5%). Estimates for the total pool of HURF revenues to be shared by cities will be $290.9 million in FY 2005-06, with Kelsey’s share at $3 million. Experience has shown, however, that state projections for HURF revenue have not proven reliable. In short, HURF revenues are subject to state policy changes, fuel sales, and population growth, all factors beyond the City’s control. Pursuant to state statute, HURF monies can be used only for street and highway purposes, including right-of-way acquisition, construction, reconstruction, maintenance in the public right-of-way, and payment of debt service on highway and street bonds. HURF funds may not be used for transit or law enforcement programs. Expenditure Structure Transportation funds include all personnel in the Streets and Traffic Operations and Transporations Divisions.

City of Kelsey

Major budgeted expenditures include: Personnel Services (42%), Utilities (20%), Material and Supplies (10%), Fees and Services (23%), and Capital (5%). Non-personnel expenditures are due to the installation of new energy efficient hollagen street signs. Debt Service Fund Fund Structure Description A Debt Service fund is maintained to receive dedciated revenues used to make principal and interest payments on the City’s general obligaition debt. Revenue Structure Debt Service fund revenues are derived soley from a secondary tax rate of $0.20 per $100 of assessed valuation. Debt Service revenues trends are a function of changes in assessed valuation and the City’s secondary property tax rate. While changes in the assessed valution represent the effect of marketplace and assessor methodology, the secondary rate is deterimined by City policy. Expenditure Structure Expenditures in this fund are confined to principal and interest on voter approved bond indebtness. To keep these costs in check, the Council adopted a long-range debt management plan, which is updated annually based on populations growth, tax base growth, and current levels of operating expenses.

City of Kelsey

Departmental Budget Summary The following table is a summary of Departmental budgets the previous and current fiscal years.

General Fund Department FY 2004-05 FY 2005-06 Employees Mayor and Council $141,658 $160,905 5 City Manager 1,214,913 1,486,075 6 Administration 1,500,727 1,827,878 22 Police 14,845,267 16,177,678 167 Fire 5,010,608 5,381,065 55 Community Services 6,043,324 6,226,130 22 Development Services 6,333,886 6,176,624 23 Total General Fund $35,090,383 $37,436,355 300 Transportation Fund $2,537,770 $2,600,298 8 Total $37,628,153 $40,036,653 308

City of Kelsey

Program Budget – Mayor and Council The Mayor and two City Council Members are the elected representatives of the citizens of Kelsey. They are charged with the formulation of public policy to meet community needs. The City Council is responsible for appointing the City Manager. Services provided by this division are as follows: (1) represent the City of Kelsey citizens (citizen input, advisory boards, intergovernmental relations); (2) formulate legislation (ordinances, resolutions); and (3) establish policy (goals and objectives, resource allocations).

Expenditure by Type

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Personal Services $69,525 $74,997 $78,733 $82,591 Supplies and Services 28,979 25,700 30,900 27,333 Capital Outlay 771 0 1,833 0 Internal Services 16,719 17,358 22,159 25,414 Contributions 19,177 23,603 24,859 25,567 Expenditure Total $135,170 $141,658 $158,484 $160,905 Per Capita $2.55 $2.67 $2.99 $3.04

Mayor and Council

City Boards City Manager City Commissions

City of Kelsey

Program Budget – City Manager Working with the City’s governing body, the community, and City staff, the mission of the City Manager’s Office is to professionally implement all City Council policy decisions, efficiently direct the City’s operations and activities in accordance with sound management principles, and create an organizational culture which results in the delivery of excellent municipal services to the citizens of Kelsey. Also, divisions report directly to the City Manager are Neighborhood Programs and Government Relations. The Neighborhood Program assists in organizing neighborhood associations and acts as a clearing house for neighborhood concerns. Government Relations represents the City's interests at the federal, state, regional, and local levels.

2003-04 Revised 2004-05 Budget 2005-06 Budget

Authorized Personnel Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

City Manager 4 1.49 4 1.49 4 1.49 Neighborhood Program 1 1 1 Government Relations 1 1 0 1 0 Total 6 1.49 6 1.49 6 1.49

Expenditure by Type

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Personal Services $434,023 $556,839 $678,593 $711,844 Supplies and Services 51,114 45,323 64,897 63,819 Internal Services (54,670) (54,289) (39,795) (64,574) Capital 51,749 59,583 64,507 61,140 Contributions 482,216 607,456 768,202 713,845 Expenditure Total $964,431 $1,214,913 $1,536,404 $1,486,075 Per Capita $18.20 $22.92 $28.99 $28.04

City Manager

Neighborhood Programs

Government Relations

City of Kelsey

Goal: To provide effective management and leadership to the operating departments to

ensure the achievement of City goals in an efficient and responsible manner.

Objective: 1) To plan and organize City Council meetings so that appropriate decisions are made in a timely manner; and 2) formulate and gain Council approval of strategic issues which provide the framework for departmental goals and objectives.

Measures 2003-04

Actual 2004-05 Budget

2004-05 Revised

2005-06 Budget

City Council meetings staffed 30 30 35 35 Strategic issues 6 6 10 10

City of Kelsey

Program Budget – Administration The Adminstration Department is comprised of the division of Accounting, Budget, Human Resources, Central Services and Tax & Licenses. The department’s operational functions include all finance, accounting, budget, purchasings, information technology, human resources, business licensing, tax collections, and customer service billing. Also, building maintenance and cleaning contract is adminstered by Central Services.

Expenditures by Type

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Personal Services $1,140,840 $1,088,668 $1,265,702 $1,327,722 Supplies and Services 493,821 556,247 561,883 589,416 Capital Outlay 0 0 9,265 9,719 Internal Services -120,627 -144,187 -94,355 -98,978 Expenditure Total $1,514,035 $1,500,727 $1,742,496 $1,827,878 Per Capita $28.57 $28.32 $32.88 $34.49 Expenditures by Division

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Administration $115,426 $128,585 $107,378 $112,639 Accounting 286,308 292,460 381,170 399,847 Budget 81,983 58,408 81,304 85,288 Central Services 592,386 604,664 688,675 722,420 Tax and License 437,931 416,611 483,969 507,684 Total $1,514,035 $1,500,727 $1,742,496 $1,827,878

Administration

Accounting Budget Central Services

Information Technology

Tax & License Customer Services

Human Resources Purchasing

City of Kelsey

2003-04 Revised 2004-05 Budget 2005-06 Budget

Authorized Personnel Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Administration 2 2 2 Accounting 4 0.63 4 0.63 4 0.63 Budget 2 2 2 Central Services 8 0.62 8 0.62 8 0.62 Tax and License 6 6 6 Total 22 1.25 22 1.25 22 1.25

Goal: To ensure the long-term financial success of the City through sound financial

management practices. Objective: To adhere to a financial management strategy that produces financial results that

compare favorably with our peer cities as measured by generally accepted financial indicators.

Measures 2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Administration and Budget Fund balance coverage 25% 25% 26% 25% Long-term debt per capita $205 $204 $150 $100

Goal: 1) To effectively perform accounts payable, payroll and other accounting functions for

City departments; and 2) maintain adequate internal controls, adhere to generally accepted accounting principles, and ensure the safety of the City's investments.

Objective: 1) To process accounts payable checks in a cost-effective manner; and 2) maintain the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting.

Measures 2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Accounting GFOA Certificate of Achievement Yes Yes Yes Yes Investment Policy Compliance Yes Yes Yes Yes Unqualified Audit Opinion Yes Yes Yes Yes

Goal: To improve organizational productivity, effectiveness and efficiency

Objective: 1) minimize the number of days to complete recruitments; and 2) maintain or reduce employee turnover

Measures 2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Central Services-Human Resources Average number of days to complete an recruitment and selection process 30 25 25 25 Employee Turnover Rate 8 9 8 8

City of Kelsey

Program Budget – Police The Police Department consists of Office of the Chief, Patrol, Support Services, and Investigations. The department’s responsibilities include effective and efficient police protection through investigations of criminal offenses, reinforcement of state laws and City ordinances, response to citizen requests for services, and maintenance of support services.

Expenditures by Type

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Personal Services $11,934,388 $11,731,334 $12,186,213 $12,783,337 Supplies and Services 965,435 966,892 948,595 995,077 Internal Services 2,147,041 2,147,041 2,287,192 2,399,264 Expenditure Total $15,046,864 $14,845,267 $15,422,000 $16,177,678 Per Capita $284 $280 $291 $305

Expenditures by Division

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Office of the Chief $1,138,070 $1,133,506 $1,193,981 $1,252,486 Patrol 6,320,551 6,331,074 6,569,165 6,891,054 Support Services 3,006,606 2,978,377 3,115,629 3,268,294 Investigations/Community Policing 4,581,637 4,402,311 4,543,225 4,765,843 Total $15,046,864 $14,845,267 $15,422,000 $16,177,678

Office of the Chief

Patrol Support Services Investigations Community Policing

City of Kelsey

2003-04 Revised 2004-05 Budget 2005-06 Budget

Authorized Personnel Full Time Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Office of the Chief 4 4 0 4 0 Patrol 67 1.00 3.29 67 1.0 3.29 70 1.0 3.29 Support Services 43 0 .70 43 0 .70 43 0 .70 Investigations 50 1.26 50 0 1.26 50 0 1.26 Total 164 1.00 6.25 164 1.00 6.25 167 1.00 6.25 Sworn 117 117 120 Non-Sworn 47 47 47 Total 164 164 167

Goal: To uphold and enforce the laws of the State and City through professional law enforcement, and maintain the department’s awareness of how the public perceives the department.

Objective: 1) To maintain or improve clearance rate of Part 1 crimes; 2) maintain at a minimum of 90% the level of citizens’ satisfaction with police services as measured by the annual citizen survey; and 3) efficiently manage resources to meet the needs of citizens with 2.0 sworn full-time equivalents (FTE) per capita.

Measures Measures

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Part 1 Crimes-Property 90 85 85 80 Part 1 Crimes-Persons 10 5 5 3 Clearance Rate 90% 90% 95% 98% Citizen satisfaction 97% 98% 98% 100% Sworn FTE’s per Capita (1,000) 2.20 2.20 2.20 2.26 Non-Sworn FTE’s per Capita (1,000) 8.86 8.86 8.86 8.86

Goal: To effectively answer "911" requests for Police, Fire, and emergency medical calls, and

to provide proactive neighborhood programs. Objective: 1) To respond to all citizen calls for police services; respond to accident emergency

calls within an average of under 5:00 minutes; 2) and maintain or increase neighborhoods participating in the Crime Watch Program.

Measures Measures

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

"911" calls answered 40,000 39,000 35,000 35,000 Citizen calls for police service 61,000 60,000 55,000 55,000 Average response time to emergency calls (minutes) 5:30 5:10 4:90 4:90 Neighborhoods with Crime Watch Program 300 350 350 350

City of Kelsey

Program Budget – Fire The Fire Department consists of Administration and Fire Prevention, Emergency and Medical Services, Training and Professional Development, Special Operations, Support Services, and Personnel Safety Divisions. The Department’s operational areas include administrative services, fire suppression, emergency management, emergency medical services, hazardous materials control, technical rescue, communications, equipment and facilities maintenance, training, fire prevention and inspection, and public safety education.

Expenditures by Type

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Personal Services $4,136,186 $4,099,516 $4,306,286 $4,517,294 Supplies and Services 349,742 334,443 328,561 344,660 Capital 216,730 214,986 98,000 102,802 Internal Services 362,073 361,664 396,863 416,309 Total $5,064,730 $5,010,608 $5,129,710 $5,381,065 Per Capita $95.56 $94.54 $96.79 $101.53

Expenditures by Division 2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Administration and Fire Prevention $855,318 $817,140 $840,556 $881,744 Emergency and Medical Services 3,545,563 3,477,101 3,671,135 3,851,021 Training and Professional Development 175,457 229,407 184,293 193,323 Support Services and Personnel Safety 488,393 486,960 433,725 454,978 Total $5,064,730 $5,010,608 $5,129,710 $5,381,065

Office of the Fire Chief

Administration and Fire Prevention

Emergency and Medical Services

Training and Professional Development

Support Services and Personnel Safety

City of Kelsey

2003-04 Revised 2004-05 Budget 2005-06 Budget

Authorized Personnel Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Administration and Fire Prevention 6 6 6 Emergency and Medical Services 43 43 43 Training and Professional Development 2 0 2 0 2 0 Support Services and Personnel Safety 4 .50 4 .50 4 .50 Total 55 .50 55 .50 55 .50

Goal: To provide efficient response to fire, medical, hazardous materials, and rescue emergencies.

Objective: 1) To reduce safe emergency responses by an average of five seconds; and 2) maintain a 99% or better citizen satisfaction with fire and paramedic services.

Measures 2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Responses to fire alarms 900 900 850 850 Responses to emergency medical incidents 10,000 11,000 11,500 11,500 Responses to special operations incidents 5 5 4 4 Responses to other emergency services 300 300 350 350 Average emergency response time minutes (from call receipt to arrival) 4:90 4:90 4:95 4:90 % of emergency responses taking 5.0

minutes or less 90% 90% 95% 98% Calls per capita (1,000) 40 40 45 45 Citizen satisfaction 99% 99% 98% 100%

City of Kelsey

Program Budget – Community Services The Community Services Department consists of Administration, Parks & Recreation, Library, Cultural Services, and Social Services Divisions. The Department’s responsibilities include developing, scheduling and supervising City recreation programs; a full range of public library services; historical/cultural enrichment to Kelsey residents; and social service programs.

Expenditures by Type

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Personal Services $4,497,655 $4,250,074 $4,239,958 $4,447,716 Supplies and Services 917,591 890,131 860,126 902,272 Capital Outlay 13,167 13,167 0 0 Internal Services 869,177 869,177 814,442 854,350 Contributions 20,775 20,775 20,775 21,793 Expenditure Total $6,318,364 $6,043,324 $5,935,300 $6,226,130 Per Capita $119.21 $114.02 $111.99 $117.47

Expenditures by Division 2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Administration $184,833 $180,491 $167,843 $234,699 Parks and Recreation 2,034,494 1,915,111 1,988,267 2,028,122 Library 1,517,748 1,467,625 1,466,566 1,496,161 Cultural Services 545,169 489,539 1,039,338 1,166,306 Social Services 2,036,120 1,990,558 1,273,286 1,300,842 Total $6,318,364 $6,043,324 $5,935,300 $6,226,130

Community Services Administration

Parks and Recreation Cultural Services Social Services Library

City of Kelsey

2003-04 Revised 2004-05 Budget 2005-06 Budget

Authorized Personnel Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Community Services Admin. and Parks & Recreation 2 2 2

Library 16 16 16

Cultural Services 1 0 1 0 2 0 Social Services 2 .50 2 .50 2 .50 Total 21 .50 21 .50 22 .50

Goal: To provide access to excellent library resources and services that will assist

community residents of all ages obtain information that meets their educational, professional, and recreational needs.

Objective: To increase community usage of the library’s collection and electronic research resources.

Measures 2003-04

Actual 2004-05 Budget

2004-05 Revised

2005-06 Budget

Library visitors (door count) 100,000 110,000 110,000 110,000 Registered borrowers 43,000 45,000 50,000 50,000 Circulation 500,000 500,000 550,000 600,000 Patrons Using Internet 21,000 22,000 25,000 25,000

Goal: To collect, record, and preserve tangible aspects of Kelsey's past; and present and interpret Kelsey's history to the general public.

Objective: 1) To improve documentation of objects in the permanent artifact collections of the Kelsey Historical Museum; and 2) increase public visitation at the Historical Museum.

Measures 2003-04

Actual 2004-05 Budget

2004-05 Revised

2005-06 Budget

Objects catalogued 1,000 1,000 1,500 2,000 Visitors to Historical Museum and

Peterson House 3,000 3,000 3,500 4,000

Goal: To provide quality arts programming to the community, facilitate the effective use of arts facilities, and provide a diverse array of arts opportunities.

Objective: 1) To support arts programming through grants funding of arts organizations and schools; and 2) offer a wide array of quality programs and classes.

Measures 2003-04

Actual 2004-05 Budget

2004-05 Revised

2005-06 Budget

Program enrollment 3,500 3,500 3,600 3,700 Participants reached through

grants 10,000 10,000 11,000 12,000

City of Kelsey

Program Budget – Development Services The Development Services Department is responsible for enhancing the quality of Kelsey’s living environment and its economic base. The major divisions include Planning & Code Compliance, Housing Services (Section 8, CDBG and HOME), Community Design & Development and Building Safety and Permits. Services provided are as follows: (1) current planning- Administrative support for Design Review, Board of Adjustment, Planning Commission, and City Council; (2) receive and investigate complaints of all alleged city code violations, and initiate action to abate violations; (3) recommend codes and ordinances, rules and regulations applicable to construction and property conservation; (4) check building plans and specifications of all proposed construction; (5) conduct on-site building inspections; (6) develop neighborhood plans; (7) provide affordable housing planning; (8) provide low interest housing rehabilitation loans for the elderly, persons with disabilities and low-income individuals and families; (9) provide rental assistance payments for the elderly, persons with disabilities and low-income individuals and families; (10) administer redevelopment and historic preservation programs; and (11) maintain statistical and demographic information for the City.

Expenditures by Type

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Personal Services $2,364,448 $2,141,442 $1,958,222 $2,054,175 Supplies and Services 2,647,151 3,546,734 3,425,514 3,593,364 Capital Outlay 0 31,139 1,600 1,678 Internal Services 393,560 393,560 259,716 272,442 Contributions 175,290 153,509 194,588 204,123 Expenditure Total $5,647,951 $6,333,886 $5,888,107 $6,176,624 Per Capita $106.57 $119.51 $111.10 $116.54

Development Services

Planning and Code Compliance

Housing Services

Community Design and Development

Building Safety and Permits

City of Kelsey

Expenditures by Division 2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Development Services - Admin. $64,977 $60,189 $61,074 $64,067 Planning 546,502 516,383 408,056 428,050 Code Compliance 340,236 363,604 370,685 388,848 Housing Services

CDBG & HOME Grants 895,869 1,822,791 1,097,077 1,150,833 Section 8 Housing Grants 2,017,088 2,067,095 2,558,997 2,684,388

Community Design & Dev. 543,863 493,576 520,777 546,295 Building Safety & Permits 1,239,416 1,010,248 871,441 914,142 Total $5,647,951 $6,333,886 $5,888,106 $6,176,624

2003-04 Revised 2004-05 Budget 2005-06 Budget

Authorized Personnel Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Administration 1 1 1

Planning & Code Compliance 10 1.00 10 1.00 10 1.00

Housing Services – CDBG & HOME 2 2 2

Housing Services – Section 8 2 2 2

Community Design & Development 4 4 4

Building Safety & Permits 4 4.00 4 4.00 4 4.00 Total 23 5.00 23 5.00 23 5.00

City of Kelsey

Goal: To preserve the City's neighborhoods and standard housing stock by providing

housing assistance to low income people in Kelsey, at standards required by the U.S. Department of Housing and Urban Development.

Objective: To increase the number of houses rehabilitated using federal Community Development Block Grant and HOME program funding, while maximizing staff productivity and controlling administrative costs.

Measures 2003-04

Actual 2004-05 Budget

2004-05 Revised

2005-06 Budget

Single family houses rehabilitated: Community Development Block Grant 10 12 15 15 HOME (Home Occupancy Made Easier) Program Funds 10 10 10

10

Households assisted per FTE staff 20 20 22 25 First-time Homebuyer Program (CAMP) General Fund 15 20 20 25 Goal: To provide decent, safe and sanitary housing for the City's low and moderate income

citizens.

Objective: To provide rental subsidies and family self-sufficiency guidance to low income people living in private rental housing within Kelsey.

Measures Measures

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Households receiving rental subsidies 100 120 110 110 Housing certifications/inspections provided Certifications 400 400 350 100 Inspections 250 250 300 300

Goal: To verify through formal plan check and permit processes that plans, specs, and

engineering calculations meet minimum requirements for adopted building codes, ADA, and planning & zoning ordinances.

Objective: To provide thorough, accurate, objective plan check services for all applicants within the following standard timeframes: new commercial building 20 days; new residential construction 12 days.

Measures Measures

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Plan Check Building plans submitted 700 700 750 750 Plans checked per month (weighted)

40 40 50 50

Average plan review time (days): New commercial building 15 20 20 20 New residential construction 8 12 12 12

City of Kelsey

Goal: To perform on-site inspections of commercial and residential buildings, and to inspect damaged buildings for compliance.

Objective: To consistently perform at least 33 inspections per inspector per day on a sustained basis without reducing the level of service or quality of inspections.

Measures Measures

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Building Inspection Number of inspections performed 70,000 44,000 45,100 46,000 Inspections per inspector per day 33.0 34.9 33.0 33.0

City of Kelsey

Program Budget – Transportation Services Transportation services is comprised of Transportation Operations, traffic engineering, transit and transportation planning. Transportation is responsible for traffic engineering design and studies, traffic calming, transit services, long range transportation planning, pavement marking and striping, traffic signal maintenance and construction, and street lighting.

Expenditures by Type

2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Personal Services $1,057,230 $1,071,212 $1,044,100 $1,095,261 Supplies and Services 661,566 689,675 661,264 693,666 Capital Outlay 81,240 81,216 127,000 133,223 Internal Services 695,666 695,666 646,471 678,148 Expenditure Total $2,495,702 $2,537,770 $2,478,835 $2,600,298 Per Capita $47.09 $47.88 $46.77 $49.06

2003-04 Revised 2004-05 Budget 2005-06 Budget

Authorized Personnel Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Full Time

Perm FTE

Temp FTE

Transportation 8 1.49 8 1.49 8 1.49 Total 8 1.49 8 1.49 8 1.49

Transportation Administration

Traffic Operations

Street Maintenance

City of Kelsey

Goal: To improve and ensure the safety and efficiency of the city’s transportation system. Objective: 1) To paint 1.62M linear ft. of roadway striping and 220 crosswalks annually; 2)

provide quality traffic signing along streets; 3) assure that traffic signals work as designed at all times by annually rewiring 14 intersections, upgrading 5 traffic control cabinets, performing preventative maintenance on all traffic control cabinets twice, and retrofitting signal heads to LED in 20 intersections; and 4) ensure a safe, reliable and energy efficient lighting system by upgrading 70 street lights annually and replacing all structurally deficient street light poles.

Measures 2003-04 Actual

2004-05 Budget

2004-05 Revised

2005-06 Budget

Lane lines striped annually (linear ft) 6,000,000 6,000,000 6,100,000 6,200,000

Crosswalks striped 200 200 210 220 Preventative maintenance of street signs 6 6 6 6 Intersections upgraded (rewired) 12 12 12 14

Traffic control cabinets upgraded 5 5 5 5 Traffic control cabinets preventative maintenance 100 100 120 120

Light Emitting Diode (LED) retrofits 10 10 20 20 Street light lamp upgrades 50 50 60 70 Replace structurally deficient street poles 30 30 45 50

City of Kelsey

Glossary of Terms Accrual Basis - A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. Appropriation - An authorization made by the City Council which permits the City to incur obligations to make expenditures for specific purposes. Assessed Valuation - A value that is established for real and personal property for use as a basis for levying property taxes (Note: Property values are established by the County). Asset - Resources owned or held by a government which have monetary value. Available (Undesignated) Fund Balance - Refers to the funds remaining from the prior year which are available for appropriation and expenditure in the current year. Bond - A written promise to pay a sum of money on a specific date at a specified interest rate. The interest payments and the repayment of the principal are detailed in a bond ordinance. The most common types of bonds are general obligation, revenue bonds, and special improvement district bonds. These are most frequently used to finance capital projects. Bond Refinancing - The payoff and re-issuance of bonds, to obtain better interest rates and/or bond conditions. Budget - A plan of financial operation for a specified period of time (fiscal year). The Biennial Budget authorizes, and provides the basis for control of, financial operations during the fiscal year.

Capital Improvements Program Budget - A Capital Improvements Program (CIP) Budget is a separate budget from the operating budget. Items in the CIP are usually construction or renovation projects designed to improve the value of the government assets. Examples of capital improvement projects include new roads, sewer lines, buildings, recreational facilities and large scale remodeling. The City Council receives a separate document that details the CIP costs for the upcoming fiscal year. Line-Item Budget - A budget that lists each expenditure category (salary, materials, telephone service, travel, etc.) separately, along with the dollar amount budgeted for each specified category. Operating Budget - The portion of the budget that pertains to daily operations that provide basic governmental services. The operating budget contains appropriations for such expenditures as personnel, supplies, utilities, materials, travel, and fuel. Performance Budget - A budget that focuses upon departmental goals and objectives rather than line items, programs, or funds. Workload and unit cost data are collected in order to assess the effectiveness and efficiency of services. Typical measures collected might include average emergency response time for fire or cost per man-hour of garbage collection.

City of Kelsey

Program Budget - A budget that focuses upon broad functions or activities of an agency or jurisdiction rather than upon its organizational budget units or object classes of expenditure. The City's programs: (1) General Services; (2) Development Services; (3) Public Safety; (4) Environmental Health; (5) Community Services; and (6) Public Transportation.

Budget Adjustment - A procedure to revise a budget appropriation either by City Council approval through the adoption of a supplemental appropriation ordinance for any interdepartmental or interfund adjustments or by City Manager authorization to adjust appropriations within a departmental budget. Budget Calendar - The schedule of key dates or milestones which the City follows in the preparation, adoption, and administration of the budget. Budget Document - The instrument used by the budget-making authority to present a comprehensive financial program to the City Council. Budget Group - A fun group of hard working employees responsible for budget preparation, benchmarking, forecasting, and financial analysis. Budget Message - The opening section of the budget which provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, and recommendations regarding the financial policy for the upcoming period. Budgetary Control - The control or management of a governmental unit or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of authorized appropriations and available revenues. Capital Budget - The appropriation of bonds or operating revenue for improvements to facilities and other infrastructure. Capital Improvements - Expenditures related to the acquisition, expansion or rehabilitation of an element of the government's physical plant; sometimes referred to as infrastructure. Capital Improvements Program - A plan for capital expenditures to provide long-lasting physical improvements to be incurred over a period of several future years. Kelsey's City Charter requires annual submission of a five-year capital program for City Council approval. Capital Outlay- Expenditures which result in the acquisition of or addition to fixed assets. Cash Basis - A basis of accounting in which transactions are recognized only when cash is increased or decreased. Contingency - A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Debt Management (Capacity) Plan - The City's basis to evaluate upcoming and future debt financing in relation to the impact the borrowing will have on the City's debt ratios and relatedly the City's credit position as determined by the major rating agencies.

City of Kelsey

Debt Service - The amount of interest and principal that a City must pay each year on net direct long-term debt plus the interest it must pay on direct short-term debt.

Direct Debt - The sum of the total bonded debt and any unfunded debt (e.g. short-term notes) of the City for which the City has pledged its "full faith and credit." It does not include the debt of overlapping jurisdictions.

Self-Supporting Debt - Debt for which the City has pledged a repayment source separate from its general tax revenues (e.g. water bond repaid from water utility income/special assessment bonds).

Outstanding Tax Supported Debt - Direct debt minus self-supporting debt. Debt for which the City has pledged a repayment from its secondary property taxes.

Overlapping Debt - The City's proportionate share of the debt of other local governmental units which either overlap it or underlie it. The debt is generally apportioned based on relative assessed value.

Overall Net Debt - Net direct debt plus overlapping debt.

Debt Service Fund Requirements - The amounts of revenue which must be provided for a Debt Service Fund so that all principal and interest payments can be made in full on schedule. Deficit - The excess of an entity’s liabilities over its assets or the excess of expenditures over revenues during a single accounting period. Department - A major administrative division of the City which indicates overall management responsibility for an operation or a group of related operations within a functional area. Depreciation - Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy, or obsolescence. Division - A group of homogeneous cost centers within a department, i.e., all traffic engineering, traffic operations and transit cost centers make up the Transportation Division within the Public Works Department. Employees types of classifications: (1) Full-time - works 40 hrs/week (full-time) and is benefitted; (2) Permanent FTE - works more than 19.5 hours per week and less than 40 hrs/week, is not seasonal, is not of specific limited duration, and is not for educational training; and (3) Temporary FTE - works less than 40 hrs/week, is seasonal, and is of specific limited duration, or is for educational training Encumbrance - The legal commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a future expenditure. Estimated Revenue - The amount of projected revenue to be collected during the fiscal year. Expenditure/Expense - This term refers to the outflow of funds paid for an asset obtained or goods and services obtained.

City of Kelsey

Fiscal Year - The time period designated by the City signifying the beginning and ending period for recording financial transactions. The City of Kelsey has specified July 1 to June 30 as its fiscal year. Fixed Assets - Assets of long-term character which are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment. Full Faith and Credit - A pledge of a government’s taxing power to repay debt obligations. Fund - A set of inter-related accounts to record revenues and expenditures associated with a specific purpose. Fund structure consists of Governmental Funds (e.g., General Fund, Special Revenue Fund, Debt Service Fund), Proprietary Funds, and Fiduciary Funds (See previous section on "Financial Structure and Operations" for complete description of funds). Governmental Funds

Capital Projects Fund - Capital Projects Funds are used 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). Debt Service Fund - Debt Service Funds are set up to receive dedicated revenues used to make principal and interest payments on City debt. They are used to account for the accumulation of resources for, and the payment of, general obligation and special assessment debt principal, interest and related costs, except the debt service accounted for in the Special Revenue Funds, and Enterprise Funds.

General Fund - The General Fund is the general operating fund of the City. It is used to account for all activities of the City not accounted for in some other fund.

Special Revenue Fund - Special Revenue Funds are set up as accounts for Federal or State grants legally restricted to expenditures for specific purposes. Our Special Revenue Funds include the Highway User Fund, the Local Transportation Assistance Fund, the Performing Arts Fund, the Community Development Fund, and the Housing Assistance Fund.

Proprietary Funds

Enterprise Funds - Enterprise Funds are used to account for operations including debt service (a) that are financed and operated in a manner similar to private businesses - where the intent of the government body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis is financed or recovered primarily through user charges; or (b) where the governing body has determined that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control accountability, or other purposes. Our Enterprise Funds include the Water and Wastewater Fund, the Solid Waste Fund, and the Golf Course Fund.

Fund Balance - The difference between revenues and expenditures. The beginning fund balance represents the residual funds brought forward from the previous year (ending balance). Generally Accepted Accounting Principles (GAAP) - Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that

City of Kelsey

define accepted accounting principles. General Governmental Revenue - The revenues of a government other than those derived from and retained in an enterprise fund. General Governmental revenues include those from the General, Debt Service, and Special Revenue Funds. Goal - A long-term, attainable target for an organization–its vision of the future. Grant - A contribution by the State or Federal government or other organization to support a particular function. Grants may be classified as either categorical or block depending upon the amount of discretion allowed the grantee. Indirect Cost - A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned, such as administrative support, facility maintenance or custodial services. Intergovernmental Revenue - Funds received from federal, state and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. Interfund Transfer - The movement of monies between funds of the same governmental entity. Internal Services Charges - The charges to user departments for internal services provided by another government agency, such as data processing, fleet services and communications. Levy - To impose taxes for the support of government activities. Line-Item Budget - A budget prepared along departmental lines that focuses on what is to be bought. Long-Term Debt - Debt with a maturity of more than one year after the date of issuance. Objective - A specific measurable and observable result of an organization's activity which advances the organization toward its goal. Operating Expenses - The cost for personnel, materials and equipment required for a department to function. Operating Revenue - Funds that the government receives as income to pay for ongoing operations, including such items as taxes, user fees, interest earnings, and grant revenues. Operating revenues are used to pay for day-to-day services. Pay-As-You-Go Financing - A term used to describe a financial policy by which the capital program is financed from current revenues rather than through borrowing. Performance Budget - A budget wherein expenditures are based primarily upon measurable performance of activities and work programs. Performance Indicators - Specific quantitative and qualitative measure of work performed as an objective of the department. Personal Services - Expenditures for salaries, wages, and fringe benefits of a government's

City of Kelsey

employees. Policy - A plan, course of action or guiding principle, designed to set parameters for decisions and actions. Prior Year Encumbrances - Obligations from previous years in the form of purchase orders or contracts which are chargeable to an appropriation, and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise terminated. Program Budget - A budget which allocates money to the functions or activities of a government rather than to specific items of cost or to specific departments. The City’s program budget is divided into six major programs:

(1) General Services consist of: Mayor and Council; City Manager; Internal Audit; Diversity Program; Community Relations; City Clerk; Human Resources; City Attorney; Financial Services; Public Works; Information Technology; and Other Programs. (2) Development Services consist of: Development Services - Section 8 Housing; and Public Works – Design/Construction/ Landscape maintenance. (3) Public Safety consists of: City Court; Police; and Fire. (4) Community Services consist of: Community Services – Recreation/Library/ Social Services; and Public Works – Park Maintenance. (5) Transportation consists of: Public Works – Transit/Street Maintenance.

Property Tax - A levy upon the assessed valuation of the property within the City upon each $100 of valuation. Property taxes consist of both primary and secondary levies.

Primary Property Tax - A statutory limited tax levy which may be imposed for any purpose.

Secondary Property Tax - An unlimited tax levy which may be used only to retire the principal and interest or redemption charges on bond indebtedness.

Retained Earnings - An equity account reflecting the accumulated earnings of an enterprise or internal service fund. Revenue - Funds that the government receives as income. It includes such items as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenues and interest income. Revenue Bonds - Bonds usually sold for constructing a project that will produce revenue for the government. That revenue is pledged to pay the principal and interest of the bond. Reserve - An account used to indicate that a portion of a fund's assets are legally restricted for a specific purpose and is, therefore, not available for general appropriation. Resolution - A special or temporary order of a legislative body requiring less legal formality

City of Kelsey

than an ordinance or statute. Resources - Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. Risk Management - An organized attempt to protect a government's assets against accidental loss in the most economical method. Source of Revenue - Revenues are classified according to their source or point of origin. Tax Levy - The resultant product when the tax rate per one hundred dollars is multiplied by the tax base. Taxes - Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments. Transfers In/Out - Amounts transferred from one fund to another to assist in financing the services for the recipient fund. Unencumbered Balance - The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future purposes. Unreserved Fund Balance - The portion of a fund's balance that is not restricted for a specific purpose and is available for general appropriation. User Charges - The payment of a fee for direct receipt of a public service by the party who benefits from the service. Workload Indicator - A unit of work to be done (e.g., number of permit applications received, the number of households receiving refuse collection service, or the number of burglaries to be investigated).

City of Kelsey

RESOLUTION NO. 2005.23

A RESOLUTION DETERMINING AND ADOPTING FINAL ESTIMATES OF PROPOSED EXPENDITURES BY THE

CITY OF KELSEY FOR THE FISCAL YEAR BEGINNING JULY 1, 2005, AND ENDING JUNE 30, 2006, DECLARING THAT

SUCH SHALL CONSTITUTE THE BUDGET FOR THE CITY OF KELSEY FOR SUCH FISCAL YEAR.

WHEREAS, in accordance with the provisions of Title 42, Sections 17101-17104 inclusive, State Revised Statutes, the City Council did, on May 19, 2005, make an estimate of the amounts required to meet the public expenses for the ensuing year, also an estimate of revenues from sources other than direct taxation, and the amount to be raised by taxation upon real and personal property within the City of Kelsey, and WHEREAS, in accordance with said sections of said Title, and following due public notice, the Council met on June 2, 2005, at which meeting any taxpayer was entitled to appear and be heard in favor of or against any of the proposed expenditures or tax levy, and WHEREAS, publication has been duly made as required by law, of said estimates together with a notice that the City Council set a property tax public hearing for June 2, 2005, and set an adoption date of June 16, 2005, to adopt the property tax rate, and WHEREAS, the sums to be raised by primary taxation, as specified therein, do not in the aggregate amount exceed that amount as computed in Title 42, Section 17051, S.R.S., therefore be it RESOLVED, that the said estimates of revenues and expenditures shown on the accompanying schedules as now increased, reduced or changed by the same are hereby adopted as the budget of the City of Kelsey, for the fiscal year 2005-2006. PASSED BY THE CITY COUNCIL OF KELSEY, this ______ day of ________, 2005.

___________________________

MAYOR ATTEST: CITY CLERK

APPROVED AS TO FORM: CITY ATTORNEY FINANCIAL SERVICES MANAGER