BUDGET 2013

Budget Cuts over the last 4 years from Loss of Revenue

• Personnel $1,122,600.00• Operations $1,224,500.00• Capital Projects $1,367,400.00

TOTAL $3,714,500.00

Issue #1 – Water Rate

• Increase Water rates to pay for Jordanelle water. In 1976, the Metropolitan Water District of Orem signed an agreement with CUWCD for Jordanelle Water for the benefit and use in the City of Orem. The increases will continue through 2017.

• Cover increase in operation costs. Proposed Increase: • Increase the base rate for a ¾” meter from $12.66 to

$13.07(this is $0.25 for Jordanelle Water and $0.16 for O&M. Total monthly increase for ¾” meter = $0.41). All other meter size base rates will be increased proportionately.

Issue #2 – Sewer Rate

• Increase the sewer usage rate to cover increased operation costs.

Proposed Increase:• Increase Volume Charge from $1.39/1,000 gallons to

$1.42/1,000 gallons. This will be around a $.39 increase per month for each connection.

Issue #3 – Street Lighting Fee

• It is our goal to have all enterprise funds be self sustaining based on the fees charged. The General Fund still contributes to the Street Lighting Fund. With this increase the General Fund will still be contributing around $250,000.00 per year to the Street Lighting Fund.

Proposed Increase:• Implement a Street Lighting Operation and Maintenance

fee of $2.00/month.

Issue #4 – Residential Solid Waste Container Fee

• With the new contract on Solid Waste Services we propose to do the following:

Proposed Fee Decrease:• Reduce the Residential Solid Waste Container fee

from $10.60/month to $10.10/month. Reduce the Recycling Container fee from $3.55/month to $3.05/month.

Issue #5 – Vehicle Replacement Program

• Budget $600,000.00 for vehicle replacement program.

VEHICLE REPLACENT 2012-2013 Fund 10

Veh # Dept Description old Description new Cost Running Total Mileage•3707 10 6540 2008 Ambulance Ambulance $135,000 $ 135,000 99,594 •2054 10 6520 2005 Crown Vic Pickup 4x4 crew $ 36,000 $ 171,000 102,332 •2057 10 6520 2005 Crown Vic Full-size Sedan $ 32,000 $ 203,000 104,410 •2061 10 6520 2005 Crown Vic Full-size Sedan $ 32,000 $ 235,000 108,412 •7980 10 7549 1997 Ford 1 ton Dump $ 38,000 $ 273,000 126,798 •2048 10 6520 2004 Crown Vic Full-size Sedan $ 32,000 $ 305,000 97,619 •2065 10 6520 2005 Crown Vic Full Size Sedan $ 32,000 $ 337,000 96,085 •2062 10 6520 2005 Crown Vic Full-size Sedan $ 32,000 $ 369,000 97,932 •2066 10 6520 2005 Crown Vic Full-size Sedan $ 32,000 $ 401,000 95,705 •4675 10 7532 1997 Chev Bucket Truck $ 95,000 $ 496,000 42,178 •3102 10 6530 2002 Impala Mid-size Sedan $ 25,000 $ 521,000 111,180 •3050 10 6530 2001 T-Bird Mid-size Sedan $ 25,000 $ 546,000 98,608 •3281 10 6552 2002 Chev Pickup Full Size Pickup $ 32,000 $ 578,000 133,265 •7303 10 7547 2002 Utility Vehicle Utility Vehicle $ 14,000 $ 592,000 •2056 10 6520 2005 Crown Vic Full-size Sedan $ 32,000 $ 624,000 90,005 •3053 10 6540 2003 Expedition 4X4 SUV $ 35,000 $ 659,000 106,592 •7404 10 7547 1997 Toro Mower Riding mower $ 20,000 $ 679,000 •3301 10 6530 2000 Impala Mid-size Sedan $ 25,000 $ 704,000 102,870 •3502 10 6531 2001 Dakota pickup $ 32,000 $ 736,000 138,191 •2078 10 6520 2007 Crown Vic Full Size Sedan $ 32,000 $ 768,000 93,013 •3504 10 6530 2002 Ford pickup 4X4 $ 35,000 $ 803,000 134,516 •7001 10 7547 1998 Dodge pickup 1/2 ton Pickup $ 25,000 $ 828,000 108,550 •3505 10 6530 2002 Ford Explorer $ 35,000 $ 863,000 135,795 •2069 10 6520 2005 Crown Vic Full Size Sedan $ 32,000 $ 895,000 92,032 •3201 10 6554 1998 Dodge pickup Full Size 4X4 Pickup $ 32,000 $ 927,000 78,622 •3508 10 6530 2007 Grand Cherokee $ 32,000 $ 959,000 90,843 •1100 10 4510 1997 Dodge Mini Van $ 25,000 $ 984,000 89,285•2032 10 6520 2001 Crown Vic Full Size Sedan $ 32,000 $ 1,016,000 90,007 •7102 10 7547 2001 Dodge 1 Ton 1 ton Dump $ 35,000 $ 1,051,000 128,341 •1200 10 7578 1999 3/4 Chev pickup 3/4 ton Pickup $ 25,000 $ 1,076,000 101,697 •2085 10 6520 2008 Crown Vic Full Size Sedan $ 32,000 $ 1,108,000 87,037 •3203 10 6554 2001 Crown Vic Full Size Sedan $ 32,000 $ 1,140,000 86,100 •7150 10 7548 1997 Ford 4X4 1 Ton Dump $ 37,000 $ 1,177,000 •3507 10 6530 2007 Chrysler Mini Van $ 32,000 $ 1,209,000 93,249 •2029 10 6520 2001 Crown Vic Full Size Sedan $ 32,000 $ 1,241,000 83,767 •2047 10 6520 2004 Crown Vic Full-size Sedan $ 32,000 $ 1,273,000 83,603 •1001 10 4510 1997 Lumina Mid-size Sedan $ 23,000 $ 1,296,000 82,085 •1601 10 6040 1999 Chev Pickup Full Size Pickup $ 23,000 $ 1,319,000 81,303 •7405 10 7547 1998 Toro Mower Riding mower $ 20,000 $ 1,339,000 •3051 10 6540 1997 Ford Pickup 4X4 ext cab pickup $ 32,000 $ 1,371,000 84,813 •2041 10 6550 2002 Crown Vic Full Size Sedan $ 32,000 $ 1,403,000 81,919 •2040 10 6550 2002 Crown Vic Full Size Sedan $ 32,000 $ 1,435,000 80,561 •2036 10 6530 2001 Crown Vic Full Size Sedan $ 32,000 $ 1,467,000 81,007 •962 10 4510 1994 Dodge Van full Size Van $ 26,000 $ 1,493,000 45,325 •995 10 8013 1990 Dodge Van 1 Ton Van $ 26,000 $ 1,519,000 58,856 •632 10 7547 1674 Trailer Utility Trailer $ 3,000 $ 1,522,000 •7406 10 7547 1998 Toro Mower Riding mower $ 20,000 $ 1,542,000 •7407 10 7547 1998 Toro Mower Riding mower $ 20,000 $ 1,562,000 •1600 10 6040 1997 Lumina 1/2 ton Pickup $ 21,000 $ 1,583,000 39,585

Issue #6 – Employee Compensation

• Budget a 2% market adjustment

Employee CompensationCity of Orem

2% Salary Increase Cost by Fund

Total Payroll Cost

2% 0% Payroll Cost of 2% Increase

Fund Increase Increase Increase Salary Benefits

General Fund $ 30,316,232 $ 29,838,654 $477,578 $ 374,300 $ 103,278

Water Fund 1,738,379 1,709,889 28,490 22,517 5,973

Water Rec Fund 2,059,184 2,029,882 29,302 26,028 3,274

Storm Sewer Fund 673,222 662,272 10,950 8,638 2,312

Rec Fund 449,878 442,579 7,299 5,815 1,484

Street Lighting Fund 97,187 95,505 1,682 1,332 350

Fleet Maint Fund 462,073 454,500 7,573 5,990 1,583

Purch/Warehouse Fund 232,060 228,106 3,954 3,128 826

Self-insurance Fund 84,288 82,716 1,572 1,247 325

CNS Fund 133,178 130,659 2,519 2,026 493

Animal Shelter Fund 342,074 337,091 4,983 4,296 687

Total $ 36,587,755 $ 36,011,853 $575,902 $ 455,317 $ 120,585

Issue #7 – Computer & Technology Upgrades

• Budget $158,125.00 for computer and technology upgrades

Computer Upgrade PlanDepartment Description Amount

City Manager Replacement voice recording software for City Council and Planning Commission meetings $2,000

Replacement computers for City Recorder, City Council Chamber and Economic Development Office 2,700

Windows 7 licensing – 5 computers 625

Administrative Services

Flat screen for laptop presentations in Main City Center Conference Room 1,500

Development Services Replacement of surveying GPS rover 24,000

Replacement of 2 GPS radios 6,200

Public Safety Replacement of 20 patrol vehicle laptops 40,000

Replacement of 11 desk top computers (without monitors) 16,500

Various computer and software maintenance fees (excluding the Spillman system) 15,000

Replacement of 8 Dispatch Center computers (without monitors) 12,000

Public Works Replacement of Cemetery Office computer 2,500

Recreation Replacement of 2 work station computers 4,500

Library Services Replacement of 11 staff computers 11,000

Replacement of 20 public access thin clients 10,000

Off-site NAS/backup server 7,000

Printer for Information Technology staff 1,500

Replacement of 11 LCD monitors (PAC & Circulation Stations) 1,100

Total $158,125

Issue #8 – General Fund Property Tax Revenue Increase

• Should the City proceed with Truth in Taxation procedures in order to address the UTOPIA obligation and establish a tort liability fund? The Tentative Budget includes a general property tax increase of $3,000,000 for the UTOPIA obligation and a tort liability increase of approximately $350,000.

Comparisons

City Water Sewer Storm Sewer Garbage Property Tax Monthly TotalOgden 75.37 28.91 6.91 17.79 48.86 177.84American Fork 41.50 53.75 6.00 10.00 43.95 155.20Pleasant Grove 44.24 47.94 7.74 10.61 39.01 149.54West Valley 49.60 18.00 4.00 6.45 59.68 137.73Lehi 32.65 44.00 5.00 14.00 41.42 137.07Sandy 52.29 33.44 5.70 12.50 31.91 135.84Lindon 39.32 42.31 4.64 9.58 37.40 133.25Springville 36.25 33.47 4.97 11.75 37.61 124.05Spanish Fork 50.49 28.90 5.22 9.36 29.21 123.18Provo 27.72 22.37 4.63 11.00 44.39 110.11Payson 33.34 30.49 5.26 10.52 30.46 110.07Orem 28.90 27.39 4.75 10.60 35.56 107.20

Water is based on the City of Orem average residential use of 28,000 gallons per month with a 3/4 inch meter. If a city haspressurized irrigation, a mix of 11,500 gallons of culinary water to 16,500 gallons of pressurized irrigation (secondary) waterwas utilized.

Sewer is based on the City of Orem average residential use of 13,000 gallons per month.

Property tax was calculated based on a home value of $200,000.

Issue #9 – Fees & Charges

• Exhibit “B” in the Budget Book.

Fiscal Year 2012-2013

Redevelopment Agency of Orem

Redevelopment Agency

• Current Year’s Budget–$4,020,000

• Prior Year’s Budget–$3,665,000

Redevelopment AgencyProject Area 85-01

• Orem Tek– $722,000– 95% of tax increment through FY 2014-2015

• US Synthetics Corporation– $33,333– Fixed amount FY 2012-2013 and FY 2013-2014

Redevelopment AgencyProject Area 85-03A

• Orem Mazda– $75,000– Up to 50% of $150,000 of sales tax generated

between October 2011 and September 2012– Contract continues through FY 2017-2018– Maximum of $600,000

Redevelopment AgencyProject Area 87-10

• Boyer Orem Associates–$220,000–Fixed amount of $220,000 through

FY 2014-2015

Redevelopment Agency

• Sales Tax Bonds–$1,017,682 – Current year bond

payment after 2 refunding issues–$1,098,400 – Original bond payment

scheduled for this fiscal year – a savings of $82,718 (without extending the payment period of the bonds)