1

Town of Collierville

FY2016 Operating and Capital Proposed

Budget

June 8, 2015

2 2

Budgeted Funds

• General Fund (Town’s Primary Operating Fund)

• Health Insurance Fund

• Retirement Fund

• Post Employment Benefits Fund (OPEB)

• Historic Preservation Fund

• Capital Improvement Program

• Water and Sewer Fund

• State Street Aid Fund

• Sanitation Fund

• Drug Fund

• General Purpose School Fund

• School Nutrition Fund

• School Federal & Discretionary Grants Fund

3 3

Making Strides…

• Completed first full academic year for Collierville Municipal Schools

• Completion of first full academic year for U of M

• Opening of Hinton Park scheduled for September

• Completion of Highway 72 Jimmy Lott Parkway

• Opening of I-269 from Highway 72 to Highway 302 (Goodman Road in MS)

• Relocation of Parks Maintenance to former Craig Lumber warehouse

• Estimated 600 new Collierville residents

4 4

• Adding 20 parking spaces at Morton Museum

• Renovating College St. Rec Center to open Senior Center with expanded programming

• Investing $1.5 million to overlay streets

• Investing $2.6 million in storm water systems

• Expansion of the Animal Shelter

• Purchase of $1.3 million Aerial Ladder Fire Truck

• Purchase of 5 new Police Patrol Cars

• Begin construction of Historic High School

Making Strides…

5 5

• Area: 36.12 square miles

• Population: 48,517

• Budgeted positions:

– Town (full-time): 503

– Town (part-time): 57

– Schools (full-time): 787

– Schools (part-time): 17

• Financial:

– Town budget: $72,695,876

• General Fund Budget: $48,695,420

• Capital Budget: $ 10,953,500

• Other Funds Budget: $13,046,956

– Schools Budget: $71,263,240

– Combined Expenditures: $143,959,116

6

Town of Collierville

Budget Compliance

7 7

Budget Compliance Requirements

• Audit by independent auditors

• Review by State auditors

• Independent auditors subjected to peer review

• Budget must be approved by TN Comptroller of the Treasury

• Continuing disclosure requirement for all outstanding debt

• State of TN requires the Town to have a balanced budget

• CAFR audited in accordance with Government Auditing Standards and State “Yellow Book”

• Auditors issue report on Town’s internal controls

8

Town of Collierville

General Fund Overview

The Primary Operating Fund of the Town

9 9

General Fund Revenues

Budget Budget Change

REVENUE FY 15 FY 16 from FY 15

Taxes

Property Taxes 22,979,197 23,961,181 981,984

Local Option Sales Tax 13,882,729 14,884,034 1,001,305

Business Taxes 2,506,000 2,585,000 79,000

Licenses & Permits 2,167,990 2,058,934 (109,056)

Intergovernmental 5,473,800 5,693,375 219,575

Charges for Services 229,582 205,509 (24,073)

Recreation Charges 571,140 618,465 47,325

Fines and Forfeits 1,469,200 1,545,000 75,800

Other 812,985 1,305,450 492,465

Total Revenue 50,092,623$ 52,856,948$ 2,764,325$

“Other” revenue consists of: Interest

on investments; Stormwater fees;

Rent income; Donations; and,

Miscellaneous revenue

Licenses & Permits

3.9%

Intergovernmental10.8%

Recreation Charges

1.2%

Fines and Forfeits

2.9%Other2.9%

Property Taxes45.3%

Local Option Sales Tax

28.2%

Business Taxes4.9%

$24.0 mm

$14.9 mm

$1.3 mm

$2.6 mm

$2.0 mm

$5.7 mm

$0.6 mm

$1.5 mm

Proposed FY 2016

$52,856,948 $2.8 mm increase

over FY2015

10 10

General Fund Revenue

$52,856,948

Health Insurance

$ 3,798,042

Sales tax for Schools (1)

$ 4,738,187

Retirement Fund

$ 2,466,732

CIP

$ 1,675,000

OPEB

$ 471,707

$ 13,149,668 Transfers to

fund indicated

(1) “Maintenance of Effort” generated from half-cent sales tax

11 11

FY 2013 $3,238,782 (partial year)

• Legal Expenses - $509,475

• Consulting / Research Fees - $118,109

• Advertising and Legislative Expenses - $40,016

FY 2014 $4,423,252

• Research / Attorney Fees - $150,278

• Election Expense - $91,611

• School Resource Officers - $142,116

• Professional Services - $129,126

• FY14 School Funds Budget - $1,153,189

FY 2015 $4,600,182

(projected)

• Start-up Funds - $5,000,000

• FY15 Maintenance of Effort- $2,238,625

• High School Track Renovation- $259,800

FY 2016 $4,738,187

(budgeted)

• FY16 Maintenance of Effort- $2,266,809

• Education Foundation Grant - $30,000

½ Cent Local Option Sales Tax for Schools

Bal: $2,571,182 Bal: $5,328,114 Bal: $2,429,871 Bal: $4,871,249

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Increased Stormwater Fee

• From $2.25 to $2.65 per month Residential

• From $4.25 to $25.00 per month Commercial

Estimated revenue = $800,000

Planned Stormwater Projects Cost

Powell @ Peterson Lake Drainage Improvements $ 30,000

Cooper Road Drainage 90,000

Royal Pecan Drainage 125,000

Terry Dan Lake Bank Stabilization 462,500

TOTAL $ 707,500

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General Fund Expenditures

$4.3 mm

$3.1 mm

$5.2 mm

$21.8 mm

$8.4 mm

$5.8 mm

Proposed FY 2016

$48,695,420 $3.6 mm increase over

FY2015 includes:

- $1.1mm library operations

moved to general government

- $2.3mm special appropriation

to schools

Budget Budget Change

EXPENDITURES FY 15 FY 16 from FY 15

Legislative & General Government* 6,833,742 8,382,296 1,548,554

Public Safety 21,899,069 21,849,247 (49,822)

Roads and Public Works 6,501,717 5,845,540 (656,177)

Culture and Recreation 5,292,364 5,245,823 (46,541)

Debt Service 3,796,621 4,281,210 484,589

Special Appropriations 783,871 3,091,304 2,307,433

Total Expenditures 45,107,383 48,695,420 3,588,037$

Legislative and General Government

departments are those which provide services

to the other operating departments. These are:

Mayor and Board, Administration, Human

Resources, Finance, Information Technology,

General Services, Development Administration,

Planning and Library.

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General Fund Expenditures by Type

Budget Budget Change

EXPENDITURES FY 15 FY 16 from FY 15

Personnel 30,165,896 30,591,214 425,318

Operating Expense 8,976,259 9,301,617 325,358

Capital Outlay 801,780 857,388 55,608

Debt Service 3,796,621 4,281,210 484,589

Insurance 582,957 572,688 (10,269)

Special Appropriations 783,871 3,091,304 2,307,433

Total Expenditures 45,107,383$ 48,695,420$ 3,588,037$

Personnel64.3%

Operating Expense

18.9%

Equipment0.7%

Vehicles0.6%

Debt Service7.9%

Insurance1.2%

Special Appropriations

6.4%

15 15

GF Expenditures Reductions

Original FY 2016 Adjusted FY 2016

$48,695,420 $48,401,394

$294,027 in proposed operational reductions to operations

EXPENDITURES

Original FY16

Budget

Revised FY16

Budget

Budget

Adjustment

Legislative & General Government 8,382,296 8,286,015 (96,282)

Public Safety 21,849,247 21,828,989 (20,258)

Roads and Public Works 5,845,540 5,753,990 (91,550)

Culture and Recreation 5,245,823 5,149,887 (95,936)

Debt Service 4,281,210 4,281,210 -

Special Appropriations 3,091,304 3,101,304 10,000

Total Expenditure 48,695,420 48,401,394 (294,027)

Available General Fund Fund Balance $508,541

16

Town of Collierville

Debt and Capital Improvements

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Debt Management Compliant with Debt Policy

• General Fund Debt-

• Total Outstanding $30,875,000

• FY 16 debt service payment - $4,152,257

o Principal = $3,167,215; Interest = $985,042

• Debt service to expenditures - 8.5%

• Debt service to revenue – 7.9%

• Utility Fund Debt-

• Total Outstanding $23,430,000

• FY 16 principal payment - $2,147,785 o Principal = $2,147,785; Interest = $821,490

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TOWN CIP

Project Cost

General Government CIP

Facilities Maintenance Shop Renovation $ 35,000

Morton Museum Parking Lot 150,000

Animal Shelter Improvement 433,000

Accounting Software System 1,000,000

Total $1,618,000

Development CIP

Drainage Improvements (Powell, Cooper & Royal Pecan) $ 245,000

Collierville Center Connect 365,000

Terry Dan Lake Bank Stabilization 462,500

Total $ 1,072,500

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Project Cost

Public Safety CIP

Police Firing Range $ 250,000

Replacement Ladder Truck (1) 1,375,000

Total $ 1,625,000

Parks & Recreation CIP

Town Square Restrooms $ 18,000

Playground Surfaces Renovations 50,000

Shelby Dr. Property - Parking Area 125,000

Park Improvements (Suggs & Tom Brooks) 220,000

College Street Recreation Center 380,000

Parks Maintenance Complex & Equipment 415,000

Total $ 1,208,000

TOWN CIP (Continued)

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Project Cost

Public Services CIP

Equipment - Mini Excavator $ 50,000

Sanitation CIP

Equipment - Road Tractor $ 140,000

GF CIP TOTAL $ 5,713,500

TOWN CIP (Continued)

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TOWN CIP (Continued)

Project Cost

Public Utilities CIP

Equipment - One Ton Dump Truck $ 60,000

Screw Pump Rehab @ NWWWTP 180,000

Sewer Outfalls Stabilization 450,000

Water Treatment Plant 5 Upgrade 500,000

Sewer System Improvements 750,000

SW Trunk Sewer Extension 1,300,000

Water Distribution System Improvements 2,000,000

NON-GF CIP TOTAL 5,240,000

-

TOTAL TOWN CIP $ 10,953,500

22

Town of Collierville

Other Funds Overview Also Budgeted by the Town

o Water and Sewer Fund (Public Utilities)

o Historic Preservation Fund

o Sanitation Fund

o Health Insurance Fund

o State Street Aid Fund

o Post Employment Benefits Fund (OPEB)

o Retirement Fund

o Drug Fund

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Public Utilities

Personnel $ 2,396,522

Operating Expenses 4,675,281

Debt Service & Depreciation 4,122,990

Operating Budget $ 11,194,793

TOTAL REVENUES $ 12,418,584

Equipment $ 60,000

Total Capital Improvements 5,180,000

Sewer 2,680,000

Water System 2,500,000

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Historic Preservation Fund (Improvements to Historic Square)

Beginning Fund Balance $ 0

Revenue from New Const. 10,000

EXPENDITURES -0-

General Fund Contribution -0-

Ending Fund Balance $ 10,000

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Sanitation Fund

Beginning Fund Balance $ 1,114,341

Waste Collection Fee 4,015,313

Cart Sales 60,000

Recycling Revenue 40,000

TOTAL REVENUES $4,120,013

EXPENDITURES

Personnel $1,727,163

Vehicle Maintenance 241,000

Fuel 309,000

Landfill Contract 543,100

Transportation Equipment 140,000

TOTAL EXPENDITURES $3,325,058

ENDING FUND BALANCE $ 1,789,296

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Health Insurance Fund

Retained Earnings $ 55,593

REVENUES

Town Payment for Services $4,666,973

Employee Pmt for Services 770,952

TOTAL REVENUES $5,437,925

EXPENSES (Reinsurance, Claims, Administration Fee)

$5,436,053

Ending Balance $ $57,465

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State Street Aid Fund

Beginning Fund Balance $ 479,104

State Revenue 1,200,000

TOTAL REVENUE $1,200,500

EXPENDITURES

Street Overlay Program $1,000,000

Patching 120,000

Traffic Signal Maintenance 46,000

Road Striping 55,000

Gravel, cement, concrete 76,000

TOTAL EXPENSES $1,297,430

ENDING FUND BALANCE $ 382,174

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Other Post Employment Benefits Fund (OPEB)

Beginning Balance $ $10,620,332

REVENUES

FY16 Town Contribution $ 558,454

Retiree Contribution 112,765

Investment Gain 150,000

Interest Revenue 130,000

TOTAL REVENUE $ 951,219

TOTAL EXPENSES (Claims, fees etc) $ 427,846

Revenue Over Expenses $ 523,373

Ending Fund Balance $11,143,705

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Retirement Fund

Retained Earnings $ 54,369,023

REVENUES

Town Contribution $ 2,798,177

Employee Contribution 470,092

Non-vested Reimbursement (25,000)

Gain/Loss 500,000

Interest Revenue 750,000

TOTAL REVENUE $ 4,493,269

EXPENSES

Distributions to Retirees $ 900,000

Admin/Attorney Fees 221,000

TOTAL EXPENSES $ 1,121,000

Revenue Over Expenses $ 3,372,269

Ending Fund Balance $ 57,741,292

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Drug Fund

Beginning Fund Balance $423,245

REVENUE

Revenue from Seizures 82,500

Fines 5,500

TOTAL REVENUE $ 88,000

EXPENDITURES

Operating Expenses $ 65,740

Equipment 2,850

TOTAL EXPENDITURES $68,590

Ending Fund Balance $ 448,155

31

Town of Collierville

General Fund Conclusions

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General Fund Summary

EXPENDITURES

Mayor and Board of Aldermen 189,882 279,091 175,607 185,126

Town Administrator's Office 576,448 617,478 779,229 799,889

Morton Museum 155,534 209,803 212,443 202,890

Library 0 0 0 1,166,453

Human Resources 312,443 370,087 506,256 509,561

Financial Administration 988,292 1,017,295 1,254,137 1,234,898

Information Technology 543,689 561,065 767,159 803,085

General Services 1,331,161 1,454,722 1,713,577 1,939,119

Development

Administration 279,153 302,338 318,929 316,342

Office of Planning 625,268 675,244 735,890 758,854

Office of Engineer 683,577 759,241 850,773 938,358

Code Enforcement 779,552 924,337 1,171,793 1,044,999

Public Safety

Animal Services 489,187 996,440 587,207 621,251

Municipal Court 679,778 707,963 888,944 917,441

Police Department 10,889,420 11,226,650 11,819,956 11,734,381

Fire Department 6,969,012 7,074,649 7,431,168 7,510,917

Public Services

Administration 323,793 351,359 364,444 364,804

Fleet Maintenance 529,619 592,723 662,703 730,426

Streets and Drainage 3,661,778 3,236,401 4,623,797 3,720,401Parks and Recreation 4,045,119 4,341,070 5,079,921 4,946,997

Non-Departmental Accounts

Special Appropriations 1,254,947 995,432 783,871 3,101,304

Debt Service 3,686,827 4,048,635 3,796,621 4,281,210

Insurance 513,927 520,176 582,957 572,688

Total Expenditure 39,508,405 41,262,199 45,107,383 48,401,394

ACTUAL ACTUAL BUDGET PROPOSED

FY 13 FY 14 FY 15 FY 16

Available General Fund Fund Balance $508,541

33 33

General Fund Revenue

$52,856,948

Health Insurance

$ 3,798,042

Sales tax for Schools (1)

$ 4,738,187

Retirement Fund

$ 2,466,732

CIP

$ 1,675,000

OPEB

$ 471,707

Proposed Property Tax Increase

$ 13,149,668 Transfers to

fund indicated

(1) “Maintenance of Effort” generated from half-cent sales tax

Transfer to

Schools CIP

ONLY

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Debt Service Scenarios(1)

(1) All calculations are based on preliminary assumptions and will be affected by

actual market conditions at the time of debt issuance.

(2) Based on architect’s recommended best scenario.

(3) Includes Underwriter’s discount and other costs at $9.00 per bond.

Project Fund (2) 99,044,255$

Cost of Issuance (3) 899,460

Par Amount 99,945,000$

Interest 3.000% 3.500% 4.000% 4.500%

Amortization 30 30 30 30

Annual DS Payment 5,099,120$ 5,434,143$ 5,779,829$ 6,135,778$

335,023$ 680,709$ 1,036,658$

For each 1% increase in interest, debt service will increase approximately $680k

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Cost for Taxpayers

Average home value is $300,000 = $75 tax

increase

Each $0.10

increase

$100,000 home value

$25 property

tax increase

36 36

Byhalia Road

37 37

Hinton Park

38 38

Highway 72

39 39

Interstate 269