2016 May Financial Report 1
Table of Contents Monthly Financial Summary…………………………………………………………..…………...…3 General Fund………………………………………………………………………………………….……...5 Revenues………………………………………………….………………..………………………….….6 Expenditures………………………………………………………...………………………………….6 Revenue Sources……………………………………………………………………....…………..….…..7 Sales Tax…………………………………………………………………………...……………………...7 Property Tax………………………………………………………………………..………………......9 Franchise Fees…………………………………………………………………..…….………………10 Use Taxes…………………………………………………………………….………………….………11 Building & Planning Permit Fees………………………………..…………………………...12 Food Tax Fund……………………………………………………………………..…………………...….13 Quality of Life Fund………………………………………………………………..………………...….14 “Keep Greely Moving” Fund…..…………………………………………..…………………...….15 Public Art Fund ………………………………………………………………………………………….. 16 Water Funds………………………………………………………………………..…………………...….17 Sewer Funds……………………………………………………………………………………...………...18 Stormwater Funds…………………………………………………………………….………………….19 Lodging Tax.…………………………………………………………………………………...…….…....20
Front Cover: Homestead Park, 3699 29th Street, Greeley Colorado 2
May Financial Summary Governmental accounting can be somewhat difficult to interpret. Some of our largest general revenues; sales and general use “lag� by one month; meaning that we receive these revenues one month after they’ve been generated. Other revenues, including building use, fees and charges for services are recognized in the month they are received. Expenditures however, are recognized in the month in which they occur. The following report provides information on most of our major funds.
General Fund The General Fund is funded from a variety of sources for a total revenue budget of $90,573,813. Expenditures for 2016 are currently budgeted at $100,601,112 with the planned difference of $10,407,116 coming from existing fund balance. The monthly financial report focuses on the major revenue sources, expenditures, and trends we are seeing as they relate to historic, current, and future revenues and expenditures. Below are select summaries of financial information. Additional detailed information is contained in each section.
Sales Tax Sales Tax revenue is budgeted at 48% of General Fund revenues for 2016. In four months of collections of the General Fund share of sales tax, we have receipted 29.4% of the 2016 budget estimate of $43,582,484 or a total of $12,813,869. Based upon current trends, sales tax revenues are projected to be $2 million below the 2016 budget.
Use Taxes The three Use Taxes listed below are budgeted to be 6% of the General Fund revenue. In the four months of collections, General Use Tax shows an increase of 15.4% over 2015 year to date comparisons. To date, total collections in general use tax are at $484,584, 34.9% of our estimate of $1,387,283. If General Use Tax continues on this trend it is expected to meet budget expectations. Building use tax is collected at the time of the building permit, thus the reported receipts represent five months of collections. We have collected $1,018,752 which is 3.8% above our 2015 year to date collections. Year to date collections for 2016 are 64.3% of the 2016 budget of $1,584,915 or $1,018,752. Current trends indicate building use taxes will be above budget by as much as $1 million at the end of the year. In the four months of collections for 2016 Auto Use Tax is currently at 38.8% or $896,350 of the $2,353,630 in budgeted revenue. At current revenue trends, auto use tax revenues are expected to be above budget by $150,000.
Building Permits New construction permits are tracked as an indicator of growth. Building Permit revenues are down by 0.6% in the first five months of the year due to declines in single family permits. Year to date growth continues to come primarily from new multifamily unit and commercial permits, where the valuations continue to come in much higher against 2015. Year to date valuations of new commercial projects and remodels in 2016 are at $16.6 million from 168 permits as compared to $12.9 million from 194 permits in 2015; showing a 28.5% gain against last year. Permits for single family dwellings are at 138 with a value of $23.7 million as compared to 174 permits with a value of $29 million in 2015, a 20.5% decline against 2015. New multi-family units continue to see growth in their valuation with 195 units as compared to 232 in 2015 with the valuation increasing from $19.1 million to $28 million respectively; showing a 46.5% year to date increase. Given the current trends, we expect to exceed the 2016 budget of $1,258,055 for building permits.
3
Other General Fund Revenue Sources Year to date franchise fees are at $1.5 million, or 27.8% of the 2016 budget of $5,550,000, which accounts for 6% of the 2016 General Fund. Currently $6.2 million in property taxes have been collected, or 64.8% of the 2016 budget of $9,550,000 and accounts for 11% of the 2016 General Fund. Fines and Forfeits collected year to date are $761,000, or 29.9% of the budgeted $2,544,100 or 3% of the 2016 General Fund. The remaining 2016 budget revenues include; $5,369,471 or 6% of funding comes from other funds, $7.3 million or 8% is intergovernmental revenue, and $2.6 million or 3% in other revenues.
Special Fund Revenues & Economic Indicators Lodging Tax The Convention and Visitors Fund is funded by the city’s three percent lodging tax to support convention and visitors activities. For rooms rented in April, revenues decreased by 20.2% from 2015. Total collections for 2016 are $133,053. This is 29% of the budget estimate for 2016. Current revenues are in line with the budget for 2016. According to the April Rocky Mountain Lodging Report, Greeley year to date occupancy rates averaged 59.4% as compared to 73% in 2015. Greeley occupancy rates are continuing to trend downward against rates for all of Colorado which are currently at 63.8% occupancy. These figures continue to align with the slowdown of oil and gas production in Weld County. According to an article written by Bridgett Weaver in the June 11th edition of the Greeley Tribune; for one business oil and gas related occupancies accounted for up to 30% of their business, they currently have not seen that same rate of decline. It is anticipated that local core businesses as well as tourism will help prop up this industry. Local business owners are anticipating to see a rebound soon due to these influences.
Food Tax Food Tax is sales tax collected on the purchase of food for home consumption and is used to fund a capital maintenance program for the repair of streets, buildings, parks, and other capital assets. In four months of collections of Food Tax, we have receipted 36.3% of the 2016 budget estimate of $6,357,052 or a total of $2,308,233.
Economic Indicators Oil prices rebounded in May showing a 6.6% increase in price per barrel against 2015. The price of Colorado/Nebraska DJ Basin Oil was averaging $40.25 per barrel in May as compared to $37.75 a year ago. We are closely monitoring the impact of the oil and gas industry on the revenue streams for the City of Greeley. Sales and Use Taxes collected from oil and gas industries continue to be lower than last year. For the first four months of 2016, oil and gas related industries Sales Tax declined by 28% ($29,240) from 2015. In addition to the slowdown in oil and gas production; we are also closely monitoring the impact of a Colorado Supreme Court ruling in favor of oil and gas company severance tax deductions. This ruling entitled oil and gas companies to deduct the cost of capital regarding their transportation and processing facilities, which the state had previously denied. This ruling paved the way for oil and gas companies operating in Colorado to file refunds dating back up to 3 years. This may have a significant impact on Greeley’s receipt of severance taxes.
Summary The remaining report will go into more detail on the major funds at the City of Greeley. We continue to see positive trends in the economy and at the same time are feeling the impact of oil and gas related industries. We are closely watching the changes in Sales Tax Revenues as they make up 48% of the General Fund Revenue. At this point in time we anticipate the revenues that increase will offset the revenues that decline for 2016, which will allow for us to continue to provide the same levels of service as budgeted. 4
General Fund Revenues: Major sources of revenue in the General Fund include: Sales Tax, Use Taxes, Property Taxes, county, state, and federal intergovernmental funds, Franchise Fees, charges for services, transfers from other funds, fines and forfeits, licenses and permits, and miscellaneous sources. The following graph Illustrates our 2015 expenditures and revenues as compared to the same data in 2016.
$16 $14
Millions
$12 $10 $8 $6 $4
$2 $-
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2015 Expense
$5.66
$5.42
$7.98
$15.53
$7.00
$5.78
$6.05
$5.76
$6.07
$8.88
$6.08
$5.55
2016 Expense
$6.81
$6.04
$6.23
$16.40
$6.56
2015 Revenue
$1.14
$5.05
$8.93
$6.72
$8.98
$7.50
$9.49
$5.24
$10.25
$6.76
$5.38
$5.68
2016 Revenue
$1.09
$5.48
$8.58
$7.91
$8.99
The table below provides data for the 2016 revised budget as of May 31, 2016.
2016 General Fund Overview 2016 Budget Use of Fund Balance Revenue Expenditures
2016 Actual
$10,027,299 $90,573,813 $100,601,112
$9,979,071 $32,055,817 $42,034,888
5
% of Budget $48,228 99.5% $58,517,996 35.4% $58,566,224 41.8% Variance
Revenues have been collected for four months of Sales Tax, General Use Tax, Lodging Tax, Franchise Fees, and Property Tax. Revenues have been collected for five months for Building & Planning Permit Fees, Building Use Tax, and Utility Charges. Year to date revenues are 35.4% of the current 2016 budget. The increase of 2016 revenues by $1.2 million is mainly due to a one time transfer to the General Fund for downtown projects.
General Fund Revenue Comparisons
1st Quarter $15,115,115 $15,156,139
% 2016 Change Actual Variance 2016 Budget 2015 to 2016 2016 Budget $41,024 0.3% -
April
$6,721,151
$7,909,315
$1,188,163
17.7%
-
-
May
$8,978,654
$8,990,363
$11,710
0.1%
-
-
$30,814,920 $32,055,817
$1,240,897
4.0% $90,573,813
35.4%
2015
YTD Total
2016
Expenditures: The General Fund is used to pay for the City’s basic municipal services such as police, fire, parks, culture, recreation, public works, community development, and general administration. Expenditures from the General Fund are consistent with expectations and the approved budget for 2016. Below is a summary of expenditures for January through May of 2016. The majority of the increases and decreases by month are tied to the timing difference of one time budgeted transfers between funds and is caused by the appropriation of the end of year fund balance.
General Fund Expenditure Comparisons
2015
2016
Variance
1st Quarter $19,061,783 $19,068,159 April May YTD Total
% Change 2015 2016
2016 Actual to 2016 Budget
2016 Budget
$6,376
0.0%
-
-
$877,975
5.7%
-
-
$6,562,320
($441,785)
-6.3%
-
-
$41,592,323 $42,034,888
$442,565
1.1% $100,601,112
41.8%
$15,526,435 $16,404,410 $7,004,105
6
Revenue Sources The City collects Sales Tax on the retail sale of various goods and commodities. The state's tax rate is 2.9% and the City’s is 4.11%. Sales Tax is distributed to the Public Safety Fund (0.16%), Quality of Life Fund (0.30%), General Fund (3.00%) and “Keep Greeley Moving” (0.65%). The City of Greeley also imposes a rate of 3.46% on food for home consumption – the “Food Tax” Fund. We review Sales Tax revenue in four areas as shown below. The first way is how the Sales Tax revenues are distributed to the five different funds, Public Safety, Quality of Life, Food, “Keep Greeley Moving”, and General. $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000
$30,000,000 $20,000,000 $10,000,000
$0 2015 YTD
2016 YTD
2015 Actual
2016 Budget
$806,754
$806,512
$2,527,279
$2,663,442
Quality of Life
$1,512,664
$1,512,210
$4,738,649
$4,993,954
Food
$2,009,380
$2,308,233
$6,474,734
$6,357,052
$0
$5,441,180
$0
$13,900,917
$13,117,264
$12,813,869
$40,911,753
$43,582,484
Public Safety Bonds
Keep Greeley Moving
General Fund
Sales Tax revenues have been collected for the first four months of 2016. 2016 General Sales Tax revenue is budgeted at 6.5% above 2015 revenue. General Sales Tax revenue decreased by 2.3% in the first four months of 2016 as compared to 2015. The 2.3% decline in the growth rate is primarily due to continued lower natural gas, a continued decline in motor vehicle sales and parts dealers, gas stations sales, clothing and accessories sales, as well as home furnishing sales. If current trends continue the Quality of Life Fund and Public Safety Bond Fund will be short of budget by 9.2 %, the Food Tax Fund will be above budget by 8.9% and the Keep Greeley Moving Fund will exceed budget expectations by 17.4%. We anticipate General Fund sales tax revenues being lower than the 2016 budget based on current trends and economic information. Below is a summary of the General Fund share of sales tax by month with four months of 2016 actuals and an eight month forecast for 2016.
7
Thirdly, retail sales are reviewed using the North American Industry Classification System (NAICS) codes. The codes are then simplified into major categories as shown below in the graph. Not all categories are included below and adjustments have been made to account for late payments and adjustments, but they give a good representation of how 2016 revenues compare to 2015. Electronics and appliance stores continue to see the largest increase over 2015 at $168,869 or 49.2% due to a large one time payment of $75,000 in April. Motor Vehicle and Parts Dealers have seen the largest decline year to date of $189,846 or 9.9%.
$2,500,000 $2,000,000 $1,500,000 $1,000,000
$500,000 2015
$0
2016
Lastly, retail sales are tracked by geographic locations, omitting businesses selling groceries and auto dealers. Below is a summary of the Sales Tax revenue collected by identified retail locations. Currently each location is at or below last year’s revenues, with the exception of St. Michaels, which is showing at 4.2% increase in sales over 2015. The graph has been modified to adjust for late payments and adjustments to prior periods.
Retail Sales Tax by Location $2,800,000 $2,600,000 $2,400,000 $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 St. Michaels
Downtown Development
University District
Greeley Mall Area
10th Street/23rd-47th Av
Centerplace Area
2015
$73,343
$597,733
$660,546
$1,001,191
$1,036,022
$2,574,014
2016
$76,386
$553,677
$623,409
$967,164
$993,621
$2,554,318
8
Property Tax Property Tax is levied upon the assessed value of land, buildings, and business personal property. Assessments are determined by Weld County every two years using market values of recent sales of similar property in the area. The mill levy is currently set at 11.274 mils. 2016 Property Tax revenues are expected to increase over 10% from 2015 actuals. Property Taxes have been received for four months in 2016. 2016 property tax revenues are currently at 64.8% of the 2016 Budget and are showing an 4.5% increase over 2015 actuals. Due to concerns with other General Fund revenues, $500,000 of the anticipated revenues from property tax were set aside and not spent in 2016.
Given that property tax is a function of the assessed value of land, it is important to note the drastic increase in property values in the Colorado region. The graph below illustrates the upward trend of housing values from the S&P Case-Schiller Home Price Index for Denver from 1987 to March of 2016. We should expect to see the same trend in property taxes as assessed values increase as a result of market forces in the region.
Greeley House Price Index 250.00 200.00 150.00 100.00
Housing Price (thousands)
50.00
5/1/1984 5/1/1986 5/1/1988 5/1/1990 5/1/1992 5/1/1994 5/1/1996 5/1/1998 5/1/2000 5/1/2002 5/1/2004 5/1/2006 5/1/2008 5/1/2010 5/1/2012 5/1/2014 5/1/2016
0.00
https://fred.stlouisfed.org/series/ATNHPIUS24540Q
9
Franchise Fees Franchise Fees are fees levied on companies in exchange for the right to use public right of way and otherwise operate as a franchise. Franchise Fees are collected for electric, natural gas and cable TV. We have been discussing the franchise fee revenue from natural gas for quite a few months. The following chart illustrates that the price of a 1,000 Cubic Feet of Natural Gas as of March 2016 was $4.02. In March 2006 the cost was $5.69. The price is 29% lower than it was a decade ago.
Given that franchise fees are a function of use and price, a significantly lower price will impact our revenue. Our revenue in both franchise fees and sales taxes due to the price of natural gas is lower than last year. As the table below illustrates, our revenue is lower by 30.3%. We have collected only 36.2% of our budget. If the cost continues to be between $2 and $5 a 1000 CF, we will not hit budget. At this time, we believe it will be down over $525,000 from the original estimate. Electric franchise fees will also be considerably lower than budget by $450,000, as natural gas is used to generate electricity. We expect total franchise fees to be below our original budget estimates by, at least $950,000. The reductions in franchise fee revenue have been offset by expenditure savings in the purchase of fuel, electric, and natural gas for the City.
Franchise Fees & Telephone Tax 2015 YTD
2016 YTD
Variance
% Change % Of 2016 2015 - 2016 Budget Budget 2016
Cable
$210,961
$230,637
$19,677
9.3%
$875,000
26.4%
Electric
$588,384
$627,913
$39,529
6.7%
$2,800,000
22.4%
Natural Gas
$910,074
$634,043
($276,031)
-30.3%
$1,750,000
36.2%
Telephone
$52,046
$49,293
($2,753)
-5.3%
$125,000
39.4%
$1,761,465 $1,541,886
-$219,579
-12.5%
$5,550,000
27.8%
YTD Total
10
Use Tax Use Taxes are taxes levied upon individuals using, storing, or consuming tangible personal property within the city limits. Three types of Use Taxes are collected: automobile, building, and general. All three Use Taxes are distributed to the Public Safety Fund, Quality of Life Fund, General Fund, and Keep Greeley Moving Fund.
Year to date General Use Tax revenues are up 15.4% over 2015. The General Fund share of use taxes are anticipated to remain at the same levels as 2015 and meet budget projections.
$2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0
2015 YTD
2016 YTD
2015 Actual
2016 Budget
Public Safety Bonds
$22,400
$25,844
$75,374
$73,988
Quality of Life
$42,000
$48,458
$141,327
$138,728
$0
$99,956
$0
$269,230
$419,996
$484,584
$1,413,267
$1,387,283
Keep Greeley Moving General Fund
Auto Use Tax The year to date General Fund share of Auto Use Tax revenues are down 16.8% as compared to 2015 revenues. 2016 Auto Use revenues, excluding “Keep Greeley Moving,� are 38.1% of the $2,353,630 budget or $896,350. It is anticipated that Auto Use Tax revenues will meet and exceed budget projections by about $150,000.
$4,000,000 $3,500,000
$3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
2015 YTD
2016 YTD
2015 Actual
2016 Budget
Public Safety Bonds
$57,440
$47,805
$161,177
$125,527
Quality of Life
$107,700
$89,635
$302,208
$235,363
$0
$194,209
$0
$456,769
$1,077,004
$896,350
$3,022,077
$2,353,630
Keep Greeley Moving General Fund
11
Building Use Tax
$3,500,000 $3,000,000
We did not estimate that building activity could sustain at 2015 levels. We decreased the total revenue from building use tax to $2.14 million. We have collected a total of $1.39 million or 65% of our estimate through May, 2016. We expect to exceed the budget estimate by more than $1 million.
$2,500,000 $2,000,000 $1,500,000
$1,000,000 $500,000 $0
2015 YTD
2016 YTD
2015 Actual
2016 Budget
Public Safety Bonds
$52,356
$54,333
$141,408
$84,529
Quality of Life
$98,168
$101,875
$265,140
$158,491
$0
$217,368
$0
$307,584
$981,681
$1,018,752
$2,651,397
$1,584,915
Keep Greeley Moving General Fund
Building & Planning Permit Fees Building & Planning Permit Fees are collected on commercial, industrial and residential construction and improvements. Plan Filing and Check Fees increased by 38% or $51,704 while Building Permit Fees decreased by 0.6% or $3,406 from 2015 year to date actuals. The 2016 budget planned for a decline of 33.2% in Plan Filing and Check Fees and a 15.2% decrease in Building Permit revenue from 2015 revenues; currently they are at 71.6% and 43.4% of their 2016 budget estimates respectively. In both areas we are exceeding the budget expectations for 2016 and may end the year up by $300,000 above budget.
Building Permits
Plan & Filing Fees $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0
$1,800,000 $1,600,000 $1,400,000
$1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000
2011
2012
2013
2014
2015
$0
2016*
Actuals / Budget*
$161,696
$196,181
$293,106
$352,916
$392,625
$262,242
Actuals / Budget*
YTD Actuals
$39,487
$96,238
$111,224
$174,012
$136,034
$187,737
YTD Actuals
12
2011
2012
2013
2014
2015
2016*
$565,157
$669,195
$1,444,774
$1,595,310
$1,483,715
$1,258,055
$146,259
$181,179
$238,057
$529,759
$426,410
$545,678
Food Tax Fund Food Tax is a sales tax collected on the purchase of food for home consumption and is used to fund capital maintenance for our streets, city owned buildings, parks, and other capital assets. The revenue cannot be used for other governmental purposes. While the City rate is currently at 3.46%, only 3% of the tax is applied to capital maintenance. The balance is distributed to the Quality of Life and Public Safety purposes, 0.30% and 0.16%, as voters approved in 2002 and 2004, respectively. Food Tax collections in the first four months of 2016 accounted for a total of $2,308,449 of 36.3% of the 2016 budget of $6,357,052. This source of revenue is growing faster than regular sales tax due to better reporting. In the second half of 2015, we began to work with businesses that were not separately reporting their food tax from other sales tax. Thus, the first six months of 2016, we are receiving higher food tax revenue, and lower regular sales tax revenue, from this better reporting. By September, the two reporting years should be better aligned than they currently are, and we should be able to draw conclusions about the real rate of growth in food taxes. The correct reporting from businesses will reallocate at least $350,000 from general sales to food tax sales receipts by the end of 2016. We will be able to do a more thorough analysis of the reallocation by the fall.
Sales Tax on Food Transfer from Designated Revenue Other Total Revenue Captial Projects Total Expenditures
YTD 2015 YTD 2016 % 2016 % of 2016 Actual Actual Change Budget Budget $2,012,080 $2,308,449 14.7% $6,357,052 36.3% $33,741
$0 -100.0%
$2,033,094 $34,282 $4,078,915 $2,342,731 $2,625,017 $3,087,480 $2,625,017 $3,087,480
13
$120,000
0.0%
-98.3% $12,900 -42.6% $6,489,952 17.6% $6,498,578 17.6% $6,498,578
265.8% 36.1% 47.5% 47.5%
Quality of Life Fund After debt service payments, the 0.30% sales and use tax along with grant funds and park development impact fees will be used to fund various city wide projects. Some of the 2016 projects include: continued 8th Avenue improvements for entryway and boulevard treatments on the 1000, 1100, and 1200 blocks with $1.6 million allocated this year, construction of 3,450 feet of the Sheepdraw trail including a pedestrian bridge with $370 thousand budgeted, and $3 million for the Youth Sports Complex where the fourplex practice fields will be updated with parking improvements, softball field enhancements and other identified needs.
Quality of Life Overview
Sales and Use Tax Park Development Impact Fees Other Revenues Total Revenue Projects Maintenance Total Expenditures Difference (R-E)
YTD 2015 Actual
YTD 2016 Actual
$952,664 $838,846 $871,183 $2,662,693 $1,791,270 $198,422 $1,989,692 $673,001
$937,081 $689,994 $28,105 $1,655,180 $984,098 $203,652 $1,187,750 $467,430
Monfort Park Soccer Fields, 4800 24th Street, Greeley CO 80634 14
% Change -1.6% -17.7% -96.8% -37.8% -45.1% 2.6% -40.3% -30.5%
2016 Budget $3,410,775 $2,222,136 $1,000,763 $6,633,674 $6,121,769 $488,764 $6,610,533 $23,141
% of 2016 Budget 27.5% 31.1% 2.8% 25.0% 16.1% 41.7% 18.0%
Streets and Infrastructure Fund “Keep Greeley Moving” A new sales tax of 0.65% or $0.65 for each $100 for a term of 7 years was approved by voters in the last quarter of 2015. This initiative will help fund street maintenance and improvements. Over the first seven years this initiative will fund repaving of 10 arterial and collector roads, the repaving of 8 neighborhoods, three capacity projects, and the City of Greeley taking over all public concrete sidewalks and gutter repairs. Projects that have started in 2016 include:
$7.1 million to fund pavement overlay, seal coat, patching, and striping program that will provide new pavement surfaces on existing streets.
$5.8 million to fund 20th Street Phase II: 71st to 86th Avenue.
$1.0 million to fund the construction of up to 70 handicap ramps and sidewalk access points at various locations throughout the city.
Year to date revenues are currently at 39.2% of budget and are expected to meet budget expectations. Year to date expenditures on capital projects are currently at 23.5% of the 2016 budget .
15
Public Art Fund The Public Art Fund is part of the City of Greeley’s capital improvement plan. Existing Public Art Fund balance is being used to fund 2016 projects, resulting in expenditures being higher than revenues. Ongoing 2016 projects include:
$56.1 thousand to fund public art acquisitions, one to three sculptures will be purchased and are to be installed in outdoor sites.
$21 thousand to fund “Paint the Town Murals” where up to five murals will be commissioned to adorn highly visible walls within the City selected by the Arts Commission.
$26 thousand to fund the Art on Loan Program
Revenues Total Revenue Public Art Expenditures Total Expenditures
Public Art Fund YTD 2016 % of 2016 2016 Budget Actual Budget $170,330 $181,346 93.9% $170,330 $181,346 93.9% $97,142 $551,773 17.6% $97,142 $551,773 17.6% Project Updates
Uptown Trees: The three remaining 2015 Uptown Tree Sculptures were installed on April 14th including “Eternal Leaves” by Ken McCall and Lezlie Dixon at 1310 8th Ave, “Flying Animals” by Mary Ann Baker at 1320 8th Ave, and “Moire’ Tree” by David Farquharson at 1330 8th Ave. Eight new sculptures will be selected in the fall of this year for Spring 2017 installations. Models of the 2016 sculptures to be installed are pictured to the left. Whitaker Kinetics: The arts commission is gathering information for the purchase of two 25 foot tall Lyman Whitaker Kinetic works of art to be placed in two separate high visibility locations in the north and south entrances of Promontory Park. The project is scheduled to start in the fall of this year. Lyman Whitaker Twister Star
Island Grove Entryway Art: The Art Commission has selected a larger than life playful puppy sculpture titled “Play Bow” by artist Don Kennell. The sculpture will be installed at the 14th Avenue entrance of Island Grove in August of this year. The work in progress is pictured to the left.
16
Water Funds The Water Department provides water to the citizens and industries of Greeley. This is water of a quality and quantity that meets all health and aesthetic criteria. The department is responsible for 467 miles of distribution lines and 69 million gallons of treated water storage reservoirs. Several projects are expected to be completed in 2016. Expenditures are expected to exceed revenues as fund balance is used to fund capital projects. Listed below is a summary of the budgeted capital expenditures for 2016: $20.8 million for over 38 Water capital replacement & construction projects. $13.1 million for Water Rights Acquisition. $27.9 million to construct the Northern segment of the Bellvue Transmission 60� Transmission Line. $5.4 million to construct the 5 million gallon treated water reservoir at Gold Hill. Update: Design activities were completed during 2015 and the project was awarded to Garney Construction Inc. with construction anticipated to be completed by December 2016. Construction is on schedule and as of June 1, 2016 the concrete floor has been poured and several wall sections and columns have been poured.
$4 million to complete the Boyd Water Treatment Plant Winterization. Update: This project is part of the second phase of water treatment plant improvements. Design will commence during 2016 and be completed during 2017 utilizing a CMAR process.
$829 thousand for the Distribution Line Extension and Oversizing Project, providing improved flow pressure, and system reliability for future and existing distribution systems. Update: Approximately $250,000 has been requested. Design for Spanish Colony extension was initiated during 2015 to be followed by easement acquisition and construction during 2016.
An overview of water revenues and expenditures is displayed below. Total water revenues for 2016 are currently 40.6% of budget for year to date collections. Year to date revenues as compared to 2015 for Residential, Commercial, and Industrial rates moved by 0.2%, -11.8%, and 17.2% respectively. Total rate revenue is currently up 0.1% from 2015 and is budgeted to be up 3% at the end of 2016 as compared to 2015. Year to date expenditures are 16.3% of budget for the first five months of 2016.
Water Overview YTD 2015 Actual
YTD 2016 Actual
% Change
% of 2016 Budget $20,015,207 23.2%
2016 Budget
Residential Rates
$4,630,866
$4,642,169
0.2%
Commercial Rates
$1,291,040
$1,138,340
-11.8%
$4,311,887
26.4%
Industrial Rates
$1,581,551
$1,853,626
17.2%
$4,291,743
43.2%
Other Rates
$1,413,861
$1,276,858
-9.7%
$5,691,600
22.4%
$627,006
$891,327
42.2%
$120,000
742.8%
Impact Fees
$3,173,730
$2,566,154
-19.1%
$7,728,534
33.2%
Other
$7,104,425
$8,635,138
21.5%
$9,582,253
90.1%
$19,822,480
$21,003,613
6.0%
$51,741,224
40.6%
$9,443,276
$8,161,245
-13.6%
$37,723,557
21.6%
$10,172,834
$10,771,244
5.9%
$78,570,378
13.7%
Total Expenditures
$19,616,111
$18,932,489
-3.5%
$116,293,935
16.3%
Difference (R-E)
$206,369
$2,071,123
903.6%
($64,552,711)
Raw Water Sales
Total Revenue Operating Capital
17
Sewer Funds The Sewer Department collects water-borne waste from residences and businesses. This in turn provides treatment and an environmentally safe release of waste collected. The Sewer Department also continues to rehabilitate dated sewer collection segments throughout the City. Currently the system has a total of 359.32 miles of line and 10 sewage pumping stations. Sewer projects in 2016 include:
$7.2 million for Water Pollution Control Facility improvements Update: HDR Engineering has been selected to complete the design of these facilities, the project will be ready to bid June 2016.
$6 million for the North Greeley Sewer Phase II, $967 thousand for the trenchless main and collector rehabilitation projects Update: Design has been completed, currently awaiting site approval from the Department of Health and acquisition of a license agreement from the Union Pacific Railroad before bidding the project. Construction will start once these elements have been finalized.
$480 thousand to rehabilitate the sewer collection system Update: WWC resources were used to construct the sewer line in the 1800 block of 2nd Ave in April. WWC will construct the sewer located in the 1900 block of 9th Ave starting in June with an anticipated 3 week construction period.
Below is a summary of Sewer revenues and expenditures. Residential, Commercial, and Industrial revenues have moved by 0.5%, -0.3%, and 14.3% in 2016 as compared to 2015. Total rate revenue is budgeted to increase by 3%, and we are currently seeing an increase of 1.2%. Total sewer revenue in 2016 is down by 7.6% from 2015 and is budgeted to be up 11.2% over 2015 at the end of 2016.
Sewer Overview YTD 2015 Actual YTD 2016 Actual
% Change
2016 Budget
% of 2016 Budget
Residential Rates
$2,620,733
$2,634,451
0.5%
$6,863,572
38.4%
Commercial Rates
$728,640
$726,129
-0.3%
$2,206,161
32.9%
Industrial Rates
$210,817
$240,860
14.3%
$559,900
43.0%
Impact Fees
$1,630,153
$1,221,435
-25.1%
$3,808,480
32.1%
Other*
($269,542)
($275,494)
-2.2%
$210,668
-130.8%
Total Revenue
$4,920,800
$4,547,382
-7.6%
$13,648,781
33.3%
Operating
$2,325,957
$2,399,113
3.1%
$9,632,442
24.9%
Capital
$1,634,735
$750,891
-54.1%
$17,935,449
4.2%
Total Expenditures
$3,960,692
$3,150,004
-20.5%
$27,567,891
11.4%
Difference (R-E)
$960,108
$1,397,378
45.5%
($13,919,110)
* Other includes year end adjustments.
18
Stormwater Funds The Stormwater division is responsible for:
Developing a Capital Improvement Program for Stormwater facilities
Monitoring and creating maintenance plans for the existing system
Developing City drainage standards
Reviewing flood impact issues
Regulating illicit discharges
Managing the City’s Stormwater National Pollution Discharge Elimination System (NPDES) permit
Capital projects in 2016 include: $3.8 million for 27th Avenue storm drain improvements 17th to the Poudre River Update: Phase I A has been completed ahead of schedule. Phase I B received bids $100,000 below estimates; and is scheduled to commence within the next couple weeks.
$1.2 million for Sunrise Neighborhood drainage improvements. Update: Design of Phase I is nearly complete, construction will begin October this year.
$0.7 million for drainage system repairs to system mains, inlets and culverts. Update: Stormwater is planning to survey a pipe re-build project at 2700 23rd Ave.
$0.3 million to fund annual neighborhood improvements.
A brief summary of Stormwater revenue and expenditures are shown below. Year to date revenue is 12.2% above 2015. Total Stormwater revenue for 2016 is budgeted at 1.2% over 2015 actual revenues. 2016 expenditures are budgeted to exceed revenues by $6.7 million as Stormwater fund balance is used. For 2016, 12.2% of the expenditure budget has been spent.
Rates Impact Fees Other* Total Revenue
Stormwater Overview YTD 2015 YTD 2016 % Change Actual Actual $1,765,999 $1,986,768 12.5% $139,516 $128,071 -8.2% ($155,967) ($151,121) 3.1% $1,749,549 $1,963,718 12.2%
Operating Capital Total Expenditures Difference (R-E)
$985,869 $160,196 $1,146,064 $603,484
$1,155,330 $436,037 $1,591,367 $372,351
* Other includes year end adjustments. 19
17.2% 172.2% 38.9% -38.3%
2016 Budget $4,839,131 $176,868 $126,650 $5,142,649 $4,094,296 $9,172,452 $13,266,748 ($8,124,099)
% of 2016 41.1% 72.4% -119.3% 38.2% 28.2% 4.8% 12.0%
Lodging Tax The Convention and Visitors Fund is funded by the city’s three percent lodging tax to support convention and visitors activities. For rooms rented in April, revenues decreased by 20.2% from 2015. Total collections for 2016 are $133,053. This is 29% of the budget estimate for 2016. Current revenues are in line with the budget for 2016. According to the April Rocky Mountain Lodging Report, Greeley year to date occupancy rates averaged 59.4% as compared to 73% in 2015. Greeley occupancy rates are continuing to trend downward against rates for all of Colorado which are currently at 63.8% occupancy. These figures continue to align with the slowdown of oil and gas production in Weld County. According to an article written by Bridgett Weaver in the June 11th edition of the Greeley Tribune; for one business oil and gas related occupancies accounted for up to 30% of their business, they currently have not seen that same rate of decline. It is anticipated that local core businesses as well as tourism will help prop up this industry. Local business owners are anticipating to see a rebound soon due to these influences.
$700,000 $600,000
$500,000 $400,000 $300,000 $200,000 $100,000 $-
2012
YTD Reciepts
$97,788 Actual / Budget* $389,760
2013
2014
2015
2016*
$126,963 $510,863
$177,713 $616,765
$166,745 $554,652
$133,053 $459,000
Greeley vs. Colorado Lodging Occupancy Rates 100.0% 90.0% 80.0%
Percent Occupied
70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
10.0% 0.0%
Jan
Feb
Mar
April
2016 Greeley Occupancy Rate
53.7%
57.4%
60.9%
65.5%
May
June
July
Aug
Sept
Oct
Nov
Dec
2016 Colorado Occupancy Rate
58.9%
64.4%
67.3%
64.6%
2015 Greeley Occupancy Rate
53.7%
68.2%
66.6%
2015 Colorado Occupancy Rate
58.9%
66.9%
67.4%
73.3%
78.1%
80.3%
78.8%
73.5%
72.0%
67.6%
57.7%
43.1%
64.2%
69.2%
80.1%
84.3%
79.2%
75.8%
68.9%
55.7%
52.5%
20
City Council Members Mayor Tom Norton Ward I: Rochelle Galindo Ward II: Randy Sleight Ward III: John Gates Ward IV: Michael Finn At Large: Sandi Elder At Large: Robb Casseday
Finance Department | 1000 10th Street | Greeley CO 80631 970-350-9731 | www.greeleygov.com
Prepared By:
Robert Miller, Budget Manager Cathy Kiriakos, Financial analyst
21