FY2023-2024 Approved Budget and Audit

Franchise Fees are paid by businesses for the use of City streets, alleys, and/or property in providing services to the citizens of the community.  Currently, the City of Lakeside collects franchise fees from Garbage, Cable, and Electric companies.  Estimated franchise fees for FY23-24 are projected at $89,000.00.

Note:  A budget change for FY23-24 was made to the Central Lincoln PUD Franchise line item. In 2015 the Council adopted the budget with a recommendation the PUD franchise fee be split 50% in the GF and 50% in the Street department.  These funds are unrestricted and this budget is presented with 100% of the PUD franchise going into the GF. If the General Fund becomes financially stable in the future, the franchise fees could be moved back to the Street Fund.  The addition of 50% of CLPUD franchise fees in the General Fund will fund the loan payment for the property purchased at 105 S 8th.

Transient Lodging Tax (TLT) dollars are collected by the City of Lakeside based on a tax rate of 7.5%.  Transient lodging includes: Hotels/motels, B&Bs, spaces used for RV parking or tents, Res01ts and Inns, Lodges and guest ranches, cabins, condos, apartments, duplexes, houses, and any other dwelling units or portion of a dwelling unit that is used for temporary stays (less than 30 days).  State law dictates how the tax is proportioned.  The City adheres to a 70/30 split of funds with 30% placed in the General Fund and 70% in the Tourism Fund. Anticipated TLT dollars for FY23-34 GF total $35,000.

Other Revenue consists of Interest, Miscellaneous, Rent, License, and Fees. The Miscellaneous Revenue line item is revenue generated from bottles and cans used for holiday community events (Trunk or Treat etc.). FY22-23 includes a refund from wrongly filed taxes from several years ago that was placed in this line item. Anticipated revenue for FY23-24 totals $12,000.

COVID State and Local Relief Funds (SLFRF):  The City received a one-time allotment award of $397,362 split over FY21-22 and FY22-23. The grant allows the City to take a one-time Loss of Revenue Exemption which small cities receiving under $10 million can use liberally with easier reporting within the guidelines.  The funds may not be used for pensions or the purchase of property. These funds have been used for the Food Bank container and may be used for government services traditionally provided by the government.   Government services are general government administration, staff, and administrative facilities.

Total anticipated revenues for FY23-24 for the General Fund are:  $170,100 (excluding grant)

General Fund Expenditures:

Personnel Services:

City Hall Administration currently operates with 2 full-time employees (City Manager and Utility Billing Clerk).  The City Clerk position remains vacant and has not been budgeted for FY23-24.  Personnel Services includes payroll for the City Manager at 50% and the Utility Billing Clerk at 30%.  A $2.00/hr raise is budgeted for the Utility Clerk based on expansion of duties and a goal of bringing employee wages to market rate.  An increase in pay has been budgeted for the City Manager subject to an annual evaluation.  Staff would encourage the Council to weigh the priorities of longevity and market pay versus the continual training and turnover of staff. The budget for Personnel Services for FY23-24 is 17% lower than the previous year due to staffing reductions. Council and Citizens should understand that reduced staffing means a reduced level of service.

Materials & Services:

Materials and Services category is the expenditures under which the city operates.  Line items like Attorney, Contracted Services, Audit, Insurance, License, Building Maintenance, Utilities, and Office Supplies all fall under the General Fund Materials and services. The Senior Center, City Hall, and Library (building and utilities) are subsidized from the General Fund.  Like wages, many line-item expenditures are calculated at a percentage across General, Street andWastewater Funds.

Dues, Travel and Conference has been increased for the FY23-24 based on the estimated number of Council and staff anticipated to attend the annual LOC Conference in the fall. The council may decide to limit funding for all Council members or some, but the line item has been funded with increased travel and dues in mind.

Contracted Services line item has been increased $3,000 from last fiscal year to allow for a consultant to help with a possible ballot measure and additional funding for website and IT expenses such as a new website design.  The Contracted Services line item also includes the City's accountant, lT services, and security.

Note:  All utilities, audits, and postage are expected to increase.  Insurance is projected to increase by 15% liability and 23% prope1iy. The total Materials and Services category is anticipated to be $164,747(excluding grants); and lower than FY22-23.

The Lakeside Airport line item has been moved to Wastewater (07).

Debt Service:  In May of 2023 the City purchased property with an existing building in downtown located at 105 S. 8111 Street for $274,000.  The 10-year debt service is shown in this FY budget.  The property is anticipated to be an economic driver for downtown with potential commercial use TBD.  Payments will be made utilizing General Fund resources which includes 50% of CLPUD franchise fees. 

Capital Outlay Expenditures means expenditures for the acquisition cost of capital assets, such as equipment, or expenditures to make improvements to capital assets that materially increase their value or useful life.  FY22-23 it was discovered the Senior Center Building roof was leaking. Estimates to fix the roof place the price at approximately $60,000.  The Capital Outlay City Hall line item has a budget of$75,000 to reflect expenditures related to replacing the roof on the Senior Center Building and any additional capital improvements that may be needed in FY23-24.

Community Development Fund Expenditures

Personnel:

The City of Lakeside Community Development Fund (04) operates with one .5 employee contracted through Cardinal Services and is expended through Materials and Services.  The one employee handles almost all aspects of the department including some code enforcement.  A full-time planner will become necessary in the future,  Based on the City's current financial state, recruitment could be difficult.

Materials & Services:

Materials and services have been reduced marginally for FY23-24.  The Grant line item has been increased to reflect the standard grant amount of$300,000 in most all funds.  The City's Comprehensive Plan has not been updated since 2013.  In addition, the City Development Code will need to be revised after a Comprehensive Plan update.  This budget reflects an intent to apply for a grant in the amount of $150,000  which would fund a Comprehensive Plan Update.

Tourism Fund:

Tourism Fund Revenue:

The City of Lakeside Tourism Fund (05) revenue comes from the collection of a Transient Lodging Tax (TLT) of seven and half (7.5%) on all sh011-term rentals (less than 30 days). Oregon State Law dictates what percentage of fees collected be restricted for the promotion of tourism.  70% of all TLT dollars collected make up the revenue in the Tourism Fund. Anticipated Revenue for FY 23-24 is budgeted at $80,000.

Tourism Fund Expenditures:

Based on an increase in TLT over the last couple of years, the City has been able to build the fund and expend dollars on projects.  Last FY the City budgeted $50,000 for a Logo/Branding Vision project. ·The new logo and branding will set the tone for future advertising and promotion of Lakeside.  The City also purchased skyline holiday lights and a banner.

Based on the goals of the Council the following line items have been increased:  Budgeted for FY23-24 is an increase of$10,000 for Wulfy Beach maintenance.  Event Expense has been increased by $10,000.  July 4th line item has been increased to reflect the purchase of fireworks and other 4th of July-related expenses such as barge rental and other promotional materials.

Wastewater Fund:

Wastewater Fund Revenue

The Wastewater Fund (07) primarily receives revenue from monthly sewer fees.  Other revenue sources include interest earned and sewer hookup fees,  Last FY the City Council heard testimony regarding the status of the Capital Reserve Fund and why the fund was not able to be increased though a transfer of revenue designated to assist in the Wastewater Plant Project.  The Council raised rates according to the Rate Study 20% to help make up the deficit.  This FY the Fund shows a transfer of $50,000 into the Capital Reserve fund which represents approximately 5% of the total revenue collected.  This 23-24FY budget includes a 10% increase in sewer fees in accordance with the Study.

Grants:  The City received an ARPA grant of 14 million to relocate, upgrade and expand the existing wastewater plant.  The project will require approximately 8 million in additional funding and staff continues to explore funding options.  The grant line item reflects the dollars expected to be reimbursed through expenditures for the project during the 23-24FY.

Total anticipated revenue (excluding grant dollars) for the Wastewater Fund:  $811,500. Personnel Services:

Wastewater Fund personnel services includes the Wastewater Supervisor and 3 operators.  The City Manager is funded at 40% and the Utility Billing Clerk is funded at 70%.  The City Clerk position is not funded.  Personnel services for FY23-24 include a 3% COLA for operators; a percentage increase for the City Manager and Utility Bilfu1g Clerk and a $5,000/yr. increase for the Wastewater Supervisor, who will be transitioning into a Public Works Director position. Personnel Services includes a small increase for operators who receive certificates.  The total personnel expenditure for FY23-24 shows a decrease of$8,400 over last FY.

Materials and Services

Several line items in this category have increased due to the cost of operations.  The existing infrastructure and equipment continue to be a problem with unexpected failures and repairs costing in excess of $85,000 this FY.

The Airport line item was moved back into wastewater materials and services and funded at $15,000.  Anticipated expenditures include a Rainbird computer system ($10,000) which controls the airport sprinkler system and regular maintenance costs.

Contracted Services has been increased to allow for across-the-funds increases and a one-time setup of a security system ($16,000 total) funded at 60% for the plant buildings.  TV/Line Cleaning has been budgeted for FY23-24 increasing the line item $30,000 over the last fiscal year.

Total Material and Services for the Wastewater Fund are projected at $588,072 (excluding grants) an increase of$37,772 over last FY.

Capital Outlay:

FY23-24 purchases include a new vehicle for $65,000.00.  The vehicle was budgeted for 22-

23FY but was put on hold due to the unexpected expenditures stated above.  A Jet/Rodder system is also budgeted in the equipment line item. The equipment will allow staff to resolve problems in the field without using contracted services and save the city approximately $5,000 a year.

Transfer of Funds to Wastewater Capital Reserve:

FY22-23 the City was unable to transfer funds into the Capital Reserve Fund based on several factors heard during testimony from the City Engineer last budget year.  The City Council approved a 20% increase in sewer rates to make up the difference, however unexpected expenditures totaling approximately $85,000  cut into the expected revenue leaving an estimated transfer of $50,000 equating to 5% of total revenue from sewer payments.

FY 2021-22 Wastewater Treatment Plant Project:

Wastewater expansion and improvements: The City has secured a funding package that includes a 14-million-dollar grant and obtaining  a low-interest loan to complete the project.

Fiscal Year (FY) 2023 has included preliminary design, surveying, and Membrane Equipment Procurement for the Wastewater  Treatment Plant (WWTP).   The WWTP design is on schedule for completion in late 2023.   Bidding construction and installation of the preselected membrane treatment units is anticipated for early 2024.    After the contract award for construction, we anticipate a Contractor beginning mobilization and the submittal process for

equipment. Concrete  tank and piping construction may begin prior to the end of 2023

FY.  We anticipate the City will have design costs and construction costs in FY 2023.    The bulk of the construction costs are anticipated in FY 2025, however if material availability improves, the construction schedule may accelerate.    Bidding, construction management,  and onsite observation services by Dyer Engineering would begin in FY 2023.  Grant Funds have been increased to $6,000,000.

Library Fund:

The Lakeside Library Fund (21) operates with funds collected from Coos County Library Service District Tax Base. The cities of Coos Bay, Bandon, Coquille, North Bend, Myrtle Point, Powers, Dora and Lakeside aJI make up the Coos County Library Service District. The voters of Coos County have determined that a cooperative library service is in the public interest and have provided stable funding for such services through approval of a tax base and by the creation of the Coos County Library Service District.

Out of the revenue generated by the Coos County Library Se1vice Distict Tax Base, the District agrees to distribute money to the City of Coos Bay to provide the county-wide cooperative library materials, personnel and services, including the union catalog and interlibrary loan service, automated library circulation and on-line catalog service, outreach and courier services, books-by mail, reference service, and satellite libraries (collectively, the ''Extended Service Office" or "ESO" services).

Money is allocated to each of the libraries as the county's taxes come in. The City of Lakeside is under contract with Coos County Library Service District to provide a library building plus maintenance and repair of that building. The City subsidizes the utilities and acts as the fiscal agent for the library.

Library Fund Revenue:

The library operates from Special  District revenue budgeted conservatively at $90,000. The library also has a restricted trust fund of $33,247. The trust fund interest is supposed to be used for materials and books; however,  the trust does not yield enough interest to be relevant. In the future, the library will need to investigate possibly freeing the fund to be better utilized.