City of Mountlake Terrace2011-2012 Proposed Biennial Budget

Budget Message

October 4, 2010

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Budget Message

• Financial Plan and Roadmap– Financial and Operation Document– Guide that Determines the Direction of Government

• Policy Document– Provides direction for all programs & services– Competing Needs and Choices versus Limited Resources

• Implements City Council Goals• Review and Adoption of Budget is one of the City Council’s Most

Important Roles as Legislative Body• Community Values and Amenities

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City of Mountlake Terrace…part of the solution…

• Continues to meet key community priorities– Public life, health and safety (e.g., police, fire, emergency medical services; building

inspections; traffic control; water, sewer, and storm drainage service and infrastructure maintenance)

– Legal mandates (e.g., accounting/auditing/financial reporting; land-use planning)– City facilities and property: maintenance of park land, buildings, streets, right-of-way, and

equipment– Recreational, athletic, aquatic and youth programs– City Council and Community goals

• Retains existing municipal jobs

• Continues with aggressive and ambitious capital investment program

• Maintains existing levels of municipal service that our citizens have come to expect and demand

Mountlake Terrace Community• Incorporated Nov 29, 1954

• Council-Manager form of government

• 20,990 people

• 3.95 square mile areas

• Density: 5,157 residents per sq mile

• Full-service city – 159 employees

• Median age: 34

• Total households: 8,150

• Avg assessed home value: $256,200

• Property tax rate: $1.88/$1,000 AV

Mountlake Terrace Community• College degrees: ¼ adult population• Professional occupations: 77% of workforce• Annual median household income: $64,122 • Average annual wage of jobs in City: $44,400,

rank 10th of 50 Puget Sound cities• 7,000 jobs• Jobs to households: 0.80• 545 businesses• Convenient transportation choices • Regional recreation facilities

– Recreation Pavilion– Off-Leash Dog Park– Disc Golf Course– Nile Golf & Country Club– Ballinger Lake Golf Course– 12 w/262 acres of parkland & open space

Community RecognitionRecreation Pavilion: Awards & Accolades

Seattle Metropolitan Magazine names us "Best Place For A Pool Party"!

ParentMap Magazine selects us as "Best Place to Swim"!

Recipients of Aquatics International's 2006 "Best of Aquatics" Award

Excellence in Aquatics Award 2007 for pools serving communities with a

population of 20,000-50,000.

• Snohomish County Fire District #1• Lake Ballinger/McAleer Creek Watershed Forum• Association of Washington Cities (AWC)• Prosperity Partnership/PSRC• EDC, SSCCC, MLTBA• Snohomish County Committee

for Improved Transportation(SCCIT)• Sound Transit & Community Transit• State & Federal Delegation• MTYAA

Partnerships & Participationwith Regional Organizations

The Economy• “Great Recession” -- 36 months by December 2010• Deterioration of economy• Massive layoffs• Service reductions• Elimination of services• Delay of infrastructure projects• Continued unemployment and growing under-employment (20-25%) • Slumping real estate market• Tight credit markets• Continued slowdown in consumer spending • Consumer confidence lowest in decades• Most difficult years (perhaps next decade) may still be ahead• Change and uncertainty of economic conditions

City’s Approach to Economic Recession

• Opportunity in Crisis…– Different Economic Environment from just a year ago– The New Normal– Economic Reset– The Lost Decade– How to address continued change and uncertainty

• In Mountlake Terrace…– Services to our citizens and community have been maintained– No lay-offs or reductions in services– Continued and ongoing focus on service delivery and identification of

organization and resource efficiencies– Aggressive capital improvement program– Focus on economic development

City’s Approach to Economic Recession

• Why is the City of Mountlake Terrace weathering the most difficult economic times in generations?– Strong and Effective Leadership– Strategic Focus on Community Priorities (e.g., capital investment, economic development,

finances, public safety, recreation & parks, public works)– Resources aligned with Community’s Priorities– Adhering to sound & prudent financial policies– Balanced budget (operating revenues align with operating expenditures)– Maintaining Adequate Reserves– Six-year financial forecast – Continuous Focus on Business Model & Organizational Improvements– Balance between Basic Services & Capital Investment– Local, Regional & National Partnerships– Advancing Technological Solutions– Fees for Service Reflecting Cost of Delivery

City’s Approach to Economic Recession

• We no longer subscribe to…“That’s the way we always did it”– Economic Development as a priority (e.g., broaden & diversify economic base, focus on

underdeveloped/underutilized commercial areas)– Aggressive $83.8 million CIP– Leveraging $5.0 million in state and federal funds– Increased Services

• Public Safety (e.g., SWAT, code enforcement, bicycle patrol, animal control)• Parks Maintenance• Streets & ROW Maintenance• Facilities Maintenance

– Streamlined Services (examples)• Contract for fire & EMS services ($600,000 per year beg 2005)• Custodial services transitioned from in-house to contract ($250,000 per year beg 2007)• Elimination of management positions ($400,000 per year beg 2006)• Fleet management best practices ($300,000 per year beg 2009)• Proactive (vs. reactive) approach with implementation of action strategies and preventative

measures

• Code updates the past few years have made a difference

• Over 45 development projects on the horizon

• Several in Town Center alone total $65-$100 mil

• Average new construction citywide in previous decade totals $15-$20 million per year

Town Center & Economic

Development

Town Center Plan Adopted

Working with Interested Developers for Private Parcels

Capital Investment Underway

Public Process Alive & Well

Public Transit Up and Running

Zoning in Place

Housing Choices Program provided

Recreation & Parks Thriving

Arts & Culture Plan in Process

Civic Facilities Defined

Sustainability & Conservation Strategy Completed

Economic Development Plan in Place

State & Federal Partnerships Established

City Council and Community Support

“READY TO GO & OPEN FOR BUSINESS”

Town Center VisionNext Steps

• Economic Development Office (2011/2012 Biennial Budget)– Town Center Plan– Economic Vitality & Marketing Strategy– Economic Development Council (EDC)– Welcome & Information Packet– Branding Opportunities

• Infrastructure Financing/Economic Development Tools (e.g., 56th Ave W, Town Center, parks & open space, arts, watersheds, etc.)– Local Infrastructure Financing Tool (“L.I.F.T.”) – Local Revitalization Financing (“LRF”)– Grants– Federal Funding– State Capital Budget

Town Center: 56th and 236th

Mountlake Terrace Farmers’ Market

Mountlake Terrace Transit Center

Federal & State Funds - $5.0 mil52nd/53rd Avenues Water Main Construction Project

$500,000 - FY 2008 federal funding for phase 1 of downtown water main project

$500,000 - FY 2009 federal funding for phase 2 of downtown water main project

52nd Ave W Reconstruction Project (212th-220th) Project$1,000,000 - American Recovery and Reinvestment Act of 2009

230th Street SW Reconstruction Project$961,350 - American Recovery and Reinvestment Act of 2009

$245,995 - State Transportation Improvement Board funds (sidewalks)

222nd Street Sidewalk Connection Project$195,254 - CDBG funds in support of sidewalk project adjacent to Jack Long Park (222nd Street SW between 58th and 60th

Avenues W)

222nd Street Sidewalk Connection Project$200,000 - CDBG funds in support of sidewalk project along 222nd St SW between 39th and 44th connecting to Cedar Way

Elementary School and Bicentennial Park

212th Street SW Overlay Project (from 44th to 52nd Avenues W)$285,590 – Surface Transportation Program (STP) funding in partnership with City of Lynnwood ($571,180)

Stormwater Program$50,000 - Phase II Stormwater Pass-Through Grant Program in support of NPDES II training, community education, and

replacement of street sweeper

$50,000 (2008) - Phase II Stormwater Pass-Through Grant Program in support of NPDES II training, community education, and replacement of st sweeper

$75,000 (2009) - Phase II Stormwater Pass-Through Grant Program in support of NPDES II training and community education

$125,930 (2010) - Phase II Stormwater Pass-Through Grant Program in support of NPDES II, anticipated uses in our community include public education efforts using a multimedia approach, expansion of an existing water quality monitoring program on Lake Ballinger to include Hall Creek and planning, design and construction of a city sponsored storm retrofit and Low Impact Development project

$200,000 (2009) - State appropriation in support of Lake Ballinger/McAleer Creek Watershed to develop Strategic Action Plan (SAP) in partnership with cities of Edmonds, Lake Forest Park, Lynnwood, Shoreline and Snohomish County

Lakeview Trail$200,000 – FY 2010 federal funding connecting Mountlake Terrace Transit Center at I-5/236 th St West to Interurban Trail

along Lakeview Drive

Town Center$135,000 - Energy Efficiency and Conservation Block Grant (EECBG)

$75,000 - Energy Efficiency through Transportation Planning Grant

$100,000 – Transfer of Development Rights (TDR) Alliance through State Department of Commerce

Electric Vehicle Charging Stations$52,000 - Department of Energy and Coulomb Technologies Grant -- This project will furnish ten electric vehicle

charging stations to the City for installation at the Mountlake Terrace Transit Center

Federal & State Funds - $5.0 mil

Stormwater Program$500,000 – federal appropriations in support of Civic Campus & Lake Ballinger/McAleer Creek Watershed

Basin

$1,200,000 - 2010 Water Resources Development Act (WRDA) Project Request in support of Lake Ballinger/McAleer Creek Watershed Basin

Lakeview Trail$1,000,000 – federal funding connecting Mountlake Terrace Transit Center at I-5/236 th St West to Interurban

Trail along Lakeview Drive

Emergency Response Interoperability$500,000 federal funding to replace and upgrade our integrated regional 9-1-1 system along with a series of

modern law enforcement tools needed to meet public safety obligations in our community

Pedestrian/School Safety Sidewalk Project$750,000 - federal funding for sidewalks along 214 th St SW between 40th and 44th connecting to Mountlake

Terrace High School and 54th Ave between 220th and 223rd connecting to Mountlake Terrace Elementary School

2010 Federal Funding Requests

Safe Routes to School$330,000 - 54th Ave W, 220th to 223rd Sidewalks (pending)

State Transportation Improvement Board (TIB)$250,000 – 214th St SW, 40to to 44th Ave W Sidewalks (pending)

Sustainable Communities Up to $5.0 mil – Regional Planning Project (pending)

Community Challenge Planning Grant$120,000 – Comprehensive Plan (pending)

PSRC/Public Works Prioritization Grant$1,000,000 to $3,000,000 – 56th Avenue West (will be submitted on October 8)

Transportation Enhancement Program$1,900,000 – Lakeview Trail (not selected this year)

PSRC/CMAQ$300,000 – Lakeview Trail (not selected this year)

Current Grant Applications

Mountlake Terrace Civic CampusMay 17, 2010

Ballot Consideration

Standard & Poor’s (S&P) Bond Rating

• S&P assigned its ‘AA’ Rating• Stable outlook• Recognized for sound financial policies & practices • Provides quarterly financial performance review• Developed six-year forecasting model• City is a quality borrower• Very strong capacity to meet its financial commitments• City commended for its resourcefulness in responding to

changing conditions• City stands out in management• City is clearly different than the city of three or so years ago

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• Department and Program Budget

– Mission

– Services Provided

– Goals & Objectives

– Performance Measures

– Highlights & Changes

– Multi-Year Summary of Costs and Personnel

Organization of the Budget

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Organization of the Budget• General Government

Funds (9)– General Fund (1)– Special Revenue (6)

• Street Operations• Strategic Reserve• Hotel/Motel Tax• Solid Waste Service• Recreation• Accumulated Leave

Reserve– Debt Service (1)– Internal Service (1)

• Fleet Management

• Capital Improvement Funds (3)– Real Estate Excise Tax

(REET)– Street Construction– Capital Improvement

• Utilities (3)– Storm Water/Drainage– Sewer– Water

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Council Goals• Protect and Enhance the City’s Financial Health and Stability

• Generate Economic Development throughout the Community

• Review and prioritize Capital Infrastructure Needs and Implement Projects

• Develop and Implement a Strategy to address the City’s Aging Public Facilities

• Develop and Implement effective Communication and Outreach with the Community

• Maintain appropriate and essential Public Services in a cost effective manner

Budget Summary and Highlights

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General Government Sources

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General Government Revenues

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General Government Uses

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General Government Uses

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General Government Expenditures

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• Consequences of investments and capital projects extend far into the future;

• Decisions to invest are often irreversible; and

• Such decisions significantly influence a community’s ability to grow and prosper

Capital Improvement Funds

Capital Improvement Funds

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Utility Funds

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Utility Funds

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Budget Highlights by Council GoalProtect and Enhance the City’s Financial Health and Stability• Balanced Budget• Performance Measures• 6-Year Financial Forecast• 6-Year Capital Improvement Plan (CIP)• 6-Year Information Technology Plan• Utility rate structure• Operational efficiencies & alternative delivery service means• Prioritization of unfunded CIP needs• Strong Reserves

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Budget Highlights by Council GoalGenerate Economic Development throughout the Community

– Economic Development Office• Town Center Plan• Infrastructure Financing/Economic Development Tools (e.g., 56th Ave

W improvements)• Economic Vitality & Marketing Strategy• Economic Development Council (EDC)• Welcome & Information Packet• Branding Opportunities

– Sustainability & Conservation Strategy– Strategic Cultural Arts Plan– Streamlined Development Services Process– Comprehensive Plan Amendments, Zoning Code updates &

Shoreline Master Plan

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Budget Highlights by Council GoalReview and prioritize Capital Infrastructure Needs and

Implement Projects

• Updated 6-year Capital Improvement Plan (CIP) and Pavement Mgt System– Ambitious street construction program that is consistent with Transportation

Master Program (TMP) adopted in 2007 (e.g., overlays, chip sealing, sidewalks, and street reconstruction projects, traffic calming and bicycle lanes).

– Neighborhood chip seal program (5.03 miles)• 212th Street SW (52nd to the west city limit) – partnership with Lynnwood• Cedar Way (232nd to 244th)• The streets bounded by 230th, 236th, 48th and 56th

– Overlay projects (1.00 miles)• 212th St SW (44th to 52nd) – partnership with Lynnwood• 228th St SW (39th to 44th)• 44th Ave W (228th to 230th)

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Budget Highlights by Council GoalReview and prioritize Capital Infrastructure Needs and

Implement Projects (cont’d)

– Lakeview Pedestrian/Bicycle Trail (Mountlake Terrace Transit Center to Interurban Trail)

– Sidewalk installation at 222nd St SW, 39th to 44th (Bicentennial Park & Cedar Way Elementary School)

– Sidewalk installation at 54th Ave W, 220th to 223rd (Mountlake Terrace Elementary School)

– Installation of ADA sidewalk ramps– Bike route signage and lane striping

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Budget Highlights by Council GoalReview and prioritize Capital Infrastructure Needs and

Implement Projects (cont’d)

– Information Technology

– Property Management

– Parks

– Recreation

– Public Safety

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Budget Highlights by Council GoalReview and prioritize Capital Infrastructure Needs and

Implement Projects (cont’d)

• Storm Water Utility Construction Projects

– 2011 projects [$1,646,989]:• Lake Ballinger Watershed Partnership (to be determined)• Decant Station at Public Works • Remove culverts at 230th Street crossing of Hall Creek • Rehab & reroute storm in advance of 212th Street SW Overlay• Reroute storm to 216th St. SW for 52nd and 53rd Pl. cul de sacs (north of 216th) • Replace storm line on 46th Ave. W between 239th and 243rd

– 2012 projects [$865,609]:• Lake Ballinger Watershed Partnership (to be determined)• Replace storm line on 228th St. SW between 40th St. SW and 42nd in advance of 2012 overlay • Sellen Construction Site Hall Creek Improvements (bank stabilization needed) • Replace storm line on 46th Ave. W between 239th and 242nd • Replace storm line on Lakeview Drive adjacent to the Ballinger Swim Beach • Replace storm line on 238th Street SW between 54th & 55th

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Budget Highlights by Council GoalReview and prioritize Capital Infrastructure Needs and

Implement Projects (cont’d)• Sewer Utility Construction Projects 

– 2011 projects [$948,167]:• Decant Station at Public Works • Replace 300 feet of 8-inch sewer along with support piling at the City’s golf course.• Construct replacement lateral at 5700 block of 212th Street• Replace 175 feet of 8-inch sanitary sewer (reverse grade) and a lateral in 47 th, north

of 232nd

• Replace 75 feet of 8-inch sewer at 229th and Cedar Way in advance of 2012 overlay – 2012 projects [$902,253]:

• Reline sewers mid-block between 37th and 38th, and between 38th and 39th, from 220th to 223rd

• Reline the sewer in 220th Place from 36th to 39th, and • Reline the sewer northeasterly of 44th & 228th

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Budget Highlights by Council GoalReview and prioritize Capital Infrastructure Needs and

Implement Projects (cont’d)• Water Utility Construction Projects

– 2011 projects [$1,775,612]:• Decant Station at Public Works • Recoat 2.5 MG Water Reservoir• Automatic meter reading (AMR) Project• Relocate water main at 230th Street crossing of Hall Creek

– 2012 projects [$1,648,982]:• Replace steel main in 219th Street SW, west of 58th

• Replace steel main in 54th Avenue W and 216th Street SW, from 56th to Maple Glen Apts. • Install 8” main from 56th & 214th to Maple Glen Apartments• Automatic meter reading (AMR) Project

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Budget Highlights by Council GoalReview and prioritize Capital Infrastructure Needs and

Implement Projects (cont’d)

– Proactive approach to identify and pursue applicable grant & loan opportunities

– Identified and prioritized unfunded CIP needs totaling over $142 million to include financing options

• Public Facilities $74,282,400• Street & Sidewalk Improvements $57,128,135• Parks & Open Space $10,753,000• Citywide Equipment $693,500

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Budget Highlights by Council Goal

Develop and Implement a Strategy to address the City’s Aging Public Facilities

• Civic Campus Plan• Capital Improvement Plan (CIP) for all public facilities• Public Works Shop• Recreation Pavilion• Green Building Practices

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Budget Highlights by Council GoalDevelop and Implement effective Communication and

Outreach with the Community

• Continuation of current community outreach and information– Webpage– Social Networking– City Happenings– E-Government (e.g., MLT Anytime, online utility payment, online

recreation registration)– Coffee with the City– Police Citizen Academy– Partnerships with state and federal delegations

• Community Relations Specialist• Community Events (e.g., May clean-up, concerts in the park, Tour de Terrace,

National Night Out, Evergreen Awards, Arts of the Terrace, Tree Lighting Event)

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Budget Highlights by Council Goal

Maintain appropriate and essential Public Services in a cost effective manner

• Police Bicycle Patrols• SWAT/Felony Search Warrant Team• Resources allocated to target areas of the city experiencing elevated

levels of crime (e.g., vehicle prowls, burglaries)• Code Enforcement• Community Assistance in support of code enforcement• Recreation & Parks amenities• Beautification & appearance of roads, streetscapes, parks grounds and

facilities • Park Maintenance• Support of various Community Programs (Mountlake Terrace Seniors Group,

Mountlake Terrace Garden Club, Tree Lighting Event, Evergreen Awards, and Tour de Terrace)

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• Change and uncertainty of economic conditions • Reliance on Gambling Taxes• Legislative Changes & Initiatives• Rising Employee Health Care & Pension Costs • Growing demand for services (e.g., economic development,

senior services, community events/grants)• Underdeveloped/underutilized commercial areas (e.g.,

downtown)• Age of City’s physical infrastructure (30-50 years old)• Unfunded Capital Improvement Needs

Other Issues Affecting the Budget

Impact of Economic RecessionFall 2010 Forecast vs. Fall 2008 Forecast

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Parks & Open Space$10,753,000

8%

Citywide Equipment$693,500

0%

Property Management & Facilities$74,282,400

52%

Street & Sidewalk Improvements$57,128,135

40%

City of Mountlake TerraceUnfunded Capital Needs

$142,857,035

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Acknowledgements

• Scott Hugill, Assistant City Manager/Administrative Services Director

• Sonja Springer, Finance Director • Leslie Choate, Executive Assistant • Mick Horton, Finance Technician • Terri MacIsaac, Finance Technician • Myrna Osborne, Finance Technician • Terry Stausser, Finance Technician • Dana Volk, Finance Technician

Conclusion• City Council Leadership• Strategic Approach to Economic

Development• Town Center Plan• Zoning in Place• Housing Choices & Options• Public/Private Partnerships• Revitalization & redevelopment

opportunities• Sustainability and Conservation

Strategy (“Creating a Livable Community”)

• High level of municipal services• Financial accountability• Streamlined permitting process

Mountlake Terrace’s best days are not behind us…

…but are in front of us.