FY 2013 Budget Process Update

FY 13 Budget Process Update

May 14, 2012

Budget Objectives

Prepare a balanced budget that:– Meets strategic priorities, – meets basic service levels

Within available resources

Position the City to meet future needs with limited resources.

OutlineBudget Calendar

Current Conditions

Budget Status

Budget Policies

FY 13 Budget Issues

Next Steps

Budget Calendar

May 13 – Council Budget Process

Presentation

June – Council Strategic Planning

June/July - Staff prepare budget

Late July/Early August - Present proposed

budget

Budget Calendar

August – September – Budget Workshops

August 23 – Budget Public Hearing

September 13th - Budget/Tax Rate

Adoption

October 1 – New Fiscal Year begins

Budget must be adopted by Sept 27.

Current Conditions

Moderate economic growth

Moderate growth in sales tax

Property value growth projected to be

minimal

Current Budget Status

Key General Fund Revenues

Sales Tax 37.5%

Property Tax 25.1%

Utility Transfer 18.5%

All other revenues 18.9%

General Fund Revenues

Ad Valorem Tax

25.11%

Sales Tax37.50%

Mixed Drink & Franchise

4.46%

Licenses & Permits1.79%

Intergovernmental0.44%Parks & Recreation

0.15%

Other Charges for Services4.94%

Fines, Forfeits & Penalties6.27%Investment Earnings

0.12%

Miscellaneous0.67%

Return on Investment

18.54%

General Fund - Sources

Property Values

2011 Certified Values $5,738,615,002

2012 Prel Value Estimate $5,871,213,947

2012 New Value $148,685,429

Existing values estimated to be fairly flat

Final values will be certified by July 25

Sales Tax

FY 12 to date

– 5.53% above estimate

– Positive growth seen the last year

FY 13 Forecast

– 2% projected

Budget Reductions

Reduced $7.1 million from FY 09-FY 12

Eliminated 44 Full time positions in FY 11

and FY 12

– Reorganization and reductions eliminated 27

positions in FY 12 budget.

Budget Actions – Current Year FY 12

Budget Additions

–Fire Station #6 operations and

maintenance

18 positions added to budget

–Additional $350,000 for Street Overlays

Budget Policies

Budget Policies

Provide parameters for budget preparation

Revenue Policies

– Tax RatePrepare Budget using existing tax rate

Budget Policies

– Utility Transfer PolicyElectric

– Reduced by $1,500,000 in FY 11, an additional $500,000 in FY 12, and an additional $1,000,000 forecast in FY 13.

– Cap at 6% of Operating Revenues, – Future increases based higher electric sales.

Water, Wastewater, and Sanitation 10% of Operating Revenues

Budget Policies

Capital Maintenance and Replacement

Fund Balance Policies– General Fund 15%– Utility Funds 15%

FY 13 Budget Issues

FY 13 Budget Issues

Modest revenue increases

Continue electric transfer reduction

Demand for services continues

Additional General Fund reductions

needed to stay balanced

FY 13 Budget Issues

Identifying potential budget reductions

Evaluate service level impacts

Proposals will be made in the FY 13 budget

FY 13 Budget Issues

Police Department

Police positions and associated equipment

Public Works – Street Maintenance

Street maintenance and rehabilitation

projects

Other Service Level Demands

FY 13 Budget Issues

Pay and Benefits

– Largest component of operating budget

– Form a Council Committee to review

Pay and benefit policies

FY 13 Budget Issues

Capital Project Operations and Maintenance

Utility Rates

Financial Forecast Impacts

General Fund

– Moderate revenue increases

– Reductions in Utility Transfer

– Public Safety

– Street Maintenance

– Additional Service level demands

– Additional revenue and/or reductions needed

Financial Forecast Impacts

Utility Funds

– Rate increases forecast

– Operations and maintenance

– Capital costs

– Debt Service costs

– Reductions in Utility Transfers

Next Steps

Monitor economic conditions

Monitor revenues

Identify service priorities

Reduce expenditures as necessary

Prepare Proposed Budget and identify key

budget decisions