City of San AntonioCity of San Antonio

FY 2013 Proposed Annual Operating and Capital Budget

Presented by City Manager Sheryl Sculley

August 9, 2012

2

Budget Summary• FY 2013 Budget is balanced• No City Property Tax Rate

Increase• Focuses on Community and

Council Priorities– Provides more Streets and

Sidewalks– Enhances Code Enforcement– Increases Animal Care Services– Targets Neighborhood

Revitalization– Adds Police Officers through

Civilianization– Budget Spending aligned with

SA2020 Goals

3

San Antonio Economy• San Antonio economy is growing• 1.5-2.0% employment growth anticipated

in 2012• Consumer Confidence has improved as

Sales Tax Revenues are above projections• Housing market shows

improvement, however 2013 existing property taxvalues slightly below 2012

Source: Dr. Steven Nivin SABER Institute

4

City Council Policy Vision Areas and Strategic Goals

• On June 6, 2012 a Policy Goal Setting Session was held for the City Council to develop strategic goals and service delivery priorities for the next three to five years

• City Council Policy Vision areas include:– Economic Development– Education/Workforce

Development– Neighborhood

Revitalization– “Best in Class”

Public Services– Transportation– Governance

5

Community Input Before Budget Development

• 5 area budget hearings held prior to Budget Preparation– May 21 through May 24

• Provided opportunities for residents to identify service priorities for Proposed Budget

6

Community Service Delivery Priorities

Police & Fire

Streets & Sidewalks

Early Childhood &

Education

Code Enforcement

Animal Care

COMMUNITY PRIORITIES

City of San Antonio

Budget Summary

8

All Funds Budget Summary

Total Consolidated City Budget (All Funds)$2.3 Billion

$977 MillionGeneral Fund

$665 MillionRestricted

Funds

$636 Million Capital Budget

9

City Authorized Positions

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

8,506 8,236 8,266 7,952 7,617 7,501 7,376 7,343

3,551 3,652 3,766 3,926 4,005 4,030 4,033 4,034

Civilian Uniform

12,057 11,888 12,032 11,878 11,622 11,531 11,409 11,377

10

General Fund Budget Year over Year Change

Budget FY 2012

Budget FY 2013

PercentChange

General Fund Total Expenses ($ in Millions) $948 $977 3%

11

Property Tax Rev-

enues$24324.9%

Sales Tax Revenues

$22222.7%

CPS Rev-

enues$28629.3%

Other Re-

sources$22623.1%

Other Expen-ditures$243 Police*

$373

Fire$251

Public Works

$63

Parks & Rec$47

* Police Budget includes Parks Police

FY 2013 TOTAL PROPOSED BUDGET: $977 Million

GENERAL FUND AVAILABLE RESOURCESDISTRIBUTED OVER MAJOR SPENDING AREAS

($ IN MILLIONS)

12

General Fund Other Expenditures

DepartmentFY 2013

Proposed Budget($ in Millions)

Human Services w/ Delegate Agencies $ 37.7

Library 33.4

Municipal Courts 13.3

Code Enforcement Services 11.4

Health 11.1

Animal Care 10.9

Economic Development & Incentives 6.4

Downtown Operations 6.0

Customer Service/311 3.3

General Administration / Non-Departmental 109.8

Total Other Expenditures $ 243.3

City of San Antonio

General Fund Revenues

14

General Fund Revenues$ in Millions

Property Tax Sales Tax CPS Other$0

$50

$100

$150

$200

$250

$300

$239

$199

$290

$167

$243 $222

$286

$168

FY 2012 Adopted Budget FY 2013 Proposed

1.5% 11% -1.4%

Total Proposed General Fund Revenues: $918 Million

0.6%

15

General Fund Other Revenues$ in Millions

RevenuesFY 2013

Proposed Budget($ in Millions)

Public Safety including EMS Transports $29.4

Business Franchise Tax (Telecommunications) 36.0

Fines 14.6

Payment from SAWS 11.0

Recreation and Culture 10.9HOT Tax reimbursement for History and Preservation activities 7.9Outside Agencies including County Reimbursement for City Services 7.7

Licenses and Permits 7.2

Sale of Property, Interest Earnings, Recovery of Expenditures, Other 43.3

Total Other Revenues $168.0

16

Sales Tax – 10 Year History ($ in Millions)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Budget

2012Estimate

2013Projection

$-

$50

$100

$150

$200

$250

$140 $139 $149

$163 $178

$190 $196 $187 $189

$200 $199

$215 $222

Average annual increase for prior 10 years = 4%

Actuals

FY 2013 is 11% higher than FY 2012 Adopted Budget

17

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Budget

2012Estimate

2013Projected

$0

$50

$100

$150

$200

$250

$300

$137 $147$160

$167$180

$202

$230$245 $244 $240 $239 $239 $243

Property Tax – 10 Year History($ in Millions)

City Current Tax Rate 56.569 cents / $100 taxable valuation

City Tax Rate decreased

Actuals

Average annual increase for prior 10 years = 6.9%

FY 2013 is 1.4% higher than FY 2012 Adopted Budget

18

Property Tax Valuation

Percent Change in Property Taxable Valuation

F Y 2010Budget

F Y 2011Budget

F Y 2012Budget

FY 2013Proposed

Budget

Existing Value -1.87% -3.78% -1.69% -0.43%

New Value 2.70% 1.68% 1.15% 1.26%

Taxable Value 0.83% -2.10% -0.54% 0.84%

19

Historical Growth in Property Values

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

10%

5% 7%4% 7%

14%16%

10%1%

-2%

-0.54%

1%

20

Property Tax Bill

• School Districts Taxing Units represent close to half of annual tax bill• City represents less than 25% of annual tax bill

K-12 Public School District

46%

Bexar County & Hospital System

23%

City of San Antonio

23%

Other*8%

* Note: Includes Community College District (6%) and River Authority (2%)

21

Property Tax Relief• City continues commitment to provide Tax

Relief to Seniors and Disabled Property Owners

• FY 2013 Budget foregoes $30.1 Million in property tax revenue from Senior and Disabled Homestead Exemptions and Frozen City Tax Payments– Over 79,000 Senior and nearly

10,000 Disabled HomesteadExemptions

• Approximately 27,000 Seniorand disabled homeowners payzero City Property Taxes

22

$-

$50

$100

$150

$200

$250

$300

$350

$165

$204 $190

$213

$246 $249

$294

$265

$284 $298 $290 $293 $286

CPS Revenues($ in Millions)

Average annual increase for prior 10 years = 5.3%

FY 2013 is 1.4% lower than FY 2012 Adopted Budget

23

CPS Revenue – Volatility

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

0%1%

1%

11%

1%-4%

12%

2%7%

-1%

15%

9%

-9%

24%

-7%

13%11%

0%

20%

-10%

7% 6%

-8%

CPS Payment to City% Change from Prior Year’s Actual Payment

24

Budgeted Financial Reserves• Reserves maintained at 9% ($88 Million in FY

2013)• Critical to prudent financial management• Increase City’s credit worthiness resulting in

higher credit ratings• Measure of last resort to

provide budgetarystability for unexpectedevents– Natural disasters– Catastrophic change in

City’s financial position

City of San Antonio

General Fund Improvements

26

FY 2013 Budget StrategyPreparing for the Road Ahead

27

Public Safety – Police• Civilianizes 5 Police Officers from

Communications and Enhances Gang Unit - $380,000 – Allows further investigation of gang related activity – 5 civilian positions added to backfill duties of

police officers• Resources added to

augment NarcoticsUnit - $150,000– 5 Police Officers will be

promoted to Detectivesand assigned to Narcotics

28

Public Safety – Police Positions

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

1,500

1,700

1,900

2,100

2,300

2,500

2,054 2,053 2,054 2,054 2,0692,122

2,2022,302

2,352 2,374 2,375 2,375

• 306 police officers added and 85 positions civilianized over the past 7 years for a total of 391

29

Public Safety – Fire• $260,000 added to create a Technical

Services Division– 1 uniform and 1 Civilian positions added to

expedite emergency response of specialized vehicles

• $50,000 to enhance diversity program– Marketing and training to promote

department’s goal of attracting firefighters that reflect our City’sdiverse community

30

Public Safety – Firefighter Positions

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

1,200

1,300

1,400

1,500

1,600

1,700

1,449 1,443 1,442 1,442

1,4931,529

1,564

1,6241,653 1,657 1,658 1,659

• 166 firefighters/paramedics added over past 7 years

31

Streets and Sidewalks• $4.5 Million in additional funding from

ATD funds is allocated for Streets and Sidewalks

• $8 Million from bond fund balances isincluded in Budget for infrastructureimprovements– $800,000 per

City Council District

32

Streets and Sidewalks• Traffic Signal System Modernization

substantially completed in FY 2012– System allows traffic to move efficiently through

existing roadways through traffic signal synchronization

– Benefits include:• Maximized flow of traffic• Reduced traffic delay• Reduced fuel consumption

and emissions• Fewer accidents

– Program saves an averageof 2.2 Million in vehicle delay hours annually*

*Formula Based on Urban Mobility Report

33

Neighborhoods – Animal Care• $1.1 Million added to continue and

enhance successful FY 2012 initiatives – Education Awareness– High Volume Pet Placement

Partner Program– Pet Licensing Awareness– 4 additional Veterinarian

Technicians and 3 additionalLive Release Positions

• Live release goal anticipatedto increase from 58% to 70%in FY 2013

34

Neighborhood Code Enforcement

• Adds $500,000 for 7 positions to enhance proactive code enforcement

• Improves supervisionfor better accountability and performance of Code Enforcement Officers

35

Neighborhood Revitalization• $150,000 allocated for Fitness in the Park

Program expansion and to continue Saturday hours at Open Play Centers

• $250,000 reserved for fitness initiatives

36

Economic Development• $4 Million maintained for Economic

Development City-wide– Over 5,400 jobs added in FY 2012

• $3 Million maintained to stimulate downtown commercial, retail and housing development

37

Library• Budget adds $250,000 for library books

and materials• $1.5 Million included in capital and

operating budget for maintenanceimprovements atseveral branch libraries

• $180,000 for replacement of furnitureat several branchlibraries

38

FY 2013 Budget Alignment with SA 2020

• Operating Budget includes funding and programs that support the goals of SA2020

• 2012 Bond Program includes projects totaling $500 Million that align with SA 2020 Goals

City of San Antonio

General Fund Efficiencies

40

Efficient Operations• $8 Million in Budgeted Reductions

– Improved Service Delivery Models– Better Utilization of City Facilities– Operational Efficiencies– Reduction of Administrative Overhead

41

Administrative Overhead• Eliminates non-critical cell phones

$500,000• Eliminate 3 Positions in City Manager’s

Office - $340,000– 1 Assistant City Manager– 2 vacant positions in the

Council Action Team

42

Operational Efficiencies• $580,000 in Park Services Operational

Efficiencies– Right sizes staffing levels as a result of

department restructuring• $165,000 Provided for Athletic Program

by partnering with outside management– Transferred

management ofAdult softball programto contract agencyresulting in savings

43

Process ImprovementCivilian Recruitment Process

• Current recruitment process takes up to 105 steps and 175 business days per hire

• Process reviewed and improvements identified to reduce steps and business days for hiring to between 18 to 46 days

• Improvements possible with existing technology and will be implemented in October

44

Process ImprovementFacility Analysis

• Phase I completed FY 2012– Sale of surplus properties– Vacate and transfer

facilities– Improve office space use

at existing administrativefacilities

• Phase II – FY 2013– Strategic use of facilities to improve service– Opportunities for further consolidations

45

Process ImprovementsFacility Analysis

• Implements new Community Link Service Center structure saving $795,000 – Transfers services from underutilized leased

facilities to Libraries

46

ReorganizationsDowntown Operations

• Department to focus on core downtown functions of Riverwalk operations, parking operations, and special events

• Other departmentswith experience and resources to absorb functions such as park maintenance, facility programming, and sanitation

47

Reorganizations Planning & Community Development

• Centralizes and Enhances Planning Functions based on Best Practices and focusing on:– Strategic Comprehensive Planning– Transportation Planning– Urban Design– Housing & Community Development – Administration of Federal Grants focusing on

strategic investments of funds

48

FY 2013 Delegate Agencies• Recommended funding allocation based

on proposal scoring, alignment with SA 2020, and agency past performance

• FY 2013 Proposed Budget maintains current funding for After School Challenge Program and Haven for Hope

49

FY 2013 Delegate Agencies• $23.1 Million included in Budget• Funding recommendations guided by City

Council Ballot priorities

Delegate Agency City Council Ballot Results

SA 2020 Vision Area FY 2012Allocation

FY 2013Priority

DistributionVariance

Education 27% 32% +3

Family Well-Being 50% 51% +1

Community Safety Net 12% 10% 0

Economic Competitiveness 11% 7% - 4

TOTAL 100% 100% 0

City of San Antonio

Employee Compensation & Benefits

51

Employee Compensation Principles

• Historically City of San Antonio wages below market rate and benefit package exceeded industry trends

• In last 6 years, wages increased to be consistent with market competitive rates– Benefits adjusted to increase

employees’ share in cost and align with industry trends

52

Employee Compensation Summary

• $9.9 Million for Civilian increases – All Funds– Final phase of Step Pay Plan Implementation– 2% allocation for Cost of Living Adjustment– Living Wage to increase

from $10.75 to $11.08– 2% COLA for Retirees

53

Employee Compensation Summary

• $15 Million for Police and Fire Collective Bargaining Contract Increases

F Y 2013 F Y 2014

Police 3% 3%

Fire 3.4% 3.4%

54

Civilian Step Pay Plan• FY 2013 implements 6th and final phase of

Civilian Step Pay Plan• 2,421 employees with average salary increase

of 5.2%

55

Employee Healthcare• Budget addresses employee health care needs and

manages cost• Promotes wellness by enhancing rewards programs• Introduces a Consumer Driven Health Care Plan

(CDHP) as fourth choice– Four Plans available: CDHP, Value, Standard and

Premier) • Increases Employee Contributions to Health Care

Cost– No premium increases to the Value Plan– Aligns prescriptions, deductibles, and office co-pay

maximums with industry standards– Introduces a tobacco user surcharge as discussed in FY

2012 budget

Employee Wellness

56

Create Corporate Culture of Wellness• Helping employees meet their optimum health goals• Incentivizing increased engagement in healthy lifestyle choices • Focusing on increased claims costs through preventative measures

Continued Employee Wellness Program Initiatives

• 100% coverage for preventive care • Employee Health Stations• Healthy Vending Machine options• Weight Watchers at Work• City Employee Health & Wellness Clinic• City Manager’s 5K• Onsite Wellness Coaching

New Initiatives• Outcome Based Rewards Program• Virgin HealthMiles Pedometer Program

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 20120%

10%

20%

30%

40%

50%

60%52%

30%

• Uniform legacy costs have increased 52% since FY 2006

• General Fund appropriations have increased 30% over the same period

57

Uniform Legacy Costs

General Fund

Cumulative Growth in Uniform & Civilian Legacy Expenditures,FY 2007 to FY 2012

Actual Budget

Legacy Costs

57

City of San Antonio

Solid Waste

59

Solid Waste Fund• Solid Waste Enterprise Fund Budget: $91.7

Million• City guided by 10 Year Recycling Plan

– Adopted by City Council in June 2010– Establishes recycling goal of 60% of residential waste by

2020; rate currently at 27%

• FY 2013 Budget expands recycling opportunities and continues focus on customer convenience– Organics Recycling Program– Neighborhood Drop Off

Collection Centers

• No rate increased proposed in FY 2013

60

Organics Recovery Program

18% FY 2010

+ 8% Brush and Bulky Redesign(2011-12)

+ 2%

Education and Outreach(2010-20)

+ 15-17%

Organics Recycling (2011-14)

+ 15-17%

Utility

Based Pricing (PAYT)(2014-20)

Organics Recycling is a critical component of the 60% recycling goal

Organic materials comprise 1/3 of all residential waste

FY 2012 Recycling Rate: 27%

FY 2006 Recycling Rate: 6.6%

61

Organics Recovery Program• Pilot program for 30,000 homes in FY 2012

– Positive results yielded; data collection ongoing through Summer months

– Final pilot results to be presented to City Council during Proposed Budget Worksessions

• Based on positive pilot results, implementation of three-year City-wide expansion ofOrganic Recycling Program isrecommended

City of San Antonio

Hotel Occupancy Tax

63

HOT Tax Revenue History($ in Millions)

$35,006,434 $34,714,959 $36,044,018 $40,094,265

$45,568,598 $49,710,736

$53,210,962

$45,733,252 $46,460,193 $48,974,388 $48,996,167

$51,880,000 $55,035,000

Actuals

• FY 2013 Budget estimated to exceed FY 2008 Collections

64

Hotel Occupancy Tax Fund

Convention Facilities¹

35%

Convention & Visitors Bureau

35%

Arts Funding15%

History & Preserva-

tion15%

¹Includes funding for International Relations and Hosting Obligations

City’s HOT Tax Distribution16.75% Total Rate

65

Hotel Occupancy Tax Fund• Tourism and Conventions

• Estimated FY 2012 room nights sold to exceed $9 Million, 7% higher than FY 2011

– Launched “Remember the…” Campaign– Top Chef Texas Aired on

Bravo– People en Español Being

Hosted at Alamodome inSeptember

• Arts and CulturalProgramming– FY 2013 2nd year of 2-year

funding cycle– Funding to arts agencies

remain at 2012 levels

City of San Antonio

Aviation

67

Aviation• FY 2013 Aviation Fund Budget totals $88

Million• Signed New Airline Lease in November 2011• 1,480 more international flights in

FY 2012 than in FY 2011 or 176% increase• Terminal A renovations currently underway

with constructionscheduled to beginOctober 2012

• Consolidated Rental CarFacility – Design to begin in FY 2013

68

Aviation

Actuals

1.5%

• FY 2013 Projected Enplanements estimated at 4.2 Million or 1.5% higher than FY 2012

1.6% 1.5%

2004 2005 2006 2007 2008 2009 2010 2011 2012Estimate

2013Projected

2,000,000

3,000,000

4,000,000

5,000,000

Enplanement History and Projection# of passengers departing San Antonio

(in thousands)

City of San Antonio

Development Services

70

Development Services Fund• FY 2013 Development Services Fund

Budget totals $27.3 Million• FY 2013 Total Permits

expected to increaseslightly over FY 2012levels as development activity begins to improve

• Budget adds 4 new positions to maintain permit review cycle time for complex commercial permits

71

Permitting

• New Residential Permits have declined 75% since FY 2005• New and Existing Commercial Permits have increased by 3% since

FY 2005

New Permit History

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Estimate

FY 2013 Projection

-

2,000

4,000

6,000

8,000

10,000

3,086 3,199 3,263

1,642 1,940 1,979

Commercial Residential

City of San Antonio

Storm WaterOperations

73

Storm Water Operations• FY 2013 Storm Water Operations Budget

totals $46 Million• Storm Water Fund is supported by the

Storm Water Fee and provides:– River Maintenance– Vegetation Control– Tunnel Operations– Floodplain Management

74

Storm Water Operations• Recommend $0.50 adjustment to monthly

residential storm water fee– From $4.25 to $4.75

• Rate not adjusted since FY 2008• Adjustment projected to generate additional

$4.5 Million in revenue and allow for:– Additional mowing of drainage

channels and medians– More street cleaning– Improved heavy equipment

service facilities

City of San Antonio

Capital Budget

76

Capital Improvements

• FY 2013 Capital Program $636 Million– 2012-2017 Bond

ProgramYear 1: $72.2 Million

– Airport ImprovementsYear 1: $69 Million

– Convention Center ExpansionYear 1: $45 Million

77

Capital Improvements• Proposed Budget Includes $18 Million

from pre-2007 Bond Balances– $8 Million for Infrastructure Improvements

($800,000 per Council District)– $8 Million for Education

Excellence Facilities – $2 Million for

Fire Station 32

City of San Antonio

Budget Communication

79

Budget Communication• Highlights Brochure

– Printed in English and Spanish• Employee Highlights Pamphlets• Newspaper Inserts for Residents

– San Antonio Express News– La Prensa

• Budget Video • Budget Document• Individual Council District Hearings

80

Five Community Budget Hearings& Two City-Wide Public Hearings

Date Area

Monday, August 20 North

Tuesday, August 21 Central

Wednesday, August 22 West

Thursday, August 23 Southeast and Northwest

All Citywide meetings to begin at 6:00 PM in City Council Chambers

Wednesday, August 29 Citywide

Wednesday, September 5 Citywide

All area meetings to begin at 6:30 PM

81

Eight City Council Budget Worksessions

Date Date

Tuesday, August 14 Wednesday, August 29

Wednesday, August 15 Thursday, August 30

Tuesday, August 21 Wednesday, September 5

Wednesday, August 22 Wednesday, September 12

• Meetings held during City Council Budget Worksessions to allow for presentation and discussion of budget proposals– Meetings in Municipal Plaza “B” Room at 2:00

PM

82

Budget Adoption• 2 Budget Public Hearings at City Council

Chambers at 6:00PM– Wednesday, August 29– Wednesday, September 5

• Budget Adoption– Thursday, September 13– City Council Chambers

83

Budget Summary• FY 2013 Budget is balanced• No City Property Tax Rate

Increase• Focuses on Community and

Council Priorities– Provides more Streets and

Sidewalks– Enhances Code Enforcement– Increases Animal Care Services– Targets Neighborhood

Revitalization– Adds Police Officers through

Civilianization– Budget Spending aligned with

SA2020 Goals

City of San Antonio

City of San Antonio, Texas

FY 2013 Proposed Annual Operating and Capital Budget

Presented by City Manager Sheryl Sculley

August 9, 2012