FY2013 November Council Retreat Prelim

8/3/2019 FY2013 November Council Retreat Prelim

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FYI3 COUNCIL


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c. Cracks in the Hull- Power Pointi. Efficiencygains- Kevin 9:45 -10:00i i. Infrastructure

A. Streets -10:00 - 10:15B. Utilities -10:15 -10:30C. CouncilDiscussion - 10:30- 11:00

iii. FacilitiesA. Buildings-11:00 -11:15B. Parks -11:15 -11:30C. CouncilDiscussion 11:30- 12:30

iv. Lunch 12:30 -1:00v. Equipment

A. Fleet-1:00- 1:15B. CouncilDiscussion 1:15 -1:30

vi. Personnel - 1:30- 1:45A. CouncilDiscussion 1:45- 2:15

vii. Break- 2:15- 2:30viii. PublicSafety

A. Police- 2:30- 2:45B. Fire - 2:45 - 3:00C. Courts- 3:00 - 3:15D. CouncilDiscussion 3:15 -4:00

ix. Make-UpTime - 4:00- 5:00x. END OFDAYxi. START OF DAYxii. Community Development - 8:15- 8:30

A. CouncilDiscussion 8:30 - 8:45


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XI.

iv. Show the rest of properties in play then go through Staff RecommendationsA. Economic DevelopmentB. HousingC. FacilitiesD. Parks& Open Space

. b. Processi. Send to commissions - get recommendationsii. Identify competing lotsiii. Council take upiv. Incorporate in Regional Plan?

Future Revenue Generation Sales &UseTax 3:00 - 4:00 (i f possible)a. Taxeson Service (need legal research)b. Usetax more specificallyc. Naming Rights for Airportd. Regional RoadTax


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CRACKS IN THE HUllII FY2013 November Retreat

Transition

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IICracks in the Hull

Since Recession Began in Fall 2008o Reduced General Fund Operations by 20%o Reduced Utility(Water & Wastewater) FundOperations by 70/0o Reduced.HURF Fund Operations by 13% (430/0 totalFund)

o Library Fund grew by 80/0o Reduced Overall Personnel by 13%

D Review Exhibit 1

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EXHIBIT 1

FTE Comparisons2008-2009 2011-2012

U FTE FTE %Change Notes - Management CutsCity Manager/Clerk 12.50 10.8 -14% Administrative AssistantCapital 13.50 8 -41% Engineering Supervisor; 4 P.M.'sHR 6.75 6.75 0% Human ResourcesManagerRisk 3.00 2 -33%Customer Service 10.75 10.25 -5% Combined Super into RevManagerLegal 16.25 13.75 -15% Civil AttorneysIT 16.00 13 -19% GIS ManagerManagement Services 12.00 8 -33%SalesTax 8.50 8 -6% Combined Sales.Tax ManagerLibrary 53.77 51.4 -4%Finance 14.14 12 -15%FMPO 2.88 2.88 0%CDAdmin 3.00 2 -33% Admin SpecialistPlanning 32.00 22.5 -30% Inspection Mgr, 2 P.M.'sEngineering 25.50 17 -33% 2 Project Managers; Survey SupervisorCommunity Investment 6.00 5 -17% DirectorDowntown 5.00 5 0%Housing 6.00 5 -17%Fire 101.75 85 -16% Deputy Chief / Battalion ChiefPolice/Grant 181.00 168 -7% Support Service Manager/Records SuperU PWAdmin 4.00 2.5 -38% Deputy DirectorParks 32.46 27.46 . -15% ParksSuperintendentFleet 15.00 13 -13% Fleet SuperintendentFacilities 12.00 11 -8%Recreation 67.23 61.35 -9% Combine two Section HeadsStreets 41.06 36.31 -12%


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II

Cracks in the Hullo Result=lmpocts on the sustainability ofInfrastructure, Facilities, Equipment, Personnel &Services

o FY2011 Transmittal Letter & Graph (Exhibit 2)o No or Limited Revenue Enhancemento Two Strategies

D Efficiency; orD Service levels

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uS x ~ ~ ~ ,-r"

Looking at the categories outlined above.here are some estimates to "maintain what we've got" lain whatwe've got." "Equipment- "Fleet (General Fundw/o fire engines)-$500.000/yr(FY11 Budget = $250.000)Fire Engines - $400.000/yr (FY11 Budget= $0)Solid Waste Equipment- $2 million/yr (FY11 Bodget=$1.8 million)Utilities (vehicles and plants) - $1millionper year (FY11 Budget = $0)IT Capital- $700,OOO/yr (FY11 Budget= $470,000)Infrastructure-Streetpreservation- $4 million/yr (FY11 Budget = $937,000)Water lines ..$2"million/yr (FY11 Budget =$0)Sewer lines - $1 million/yr (FY11 Budget = $0)Water meters - $400.000/yr (FY11 Budget= $0)Futurewater supply for build-out - $200M - $600MParkscapital- $500,OOOlyr (FY11 budget= $250,000)Facilities-General Fund- $500,OOO/yr (FY11 Budget = $200,000)Custodial - $525,OOO/yr (FY11 Budget = $383.000)

ParksMaintenance- $3 million/yr (FY11 Budget =$2.4 million)

$250.000))

uPersonnel-Training andTravel - $1.3 million/yr (FY11 Budget =$647,619)Compensation (average 19% below market) - $6.3 million/yr to catch up h upUniforms- Police$1.200 Iperson/yr - $224,000 (FY11 Budget=$112 .000 ) . 2 . 0 0 0 ) .- Fire $1.000/pers/yr(not including safety gear) - $100,000 (FY11 Budget = $0) ) (FY11 Budget= $Overtime. (primarilyPolice. Fire and Snow removal) - $1.7M/year (FY11 Budget= $1.3M) Y11 Budget= $ 1 . 3 ~

Maintaining What We've 'Got$4.0


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IICracks in the Hullo City has focused on efficiency

D Reduced in places where workload has stayed flat or grown Courts Police Fire Util ities EconomicVitalIty IT Management Services HR Legal City Clerk

D Reduced stoff in places where workload has dropped Community Development

Cracks in the Hull

11/10/2011


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Exhibit 3

Cracks in the Hull

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uWhite Paper

Smarter, Faster, CheaperAn Operations Efficiency Benchmarking Study of I 00 American Cities

IBMGlobalBusiness Services


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BoUot ~ ~ G A GlItard J3~ 1 l j l O I l T X OeIJA


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ForMoreInformationTolearnmoreaboutIBMGlobalBusiness Services, conuctyourIBMsalesrepresentative or visit:ibm.comlgbsAbout the AuthorDavidEdwardsleadsmeSmarterGovernmcnt CampaignforIBM's PublicSectorStrategyand InnCMItion Practice Heserved foreightyeuslISthechiefpolicyadvisor toAtlantllMlyorShirleyFranklin

AcknowledgmentsManycolleagues contributedtothe analysis, findings andrecommcndations inthispaper Iam gnteful for theirapenise and their partnership. They include:BrandonBienvenuChrisCafieroEmilyGarrahanAllan GuyctAhnHowz.cAndrc:aJlIckmanAlisonPineDaniel PrietoTackRichardsonAshIeyWiUs

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FootnotesI CaMldaDofSa.uDdt . - l r__ MaacIlIOI.t:,.....e--.v.-IIWIlIJ 0f5cc

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J Ezduda pcbIc aIuolioa,cllaprise ICI'lcaIlXhU 1nlIradilicIlIIllaiapoau, IlId-..uaara.-rCOlCS-taaclcllr..mcc,capkaI oada",-anClllllfClllStIoallld~ __ ......a........

J 1oo_ ....._ _ iIIcbdaI"""cct...--r.- ...- . . . . I o a I__.l""YdouflO"llloa_oI_..................o I c b o c i & J ~ L ", .Chlap Pu bD_II_ camplc.

, Spmdln, ilxIuoIaIIlocbo-S,,"""""'"'I"'b.,.Wcwwb...-."LulIdI u..oIli_.hanUI\ ,......._ law. nlormaclol\cccbnololl.... 6ru. . . . .

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IICracks in Hullo Will continue to push the envelope on efficiency butl imited options remain.

o That leaves service cutstJ Performance Measures (Inputs, Outputs, Outcomes)tJ Look at ful l menu of servicestJ Re-prioritize and re-allocate

o Fiscal Policy PrioritiestJ Exhibit 4

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CITY OF FLAGSTAFFPRIORITY FISCAL POLICIES2-1-11Represents how the first new dollars will be spent after the Great Recession of 2008 2010. Does not include financial obligations such as debt service, utility rate increases,or state and federal mandates which take immediate priority. Priority expenditures arenot considered accomplished until restored with ongoing dollars rather than one-timedollars.

1. Preservation ofFY2011 Service Levelsa. Transfer 1x expenses to ongoingb. Incorporate loss of grantsc. Address inflationary costs (health care, pension, etc)d. Backfill those services funded with GF fund balance draw-down2. Restore Pay Cut of 1.2%3. Increase Compensation Average to 15%belowmarket (use merit to fix thosebelow 19% and Market Adjustments to move the whole scale)4. Restore Training Budget to 25% ofFY2008 level5. Establish a Reimbursement Policy for Uniforms at no more than 50% of FY2008level6. Restore Benefit cut of $60 for Dependent Subsidy or Deferred Compensation7. Achieve 50% ofEquipment (including Fire Engines), Infrastructure, and FacilitiesFunding & Custodial to 75%.8. Restore General Fund, Fund Balance to 15%9. Restore Overtime to 75% of FY2008 level10. Take measures to reduce increases in energy costs. Goal is less than 1%Increase/yr11. Restore Service Levels, based upon priority, by $250,000 ongoing.


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IICracks in the Hullo Format

a Visible services and goalsa Service levels vs. actualsa Service level policy choicesa Consequences of choices

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InfrastructureStreets-Service Levels

=:J ' ' - - - - - - - - - - - - - - - - - - - - - - - - - - - - to Visible Services & Goal - ALL HURF FUNDEDc Snow Plowing - Plow al l streets within 18 hours of end

of storm i f less than 12 inches; De-icer Programc Street Maintenance - Minimum o e l of 70c Pot Hole Repair - Repaired within "24 hours of reportingC Street Sweeping -

Downtown 5 day /wk Southside 3 days/wk Arterials l/wk Residential 2/mo

InfrastructureStreets - Actual

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11/10/2011

InfrastructureStreets - Choices &Consequences


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InfrastructureUtilities - Service Levels

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o Visible Services & Goal - Util it ies Funded1:1 Water Lines - Replace 2 miles of annually1:1 Sewer Lines - Replace 1 mile of annually1:1 Water Meters - Replace every 10 years1:1 Reclaim Water - Produce A+ from all WWTP1:1 Water Resources - Meet future demand1:1 No Violations - Make O&M and Capital Improvementsto meet al l regulations

InfrastructureUtil it ies - Actuals

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Rate Model ErrorIIo Cost/Flow =Rateo Calculated for water separate from sewero Water is within model toleranceso Sewer was off substantially

1:1 Investigation revealed the flow number used was inerror

1:1 Vendor can produce no documentation of why #changed, only when it changed

1:1 Vendor accepts no liability since we accepted themodel

InfrastructureUtilities - Choices & Consequences

11/10/2011


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11/10/2011

FACILITIESII

FacilitiesBulldlnqs - Service Levels


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FacilitiesBulldlnqs - Actuals .o Service Levels vs. Actuels

D Facilities Condition Index - CY11 Average of 65% Maintenance appropriation dropped from $500,000jyr to$200,000

D Custodial costs of GF buildings - $408,000D Custodial cost per sq.ft. actual -$1.39D Utility costs per Sq.Ft. of office buildings - $5.83

Includes custodial

11/10/2011

FacilitiesBuildings .; Choices & Consequences


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FacilitiesParks - Service Levels

IIo Visible Services & Goals - GF & BBB Funded

D Number of parks & acres per park per 1 ,000 ( '96Goal) Neighborhood - 1.01 acres/1,000 Community - 1.42/1,000 Regional - 2.03/1,000 Specialty - 1.06/1,000

D Maintenance level of parks - Avg. =2D Amenities in Parks - Playgrounds, Ramadas, Ball fieldsD Miles of FUrS - 1 mile /y r

FacilitiesParks - Actuals

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11/10/2011

uFacilitiesParks - Actuals"o Service levels relative to activec Maintenance-

General Fund Parks - Avg = low 4 BBB Parks&Medians = Avg = 3

c No new amenities/facilit ies in last three yearsC Miles of FUTS Trails/yr = Achieved

Multiple funding sources (Bond, BBB, Transportation Tax)

uFacilitiesParks - Choices & Consequences

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EQUIPMENTII

EquipmentFleet - Service Levels

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PERSONNELII

PersonnelService Levels

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PersonnelActuolsIIo Service level vs. Actual

D Quality of Service - 77% Excellent or Good; 21 0,la Fair orPoor(2009 Citizen Survey)

D Compensation & Benefits - Stacking of negatives 190/0 below Market (2008 survey) Pay cut in May 2009 No ' raises since 2008 No market adjustments Decrease in benefits - Family Premiums& Deferred Comp Decrease in take home pay More functions Less appreciation - Anti Government Movement

Personnel

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PersonnelActuelso Service Levels vs. Actuels

D Training - 0-100% of 2008 level; 32Q averageD Uniform - OA> - SOA> of 2008 level; 33% averageD Staffing

13% reduction =.Match IBM Survey OT cut from $1.7M/yr to $1.3M/yr

PersonnelChoices & Consequences

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OTHER SERVICESII

Public SafetyPol-ice - Service Levels

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Public SafetyPolice - Actuals=:]IL....-- - io Serovice Levelsvs. Actuels (CY 10)

1:1 Part 1 Violent Crime - 4.0/1 00 01:1 Property Crime - 46/1,000 and up 10;01:1 Port II Drug Arrests - 10.6/1,0001:1 Domestic Violence - down 3.8%1:1 ReduceTraffic Collision - down 270/0 from CY20071:1 Average Response Times - 4.46 minutes1:1 Customer Service Rating - 81 % (2009 Community

Survey); 87% (Ongoing Customer Survey)

Public SafetyPolice - Choices &Consequences

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"PublicSafetyFire - Service levelso Visible Services & Goals

a A.LS personnel on equipment - 90% of timea Response times, initial response - 5 min 90% of time(includes turnout and travel)

a Response times, full deployment - 9 min 90%a Fire loss- less than 2 tenths of 1 percenta Limit wildfire size - 5 acre avg. treated; 20 acresuntreated

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PublicSafetyFire - Actuals


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Public SafetyFire - Choices & ConsequencesII

o Policy choices and consequences regarding funding thisservice level to be provided at Retreat on Monday

Public SafetyCourts- Service Levels

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Public SafetyCourts - Actuals011......- -1o Service Levels vs. Actual

a Right to a speedy trial Case Processing Measurement - Currently 760/0 disposed in90 days Backlog Measurement - "Pendlnq Case Ratio" Current Ratio1.071 CY11 (4x standard)

Workload Measurement - Current # of Citations per FTE 2,709/FTE CYl i

a DV Recidivism - 5.2% CY11a Recidivism of Drug Offenders - 4.6% CY11

Public SafetyCourts - Choices & Conseauences


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II

Community DevelopmentService Levels

1:1 Timely completion of Planning Studies - 90%1:1 30 day review of Development Apps - 90%1:1 "No Surprises" after ORB - 01:1 Capital Projects on schedule and budget ->90%1:1 Traffic Studies and work orders - 80/yr total1:1 No Infrastructure retests/warranty work - >95%1:1 Applicant satisfaction with Planning - 90%1:1 New Affordable Housing Units - 10%/yr

Community DevelopmentActuels

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IICommunity DevelopmentChoices & Consequences

o Policy choices and consequences regarding funding thisservice level to be provided at Retreat on Monday

Community EnrichmentService Levels


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"Community EnrichmentActuelso Service Levels vs, Actuels

r:J Provide Recreation Programs - Achievedr:J Provide Recreation Facilities - Achievedr:J Customer Satisfaction - Achieved - 90%r:J Cost Recovery - Direct Expenses

. 9 0% adult programs 85% Youth Programs [1000/0 equals 50% cost recovery] 64.5% Aquaplex

r:J Library Satisfaction 97%

Community EnrichmentChoices & Consequences

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Service Expansiont = J 1 ~ -----------------f

o Rio de Flago COPS Granto Snowplayo Property Maintenance Ordinance

Re-Allocation

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IIRe-Allocationo Ideas considered but not recommended

1:1 Eliminate one Deputy City ManagerD Consolidate Police & Fire into Public Safety DivisionD Reduce Contributions to a g e ~ c i e s 5 0 o ~ if >$25,000D Distribute BBB Arts & Science Funds w/ City Staff

Re-Allocation

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DISCUSSIONIWhat's in the range of possibility?

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Economic Outlookt - - - -- - -4Q r- - - - - -- - l

NOVEMBER 1 4 , 2 0 1 1

Sources1 - - - - - - - - - - - - 1 ~ ( ) . . . . . - - - - - - - - - - ~


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Discussion PointsI - - - - - - - - - - - - - I o ~ - - - - - - - - - - ;

Global Economy

11/9/2011

National Economy State Economy Regional Economy

Global Economy

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uNational Economy

I - - - - - - - - - - ~ O \ I - - - - - - - - - - ~ No geographicmobility. Consumer spending/consumer confidenceweak.

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Political uncertainty. Modest growth (1-2%). Double dip recession not likely.

~ - . ,

State Economy~ - - - - - - - - - - - - l a r - - - - - - - - - - - - - - l

11/9/2011


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State Economy. . - - - - - - -10 \ . . - - - - - - - -1

Political uncertainty. Modest growth (3-5%) until 2015. No double dip recession.

Regional Economy

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Regional Economy~ - - - - - - - - - - l a \ / - -----------1 Construction rebound will mirror the state. NAUStudent increaseo 2007: 14,000o 2011: 17,700

Tourism sales tax numbers are up.o Hotel/Motel-& Restaurants Holiday shopping to remain flat. No double dip recession.

Conclusion...---....1--------------1(0)1-------------1


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uCOUNCIL RETREAT

II Revenue EstimatesNovember 14, 201 1

Revenue Review Agenda


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Change in Taxable Business Activityo Utilities Yr over Yr

15% , . . - - - - - - - - - - - - - - - - - - - - - - - - - - - -10%+----------------------* '"-----

5 % - I - - - - - - - - - - - - - - - - - - . j ~ - - - - ~ . . . . . . : . . - - \ - - - - -

-5% - I - 4 - - - - - - - - - - - - . . : - - - - I - - - - ~ - - - - ~ - - - --10% - I - - - - \ - I f - - - - 4 ~ - - - .....I , - ~ - + _ 4 ~ - - - - - - - - - - - - --15% + - - - - + - . J I - ~ C - - . : . . . . . - - - - - - ........---------------20% ~ - - - - - - - - - - - - - - - - - - - - - - - - - - -

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ A~ ~ ~ ~ ~ $ ~ ~ ~ ~ $ $ ~ ~ ~ ~ ~ ~ ~....Year overYear

Change in Toxoble Business Activityo Utilities YTO over 2 Yr


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uHistorical US Business Cycles

....% Growth inGDP10.00% ~ - - - - - - - - . . . : . . : . . . - = . : . ~ . . . : : : : . . . : . = . . ~ ~ - - - - - - - -

-5.00% = 00 r4 IoC = 00 r4 IoC = 00IoC IoC IoC e- e-- ee 00 CIO C7\ C7\ = = =~ C7\ ~ = = =- r4 r4 r4Year http://wwwbea.govu

City Sales Tax RevenueTotal 1% Collections


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nCity Sales Tax RevenueConstruction Contractin

53,000,000 ~ - - - - - - - - - - - - - . . . . - - - - - - - - - - -$2.6

52,500,000 + - - - - ~ . : . . . . . . . . . . : ~ ' - - - - - - - - - - - - - - - - -

52,000,000 + - - - - ? - - - - - - ~ . - - - - - - - - - - - - - - - - - : - - - -$1.5

SI,500,000 t - - - - - - - - - - ~ , c . . . . . - - - - = ~ ~ ~ ; : = : = 4 ; = ~ O = ; ~ ; - - -

SI ,OOO,OOO + - - - - - r - - - - ~ - . , . - - - . , . - - - . . _ _ _ - r _ _ _ _ _ _ , r _ _ _ _ _ _ , r _ _ _ _ _ , - _ _ _ , - _ _ _ _ r - _ _ _ ,FY05 FY06 FYO' FY08 FY09 FYIO FYlI FY12 FY13 FY14 FY15 FY16(Est). (Est). (Est). (Est). (Est).

-+-Construction Contracting

City Sales Tax RevenueBBB Collections


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Franchise Fee Revenue

54 ,-------------------------

$3+ - - - - - - - - - - - - - - - - - - - - - - - - -$2.0

$1 - t - - , - - - . - - - - r - - " " " T " " " - - - r - - - - - r - - - . - - - - . . - - - r - - - - . - ~ - _ _ _ _ .FY05 FY06 FY07 FY08 FY09 FYI0 FYll FY12 FYIJ FYl4 FYIS FYl6(Est). (Est). (Est), (Est). (Est).-+-Franchise Fee

State Shared- Sales Tax


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State Shared- Urban RevenueIncome Tax Collections510 ~ - - - - - - - - - - - - - - - - - - - - - -59 ~ - - - - - - ~ ~ ~ - - - - - - - - - - - - -

rI ) 58= 57.5 $6

$S54 + - - - - r - - - ~ - - - - , - - - - , . - - - - r - _ _ _ r _ - _ r _ - _ _ . _ _ - _ r _ - ~ - _ r _ _ ,

FYOS FY06 FY07 FY08 FY09 FYI0 FYll FY12 FY13 FY14 FYlS FY16(Est). (Est). (Est). (Est). (Est)-+-State Shared-Urban Revenue-it-State Shared- Urban Revenue (State Projections)

State Shared- Auto Lieu(Vehicle Registration Fees)


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uHighway User Revenue Fund (HURF)

59 -r--------------------- _

$6.3$6.0S5.8

S8+------JolLLAL--------- _

56 + - - - - - - - - - - = - - - - = = ~ ~ ~ : = : ~ ; ; : : : : ~ : : = -

{IJ

=g:: : $7 -+- - - - - : l ~ - - - - - - - - - - - - - - -:E.555 +--.-- . -- . -- . -- . -- . -- . -- . -- . -- . -- . ------ ,FY05 FY06 FY07 FY08 FY09 FYIO FYll FYl2 FYI3 FYI4 FYI5 FYI6(Est). (Est). (Est). (Est). (Est)

.....HURF Revenues -:J-HURFRevenues (Before State Reductions)

u Transportation Tax RevenueTotal .721% Collections


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nBuilding Revenues

$3,000,000 ...-------------------------

$.67$.11S in$.10 l&

$.65$.45 S5"-'

SI,OOO,OOO . l - - - - - - - - - : : : ! : = = = : ! ~ - - - - - - - - _ _ _ _ : ~

$2,500,000 4 - - - - - - 4 ~ - - - - - - - - - - - - - - - - - - - -$2,000,000 + . . . , . - - - + - - - - - - = = ~ - - - - - - - - - - - - - - - - - -51,500,000 . . J - - - - - - - - - = ~ - - - - - - - - - - - - - - - -

FY05 FY06 FY07 FY08 FY09 FYIO FYll FYI2 FYI3 FYI4 FYIS(Est). (Est). (Est). (Est)......Building Permits --Offsite Permits

Woter/Wostewoter Revenues


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uEnvironmental Services Revenues

ss54 ... ,. ----7

f'J

= 53a i < ) - S 2 r - ~ S2.s " " ' - ~ . l . : : 1~ $4.2 S4.3

____ "".::1

SI + - - - - - - - - - - - - - - - - - - - - - - - - - - , I ,

FYOS FY06 FY07 FY08 FY09 FYI0 FYll FY12 FY13 FY14 FYlS FY16(Est). (Est). (Est). (Est). (Est).SO + - - . _ _ - _ _ r _ - _ r _ - - - r - ~ - _ _ _ , - - . . _ - . _ _ _ - . _ _ - _ _ r _ - _ r _ - _ _ . .

.....Landfill Residential ~ o m m e r c i a l

uAirport Revenues

c c c''11"T"tliWi t " ' . ,,, , , , . ; ' 1 " m m ; i ~ ) i ; i ; l j t 1 1 1 } V l l ~ i i ~ m ~ L t l J ~ y l m j m ~ i l i l l l ~ ~ ~ k ; > ; ' : :,. : .' 1 , : , ; ' : ; : F ' l l : M O t ) E ~ I B t l t l i l l ' ~ s ~ i r ; ; ; ' ~ 1 ; r l ; : ' ,. : ' , : ; ; } : l : , i ; ; j : [ ; j ; i : \ : l ! ~ W m ~ r t f l l l i ~ d ~ l l i ! [ ~ ~ J ~ ; j f i } j l I E l ; ' ; ; ' : . : . ' ",:,,"'u,.rl'r.rl " ' ~ I : l ' J ' i ! t l i ' ; > ' l i l 1 l t " ji l : ; ~ 1H If! ' . l ~ l i l r ; l i ! i i l I " ... \ . , ;:'i'' , ! i f ! ! f J ! ! ! ~ : l M ! ! l ~ i l l l j ~ j ( ; ; : ~ r n : l l ~ ! : '~ i l r ! f J ~ UH!, H ! W ~ t 1 ~ f t t ; ; : ; ! ; . : ! ~ : ; ~ ; ; . f ; , ~ ; , ~ : U ! t ! ~ ! ~ ~ # : ~ ; : f ~ : ~ i l * l h a " " l ~ - . Cr.}i;;U'.Jt t , ~ t h n 1 ~ ~ ~ ~ ~ . h f . ~ ~ ;


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Rev. 09/2011uumatea

CUrrent Flagstaff AdditionalOption Flagstaff Description Model Option Option General Fund Comments1 (Not used) N/A N/A2 Foodfor home consumption Exempt Taxable Exempt $1,500,0003 Jobprinting for publishers Exempt Taxable Exempt >$1,0004 Realproperty rental to nonprofit primaryhealth care facilities Exempt Taxable Exempt $9,000

N/A- TheCityadoptedSA Lodging rental - 2 unitsonly Exempt Taxable 58 Instead. N/A58 58 Lodging rental- 1 unit only Exempt Taxable Taxable N/A

Estimate basedon adding 1%to the base1.721%rate for this category. (2.721% total). Maybe legal

6 6 Transient (hotel "bed") taxas part of PrivilegeTax Imposed Not Imposed Taxable $2,600,000 ramif ications due t o 2 % BBB tax.7 Income from coin-operatedwashing, drying car-wash & dry-cleaning machines Exempt Taxable Exempt $33,0008 (Reserved) N!A9 Factoring of parts andlabor for -flat fee- retail repair service Allowed Not Allowed Allowed N/A10 10 Uvestock, feed, and agricultural chemicals Exempt Taxable Taxable N/A11 11 Franchise& license fees credit against telecommunications tax Allowed Not Allowed Not Allowed N/A12 Motor vehicle transportation for hire (if not subjectto AzDOT"Ton-Mile" tax) Taxable Exempt Taxable N/A13 13 Franchisefeecredit against utility tax Allowed Not A llowed Not A llowed N/A

If chosenover 14B, the Citywould havemoreN!A- TheCityadopted "teeth" to pursue taxpayers that do not comply

14A Criminal penalties -misdemeanor level Class1 Class2 148 Instead. N/A with the taxcode.148 148 -Decriminalize"penalties to petty offenses Misdemeanor Petty Offense Petty Offense N/A

1$100,000estimate is based on1styear ofoperation. Revenueexpected to grow to $400,000

15 15 UseTax Imposed Not Imposed Not Imposed $100,000 in future.

c,,: ';,; " " " LOCAL O P T i O N ~ " ': ; ) ! ' ~ : ! ' : , ;. '


59/59

EstimatedAdditional

GeneralFundCurrentFlagstaff RevenueIfOptionOption Flagstaff Description Model Option Option IsChanged COmmentsA Newagriculturalmachinery Taxable Exempt Taxable N/AB Governmentalentities ascustomers Taxable Exempt Taxable N/AC Moratorium oncertaintaxesfor certainannexedareas Not Imposed Imposed Not Imposed N/AD Activityon Milltary Reservation Taxable Exempt Taxable N/AE E Ucense ssuance conditionalon meeting allother CityCodeprovisions No Yes Yes N/A

6/13 Citiesator largerthanFlagstaffchargeF Durationof license(TPT) Permanent 1Year Permanent $230,000 renewal fee.G Exemptlocaladvertisingfrom taxwhen exemptedby StateIn1/86 Taxable Exempt Taxable N/AH Healthspasmembershipfees Exempt Taxable Exempt $23,000

(NotUsed) N/A N/AJ Golf-greenfees Taxable Exempt Taxable N/AK Constructioncontractlns at fort Huachuca Taxable Exempt Taxable N/A

(NotUsed) N/A N/AM Constructioncontractingcostof landsold Taxable Exempt Taxable N/AN Constructioncontractingfair marketvalueof landsold Taxable Exempt Taxable N/A(NotUsed) N/A N/AP P Wholesalefeed salestax Not Imposed Imposed Imposed N/AQ RentalOccupancyTax Not Imposed Imposed Not Imposed N/AR Single-unit/single-tenantcommercialrental Taxable Exempt Taxable N/A5 5 lodgingrental to non-transients Taxable Exempt Exempt $1,000,000Commonlycalled-ResidentialRentals."T Real estaterentalto certain subsidiarycorporations Taxable Exempt Taxable N/AU (Reserved) N/A N/AV Two-leveltaxstructureon -big-ticketRItems Not Imposed Imposed Not Imposed N/AW Uvestockusedfor breedingandproduction Taxable Exempt Taxable N/AX Worksof "flne art" Taxable Exempt Taxable N/Ay (Reserved) N/A N/AZ College textbooks Taxable Exempt Taxable N/AAA Employee meals Taxable Exempt Taxable N/ABB (Reserved) N/A N/ACC Grossncome from destructivetesting Taxable Exempt Taxable N/A

CableTVisalreadytaxed5%Inthe City'sfranchiseDD DO Cable TVIncome Taxable Exempt Exempt $75,000agreement.EE EE Motor vehicle transport to o ut-of-uty (but in-State)locations Taxable Exempt Exempt >$2,000FF FF Towingasformof transportation for hire (whennot subjectto Az. DOT-ron-MileR Tax) Taxable Exempt Exempt $0GG GG Municipalutil i tyservicetoout-of-Otycustomers Exempt Taxable Taxable N/AHH UseTaxlIabllltyfor charitabledonations Taxable Exempt N/A N/A(NotUsed) N/A N/AJJ UseTaxliability of the City Taxable Exempt N/A N/AKK Events sponsoredbycharitablenon-profit organizationswith attendancein excess of 1( Exempt Taxable Exempt N/A TheCityprobablyhasno eventsthat wouldqualifylL [email protected] gallon Not Imposed Taxable Not Imposed $15,000TheCitymayimposewithout adopting ausetax.MM Jobprinting shippedout of state Taxable Exempt Taxable N/ANN Cable licensefee tax credit offset Taxable Exempt Taxable N/Auu UU MUnlf,;lpal u,mly servrce 10 OUl-o,-,.ny f,;unomc::r:l i E:lItc::mp' li ll iti lDIt: li ll iti lDIl: ...// \HH UseTaxlIabllltyfor charitabledonations Taxable Exempt N/A N/A

(NotUsed) N/A N/AJJ UseTaxliability of the City Taxable Exempt N/A N/AKK Events sponsoredbycharitablenon-profit organizationswith attendancein excess of 1( Exempt Taxable Exempt N/A TheCityprobablyhasno eventsthat wouldqualifylL [email protected] gallon Not Imposed Taxable Not Imposed $15,000TheCitymayimposewithout adopting ausetax.MM Jobprinting shippedout of state Taxable Exempt Taxable N/ANN Cable licensefee tax credit offset Taxable Exempt Taxable N/ATaxable

Documents

FY2013 November Council Retreat Prelim