fy 2013 budget process update
TRANSCRIPT
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FY 13 Budget Process Update
May 14, 2012
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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.
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OutlineBudget Calendar
Current Conditions
Budget Status
Budget Policies
FY 13 Budget Issues
Next Steps
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Budget Calendar
May 13 – Council Budget Process
Presentation
June – Council Strategic Planning
June/July - Staff prepare budget
Late July/Early August - Present proposed
budget
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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.
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Current Conditions
Moderate economic growth
Moderate growth in sales tax
Property value growth projected to be
minimal
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Current Budget Status
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Key General Fund Revenues
Sales Tax 37.5%
Property Tax 25.1%
Utility Transfer 18.5%
All other revenues 18.9%
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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
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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
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Sales Tax
FY 12 to date
– 5.53% above estimate
– Positive growth seen the last year
FY 13 Forecast
– 2% projected
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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.
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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
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Budget Policies
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Budget Policies
Provide parameters for budget preparation
Revenue Policies
– Tax RatePrepare Budget using existing tax rate
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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
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Budget Policies
Capital Maintenance and Replacement
Fund Balance Policies– General Fund 15%– Utility Funds 15%
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FY 13 Budget Issues
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FY 13 Budget Issues
Modest revenue increases
Continue electric transfer reduction
Demand for services continues
Additional General Fund reductions
needed to stay balanced
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FY 13 Budget Issues
Identifying potential budget reductions
Evaluate service level impacts
Proposals will be made in the FY 13 budget
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FY 13 Budget Issues
Police Department
Police positions and associated equipment
Public Works – Street Maintenance
Street maintenance and rehabilitation
projects
Other Service Level Demands
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FY 13 Budget Issues
Pay and Benefits
– Largest component of operating budget
– Form a Council Committee to review
Pay and benefit policies
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FY 13 Budget Issues
Capital Project Operations and Maintenance
Utility Rates
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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
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Financial Forecast Impacts
Utility Funds
– Rate increases forecast
– Operations and maintenance
– Capital costs
– Debt Service costs
– Reductions in Utility Transfers
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Next Steps
Monitor economic conditions
Monitor revenues
Identify service priorities
Reduce expenditures as necessary
Prepare Proposed Budget and identify key
budget decisions