FY 2013 Budget Process Update

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  • Each 1% change in sales tax revenue is approximately $200,000.
  • FY 2013 Budget Process Update

    1. 1. FY 13 Budget Process Update May 14, 2012
    2. 2. Budget ObjectivesPrepare a balanced budget that:– Meets strategic priorities,– meets basic service levelsWithin available resourcesPosition the City to meet future needs withlimited resources.
    3. 3. OutlineBudget CalendarCurrent ConditionsBudget StatusBudget PoliciesFY 13 Budget IssuesNext Steps
    4. 4. Budget CalendarMay 13 – Council Budget ProcessPresentationJune – Council Strategic PlanningJune/July - Staff prepare budgetLate July/Early August - Present proposedbudget
    5. 5. Budget CalendarAugust – September – Budget WorkshopsAugust 23 – Budget Public HearingSeptember 13th - Budget/Tax RateAdoptionOctober 1 – New Fiscal Year beginsBudget must be adopted by Sept 27.
    6. 6. Current ConditionsModerate economic growthModerate growth in sales taxProperty value growth projected to beminimal
    7. 7. Current Budget Status
    8. 8. Key General Fund RevenuesSales Tax 37.5%Property Tax 25.1%Utility Transfer 18.5%All other revenues 18.9%
    9. 9. General Fund Revenues General Fund - Sources Ad Valorem Tax 25.11% Sales Tax 37.50% Mixed Drink & Franchise Return on 4.46%Investment 18.54% Licenses & Permits Miscellaneous 1.79% 0.67% Intergovernmental Investment Fines, Forfeits & Other Charges for Earnings Penalties Services Parks & Recreation 0.44% 0.12% 6.27% 4.94% 0.15%
    10. 10. Property Values2011 Certified Values $5,738,615,0022012 Prel Value Estimate $5,871,213,9472012 New Value $148,685,429Existing values estimated to be fairly flatFinal values will be certified by July 25
    11. 11. Sales TaxFY 12 to date– 5.53% above estimate– Positive growth seen the last yearFY 13 Forecast– 2% projected
    12. 12. Budget ReductionsReduced $7.1 million from FY 09-FY 12Eliminated 44 Full time positions in FY 11and FY 12– Reorganization and reductions eliminated 27 positions in FY 12 budget.
    13. 13. Budget Actions – Current Year FY 12Budget Additions– Fire Station #6 operations and maintenance 18 positions added to budget– Additional $350,000 for Street Overlays
    14. 14. Budget Policies
    15. 15. Budget PoliciesProvide parameters for budget preparationRevenue Policies– Tax Rate Prepare Budget using existing tax rate
    16. 16. Budget Policies– Utility Transfer Policy Electric – 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
    17. 17. Budget PoliciesCapital Maintenance and ReplacementFund Balance Policies– General Fund 15%– Utility Funds 15%
    18. 18. FY 13 Budget Issues
    19. 19. FY 13 Budget IssuesModest revenue increasesContinue electric transfer reductionDemand for services continuesAdditional General Fund reductionsneeded to stay balanced
    20. 20. FY 13 Budget IssuesIdentifying potential budget reductionsEvaluate service level impactsProposals will be made in the FY 13 budget
    21. 21. FY 13 Budget IssuesPolice Department  Police positions and associated equipmentPublic Works – Street Maintenance  Street maintenance and rehabilitation projectsOther Service Level Demands
    22. 22. FY 13 Budget IssuesPay and Benefits– Largest component of operating budget– Form a Council Committee to review Pay and benefit policies
    23. 23. FY 13 Budget IssuesCapital Project Operations andMaintenanceUtility Rates
    24. 24. Financial Forecast ImpactsGeneral Fund– Moderate revenue increases– Reductions in Utility Transfer– Public Safety– Street Maintenance– Additional Service level demands– Additional revenue and/or reductions needed
    25. 25. Financial Forecast ImpactsUtility Funds– Rate increases forecast– Operations and maintenance– Capital costs– Debt Service costs– Reductions in Utility Transfers
    26. 26. Next StepsMonitor economic conditionsMonitor revenuesIdentify service prioritiesReduce expenditures as necessaryPrepare Proposed Budget and identify keybudget decisions

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