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Budget Committee Presentation March 19
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Budget Committee Presentation March 19

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  • Madam Mayor, Members of Council, and the Public: Tonight we are presenting the City of Duluth’s FY 2001 Proposed Budget. The key participants are generally the departments and the elected officials. The department heads are responsible for building the technical aspects of the budget. The elected officials, on the other hand, give staff policy direction twice. First, through the annual Strategic Planning Conference, and then later during the working sessions of the budget. The citizens give us feedback all through the year, and more specifically during the Public Hearing. Everyone has the opportunity to participate--the elected officials set policy as representatives of the community; the staff provides practical, technical and professional input for the best administration of that policy. We have proivded the Budget At A Glance reference document for the Public. The Mayor and council have a draft document that the slides I am presenting tonight will reference. It contains the Revenues and Expenditures for FY 2001. The final presentation document will be completed no later than 60 days following approval of the Budget. The presentation document not only will include Revenues and Expenditures, but it also will contain Department goals, objectives, and performance measurements.
  • Transcript

    • 1. Citizens Budget Committee FY2010 Budget City of Duluth
    • 2. Agenda
      • March 19, 2009
      • 7:00 p.m. to 8:00 p.m.
      • Welcome from Mayor and City Administrator
      • Why are we here? (Revenue shortfall-list of primary sources of lost revenue: Action by the State, Police Fines)
      • What can we do? (Recommendations for balancing the budget)
      • Where do revenues come from? (Pie Chart of City Revenue & Pie Chart of City Expenses)
      • Presentation of current budget. What is the City doing?
      • Presentation of projected FY10 Budget. (July 1-June 30)
      • What are our options to balance the projected FY10 Budget?
      • Homework for next meeting: Review details of proposed FY10 Budget for each department. Staff will be present at the next meeting to answer any questions.
    • 3. Budget Creation Overview CITY OF DULUTH BUDGET CREATION OVERVIEW January – At the beginning of the month, the City Clerk and Budget and Accounting Manager will set the “Budget Calendar”, which are the dates when meetings will take place and deadlines for submitting budget materials. Budget and Accounting Manager will also send the Department Directors their budget history and current year’s request Forms. February -Department Directors review budget history and document the current years budget request. They also start preparing their Capital Improvement budget, both rollover and new. March - Meetings with Department Directors and Budget and Accounting Manager to discuss first drafts of department budgets. April - Final department budget drafts are due. Review revenue projections, both first and second drafts. Capital Improvement budget submitted and reviewed for all departments. Departmental, Capital Improvement budgets and revenue projections reviewed by Budget Committee (City Administrator, City Clerk and Police Chief). Capital Improvements projects ranked by Budget Committee, then Mayor and Council. Budget drafts submitted to Mayor, Council and City Attorney. May - Post ad in newspaper for time and date of the two/ three Mayor and Council budget review sessions. Conduct review sessions and implement requested changes. Post ad in newspaper for time and date of the upcoming Public Hearing and Budget Adoption. June - Conduct public hearing on the budget for citizen input. Budget is adopted by Mayor and Council a council meeting.
    • 4. Active Municipality Definition
    • 5. FY 2009 Budget City of Duluth
    • 6. FY 2009 Budget Totals
      • Expenditures
        • Operations $18,065,960
        • Funded by Other Sources 2,993,390
        • Capital Improvements 17,511,391
        • Total Expenditures $38,570,741
      • Revenues
        • Revenues, Grants & SPLOST $34,821,277
        • FY 08 Prior Year Reserves 2,666,589
        • Prior Year Carry Fwd.Reserves 1,082,875
        • Total Revenues $38,570,741
    • 7. Total Expenditures
    • 8. 2009 General Fund Revenues
    • 9. FY 2009 Budget Summary FY 2009 Budgeted General Fund Revenues 16,728,371.00 FY 2009 Budgeted Expenditure Total 18,065,960.00 Prior Year Reserves Budget to Balance FY 2009 Budget -1,337,589.00 General Fund Revenues Needed to Balance Budget 16,728,371.00
    • 10. FY 2009 Revenue Analysis & Projection General Fund Collections thru 1-31-09 10,367,378.14 Anticipated Revenues Collections-All Departments-February thru June 4,200,000.00 Projected General Fund Revenues thru June 30, 2009 14,567,378.14 General Fund Revenues Needed to Balance Budget 16,728,371.00 Projected Revenue Shortfall for Current Year Budget -2,160,992.86
    • 11. Prior Year Revenue Comparison FY 2008 Budget General Fund Revenues 15,554,375.00 General Revenue Collections thru 1-31-08 11,301,633.22 Percent of Budget Collected 0.727 FY 2009 Budget General Fund Revenues 16,728,371.28 General Revenue Collections thru 1-31-09 10,367,378.14 Percent of Budget Collected 0.620 Additional Revenue needed to Equal FY 08 Collections 1,794,147.78
    • 12. Staff Recommendations Revenue Collection Shortfall 2,160,993.00 Expenditure Reductions by Departments -500,000.00 Hiring freeze, non replacement in vacancies saves in benefits etc. -150,000.00 Remaining Shortfall 1,510,993.00 Current Funds Available 12,863,881.73 Less 3 Months Operating Reserves -4,516,490.00 Less Capital Reserve Fund -2,748,789.90 Less Obligated FY 09 Capital Improvements -2,411,875.00 Less Obligated FY 09 Expenditures -1,337,589.00 Available Balance 1,849,137.83
    • 13. FY 2010 Budget City of Duluth
    • 14. Actions Taken to Balance FY10 Budget
      • Budget Cuts in Each Department’s Budget
      • Freeze on Hiring
      • Reduce Overtime
      • No Employee Merit or COLA Increases
      • Increase in User Fees, Permits, Licenses, Park Usage
      • Reduction in Events, Concerts, Movies, Promotions
      • Increase Annexation Efforts
      • Reduction of City Organizational Memberships
      • Reduction in Training and Travel
    • 15. Preliminary General Operating Expenses BUDGET CHANGES BY DEPARTMENT FY09 FY10 PDP PERCENT DEPARTMENT BUDGET BUDGET CHANGE CHANGE Mayor & Council 1,705.27 2,114.88 409.61 24.02% City Administrator 295.52 256.91 -38.61 -13.07% City Clerk/Business Office 1,435.03 1,391.86 -43.17 -3.01% General Government 1,758.36 1,463.34 -295.02 -16.78% Public Information/Marketing 623.81 498.42 -125.39 -20.10% Municipal Court 2,075.51 2,070.21 -5.30 -0.26% Planning & Development 1,186.26 1,053.10 -133.16 -11.23% Parks & Recreation 1,212.47 1,228.52 16.05 1.32% Public Works 1,125.76 1,113.80 -11.96 -1.06% Police 6,658.68 6,171.08 -487.60 -7.32% Total All Departments 18,076.67 17,362.12 -714.55 -3.95% CUTS IN STAFF SALARIES Merit Increase 244,174.23 Cost of Living Increase 102,921.33 FICA Tax Savings 26,552.81 Total Salary Cuts and Tax Savings 373,648.37
    • 16. FY 2009 Budget Summary FY2010 Budgeted General Fund Revenues 15,000,000.00 FY2010 Budgeted Expenditure Total 17,362,120.00 Projected General Fund Revenue Shortfall 2,362,120.00
    • 17. Additional Options to Balance FY10 Budget
      • Increase in Benefit Payments by Employees
      • Increase Property Taxes
      • Employee Furloughs
      • Employee Reduction
      • Cut Services: Police, Parks, Public Works, Planning & Permitting
    • 18. Millage Rate History
    • 19. Property Tax Bills With a Millage Increase Property taxes are calculated based on the assessed value of a home. The assessed value is calculated by multiplying the fair market value of the home by 40%. The property tax bill is calculated by multiplying the assessed value by the millage rate. NOTE: The property tax bill would be further reduced by any exemptions available to the property tax owner and the tax bill its self would be reduced by any tax credit available. 1 MILL INCREASE = APPROXIMATELY $1,000,000 IN ADDITIONAL FUNDS. Fair Market Value Assessment Assessed Millage Property Tax Increase Per of the Home Percentage Value Rate Bill Month CURRENT MILLAGE RATE $ 150,000 40.00% $ 60,000.00 5.191 $ 311.46 $ 250,000 40.00% $ 100,000.00 5.191 $ 519.10 $ 350,000 40.00% $ 140,000.00 5.191 $ 726.74 $ 450,000 40.00% $ 180,000.00 5.191 $ 934.38 ONE MILL INCREASE $ 150,000 40.00% $ 60,000.00 6.191 $ 371.46 $ 5.00 $ 250,000 40.00% $ 100,000.00 6.191 $ 619.10 $ 8.33 $ 350,000 40.00% $ 140,000.00 6.191 $ 866.74 $ 11.66 $ 450,000 40.00% $ 180,000.00 6.191 $ 1,114.38 $ 15.00 TWO MILL INCREASE $ 150,000 40.00% $ 60,000.00 7.191 $ 431.46 $ 10.00 $ 250,000 40.00% $ 100,000.00 7.191 $ 719.10 $ 16.66 $ 350,000 40.00% $ 140,000.00 7.191 $ 1,006.74 $ 23.32 $ 450,000 40.00% $ 180,000.00 7.191 $ 1,294.38 $ 30.00
    • 20. Additional Options to Balance FY10 Budget
      • Increase in Benefit Payments by Employees
      • Increase Property Taxes
      • Employee Furloughs
      • Employee Reduction
      • Cut Services: Police, Parks, Public Works, Planning & Permitting