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Fy 2013 Proposed Budget Presentation

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Fy 2013 Proposed Budget Presentation

  1. 1. FY 2013 Proposed Annual Operating and Capital Budget Presented by City Manager Sheryl SculleyCity of San Antonio August 9, 2012
  2. 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 Goals2
  3. 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 tax values slightly below 20123 Source: Dr. Steven Nivin SABER Institute
  4. 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 – Governance4
  5. 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 Budget5
  6. 6. Community Service Delivery Priorities Police & Fire Streets & Animal Care Sidewalks COMMUNITY PRIORITIES Early Code Childhood & Enforcement Education6
  7. 7. Budget SummaryCity of San Antonio
  8. 8. All Funds Budget Summary $977 Million General Fund Total $665 Million Consolidated Restricted City Budget Funds (All Funds) $2.3 Billion $636 Million Capital Budget8
  9. 9. City Authorized Positions 12,057 11,888 12,032 11,878 11,622 11,531 11,409 11,377 3,551 3,652 3,766 3,926 4,005 4,030 4,033 4,034 8,506 8,236 8,266 7,952 7,617 7,501 7,376 7,343 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Civilian Uniform9
  10. 10. General Fund Budget Year over Year Change Budget Budget Percent FY 2012 FY 2013 Change General Fund Total Expenses ($ in Millions) $948 $977 3%10
  11. 11. GENERAL FUND AVAILABLE RESOURCES DISTRIBUTED OVER MAJOR SPENDING AREAS ($ IN MILLIONS) Other Property Tax Resources Revenues $226 $243 23.1% 24.9% Other Expenditures $243 Police* $373 Parks & Rec $47 CPS Public Works $63 Fire Revenues $251 Sales Tax $286 Revenues 29.3% $222 22.7% * Police Budget includes Parks Police FY 2013 TOTAL PROPOSED BUDGET: $977 Million11
  12. 12. General Fund Other Expenditures FY 2013 Department Proposed Budget ($ 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 $ 243.312
  13. 13. General Fund RevenuesCity of San Antonio
  14. 14. General Fund Revenues $ in Millions Total Proposed General Fund Revenues: $918 Million $300 $290 $286 $250 $243 $239 $222 $200 $199 $150 1.5% $167 $168 11% -1.4% $100 0.6% $50 $0 Property Tax Sales Tax CPS Other14 FY 2012 Adopted Budget FY 2013 Proposed
  15. 15. General Fund Other Revenues $ in Millions FY 2013 Revenues 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 10.9 HOT Tax reimbursement for History and 7.9 Preservation activities Outside Agencies including County Reimbursement 7.7 for City Services Licenses and Permits 7.2 Sale of Property, Interest Earnings, Recovery of 43.3 Expenditures, Other Total Other Revenues $168.015
  16. 16. Sales Tax – 10 Year History ($ in Millions) $250 $222 $200 $215 $200 $199 $196 $190 $187 $189 $178 $150 $163 $139 $149 $140 $100 FY 2013 is 11% higher Average annual increase for prior 10 years = 4% than FY 2012 Adopted Budget $50 $- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013 Budget Estimate Projection Actuals16
  17. 17. Property Tax – 10 Year History ($ in Millions) $300 $250 $245 $244 $240 $239 $239 $243 $230 $200 $202 $180 $150 $167 $160 $137 $147 $100 Average annual increase FY 2013 is 1.4% higher $50 for prior 10 years = 6.9% than FY 2012 Adopted Budget $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013 Budget Estimate Projected Actuals City Tax Rate decreased City Current Tax Rate 56.569 cents / $100 taxable valuation17
  18. 18. Property Tax Valuation Percent Change in Property Taxable Valuation FY 2013 F Y 2010 F Y 2011 F Y 2012 Proposed Budget Budget Budget 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%18
  19. 19. Historical Growth in Property Values 16% 14% 10% 10% 7% 7% 5% 4% 0.83% 0.84% -0.54% -2% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201319
  20. 20. Property Tax Bill K-12 Bexar County & City of Other* Public School District Hospital System San Antonio 8% 46% 23% 23% * Note: Includes Community College District (6%) and River Authority (2%) • School Districts Taxing Units represent close to half of annual tax bill20 • City represents less than 25% of annual tax bill
  21. 21. Property Tax Relief • City continues commitment to provide Tax Relief to Seniors and Disabled Property Owners • FY 2013 Budget foregoes $30.1 Million in property tax revenue from Senior and Disabled Homestead Exemptions and Frozen City Tax Payments – Over 79,000 Senior and nearly 10,000 Disabled Homestead Exemptions • Approximately 27,000 Senior and disabled homeowners pay zero City Property Taxes21
  22. 22. CPS Revenues ($ in Millions) $350 $300 $294 $298 $290 $293 $284 $286 $250 $265 $246 $249 $200 $213 $204 $190 $150 $165 $100 Average annual increase FY 2013 is 1.4% lower for prior 10 years = 5.3% than FY 2012 Adopted $50 Budget $- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013 Budget Estimate Projection22
  23. 23. CPS Revenue – Volatility 30% CPS Payment to City 25% % Change from Prior Year’s Actual Payment 24% 20% 15% 20% 15% 13% 11% 12% 11% 10% 7% 9% 6% 5% 7% 1% 2% -1% 0% 0% 1% 1% 0% -4% -5% -10% -7% -8% -9% -10% -15% 1990 1999 2008 1991 1992 1993 1994 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011 201223
  24. 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 budgetary stability for unexpected events – Natural disasters – Catastrophic change in City’s financial position24
  25. 25. General Fund ImprovementsCity of San Antonio
  26. 26. FY 2013 Budget Strategy Preparing for the Road Ahead26
  27. 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 Narcotics Unit - $150,000 – 5 Police Officers will be promoted to Detectives and assigned to Narcotics27
  28. 28. Public Safety – Police Positions 2,500 2,352 2,374 2,375 2,375 2,302 2,300 2,202 2,122 2,069 2,100 2,054 2,053 2,054 2,054 1,900 1,700 1,500 FY FY FY FY FY FY FY FY FY FY FY FY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 • 306 police officers added and 85 positions civilianized over the past 7 years for a total of 39128
  29. 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’s diverse community29
  30. 30. Public Safety – Firefighter Positions 1,700 1,653 1,657 1,658 1,659 1,624 1,600 1,564 1,529 1,493 1,500 1,449 1,443 1,442 1,442 1,400 1,300 1,200 FY FY FY FY FY FY FY FY FY FY FY FY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201330 • 166 firefighters/paramedics added over past 7 years
  31. 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 is included in Budget for infrastructure improvements – $800,000 per City Council District31
  32. 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 average of 2.2 Million in vehicle delay hours annually* *Formula Based on Urban Mobility Report32
  33. 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 additional Live Release Positions • Live release goal anticipated to increase from 58% to 70% in FY 201333
  34. 34. Neighborhood Code Enforcement • Adds $500,000 for 7 positions to enhance proactive code enforcement • Improves supervision for better accountability and performance of Code Enforcement Officers34
  35. 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 initiatives35
  36. 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 development36
  37. 37. Library • Budget adds $250,000 for library books and materials • $1.5 Million included in capital and operating budget for maintenance improvements at several branch libraries • $180,000 for replacement of furniture at several branch libraries37
  38. 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 Goals38
  39. 39. General Fund EfficienciesCity of San Antonio
  40. 40. Efficient Operations • $8 Million in Budgeted Reductions – Improved Service Delivery Models – Better Utilization of City Facilities – Operational Efficiencies – Reduction of Administrative Overhead40
  41. 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 Team41
  42. 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 of Adult softball program to contract agency resulting in savings42
  43. 43. Process Improvement Civilian 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 October43
  44. 44. Process Improvement Facility Analysis • Phase I completed FY 2012 – Sale of surplus properties – Vacate and transfer facilities – Improve office space use at existing administrative facilities • Phase II – FY 2013 – Strategic use of facilities to improve service – Opportunities for further consolidations44
  45. 45. Process Improvements Facility Analysis • Implements new Community Link Service Center structure saving $795,000 – Transfers services from underutilized leased facilities to Libraries45
  46. 46. Reorganizations Downtown Operations • Department to focus on core downtown functions of Riverwalk operations, parking operations, and special events • Other departments with experience and resources to absorb functions such as park maintenance, facility programming,46 and sanitation
  47. 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 funds47
  48. 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 Hope48
  49. 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 FY 2013 FY 2012 SA 2020 Vision Area Priority Variance Allocation Distribution Education 27% 32% +3 Family Well-Being 50% 51% +1 Community Safety Net 12% 10% 0 Economic 11% 7% -4 Competitiveness TOTAL 100% 100% 049
  50. 50. Employee Compensation & BenefitsCity of San Antonio
  51. 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 trends51
  52. 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 Retirees52
  53. 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%53
  54. 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%54
  55. 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 budget55
  56. 56. Employee Wellness 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 Program56
  57. 57. Legacy Costs Cumulative Growth in Uniform & Civilian Legacy Expenditures, FY 2007 to FY 2012 • Uniform 60% 52% legacy costs 50% have increased 52% 40% since FY 2006 30% 30% • General Fund appropriations 20% have increased 30% 10% over the same period 0% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Actual Budget57 57
  58. 58. Solid WasteCity of San Antonio
  59. 59. Solid Waste Fund • Solid Waste Enterprise Fund Budget: $91.7 Million • City guided by 10 Year Recycling Plan – Adopted by City Council in June 2010 – Establishes recycling goal of 60% of residential waste by 2020; rate currently at 27% • FY 2013 Budget expands recycling opportunities and continues focus on customer convenience – Organics Recycling Program – Neighborhood Drop Off Collection Centers • No rate increased proposed in FY 201359
  60. 60. Organics Recovery Program Organics Recycling is a critical component of the 60% recycling goal + 15-17% + 15-17% Utility + 2% Organics Based Recycling Pricing + 8% (2011-14) (PAYT) Education and Outreach (2014-20) Brush and (2010-20) 18% Bulky Redesign Organic materials comprise 1/3 FY 2010 (2011-12) of all residential waste FY 2012 Recycling Rate: 27%60 FY 2006 Recycling Rate: 6.6%
  61. 61. Organics Recovery Program • Pilot program for 30,000 homes in FY 2012 – Positive results yielded; data collection ongoing through Summer months – Final pilot results to be presented to City Council during Proposed Budget Worksessions • Based on positive pilot results, implementation of three-year City-wide expansion of Organic Recycling Program is recommended61
  62. 62. Hotel Occupancy TaxCity of San Antonio
  63. 63. HOT Tax Revenue History ($ in Millions) $53 $55 $52 $50 $49 $49 $46 $46 $46 $40 $35 $35 $36 Actuals • FY 2013 Budget estimated to exceed FY 200863 Collections
  64. 64. Hotel Occupancy Tax Fund City’s HOT Tax Distribution 16.75% Total Rate History & Preservation 15% Convention Facilities¹ Arts Funding 35% 15% Convention & Visitors Bureau 35% ¹Includes funding for International Relations and Hosting Obligations64
  65. 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 in September • Arts and Cultural Programming – FY 2013 2nd year of 2-year funding cycle – Funding to arts agencies remain at 2012 levels65
  66. 66. AviationCity of San Antonio
  67. 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 construction scheduled to begin October 2012 • Consolidated Rental Car Facility – Design to begin in FY 201367
  68. 68. Aviation Enplanement History and Projection # of passengers departing San Antonio (in thousands) 5,000 1.5% 1.6% 1.5% 4,000 3,000 2,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Estimate Projected Actuals • FY 2013 Projected Enplanements estimated at 4.2 Million68 or 1.5% higher than FY 2012
  69. 69. Development ServicesCity of San Antonio
  70. 70. Development Services Fund • FY 2013 Development Services Fund Budget totals $27.3 Million • FY 2013 Total Permits expected to increase slightly over FY 2012 levels as development activity begins to improve • Budget adds 4 new positions to maintain permit review cycle time for complex commercial permits70
  71. 71. Permitting New Permit History 10,000 8,000 6,000 3,086 3,263 3,199 4,000 2,000 1,979 1,642 1,940 - FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Estimate Projection Commercial Residential • New Residential Permits have declined 75% since FY 2005 • New and Existing Commercial Permits have increased by 3% since FY 200571
  72. 72. Storm Water OperationsCity of San Antonio
  73. 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 Management73
  74. 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 facilities74
  75. 75. Capital BudgetCity of San Antonio
  76. 76. Capital Improvements • FY 2013 Capital Program $636 Million – 2012-2017 Bond Program Year 1: $72.2 Million – Airport Improvements Year 1: $69 Million – Convention Center Expansion Year 1: $45 Million76
  77. 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 3277
  78. 78. Budget CommunicationCity of San Antonio
  79. 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 Hearings79
  80. 80. Five Community Budget Hearings & Two City-Wide Public Hearings All area meetings to begin at 6:30 PM 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 Citywide80
  81. 81. Eight City Council Budget Worksessions • 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 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 1281
  82. 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 Chambers82
  83. 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 Goals83
  84. 84. City of San Antonio, Texas FY 2013 Proposed Annual Operating and Capital Budget Presented by City Manager Sheryl SculleyCity of San Antonio August 9, 2012

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