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FY 2013 Budget Process Update
The document summarizes the FY 13 budget process for a city. It outlines the budget calendar, current economic conditions of moderate growth, and the budget status. The general fund revenues are discussed, including sources like sales tax, property tax, and utility transfers. Budget policies aim to provide a balanced budget and maintain adequate fund balances. Key issues for the FY 13 budget are modest revenue increases, continuing reductions to the electric utility transfer, demands for services, and the need for additional reductions to stay balanced while evaluating impacts to service levels.
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FY 2013 Budget Process Update
- 1. FY 13 BudgetProcess Update May 14, 2012
- 2. Budget Objectives Prepare abalanced budget that: – Meets strategic priorities, – meets basic service levels Within available resources Position the City to meet future needs with limited resources.
- 3. Outline Budget Calendar Current Conditions BudgetStatus Budget Policies FY 13 Budget Issues Next Steps
- 4. Budget Calendar May 13– Council Budget Process Presentation June – Council Strategic Planning June/July - Staff prepare budget Late July/Early August - Present proposed budget
- 5. 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.
- 6. Current Conditions Moderate economicgrowth Moderate growth in sales tax Property value growth projected to be minimal
- 7.
- 8. Key General FundRevenues Sales Tax 37.5% Property Tax 25.1% Utility Transfer 18.5% All other revenues 18.9%
- 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. Property Values 2011 CertifiedValues $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
- 11. Sales Tax FY 12to date – 5.53% above estimate – Positive growth seen the last year FY 13 Forecast – 2% projected
- 12. Budget Reductions Reduced $7.1million 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.
- 13. 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
- 14.
- 15. Budget Policies Provide parametersfor budget preparation Revenue Policies – Tax Rate Prepare Budget using existing tax rate
- 16. Budget Policies – UtilityTransfer 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. Budget Policies Capital Maintenanceand Replacement Fund Balance Policies – General Fund 15% – Utility Funds 15%
- 18. FY 13 BudgetIssues
- 19. FY 13 BudgetIssues Modest revenue increases Continue electric transfer reduction Demand for services continues Additional General Fund reductions needed to stay balanced
- 20. FY 13 BudgetIssues Identifying potential budget reductions Evaluate service level impacts Proposals will be made in the FY 13 budget
- 21. FY 13 BudgetIssues Police Department Police positions and associated equipment Public Works – Street Maintenance Street maintenance and rehabilitation projects Other Service Level Demands
- 22. FY 13 BudgetIssues Pay and Benefits – Largest component of operating budget – Form a Council Committee to review Pay and benefit policies
- 23. FY 13 BudgetIssues Capital Project Operations and Maintenance Utility Rates
- 24. Financial Forecast Impacts GeneralFund – Moderate revenue increases – Reductions in Utility Transfer – Public Safety – Street Maintenance – Additional Service level demands – Additional revenue and/or reductions needed
- 25. Financial Forecast Impacts UtilityFunds – Rate increases forecast – Operations and maintenance – Capital costs – Debt Service costs – Reductions in Utility Transfers
- 26. Next Steps Monitor economicconditions Monitor revenues Identify service priorities Reduce expenditures as necessary Prepare Proposed Budget and identify key budget decisions
Editor's Notes
- #11 Each 1% change in sales tax revenue is approximately $200,000.