Transcript Preliminary Property Tax Appraisals for FY04-05

City Manager’s Proposed Budget
FY2010
Presented to the City Council
By
Dale Fisseler, City Manager
Karen L. Montgomery, Assistant City Manager
Horatio Porter, Budget Officer
August 11, 2009
1
Economic Drivers
and
Update of 5 Year Financial Forecast
Karen Montgomery
Assistant City Manager
2
Overview of FY2010
Economic Drivers
June 2008 Unemployment
- National
9.5%
- State
7.5%
- DFW
8.2%
Consumer Confidence In 1985 = 100%
- June 2009, National = 46.6%
- June 2009, State =
73.3%
National Gas Production Tax Collections are down 42% for FY2009
Dow Jones Industrial Average History 2008-2009
3
2008
2009
Overview of FY2010
Proposed Budget
The recession has hit Fort Worth
Revenue Impacts
Expenditure Impacts
-Foreclosure increase
-Continued growth: infrastructure
demands & other services
-Unemployment rate
climbing
-Decline in retail sales
-Decline in construction
-Decline in gas well
drilling
-Decline in interest income
-Rising pension costs
-Rising healthcare costs
(employees & retirees)
-Increasing contractual costs
-Fewer employees; less pay
4
Overview of FY2010
Proposed Budget - Recommendation
•
Overview of CFW budget
–
–
$1.2 billion
Comprised of 20 different operating funds
•
General Fund represents 41% of all expenditures
•
March 2009:
–
–
–
•
5 year financial forecast
GF expenditures outpacing revenues
Budget discussions considered impact on forecast
Forecast updated for Proposed FY2010 Budget
5
Navigating the Fiscal Crisis
Audio Conferences
•
Opportunity in Crisis
–
–
–
–
–
–
Improve the Organization
Resize or Restructure
Develop New Partnerships
Focus on Community Priorities
Proactive, not Reactive
Embrace the Future’s Possibilities
6
Navigating The Fiscal Crisis
Fiscal Monitored Communities
•
•
•
•
•
•
East Providence, RI
Hickory, NC
Jefferson County, CO
Las Vegas, NV
Overland Park, KS
Phoenix, AZ
Polk County, FL
Prince William County, VA
Rancho Cordova, CA
Rockville, MD
San Antonio, TX
Washtenaw County, MI
7
Navigating the Fiscal Crisis
Audio Conferences
•
•
What type of strategies are you deploying now to prepare
your community for the future?
–
“Long Term Planning and Forecasting” Rockville, MD
–
“5 year balanced fiscal plan” Prince William County, VA
–
“Making real changes that will insure our long-term solvency while
protecting core services” and “Telling our elected officials that there
will be no easy decisions and no quick fixes” City of Hickory, NC
City of Fort Worth’s response? All of the above
8
Navigating the Fiscal Crisis
Audio Conferences
•
•
What is your prediction for the duration of the economic
downturn?
–
“Planning horizon is five years with expenditures outpacing revenues
creating shortfalls in each of the next fiscal years ranging from $43-67
million” San Antonio, TX
–
“2007 Tax Base could be lost until 2018 or later; 2012 is the earliest
that property tax revenues would begin to increase Washtenaw
County, MI
–
“Current 5-Year Financial Plan [2010-2014] projects sales tax
stabilization during 2011 and deterioration of property valuation until
2012” Overland Park, KS
City of Fort Worth’s response?
9
Updated
5 Yr Financial Forecast
Baseline Expenditures
$700
$650
$600
$550
$500
$450
FY14
FY13
FY12
FY11
FY10
st FY
09
Re-e
FY08
FY07
FY06
$400
FY05
Millions
Revenues
10
Original
5 Yr Financial Forecast
Baseline Expenditures
$700
$650
$600
$550
Gap = $58M
$500
$450
FY14
FY13
FY12
FY11
FY10
FY09
FY08
FY07
FY06
$400
FY05
Millions
Revenues
11
Proposed Budget
Policy Recommendations
•
Recommend rescinding policy capping mineral values
Impact on FY2009 and FY2010 - $6.7 million
•
Directions Home - $3 million
•
Vacation Buyback for Gen Employees - $3 million
•
Recommend earmarking $5 million for pension
•
•
Recommend additional $5 million for retiree healthcare liability
instead of $10.9 million
•
•
Committee to study alternatives before disbursing funds
Limit coverage to eligible employees through FY2020
Recommend retaining the General Fund 10% reserve policy
•
Short term, one time infusion of funds
12
FY2010 Proposed Budget
Recommendations
• Service Reductions
•Citywide Initiatives
•Organizational Changes and
Consolidations
•Revenue Enhancement
•Proposed Fee Changes
•Employee Impact
Horatio Porter
Budget Officer
13
Overview of FY2010
Proposed Budget
Budget Recommendations
Service Reductions
Citywide Initiatives
A
$16 m
Organizational Changes
C
B
$25 m
Enhance Revenues
$3 m
$15 m
D
$59 million
budget shortfall
14
FY2010 Recommendations
Service Reductions
 The proposed budget necessitated curtailing
spending through departmental and citywide
reductions and vacancy management.
 Budget Impact of Service Reductions - $16M
15
FY2010 Recommended
Service Reductions
 Elimination or Reduction of Operations and
Programs at City facilities, eliminating 66.25 APs:
Service Reductions
AP
$$
Reduce Hours at Animal Shelter/Kennel
3.00
$103,992
Reduce Education Programs at Botanic Garden
3.00
$176,232
Reduce Staffing at Community Centers for After
School Programs
6.00
$188,512
Eliminate 2 Mechanic Positions within the Fire Dept
2.00
$96,924
Service Reductions - Sub Total
14.00
$565,660
16
FY2010 Recommended
Service Reductions (cont.)
Service Reductions
AP
$$
Close Day Labor Center Operations
2.50
$271,462
Eliminate Right of Way Maintenance
0.00
$283,000
Reduce Staffing Dedicated to Monitoring Illegal
Dumping
6.00
$351,012
Close 6 of the 7 Swimming Pools
2.00
$444,961
Realign Code Districts
6.00
$466,320
Service Reductions - Sub Total
16.50 $1,816,755
17
FY2010 Recommended
Service Reductions (cont.)
Service Reductions
AP
$$
Reduce Street and Traffic Operations Maintenance
9.00
$535,605
Eliminate the Late Night Program
10.00
$577,041
Forgo any Additional Alleyway Maintenance
1.00
$622,012
Close 2 Branch Libraries (Meadowbrook and
Wedgwood)
15.75
$813,194
Service Reductions - Sub Total
35.75 $2,547,852
Total Reduction of Operations and Programs
66.25 $4,930,267
18
FY2010 Recommended
Service Reductions (cont.)
 Reduction of Citywide Maintenance, Eliminating 22
APs:
Service Reductions
AP
$$
1.00
$53,964
-
$62,501
Reduce Staffing for Pavement Management
Program
5.00
$85,718
Reduce Staffing for Urban Forestry Program
2.00
$101,280
8.00
$303,463
Reduce Staffing for Bridge Maintenance
Reduce Athletic Fields Maintenance
Service Reductions - Sub Total
19
FY2010 Recommended
Service Reductions (cont.)
Service Reductions
AP
$$
Eliminate Graffiti Abatement in General Fund
2.00
$134,451
Reduce one Forestry Hazard Abatement Crew
4.00
$138,516
Reduce Staffing for Facilities Maintenance
5.00
$295,804
Reduce Mowing Frequency
3.00
$424,060
14.00
$992,831
Service Reductions - Sub Total
Total Citywide Maintenance Reductions
22.00 $1,296,294
20
FY2010 Recommended
Service Reductions (cont.)
Elimination of Special Services:
Service Reductions
AP
$$
Eliminate Employee PAY$ suggestion program
-
$32,400
Reduce frequency of Citizens Survey to biennial
-
$48,000
Reorganize/Reduce Youth and Adult Sports
Program schedule
-
$102,689
Eliminate funding for FY10 Charter Election
-
$604,566
0.00
$787,655
Service Reductions - Sub Total
21
FY2010 Recommended
Service Reductions (cont.)
Elimination of Subsidies:
Service Reductions
AP
$$
Eliminate City Hall Cafeteria subsidy
-
$40,000
Eliminate Cable Office General Fund subsidy
-
$216,135
0.00
$256,135
Service Reductions - Sub Total
22
FY2010 Recommended
Service Reductions (cont.)
Reduction of Contractual Services:
Service Reductions
AP
$$
Reduce Legislative consulting services
-
$68,200
Reduce Outside Attorney Fees
-
$150,000
Eliminate Sunset Review contractual Services
-
$216,960
Reduce Audit Fees
-
$570,000
0.00
$1,005,160
Service Reductions - Sub Total
23
FY2010 Recommended
Service Reductions (cont.)
Transfer Functions to Alternate Funding
Sources:
Service Reductions
AP
$$
Transfer Storm Water Compliance Efforts to
Environmental Protection Fund
1.00
$73,615
Transfer Nature Center operations to Friends of
the FW Nature Center
2.00
$117,068
Transfer Staff to Grant and Special Trust Funds
2.40
$174,813
Transfer Development Review/Project Manager
positions to Capital Projects Service Fund
6.00
$332,427
11.40
$697,923
Service Reductions - Sub Total
24
FY2010 Recommended
Service Reductions (cont.)
Miscellaneous reductions*:
Service Reductions
Various positions throughout the City that provide
administrative support. Also includes salary
savings, supplies, and miscellaneous services.
Service Reductions - Sub Total
AP
$$
45.40 $7,018,651
45.40 $7,018,651
*Detailed descriptions are available in the FY2010 Proposed Decision Package Book.
25
FY2010 Recommended
Service Reduction Recap
SUMMARY
AP
$$
Reduction of Operations and Programs Sub Total
66.25
$4,930,267
Reduction of Citywide Maintenance Sub Total
22.00
$1,296,294
Reduction of Special Services Sub Total
0.00
$787,655
Reduction of Subsidies Sub Total
0.00
$256,135
Reduction of Contractual Services Sub Total
0.00
$1,005,160
Transfer Functions to Alternate Funding Sources Sub
Total
11.40
$697,923
Miscellaneous Service Reductions
45.40
$7,018,651
145.05
$15,992,085
Service Reductions – Grand Total
26
AP REDUCTION
BY SERVICE GROUP
Infrastructure
Services
50.00
34%
Public Safety/Econ
Develop
5.40
4%
Management
Services
12.00
8%
Neighborhood
Services
77.65
54%
27
General Fund only
FY2010 Recommendations
Citywide Initiatives
Recommendation
TOTAL
Fund Balance
$7,500,000
Modify Retiree healthcare benefits ($10.9M vs $5M)
$5,900,000
Eight (8) mandatory furlough days – equivalent to a 3%
salary reduction for general employees
$3,900,000
Eliminate Third Contribution to Housing Fund
$2,000,000
Reduce Medstar subsidy back to FY2008 level
$2,000,000
Reduce Non Civil Service Vehicle Purchases
$1,500,000
Reduction in Discretionary Spending
$1,000,000
Reduce Funding to Non Profit Agencies
Reduce Spending for Non Civil Service Uniforms
Total Citywide Initiatives
$779,000
$220,000
$24,799,000
28
FY2010 Recommendations
Non Profit Funding
Adopted
FY2009
Proposed
FY2010
$ 1,220,484
200,000
100,000
60,000
50,000
$ 1,630,484
$ 1,000,000
200,000
100,000
60,000
Agency Funding
Safe Haven
Women's Center
Alliance for Children
Resource Recovery Council
Tarrant County Recovery Campus
Tarrant County Youth Collaboration
Total Agency Funding
90,000
75,000
63,998
50,000
51,000
15,000
344,998
90,000
75,000
64,000
50,000
51,000
15,000
345,000
Subtotal of Non Profit Funding
$ 1,975,482
$ 1,705,000
$ 7,622,527
$ 7,622,527
Arts Related Funding
Arts Council*
Community Arts Center
Van Cliburn
Artes de la Rosa
Imagination Celebration
Total Arts Related funding
Convention and Visitor's Bureau
* Excludes Public Art Funding
$ 1,360,000
Variance
$ (220,484)
(50,000)
$ (270,484)
2
2
(270,482)
29
FY2010 Recommendations
Non Profit Funding
Adopted
FY2009
Proposed
FY2010
Variance
Other Funding
Musuem of Science and History
Sister Cities
Safe Cities Commission - Police
World Affairs Council
North Texas LEAD - HR
Corporate Champions
ICMA
Tarrant County Veterans Council
Other Funding
572,149
378,420
60,195
33,000
25,000
10,000
5,400
5,000
$ 1,089,164
$ 580,195
(72,149)
(378,420)
(33,000)
(5,000)
(10,000)
(5,400)
(5,000)
(508,969)
Total Non-Profit Funding
$ 3,064,646
$ 2,285,195
$ (779,451)
500,000
60,195
20,000
30
FY2010 Recommendations
Revenue Enhancements
REVENUE ENHANCEMENT
TOTAL
Revenue from change in Policy on Mineral Values
$
6,700,000
Assess a Payment in Lieu of Ad Valorem Taxes on Enterprise Funds
$
4,200,000
Collect Outstanding Court Fines Thru Collection Agency
$
1,500,000
General Fund Fees Increases
$
1,470,000
Increase Collection of Third Party Residential Inspections Revenues
$
1,300,000
Total New Revenue
$ 15,170,000
31
Proposed Fee Changes
General Fund Revenue Increases from Proposed Fee Changes
Department
Increased Revenue
Parking Fees
$470,000
Code Compliance
$463,000
Transportation & Public Works
$243,000
Parks & Community Services
$168,000
Fire Department
$126,000
Total
$1,470,000
Other Funds Increases from Proposed Fee Changes
Fund
Increased Revenue
Storm Water Utility
$5,404,000
Water & Sewer
$1,535,000
Solid Waste
$1,328,000
Office Services
$192,000
Municipal Golf
$88,000
Total
$8,547,000
32
Account Number: XXXXXX-XXXXXX
Total Charges:
$76.13
Current charges due on
05/01/10
After 05/24/10 Amount Due
$79.94
WATER
Current reading
Previous Reading
Water use in CCF
Service Charge
8.0 CCF @ $1.90
2.7 CCF @ $2.66
WATER SUBTOTAL
7.00
15.20
7.18
$29.38
WASTEWATER
Service Charge
6.2 CCF @ @2.64
WASTEWATER SUBTOTAL
5.10
16.37
$21.47
SANITATION
Service Charge
Garbage sales tax
SANITATION SUBTOTAL
18.50
1.53
$20.03
ENVIRONMENT
Environmental Protection Fee
ENVIRONMENT SUBTOTAL
$76.13
368.7
358.0
10.7
STORM WATER UTILITY
Service charge
STORM Water UTILITY SUBTOTAL
.50
$.50
4.75
$4.75
33
WATER
Current reading
Previous Reading
Water use in CCF
368.7
358.0
10.7
Service Charge
8.0 CCF @ $1.90
2.7 CCF @ $2.66
WATER SUBTOTAL
7.00
15.20
7.18
$29.38
WASTEWATER
Service Charge
6.2 CCF @ @2.64
WASTEWATER SUBTOTAL
5.10
16.37
$21.47
SANITATION00
Service Charge
Garbage sales tax
SANITATION SUBTOTAL
18.50
1.53
$20.03
ENVIRONMENT
Environmental Protection Fee
ENVIRONMENT SUBTOTAL
.50
$.50
STORM WATER UTILITY
Service charge
STORM Water UTILITY SUBTOTAL
4.75
$4.75
WATER
FY09
Service Charge
$6.50
FY10
Service Charge
$7.00
Wastewater
FY09 Service Charge
$4.50
FY10 Service Charge
$5.10
Sanitation
FY09 Rate
$17.75
FY10
Rate
$18.50
Environment
FY09 Rate
$0.50
FY10
Rate
$0.50
Storm Water
FY09 Rate
$3.75
FY10
Rate
$4.75
FY09 Total
$73.21
$76.13
$76.13
FY10 Total
Late Fee
inclusio
n
Account Number: XXXXXX-XXXXXX
Total Charges:
$76.13
Current charges due on
05/01/10
After 05/24/10 Amount Due
$79.94
34
FY2010 Recommendations
Employee Impact
• No across the board or step increases for general
or fire employees
• Eliminate tuition reimbursement
• Offer $10,000 incentive to eligible general
employees for retirement by 12/31/2009.
– Currently have 170 individuals that are eligible
– We assume that 25% or 42 individuals will participate
35
FY2010 Recommendations
Employee Impact – Furlough Days
• Furlough – 8 days, 3% reduction in pay, 10% pay reduction
in pay period of furlough day
FY2010 Proposed Furlough Days
Columbus Day
Monday, October 12, 2009
Day Before Thanksgiving Day
Wednesday, November 25, 2009
Christmas Eve
Thursday, December 24, 2009
Presidents' Day
Monday, February 15, 2009
Good Friday
Friday, April 2, 2010
Friday Before Memorial Day
Friday, May 28, 2010
Friday Before Independence Day
Friday, July 2, 2010
Friday Before Labor Day
Friday, September 3, 2010
36
FY2010 Recommendations
Employee Impact – RIF Timeline
• Reduction in Force (RIF) of 188 Citywide APs (114 filled, 74 vacant)
– 134 General Fund APs (85.0 – filled, 49.0 vacant)
– 54 Other Fund APs (29.0 filled, 25.0 vacant)
August 11th
City Manager presents FY2010 Proposed Budget
September 15th
City Council adopts FY2010 Budget
September 16th
Employees receive RIF notification
September 17th
Human Resources meet with RIF employees
September 21st
Human Resources begin referral process
November 6th
RIF Effective date
November 5th 2010
End of preferential rehire status
37
FY2010 Recommendations
Employee Impact
• Vacation Buy Back option for eligible
general employees – 40 hours equivalent
to 2% salary
• Longevity Pay is included for those eligible
employees
• Open a Health Clinic in FY2010
38
Proposed Budget General Fund
FY2010 - Balanced
ADOPTED
FY2008
ADOPTED
FY2009
PROPOSED
FY2010
REVENUES
$324,907,629
$293,055,766
$292,440,666
($615,100)
-0.21%
$99,583,863
$104,536,265
$98,866,422
($5,669,843)
-5.73%
$9,297,234
$9,515,000
$9,077,500
($437,500)
-4.82%
Licenses & Permits
$53,899,857
$44,222,278
$44,022,974
($199,304)
-0.45%
Fines & Forfeitures
$13,727,486
$12,528,370
$13,168,383
$640,013
4.86%
Use of Money & Property
$17,697,559
$14,263,915
$4,792,100
$1,068,420
$1,168,420
$1,262,953
$25,714,687
$24,964,394
$23,524,849
($1,439,545)
-6.12%
$1,338,262
$1,450,137
$1,100,204
($349,933)
-31.81%
$15,497,208
$33,282,607
$39,960,498
$6,677,891
16.71%
$562,732,205
$538,987,152
$528,216,549
($10,770,603)
-2.04%
EXPENDITURES
$375,553,394
$6,523,150
$25,926,858
($1,911,396)
$125,015,297 ($15,033,557)
$1,721,000
($348,800)
1.74%
-7.37%
-12.03%
-20.27%
Property Tax
Sales Tax
Other Local Taxes
From Other Agencies
Service Charges
Other Revenue
Transfers
Total Revenues
PERSONNEL
SUPPLIES
CONTRACTUAL
CAPITAL OUTLAY
$357,429,610
$25,569,341
$126,234,552
$53,498,702
$369,030,244
$27,838,254
$140,048,854
$2,069,800
Total Expenditures
$562,732,205
$538,987,152
$528,216,549
VARIANCE
$
($9,471,815)
$94,533
($10,770,603)
VARIANCE
%
-197.65%
7.49%
-2.04%
39
Total General Fund Revenues
FY2010 Proposed Budget
S A LE S T A X
$ 9 8 ,8 6 6 ,4 2 1
18 .7 2 %
O T H E R LO C A L
T A XES
$ 9 ,0 7 7 ,5 0 0
1.7 2 %
LIC E N S E S A N D
P E R M IT S
$ 4 4 ,14 5 ,4 19
8 .3 6 %
F IN E S A N D
F O R F E IT UR E S
$ 13 ,16 8 ,3 8 3
2 .4 9 %
US E O F M O N E Y A N D
P R OP ER T Y
$ 4 ,7 9 2 ,10 0
0 .9 1%
P R OP ER T Y T A X
$ 2 9 2 ,4 4 0 ,6 6 6
5 5 .3 6 %
O T H E R A G E N C IE S
$ 1,14 0 ,5 0 8
0 .2 2 %
T R A N SF ER S
$ 3 9 ,9 6 0 ,4 9 8
7 .5 7 %
O T H E R R E V E N UE
$ 1,10 0 ,2 0 4
0 .2 1%
S E R V IC E C H A R G E S
$ 2 3 ,5 2 4 ,8 4 9
4 .4 5 %
$528,216,548
40
Total General Fund Expenditures
FY2010 Proposed Budget
IN F R A S T R UC T UR E
S E R V IC E S
6 3 ,8 2 5 ,17 4
12 .0 8 %
P UB LIC S A F E T Y &
E C O N O M IC
D E V E LO P M E N T
2 9 0 ,0 0 1,6 9 0
5 4 .9 0 %
N E IG H B O R H O O D
S E R V IC E S
8 1,116 ,8 7 9
15 .3 6 %
M A N A GEM EN T
S E R V IC E S
2 3 ,6 9 7 ,17 9
4 .4 9 %
N ON
D EP A R T M EN T A L
6 9 ,5 7 5 ,6 2 6
13 .17 %
$528,216,548
FY2009 Adopted Budget = $ 538,987,152 (2.0% Decrease)
41
Total Citywide Expenditures
FY2010 Proposed Budget
General Fund
$528,216,549 50.36%
Crim e District
$50,625,926 4.83%
Cable
Com m unications
$616,341 0.06%
Culture and Tourism
$29,010,535 2.77%
Environm ental
Protection $4,305,117
0.41%
Lake Worth $922,630
0.09%
Aw arded Assets
$782,407 0.07%
`
Storm w ater Utility
$25,693,028 2.45%
Municipal Airports
$4,619,947 0.44%
Municipal Golf
$5,726,246 0.55%
Water and Sew er
$341,494,432 32.56%
Solid Waste
$52,157,385 4.97%
Municipal Parking
$4,654,455 0.44%
TOTAL EXPENDITURES: $1,048,824,998*
FY2009 Adopted Budget = $1,034,021* (1.4% Increase)
*Excludes internal service and insurance funds
42
Total Citywide Revenues
FY2010 Proposed Budget
General Fund
$528,216,548 50.39%
Crim e District
$50,816,184 4.85%
Cable
Com m unications
$616,341 0.06%
Culture and Tourism
$29,010,535 2.77%
Environm ental
Protection $4,305,117
0.41%
Lake Worth $196,800
0.02%
Aw arded Assets
$843,146 0.08%
`
Storm w ater Utility
$25,693,028 2.45%
Municipal Airports
$4,619,947 0.44%
Municipal Golf
$5,726,246 0.55%
Water and Sew er
$341,494,432 32.57%
Solid Waste
$52,157,385 4.98%
Municipal Parking
$4,654,455 0.44%
TOTAL REVENUES: $1,048,350,164*
*Excludes internal service and insurance funds
43
Next Steps
•
August 11th
City Manager recommends FY2010 Budget
•
August 18th
Budget Study Sessions / Public Hearing
•
August 20th–21st
Budget Retreat - Southwestern Baptist Seminary
•
August 25th
Budget Study Session / Public Hearing
•
August 27th
Budget Study Session
•
September 1st
Budget Study Session / Public Hearing
•
September 3rd
Budget Study Session
•
September 8th
Budget Study Session Public Hearing
•
September 10th
Budget Session
•
September 15th
City Council to adopt FY2010 Budget
44
Questions?
45