Transcript '09-'10 Fiscal Year Budget Format

JUNE 14 2011 BUDGET WORKSHOP NO. 1
11-12 FISCAL YEAR BUDGET
FORMAT
Operation Momentum
Forwarding Financial Management by Exercising Best Practices,
Policy Development and Information Dissemination
Forward Momentum in the Budgeting
Process
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Office of the City Manager
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Matthew Brower– City Manager
Office of Budget & Finance
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John Lege-Chief Financial Officer/Finance Director
Cindy Kelley-Deputy Director of Budget & Finance
Rita Conn-Sr. Budget Analyst
Jennifer Love-Budget Analyst
Tammi Haslam-Grants Coordinator
Angela Sistarelli-Temple- Grants Accountant
Continued Momentum of the New
Business Plan
This continues the evolution of the City’s fiscal transformation efforts
to produce a more transparent document, greater accountability
to the citizens, and improve the accuracy, efficiency and timeliness
of financial information.
Today’s purpose is to solicit City Council direction of the previously
adopted budget process, format, and key management
principals. To continue to streamline the budget process and to
ensure that the budget is clear and intelligible.
Workshop Schedule
Schedule of FY 11-12 Council Work Sessions:
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June 14- Budget Format Workshop*
June 28- Capital Projects & Replacement/Renewal Fund Workshop*
July 12- General Fund (and smaller ancillary funds) Workshop*
July 26- Enterprise Fund Workshop (Electric, Water/Sewer, Sanitation, Golf
& Airport)*
August 9-Preliminary Budget Presentation Workshop*
TBA- 1st Reading Tentative Budget (Public Hearing)
TBA- 2nd Reading Final Budget (Public Hearing)
*11:00 Council Lunch
*11:30-1:30 Work Session (Council Chambers)
FY 11-12 Budget Format
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There will be separate books for workshops versus public hearings in
September.
The workshop books will have much greater levels of detail. The public
hearing will be similar in nature to the current year format with some
additional sections.
The Capital Improvement Plan (CIP) will be in a separate book. The work
session for CIP will provide detail by project as well as anticipated
available funding.
The “work book” format will be utilized again this year with enhancements:
 Tabbed out by section
 Footnotes related to changes/consolidations
 Summary page outlining each areas major changes/initiatives
 Items related to audit findings will be emphasized
The Fiscal Managers/Department Heads for the service areas will be
involved in the presentation of their respective budgets.
Changes Between This Year’s Budget and
Last’s
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Key Management Practices are adopted and implemented. Financial
Policies will be drafted for adoption. A Fund Balance Policy in accordance
with GASB 54 will be presented for adoption. These continue to be
updated and any changes will be presented to Council with the Budget.
Continuation of the Streamlining Process
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Operating Budget
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Migration to the State Chart of Accounts
Bringing the Internal Service Funds into the budget
Budgeting all dollars including reserves
Capital Improvement Program
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Improved project request and tracking processes
Funding for Replacement/Renewal of IT & Facilities
CURRENT
PROPOSED
Adopted
Budget
FY 10-11
REVENUES
AD VALOREM
Sales & Use Taxes
Franchise Fees
Utility Service Tax
Communications Service Tax
Licenses & Permits
Intergovernmental Revenue
Charges For Service
Fines & Forfeits
Miscellaneous Revenues
Total General Fund Revenue
19,548,217
1,118,903
775,000
7,700,000
3,819,397
1,024,400
5,083,130
11,559,201
362,900
1,383,241
52,374,389
TRANSFERS
Transfers from Other Funds
Transfer from Working Capital*
Total Transfers
10,913,091
3,932,505
14,845,596
Total Revenues & Transfers
67,219,985
EXPENDITURES
Salaries & Benefits
Operating
Capital
Non-Operating
Total General Fund Expenditures
48,455,430
15,038,921
150,950
282,237
63,927,538
TRANSFERS
Transfers To Other Funds
Total Transfers
Total General Fund Expenditures
* Fund balance used to cover expenses that
exceeded revenues in current year
3,292,447
3,292,447
67,219,985
Adopted
Budget
FY 10-11
CASH BALANCE FORWARD
Less Transfer from Fund Balance*
Net Cash Balance Forward
25,803,905
3,932,505
21,871,400
REVENUES
AD VALOREM
Sales & Use Taxes
Franchise Fees
Utility Service Tax
Communications Service Tax
Licenses & Permits
Intergovernmental Revenue
Charges For Service
Fines & Forfeits
Miscellaneous Revenues
Total General Fund Revenue
19,548,217
1,118,903
775,000
7,700,000
3,819,397
1,024,400
5,083,130
11,559,201
362,900
1,383,241
52,374,389
TRANSFERS
Transfers from Other Funds
Total Transfers
10,913,091
10,913,091
Total Revenues & Transfers
89,091,385
EXPENDITURES
Salaries & Benefits
Operating
Capital
Non-Operating
Total General Fund Expenditures
48,455,430
15,038,921
150,950
282,237
63,927,538
TRANSFERS
Transfers To Other Funds
25% Reserve for Cash Balance Forward
3,292,447
16,804,996
Reserve for Contingency
Total Transfers
5,066,404
25,163,847
Total General Fund Expenditures
89,091,385
Other Changes
Formally adopted Financial & Fund Balance Policies
 Inclusion of ALL funds in the budget ( Internal Services)
 Inclusion of reserves in the budget
 Public Access- web based financial reports to be
available monthly
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Items of Discussion
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2012 Tentative Millage Rate
Fees & Taxes
Revenue Projections
Growth
Insurance
Personnel
Longevity
Pension
Salary
Millage Comparison
Value of a mil (at 95% collection rate):
2009- 1 mill- $4.1M
2010- 1 mill- $3.7M
*2011- 1 mill- $3.4M
*Based on June 1, 2011 estimate from Property Appraiser
Recommendation for FY 11-12 is to adopt the Roll Back
Rate. This is the Revenue Neutral option.
Fees &Taxes
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The same services will be provided at the currently established service
levels
No fee or tax increases will be recommended in FY 11-12 unless it is
needed to cover the true cost of service
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Sanitation Commercial Fees are reduced by approximately 5%
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The Fire Fee will remain at the current level for Residential and Commercial
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The comprehensive fee schedule will be presented to Council for adoption
along with the budget
Revenue & Growth Projections
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We are not expecting to receive additional Stimulus dollars
SHIP dollars have been eliminated and we expect CDBG dollars to be
reduced
Tax Revenues (sales tax, communications tax, gas taxes etc) are expected
to be flat
Any recovery of Economic Improvement Program dollars will roll back into
the program to fund future projects
Population growth is expected to be 3.1%
We expect a very modest increase in growth of new business and building
throughout the City, but expect to budget conservatively
Insurance
Estimated 3.7% increase to premiums for FY 11/12:
The City is proposing to split the difference with employees in the following
manner: the City absorb up to 2.7% of the increase and the employees absorb
up to1%.
* ALL FIGURES ARE ESTIMATES SUBJECT TO REVISION
Personnel
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Longevity- no change recommended to current policy
Pension Expected 3% increases to plan contributions will be absorbed by fund
balance within the pension prior to using General Fund dollars
 An actuary has been hired by the City to do a thorough plan analysis
and recommend any necessary changes
The total employee headcount of the City is expected to be approximately
983 Regular FT, 41 Permanent PT
No new or upgraded positions are being recommended without a
compelling justifiable reason (as determined by the City Manager)
Personnel (continued)
Salary Plan
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The current fiscal year saw the following salary increase:
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The increase for Regular FT employees earning <$45,000 was a flat dollar
range from $500-$900 (2% not to be below $500)
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The increase for Regular FT employees >$45,000 was 1% NOT to exceed
$750.
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A pro rata share plan was utilized for the Permanent PT employees
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Cabinet members were excluded from the plan
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Employees on initial probation or performance improvement/disciplinary
probation were also excluded
For FY 11/12 an increase of up to 1.5% is being considered based
on funding availability
Other items
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Recommendation to hold the line on charitable giving requests
to current year levels
We will continue to implement prior audit finding
recommendations into our processes
Continued focus on job creation as well as creating community
wealth
Continued focus on tying CIP related projects to Economic
Development
Strategies for Fiscal Momentum
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Business Cycle Ebbs & Flows
Refrain from use of survival techniques
Continued reliance on a team effort
Questions/Comments