Transcript Budget Informational Meeting Great Falls Council of Councils Meeting May 27, 2014

Budget Informational Meeting
Great Falls Council of Councils Meeting
May 27, 2014
Budget Drivers FY15 (and beyond)
Slow property tax growth
 Department reliance on General Fund
Subsidy
 Electric City Power Settlement
 Capital Planning – Facility

◦ Deferred Maintenance
◦ Some equipment (fire trucks)
The Plan






↑ ↑ Economic Development
↔ Stabilize the budget
↓ General Fund Support
↑ Capital Planning - Facility
↑ Debt/Operational Flexibility
Budget process overhaul
◦
◦
◦
◦

Service review
Fee review
Fund review
Quarterly budget meetings
Determine Resident Priorities
New Taxable Revenues
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$Total $ increase in mill levy due to newly taxable property
General Fund Subsidies
Support Area
City County Health
City Band
GFDA
Tennis Court
Natural Resources
Planning
Swimming Pools
Recreation Center
Multisport
IT
Engineering
Civic Center Events
Golf Course
2011
$250,000
$4,500
$100,000
$0
$264,918
$199,951
$414,389
$153,729
$0
$11,772
$126,287
$214,727
$100,000
2012
$250,000
$4,500
$50,000
$4,000
$264,918
$168,148
$414,389
$153,729
$0
$11,772
$126,287
$214,727
$100,000
2013
$250,000
$4,500
$0
$4,000
$264,918
$158,825
$414,389
$153,729
$0
$12,695
$126,287
$214,727
$0
2014
$250,000
$0
$0
$0
$164,918
$100,000
$214,389
$59,226
$0
$0
$63,143
$114,727
$0
Deficit and Cash Flow (now)
General Obligation Note
$1.2 million
Accrued Payables (interest)
$9,133
Due to other City Funds
$5.4 million
Water Credit
$1.2 million
Advances to other Funds
Securities
$1.4 million
$9.2 million
Settlement Funding
Payment #1
Central Garage
Information Tech
Fiscal Services
Engineering
Public Work Admin
Insurance & Safety
Hazard Removal
Economic Revolving
$905,000
$200,000
$325,000
$250,000
$100,000
$200,000
$100,000
$420,000
$2,500,000
General Fund
Payment #2
Tax Revenue
$750,000
Total
$3,250,000
Balance
As of (3/31/14)
$2,883,802
$157,481
($63,647)
$235,185
$230,607
$239,676
$1,845
$280,141
$3,965,090
($1,258,040)
ECP General Fund Impact?
General Fund Undesignated
Fund Balance
10 Year Trend Unreserved General Fund Balance
$8,000,000
17%
27.2%
$7,000,000
24.8%
$6,000,000
19.8%
$5,000,000
$4,000,000
19.0%
15.2%
15.6%
$3,000,000
15.8%
11.9%
8.5%
$2,000,000
4.8%
$1,000,000
FY15
12%
$0
1st 8 Years Actual - Last 2 Years Projected
Projected Fund Balance End FY14
$2,164,958 (or 8.4%)
9
Moody’s Comments
STRENGTHS
 A sizeable and stable tax base
 Strong management team that is seeking to minimize or
eliminate enterprise risks
 Manageable direct debt burden with rapid repayment
CHALLENGES
Weak financial position as a result of a recent legal
settlement involving its electric enterprise
Below-average socioeconomic measures
City’s Rating
General Fund Revenues FY14
Intergov’t
26%
Licenses &
Permits
4%
Charges for
Services
4%
Fines &
Forfeitures
4%
Internal
Service
4%
Taxes
58%
General Fund Expenditures FY14
Supplies
3%
Purchased
Services
4%
Personal
Services
70%
Contributions
& Other
1%
Internal
Service
14%
Transfer Out
8%
GF Break Down - Departments
Transfer Out,
1,962,074, 8%
Park & Rec,
2,261,149, 9%
Fire, 7,033,576,
27%
Administration,
2,218,288, 9%
Court, 625,771,
2%
Legal, 615,263, 2%
Police,
10,908,330, 43%
Recovery Process
Budget stability
 Restore Fund Balance - Policy (17%)
 Review fees citywide
 Limit General Fund support
 Prioritize Services

◦ No new services/limited program expansion

Partnerships
Recovery Process Con’t

Rebuild Public Trust
◦ Educate citizenry

Realign City Services
◦ Demonstrate that we’ve done everything
possible operationally before…
◦ Focus on Department Core Services
 What do we want to be the best at?

Capital Investment
◦ Facility plan under development
◦ Equipment plan stable
Future Budgets

Assumptions
◦ Little support for another levy
◦ Slow growth – slow tax revenue
 TIFs/Abatements
◦ Service Menu Too Full
 The more government does…

Deferred Maintenance/Capital
◦ Bond Levees for large capital and equipment