1. FY 13 Budget Process
Update
May 14, 2012

2. Budget Objectives
Prepare a balanced 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
Budget Status
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 economic growth
Moderate growth in sales tax
Property value growth projected to be
minimal

7. Current Budget Status

8. Key General Fund Revenues
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 Certified Values $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 12 to date
– 5.53% above estimate
– Positive growth seen the last year
FY 13 Forecast
– 2% projected

12. Budget Reductions
Reduced $7.1 million 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. Budget Policies

15. Budget Policies
Provide parameters for budget preparation
Revenue Policies
– Tax Rate
Prepare Budget using existing tax rate

16. Budget Policies
– Utility Transfer 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 Maintenance and Replacement
Fund Balance Policies
– General Fund 15%
– Utility Funds 15%

18. FY 13 Budget Issues

19. FY 13 Budget Issues
Modest revenue increases
Continue electric transfer reduction
Demand for services continues
Additional General Fund reductions
needed to stay balanced

20. FY 13 Budget Issues
Identifying potential budget reductions
Evaluate service level impacts
Proposals will be made in the FY 13 budget

21. FY 13 Budget Issues
Police Department
 Police positions and associated equipment
Public Works – Street Maintenance
 Street maintenance and rehabilitation
projects
Other Service Level Demands

22. FY 13 Budget Issues
Pay and Benefits
– Largest component of operating budget
– Form a Council Committee to review
Pay and benefit policies

23. FY 13 Budget Issues
Capital Project Operations and
Maintenance
Utility Rates

24. Financial Forecast Impacts
General Fund
– 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
Utility Funds
– Rate increases forecast
– Operations and maintenance
– Capital costs
– Debt Service costs
– Reductions in Utility Transfers

26. Next Steps
Monitor economic conditions
Monitor revenues
Identify service priorities
Reduce expenditures as necessary
Prepare Proposed Budget and identify key
budget decisions