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'09-'10 Fiscal Year Budget Format


									                     JUNE 14 2011 BUDGET WORKSHOP NO. 1
                     11-12 FISCAL YEAR BUDGET

Operation Momentum
                        Forwarding Financial Management by Exercising Best Practices,
                        Policy Development and Information Dissemination
    Forward Momentum in the Budgeting
   Office of the City Manager
       Matthew Brower– City Manager
   Office of Budget & Finance
       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:

   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
   There will be separate books for workshops versus public hearings in
   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

   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
       Operating Budget
           Migration to the State Chart of Accounts
           Bringing the Internal Service Funds into the budget
           Budgeting all dollars including reserves
       Capital Improvement Program
           Improved project request and tracking processes
           Funding for Replacement/Renewal of IT & Facilities
                                  CURRENT                                                     PROPOSED

                                             Adopted                                                     Adopted
                                              Budget                                                      Budget
                                             FY 10-11                                                    FY 10-11

REVENUES                                                   CASH BALANCE FORWARD                              25,803,905
AD VALOREM                                    19,548,217   Less Transfer from Fund Balance*                   3,932,505
Sales & Use Taxes                             1,118,903     Net Cash Balance Forward                         21,871,400
Franchise Fees                                  775,000
Utility Service Tax                           7,700,000    REVENUES
Communications Service Tax                    3,819,397    AD VALOREM                                        19,548,217
Licenses & Permits                            1,024,400    Sales & Use Taxes                                  1,118,903
Intergovernmental Revenue                     5,083,130    Franchise Fees                                       775,000
Charges For Service                          11,559,201    Utility Service Tax                                7,700,000
Fines & Forfeits                                362,900    Communications Service Tax                         3,819,397
Miscellaneous Revenues                        1,383,241    Licenses & Permits                                 1,024,400
  Total General Fund Revenue                  52,374,389   Intergovernmental Revenue                          5,083,130
                                                           Charges For Service                               11,559,201
TRANSFERS                                                  Fines & Forfeits                                     362,900
Transfers from Other Funds                    10,913,091   Miscellaneous Revenues                             1,383,241
Transfer from Working Capital*                 3,932,505     Total General Fund Revenue                      52,374,389
 Total Transfers                              14,845,596
Total Revenues & Transfers                    67,219,985   Transfers from Other Funds                        10,913,091
                                                            Total Transfers                                  10,913,091
Salaries & Benefits                           48,455,430   Total Revenues & Transfers                        89,091,385
Operating                                     15,038,921
Capital                                          150,950   EXPENDITURES
Non-Operating                                    282,237   Salaries & Benefits                               48,455,430
 Total General Fund Expenditures              63,927,538   Operating                                         15,038,921
                                                           Capital                                              150,950
TRANSFERS                                                  Non-Operating                                        282,237
Transfers To Other Funds                       3,292,447    Total General Fund Expenditures                  63,927,538
 Total Transfers                               3,292,447
Total General Fund Expenditures               67,219,985   Transfers To Other Funds                           3,292,447
                                                           25% Reserve for Cash Balance Forward              16,804,996

* Fund balance used to cover expenses that                 Reserve for Contingency                            5,066,404
exceeded revenues in current year                           Total Transfers                                  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
Items of Discussion

     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
   The same services will be provided at the currently established service
   No fee or tax increases will be recommended in FY 11-12 unless it is
    needed to cover the true cost of service
   Sanitation Commercial Fees are reduced by approximately 5%
   The Fire Fee will remain at the current level for Residential and Commercial
   The comprehensive fee schedule will be presented to Council for adoption
    along with the budget
Revenue & Growth Projections
   We are not expecting to receive additional Stimulus dollars
   SHIP dollars have been eliminated and we expect CDBG dollars to be
   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
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%.

   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
   The current fiscal year saw the following salary increase:
       The increase for Regular FT employees earning <$45,000 was a flat dollar
        range from $500-$900 (2% not to be below $500)
       The increase for Regular FT employees >$45,000 was 1% NOT to exceed
       A pro rata share plan was utilized for the Permanent PT employees
       Cabinet members were excluded from the plan
       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
   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
   Continued focus on tying CIP related projects to Economic
Strategies for Fiscal Momentum
   Business Cycle Ebbs & Flows
   Refrain from use of survival techniques
   Continued reliance on a team effort

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