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FY 2014 Proposed Budget Overview - City of Cottonwood

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									 CITY OF COTTONWOOD
FY 2014 Proposed Budget Overview
City Council Chambers June 17, 2013
             @ 6:00 P.M.
                Topics of discussion

n   Glossary of Acronyms
n   FY 2014 Budget Summary
    n   Personnel
    n   Programs
    n   <$35K Capital
n   Major Revenues Update
n   Funding Outside Agencies
n   Water & Wastewater Rates
n   Financing Needs
n   Reserve Funds Status
n   Future Meetings & Questions
                                       2
Glossary of Acronyms




              3
                   Glossary of Acronyms


n   ADOT – Arizona Department of Transportation
n   ADEQ – Arizona Department of Environmental Quality
n   ASRS – Arizona State Retirement System
n   ADWR – Arizona Department of Water Resources
n   AZ - Arizona
n   CAF – Capital Accumulation Fund
n   CATS – Cottonwood Area Transit System
n   CDBG – Community Development Block Grant
n   CIP – Capital Improvements Plan/Program
n   COLA – Cost Of Living Adjustment
n   DOJ – Department of Justice
n   DPS – Department of Public Safety
n   DS – Debt Service
n   DUI – Driving Under the Influence
                            4
                    Glossary of Acronyms


n   E-MOD – Experience Modifier
n   EMS – Emergency Medical Services
n   FAA – Federal Aviation Administration
n   FmHA – Farmers Home Administration
n   FY – Fiscal Year
n   GADA – Greater Arizona Development Authority
n   GF - General Fund
n   GOHS – Governor’s Office of Highway Safety
n   HURF – Highway User Revenue Fund
n   IGA – Inter-Governmental Agreement
n   IT – Information Technology
n   LP – Lease Purchase
n   LTAF – Local Transportation Assistance Fund
n   MPC – Municipal Property Corporation
                             5
                     Glossary of Acronyms



n   MP Room – Multi Purpose Room
n   O&M – Operation & Maintenance
n   P&Z – Planning & Zoning
n   PANT – Prescott Area Narcotics Taskforce
n   PSPRS – Public Safety Personnel Retirement System
n   SAFER – Staffing for Adequate Fire and Emergency
    Response
n   SCBA – Self Contained Breathing Apparatus
n   Sp Ops – Special Operations
n   SRO – School Resource Officer
n   VLT – Vehicle License Tax
n   WIFA – Water Infrastructure Finance Authority
n   WWTP – Wastewater Treatment Plant
n   YC – Yavapai County
                             6
FY 2014 Budget Summary




                         7
         2014 Budget Summary
               Personnel




•Currently no additional staffing is in the budget

                                                     8
                 2014 Budget Summary
                       Personnel


n   Items currently included:
    n   Cost Of Living Adjustment (COLA) – 1.7%
    n   Longevity - $45,000
    n   Merit program fully funded this fiscal year




                                                      9
                    2014 Budget Summary
                          Personnel


n Health insurance premiums increased by 6.5%
n City continues to fund a portion of dependent coverage
n No health insurance cost shift to employees
    n   Reserve the right to adjust during the year




                                                           10
2014 Budget Summary
      Personnel




                      11
              2014 Budget Summary
                    Personnel

n   Arizona State Retirement – 0.40% increase
    n   FY 2014 – 11.14% to 11.54%
n   PSPRS Fire – 2.18% increase
    n   FY 2014 – 14.63% to 16.81%
n   PSPRS Police – 4.98% increase
    n   FY 2014 – 24.90% to 29.88%



                                                12
2014 Budget Summary
      Programs
       n   New Programs for FY
           2014
           n   Shared Safety
               Consultant




                                 13
2014 Budget Summary
 <$35K Capital Outlay




FY 2013 Lease Purchase
                         14
2014 Budget Summary
 <$35K Capital Outlay




                        15
2014 Budget Summary
 <$35K Capital Outlay



          There is $147,340
          reserved for capital,
          programs, and operations.

          Concern that departments
          cut too deep



                                  16
Major revenues update




                        17
2014 Budget Summary




                      18
                                  2014 Budget Summary

n   The Good
     n   Current GF reserve policies are being maintained
     n   Local economy showing signs of improvement
     n   Local sales tax is budgeted for small increase 3.7%
n   The Bad
     n   Fund Balance Policy not being followed in other funds
     n   Costs growing faster than revenues
     n   Too many demands on the City for support
           n   Outside agencies
           n   Schools
           n   County
     n   State still holding HURF hostage
     n   LTAF has not returned
     n   Loss of current Dispatch partners



                                                                 19
Funding Outside Agencies




                           20
          Funding Outside Agencies

n   Core Services – organizations providing a core or
    mandatory service on behalf of the City, that the
    City would otherwise have to provide.

n   Value Added Benefit Service – organizations
    providing an ongoing service that provides a value
    added benefit to the community, though not
    mandatory, would probably be provided by the City
    in some manner.

n   Program Funding – organizations, not considered
    providing the services described above, seeking
    funding for a specific program, or event.

                                                         21
                Funding Outside Agencies

           Organization          FY 2013          FY 2014
     Old Town Association            $13,000           $10,000
     Senior Center                   $45,000           $45,000
     Veterans Van                     $2,500            $2,000
     Humane Society                  $40,000           $41,200
     Catholic Charities             $10,000 -         $10,000 -
                                     $15,000           $15,000
     Chamber of Commerce             Estimate         Proposed
                                    $108,000          $110,000
                            New Requests
     Old Town Center for Arts              $0   $20,000 request
    Boys & Girls Club              Received $25,000 request
These organizations will be presenting on Thursday prior to wrap-
                                    $10,000
                               up.
                                                                  22
Water & Wastewater Rates




                           23
                  Water & Wastewater Rates

n   There is a strong need for rate adjustments
    n   Water - Lack of Debt Service Coverage – Should be
        1.35X
    n   Continue to look for efficiencies in both systems
    n   Moody’s & S&P statements are on-line
         n   Moody’s downgraded Cottonwood May 11, 2011
         n   S&P downgraded Cottonwood June 12, 2013
         n   Syncora issued a Notice of Noncompliance to our Water Bonds
             Trustee - Bank of New York Trust Co.
n   Rate Study presentation was on June 11th
n   Notice of Intent to Increase Water & Sewer Rates
    will be presented tomorrow
                                                                           24
Financing Needs




                  25
                       Financing Needs


HURF   $4,700,00 possible MPC    12th Street and Mingus Street
               0 bond            Improvements


• Currently this is the only anticipated borrowing
• Refunding of the Water Bonds are not in the budget since
  the decision was made to wait until the City got closer to the
  call dates of the bonds, and improved bond coverage. That
  being November 2014 and January 2016
• We are contemplating bonding for:
    • Communication Center
    • City Hall Complex
                                                                   26
Reserve Funds Status




                       27
        GF Reserve Funds Status


n 60 Days Coverage
     $2,268,830
n Capital Accumulation Fund
     $1,000,000
n Undesignated Reserves
       $100,000
n 1% Sales Tax GF Capital
  $324,750
n 0.2% Sales Tax PS Capital Fund   28
                Future Meetings


n   Wednesday, June 19th at 6 p.m.

n   Thursday, June 20th at 4:00 p.m.



             Questions????

                                       29

								
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