HomeMy WebLinkAbout05/26/2005 Budget Workshop Info
MEMORANDUM
MANAGER'S OFFICE
Michael Reuwsaat, Town Manager
Diane Mangialardi, Administrative Manager
Jaret Barr, Assistant Town Manager
Jim DeGrood, Assistant Town Manager
TO:
Mayor and Council
FROM:
Michael A. Reuwsaat, Town Manager,
SUBJECT:
Fiscal Year 2005-2006 Budget Transmittal Letter
DATE:
May 24, 2005
Marana is experiencing significant growth. We can expect 1800 single
family residential building permits in FY 2004-2005. This translates to an
additional 4800 new residents. We expect this trend to continue. Our
challenge is to continue to deliver high quality services over time during this
significant growth.
The FY 2005-2006 draft budget is estimated at approximately $89.7 million
with more than $59.5 million identified in CIP requests. This budget
maintains high quality services by increasing staff and operational support
this fiscal year with the greatest budget increases in Law Enforcement and
Development Services.
Even though state revenue sharing has not increased over the past five years,
our population will continue to increase thereby increasing general fund
expenditures related to growth. Continuing reliance on retail sales taxes will
not be sufficient over the long term given the growth of our community. To
meet current and future demands for services and infrastructure, this year's
proposed budget provides the following:
· Our primary emphasis has been providing a high level of quality
service in parks, police and transportation. This will continue to
remain our focus. Additional support is also necessary for
Development Services due to the growth we are experiencing. The
2005-2006 Draft Budget reflects these priorities.
· Impact fees for future park development have been recently approved.
Park development should follow the collection of these fees rather
than tap general fund reserves as in the past.
· Transportation funding has been augmented this past year with the
addition of the Northwest Area Transportation Impact Fee as well as a
half cent increase in the sales tax for regional transportation
improvements. If the Regional Transportation Authority is successful
in obtaining voter approval of the county-wide half cent sales tax for
regional transportation improvements, the Town of Marana will need
to re-evaluate the Town of Marana half cent sales tax.
· Staff is preparing an analysis on transportation needs and the funding
for transportation in northeast Marana. This is the only area of
Marana without an existing approved transportation impact fee.
· The Water Fund, if approved, will be a fully self supported enterprise
fund including debt service. Staff will be presenting for approval
water connection fee increases and a water impact fee to pay for
infrastructure and non-renewable water resources which are directly
related to growth.
· Development review fees, which have not increased since 1994, have
been reviewed and staff will recommend increases in certain
development review fees.
· The Airport is established as an Enterprise Fund, but the Town of
Marana continues to provide substantial general fund support for grant
related matches for infrastructure and land acquisition as well as
general fund support of the operational budget. In FY 2005-2006, the
Town of Maran a must successfully purchase the land on the southeast
side of the Marana Regional Airport from State Land in order to
provide for opportunities to increase operational revenues to sustain
the operational budget, thereby reducing general fund support of the
airport.
· Another growth related infrastructure impact that staff is evaluating
relates to storm water and drainage infrastructure such as the Barnett
Lineal Park and Storm Water Project.
· Community Facility District financing will continue to provide
opportunities to finance public infrastructure as well as cover some
operational expenses.
· Community Development Block Grant funds have been reduced at the
federal level. We can expect to see reduced CDBG funds available to
Marana.
· Pima County has recommended assuming the full financing of the
County-wide Library System by incrementally increasing the library
tax. I recommend supporting this effort by Pima County to save
Marana residents more than $500,000 annually to support the new
library operational costs. The new library at Cortaro and Silverbell
Roads will serve regional needs and thus the justification for regional
funding to support the same.
· Our health insurance rates did not increase this year, a very positive
note for employee health and healthcare expenditures.
· In the past, we have replaced town vehicles and equipment based on
mileage and hours of use. We will now operate vehicles and
equipment until their useful and cost effective life is fully utilized
thereby extending the use of our existing fleet of vehicles and
equipment.
· Our employees are our most valuable resource. To this end, I will be
recommending various salary adjustments for our employees based on
a FY 2006 salary analysis recent completed.
· Retaining and recruiting police officers is very competitive. In order
to remain competitive, I am recommending a change in the police
compensation plan. I am recommending that our commissioned
officers be changed to the step plan that Pima County and the City of
Tucson. Commissioned officers will receive a 1.47% - 15% increase
in pay based on years of service and where they fall into this step
plan. The average increase per officer will be slightly over 8%. The
restructuring of our compensation plan is necessary to retain our
current police force and to compete for new officers.
· I am recommending a phased-in staff increase in our commissioned
police officers with the overall addition of eight patrol officers, one
detective and one sergeant over the next twelve months to maintain a
ratio of 2.5 commissioned officers per thousand residents. Providing
for the safety of our citizens continues to be a high priority, one that
will significantly increase our general fund obligation over time.
· I am recommending the approval of several new positions, to be hired
in the second quarter of the fiscal year. I will evaluate hiring some
positions before the end of the first quarter of fiscal year 2005-2006,
but will consider these on a case by case basis.
· The proposed budget will balance operational expenditures and
operational revenues, but proposes a $1.3 million from general fund
reserves for the Capital Improvement Program. I do not expect to
reduce our general fund reserves to this level, but I have
recommended budgeting the capacity as in past years. From FY
2000-1 to FY 2003-4, we were able to operate and provide capital
improvements such as parks and transportation improvements with a
net reduction of $870,000 to general fund reserves. FY 2004-2005 is
budgeted to reduce general fund reserves by about $3 million. I
expect general funds reserves to remain at $13 million by end of FY
2005-2006.
· I am recommending a phased in Cost of Living Allowance of 2.5% to
be phased in with 1.25% beginning in July and 1.25% January 15\
2006. We have budgeted an average 4% increase for merit increases.
· Finally, I am recommending the addition of a budget analyst this year
to work to identify areas of cost savings, increase effectiveness,
increase efficiencies, evaluate current revenue streams, identify new
revenue opportunities, and to evaluate existing practices. I will be
requiring staff to develop a five year operational and capital
improvement plan so we can identify future trends and their resulting
impacts on future budgets.
The FY 2005-2006 budget continues to provide high quality services for
Marana residents. I look forward to FY 2005-2006 knowing that Marana
will remain a leader in the Southern Arizona.
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TOWN OF MARANA
REVENUE FORECAST
Adopted Est. Proposed Change
Budget Actuals Budget from 0/0
FYQ5 @ 6~30~Q5 FY06 Est. Act. Cl1ange
Gross Town Sales Tax 18,942,345 21,172,908 23,140,122 1,967,214 9.29%
(Less Transport. Fund) -0.15%
Net G.F. Sales Tax 13,531,433 14,788,420 16,765,122 1,957,726 13.24%
Sales Tax 1,170,567 1,170,567 1,327,897 157,330 13.44 %
Urban Revenue 1,247,733 1,247,733 1,418,744 171,011 13.71%
Auto Lieu 650,000 650,000 32,561 5.27%
Total State Shared (Other Agencies) 3,068,300 3,035,739 3,396,641 360,902 11.89%
Bldg. & Develop. Fees 3,600,000 4,810,032 4,796,153 -0.29%
Fines & FOlfeitures 400,000 450,651 450,000 -0.14%
Franchise Fees 230,000 156,768 200,000 43,232 27.58%
Business Licenses 86,000 86,000 87,000 1,000 1.16%
Investment Income 350,000 389,326 612,500 223,174 57.32%
Lease Income 467,000 467,000 468,000 1,000 0.21%
Park & Rec Fees 120,000 75,000 76,000 1,000 1.33%
Other 130,000 130,000 -25.71%
Total Permits, Licenses and Fees 5,383,000 6,609,778 6,819,653 209,875 3.18%
Total Recurring G.F. Revenues 21,982,733 24,433,937 26,981,416 2,547,479 10.43%
Court Fines & Fees - Amnesty Program 300,000 0 200,000 200,000 100.00%
Sales Tax Audit Revenues 150,000 175,000 150,000 -14.29%
Developer Contributions 0 0 300,000 300,000 100.00%
Special Event Revenue 100,000 100,000 0 -100.00%
Other 1,315,141 105,000 -92.02%
Total Non Recurring G.F. Revenues 1,865,141 1,590,141 755,000 -52.52%
Total General Fund Revenues 23,847,874 26,024,078 27,736,416 1,712,338 6.58%
Transportation Fund 5,410,913 6,384,488 6,375,000 -0.15%
1/2 Cent Sales Tax 3,200,000 1,246,187 4,340,135 3,093,948 248.27%
HURF 1,152,400 1,152,400 1,172,249 19,849 1.72%
LTAF 94,280 94,280 116,881 22,601 23.97%
Impact Fee Income 1,500,000 1,500,000 1,500,000 0 0.00%
Other Agency Funds 24,306,000 25,012,100 706,100 2.91%
Subtotal ~ Transportatiou 35,663,593 34,683,355 38,516,365 3,833,010 11.05%
M.A.N,T.LS. 60,025 60,025 0 -100.00%
H.LD TA. 56,415 56,415 62,208 5,793 10.27%
COPS 106,760 106,760 267,760 161,000 150.81%
Auto Theft 62,995 62,995 69,445 6,450 10.24%
CDBG/HOME 205,000 205,000 205,000 0 0.00%
Airport Grants 4,387,400 300,000 5,484,750 5,184,750 1728.25%
Subtotal - Grants 4,878,595 791,195 6,089,163 5,297,968 669.62%
Total Restricted Revenues 40,542,188 35,474,550 44,605,528 9,130,978 25.74%
Water Revenues 2,561,440 2,561,440 3,011,830 450,390 17.58%
Airport Revenue 129,000 113,739 129,000 15,261 13.42%
Total Enterprise Funds 2,690,440 2,675,179 3,140,830 465,651 17.41%
Bond Proceeds 2,000,000 2,109,640 0 -100.00%
Improvement Districts 8,500,000 0 8,000,000 5,890,360 279.21%
Total Other Financing Sources 10,5QO,000 8,000,000 279.21 %
Total Fiscal Year Income 77,580,501 66,283,447 83,482,774 17,199,327 25.95%
Reserve Funds
Transportation Fund 2,551,747 0 2,606,153 2,606,153 100.00%
1/2 Cent Sales Tax Fund 0 0 100.00%
Impact Fee Funds 0 0 100.00%
Residual Bond Funds/ HELP Loan 7,000,000 0 4,912,500 4,912,500 100.00%
Reserves 2,440,996 3,000,000 1,449,999 100.00%
Total Reserves 11,992,743 3,000,000 6,291,017 3,291,017 100.00%
Total Available Resources 89,573,244 69,283,447 89,773,791 20,490,343 29.57%
OS/25/2005
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