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Home My WebLink About04/17/2012 Council Presentation - 2013 Manager's Recommended Budget 4/17/2012 MARANA Fiscal Year 2012-2013 Recommended Budget - General Fund Apri117 2012 Overview MARANA • FY2013 revenue outlook • Marana economic recovery plan • FY2013 recovery plan investment summary • Overall summary • Next steps 1 t 4/17/2012 ... 1ARANA FY2.013 revenue outlook ._, . , ,,,,,. , 1 : . 1 1 ,..,--:,..,‘,..„\,. • 'V1ARANA Arizona Economy Arizona Revenue Growth* Over Revenue Gowth L Actuals Year '99 Year ` 1 1 Forecast ' 1 15 y 25 a 18.1% 20.1% 20% • „ 15% I 10.8% 1°% 6 10.1% 94% 78% 9% 6.3% 712% 5% 6.3 % 5.6% 1 0.4% II I -5% -5.7% 4 .h w 10% - o - -10.3% -15% -20% -18.2% -25% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 * Data provided by JLBC ,- TxK 2 4/17/2012 MARANA Arizona Economy • Unemployment - Rate (February 2012) • Arizona 8.7% ( -1.2% YoY 1) - Insurance claims (February 2012) • Initial = 26,870 ( -7.7% YoY A) • Continuing = 56,418 ( -18.4 YoY A) • Housing Prices (Median January 2012) - Phoenix = $120,500 ( -8.5% YoY A) - Tucson = $125,000 ( -6.9% YoY A) MARANA Sales Taxes, $22 $21 $20.8 $20 $20.8.._ $20.3 : $i9.4_ $ ;;Z//! , $16 2006 07 2007 08 2008-09 2009-10 2010 -11 2011-12 2012-13 • Estimated Budgeted'' Change from FY2012 budget -42% or $0.3M* - Contracting - 20% or $0.5M - Hotels* - 44% or $0.6M (Overall - 4 9 % or $0.1 M) - Utilities - 4% or $0.1M - Retail - 1 %or$0.1M - All others - 2% or $0.3M • Currently maintains the continued allocation of additional 1% contracting taxes * Excludes $732K in discriminatory bed fax (201 1- SB1460) which has been allocated to the Bed Tax Special Revenue Fund. 3 . 4/17/2012 ,-.-7=,:\NN,,, VIARANA Shared Revenues �.-1\ $ $7.8 $8 $7.0 $7.5 $7.4 $6.9 $7 1 $6.4 $5.i' $6 111 III $ $4 111 II $3 $2 2006 -07 2007 -08 2008 -09 2009 -10 2010-11 2011-12 2012 -13 Estimated Budgeted x • Change from FY2012 budget -412% or $0.8M - Shared sales tax - 11% or $0.3M - Urban revenue - 21% or $0.6M - Auto lieu - 4% or $0.06M 1 • L Fees & Permits =./1\ $6 $5 $4.9 $4 3 $2:3 $ $1.9 $'�.0 2.3_ $2 $1.6 mow aim MIN 1 " 216 i li I 144:1 .1 W' :,', : , -, - -, WA -'i.$ 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011-12 2012 -13 Budget 1 Estimated • Change from FY201 1 budget - 18% or $0.4M • Single family: - FY2012 - 275 budgeted - FY2013 - 330 budgeted ( 20 %) • FY2013 - Modest commercial development lb 4 4/17/2012 VIARANA Revenue Summary FY2013 Revenues FY2012 Budget Recommended* $ Change Change Sales Tax 20 001 725 20,336,395 334,670 2% T x , , 12 4 12 12% 9 7,821,591 8 2, 5 I I Other Agency Revenues 6,979,466 e ge y Licenses, Fees & Permits 1,994,250 2,347,250 353,000 18% Charges for services 955,470 381,100 (574,370) -60% Fines and forfeiture 660,000 570,000 (90,000) -14% Grants and contributions 20,51 1 102,750 82,239 401% Investment Income 90,000 100,000 10,000 11% Miscellaneous revenues 544,547 582,070 37,523 7% Total Revenue 31,245,969 32,241,156 995,187 3% * Excludes $732K in discriminatory bed tax (201 1- SB1460) which has been allocated to the Bed Tax Special Revenue Fund. ..,,P77L MARANA Recovery p 5 4/17/2012 ,:.-.r • Marana Economic Recover y PIan Combination of tools to retain and reward Marana's talent Current Staff , 44 , ,pir 1 S ' � 4 r thFi , ..Y v , � } � d,+'r .. ^..: . eso trees z Tools Key positions to complement il Facilities, tools, N � P w� � 3 „ n and vehicles used to objectives complete work strategic ?y ��d� un ��/�� ,�� ,��,��;�,,,� '444::' w (phased /Strategic Plan assignments EVIARANA Il Investment summary 6 4/17/2012 FY2O1 3 - Employee Investment MARAN A • 2% Cost of Living Adjustment (COLA)- $376,000 ($334,000 GF) — Pay increase intended to keep the buying power of an employee's salary the same during a period of inflation. — Increases employees' base salaries by 2.O% and salary amounts within all Town salary schedules. — Contributes to the Town's strategic goal for attracting and retaining quality professional staff. — Eligibility • Regular full- and part -time classified and temporary employees • Unclassified employees except those hired on or after January 1, 2012 • The Town Manager is not eligible to receive this increase. MARANA FY2O1 3 - Employee Investment • One -time, lump sum pay adjustment — $132,000 ($1 18,800 GF) — Eligible full and part -time employees hired on /before June 30,201 1 — Pro -rated for eligible, part -time employees — Payments by separate check in December 2012 and subject to all taxes /deductions required by state law Hired July 1, 2009 Hired July 1, 2010 Eligible employees Hired on or before through through Hired on or after earning: June 30, 2009 June 30, 2010 June 30, 201 1 July 1 201 1 Less than $30,000 /year* $600 $500 $400 None Between $30,000 /year to less than $60,000* $500 $400 $300 None Between $60,000 to less than $100,000* $400 $300 $200 io n s: $100,000 or more None *Earnings reflect base regular pay and do not include add on pays such as special assignment pay, overtime compensation, shin differentials, on- call /stand by pay, etc.) • 7 4/17/2012 FY2013 - Employee Investment TRANA • Other pay and benefits - $389,570 ($338,570 GF) on other pay and benefits (special equity adjustments, health, retirement, disability insurance, etc.) - $50,000 for a compensation and classification study (Phase I) • Training and development - $61,251 ($57,806GF) employee training - $16,500 GF internal training and development program • Total investment = $1,029,697 ($9 1 GF) FY2013 - Resource Investment MARANA • Vehicles - Vehicle replacement $246,000 ($84,000 GF) - Total replacement investment 1,171,000 ($848,452 GF) F IS • Technology - Desktop/laptop replacement $65,000 GF - MDTs $25,000 GF - Police server room upgrade $55,000 GF - Police radio system upgrade $750,000 GF • Facilities - Maintenance projects $1 17,340 ($109,900 GF) - Phone system update (Phase II) - $140,000 GF • Total investment - $1,520,396 ($1,344,956 GF) 1 8 4/17/2012 FY2013 - Strategic Position IAA Investment • Inmate Service Coordinator • Airport Manager • Water Operator • Wastewater positions • Total investment - $596,984 ($54,901 GF) MARANA 11pr Overall financial summary 9 v 4/17/2012 1 ,r \ N. y1ARAI A FY2013 General Fund ,, Summary ,,,\ rx s.rT�� 1 Revenues FY20l 2 Budget c= rise z��_ - $ Change Change $ Sales Tax Revenues 20,001,725 E 334,670 2% Other Agency Revenues 6,979,466 842,125 120 Licenses, Fees &Permits 1,994,250 - 353,000 180 Charges for services 955,470 ' (574,370) -600 Fines and forfeiture 660,000 - (90,000) -14% Grants and contributions '20,511 82,239 401% Investment Income 90,000 ---- -- - 10,000 11% Miscellaneous revenues 544,547 -- ""_ _"_ 37,523 7% Total Revenue 31,245,969 ;`'� 995,187 3% Expenditures _ -_ - ___._ _ Personnel & benefits 20,157,992 773,453 4% Contracted services 3,831,129 - (608,382) -16% Operating supplies & equip 3,169,365 4,639 Oho Capital outlay 1,874,923 - WO_ 224,077 12% Total Expenditures $ 29,033,409 $ 393,787 1% Revenues over(under) expenditures , 2,212,560 `. - -. - "r� =r= 601,400 27% Other financing sources (uses): Loan proceeds - (750,000) > 100% Transfers out 2, 909,840 164,880 60 Total other financing sources - - - - - - - - - (uses): $ 2,909,840 --` $ (585,120) -200 Total $ (697,280)T, $ 1,186,520 -1700 * Both the FY2012 and FY2013 budgets exclude contingency 'ViARAI�A Contracting Sales Taxes II • Current excess funds are one -time sources • In January we discussed the need to identify a strategy to move the 1 cent back to the appropriate fund (Resolution 2001 -008) • Current excess can be: - Maintained within General Fund and allocated toward one -time projects (i.e. CIP projects) - Allocated back to the Transportation Fund ('/2 cent) for transportation improvements - Other one -time projects or programs 10 w 4/17/2012 ,T.:>\. VIARANA I mpact on Reserves -..::::.:;--...-., . $21 19,3 20.2 $18 15.1 16.4 16.6 .' $15 11. 14.5 10.7 8.1 8.3 7 9 8.1 $12 8.6 � 8.6 8.8 7.7.7,4 8J 9 0 $9 5.T $6 / ,/ R / 1 $o ry 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011-12 2012 -13 Budget Estimated Required Reserve ' Available • Total • Established reserve policy target- 25% of expenditures Reserves are a one -time resource • Healthy reserves are required to: - Provide for overall cash needs (liquidity) - Provide capacity for major, unanticipated events - Maintain overall credit rating N IARANA Next Steps ii\ Date Area April 24, 2012 Study session - Enterprise funds, CIP, pavement preservation May 8, 2012 Tentative study session (if required) May 15, 2012 Consider the adoption of the changes to the comprehensive fee schedule and establish an effective date May 15, 2012 Consider the approval of the tentative budget June 19, 2012 Consider the adoption of the final budget milmob 11