HomeMy WebLinkAboutCouncil Handout 04/08/2014-FY2015 Budget Letter to Council PresentationApril S, 2014
Honorable Mayor and Members of Council,
I am pleased to present to you the Manager's recommended General Fund operating
budget for fiscal year 2015. It is a reflection of Marana's values and priorities for the
coming year. Utilizing the direction provided by Council at the January 14, 2014 study
session, Town staff developed a balanced operating budget for the General Fund which
allocates resources to core priorities in accordance with the Town's strategic plan.
The budget reflects a continued, modest recovery in key revenue categories. Overall
General Fund revenues are expected to increase by approximately 9% to $35.5 million.
Over 90% of the Town's General Fund revenues consist of sales taxes, intergovernmental
revenues (State shared revenue) and development related revenues. while those revenues
are sensitive to fluctuations in the local and national economy, the revenue recovery
mentioned earlier is expected to continue. In fact, there are a number of exciting
commercial and residential projects are either under way or are expected to begin next
budget year.
The revenue recovery has allowed the Town to continue investing in key priorities of
current staff, resources & tools and strategic positions. The continued use of this
investment plan assists Council in the allocation of funding based upon priority and need.
It also allows staff and the community to better understand the financial health of the
organization and where new dollars are being invested.
Council concurrence with the plan on January 14, 2014 formed the baseline for decisions
made in creating the manager's recommended budget for fiscal year 2015. The
investment priority of "current staff' covers salary and benefit costs, retirement and other
related benefits. "Resources & tools" comprises facilities, vehicles and equipment needed
to successfully serve the community. `Strategic positions" identifies new positions that
were either funded in previous years or are critical to the mission of local government
going forward.
The overall fiscal health of the Town's general fund and related reserves remains strong.
The proposed fiscal year 2015 budget is structurally balanced and meets Council's policy
direction as it relates to core community services and programs.
Page Iof9
Accomplishments
The Town of Marana made full use of its strategic partnerships this fiscal year, working
with federal, state and local officials as well as the private sector to deliver projects and
services that improved the lives of its nearly 36,000 residents.
Strategic Plan III
Council will formall y adopt t the Strategic Plan III later this year. Approval will culminate
several months of Council work and community discussions to update and improve a
vital plan. The Town solicited community feedback through an online, open town hall
format. This innovative online feedback tool provided all stakeholders in our community
the opportunity to review and provide comments on the plan. The Strategic Plan III will
continue to guide key decisions including the allocation of resources related to this
budget.
Heritage River Park
Town staff has been bus y working on initial improvements to the farm element of the
park project since acquiring it in May 2012. Elements completed this year include the
installation of new ramadas, display gardens and community gardens. A formal opening
and planting is planned for the Fall. Additional park improvements including the splash
pad, restroom.s and parking lot are expected to be under design by the end of fiscal year
2014 and completed early in 2015.
Branding Effort and Website Redesi n
The Town's Communications and Marketing Division is introduced a Town brand to
promote a community lifestyle that fits the needs of anyone looking for a place to live or
do business. The branding initiative will be closely tied to the Town's efforts to promote
itself to tourists who are looking for a unique place to spend time.
Elements of this branding effort will be incorporated within a redesigned website which
will be launched by the end of the year. The new site will include a number of enhanced
methods to inform and interact with citizens.
The Town appreciates its community partners and pledges to strengthen those
relationships in the coming year to improve the lives of all who live, work and do
business here.
Investment Planning
As the economy and region continue to improve, it is critical to maintain a framework to
guide future decisions. The investment plan will provide a basis to allocate resources to
those areas that are critical in providing and maintaining core services.
Page 2 of 9
Policy Goal — investment
strategy which seeks to
allocate new revenue to key
areas as it becomes
available.
Strategic
Positions
Page 3 of 9
Plan Investments
The following tables describe the Town's investments into the priority areas for the total
town -wide investment and the portions incorporated within the General Fund. These
investments are included within the recommended budget summary presented later.
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$86,000
$o
Technology
other compensation
$537,000
$472,000
adjustments, as appropriate
$14,000
$14,00o
Compensation and benefits
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One -time cultural value
$366,000
$366,000
Shared use path
performance award
$162,000
$150,000
adjustments
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Trail maintenance
a
$122�250
122
$ , 250
Furniture and appliance
$32,500
$17400
$168,000
adjustments
Training and development
Employee training
$2500
$24,000
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tire equipment, mower and
$190,500
$187,500
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Vehicle replacement
$1 ,082,955
$518,155
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$86,000
$o
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$14,000
$14,00o
Maintenance projects
$366,000
$366,000
Shared use path
$
$13 5,000
preservation
Facilities
Trail maintenance
a
$122�250
122
$ , 250
Furniture and appliance
$32,500
$32
replacements
Taser replacement program
$69,800
$0
Park utility vehicles, fleet
Equipment
tire equipment, mower and
$190,500
$187,500
other items
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Page 4 of 9
Summary of General Fund Recommended Budget
Fiscal Year 2015
FY2015
Revenues FY2014 Budget Recommended
$ Change % Change
Sales tax revenues $ 19,498 21,034
1 8%
Intergovernmental revenue 8 8
549,503 7%
Licenses, fees & permits 3,194,225 3
663 21%
Charges for services 396,701 398,500
1 0%
Fines and forfeiture 62500 595,000
(30,000) -5%
Grants and contributions 116 125,400
8,875 8%
Investment Income 1 00 17500
7500 75%
Miscellaneous revenues 504 551
4600 9%
Total Revenue 32,679,575 35, 531, 054
2,851,479 9%
Expenditures
Personnel & benefits 22,036 23
1,743,040 8%
Contracted services 2 3
825 31%
Operating supplies & equip 3 4,478
553,344 14%
Capital outlay 1 977
(320,077) -25%
Total Expenditures $ 29,953 32, 756, 658
2 719 9%
Overl(Uncler) $ 2, 725 6 2
48 2%
Other Sources and (lases)
Transfers out (2,725fi36) (2,774
(48,760) 2%
Total Sources and (Uses) (2, 725, 636) (2 774,396)
(48, 764) 2%
Change in fund balance - -
- 0%
Note 2: Both. the FY2014 and FY20 15 budgets shown here exclude contingency which may only be
utilized when approved by Council. The FY20 15 budget will include a contingency appropriation. The
following describes current year authorizations of contingency:
Resolution No. 2013-087 approved the transfer of up to $200,000 in budgeted expenditure authority from
the general fund contingency line item to the budget of the Construction
and Inspection Division of the
Engineering Department for expenses related to construction of a new
entrance monument and related
vegetation and landscaping at Sandario and Marana Roads.
Resolution No. 2013 -100 approved the transfer of up to $60,000 in budgeted expenditure authority from the
General Fund contingency line item to the professional services line item within the Bed Tax Fund in the
fiscal year 2013 -2014 budget for expenses related to the development of Marana's Destination Marketing
Organization.
Page 6of.9
The charts on the following page present the overall General Fund sources and uses of
projected resources.
FY2014 -2015 General Fund - Sources
Sales tax
revenues
, $21.0
t .i tenses, fees
permits ,
0.9 , 11%
Charges for
services, $0.4 ,
1%
Fines and
forfeiture, $0.6
, 2%
FY2014 -2015 General Fund -Uses
Personnel
benefits , $
, 67%
Contracted
ices, $3.5 ,
10%
Operating
supplies &
:quip, $4.5,
12%
"apital outlay,
$1.0 , 3%
•ans fens out,
$2.8
Summary of Positions
'The largest portion of the Town's operating budget reflects its investment in personnel
and related benefits. Our employees provide the core services that the citizens require
and those costs comprise the largest operating cost within the General Fund at
Page 7of9
Intergovernmen
tal revenue,
approximately 67% of the operating budget. The strategic plan along with the economic
recovery plan will continue to guide the allocation of resources in future years. This
fiscal year 2015 budget recommends the addition of 9.25 full time equivalent (FTE)
positions. The following tables present an overall, multiyear summary of FTE and a
detailed listing of recommended changes for fiscal year 2015.
Multi -year FTE Position Change Summary
r�'r Tr% f% s h �'V rn r% 1 n 'T rn n i A T T 7f1 n 1 C
Budgeted FTE 309.18
Position change from previous
year 7.35
Percentage change from
previous year 2%
313.33 319.33
4.15 6.00
1% 2%
Detailed Listing of Recommended Full Time Equivalent (FTE)
Position Changes for FY2015
Position
Assistant Town Manager
Development Services General
Manager (Vacant)
Senior Accountant
Tourism Development Manager
Police Officer
Crime Scene Specialist
Recreation Assistant
Assistant Public Works Director
(Vacant)
Maintenance Worker
Utilities Water Production
Supervisor
Utilities Construction Inspector
Water Reclamation Mechanic
Total FTE Changes
FTE Department
1.00
Town Manager
(1.00)
Development Services
Administration
1.00
Finance
1.00
Office of Economic and
Tourism Development
2.00
Police
1.00
Police
0.25
Parks
(1.00)
Public Works
2.00 Parks
1.00 Water Utility
325.58
9.25
3%
Funding Source
General Fund
General Fund
General Fund
Bed Tax. Fund
General Fund
General Fund
General Fund
General Fund
General Fund
Enterprise Fund
1.00 Water Utility Enterprise Fund
1.00 Wastewater Utility Enterprise Fund
9.25
Page 8of9
Detailed Listing of Recommended Short Term Temporary (STT) /Term Limited
Temporary (TLT) Position Changes for FY2015
Specialist V 1
Code Enforcement Officer 0.60 Public Works General Fund
Maintenance Workers (Trails) 3.00 Parks General Fund
Total STT /TLT Changes 7.10
Acknowledgements
I would like to thank our department heads, senior management team, finance, human
resources and legal staff for their efforts in submitting their recommendations
incorporated within this recommended budget for fiscal year 2014 -2015.
Respectfully,
Gilbert Davidson,
Town Manger
Page 9 of 9
STT/
Position
TLT
Department
Funding Source
Customer Service Clerk
1.00
Development Services
General Fund
Admin
Police Officer (SRO's)
2.00
Police
Grant Fund
Senior Technology Support
0.50
Police
General Fund
Specialist V 1
Code Enforcement Officer 0.60 Public Works General Fund
Maintenance Workers (Trails) 3.00 Parks General Fund
Total STT /TLT Changes 7.10
Acknowledgements
I would like to thank our department heads, senior management team, finance, human
resources and legal staff for their efforts in submitting their recommendations
incorporated within this recommended budget for fiscal year 2014 -2015.
Respectfully,
Gilbert Davidson,
Town Manger
Page 9 of 9