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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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Vehicles Vehicle replacement $1 ,082,955 $518,155 eCitation Units (Phase III) $86,000 $o Technology , Applicant tracking software $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 4•: OR t C�- !:l'� ":'i:f'.::r -' " 'i ;r`,f�.; {_ � i ,'•� � � r: { ::i,�::?:;:; . +. _ ::i.!::;::i j ^':ii: it 4. . -.: •...., r.- - , -.: 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