The URL can be used to link to this page

Home My WebLink AboutCouncil Presentation 04-23-2019 FY2020 Manager Recommended Operating Budget FinalFiscal Year 2019-2020: Recommended Operating BudgetApril 23, 2019 OVERVIEWMANAGER’S RECOMMENDED BUDGETAccomplishmentsNew Investment SummaryFY2020 Revenue OutlookSelected Operating Budget SummariesNext Steps STRATEGIC FOCUS AREASMANAGER’S RECOMMENDED BUDGET Carondelet Micro HospitalNorthwest EmergencyEncantada at the PinesHampton InnMarana Film OfficeAirport new leases; Control TowerDevelopment Services –Improved customer online processesDowntown Overlay Zoning District – More restaurants and shopsMANAGER’S RECOMMENDED BUDGET Ina Commercial CorridorWastewater Treatment FacilityWater Quality EnhancementsPublic Safety Building2040 General PlanSigns OrdinanceBuilding Code UpdatesMANAGER’S RECOMMENDED BUDGET Parks Mobile AppPublic Access to Town RecordsPCWINPolice Virtual TrainingSolar Energy StructuresStreet Pavement Condition InventoryMANAGER’S RECOMMENDED BUDGET Founder’s DayFall FestivalDiscover Marana ToursGastronomy and Taste of the WildMANAGER’S RECOMMENDED BUDGET Crossroads District ParkHonea Heights ParkTangerine Sky ParkSpecial Needs Recreational ProgrammingIncreased Programming and AttendanceSanta Cruz Shared Use Path ExtensionMANAGER’S RECOMMENDED BUDGET RECOGNITIONSTop 10 Best Cities to Live in Arizona (HomeSnacks.com)Top 10 Safest Cities in Arizona (Safewise)Environmental Project of the Year – Small Cities/Rural Communities (So. AZ American Public Works Association)3CMA Award of ExcellenceMANAGER’S RECOMMENDED BUDGET FUTURE DEVELOPMENTCortaro RanchFLSmidth Krebs ExpansionAvion Solar Power FacilityNorth Marana Main StreetMANAGER’S RECOMMENDED BUDGET PLANNING FOR GROWTHLAND USE PLANNING:Land Development Code2040 General PlanWATER CONVEYANCE:North Marana Drainage StudyINFRASTRUCTURE PLANNING:Sewer Conveyance PlanPotable Water PlanParks Master PlanMANAGER’S RECOMMENDED BUDGET INVESTMENTS & INITIATIVESMANAGER’S RECOMMENDED BUDGETKey positions to complement strategic objectives (phased/Strategic PlanFacilities, tools, and vehicles used to complete work assignmentsCombination of tools to retain and reward Marana’s talent INVESTMENTS &INITIATIVESMANAGER’S RECOMMENDED BUDGETCompensation Adjustments: $1,096,8443.5% adjustment. Subject to eligibility criteria.Other pay and benefits: $605,761Health insurance, retirement & other benefits: $465,761Parental leave program: $48,000Employee Rewards and Recognition program: $51,000New Year’s Eve Holiday – Recurring: $41,000Street Lighting Program RESOURCES & TOOLSMANAGER’S RECOMMENDED BUDGETVehicle & Equipment Replacements: $2,078,500Technology:Virtual Machine Disaster Recovery software: $35,000Utility billing software: $100,000 (Water Fund)Facilities:Furniture Replacement Program: $35,000MOC Campus maintenance and improvements: $92,500MMC Campus Waterproofing and Drainage improvements: $126,125Recreation:Park Enhancements: $84,000Other Recreation Enhancements: $57,800 STRATEGIC POSITION INVESTMENTMANAGER’S RECOMMENDED BUDGETWorking Position Title FTE Department Funding SourceCode Enforcement Officer I 1.00 Community & Neighborhood Services General FundBusiness Process Supervisor 1.00 Parks & Recreation General FundPark Maintenance Supervisor 1.00 Parks & Recreation General FundPolice Officer 3.00 Police General FundEquipment Operator 1.00 Public Works General FundFacilities Technician II 1.00 Public Works General FundTraffic Technician I 1.00 Public Works General FundWater Billing Specialist 0.40 Water Water FundWater Quality Technician 2.00 Water Water FundTotal FTE Changes 11.40Salary & ERE Investment: $1,064,027 ($885,857 General Fund) FY2020 ECONOMIC OUTLOOKYiannis KalaitzidisMANAGER’S RECOMMENDED BUDGET PROJECTED LOCAL INDICATORSUnemployment (laborstats.az.gov for February 2019)Arizona: 4.7% (0.0% YoY)Tucson MSA: 4.5% (-0.2% YoY)Marana: 3.4% (-0.3% YoY)Single Family Housing PricesTucson MSA median: $219,900 (3.8% YoY February)MANAGER’S RECOMMENDED BUDGET0.00%1.00%2.00%3.00%4.00%5.00%6.00%17,00018,00019,00020,00021,00022,00023,0002013 2014 2015 2016 2017 2018Unemployment RateLabor ForceMarana Employment DataLabor ForceUnemployment Rate ARIZONA ECONOMY3.5%3.3%6.9%6.2%3.9%3.0%3.7%0%1%2%3%4%5%6%7%8%2016 2017 2018 2019 2020 2021 2022Arizona Revenue Growth** Data provided by JLBC Revenue Update 04/11/2019Year Over Year Revenue GrowthActuals '16-'18 Forecast '19-'22MANAGER’S RECOMMENDED BUDGET FY2020 BUDGET OUTLOOKMANAGER’S RECOMMENDED BUDGET BUDGET OVERVIEWMANAGER’S RECOMMENDED BUDGETPersonnel & Benefits, $34.5MContracted Services, $14.4MOperating Supplies & Equipment, $8.2MOperating Expenses by Category$57.1MGeneral Fund, $46.8M Bed Tax Fund, $1.2M HURF, $3.7MWater Operating Fund, $6.1M Water Reclamation Fund, $1.5MAirport Operating Fund, $0.4M Operating Revenues by Fund$59.6MFY2018-19 Expenses: $55.0M FY2018-19 Revenue: $56.9M SALES TAXESChange from FY2019 Budget: 2.4% or $626KRetail: 2.9%Restaurants: 10.0%Contracting: 13.5%Hotels: 11.6%MANAGER’S RECOMMENDED BUDGET* FY 2018-2019 Actuals are estimated24.225.327.228.522.724.225.826.326.9 $- $5 $10 $15 $20 $25 $302015-16 2016-17 2017-18 2018-19 * 2019-20 BudgetedMillionsActualRevenueBudgetedRevenue STATE SHARED REVENUESChange from FY2019 Budget: 9.3% or $1.1MShared Sales Tax: 9.1%Urban Revenue: 11.1%Auto Lieu: 5.1%Shared Revenue Estimates and Census: HB2483 Allows for an annual update of population by using the U.S. Census Bureau’s estimate. Shared revenues presented here may change once final Census numbers are available by mid-May.MANAGER’S RECOMMENDED BUDGET9.110.711.511.79.110.811.511.712.8 $- $2 $4 $6 $8 $10 $12 $142015-16 2016-17 2017-18 2018-19 * 2019-20 BudgetedMillionsActualRevenueBudgetedRevenue* FY 2018-2019 Actuals are estimated LICENSES, FEES & PERMITSChange from FY2019 Budget: 1.2% or $60KSFR FY2019 Budget: 740 SFR FY2020 Budget: 735MANAGER’S RECOMMENDED BUDGET597668559687794544740-1001003005007009002014 2015 2016 2017 2018 2019 (QTR3)2019BudgetSingle Family Residence Building Permits By Fiscal YearFY18 thru 3rdQtr: 575FY19 thru 3rdQtr: 5444.34.85.65.13.54.04.54.84.9 $- $1 $2 $3 $4 $5 $62015-16 2016-17 2017-18 2018-19 * 2019-20 BudgetedMillionsActualRevenueBudgetedRevenue* FY 2018-2019 Actuals are estimated GENERAL FUND BUDGET SUMMARYMANAGER’S RECOMMENDED BUDGETCategory FY2019 BudgetFY2020 Recommended $ Change % ChangeRevenue $ 44,956,009 $ 46,758,355 $ 1,802,346 4.0%Expenditures 44,467,158 46,183,676 1,716,518 3.9%Transfers Out 4,302,646 4,561,182 258,536 6.0%Change in fund balance $ (3,813,795) $ (3,986,503) $ (172,708) 4.5%* Both FY2019 & FY2020 amounts exclude contingency authorization of $5.0M Expenditures:Personnel & Benefits ( 5.4% or $1.6M)Operating Supplies and Equipment ( 21.1% or $1.2M): Completion of large one-time project – PCWIN; movement of some large projects to the Capital Outlay line item.Capital Outlay ( 113.2% or $1.3M): Vehicle replacements, Facilities remodelFund Balance: One-time for Vehicle Replacement, prior year projects carry-forward MAJOR IMPACTS ON RESERVESMANAGER’S RECOMMENDED BUDGETEstimated Fund Balance @6/30/19 $ 32,368,948 Project Carry Over 1,574,322 Transfers to other funds 2,012,636 Restricted for Debt Service 2,500,546 FY2019-2020 Projects 412,709 Due from Wastewater 3,111,943 Due from Airport 2,013,701 Target Reserve 11,689,589 Unassigned $ 9,053,502 Project Carry Over $1.6M, 5%Transfers to other funds $2.0M, 6%Restricted for Debt Service $2.5M, 8%FY20 Projects $0.4M, 1%Due from Wastewater $3.1, 10%Due from Airport $2.0M, 6%Target Reserve $11.7M, 36%Unassigned $9.0M, 28%General Fund Balance OPERATING IMPACTS ON RESERVESMANAGER’S RECOMMENDED BUDGET22.8 25.0 29.6 32.4 28.4 $0$5$10$15$20$25$30$35$402015-16 2016-17 2017-18 2018-19 Estimated 2019-2020 BudgetedMillionsGeneral Fund Reserve BalancesFund Balance25% Coverage BED TAX FUND BUDGET SUMMARYMANAGER’S RECOMMENDED BUDGETCategory FY2019 BudgetFY2020 Recommended $ Change % ChangeRevenue $ 1,088,016 $ 1,227,600 $ 139,584 12.8%Expenditures 1,088,016 1,227,600 139,584 12.8%Change in fund balance $ - $ - $ - 0.0%Revenue: Sales Tax ( 12.8% or $140K): Based upon increased occupancy and average rates, in conjunction with the recent addition of a hotel in the region.Expenditures:Operating Supplies & Equipment ( 60.9% or $140K): Includes the addition of $337,870 in restricted budget that is reserved for contingency and unanticipated events. HIGHWAY USER REVENUE FUND BUDGET SUMMARYMANAGER’S RECOMMENDED BUDGETCategory FY2019 BudgetFY2020 Recommended $ Change % ChangeRevenue $ 3,276,078 $ 3,655,329 $ 379,251 11.6%Expenditures 3,901,049 4,906,881 1,005,832 25.8%Change in fund balance $ (624,971) $ (1,251,552) $ (626,581) 100.3%Revenue: Intergovernmental Revenues ( 11.4% or $372K): Based on Census preliminary estimate. May change once final estimates are released in mid-MayExpenditures:Contracted Services( 43.4% or $1.2M): Includes carry forward funding for the Town’s Pavement Preservation Program.Capital Outlay ( 37.3% or $249K): Several pieces of equipment are scheduled to be replaced in FY2020. WATER OPERATING FUND BUDGET SUMMARYMANAGER’S RECOMMENDED BUDGETRevenue: Charges for Services ( 4.6% or $258K): Rate revenues are solely based on the existing rate structure plus new account growth. The Town is in the process of a rate study and will bring recommendations forward to Council in the near future.Expenditures:Operating Supplies & Equipment( 13.4% or $222K): Includes costs for increased water quality testing and monitoring.Debt Service ( 145.5% or $753K): Includes loan payment for Water Treatment Plants.Category FY2019 BudgetFY2020 Recommended $ Change % ChangeRevenue $ 5,791,582 $ 6,108,969 $ 317,387 5.5%Expenditures 6,153,934 7,182,668 1,028,734 16.7%Transfers In 222,368 1,073,699 851,331 382.8%Change in fund balance $ (139,984) $ - $ 139,984 -100% WATER RECLAMATION OPERATING FUND BUDGET SUMMARYMANAGER’S RECOMMENDED BUDGETRevenue: Charges for Services( 5.0% or $70K): Rate revenues are solely based on the existing rate structure plus new account growth. The Town is in the process of a rate study and will bring recommendations forward to Council in the near future.Expenditures:Contracted Services( 25.3% or $111K): Includes increased maintenance needs on the sanitary sewer collection system.Capital Outlay ( 31.9% or $17K): Includes the replacement of aging equipment.Category FY2019 BudgetFY2020 Recommended $ Change % ChangeRevenue $ 1,449,602 $ 1,521,045 $ 71,443 4.9%Expenditure 2,258,593 2,379,859 121,266 5.4%Transfers In 809,069 858,814 49,745 6.1%Change in fund balance $ 78 $ - $ (78) -100.0% AIRPORT OPERATING FUND BUDGET SUMMARYMANAGER’S RECOMMENDED BUDGETRevenue: Charges for Services ( 2.8% or $9K): Based anticipated revenue growthExpenditures:Contracted Services( 29.2% or $51K): Decrease associated with one-time projects completed in the current fiscal year.Transfers In( 27.4% or $58K): Represents what may likely be an ongoing, operating subsidy from the General Fund. Airport planning continues in an effort to improve its ability to generate sufficient operating revenues.Category FY2019 BudgetFY2020 Recommended $ Change % ChangeRevenue $ 348,068 $ 357,200 $ 9,132 2.6%Expenditure 575,204 509,293 (65,911) -11.5%Transfers In 209,636 152,093 (57,543) -27.4%Change in fund balance $ (17,500) $ - $ 17,500 -100.0% FY2020 KEY DATESDates:Stage in Budget ProcessTask DescriptionMay 21, 2019Approving Council Adoption of Tentative BudgetJune 18, 2019Approving Council Adoption of Final BudgetMANAGER’S RECOMMENDED BUDGET DISCUSSION & DIRECTIONMANAGER’S RECOMMENDED BUDGET