HomeMy WebLinkAboutCouncil Presentation 01-08-2019 FY2020 Council Budget Study SessionFiscal Year 2019-2020: Budget PlanningJanuary 8, 2019
ITEMS FOR DISCUSSIONBUDGET BRIEFINGStrategic Plan, Vision & Focus AreasCurrent Year AccomplishmentsGeneral Fund FY2020 Preliminary OutlookCouncil Discussion Items
VISION:Committed to providing exceptional public service, a climate for economic sustainability and a welcoming environment that makes Marana Your Town for life.OVERRIDING PRINCIPLES:Financial SustainabilityQuality Public ServiceStrategic PartnershipsLocal Resource InvestmentBUDGET BRIEFINGSTRATEGIC PLAN
Selected Capital ProjectsPublic Safety Facility OpeningTangerine Road ExpansionIna/I-10 Interchange & Street ImprovementsWater Reclamation and Recharge FacilityWater Treatment CampusesVisitor CenterUpcoming InitiativesNorthwest Recharge, Recovery, and Delivery SystemSewer Conveyance PlanNorth Marana Drainage StudyPotable Water PlanLand Development Code2040 General PlanParks Master PlanBUDGET BRIEFINGACCOMPLISHMENTS & INITIATIVES
BUDGET OUTLOOKBUDGET BRIEFINGYiannis Kalaitzidis
KEY ASSUMPTIONS:Continued growth in regional economy and improvement of key revenueshttps://ebr.eller.arizona.edu/economic-forecasts/forecast-datahttps://www.azleg.gov/jlbc/revenuebudgetupdate101118.pdfSales TaxModest increases to consumer spending and local business growthIntergovernmentalPopulation growth of 1,835 or ~4.0% (July 2017 to July 2018)License, Permits & Fees735 new homes and some commercial activity Inflation rate ~2.2% (YoY November 2018)BUDGET BRIEFINGFY2020 PRELIMINARY OUTLOOK
SALES TAXES:Modest improvement in key taxes (YoY)Retail: 2.9% Restaurants: 10.0%Hotels: 11.6%Anticipated reduction in Construction Sales Tax: 13.5%BUDGET BRIEFINGFY2020 PRELIMINARY OUTLOOK2019 Budget 2020 Prelim Budget $ Change % Change26,284,560 26,940,247 655,687 2.5%$0$2$4$6$8$10$12$14$16FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018MillionsCollections by Major Tax CategoryRetailConstructionHotel & LodgingRestaurant & Bar
SHARED REVENUES:Modest improvement: census (YoY)Shared sales tax: 2.7% Shared income tax: 4.7%Auto lieu tax: 3.6%Will change based on ADOR estimates due by March and US Census population estimatesBUDGET BRIEFINGFY2020 PRELIMINARY OUTLOOK2019 Budget 2020 Prelim Budget $ Change % Change11,748,196 12,194,007 445,811 3.8%3.3%6.9%6.0%4.1%3.7%4.0%2%3%4%5%6%7%8%2017 2018 2019 2020 2021 2022Arizona Revenue Growth* Data provided by JLBC Revenue Update 10/11/18Year Over Year Revenue GrowthActuals '17-'18 Forecast '19-'22
LICENSES, PERMITS & FEES:Single family residential (SFR) permitsSFR’s – FY2019:740 – Budgeted399 – Thru 12/31/18 (54% of budget)SFR’s – FY2020:735 – Preliminary BudgetNo additional large developments planned for FY2020Revenue change due to permit valuation changesBUDGET BRIEFINGFY2020 PRELIMINARY OUTLOOK2019 Budget 2020 Prelim Budget $ Change % Change4,818,090 4,937,500 119,410 2.5%59766855968779439974001002003004005006007008009002014 2015 2016 2017 2018 2019(QTR 2)2019BudgetSFR Building Permits by Fiscal Year
Note 1: Sales tax revenue projections for FY2019 could change significantly based upon additional sales tax data received from ADOR. Additionally, by development agreement, 45% of monies collected from the mall will be reimbursed back to the developer for public infrastructure.Note 2: Intergovernmental (State shared) revenue projection may change. Final budget will be based upon ADOR projections and USCensus population estimates (March 2019).BUDGET BRIEFINGFY2020 PRELIMINARY GENERAL FUND SUMMARYRevenuesFY2019 Adopted Budget FY2020 Prelim Budget FY2020 $ Change FY2020 % Change Sales tax revenues $ 26,284,560 $ 26,940,247 $ 655,687 2.5%Shared revenue 11,748,196 12,194,007 445,811 3.8%Licenses, fees & permits 4,818,090 4,937,500 119,410 2.5%Other 2,105,163 2,143,931 38,768 1.8%Total Revenue 44,956,009 46,215,685 1,259,676 2.8%SummaryFY2019 Adopted Budget FY2020 Prelim Budget FY2020 $ Change FY2020 % Change Ongoing 42,382,954 44,051,011 1,668,057 3.9% One-time 2,573,055 2,164,674 (408,381) -15.9%Total Revenue $ 44,956,009 $ 46,215,685 $ 1,259,676 2.8%
Note 1 – Estimated New WIFA loan payment in FY2020 for new water treatment project. Ultimate annual loan payments approximately $1.2M. BUDGET BRIEFINGGENERAL FUND – PRELIMINARY FISCAL IMPACTSPreliminary new ongoing revenue $1,668,057 Preliminary impactsHealth insurance costs (9%) 299,167 Worker's comp 64,446Debt service payments¹ 750,000Total impacts before other costs 1,113,613Preliminarily revenue available for other costs $554,444No major anticipated increases to PSPRS retirement contributions
•FY2019 Estimated Fund Balance $24.8M•One-time resources which provide for:• Liquidity • Capacity • FlexibilityBUDGET BRIEFINGFUND BALANCES – GENERAL FUND24.6 22.8 25.0 29.6 24.8 $0$5$10$15$20$25$30$352014-15 2015-16 2016-17 2017-18 2018-19EstimatedMillionsGeneral Fund Reserve BalancesFund Balance25% Coverage
Departments will submit limited growth budgets (ongoing non-personnel)Increased ongoing budgets only when supported by:Increased program revenueFederal, State or other mandateOne-time supplemental requests will be consideredReallocation of existing budget capacity within budget line itemsBUDGET BRIEFINGFY2020 - BASELINE BUDGETS
BUDGET BRIEFINGFY2020 KEY DATESDates: Stage in Budget ProcessTask DescriptionJanuary 8, 2019Planning Council Special Session – adoption of Council goals and objectivesFebruary 19, 2019Planning Council Study Session – Presentation, discussion and possible direction regarding FY2020 – 2025 CIP ProgramMarch 5/12, 2019Reviewing Proposed changes to the Comprehensive Fee ScheduleApril 23, 2019Approving Manager’s Recommended Operating BudgetMay 21, 2019Approving Council Adoption of Tentative BudgetJune 18, 2019Approving Council Adoption of Final Budget
PREPARING FOR FY2020 COUNCIL DISCUSSIONBUDGET BRIEFINGJamsheed Mehta
Community NeedsCouncil strategic initiativesKey opportunitiesOther areas or items to considerBUDGET BRIEFINGCOUNCIL DISCUSSION ITEMS
DISCUSSIONBUDGET BRIEFING