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Home My WebLink AboutCouncil Presentation 01/14/2020 - Budget UpdateFiscal Year 2020-2021: Budget Planning ITEMS FOR DISCUSSION Strategic Plan, Vision & Focus Areas Current Year Accomplishments General Fund FY2021 Preliminary Outlook Council Discussion Items BUDGET BRIEFING ACCOMPLISHMENTS &INITIATIVES Selected Accomplishments: Studies and Plans Utility Rate Study Sewer Conveyance Plan North Marana Drainage Study Pavement Management Downtown Marana Overlay District Marana Airport Rehab Police Department Accreditation CFD Policy BUDGET BRIEFING Upcoming Initiatives: 2040 General Plan Parks & Recreation Master Plan Land Development Code Major Infrastructure Funding Federal Control Tower Program Roadways and Trails Yiannis Kalaitzidis BUDGET BRIEFING BUDGET OUTLOOK Key Forecasting Assumptions: Continued growth in regional economy and key revenues Sales Tax: Modest increases to consumer spending and business growth Intergovernmental: Population growth of 2,110 or 4.5% (July 2018 to July 2019) License, Permits, & Fees: 750 new home permits and continued commercial activity Inflation Rate: 2.1% (YoY November 2019) BUDGET BRIEFING FY2021 PRELIMINARY OUTLOOK Sales Taxes Modest to high improvements in key areas (Year-Over-Year): Retail: 3.5% Construction: 32.1% Hotel & Lodging: 7.3% Restaurants: 9.7% All Others: 5.4% BUDGET BRIEFING FY2021 PRELIMINARY OUTLOOK 2020 Budget 2021 Prelim Budget $ Change % Change 26,910,247 28,614,336 1,704,089 6.3% $0 $2 $4 $6 $8 $10 $12 $14 $16 MillionsHistoric Collections by Major Tax Category Retail Construction Hotel & Lodging Restaurant & Bar Shared Revenues Modest improvements in revenues & Census estimates: Shared Sales Tax: 2.0% Shared Income Tax: 5.0% Auto Lieu Tax: 1.8% Will change based on March estimates by ADOR and US Census population estimates BUDGET BRIEFING FY2021 PRELIMINARY OUTLOOK 3.3% 6.9% 10.2% 4.9% 3.8% 3.4% 4.1% 0% 2% 4% 6% 8% 10% 12% 2017 2018 2019 2020 2021 2022 2023 Arizona Revenue Growth * Data provided by JLBC Revenue Update 11/13/2019 Actuals '17-'19 Forecast '20-'23 2020 Budget 2021 Prelim Budget $ Change % Change 12,840,139 13,272,702 432,563 3.4% Licenses, Permits & Fees Single Family Residential (SFR) permits: SFR’s –FY2020 Budgeted: 735 Thru Dec. 31st: 405 SFR’s –FY2021 Prelim. Budget: 750 BUDGET BRIEFING FY2021 PRELIMINARY OUTLOOK 2020 Budget 2021 Prelim Budget $ Change % Change 4,881,012 5,073,142 192,130 3.9% 668 559 687 794 802 405 735 0 100 200 300 400 500 600 700 800 900 2015 2016 2017 2018 2019 2020 (QTR 2)2020Budget SFR Building Permits By Fiscal Year BUDGET BRIEFING FY2021 PRELIMINARY GENERAL FUND SUMMARY Revenues FY2020 Adopted Budget FY2021 Prelim Budget FY2021 $ Change FY2021 % Change Sales tax revenues $ 26,910,247 $ 28,614,336 $ 1,704,089 6.3% Shared revenue 12,840,139 13,272,702 432,563 3.4% Licenses, fees & permits 4,881,012 5,073,142 192,130 3.9% Other 2,557,269 2,649,419 92,150 3.6% Total Revenue 47,188,667 49,609,599 2,420,932 5.1% Summary FY2020 Adopted Budget FY2021 Prelim Budget FY2021 $ Change FY2021 % Change Ongoing 45,087,493 46,905,039 1,817,546 4.0% One-time 2,101,174 2,704,560 603,386 28.7% Total Revenue $ 47,188,667 $ 49,609,599 $ 2,420,932 5.1% Note 1: Sales tax revenue projections for FY2021 could change significantly based upon additional data received from ADOR. Ad ditionally, by development agreement, 45% of monies collected from the Marana Center will be reimbursed back to the developer for public infrastructure. Note 2: Intergovernmental/shared revenue projections may change. Final budget will be based upon ADOR projections & US Census population estimates (~May 2020). Note 1: Estimated amounts for additional loan payments on Water Quality projects No major anticipated changes to ASRS or PSPRS retirement contributions at this time BUDGET BRIEFING GENERAL FUND: PRELIMINARY FISCAL IMPACTS Preliminary new ongoing revenue $ 1,817,546 Preliminary Fiscal Impacts: Health insurance (13.8%)501,092 Workman's comp (5%)25,361 Increased debt service payments ¹96,978 Total impacts before other costs 623,431 Preliminary revenue available for other costs $ 1,194,115 •FY2020 Estimated Fund Balance: $29.9M •One-time resources which can provide: Liquidity, Flexibility, Capacity, among others BUDGET BRIEFING GENERAL FUND: FUND BALANCES 22.8 25.0 29.6 36.6 29.9 $0 $5 $10 $15 $20 $25 $30 $35 $40 2015-16 2016-17 2017-18 2018-19 2019-2020 EstimatedMillionsGeneral Fund Reserve Balances by Fiscal Year Fund Balance 25% Coverage BUDGET BRIEFING FY2021 –BASELINE BUDGETS Departments will submit limited growth budgets (ongoing non-personnel) Increased ongoing budgets only when supported by: Increased program revenue Federal, State or other mandate One-time supplemental requests will be considered Reallocation of existing budget capacity within budget line items BUDGET BRIEFING FY2021 BUDGET PROCESS KEY DATES Dates:Stage in Budget Process Description January 14, 2020 Planning Preliminary budget outlook & Council goals/objectives February 25, 2020 Planning Presentation,discussion & direction regarding FY2021-2026 CIP Program March 17, 2020 Reviewing Presentation & discussion regarding proposed changes to the Comprehensive Fee Schedule April 28, 2020 Reviewing Manager’s Recommended Budget May 19, 2020 Approving Presentation & adoption of Tentative Budget & Comprehensive Fee Schedule June 16, 2020 Approving Adoption of Final Budget Jamsheed Mehta BUDGET BRIEFING PREPARING FOR FY2021 COUNCIL DISCUSSION COUNCIL DISCUSSION ITEMS BUDGET BRIEFING Community Needs Council Strategic Initiatives Key Opportunities Other Areas of Items to Consider DISCUSSION