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Home My WebLink AboutCouncil Presentation 01/12/2021- Budget Meeting to Council UpdateFISCAL YEAR 2021-2022: BUDGET PLANNING January 12, 2021 BUDGET BRIEFING Strategic Plan, Vision & Focus Areas Current Year Accomplishments General Fund FY2022 Preliminary Outlook Council Discussion Items ITEMS FOR DISCUSSION 2 BUDGET BRIEFING VISION: Committed to providing exceptional public service, a climate for economic sustainability and a welcoming environment that makes Marana a 5 Star Service organization. OVERRIDING PRINCIPLES: Financial Sustainability Quality Public Service Strategic Partnerships Local Resource Investment STRATEGIC PLAN 3 BUDGET BRIEFING ACCOMPLISHMENTS &INITIATIVES Selected Accomplishments: Parks and Recreation Master Plan Airport LOMR and land rezone Water treatment campus construction Adonis Road Extension project construction COVID19 work transition and budgeting Marana subdivision recreational area requirements update & Subdivision Recreational Area Design Manual Adoption Upcoming Initiatives: 2040 General Plan Implementation Parks & Recreation Master Plan Approval and Implementation Land Development Code Update Critical Infrastructure Funding Federal Control Tower Program Pinal Airpark Annexation RTANext project coordination Maintain structurally balanced budget in wake of COVID19 Update Town of Marana Strategic Plan 4 BUDGET BRIEFING Yiannis Kalaitzidis Finance Director BUDGET OUTLOOK 5 BUDGET BRIEFING Key Forecasting Assumptions: Cautious projection of slow revenue growth Sales Tax: Modest increases to consumer spending and business growth Reduction in Hotel & Lodging Intergovernmental: Population growth of 2,270 or 4.6% (July 2019 to July 2020) License, Permits, & Fees: 850 new home permits and continued commercial activity Inflation Rate: 1.2% (YoY November 2020) FY2022 PRELIMINARY OUTLOOK BUDGET BRIEFING Sales Taxes High improvements in key areas (Year-Over-Year): Retail: 17.1% Utilities: 20.8% Construction: 58.4% Restaurants: 16.2% All Others: 21.1% FY2022 PRELIMINARY OUTLOOK 2021 Budget 2022 Prelim Budget $ Change % Change 24,389,464 29,511,356 5,121,892 21.0% $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 Utilities Construction Restaurant & Bar All OtherMillionsHistoric Collections by Major Tax Category FY2020 FY21 Estimated FY21 Budget FY22 Projected $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 RetailMillions 7 BUDGET BRIEFING Shared Revenues Improvements in revenues & Census population counts: Shared Sales Tax: 18.1% Shared Income Tax: -10% Auto Lieu Tax: 15.2% Will change based on March estimates by ADOR and US Census count FY2022 PRELIMINARY OUTLOOK 2021 Budget 2022 Prelim Budget $ Change % Change 13,435,743 14,034,329 598,586 4.5% 6.9% 10.2% -1.6% 7.8% 1.6% 4.6%4.4% -4% -2% 0% 2% 4% 6% 8% 10% 12% 2018 2019 2020 2021 2022 2023 2024 Arizona Revenue Growth * Data provided by JLBC Budget Update 10/08/2020 Actuals '18-‘20 Forecast '21-'24 8 BUDGET BRIEFING FY2022 PRELIMINARY OUTLOOK Licenses, Permits & Fees Single Family Residential (SFR) permits: SFR’s –FY2021 Budgeted: 617 Thru Dec. 31st: 457 SFR’s –FY2022 Prelim. Budget: 850 2021 Budget 2022 Prelim Budget $ Change % Change 4,427,112 5,346,126 919,014 20.8% 559 687 794 802 855 457 617 0 100 200 300 400 500 600 700 800 900 2016 2017 2018 2019 2020 2021 2021Budget SFR Building Permits By Fiscal Year 9 BUDGET BRIEFING FY2022 PRELIMINARY GENERAL FUND SUMMARY Revenues FY2021 Adopted Budget FY2022 Prelim Budget FY2022 $ Change FY2022 % Change Sales tax revenues $ 24,389,464 $ 29,511,356 $ 5,121,892 21.0% Shared revenue 13,435,743 14,034,329 598,586 4.5% Licenses, fees & permits 4,427,112 5,346,126 919,014 20.8% Other 2,384,071 2,000,000 (384,071)-16.1% Total Revenue 44,636,390 50,891,811 6,255,421 14.0% Summary FY2021 Adopted Budget FY2022 Prelim Budget FY2022 $ Change FY2022 % Change Ongoing 42,996,866 47,368,733 4,371,867 10.2% One-time 1,639,524 3,523,078 1,883,554 114.9% Total Revenue $ 44,636,390 $ 50,891,811 $ 6,255,421 14.0% Note 1: Sales tax revenue projections for FY2021 could change significantly based upon additional data received from ADOR. Additionally, 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 2021). 10 BUDGET BRIEFING Preliminary new ongoing revenue $ 4,371,867 Preliminary Fiscal Impacts: Health insurance (10%)421,199 Workman's comp (5%)25,256 Team Performance Pay Increase (3%)882,000 Total impacts before other costs 1,328,455 Preliminary revenue available for other costs $ 3,043,412 GENERAL FUND: PRELIMINARY FISCAL IMPACTS No major anticipated changes to ASRS or PSPRS retirement contributions at this time 11 BUDGET BRIEFING GENERAL FUND: FUND BALANCES •FY2021 Estimated Fund Balance: $47.5M •One-time resources which can provide: Liquidity, Flexibility, Capacity, among others 25.0 29.6 36.6 46.1 47.5 $0$5$10$15$20$25$30$35$40$45$50 2016-17 2017-18 2018-19 2019-20 2020-21 EstimatedMillionsGeneral Fund Reserve Balances by Fiscal Year Fund Balance 25% Reserve 12 BUDGET BRIEFING Departments will submit pre-pandemic 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 FY2022 –BASELINE BUDGETS 13 BUDGET BRIEFING FY2022 BUDGET PROCESS KEY DATES Dates:Stage in Budget Process Description January 12, 2021 Planning Preliminary budget outlook & Council goals/objectives January 29,2021 Preparing Base department budgets and preliminary carryover requests due to Finance March 1 –12, 2021 Preparing Department budget presentations April 27, 2021 Reviewing Manager’s Recommended Budget May 18, 2021 Approving Presentation & adoption of Tentative Budget & Comprehensive Fee Schedule June 15, 2021 Approving Adoption of Final Budget 14 BUDGET BRIEFING Terry Rozema Interim Town Manager PREPARING FOR FY2022 COUNCIL DISCUSSION 15 BUDGET BRIEFING Community Needs Council strategic initiatives Key opportunities Other areas or items to consider COUNCIL DISCUSSION ITEMS 16 DISCUSSION 17