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HomeMy WebLinkAboutCouncil Presentation 04_27_2021-FY2022 Mgrs Recommended BudgetFiscal Year 2021-2022 Manager’s Recommended Budget 4/27/2021 Terry S. Rozema, Town Manager Overview Accomplishments Economic Outlook Revenue Outlook Budget Overview Investment Summary Selected Budget Summaries Next Steps 2 CORE VALUES 3 5-STAR SERVICE 4 TOP-10 SAFEST CITY” TOP-10 MOST POPULAR CITY TO RELOCATE TO” TOP-10 BEST CITY TO LIVE IN” ACCOMPLISHMENTS Completed the Adonis Road Extension Project Completed construction of two water treatment campuses Adopted the Marana Parks and Recreation Master Plan Voter Approval of the Marana 2040 General Plan Revised temporary Town policies, administrative directives, and emergency proclamation to address COVID-19 Developed and implemented the Business Assistance Program 5 ACCOMPLISHMENTS Marana PD completed the second year of the Arizona Law Enforcement Accreditation Program (ALEAP) Completed construction of the Adonis Lift Station and Force Main Applied for FAA Air Traffic Control Tower Siting Study Grant Completed three ADOT grants at the airport for runway safety improvements, various runway replacements, and replacement of the electrical vault switchgear 6 RESIDENTIAL GROWTH 7 FY2022 Manager’s Recommended Budget Manager’s Recommended Budget –Complete Budget General Fund Special Revenue Funds Capital Projects Funds (including impact fees) Debt Service Funds Internal Service Funds Enterprise Funds Special Taxing Districts 8 ECONOMIC OUTLOOK 9 FY2022 Economic Outlook AZ ranks 6th in Economic Momentum (NGA/NCSL Project) Revenue growth remains strong Boosted by Federal Stimulus 10 FY2022 Economic Outlook State unemployment continues to improve* Recovered 64.5% of job losses Pima County is lagging at 48.1% Full recovery estimated in early 2022 Leisure & Hospitality still recovering Town of Marana projected revenues in FY2021 better than FY2020 by 3% 11 Rounds Consulting Group presentation to JLBC REVENUES OUTLOOK 12 Sales Taxes 13 Change from FY2021 Budget: 26.9% or $6.6M Retail: 22.8% Utilities: 27.1% Contracting: 68.4% Restaurants: 23.4% 27.2 $29.0 $30.5 32.0 25.8 $26.3 $26.9 $24.4 $ 31.0 5 10 15 20 25 30 35 F/Y 2017-18 F/Y 2018-19 F/Y 2019-20 F/Y 2020-21*FY 2021-22BudgetedMillions Actual Revenue Budgeted Revenue Actuals Estimated State Shared Revenues 14 Change from FY2021 Budget: 8.8% or $1.2M Shared Sales Tax: 26.9% Urban Revenue: 10% Auto Lieu: 22.5% 11.5 $12.0 13.1 $14.6 11.5 $11.7 $12.8 13.4 $14.6 2 4 6 8 10 12 14 16 F/Y 2017-18 F/Y 2018-19 F/Y 2019-20 F/Y 2020-21*F/Y 2021-22BudgetedMillions Actual Revenue Budgeted Revenue Actuals Estimated Licenses, Fees & Permits 15 668 559 687 794 802 855 965 0 200 400 600 800 1,000 1,200 F/Y 2015 F/Y 2016 F/Y 2017 F/Y 2018 F/Y 2019 F/Y 2020 F/Y 2021* Single Family Residence Building Permits by Fiscal Year FY2021 Budget: 617) Fiscal Year 2021 actual is estimated Licenses, Fees & Permits 16 Change from FY2021 Budget: 32% or $1.4M SFR FY2022 Budget: 940 5.6 $5.9 $6.0 $5.8 4.5 $4.8 $4.9 $4.4 5.8 1 2 3 4 5 6 7 F/Y 2017-18 F/Y 2018-19 F/Y 2019-20 F/Y 2020-21*F/Y 2021-22BudgetedMillions Actual Revenue Budgeted Revenue Actuals Estimated BUDGET OVERVIEW 17 Manager’s Recommended Budget Fiscal year 2021-2022 Overview 18 Operating, $79.1M, 53% Capital Outlay, $56.4M 38% Debt Service, $12.9M, 9% Expenditures by Category 148.4 Million Sales Tax, $39.9M, 31%Intergovernmental, 40.8M, 32% Licenses, Permits & Fees, 16.2M, 13% Charges for Services, 11.0M, 9% Other, 11.7M, 9% Bonds/loan, 7.7M, 6% Revenues 127.3 Million Manager’s Recommended Budget Fiscal year 2021-2022 Overview 19 Personnel and benefits, 39.5M, 50% Contracted Services, 23.2M, 21% Operating Supplies & Equipment, $16.4M, 29% Operating Budget by Line Item 79.1 Million Structurally balanced budget Baseline budget –reversed prior year budget reductions Budget consistent with pre- pandemic budgets Contingency -$5 million FY 2022 Recommended Budget Summary 20 Primary Entity 2021 Adopted 2022 Recommended $ Change % Change General Fund $ 54,116,449 $ 54,916,798 $ 800,349 1.50% Special Revenue Funds 15,181,378 10,544,985 (4,636,393)-30.50% Capital Projects Funds 28,893,943 32,832,745 3,938,802 13.60% Debt Service Funds 5,917,415 5,908,375 (9,040)-0.20% Enterprise Funds 29,786,160 26,089,031 (3,697,129)-12.40% Internal Service Funds 4,711,332 5,067,470 356,138 7.60% Primary entity 138,606,677 135,359,404 (3,247,273)-2.30% Component Units Special Districts 10,652,588 13,036,512 2,383,924 22.40% Total $ 149,259,265 $ 148,395,916 $ (863,349)-0.60% Included in the Budget State of AZ -$5 million for Tangerine Rd Widening Federal stimulus -$5.8 million for water infrastructure WIFA loan payments for water treatment plants –General Fund, ongoing funding for debt service CFD –New debt issuance requests anticipated Capital projects -$47.3 million 21 Investment & Initiatives 22 Current Employees Compensation & Benefits adjustments -$4.8m ($3.9 in Gen. Fund) 3% merit based adjustment (includes 2% movement of paygrades) Rates unchanged for health care premiums Tuition reimbursement reinstated to $25,000 23 Strategic Positions Working Position Title FTE Police Officer 5 Dispatcher 1 Maintenance Assoc I 5 Maintenance Assoc III 1 Tradesman(Aquatic)1 Recreation Programmer 1 Facilities Tech I 1 Paralegal 1 24 Working Position Title FTE Custodian II 1 Custodian I 3 Real Property Manager 1 Finance Manager 1 Risk Manager 1 Water Operator 1 Civil Engineer 1 Business Services Analyst 1 26 New FTEs -$2.2m ($1.9m in Gen. Fund) Resources & Tools Budgeted Expenditures $3.4m ($3m in Gen. Fund) Vehicles & Equipment New & replacement vehicles including delayed purchases Large area mower for new soccer fields Projects MPD Console Modernization Transportation and Facilities master plan updates MMC & MOC facilities updates & repairs Utility billing software Community Garden Renovation 25 BUDGET SUMMARIES 26 General Fund Budget Summary Personnel: 12.8% Contracted Services: 18.6% 27 Category FY2021 Budget FY2022 Recommended $ Change % Change Revenue $ 44,636,390 $ 53,376,834 $ 8,740,444 19.6% Expenditures 43,516,449 49,916,798 6,400,349 14.7% Transfers In 5,628,966 -(5,628,966)-100.0% Transfers Out 4,514,884 4,286,035 (228,849) -5.1% Change in fund balance $ 2,234,023 $ (825,999)$ 2,568,944 115.0% Capital Outlay: 58.4% Contingency: 52.8% Expenditures General Fund Reserves 28 8.2 $8.9 $9.3 $10.3 $11.0 $11.2 $11.8 $11.2 $13.6 10.2 $9.7 $7.0 $7.9 $8.6 $ 14.6 24.3 35.9 $28.5 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 F/Y 2014 F/Y 2015 F/Y 2016 F/Y 2017 F/Y 2018 F/Y 2019 F/Y 2020 F/Y 2021*F/Y 2022* MILLIONSTarget Reserve Additional Reserves Estimated based on projections Bed Tax Fund Budget Summary 29 Category FY2021 Budget FY2022 Recommended $ Change % Change Revenue $ 1,104,840 $ 1,243,341 $ 138,501 12.5% Expenditures 1,104,840 1,243,341 138,501 12.5% Change in fund balance $ -$ -$ -0 % Revenue Sales: 12.5% Expenditures Personnel: 5.2% Contracted Services: 3.6% Restricted: 73.8% HURF Fund Budget Summary 30 Category FY2021 Budget FY2022 Recommended $ Change % Change Revenue $ 3,281,296 $ 3,917,106 $ 635,810 19.4% Expenditures 4,166,655 4,275,048 108,393 2.6% Change in fund balance $ (885,359)$ (357,942)$ 527,417 -59.6% Revenue Intergovernmental: 19.4% Expenditures Contracted Services: 27.9% Operating Supp. & Equip: 53.5% Capital Outlay: 70.1% Water Operating Fund Budget Summary 31 Category FY2021 Budget FY2022 Recommended $ Change % Change Revenue $ 5,952,872 $ 8,097,282 $ 2,144,410 36.0% Expenditures 7,658,018 8,960,652 1,302,634 17.0% Transfers In 1,112,404 1,217,635 105,231 9.5% Transfers Out -621,320 621,320 100% Change in fund balance $ (592,742)$ (267,055)$ 325,681 -54.9% Revenue Charges for Services: 36.6% Expenditures Personnel: 22.4% Contracted Services: 27.1% Oper. Supp. & Equip: 10.7% Wastewater Operating Fund Budget Summary 32 Category FY2021 Budget FY2022 Recommended $ Change % Change Revenue $ 1,872,178 $ 2,373,902 $ 501,724 26.8% Expenditures 2,497,887 2,670,461 172,574 6.9% Transfers In 809,070 809,070 -0.0% Transfers Out -1,066,400 1,066,400 100.0% Change in fund balance $ 183,361 $ (553,889)$ (737,250)-402.1% Revenue Charges for Services: 27.2% Expenditures Personnel: 6.0% Contracted Services: 8.0% Oper. Supp. & Equip: 20.6% Airport Operating Fund Budget Summary 33 Category FY2021 Budget FY2022 Recommended $ Change % Change Revenue $ 385,336 $ 343,834 $ (41,502)-10.8% Expenditures 585,178 641,443 56,265 9.6% Transfers In 199,842 297,609 97,767 48.9% Change in fund balance $ -$ -$ --% Revenue Charges for Services: 5.0% Miscellaneous: 94.0% Expenditures Personnel: 1.6% Contracted Services: 21.3% Key Dates 34 Dates:Stage in Budget Process Task Description May 18, 2021 Approving Council Adoption of Tentative Budget June 15, 2021 Approving Council Adoption of Final Budget DISCUSSION 35