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Home My WebLink AboutCouncil Presentation 01/11/2022 Budget Meeting to Council UpdateFISCAL YEAR 2022-2023: BUDGET PLANNING January 11, 2022 BUDGET BRIEFING Strategic Plan, Vision & Focus Areas Current Year Accomplishments General Fund FY2023 Preliminary Outlook Council Discussion Items ITEMS FOR DISCUSSION 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 BUDGET BRIEFING Terry Rozema Town Manager ACCOMPLISHMENTS & INITIATIVES BUDGET BRIEFING Yiannis Kalaitzidis Finance Director BUDGET OUTLOOK BUDGET BRIEFING Key Forecasting Assumptions: Cautious projection of slow revenue growth Sales Tax: Slight increases to consumer spending and business growth Intergovernmental: Population growth of 3,266 or 6.3% (2020 Census to July 2021) License, Permits, & Fees: ~1250 new home permits and continued commercial activity Inflation Rate: 6.8% (YoY November 2020) FY2023 PRELIMINARY OUTLOOK BUDGET BRIEFING Sales Taxes High improvements in key areas (Year-Over-Year): Retail: 27.9% Utilities: 3.7% Construction: -10% Restaurants: 20.2% All Others: 5.3% FY2023 PRELIMINARY OUTLOOK 2022 Budget 2023 Prelim Budget $ Change % Change 30,950,841 36,215,051 5,264,210 17.0% $0 $1 $2 $3 $4 $5 Utilities Construction Restaurant & Bar All OtherMillionsHistoric Collection by Major Tax Category FY2021 FY22 Estimated FY22 Budget FY23 Projected $0 $5 $10 $15 $20 $25 RetailMillions BUDGET BRIEFING Shared Revenues Improvements in revenues & Census population counts: Shared Sales Tax: 14.9% Shared Income Tax: 8.2% Auto Lieu Tax: -3.6% Will change based on March estimates by ADOR and US Census estimate FY2023 PRELIMINARY OUTLOOK 2022 Budget 2023 Prelim Budget $ Change % Change 14,620,322 15,969,688 1,349,366 9.2% 9.8% 3.5% 4.9%4.8% 1.6% 4.6%4.4% 0% 2% 4% 6% 8% 10% 12% 2022 2023 2024 2025 Arizona Revenue Growth Current Estimate Prior Year Estimate * Data provided by JLBC Budget Update 10/28/2021 Year Over Year Revenue Growth Forecast FY22-FY25 BUDGET BRIEFING FY2023 PRELIMINARY OUTLOOK Licenses, Permits & Fees Single Family Residential (SFR) permits: SFR’s –FY2022 Budgeted: 940 Thru Dec. 31st: 654 SFR’s –FY2023 Prelim. Budget: ~1,250 2022 Budget 2023 Prelim Budget $ Change % Change 3,572,000 5,000,000 1,428,000 40.0% 687 794 802 855 1,067 654 940 0 200 400 600 800 1,000 1,200 2017 2018 2019 2020 2021 2022 2022 Budget SFR Building Permits by Fiscal Year BUDGET BRIEFING FY2023 PRELIMINARY GENERAL FUND SUMMARY Note 1: Sales tax revenue projections for FY2023 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 (~March 2022). Revenues FY2022 Adopted Budget FY2023 Prelim Budget FY202 $ Change FY2023 % Change Sales tax revenues $ 30,950,841 $ 36,215,051 $ 5,264,210 17.0% Shared revenue 14,620,322 15,969,688 1,349,366 9.2% Licenses, fees & permits 5,843,300 8,633,800 2,790,500 47.8% Other 2,320,879 2,201,471 (119,408)-5.1% Total Revenue 53,735,342 63,020,010 9,284,668 17.3% Summary FY2022 Adopted Budget FY2023 Prelim Budget FY202 $ Change FY2023 % Change Ongoing 49,651,847 57,228,465 7,576,618 15.3% One-time 4,083,495 5,791,546 1,708,051 41.8% Total Revenue $ 53,735,342 $ 63,020,010 $ 9,284,668 17.3% BUDGET BRIEFING Preliminary new ongoing revenue $ 7,576,618 Preliminary Fiscal Impacts: Health insurance (5%)239,884 Workman's comp (10%)65,483 Team Performance Pay Increase (3%)1,185,391 Total impacts before other costs 1,490,758 Preliminary revenue available for other costs $ 6,085,860 GENERAL FUND: PRELIMINARY FISCAL IMPACTS •No major anticipated changes to ASRS or PSPRS retirement contributions at this time. •The Town is preparing a compensation study that might impact available revenue amounts presented above. BUDGET BRIEFING Departments will submit limited growth budgets (ongoing non-personnel) Increased ongoing budgets only when supported by: Increased program revenue Federal, State or other mandate Program expansion due to growth One-time supplemental requests will be considered Reallocation of existing budget capacity within budget line items FY2023 –BASELINE BUDGETS BUDGET BRIEFING FY2023 BUDGET PROCESS KEY DATES Dates:Stage in Budget Process Description January 11, 2022 Planning Preliminary budget outlook & Council goals/objectives January 28,2022 Preparing Base department budgets and preliminary carryover requests due to Finance March 1 –9, 2022 Preparing Department budget Town Manager review April 26, 2022 Reviewing Manager’s Recommended Budget May 17, 2022 Approving Presentation & adoption of Tentative Budget & Comprehensive Fee Schedule June 14, 2022 Approving Adoption of Final Budget BUDGET BRIEFING Terry Rozema Town Manager PREPARING FOR FY2023 COUNCIL DISCUSSION BUDGET BRIEFING Community Needs Council strategic initiatives Key opportunities Other areas or items to consider COUNCIL DISCUSSION ITEMS DISCUSSION BUDGET BRIEFING GENERAL FUND: FUND BALANCES •FY2021 Estimated Fund Balance: $71.3M •One-time resources which can provide: Liquidity, Flexibility, Capacity $8.2 $8.9 $9.3 $10.3 $11.0 $11.2 $11.8 $11.2 $13.4 $10.2 $9.7 $7.0 $7.9 $8.6 $14.6 $24.3 $41.6 $41.9 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 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*MILLIONSGENERAL FUND RESERVES Target Reserve Available BUDGET BRIEFING BUDGET BRIEFING ACCOMPLISHMENTS &INITIATIVES Selected Accomplishments: ½ cent sales tax increase approval Strategic Plan update Marana Citizens’ Forum reconvened Airport Tower siting study Compensation study Updated LDC added to Town Code Adoption of new Public Nuisance & Property Preservation ordinance Approval of new employee benefits (shift diff pay, 2nd language pay, holiday pay) Upcoming Initiatives: Design of multigen. community center/aquatics facility Tower Program continuation Tangerine Rd. phase 2 widening design 2022 legislative session RTANext project coordination Maintain structurally balanced budget Performance tracking for Town Strategic Plan