HomeMy WebLinkAboutCouncil Presentation - FY23-24 Budget Planning 01/10/2023BUDGET PLANNING
January 10, 2023
BUDGETITEMS FOR DISCUSSION
•Strategic Plan, Vision & Focus Areas
•Current Year Accomplishments
•General Fund FY2024 Preliminary Outlook
•Council Discussion Items
BUDGETSTRATEGIC PLAN
•Vision:
•Marana is a trailblazing community
that raises the bar for the best quality of life.
•Mission:
•Five-star service for a thriving
community.
•Focus Areas:
-Cherished Heritage -Vibrant Community
-Thriving Commerce -Healthy Lifestyles
-Proactive Public Services
BUDGET
ACCOMPLISHMENTS & INITIATIVES
Terry RozemaTown Manager
BUDGET
ECONOMIC & BUDGET OUTLOOK
Yiannis KalaitzidisFinance Director
•Key Forecasting Assumptions:
•Anticipating a “soft landing” with relatively strong employment
•Moderate economic slowdown impacting most revenue categories
•Sales Tax: Moderate reductions to most categories
•Intergovernmental: Adjusted to reflect return to more “normal” income tax filings, inclusive of recent allocation adjustments and salary increases
•License, Permits, & Fees: Reductions in SFR and other development related revenues
•Inflation Rate: 7.1%(YoY November)
FY2024 PRELIMINARY OUTLOOK
•Sales Taxes
•Moderate declines in retail, restaurant, hotels, and most other categories
•Steep declines in construction related collections
FY2024 PRELIMINARY OUTLOOK
•Retail:5.0%
•Utilities:0.0%
•Construction: 40.0%
•Restaurant: 5.0%
•All Others: 5.0%
2023 Budget 2024 Prelim Budget $ Change % Change
36,215,052 33,718,033 (2,497,019)-6.9%
0.0
1.0
2.0
3.0
4.0
5.0
Utilities Construction Restaurant &
Bar
All Other Hotel &
Lodging
Collections by Major Tax Category
FY2022 FY23 Estimated FY23 Budget FY24 Prelim.
0.0
5.0
10.0
15.0
20.0
25.0
RetailMillions
•Shared Revenues
•Moderate declines in Shared Sales Tax, Income Tax, and Auto Lieu Tax
FY2024 PRELIMINARY OUTLOOK
•Shared Sales Tax: 5%
•Shared Income Tax: 20%
•Auto Lieu Tax: 5%
Will change based on March estimates by ADOR and US Census estimates
2023 Budget 2024 Prelim Budget $ Change % Change
20,148,736 17,623,542 (2,525,194)-12.5%
6.0%
2.0%
4.0%
4.9%
4.0%4.4%4.7%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2023 2024 2025 2026
Arizona Revenue Growth
Current Estimate
Prior Year Estimate
* Data provided by JLBC Budget Update 10/6/2022
Year Over Year Revenue Growth
Forecast FY23-FY26
•Licenses, Permits & Fees
•Single Family Residential (SFR) permits:
•FY2023 Budget: 1,250
•Thru Dec. 31st: 242
•FY2024 Prelim: 500
FY2024 PRELIMINARY OUTLOOK
2023 Budget 2024 Prelim Budget $ Change % Change
5,000,000 1,900,000 (3,100,000)-62.0%
687 794 802 855
1,067
1,303
242
1,250
0
200
400
600
800
1,000
1,200
1,400
2017 2018 2019 2020 2021 2022 2023 2023
Budget
Single Family Residence Building Permits By Fiscal Year
FY2024 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 2023).
* Excludes ARPA funding received earlier than anticipated (FY2022 vs. FY2023)
Revenues
FY2023 Adopted
Budget
FY2024 Prelim
Budget
FY2024 $
Change
FY2024 %
Change
Sales tax revenues $ 36,215,052 $ 33,718,033 (2,497,019)-6.9%
Intergovernmental revenues* 20,148,736 17,623,543 (2,525,193)-12.5%
Licenses, fees & permits 8,633,000 4,120,500 (4,512,500)-52.3%
Other 2,129,471 2,961,471 832,000 39.1%
Total Revenue $ 67,126,259 $ 58,423,546 $ (8,702,713)-13.0%
Summary
Ongoing $ 61,550,513 $ 57,740,098 $ (3,810,415)-6.2%
One-time 5,575,746 683,448 (4,892,298)-87.7%
Total Revenue $ 67,126,259 $ 58,423,546 $ (8,702,713)-13.0%
GENERAL FUND: PRELIMINARY FISCAL IMPACTS
Preliminary revenue reduction $ (3,810,415)
Potential Fiscal Impacts:
Health insurance (10%)503,755
Workman's comp (10%)72,031
Total impacts before other costs 575,786
Prelim. total revenue reduction & cost increases $ (4,386,201)
FY 2023 unused budgeted ongoing revenues 4,913,864
Preliminary total available ongoing revenues $ 527,663
FY2024 –BASELINE BUDGETS
•Departments to submit budgets that maintain current
service levels & programs (ongoing non-personnel)
•Increased ongoing budgets only when:
•Supported by increased program revenue
•Federal, State, or other mandate
•Needed program expansion due to growth
•One-time supplemental requests will be considered
•Reallocation of existing budget capacity within departmental budgets
FY2024 BUDGET PROCESS KEY DATES
Dates:Stage in Budget
Process Description
January 10, 2023 Planning Preliminary budget outlook & Council
goals/objectives
January 27,2023 Preparing Base department budgets and preliminary
carryover requests due to Finance
Feb. 27 –March 3,
2023
Preparing Department budget Town Manager review
April 25, 2023 Reviewing Manager’s Recommended Budget
May 16, 2023 Approving Presentation & possible adoption of Tentative
Budget
June 20, 2023 Approving Presentation & possible adoption of Final Budget
BUDGET
PREPARING FOR FY2024
COUNCIL DISCUSSION
Terry Rozema
Town Manager
BUDGETCOUNCIL DISCUSSION ITEMS
•Community Needs
•Council strategic initiatives
•Key opportunities
•Other areas or items to consider
GENERAL FUND: AVAILABLE BALANCES & RESERVES
$8.9 $9.3 $10.3 $11.0 $11.2 $11.8 $11.2 $13.4 $16.8 $9.7 $7.0 $7.9 $8.6 $14.6 $24.3
$42.7
$60.1 $47.4
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
F/Y 2015 F/Y 2016 F/Y 2017 F/Y 2018 F/Y 2019 F/Y 2020 F/Y 2021 F/Y 2022*F/Y 2023*MILLIONSTarget Reserve Available