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Home My WebLink AboutCouncil Presentation - 2-15-24 Council Presentation Fina Budget YiannisBUDGET =-1 wow r+AWL Ad� MARANA .' Yiannis Kalaitzidis Finance Director �` ter. � • NC"pL yy ITEMS FOR DISCUSSION 4 24 isOUR . • General Fund FY2025 Preliminary Outlook • Resources and Liabilities • Council Discussion C, L yE` 4 24 25 ADUR / TEE BUDGET OUTLOOK FY2025 PRELIMINARY OUTLOOK "h�24 LU _> is < Key Forecasting Assumptions: OUR • Soft landing for economy (Mild Recession???) ■ Sales Tax: Little to no growth with increases from new commercial ■ Intergovernmental: Population growth increases ■ License, Permits, & Fees: Continued new home permits and increases from new commercial 0 Dropping Inflation Rate and Fed rate FY2025 PRELIMINARY OUT' _ • Sales Taxes • Increases due to prior year conservative approach and in anticipation of "soft landing" • Retail slight increases from new commercial • Retail: Q 20.9% • Utilities: Q 24.8% • Construction:4 93.7% • Restaurant: Q 23.4% 2024 Budget 2025 Prelim Budget $ Change % Change 35,123,831 43,166,187 (8,042,356) -22.9% N 25 C 0 20 IF U 5 Retail Collections by Major Tax Category 7 6 5 4 3 2 Utilities 1111 Construction Restaurant & All Other Bar ■ FY2023 ■ FY24 Estimated ■ FY24 Budget FY25 Prelim. • All Others: 4 7.8% Hotel & Lodging FY2025 PRELIMINARY OUTLOOK 2024 Budget 2025 Prelim Budget $ Change % Change • Shared Revenues • Shared income tax reset due to legislation to new "normal" distribution, and Auto Lieu Tax below expectations. • Shared Sales Tax: 0.0% • Shared Income Tax: ,D 18.4% • Auto Lieu Tax: 4-10.3% Will change based on estimates by ADOR and US Census estimates (March or April) 25,945,620 22,938,246 (3,007,374) Arizona Revenue Growth Year Over Year Revenue Growth Forecast FY24-FY27 -11.6% Prior Year Estimate Current Estimate 6% 4.9% 4.0% 4.0% 4% 3.0% 3% 2.0% 2% l% Oho -1 -0.6% 2024 2025 2026 2027 Data provided by ABC Budget Update 10/11/2023 FY2025 PRELIMINARY OUTLOOK 2024 Budget 2025 Prelim Budget $ Change % Change • Licenses, Permits & Fees 2,400,000 4,244,000 1,844,000 76.8% • Single Family Residential (SFR) permits: • FY2024 Budget: 600 Single Family Residence Building Permits By Fiscal Year • Th ru J a n . 31 st: 634 1,400 1,303 1,200 1,067 • FY2025 Prelim: 1,061 1,000 794 802 855 800 687 610 634 600 400 200 0 F/Y 2017 F/Y 2018 F/Y 2019 F/Y 2020 F/Y 2021 F/Y 2022 F/Y 2023 F/Y 2024 C' L yE` 4 24 25 Revenues FY2025 PRELIMINARY GENERAL FUND SUMMARY Sales tax revenues Shared revenue Licenses, fees & permits Other Total Revenue FY2024 Adopted Budget $ 35,123,831 25,945,620 4,617,500 4,099,545 69,786,496 FY2024 Adopted FY2025 Prelim Budget $ 43,166,187 22,938,246 6,834,300 6,099,545 79,038,278 FY2025 Prelim FY2025 FY2025 $ Change °Jo Change $ 8,042,356 22.9% -3,007,374 -1 1.6% 2,216,800 48.0% 2,000,000 48.8% 9,251,782 FY2025 13.3% FY2025 Summary Budget Budget $ Change °Jo Change Ongoing 68,218,048 71,525,298 3,307,250 4.8% One-time Total Revenue 1,568,448 7,512,980 $ 69,786,496 $ 79,038,278 5,944,532 $ 9,251,782 379.0% 13.3% Note 1: Sales tax revenue projections for FY2025 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 2024). GENERAL FUND: PRELIMINARY FISCAL IMPACTS Preliminary ongoing revenue Preliminary Fiscal Impacts: Community Center operating placeholder Health insurance (5%) Workman's comp (10%) Pav adiustments includina raises Total impacts before other costs Preliminary revenue available for other costs 8,994,981 * 3,000,000 241,585 75,135 2,500,000 5,816,720 $ 3,178,261 • No major anticipated changes to ASKS or PSPRS retirement contributions at this time. • The Town is preparing a compensation study that might impact available revenue amounts presented above. * Amount includes $3,307,251 of new ongoing revenues and $5,687,731 of FY24 unbudgeted ongoing revenues FY2025 — BASELINE BUDGETS C, L YE` 4 24 2 5 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 FY2025 - BUDGET PROCESS KEY DATES Dates: Stage in Budget Process Description C, L YE` 4 24 2 5 January 26, 2024 Preparing Base department budgets and preliminary carryover requests due to Finance February 15, 2024 Preparing Initial revenue presentation to Council March 5, 2024 Reviewing 5-year CIP presentation to Council April 23, 2024 Reviewing Manager's Recommended Budget May 21, 2024 Approving Presentation & adoption of Tentative Budget & Comprehensive Fee Schedule June 18, 2024 Approving Adoption of Final Budget C, L yE` 4 24 25 ADUR / TEE RESOURCES & LIABILITIES GENERAL FUND AVAILABLE BALANCES - 6/30/23 $100.0 $90.0 $80.0 z0 $70.0 J $60.0 J $50.0 $40.0 $30.0 $20.0 $10.0 $7.9 $10.3 $8.6 $11.0 $14.6 $11.2 $23.9 $12.2 pr $42.7 $1 1.2 $59.9 $13.4 $71.3 $62.8 $18.8 $17.4 F/Y 2017 F/Y 2018 F/Y 2019 F/Y 2020 F/Y 2021 F/Y 2022 F/Y 2023 F/Y 2024* Target Reserve Available LIABILITIES - 6/30/23 Description Amount (millions) TOTAL DEBT Breakdown: TOWN BONDS WIFA CFD TANGERINE IMPROVEMENT DISTRICT FY 2024 Debt Service (Principal & Interest) $56.7 $15.9 $29.4 $3.8 $11 million C, L YE` 4 24 2 5 Per Capita Debt Marana $1,873 Oro Valley $1,291 Sahuarita $1,588 Tucson $1,166 PENSION LIABILITIES $42.7 • Total Debt does not include about $4.5 million of WIFA loans and new MCAC Bonds • Per Capita Debt excludes pension liabilities DEBT PAYDOWN E 8 CFD Bonds 7 WIFA Loans 6 Improvement District 5 Bonds H o 4 3 Excise Tax Bonds 2 GNL kE, 4 24 2 5 �� 2T � cOUR / T4� Water/Sewer Bonds and Loans b `%D� `��D �b `1 `alb �q �� "��% �3 3�` "�� b 31 `�`b 3q �O D\ � pb D��` �� b �1 �O T T rO T T rO T T CO T O CO CO CO CO CO CO Above does not include about $4.5 million of WIFA loans and new Bonds C, L YE` 4 24 The Future W 25 }OVR T ■ Topics for funding growth discussion and direction ■ Varying needs (Town Facilities projects, utility projects, road projects, parks projects, pensions, ongoing maintenance, etc.) ■ Funding sources (existing, ongoing half cent sales tax, debt, etc.) ■ Timing of projects vs. available cash flow (impact fees, etc.) ■ Debt issuance (when, where, distance from existing infrastructure) 0 General Fund participation THANK YOU ?sire "tac w - , a .47 40 y - r �+ A� MARANA