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Home My WebLink AboutCouncil Presentation - Manager's Recommended BudgetMANAGER'S RECOMMENDED BUDGET Ad� MARANA VI r C, L yE` 4 24 25 ADUR / TEE • Accomplishments • Economic Outlook • Revenue Outlook • Budget Overview • Investment Summary • Selected Budget Summaries • Next Steps Overview 2 dedicated service We are dedicated to service excellence. teamwork Tw We trust and value each other. engaged innovation is We do what it takes to make the Town of Marana better. respect D 7i We treat everyone in our community (both employees and citizens) like family. Strategic Plan V Marana is a trailblazing Vision community that raises the quality of life C, L YE` 4 24 2 5 { ',OUR bar for the best Mission Five -Star service for a thriving community 51 G P L yF 24 p 2 5 �� Completed Gladden Farms Dog Park Accomplishments Completed Gladden Farms Baseball & Softball Fields Completed Tortolita Preserve Trailhead Project Completed Design of Marana Community & Aquatic Center 5 G P L yF 24 p 2 5 �� Accomplishments Began construction of the Shared Use Path at CalPortland project MPD Awarded Re -Accreditation Certification from ALEAP Arizona Department of Water Resources granted the Town's DAWS modification application Water Conservation Plan nearing completion G P L yF 24 p 2 5 �� Accomplishments Transportation Master Plan nearing completion Facilities Master Plan nearing completion Kicked -off Tourism Master Plan Launched new Discover Marana website 7 FY2025 Manager's Recommended Budget G p► L kE, 4 24 125 LU 2T � y ��C ■ 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 C, L YE` 4 24 2 5 ",OUR /TEE ECONOMIC OUTLOOK F/Y 2025 Economic Outlook • Revenue growth slowing 6.0% down but no trend yet 5.0' 4.0 • Income taxes lower by 7%- 3.0% 2.0 15% in FY24, up by 0.5%-6% 1.0% in FY25 -1.0% • Supply disruptions continue -2.0% • Forecasting still uncertain -3.0% -4.0 FAC Forecast - April 2024 Net % Revenue Growth 24 25 26 27 ❑January ■April *Finance Advisory Committee (FAC), April 2024 meeting book 10 G P L yF 24 p 2 5 �� F/Y 2025 Economic Outlook • National Unemployment Rate - 3.8% • National Inflation is "Sticky" - 3.5% • (from 9.1 % peak in June, 2022) • Retail sales reduced growth but still strong • Interest rate cuts (0-2 in 2024) • Fed - continues to keep a close eye on indicators • Housing affordability is low - not likely to improve • "Soft Landing" for the economy is still possible REVENUES OUTLOOK C, L YE` 4 24 2 5 ",OUR /TEE 12 Sales Tax —General Fund Change from F/Y 2024 Budget: 424.4% or $8.6M 0 0 H $50 o $45 $40 $35 $30 $25 $20 $15 $10 $5 Retail: 22.5% 0 Contracting: Utilities: 26.8% 0 Restaurant: _ $43.4 $37.8 $34.0 $36.2 $31.0 $24.4 F/Y 2020-21 F/Y 2021-22 F/Y 2022-23 $44.1 LPL YF 4 24 2 5 1 ",OUR 93.7% 23.4% $43.7 $35.1 Actual Revenue Budgeted Revenue F/Y 2023-24* F/Y 2024-25 Budgeted 13 * Actuals Estimated State Shared Revenues Change from F/Y 2024 Budget: 0 0 H $30 0 $25 $20 Shared Sales Tax: 2.2% Urban Revenue: 17.0% $15.4 $13.0 $_ L F/Y 2020-21 * Actuals Estimated $16.5 $14.6 F/Y 2021-22 $21.3 $20.1 F/Y 2022-23 10. 1 % or -$2.6M ■ Auto Lieu: 10.3% $25.9 725.9 $23.3 F/Y 2023-24* F/Y 2024-25 Budgeted Actual Revenue Budgeted Revenue Licenses., Fees & Permits LPL YF 4 24 2 5 1 ",OUR Single Family Residence Building Permits by Fiscal Year (F/Y 2024 Budget: 600) 1,400 1,303 1,194 1,200 1,067 1,000 794 802 855 800 610 600 400 200 0 F/Y 2018 F/Y 2019 F/Y 2020 F/Y 2021 F/Y 2022 F/Y 2023 F/Y 2024* *Fiscal Year 2024 actual is estimated 15 Licenses., Fees & Permits Change from F/Y 2024 Budget: t 52.4% or $2.4M ■ SFR F/Y 2025 Budget: 1,061 F/Y 2020-21 F/Y 2021-2022 $8.8 $8.6 $7.0 Actual $7.4 Revenue $4.6 Budgeted Revenue F/Y 2022-23 F/Y 2023-24* F/Y 2024-25 Budgeted * Actuals Estimated BUDGET OVERVIEW C, L YE` 4 24 2 5 ",OUR /TEE 17 G P► L yF 24 p 2 5 �� Operating, 25% Manager's Recommended Budget Fiscal Expenditure by Category $446.1 Million Debt Se vice, 4% Capital Outlay, 71% Year 2024-2025 Overview Sales Tax, $62.6M, 20% Bonds/loan $37M, 12% Revenues $257.2 Million Intergovernmental, $161.5M, 51 % Uther, Charges for $19.2M, 6% Services, $15.9M, 5% !nses, rermits & Fees, $21.4M, 7% Manager's Recommended Budget Fiscal Year 2024-2025 Overview • Structurally balanced budget • Budget consistent with low growth expectations • Contingency = $5 million GNL kE, 4 24 125 LU 2T � y ��C Operating Budget by Line Item $110.4 Million Personnel and Benefits, $54M, 49% Operating Supplies & Equipment, $31 M, 28% Contracted Services, $25.4, 23% W F/Y 2025 Recommended Budget Summary F/Y 2024 Primary Entity Adopted General Fund $ 77,026,555 Special Revenue Funds 13,051,469 Capital Projects Funds 154,097,667 Debt Service Funds 6,247,451 Enterprise Funds 69,386,635 Internal Service Funds 5,696,168 Primary entity Component Units Special Districts Total 325,505,945 10,755,253 GNL kE, 4 24 125 LU 2T � y ��C F/Y 2025 Recommended $ Change % Change $ 84,852,810 $ 7,826,255 10.2% 12,924,416 (127,053) -1.0% 221,367,254 67,269,587 43.7% 9,087,464 2,840,013 45.5% 97,262,828 27,876,193 40.2% 6,21 1,485 515,317 9.0% 431,706,257 14,381,228 106,200,312 3,625,975 $ 336,261,198 $ 446,087,485 $ 109,826,287 32.6% 33.7% 32.77o 20 Included in the Budget • Compensation adjustments and 31.5 new FTEs • Unfunded liability contribution for PD - $0.5 million • Capital projects - $304.3 million G p► L kE, 4 24 125 LU 2T � y ��C 21 G P L yF 4� 24 2 5 �� too 13 °°❑❑❑ ;.. STRATEGIC POSITIONS RESOURCES & TOOLS Investments & Initiatives L J 1+1 CURRENT EMPLOYEES 22 G P L yF � 24 p LU Current Employees 25 BUR tE Compensation & Benefits adjustments - $4.3m • 4% merit based adjustment (pay grade updates) • Pension rate contributions - • PD Tier 1 and 2 - from 35.09% to 29.25% • Others - mostly slight decreases is 4.1 % increase for health care premiums • Increased uniform allowance for certain positions, on -call and shift differential pay • Increased benefits - parental leave, comp. time, HSA contributions 23 G P L yF 24 p 2 5 �� 31.5 Total New FTEs - Strategic Positions $2.3M ($2.1 M in Gen. Fund) Working Position Title FTE Working Position Title FTE • Cultural Heritage Specialist 0.5 •Tech. Support Specialist II 1 • Police Officer 3 •Public Works Supervisor 1 • Dispatcher 1 •Fleet Coordinator 1 • Permit Technician 2 •Maintenance Associate II (Airport) 1 • Accountant 1 •Tourism Marketing Specialist 1 • License & Tax Specialist 1 Water Billing Specialist 1 • Human Resources Manager 1 24 G P L yF � 24 p Strategic Positions 25LU Community & Aquatics Center 16 FTEs Working Position Title FTE Working Position Title FTE • Operations Supervisor 1 •Tech. Support Specialist II 1 • Recreation Programmer 6 •Custodian 4 • Recreation Program Coordinator 2 •Facilities Technician II 1 • Customer Service Specialist 1 ❖Lifeguards (16 - 48 part-time) ❖Rec. aides (up to 17 part-time) All positions above are only partially funded for F/Y 2025 25 Resources & Tools G p► L kE, 4 24 125 LU 2T � y ��C Budgeted Expenditures $9.OM ($7.5M in Gen. Fund) • Vehicles &Equipment • New & replacement vehicles including delayed purchases • Projects • Technology projects (Permitting/Licensing software, radios, etc.) • Various master plan updates • Utility rate & fee study • Court Room 2, Remodel (design) • MMC & MOC facilities updates &repairs • Tangerine Sky Park, Phase 2 • EL Rio Preserve area projects W BUDGET SUMMARIES C, L YE` 4 24 2 5 ",OUR /TEE 27 G P L yF 24 p 2 5 �� General Fund Budget Summary F/Y 2024 F/Y 2025 Category Budget Recommended $ Change % Change Revenue $ 69,786,496 $ 80,197,776 $ 10,41 1,280 14.9% Expenditures* 72,026,555 79,852,810 7,826,255 10.9% Transfers Out 4,516,981 6,199,246 1,682,265 37.2% Change in fund balance $ (6,757,040) $ (5,854,28% $ 902,760 -13.4% Expenditures • Personnel: 8.3% • Operating Supp & Equip: 423.9% • Contracted Services: 14.1 % • Capital Outlay: 9.0% • Transfers Out: 37.2% * Expenditures exclude contingency of $5 million. General Fund Reserves $120.0 G N L pE, 4 24 2 5 �� 2T � y ��C $100.0 z O $80.0 $60.0 $91.1 $78.3 $71.3 $40.0 $59.9 $42.7 $20.0 $14.6 $23.9 0 $11.2 $12.2 $11.2 $13.4 $18.8 $17.4 $20.0 F/Y 2019 F/Y 2020 F/Y 2021 F/Y 2022 F/Y 2023 F/Y 2024 F/Y2025* Target Reserve Available 29 *Estimated based on projections G P L yF 24 p 2 5 �� Category Revenue F/Y 2024 Budget $ 1,450,000 Bed Tax Fund Budget Summary F/Y 2025 Recommended $ Change $ 1,600,000 $ 150,000 Expenditures 1,950,000 2,140,663 190,663 Change in fund balance $ (500,000) $ (540,663) $ (40,663) Revenue • Sales: 10.3% Change 10.3% Expenditures • Personnel: 54.0% • Contracted Services: 16.8% • Operating Supp & Equip: 9.0% 30 HURF Fund Budget Summary Category Revenue F/Y 2024 Budget $ 5,079,784 F/Y 2025 Recommended $ 4,991,037 $ Change $ (88,747) Expenditures 6,765,028 6,243,633 (521,395) Change in fund balance $ (1,685,244) $ (1,252,596) $ 432,648 Revenue • Intergovernmental: Expenditures C, p► L kE, 4 24 125 LU 2T � y ��C Change -1.7% -7.7% -25.7% 6.4% • Contracted Services: 10.2% • Operating Supp. & Equip: 18.3% • Capital Outlay: 6.9% 31 G P L yF 24 p 2 5 �� Cateao Revenue Expenditures Transfers In Transfers Out Change in fund balance Revenue • Charges for Services: Water Operating Fund Budget Summary F/Y 2024 Budget $ 9,478,546 10,301,621 1,208,373 3,153,585 F/Y 2025 Recommended $ Change $ 10,500,092 $ 1,021,546 11,141,976 840,355 1,254,216 45,843 3,453,062 299,477 $ (2,768,287) $ (2,840,730) $ (72,443) Expenditures 12.3% • Personnel: 6.9% • Contracted Services: v 2.6% • Oper. Supp. & Equip: 18.3% • Capital Outlay: 22.0% Change 10.8% 8.2% 3.8% 9.5% 2.6% 32 Wastewater Operating Fund Budget Summary Cateao Revenue Expenditures Transfers In Transfers Out Change in fund balance Revenue • Charges for Services: F/Y 2024 Budget $ 3,238,055 3,531,314 809,070 F/Y 2025 Recommended $ Change $ 3,775,211 $ 537,156 5,71 1,065 2,864,730 2,179, 751 2,055,660 GNL kE, 4 24 125 LU 2T � y ��C Change 16.6% 61.7% 254.1 2,137,575 1,847,932 (289,643) -13.6% $ (1,621,764) $ (919,056) $ 702,708 -43.3% Expenditures 18.7% • Personnel: 8.1 % • Contracted Services: 24.3% • Oper. Supp. & Equip: 32.6% 33 • Debt Service: 184.4% G P L yF 24 p 2 5 �� Category Revenue Expenditures Transfers In Change in fund balance Revenue • Charges for Services: Airport Operating Fund Budget Summary F/Y 2024 F/Y 2025 Budget Recommended $ Change % Change $ 349,672 $ 370,551 $ 20,879 6.0% 647,162 854,853 207,691 32.1 297,490 484,302 186,812 62.8% $ - $ - $ - 0.0% Expenditures 6.0% • Personnel: 34.1 % • Capital Outlay: $83,000 34 Next Steps Stage in Budget Dates: Task Description Process May 21, 2024 June 18, 2024 Approving Approving Council Adoption of Tentative Budget Council Adoption of Final Budget 35 THANK YOU ?sire "tac w - , a .47 y - r �+ A� MARANA