Priority Planning Session March 11, 2011. Priority Setting Session Overview FY 2011 – How did we...

Priority Planning SessionMarch 11, 2011

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Overview

• FY 2011– How did we get here – Historical Review– Business Plan– BAR– Budget Balancing Initiative/Challenge Grant Update

• FY 2012– Economic Forecast– Multi-Year Forecast– Surveys– Emerging Issues– City Council Priorities– Budget Calendar

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Historical Review

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Historical Review

• FY 2009– Real estate market plummets nation-wide– City unemployment high of 8.3% in June 2009 – FY 2009 sales tax receipts 6% ($2.9m) below budget– Property taxes remain strong for the fiscal year

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Historical Review (cont.)

• FY 2010:– Property taxes: (0.4%) decrease over FY 2009– Sales taxes: 1.7% increase over FY 2009 collections, largely

due to the entertainment district and Cowboys Stadium• FY 2011:

– Property tax collections: (7.5%) decrease from FY 2010 Budget

– Sales taxes: 3.3% increase from FY 2010 Budget– Total revenue decrease of $5.4m from FY 2009 Budget

across all operating funds

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Historical Review (cont.)

• FY 2011 (cont.)– General Fund expenditures: (3.2%) decrease from FY

2009 Budget (net of FY 2011 one-time expenditures)– $4.8m in Challenge Grants

• FY 2010 and 2011 reduced 70 positions from FY 2009

• FY 2012 outlook– ($2.5m) projected deficit– $2.4m continuation of Challenge Grant program

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Highlights of the Business Plan

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Highlights of the Business Plan

• Departments managing 115 projects in FY 2011

• Projects allocated by priority creating greater alignment

• Department collaboration for multiple projects

• Better linking of performance and project status

• Business Plan is evolving

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Highlights of the Business Plan

• Highlights:– Neighborhood Planning Efforts

• BEC• Reach

– Volunteer Hours

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Highlights of the Business Plan

• Highlights:– Johnson Creek– Fire Apparatus– I-30 / Collins Property– Airport Security– E-builder– Energy Efficiency Update– TechComm

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1st Quarter BAR

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1st Quarter BAR

Revenue Outlook• The General Fund is projecting to be approximately

$1 million better than budget in revenues. The revenue sources below are projected to vary from budget as noted :– Sales taxes, $900,000– Property taxes, ($200,000) – Gas well inspections/Re-inspections, $770,000– Franchise fees, ($440,000) (landfill royalties)

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1st Quarter BAR

Expenditure Outlook• The General Fund is projecting to be approximately

$628,000 under budget in expenditures, primarily due to:– Fire under by $137,000– Community Services under by $149,000– Police under by $219,000– Other departments under by $123,000– 52 General Fund vacancies

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1st Quarter BAR - General Fund

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1st Quarter BAR - Water Utilities

• Revenues: $2.2 million under budget– Total water charges: ($1.1 million)– Total sewer charges: ($915,000)

• Expenditures: $4 million under budget– Debt service: ($1.2 million)– Chemical supplies: ($1.2 million)– Personnel: ($560,000)

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1st Quarter BAR - Water Utilities

Adopted Estimated VarianceFY 2011 FY 2011

BEGINNING BALANCE 384,176$ 384,176$ -$

TOTAL REVENUES 115,912,590$ 113,684,428$ (2,228,162)$

TOTAL INTERFUND TRANSFERS (16,862,675)$ (16,862,675)$ -$

TOTAL AVAILABLE FUNDS 99,434,091$ 97,205,929$ (2,228,162)$

TOTAL EXPENDITURES 99,073,662$ 95,049,000$ 4,024,662$

ENDING BALANCE 360,429$ 2,156,929$ 1,796,500$

WATER AND SEWER FUNDFY 2011 1st Quarter Operating Position

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1st Quarter BAR

• All other funds are at or under budget in expenditures.

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Budget Balancing Initiatives /

Challenge Grants

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Budget Balancing Initiatives/Challenge Grants

• Revenue Enhancement• Centralized Cashiering • Call Center Consolidation• Workforce Pooling• Organizational Restructuring• Competitive Services

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Budget Balancing Initiatives/Challenge Grants

• Energy Management• Workforce Ambassadors• Neighborhood Enhancement• Economic Development/Job Creation• Procurement/ Partnerships• Our Community, Our Kids

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Budget Balancing Initiatives/Challenge Grants

• Budget: a total of $4.8 million transfer from Business Continuity Reserve (BCR) to General Fund in FY 2011

• $1.2m identified to date to address FY 2012 Challenge Grants

• $3.6m still needs to be identified

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Budget Balancing Initiatives/Challenge Grants

• Graffiti abatement• Environmental education program• Police response policies• Ventana Grille

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Economic Forecast

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Economic Forecast

• City monitors national, state, and local economic data

• Used in planning processes• Arlington looking better than state, nation• National recovery is projected to strengthen

throughout 2011 and into 2012

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Multi-Year Forecast

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Multi-Year Forecast

Assumptions• AV down 2% in FY 2012, flat in FY 2013, 2% increase FY 2014 going

forward• Sales tax – up 2% from FY 2010 actual in FY 2012 (FY 2011 revenue is

impacted by Super Bowl), 3% increase FY 2013 going forward• Half of Challenge Grants carried forward in FY 2012, eliminated in FY 2013

going forward• No compensation increase in FY 2012, 3% increase in FY 2013 going

forward• 8% increase in health insurance beginning in FY 2012 and going forward• TMRS increase of $500,000 through FY 2016• Additional $750,000 to cover COPS grant in FY 2012 & FY 2013• No funding for Fire apparatus included in out years• 1% increase in supply costs per year, no staffing increases included

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Multi-Year Forecast

Long Range Plan: FY 2011 - FY 2016General Fund Operating Position

FY11 AdoptedFY11 Estimate -

1st Qtr BAR FY12 Projected FY13 Projected FY14 Projected FY15 Projected

GENERAL FUND REVENUES 197,626,320$ 198,646,107$ 194,345,727$ 196,480,877$ 200,196,928$ 204,012,307$

INTERFUND TRANSFERS: Water and Sewer Fund 3,313,328$ 3,313,328$ 3,313,328$ 3,313,328$ 3,313,328$ 3,313,328$ Conv. & Event Svcs. Fund 354,748 354,748 354,748 354,748 354,748 354,748 Stormwater Fund 337,557 337,557 337,557$ 337,557$ 337,557$ 337,557$ Challenge Grants 4,807,364 4,611,225 2,403,682 - - - One-time Funds 1,242,030 1,242,030 - - - - To Health Insurance Fund - - - - - - To APFA Fund (845,000) (845,000) (845,000) (845,000) (845,000) (845,000) Special Transportation Fund (1,048,000) (1,129,729) (1,048,000) (1,048,000) (1,048,000) (1,048,000) To Parks Performance Fund (2,232,851) (2,232,851) (2,065,685) (1,898,519) (1,898,519) (1,898,519) To Street Maintenance Fund (2,301,527) (2,301,527) (2,301,527) (1,932,278) (1,932,278) (1,932,278) To Traffic (3,194,347) (3,194,347) (3,194,347) (3,194,347) (3,194,347) (3,194,347)

INTERFUND TRANSFERS 433,302$ 155,434$ (3,045,244) (4,912,511) (4,912,511) (4,912,511)

TOTAL AVAILABLE FUNDS 198,059,622$ 198,801,541$ 191,300,483$ 191,568,366$ 195,284,417$ 199,099,796$

GENERAL FUND EXPENDITURES 198,049,420$ 197,420,804$ 193,801,433$ 197,783,135$ 203,603,356$ 209,645,733$

ENDING BALANCE 10,202$ 1,380,736$ (2,500,950)$ (6,214,768)$ (8,318,939)$ (10,545,937)$

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FY 2011 Citizen Survey

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FY 2011 Citizen Survey

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FY 2011 Citizen Survey

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FY 2011 Citizen Survey

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FY 2011 Citizen Survey

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FY 2011 Citizen Survey

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FY 2011 Citizen Survey

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FY 2011 Citizen Survey

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FY 2011 Citizen Survey

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FY 2011 City Survey

64.8

66.9

85.2

85.7

85.8

90.5

96.7

96.9

99.2

105.7

106.3

106.5

113.0

- 20.0 40.0 60.0 80.0 100.0 120.0

Arlington

Grand Prairie

Keller

Fort Worth

Mansfield

Garland

Houston

Dallas

Richardson

Corpus Christi

Irving

Grapevine

Southlake

FY 2011 Employeesper 10,000 Citizens

Average: 92.6

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FY 2011 City Survey

$541

$559

$563

$591

$607

$681

$722

$735

$774

$794

$945

$976

$1,142

$- $200 $400 $600 $800 $1,000 $1,200 $1,400

Arlington

Grand Prairie

Keller

Garland

Mansfield

Corpus Christi

Fort Worth

Houston

Dallas

Irving

Richardson

Grapevine

Southlake

FY 2011 General FundExpenditures per Capita

Average: $741

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FY 2011 City Survey

$0.3500

$0.4422

$0.4620

$0.5761

$0.5822

$0.6352

$0.6388

$0.6480

$0.6700

$0.7046

$0.7100

$0.7970

$0.8550

$- $0.20 $0.40 $0.60 $0.80 $1.00

Grapevine

Keller

Southlake

Irving

Corpus Christi

Richardson

Houston

Arlington

Grand Prairie

Garland

Mansfield

Dallas

Fort Worth

FY 2011 Ad Valorem Tax Rates

General Fund Rate Debt Rate

Average: $0.6209

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FY 2011 City Survey

$270

$292

$324

$367

$402

$428

$456

$476

$486

$512

$618

$667

$929

$0 $200 $400 $600 $800 $1,000

Corpus Christi

Arlington

Garland

Grand Prairie

Houston

Keller

Irving

Fort Worth

Mansfield

Dallas

Richardson

Grapevine

Southlake

FY 2011 Tax Levy Per Capita

Average: $479

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COA Value

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COA Value

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COA Value

The Citizens of Arlington are

getting good value for their money!

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Emerging Issues

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Emerging Issues

• Legislative impacts

• Franchise Fees

• School funding

• Public safety communication equipment

• Air quality

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Council Priorities

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Council Priorities

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FY 2012 Budget Calendar

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2012 Budget CalendarMon., May 2 Preliminary Property Tax Roll Available

Tues., Jun. 14 2nd Quarter BAR / Business Plan Update

Mon., Jul 25 Certified Property Tax Roll available

Tues., Aug. 2 FY12 Proposed Budget presentation to City Council

Tues., Aug 9 Council budget retreatResolution on maximum tax rate / Resolution calling public hearings

Late Aug. Town Hall meetings

Tues., Aug 30 Special 2nd Public Hearing on Tax Rate

Thurs., Sept. 8 Special Meeting to adopt the FY 2012 Budget and Tax Rate - First Reading

Tues., Sept 13 Adopt the FY 2012 Budget and Tax Rate - Second Reading

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Questions