CITY OF MONROECITY OF MONROEFISCAL YEAR 2010-2011 FISCAL YEAR 2010-2011 BUDGET PRESENTATIONBUDGET PRESENTATION

EDWARD SELL, FINANCE DIRECTOREDWARD SELL, FINANCE DIRECTOR

Budget DocumentsBudget Documents

Budget DocumentBudget Document Line item budget reportsLine item budget reports Budgeted Positions ReportBudgeted Positions Report

Budget Budget Process/CalendarProcess/Calendar See Calendar HandoutSee Calendar Handout

– April 5, 2010 – First Reading of Budget April 5, 2010 – First Reading of Budget OrdinanceOrdinance

– April 19, 2010 – Second Reading, April 19, 2010 – Second Reading, Public Hearing, AdoptionPublic Hearing, Adoption

– Work sessions scheduled for 3/27, Work sessions scheduled for 3/27, 3/29, 3/30, & 3/31 others scheduled as 3/29, 3/30, & 3/31 others scheduled as neededneeded

– Adoption must occur by April 30, 2010Adoption must occur by April 30, 2010

Budget Budget Process/CalendarProcess/Calendar Includes review of FY09-10 Includes review of FY09-10

budgetbudget Final amendment for FY 09-10 ???Final amendment for FY 09-10 ??? Millage rates, fee increases, and Millage rates, fee increases, and

other budget operating other budget operating authorizations approved with the authorizations approved with the adoption of the budget ordinanceadoption of the budget ordinance

FY 09-10 Budget FY 09-10 Budget Status-General FundStatus-General Fund

As Adopted April 2009

As Amended March 2010

As Projected March 2010

Beginning Fund Balance 3,068,433 3,118,753 3,118,753 Estimated Revenue 17,843,744 18,073,406 18,017,411 Total Available Resources 20,912,177 21,192,159 21,136,164 Estimated Expenditures 17,843,744 18,109,863 18,053,850 Ending Fund Balance 3,068,433 3,082,296 3,082,314

Fund Balance Change - (36,457) (36,439) *** ***

*** - Represents Purchase Orders issued in FY09 that were transferred to FY10

General Fund Budget General Fund Budget FY11FY11 Original budget submitted - $1.6 Original budget submitted - $1.6

million deficitmillion deficit Budget submitted is balancedBudget submitted is balanced Capital budgeted at .98 mills, Capital budgeted at .98 mills,

$841,262$841,262 Former Capital Items now as Debt Former Capital Items now as Debt

Service - .19 mills, $160,285Service - .19 mills, $160,285 All CIP items approved are includedAll CIP items approved are included

PERSONNEL BUDGET PERSONNEL BUDGET ESTIMATESESTIMATES TOTAL FULL-TIME POSITIONS TOTAL FULL-TIME POSITIONS

BUDGETED=162,FY10=182 205-FY09, 239-FY08, 250-BUDGETED=162,FY10=182 205-FY09, 239-FY08, 250-FY05FY05

WAGE INCREASES- 2.00% BUDGETEDWAGE INCREASES- 2.00% BUDGETED HEALTH INSURANCE (MEDICAL AND PRESCRIPTION) –HEALTH INSURANCE (MEDICAL AND PRESCRIPTION) –

1/1/2010 RATES PROVIDED BY BROOKS INSURANCE 1/1/2010 RATES PROVIDED BY BROOKS INSURANCE INCREASED 20% PLUS 10% ON 1/1/2011INCREASED 20% PLUS 10% ON 1/1/2011

POST-RETIREMENT HEALTHCARE – 31.5 TO 34.3% OF POST-RETIREMENT HEALTHCARE – 31.5 TO 34.3% OF PAY (See next slide)PAY (See next slide)

PENSION CONTRIBUTIONPENSION CONTRIBUTION– FIRE (51.53%), POLICE (26.96%), HYBRID (4.6%), FIRE (51.53%), POLICE (26.96%), HYBRID (4.6%),

GENERAL (0.00%)GENERAL (0.00%)– TOTAL CONTRIBUTION $1.568 MILLION, GF - $1.502 TOTAL CONTRIBUTION $1.568 MILLION, GF - $1.502

MILLION ($90k INCREASE)MILLION ($90k INCREASE) ACTUARIAL STUDIES-DUE MAY/JUNE 2010ACTUARIAL STUDIES-DUE MAY/JUNE 2010

Retiree Health Care Retiree Health Care LiabilityLiability $4,873,182 = ARC for FY2010$4,873,182 = ARC for FY2010 $3.0 million budgeted$3.0 million budgeted

– $1.89 million General Fund$1.89 million General Fund 2010 amended budget = $2.775 2010 amended budget = $2.775

millionmillion Pay as you go cost - $2.8 millionPay as you go cost - $2.8 million New actuarial valuation in 2010New actuarial valuation in 2010

General Fund FY 10-11 General Fund FY 10-11 Budget StatusBudget Status

$1,616,526 REPRESENTS STRUCTURAL DEFICIT-FUND BALANCE WOULD BE REDUCED TO $1,465,788

INITIAL REQUESTS

AS SUBMITTED

CHANGE +/-

REVENUE 17,338,926 16,618,839 (720,087) EXPENDITURES 18,955,452 16,618,839 (2,336,613) REVENUE OVER(UNDER) EXPENDITURES (1,616,526) - 1,616,526

BUDGET BALANCINGBUDGET BALANCING

See handoutSee handout– 21 positions eliminated21 positions eliminated– COPS Grant to be cancelledCOPS Grant to be cancelled– Eliminate Ambulance Service, 1 StationEliminate Ambulance Service, 1 Station– Eliminate Tuition Reimbursement BudgetEliminate Tuition Reimbursement Budget– Establish Administrative Services PoolEstablish Administrative Services Pool– Eliminate Mosquito SprayingEliminate Mosquito Spraying– Gates closed at DPSGates closed at DPS– Transition year for Recreation-Pool closed 2010Transition year for Recreation-Pool closed 2010– Elimination of MMSC Operating SubsidyElimination of MMSC Operating Subsidy– 5% Revenue Sharing Reduction5% Revenue Sharing Reduction

Budget BalancingBudget Balancing

ContinuedContinued– Water Fund Loan RefinanceWater Fund Loan Refinance– ALCC Appropriation ReductionALCC Appropriation Reduction– Building Safety Fund Subsidy Building Safety Fund Subsidy

EliminationElimination

Budgeted Full Time PositionsFY2011 FY2005

Presented Year Increase/Budget Classification Budget (Decrease)

2.00 Total City Manager's Office 3.00 (1.00) -33.33%3.50 Total Clerk/Treasurer's Office 7.00 (3.50) -50.00%2.50 Total Assessor's Office 3.60 (1.10) -30.56%- Total Law Department 2.00 (2.00) -100.00%

3.40 Total Finance Department 6.00 (2.60) -43.33%1.00 Total Administrative Services Pool - 1.00 1.50 Total Human Resources 2.00 (0.50) -25.00%5.75 Total Engineering Department 11.00 (5.25) -47.73%

37.50 Total Police Department 52.00 (14.50) -27.88%19.00 Total Fire Department 41.40 (22.40) -54.11%15.75 Total Department of Public Service 29.00 (13.25) -45.69%

3.00 Total Community Development Division 4.50 (1.50) -33.33%1.35 Total City Hall Grounds Division 2.50 (1.15) -46.00%0.88 Total Zoning/Ordinance Enforcement Division 4.40 (3.53) -80.11%1.00 Total Recreation Department 3.00 (2.00) -66.67%

98.13 Total General Fund 171.40 (73.28) -42.75%

Budgeted Full Time PositionsFY2011 FY2005Request Year Increase/Budget Classification Budget (Decrease)

1.50 Total Parking Meter Fund 2.00 (0.50) -25.00%4.28 Total Building Safety Fund 4.60 (0.32) -7.07%

26.50 Total Wastewater Fund 31.00 (4.50) -14.52%28.50 Total Water Fund 33.00 (4.50) -13.64%

0.10 Total Information Systems Fund 3.00 (2.90) -96.67%3.00 Total Stores & Equipment Fund 5.00 (2.00) -40.00%

162.00 Total Full Time Employees 250.00 (88.00) -35.20%

Budgeted Position Budgeted Position Changes by UnionChanges by Union

% %2011 2005 +/- Change 2011 2005 +/-' Change

COMEA 1 39.50 72.00 (32.50) -45.14% 20.45 45.70 (25.25) -55.25%COMEA 2 5.00 5.00 - 0.00% 2.00 1.00 1.00 100.00%POLICE-COMMAND AND PATROL 33.00 45.00 (12.00) -26.67% 33.00 45.00 (12.00) -26.67%ELECTED 1.00 1.00 - 0.00% 1.00 1.00 - 0.00%FIRE 18.00 40.00 (22.00) -55.00% 18.00 40.00 (22.00) -55.00%NON-UNION 12.50 18.00 (5.50) -30.56% 10.68 15.70 (5.03) -32.01%TEAMSTERS 53.00 69.00 (16.00) -23.19% 13.00 23.00 (10.00) -43.48%

TOTAL 162.00 250.00 (88.00) -35.20% 98.13 171.40 (73.28) -42.75%

All Funds General Fund Only

Property Tax Revenue Property Tax Revenue DetailDetail

PTAF=PROPERTY TAX ADMINISTRATION FEE

FY2010 FY2011 +/-

GENERAL OPERATING 13.676 13.726 0.05

REFUSE 1.448 1.448 0

PORT 0.425 0.375 -0.05

BRIDGE 0 0.52 0.52

TOTAL MILLAGE 15.549 16.069 0.52

PTAF* 1.00% 1.00%

* - CHARGED ON ALL MILLAGES

PROPERTY TAX PROPERTY TAX REVENUE-ESTIMATEDREVENUE-ESTIMATED

TAXABLE VALUE FIGURES ARE ESTIMATES AND NOT FINALTOTAL EQUIVALENT TAXABLE VALUE = $857,963,2322011 TOTAL INCLUDES BRIDGE MILLAGE

FISCAL %GENERAL TOTAL 2010 CHANGE

ESTIMATED TAXABLE VALUE 871,956,597$ 871,956,597$ 936,289,920 -6.87%MILLAGE RATE 13.726 16.069 15.549TOTAL TAXES LEVIED 11,968,476$ 14,011,471$ 14,558,372$ -3.76%

DDA/BRA CAPTURED VALUE 25,564,676$ 25,564,676$ 30,611,200$ -16.49%DDA/BRA CAPTURED TAXES 351,852$ 411,912$ 477,051$

NET ADVALOREM TAXES 11,616,624$ 13,599,558$ 14,081,321$ -3.42%

IFT/OPT PROPERTY TAXES 144,099$ 168,696$ 211,016$ -20.06%

TOTAL PROPERTY TAX REVENUE 11,760,723$ 13,768,255$ 14,292,337$ -3.67%

TOTAL REDUCTION = 1.132 MILLS

FISCAL YEAR 2011

STATE REVENUE STATE REVENUE SHARINGSHARING

Actual Actual Actual Actual Actual Actual Projected ProjectedFY01-02 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY10-11

State Revenue Sharing 2,706,145 2,156,938 2,139,543 2,114,941 2,066,280 2,058,108 1,770,000 1,680,000 (58,435) (17,395) (24,602) (48,661) (8,172) (288,108) (90,000) -2.64% -0.81% -1.15% -2.30% -0.40% -14.00% -5.08%

Constitutional 1,442,812 1,467,741 1,502,830 1,506,402 1,504,073 1,476,942 1,389,069 1,318,438 1.53% 2.39% 0.24% -0.15% -1.80% -5.95% -5.08%

Statutory 1,263,333 689,197 636,713 608,539 562,207 581,166 380,931 361,562 -2.64% -0.81% -1.15% -2.30% -0.40% -14.00% -5.08%

State Revenue SharingState Revenue Sharing

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

FY01-02 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY10-11

Actual Actual Actual Actual Actual Actual Projected ProjectedFiscal Year

Revenue Sharing Trend

General Fund RevenueGeneral Fund Revenue

Actual Actual Actual Actual Actual Projected ProjectedFY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY10-11

Property Taxes 13,206,714 13,146,844 13,385,492 13,780,109 13,616,367 13,135,564 12,278,722 State Revenue Sharing 2,156,938 2,139,543 2,114,941 2,066,280 2,058,108 1,770,000 1,680,000 Total 15,363,652 15,286,387 15,500,433 15,846,389 15,674,475 14,905,564 13,958,722 Dollar Change 573,482 (77,265) 214,046 345,956 (171,914) (768,911) (946,842) Percentage Change 3.88% -0.50% 1.40% 2.23% -1.08% -4.91% -6.35%

Total Revenue 18,561,746 18,692,046 18,936,327 19,919,178 18,888,234 18,017,411 16,618,839 % of Total 82.77% 81.78% 81.86% 79.55% 82.99% 82.73% 83.99%

PERSONNEL COST % PERSONNEL COST % OF TOTALOF TOTAL

ACTUAL ACTUAL ACTUAL ACTUAL PROJECTED REQUESTEDDESCRIPTION FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY10-11

TOTAL PERSONNEL COST 14,235,752 14,345,029 15,545,984 13,821,558 12,956,354 11,964,002 PERCENTAGE INCREASE 3.30% 0.77% 8.37% -11.09% -6.26% -7.66%TOTAL EXPENDITURES 18,910,206 18,715,181 19,927,717 18,971,154 18,053,850 16,618,839PERCENTAGE INCREASE 3.04% -1.03% 6.48% -4.80% -4.84% -7.95%PERSONNEL % OF TOTAL 75.28% 76.65% 78.01% 72.86% 71.77% 71.99%

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY10-11

Do

llar

s

Fiscal Year

Personnel Cost Compared to Total Cost

General Fund General Fund ExpendituresExpenditures

2007-08 2008-09 2009-10 2010-11 2010-11ACTIVITY ACTIVITY PROJECTED REQUESTED INITIAL

DESCRIPTION ACTIVITY BUDGET BUDGETPERSONNEL COST 15,545,984$ 13,821,558$ 12,986,354$ 13,747,299$ 11,994,002$ EXPENDITURE CREDITS (1,307,943) (1,051,568) (1,071,616) (1,083,300) (1,167,800) SUPPLIES 481,765 420,062 368,867 372,825 301,357 OTHER OPERATING 4,323,208 4,413,582 4,574,274 4,726,345 4,414,793 DEBT SERVICE 252,136 252,311 252,312 173,536 145,005 CAPITAL OUTLAY 172,730 241,749 39,780 43,780 42,780 TRANSFERS-CAPITAL OUTLAY 393,637 831,160 856,179 841,262 841,262 TRANSFERS-OPERATING 66,200 42,300 47,700 133,705 47,440

19,927,717$ 18,971,154$ 18,053,850$ 18,955,452$ 16,618,839$

PERSONNEL COST 78.01% 72.86% 71.93% 72.52% 72.17%EXPENDITURE CREDITS -6.56% -5.54% -5.94% -5.71% -7.03%SUPPLIES 2.42% 2.21% 2.04% 1.97% 1.81%OTHER OPERATING 21.69% 23.26% 25.34% 24.93% 26.56%DEBT SERVICE 1.27% 1.33% 1.40% 0.92% 0.87%CAPITAL OUTLAY 0.87% 1.27% 0.22% 0.23% 0.26%TRANSFERS-CAPITAL OUTLAY 1.98% 4.38% 4.74% 4.44% 5.06%TRANSFERS-OPERATING 0.33% 0.22% 0.26% 0.71% 0.29%

100.00% 100.00% 100.00% 100.00% 100.00%

PERCENTAGE OF TOTAL

OTHER GENERAL FUND OTHER GENERAL FUND ITEMSITEMS INTEREST INCOME BUDGETED INTEREST INCOME BUDGETED

AT .50%AT .50% WASTEWATER ADMIN FEE WASTEWATER ADMIN FEE

INCREASE-3.25% TO 4.74%INCREASE-3.25% TO 4.74% CONTINGENCY BUDGETED AT CONTINGENCY BUDGETED AT

$190,000$190,000 OTHER ISSUES WITH DEPT. OTHER ISSUES WITH DEPT.

PRESENTATIONSPRESENTATIONS

MULTI-SPORTS MULTI-SPORTS COMPLEXCOMPLEX

ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL PROJECTED REQUESTEDFY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY10-11

OPERATING INCOME 1,011,691$ 952,364$ 818,439$ 766,107$ 726,744$ 736,927$ 827,618$ OPERATING EXPENDITURES 920,191 941,465 1,037,083 964,265 1,028,586 905,413 827,763 NET OPERATING INCOME/(LOSS) 91,500 10,899 (218,644) (198,158) (301,842) (168,486) (145)

DEBT SERVICE 432,459 489,888 429,216 452,336 456,060 458,367 460,901

NET INCOME/(LOSS) (340,959)$ (478,989)$ (647,860)$ (650,494)$ (757,902)$ (626,853)$ (461,046)$

OTHER FUND BUDGETS OTHER FUND BUDGETS TO REVIEWTO REVIEW MAJOR STREETMAJOR STREET LOCAL STREETLOCAL STREET REFUSE FUNDREFUSE FUND BUILDING SAFETYBUILDING SAFETY WASTEWATERWASTEWATER WATERWATER

MAJOR STREET FUNDMAJOR STREET FUND

All 2011 CIP programs fundedAll 2011 CIP programs funded Projects Fund Balance of Projects Fund Balance of

$367,422 at 6/30/11$367,422 at 6/30/11 Fund Balance is 48% of Operating Fund Balance is 48% of Operating

ExpendituresExpenditures

MAJOR STREET FUNDMAJOR STREET FUND

ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL PROJECTED REQUESTEDDESCRIPTION FY04-05 FY05-06 FY06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11

OPERATING REVENUE 1,134,804$ 1,161,303$ 1,086,346$ 1,095,052$ 1,061,220$ 1,038,900$ 1,038,900$ CAPITAL FUNDING 373,751 388,543 470,256 679,918 195,000 1,115,060 356,000 INTEREST INCOME 34,731 43,864 62,906 34,296 16,739 7,200 6,000 TOTAL REVENUE 1,543,286 1,593,710 1,619,508 1,809,266 1,272,959 2,161,160 1,400,900

OPERATING EXPENDITURES 571,738 551,915 421,983 474,337 469,230 431,906 511,450 TRANSFER TO LOCAL STREETS 257,740 414,824 253,281 505,785 420,480 323,520 242,500 CAPITAL EXPENDITURES 840,025 808,605 1,134,091 1,158,987 492,287 1,744,060 667,000 TOTAL EXPENDITURES 1,669,503 1,775,344 1,809,355 2,139,109 1,381,997 2,499,486 1,420,950

REVENUE OVER(UNDER)EXPENSE (126,217)$ (181,634)$ (189,847)$ (329,843)$ (109,038)$ (338,326)$ (20,050)$

OPERATING INCOME 305,326$ 194,564$ 411,082$ 114,930$ 171,510$ 283,474$ 284,950$ NET CAPITAL COST (466,274)$ (420,062)$ (663,835)$ (479,069)$ (297,287)$ (629,000)$ (311,000)$

LOCAL STREET FUNDLOCAL STREET FUND

All 2010 CIP Funding includedAll 2010 CIP Funding included Estimated Fund Balance at Estimated Fund Balance at

6/30/11 = $390,4446/30/11 = $390,444

REFUSE FUNDREFUSE FUND

REFUSE MILLAGE RECOMMENDED TO REFUSE MILLAGE RECOMMENDED TO REMAIN AT 1.448 MILLSREMAIN AT 1.448 MILLS

SERVICES PROVIDEDSERVICES PROVIDED– STREET SWEEPINGSTREET SWEEPING– REFUSE REMOVALREFUSE REMOVAL– LEAF BAGSLEAF BAGS

REFUSE FUND REFUSE FUND SUMMARYSUMMARY

ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL PROJECTED REQUESTEDFY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY10-11

REVENUEPROPERTY TAX REVENUE 1,011,766 1,026,479 1,241,784 1,272,698 1,426,248 1,333,628 1,243,175INTEREST ON INVESTMENTS 16,988 26,030 41,896 42,021 28,158 10,000 10,000DUMPING FEES 4,110 4,528 3,300 2,100 2,922 2,000 2,000SALES-REFUSE STICKERS 6,469 6,722 6,558 5,115 4,960 4,000 4,000TOTAL REVENUE 1,039,334 1,063,759 1,293,538 1,321,934 1,462,288 1,349,628 1,259,175

EXPENDITURESSTREET SWEEPING 228,537 196,411 290,602 237,988 274,886 300,000 295,000REFUSE PICK-UP 939,407 944,970 936,238 954,212 994,760 983,000 1,005,000LEAF PICKUP 23,139 0 20,636 19,296 21,546 22,608 25,000REFUND - BOR SETTLEMENT 2,265 835 3,233 30,585 859 4,500 4,500TOTAL EXPENDITURES 1,193,348 1,142,216 1,250,709 1,242,081 1,292,051 1,310,108 1,329,500

REVENUE OVER (UNDER) EXPENDITURES (154,016) (78,457) 42,829 79,853 170,237 39,520 (70,325)

FUND BALANCE - BEGINNING OF YEAR 243,059 89,043 10,586 53,415 133,269 303,506 343,026

FUND BALANCE - END OF YEAR 89,043 10,586 53,415 133,268 303,506 343,026 272,701

BUILDING SAFETY BUILDING SAFETY FUNDFUND Initial Budget - $86,000 subsidy Initial Budget - $86,000 subsidy

from General Fundfrom General Fund CDBG Grant UseCDBG Grant Use Personnel ReallocationPersonnel Reallocation Capital Project WorkCapital Project Work Rental Inspection RevenueRental Inspection Revenue

WASTEWATER FUNDWASTEWATER FUND

7.8% INCREASE IN COMMODITY RATE 7.8% INCREASE IN COMMODITY RATE AND 4.4% INCREASE IN THE QUARTERLY AND 4.4% INCREASE IN THE QUARTERLY SERVICE CHARGE RECOMMENDEDSERVICE CHARGE RECOMMENDED

7.3% INCREASE OR $19.76 PER YEAR, 7.3% INCREASE OR $19.76 PER YEAR, AVERAGEAVERAGE

COMMODITY RECOMMENDED TO COMMODITY RECOMMENDED TO INCREASE FROM $2.38 TO $2.57INCREASE FROM $2.38 TO $2.57

ADMINISTRATIVE FEE RECOMMENDED ADMINISTRATIVE FEE RECOMMENDED TO INCREASE FROM $13.02 TO $13.59TO INCREASE FROM $13.02 TO $13.59

FUND IS STILL IN GOOD FINANCIAL FUND IS STILL IN GOOD FINANCIAL CONDITIONCONDITION

WATER FUNDWATER FUND

COMMODITY RATE COMMODITY RATE RECOMMENDED TO INCREASE RECOMMENDED TO INCREASE FROM $1.31 TO $1.33FROM $1.31 TO $1.33

DEBT SERVICE FEE INCREASE DEBT SERVICE FEE INCREASE FROM $3.54 TO $4.33 TO COVER FROM $3.54 TO $4.33 TO COVER DEBT ISSUESDEBT ISSUES

THE FUND SHOULD BUILD UP THE FUND SHOULD BUILD UP WORKING CAPITALWORKING CAPITAL

OTHER FUNDSOTHER FUNDS

SEE LINE ITEM REPORTS SEE LINE ITEM REPORTS PROVIDEDPROVIDED

NEXT STEPNEXT STEP

DEPARTMENT BUDGET DEPARTMENT BUDGET PRESENTATIONSPRESENTATIONS

SEE SCHEDULE AND SEE SCHEDULE AND DEPARTMENTAL BUDGET DEPARTMENTAL BUDGET RESPONSIBILITYRESPONSIBILITY

QUESTIONS/DISCUSSION