Fy 2013 Proposed Budget Presentation
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Transcript of Fy 2013 Proposed Budget Presentation
City of San AntonioCity of San Antonio
FY 2013 Proposed Annual Operating and Capital Budget
Presented by City Manager Sheryl Sculley
August 9, 2012
2
Budget Summary• FY 2013 Budget is balanced• No City Property Tax Rate
Increase• Focuses on Community and
Council Priorities– Provides more Streets and
Sidewalks– Enhances Code Enforcement– Increases Animal Care Services– Targets Neighborhood
Revitalization– Adds Police Officers through
Civilianization– Budget Spending aligned with
SA2020 Goals
3
San Antonio Economy• San Antonio economy is growing• 1.5-2.0% employment growth anticipated
in 2012• Consumer Confidence has improved as
Sales Tax Revenues are above projections• Housing market shows
improvement, however 2013 existing property taxvalues slightly below 2012
Source: Dr. Steven Nivin SABER Institute
4
City Council Policy Vision Areas and Strategic Goals
• On June 6, 2012 a Policy Goal Setting Session was held for the City Council to develop strategic goals and service delivery priorities for the next three to five years
• City Council Policy Vision areas include:– Economic Development– Education/Workforce
Development– Neighborhood
Revitalization– “Best in Class”
Public Services– Transportation– Governance
5
Community Input Before Budget Development
• 5 area budget hearings held prior to Budget Preparation– May 21 through May 24
• Provided opportunities for residents to identify service priorities for Proposed Budget
6
Community Service Delivery Priorities
Police & Fire
Streets & Sidewalks
Early Childhood &
Education
Code Enforcement
Animal Care
COMMUNITY PRIORITIES
City of San Antonio
Budget Summary
8
All Funds Budget Summary
Total Consolidated City Budget (All Funds)$2.3 Billion
$977 MillionGeneral Fund
$665 MillionRestricted
Funds
$636 Million Capital Budget
9
City Authorized Positions
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
8,506 8,236 8,266 7,952 7,617 7,501 7,376 7,343
3,551 3,652 3,766 3,926 4,005 4,030 4,033 4,034
Civilian Uniform
12,057 11,888 12,032 11,878 11,622 11,531 11,409 11,377
10
General Fund Budget Year over Year Change
Budget FY 2012
Budget FY 2013
PercentChange
General Fund Total Expenses ($ in Millions) $948 $977 3%
11
Property Tax Rev-
enues$24324.9%
Sales Tax Revenues
$22222.7%
CPS Rev-
enues$28629.3%
Other Re-
sources$22623.1%
Other Expen-ditures$243 Police*
$373
Fire$251
Public Works
$63
Parks & Rec$47
* Police Budget includes Parks Police
FY 2013 TOTAL PROPOSED BUDGET: $977 Million
GENERAL FUND AVAILABLE RESOURCESDISTRIBUTED OVER MAJOR SPENDING AREAS
($ IN MILLIONS)
12
General Fund Other Expenditures
DepartmentFY 2013
Proposed Budget($ in Millions)
Human Services w/ Delegate Agencies $ 37.7
Library 33.4
Municipal Courts 13.3
Code Enforcement Services 11.4
Health 11.1
Animal Care 10.9
Economic Development & Incentives 6.4
Downtown Operations 6.0
Customer Service/311 3.3
General Administration / Non-Departmental 109.8
Total Other Expenditures $ 243.3
City of San Antonio
General Fund Revenues
14
General Fund Revenues$ in Millions
Property Tax Sales Tax CPS Other$0
$50
$100
$150
$200
$250
$300
$239
$199
$290
$167
$243 $222
$286
$168
FY 2012 Adopted Budget FY 2013 Proposed
1.5% 11% -1.4%
Total Proposed General Fund Revenues: $918 Million
0.6%
15
General Fund Other Revenues$ in Millions
RevenuesFY 2013
Proposed Budget($ in Millions)
Public Safety including EMS Transports $29.4
Business Franchise Tax (Telecommunications) 36.0
Fines 14.6
Payment from SAWS 11.0
Recreation and Culture 10.9HOT Tax reimbursement for History and Preservation activities 7.9Outside Agencies including County Reimbursement for City Services 7.7
Licenses and Permits 7.2
Sale of Property, Interest Earnings, Recovery of Expenditures, Other 43.3
Total Other Revenues $168.0
16
Sales Tax – 10 Year History ($ in Millions)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Budget
2012Estimate
2013Projection
$-
$50
$100
$150
$200
$250
$140 $139 $149
$163 $178
$190 $196 $187 $189
$200 $199
$215 $222
Average annual increase for prior 10 years = 4%
Actuals
FY 2013 is 11% higher than FY 2012 Adopted Budget
17
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Budget
2012Estimate
2013Projected
$0
$50
$100
$150
$200
$250
$300
$137 $147$160
$167$180
$202
$230$245 $244 $240 $239 $239 $243
Property Tax – 10 Year History($ in Millions)
City Current Tax Rate 56.569 cents / $100 taxable valuation
City Tax Rate decreased
Actuals
Average annual increase for prior 10 years = 6.9%
FY 2013 is 1.4% higher than FY 2012 Adopted Budget
18
Property Tax Valuation
Percent Change in Property Taxable Valuation
F Y 2010Budget
F Y 2011Budget
F Y 2012Budget
FY 2013Proposed
Budget
Existing Value -1.87% -3.78% -1.69% -0.43%
New Value 2.70% 1.68% 1.15% 1.26%
Taxable Value 0.83% -2.10% -0.54% 0.84%
19
Historical Growth in Property Values
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
10%
5% 7%4% 7%
14%16%
10%1%
-2%
-0.54%
1%
20
Property Tax Bill
• School Districts Taxing Units represent close to half of annual tax bill• City represents less than 25% of annual tax bill
K-12 Public School District
46%
Bexar County & Hospital System
23%
City of San Antonio
23%
Other*8%
* Note: Includes Community College District (6%) and River Authority (2%)
21
Property Tax Relief• City continues commitment to provide Tax
Relief to Seniors and Disabled Property Owners
• FY 2013 Budget foregoes $30.1 Million in property tax revenue from Senior and Disabled Homestead Exemptions and Frozen City Tax Payments– Over 79,000 Senior and nearly
10,000 Disabled HomesteadExemptions
• Approximately 27,000 Seniorand disabled homeowners payzero City Property Taxes
22
$-
$50
$100
$150
$200
$250
$300
$350
$165
$204 $190
$213
$246 $249
$294
$265
$284 $298 $290 $293 $286
CPS Revenues($ in Millions)
Average annual increase for prior 10 years = 5.3%
FY 2013 is 1.4% lower than FY 2012 Adopted Budget
23
CPS Revenue – Volatility
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
0%1%
1%
11%
1%-4%
12%
2%7%
-1%
15%
9%
-9%
24%
-7%
13%11%
0%
20%
-10%
7% 6%
-8%
CPS Payment to City% Change from Prior Year’s Actual Payment
24
Budgeted Financial Reserves• Reserves maintained at 9% ($88 Million in FY
2013)• Critical to prudent financial management• Increase City’s credit worthiness resulting in
higher credit ratings• Measure of last resort to
provide budgetarystability for unexpectedevents– Natural disasters– Catastrophic change in
City’s financial position
City of San Antonio
General Fund Improvements
26
FY 2013 Budget StrategyPreparing for the Road Ahead
27
Public Safety – Police• Civilianizes 5 Police Officers from
Communications and Enhances Gang Unit - $380,000 – Allows further investigation of gang related activity – 5 civilian positions added to backfill duties of
police officers• Resources added to
augment NarcoticsUnit - $150,000– 5 Police Officers will be
promoted to Detectivesand assigned to Narcotics
28
Public Safety – Police Positions
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
1,500
1,700
1,900
2,100
2,300
2,500
2,054 2,053 2,054 2,054 2,0692,122
2,2022,302
2,352 2,374 2,375 2,375
• 306 police officers added and 85 positions civilianized over the past 7 years for a total of 391
29
Public Safety – Fire• $260,000 added to create a Technical
Services Division– 1 uniform and 1 Civilian positions added to
expedite emergency response of specialized vehicles
• $50,000 to enhance diversity program– Marketing and training to promote
department’s goal of attracting firefighters that reflect our City’sdiverse community
30
Public Safety – Firefighter Positions
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
1,200
1,300
1,400
1,500
1,600
1,700
1,449 1,443 1,442 1,442
1,4931,529
1,564
1,6241,653 1,657 1,658 1,659
• 166 firefighters/paramedics added over past 7 years
31
Streets and Sidewalks• $4.5 Million in additional funding from
ATD funds is allocated for Streets and Sidewalks
• $8 Million from bond fund balances isincluded in Budget for infrastructureimprovements– $800,000 per
City Council District
32
Streets and Sidewalks• Traffic Signal System Modernization
substantially completed in FY 2012– System allows traffic to move efficiently through
existing roadways through traffic signal synchronization
– Benefits include:• Maximized flow of traffic• Reduced traffic delay• Reduced fuel consumption
and emissions• Fewer accidents
– Program saves an averageof 2.2 Million in vehicle delay hours annually*
*Formula Based on Urban Mobility Report
33
Neighborhoods – Animal Care• $1.1 Million added to continue and
enhance successful FY 2012 initiatives – Education Awareness– High Volume Pet Placement
Partner Program– Pet Licensing Awareness– 4 additional Veterinarian
Technicians and 3 additionalLive Release Positions
• Live release goal anticipatedto increase from 58% to 70%in FY 2013
34
Neighborhood Code Enforcement
• Adds $500,000 for 7 positions to enhance proactive code enforcement
• Improves supervisionfor better accountability and performance of Code Enforcement Officers
35
Neighborhood Revitalization• $150,000 allocated for Fitness in the Park
Program expansion and to continue Saturday hours at Open Play Centers
• $250,000 reserved for fitness initiatives
36
Economic Development• $4 Million maintained for Economic
Development City-wide– Over 5,400 jobs added in FY 2012
• $3 Million maintained to stimulate downtown commercial, retail and housing development
37
Library• Budget adds $250,000 for library books
and materials• $1.5 Million included in capital and
operating budget for maintenanceimprovements atseveral branch libraries
• $180,000 for replacement of furnitureat several branchlibraries
38
FY 2013 Budget Alignment with SA 2020
• Operating Budget includes funding and programs that support the goals of SA2020
• 2012 Bond Program includes projects totaling $500 Million that align with SA 2020 Goals
City of San Antonio
General Fund Efficiencies
40
Efficient Operations• $8 Million in Budgeted Reductions
– Improved Service Delivery Models– Better Utilization of City Facilities– Operational Efficiencies– Reduction of Administrative Overhead
41
Administrative Overhead• Eliminates non-critical cell phones
$500,000• Eliminate 3 Positions in City Manager’s
Office - $340,000– 1 Assistant City Manager– 2 vacant positions in the
Council Action Team
42
Operational Efficiencies• $580,000 in Park Services Operational
Efficiencies– Right sizes staffing levels as a result of
department restructuring• $165,000 Provided for Athletic Program
by partnering with outside management– Transferred
management ofAdult softball programto contract agencyresulting in savings
43
Process ImprovementCivilian Recruitment Process
• Current recruitment process takes up to 105 steps and 175 business days per hire
• Process reviewed and improvements identified to reduce steps and business days for hiring to between 18 to 46 days
• Improvements possible with existing technology and will be implemented in October
44
Process ImprovementFacility Analysis
• Phase I completed FY 2012– Sale of surplus properties– Vacate and transfer
facilities– Improve office space use
at existing administrativefacilities
• Phase II – FY 2013– Strategic use of facilities to improve service– Opportunities for further consolidations
45
Process ImprovementsFacility Analysis
• Implements new Community Link Service Center structure saving $795,000 – Transfers services from underutilized leased
facilities to Libraries
46
ReorganizationsDowntown Operations
• Department to focus on core downtown functions of Riverwalk operations, parking operations, and special events
• Other departmentswith experience and resources to absorb functions such as park maintenance, facility programming, and sanitation
47
Reorganizations Planning & Community Development
• Centralizes and Enhances Planning Functions based on Best Practices and focusing on:– Strategic Comprehensive Planning– Transportation Planning– Urban Design– Housing & Community Development – Administration of Federal Grants focusing on
strategic investments of funds
48
FY 2013 Delegate Agencies• Recommended funding allocation based
on proposal scoring, alignment with SA 2020, and agency past performance
• FY 2013 Proposed Budget maintains current funding for After School Challenge Program and Haven for Hope
49
FY 2013 Delegate Agencies• $23.1 Million included in Budget• Funding recommendations guided by City
Council Ballot priorities
Delegate Agency City Council Ballot Results
SA 2020 Vision Area FY 2012Allocation
FY 2013Priority
DistributionVariance
Education 27% 32% +3
Family Well-Being 50% 51% +1
Community Safety Net 12% 10% 0
Economic Competitiveness 11% 7% - 4
TOTAL 100% 100% 0
City of San Antonio
Employee Compensation & Benefits
51
Employee Compensation Principles
• Historically City of San Antonio wages below market rate and benefit package exceeded industry trends
• In last 6 years, wages increased to be consistent with market competitive rates– Benefits adjusted to increase
employees’ share in cost and align with industry trends
52
Employee Compensation Summary
• $9.9 Million for Civilian increases – All Funds– Final phase of Step Pay Plan Implementation– 2% allocation for Cost of Living Adjustment– Living Wage to increase
from $10.75 to $11.08– 2% COLA for Retirees
53
Employee Compensation Summary
• $15 Million for Police and Fire Collective Bargaining Contract Increases
F Y 2013 F Y 2014
Police 3% 3%
Fire 3.4% 3.4%
54
Civilian Step Pay Plan• FY 2013 implements 6th and final phase of
Civilian Step Pay Plan• 2,421 employees with average salary increase
of 5.2%
55
Employee Healthcare• Budget addresses employee health care needs and
manages cost• Promotes wellness by enhancing rewards programs• Introduces a Consumer Driven Health Care Plan
(CDHP) as fourth choice– Four Plans available: CDHP, Value, Standard and
Premier) • Increases Employee Contributions to Health Care
Cost– No premium increases to the Value Plan– Aligns prescriptions, deductibles, and office co-pay
maximums with industry standards– Introduces a tobacco user surcharge as discussed in FY
2012 budget
Employee Wellness
56
Create Corporate Culture of Wellness• Helping employees meet their optimum health goals• Incentivizing increased engagement in healthy lifestyle choices • Focusing on increased claims costs through preventative measures
Continued Employee Wellness Program Initiatives
• 100% coverage for preventive care • Employee Health Stations• Healthy Vending Machine options• Weight Watchers at Work• City Employee Health & Wellness Clinic• City Manager’s 5K• Onsite Wellness Coaching
New Initiatives• Outcome Based Rewards Program• Virgin HealthMiles Pedometer Program
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 20120%
10%
20%
30%
40%
50%
60%52%
30%
• Uniform legacy costs have increased 52% since FY 2006
• General Fund appropriations have increased 30% over the same period
57
Uniform Legacy Costs
General Fund
Cumulative Growth in Uniform & Civilian Legacy Expenditures,FY 2007 to FY 2012
Actual Budget
Legacy Costs
57
City of San Antonio
Solid Waste
59
Solid Waste Fund• Solid Waste Enterprise Fund Budget: $91.7
Million• City guided by 10 Year Recycling Plan
– Adopted by City Council in June 2010– Establishes recycling goal of 60% of residential waste by
2020; rate currently at 27%
• FY 2013 Budget expands recycling opportunities and continues focus on customer convenience– Organics Recycling Program– Neighborhood Drop Off
Collection Centers
• No rate increased proposed in FY 2013
60
Organics Recovery Program
18% FY 2010
+ 8% Brush and Bulky Redesign(2011-12)
+ 2%
Education and Outreach(2010-20)
+ 15-17%
Organics Recycling (2011-14)
+ 15-17%
Utility
Based Pricing (PAYT)(2014-20)
Organics Recycling is a critical component of the 60% recycling goal
Organic materials comprise 1/3 of all residential waste
FY 2012 Recycling Rate: 27%
FY 2006 Recycling Rate: 6.6%
61
Organics Recovery Program• Pilot program for 30,000 homes in FY 2012
– Positive results yielded; data collection ongoing through Summer months
– Final pilot results to be presented to City Council during Proposed Budget Worksessions
• Based on positive pilot results, implementation of three-year City-wide expansion ofOrganic Recycling Program isrecommended
City of San Antonio
Hotel Occupancy Tax
63
HOT Tax Revenue History($ in Millions)
$35,006,434 $34,714,959 $36,044,018 $40,094,265
$45,568,598 $49,710,736
$53,210,962
$45,733,252 $46,460,193 $48,974,388 $48,996,167
$51,880,000 $55,035,000
Actuals
• FY 2013 Budget estimated to exceed FY 2008 Collections
64
Hotel Occupancy Tax Fund
Convention Facilities¹
35%
Convention & Visitors Bureau
35%
Arts Funding15%
History & Preserva-
tion15%
¹Includes funding for International Relations and Hosting Obligations
City’s HOT Tax Distribution16.75% Total Rate
65
Hotel Occupancy Tax Fund• Tourism and Conventions
• Estimated FY 2012 room nights sold to exceed $9 Million, 7% higher than FY 2011
– Launched “Remember the…” Campaign– Top Chef Texas Aired on
Bravo– People en Español Being
Hosted at Alamodome inSeptember
• Arts and CulturalProgramming– FY 2013 2nd year of 2-year
funding cycle– Funding to arts agencies
remain at 2012 levels
City of San Antonio
Aviation
67
Aviation• FY 2013 Aviation Fund Budget totals $88
Million• Signed New Airline Lease in November 2011• 1,480 more international flights in
FY 2012 than in FY 2011 or 176% increase• Terminal A renovations currently underway
with constructionscheduled to beginOctober 2012
• Consolidated Rental CarFacility – Design to begin in FY 2013
68
Aviation
Actuals
1.5%
• FY 2013 Projected Enplanements estimated at 4.2 Million or 1.5% higher than FY 2012
1.6% 1.5%
2004 2005 2006 2007 2008 2009 2010 2011 2012Estimate
2013Projected
2,000,000
3,000,000
4,000,000
5,000,000
Enplanement History and Projection# of passengers departing San Antonio
(in thousands)
City of San Antonio
Development Services
70
Development Services Fund• FY 2013 Development Services Fund
Budget totals $27.3 Million• FY 2013 Total Permits
expected to increaseslightly over FY 2012levels as development activity begins to improve
• Budget adds 4 new positions to maintain permit review cycle time for complex commercial permits
71
Permitting
• New Residential Permits have declined 75% since FY 2005• New and Existing Commercial Permits have increased by 3% since
FY 2005
New Permit History
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Estimate
FY 2013 Projection
-
2,000
4,000
6,000
8,000
10,000
3,086 3,199 3,263
1,642 1,940 1,979
Commercial Residential
City of San Antonio
Storm WaterOperations
73
Storm Water Operations• FY 2013 Storm Water Operations Budget
totals $46 Million• Storm Water Fund is supported by the
Storm Water Fee and provides:– River Maintenance– Vegetation Control– Tunnel Operations– Floodplain Management
74
Storm Water Operations• Recommend $0.50 adjustment to monthly
residential storm water fee– From $4.25 to $4.75
• Rate not adjusted since FY 2008• Adjustment projected to generate additional
$4.5 Million in revenue and allow for:– Additional mowing of drainage
channels and medians– More street cleaning– Improved heavy equipment
service facilities
City of San Antonio
Capital Budget
76
Capital Improvements
• FY 2013 Capital Program $636 Million– 2012-2017 Bond
ProgramYear 1: $72.2 Million
– Airport ImprovementsYear 1: $69 Million
– Convention Center ExpansionYear 1: $45 Million
77
Capital Improvements• Proposed Budget Includes $18 Million
from pre-2007 Bond Balances– $8 Million for Infrastructure Improvements
($800,000 per Council District)– $8 Million for Education
Excellence Facilities – $2 Million for
Fire Station 32
City of San Antonio
Budget Communication
79
Budget Communication• Highlights Brochure
– Printed in English and Spanish• Employee Highlights Pamphlets• Newspaper Inserts for Residents
– San Antonio Express News– La Prensa
• Budget Video • Budget Document• Individual Council District Hearings
80
Five Community Budget Hearings& Two City-Wide Public Hearings
Date Area
Monday, August 20 North
Tuesday, August 21 Central
Wednesday, August 22 West
Thursday, August 23 Southeast and Northwest
All Citywide meetings to begin at 6:00 PM in City Council Chambers
Wednesday, August 29 Citywide
Wednesday, September 5 Citywide
All area meetings to begin at 6:30 PM
81
Eight City Council Budget Worksessions
Date Date
Tuesday, August 14 Wednesday, August 29
Wednesday, August 15 Thursday, August 30
Tuesday, August 21 Wednesday, September 5
Wednesday, August 22 Wednesday, September 12
• Meetings held during City Council Budget Worksessions to allow for presentation and discussion of budget proposals– Meetings in Municipal Plaza “B” Room at 2:00
PM
82
Budget Adoption• 2 Budget Public Hearings at City Council
Chambers at 6:00PM– Wednesday, August 29– Wednesday, September 5
• Budget Adoption– Thursday, September 13– City Council Chambers
83
Budget Summary• FY 2013 Budget is balanced• No City Property Tax Rate
Increase• Focuses on Community and
Council Priorities– Provides more Streets and
Sidewalks– Enhances Code Enforcement– Increases Animal Care Services– Targets Neighborhood
Revitalization– Adds Police Officers through
Civilianization– Budget Spending aligned with
SA2020 Goals
City of San Antonio
City of San Antonio, Texas
FY 2013 Proposed Annual Operating and Capital Budget
Presented by City Manager Sheryl Sculley
August 9, 2012