Irving Budget Update 2010-07-07
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Transcript of Irving Budget Update 2010-07-07
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GeneralFund
Preliminary
Budget
Goal8:SoundGovernance
Presentedby
Bret
Starr,
Assistant
CFO
July8,2010
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Overview
EconomicConditions
PropertyTaxEstimates
OtherRevenues
Expenditures
2
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EconomicUpdate
3
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EconomicConditions
Recoveryexpectedtobelongandslow
Municipalrevenues
decreased
for
another
24
36months
Stateand
Federal
budget
deficits
impact
local
governments
Reducedgrantsandaid
Increasingfines,
fees
and
unfunded
mandates
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OtherCities
Budget
Solutions
Reduceservicestoresidents
Closefacilities
Reducehoursofoperation
Reduceservicelevels
Employeelayoffs
Employeefurloughs
Employeepay
cuts
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IrvingBudget
Priorities
Maintaincurrentlevelsofservice
Focuson
Councils
priorities
through
the
strategic
plan
UseLean,SixSigma,andotherproductivitytoolsto
reducetimeandexpensewhiledeliveringservices
Focuson
streamlining
workforce
through
attrition
and
reorganization
Grouplikeservicesandskillstogethertoreduce
redundancies
Incentivizeemployeestotakeonadditionalskillsand
duties
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GeneralFund
Revenues
PropertyTaxes
7
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PropertyTax
Levy
May25th PreliminaryValue $18.08billion
NewConstruction
$336
million
Changeinexistingvalues ($80million)
EstimatedCertifiedValue $16.9billion
6.63%declinefromlastyear
ImpactonCityrevenues ($6.5million)
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PropertyTax
Levy
Tax Year Tax Year
2009 2010 % Value
Certified Value Preliminary Value Change Change
Commercial $8,437,407,691 $8,475,344,474 0.45% $37,936,783
BPP $4,383,697,175 $4,581,935,684 4.52% $198,238,509
Residential $5,006,494,374 $5,026,158,853 0.39% $19,664,479
Total $17,827,599,240 $18,083,439,011 1.44% $255,839,771
2010 2010 % Value
Preliminary Value ESTIMATED Value Change Change
Commercial $8,475,344,474 $7,390,707,363 -12.80% ($1,084,637,111)
BPP $4,581,935,684 $4,580,125,828 -0.04% ($1,809,856)
Residential $5,026,158,853 $4,912,922,474 -2.25% ($113,236,379)
Total $18,083,439,011 $16,883,755,665 -6.63% ($1,199,683,346)
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PropertyTax
Value
12.44
13.37
14.2914.62
13.91 13.7914.03
15.42
17.55
18.4517.83
16.88
$8
$10
$12
$14
$16
$18
$20
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
In Billions
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Changefrom
Preliminary
to
Certified
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Billions
Preliminary Certified
-2.17%
--6.95% -12.40%
-
-6.83%
-7.48%
- --10.19%
-6.63%
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PropertyTax
Distribution
TaxYear2010AdValoremComposition
BPP
25%
Residential
28%Commercial,
47%
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GeneralFund
OtherRevenues
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SalesTax
$46.74
$45.86
$36.29
$38.04
$44.31$45.10
$43.74$43.74
$41.77
$50.00
$46.85
$37.94
$30.00
$35.00
$40.00
$45.00
$50.00
$55.00
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
In Millions
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FY1011GeneralFundRevenue
Projection
Property
Tax ($6.5
million)(6.63%reductionestimated)
SalesTax ($3million)
ElectricFranchise ($2.4
million)
Netotherrevenues $700,000
Totalrevenue
reduction ($11.2
million)
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GeneralFund
Expenditures
16
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PersonnelRelated
Savings
91vacantpositionseliminatedsince2006
$4million
in
annual
savings
to
General
Fund
Reducedgeneralgovernment/executivepositions
AddedpositionsdirectedtoCouncilpriorities
Staffingalignedwithstrategicplankeyfocusareas
Police,Fire,CodeEnforcement,AnimalServices
Additional
61
positions
held
vacant
$3.7millioninannualsavingstotheGeneralFund
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FY10
11
General
Fund
Expenditures
Projected
Increases +$6.3
million Salary&Benefits +$2.8million
HealthInsurance +$1.5million
Retireehealth
insurance
+$700,000
RetireeSickLeaveBonus +$700,000
Nonpersonnelexpenditures +$500,000
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FY10
11
General
Fund
Expenditures
Cost
Savings
$4.2
million Salarysavings $750,000
Staffingreassignments $720,000
Dependantclaim
audit
$400,000
Otherspendingreductions $1.4million
Slowdownreplacementfunding $970,000
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BudgetBalancing
Strategies
Reducereplacementfundtransfers 50% $1.3million
Departmentalsavingsreview $1.4million
Budgetreductions $7.4million
Defercapital
funding
$735,000
FurtherimplementIWINplan1/1/2011 $500,000
Healthinsurancecostallocation $490,000
Salarysavings
$750,000
Total: $7million
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BudgetBalancing
Strategies
Remainingbudget
gap
$5
million
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Summary
Impact
of
the
recession
will
continue
over
the
next2436months
Allmajorrevenuestreamsarereduced
Generalfund
must
stand
on
its
own
resources
Notrecommendinguseoffundbalance
Continuedreductions
in
expenditures
and/or
additionalrevenueswillbenecessaryto
maintainabalancedbudgetforFY201011
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