May 14th–18th, 2012. Mayors Opening Comments Overview of Budget Process Budget Picture City Wide...
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Transcript of May 14th–18th, 2012. Mayors Opening Comments Overview of Budget Process Budget Picture City Wide...
![Page 1: May 14th–18th, 2012. Mayors Opening Comments Overview of Budget Process Budget Picture City Wide Budget General Fund Overview Water & Waste Water Funds.](https://reader033.fdocuments.net/reader033/viewer/2022060106/5516691d550346c6758b62a4/html5/thumbnails/1.jpg)
City of Modesto Fiscal Year 2012 – 13Budget WorkshopsMay 14th–18th, 2012
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AgendaMayor’s Opening CommentsOverview of Budget ProcessBudget PictureCity Wide BudgetGeneral Fund OverviewWater & Waste Water FundsService ImpactsDepartment PresentationsMayor’s Closing Comments & RecommendationsFinance Committee Deliberations and Policy Considerations
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Mayor’s Opening Comments
“Do not follow where the path may lead. Go instead where there is no path and leave a trail.”
- Ralph Waldo Emerson
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Overview of Budget Process
FY 2012-13
• Began Budget Process in October• Reviewed Prior Year Reductions• Developed List of Reductions & Revenue
Enhancements• Developed List of Unmet Needs / Critical Services• Fund Balance Carryover:$4.7million• Vacant Positions
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Budget Picture
Revenues trending up slightlyRecovery slow, yet hopefulCommunity support & City staff commitmentEconomic Impacts on Central Valley Continue - housing market, foreclosures, unemployment rate, construction industry, etc.)
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Budget PictureContinued
Continued challengesExpenditures still exceed revenuesService levels remain flat but needs are evidentWater & Wastewater rates stable - Future rate increases being proposedSalary & Benefits (contractual raises, increased PERS costs, retiree health care costs projected to increase annually)MPOA – 2% August, 2012 – Estimated at $310,052MPMA – 2% August, 2012 – Estimated at $82,571MCFFA – 3% July, 2012 – Estimated at $460,898
Structural Change neededOne time fixes are being depleted
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City – Wide Budget
1% 2%34%
32%
13%
0%
18%
FY 2012-13 Operating Expense by Fund Type$351 Million
CIPDebt ServiceEnterpriseGeneral FundISFRDASpecial Rev
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General Fund Overview – FY12/13Amount
Total Revenues $ 101,752,591
Total Expenditures: Department Budgets (101,544,318) Transfers Out (8,202,314)
(109,746,632)
Shortfall $ (7,994,041)
Notes: Revenues include Transfers InTransfers Out include: Debt Service - $3,400,801Surface Transportation MOE - $1,687,7154th Year of PD ARRA Grant - $986,000
Mayor's Recommended Reductions or Enhancements Are Not Included
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Shortfall for 2012 / 13
AmountUse of FY11/12 Fund Balance $ 4,718,202 Mayor's Recommended Reduction List:
Revenue Enhancements 337,868 Expenditure Reductions 243,170
Total to Date $ 5,299,240
Remaining Reductions to be Made $ 2,694,801
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Source of FY 11-12 Fund Balance Carryover
Amount Fund Balance Carryover - FY 10/11 $ 1,493,348Departmental Savings:
Police 859,668Parks, Recreation & Neighborhood 418,655Others 269,441
Unanticipated RevenuesPolice 595,393Business License 359,447Sales Tax 187,485Others 534,765
Total to Date $ 4,718,202
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FY 12 / 13 Proposed General Fund Revenues
Inc (Dec)Amount % From FY11/12
Sales Taxes $ 26,081,348 26% $ 1,000,000 Utilities User Tax 18,900,000 19% - Other Revenues 14,840,238 15% (375,800) VLF Swap 12,088,914 12% (120,000) Property Taxes 11,441,213 11% (106,212) Business License 9,341,032 9% 144,987 Franchise Fees 3,754,890 4% (48,000) Transfers In 2,349,971 2% (267,344)
Construction Revenue 1,717,853 2% 89,456 TOT 1,500,000 1% (100,000) Vehicle License Fees 75,000 0% (600,000)
$ 102,090,459 100% $ (382,913)
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FY 12/13 ProposedGeneral Fund Revenues
26%
19%15%
12%
11%
9%4% 2%2% 1%0%
Sales TaxesUtilities User TaxOther RevenuesVLF SwapProperty TaxesBusiness LicenseFranchise FeesTransfers InConstruction RevenueTOTVehicle License Fees
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Total Revenues
75,000,000.00
85,000,000.00
95,000,000.00
105,000,000.00
115,000,000.00
125,000,000.00
2007 2008 2009 2010 2011Actual
2012Budgeted
2013Proposed
$120,369,703
$126,547,754
$118,157,318
$104,337,195
$109,083,458
$102,473,372 $102,090,459
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FY12/13 Proposed General Fund Expenditures
Department %
Police $ 48,755,502 45%Fire 23,358,566 21%PR&N 11,163,141 10%C&ED 5,848,656 5%Finance 4,911,584 4%City Attorney 2,394,476 2%City Manager 1,509,989 1%Human Resources 1,373,133 1%City Council 475,713 0%City Clerk 383,198 0%Office of the Auditor 163,756 0%Transfers Out 8,136,314 7%Non-Departmental 1,029,434 1%
$ 109,503,462 100%
Includes Mayor's Recommendations
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FY12/13 Proposed General Fund Expenditures
45%
21%
10%5%
5%2%
1%
2%1%
8%1%
Police Fire PR&N C&ED
Finance City Attorney City Manager Human Resources
City Council City Clerk Office of the Auditor Transfers Out
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Proforma
2010/11 2011/12 2011/12 2012/13Current Adopted Current PreliminaryActual Budget Budget Budget
REVENUES:
Revenue 102,851,001$ 99,395,143$ 99,856,057$ 99,614,620$ Revenue-Mayor's Recommended -$ 139,868$
Transfers In 6,232,457$ 2,611,654$ 2,617,315$ 2,137,971$ Transfers In-Mayor's Recommended -$ 198,000$
TOTAL REVENUES 109,083,458$ 102,006,797$ 102,473,372$ 102,090,459$
EXPENSES: (Inc Roll Over Enc)
Department Expenses:Non-Departmental (888,036)$ (841,503)$ (861,503)$ (1,029,434)$ City Council (320,967)$ (371,673)$ (342,637)$ (485,073)$ City Manager (1,409,237)$ (1,491,462)$ (1,571,977)$ (1,509,989)$ Human Resources (1,098,355)$ (1,029,232)$ (1,058,427)$ (1,394,741)$ City Attorney (1,844,160)$ (2,051,285)$ (2,051,760)$ (2,394,476)$ City Clerk (453,400)$ (796,066)$ (796,094)$ (383,198)$ Office of the Auditor (178,277)$ (167,487)$ (167,493)$ (163,756)$ Finance (4,295,424)$ (4,821,398)$ (4,918,329)$ (4,961,003)$ Community & Economic Development (5,232,580)$ (5,298,822)$ (5,349,112)$ (5,928,680)$ Fire (24,461,412)$ (25,093,361)$ (23,358,566)$ (23,358,566)$ Police (45,955,696)$ (47,223,961)$ (47,487,135)$ (49,092,297)$ Parks, Recreation & Neighborhoods (10,274,865)$ (10,464,407)$ (11,291,635)$ (10,843,105)$ Public Works (279,258)$ -$ (25,406)$ -$
Sub-Total Department Expense (96,691,667)$ (99,650,657)$ (99,280,074)$ (101,544,318)$ Expense-Mayor's Recommended -$ 965,568$ 177,170$
Transfers Out (7,947,130)$ (6,608,610)$ (7,630,358)$ (8,202,314)$ Transfer Out-Mayor's Recommended -$ 66,000$
TOTAL EXPENSES (104,638,797)$ (106,259,267)$ (105,944,864)$ (109,503,462)$
Reserve for Encumbrances - Current Year (458,262)$ -$ -$ -$ Reserve for Encumbrances - Prior Year 279,736$ -$ 458,262$ -$ Change in Advances to Other Funds 50,000$ -$ -$ -$ Prior Period Adjustment 49,092$ -$ -$ -$ CAFR Adjustment 361,984$ -$ -$ -$
NET CHANGE IN FUND BALANCE:
Fund Balance, July 1 10,004,221$ 11,253,059$ 14,731,432$ 11,718,202$
Fund Balance, June 30 (Unreserved) 14,731,432$ 14.1% 7,000,589$ 6.6% 11,718,202$ 11.1% 4,305,199$ 3.9%
Reserve Level 7,000,000$ 7,000,000$ 7,000,000$ 7,000,000$ Projected Cash Reserve Over/(Under) Reserve 7,731,432$ 589$ 4,718,202$ (2,694,801)$
City of Modesto - General Fund Proforma at 04/24/12
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Water and Wastewater Funds
Water Fund Budget $58 Million3.1% Rate Increase
Wastewater Fund Budget$41 Million7% Rate Increase
Fiscal Challenges
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Service Impacts
Tree TrimmingFire ServicesPolice ServicesStreet SweepingAll Support DepartmentsStreet LightingPark MaintenanceRoadsGraffiti Abatement
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Employee Benefit Fund
EBF – New actuarial analysis conducted in 2011Annual Required Contribution (ARC) doubled from previous actuarial studyThe City is not fully covering pay-go costsPay-go costs are expected to double by 2020
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City ContributionRetiree Medical
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
FY06-07
FY07-08
FY08-09
FY09-10
FY10-11
FY11-12
FY12-13
$1,889,684
$2,120,556
$2,356,924
$2,720,564$2,769,177
$3,261,710
$3,625,896
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Worker’s Comp Fund
Workers Comp – New actuarial analysis done in 2011Claims cost have trended lower, but the actuarial has amortized the deficit funding to cover previous year holidaysThe City is not fully covering Worker’s Comp cost (It is projected that reserves will drop from 14 mill (10/11) to 9 mill. (12/13)
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WORKERS’ COMPENSATION FUND Projected funding and expenses at current level*
10/11 Actual 11/12 Es-timated
12/13 Proposed
13/14 pro-jected
14/15 pro-jected
15/16 pro-jected
16/17 pro-jected
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000 Revenues
Expenditures
Fund reserves
*Funded to 75% of recommended actuarial funding
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History of Funded Positions
FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/131000
1050
1100
1150
1200
1250
1300
1350
1400
1364.5
1187.5 1189.31137.7 1147.2
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Sustainability Moving Forward
RE-BALANCE5th Year of fixesStaffing levels reflect 2003Still need on-going, permanent change
(i.e., roll-overs, one-time monies)Adapt to changing economic climateTo sustain moving forward, requires balance
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Monday, MAY 14th, 2012
City ClerkCity AttorneyCity Manager, City Council & City AuditorParks, Recreation & NeighborhoodsFinanceHuman ResourcesCommunity & Economic DevelopmentPolice
Department Presentations
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Utility Funds ReviewSewer (Wastewater)Storm DrainWater
Utility Planning & ProjectsSurface Transportation Funds (STF)-CEDD, Public Works & PRN
Department PresentationsContinued
Tuesday, MAY 15th, 2012
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Department PresentationsContinued
Public WorksFleetTransitAirport & Parking
Information & Technology FundModesto Regional Fire Authority (MRFA)
Tuesday, MAY 15th, 2012
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Department PresentationsContinued
Report Backs/Discussions ContinuedPolicy Issues AddressedSummaryFriday Meeting (To be held if needed)
Thursday, MAY 17th, 2012
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Mayor’s Closing Comments & Recommendations
See Mayor’s Recommendations Tab Located in Budget Binder (hard copies are available)
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Finance Committee Deliberations and Policy Considerations
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Closing
Thank you & Questions