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City of Peachtree CornersPreliminary Expenditure Review

May 22, 2012

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Workshop GoalsReceive feedback and direction from Mayor and City Council as

we begin to develop the FY13 Budget

Develop a consensus on short-term priorities and first year needs

Discuss and develop an understanding of FY13 planning assumptions

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Agenda for WorkshopDiscussion of Budget Principles and Goals

Discussion of Establishing an Undesignated Fund Balance Reserve

Discussion of Planning Assumptions

Review of Draft Expenditures

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Budget Principles

Conservatively determine revenue and expenses Solid estimating effectively neutralizes pressures to inflate revenue

estimates to cope with budgeting pressures

Do not use one-time revenue sources for ongoing expenses When a non-recurring source of revenue is used to fund an ongoing

expense, an "automatic unfunded increase" is built into the budget for the following year

Recognize that there are numerous Unknowns when starting a new City

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Draft Budget Goals

Determine level of servicesProvide funding for Start-up Costs

Facility and Support Equipment Call Taking Capability

Provide funding for Must Do’s Insurance Finance and Accounting Legal Services Comprehensive Plan

Provide Funding for Unforeseen Start-up ExpendituresEstablish a Fund Balance Reserve (Emergency Fund)

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Level of ServicesDetermine what level of services to provide at start-up

What do we need to provide? What do our customers expect?

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Suggested Must Do’s

Key Staff

Legal Services

Facility and Maintenance

Furniture

Equipment (Computers, servers, copiers, scanners)

Support Services Telephone, Internet, IT

General Liability Insurance

Accounting

Audit Report

Call Center

Comprehensive Plan

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Contingency BudgetProvides funding for unforeseen operating

expenditures that will occur when starting a new City

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Fund Balance ReserveAdopted as part of the approved Budgetary Policy

Fund Balance is the cash reserve and working capital to cover the following: Expenditures caused by unforeseen emergencies Shortfalls caused by revenue decline Eliminate short-term borrowing for cash flow purposes Best practices call for Reserve no less than three (3) months of operating

expenditures (25%)

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(Draft) Expenditure Planning Assumptions

City will hire key staff including: City Manager City Clerk Accounting Manager Planning and Zoning Manager Administrative Assistant

City will provide Legal Services

City will provide Citizen response services via telephone and internet

City will provide funding for unforeseen expenses and emergencies (Contingency and Fund Balance Reserve)

City will lease office space with necessary equipment and systems to conduct business

City will engage a planning firm to assist with preparing a Comprehensive Plan

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(Draft) Expenditure Planning Assumptions - Continued

City will prepare Comprehensive Annual Financial Report and provide funding for Audit Services

City will provide funding for the development of a Communications Plan and on-going activities necessary to effectively communicate with Neighbors and Businesses

City will provide funding for General Liability Insurance

Draft Expenditures for FY2013

General Fund Department 2013 Projected Expenditures

City Council 83,111City Manager 159,829

General Operations 962,500Finance 188,677

Legal Services 225,000Facility Management 158,000

City Clerk 110,892Contingency 350,000

Community Development 131,218Designated Reserve 500,000Total General Fund: $2,869,225

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Discussion