JULY 10 2012 BUDGET WORKSHOP NO. 3
12-13 FISCAL YEAR GENERAL FUND & ANCILLARY FUNDS
Innovation will serve to keep the plan in the forefront of all that we do. Our actions should always be advancing the Plan.
Operation Innovation
Workshop Schedule
Schedule of FY 12-13 Council Work Sessions:
June 7- Budget Format Workshop* June 26- Capital Projects & Replacement/Renewal Fund
Workshop* July 10- General Fund (and smaller ancillary funds) Workshop** July 24- Enterprise Fund Workshop (Electric,
Telecommunications, Water/Sewer, Sanitation, Golf & Airport)* August 14-Preliminary Budget Presentation Workshop* TBA- 1st Reading Tentative Budget (Public Hearing) TBA- 2nd Reading Final Budget (Public Hearing)
*11:00 Council Lunch*11:30-1:30 Work Session (Council Chambers)** 3:00 pm Work Session (Council Chambers)
Items of Discussion
Reserve Policy Adjustment Fee increases (Development Services,
Engineering, Recreation & Parks, Telecommunications)
Proactive approach to curtailment of current year expenses
Continued culture and innovation enhancements
General Fund Balancing Strategies
FY 12-13 General Fund Information
The General Fund is the main operating fund of the City. As such it bears the brunt of costs associated with a majority of the City’s core functions.
The General Fund will be balanced using a millage of 6.1502, the Revenue Neutral Option, which allows the City to collect the same tax revenue as in the current fiscal year.
All cash balances available to the City, including a 20% reserve, have been incorporated into the budget in an effort to enhance the transparency of the budgeting process.
Salaries have been kept at current levels, as such there are no raises programmed into the budget.
Enterprise Fund transfers were held to FY12 levels. The General Fund will be balanced using the proposed fee
increases from Development Services, Engineering, Recreation & Parks.
The VSIP savings of ~$500,000 has been factored into the General Fund.
The City assumed the 2% increase in Health Insurance Premiums. The General Fund will be balanced using a transfer of $1M from the
1/8 mil Police & Fire Fund.
Millage Information
FY2012/2013 MILLAGE RATES
When setting the tentative millage rates, Council should consider:
1. The maximum millage rate that can be levied by a majority vote of City Council is the rolled-back rate adjusted per the new legislation.
2. A millage rate of not more than 110% of the rolled-back rate adjusted for growth may be adopted if approved by two-thirds vote of the City Council.
3. A rate in excess of the 110% described in #2 may be adopted if approved by a unanimous vote of City Council or if approved by a referendum.
Additional Millage Information
For comparison purposes, the following schedule lists the current rate, rolled-back, the maximum millage rate that can be imposed with a majority vote of City Council and the amount of revenue that would be generated for each, based on a 95% collection rate.
*Rolled Back Rate is not a tax increase
FY 12 Rate% Incr/Decr over
RBR Comments Vote
FY 13 Proposed Revenue @
95%FY 12 Actual
Revenue @ 95%Incr/Decr over FY 12 Revenue @ 95%
5.9332 -3.56% Current Rate FY 12 Majority $20,030,863 $20,888,517 ($857,654)
6.5276 6.11% Majority Vote Max Majority $22,037,595
6.1502 0.00% Rolled-back Rate Majority $20,769,546REVENUE
NEUTRAL OPTION
7.1804 16.72% 2/3rd Vote Max 2/3rd Vote $24,241,490
General Fund Deficit
Adopted YTD Revised Increase/ Increase/
FY 10-11 Budget Actuals Base Budget Decrease Decrease
Actuals FY 11-12 FY 11-12 FY 12-13 Amount Percentage
CASH BALANCE FORWARD $0 $22,443,019 $21,512,427 $16,500,000
Revenues $50,808,008 $48,592,420 $38,280,936 $48,609,077 $16,657 0.03%
Transfers from Other Funds $11,358,680 $15,242,555 $10,053,018 $13,946,207 $(1,296,348) -8.50%
Total Revenues & Transfers $62,166,688 $63,834,975 $48,333,954 $62,555,284 $(1,279,691) -2.00%
Operating Expenditures $63,133,849 $64,730,249 $43,681,304 61,095,937 (3,634,312) -5.61%
Transfers $3,333,077 $3,642,608 $2,759,521 3,739,756 886,414 24.33%
Total Expenditures $66,466,925 $68,372,857 $46,440,825 $64,835,693 $(2,747,898) -4.02%
REVENUES - EXPENDITURES $(4,300,237) $(4,537,882) $1,893,129 $(2,280,409)
General Fund Balancing Strategies
CASH BALANCE FORWARD (Estimated) $ 16,500,000
RESERVES Revenues $48,609,077
Reserve For Fund Balance $ 12,942,139 Transfers In $ 13,946,207
Reserve For Contingencies $ 1,110,128 $ 62,555,284
Reserve For Fire Grant Match $ 96,238
Reserve For Affordable Housing $ 557,677 Expenditures $ 61,095,937
Reserve For Tree Mitigation $ 115,351 Transfers Out $ 3,739,756
Reserve For Discovery Science Center $ 20,000 $ 64,835,693
Reserve For Salaries/OT/Retire/VSIP $ 458,467
Building Fund $ 1,200,000
$ 16,500,000 Budget Gap $ (2,280,409)
Reserve Deficit $ 0
DEFICIT $ 0 TOTAL DEFICIT $(2,280,409)
STRATEGIES PERMANENT OPTIONS AMOUNT PRIORITY TEMPORARY OPTIONS AMOUNT PRIORITY
Comm Tech Consolidation (Fire Only) $ 476,973 Delay Fire Station $ 1,000,000
Reduce Reserves to 19% $ 647,107 800 MHz Payment Transfer $ 300,000
Reduce Reserves to 18% $ 1,294,214 Enterprise Funds Transfers $ 2,280,409
OPD Reductions $ 700,000 Furloughs $ 1,800,000
Insurance Changes $ 360,000
Lay Offs $ 1,000,000
Pay Cuts $ 1,500,000
Questions/Comments