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Home My WebLink About110404PZ:\Council Packets\2011\WS4-04-11\110404WSA.doc Page 1 of 1 NOTICE OF THE FY11/12 BUDGET WORK STUDY SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:00 P.M. WHEN: MONDAY, APRIL 4, 2011 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call ; a quorum of the Town’s various Commissions or Boards may be in attendance at the Work-Study Session. ALL WORK-STUDY ITEMS LISTED ARE FOR DISCUSSION ONLY. NO ACTION CAN OR WILL BE TAKEN. The primary purpose of work session meetings is to provide the Town Council with the opportunity for in -depth discussion and study of specific subjects. Public comment is not provided for on the Agenda and may be made only as approved by consensus of the Council. In appropriate circumstances, a brief presentation may be permitted by a member of the public or another interested party on an Agenda item if invited by the Mayor or the Town Manager to do so. The Presiding Officer may limit or end the time for such presentations. AGENDA 1. CALL TO ORDER AND ROLL CALL – Mayor Schlum 2. PRESENTATION AND DISCUSSION related to FY11-12 budget adjustments necessary due to the 2010 census population counts. 3. ADJOURNMENT. DATED this 31st day of March, 2011. Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to attend this meeting or to obtain agenda information in large print format . Supporting documentation and staff reports furnished the council with this agenda are available for review in the Clerk’s off ice. Mayor Jay T. Schlum Councilmember Dennis Brown Councilmember Cassie Hansen Vice Mayor Dennis Contino Councilmember Henry Leger Councilmember Ginny Dickey Councilmember Tait D. Elkie Z:\Council Packets\2011\WS4-04-11\110404WSA.doc Page 1 of 1 NOTICE OF THE FY11/12 BUDGET WORK STUDY SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:00 P.M. WHEN: MONDAY, APRIL 4, 2011 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call ; a quorum of the Town’s various Commissions or Boards may be in attendance at the Work-Study Session. ALL WORK-STUDY ITEMS LISTED ARE FOR DISCUSSION ONLY. NO ACTION CAN OR WILL BE TAKEN. The primary purpose of work session meetings is to provide the Town Council with the opportunity for in -depth discussion and study of specific subjects. Public comment is not provided for on the Agenda and may be made only as approved by consensus of the Council. In appropriate circumstances, a brief presentation may be permitted by a member of the public or another interested party on an Agenda item if invited by the Mayor or the Town Manager to do so. The Presiding Officer may limit or end the time for such presentations. AGENDA 1. CALL TO ORDER AND ROLL CALL – Mayor Schlum 2. PRESENTATION AND DISCUSSION related to FY11-12 budget adjustments necessary due to the 2010 census population counts. 3. ADJOURNMENT. DATED this 31st day of March, 2011. Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to attend this meeting or to obtain agenda information in large print format . Supporting documentation and staff reports furnished the council with this agenda are available for review in the Clerk’s off ice. Mayor Jay T. Schlum Councilmember Dennis Brown Councilmember Cassie Hansen Vice Mayor Dennis Contino Councilmember Henry Leger Councilmember Ginny Dickey Councilmember Tait D. Elkie FY11-12 Budget Update Prepared by: Julie A. Ghetti, MPA, CPA March 29, 2011 2010 census population showed 8.2% drop from 2005 census 54 of 91 communities grew in population, some as much as 173% Amount needed to bring budget back in balance is $513,000 in the General Fund and $100,000 in the HURF fund March 29, 2011 $12.6M $12.1M $11.8 $12.0 $12.2 $12.4 $12.6 $12.8 FY11 FY12 Fountain Hills State Shared revenue decreased by $915,000 over last fiscal year -we had anticipated a $400,000 drop $515,000 in the General Fund has to be made up from revenues, cuts in service or combination of both $100,000 will be cut from the Highway User Revenue Fund (HURF) This is a forever economic reality –the solution needs to be sustainable over the long term March 29, 2011 March 29, 2011 Revenue reduction = $2.1M over the past three years Projection into the future shows $2.1M will not return $6.6M $4.5M $4.5M March 29, 2011 JANUARY 2011 Balanced Budget $12.6M MARCH 2011 Budget Gap $513K $12.1M March 29, 2011 JANUARY 2011 Balanced Budget $1.3M MARCH 2011 Budget Gap $100K $1.2M Proposed solutions must be aligned with the following three principles: 1.Be permanent and sustainable There are likely to be more declines in the future due to legislative action, increased population in other communities The Town has to adjust to the new fiscal reality 2.Preserve organizational integrity The ability to perpetually provide the high level of service that the citizens have come to expect 3.Be equitable Does not rely on one source or citizens group Spreads the burden among various publics March 29, 2011 Increase revenues Decrease expenditures March 29, 2011 $12.6M $12.1M $11.8 $12.0 $12.2 $12.4 $12.6 $12.8 FY11 FY12 March 29, 2011 Estimated Annual Amount Comments Sales tax on telecommunications from 2.6% to 3.1% $275,000 Does not require Sales tax on telecommunications to 3.6%$550,000 vote of the Sales tax on telecommunications to 4.0%$750,000 citizens Water franchise fee (5%)$375,000 Requires vote of the citizens –n/a until 2013 Primary property tax ($0.50 per $100/AV)$2,225,000 Requires vote of the citizens –n/a until 2013 Estimated Annual Savings Comments Staff pay cuts (10%)$310,000 Not sustainable –25% reduction since 2009 Staff furloughs $115,000 Not sustainable Eliminate programs $120,000 Reduces organization integrity Reduce community contracts by another 20% $60,750 Reduces organization integrity Utilize Rainy Day Fund $515,000 Temporary solution Eliminate funding for Vehicle Replacement Fund $140,000 Not sustainable Restructure debt payment for Community Center $193,500 Potential shortfall in MPC debt service fund in FY14 Reduce contracts:Law Enforcement from 3.8 to 3.4 beats $215,500 Eliminates 2 deputies, 1 detective,1 sergeant March 29, 2011 March 29, 2011 March 29, 2011 March 29, 2011 March 29, 2011 Estimated Annual Amount Comments Sales tax on telecommunications to 3.1%+$275,000 Can be implemented by Council Restructure debt payment for Community Center -$193,500 Potential shortfall in MPC debt service fund in FY14 Reduce contracts:Law Enforcement from 3.8 to 3.4 beats -$215,500 Eliminates 2 deputies, 1 detective,1 sergeant TOTAL $684,000 March 29, 2011 Estimated Annual Amount Comments Sales tax on telecommunications to 3.6%+$550,000 Can be implemented by Council Restructure debt payment for Community Center -$193,500 Potential shortfall in MPC debt service fund in FY14 TOTAL $743,500 March 29, 2011 Estimated Annual Amount Comments Sales tax on telecommunications to 4.0%+$750,000 Can be implemented by Council Restructure debt payment for Community Center -$193,500 Potential shortfall in MPC debt service fund in FY14 TOTAL $943,500 March 29, 2011 March 29, 2011 Assumes new revenue and no increase in level of service Assumes no increase in revenues - - March 29, 2011 Assumes new revenue, no development in State Trust land and no increase in level of service Assumes no new revenues and no State Trust land development March 29, 2011