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HomeMy WebLinkAbout051110pZ:\Council Packets\2010\WS5-11-10\1005011WSA.doc Page 1 of 1 NOTICE OF THE WORK STUDY SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL AND PUBLIC OPEN HOUSE ON THE TOWN’S PROPOSED FY2010/11 BUDGET TIME: 5:30 P.M. - 7:00 P.M. -- WORK-STUDY SESSION PUBLIC OPEN HOUSE - TO CONVENE IMMEDIATELY FOLLOWING THE ADJOURNMENT OF THE WORK-STUDY SESSION WHEN: TUESDAY, MAY 11, 2010 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ 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. 1. CALL TO ORDER AND ROLL CALL – Mayor Schlum 2. PRESENTATION AND DISCUSSION of the Town of Fountain Hills proposed FY2010/11 BUDGET. 3. ADJOURNMENT of the Work –Study Session and the Public Open House to convene. DATED this 6th day of May, 2010. 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 office. Mayor Jay T. Schlum Councilmember Mike Archambault Councilmember Ginny Dickey Councilmember Dennis Brown Vice Mayor Cassie Hansen Councilmember Dennis Contino Councilmember Henry Leger TOWN OF FOUNTAIN HILLS PROPOSED BUDGET FISCAL YEAR 2010-11 Outcome Based Budget Process •Review Town Strategic Plan •Review Council Goals for FY2010-11 •Prioritize Programs Based on Goals •Allocate Available Resources Strategic Plan •Updated from 2005 by Volunteer Members of the Strategic Planning Advisory Commission •Based on citizen feedback to date, priorities are: –Education, Learning and Culture –Environmental Stewardship –Civility –Civic Responsibility –Economic Vitality –Maintain and improve community infrastructure –Public health, safety and welfare –Recreational opportunities and amenities Council Goals •Detailed in Council Mission Statement (pg 82-85) •Highlights: –Develop educational partnerships with FHUSD, Ft McDowell and VFW –Promote Wash protection and Storm water education –Promote programs that support “Neighborliness” –Develop programs that promote “Community Pride” –Continue to promote the Downtown “Vision Plan” –Pursue a fiscal plan to get us “back on track” with pavement mgmt –Continue to promote programs to create a safe and healthy Town –Develop an “urban trail system master plan” Major Issues Affecting the FY2010-11 General Fund Budget •National and Arizona Economic Recession •Steeply Declining General Fund Revenues •Lack of a Diversified Revenue Base •State Shared Revenues Potentially At Risk •Changing Environment for Town Services –Demand for Building Related Services Declining –Public Safety share of General Fund expenditures Increasing Decline in General Fund Revenues $17.7M $16.9M $16.7M $14.8M $13.3M $12.7M $10.0 $15.0 $20.0 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY10-11 General Fund Revenues* *Includes Transfers In to General Fund Lack of a Diversified Revenue Base •Two (2) Revenue Sources represent 88% of the total General Fund Revenues Local Sales Tax -48% State Shared Revenue –40% (May be at risk in FY10-11) State Shared Revenues 40% Local Sales Tax 48% Franchise Fee 2% Chgs for Service 3%Licenses/Permits 3% Fines 2% Miscellaneous 1% Transfers In 1% Sources of Funds -General Fund Where the money comes from... Total General Fund Revenues -$12.7MTotal General Fund Revenues -$12.7M Decline in Building Related Services Public Safety Share of General Fund Expenditures Public Safety now represents 47.2% of General Fund Expenditures compared to 30% in FY2006-07 Town Council 1% Administration 16% Law Enforcement 22% Fire Department 25% Municipal Court 3% Community Services 18% Development Services 12% Uses of Funds-General Fund Where the money goes... Total General Fund Budget -$12.7M Balancing The Budget •Town Policy Requires that Staff bring forth a “Balanced Budget” Proposal. •How Was This Accomplished….. Members of the Executive Budget Committee held: –Public Open House on the Budget –Meetings with Boards & Commissions –Meetings with Department Directors –Meetings with Town Staff What It Took To Balance The Budget: •Reorganization of Town Departments: –Community Services –Development Services •Reductions in Staff from 81 FTE to 61 FTE •Reduction in Services Levels in Many Areas •Reduction in Construction Tax Transfer to CIP •Updating the Comprehensive Fee Schedule –Addition of New Fees •Partial reduction in subsidies for Recreation and Senior Programs NUMBER OF TOWN EMPLOYEES May 11, 2010 115 75 77 82 87 88 88 81 61 50 60 70 80 90 100 110 120 FY02-03 FY03-04 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY10-11 Positions Eliminated Division Number of Positions Eliminated % Reduction Municipal Court 0.0 - Town Manager 0.0 - Town Clerk 0.0 - Human Resources/Risk Mgmt 0.0 - Finance/Customer Service 0.0 - Information Technology 0.0 - Public Information 1.5 100% Economic Development 0.5 50% Streets 2.5 23% Positions Eliminated Division Number of Positions Eliminated % Reduction Engineering 3.0 50% Facilities Maintenance 1.0 29% Planning 1.0 25% Building Safety 3.0 50% Code Enforcement 1.0 50% Mapping & Graphics 1.0 50% Recreation 4.7 41% Community Center Ops 0.5 >1% Senior Services 0.3 >1% Park Operations 0.0 - Comprehensive Fee Schedule •New Fees –Alcohol Permits –Repetitive False Alarm Fees –Fire Safety Inspection Fees –Temporary Vendor Permit •Revised Fees –Adult Oriented Business Application & Licensing –Encroachment Permits Partial Subsidy Reductions •Park & Recreation Programs –Overall Subsidy Reduced from 63.2% to 41.7% •Sports Activities-$13,573 subsidy •Youth & Teen Programs-$36,779 subsidy •Community Events-$55,943 subsidy •Special Interest Programs-$610 subsidy Net subsidy in FY2010-11=$106,905 Partial Subsidy Reductions •Senior Programs –Overall Subsidy Reduced from 52.4% to 43.9% •Membership at $25.00 annually-$51,843 subsidy •Home Delivered Meals at $8.50 per meal-$18,664 subsidy •Senior Dances at $5.00 per event-$13,715 subsidy Net subsidy in FY2010-11=$84,222.00 Service Level Changes/Issues •Maintain existing Fountain “Run Time” •Continue Community Service Contracts •Eliminate Public Information Division •Postpone all Major Capital Expenditures •Defer Preventative Maintenance •Provide Custodial Service in Public Areas Only •Reduce Park & Median Landscape Maintenance •Eliminate certain Town programs, e.g. “Concerts in the Park”, “AveNews”, “Oktoberfest”, Parking Lot Recycling, Paper Shredding Events, etc. Operating Budget Summary-Fund 100 Division FY09-10 FY10-11 % Change Mayor & Council $85,640 $72,427 -15.4% Municipal Court $397,528 $421,291 +6.0% Town Manager $728,543 $637,462 -12.5% Town Clerk $193,067 $134,389 -30.4% Human Resources/Risk Mgmt $575,851 $483,947 -16.0% Finance/Customer Service $324,316 $299,897 -7.5% Information Technology $307,366 $196,186 -36.2% Public Information*$159,755 $10,666 -93.3% Economic Development $149,571 $73,359 -51.0% *Staffing eliminated in FY2010-11 Operating Budget Summary-Fund 100 Division FY09-10 FY10-11 % Change Legal Services $360,804 $314,060 -13.0% Operating Support $255,534 $255,000 -0.2% Engineering*$791,242 $394,538 -50.1% Facilities Maintenance $580,957 $494,122 -14.9% Planning $344,340 $232,989 -32.3% Building Safety $411,528 $254,554 -38.1% Code Enforcement $177,511 $104,517 -41.1% Mapping & Graphics $135,096 $76,516 -43.4% Recreation $663,529 $516,793 -22.1% *Traffic Mgmt and part of Median Maintenance moved to Fund 200 in FY 2010-11 Operating Budget Summary-Fund 100 Division FY09-10 FY10-11 % Change Community Center Operations $697,447 $589,860 -15.4% Senior Services $270,177 $232,280 -14.0% Fountain Park Operations $386,174 $384,443 -0.4% Golden Eagle Park $375,422 $316,577 -15.7% Desert Vista Park $110,280 $109,625 -0.1% Four Peaks Park $138,619 $124,503 -10.2% Open Space/Trails*$0 $46,899 - Law Enforcement $2,844,878 $2,759,532 -3.0% Fire & Emergency Medical $3,065,477 $3,127,982 +2.0% *Open Space/Trails included in Golden Eagle Park in FY2009-10 All Funds Summary FUND REVENUES EXPENDITURES General Fund $12,664,414 $12,664,414 Highway User (HURF) Fund $1,338,590 $1,287,711 Excise (Economic Development) Fund $276,600 $584,276 Special Revenue (Grants)$7,450,225 $7,450,225 Development Fees $88,595 $0 Debt Service $2,680,834 $2,864,003 Capital Projects $11,018,480 $13,242,836 Totals $35,567,754 $38,154,166 General Fund 35.6% HURF/Streets Fund 3.8% Economic Development Fund 0.8% Court Enhancement Fund 0.1%Public Art Fees 0.1%Special Revenue Fund 21.0% Development Fees 0.2% Debt Service 7.5% Capital Projects 30.9% REVENUES BY FUND TOTAL ALL FUNDS $35.6M General Fund 34.3% HURF/Streets Fund 3.5% Excise Tax $0.5 Court Enhancement Fund 0.1%Public Art Fund 0.1% Special Revenue Fund 16.7% Debt Service Fund 7.8% Capital Projects Fund 35.9% EXPENDITURES BY FUND TOTAL ALL FUNDS $38.2M HURF/Streets Fund-Fund 200 •Loss of LTAF funding ($114,000) •Transferred Programs from the General Fund –Traffic Management Program –Median Maintenance Program •Reduced Median Landscape Maintenance •Reduced Town support for outside events (e.g., Great Fair) •Elimination of transfer to CIP for Pavement Mgmt Operating Budget Summary-Fund 200 Division FY09-10 FY10-11 % Change Streets Administration*$457,050 $201,676 -55.9% Adopt A Street $19,625 $19,319 -1.6% Median Maintenance**$154,295 $296,825 - Vehicle Maintenance $147,780 $92,131 -37.7% Traffic Signals $195,843 $169,907 -13.2% Traffic Management**$0 $97,446 - Street Sweeping $229,696 $206,023 -10.3 Street Signs $121,670 $106,336 -12.6% Pavement Management***$428,880 $98,049 -77.0% *Debt Service Payment ($136,013) completed in FY2009-10 **Included in Fund 100 in FY2009-10 ***No Transfer to Capital Projects budgeted in FY2010-11 Excise Tax Fund-Fund 300 •Provides on-going funding for: –Economic Development/Downtown Development –Repayment of Civic Center & Mountain Bonds •In FY2010-11 provides transfer to Fund 100 –Community Service Contracts-$50,000 Operating Budget Summary-Fund 300 Division FY09-10 FY10-11 % Change Downtown Development*$382,675 $584,276 +52.7% *FY2010-11 includes $340,000 in transfers to the CIP for Downtown Vision Projects Special Revenue Fund-Fund 400 •Provides funding for Capital Projects –ARRA/Stimulus funding –MAG Grants •Provides one-time Grants –Energy Audits –Special Transportation Services –Municipal Court Order of Protection Support Debt Service Funds •Provide for the collection of Revenues and for the Repayment of Principal and Interest on Various Bonds: –Voter Approved General Obligation Bonds –Revenue (HURF) Bonds (Retired in FY2009-10) –Eagle Mountain Com Facility District Bonds –Municipal Property Corp Bonds for Town Center and Preserve. Capital Projects Fund-Fund 600 Project Type FY 2010-11 Budget Downtown Improvements $570,000 Open Space $0 Street/Sidewalk Projects $10,007,493 Traffic Signals $148,800 Drainage/Storm Water $0 Park & Recreation $0 General Government $90,000 Public Safety $2,292,951 Contingency $133,592 Total $13,242,836 Capital Projects Funding PROJ PROJECT TITLE FY2010-11 Excise Tax Grants Capital Projects Stimulus Other Total NO Fund MAG, etc Fund ARRA Funding Bonds DOWNTOWN IMPROVEMENTS E8501 Downtown Vision Plan-Phase I (Greening)$250,000 $0 $0 $0 $0 $250,000 $0 $250,000 E8502 Downtown Vision Plan-Phase II (Ave/Lakeside)$290,000 $290,000 $0 $0 $0 $0 $0 $290,000 E8503 Downtown Vision Plan-Phase III (Ave/Saguaro)$30,000 $30,000 $0 $0 $0 $0 $0 $30,000 TOTAL $570,000 $320,000 $0 $0 $0 $250,000 $0 $570,000 STREET PROJECTS S6001 Shea Blvd Climbing Lane $1,147,500 $0 $1,147,500 $0 $0 $0 $1,147,500 S6003 Unpaved Alley Paving Projects $135,000 $0 $0 $135,000 $0 $0 $0 $135,000 S6005 Shea Blvd Widening $1,600,000 $0 $1,120,000 $480,000 $0 $0 $0 $1,600,000 S6006 Fountain Hills Blvd Sidewalk $521,000 $0 $354,200 $166,800 $0 $0 $0 $521,000 S6007 Annual Sidewalk Program $292,263 $0 $0 $292,263 $0 $0 $0 $292,263 S6008 Annual Pavement Management $515,000 $0 $0 $515,000 $0 $0 $0 $515,000 S6009 Downtown Sidewalk Program $34,737 $0 $34,737 $0 $0 $0 $0 $34,737 S6010 Saguaro Blvd Mill & Overlay $4,500,000 $0 $0 $0 $0 $0 $4,500,000 $4,500,000 S6025 Shea Bldv Gap-Overlay $1,146,993 $0 $0 $65,379 $1,081,614 $0 $0 $1,146,993 S6046 Fountain Hills Blvd Sidewalk $40,000 $0 $0 $40,000 $0 $0 $0 $40,000 S6050 Shea Blvd Bike lane $75,000 $0 $0 $75,000 $0 $0 $0 $75,000 TOTAL $10,007,493 $2,656,437 $1,769,442 $1,081,614 $0 $4,500,000 $10,007,493 TRAFFIC SIGNALS T5009 Traffic Signal Upgrades $148,800 $0 $0 $148,800 $0 $0 $0 $148,800 TOTAL $148,800 $0 $0 $148,800 $0 $0 $0 $148,800 GENERAL GOVERNMENT PROJECTS F4020 Voice & Data Communications Upgrade $10,000 $0 $0 $10,000 $0 $0 $0 $10,000 F4022 Photovoltaic Installations $80,000 $0 $47,375 $0 $0 $32,625 $0 $80,000 TOTAL $90,000 $0 $47,375 $10,000 $0 $32,625 $0 $90,000 FIRE & EMERGENCY PROJECTS F4005 Fire Station 2 Relocation $2,226,951 $0 $0 $222,600 $2,004,351 $0 $0 $2,226,951 F4021 Fire Station Emergency Generators $66,000 $0 $59,400 $6,600 $0 $0 $0 $66,000 TOTAL $2,292,951 $0 $59,400 $229,200 $2,004,351 $0 $0 $2,292,951 Contingency $133,592 $133,592 $133,592 TOTAL CAPITAL PROJECTS $13,242,836 $320,000 $2,763,212 $2,291,034 $3,085,965 $282,625 $4,500,000 $13,242,836 Pavement Management Funding •No long term funding source for Street Maintenance has been established •Pavement Mgmt competes with other Capital Improvement Projects for Capital Projects funding. •Result has been Delayed Road Maintenance throughout Town Pavement Management Funding Needs Arterials and Residential Streets -$20,000,000 -$15,000,000 -$10,000,000 -$5,000,000 $0 $5,000,000 $10,000,000 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Pavement Mgmt Projects CIP Fund Balance Operating Fund Balance Policy RESERVE BALANCE POLICY RESTRICTION Designated Unreserved (10%) $1.6M 10% of past five years average General Fund revenues Pay as you go capital Must be repaid within 5 years Reserved (20%) $3.2M 20% of past five years average General Fund revenues Not available for appropriation; excess funds may only be used for capital or debt repayment (may not be used for operating) Rainy Day Fund $1.3M 30 days annual operating expenditures for upcoming fiscal year Requires 2/3 affirmative vote by Council Cannot exceed ½ of balance Must be repaid within 5 years Estimated Fund Balances at 6/30/2010 Fund Balance 6/30/2010 General Fund $5.5M Highway User (HURF) Fund $170K Excise –Economic Development $1.5M Court Enhancement Fund $200K Grants $87K Public Art Fund $0 Debt Service $1.2M Development Fees $2.4M Capital Projects $10.3M Rainy Day Fund $1.3M Vehicle and Equipment Replacement $483K Strategies For The Future •Develop a Long Range Financial Plan –Revenue Diversification –Revenue Enhancement –Comprehensive User Fee Analysis –Town Wide Subsidy Policy Development –Expanded use of Grants –Review of Town Provided “Programs & Services” –Review of Service “Levels” Provided Date Description May 11, 2010 Council Work Study/Public Open House May 20, 2010 Council Agenda Item on Budget June 3, 2010 Council Sets Maximum Expenditure Limit June 9, 2010 Tentative Budget Published in Newspaper June 16, 2010 Tentative Budget Published in Newspaper June 17, 2010 Council Adopts Final Budget July 1, 2010 Council Adopts Tax Levy Remaining Budget Schedule •QUESTIONS?