Budget Work Session Fiscal Year 2010-2011 July 27, 2010.

Budget Work Session

Fiscal Year 2010-2011

July 27, 2010

Budget Work Session Agenda

• Presentation of 2010-11 Initial Budget

• Discussion

Assumptions Affecting the FY 2010-2011 Budget

• Property value is estimated at a 1.2% decrease.

• Sales tax is projected to remain flat.

• Home starts are projected to be 200 (same as FY 2010).

• New personnel for Recreation Center and Library to be hired at various starting dates; revenues to partially offset this cost will begin FY 2011.

• Continuing with the public safety radio system project in partnership with the cities of Murphy, Plano and Allen. For FY 2011, $880,932 will be used from the General Fund – fund balance.

• Municipal Complex operating costs.

Assessed Property Valuations

2005-06 2006-07 2007-08 2008-09 2009-10 2010-110

200400600800

1000120014001600180020002200

Average Single Family Home Value for 2010-11 is: $ 152,564 *Certified Assessed Values for FY 2011.

$ 1566.7

$ 1785.5

$ 2024.7

$ 2184.2 $ 2222.6

Val

ues

in M

illi

ons

$ 2195.9*

Annual Sales Tax Receipts

2005-06 2006-07 2007-08 2008-09 2009-10 2010-20112

2.5

3

3.5

4

4.5

5

In M

illi

ons

$ 4.

390

$ 4.

540 $

5.00

0

$ 5.

182 $

5.19

6Includes estimated figures for FY 09-10 and proposed figures for FY 10-11.

$ 5

.196

General Fund Fund Summary

FY 2010-11Estimated Beginning Fund Balance - 10/01/10 7,413,328$

Proposed Revenue '11 23,179,518

Proposed Expenditures '11 (22,720,785)

Use of Fund Balance - Transfer to Emergency Communications Fund for radio system (880,932)

Use of Fund Balance - Transfer to Debt Service Fund for Debt Payments (400,000)

Use of Fund Balance - Equipment for New Municipal Complex (150,000)

Use of Fund Balance - Streets and Alleys (200,000)

Estimated Ending Fund Balance 09/30/11 6,241,129$

General Fund Projected RevenuesFY 2010-11$24,800,450

$13,620,89055%

$2,598,11210%

$2,260,0009%

$287,0301%

$566,2672%

$1,864,0008%

$548,1072%

$172,5001%

$1,252,6125%

$1,630,9327%

Ad Valorem Taxes - $13,620,890

Sales Tax - $2,598,112

Franchise Fees - $2,260,000

Licenses & Permits - $287,030

Intergovernmental Revenues - $566,267

Service Fees - $1,864,000

Court Fees - $548,107

Interest & Miscellaneous Revenue - $172,500

Transfers from Other Funds - $1,252,612

Use of Fund Balance - $1,630,932

General Fund Expenditures By Function FY 2010-11

$24,351,717 $8,387,410

34%

$10,550,89044%

$1,317,9625%

$1,301,0505%

$2,794,40512%

General Government - $8,387,410

Public Safety - $10,550,890

Development Services - $1,317,962

Streets - $1,301,050

Community Services - $2,794,405

Utility Fund Projected RevenuesFY 2010-11$11,279,000

$9,714,00086%

$65,0001%

$1,500,00013%

Service Fees - $9,714,000

Interest & Miscellaneous - $65,000

Other Financing Sources - $1,500,000

Utility Fund Expenditures by Department FY 2010-11

$11,249,235$314,350

3%$1,058,445

9%$438,660

4%

$626,6716%

$581,4845%

$8,229,67573%

Utility Administration - $314,350

Utilities - Water - $1,058,445

Engineering - $438,660

Utilities - Sewer - $626,671

Utility Billing - $581,484

Non-Departmental - $8,229,675

Utility Fund Fund Summary

FY 2010-11Estimated Beginning Fund Balance - 10/01/10 9,983,087$

Proposed Revenue '11 11,279,000 *

Proposed Expenditures '11 (11,249,235)

Estimated Ending Fund Balance 09/30/11 10,012,852$

* Includes $1,5000,000 transfer from Sewer Impact Fees.

4B Sales Tax Projected RevenuesFY 2010-11$1,321,556

$1,299,05698%

$10,0001%

$12,5001%

Sales Tax - $1,299,056

Service Fees - $10,000

Interest & Miscellaneous - $12,500

4B Sales Tax Expenditures by Department FY 2010-11

$1,620,016$316,883

20%

$227,35814%

$565,00034%

$510,77532%

4B Parks - $316,883

4B Recreation - $227,358

Non-Departmental - $565,000

Transfer to Rec Fund - $510,775

4B Sales Tax Fund Fund Summary

FY 2010-11

• An estimated transfer of $510,775 is included in the 4B expenditures to offset costs associated with the new Recreation Center.

Estimated Beginning Fund Balance - 10/01/10 1,422,379$

Proposed Revenue '11 1,321,556

Proposed Expenditures '11 (1,109,241)

Transfer to Rec Fund '11 (510,775)

Estimated Ending Fund Balance 09/30/11 1,123,919$

Recreation Fund Projected Revenues FY 2010-11

$600,000

$556,50093%

$43,5007%

Service Fees - $556,500

Miscellaneous Income - $43,500

Recreation Fund Expenditures by Category FY 2010-11

$1,160,775

$648,87556%

$94,7007%

$1,5001%

$388,70033%

$27,0002%

Personnel - $648,875

Supplies - $94,700

Materials - $1,500

Contractual Services - $388,700

Capital Outlay - $27,000

Recreation FundFund Summary

FY 2010-11

• An estimated transfer of $510,775 is included in the Recreation revenue to offset costs associated with the new Recreation Center.

Estimated Beginning Fund Balance - 10/01/10 50,000$

Proposed Revenue '11 600,000

Transfer from 4B Fund 510,775

Proposed Expenditures '11 (1,160,775)

Estimated Ending Fund Balance 09/30/11 -$

Emergency Communications Projected Revenues FY 2010-11

$1,579,214$7,500

1% $593,00037%

$2,0001%

$976,71461%

Intergovernmental Revenue - $7,500

Service Fees - $593,000

Interest & Miscellaneous - $2,000

Transfer from General Fund - $976,714

Emergency Communications Expenditures by Category

FY 2010-11$1,923,374

$712,52537%

$4,7901%

$28,4581%

$296,66915%

$880,93245%

Personnel Services - $712,525

Supplies - $4,790

Materials - $28,458

Contractual Services - $296,669

Capital Outlay - $880,932

Emergency CommunicationsFund Summary

FY 2010-11

• A transfer of $880,932 from General Fund-Fund Balance will be made for FY 2011 for the final installment of the Radio Communications Tower.

Estimated Beginning Fund Balance - 10/01/10 371,422$

Proposed Revenue '11 698,282

Transfer from General Fund for Radio System 880,932

Proposed Expenditures '11 (1,923,374)

Estimated Ending Fund Balance 09/30/11 27,262$

FY 2010-11 Recommended Key Budget Points

Employee Salary & Benefits Assumptions

• Step Increase of 0%

• Cost of Living Allowance Increase of 0%

• Pay reduction of 1.9% (equivalent of 5 days pay) for non-public safety full time employees with an additional 5 days of paid elective leave.

• Public safety employees would incur a 1% salary decrease for FY 2011.

• Health insurance must be re-bid summer 2010. Costs are projected to increase 25%.

7 YearAd Valorem Tax Rate History

• A $0.01 rate increase would provide approximately $200,000 in additional revenue

* 2010-2011 Preliminary Tax Rate

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-110.690000000232828

0.740000000232828

0.790000000232828

0.840000000232828

0.890000000232828

0.940000000232828

0.695000 0.6950000.706780 0.733250

0.8989000.898900 0.898900 *

General Fund Fleet Replacement

FY 2010 -2011• Police vehicles to be replaced during FY 2011 will consist of the following:

• Parks vehicles to be replaced during FY 2011 will consist of the following:

Vehicle Quantity Total AmountTahoe 3 171,000$ Impala 1 20,500$

191,500$

Police

Vehicle Quantity Total AmountToro Mower 2 150,000$

150,000$

Parks

Utility Fund Fleet Replacement

FY 2010 -2011• Engineering vehicles to be replaced during FY 2011 will consist of the

following:

• Sewer vehicles to be replaced during FY 2011 will consist of the following:

Vehicle Quantity Total AmountFord F-150 1 25,000$

25,000$

Engineering

Vehicle Quantity Total AmountChevy C2500 1 22,000$

22,000$

Sewer

Opportunities for Citizen Review & Input

Proposed Budget Filed with City Secretary 08/05/2010

Adoption of Resolution Setting Dates of Public Hearings 08/10/2010

1st of Two Public Hearings on the 2010-11 Tax Rate * 08/24/2010Hold a Public Hearing for the FY 2010-11 Budget 08/24/2010

2nd of Two Public Hearings on the 2010-11 Tax Rate * 09/07/2010Schedule & Announce Meeting to Adopt Tax Rate 2010-11 09/07/2010

Adopt 2010-11 Annual Operating Budget and Tax Rate 09/14/2010

Information regarding the proposed budget also will be available at Smith Public Library and online at http://www.wylietexas.gov/departments/finance/Budget.php

*if necessary

Questions?

City ManagerMindy [email protected]

Finance DirectorLinda [email protected]