2/8/2018 1 CITY OF CHANDLER COUNCIL BUDGET WORKSHOP #1 February 8, 2018 6:00 p.m. – 7:00 p.m. Council Conference Room FY 2018-19 PRELIMINARY BUDGET UPDATE Financial Outlook Citizen Budget Survey Overview Preliminary General Fund Forecast Assessed Valuation Update Capital Improvement Program Update 2 AGENDA
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2/8/2018
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CITY OF CHANDLER
COUNCILBUDGET
WORKSHOP#1
February 8, 20186:00 p.m. –7:00 p.m.
CouncilConference
Room
FY 2018-19 PRELIMINARY BUDGET UPDATE
Financial Outlook
Citizen Budget Survey Overview
Preliminary General Fund Forecast
Assessed Valuation Update
Capital Improvement Program Update
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AGENDA
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FINANCIAL OUTLOOK
The Local and National Economy is Strong Longest Period of Economic Growth Experienced
Development Revenues Continue, and Growth of Sustainable Revenue Remains Slow and Steady
Potential Unknown State Legislative Actions Keep Chandler Cautious
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FINANCIAL OUTLOOK
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Where We Have BeenEffectively Weathered Economic Fluctuations Due to Council’s Ability to Maintain Vision, Goals and Policies
From Building Boom and Growth The Great Recession Implemented Reductions With No Layoffs Maintained Infrastructure Through Use of Reserve
Where We Are TodayA Financially Stable, Well Run City, Providing Great Value to Citizens Working Mayor and Council’s Planned Vision
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FINANCIAL OUTLOOK
Continue Adherence to All Fiscal Policies Expanded and Updated in 2016
Structurally Balanced Recurring Revenues Support
Recurring Expenditures Non-Recurring Revenues Support
Non-Recurring Expenditures
Maintain Strong Reserves 15% General Fund Contingency Reserve Budget Stabilization Reserve
Maintaining Strong Fiscal Policies Contributes to High Bond Ratings
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FY 2018-19 CITIZEN BUDGET SURVEY
OVERVIEW
Conducted Nov 1, 2017 – Dec 31, 2017 1,134 Responses (140 fewer than Prior Fiscal Year)
Overall, High Scores for City Operations: “Satisfaction with Overall City Services”
97% Very Satisfied, Satisfied, or Neutral
“Quality of Life”96% Excellent or Good
“Good Return on My Tax Dollars” 96% Strongly Agree , Agree, or Neutral 8
CITIZEN BUDGET SURVEY
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Priority Based Budgeting Sets Desired Results Based on
Council Goals
Desired Results A Safe Community A Community with Leisure, Culture,
and Education A Community with Effective
Transportation A Healthy and Attractive Community A Community with Sustainable
Economic Health9
CITIZEN BUDGET SURVEY
Areas of Interest
Public Safety
Leisure/Cultural/ Education
Transportation
City Utilities
General Services
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PRELIMINARY 5-YEAR ONGOING GENERAL FUND FORECAST
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PRELIMINARY GENERAL FUND FORECAST
The Forecast Reflects Slow, Sustainable Revenue Growth and Managing Expenditure Growth
Stable, Slow and Steady Growth of Ongoing Revenues
No Significant Deviations from Prior Year Forecast 89% of Total Revenues are Considered Ongoing Ongoing FY 2018-19 PY $204.7 vs. Preliminary $205.9M Local Sales Tax Support 52% State Shared Revenue Support 29%
Monitor Potential Legislative Actions that MayThreaten City Revenues
Monitor Potential Impact of New Federal Income Tax Law on City Revenues
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PRELIMINARY GENERAL FUND FORECAST>REVENUES<
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ONGOING AND ONE-TIME SALES TAX REVENUES
Approximately 79% of Operating Budget is Personnel Includes Major Benefit Increases of Retirement, Health and Workers
Compensation Over the 5 Year Forecast Estimates Salary Adjustments are Not Included in Forecast (Except ACE
Contract Since it was for 2 Years) All Three Public Safety Agreements are Open
Retirement is the Fastest Growing Employee Benefit Grown from $15.5M in FY 14-15 to $27.9M in FY 18-19 (up 80% in 4 yrs) ASRS Rate Increase is Minimal for FY 2018-19 (+0.3%) PSPRS Rate Increases are Significant for FY 2018-19 Fire (+3.94%) & Police (+3.75%)
Additional $5M One-Time Planned Towards Unfunded Liability14
PRELIMINARY GENERAL FUND FORECAST>PERSONNEL EXPENDITURES<
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Managing Expenditure Growth is Vital Goal: Maintain Existing Services
Department Ongoing Decision Packages $8.3M Total (Includes 13.5 Positions)
Prioritize Known Ongoing Demands First Employee Benefits, Utility Costs, Contract
Increases 15
PRELIMINARY GENERAL FUND FORECAST>O&M EXPENDITURES<
$2.35M Ongoing Surplus Available in Preliminary ForecastIncorporates ACE MOU Commitments & Employee Benefits Increases(Does Not Include Contracts Yet to Be Negotiated or General Employees)
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ASSESSED VALUATION AND PROPERTY TAXES
UPDATE
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Full Cash Value 209,000$ 221,000$ 5.74%
Limited Property Value 165,541$ 173,818$ 5.00%
Assessed Limited Cash Value (10%) 16,554$ 17,382$ 5.00%
TOTAL CITY PROPERTY TAX BILL 188.72$ 198.15$ 5.00%
INCREASE FROM CURRENT YEAR 9.44$
2017 2018 % Increase
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IMPACT OF 5% INCREASE TO LIMITED PROPERTY VALUES
5% increase in Limited Property Valuation, with Property Tax Rates unchanged, would increase the typical residential bill by $9.44 annually or $0.79 monthly.
BREAKDOWN OF $1 OF TYPICAL CHANDLER PROPERTY TAX BILL
Maricopa County, MaricopaCounty Flood Control District,
Central Arizona Water Conservation, etc.
Chandler Unified School District & Maricopa Community College District
City of Chandler
22.4 cents 67.8 cents 9.8 cents
Note: Based on 2017 Tax Bill information. Exact split will vary depending on the school district and any other special taxing districts on the bill.
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PRELIMINARY CAPITAL IMPROVEMENT PLAN
(CIP) UPDATE
Maintain Existing Infrastructure
Finish Planned Construction of Southeast Arterial Streets… and Neighborhood Parks (almost done)
Limit New Projects that Add Ongoing O&M
Address Public Needs (i.e. Streets, Multi-Use Fields)
MINIMIZE ANY INCREASE IN AMOUNT OF
PROPERTY TAX PAID BY HOMEOWNERS and BUSINESSES
CIP PRACTICES SUPPORT FINANCIALLY SUSTAINABLE GOAL
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FINAL PLANNED NEIGHBORHOOD PARKS
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PLANNED COMMUNITY & REGIONAL PARKS (PRELIMINARY)
*4 lighted fields at Tumbleweed and 2 lighted fields at Chuparosa can be supported in the updated plan as a result of higherFY 2016-17 tax levy receipts and planned repayments of loans from Impact Fee funds to the Debt Service fund