091807 Biennial Budget ProcessFY 2008-09 & FY 2009-10 Biennial
Budget Preliminary Outlook
“First Look”
September 18, 2007
1
Disclaimer
•Extremely early in the Process
•Major trend changes possible
•All numbers subject to change (and they will)
•Preliminary assumptions to get started
2
Today’s Agenda
•Discuss assumptions
•Discuss revenue trends
•Discuss possible impacts
•Conclusion: How comfortable are we with
assumptions & direction?
3
Process Changes
Previous Changes:
•Community Conversation held early in the process to get public input
•Development of Biennial Budget
•Implementation of “Schmidt”Base-Level Ordinance
•Budget driver presentations
•Budget execution briefings by departments
Current Changes:
•Blue Ribbon Budget Taskforce
•Town Hall Meeting on the Budget –October 16 th
•Budget education classes done with the help of the CCO
•This briefing today
•City Council review of budget and CIP increased from 6 weeks to 7 weeks
•Simplify budget document
Discussion Points:
1.Do we want to continue the budget execution briefings by departments or would
quarterly financial briefings be more helpful to the Council?
2.Are there any other changes you would like to see to the process?
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Process Timeline
Revenue Projections
(in millions)
FY 08FY 08 FY 09 FY 10
AdjustedProjectedProjected
Original
Real Estate$ 474.9$ 471.5$ 485.6$ 500.2
Personal Property137.0130.9136.4143.7
General Sales55.756.859.362.2
Utility42.239.640.040.5
Business License45.041.944.446.9
Franchise 4.75.35.65.9
All other local revenue153.1155.6159.1160.6
State90.090.090.490.4
Federal25.025.025.225.3
Total General Fund$ 1,027.6$ 1,016.6$ 1,046.0$ 1,075.7
-$11 million
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Real Estate Taxes
550
Millions
These three revenues equal nearly
450
70% of the total General Fund.
350
250
04050607080910
Fiscal Year
State
ProjectedBudgeted
100
Millions
90
80
Personal Property
70
60
150
Millions
50
140
04050607080910
130
Fiscal Year
120
110
ProjectedBudgeted
100
90
80
04050607080910
Fiscal Year
ProjectedBudgeted
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FY 2009 & FY 2010
Major Assumptions –“First Look”
Major Revenue Assumptions:
•No tax rate adjustments (Real Estate Tax remains at 89 cents)
•With the exception of transportation and education revenue, state
revenue is flat
•Update fees to support current program costs
Blue Ribbon Committee
recommendations due in
Major Expenditure Assumptions:
November
•Merit of 2% and general increase of 1.5%
•Health Insurance contribution of $5,400
•Implement modified market survey
•Full funding for GASB 45
•VRS retirement and life insurance remain the same
•Debt service based on previous issuances and current CIP
•Allocate additional pay-as-you-go of $10 million each year
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So what does it all mean?
Projected FY 2008-09 Revenues:$ 1,046.0 Billion
Less:
Schools portion of the revenue sharing formula395.7 million
City debt service44.5 million
All other Council dedicated revenues61.3 Million
Tax Relief for the Elderly15.0 million
City Compensation (includes rollover from previous year)11.5 million
Funding needed for GASB 45 requirement7.7 million
Amount available for departments$ 510.3 million
Current year’s budget for departments $ 528.1 million
(including inflation)
Potential impact to services($ 17.8 million)
Increased pay-as-you-go to the CIP($10.0 million)
Potential impact to services($ 27.8 million)
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Departments are being asked to:
•Look for ways to increase fees –both to
reduce our reliance on the Real Estate Tax
and to fund current services
•To identify ways to improve efficiency
savings
•To identify three programs that could be
reviewed for elimination or reduction
•And, to identify new programs or programs
that need expansion due to demand
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Summary “First Look”
Major Revenue Assumptions:
•No tax rate adjustments (Real Estate Tax remains at 89 cents)
•With the exception of transportation and education revenue, state
revenue is flat
•Update fees to support current program costs
Major Expenditure Assumptions:
Blue Ribbon Committee
•Merit of 2% and general increase of 1.5%
recommendations due in
November
•Health Insurance contribution of $5,400
•Implement modified market survey
•Full funding for GASB 45
•VRS retirement and life insurance remain the same
•Debt service based on previous issuances and current CIP
•Allocate additional pay-as-you-go of $10 million each year
Discussion Point:
1.How comfortable are we with these assumptions to start the next biennium?
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