city of cottonwood fy 2014 proposed budget overview
DESCRIPTION
CITY OF COTTONWOOD FY 2014 Proposed Budget Overview. City Council Chambers June 17, 2013 @ 6:00 P.M. Topics of discussion. Glossary of Acronyms FY 2014 Budget Summary Personnel ProgramsTRANSCRIPT
CITY OF COTTONWOODFY 2014 Proposed Budget Overview
City Council Chambers June 17, 2013 @ 6:00 P.M.
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Topics of discussion Glossary of Acronyms FY 2014 Budget Summary
Personnel Programs <$35K Capital
Major Revenues Update Funding Outside Agencies Water & Wastewater Rates Financing Needs Reserve Funds Status Future Meetings & Questions
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Glossary of Acronyms
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Glossary of Acronyms
ADOT – Arizona Department of Transportation ADEQ – Arizona Department of Environmental
Quality ASRS – Arizona State Retirement System ADWR – Arizona Department of Water Resources AZ - Arizona CAF – Capital Accumulation Fund CATS – Cottonwood Area Transit System CDBG – Community Development Block Grant CIP – Capital Improvements Plan/Program COLA – Cost Of Living Adjustment DOJ – Department of Justice DPS – Department of Public Safety DS – Debt Service DUI – Driving Under the Influence
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Glossary of Acronyms
E-MOD – Experience Modifier EMS – Emergency Medical Services FAA – Federal Aviation Administration FmHA – Farmers Home Administration FY – Fiscal Year GADA – Greater Arizona Development Authority GF - General Fund GOHS – Governor’s Office of Highway Safety HURF – Highway User Revenue Fund IGA – Inter-Governmental Agreement IT – Information Technology LP – Lease Purchase LTAF – Local Transportation Assistance Fund MPC – Municipal Property Corporation
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Glossary of Acronyms
MP Room – Multi Purpose Room O&M – Operation & Maintenance P&Z – Planning & Zoning PANT – Prescott Area Narcotics Taskforce PSPRS – Public Safety Personnel Retirement System SAFER – Staffing for Adequate Fire and Emergency
Response SCBA – Self Contained Breathing Apparatus Sp Ops – Special Operations SRO – School Resource Officer VLT – Vehicle License Tax WIFA – Water Infrastructure Finance Authority WWTP – Wastewater Treatment Plant YC – Yavapai County
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FY 2014 Budget Summary
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2014 Budget SummaryPersonnel
•Currently no additional staffing is in the budget
Dept Job Description Requested Range
Range Parameters Est. Salary (min +5%)
Benefits Est. Annual Costs
NEW PERSONNEL
Admin Marketing Coordinator/PIO 18 37,333 43,227 55,016 39,200 15,680 $54,880
Fire Assistant Fire Chief 33 77,613 89,867 114,373 81,494 32,597 $114,091
Police Communication Specialist 15 32,250 37,342 47,525 33,863 13,545 $47,408
Police Communication Specialist 15 32,250 37,342 47,525 33,863 13,545 $47,408
Police Records Clerk 13 29,252 33,870 43,106 30,715 12,286 $43,000Police Communications Supervisor 20 41,160 47,658 60,655 43,218 17,287 $60,505
Utilities Electrical Technician 15 32,250 37,342 47,525 33,863 13,545 $47,408
296,213 118,485 414,699
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2014 Budget SummaryPersonnel
Items currently included: Cost Of Living Adjustment (COLA) – 1.7% Longevity - $45,000 Merit program fully funded this fiscal year
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2014 Budget SummaryPersonnel
Health insurance premiums increased by 6.5% City continues to fund a portion of dependent
coverage No health insurance cost shift to employees
Reserve the right to adjust during the year
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2014 Budget SummaryPersonnel
Dental Coverage Employer Employer TotalVoluntary Vision
Coverage Employer Employer Total
Employee $42.00 $0.00 $42.00 Employee $0.00 $9.21 $9.21
Employee + Spouse $71.40 $12.60 $84.00 Employee + Spouse $0.00 $13.90 $13.90
Employee + Child(ren) $63.60 $5.40 $69.00 Employee + Child(ren) $0.00 $14.88 $14.88
Employee + Family $81.00 $26.00 $107.00 Employee + Family $0.00 $23.78 $23.78
* All these costs are monthly based
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2014 Budget SummaryPersonnel
Arizona State Retirement – 0.40% increase FY 2014 – 11.14% to 11.54%
PSPRS Fire – 2.18% increase FY 2014 – 14.63% to 16.81%
PSPRS Police – 4.98% increase FY 2014 – 24.90% to 29.88%
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2014 Budget SummaryPrograms
New Programs for FY 2014 Shared Safety Consultant
New Program Requests FY2014 FY2014 Approved
Dog Park Shade Structure $3,000Boys & Girls Club $25,000Old Town Center for the Arts $20,000FinanceFixed Asset Audit $20,000Human ResourcesSafety Consultant(In Budget) $25,000 $25,000Police Dept.C.A.L.E.A Accreditation 10,400 Public WorksService Contract for traffic signal 10,000 Transfer Station Increase - 80,000 Wood Chipping 1,000 MaintenanceReplace door Hardware Public Safety Building $8,000Completion of City Skate Park 31,500 HVAC air filter line item account only reduced op supplies3,000 City wide Fire Extgr, alarm and sprinkler contract 3,000 Total Program Requests General Fund $239,900 $25,000
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2014 Budget Summary <$35K Capital Outlay
Department Item Description AmountFire Self Contained Breathing Appartus - SCBA $150,000
EKG Monitor/Defibrillators (2) 60,000Staff Vehicle Replacement 50,000Thermal Imaging Cameras (2) 30,000Office Furniture Replacment 10,000
Police Patrol Vehicles (2) 91,388Water Utility Trucks (2) 55,000
Pickup Trucks (2) 56,000Handheld Thermal Imaging Device 8,500
Total Capital Budgeted - FY 2014 $510,888
FY 2013 Lease Purchase Funding
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2014 Budget Summary <$35K Capital Outlay
New Requests FY 2014 FY 2014 FY 2014Under $35,000 Requests Approved
AdminDesktop Computers 1,800 Black Hills Round-about Statute Partnership 25,000 CouncilUpdate Portal Signs to the City 15,400 City ClerkDesktop Computers 1,800 Police Dept.Domain Controller Server 6,700 Phone System Upgrade 29,000 Computer Replacement Program 18,000 Core Switch Replacement 1,650 Duty Weapons 4,000 Weapons Maintenance Parts 1,500 Simmunition Equipment 3,000 Evidence Building Fire Alarm 4,300 Body Worn Cameras 58,600 Rifles 3,000 - Steel Targets for the Range 2,000 Safety Sound Suppressors 5,000 Tasers 13,700 Mobile Radios 4,700 Multi-purpose Rooms Tables/Chairs 8,500 Laser Lidar Radar purchase 3,915 Police K9 Upgrade (high heat notification system) 3,000
New Requests FY 2014 FY 2014 FY 2014Under $35,000 Requests Approved
Economic DevelopmentBAC Laptops 1,500 FireComputer & Software Replacement Program 10,000 Officer & Station Equip 10,000 Physical Fitness Eq (including for new stations) 4,000 Communications/Radio/MCT' Infr 20,000 Emergency Operations Center Equip. (LP) 10,000 10,000 Parks & RecHand-held radio Equipment 3,000 Recreation CenterRec Cntr - 5-year Cap Repl Fund 25,000 Comm. DevDesktop Computers 1,500 Public WorksRe-Sealing of Library & Public Safety Bldgs 11,900
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2014 Budget Summary <$35K Capital Outlay
New Requests FY 2014 FY 2014 FY 2014Under $35,000 Requests Approved
MaintenanceTurf Mower Decks 19,000 New Gator for Riverfront Park 16,000 Skate Park Construction 29,600 Elm/Viejo park Const Proj - INFO MORGAN 25,000 StreetsStreet Light at 6th & Aspen 6,000 LibraryCarpet 35,000 AirportReconstruction of Airport Security gates 20,000 Sewer - O&MWastewater Treatment Basin Lighting 9,000 Water - O&MWater system operator’s laptop 7,000 Trailer Mounted Generator 45,000 Arsenic Remediation Regeneration Trailer 57,570 Water/Sewer - ADMINUsed Truck 30,000 Total Under $35,000 Capital Requests 585,635 10,000
There is $147,340 reserved for capital, programs, and operations.
Concern that departments cut too deep
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Major revenues update
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2014 Budget Summary
Revenue Fiscal Year HighestSource Notes 2011 2012 2013 2014 Collection Year
Local Sales Tax 1 $10,319,948 $10,551,049 $10,928,269 $11,332,615 $10,102,433 2008State Shared Income Tax 2 $1,057,034 $950,774 $1,150,590 $1,256,780 $1,623,403 2009State Shared Sales Tax $833,600 $880,250 $941,980 $973,380 $1,032,214 2007Motor Vehicle Tax $582,707 $602,832 $585,370 $586,200 $695,836 2006Bed Tax $101,677 $104,143 $108,000 $110,000 $120,484 2009HURF 3 $806,385 $713,231 $794,145 $794,630 $979,659 2007
1 - Sales Tax hihgest number in 2008 was at the 2.2% rate. At the current 3% it would be $13,766,0452 - Collection from 2007 (Pre-economic downturn)3 - State is hindering this revenue
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2014 Budget Summary
The Good Current GF reserve policies are being maintained Local economy showing signs of improvement Local sales tax is budgeted for small increase 3.7%
The Bad Fund Balance Policy not being followed in other funds Costs growing faster than revenues Too many demands on the City for support
Outside agencies Schools County
State still holding HURF hostage LTAF has not returned Loss of current Dispatch partners
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Funding Outside Agencies
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Funding Outside Agencies
Core Services – organizations providing a core or mandatory service on behalf of the City, that the City would otherwise have to provide.
Value Added Benefit Service – organizations providing an ongoing service that provides a value added benefit to the community, though not mandatory, would probably be provided by the City in some manner.
Program Funding – organizations, not considered providing the services described above, seeking funding for a specific program, or event.
Building Better Community Grants - $15,000 is budgeted
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Funding Outside Agencies
Organization FY 2013 FY 2014Old Town Association $13,000 $10,000Senior Center $45,000 $45,000Veterans Van $2,500 $2,000Humane Society $40,000 $41,200Catholic Charities $10,000 -
$15,000$10,000 -
$15,000Chamber of Commerce
Estimate $108,000
Proposed $110,000
New RequestsOld Town Center for Arts
$0 $20,000 request
Boys & Girls Club Received $10,000
$25,000 request
These organizations will be presenting on Thursday prior to wrap-up.
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Water & Wastewater Rates
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Water & Wastewater Rates
There is a strong need for rate adjustments Water - Lack of Debt Service Coverage – Should be
1.35X Continue to look for efficiencies in both systems Moody’s & S&P statements are on-line
Moody’s downgraded Cottonwood May 11, 2011 S&P downgraded Cottonwood June 12, 2013 Syncora issued a Notice of Noncompliance to our Water Bonds
Trustee - Bank of New York Trust Co. Rate Study presentation was on June 11th
Notice of Intent to Increase Water & Sewer Rates will be presented tomorrow
Any implementation is anticipated by October 1st
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Financing Needs
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Financing Needs
HURF $4,700,000
possible MPC bond
12th Street and Mingus Street Improvements
• Currently this is the only anticipated borrowing• Refunding of the Water Bonds are not in the budget
since the decision was made to wait until the City got closer to the call dates of the bonds, and improved bond coverage. That being November 2014 and January 2016
• We are contemplating bonding for:• Communication Center• City Hall Complex
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Reserve Funds Status
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GF Reserve Funds Status
60 Days Coverage $2,268,830 Capital Accumulation Fund$1,000,000 Undesignated Reserves $100,000 1% Sales Tax GF Capital $324,750 0.2% Sales Tax PS Capital Fund
$0 Reserve for Capital / Programs $147,340 Longevity Plan $45,000
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Future Meetings
Wednesday, June 19th at 6 p.m. Thursday, June 20th at 4:00 p.m.
Questions????