GFOAZ ConferencePublic & Budget

Session

Prepared by: Julie A. Ghetti, MPA, CPA

August 12, 2011

Adopted Annual Budget for FY2012 = $38.3M

General Fund = $12.6MP

opulation = 22,489A

uthorized FTE’s for FY2011/12 = 59 (down from 88 in FY08

Services Provided by 7 Departments:

Police and Fire/EMS (contracted) Recreation, Parks, Community Center Public Works, Streets, Code Enforcement, Building Safety Administration, Municipal Court, Town Council

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Local Economy – lack of commercial property

Lack of primary property tax

Dependence upon sales tax and shared revenues

Legislative

2010 census and growth of surrounding communities

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2010 census population showed 8.2% drop from 2005 census

54 of 91 communities grew in population, some as much as 173%

Amount needed to bring budget back in balance is $513,000 in the General Fund and $100,000 in the HURF fund

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Proposed solutions must be aligned with the following three principles:

1. Be permanent and sustainable There are likely to be more declines in the

future due to legislative action, increased population in other communities

The Town has to adjust to the new fiscal reality2. Preserve organizational integrity

The ability to perpetually provide the high level of service that the citizens have come to expect

3. Be equitable Does not rely on one source or citizens group Spreads the burden among various publics

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Increase revenues

Decrease expenditures

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Estimated Annual Amount

Comments

Sales tax on telecommunications from 2.6% to 3.1%

$275,000 Does not require

Sales tax on telecommunications to 3.6%

$550,000 vote of the

Sales tax on telecommunications to 4.0%

$750,000 citizens

Water franchise fee (5%) $375,000 Requires vote of the citizens – n/a until 2013

Primary property tax ($0.50 per $100/AV)

$2,225,000 Requires vote of the citizens – n/a until 2013

Estimated Annual Savings

Comments

Staff pay cuts (10%) $310,000 Not sustainable – 25% reduction since 2009

Staff furloughs $115,000 Not sustainable

Eliminate programs $120,000 Reduces organization integrity

Reduce community contracts by another 20%

$60,750 Reduces organization integrity

Utilize Rainy Day Fund $515,000 Temporary solution

Eliminate funding for Vehicle Replacement Fund

$140,000 Not sustainable

Restructure debt payment for Community Center

$193,500 Potential shortfall in MPC debt service fund in FY14

Reduce contracts: Law Enforcement from 3.8 to 3.4 beats

$215,500 Eliminates 2 deputies, 1 detective, 1 sergeant

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Reduced Town contribution to community contracts

Restructured annual debt payment for MPC bonds

Utilized fund balance to pay off MPC bonds for Town Hall

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Revenue reduction = $2.1M over the past three yearsProjection into the future shows $2.1M will not return

$6.6M

$4.5M$4.5M

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JANUARY 2011Balanced Budget

$12.6M

MARCH 2011Budget Gap $513K

$12.1M

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Assumes new revenue and no increase in level of service

Assumes no increase in revenues

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No central public information office to disseminate information

New laws affecting fee schedule

Lack of public involvement

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Makeup of Executive Budget Committee – new proposals came forward

Coordination of goals with Strategic Plan

Involvement with Boards and Commissions

Expanded use of volunteers

Use of charts and graphs to avoid more cuts

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Two public budget open houses

Updated draft budgets on web

Televised three budget work study sessions

Replayed budget work study sessions through the month of July

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