FY 2014-15 Proposed Budget PowerPoint Part 1 of 2
Proposed Budget FY 2014-15
FY 2014-15 Proposed Budget
Budget Goals:
Balanced Structurally
Conservative and Responsible
Follows Financial Policies
Maintains Current Service Levels
Focuses on Priorities
2 FY 2014-15 Proposed Budget
Management Practices
Focus on priorities
Maintain Appropriate Fund Balance
Team Input
Departments, Council, and Citizens
Forward Looking
Planning for Future Revenues & Expenses
Consider Project schedules
5 Year Forecast
Long Term Debt Model
3 FY 2014-15 Proposed Budget
Key City 5 Year Goals 2013
Building Repairs*
Rebuild Reserves**
Fire Station 3*
P25 Compliant Public Safety Radios**
Master Facilities Plan*
Hold Tax Rate Flat*
Compensation Study*
*Currently being worked on
**Has been completed
4 FY 2014-15 Proposed Budget
Key City 5 Year Goals 2014
Building Repairs*
Fire Station 3*
Master Facilities Plan*
Hold Tax Rate Flat*
Compensation Study*
FM 1518 Funding Study*
Maintain Reserves*
*Currently being worked on
5 FY 2014-15 Proposed Budget
Budget Highlights
Addresses all Key 5 Year Goals
Compensation Study and implementation
Administration Building, Fire Station #2 Repairs,
Recreation Center Repairs
Continues Master Facilities Plan, which includes
Fire Station #3
Includes a Funding Study on FM 1518
Continues to fund replacement reserves
Focus on our Fleet vehicles and operation
Replaces aging equipment
Long Term Debt Model
6 FY 2014-15 Proposed Budget
Pre-Budget Community Input
FM 1518 solution study as a priority
Facilities and Infrastructure planning
Continued focus on public safety
Plan for the future needs and services of the
community
Long Term Debt Plan (bond capacity analysis)
Employee Compensation, Staffing Levels, and
Training
7 FY 2014-15 Proposed Budget
All Funds - Revenues
General
Fund
39%
Water &
Sewer Fund
27%
EMS Fund
12%
I&S Fund
9%
General Fund
Water & Sewer Fund
Capital Recovery
Drainage
EMS Fund
Other
SEDC
I&S Fund
General Fund $25,814,170
Special Events Fund 153,800
PEG Fund 209,000
Water & Sewer Fund 17,860,678
EMS Fund 8,186,919
Drainage Fund 1,159,200
Hotel Tax 565,353
Park Fund 100,116
Tree Mitigation 116,335
Capital Recovery Water 885,500
Capital Recovery Sewer 1,160,497
I&S Fund 5,707,276
Other Funds 349,010
SEDC 3,692,257
Grand Total $65,960,111
8 FY 2014-15 Proposed Budget
All Funds - Expenses
General
Fund
39%
W&S Fund
28%
EMS Fund
13%
I&S Fund
9%
Budget
General Fund
W&S Fund
Capital Recovery
Drainage
EMS Fund
Other
SEDC
I&S Fund
General Fund $25,460,304
Special Events Fund 153,800
PEG Fund 209,000
Water & Sewer Fund 17,788,563
EMS Fund 8,151,501
Drainage Fund 1,094,618
Hotel Tax 564,402
Park Fund 60,000
Tree Mitigation 116,125
Capital Recovery Water 536,109
Capital Recovery Sewer 1,160,497
I&S Fund 5,636,157
Other Funds 339,000
SEDC 3,074,554
Grand Total $64,344,630
9 FY 2014-15 Proposed Budget
Fund Balance/Equity
FY 2014-15 Estimated Beginning Balance Net Change Budgeted Ending Balance
General Fund $5,936,142 $353,866 $6,290,008
Special Events Fund 89,752 (16,125) 73,627
PEG Fund 419,655 (89,428) 330,227
I&S Fund 537,677 71,119 608,796
Water & Sewer Fund 2,324,516 72,115 2,396,631
Capital Recovery-Water 4,885,761 349,391 5,235,152
Capital Recovery-Sewer 3,912,719 (559,497) 3,353,222
Drainage Fund 1,067,462 64,582 1,132,044
EMS Fund 1,651,754 35,418 1,687,172
SEDC 6,494,930 668,447 7,163,377
Hotel Tax Fund 358,072 (19,049) 339,023
Park Fund 93,023 40,000 133,023
Tree Mitigation 340,600 (79,915) 260,685
Library Fund 58,099 (6,940) 51,159
Historical Committee 9,659 0 9,659
Parks & Rec Foundation 146,966 6,950 153,916
10 FY 2014-15 Proposed Budget
2014 Property Values
2013 Adjusted Taxable value $ 2,502,344,661
2014 Equivalent Taxable Value $ 2,571,657,271
2014 New Improvements +$ 134,651,610
2014 Adjusted Taxable Value $ 2,706,308,881
Difference $ 203,964,220
11 FY 2014-15 Proposed Budget
2014 Property Taxes
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Guadalupe Comal Bexar
SA River Auth
Univ Health System
Road
College
County
School
City of Schertz
12 FY 2014-15 Proposed Budget
Tax Rate
Tax Rate Current
M&O $0.3010 To operate general
City services
I&S $0.1964 Pays for the City’s
debt
Total $0.4974 The combined tax rate
seen on the tax bill
13 FY 2014-15 Proposed Budget
Tax Rate
Effective: The tax rate which, on average, will
keep the tax bill the same as in 2013.
Current: The rate currently adopted by the City.
Proposed Max: The maximum rate set at which the final
adopted rate cannot exceed.
Rollback: The rate if exceeded allows citizens to
initiate a rollback election. The results of
this election can reduce the adopted tax
rate back to the rollback rate.
14 FY 2014-15 Proposed Budget
Tax Rate
Effective: $0.4857
Current: $0.4974
Proposed Max: $0.4974
Rollback: $0.5066
$0.01 is equal to $270,630 revenue or $17.42 on
the average home
Proposed budget is
balanced at this rate
15 FY 2014-15 Proposed Budget
Proposed Tax Rate Breakdown
Tax Rate Proposed
M&O $0.3164 To operate general
City services
I&S $0.1810 Pays for the City’s
debt
Total $0.4974 The combined tax rate
seen on the tax bill
16 FY 2014-15 Proposed Budget
FY 2013-14 City Tax Rate
At $0.4974
2013 Tax Bill = $820 Avg Home Value $164,194
2014 Tax Bill = $866 Avg Home Value $174,200
Increase = $ 46
2013 Tax Bill = $497 Home Value of $100,000
2014 Tax Bill = $497 Home Value of $100,000
Increase = $ 0
17 FY 2014-15 Proposed Budget
Historic Tax Rates – M&O
M&O
0.2881
M&O
0.3106
M&O
0.3345 M&O
0.2590
M&O
0.2590
M&O
0.2590
M&O
0.2842
M&O
0.2993
M&O
0.2993 M&O
0.2993
M&O
0.3010
0.0000
0.1000
0.2000
0.3000
0.4000
0.5000
0.6000
18 FY 2014-15 Proposed Budget
Historic Tax Rates – I&S
I&S
0.0879 I&S
0.0871
I&S
0.0972
I&S
0.1500 I&S
0.1500
I&S
0.1500 I&S
0.1500
I&S
0.1500
I&S
0.1850
I&S
0.2006 I&S
0.1964
0.0000
0.0500
0.1000
0.1500
0.2000
0.2500
19 FY 2014-15 Proposed Budget
Historic Tax Rates – Total
M&O
0.2881
M&O
0.3106
M&O
0.3345 M&O
0.259
M&O
0.259
M&O
0.259
M&O
0.2842
M&O
0.2993
M&O
0.2993
M&O
0.2993
M&O
0.3010
I&S
0.0879
I&S
0.0871
I&S
0.0972
I&S 0.15 I&S 0.15 I&S 0.15
I&S
0.15
I&S
0.15
I&S
0.185
I&S
0.2006 I&S 0.1964
0.0000
0.1000
0.2000
0.3000
0.4000
0.5000
0.6000
.3760 .3977 .4317 .4090 .4090 .4090 .4342 .4493
.4843 .4999
20 FY 2014-15 Proposed Budget
.4974
General Fund Revenues
Property Taxes $ 9,288,520
Sales Taxes 7,346,170
Fees 2,814,366
Franchises 1,986,159
Fund Transfers 1,878,881
Permits 1,175,803
Inter-Jurisdictional 708,392
Miscellaneous 462,650
Licenses 91,229
Library Fines 31,000
Other Taxes 31,000
Total Revenues $25,814,170
Property
Taxes
36%
Sales
Taxes
28%
Fees
11%
Property Taxes
Sales Taxes
Other Taxes
Franchises
Permits
Licenses
Fees
Library Fines
Inter-Jurisdictional
Fund Transfers
Miscellaneous
21 FY 2014-15 Proposed Budget
General Fund - Expenses
5%
6%
Fire Rescue
14%
Internal Service
15%
General
Government
28%
Police
23%
General Government
Internal Service
Police
Fire Rescue
Parks & Recreation
Inspections
Marshal Service
Library
Animal Service
Streets
General Government $ 7,364,919
Internal Service 3,789,517
Police 5,776,509
Fire Rescue 3,488,849
Inspections 588,744
Marshal Service 662,603
Streets 1,056,219
Parks & Recreation 1,380,331
Library 846,896
Animal Services 505,717
Total Expenses $25,460,304
22 FY 2014-15 Proposed Budget
General Fund
Revenues $25,814,170
Expenditures 25,460,304
Increase of Fund Balance 353,866
Beginning Fund Balance 5,936,141
Ending Fund Balance 6,290,008
25% Reserve Policy $6,142,323
23 FY 2014-15 Proposed Budget
M&O $0.3164
Total Change in Expenditures
$203,000 New Employees
$54,015 Small Expanded Programs (10,000 or less)
$794,800 Large Expanded Programs (over 10,000)
$300,000 Act on Compensation Study
$770,000 Continue Existing Staffing Levels & Programs
$2,121,815 Total Increase
$353,500 Reserve Funding
24 FY 2014-15 Proposed Budget
M&O $0.3164
New Personnel
$26,000 2 Seasonal Park Workers
$45,000 Accountant I
$93,000 2 additional Mechanics
$39,000 Building Maintenance Worker I
$203,000 Total New Employees
25 FY 2014-15 Proposed Budget
M&O $0.3164
Small Expanded Programs
$1,500 Baby Changing Stations
$2,500 Lync Implementation
$5,250 Portable AC Unit
$11,200 Fleet Equipment
$19,565 Laptops, Tablets, Printers, and Servers
$14,000 2 Defibrillators
$54,015 Total Small Expanded Programs
26 FY 2014-15 Proposed Budget
M&O $0.3164
Large Expanded Programs
$327,200 Vehicle Replacements
$36,000 Planning Tracking Software
$109,600 Replace 1/3 of SCBAs
$30,000 Additional Landscaping Services
$21,000 Animal Adoption Trailer (City Portion = $10,000)
$50,000 New/Replacement Desks & Minor Renovations
$150,000 Building Repairs
$20,000 May Charter Election
$50,000 FM 1518 Funding Study (I-10 to FM 78)
$794,800 Total New Programs
27 FY 2014-15 Proposed Budget
M&O $0.3164
Large Expanded Programs - Vehicles
$36,000 Replace Fire Chief’s Vehicle
$65,000 Replace Battalion Chief’s Vehicle
$28,000 Replace Inspections’ Truck
$28,000 Replace Streets’ Truck
$25,200 CID Replacement Vehicle
$60,000 Replace Parks’ Truck
$28,000 Building Maintenance Truck
$57,000 Fleet Replacement Fund
$327,200 Vehicle Replacements
28 FY 2014-15 Proposed Budget
M&O $0.3164
Reserve Funding
$169,000 Vehicle Replacement
$24,500 A/C Replacement
$25,000 Server Replacement
$35,000 Phone System Replacement
$100,000 Unassigned Fund Balance
$353,500 Total Reserve Funding
29 FY 2014-15 Proposed Budget
Historic Sales Tax
30 FY 2014-15 Proposed Budget
Sales Tax
FY 2012-13
Actual
FY 2013-14
Estimate
FY 2014-15
Budget
General
Fund
$6,421,478 $7,063,625 $7,346,170
+10% +4%
31 FY 2014-15 Proposed Budget
2013 - 5 Year Forecast
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
Revenue $22,689,507 $23,170,010 $23,501,901 $24,092,029 $24,754,718 $25,440,833
Expense $(21,513,138) $(22,618,597) $(22,776,669) $(24,009,901) $(24,699,240) $(25,547,867)
Reserve
Funding $1,176,369 $551,413 $725,232 $82,128 $55,479 $(107,034)
M&O Fund
Balance $3,976,709 $4,528,123 $5,253,355 $5,335,484 $5,390,962 $5,283,928
25% Goal $5,471,635 $5,637,149 $5,694,167 $5,983,725 $6,174,810 $6,371,967
Over/Under $(1,494,926) $(1,109,026) $(440,812) $(648,242) $(783,848) $(1,088,039)
32 FY 2014-15 Proposed Budget
2014 - 5 Year Forecast
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Revenue $24,611,808 $25,814,170 $26,755,653 $27,822,123 $28,943,387 $30,122,409
Expense $(23,338,563) $(25,460,304) $(26,525,088) $(27,808,712) $(28,912,910) $(29,795,924)
Reserve
Funding $1,273,245 $353,866 $230,565 $13,410 $30,477 $326,485
M&O Fund
Balance $5,936,141 $6,290,008 $6,520,572 $6,533,982 $6,564,460 $6,890,945
25% Goal $5,686,391 $6,150,872 $6,578,522 $6,918,178 $7,219,477 $7,448,981
Over/Under $249,750 $139,1356 $(57,950) $(384,196) $(655,017) $(558,036)
33 FY 2014-15 Proposed Budget
Long Term Debt Model
For I&S Fund
Purpose:
To avoid large tax increases in the future
Design:
Model is long term in nature
Includes all current debt obligations
Takes into account the growth of the tax base
Ensures fund balance never falls below a certain
level
Includes bond elections every 5 years
34 FY 2014-15 Proposed Budget
5 Year Summary – I&S Fund
At I&S Rate of $0.1810:
Includes $25 million bond package from
elections in 2015
The lowest fund balance is $522,147 in FY
2017-18 which is 8.4% of the annual debt
service
Rate could fluctuate based on the actual
growth of the tax base and the results from
the bond election but at a reduced rate due
to the model
35 FY 2014-15 Proposed Budget
Graph of Debt Service
36 FY 2014-15 Proposed Budget
Target Tax Rate
Tax
Rate
Current Recommended
Maximum
Alternative
M&O $0.3010 $0.3164 $0.3139
I&S $0.1964 $0.1810 $0.1810
Total $0.4974 $0.4974 $0.4949
37 FY 2014-15 Proposed Budget
Proposed Public Hearing Dates
August 19th, 2014
August 26th, 2014
38 FY 2014-15 Proposed Budget
Budget Calendar FY 2014-15
July 31 File with City Secretary, Budget Workshop
August 5 Budget Workshop, vote to place a preliminary tax
rate on the agenda, and schedule public hearings
August 6 First Community Budget Presentation – Civic
Center
August 12 Budget Workshop
August 14 Second Community Budget Presentation – Schertz
United Methodist Church
August 19 First Public Hearing
August 26 Second Public Hearing, First Vote
September 2 Second Vote
October 1 Budget goes into effect
39 FY 2014-15 Proposed Budget
Proposed Budget FY 2014-15