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FY 2014-15 Proposed Budget PowerPoint Change Memo 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 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 3 FY 2014-15 Proposed Budget Budget Highlights Addresses all Key 5 Year Goals Focus on our Fleet vehicles and operation Replaces aging equipment Long Term Debt Model 4 FY 2014-15 Proposed Budget Change Memo Crossing Guards Bring total Crossing Guards to 9 Increase deployment time to 18 hours per week Paid by Restricted Crossing Guard Funds Transportation Services New request higher than current year 5 FY 2014-15 Proposed Budget Change Memo Hotel Tax The Sweetheart Program will be primarily funded by the General Fund Event Facilities will now be entirely funded by the General Fund If the Event Facilities become eligible to receive hotel tax funds in the future, staff will seek direction from council through the budget process 6 FY 2014-15 Proposed Budget Change Memo Health Insurance 0% Increase through December 31, 2015 The General Fund will use these savings to offset the Hotel Tax policy change Event Facilities Sweetheart Program Other Funds will put this savings toward the Compensation Study Action 7 FY 2014-15 Proposed Budget Change Memo EMS Permanently Staff a 5th active ambulance during peak times Based on recommendation by Fitch & Associates, EMS has been running this ambulance using PT workers and Overtime Using the most recent estimates there will be no change in funding request by making this change 8 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 $25,695,043 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 545,353 Park Fund 100,000 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 $65,820,868 9 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 $25,406,088 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 302,730 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 $64,028,742 10 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. 11 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 12 FY 2014-15 Proposed Budget General Fund Revenues $25,695,043 Expenditures 25,406,088 Increase of Fund Balance 288,955 Beginning Fund Balance 5,936,141 Ending Fund Balance 6,225,096 25% Reserve Policy $6,106,237 13 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 14 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 15 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 16 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 17 FY 2014-15 Proposed Budget Public Works Equipment Equipment Expense 3 Backhoes $195,000 Haul Truck & Trailer $125,000 Belly Dump Trailer $50,000 Chipper & Truck $99,200 Tractor w/Arm Mower $105,000 Zero Turn Mower $16,500 Front End Loader $209,000 Replacement Motor Grader $200,000 Street Sweeper $200,000 Total: $1,199,700 18 FY 2014-15 Proposed Budget Loan will be divided between the following funds: 65% Drainage 15% Water & Sewer 20% General Fund/I&S M&O $0.3164 Reserve Funding $169,000 Vehicle Replacement $24,500 A/C Replacement $25,000 Server Replacement $35,000 Phone System Replacement $35,455 Unassigned Fund Balance $288,955 Total Reserve Funding 19 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) 20 FY 2014-15 Proposed Budget 2014 - 5 Year Forecast FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Revenue $24,611,808 $25,695,043 $26,675,735 $27,741,406 $28,861,862 $30,040,069 Expense $(23,338,563) $(25,406,088) $(26,482,051) $(27,773,615) $(28,825,511) $(29,656,219) Reserve Funding $1,273,245 $288,955 $193,684 $(32,310) $36,351 $383,850 M&O Fund Balance $5,936,141 $6,225,096 $6,418,780 $6,386,570 $6,422,921 $6,806,772 25% Goal $5,686,391 $6,106,237 $6,567,763 $6,909,404 $7,197,628 $7,414,055 Over/Under $249,750 $118,859 $(148,983) $(522,834) $(774,706) $(607,283) 21 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 22 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 23 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 24 FY 2014-15 Proposed Budget Proposed Budget FY 2014-15