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Town of Hadleyville Budget Briefing Books TOWN OF HADLEYVILLE DEPARTMENT OF FINANCE 1245 LINCOLN BOULEVARD HADLEYVILLE, AZ 85001 BUDGET BRIEFING BOOKS HADLEYVILLE Town of Hadleyville Budget Briefing Books Summary The following budget lay s out the beginning steps to creating a future budget that will not operate in defi cit while still offer ing some essential services to the residents of Hadleyville . It is the town’s mission to provide services which offer the quality of life in Hadleyville that makes people want to live and raise their children here . We are entering i nto three major capital construction projects that are essential to improving the quality of lif e in Hadleyville . This year represents an opportunity for the Town of Hadleyville to finalize these capital construction projects and make any final modificati ons to the financing and timeline expected for these projects. Major Factors Impacting the 2011 Budget Economic Climate The Town ’s budget and overall financial plans are directly linked to the state of the regional and national economies. Economic forec asters expect our Town ’s economic forecast to improve slightly over the next three years, as well as, generate other industry and revenue into the future with the right planning now. We believe the investment in a Senior Center, Elementary School, and Wate r Treatment Plant will help with the future economic improvement by providing quality services for businesses and residents in Hadleyville. General Town Revenue Hadleyville has seen a decrease in general revenue categories due to families moving out of th e area with the closing of a major employer. Although, revenues are down, important fee based services are still producing significant revenue for the Town . By improving facilities for youth, offering adult and senior programs at the new elementary schoo l, and building a senior center , we are estimating some potential revenue growth opportunities for families. Industry/Employment We know that families canno t enjoy recreational programming for fees if the Town does not retain a major employer. We also kn ow the importance a major industry employer can have on the local economy and we are actively engaged in discussion with several large companies about relocating to Hadleyville. We anticipate that through discussion and demonstration of the value Hadleyvil le can bring to an employer that within three to five years we will have a new major employer in the Town . Continued efforts to attract new business will serve as our primary strategy for increasing revenues . In addition, recommendations made by the Fin ance Department will ideally help to rectify the long -term issues created by deficit spending. Town of Hadleyville Budget Briefing Books Overall Budget Information Town Staffing Several positions have been restructured within the Town to adapt to the needs and skills necessary for the Town of H adleyville to be successful. We have grown our staffing levels over the last several years and anticipate more growth if the budget allows in the coming years. Policing We have added the use of speed camer a/photo radar in our Town primarily as a safety p recaution, but we have seen a surprising source of revenue from this policing effort . We very much would love to see this revenue source decline for the Town ; however, in the meantime we are making sure our residents are aware of this effort. Maintaining Infrastructure/Capital Projects Maintaining and enhancing the Town ’s infrastructure is critical to the Town ’s future. Given the Town ’s current financial commitments and the overall state of the economy we understand the difficult decisions we face relate d to maintaining our planned efforts for the Water Treatment Plant, new Elementary School, and Senior Center. We have asked a team of experts to take a look at the Town of Hadleyville’s current and past budgets as well as future projections to determine i f the plans we have put in place are feasible in the same timeline expected given the goal of reducing our deficit spending. Many Town of Hadleyville staff contributed to preparing the budget. The budget process is truly one project that involves all Tow n departments. The many people working together on its production exemplify the values of teamwork, craftsmanship, and public service that guide Town staff in all of our work throughout the year. Financial Management Policies Statement of Purpose The financial integrity of the Town of Hadleyville is of utmost importance. To discuss, write, and adopt a set of financial policies is a key element to maintaining this integrity. These financial management policies are designed to ensure the fiscal stabili ty of the Town of Hadleyville and to guide the development and administration of the annual operating and capital budgets, as well as the debt program. Written, adopted financial policies have many benefits, such as assisting the Mayor and Council and Cit y Manager in the financial management of the Town, saving time and energy when discussing financial matters, promoting public confidence, and providing continuity over time as the mayor and Council and staff members change. While these policies will be am ended periodically, they will provide the foundation and framework for many of the issues and decisions facing the Town. They will promote wise and prudent financial management, provide the foundation for adequate funding of services desired by the public , and help make the Town more financially stable, efficient, and effective . Town of Hadleyville Budget Briefing Books Objectives The following are some objectives which should be considered when analyzing the budget documents and make recommendations: Basis for Budgeting Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles. Accordingly, all governmental fund budgets are presented on the modified accrual basis of accounting. Under this method of accounting, revenue an d other governm ental fund r esources are recognized in the accounting period in which they become susceptible to accrual – this is, when they become both “measureable and available” to finance current operating expenditures for the fiscal period. Federal grant funds follow the requi red federal accounting requirements for expenditure and reimbursement of funds to the Town. Capital Improvement Projects All capital improvement projects m ust demonstrate the importance of the Town priorities, go through a workgroup process to explore the benefits of the project , and be approved by the Town Council. Projects may also be approved , but upon additional review and consideration , timelines and costs may be adjusted to reflect the Town’s best interests. Basic Services, Parks & Facilities The se services include operation and maintenance, open space and recreation facilities, neighborhood and Town -wide parks, greenways, trails, right -of-way islands and landscaping including street trees, playgrounds, non -reservation amenities and other similar public facilities, maintenance operations facilities, as well as overall department administrative activities. These services primarily serve to support individual and small -group recreation activities. 1. Assist the Mayor and Cou ncil and Town management by providing accurate and timely information on financial conditions pertinent to the Town operations. 2. Provide sound financial principles with which to guide the important decisions of the mayor and Council and management, which ha ve significant fiscal impact. 3. Set forth operational principles that minimize the cost of government and financial risk, to the extent consistent with services desired by the public. 4. Enhance the policy -making ability of the Mayor and Council by providing ac curate information on program costs. 5. Ensure the legal use of all Town funds through a sound financial system and strong internal controls. 6. Employ revenue policies that diversify revenue sources, distribute the costs of municipal services fairly, and provid e adequate funds to operate desired programs. Town of Hadleyville Budget Briefing Books No cost recovery is associated with the followin g ser vices, which are provided to the community from Town Revenue: Community Benefit – Core Programs These services include core or basic recreation programs and activities and events and are available for a fee and include: Large Group Park Use – Party/Picnic/Gatherings Youth Recreation & Classes Adult Recreation & Classes Senior Recreation & Classes Development and Review of Programs and Other Revenue The Town of Hadleyville is asking a team of experts to review additional programming revenue opportunities for fee services. Debt Management Debt management will provide for the protection of bond rating, the maintenance of adequate debt service reserves, compliance with debt covenant provisions and appropriate disclosure to investors, underwrit ers and rating agencies All debt issuance shall comply with Federal, State, and Town charter requirements and adhere to federal arbitrage regulations. The Town shall maintain an ongoing performance monitoring system of various outstanding bond indebtedness issues and utilize this monitoring system as a performance criterion for the administration of the Town’s outstanding indebtedness. Parks Skate Park Hiking Playground Picnic areas Trails Bike paths Dog Park Outdoor courts Play areas Revenue 07 Actual 08 Actual 09 Actual 10 Actual 11 Projected 12 Projected 13 Projected General Sales Tax (1.4 Percent) 27,500,000 26,614,075 23,800,000 20,450,000 18,599,840 16,128,880 15,713,360 Water Use Fees 5,500,000 5,250,000 4,825,000 4,000,000 4,250,000 4,000,000 4,000,000 Federal FundsCommunity Development Block Grant 2,160,850 2,600,000 2,613,000 3,110,500 3,450,700 3,989,300 4,120,110 Water Use Grant 500,000 500,000 500,000 750,000 750,000 900,000 900,000 Parks & Recreation User FeesSwimming Pool 133,000 130,000 125,000 125,000 115,000 120,000 120,000 Youth Programs 525,000 500,000 475,000 450,000 425,000 400,000 375,000 Adult Programs 900,000 600,000 615,000 591,000 550,000 525,000 450,000 Park Use Fees 100,000 90,000 80,000 75,000 50,000 50,000 50,000 Senior Center 150,000 150,000 150,000 125,000 100,000 100,000 100,000 Property TaxesSewer 6,500,000 6,500,000 6,000,000 5,900,000 5,750,000 5,600,000 5,500,000 Garbage 1,900,000 1,900,000 1,800,000 1,750,000 1,350,000 1,350,000 1,350,000 PoliceSpeed Camera - 125,000 250,000 250,000 225,000 200,000 200,000 Patrol 500,000 500,000 310,000 550,000 400,000 450,000 500,000 Parking Enforcement 112,000 110,000 110,000 125,000 100,000 100,000 100,000 Liscense & Permits 350,000 219,800 177,500 102,890 100,000 90,000 80,000 General Fines 110,000 165,580 117,910 147,880 150,000 140,000 130,000 General Collections from Other Revenue Departments 12,500,000 8,000,000 6,000,000 5,000,000 3,500,000 3,100,000 2,800,000 Total 59,440,850 53,954,455 47,948,410 43,502,270 39,865,540 37,243,180 36,488,470 Town of HadleyvilleJune, 2010 FY 2007 - 2013 Total Revenues by Funding Source Town of Hadleyville Budget Briefing Books Town of Hadleyville Budget Briefing Books $59,440,850 $53,954,455 $47,948,410 $43,502,270 $39,865,540 $37,243,180 $36,488,470 30000000 35000000 40000000 45000000 50000000 55000000 60000000 65000000 70000000 75000000 80000000 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 Total Revenues And Expenditures FY 2007 -2013 Total Revenue 07 Actual 08 Actual 09 Actual 10 Actual Budget 11 Adopted Budget 12 Projected 13 Projected Central Administration/Personnel 1,169,410 1,169,410 1,169,500 1,180,500 1,180,500 1,180,500 1,180,000 Transportation 12,500,000 13,000,000 13,650,000 14,890,110 14,890,110 14,890,110 14,890,110 Office of the Inspector General 313,000 313,000 313,000 320,000 325,000 325,000 325,000 Office of the Mayor/Town Council 800,000 810,000 820,000 830,000 760,000 755,000 755,000 Office of Budget and Finance 258,980 300,000 310,000 308,000 258,900 250,000 250,000 Water and Sewerage 3,560,000 3,560,000 3,308,000 3,308,000 2,305,500 2,305,500 2,200,000 Economic Security 2,986,660 3,050,610 3,199,510 3,407,000 3,407,000 3,500,000 3,500,000 Bus and Fleet Services 660,500 750,000 800,000 810,000 835,000 844,000 921,000 Electrical and Gas Utility 4,340,440 5,100,000 5,600,000 7,500,000 7,500,000 7,130,350 7,880,670 Parks and Recreation 980,170 1,100,000 1,100,000 1,350,000 1,400,000 1,400,000 1,400,000 Public Health 455,000 500,000 680,000 750,000 750,000 750,000 750,000 Emergency Management 1,351,880 1,500,000 2,400,000 2,400,000 2,400,000 3,000,000 3,300,000 Public Safety (Police, Fire, EMT) 22,000,000 23,000,000 22,000,000 22,000,000 21,600,000 21,600,000 21,600,000 Community Development 1,678,920 1,678,920 1,678,920 1,890,000 2,000,000 2,000,000 2,100,000 Public Housing 1,850,650 2,100,000 2,150,000 2,200,000 2,300,000 2,400,000 2,500,000 Commerce 751,600 800,000.00 800,000.00 900,000.00 954,680.00 981,270.00 981,270.00 50,206,630.00 52,983,610.00 54,180,510.00 57,873,110.00 56,431,510.00 56,749,960.00 57,771,780.00 Hadleyville Selected General Operating Budget (All Departments) Town of Hadleyville Budget Briefing Books Water Sewage Department 10 Actual Budget 11 Adopted Budget Water Department Operating Budget Personnel 350,000.00 350,000.00 Benefits/ERE 98,000.00 98,000.00 Overtime 50,000.00 50,000.00 Operating 250,000.00 250,000.00 Capital Outlay 1,500,000.00 750,000.00 Travel 10,000.00 7,500.00 Professional & Outside Services 450,000.00 200,000.00 Contracted Services for Maintenance 200,000.00 200,000.00 Contracted Services for Equipment Replacement 250,000.00 200,000.00 Vehicle - Department Water 600,000.00 600,000.00 Maintenance 150,000.00 150,000.00 Fuel 300,000.00 300,000.00 Repair 150,000.00 150,000.00 City Fee for City Operations 3,250,000.00 3,025,000.00 3,308,000.00 2,305,500.00 Revenue Water Use Fees 4,500,000.00 4,250,000.00 $19.79 plus $7.15 per 1000 cubic feet used for every two (2) months of each year with a minimum bill of $19.79 bi-monthly Sewer/Reclamation 6,000,000.00 5,750,000.00 32.00 plus $8.70 per 1000 cubic feet bi-monthly based on the amount of water billed in the winter months of December & January with minimum monthly bill of $32.00 bi-monthly Water Use Grant 750,000.00 750,000.00 Garbage 1,750,000.00 1,350,000.00 13,000,000.00 12,100,000.00 Capital Improvement Project Revenue - 9,794,500.00 Town of Hadleyville Budget Briefing Books Economic Security Department 10 Actual Budget 11 Adopted Budget Economic Security Department Operating Budget Personnel 400,000.00 400,000.00 Benefits/ERE 112,000.00 112,000.00 Overtime 20,000.00 20,000.00 Operating 100,000.00 100,000.00 Capital Outlay - - Travel 15,000.00 15,000.00 Professional & Outside Services 10,000.00 10,000.00 CDBG Grant Awards 2,750,000.00 2,750,000.00 3,407,000.00 3,407,000.00 Revenue Community Development Block Grant 3,000,000.00 3,000,000.00 Town of Hadleyville Budget Briefing Books Capital Water Treatment Project Year 1 Year 2 Year 3 Year 4 Water Treatment Project Personnel 350,000.00 375,000.00 500,000.00 750,000.00 ERE/Benfits 98,000.00 105,000.00 140,000.00 210,000.00 Professional & Outside Service 1,500,000.00 6,000,000.00 5,625,600.00 2,280,000.00 Project General Contractor 350,000.00 1,000,000.00 1,000,000.00 550,000.00 Excavation 1,000,000.00 500,000.00 Concrete Build 2,500,000.00 1,000,000.00 Plumbing 1,000,000.00 1,500,000.00 980,000.00 Electrical 150,000.00 1,000,000.00 2,125,600.00 750,000.00 Capital Outlay 150,000.00 350,000.00 350,000.00 150,000.00 2,098,000.00 6,830,000.00 6,615,600.00 3,390,000.00 18,933,600.00 Town of Hadleyville Budget Briefing Books