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HomeMy WebLinkAboutWS Item 02 - Fiscal Year 2001 BudgetwKn►+o 2 - MEMO MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER All MEETING DATE: JULY 31, 2000 SUBJECT: FISCAL YEAR 2001 BUDGET The budget, as previously presented, assumed a net taxable valuation for the community of $4,488,805,828. This was the preliminary net taxable amount provided by TAD on May 15th of this year. We knew of a total of $11,053,039 of property values under protest at that time. As you are probably aware, the TAD valuations for properties this year, for both business and residential, included some very sharp increases. Typically the bulk of the protests are filed well before the mid-May issuance of the preliminary tax rolls. That was not the case this year. On July 25th we received the official rolls from TAD and the net taxable value had fallen by $214,045,011 to $4,274,760,817. We anticipate some change in the net taxable value every year, (last year the net taxable value went up between May and July) but it is usually a very manageable amount. When you look at the numbers across the county you see reductions that are much closer to what we typically experience than the drop this year. For example, Colleyville and Hurst both lost roughly $12,000,000 and $10,000,000, respectively. Grapevine, on the other hand, finds itself more in line with the losses felt by Arlington ($420,000,000) and Bedford (91,000,000). The value loss of $214,045,011 is offset to some extent by the minimum value of property still under protest. In other words, the property the Appraisal Review Board is still considering has a minimum net taxable value of $71,224,316 that we get to add back in to our total net taxable value. This brings our loss in net taxable value down to $153,873,734. That equates to $577,027 in lost ad valorem revenues. Staff is recommending the following changes to the proposed revised Fiscal Year 2000 budget and the proposed Fiscal Year 2001 budget. 1. Because of the change in the net taxable valuation the tax rates allocated to the General Fund and the Debt Service Fund need to change. The original Debt Service Fund allocation was a rate of $.1814 per $100. This rate left the Debt Service Fund with revenues exceeding expenditures by $119,862. We are recommending that the rate allocated to this fund change to $.1854. This will result in revenues exceeding expenditures by $15,912 and an ending fund balance $369,152 over fund balance requirements. The change noted above will reduce the General Fund's tax rate to from $.1936 to $.1896. These changes still maintain the Y2 cent reduction in the overall tax rate. The reduction in the tax rate July 28, 2000 (10:06AM) for the General Fund, along with the reduction in the assessed value, brings the ad valorem revenue in the General Fund down from $8,626,640 to $8,100,333 and reduces the revenues over expenditures from $607,734 to $175,427. 2. The second change recommended is the reduction of the fund balance transfer in Fiscal Year 2000 for the Main Street Crown and the Parking Structure projects. Staff is recommending a total reduction in the seed money for these two projects from $1,000,000 to $750,000,000. The Main Street Project's seed money would equal $400,000 and the Parking Structure Project's seed funding would be reduced to $350,000. 3. The third change spans the two fiscal years under consideration. Staff is recommending that the $250,000 reduction in transfers outlined in #3 be sent to the Permanent Street Maintenance Fund. Then second step in this element is to then reduce the General Fund obligation to the PSMF in Fiscal Year 2001 by a corresponding amount. The PSMF is able to carry a balance forward across fiscal years so that the change in allocations will not negatively impact the fund or its mission of keeping our streets in excellent shape. 4. With the changes in #2 and #3, the General Fund has $425,427 in revenues in excess of expenditures and a fund balance $227,221 over the fund balance requirement. In addition to the changes required by the change in the valuation, staff is recommending that we move ahead with a total loan of $200,000 to the CVB Fund as discussed Monday night. The budget, as presented, showed a balance of $1,584 over fund balance requirements for the CVB. The increased loan amount will bring that balance over up to a more comfortable $101,584 while still leaving the General Fund with a balance over of $127,221. Staff is continuing to work toward finding additional revenues in the Fiscal Year 2001 budget, while still not overestimating the amount. I look forward to discussing this issue with Council Monday evening. July 28, 2000 (10:14AM) FY 2000-01 PROPOSED OPERATING BUDGET GENERAL FUND EXECUTIVE SUMMARY Revenues 1997-98 1998-99 1999-2000 2000-01 Percent Actual Actual Budget Proposals Change Ad Valorem Taxes 9,117,023 8,058,029 8,183,540 8,275,333 1.12% Sales & Use Taxes 10,984,584 13,520,752 14,550,000 15,600,000 7.22% Franchise Taxes 3,234,525 3,581,621 3,937,500 3,964,385 0.68% Licenses & Permits 1,166,539 1,086,064 1,115,117 1,358,944 21.87% Charges for Services 1,249,044 1,322,289 1,148,934 1,279,526 11.37% Intergovernmental Revenue 216,171 190,189 118,005 148,039 25.45% Fines and Forfeitures 1,604,437 1,855,570 1,722,844 2,119,200 23.01% Miscellaneous Revenue 2,214,567 2,223,011 2,148,721 2,428,901 13.04% Total 29,786,890 31,837,525 32,924,661 35,174,328 6.83% r; 7xpenditures Personnel Supplies Maintenance Services Contingency Reserve Operating Transfers Out Permanent Capital Maintenance Permanent Street Maintenance Capital Outlay 1997-98 Actual 17,144,421 1,422,934 1,299,333 4,722,740 0 3,243,466 614,309 682,171 572,573 1998-99 Actual 18,936,716 1,602,790 1,306,118 5,910,635 100,000 314,000 616,845 869,500 690,930 1999-2000 Budget 21,031,167 1,885,783 1,513,315 6,433,314 100,000 170,000 324,737 825,000 242,294 Total 29,701,947 30,347,534 32,525,610 Contribution to Fund Balance (Revenues over Expenditures) 2000-01 Proposals 23,200,737 1,954,293 1,457,194 7,125,643 100,000 60,000 220,045 389,489 241,500 34,748,901 425,427 Percent Change 10.32% 3.63% -3.71% 10.76% 0.00% -64.71% -32.24% -52.79% -0.33% 6.84% FY 2000-01 PROPOSED OPERATING BUDGET GENERAL FUND EXECUTIVE SUMMARY NEW PROGRAMS AND SERVICES PROPOSED FOR FY 2000-01 (Included in lineitem totals listed above) Projected Increased Service Level Reduests Fund Impact Intranet Development 15,000 Hometown Coalition 35,000 Senior Officer Program 28,507 Truck Company Staffing 374,512 Additional Library Personnel 153,179 Intelligent Library Security System 80,000 Household Hazardous Waste Collection 33,000 Certification Pay 6,240 Total Increased Service Level Requests 725,438 Transfers to Capital Improvement Projects Northwest Highway Landscaping 30,000 Park Sidewalk Construction 30,000 Total Transfers to Capital Improvement Projects 60,000 TOTAL NEW PROGRAMS AND SERVICES 785,438 ADDITIONAL PROGRAMS FUNDED FROM FY -2000 FUND BALANCE Main Street Crown Removal Project 400,000 Main Street Parking Stricture Project 350,000 Permanent Street Maintenance Program 250,000 Heritage Park Botanical Garden Project 134,200 Park and Recreation Projects 142,245 Total Additional Programs 1,276,445 FY 2000-01 PROPOSED OPERATING BUDGET GENERAL FUND EXECUTIVE SUMMARY 1997-98 1998-99 1999-2000 2000-01 Fund Balance Summary Actual Actual Budget Proposals Beginning Fund Balance 5,316,403 5,401,346 6,891,337 5,613,943 Contribution to Fund Balance 84,943 1,489,991 399,051 425,427 Additional Funding Commitments NA NA (1,276,445) NA Ending Fund Balance 5,401,346 6,891,337 6,013,943 6,039,370 Interfund Loan to CVB Fund NA NA (400,000) (200,000) Adjusted Ending Fund Balance 5,401,346 6,891,337 5,613,943 5,839,370' Fund Balance Requirement * 5,712,148' Balance over Requirement 127,221 Fund balance requirement is 16.4% of total budgeted expenditures (60 days of operation). The FY 2000-01 Adjusted Ending Fund Balance represents 61.3 days of operation. FY 2000-01 PROPOSED OPERATING BUDGET CONVENTION & VISITORS BUREAU FUND EXECUTIVE SUMMARY Revenues Hotel I Motel Tax Convention Center Rental Interest Income Concourse % of Sales Merchandise Resale Catering % of Sales Miscellaneous Income Total Expenditures Personnel Supplies Maintenance Services Permanent Capital Maintenance Transfers Capital Outlay 1997-98 1998-99 1999-2000 2000-01 Actual Actual Approved Proposed 3,280,344 3,495,409 3,508,000 3,946,000 313,959 381,083 392,430 415,000 30,022 40,360 35,000 35,000 34,959 27,978 35,000 35,000 83,172 93,443 79,000 82,167 31,649 42,123 30,000 30,000 91,531 6,939 0 0 3,865,636 4,087,335 4,079,430 4,543,167 1997-98 1998-99 1999-2000 2000-01 Actual Actual Approved Proposed 1,220,677 1,301,152 1,600,392 1,873,317 1,020,473 1,091,134 1,653,030 1,071,716 43,271 36,688 34,647 61,181 616,683 529,804 502,158 510,261 17,494 2,497 20,000 20,000 966,785 765,332 772,740 1,030,696 18,505 9,281 34,118 48,000 Total 3,903,886 3,735,888 4,617,085 4,615,171 Contribution to Fund Balance (Revenues over Expenditures) (72,004) Percent Change 12.49% 5.75% 0.00% 0.00% 4.01% 0.00% 0.00% 11.37% Percent Chang 17.05% -35.17% 76.58% 1.61% 0.00% 33.38% 40.69% -0.04% FY 2000-01 PROPOSED OPERATING BUDGET CONVENTION & VISITORS BUREAU FUND EXECUTIVE SUMMARY NEW PROGRAMS AND SERVICES PROPOSED FOR FY 2000-01 (Included in line item totals Iisted above) Increased Service Level Requests Sales Manager Web Master Total Increased Service Level Requests Fund Balance Summary Beginning Fund Balance contribution to Fund Balance Interfund Loan From General Fund Opryland Marketing Agreement Ending Fund Balance Fund Balance Requirement * Balance over Requirement 1997-98 Actual 856,704 (38,250) NA NA 818,454 1998-99 Actual 818,454 351,447 NA NA 1,169,901 1999-2000 Approved 1,169,901 (537,655) 400,000 NA 1,032,246 Projected Fund Impact 63,784 57,742 121,526 2000-01 Proposed 1,032,246 (72,004) 200,000 (300,000) 860,242 758,658 101,584 * Fund balance requirement is 16.4% of total budgeted expenses or 60 days of operation. The FY 2000-01 proposed ending fund balance represents 68 days of operation. FY 2000-01 PROPOSED OPERATING BUDGET DEBT SERVICE FUND EXECUTIVE SUMMARY Revenues 1997-98 1998-99 1999-2000 2000-01 Percent Actual Actual Actual Approved Proposed Change Ad Valorem Taxes 4,215,512 5,513,184 6,669,293 7,399,845 10.95% Transfers from Other Funds 3,016,094 1,994,207 591,783 389,958 -34.10% Interest Income from Investment 160,416 118,630 130,000 130,000 0.00% Total 7,392,022 7,626,021 7,391,076 7,919,803 7.15% Expenditures 1997-98 1998-99 1999-2000 2000-01 Percent Actual Actual Approved Proposed Change Interest Payments 4,502,645 4,352,105 4,873,834 3,847,092 -21.07% Principal Payments 2,776,720 2,832,028 2,382,152 4,050,000 70.01% Fiscal Agent & Bond Fees 3,998 42,619 6,800 6,800 0.00% Total 7,283,364 7,226,751 7,262,787 7,903,892 8.83° Contribution to Fund Balance (Revenues Over Expenditures) 15,912 Fund Balance Summary 1997-98 1998-99 1999-2000 2000-01 Actual Actual Approved Proposed Beginning Fund Balance 952,191 1,060,848 1,460,118 1,588,407 Contribution to Fund Balance 108,658 399,270 128,289 15,912 Ending Fund Balance 1,060,848 1,460,118 1,588,407 1,604,319 Fund Balance Requirement * 1,235,167 Balance Over Requirement 369,152 * Fund balance requirement is 16% of total current budgeted net debt service expenditures or 60 days of opera FY 2000-01 approved ending fund balance represents 78 days of operation.