HomeMy WebLinkAboutWS Item - 02 Major Budget IssuesMEMORANDUM CITY OF GRAPEVINE, TEXAS
TO:
HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM:
GREG JORDAN, CHIEF FINANCIAL OFFICER
DATE: JULY 2, 2015
SUBJECT: FISCAL YEAR 2016 MAJOR ISSUES REVIEW
At Tuesday's City Council meeting, I will present the FY16 Major Issues Report as part of
the annual budget discussion. The upcoming budget is anticipated to maintain current
service levels with few unplanned additions. Over the coming weeks, departments will
present budget requests to the City Manager and the top priorities will be balanced against
available revenues.
The basic assumptions for the upcoming budget are as follows:
- Maintain the fund balances as defined in the adopted fiscal policies. The
General Fund requirement is 20%
- Fund the Permanent Capital and Permanent Street Maintenance Funds with
cash
- Fund prior building/staffing obligations (i.e. The REC and Public Safety Building)
- TMRS contribution rate reduction to the minimum required contribution of
19.06%
- Maintain the Quality of Life Fund transfer at $3,000,000
- Fund reasonable fleet, capital and technology purchases with cash except for
large purchases as well as purchases made from enterprise funds
- Maintain a compensation structure that is in line with the surveyed competitive
set of 18 cities surveyed and meets our goal of staying at the 50th percentile
- Funding for flood damage costs
- Establish a long-term sustainability plan for Golf and Lake Parks
After review of all the requests and departmental presentations, staff will prepare the City
Manager's Proposed Budget for FY16, which will be delivered to Council on July 31 and
will be presented at the Council Budget Workshop on August 19 and (if necessary) 20.
GJ/sgp
FY2016 Major Issues
presented by
Greg Jordan
Agenda
➢Guiding principles
Revenue picture
Major issues for consideration by category
Administrative
Public Safety
Golf and Lake Parks
Infrastructure
Technology
)�, Capital
Guiding Principles
Responsiveness/Service delivery
.Address FY1 5 flood
. Quality of life transfer of $3M
�, Competitiveness
Compensation, benefits
IT, Fleet
Facility maintenance & infrastructure
INK
Guiding Principles
➢ Sustainability
Preservation of fund balance
Use of cash to fund capital
Maintain tax rate
* Innovation — savings, increase tax base
through economic development
Protect Golf, Lake Parks from future financial
stresses
1,400,000
1,200,000
1,0009000
8009000
6001000
400,000
200,000
0
(200,000)
■ % Change
$ Change
General Fund Revenue Picture
$2.3 Million Increase. 3.89%
Revenue Increases and Change as Percentage
.�',RAPEYD E,
-'i N
Ad Mixed Franchise Licenses'
Services Fines and Trans/
Sales
Valorem Beverage Fees & Permits T Forfeitures Misc
0.8% 4.9% 6.7% 5.2% 3.6% 5.5% -6.2% 2.76%
68,343 1,298,206 107,524 329,719 44,547 506,986 (135,697) 115,246
5
Major Issues
Administrative
�, Compensation
�;, Maintain market competitiveness
�, Health insurance $326,750
3.6% increase
8% national trend
*Achieved $1 00k in savings by consolidating to
single Broker -of -Record
Af YI)K
Ma or Issues:-,
Administrative'p <
Healthcare Costs and Change as Percentage
10,000,000
2,000,000
C
2010 2011 ----2012-- 2_013 2014.__i 2015 2016
■$ Cost 8,039,514 8,745,052 7,052,573 7,248,481 8,063,163 8,986,250 9,313,000
■ /° ;
Change
° 23% 9% -19% 3% 11% j 11 % 3.6%
7
Major Issues
Administrative
�, Plan design changes
�, Behavior modification
Education
Wellness Program
Incentives
FY16 Physical examinations
FY17 Smoking cessation
In -Network vs. Out -of -Network
Major Issues
Administrative
* TIVIRS contribution
19.15% —+ 19.06%, decrease of 0.09%
Reduction of $32,215
Amortization period 24.0 � 23.0
Funded ratio 78% --> 80%
01
Major Issues
Administrative
* Continuation of Alternate Retirement
System(AARS)
Saved $1 00k Citywide in FY1 5
For part-time employees in lieu of Social
Security
Major Issues
Administrative
�, Courts — fees for consideration
* Security fee - $3 per citation (new)
GE -A PY I NF.
$45,000 total impact
Without this, the General Fund will have to absorb
Bailiff costs in FY17
Major Issues
Public Safety
)o. Public Safety Building
)o. Staffing request
Jailers, front desk/reception, etc.
W161 "I 9-
* Texas Ambulance Supplemental Payment
Program
Fire Department initiative
Recovery for ambulance services
x$350,000 in FY1 7
Major Issues
Parks
);, The REC
FY1 6 is first full -year of operations
Operations
Revenues
$8071331 $174161735
$6057000 $1,800,000
$609,404
$11195Y000
REC memberships > 11,000
Evaluating staffing needs to meet Aquatics
demand
Major Issues
Flood Impacts
1` C f� 1 •7
Total impacts remain unknown until water
recedes
Flood Insurance max is 2 million,
inclusive of 1 million max on lost revenue
Greatest impact to Golf, Lake Parks
No cap on State/Federal reimbursement
Major Issues
Golf and Lake Parks
Flood has hurt Golf, Lake Parks
Long term strategy to strengthen funds
Insulate General Fund
Through use of Debt Service Fund
Balance Reserve
Overfunded
Eliminate burden on Golf, Lake Parks
AND maintain healthy reserve
Major Issues
Golf
➢ Golf - increase sustainability through
Establish operating fund balance
Eliminate annual debt transfer ($435,150)
Create a capital funding strategy
Consider rate increase, dedicate funding
Remain competitive
)�, Eliminate vacant position
($54,522) Assistant Greens Superintendent
Major Issues
Lake Parks
�, Lake Parks - increase sustainability
through
Establish operating fund balance
Eliminate annual debt transfer ($145,942)
Create a capital funding strategy
Major Issues
Infrastructure
1,11' 7R A
c�
4y ,
Permanent Capital Maintenance Fund
Continuation of full funding - $1,633,000
General Fund transfer for City facilities
), Permanent Street Maintenance Fund
Continuation of full funding - $1,662,000
General Fund transfer for street maintenance
E
E
General Fund Summary
REC Revenues
Savings from Broker Consolidation
TMRS Reduction
REC Full -Year Funding
Compensation
Insurance
Fleet
IT
Capital - other
1,195, 000
1007000
32, 215
(609,404)
(1,255,485)
(326,750)
(638,000)
(153,500)
(671,210)
Certified appraisal is expected to add revenue
No ISLs are included in base assumptions
19
Next Steps
July 25 Receive Certified Tax Roll from TAD
July 31
Operating Budget Submitted to City
Council
August City Council Budget Workshop
September 1
September 8
September 8
Public Hearing
4B Board FY16 Budget Adoption
Crime Control & Prevention District
Board FY16 Budget Adoption
September 8 City Council Adoption of FY16
Operating Budget and Tax Rate
I_P-EVI)E.
FY2016 Major Issues
presented by
Greg Jordan