CITY OF COTTONWOOD FY 2010 Budget Overview City Council Chambers May 21, 5:30 p.m.

FY 2010 Budget Presentation Glossary FY 2010 Budget Summary Personnel Issues Capital Outlay <$35,000 Capital Improvement Program $35,000+ Grant Opportunities Local Sales Tax Reserve Funds Status State of Arizona Budget Balancing Act Question & Answer

Glossary of Acronyms ADOT – Arizona Department of Transportation ADEQ – Arizona Department of Environmental Quality ASRS – Arizona State Retirement System AZ - Arizona CAF – Capital Accumulation Fund CATS – Cottonwood Area Transit System CDBG – Community Development Block Grant CIP – Capital Improvements Plan/Program COLA – Cost Of Living Adjustment DOJ – Department of Justice DPS – Department of Public Safety DS – Debt Service DUI – Driving Under the Influence E-MOD – Experience Modifier EMS – Emergency Medical Services FAA – Federal Aviation Administration FmHA – Farmers Home Administration FY – Fiscal Year GADA – Greater Arizona Development Authority GF - General Fund GOHS – Governor’s Office of Highway Safety HURF – Highway User Revenue Fund IGA – Inter-Governmental Agreement IT – Information Technology LP – Lease Purchase MPC – Municipal Property Corporation MP Room – Multi Purpose Room O&M – Operation & Maintenance P&Z – Planning & Zoning PANT – Prescott Area Narcotics Taskforce PSPRS – Public Safety Personnel Retirement System SAFER – Staffing for Adequate Fire and Emergency Response SCBA – Self Contained Breathing Apparatus Sp Ops – Special Operations SRO – School Resource Officer VLT – Vehicle License Tax WIFA – Water Infrastructure Finance Authority WWTP – Wastewater Treatment Plant YC – Yavapai County

2010 Budget Summary

Budget Summary Current combined FY 2010 budget $94,285,328 New staffing & reclassifications $1,141,340 SAFER Grant – 12 additional Firefighters Edward Byrne Memorial Justice Assistance Grant – 5 Police staff members New programs Open Multi-generational Recreation Center in May 2010 Anticipated borrowings $11,977,500 HURF $3,747,400 Sewer $3,000,000 Water $5,000,000 Public Safety lease purchase $230,100 Refunding 2006 MPC Water Revenue Bonds ?????????????

Budget Summary Capital outlay <$35,000 Requested $903,810 Budgeted $716,050 Capital outlay $35,000+ $32,825,450 Debt Service commitments $2,202,130 New capital projects$15,123,320 Current capital project commitments$15,500,000 Grant revenues anticipated (all funds) $4,754,630 Matching funds anticipated (all funds) $776,180 No additional or increases in taxes or fees planned

Budget Summary - Highlights No Cost Of Living Adjustment (COLA) No planned job losses during fiscal year Merit Program is fully funded Possible organizational restructure Continued hiring chill not freeze Delayed filling of vacancies (case by case basis) Possible elimination through attrition to produce efficiencies and eliminate duplication of work or duties

Budget Summary - Highlights ASRS contributions decreased from 9.45% to 9.40% Workman’s Comp e-mod has decreased from.95 to.94 PSPRS – Fire contribution rates decreased from 14.83% to 13.37%. PSPRS – Police contribution rates decreased from 22.07% to 20.07% Maintaining our current reserve policies Added reserves for future Recreation Center O&M Some <$35k capital outlay is programmed

Budget Summary - Challenges Local, state, & national economy has still not hit bottom Main revenue source (Local Sales Tax) is estimated to be down 6% Over $1.2M in new staffing and reclassification requests Health insurance premiums increased roughly 12% Capital & Staffing needs continue to increase dramatically Proper compensation is lacking throughout the organization

Personnel Requests

Budgeted Personnel Requests – Fire Department S.A.F.E.R.Grant$879,900 Six Firefighters$408,810 Three Engineers $246,090 Three Interim Lieutenants$225,000 Will hire and/or promote as of August 2009 Grant Funding$468,180 General Fund Revenues$411,720

Budgeted Personnel Requests – Recreational Center Recreation Center Manager $34,940 Aquatics Center Supervisor 22,750 Recreation Center Program Supervisor 22,750 Fitness Center Supervisor 10,365 Facility Maintenance Supervisor 10,400 Facility Maintenance Worker 8,615 Front Desk Supervisor (2) 17,230 Head Life Guard (2) 11,485 Temporary Staffing 131,000 Total Staffing (including Benefits)$269,535 Funding is Recreation Center Revenues & 1% Sales Tax

Budgeted Personnel Requests – Utilities Department Utilities Professional Engineer $70,975 Arsenic Specialist 44,210 Total Staffing (including Benefits) $115,185 Funding is provided from the contractual savings of the City doing its own arsenic maintenance on the numerous filtration systems. Total savings after these positions are funded, including equipment and supplies is anticipated to be $136,000.

Budgeted Personnel Reclassifications Library Clerk(pay equity issue)Range 17 to 17 $3,174 Transportation ManagerRange 40 to 42 $6,460 Animal Control /Ordinance Enforcement Range 23 to 26 $4,669 Replace Recreation Supervisor with Rec CoordinatorRange 32 to 26 ($7,380) Total Staffing (including Benefits) $6,923

Personnel Requests Not Budgeted Additional Staff Library Security (new)Range 21 $34,680 Reclassifications Library Clerk to Library SpecialistRange 17 to 26 3,246 Bldg Inspector to Senior Bldg InspectorRange 28 to 38 4,880 Code Enforcement to Zoning /Code EnforcementRange 26 to 38 3,989 Dispatcher/Driver to Dispatcher/TrainerRange 21 to 26 3,989 Court Clerk to Court Clerk II (2)Range 21 to 24 7,260 Communications Systems CoordinatorRange 30 to 42 5,247 Communications SupervisorRange 30 to 33 5,460 IT Technician to IT ManagerRange 42 to 52 8,138 Public Works EngineerRange 43 to 50 5,207 Total Unbudgeted Requests (including Benefits) $47,416 Reclassifications will await the Citywide compensation study

Personnel Requests Pending Reorganization Utility Project Coordinator to Utilities Administrative Manager Water Operations Manager to Utilities Operations Manager

FY 2010 Capital Outlay – By Funding Source < $35,000

FY 2010 Capital Outlay – General Fund Operational Revenues

FY 2010 Capital Outlay – Lease Purchases

FY 2010 Capital Outlay – 0.2% Sales Tax Reserves

FY 2010 Capital Outlay - HURF

FY 2010 Capital Outlay – Airport Reserves

FY 2010 Capital Outlay - Wastewater

FY 2010 Capital Outlay - Water

FY 2010 Capital Outlay – Funding Sources

FY 2010 Capital Improvements Programs - $35,000+

1.0% Sales Tax - General Fund

.02% Sales Tax - Public Safety

Highway User Revenue Fund - HURF

Airport Grants Fund

Wastewater Collection

Water Distribution

Grant Opportunities

Grant Requests – General Fund DOJ GrantComputers$25, % GOHS GrantDUI Command Vehicle110, % YC Community FoundationK9 5, % PANTTaskforce 40, % SROResource Officer136, % AZ Auto TheftTheft Prevention 10, % Homeland Security Grant362, % Armored VehicleUpgrade Mobile Command Unit Night Vision EquipmentTrainingSCBAs

Grant Requests – Special Revenue Funds Fire Act GrantLadder Truck $1,071,840 Federal Revenue964,655.2% PS Capital Reserves 107,185 Federal Grant 12 th Street Reconstruction $600,000 Federal Grant370,000 HURF230,000 Transit Grants Transit Operations and Capital 1,338,005 Federal911,510 Farebox & IGAs314,850 HURF111,645 Airport Grants Pavement Preservation 500,000 Federal Grant475,000 State Grant 12,500 Airport Revenue 12,500

Personnel Grant – Police Department Edward Byrne Memorial Justice Assistance Grant$555, % funding for Police and Administrative staffing 2 dispatchers 1 Crime Analysis Technician Crime Scene Detective Computer Forensic Examiner Funding is for two years Staffing is not budgeted at this time Will come back to council if grant is funded

Local Sales Tax

2.2% vs 3.0% Sales Tax

Reserves Status

General Fund Reserves Status 60 days Reserve Coverage $2,186,060 FY09 - $1,899,670 Capital Accumulation Fund – CAF $1,000,000 Used approximately $380,000 for General Fund O&M for FY Undesignated Reserves$100, % Sales Tax General Fund Capital $697, % Sales Tax Public Safety Capital Fund$246,110 Recreation Center O&M Reserves $748,985

State of Arizona Budget Balancing Act

State of Arizona Budget Balancing that could affect municipalities Impact Fee Rebates $210M HURF to DPS 78.1M Vehicle License Tax (VLT) to General Fund 77M From WIFA 7.8M From GADA 1.6M State Aviation Fund 1.1M

State of Arizona Budget Balancing that could affect municipalities Permanently lifts the statutory cap on sweeping HURF to fund DPS House Bill #2615–Government Transparency-Political Subdivisions Unfunded mandate requiring cities and towns over 5,000 persons establish a searchable internet website that includes a comprehensive database of receipts and expenditures. This bill requires all financial transactions receipts and expenditures to be posted, creating serious personal information and redaction issues.

Question and Answer Time Next meeting is May 26 th at 5:30 p.m. The May 27 th meeting will also be at 5:30 p.m.