AUGUST BUDGET WORKSHOP NO FISCAL YEAR PRELIMINARY BUDGET Innovation will serve to keep the plan in the forefront of all that we do. Our actions should always be advancing the Plan. Operation Innovation

Workshop Schedule Schedule of FY Council Work Sessions:  June 7- Budget Format Workshop*  June 26- Capital Projects & Replacement/Renewal Fund Workshop*  July 10- General Fund (and smaller ancillary funds) Workshop**  July 24- Enterprise Fund Workshop (Electric, Telecommunications, Water/Sewer, Sanitation, Golf & Airport)*  August 14-Preliminary Budget Presentation Workshop*  September 4 th - 1 st 5:05 PM Reading Tentative Budget (Public Hearing)  September 18 th - 2 nd 5:05 PM Reading Final Budget (Public Hearing) *11:00 Council Lunch *11:30-1:30 Work Session (Council Chambers) ** 3:00 pm Work Session (Council Chambers)

FY Proposed Budget Information  Council has conducted 4 workshops covering the following:  Budget Format  Capital Projects/Replacement & Renewals  General Fund & Ancillary Funds  Enterprise Funds  All Council changes have been incorporated into the budget document.

FY Proposed Budget Information  The FY12-13 Budget is balanced at the roll-back rate of  There are no rate or fee increases projected for any of the enterprises.  There are no raises budgeted.  Health Insurance rates rose by 2%. The City has implemented a wellness incentive that will guarantee a premium rate hold for those employees who participate.  The City has absorbed the increases in pension contributions.  The General Fund reserve for cash balance forward is fully funded at the 20% level.  All of the Enterprise funds are balanced revenues to expenditures, with the exception of the Golf fund. Golf receives a transfer from the General Fund.

FY Proposed Budget Information  Savings from the Bond Debt refinancing have been incorporated into the budget.  Interfund transfers have been adjusted accordingly to balance the budget.  A blend of the 3% & 10% reduction options have been incorporated into the budget.  Savings from the VSIP have been incorporated into the budget.  Every effort has been made to provide and open and transparent document.  The budget document will be submitted for the GFOA Award this year.

7 Strategies Progress for FY Budget 1. Blueprint to Fiscal Sustainability (ongoing) 2. 3% & 10% budget reduction submittals (completed) Communications Consolidation (ongoing) 4. Pension Reform (ongoing) 5. Debt Refinancing (completed) 6. Interfund Transfers (ongoing) 7. Voluntary Separation Incentive Program (completed)

What’s Next? Permanent Solutions:  911consolidation (Fire Only) ~$470K  Pension Reform (TBD)  Blueprint Committees (TBD) Temporary Fixes:  Transfer of $2.6M from 1/8 Mil Police & Fire Fund  800 Mhz payment made from Renewal & Replacement Fund (~$300K)  OPD expenses moved to Police Trust & Agency Fund (~600,000)

General Fund Balancing Strategies CASH BALANCE FORWARD (Estimated) $ 16,500,000 RESERVES Revenues$48,609,077 Reserve For Fund Balance $ 12,942,139 Transfers In $ 13,946,207 Reserve For Contingencies $ 1,110,128 $ 62,555,284 Reserve For Fire Grant Match $ 96,238 Reserve For Affordable Housing $ 557,677 Expenditures $ 61,095,937 Reserve For Tree Mitigation $ 115,351 Transfers Out $ 3,739,756 Reserve For Discovery Science Center $ 20,000 $ 64,835,693 Reserve For Salaries/OT/Retire/VSIP $ 458,467 Building Fund $ 1,200,000 $ 16,500,000 Budget Gap $ (2,280,409) Reserve Deficit $ 0 DEFICIT $ 0TOTAL DEFICIT$(2,280,409) STRATEGIES PERMANENT OPTIONSAMOUNTPRIORITYTEMPORARY OPTIONSAMOUNTPRIORITY Comm Tech Consolidation (Fire Only) $ 476,973 Delay Fire Station $ 1,000,000 Reduce Reserves to 19% $ 647, MHz Payment Transfer $ 300,000 Reduce Reserves to 18% $ 1,294,214 Enterprise Funds Transfers $ 2,280,409 OPD Reductions $ 700,000Furloughs $ 1,800,000 Insurance Changes $ 360,000 Lay Offs $ 1,000,000 Pay Cuts $ 1,500,000

Total Deficit From July 10th G/F Workshop (2,280,409) Strategies to Reduce Deficit OPD Reductions 366, MHz Payment Transfer 303,243 Delay Fire Station 1,680,251 Decrease in CST Revenue (116,202) Miscellaneous Corrections 46,839 Current Deficit - *Miscellaneous Corrections include: Correction to Council Health Ins 19,911 Salary Increase - City Clerk Employee (8,765) Reinstate Rec & Park VSIP Position (49,480) Increase to Risk/insurance Allocation (17,700) Increase in Golf Transfer (68,294) Change in Reserves 171,167 46,839

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