BUDGET WORKSHOP FY13 April 4, 2012

City of Hendersonville Budget Workshop – April 4, 2012 GOALS and OBJECTIVES for 2013 To present a balanced budget without a tax increase To maintain an acceptable fund balance: FY12 Budget FY12 Est. Actual FY13 Budget $2.39 million $4.46 million $2.52 million To provide basic government services to the citizens Prevent eliminating any employee’s jobs or layoff any employees, and to provide a 2.5% step raise to our employees and updated longevity pay. To provide funding for health insurance for our employees. (Estimated increase of 20% First increase in 4 years. Reviewing options for City share vs Employee share) 2

City of Hendersonville Budget Workshop – April 4, 2012 Included in the FY 2013 Proposed Budget 3 No Property Tax Increase $0.65/100 assessed Trash Fee ($3.00 Increase from FY 2012) $255 annually No new employees FY 2010, FY 2011, FY 2012, FY 2013

City of Hendersonville Budget Workshop – April 4, 2012 WHERE ARE WE TODAY? General Fund Balance FY 2012 Beginning General Fund Balance $4.15 MILLION (July 1, 2011) ($4,147,104) Estimated General Fund Revenue (FY 2012) $34.1 MILLION ($34,181,700) Estimated General Fund Expenditure (FY 2012)$33.9 MILLION ($33,859,277) Estimated General Fund Balance $ 4.4 MILLION (June 30, 2012) (Originally projected in FY 2012 to be $2.3 million) ($4,469,526) 4

City of Hendersonville Budget Workshop – April 4, 2012 WHERE ARE WE GOING? General Fund Balance FY 2013 Beginning General Fund Balance $4.4 MILLION (June 30, 2012) ($4,469,526) ADD Estimated General Fund Revenue $32.8 MILLION (FY 2013) ($32,896,123) LESS Estimated General Fund Expenditure $34.8 MILLION (FY 2013) ($34,847,426) Budget Differential ($ 1.9 MILLION) (FY 2013) ($1,951,302) ENDING Estimated General Fund Balance $ 2.5 MILLION (June 30, 2013) ($2,518,223) 5

City of Hendersonville Budget Workshop – April 4, 2012 REVENUE HISTORY For the past 7 years, we have had the luxury of an AVERAGE of 8.1% revenue growth annually. 6 *FY 13 reflects removal of Grants

City of Hendersonville Budget Workshop – April 4, 2012 GENERAL FUND 7

City of Hendersonville Budget Workshop – April 4, 2012 GENERAL FUND Greg Howell – BOMA January 24, Auditor Greg Howell discussing the General Fund Click to view linked video file

City of Hendersonville Budget Workshop – April 4, 2012 EXPENDITURES BY DEPARTMENT FY

City of Hendersonville Budget Workshop – April 4, 2012 REVENUE HIGHLIGHTS FOR FY 2012 COMPARED TO FY 2011 (As of February 2012) Local Sales Tax$ 284,197 State Shared Taxes$ 155,315 SAFER Grants($ 161,534) Investment Earnings$ 1,635 Property Taxes $ 146,374 Other Grants($ 64,677) 10

City of Hendersonville Budget Workshop – April 4, 2012 ESTIMATED REVENUE SOURCES FY Local Revenue $27,601,995 (84%) County Revenue $ 131,000 (<1%) State Revenue $ 5,163,168 (16%)

City of Hendersonville Budget Workshop – April 4, 2012 What measures are we taking today? No property tax increase No new positions Step increases plus 2013 Longevity No cost of living increase No reduction in services Fuel costs budgeted by department 12

City of Hendersonville Budget Workshop – April 4, 2012 MAYOR’S MODIFICATIONS For a neutral budget with minimum impact on fund balance, perform Capital Projects and handle matching grants on a case-by-case basis throughout the year From ToAmount PUBLIC WORKS ($60,000 reduction) REDUCE PROFESSIONAL SERVICES 80,000 40,000(40,000) REDUCE INMATE CREW EXPENSES 40,000 20,000(20,000) POLICE DEPARTMENT ( $199,747 reduction ) DELETE PROMOTION OF ADMIN COORD. TO EXEC COORD. 4,693 0 (4,693) DELETE NEW CRIMINAL INVESTIGATOR (Salary & Benefits) 63,108 0 (63,108) DELETE 2 NEW SERGEANT POSITIONS (Salary & Benefits)131,946 0 (131,946) TOTAL CITY WIDE MODIFICATIONS: (285,048) GRANTS FIRE DEPARTMENT ($1,250,000 reduction) DELETE ENGINE #4 REPLACEMENT (NO OFFSET GRANT)400,000 0 (400,000) DELETE $350,000 AFG GRANT TO REPLACE ENGINE #1350,000 0 (350,000) DELETE $400,000 AFG GRANT TO REPLACE ENGINE #3400,000 0 (400,000) DELETE $100,000 AFG GRANT FOR FIRE EQUIPMENT 100,000 0 (100,000) NON-PROFITS ($25,301 reduction) REDUCE ECD Non-profit requests to FY 2012 amounts 137, ,500 (5,000) REDUCE Non-profit requests to FY 2012 amounts 116,551 96,250 (20,301) 13

City of Hendersonville Budget Workshop – April 4, 2012 CAPITAL PROJECTS Capital or Special Projects from Prior Years Description Authorization Project Balance Maintenance – Drakes Creek DredgingRes $100,352 Rockland Road – Sections 1, 2, 3Ord $ 15,913 Public Works Salt Bin Project Ord $ 40,000 Public Works Drainage Equip & Vehicles Ord $ 1,444 Park Capital Improvements Ord $ 23,500 Sandalwood Hills Infrastructure Imprvm. Ord $ 41,000 Donated Flood Damage Projects Ord $ 2,099 Temporary Traffic Signal Stop 30 & NSI Ord $ 99,300 The Groves at Waterford Crossings Ord $ 14,375 Hendersonville Market Place Ord $ 51,400 Sholodge, Section 2Ord $ 21,100 FEMA Flood Damage Ord $ 25,911 TOTAL: $ 436,395 14

City of Hendersonville Budget Workshop – April 4, 2012 CAPITAL PROJECTS FY 2013 Budget 15 Department Item Cost NOT FUNDED IN FY13 BUDGET Public WorksRockland Road Improvements 2,400,000 Public WorksDrakes Creek/Stop 30 Widening 280,000 Public WorksCity Wide Drainage Upgrades 450,000 Public WorksCity Wide Paving Improvements 1,500,000 Public WorksCity Wide Street Light Improvements 70,000 Public WorksStop 30/New Shackle Island Traffic Signal 250,000 Total - $ 4,950,000 FUNDED BY OTHER SOURCES Public WorksWalton Ferry/Main Street Intersection 1,100,000 Public WorksNew Shackle Island Road Improvements (386 to Iris Drive) 790,000 Public WorksIndian Lake Blvd.. & Bridge 1,100,000 Public WorksCity Wide Traffic Signal Upgrade 1,600,000 Public WorksPedestrian Bicycle Trail Phase III-Sanders Ferry Road Water Front 1,400,000 Total - $ 5,990,000 GRAND TOTAL $10,940,000

City of Hendersonville Budget Workshop – April 4, 2012 GRANTS Grants and Capital & Special Projects FY 12 DEPT. HEAD FY 13 Increase Estimated FY 13 MAYOR Bdgt to PERCENT Actual Request CHANGES Bdgt CHANGE GRANTS PUBLIC WORKS - CTIYWIDE TRAFFIC SIGNAL UPGRADE - FY ,711 58, , % NEW FY 2013 GRANTS Planning - CDBG grant - (PW spends $180,875, Planning $24,000) 0 204, , % Planning - SRTS Grant - (PW spends $177,475, Planning $15,000) 0 192, , % Planning - CMAQ Drakes Creek Bike Trail PE ROW & partial construction 0 350, , % FIRE - AFG GRANT - REPLACE FIRE ENGINE 3 - FY % % FIRE - AFG GRANT - EXTRICATION EQUIP - FY % % TOTAL NEW GRANTS 24, , ,568 3,160.0% CAPITAL AND SPECIAL PROJECTS RELAX AND RIDE - MTA BUS SERVICE 50,000 50,000 50, % TOTAL NEW CAPITAL and SPECIAL PROJECTS 50,000 50, , % 16

City of Hendersonville Budget Workshop – April 4, 2012 PROPERTY TAX Current tax rate = 65 cents One cent on the rate = $ 143, cent tax increase generates = $1,437,300 17

City of Hendersonville Budget Workshop – April 4, 2012 FY 12 DISPOSAL FEES FY 2012 Disposal Fee Charged to citizens: $ /year /home FY 2013 Disposal Fee Charged to citizens: $ /year /home (1.1% increase) 18