1. Avondale City of Communicating Budget Reductions GFOA AZ February 2009

2. Avondale City of Financial Forecast Fiscal Update 2 nd Quarter FY 2009

3. Avondale City of Economic Indicators 2008 - December  National CPI – 0.7% December job change = (1,529,000) Unemployment rate 7.2%  Arizona Unemployment rate 6.9% December job change = (12,400) Active foreclosures = 7,797 (Maricopa County) 328 Avondale foreclosures 2007 - December  National CPI 0.4% December job change = (320,000) Unemployment rate 4.9%  Arizona Unemployment rate 4.2% December job change = 5,100 Active foreclosures = 3,859 (Maricopa County) 193 Avondale foreclosures

4. Avondale City of State Revenues Shared Sales Tax  December sales tax collections were down (16.4)% compared to December 2007 and were $(79.7) million short of the monthly forecast.  14.8% projected annual loss = $920,000 to Avondale Income Tax  December individual income tax collections were down (6.2)% compared to December 2007 and were $(43.1) million below forecast.

5. Avondale City of State Revenues Auto In-Lieu Tax  FY 2009 YTD Disbursement to Avondale $100,00 below 2007 (7.5% below City forecast) HURF  FY 2009 YTD Disbursement $348,000 below 2007 (14% below City forecast)

6. Avondale City of State Shared Revenue *Projected

7. Avondale City of Local Revenues Sales Tax  Six month collections $2.2 million or 11.3% below forecast  Six month collections below same six months prior year $2.4 million or -12%. Development Revenue  Single family permits total 39 year to date – 38% below forecast

8. Avondale City of City Sales Tax Calendar Year Monthly

9. Avondale City of Restaurant & Bar Tax Quarterly Collections

10. Avondale City of Tax on Items over 5,000 Quarterly Collections

11. Avondale City of Contracting Tax Quarterly Collections

12. Avondale City of Retail Tax Quarterly Collections

13. Avondale City of Tax Percent by Category FY 2007

14. Avondale City of Tax Percent by Category FY 2009 YTD

15. Avondale City of Taxable Transactions Quarterly

16. Avondale City of Assumptions FY 2009-10 Baseline sales tax assumes -5% growth 100% of contracting sales tax considered one-time 75% of building/development revenue considered one-time 75% of Interest Income considered one-time

17. Avondale City of FY 2009-10 Revenue Projections

18. Avondale City of Avondale Budget Reductions Step One Reductions – Spring 2008 - $3.2 million Elimination of 29.5 positions Transfer or redeployment of staff Layoff of two employees Voluntary separation offered Reduce training and travel Eliminate consulting projects and services Eliminate operating capital purchases and improvements Reduce memberships Reduce meeting expenses and supply budgets Reduce special events and activities Reduce printing, publication and marketing costs Replacement costs, temps and other contracts

19. Avondale City of Avondale Budget Reductions Step Two Reductions – December 2008 - $3.6 million Contracting out for services – $153,000 Reduction in force - $1,198,960 Eliminating special events for one year $110,000 + O/T (not including RIF) State of the City $2,500 Northwest Public Safety Facility $1,100,000 (net) Eliminating the Neighborhood Traffic Management Program (NTMP) $200,000 Cashion Community Center Conversion $58,500 Contributions Assistance Program $40,000 Youth Non-Profit Sports Voucher Program $32,500 New Life Center $25,000 Line items/Other - $670,000 Elimination of 46 positions Layoff of 20 employees

20. Avondale City of The Final $3 Million  Suspend equipment and vehicles replacements  Suspend replacement fund contributions  Additional voluntary retirements  No salary adjustments  No additional employees  Special interest classes/sports cost recovery  Increase in engineering and planning fees

21. Avondale City of Transition Assistance 2 weeks base pay + 1 week for each year capped at 12 weeks $3,000 for 90 days of medical premiums Outplacement services including skills training, professional resume service, interviewing assistance

22. Avondale City of Questions? March 2009