2013 Budget Presentation Assembly Worksession October 12, 2012 - - PowerPoint PPT Presentation

2013 Budget Presentation

Presented by:

Mayor Dan Sullivan Lucinda Mahoney, CFO George Vakalis, Municipal Manager Marilyn Banzhaf, Acting Budget Manager October 12, 2012

Assembly Worksession October 12, 2012

Agenda

 Plan A and Plan B Overview  Policy Discussion of Revenue Options

• 2012 SOA ASD limit
• 2013 ASD tax capacity

 General Government

• Revenue Forecast
• Expenditures by Department
• 6 Year Plan ‐

Overview

• Capital

Plan A and Plan B

 Plan A

• Significant reductions to services

to balance budget

• Detail support in Budget book
• Introduced to Assembly on

10/9/2012  Plan B

• Description included in 2013

Budget Book page 2‐4

• Use of excess tax capacity of

$13.5M that cannot be used by ASD

• $12M for general government,

$1.5M for contribution to ASD

• Restores most services from Plan A
• “S”

version details provided to Assembly on Oct. 12, 2012

2013 Budget ‐ Overview

Millions $$ 2012 Budget 2013 Continuation Budget

• Cont. Delta

to 2012 2013 Plan A 2013 Plan B Plan B Delta to 2012 Plan B Delta to 2012 Expenditures 454.6 $ 477.8 $ 23.2 $

5%

448.6 $ 462.1 $ 7.5 $

1.7%

Revenue Property Taxes 241.6 $ 249.2 $ 7.6 $

3%

249.2 $

*

262.2 $

**

20.6 $

8.5%

Other Local Revenues 171.7 $ 169.8 $ (1.9) $

‐1%

172.2 $ 172.7 $ 1.0 $

0.6%

IGC 29.3 $ 29.1 $ (0.2) $

‐1%

30.2 $ 30.2 $ 0.9 $

3.1%

Fund Balance (Program generated) 11.9 $ ‐ $ (11.9) $

‐100%

(3.0) $ (3.0) $ (14.9) $

‐125.2%

454.6 $ 448.1 $ (6.5) $

‐1%

448.6 $ 462.1 $ 7.5 $

1.7%

Surplus/Gap ‐ $ 29.7 $ 29.7 $ ‐ $ * Under Tax cap by $200k ** Assumes $13.5 M of Tax capacity that cannot be used by ASD

Policy Decision – Use of Funding Sources

 2012 Fund Balance

• Known 1Q 2013

 2012 Over collection of ASD Prop Taxes $7M to $8M

• AR 2012‐81 on Assembly agenda

for Nov. 12

• One time funding for one time

costs

• Recommendations on next page

 2013 Tax Cap Re‐Alignment

• SB 182 ‐SOA contributing

more to local education

• $13.7M additional tax

capacity

• One time opportunity; use

it or lose it

• Sustainable, ongoing

support of operating costs

2012 Over Collection of ASD Prop Taxes ($7 to $8M) List of One Time Spending Recommendations

 Fund 181 – Building Permits $4 M  CAMA system $5 M  Legal Reserve Fund $1 M  Police Academy (vs. Forfeiture funds) $.5 M  Fire Academy $.5 M  AWARN Radio System $2.7M

Property Taxes

million’s

Estimated Tax impact for $100k home (MOA + ASD)*

• 2013 Plan A ‐

$8.00

• 2013 Plan B ‐

$49.00

*Assumes no change to assessed value

242 249 262 239 234 234 100 200 300 400 500 600 2012 2013A 2013B ASD MOA

$ millions

MOA ASD Total Tax Change Assessed value Mill Rate $100,000 Prop Tax Change 2012 242 239 481 31,529 15.26 1,526 2013A 249 234 483 0.5% 31,529 15.33 1,533 8 $ 2013B 262 234 496 3% 31,529 15.74 1,574 49 $

Expenditures ‐ Overview

Millions $$ 2012 Budget 2013 Continuation Budget Cont. Delta to 2012 2013 Plan A 2013 Plan B Plan B Delta to 2012 Plan B Delta to 2012 Labor 247.2 262.8 15.6 $

10%

246.0 $ 257.0 $ 9.8 $

4.0%

Debt Service 56.8 57.1 0.3 $

0%

51.8 $ 51.8 $ (5.0) $

‐8.8%

Non Labor/Other 150.6 157.9 7.3 $

5%

150.5 $ 153.3 $ 2.7 $

1.8%

Total 454.6 477.8 23.2 $

5%

448.3 $ 462.1 $ 7.5 $

1.6%

Continuation Budget Changes: Labor Increases ‐ $15.6 Million or 10% Salaries $5.4 PIP Education $1.7 Health Insurance $3.4 Retire, SS, MC $2.4 Un‐Cap Labor $0.6 Non Labor P&F Pension $4.0

Positions ‐ Overview

2012 Budget Positions 2,274 2013 Proposed Positions - Plan A 2,087 2013 Proposed Positions - Plan B 2,205 Position Changes by Department Filled Vacant Total Filled Vacant Total Community Dev (3) (3) (6) (3) (3) (6) Employee Relations (1) 5 4 (1) 5 4 Finance (6) (3) (9) (3) (3) (6) Fire (12) (9) (21) (1) (9) (10) Health & Human Srvs ‐ (3) (3) ‐ (2) (2) Info Tech ‐ (3) (3) ‐ (3) (3) Internal Audit 1 ‐ 1 1 ‐ 1 Library (7) (4) (11) ‐ ‐ ‐ Muni Attorney (2) (3) (5) (2) (3) (5) Municipal Manager ‐ 2 2 ‐ 2 2 Parks and Rec (16) (36) (52) (10) (2) (12) Police (29) (19) (48) ‐ (19) (19) Public Transportation (17) ‐ (17) ‐ ‐ ‐ Public Works (1) (4) (5) (1) 2 1 Purchasing ‐ (2) (2) ‐ (2) (2) Plan A Plan B

Revenue ‐ Overview

2012 1Q Budget $millions 413.4 Less: SOA One time revenue sharing ‐6 Property Tax 7.5 Auto Tax 1.7 MESA/MUSA 1.7 Hotel Motel 1.6 Pilt 0.8 Fee Increases: Ambulence Fee Increase 1.5 Misc. ‐0.8 2013 Plan A 421.4 Property taxes 13.5 Eagle River Parks/Rec SA ‐0.4 Bus Fare due to adding back routes 0.5 2013 Plan B 435

See AM Support for details

Service Impacts by Department ‐ Police

000’s

$ millions 2012 Bud 2013 Cont 2013 Plan A 2013 Plan B Labor $70.6 $76.4 $70.7 $74.1 Non-Labor $21.8 $24.1 $23.4 $23.8

Police 6,534 $ 2,658 $ ‐ Reduce 19 vacant positions in patrol, detectives, Internal Affairs 2,260 $ 2,260 $ ‐ Reduce 29 filled positions, mainly new recruits; patrol, detectives, 3,479 $ ‐ $ ‐ Non‐Labor reductions; materials, supplies, services 795 $ 398 $ ‐ Add Police Academy (partial funding from forfeiture funds) (500) $ Reductions ‐ Plan A Reductions ‐ Plan B

Service Impacts by Department – Fire: Plan A

000’s

$ millions 2012 Bud 2013 Cont 2013 Plan A 2013 Plan B Labor $61.8 $65.1 $60.6 $62.1 Non-Labor $24.3 $26.5 $25.5 $25.8

Fire 5,109 $ ‐ Reduce staffing level by 10 vacant positions to SAFER grant minimum. No impact on current service 1,472 $ ‐ Reduce overtime resulting in fewer engines/equipment available. Close Station 15 (South Port), Truck 11 (Eagle River). 2,321 $ ‐ Reduce firefighters by 11 positions in May 2013 upon expiration of SAFER grant. Close Station 10 (Rabbit Creek) and Station 14 (Tudor). 713 $ ‐ Reduced contract, materials supplies 603 $ Reductions ‐ Plan A

Service Impacts by Department – Fire: Plan B

000’s

$ millions 2012 Bud 2013 Cont 2013 Plan A 2013 Plan B Labor $61.8 $65.1 $60.6 $61.9 Non-Labor $24.3 $26.5 $25.5 $25.8

PLAN B ‐ ALL STATIONS REMAIN OPEN Reductions ‐ Plan B 3,596 $ ‐ Reduce staffing level by 10 vacant positions to SAFER grant

• minimum. No impact on current service

1,472 $ ‐ Reduce overtime by placing Tender 9 and Truck 11 out of service due to staff shortfall as required 1,690 $ ‐ Reduce firefighters by 11 positions in May 2013 upon expiration of SAFER grant. Close Station 10 (Rabbit Creek) and Station 14 (Tudor). ‐ Reduced contract, materials supplies, fuel 434 $

ISO Rating and Response Times

 ISO Rating Based on the following:

• 10% Alarms and Dispatch
• 40% Water Supply
• 50% Fire Department

 Anchorage is rated 2 (1 best, 10 worst)  Last ISO rating was within the past few years and may not be rated for many years in the future  ISO Impact to Insurance Premiums

• State Farm does not use at all.

Factors evaluated include:

• Losses within a zip code
• Owner’s history
• Distance from hydrant/station
• Allstate changes premiums when

the rating exceeds 5 and considers:

• Location
• Past losses
• Credit score

Service Impacts by Department – Parks and Rec

000’s

$ millions 2012 Bud 2013 Cont 2013 Plan A 2013 Plan B Labor $10.2 $10.9 $8.9 $10.0 Non-Labor $11.1 $11.5 $10.3 $11.0

Parks and Rec (net of revenues) 2,727 $ 1,559 $ ‐ Reduce Horticulture Program from $2.1M to $1.6M 496 $ 515 $ ‐ Reduce Park Maintenance 355 $ 113 $ ‐ Reduce Rec center hours 515 $ 204 $ ‐ Reduce Rec center program 318 $ 214 $ ‐ Unfund three Community work service officers 318 $ 318 $ ‐ Reduce contributions to Arc, Camp Fire, YEP,B&G Club 688 $ 158 $ ‐ Suspend public swim programs at Service High 37 $ 37 $ Reductions ‐ Plan A Reductions ‐ Plan B

Service Impacts by Department – Public Works

000’s

$ millions 2012 Bud 2013 Cont 2013 Plan A 2013 Plan B Labor $29.7 $31.0 $30.8 $31.0 Non-Labor $80.6 $81.0 $74.4 $75.4

Public Works 1,950 $ 690 $ ‐ Reduce "as needed" residential contract snow hauling 370 $ ‐ $ ‐ Reduce street maintenance: 6 seasonal part time positions, reduced overtime, reduce garden program, supplies, efficiencies with NPDES, professional services, increase GIS positions 1,080 $ 540 $ ‐ Reduced facility maintenance 500 $ 150 $ Reductions ‐ Plan A Reductions ‐ Plan B

Service Impacts by Department – Community Development

000’s

$ millions 2012 Bud 2013 Cont 2013 Plan A 2013 Plan B Labor $12.7 $13.4 $12.6 $12.6 Non-Labor $1.1 $1.1 $1.0 $1.0

Community Development 754 $ 754 $ ‐ 2 vacant planning positions (Plan Spvs Land use review & Jr. Admin Officer) 219 $ 219 $ ‐ 1 filled Land Use Enforcement Senior Planner; transfer person to another position 124 $ 124 $ ‐ 1 vacant senior planner 137 $ 137 $ ‐ Unfund GIS filled position 87 $ 87 $ ‐ 1 filled Associate long range planner 123 $ 123 $ ‐ Add new Plan reviewer/front counter permit technician (81) $ (81) $ ‐ 1 vacant senior transportation planner 145 $ 145 $ Reductions ‐ Plan A Reductions ‐ Plan B

$ millions

Service Impacts by Department – Health and Human Services

000’s

$ millions 2012 Bud 2013 Cont 2013 Plan A 2013 Plan B Labor $4.2 $4.4 $4.3 $4.3 Non-Labor $6.4 $6.3 $5.5 $5.7

Health and Human Services 798 $ 547 $ ‐ Reduce funding for the following programs: ‐ Anchorage Youth Court 205 $ 205 $ ‐ Chugiak and Anchorage Senior Centers 197 $ ‐ $ ‐ Air Quality Program 221 $ 221 $ ‐ Homelessness Coordinator 121 $ 121 $ ‐ Reduce cemetary and facility maint staff 54 $ ‐ $ Reductions ‐ Plan A Reductions ‐ Plan B

Service Impacts by Department – Library

000’s

$ millions 2012 Bud 2013 Cont 2013 Plan A 2013 Plan B Labor $6.4 $6.5 $5.8 $6.5 Non-Labor $1.4 $1.4 $1.3 $1.4

Library 792 $ ‐ $ ‐ Reduce Loussac Library Hours and Services 428 $ ‐ $ ‐ Reduce hours from 64 per week to 46 per week ‐ Reduce Adult Services program, reduce library assistant ‐ Reduce Branch Library Hours from 36 or 34 hours per week to 21 hours per week 364 $ ‐ $ Reductions ‐ Plan A Reductions ‐ Plan B

Service Impacts by Department – Public Transportation

000’s

$ millions 2012 Bud 2013 Cont 2013 Plan A 2013 Plan B Labor $14.0 $14.7 $13.1 $14.7 Non-Labor $7.5 $8.0 $6.8 $8.0

Public Transportation ‐ (net of revenue reductions) 2,312 $ ‐ $ ‐ Reduce People Mover Service: ‐ Eliminate Sunday Service 703 $ ‐ $ ‐ Eliminate early morning/late evening trips 235 $ ‐ $ ‐ Reduce Saturday service hours 334 $ ‐ $ ‐ Eliminate Route 60 (Klatt/John/Oceanview) 178 $ ‐ $ ‐ Eliminate Route 102 (Eagle River to Anc) 291 $ ‐ $ ‐ Reduce AnchorRides Services ‐ $ ‐ Eliminate Sunday Service 94 $ ‐ $ ‐ Eliminate funding for seniors 307 $ ‐ $ ‐ Reduce Connect Service: Eagle River/Chugiak/Birchwood 170 $ ‐ $ Reductions ‐ Plan A Reductions ‐ Plan B

Six Year Fiscal Plan – Structural Balance

Plan A Plan B

Collective Bargaining Agreements ‐ Negotiations

Labor Organization Expiration Membership(1) Anchorage Municipal Employees Association 12/31/13 549 Anchorage Police Department Employees Association 12/31/14 491 International Association of Fire Fighters 12/31/14 353 International Brotherhood of Electrical Workers/NECA 10/31/13 236 IBEW / Mechanics 12/31/13 63 International Union of Operating Engineers 06/30/13 149 Public Employees Local 71 06/30/13 94 Plumbers and Pipefitters 06/30/10 139 Teamsters 12/31/13 109 Non-Represented / Executives / Assembly Employees N/A 688

2013 Capital Improvement Budget & 2013‐2018 Capital Improvement Plan for General Government

2013 General Government Capital Budget By Category ‐ $487.2 Million

Library, $1,120 Maintenance & Operations, $17,400 Roads & Transportation, $267,425 Facility Improvements, $130,030 Parks & Recreation, $31,343 Public Safety, $27,967 Information Technology, $11,930 27% 2% 3% 6% 56% 6%

2013 General Government Capital Budget By Source of Funds ‐ $487.2 Million

State Grants 438,144 89% Federal Grants 3,310 1% Other 17,565 4% G.O. Bonds 28,196 6%

2013 Capital Improvement Budget Department Summary by Funding Source

Department Bonds State Federal Other Total Anchorage Fire 795 7,460 60 100 8,415 Anchorage Police 600 13,650

• 14,250

Information Technology

• 11,930

11,930 Library

• 220
• 900

1,120 Parks and Recreation 2,400 27,583

• 160

30,143 Public Transportation 525 8,700 3,250

• 12,475

Public Works 23,876 380,531

• 4,475

408,882 Total 28,196 438,144 3,310 17,565 487,215

Significant Capital Projects



Fire Station 41 Renovation – Girdwood $4.5M



Fire Essential Facilities Fuel Upgrades – Fire $1M



APD Expansion Phase II Indoor Secure Storage – Police $12.5M



E911 Upgrade – Police $1.6M



Midtown Transit Facility – Public Transportation $8M



Public Court Replacement Dempsey Anderson – Parks and Recreation $6M



Anchorage Area-Wide Radio Network (AWARN) – Public Works $2.7M



Dept of Health and Human Services Headquarters – Public Works $25M



Dempsey Anderson Ice Arena Upgrades – Public Works $10M



Ben Boeke Ice Arena Upgrades – Public Works $10M



Sullivan Arena Facility Upgrades – Public Works $10M



Reeve Boulevard Street Maintenance Facility – Public Works $3.3M



U Med District Northern Access – Public Works $20M



Fleet Maintenance Shop – Public Works $6M



Computer Assist Mass Appraisal (CAMA) – IT $5M



Geographic Information Systems (GIS) Restructuring – IT $4M

2013-2018 Capital Improvement Program

D epartment 2013 2014 2015 2016 2017 2018 To tal Anchorage F ire 8,415 5,185 4,750 1,750 4,550 1,900 26,550 Anchorage Police 14,250 2,700 600 600 600

• 18,750

Inform ation Technology 11,930 6,735 4,250 350 725 900 24,890 Library 1,120 1,120 1,120 1,084 130

• 4,574

Parks and Recreation 30,143 751 1,391 1,044 1,048 745 35,122 Public Transportation 12,475 4,495 3,695 3,882 2,695 1,695 28,937 Public Works 408,882 197,726 177,401 225,169 143,272 104,563 1,257,013 To tal 487,215 218,712 193,207 233,879 153,020 109,803 1,395,836