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Click to edit Master title style City Financial Policies FY 2014 Six Plus Six Financial Report FY 2015 to FY 2019 Five Year Forecast Sher eryl Sculley lley, City ity Manag anager Ben G en Gorzell ll, Chief ief F Financ inancia ial l

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

1

Click to edit Master title style

City Financial Policies FY 2014 Six Plus Six Financial Report FY 2015 to FY 2019 Five Year Forecast

Sher eryl Sculley lley, City ity Manag anager Ben G en Gorzell ll, Chief ief F Financ inancia ial l Offic icer er Mar aría a Villag Villagómez, Budg dget et Dir irec ecto tor

City Council “B” Session

May 14, 2014

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

2

Ag e nda

  • 1. F

ina nc ia l Po lic ie s

–

Pre se nte d b y Be n Go rze ll, Chie f F ina nc ia l Offic e r

  • 2. F

Y 2014 Six Plus Six F ina nc ia l Re po rt, Mid-Ye a r Budg e t Adjustme nt & F Y 2015 to F Y 2019 F ive Ye a r F ina nc ia l F

  • re c a st

–

Pre se nte d b y Ma ría Villa g ó me z, Budg e t Dire c to r

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SLIDE 3

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

3

F inanc ial Po lic ie s

  • T
  • da y’ s pre se nta tio n pro vide s City

Co unc il with re c o mme nde d upda te s to fina nc ia l po lic ie s

  • Re c o mme nda tio ns to b e inc lude d in

F Y 2015 Budg e t

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

4

Munic ipal Bo nd Rating & I mplic atio ns

  • Munic ipa l b o nds issue d to fina nc e

Ca pita l Pro je c ts

  • I

nte re st a mo unt pa id o n de b t impa c te d b y ma rke t c o nditio ns a nd c re dit a na lysis

  • f ma jo r ra ting a g e nc ie s:

– Sta nda rd & Po o r’ s – F

itc h, a nd

– Mo o dy’ s

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

5

Ge ne ral Ob lig atio n Rating Ag e nc y Crite ria

  • Mo o dy’ s a nd S&P re vise d ra ting c rite ria in

2013

– mo re e mpha sis o n City de b t a nd pe nsio ns – mo re tra nspa re nc y a nd q ua ntita tive c rite ria

  • Stric te r c rite ria de mo nstra te d

b y re c e nt do wng ra de s o f c itie s like Pho e nix, Chic a g o , a nd I ndia na po lis

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

6

Fitch Moody's* S&P Prime

AAA Aaa AAA

High grade

AA+ Aa1 AA+ AA Aa2 AA AA- Aa3 AA-

Upper medium grade

A+ A1 A+ A A2 A A- A3 A-

Lower medium grade

BBB+ Baa1 BBB+ BBB Baa2 BBB BBB- Baa3 BBB-

City o f Sa n Anto nio Bo nd Ra ting s

  • Ge ne ra l

Ob lig a tio n De b t:

AAA

– * Mo o dy’ s with

Ne g ative Outlo o k

  • Re ve nue a nd

Othe r Bo nds:

A1,A+ to AA,AA1

Current Ratings of City of San Antonio Debt

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

7

Ge ne ral Ob lig atio n Rating Ag e nc y Crite ria

  • While Mo o dy’ s c o nfirme d Sa n Anto nio ’ s

AAA GO Bo nd ra ting , the ra ting a g e nc y put the City o n no tic e with ne g a tive

  • utlo o k

– Cite d de pa rture fro m c re dit funda me nta ls – Cite d lo we r Ge ne ra l F

und e nding b a la nc e a s a c ha lle ng e to ma inta in c urre nt b o nd ra ting

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

8

Ge ne ral Ob lig atio n Rating s

  • Sa n Anto nio is o nly to p -te n City to ho ld

“AAA” GO Bo nd Ra ting

– All 3 ra ting a g e nc ie s

  • I

f City’ s ra ting dro ps, c a pa c ity fo r ne w c a pita l impro ve me nt de c re a se s1:

– 1 le ve l dro p - $6 to $13 Millio n in Gro ss Co st – 2 le ve ls dro p - $19 to $26 Millio n in Gro ss Co st – 3 le ve ls dro p - $38 to $45 Millio n in Gro ss Co st

1) Impact of Rating Levels on $1 Billion of Debt

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

9

Ge ne ral F und – F und Balanc e

* Unaudited. [1] For 2014, other reserves are not budgeted [2] Other Reserves include Reserve for Encumbrances, Inventories of Materials and Supplies, Prepaids, and Designations. [3] Beginning FY 2011, the City implemented GASB 54, which restructured financial reporting by adding certain funds (Parks Acquisition, Economic Development Incentive, Job Training, etc.) and removing the Public Education Government Channel fund.

$23 $23 $29 $48 $68 $79 $80 $85 $88 $88 $89

$61 $76 $103 $80 $108 $100 $101 $87 $71 $49 $52 $14 $20 $31 $31 $30 $27 $49 $61 $58 $50

$99 $118 $162 $160 $206 $207 $230 $233 $217 $187 $0 $50 $100 $150 $200 $250

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 2014 Estimate*

Budgeted Reserve Available Other Reserves $141

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

10 10

Re c o mme nde d Update s

  • 1. I

nc re a se Ge ne ra l F und Budg e te d F ina nc ia l Re se rve s fro m 9 to 10%

  • 2. E

sta b lish a 1 to 3% ta rg e t fo r 2 Ye a r Budg e t/ Pla n

  • 3. Ma na g e Cro wdo ut within Ge ne ra l F

und, b a la nc e b e twe e n Pub lic Sa fe ty a nd No n Pub lic Sa fe ty b udg e ts

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

11 11

Re c o mme nde d Update s

  • 4. Ma na g e Struc tura l Ba la nc e in Ge ne ra l F

und

–

Alig n re c urring re ve nue s with re c urring e xpe nse s

–

Alig n o ne -time re ve nue s with o ne -time e xpe nse s

  • 5. Mo de ra te ly c o nse rva tive

re ve nue pro je c tio ns b a se d o n c urre nt e c o no mic c o nditio ns a nd histo ric a l tre nds

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

12 12

Re c o mme nde d Update s

  • 6. E

sta b lish $1 Millio n c o nting e nc y re se rve fo r Ge ne ra l F und; a nd $3 Millio n c o nting e nc y re se rve fo r c a pita l b udg e t

–

Use o f the se c o nting e nc ie s will b e sub je c t to City Co unc il vo te thro ug h a n a do pte d o rdina nc e

  • 7. Addre ss I

nte rna l Se rvic e F und De fic its within 3 to 5 ye a rs

  • 8. Ava ila b le fund b a la nc e

ta rg e t o f 15%

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

13 13

Click to edit Master title style

FY 2014 Six 2014 Six Plus us Six Six Fin inan ancia ial Repor eport

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

14 14

F Y 2014 Ado pte d Budg e t

Ge ne r al F und

Suppo rts mo st b a sic City se rvic e s: Po lic e , F ire , Stre e ts, Pa rks, L ib ra ry, Co de

$2.3 Billion Consolidate d Budge t

$692 Million $988 Million $570 Million

Re str ic te d F unds

  • Airpo rt F

und

  • De ve lo pme nt Se rvic e s
  • Ho te l Oc c upa nc y T

a x

  • So lid Wa ste
  • Sto rm Wa te r

Capital Pr

  • gr

am

  • 2012 b o nd pro je c ts
  • Airpo rt pro je c ts
  • Co nve ntio n Ce nte r

E xpa nsio n

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

15 15

Ge ne r al F und

Pre paring fo r F Y 2015 Budg e t

  • F

Y 2014 pro je c te d ye a r-e nd fina nc ia l po sitio n is $44 Millio n b e tte r tha n a t b udg e t a do ptio n

– Almo st ha lf due to o ne -time CPS re ve nue s

  • Cha lle ng e s e xist fo r F

Y 2015

– Pro je c te d $27 to $34 Millio n de fic it – Rising e mplo ye e he a lthc a re c o sts – Ma inta ining AAA b o nd ra ting – Unfunde d ne e ds (stre e ts, pa rks, ma inte na nc e o f

c ity fa c ilitie s)

– Ma inta ining he a lthy e nding b a la nc e

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

16 16

Property Tax Revenues $254 25.7% Sales Tax Revenues $235 23.8% CPS Revenues $292 29.5%

Othe r Ope ra ting De pts - $233 Million

Histo ric Pre se rva tio n Ce nte r City Pla nning E c o no mic De ve lo pme nt One -T ime Pro je c ts Do wnto wn Ope ra tio ns T ra nsfe rs Anima l Ca re He a lth Co de E nfo rc e me nt Munic ipa l Co urt Ag e nc ie s Huma n Se rvic e s L ib ra ry No n-De pa rtme nta l Administra tio n: *City Atto rne y *City Cle rk *Huma n Re so urc e s *F ina nc e & Budg e t *City Ma na g e r *Ma yo r a nd Co unc il

Police* & Fire $657

Public Works $54 Parks & Rec $44

* Po lic e Budge t inc lude s Par ks Po lic e

GE NE RAL F UND AVAIL ABL E RE SOURCE S DIST RIBUT E D OVE R MAJOR SPE NDING ARE AS

($ IN MIL L IONS)

Other Resources $207, 21.0%

FY 2014 ADOPTED BUDGET: $988 Million

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

17 17

Ge ne r al F und

F Y 2014 2nd Quarte r F inanc ial Status

  • F

ina nc ia l upda te fo r F Y 2014 is po sitive ; fina nc ia l c ha lle ng e s e xist fo r F Y 2015

  • $34.4 Millio n o r 3.6%

in mo re re ve nue

  • $3.9 Millio n o r 0.4% in

mo re spe nding

$961.6 M $996.0 M

F Y 2014 Budg e t F Y 2014 E stima te

$34.4 M

Var ianc e

FY 2014 REVENUE

$988.3 M $992.2 M

F Y 2014 Budg e t F Y 2014 E stima te

$3.9 M

Var ianc e

FY 2014 EXPENSE

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

18 18

Ge ne r al F und Re ve nue s

F Y 2014 Six Plus Six Pro je c tio ns

($10) $0 $10 $20 $30 $0.6 M $8.7 M

$20.2 M Colder Weather $6.4 M Rate Inc.

80% o f $34.4 Millio n

a ttrib uta b le to unse a so na b ly c old

we athe r a nd CPS r ate inc r e ase

  • E

stima te d $34.4 Million in Additiona l Re ve nue

($2.2 M) CPS SAL

E S

T

AX

PROPE

RT Y

T

AX

O T

HE R

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

19 19

Ge ne r al F und E xpe nditur e s

F Y 2014 Six Plus Six Pro je c tio ns

Ge ne ra l F und De pa rtme nts a re within b udg e t with a fe w e xc e ptio ns:

  • $300,000 inc re a se to Co de E

nfo rc e me nt

  • $500,000 in a dditio na l I

nne r City Re inve stme nt (I CRI P) wa ive rs/ inc e ntive s

  • $1.8 Millio n inc re a se to Po lic e Budg e t fo r

a dditio na l o ve rtime a nd le ss a ttritio n

E la n Rive rwa lk Apa rtme nts

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

20 20

Ge ne r al F und

F Y 2014 2nd Quarte r F inanc ial Status

  • $13.5 Million in b e tte r F

Y 2013 e nding b a la nc e

  • $34.4 Million in a dditio na l

F Y 2014 re ve nue

  • $44.0 Million e nding

b a la nc e re c o mme nde d to b e re se rve d fo r F Y 2015 Budg e t

F Y 2014

($ In Millions) F Y 2014 Budge t F Y 2014 Pr

  • je c tion

Var ianc e

Be g inning Ba la nc e

$34.3 $47.8 $13.5

T

  • ta l

Re ve nue s

961.6 996.0 34.4

T

  • ta l

E xpe nditure s

988.3 992.2 (3.9) E nding Balanc e

$7.6 M $51.6 M

$44.0

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

21 21

  • E

mplo ye e Be ne fits F und fa c e s fina nc ia l c ha lle ng e s

  • $10 Millio n de fic it pro je c te d a t b udg e t

a do ptio n in Se pte mb e r 2013

  • With 6+6 Pro je c tio n,

F Y 2014 e nding fund b a la nc e de fic it pro je c te d a t $16.1 Millio n

E mplo ye e Be ne fits F und

He althc are Co sts

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

22 22

  • F

Y 2014 2nd Qua rte r: $4.6 Millio n o ve r b udg e t

  • F

Y 2014 Pro je c tio n: $8.9 Millio n o ve r b udg e t

– Unifo rm Cla ims:

  • 16% a b o ve F

Y 2013 a c tua ls

– Civilia n Cla ims:

  • 6% a b o ve F

Y 2013 a c tua ls

E mplo ye e Be ne fits F und

He althc are Co sts

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

23 23

Click to edit Master title style

5-Year ear F Forec ecas ast

General Fund

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

24 24

Ge ne ral F und F

  • re c ast
  • $27 to $34 Millio n fina nc ia l

c ha lle ng e pro je c te d fo r F Y 2015

  • Ga p re sults fro m

e xpe nditure s g ro wing fa ste r tha n re ve nue s a nd le ss b e g inning b a la nc e

  • Ge ne ra l F

und re ve nue c o mpo unde d a nnua l g ro wth during fo re c a st pro je c te d a t 2.6%; while e xpe nditure s pro je c te d to g ro w 3.1%

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

25 25

Ge ne ral F und Re ve nue s

Property Tax 26% Sales Tax 24% CPS 29% Other 21%

General Fund Revenues ($ in Millions)

  • $996 Millio n to ta l F

Y 2014 Ge ne ra l F und Re ve nue E stima te

  • $976 Millio n in re c urring re ve nue
  • $20.1 Millio n in o ne -time CPS

Re ve nue s

  • $1,016 Millio n to ta l F

Y 2015 Ge ne ra l F und Re ve nue Pro je c tio n

  • 4.1% mo re tha n F

Y 2014 re c urring re ve nue o f $976 Millio n

  • F
  • re c a st re fle c ts mo de ra te ly

c o nse rva tive re ve nue s

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SLIDE 26

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

26 26

Pro pe rty T ax Assumptio ns

Projected Property Value Growth FY 2014

Actual

FY 2015

Projection

FY 2016

Projection

FY 2017

Projection

FY 2018

Projection

FY 2019

Projection

Existing Values 3.2% 2.1% 1.0% 1.0% 1.0% 1.0% New Values 1.5% 1.8% 2.5% 2.5% 2.0% 2.0% Total Value Growth 4.7% 3.9% 3.5% 3.5% 3.0% 3.0%

  • F
  • re c a st ma inta ins c urre nt City pro pe rty T

a x Ra te o f 56.56 c e nts

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

27 27

Ge ne r al F und

Pro pe rty T ax F

  • re c ast ($ in Millio ns)

$245 $244 $240 $240 $243 $252 $263 $272 $281 $290 $298

$0 $50 $100 $150 $200 $250 $300 $350 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

ACTUAL

3.4% 0.5%

PROJECTION

Compound Annual Growth Rate

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

28 28

Ge ne r al F und

Sale s T ax F

  • re c ast ($ in Millio ns)

$187 $189 $200 $220 $231 $244 $253 $262 $271 $280 $288

$0 $50 $100 $150 $200 $250 $300 $350

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

ACTUAL

3.4% 5.4%

PROJECTION

Compound Annual Growth Rate

  • F

Y 2014 Sa le s T a x E stima te is 5.5% hig he r tha n F Y 2013

Sales Tax Projections FY 2015 4.0% FY 2016 3.5% FY 2017 3.5% FY 2018 3.0% FY 2019 3.0%

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

29 29

Ge ne r al F und

CPS F

  • re c ast ($ in Millio ns)

$265 $284 $298 $288 $293 $299* $316 $325 $335 $345 $355

$0 $50 $100 $150 $200 $250 $300 $350 $400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

ACTUAL

3.5% 2.4%

PROJECTION

Compound Annual Growth Rate

  • F

Y 2014 CPS Re ve nue E stima te is 2%* hig he r tha n F Y 2013

CPS Revenue Projections FY 2015 5.6% FY 2016 3.0% FY 2017 3.0% FY 2018 3.0% FY 2019 3.0%

* Estimate net of $20 Million of One-Time Revenue in FY 2014

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

30 30

E xpe nditure Assumptio ns in F

  • re c ast Pe rio d
  • Re fle c ts funding to pro vide to da y’ s le ve l
  • f City se rvic e s
  • I

nc lude s I nc re a se s in he a lthc a re c o sts

– Unifo rm e mplo ye e s:

11% in F Y 2015, 10% in F Y 2016, 8% in F Y 2017 to F Y 2019

– Civilia n e mplo ye e s:

7% e ve ry ye a r o f fo re c a st

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

31 31

E xpe nditure Assumptio ns in F

  • re c ast Pe rio d
  • Civilia n Ste p Pa y Pla n inc lude d
  • Civilia n Pe rfo rma nc e Pa y fo r No n-Ste p

Pa y Pla n e mplo ye e s inc lude d

  • Unifo rm Ste p, L
  • ng e vity, a nd a sso c ia te d

inc re a se s to Pe nsio n, Re tire e He a lthc a re , Ove rtime a nd b uyb a c k inc lude d in fo re c a st fo r Po lic e a nd F ire e mplo ye e s

  • No Co st o f L

iving Adjustme nt inc re a se s inc lude d fo r Unifo rm o r Civilia n e mplo ye e s

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

32 32

E xpe nditure Assumptio ns in F

  • re c ast Pe rio d
  • Additio na l o pe ra ting c o sts fo r c o mple te d

2012 Bo nd c a pita l pro je c ts

– Distric t 5 a nd 10 Se nio r Ce nte r s – Distric t 2 a nd 9 L

ib ra rie s

– Distric t 3 Co mmunity Ce nte r – F

ire Sta tio ns 18 a nd 30

– Pa rks, Stre e ts a nd Dra ina g e Pro je c ts a c ro ss the

City

  • I

nc re a se s fo r o n-g o ing re pla c e me nt o f e q uipme nt, fue l, supplie s, a nd c o ntra c tua l

  • b lig a tio ns
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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

33 33

Ge ne r al F und

5-Ye ar F

  • re c ast ($ in Millio ns)

$1,068 $1,074 $1,104 $1,135 $1,166

$1,095 $1,118 $1,141 $1,163 $1,190 $900 $950 $1,000 $1,050 $1,100 $1,150 $1,200 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Revenues (Includes Use of Reserves from Prior Fiscal Year) Expenditures (Includes Set Aside of Reserves for Following Fiscal Year)

Projected Ending Balance ($27.4)

($44.4) ($37.0) ($27.6) ($24.7)

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

34 34

Click to edit Master title style

Six ix Pl Plus Six ix & 5-Ye Year F For

  • recast

st

Development Services Fund

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

35 35

De ve lo pme nt Se r vic e s F und

2nd Quarte r F inanc ial Status

  • Mo re re ve nue s due

to inc re a se d va lua tio n o f c o mme rc ia l de ve lo pme nt

  • E

xpe nse s a t b udg e t

$27.6 M $29.2 M

F Y 2014 Budg e t F Y 2014 E stima te

$1.6 M

Var ianc e

REVENUE

$26.4 M $26.4 M

F Y 2014 Budg e t F Y 2014 E stima te

At Budget

Var ianc e

EXPENSE

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

36 36

De ve lo pme nt Se r vic e s

5-Ye ar F

  • re c ast ($ in Millio ns)

$35.0 $34.4 $31.9 $32.9 $33.8

$34.7 $34.2 $31.6 $32.4 $33.2 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Revenues (Includes Fund Balance) Expenditures (Includes amount added to Financial Reserves)

Projected Ending Balance $0.3

$0.2 $0.3 $0.5 $0.7

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

37 37

Click to edit Master title style

Six ix Pl Plus Six ix & 5-Ye Year F For

  • recast

st

Hotel Occupancy Tax Fund

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

38 38

Ho te l Oc c upanc y T ax F und (HOT )

2nd Quarte r F inanc ial Status

  • HOT

re ve nue hig he r a ttrib uta b le to g ro wth in a ve ra g e da ily ra te o ve r the first fe w mo nths o f the ye a r

  • Ho te l Oc c upa nc y

T a x F und-Re la te d e xpe nditure s within b udg e t

$57.8 M $58.7 M

F Y 2014 Budg e t F Y 2014 E stima te

$920,000

Var ianc e

HOT REVENUE

36% 34% 15% 15%

HOT ALLOCATION

Arts Co nve ntio n F a c ilitie s Co nve ntio n Visito rs Bure a u Histo ry & Pre se rva tio n

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

39 39

Ho te l Oc c upanc y T ax

5-Ye ar F

  • re c ast ($in Millio ns)

$60.6 $62.7 $64.9 $67.0 $69.1

$60.6 $62.7 $64.9 $67.0 $69.1 $0.0 $20.0 $40.0 $60.0 $80.0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 HOT & Miscellaneous Revenues Expenditures

Projected Ending Balance $0.0

$0.0 $0.0 $0.0 $0.0

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

40 40

Click to edit Master title style

Six ix Pl Plus Six ix & 5-Ye Year F For

  • recast

st

Solid Waste Fund

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

41 41

So lid Waste F und

2nd Quarte r F inanc ial Status

  • L

e ss re ve nue s due to lo we r c o mmo dity re c yc ling pric e s a nd le ss pa rtic ipa tio n in

  • rg a nic s pro g ra m
  • E

xpe nse re duc tio n due to fe we r c a rts b e ing purc ha se d a nd re duc e d ma rke ting e xpe nse s

$97.8 M $96.1 M

F Y 2014 Budg e t F Y 2014 E stima te

$1.7 M

Var ianc e

REVENUE*

$98.8 M $98.3 M

F Y 2014 Budg e t F Y 2014 E stima te

$500,000

Var ianc e

EXPENSE

* F und b a la nc e o f $4.2 millio n a va ila b le

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

42 42

  • F
  • re c a st suppo rts c urre nt

se rvic e s, Va ria b le Ra te Pric ing , a nd funding fo r pro po se d ne w No rthwe st Se rvic e Ce nte r

  • Do e s no t inc lude funds fo r

pla stic b a g o utre a c h tha t wo uld b e re c o mme nde d if a b a n wa s e na c te d

  • No a dde d funding fo r

c o mme rc ia l re c yc ling a c tivitie s a t this time

So lid Waste F und

5-Ye ar F

  • re c ast Assumptio ns
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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

43 43

Variab le Rate Pric ing

  • T
  • a c hie ve 60% re side ntia l re c yc ling ra te , City

Co unc il a ppro ve d pla n re q uiring tra nsitio n to Va ria b le Ra te Pric ing (VRP)

  • VRP e nc o ura g e s use rs to re c yc le a s mo nthly

ra te s a re b a se d o n a mo unt o f la ndfill wa ste g e ne ra te d

  • Citie s in Ca lifo rnia , Ne w Yo rk, a nd Mic hig a n

imple me nte d VRP sinc e the 1970’ s

  • Citie s in T

e xa s suc h a s Austin, F

  • rt Wo rth,

De nto n a nd Pla no ha ve a lso imple me nte d VRP

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

44 44

So lid Waste F und

60% Re c yc ling Plan

  • I

nitia l 60% re c yc ling pla n inc lude d a c ro ss-the - City o rg a nic s pro g ra m o ve r 3 ye a rs a nd intro duc e VRP in ye a r 4

  • L

a st ye a r sta ff re c o mme nde d a nd City Co unc il a ppro ve d a 3-ye a r vo lunta ry $3 pe r mo nth sub sc riptio n pro g ra m fo r o rg a nic s

  • Ro llo ut a ssume d 35% sub sc riptio n ra te in

F Y 2014 a nd a se lf-suppo rting se rvic e fe e

  • Ac tua l re sults a re 18% pa rtic ipa tio n a nd

se rvic e fe e is no t re sulting in se lf-suppo rting mo de l

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SLIDE 45

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

45 45

Re c o mme ndatio n

Implementation Plan 2014 2015 2016 2017 2018 2019 Organics X X X Variable Rate Pricing X X X

CURRENT 60% RECYCLING PLAN RECOMMENDED 60% RECYCLING PLAN

Implementation Plan 2014 2015 2016 2017 2018 2019 Organics X X Variable Rate Pricing X X X X

slide-46
SLIDE 46

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

46 46

So lid Waste F und

Pro je c te d Rate s in F

  • re c ast Pe rio d
  • Va ria b le Ra te Pric ing wo uld b e g in in F

Y 2016 a nd fully imple me nte d b y F Y 2017

  • Ra te s b e lo w a pply to c usto me rs until the

time Va ria b le Ra te Pric ing is a va ila b le a t the ir re side ntia l lo c a tio n

Solid Waste Services Monthly Fees FY 2014

Actual

FY 2015

Projection

FY 2016

Projection

FY 2017

Projection

Monthly Fee $19.93 $20.93 $21.68 $21.93 Organics Fee $3.00 $3.00 Rate Increase $1.00 $0.75 $0.25

slide-47
SLIDE 47

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

47 47

So lid Waste F und

Variab le Rate Pric ing

Rate

Small Medium Large FY 2016 $19.68 $24.68 $29.68 FY 2017 $19.93 $24.93 $29.93 48 gallons 64 gallons 96 gallons

Organics Recycling Garbage

3 c a rts o ffe re d to a ll c usto me rs 3 g a rb a g e c a rt size o ptio ns

  • All thre e c a rts c a n b e

diffe re nt size s b ut mo nthly ra te b a se d o n g a rb a g e (b ro wn) c a rt size

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SLIDE 48

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

48 48

So lid Waste F und

60% Re side ntial Re c yc ling b y 2025

Starting Baseline -2006

 Blue Cart Recycling

2007 to 2010

 Brush & Bulky Revamp

2011 to 2012

 Education & Outreach

2010 to 2025

 Variable Rate Pricing (3 Cart System) 2016 to 2025 7% +10% +12% +2% +29%

29%

Curre nt Re c yc ling Ra te

STEPS TO ACHIEVING 60% GOAL

60%

31% 29% 17% 7%

slide-49
SLIDE 49

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

49 49

Click to edit Master title style

Mid id-Year B Budge dget A Adj djustme ment nt

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SLIDE 50

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

50 50

F Y 2014 Mid-Ye ar Adjustme nt

– Mid-Ye a r Adjustme nt

re c o mme nde d to F Y 2014 Budg e t

– Ope ra ting a djustme nts b a se d o n

a c tua l a c tivity se e n in first six mo nths o f fisc a l ye a r a nd future pro je c tio ns

  • Ge ne ra l F

und a nd Re stric te d F unds

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SLIDE 51

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

51 51

F Y 2014 Re c o mme nde d Mid-Ye ar Budg e t Adjustme nt – Ge ne r

al F und

  • F

Y 2014 Mid-Ye a r Budg e t Adjustme nt Ordina nc e c o nside re d during Ma y 15 City Co unc il “A” Se ssio n re sulting in re vise d F Y 2014 Budg e t

General Fund

FY 2014 Budget FY 2014 Estimate Mid-Year Adjustment

Revenues $961.6 $996.0 $34.4 Expenditure $988.3 $992.2 $3.9

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SLIDE 52

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

52 52

Prog ra m E nha nc e me nts - $416,000

  • $210,000 to a ug me nt the

Summe r Amb a ssa do r Pro g ra m

 F

unding will do ub le the numb e r o f inte rnship

  • ppo rtunitie s fro m 60 to 120
  • $206,000 fo r a n Adult

E duc a tio n Pilo t Pro g ra m a t City L ib ra rie s

 Adds 2 po sitio ns

F Y 2014 Re c o mme nde d Mid-Ye ar Budg e t Adjustme nt – Ge ne r

al F und

slide-53
SLIDE 53

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

53 53

Development Services ($ in Millions) FY 2014 Budget FY 2014 Estimate Mid-Year Adjustment

Revenues $27.6 $29.2 $1.6 Expenditure $25.7 $26.4 $0.7

F Y 2014 Re c o mme nde d Mid-Ye ar Budg e t Adjustme nt – De ve lo pme nt Se r

vic e s

  • Re ve nue s a djuste d to re fle c t stro ng e r c o mme rc ia l

de ve lo pme nt a c tivity

  • Autho rize s 16 ne w po sitio ns to re vie w a dditio na l

c o mme rc ia l de ve lo pme nt a c tivity

  • Po sitio ns will impro ve c yc le time fo r pe rmitting a nd

inspe c tio ns a nd re duc e c usto me r wa it time

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SLIDE 54

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

54 54

HOT Related Funds

($ in Millions) FY 2014 Budget FY 2014 Estimate Mid-Year Adjustment

HOT (Tax) Revenue $57.8 $58.7 $0.9 Convention & Visitors Expense $19.7 $20.2 $0.5 Community & Visitors Fac Expense $37.0 $37.3 $0.3

F Y 2014 Re c o mme nde d Mid-Ye ar Budg e t Adjustme nt – HOT

F und

  • Re ve nue s a djuste d to re fle c t b e tte r Ho te l Oc c upa nc y

T a x c o lle c tio ns

  • Appro pria tio ns inc re a se b y $835,000

 $500,000 fo r a dditio na l ma rke ting  $335,000 fo r impro ve me nts a t the Ala mo do me in

pre pa ra tio n fo r po te ntia l NCAA spo rting e ve nts

slide-55
SLIDE 55

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

55 55

Employee Benefits Fund

($ in Millions) FY 2014 Budget FY 2014 Estimate Mid-Year Adjustment

Expenditure $117.5 $126.4 $8.9

F Y 2014 Re c o mme nde d Mid-Ye ar Budg e t Adjustme nt – E

mplo ye e Be ne fits F und

  • Mo re e xpe nse to re fle c t hig he r c o sts o f

He a lthc a re c la ims

 Unifo rm Cla ims a t 16% a b o ve F

Y 2013 a c tua ls

 Civilia n Cla ims a t 6% a b o ve F

Y 2013 a c tua ls

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SLIDE 56

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

56 56

F Y 2014 Re c o mme nde d Mid-Ye ar Budg e t Adjustme nt – Six Ye ar

Capital Budge t

  • Re -a llo c a te s funds fro m c o mple te d c a pita l pro je c ts to the

fo llo wing pro je c ts:

  • $390,000 - Ala me da T

he a tre E nviro nme nta l Re me dia tio n Co mplia nc e

  • $300,000 - Clo sure o f Wa te r We ll o n 600 Blo c k o f Ma in Stre e t
  • $200,000 - Za rza mo ra , Bra dy, Ce ra lvo I

nte rse c tio ns Pro je c ts

  • F

unds re -a llo c a te d fro m c o mple te d CD7 pro je c ts

 $255,000 - T

hunde rb ird Hills Pa rk I mpro ve me nts - Ne w Pla yg ro und a nd Pa vilio n

 $300,000 CD7 I

nfra struc ture I mpro ve me nts

  • F

unds re -a llo c a te d fro m c o mple te d CD8 pro je c ts

 $500,000 De Za va la (UPRR to L

  • c khill Se lma )

Pre c o nstruc tio n Se rvic e s

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SLIDE 57

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

57 57

F Y 2014 Re c o mme nde d Mid-Ye ar Budg e t Adjustme nt – Six Ye ar

Capital Budge t

  • Appro pria tio n o f Ho te l Oc c upa nc y T

a x F unds in the a mo unt o f $1.03 Millio n $700,000 fo r re pla c e me nt o f T urf a t Ala mo do me $335,000 fo r re no va tio ns a t Visito r I nfo rma tio n Ce nte r

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SLIDE 58

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

58 58

Click to edit Master title style

Ne Next xt S Steps in in Budge dget Pro Process

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SLIDE 59

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

59 59

F Y 2015 Budg e t De ve lo pme nt-Ne xt Ste ps

  • Ma y 19 to Ma y 22: Co mmunity Budg e t

He a ring s

  • All me e ting s b e g in a t 6:30 pm

NORTHWEST SOUTHWEST

Alic ia T re viño L

  • pe z

Se nio r Ce nte r No rthe a st Se rvic e Ce nte r T

  • o lya rd

T ue sda y, Ma y 20 Mo nda y, Ma y 19

NORTH CENTRAL CENTRAL NORTHEAST

  • St. Bo na ve nture

Ca tho lic Churc h

T hursda y, Ma y 22 We dne sda y, Ma y 21

T riPo int Gra ntha m Ce nte r

T ue sda y, Ma y 20

Unive rsity Unite d Me tho dist Churc h

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SLIDE 60

FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

60 60

F Y 2015 Budg e t De ve lo pme nt-Ne xt Ste ps

  • Ma y 27: City Co unc il Budg e t Go a l Se tting Se ssio n

a t the Co nve ntio n Ce nte r

  • June a nd July: Budg e t Pre pa ra tio n – De pa rtme nts

a ske d to prio ritize o pe ra tio ns a nd pro vide o ptio ns to re duc e b udg e ts

  • Aug ust 7: City Ma na g e r pre se nts Pro po se d Budg e t
  • Aug ust to Se pte mb e r: Budg e t Wo rk Se ssio ns a nd

Co mmunity Me e ting s

  • Se pte mb e r 11: City Co unc il a ppro ve s F

Y 2015 Budg e t

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FY 2014 Six Plus Six Report & Five Year Financial Forecast City of San Antonio

61 61

Click to edit Master title style

City Financial Policies FY 2014 Six Plus Six Financial Report FY 2015 to FY 2019 Five Year Forecast

Sher eryl Sculley lley, City ity Manag anager Ben G en Gorzell ll, Chief ief F Financ inancia ial l Offic icer er María ía Villag Villagómez, Budg dget D et Dir irec ecto tor

City Council “B” Session

May 14, 2014