Council Action on 2014-15 Proposed Budget Overview of Balanced - - PowerPoint PPT Presentation

Council Action on 2014-15 Proposed Budget

Overview of Balanced Approach

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• Shared solutions save City services
• 1% revenue
• 1.6% concessions
• Continued investment in employee

benefits

• Preserve management capacity and

investment in infrastructure

• Efficiency efforts continue
• Zero service cuts
• Resume Police Officer & Firefighter hiring

Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

2014-15 Community Budget Process

Preliminary General Fund Status & 5-Year Forecast January 28 Public Safety Funds Update February 25 Trial Budget March 25 Community Budget Hearings April City Manager’s Proposed Budget May 6 Council Budget Decision May 20 Legal Budget Adoption Actions June & July

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Responses to Council Information Requests

Public Information Office

Central Public Information Office including PHX11

(e.g. City Council, Neighborhood Services, Budget & Research, City Clerk)

$2,072,000* Citywide Public Information staff in

• ther departments

(e.g. Police, Fire, Streets, & other General Fund departments)

$1,131,000 Total $3,203,000

*Funded by General Fund cable licensing fees totaling $9.5M

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Public Information Office

• Develops and maintains

phoenix.gov

• Broadcasts Council

meetings

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Public Information Office

• Communicates information to

community on services and events

• Updates public on important

changes

• Responds to public records

requests (state law)

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Public Information Office

• Assists with economic

development through promotional and marketing materials

• In 2012-13, PIO’s Marketing

Partnership Program generated

• ver $500,000 in General Fund

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Government Relations Office

Government Relations Office Expenses $1,401,000

• City, county, regional, state, tribal, national relations
• 2012-13 federal grant awards totaled $117,414,120:
• SAFER
• COPS
• CDBG
• Transit funds
• HOME funds
• Others

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Government Relations Office

• Promote fair share in federal allocations:
• Human services
• Head Start
• Housing
• CDBG
• Biomedical industry & medical education

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Government Relations Office

• Track hundreds of bills annually that may

impact community services or City revenues,

• r result in unfunded mandates
• Communicate to state legislators on potential

legislative impact to Phoenix residents

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

City Memberships

$542,000 in General Fund City membership expenditures, largest:

• Maricopa Association of Governments

(MAG)

• League of Arizona Cities &Towns
• National League of Cities (NLC)
• U.S. Conference of Mayors
• Provide state & national presence in

critical policy areas for 6th largest city in U.S.

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

City Memberships

• MAG- federal & regional transportation funding

and air quality

• from 2010-11 to 2014-2015, Phoenix

received about $117M in grants through MAG

• NLC- With 19,000 cities/towns, advocates for

Phoenix in Washington D.C. on important legislation and to oppose unfunded mandates

• AZ League- 91 cities/towns, represents

legislative interests, provides technical & legal assistance, and coordinates shared services

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Travel and Conferences

2014-15

• Police and Fire account for $103,000
• Largest single use is Police at $69,525 for

crime investigations and needed training

71%

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Sale of Excess City-Owned Property

Several City-owned properties actively marketed:

• 12th Street and Greenway Parkway
• 4056 East Washington
• 5347 North 19th Avenue
• 1124 West Camelback
• 139 East Jesse Owens Parkway
• 101 South Central Avenue (Barrister)
• 2222 W. Greenway parcel under

contract; scheduled to close June 11

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Sale of Excess City-Owned Property

Additional Properties Under Review with Broker:

• $1.5M budgeted in 2014-15 to offset

food tax reduction

• Additional $3.1M budgeted to offset

Public Safety technology costs for Police RMS and Fire 911 System

• Land purchased w/ federal or enterprise

funds not available to GF

• Several properties not marketable

(strips of right-of-way, etc.)

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Vacancies

515 GF Civilian vacancies accounted for in:

• salary savings or work order charges
• contractors or temp agency staff
• efficiency reductions
• service reductions preserved in

Proposed Budget

• temporary promotion or current hiring

process

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Vacancies

• Remaining 92 positions

provided in detailed report to Council- $6.8M, not including Library positions

• Service impact
• Includes:
• Police support
• 911 dispatchers
• Park rangers and parks

maintenance

• Planning & development
• Victim advocacy

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Large Service Departments

Department 2007-08 Positions (FTE) Proposed 2014-15 Positions (FTE) Position Reductions % Variance Parks 1,696.6 1,072.8 (623.8)

• 36.8%

Human Services 525.4 319.0 (206.4)

• 39.3%

Streets 789.0 661.0 (128.0)

• 16.2%

Library 474.0 373.8 (100.2)

• 21.1%

Neighborhood Services 246.0 204.5 (41.5)

• 16.9%

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Internal Services Departments

Department 2007-08 Positions (FTE) Proposed 2014-15 Positions (FTE) Position Reductions % Variance Finance 325.5 228.0 (97.5)

• 30.0%

City Clerk 130.2 62.5 (67.7)

• 52.0%

Law 258.0 203.0 (55.0)

• 21.3%

HR 116.4 95.1 (21.3)

• 18.3%

City Auditor 38.5 25.5 (13.0)

• 33.8%

Equal Opportunity 39.0 26.0 (13.0)

• 33.3%

Central PIO 31.0 18.6 (12.4)

• 40.0%

B&R 34.0 24.0 (10.0)

• 29.4%

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Staffing Reductions

Nearly 3,000 positions eliminated since peak due to service reductions, efficiencies and organizational review

2,953

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Proposed 2014-15 Budget

Where We Began

$37.7 Million Gap

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$37.7 Million deficit assumed current costs to continue labor contracts & no new revenue

Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Community Input Matters

• More than 20 Budget

hearings

• 1,700 comments received

through hearings, emails, and calls

• Main Message:

“City Services are too valuable to lose”

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Proposed Budget

• Reduce Expenses through

Efficiencies: $6.5M

• Defer Costs/Use Alternative

Fund Sources: $3.7M

• Reduce Employee Cost

Growth: $16.5M

• Add Revenue: $11.0M
• Reduce Services: $0

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Balanced Budget- No Service Cuts

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

General Fund Revenue

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GF Revenue Category 2014-15 Estimate (Millions) % Change Primary Reason or Rationale for Difference Local Taxes

$433.9 2.4% Continued moderate improvement in sales tax collections expected, and food sales tax expiring 4/1/15

State-Shared Income Tax

175.2 8.4% Already known income tax collections (from FY 12/13)

State-Shared Sales Tax

135.5 5.9% Continued moderate improvement in state sales tax expected

State-Shared Vehicle License Tax

54.3 4.0% Continued moderate vehicle sales expected

Primary Property Tax

138.0 (3.4%) Removal of torts

User Fees & Non- Taxes

121.3 1.7% Includes planned sales of city

• wned vacant land/buildings

Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Proposed Added Revenue

$11M ongoing revenue assumed from among the items posted on City Website:

• Added excise tax of $1.50 per month for

residential municipal service bills

• Bag fee
• Parking meter demand-based pricing
• High demand mountain parks parking fee
• Annual recreation pass increase
• Annual senior center pass increase
• Sports team athletic field usage increase
• New electricity fee for athletic field lighting

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Employee Costs

• Proposed budget includes across the

board (1.6%) reduction to cost of employee compensation

• Significant investment in City

employees through:

• Pension in General Fund up $18M this

year and $61M over 5 years

• Health insurance in General Fund up

$3M this year and $19M over 5 years

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Key Services Preserved

• Fire Prevention services
• Fire crisis response
• By September 1, complete

civilianizing Police Central Booking, returning 15 Police Officer positions to patrol/investigations

• Police Air Support

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Key Services Preserved

• Senior centers
• Telephone Pioneer, Pierce, &

Holiday Pools

• Swim and dive teams at all pools
• All 13 Community and Recreation

Centers, including S. Phoenix Youth Center

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

• Community Prosecutors
• Courtrooms
• Graffiti Busters
• Neighborhood code enforcement

Key Services Preserved

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

• Funding for

homeless shelter

• Funding to food

banks

Key Services Preserved

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

• Annual arts grants funding
• Necessary auditing, tax compliance

enforcement and important internal services

Key Services Preserved

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Public Safety Hiring

Without Balancing Plan- Estimated Ending Balances

($19) ($47) ($75) ($104) ($132) ($160) ($189)

($210) ($180) ($150) ($120) ($90) ($60) ($30) $0

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Combined Ending Public Safety Funds Balances

• Without Council Action-

(Millions)

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Estimated Ending Balances

($37) ($28) ($4) $11

($50) ($30) ($10) $10

2012-13 Actual 2013-14 Estimate 2014-15 Projected 2015-16 Projected Revised Estimated Public Safety Funds Ending Balances

(Millions)

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Police Officer Hiring Plan Advanced

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Police Academy Start Dates Number

• f New

Hires March/April 2015* 15 July 2015* 15 October 2015* 25 January 2016 25 April 2016 25 July 2016 25 October 2016 25 January 2017 25 April 2017 25 July 2017 25 October 2017 25 January 2018 25 April 2018 25 *Without compensation reductions of -1.6% in 2014-15 and -0.9% in 2015-16, Police Officer hiring was planned to resume in the final quarter of calendar year 2015

Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

305 total projected new hires through April 2018

Firefighter Hiring Plan Advanced

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Number of Firefighter Positions SAFER Grant Expiration Date Hire Date 28 10/17/2014 N/A 28 12/27/2014 N/A 7 N/A March/April 2015 42 2/27/2016 N/A

• Balancing enables Public Safety Funds to

absorb expiring SAFER grants for 98 Firefighters.

• Concessions enable hiring of 7 additional

Firefighters in March/April 2015.

Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Management Next Action Steps

Comprehensive Organizational Review (CORE)

Assistant City Manager will lead assessment of:

• Span of control, layers, & managerial-

employee ratios

• Vacancies and positions reallocation needs
• Consolidate efforts among departments
• Innovate in service delivery
• Labor-management efficiency teams
• Reporting department budgets regularly
• Overtime usage
• New revenue generation ideas

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Cost Recovery Policies

Review City's cost recovery of fees & charges

• Examine factors that determine extent that

user fees recover or offset costs for a particular City service, such as:

• Public safety (e.g. event traffic control)
• Community service impact (e.g. pools)
• Economic impact (e.g. special events)
• Fairness (e.g. residents and non-residents)
• Income level of main population served
• Other factors

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

City Manager Work Groups

City Manager charged Finance, Budget & Research and Human Resources to review citywide opportunities for improvement/savings for:

• Revenue collection processes
• Health care cost containment
• Worker’s compensation costs
• Police/Parks special event costs

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Meet & Confer Ordinance Review

Review of Meet & Confer Ordinance

• Recommend process

improvements to better align the dates in the ordinance with the budget process for future contracts

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Next Steps

Summer 2014

• Staff Review

Fall/Winter 2014

• Council Review and Action

In time for 2015-16 Budget Process

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Conclusion

• Shared solutions save City services
• 1% revenue
• 1.6% concessions
• Continued investment in employee benefits
• Preserve management capacity and investment

in infrastructure

• Efficiency efforts continue
• Zero service cuts
• Resume Police Officer & Firefighter hiring

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested

Action Requested

Staff recommends approval

• f the 2014-15 Proposed

Budget:

• Preserve City Services
• Advance Police and Fire

Hiring

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Overview Budget Process Request for Information Proposed Budget Manager’s Next Steps Action Requested