TITLE
The Mayor and City Council shall discuss and possibly take action on adopting a tentative budget for fiscal year 2017-2018 (FY17-18) and the 5-Year Capital Improvement Plan. Discussion and Action.
AGENDA ITEM DESCRIPTION
In compliance with Title 42 of the Arizona Revised Statutes (A.R.S.), the tentative budget for FY17-18 is presented for Council consideration. The tentative operating and capital budget, based on Council strategic priorities and staff input, totals $77,096,283. The tentative operating budget totals $65,248,440 and the tentative Capital Improvement Projects (CIP) budget totals $11,847,843.
Final budget adoption is scheduled for June 20, 2017, at a Special Council Meeting.
Operating Budget
The proposed operating budget was developed through input from the April 20, 2016 Council Budget, Finance and Operations (BFO) Subcommittee meeting.
Based on this meeting, the proposed FY17-18 tentative operating budget totals $65,248,440. The totals, by fund, are as follows:
Tentative Operating Expenditures
General Fund $ 43,618,460
Highway User Revenue Fund 1,863,513
Copper Sky Recreation Fund 4,979,278
Grants Fund 11,093,686
Debt Service Fund 3,693,503
Total $ 65,248,440
The information above includes all operating funds of the City with the General Fund being the largest operating fund. Highlights of the tentative operating budget are as follows:
The proposed budget maintains the primary property tax rates at the same rate as in FY16-17.
Increases Funding for Court
Budgets 4% Increase in Salaries
Adds 10 positions
Focuses on Equipment Replacement
Funds Design of Fire Administration Building
The initial General Fund budget requests, as presented to the City Manager, totaled $42,193,481 resulting in expenditures exceeding anticipated revenues by $3,695,363. As a result of City Manager review and BFO Subcommittee review, the revised planned expenditures in excess of anticipated revenues totals $(4,988,136) calculated as follows.
Anticipated Revenue $ 38,630,324
Proposed Expenditures (43,618,460)
Balance $ (4,988,136)
Capital Budget
The 5-Year Capital Improvement Plan (Plan) serves as the basis for developing the FY17-18 Capital Improvement Projects (CIP) budget. Based on the Plan, the FY17-18 tentative CIP budget totals $11,847,843 and is as follows:
Proposed Capital Improvement Projects (CIP) Expenditures:
General Governmental CIP $ 3,832,500
Grants CIP 1,396,000
Local Road Maintenance 147,460
County Road Tax 1,330,000
Transportation Impact Fee 4,119,343
Highway User Revenue Fund 982,540
Fire Impact Fee 40,000
Total Proposed CIP Expenditures $ 11,847,843
This item will be presented by Gregory Rose, City Manager and Brenda Hasler, Financial Services Director.
STAFF RECOMMENDATION
Staff recommends that the Mayor and Council adopt the tentative budget for fiscal year 2017-2018 (FY17-18) and the 5-Year Capital Improvement Plan.