TITLE
The Mayor and City Council shall discuss and possibly take action on adopting a tentative budget for fiscal year 2018-2019 (FY18-19) 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 FY18-19 is presented for Council consideration. The tentative operating and capital budget, based on Council strategic priorities and staff input, totals $87,887,440. The tentative operating budget totals $65,265,681 and the tentative Capital Improvement Projects (CIP) budget totals $22,621,759.
Final budget adoption is scheduled for June 19, 2018, at a Special Council Meeting.
Operating Budget
The proposed operating budget was developed through input from the April 2, 2018 Council Budget, Finance and Operations (BFO) Subcommittee meeting.
Based on this meeting, the proposed FY18-19 tentative operating budget totals $65,265,681. The totals, by fund, are as follows:
Tentative Operating Expenditures
General Fund $ 41,940,731
Highway User Revenue Fund 2,088,042
Copper Sky Recreation Fund 2,461,371
Grants Fund 15,103,590
Debt Service Fund 3,671,947
Total $ 65,265,681
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 FY17-18.
Increases Funding for Court
Budgets 4% Increase in Salaries
Adds 10 positions
Focuses on Equipment Replacement
Funds Design of Fire Administration Building
As a result of City Manager review and BFO Subcommittee review, the anticipated revenues in excess of revised planned expenditures totals $92,372 calculated as follows.
Anticipated Revenue $ 42,033,103
Proposed Expenditures (41,940,731)
Balance $ 92,372
Capital Budget
The 5-Year Capital Improvement Plan (Plan) serves as the basis for developing the FY18-19 Capital Improvement Projects (CIP) budget. Based on the Plan, the FY18-19 tentative CIP budget totals $22,621,759 and is as follows:
Proposed Capital Improvement Projects (CIP) Expenditures:
General Governmental CIP $ 6,882,390
Grants CIP 4,070,558
County Road Tax 1,680,000
Transportation Impact Fee 8,690,261
Highway User Revenue Fund 833,550
Parks DIF Fees 425,000
Fire Impact Fee 40,000
Total Proposed CIP Expenditures $ 22,621,759
This item will be presented by Trisha Sorensen, Interim City Manager and Brenda Hasler, Financial Services Director.
STAFF RECOMMENDATION
Staff recommends that the Mayor and Council adopt the tentative budget for fiscal year 2018-2019 (FY18-19) and the 5-Year Capital Improvement Plan.