TITLE
The Mayor and City Council shall discuss and possibly take action on adopting a tentative budget for fiscal year 2019-2020 (FY19-20) 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 FY19-20 is presented for Council consideration. The tentative operating and capital budgets, based on Council strategic priorities and staff input, total $105,654,318. The tentative operating budget totals $67,568,626 and the tentative Capital Improvement Projects (CIP) budget totals $38,085,692.
Final budget adoption is scheduled for June 4, 2019, at a Council Meeting.
Operating Budget
The proposed operating budget was developed through input from the April 15, 2019 Council Budget and Finance Committee (BFC) Subcommittee meeting. Based on this meeting, the proposed FY19-20 tentative operating budget totals $67,568,626. The totals, by fund, are as follows:
|
General Fund |
$ 48,336,095 |
|
Special Revenue Funds |
|
|
Highway User Revenue Fund |
$ 5,326,370 |
|
Grants Operating Fund |
$ 7,800,000 |
|
1/2 Cent County Road Tax |
$ 2,100,000 |
|
Debt Service Fund |
$ 4,006,161 |
|
Total Operating Expenditures |
$ 67,568,626 |
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 19-20 Tentative Budget is $900,000 less than the previous year.
• There will be no increase to the primary property tax rate.
• For the first time in this City’s history this budget establishes an asset replacement fund and sets aside additional money in support of self-insured loses and disaster contingency reserves.
• Funding for street maintenance will increase by more than $2 million through prudent utilization of DIF, HURF and County Road Tax Funding.
• This budget includes paying off the total unfunded liability for Police PSPRS.
As a result of City Manager review and BFC Subcommittee review, the anticipated revenues in excess of revised planned expenditures in the General Fund totals $34,265 and is calculated as follows:
|
|
|
|
Anticipated Revenues |
$ 48,370,360 |
|
Planned Expenditures |
$ 48,336,095 |
|
Revenues in Excess of Expend. |
$ 34,265 |
Capital Budget
The 5-Year Capital Improvement Plan (Plan) serves as the basis for developing the FY19-20 Capital Improvement Projects (CIP) budget. Based on the Plan, the FY19-20 tentative CIP budget totals $38,085,692 and is as follows:
|
Capital Project Funds |
|
|
General Government CIP |
$ 5,398,323 |
|
Grants CIP |
$ 15,070,799 |
|
Transportation DIF |
$ 5,319,870 |
|
Parks DIF |
$ 1,294,004 |
|
Library Impact Fee Fund |
$ 3,280,221 |
|
Special Revenue Funds |
|
|
1/2 Cent County Road Tax |
$ 780,020 |
|
Highway User Revenue Fund |
$ 3,002,703 |
|
Asset Replacement Fund |
$ 3,939,752 |
|
Total |
$ 38,085,692 |
Capital Improvements included in this year’s budget:
• Construction of a new library
• A monument sign entering the north side of Maricopa on SR 347
• SR 347 Signal Synchronization
• Signal at White and Parker and Honeycutt
• Flood Warning System
• Spec Building at Estrella Gin
• Water Main Extension along SR 238
This item will be presented by Ricky Horst, City Manager.
STAFF RECOMMENDATION
Staff recommends that the Mayor and Council adopt the tentative budget for fiscal year 2019-2020 (FY19-20) and the 5-Year Capital Improvement Plan.