City and Borough of Juneau FY06 Budget

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1 FY06 Budget Introduction The information presented in this report is a summary of the City's adopted general governmental operating budget for fiscal year 2006 (July 1, 2005 through June 30, 2006). It includes the public service activities supported directly or indirectly with property and/or sales taxes. The information does not include the City s self supported business type activities (Airport, Bartlett Regional Hospital, Docks, Harbors, Water and Sewer operations), which are fully funded from user fees. The Assembly s formal adoption of the budget is done annually. The City Manager is required to submit a proposed balanced budget to the Assembly on or before April 5 of each year. The Assembly, sitting as the Finance Committee, reviews the City Manager s budget recommendations between April 5 and early June in weekly public meetings. The Assembly is then required to adopt the budget on or before June 15. City General Governmental Operations The City provides a wide variety of public services funded fully or partially with property and sales tax dollars. These general governmental functions include: : 1 high school, 1 alternative high school, 2 middle schools, 6 elementary schools, 1 charter school and a correspondence program Engineering: Capital Improvement Planning, Design and Management Public Safety: Police, Fire, Ambulance and Emergency Service Dispatch Libraries: Public Information and Facilities Parks and Recreation: Recreational Programs, Parks, Landscape, Building Maintenance, Parking and Visitor Services Administration: City Management, Clerk and Elections, Information Systems and Personnel Streets: Maintenance, Repair, Snow Removal and Equipment Maintenance Grants: Social Service and Youth Activities Grants Finance: Property Assessing, Financial Services and Purchasing Legislative: City Budget, Legislation and Community Planning Capital Transit: Public Bus and Care A Van Services Law: Prosecution, Incarceration and Legal Support Community Development: Community Planning, Development Permitting and Code Enforcement Eaglecrest Ski Area: Recreational Programs, Ski and Snowboard Instruction, Sales and Rentals

2 The Current Year Budget For FY06, Juneau is anticipating increases in property assessments and sales tax revenues. The increase in property tax (due to increased assessments) is a direct result of increases in property market values and new construction. The increase in sales tax is attributed to tourism growth and unusually nice weather in the summer of These revenue increases have allowed the City to absorb $1.8 million in unanticipated costs increases, add $1.0 million for public service improvements and reduce the mill levy by 0.83 mills (7% or $2.7 million). Per Capita Changes in Spending Growth in governmental spending is a concern of the s Management and the Assembly. To obtain an accurate picture of the change in spending over time, it is important to take into consideration inflation and changes in population. The following graph compares general government and education spending per resident (per capita) between FY86, FY96 and FY06. FY86, FY96 and FY06 General Governmental Expenditures Comparison Per Capita, Adjusted for Inflation $1,200 $1,000 FY86 FY96 FY06 $800 $600 $400 $200 $ General Government

3 Per Capita Changes in Revenue Sources The graph on the following page depicts the changes in revenues on a per resident basis. As can be seen, State and Federal revenues have declined between FY86 and FY06 by over 700% for general government and 11% for on a per capita basis. This has necessitated new and increased local revenues, primarily user fees, fines, permit fees and licenses. It should be noted that the operational mill rate for FY06 is lower than the FY96 operational mill rate by 1.65 mills (13.7%). Increases in sales tax revenues are primarily due to increases in spending during the summer months. FY86, FY96 and FY06 General Governmental Revenue Comparison Per Capita, Adjusted for Inflation $800 $700 $600 FY86 FY96 FY06 $500 $400 $300 $200 $100 $ Property Taxes Sales Tax O ther Local Revenues & Penalties State & Federal for General Government State & Federal for

4 Mill Levy History Mill levies have been significantly impacted by changes in the State s operating support to local governments. In FY82, state support increased dramatically. This resulted in significant reductions in the mill levy from FY82 through FY86. State support started declining in FY87 until it was eliminated in FY04. This reduction resulted in overall mill levy increases from FY87 through FY95. Growth in local revenues and cost management has allowed the City to decreases the mill levy since FY95. The operation mill levy has remained below 11 mills since FY97. For FY06, the adopted mill levy is 9.98 for operations and 1.19 for debt, for a total of Mill Levy History Mill Levy Operational Mill Levy Cap 12 Mills Total Mill Levy Operational Mill Levy Fiscal Year

5 How Are Your Property and Sales Tax Dollars Spent? The following graph shows how your property and sales tax dollars are spent. As mentioned previously, selffunded operations receive no property or sales tax dollars and are not depicted in this graph. Many of the services presented in this graph are partially funded by user fees, fines, State and Federal support and other general revenues. Capital Projects 13% Legislative Grants to Non Profits Law City Manager 1% Clerk and Elections Debt Service Police 1 Note 1 Note 2 Finance 3% Management Information Systems Capital City Fire/Rescue Personnel Rainforest Recovery Center 29% Streets 5% Eaglecrest Parks and Recreation Capital Transit 5% General Engineering Libraries Community Development Note 1: General obligation voter approved debt is funded with a specific tax levy. The debt service mill levy for FY06 is 1.19 mills, which is $119 for each $100,000 of assessed value. Note 2: Capital Projects receive no property tax revenues. The funding represented above is $890,000 of sales tax for the Bartlett Regional Hospital expansion, ice skate arena and school repairs and $8,200,000 of sales tax for areawide capital projects. Additional information on the FY06 Adopted Budget can be found in the Executive Summary section of the full budget document at: budget.php