Proposed 2011-2012 General Fund Budget City Council Study Session September 28, 2010
The Proposed 2011-2012 Biennial Budget 2 Is Smaller / Downsizes Proposes No Service Reduction Requires No New Taxes Reduces Existing Taxes Proposes No Layoffs Protects Reserves Requires Salary/Wage Freeze Maintains Service Capacity Increases Council Emergency Contingency
26 Months Ago, We Thought The Recession Would Look Like This 3 Jan, 2009 Jan, 2011
4 BUT
We Believe The Recession/Recovery Will Look Something Like This 5 Jan, 2009 Jan, 2011 Jan, 2013
The Current View 6 Differences Much Deeper Recession Much Slower Recovery We Will Not Recover To Previous Level Of Vitality By The End Of 2012
Council s Direction For Budget Preparation Do Not Layoff Employees Do Not Reduce Services Do Not Use Reserves To Balance The Budget Increase Council Emergency Contingency Do Not Recommend New Taxes Reduce Business & Occupation Tax 7
Assumptions of the Budget The Recovery will take a long time. We must be sure to adjust to the realities of the situation without sacrificing our ability to serve well. 8 Because we do not know how this Recovery works, we must manage our way through h it carefully, adjusting to the circumstances as they develop. We must all keep the budget discipline.
9 The Proposed 2011-12 12 General Fund Budget
Downsizes Employees Eliminates 79 Positions Proposed Budget 2009-10 General Fund Positions 1,481 GF Police & Fire Sworn Officers 710 Non-Sworn General Fund Positions 771 10 Positions Eliminated = 79 (10.2% of non-sworn positions) Continues High Performance Innovations
Proposed Budget Positions Removed from the 2011-12 Preliminary General Fund Budget Department Position Description Department Position Description 1 Comm/EconDev Urban Planner III 41 Public Works Engineer, Professional 2 Comm/EconDev Community Relations Spec 42 Public Works Financial Assistant 3 Comm/EconDev Permit Specialist 43 Public Works Grounds Maint Worker 4 Comm/EconDev Office Assistant 44 Public Works Engineer, Professional 5 Finance Financial Assistant - AP 45 Public Works Grounds Maintenance Crew Leader 6 Finance Customer Service Assistant - T & L 46 Public Works Engr Technician I 7 HumanResources Human Resources Assistant 47 Public Works Laborer 8 Legal Legal Intern 48 Public Works Laborer 9 Legal Legal Intern 49 Public Works Financial Assistant 10 Legal City Attorney, Sr Asst 50 Public Works Administrative Assistant I 11 Legal City Attorney, Sr Asst 51 Public Works Laborer 12 Legal Administrative Assistant I 52 Public Works Laborer 13 Legal Paralegal, Sr. 53 Public Works Laborer 14 Legal City Attorney II, Asst 54 Public Works Laborer 15 Muni Court Court Clerk 55 Public Works Engineer, Professional 16 Police Animal Control & Compl Officer 56 Public Works Construction Manager 17 Police Financial Assistant 57 Public Works Construction Manager 18 Police Forensic Services Supervisor 58 Public Works Laborer 19 Public Works Mechanical Inspector 59 Public Works Laborer 20 Public Works Mechanical Inspector 60 Public Works Laborer 21 Public Works Real Estate Spec, Sr 61 Public Works Real Estate Spec 22 Public Works Real Estate Spec, Sr 62 Public Works L I D Representative 23 Public Works Building Inspector 63 Public Works L I D Representative 24 Public Works Engineer, Associate 64 Public Works Office Assistant 25 Public Works Management Analyst I 65 Finance Administrative Assistant 26 Public Works Parking Enf Officer 66 Police Crime Scene Technician 27 Public Works Parking Enf Officer 67 Police Crime Scene Technician 28 Public Works Equipment Operator 68 Police Financial Analyst 29 Public Works L I D Rep, Sr 69 City Manager Management Fellow 30 Public Works Street Maint Supv 70 Comm/EconDev Environmental Specialist 31 Public Works Street Maint Worker 71 HumanResources To be Determined 32 Public Works Financial Assistant 72 HumRgts/Svcs To be Determined 33 Public Works Equipment Operator 73 HumRgts/Svcs To be Determined 34 Public Works Street Maint Worker 74 Legal To be Determined 35 Public Works Equipment Operator 75 Legal To be Determined 36 Public Works Grounds Maint Worker 76 Other To be Determined 37 Public Works Equipment Operator 77 Other To be Determined 38 Public Works Laborer 78 Other To be Determined 39 Public Works Const Inspection Supv 79 Other To be Determined 40 Public Works Equipment Operator Heavy Slide 10 Page 1 of 1 9/28/10
Proposed Budget 11 Reduces/Defers Non-personnel Expenses Constrains Maintenance and Operating Expenses Bonds Capital Expenses / Refinances Existing Debt
Proposed Budget Maintenance and Operating Expenses 2009 10 Maintenance & Operations 119,555,700 2011 12 Maintenance & Operations 140,023,400 Change between bienniums 20,467,700 Less Maintenance & Operations transferred to new funds Streets (10,151,095) Traffic (2,227,742) Permitting (3,361,836) Parking (9,496,818) Total transferred (25,237,491) Difference (4,769,791) Major contributors to difference: Debt reduction (2,400,000) Operating, Office & Food supplies (1,000,000) Communication/radio lease (600,000) Building rent (500,000) Reduce miscellaneous expenses (300,000) (4,800,000) Slide 11 1 Page 1 of 1 9/28/10
Proposed Budget Uses of 2010 Bond Proceeds Capital Item Amount a Streets $ 11,000,000 b Fire Facilities 2,000,000 c Foss Waterway Development Authority 1,500,000 d Tacoma Municipal Building 2,150,000 e Broadway Center for the Performing Arts 1,000,000 f Vehicle Replacements 6,584,000 g ADA Facility Improvements 3,000,000 h Other, General Fund related Capital 972,000 i Downtown Computer Modeling 120,000 l Radios 900,312 Total of Budget Dollar Savings from Bonding Capital Purchases $ 29,226,312 Slide 11 2 Page 1 of 1 9/28/10
Proposed Budget "Budget Dollar" Savings Impact of the 2010 Bond Issues 2010 2012 Budget Dollar Savings From Refundings 1 Convention Center: a 2004 Convention Center and Parking Revenue Bonds $ 1,411,232 b 2004 LTGO & 2006A LTGO 4,628,961 Total for Convention Center 6,040,193 2 Parking Fund: a 2004 Convention Center and Parking Revenue Bonds 2,620,859 b 2007 LTGO & 2009 LTGO 2,823,756 Total for Parking Fund 5,444,615 3 General Fund Revenues: a 1997B LTGO 555,924 b 2001 LTGO Refunding 6,121,444 Total for General Fund 6,677,368 Subtotal of Dollar Savings from Refunding $ 18,162,176 4 Property Tax Revenues: a 2002 UTGO 692,343 Total Dollar Savings from Refundings 18,854,519 Slide 11 3 Page 1 of 1 9/28/10
Protects Reserves Proposed Budget 12 Does Not Use Reserves To Balance The Budget Eliminates Opening Cash ($ 14 million) Uses No Reserves to Balance Proposed Budget Increases Council Emergency Contingency $ 1,500,000 Increase
Proposed Budget Does Not Recommend New Taxes/ Reduces B & O 13 Requires No New Taxes Reduces B & O Tax (By Raising Threshold) Affects 4,900 Businesses Positively Reduces Net Property Tax Modestly ($292,000)
Proposed Budget Impact of Moving the Threshold of the Business & Occupation Tax From $75,000 to $250,000 Number of Businesses impacted 4,900 Estimated Annual Revenue Reduction for the City $ 1,450,000 Estimated Average Reduction per Business per Year $ 295.92 Slide 13 1 Page 1 of 1 9/28/10
Proposed Budget Does Not Recommend New Taxes/Reduces B&O Tax General Fund EMS Excess Total 2010 Levy $48,988,601 $10,117,421 $2,812,256 $61,918,278 2011 Levy 1% 156,494 101,174 0 257,668 Other 899,166 (853,672) (594,677) (549,183) 2011 Levy $50,044,261 $9,364,923 $2,217,579 $61,626,763 Slide 13 2 Page 1 of 1 9/28/10
Proposed Budget 14 Smaller Budget 2007-2008 $403 million 2009-2010 $441 million 2011-2012 $401 million
Budget Comparison (In Thousands) Expenditures by Department 15 2007-08 2009-10 2011-12 Police $124,974 $144,986 $141,642 Fire $84,364 $96,845 $101,117 Public Works $51,700 $58,879 $30,875 Library $23,094 $24,736 $24,536 HRHS $11,215 $13,080 $13,907 CED $11,167 $12,036 $13,500 Non-Dept $66,978 $59,672 $44,236 Other $29,228 $30,559 $31,160 TOTAL $402,720 $440,793 $400,973
Budget Comparison (In Thousands) Expenditures by Department 2007 2008 2009 2010 2011 2012 Adopted Adopted Preliminary Police 124,973,800 144,986,300 141,641,600 Fire 84,363,500 96,845,500 101,117,000 Public Works 51,700,400 58,879,100 30,874,800 Library Operations 23,094,200 24,736,100 24,536,000 Human Rights/Human Services 11,215,400 13,079,800 13,906,800 Community Economic Development 11,166,700 12,035,500 13,500,400 Non Departmental 66,977,500 59,671,900 44,235,800 Other: City Council 1,401,100 1,372,600 1,058,300 City Manager 2,131,000 2,513,300 2,305,600 Finance 5,919,700 6,722,900 8,154,700 Government Relations 539,900 620,700 434,700 Hearing Examiner 732,200 846,400 570,600 Human Resources 2,267,700 3,006,000 3,290,000 Legal 6,791,000 7,307,100 8,744,000 Municipal Court 9,445,900 8,169,900 6,602,400 Total Expenditures 402,720,000 440,793,100 400,972,700 Slide 15 Page 1 of 1 9/28/10
Budget Comparison (In Thousands) Expenditures by Category 16 2007-08 2009-10 2011-12 Labor $289,709 $333,734 $282,772 M&O $126,473 $119,555 $140,024 Capital $4,544 $3,351 $2,763 Assessments -$18,006 -$15,847 -$24,586 TOTAL $402,720 $440,793 $400,973
Comparison of Net Assessments In and Out 09 10 Budget and 11 12 Budget Net Assessments In (Out) Increase (Decrease) in Net Assessment Department 09 10 Budget 11 12 Budget Out Community & Economic Development 373,781 529,207 (155,426) City Manager (1,541,522) (2,219,114) 677,592 Finance (10,746,528) (10,827,513) 80,985 Fire 2,499,338 2,373,472 125,866 Government Relations (637,946) (1,032,203) 394,257 Hearing Examiner 32,605 (302,231) 334,836 Human Resources (6,141,745) (6,227,175) 85,430 HRHS 323,481 (123,269) 446,750 Legal (7,238,668) (6,630,843) (607,825) Legislative (316,295) (819,712) 503,417 Library 605,778 605,778 0 Municipal Court 413,783 526,964 (113,181) Police 3,793,165 3,568,731 224,434 Public Works 3,617,841 (3,072,824) 6,690,665 Non Departmental (884,445) (934,839) 50,394 Total (15,847,377) (24,585,571) 8,738,194 Slide 16 Page 1 of 1 9/28/10
2011-12 Assessment Change Overview 1. From Multi-Tier to Single-Tier 2. Factors are adjusted every biennium to reflect current information o Changes in FTE o Changes in budgets o Updated factors to more accurately distribute costs 3. Outgoing Assessments from the General Fund changed $8.7 million o $6.7 million of the increase in assessments out is due to creation of new Public Works funds Will stay in Public Works; just different funds o $200,000 for Office of Sustainability added to assessments in 11-12 o Some assessing departments costs increased, primarily due to labor, and, accordingly, assessments out increased Slide 16 Page 1 of 1
Budget Comparison (In Thousands) Revenues by Type 17 2007-08 2009-10 2011-12 Property Tax $91,103 $96,768 $101,340 Sales Tax $93,111 $86,790 $83,658 Utility Tax $82,331 $98,469 $94,562 Business Tax $75,912 $81,634 $77,813 Other Revenues $45,263 $63,245 $43,600 Opening Cash $15,000 $13,887 $0 TOTAL $402,720 $440,793 $400,973
Proposed Budget Budget Comparison ($000) Revenues by Type Projected Projected 2011 2012 Assumptions 1 Sales Tax Growth 4.50% 6.00% 2 B&O Tax 2.50% 4.25% 3 GET Power 13.00% 4.75% 4 GET Click! 8.90% 4.60% 5 GET Water 6.00% 6.00% 6 GET Wastewater 2.00% 2.50% 7 GET Solid Waste 2.00% 2.50% 8 GET Rail 13.00% 4.00% 9 Other Taxes 3.50% 3.50% 10 Property Tax 1.75% 2.50% 11 Intergovernmental 4.00% 4.00% 12 Licenses & Permits 5.00% 10.00% 13 Fines & Forfeitures 7.00% 10.00% 14 Charges for services 5.00% 10.00% 15 Interest Income 10.00% 10.00% 16 Other 5.50% 9.50% Slide 17 page 1 of 1 9/28/10
Going Forward 18 Monitor Revenues And Expenditures Monthly Make Quarterly Reports Of Revenues And Expenditures To City Council With Adjustments*, If Needed * Actions based on revenue/expenditure performance and trends at the time
Summary of Proposed 2011-12 Budget Freezes salaries / wages Spends $ 40 Million Less Eliminates 79 Positions Reduces B & O Tax By $ 2.9 Million Increases Council Emergency Contingency By $ 1.5 Million Reduces Property Tax by $ 300,000 Eliminates $ 14 Million Of Opening Cash Preserves Operating Reserves Maintains Services 19
Results 20 Smaller Budget Downsized Organization Lower Taxes Intact Services Increased Contingency No Loss of Reserves
Schedule of Approvals Property Tax Public Hearing October 26, 2010 Public Hearing November 2, 2010 Final Consideration November 23, 2010* Proposed Budget General Government & TPU Public Hearing November 16, 2010 Public Hearing November 23, 2010 Final Consideration November 23, 2010** * Property tax approval is not legally required until November 30 ** Budget approval is not legally required until December 31 21
Proposed Schedule of Council Budget Workshops Tuesday, October 5 9 to 11 A.M. Tuesday, October 12 9 to 11 A.M. Tuesday, October 19 9 to 11 A.M. Tuesday, October 26 9 to 11 A.M. 22 Tuesday, November 2 Thursday, November 4 Tuesday, November 9 Tuesday, November 16 Thursday, November 18 Tuesday, November 23 9 to 11 A.M. 5 to 7 P.M. 9 to 11 A.M. 9 to 11 A.M. 5 to 7 P.M. 9 to 11 A.M.
23 Thank You