City of Flagstaff Budget Overview December 11, 2013

City Budget Team Kevin Burke, City Manager Jerene Watson, Deputy City Manager Josh Copley, Deputy City Manager Barbara Goodrich, Management Serv. Dir. Shannon Anderson, Human Res. Dir. Ladd Vagen, IT Director Rick Tadder, Finance Director Brandi Suda, Finance Manager EAC Committee Member

The Budget The budget is not simply an exercise in balancing revenues and expenditures one year at time, but is strategic in nature, encompassing a multi-year financial and operating plan that allocates resources on the basis of identified goals.

Community needs Community resources

Council Goals Repair, replace and maintain infrastructure (streets & utilities) Fund existing, and consider expanded, recreational services Address Core Services Maintenance Facility Complete Rio de Flag Retain, expand, and diversify economic base

Council Goals Complete the Water Policy Review financial viability of pensions Review all Commissions Zoning Code check in and analysis of the process and implementation Develop an ongoing budget process

Other Directions Mission and Vision Statements Strategic Documents Regional Plans Master Plans Council Resolutions Council Retreats Management Priorities

Financial Policies Maintain adequate fund balances Ensure all revenue projections are achievable Ongoing program costs should not exceed routine revenues (structural balance) Assess the long range impact on operations of capital improvements Leverage grants against City funds - not relying on unstable or fluctuating grants for ongoing operations Use 5 year planning document for all funds

Budget Process Flowchart

FY2014 Total Appropriations $243,472,806

Fund Overview General Fund Special Revenue Funds Debt Service Funds Perpetual Care Fund Capital Project Funds Enterprise Funds

General Fund Accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government that are not accounted for in other funds Public safety, municipal court, public works, community development, parks, recreation, administration, support services

General Fund Revenue Resources:

Special Revenue Funds These funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by statute, charter provision, or ordinance to finance a particular function or activity. All funds must balance to their revenues Policy fund balance is 10%

Special Revenue Funds Library Highway User Transportation BBB Funds Beautification-20%, Economic Development-9.5%, Tourism-30%, Arts and Science-7.5%, Recreation BBB- 33% Housing and Community Services Flagstaff Metropolitan Planning Org (FMPO) FUTS EDA Revolving Loan

Debt Service Funds Accumulates funds to pay debt service for general obligation bonds and special assessment bonds

Perpetual Care Fund Accumulates funds for cemetery maintenance Only interest earnings can be spent

Capital Project Funds Municipal Facilities Corp USGS, Incubator, NACET Capital Projects Street/Utility Bonds Watershed Protection Bonds Core Services Facility Court Facility Special Improvement Districts

Enterprise Funds Self supporting through user fees Water and Wastewater Airport Environmental Services SEMS Stormwater Flagstaff Housing Authority

Council Retreat Items Revenue Forecasts It’s still early, conservative estimating Fixed Cost Increases Outpacing Revenue Increases Council Priorities for Budget

Projected/Potential Revenue Increases for FY 2015

Fixed Cost Forecasts Compensation/Benefits

Fixed Cost Forecasts Other Areas

Summary Revenue/Fixed Costs

Council Retreat Priorities for Budget Compensation Infrastructure Staffing

Contact Information Barbara Goodrich, Management Services Director Rick Tadder, Finance Director Brandi Suda, Finance Manager

Thank you! Questions?