Budgeting for Outcomes: Policy Makers Working with City Management to Identify Top Priority Programs City of El Mirage – A Small Town Perspective Presented By: Mayor Lana Mook

Overview Background Current Budget Challenges Mayor & Council Budget Philosophy The Role of the Council in the Budget Process

Background Understanding our Past Meeting the Needs of our Present Planning for our Future

Understanding Our Past: Once Upon a Time… El Mirage incorporated in 1951 Population: approx. 700 Primarily Migrant & Farming Community Landlocked, adjacent to Luke AFB Leadership History

Meeting the Needs of our Present: El Mirage Today… Population: 31,911 From 2000 – 2010 An increase of 319% Median Income: $50,411 Median Assessed Home Value: $67,743

Meeting the Needs of our Present: El Mirage Today… Primary General Fund Revenue Sources State Shared Revenue: 37% City Sales Tax: 31% Primary Property Tax: 11% City Services: Police, Fire, Public Transportation, Parks, etc.

Planning for our Future: What are El Mirage’s options??? Are we content with where we are today? What do we want our future to look like? What is realistic for our community?

Current Budget Challenges: Prior Decisions Missed Opportunities: CAP water Street Lighting Districts HOA maintained parks Impact Fees Community Facilities Districts Developer provided infrastructure Initial Property Tax rate

Current Budget Challenges: General Fund Revenues Description El Mirage Comparable Cities Difference Average Sales Tax per capita $176 $336 -$160 Average Property Tax per capita $50 $51 -$1 Average General Fund Revenue per capita $496 $703 -$207 Revenue needed to be average $6,961,576 $ 15,335,195 Current FY 11 projection for the General Fund. $16,670,131 Budgeted for FY 10 in the General Fund.

Current Budget Challenges: No Taxing Districts to Support Services In addition to limited sales tax revenues the City has no special districts Street lights are paid for by the City Neighborhood parks are paid for by the City Fire personnel are paid for by the City What you see is what you get!

Current Budget Challenges: Legislation Changes to rental property licensing and billing Changes to the tax code Restricting rental property taxation Limiting construction sales tax Increasing deductions from sales tax ex. Development Fees Reductions in shared revenues HURF Reductions LTAF Eliminated Reducing the Income tax rates Changes to property tax Reductions in the business tax assessment ratio.

Budget Philosophy: It’s Simple…but not Easy! The process of balancing a budget is simple: revenues need to equal expenses. If expenses exceed revenues then revenues need to be raised and/or expenses cut. But not easy: Increasing taxes and fees to residents and/or cutting services or amenities is a process that is: Difficult & Emotional Controversial & Politically Unpopular

Budget Philosophy When providing input on budget decisions, policy makers need to answer three key questions: Are we providing city services in the most efficient, cost-effective manner possible? What is our customer (resident or business partner) willing to pay for city services? Is this amount competitive with comparable cities/towns so we continue to attract growth or at a minimum, we do not deter growth?

Budget Roles: Budgeting for Outcomes in El Mirage City Council Vision The budget for the City of El Mirage is based on the Council’s goals and vision for the future of El Mirage. City Manager The City Manager is responsible for translating the Council’s vision into action with the objective of bringing the Council’s vision to fruition. City Departments Each Department analyzes resources to meet ongoing needs. Each Department prioritizes resources to meet needs and accomplish Council’s goals.

Budget Roles: Budgeting for Outcomes in El Mirage City of El Mirage Mayor & Council City Manager City Departments & Employees Residents

Recap: Budgeting for Outcomes Yes, we are almost done… The Role of Mayor & Council We start early! We regularly meet and talk with constituents and local businesses and we…listen! We share this information with our City Manager We collaborate with each other and our City Manager during workshops and training sessions We focus on Needs versus Wants We agree to promote items based on consensus We work with City Staff to review capital projects annually to ensure items listed are still priorities

Closing: Successfully Budgeting for Outcomes We Budgeted for Outcomes… What does the future hold for El Mirage? Opportunities for economic development Opportunities to improve services & amenities Opportunities to attract more residents