Tentative FY 2014 Budget Adoption July 9, 2013 City Council Chamber 826 North Main Street Cottonwood, Arizona 86326

Key Issues Slow Recovery – Small increases – Continued high demand for additional services Taxes – 3% Sales Tax – No Property Tax State Shared Revenues – State is holding HURF Hostage – LTAF has not returned Staffing & Compensation Recreation Center – Working toward improved recovery rate Capital Infrastructure Water & Wastewater Issues

2014 Budget Summary - Personnel Personnel – Seven New Staff Requests – None approved – One reclassification - $6,000 Wages – COLA – 1.7% – Merit – Budgeted – Longevity – Currently budgeted Health Insurance – Premiums +6.5% – City continues it dependent coverage program Retirement – ASRS – Non Public Safety11.14% % – PSPRS – Fire14.63% % – PSPRS – Police24.90% %

Revenues for All Funds These revenues include Other Funding Sources, included but not limited to: -Bond Proceeds, -Lease Purchase Proceeds, -Fund Balances, and -Inter & Intra Governmental Transfers There is a 17.6% increase in overall revenues. This includes operational as well as non-operational revenues.

Expenditures for All Funds There is a 30.7% increase in overall expenditures, from $54,231,275 to 70,875,845. This includes maintenance and operational expenditures as well as capital equipment and projects expenditure. There is $20.2M in capital equipment and projects planned for FY some of these projects were originally programmed for FY 2013 and were rolled over into FY 2014.

Capital Equipment & Projects

Funding Outside Agencies OrganizationFY 2013FY 2014 Old Town Association$13,000$15,000 Senior Center$45,000$55,000 Veterans Van$2,500$0 Adopt for Life – Animal Shelter$50,000$42,400 Catholic Charities$10,000 - $15,000 Chamber of CommerceEstimate $108,000Proposed $110,000 New Requests Old Town Center for Arts$0$20,000 Boys & Girls Club$10,000$25,000

General Fund Reserve Funds Status 60 Days Coverage$2,268,830 Capital Accumulation Fund$1,000,000 Undesignated Reserves $53,800 1% Sales Tax GF Capital $214, % Sales Tax PS Capital Fund $0 Longevity Plan $45,000 Total General fund Reserves$3,582,380

Future Budget Meetings Final Budget Hearings and Adoption is on August 13 th at 6:00 p.m. at the Council Chambers We will post to the website and Facebook Post the budget on-line prior to that meeting.