City of Peachtree Corners Preliminary Expenditure Review May 22,

Workshop Goals Receive feedback and direction from Mayor and City Council as we begin to develop the FY13 Budget Develop a consensus on short-term priorities and first year needs Discuss and develop an understanding of FY13 planning assumptions 2

Agenda for Workshop Discussion of Budget Principles and Goals Discussion of Establishing an Undesignated Fund Balance Reserve Discussion of Planning Assumptions Review of Draft Expenditures 3

Budget Principles Conservatively determine revenue and expenses Solid estimating effectively neutralizes pressures to inflate revenue estimates to cope with budgeting pressures Do not use one-time revenue sources for ongoing expenses When a non-recurring source of revenue is used to fund an ongoing expense, an "automatic unfunded increase" is built into the budget for the following year Recognize that there are numerous Unknowns when starting a new City 4

Draft Budget Goals Determine level of services Provide funding for Start-up Costs Facility and Support Equipment Call Taking Capability Provide funding for Must Do’s Insurance Finance and Accounting Legal Services Comprehensive Plan Provide Funding for Unforeseen Start-up Expenditures Establish a Fund Balance Reserve (Emergency Fund) 5

Level of Services Determine what level of services to provide at start-up What do we need to provide? What do our customers expect? 6

Suggested Must Do’s Key Staff Legal Services Facility and Maintenance Furniture Equipment (Computers, servers, copiers, scanners) Support Services Telephone, Internet, IT General Liability Insurance Accounting Audit Report Call Center Comprehensive Plan 7

Contingency Budget Provides funding for unforeseen operating expenditures that will occur when starting a new City 8

Fund Balance Reserve Adopted as part of the approved Budgetary Policy Fund Balance is the cash reserve and working capital to cover the following: Expenditures caused by unforeseen emergencies Shortfalls caused by revenue decline Eliminate short-term borrowing for cash flow purposes Best practices call for Reserve no less than three (3) months of operating expenditures (25%) 9

(Draft) Expenditure Planning Assumptions City will hire key staff including: City Manager City Clerk Accounting Manager Planning and Zoning Manager Administrative Assistant City will provide Legal Services City will provide Citizen response services via telephone and internet City will provide funding for unforeseen expenses and emergencies (Contingency and Fund Balance Reserve) City will lease office space with necessary equipment and systems to conduct business City will engage a planning firm to assist with preparing a Comprehensive Plan 10

(Draft) Expenditure Planning Assumptions - Continued City will prepare Comprehensive Annual Financial Report and provide funding for Audit Services City will provide funding for the development of a Communications Plan and on-going activities necessary to effectively communicate with Neighbors and Businesses City will provide funding for General Liability Insurance 11

Draft Expenditures for FY2013 General Fund Department 2013 Projected Expenditures City Council83,111 City Manager159,829 General Operations962,500 Finance188,677 Legal Services225,000 Facility Management158,000 City Clerk110,892 Contingency350,000 Community Development131,218 Designated Reserve500,000 Total General Fund:$2,869,225

Discussion 13