1. City of Flagstaff Budget Overview December 11, 2013

2. 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

3. 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.

4. Community needs Community resources

5. 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

6. 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

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

8. 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

9. Budget Process Flowchart

10. FY2014 Total Appropriations $243,472,806

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

12. 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

13. General Fund Revenue Resources:

14. 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%

15. 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

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

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

18. 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

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

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

21. Projected/Potential Revenue Increases for FY 2015

22. Fixed Cost Forecasts Compensation/Benefits

23. Fixed Cost Forecasts Other Areas

24. Summary Revenue/Fixed Costs

25. Council Retreat Priorities for Budget Compensation Infrastructure Staffing

26. Contact Information Barbara Goodrich, Management Services Director bgoodric@flagstaffaz.gov 213-2205 bgoodric@flagstaffaz.gov Rick Tadder, Finance Director rtadder@flagstaffaz.gov 213-2215 rtadder@flagstaffaz.gov Brandi Suda, Finance Manager bsuda@flagstaffaz.gov 213-2217 bsuda@flagstaffaz.gov

27. Thank you! Questions?