1. City of Las Cruces Proposed Fiscal Year 2011 Budget Council Meeting May 17, 2010

2. 2 Changes to Proposed FY11 Budget Debt service & Capital Project funds added for HUD loan to refurbish MoS&N new location Philippou settlement fund to track projects Capital project fund added for downtown north section project General fund modified to reflect $1M loan repayment for downtown north section project Health care costs revisited at mid-year Carefully monitor local economic conditions & State finances regarding revenue implications

3. 3 FY10 & FY11 General Fund Summary $1 Million Loan Projected Modified FY10 FY11 Beginning $16.7 $12.9 Revenues $75.5 $80.0 Expenditures $79.2 $79.0 Ending Balance $12.9 $14.0 Req. 1/12 Reserve $6.6 $6.6 Un-Reserved Bal. $6.3 $7.4 Loan Impact Repayment FY11 Plus $1M Loan in FY10 Plus $1M

4. 4 FY10 & FY11 General Fund Summary Ending Balance With $1 Million Loan Projected Modified FY10 FY11 Beginning $16.7 $12.9 Revenues $75.5 $80.0 Expenditures $79.2 $79.0 Ending Balance $12.9 was $13.9 $14.0 no change Req. 1/12 Reserve $6.6 $6.6 Un-Reserved Bal. $6.3 $7.4

5. 5 FY10 & FY11 General Fund Summary Structural Balance With $1 Million Loan Projected Modified FY10 FY11 Beginning $16.7 $12.9 Revenues $75.5 $80.0 was $79.0 Expenditures $79.2 $79.0 no change Ending Balance $12.9 $14.0 Req. 1/12 Reserve $6.6 $6.6 Un-Reserved Bal. $6.3 $7.4

6. 6 General Fund Revenue Fiscal Year 2010/2011 Modified Budget Dollars Millions Projected Modified Total Change $4.5 or 6.0% IT to GF ($2.1) Aquatic Fees ($0.5) Loan Payback ($1.0) Economic Change $0.9 or 1.2%

7. 7 General Fund Revenue Forecast Percent Change Includes administrative changes plus economic growth in FY11

8. 8 General Fund Revenue Forecast Percent Change Economic Growth in FY11

9. 9 End Of Presentation Comments/Questions

10. 10 CITY MANAGER’S RECOMMENDED FISCAL YEAR 2010-2011 BUDGET Summary of Major Provisions Continues fiscally conservative budgetary practices in the face of a slowly recovering economy. The budget ingrains sustainability as a business practice, maintains public safety and levels of city services by continuing to provide flexibility to department managers in meeting budget targets while avoiding any layoffs/furloughs of city workers. The budget also lays the ground work for the City’s new strategic plan. Specifically the City Manager’s budget:  Taxes – Does not recommend any tax increases  Personnel - o Provides for Aquatic Center staffing needs: o Creates an operational budget for the Sustainability Officer. o Shifts positions within Public Services to enhance public Transit o Assumes no increase in employee health care costs. o Reinstitutes merit raises for unrepresented employees o Funds step increase for union members o Envisions no layoffs or mandatory curtailed hours o Continues the review process for filling vacant existing positions o Starts both the Police and Fire academies. Preserves general fund reserves

11. 11  Presents a structurally balanced General Fund budget  Maintains city funding for grants to non-profits for health related activities  Maintains city support for Downtown Las Cruces and the Arts Council  Capital Spending o Vehicle acquisitions fund for emergency needs and debt service o Continues regular program to replace Fire equipment o Maintains Capital Improvement Reserves for unplanned repairs o Bond Cycling for Street projects o Initiates comprehensive review of financing/refinancing options o Continues work on the new location for the Museum of Nature & Science  Funds City’s self insurance programs to actuarial recommended levels  Projects o Funds New City Hall & Aquatic Center Operations o Convention Center construction completed o Continues Downtown/Main Street North section construction o Planning/Engineering work completed on South section of Downtown  Organizational Changes & Planning o Information Technology department brought into the general fund. o Institutionalizes City’s new strategic plan & completes City/County vision 2040 plan o Participate in post Census Complete Count efforts & funds redistricting

12. 12 Presentation Components Economic Overview Operational Budget Recommendations FY11 Budget by Strategic Area ICIP Summary for FY11

13. 13 Economic Overview Local economy adversely impacted Assumption for FY11 is for a slow recovery Job growth will turn positive Income growth will show improvement Inflation remains low Construction benefits from public projects

14. 14 Employment Growth Las Cruces MSA Percent Change Non- Ag Wage & Salary

15. 15 Permitted Valuation Dollars Millions

16. 16 Single Family Permits

17. 17 Public Construction Activity Dollars Millions $9.3 $30.5 $46.3 $93.4 $87.5

18. 18 Operational Budget Recommendations No recommended tax increases Provides for Aquatic Center staffing & operations Adds staff & equipment for flood control dam maintenance Shifts resources to Public Transit Merit raises for unrepresented employees Funds step increases for union members No layoffs/furloughs anticipated Structurally balanced general fund Preserves general fund balances Relies on Department Managers for achieving required savings

19. 19

20. 20 All Expenditures by Fund Type Proposed Fiscal Year 2010-2011 Total = $318.2 million

21. 21 FY11 Expenditure Change by Fund Type Total Change ($47.7) million General $2.6Aquatic C. & IT Special Revenue$1.9 Prisoner Care,MoNaS Debt Service$0.6Parking Deck Capital Proj.($42.1)CH,AC,CC, MoNaS Utilities($9.6)Reclamation Enterprise$1.5Trans. Stimulus Internal Serv.($3.7)IT Fiduciary$1.0HIDTA Grant

22. 22

23. 23 Total GRT Revenue Forecast

24. 24 Gross Receipts Tax Distribution Fiscal Year 2010/2011 Total Estimate = $71.8 million

25. 25 Major General Fund Revenue Sources Fiscal Year 2010/2011 Total Estimate = $80.0 million

26. 26 General Fund Revenue Fiscal Year 2010/2011 Proposed Budget Dollars Millions

27. 27 General Fund Expenditures by Department Fiscal Year 2010/2011 = $79.0 million

28. 28

29. 29

30. 30 General Fund Expenditures Fiscal Year 2010/2011Proposed Budget 58,045,369 64,807,949 68,325,631 77,540,061 79,616,706 77,871,567 79,005,267

31. 31 Budgeted City Full Time Employees

32. 32 FY11 Department Highlights Administration – ACM convene working groups from various departments to coordinate service delivery Community Development – Provide operational budget for sustainability officer Facilities – Provides staff for full operations of Aquatic Center Finance – Comprehensive review of financing options for Council identified ICIP projects FIRE – Provides funding to start a new academy

33. 33 FY11 Department Highlights continued Human Resources – Initiates management certification program with NMSU IT – Budget brought into the GF Legal – Provides funds for redistricting Police – Provides funding to start a new academy Public Services – Innovative shift of resources to enhance Transit services & open Convention Center Public Works – Positions & equipment for flood control dam upkeep plus street project bond cycling Utilities – Status quo budget until rate review process complete

34. 34

35. 35 Total ICIP = $61 million

36. 36 Budgeted Full Time Employees City and Fiscal Agencies