1. City of Tucson: Financial Sustainability Plan
IG Forum
Concord, CA
April 27-28, 2006

2. County: Pima; County Seat Population: 540,365 SQ. Miles: 226
City of Tucson Profile
County: Pima; County Seat
Population: 540,365
SQ. Miles: 226
Staff Employed: 5,734 FTE 1
Financial Sustainability

3. Fiscal Year 2006 Adopted Budget $1,008 Million
General Purpose Funds $424
Enterprise Funds $190
Other Restricted Funds $394 2
Financial Sustainability

4. Fiscal Year 2006 General Purpose Funds - Revenues $424.7 Million
Miscellaneous City Revenue 25%
State Shared Revenues 29%
City Primary Property Tax 2%
City Sales Tax 44% 3
Financial Sustainability

5. Shifting from Financial Planning
Financial Sustainability Planning is an innovative way to create policies for budget formulation
Starting point to address the needs and reinvest in services for the community 4
Financial Sustainability

6. Aligning Priorities Citizen Surveys City Strategic Plan/Priorities
Mayor and Council Policies
Other plans and reports 5
Financial Sustainability

7. Listening to the Community
Services Citizens said were essential or very important to the quality of life in Tucson
Public Safety - 95%
Street Maintenance and Repair - 89%
Road Improvements - 84%
Parks - 81%
Recreational Programs - 64% 6
Financial Sustainability

8. Financial Sustainability Planning Model
City Service
Vision
10 - Year
Initiatives &
Costs
Revenue &
Savings
Opportunities
Re-evaluate 7
Financial Sustainability

9. City Services
Vision
Services include Public Safety, Road Maintenance, and Parks and Recreation maintenance and programs.
Identifies specific services that the City will focus on over the next ten years. 8
Financial Sustainability

10. 10 - Year Initiatives & Costs
2.4 Police Officers per thousand residents
4 minute Fire response time
Establish a sustainable road maintenance program
Maintain clean, safe, and accessible parks and facilities
Improve quality and accessibility of youth and family oriented programs
Focus on revenue growth
10 - Year
Initiatives
&
Costs
Quantify future service demands and goals. Identify the financial resources to reach those goals. 9
Financial Sustainability

11. Revenues & Savings Opportunities
Average annual revenue growth of $24 million
No new taxes 10
Financial Sustainability

12. Financial Sustainability Plan
Build 7 new fire stations with 326 fire fighters
Add 560 officers over 10 year period
Reconstruct or treat 55 miles of major roads
Bring 135 sq. miles of residential streets up to “good” condition or better
Provide 350,000 hrs. of maintenance to parks
Financial
Sustainability
Plan 11
Financial Sustainability

13. Use of Revenue Growth
Revenue Growth should be applied to ensure continuous service improvements while still addressing human capital requirements of the City.
A recommended 60% of annual revenue growth should be allocated to services.
40% would be used to support human capital costs, such as salary and benefit adjustments. 12
Financial Sustainability

14. Revenue Allocation Proposal
General Funds in $ Millions FY 2007
Human 40% $ 11
- for pay adjustments, pension and other requirements
Services 60%
-Increased Services $12
-Financing related capital needs 4
Total Revenue Allocation $ 27 13
Financial Sustainability

15. 14
Financial Sustainability

16. Questions? 15
Financial Sustainability