1. Budgeting for Outcomes:
Policy Makers
Working with City Management
to Identify Top Priority Programs
City of El Mirage –
A Small Town Perspective Presented By: Mayor Lana Mook

2. Overview Background Current Budget Challenges
Mayor & Council Budget Philosophy
The Role of the Council in the Budget Process

3. Background Understanding our Past Meeting the Needs of our Present
Planning for our Future

4. Understanding Our Past: Once Upon a Time…
El Mirage incorporated in 1951
Population: approx. 700
Primarily Migrant & Farming Community
Landlocked, adjacent to Luke AFB
Leadership History

5. Meeting the Needs of our Present: El Mirage Today…
Population: 31,911
From 2000 – An increase of 319%
Median Income: $50,411
Median Assessed
Home Value: $67,743

6. Meeting the Needs of our Present: El Mirage Today…
Primary General Fund Revenue Sources
State Shared Revenue: 37%
City Sales Tax: 31%
Primary Property Tax: 11%
City Services:
Police, Fire, Public Transportation, Parks, etc.

7. Planning for our Future: What are El Mirage’s options???
Are we content with where we are today?
What do we want our future
to look like?
What is realistic for our community?

8. Current Budget Challenges: Prior Decisions
Missed Opportunities:
CAP water
Street Lighting Districts
HOA maintained parks
Impact Fees
Community Facilities Districts
Developer provided infrastructure
Initial Property Tax rate

9. Current Budget Challenges: General Fund Revenues
Description
El Mirage
Comparable Cities
Difference
Average Sales Tax per capita
$176
$336
-$160
Average Property Tax per capita
$50
$51
-$1
Average General Fund Revenue per capita
$496
$703
-$207
Revenue needed to be average
$6,961,576
$ 15,335,195 Current FY 11 projection for the General Fund.
$16,670,131 Budgeted for FY 10 in the General Fund.

10. Current Budget Challenges: No Taxing Districts to Support Services
In addition to limited sales tax revenues the City has no special districts
Street lights are paid for by the City
Neighborhood parks are paid for by the City
Fire personnel are paid for by the City
What you see is what you get!

11. Current Budget Challenges: Legislation
Changes to rental property licensing and billing
Changes to the tax code
Restricting rental property taxation
Limiting construction sales tax
Increasing deductions from sales tax
ex. Development Fees
Reductions in shared revenues
HURF Reductions
LTAF Eliminated
Reducing the Income tax rates
Changes to property tax
Reductions in the business tax assessment ratio.

12. Budget Philosophy: It’s Simple…but not Easy!
The process of balancing a budget is simple:
revenues need to equal expenses.
If expenses exceed revenues then revenues need to be raised and/or expenses cut.
But not easy:
Increasing taxes and fees to residents
and/or cutting services or amenities
is a process that is:
Difficult & Emotional
Controversial & Politically Unpopular

13. Budget Philosophy
When providing input on budget decisions, policy makers need to answer three key questions:
Are we providing city services in the most efficient, cost-effective manner possible?
What is our customer (resident or business partner) willing to pay for city services?
Is this amount competitive with comparable cities/towns so we continue to attract growth or at a minimum, we do not deter growth?

14. Budget Roles: Budgeting for Outcomes in El Mirage
City Council
Vision
The budget for the City of El Mirage is based on the Council’s goals and vision for
the future of El Mirage.
City
Manager
The City Manager is responsible for translating the Council’s vision into action with the objective of bringing the Council’s vision to fruition.
City Departments
Each Department analyzes resources to meet ongoing needs.
Each Department prioritizes resources to meet needs and accomplish Council’s goals.

15. Budget Roles: Budgeting for Outcomes in El Mirage
City of
El Mirage
Mayor & Council
City Manager
City Departments & Employees
Residents

16. Recap: Budgeting for Outcomes Yes, we are almost done…
The Role of Mayor & Council
We start early!
We regularly meet and talk with constituents and local businesses and we…listen!
We share this information with our City Manager
We collaborate with each other and our City Manager during workshops and training sessions
We focus on Needs versus Wants
We agree to promote items based on consensus
We work with City Staff to review capital projects annually to ensure items listed are still priorities

17. Closing: Successfully Budgeting for Outcomes
We Budgeted for Outcomes…
What does the future hold for El Mirage?
Opportunities for economic development
Opportunities to improve services & amenities
Opportunities to attract more residents