1. FY 09-10 Proposed GENERAL FUND Operating Budget
City of Goodyear
City Council Work Session
May 4, 2009 1

2. Agenda FY 09/10 General Fund Revenue & Expenditures
City Budget Balancing Strategies
Reductions in Spending
Revenue Creation
Reserve Usage
Topics in Your Packets
Public Meeting Input
Work Session Follow-ups
City Council Policy Items 2

3. FY 09/10 Revenues & Expenditures Projected General Fund Budget Shortfall
Budgeted Revenues General Fund $56,033,483
Add transfers IN from enterprise funds $ 4,217,860
Total Sources General Fund $60,251,343
Budgeted Expenditures General Fund $69,553,306
Add transfers OUT to HURF/stadium funds $ 3,567,863
Total Uses General Fund $73,121,169
Projected Shortfall ($12,869,826)
Added Expenditures Next year $ 1,065,000
Total to Balance General Fund Budget ($13,934,826) 3

4. FY 09/10 General Fund Budget Strategies
3-STEP APPROACH TO A BALANCED BUDGET
Step 1 – Reduced expenditures $5.9 million
Step 2 – Proposed new revenues - $4.0 million
Step 3 – Proposed use of reserves - $4.0 million
Total needed to balance = $13.9 million 4 4

5. FY 09/10 General Fund Budget Strategies
Step 1 – REDUCE EXPENDITURES
Total Value of Budget Reductions in 09/10
FY 09/10 -July $ 5.9 million - identified reductions
($2.1 worth of staff reductions completed already)
FY 08/09 - Dec 08 - $ 3.0* million - already realized
FY 07/08 - Mar $ 3.6* million - already realized
$12.5 million total expenditure reductions in 09/10
* 07/08 and 08/09 reductions included 28.5 frozen positions –
14% public safety - 1 sworn police and 3 sworn fire 5 5

6. FY 09/10 General Fund Budget Strategies
Step 1 - REDUCE EXPENDITURES
34.5 FTE Total Positions
Reduce Personnel/Development & Workload Related (26.5 Total)
22.5 General Fund FTE
4.0 Other Funds
Voluntary Separation (6.0 Total)
Positions frozen FY 09/10
Frozen Vacancy (2.0 Total)
Planner position in Community Development
Strategic Planning Position in City Manager’s Office 6 6

7. FY 09/10 General Fund Strategies
Total Staff Reductions Taken Since Early 08/09
Total 08/ Current Levels # Diff %Diff
ALL FUNDS %
Total General Fund %
General Government %
Public Safety * %
Non-General Fund %
* 4 of 17 are sworn
NOTE: Includes all frozen positions, voluntary separations and layoffs;
does not include hour/wk temp positions eliminated 7 7

8. Employees Per 1,000 Population

9. FY 09/10 General Fund Strategies
Step 1 - REDUCE EXPENDITURES
Goal - Preserve Public Safety and Core Services
Breakdown of 09/10 Reductions of $5.9M
Value Value of
of FTE Product/Service
Total $ Reductions Reductions
Total General Fund $5.9m $2.1m $3.8m
General Government $4.2m $1.5 m $2.7m
Public Safety $1.7m $0.6 m $1.1m
NOTE: Non-General Fund reductions = $3.5 million 9 9

10. FY 09/10 General Fund Budget Strategies
Step 2 – Create New Revenues – Via Sales Tax
Potential Sales Tax Revenue Scenarios
All Types/
All Types/ No Restaurants/
Sales Tax Increase All Types No Restaurants No Contracting
.25% $3.8m $3.6m $2.2m
.5% $7.7m $7.2m $4.3 m recommended 10 10

11. FY 09/10 General Fund Budget Strategies
Step 2 – Create New Revenues – With Other Taxes/Fees
Annualized
Use Tax $250 k
Residential Rental Unit - 1 or more $100 k
Business License Fee $105 k
Remove Two-Tier Tax Rate $175 k
User Fees (Study Complete 06/09) $ 50 k
Economic Development Reimbursement $ 55 k
Total recommended $735 k
Increase General Sales Tax Rate by .25% $2.2 m
recommended by .50% $4.3 m
TOTAL $5.0 m annual/
$4.0 m* collected 09/10
* Includes 9-month of sales tax collected 11

12. FY 09/10 General Fund Strategies Step 3 - Use of Reserves - $4 M recommended (Assumes recommended $4 M revenues approved)
Assumes .5 sales tax increase
Use of $4 M of Reserves to Balance 12

13. FY 09/10 General Fund Budget Strategies
On-Going Considerations to Keep Reserves As High as Possible
Joint agreements with other jurisdictions
Fire services with other cities
Fire services to County islands for revenue
Shooting Range/Regional Use
Outsourcing City Programs and Services 13

14. FY 09/10 General Fund Budget Strategies Step 3 - Comparison of Reserves based on Revenues
FY 09/10 Budget Shortfall
Revenue Type
Add’l Revenue
(9-mo collected)*
Use of
Reserves
Add’l
Spending
Cuts
Scenario 1
$8 M
.5% Gen Tax Increase
All Other Sources
$4 M*
a. $4.0 M
$0 M
Scenario 2
.25% Gen Tax Increase
$2.3 M*
a.$5.7 M
b.$4.0 M
$1.7 M
Scenario 3
No Gen Tax Increase
$0.7 M
a. $7.3 M
b. $4.0 M
$3.3 M
Scenario 4
No mall**
$9.3 M
a. $8.6 M
$4.6 M 14
* Includes 9 months sales tax
** FY 09/10 Revenue for Regional Mall estimated at $1.3 M

15. FY 09/10 General Fund Budget Strategies
Cumulative Break Down of Deeper Spending Cuts
To Close Remaining $8 M Gap after Initial Cuts
Gen Public
Individ Govt Safety FTE Service Internal $ Value FT E # FTE # Values Cuts Reductions
Scenario 2 –
.25% sales tax inc
$1.7 M cuts $1.7M * $1.2M $0 $0.5M
Scenario 3 –
no sales tax inc
$3.3 M cuts $1.6M ** $1.3M *** $0.1M $0.2M
CUME $3.3M $ 2.5M $0.1M $ .7M
Scenario 4 –
no mall
$4.6 M cuts $1.3M $ $1.3M
CUME $4.6M $2.5 M $0.1M $2.0M
* 7 firefighters ** 3 firefighters
***$.6 million saved in General Fund with use of COPS grant to pay for 8 existing officers in lieu of new street crimes unit 15

16. FY 09/10 General Fund Budget Strategies
Impact of $3.3M in further cuts (Scenario 2 & 3)
Public Safety -
Hurts ability to do proactive fire prevention
Cuts down on inspection capabilities taken over by sworn due to inspector layoffs
Hurts outreach and education programs in schools, etc.
Eliminates the new street crimes unit
Service cuts
Closes Loma Linda Pool
General government cutbacks cut across all general program areas and will affect ability to maintain current service levels citywide. 16 16

17. Input to Consider - 4/22 Public Meeting (Included in Packets)
Taxes – 11 comments
Can they be temporary?
Why not property tax rate increase?
Not in favor of taxes in general
Understand taxes needed due to economy
Rainy Day Fund – 3 comments
What is payback plan?
Budget Reductions comments
Why not furloughs or salary cuts for staff/Council?
If no new revenues, what services would be cut?
Stop take-home city cars
(CONT’D) 17 17

18. Input to Consider - 4/22 Public Meeting – (Cont
Input to Consider - 4/22 Public Meeting – (Cont.) (Included in Packets)
Art - 7
Art is good for the community
Can we delay art projects?
Can we keep but maybe reduce the amount for art?
Bonds – 5
Will bond debt affect general fund?
Are we bonding for water/sewer?
Miscellaneous - 10
How attracting Economic Development?
Questions on lawsuits, past spending
How using stimulus funding? 18

19. Follow-up from 4/16 Work Session (Included in Packets)
IGA with Litchfield Elementary School District for Turney Park
Chargebacks to CIP
Need for added legal fees
Affect of across-the-board pay cuts and impact on pensions
Healthcare plan changes
Liability issues on unguarded skate park
Special event permit ordinance fees
Payback plan for reserves
Use tax effect on business
Analysis of Public Safety budget and justification for funding
O & M on City Center
Vista program details 19

20. Use Tax – Impact on Recruitment of Business
City Council Follow-up Items
Use Tax – Impact on Recruitment of Business
Use Tax can help stabilize tax revenue without endangering City’s competitiveness to attract and retain business
For capital intensive industries, a two-tiered system is recommended to ensure competitiveness
Tier One: 2.5% tax on single item purchases up to $500k
Tier Two: 0% tax on the portion over $500k

21. Public Safety Budget Analysis
City Council Follow-up Items
Public Safety Budget Analysis
Response Times Feb 07 Levels* Current Levels
Police – Priority % = 11 min or less 4:06 min avg
Priority % = 15 min or less :46 min avg
Priority % = 29 min or less :44 min avg
Priority % = 36 min or less 11:40 min avg
Patrol Available Time % %
(PSCAC goal – 30%)
Fire Response Time :35 min avg 5:26 min avg
* 2005/06 Levels reported in Feb 07 Public Safety Committee Final Report as acceptable
to maintain as we grow

22. City Council Follow-up Items
City Center – O & M
Local Economic Stimulus Project ($67 M)
110,000 SF City Hall
30,000 SF Library
Annual total debt service ($4.4 M) to be paid from secondary property tax
September 09 will show whether assessed valuation is high enough to support City Center project
Estimated annual Operating Cost including utilities ($978 K)
Current annual lease payments for Venida and Financial Center ($1.2 M) should cover operating costs
Rental opportunities of 3rd floor could also offset O & M costs or provide additional revenues

23. City Council Follow-up Items
Volunteers in Service to America (VISTA) Program
American Recovery Act - annual value of $325k for 3 years
9 team members to support Neighborhood Stabilization Program
Common area beautification, graffiti removal, green pools
Work with Junior Achievement
9 team members to support Public Safety Leadership Initiative
Expand and enhance block watch
Expand school based crime prevention programs
Enhance existing public safety Volunteer Program,
Establish Citizen Corps Council (501 c3) for the purposes of fundraising, aid in recruitment and training

24. Policy Items Critical to Budget Process
Budgeted expenses to be reconsidered
1% for art -$561k
Community non-profit funding-$181k
Non-budgeted increases in spending
1% for environment
Joint projects with neighboring jurisdictions (ex. Town of Maricopa)
Maintenance of County ballfields
Public Safety – staffing considerations
Employee compensations
Across-the-board pay cuts
Furloughs
Market Survey
Allowable Service Modifications
Unguarded skate park
Bulk trash changes
Loma Linda Pool
Charging for events
Tax and fee increases to be considered
Use of reserves 24

25. Policy Items Critical to Budget Process
Tax Increases to be considered
Increase in sales tax
Exclude or include restaurants and contracting
.5% increase = $4.3 m
.25% increase = $2.2 m
Increase in other taxes/fees = $735m
Use tax $250k
Residential Rental Tax $100k
Business License Fee $105k
Remove Two-Tier Tax Rate $175k
User Fees (study complete in 6/09) $ 50k
Economic Development Reimbursement $ 55k 25

26. FY 09/10 General Fund Budget Strategies
Privilege Tax Restaurant Contract.
Goodyear - current rate 2.00%* 4.00% 3.50%
Potential Rate 2.25% % %
Recommended Rate
Current Rate – West Valley cities
Avondale %* % %
Buckeye
Glendale
Litchfield Park
Peoria
Surprise
Tolleson 2.50*
Current Rate – East Valley cities
Chandler 1.50% %
Gilbert
Mesa
Phoenix
Tempe
Scottsdale
* Two-tier tax - rate goes down on portion of item $5,000 or higher 26

27. FY 09/10 General Fund Budget Strategies
Use Tax
Goodyear - current rate NO
Recommended Tier One 2.5% on single item under $500k
Recommended Tier Two on portion over $500k
Current Rate – West Valley cities
Avondale %
Buckeye NO
Glendale 2.20
Litchfield Park
Peoria
Surprise NO
Tolleson NO
Current Rate – East Valley cities
Chandler 1.5%
Gilbert NO
Mesa 1.75
Phoenix
Tempe 1.8
Scottsdale 27

28. FY 09/10 General Fund Budget Strategies
I Rental Tax Rental tax rental tax
Goodyear - current rate No No Yes
Recommended Rate Yes Yes Yes
Current Rate – West Valley cities
Avondale Yes Yes Yes
Buckeye Yes Yes Yes
Glendale Yes Yes Yes
Litchfield Park NO NO Yes
Peoria Yes Yes Yes
Surprise NO NO Yes
Tolleson NO NO Yes
Current Rate – East Valley cities
Chandler Yes Yes Yes
Gilbert NO NO Yes
Mesa NO NO Yes
Phoenix NO NO Yes
Tempe Yes Yes Yes
Scottsdale NO NO Yes 28

29. FY 09/10 General Fund Budget Strategies
Business License Fee
Goodyear - current rate NO
Recommended $50
Current Rate – West Valley cities
Avondale $65
Buckeye $25/$100
Glendale $50
Litchfield Park $45
Peoria $75
Surprise $25/$100
Tolleson $60
Current Rate – East Valley cities
Chandler $50
Gilbert $36
Mesa $30
Phoenix $50
Tempe $50
Scottsdale $50 29

30. Where do we go from here? City Council Work Session 5/11/09
Tentative Budget Adoption 6/4/09
Final Budget Adoption/ Public Hearing 6/22/09
Property Tax Levy Adoption 7/13/09

31. QUESTIONS?
April 2009 31