The URL can be used to link to this page

Home My WebLink AboutCC - Agendas - City Council - WORKSHOP - 5/15/2014CITYoF PR-- ESCOTT PRESCOTT CITY COUNCIL BUDGET WORKSHOP MEETING Thursday, May 15, 2014 9:00 AM AGENDA Prescott Public Library, Founders Room 215 E. Goodwin Prescott, Arizona 86303 (928) 777-1100 The following Agenda will be considered by the Prescott City Council at its Budget Workshop Meeting pursuant to the Prescott City Charter, Article II, Section 13. Notice of this meeting is given pursuant to Arizona Revised Statutes, Section 38-431.02. One or more members of the Council may be attending this meeting through the use of a technological device. C C CALL TO ORDER PLEDGE OF ALLEGIANCE ♦ ROLL CALL MAYOR AND CITY COUNCIL Mayor Kuykendall Mayor Pro Tern Lamerson Councilman Arnold Councilman Blair DISCUSSION ITEMS Councilman Kuknyo Councilman Lazzell Councilwoman Wilcox A FY 15 Budget Workshop, Part 1 ADJOURNMENT Prescott City Council Budget Workshop — 05/15/2014 EXECUTIVE SESSION Page 2 Upon a public majority vote of a quorum of the City Council, the Council may hold an executive session, which will not be open to the public, regarding any item listed on the agenda but only for the following purposes: (i) Discussion or consideration of personnel matters (A.R.S. §38-431.03(A)(1)); (ii) Discussion or consideration of records exempt by law (A.R.S. §38-431.03(A)(2)); (iii) Discussion or consultation for legal advice with the city's attorneys (A.R.S. §38- 431.03(A)(3)); (iv) Discussion or consultation with the city's attorneys regarding the city's position regarding contracts that are the subject of negotiations, in pending or contemplated litigation, or in settlement discussions conducted in order to avoid litigation (A.R.S. §38-431.03(A)(4)); (v) Discussion or consultation with designated representatives of the city to consider its position and instruct its representatives regarding negotiations with employee organizations (A.R.S. §38-431.03(A)(5)); (vi) Discussion, consultation or consideration for negotiations by the city or its designated representatives with members of a tribal council, or its designated representatives, of an Indian reservation located within or adjacent to the city (A.R.S. §38-431.03(A)(6); (vii) Discussion or consultation with designated representatives of the city to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property (A.R.S. §38-431.03(A)(7)). Confidentiality Arizona statute precludes any person receiving executive session information from disclosing that information except as allowed by law. A.R.S. §38-431.03(F). Each violation of this statute is subject to a civil penalty not to exceed $500, plus court costs and attorneys' fees. This penalty is assessed against the person who violates this statute or who knowingly aids, agrees to aid or attempts to aid another person in violating this article. The city is precluded from expending any public monies to employ or retain legal counsel to provide legal services or representation to the public body or any of its officers in any legal action commenced for violation of the statute unless City Council takes a legal action at a properly noticed open meeting to approve of such expenditures prior to incurring any such obligation or indebtedness. A.R.S. §38-431.07(A)(B). CERTIFICATION OF POSTING OF NOTICE The undersigned hereby certifies that a copy of the foregoing notice was duly posted at Prescott City Hall on at in accordance with the statement filed by the Prescott City Council with the City Clerk. Dana . Del -on , CIVIC, City Clerk 5/14/2014 City of Prescott Fiscal Year 2015 Budget t r) ISM gati Budget Workshop Part 1 — May 15, 2014 Prescott — A Full Service City ❑ Police and Fire ❑ Solid Waste ❑ Streets a r ,t'.- ❑ Utilities - ' k, C G ❑ Airport ❑ Recreation Services ❑ Planning & Building T -' ❑ Economic Development '`E ❑ Library Iai 2 1 5/14/2014 Approach to Building the FY15 Budget ❑ Align the FY15 budget with Strategic Goals, and balance it while preserving services/levels of services ❑ Critically review and implement organizational alternatives for fulfilling departmental missions more effectively/efficiently ❑ Fund implementation of Airport area-focused economic development vision and strategies integrating the "inside the fence"Airport property and facilities, proximate privately owned properties, and the educational/technical leadership of Embry-Riddle Aeronautical University Cl Identify and pursue entrepreneurial opportunities for net new revenue generation ❑ Update the City's tourism development approach; identify "next level" opportunities and investment funding mechanisms; transition from General Fund support ❑ Complete ICMA operational analysis of public safety response models to identify operational opportunities, and utilize FY15 as a transitional year of community dialogue and implementation of selected strategies 3 Strategic Goals Stronger Local Economy and Expanded Tax Base • Redevelopment of aging commercial centers • More quality jobs with family wages • Well maintained parks and recreational areas • More diverse economy which is less retail dependent • Care of greenbelts and street trees • Development of our airport as an"economic engine" • Continue as the Regional Retail Center First Class Utility System • Make land available for developing business/commercial sites • Water supply for the next 100 years • Leverage open space recreation and tourism assets • Sewers for all residences and businesses • Well-maintained water treatment and distribution system Better Mobility through Improved Roads and • Well-maintained wastewater collection and treatment facility Transportation System • Effective stormwater collection and natural treatment system to • Improved condition and quality of city streets enhance water quality • All city streets and alleys paved • Air service to alternative hubs Alive Downtown • Effective and functioning Municipal Planning Organization • Cleaner downtown with improved infrastructure • Facilities accommodating alternate modes(bicyclists and • More commercial offices with people working downtown pedestrians) • More activity venues for attracting residents and events • More people living downtown Managed Growth for a Balanced Community • More evening activities with businesses open beyond 5:30 • More affordable(workforce)housing units • Well-planned annexed areas with mixed and balanced uses Financially Sustainable City • Preservation of Prescott's historic charm and character • Maintain basic services • Growth paying for growth • Focus on long-term planning in all funds • Development consistent with Land Development Code • Target excess resources for economic&strategic program investment Polished City—Beautiful and Clean • Maintain flexibility to respond to unknown opportunities • Cleaner and well-maintained streets,alleys and rights-of-way • Reduce blighted homes and buildings • Effective solid waste collection and management 4 2 5/14/2014 FY15 Budget Process 1/14/14 Council Discussion on Airport Area Economic Development Strategic Planning 2/04/14 FY13 Mid-Year Budget Review Public Works Capital Improvement Program Update 2/11/14 Council Discussion of FY15 Work Program 2/18/14 Council Discussion of Development Impact Fees Project 2/25/14 Council Discussion on Airport Area Economic Development Strategic Planning 3/25/14 Council Discussion on Airport Area Economic Development Strategic Planning 4/8/14 Council Discussion of Open Space Program Council Discussion of Debt Capacities and Options 4/22/14 Council Discussion on Airport Area Economic Development Strategic Planning 4/22/14 Council Discussion FY15 Budget—Goals,Progress and Projects 5/15/14 Council Budget Workshop Part 1 (General Fund,Tourism,Golf Course) 5/29/14 Council Budget Workshop Part 2(Streets,Utilities,Solid Waste,Airport) 5 FY15 City of Prescott Organization CRIZENS 39,W MAYOR AND COUNCL City Crly Clerk Attorney Cey Court '' Judge City Manager �f`Community Budges, Puok. Pakre Econom'c Menay Deputy �eeb meM gars City Manager P mance R IT K'erke InNnon Were y g 111111 Historic IWman FINS-and , Reaaation iPmeervation e �comnng •Fgmeeieg ,Im Fsngal nn. EconomicEconomic _ facdnros FFeeLihrxy Dwbpmsnt Resources Sarvcee 3ins Planning E Budges and J Construdson f PHroI �f Nrpon Pu66c ..sod Walls ParkeRraile FK° Zoning PriiAege Taa �.�es l l Opxanana �Lornmunicabn 1 Maintennece Pmmtion, Buildaw IMAY -iTransponation nkq Waln lilleel g $HHY - &Ikng Services { Trai To Resource Mxnenanca - Recnxion Traim 1'.Management J avatar rotr. (._.._.__. Fac4lies• lakes _.. -11 • Treasury -{l SDecial Parkin S Pression Operationr '�Entomement Eeents vow, m , -Manageent• IMormxion j WanewalxAnk "—_ TechMcal Technology Ope I nH rations dd Control - Fleet 4og Course Senkee l _.- G4S Co Rdgunar _.. mm. -.Maintenance EMS Corner I �I Comoldiance Oynn" y NAldland Fxe 3 5/14/2014 FY15 Budget Context, Key Issues, and Considerations ❑ Stabilization and growth of the regional, state, and national economies ❑ Transaction Privilege Tax(TPT)—the financial impact of"reform" legislation reducing construction sales tax and shifting to State collection (Loss of$150,000 in FY15 and$300,000 in FY16 for each of General Fund and Streets Fund) ❑ Property tax capacity and revenue stream diversification ❑ Employee pay and benefits; compression; funding/impact of mandated retirement system increases ❑ Airport Area—"revisioning," economic development, Antelope Hills Golf Course public-private partnership ❑ Tourism-the continuing importance to the City economy; keeping downtown attractive; identifying new venues for selected existing and new events (e.g., Watson Lake) ❑ Public safety response alternatives, and transition to enhanced fuels reduction program to reduce wildfire susceptibility—fuels reduction is among the highest priorities for funding as an essential City service ❑ Strengthening relationships with regional partners 7 Personnel, Pay, and Benefits 8 4 5/14/2014 Retirement Costs, Overtime, and Assignment Pay Estimated Estimated Estimated Estimated Increase In Increase in FY 15 Average Average FY 14 FY15 Contribution FY 15 Budget Increase per Annual Cost Rate Rate Rates Budget Amount Employee per Employee Az State Retirement System (Employees 426) City 11.54% 11.60% 0.06% $ 12,000 $ 2,373,541 $ 27 $ 5,572 Employee 11.54% 11.60% 0.06% 27 5,572 Public Safety Retirement System Fire(Employees 65) City 43.47% 59.66% 16.19% $ 572,000 $ 2,106,682 $ 8,793 $ 32,404 Employee 10.35% 11.05% 0.70% 380 6,002 Police(Employees 72) City 43.98% 50.27% 6.29% $ 279,000 $ 2,232,916 $ 3,881 $ 31,019 Employee 10.35% 11.05% 0.70% 432 6,818 Total $ 863.000 $ 6,713,139 • Pay and Benefits for FY15 ❑ To remain competitive as an employer among its municipal peers, the City must: 1) Identify and take advantage of opportunities for increasing efficiency; and 2) Enhance revenues, particularly in the General Fund ❑ Changes in FY15 to the cost of health insurance and coverages provided through the Yavapai Combined Trust will be absorbed by both the City and its employees ❑ The Pay Plan update to be accomplished in FY15 must be market-driven, realistic, and affordable • Occupational families which are unique or nearly unique to the public sector compete with similar governments(public safety,parks and recreation,library) • Others compete in broader public-private markets(administrative personnel, engineers,inspectors,equipment operators,and other trades) ❑ Our public safety pay plans have traditionally been structured as a series of fixed% steps ❑ Non-public safety pay has been based upon ranges (max and min)for each job type, through which employees move via merit increases ❑ Positions will need to be added and others more closely monitored in order to assure proper compliance with the federal Affordable Care Act(ACA) 10 5 5/14/2014 Pay and Benefits for FY15 (cont'd) ❑ In FY14, compression and merit adjustments were funded for the first time in several years ❑ Prior to FY14, cost of living adjustments were made in FY08; merit and step increases were suspended after FY09 due to lack of funding ❑ Pay compression throughout the City workforce remains an issue needing continued attention ❑ Funding will be included in the FY15 budget to enable continuing to address compression, and provide for a first phase of market adjustments to be determined through analysis ❑ Work-related training and travel are included in each departmental budget ❑ Education assistance for personal occupational development, not directly related to an employee's job, was last funded in FY08 at $50,000 total (including $30,000 for General Fund departments) ❑ This draft FY15 budget does not include funding for tuition assistance; resumption of this benefit should be considered if recommended by the market analysis 11 Employee Pay Adjustments FY14 Public Safety(PSPRS Personnel) ❑ Retained the step plan for sworn Police Officers and Firefighters,subject to evaluation of whether to retain a step plan as part of the market study in the FY15 budget ❑ Applied a variable compression percentage increase based on year of hire(FY12 or earlier)up to 4.5% Other Departments(ASRS and non-sworn Personnel) ❑ Variable compression percentage increase based on year of hire(FY12 or earlier)up to 3% ❑ Made available a second component of funding for merit increases,funded at 75%of the total personnel budget, up to 2%for employees with superior performance FY15 ❑ Conduct market study and fund first phase adjustments prioritized for those most heavily impacted by turnover resulting from employees moving to other organizations for same/similar job at higher pay 12 6 5/14/2014 Position Changes - FY15 Budget New(11.0) • 1.0 HR Assistant—Human Resources(pg.2) • 1.0 Maintenance Worker—Recreation Services(pg.4) • 0.5 Crime Prevention Specialist(half-to full time)—Police(pg.5) • 0.5 Real Property Specialist(half-to full time)—Com.Dev.&Engineering(pg.6) • 1.0 Office Assistant—Fire Administration(pg.11) • 3.0 Leads Fuels Technicians—Fire(pg.12) • 1.0 Treatment Plant Operator—Waste Water(pg.13) • 1.0 Maintenance Specialist—Waste Water(pg.14) • 2.0 Maintenance Workers—Solid Waste(pg.15) Eliminated(13.0) • 1.0 Tax&Licensing Representative—Finance • 6.0 Hot Shot Crew—Fire • 6.0 Golf Operations—Recreation Services Net Change: 2.0 Positions Removed FY14 Total Budgeted Personnel = 508 FY15 Total Budgeted Personnel = 506 13 Total Full Time Equivalent Positions 600 550 500 450 400 350 300 250 200 150 100 , 50 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FTEs 575.10 565.25 573.50 570.25 520.25 509.75 511.25 504.75 508.00 506.00 14 7 5/14/2014 General Fund 15 General Fund Key Items, Issues, and Considerations ❑ The funding structure is severely limited by state law ❑ Continued attacks on funding sources and revenue amounts by the Arizona Legislature through tax code revisions and changes to state- shared revenue distributions ($150,000 impact in FY15) ❑ 85% of the General Fund revenue comes from City and State- assessed taxes which have no correlation to service demand ❑ 66% of FY15 General Fund expenses will be for public safety; up from 60% in FY14, and 80% of the costs of public safety are for personnel (note:the Regional Communications Center,which is cost-recovered, has been separated from Police and Fire for this FY15 calculation) ❑ The vast majority of public safety cost escalation in recent years is attributable to State-mandated pension cost increases ❑ The growing cost of public safety is continuing to pressure other City programs, services, and available resources directly related to the overall quality of life in our community 16 8 5/14/2014 General Fund Key Programs/Projects/Requests/Other Items Budget Item Strategic Goal FY15 Amount Included in the Draft FY15 Budae( 1.PSPRS Increase Financially Sustainable City $851,000 2.ASRS Increase Financially Sustainable City $ 12,000 3.Affordable Care Act Federal Mandate/Financially Sustainable City -New Time and Attendance Software $210,000 -New Coverage Expense -Position Adjustments Required 4.Class and Comp/Pay Plan;Capacity Financially Sustainable City $ 80,000/TBD 5.Fuels Reduction Program(Fire Prevention) Polished City/Financially Sustainable $100,000 6.Rodeo Grounds ED Master Plan Stronger Local Economy/Expanded Tax Base $ 50,000 Not Funded or Fully Funded in the Draft FY15 Budgg( 1.GPREP(Regional ED Contribution) Stronger Local Economy/Expanded Tax Base $ 40,000 2.Airport CIP Grants Matches Stronger Local Economy/Expanded Tax Base TBD 3.Vehicles/Capital Equipment Replacement Financially Sustainable City TBD 4.Life-Cycle Facilities Management Financially Sustainable City TBD General Fund Revenue and Sources 18 9 5/14/2014 General Fund Revenues FY07-15 S40 Misc. le Fines ■Service Charges ■Licenses/Permits ■Intergovernmental III Taxes 535 _..... L. Down$2,893,620 ) $30 $25 3 $20 $15 $10 $5 FY07 Act. FY08 Act. FY09 Act. FY10 Act. FY11 Act FY12 Act. FY13 Act. FY14 Bud FY15 Bud 19 General Fund Revenues FY14 FY15 %Chg %of Budget Budget Budget Total Local Taxes Sales/Use Tax $ 13,520,000 $ 13,840,000 2.4% 42.6% Primary Property Tax 1,518,465 1,570,938 3.5% 4.8% Franchise Taxes 1,658.979 1,636.000 -1.4% 5.0% Total Local Taxes $ 16,697,444 $ 17,046,938 2.1% 52.5% Intergovernmental Revenues State Sales Tax $ 3,442,737 $ 3,600,149 4.6% 11.1% State Income Tax 4,445,081 4,822,959 8.5% 14.9% State Vehicle License 2,073,120 2,199,130 6.1% 6.8% Joint Dispatch 1,215,787 1,327,197 9.2% 4.1% Library 550,931 564,444 2.5% 1.7% Other 333,076 357,223 7.2% 1.1% Total Intergovernmental Revenues $ 12,060,732 $ 12,871,102 6.7% 39.7% Licenses and Permits 444,800 547,900 23.2% 1.7% Service Charges 1,226,058 1,201,499 -2.0% 3.7% Fines and Forfeitures 476,350 492,400 3.4% 1.5% Miscellaneous and Interest 247,000 292,300 18.3% 0.9% Total General Fund Revenue $ 31,152,384 $ 32,452,139 4.2% 20 10 5/14/2014 Property Tax ❑ There are significant state limitations on the amount of property tax the City is allowed to assess ❑ The City of Prescott assesses two types of property tax • Primary, used for general governmental operations, including public safety • Secondary, which pays debt service on voter-approved debt (each issue has a specified end date); the City's current secondary property tax pertains to the recreational development improvements at Watson and Willow Lakes ❑ Property owners surrounding Prescott do not pay any City property tax (primary or secondary) but for fire protection are subject to Central Yavapai Fire District (CYFD) tax 21 Property Tax Rates City of Prescott Compared to CYFD 3.0 $525.96 2.5 $489.78- $415.86 2.0 $375A8 =Prescott Secondary =Prescott Primary 1.5 CYFD Amount of tax on$200,000 home 1.0 $88.66 $96.64 0.5 . $73.94 -$7660 $67.04 $65.38 0.0 111 ■ FY10 FY11 FY12 FY13 FY14 FY15 22 11 5/14/2014 Property Tax Rate Comparison Property Tax on$200,000 Residence Tax Year 2014 COUNTY RESIDENCE CITY RESIDENCE TAXING ENTITY PRIMARY SECONDARY TAX DUE PRIMARY SECONDARY TAX DUE DIFFERENCE YAVAPAI COUNTY&AHCCCSIALTCS 386.16 - 386.16 386.16 - 386.16 - 21.3% SCHOOL EQUALIZATION 102.46 - 102.46 102.46 - 102.46 - 5.6% PRESCOTT UNIFIED SCHOOL 01 875.00 73.48 748.48 675.00 73.48 748.48 - 41.2% JTED - 10.00 10.00 - 10.00 10.00 0.6% YAVAPAI COMMUNITY COLLEGE 364.82 44.54 408.36 364.82 44.54 409.36 - 22.5% FIRE DISTRICT ASSISTANCE'^ . 20.00 20.00 - 20.00 20.00 - 1.1% YAVAPAI COUNTY LIBRARY DISTRICT - 29.82 29.82 - 29.82 20.82 - 1 6% YAVAPAI FLOOD CONTROL DISTRICT - 43.24 43.24 - 43.24 43.24 - 2.4% CENTRAL YAVAPAI FIRE DISTRICT - 525.96 525.96 - - - (525.96) 0.0% CITY OF PRESCOTT - - - - 59.68 7.34 67.02 67.02 3.7% TOTAL 1,528.44 747.04 2,275.48 1,588.11 228.42 1,816.54 (458.941 100.0% "'FIRE DISTRICT ASSISTANCE HAS NOTHING TO DO WITH EITHER CYFD OR CITY FY14 FY16 DIFFERENCE City Tax Rate per 6100 Assessed Val. Primary Tax Rate 0 2984 0.3007 0.0023 Secondary Tax Rate 0.0367 0.0262 (0.0105) Total Tax Rate 0.3351 0.3269 (0.0082) 23 Local Sales Tax Rate Comparison Chino Valley 4.00 Prescott Valley 2.3 1% Prescott 2D(1% 111x1., 0.4,". 11x1':. I41:'. 20D% 2.50% 3.00% 3.50% 400% 4.50% Prleliap lax hate 24 12 5/14/2014 Breakdown of Total Transaction Privilege Tax Levied in Prescott City ("Local") General Fund 1.00% Streets & Open Space 1.00% Yavapai County Excise Tax 0.50% Jail Tax 0.25% State of Arizona 5.60% Total in Prescott 8.35% Total in Prescott Valley 8.68% Total in Chino Valley 10.35% Notes: This is the maximum transaction privilege tax levied on sales within the City (excluding the Transient Occupancy Tax of 3%).The rates on specific items may vary by taxable category. A quarter percent(0.25%)Jail Tax increase will be on the ballot in November's general election. 25 TPT (Sales Tax) "Reform" Legislation ❑ HB 2111 passed during the FY13 Legislative session ❑ Effective January 2015 ❑ State assumes administrative processing and collection of TPT including online tax remittance • Beginning with the January 2015 reporting period,all Prescott TPT taxpayers will remit returns to the State directly ❑ City retains audit authority for single-jurisdiction taxpayers (only doing business in Prescott) • State approval is required for multi-jurisdictional audits ❑ Service Contractors/Trades will be exempt from prime contracting and instead will pay a tax on materials at the point of sale. This will result in an anticipated tax/revenue reduction and shift at point of sale (outside of City) • FY15 Estimated Total Loss$300,000(General Fund Loss$150,000) • FY16 Estimated Total Loss$600,000(General Fund Loss$300,000) 26 13 5/14/2014 General Fund Expenditures Operating and Capital 27 General Fund Budget Millions $40 $35 $30 $25 $20 $15 $10liii . $ FY06 FY07 -Y08 'Y09 -Y10 li Y11 Y12 Y13 FY14 FY15 Budget Budget Budget Budget Budget 1 Budget Budget Budget Budget Budget •Capital Outlay/Projects 1,168,413 1,280,534 1,077,874 1,026,888 537,243 f 3,510,027 1,186,594 861,961 1,070,201 2,000,571 •Operating Budget 27,243,626 31,357,766 33,812,632 32,830,521 30,574,990 28,118,573 29,045,894 29,121,839 30,726,547 31,765,708 28 14 5/14/2014 General Fund Operating Expenditures General Economic G _MltlafMes 6% /' 2% _FInance/IT 1% D Services 4% Roc Police Department 38% \_Regional Comm. Public Safety=66% 5% Personnel Costs of Total=76% 29 General Fund Operating Expenditures by Department FY14 FY15 % Budget Budget Change City Council $ 47,508 $ 51,275 7.9% City Clerk 109,317 114,402 4.7% City Court 558,207 581,411 4.2% City Manager(HR,Pub Comm) 665,299 562,863 -15.4% Legal Department 373,999 373,802 -0.1% Field and Facilities(Rodeo,Pkg Gar) 104,338 102,946 -1.3% Economic Initiatives(Tourism,ED,Spec Events) 624,622 611,071 -2.2% Finance/Information Technology 407,690 414,118 1.6% Development Services 1,289,307 1,205,672 -6.5% Recreation Services 2,896,679 3,002,886 3.7% Library 2,260,241 2,316,955 2.5% Police Department 10,218,847 12,208,657 19.5% Regional Communications 2,725,368 1,431,978 -47.5% Fire Department 7,745,125 8,870,292 14.5% Total General Fund Operating $30,026,547 $31,848,328 6.1°/ 30 15 5/14/2014 City Council Operating Expenditures FY14 FY15 % Budget Budget Change Personnel Services $ 49,936 $ 49,455 -0.96% Office Supplies 3,000 3,000 0.00% Other Services and Charges Internal Charges 29,418 32,727 11.25% Facilities Maintenance 24,957 27,172 8.88% Insurance 44 88 100.00% Subscriptions 30,000 30,277 0.92% Professional Services 4,000 - -100.00% Travel 19,500 19,500 0.00% Postage,Copier Charges and Misc. 8,000 8,500 6.25% Subtotal City Council Budget $168,855 $170,719 1.10% Caborca Sister City $ 3,000 $ 3,000 0.00% Suchitoto Sister City 1,500 1,500 0.00% Zietz Sister City - - Total City Council Budget $173,355 $175,219 1.08% Cost Recovered from Other Revenue Centers (121,347) (119,444) -1.57% Total General Fund Cost $ 52,008 $ 55,775 7.24% 31 Library Yavapai County Free Library District— Funding Issues and Considerations ❑ In the FY14 tax year, the Yavapai County Free Library District (YCFLD) collected$760,760 from properties within the City limits($510,234,917 X 0.1491%) ❑ The District disbursed $550,931 in direct funding to Prescott for library operations, and provided direct services for a variety of operations through the Yavapai Library Network (YLN) ❑ The FY14 YCFLD tax levy was reduced from 0.1660 to 0.1491, reducing the annual funding available to distribute to member libraries by$600,000 ❑ Recent County discussions for FY15 have included providing a new library in Paulden which would be funded from the existing YCFLD levy, resulting in further reductions for all YCFLD members ❑ YCFLD funding and state services are governed by similar rules - charges for library services were reviewed and adjusted where feasible in FY14 ❑ For a library to be eligible for Library Services and Technology Act (LSTA) funding from the Arizona State Library, core library services must be offered free of charge ❑ The Yavapai County Free Library District (YCFLD) receives some LSTA general support money from the Arizona State Library, and follows the eligibility guidelines set forth by the Arizona State Library 32 16 5/14/2014 Library Yavapai County Free Library District— Funding Eligibility Library Services and Technology Act (LSTA)eligibility is important for public libraries. Core services are not defined in Arizona Statutes. Instead they are defined as an eligibility requirement by the Arizona State Library to receive LSTA grants and services. The eligibility requirements for libraries in Arizona to receive LSTA funds and services include: ❑ Be open to the public at least 750 hours per year,with regular,posted hours ❑ Provide core library services,such as borrowing privileges and computer use,free of charge to all residents within the library's service area ❑ The core services of borrowing privileges for all types of media and use of computers/internet need to be free of charge to all residents within the library's service area ❑ The Yavapai County Free Library District receives some LSTA general support money from the Arizona State Library. YCFLD follows the eligibility guidelines set out by the Arizona State Library Being LSTA eligible allows public libraries to: D Apply for subgrants such as the one that allowed Prescott Public Library to add the Early Literacy Rock Garden and the Job Help Hub computer training lab. ❑ Access databases provided by the Arizona State Library with LSTA monies that allow residents to access information that ranges from scholarly articles to homework help to"how-to"information.As of July the cost of 27 of our 32 databases available to patrons will be paid for by the Arizona State Library valued at tens of thousands of dollars. ❑ Receive summer reading materials supplied by the Arizona State Library including participation in a nationwide consortium that offers professional created summer reading logs,signage,licenses to use artwork and manuals to help in the creation of programs. ❑ Utilize continuing education programs provided by the Arizona State Library as well as scholarships to attend library conferences. Continuing education and training are important for maintaining currency and providing excellent customer service to Prescott residents.Such funding has been curtailed in city budgets. ❑ Access information to search and borrow items held by libraries outside the Yavapai Library Network. This is done through OCLC access paid for by the Arizona State Library. OCLC is an international consortium that coordinates borrowing and lending between libraries. 33 General Fund FY15 Capital Outlay/Projects Budgeted Page No. Description Amount General Government 20 Time&Attendance Software and Timeclock Equipment(Affordable Care Act) $ 210,000 21 Classification&Compensation Pay Plan Study(HR) 80,000 22 Records Retention Management Module for OnBase(Clerk) 20,000 C/0 City Hall Conference Room(Council) 3,394 Economic Initiatives 23 Rodeo Grounds Master Plan 50,000 Police 24 Video Server-Data Vault 25,400 25 Neighborhood Enhancement Program(Code Compliance) 12,500 Regional Communications 26 Recording System for Dispatch 25,000 Fire 27 McCormick Street AdminiTraining Facility 437,777 28 Cardiac Heart Monitors(ECG)Monitors 300,000 29 Hazmat Vehicle#781 HMT 75(Utility Type) 300,000 30 Diesel Exhaust Systems-Scrubbers 160,000 31 Station Refurbishment 130,000 Recreation Sertices 32 Roughrider Parking Lot Pavement Preservation 80,000 33 City Playgrounds ADA Compliance 20,000 Community Deweiooment 34 Completion of General Plan 3,500 Total General Capital/Projects $ 1,857,571 34 17 5/14/2014 General Fund CIP FY16-20 FY2016 FY2017 FY2018 FV2019 FY2O2O Page No. Description Pro ected Projected Projected Projected Projected General Goyamment 35 Agenda Management Program(Clerk) $ 25,000 $ - $ - $ - $ - 36 Book Lockers(Library) 17,300 17,300 - - Police 37 Electronic Tlcketirg and Form Completion 135,000 - - - - 38 On-body Video Camera System 57,777 11,451 11,451 11,451 11,451 39 Microwave Equipment Replacement/Upgrade 25,000 25,000 25,000 25,000 25,000 40 Walk in Freezer Maint/Replacement 15,000 - - - - 41 ATV Vehicle for Radio Technicians 15,000 - - - - 42 Armored Personnel Vehicle - 240,000 - - - 43 Mobile Emergency Command Center Vehicle - - 492,035 - - 44 Police Headquarters Building Expansion - - - - 3,685,882 Reoional Communications 45 Copy Machine for PRCC 10,000 - - - - 46 CAD Upgrade/Replacement - - 1,000,000 - - Field and Facilities 47 Security Locks for City Hall Campus and Other City Facilities 70,000 70,000 70,000 70,000 70,000 Community Develooment 48 Historic Master Plan Update(Planning and Zoning) 70,000 - - - - 49 Scan Building Permits and Plans(Building Safety) 50,000 - - - - 35 General Fund CIP FY16-20 (cont'd) FY2016 FY2017 FY2018 FY2019 FY2020 Page No, Description Projected Projected Projected Projected Projected Fire 50 Self Contained Breathing Apparatus(SCBA's) 450,000 - - - - 51 Portable Electronic Data Collection Deices 90,000 - - - - 31 Station Refurbishment 80,000 80,000 80,000 80,000 80,000 52 Pauing of Trairg Center Grounds 80,000 80,000 60,000 60,000 80,000 53 Hydraulic Extrication Tool Package 30,000 - - - - 54 Automatic Vehicle Locators and Mobile Data Computers 20,000 15,000 15,000 15,000 15,000 27 McCormick Street AdmlrVTraining Facll0y - 437,277 - - - 55 Fire Station 78 Downtown and Administrative Offices - 120,000 1,200,000 - - 56 Fire Station 77 Watson Lake Road and Engine - 100,000 2,350,000 - - 57 Firehouse Furniture 15,000 - - - 58 Inflatable Fire Education House - 8,300 - - - 59 Fire Station 78 North Prescott and Engine - - 200,000 2,350,000 - 80 Fire Station 73 Relocation - - 200,000 - - 81 Thermal Imaging Cameras - - 150,000 - - 82 Portable and Mobile Radio Deices - - 75,000 75,000 - 83 Training Center Exterior Lighting - - 20,000 - 84 Breathing Air Compressor - - - 50,000 - 85 Mobile Fire Safety Training House - - - 30,000 - 36 18 5/14/2014 General Fund CIP FY16-20 (cont'd) FY2016 FY2017 FY2018 FY2019 FY2020 Page No. Description Projected Projected Projected Projected Projected Recreation Sertices 88 Willow Lake RV Camping(utilities,improsements) $ 250.000 $ - $ - $ - $ • 67 Goldwater Lake-Entrance Road Asphalt Replacement/Widening 70,000 - - - - 88 New Bonfield Lighting-Bill Vallely Lower Field(GRANT) 63,800 - - - - 89 Boat storage-Watson Lake Park 55,000 - - - - 70 Mountain Bike Competithe Track&Brent Area•Pioneer Park 40,000 - - - - 71 Sports Facility Fence Replacement Program 30,000 - - - 33 City Playgrounds ADA Compliance 20,000 20,000 20,000 - - 72 Heritage Park•Ballnerd Light Replacement - 225,000 - - - 73 Grade Tractor - 80,000 - - - 74 Roughrider Park Lower Field Stadium Seating Concrete Cap - 80,000 - - - 75 New Shade Pasllion-Pioneer Park 4plex - 30,000 - - - 78 Connection to City Sewer-Boyle-DeBusk building - 20,000 - - - 77 Park-wide Fence Replacement(wood-mond rail) - 20,000 - - - 78 Goldwater Lake Expansion(campground w.r hookups,trails etc.) - - 500,000 - - 79 Rosser Street Neighborhood Park - - 250,000 - - 80 Ken Lindley Field-Ballfield Lighting Replacement - - 195,000 - - 81 New Mobile Stage-Bandwagon Replacement - - 185,000 - - 82 Mike Fenn Community Skatepark-Lighting - - 45,000 - - 83 Permanent Stage Upgrades-Watson Lake Park - - 20,000 - - 84 Peavne Trail at Granite Creek(creek&haul mad Interface) - - - 400,000 - 85 Willow Creek Park-Upgrades and Inigation - - - 282,000 - 86 Willow Lake South Shoreline Parking - - - 155,000 - 87 Roughrider Park-Bellfield Lighting for Upper Field - - - 130,000 - 88 Heritage Park-Fields 3&4(safety upgrades/scorebooth) - - - 75,000 - 89 Boundary Fence Replacements-Natural Parklands - - - 40,000 - 90 Brent Shade Canopies-Watson Lake Grass Area - - - 40,000 - 91 Trailhead Sr Circle Trail-Northwest Prescott - - - 25,000 - $1,748,877 $ 1,674,328 $ 7,143,488 $ 3,893,451 $ 3,947,333 37 General Fund Unfunded Capital FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Page No. Description Projected Projected Projected Projected Projected Projected Field and Facilities 93 Rodeo Grounds Rehab 609,357 27,300 270,000 882,532 350,000 - 38 19 5/14/2014 General Fund Summary FY14 FY15 Budget Budget General Fund Operations Revenues $31,152,384 $32,452,139 Transfers In-Bed Tax(Parking Garage) 20,000 20,000 Total Revenues/Transfers In 31,172,384 32,472,139 Operating Expenditures 30,026,547 31,848,328 Operating Income 1,145,837 623,811 Capital Expenditures and Transfers Out Capital Expenditures 1,070,201 1,857,571 Transfers Out Airport Operations 47,988 152,124 Governmental Grant Operations 357,831 925,068 Total Operating Transfers 405,819 1,077,192 Airport Capital 255,166 TBD Airport Capital Grant Match 85,233 TBD Governmental Capital Grant Match 18,600 - Total Capital Transfers 358,999 - Total Capital and Transfers Out 1,835,019 2,934,763 Net Change In Fund Balance (689,182) (2,310,952) Fund Balance-Beginning 20,623,975 24,046,518 Fund Balance-Ending $19,934,793 $21,735,565 Ending Balance-Detail Reserve Policy $ 6,230,477 $ 6,490,428 Retirement Reserve 3,161,904 2,839,632 Internal Loan 6,743,937 5,630,198 ED Reserve 384,000 384,000 Unassigned 3,414,475 6,391,307 39 Transient Occupancy (Bed Tax) and Tourism 40 20 5/14/2014 Transient Lodging (Bed) Tax FY14 FY16 Budget Pro acted Beginning Balance $ 226,499 $128,347 Revenues Bed Tax Revenues(3%levy) $ 601,500 $632,000 Expenditures Marketing and Promotion $ 290,000 $290,000 Contingency 45,655 112,847 Signature Events 26,670 30,000 Whiskey Off Road 30,000 30,000 Community Events 3,675 10,000 Support for the Ms 35,000 35,000 Tournaments 30,000 30,000 Courthouse Lighting 30,000 30,000 Parks Tourism Venues/Amenities 30,000 30,000 Phippen Museum 15,000 15,000 Smoki Museum 15,000 15,000 Sharlot Hall Museum 25,000 25,000 Special Events Overtime 25,000 25,000 PDP Contract 20,000 20,000 Prescott Frontier Days Rodeo 20,000 20,000 Parking Garage 20,000 20,000 Prescott Creeks Match 12,500 12,500 Open Space Management 10,000 10,000 Total Expenditures $ 683.500 $760,347 Ending Balance $ 144,499 $ - 41 Tourism - An Enhanced Approach U The FY15 Budget continues funding for enhancing sales to a variety of markets through a full-time Sales Manager U Focus on marketing to increase interest in leisure and group market sales during target expansion periods (mid- week and off-season), attract conferences, meetings, scheduled group tours, and independent (fly/drive) tour programs ❑ Alleviating pressure on the General Fund by reducing financial support to Tourism ($632,000 for FY15) from this source is a continuing goal 42 21 5/14/2014 Grant Applications and Funding 43 Grant Applications - All Departments FY16 City Grant Budget Share Share General Government Miscellaneous Grant Opportunities $ 500,000 $ - $ 500,000 ACA Grant Award 1,000,000 500,000 500,000 JCEF and Fill the Gap 74,000 - 74,000 ADA Dexter 139,420 - 139,420 CDBG Entitlement Admin 39,095 - 39,095 Meals on Wheels 20,000 - 20,000 Cornucopia 5,100 - 5,100 CDBG Fair Housing Education Program 1,600 - 1,600 Historic Preservation Project 1,800 - 1,800 Library Library Special Projects 50,000 - 50,000 Library Book Nooks 9,750 - 9,750 Recreational Services Boating Upgrades-Goldwater Lake 50,000 - 50,000 Fire Department FEMA Homeland Security Grants 250,000 62,500 187,500 State Fire Assistance 331,000 165,500 165,500 Hazardous Fuels 175,000 17,500 157,500 Fire Miscellaneous 100,000 - 100,000 Wildfire Academy Tohon 150,000 - 150,000 Wildfire Academy Gila River 50,000 - 50,000 FEMA AFG 1,751,500 175,150 1,576,350 AZ Homeland Security 100,000 - 100,000 County Title Ill Grant(Firewise) - - 25,000 44 22 5/14/2014 Grant Applications (cont.'d) FY15 City Grant Budget Share Share Public Works Lincoln Elementary-Safe Roads to School $ 156,500 $ - $ 156,500 Taylor Hicks&Miller Valley-SRTS 95,500 - 95,500 Mile High&Mountain Oak Chatter-SRTS 78,500 - 78,500 Washington Elementary-SRTS 78,500 - 78,500 Police COPS Hiring Recovery 158,636 - 158,636 Police Miscellaneous Grant 350,000 - 350,000 RICO 45,000 - 45,000 Vehicle Impound 82,250 - 82,250 AZHS Communications 36,016 - 36,016 GOHS DUI Enforcement 41,750 - 41,750 Narcotics Task Force 30,000 - 30,000 GOHS Traffic Enforcement 18,000 - 18,000 Canine Grant 4,500 - 4,500 Bullet Proof Vests 8,837 4,418 4,419 Victim Advocacy 65,049 - 65,049 Gang Task Force(GITTEM) 70,804 - 70,804 Alzheimer's Grant 45,000 - 45,000 $ 5,714,029 $ 925,068 $ 4,940,979 45 Impact Fees 46 23 5/14/2014 Impact Fees Key Items, Issues, and Considerations ❑ Current law has significantly reduced the amount of funding which can be made available for new capacity (facilities and other infrastructure) needed to serve growth ❑ In communities with aging infrastructure, single rehabilitation projects (pipes, streets, treatment plants) usually include both "existing deficiency" and "new growth" components ❑ Due to the restrictions on uses of impact fees, and linkages to sensitive user rates (water, sewer), the funding and financing of capital costs is increasing difficult ❑ Library and Parks fees will end 8/1/2014 ❑ Goldwater Lake expansion and Pioneer Park(future partnering) projects are included in the Impact Fees Capital Improvements Program; a City contribution to the Yavapai College Tennis Courts Project is not presently funded 47 FY15 Governmental Impact Fees Public Buildings Parks Streets (Eliminated) Library Fire Police Revenues Impact Fees $ 12,602 $ 8,207 $ - $ 6,667 $ 25,375 $ 28,468 Interest 15,000 1,200 2,000 5,000 8,000 8,000 Rent - - - - 24,359 - Total Re.enues $ 27,802 $ 9,407 $ 2,000 $ 11,667 $ 57,734 $ 36,488 Expenditures Transfers Outllow Creek Rd.-Increased Capacity) 125,117 Total Expenditures $ - $125,117 $ - $ - $ - $ - Net Change in Fund Balance 27,602 (115,710) 2,000 11,667 57,734 36,468 Fund Balance-Beginning 704,318 115,710 174,593 432,942 773,971 809,743 Fund Balance-Ending $731,920 $ - $ 176,593 $444,609 $831,705 $846,211 48 24 5/14/2014 Other Special Revenue Funds FY15 Budget Acker Gifts& Trust Donations Beginning Balance $ 572,766 $ 308,332 Revenues/Transfers In Interest 7,000 - Total Revenues/Transfers In 7,000 - Expenditures Scholarships 10,000 - Gift/Donation Expenditures - 8,707 Total Expenditures 10,000 8,707 Ending Balance,6/30 $ 569,766 $ 299,625 49 Debt Service FY14 FY15 Budget Budget Revenues Secondary Property Taxes $ 187,200 $ 75,000 Special Assessments Billing 377,534 6,062 Interest 12,000 10,000 Total Revenues $ 576,734 $ 91,062 Expenditures GO Bonds 188,200 186,800 Special Assessment Bonds 377,534 7,062 Total Expenditures $ 565,734 $ 193,862 50 25 5/14/2014 City of Prescott Secondary Tax Rates Used for Servicing General Obligation (GO Bonds) 003.455 . 030 0.55 0.25 0.20 GO Bond debt service for _ _ irmecrpreoavteiomneanl tdseovfewlopamtseonnt and Willow Lakes which is 0.10 - set to expire FY17 0.05 FIN FYN FYN FM MX PIN PIN F(11 FY12 NU FY14 FYIS NU Pin 51 Golf Course Enterprise Fund 52 26 5/14/2014 Golf Course Fund FY14 FY15 % Budget Budget Change Golf Operations Revenues Greens Fees $ 1,330,432 $ 1,414,398 6.3% Cart Rentals 490,489 524,007 6.8% Pro Shop 173,079 176,622 2.0% Food and Beverage 715,500 816,550 14.1% Contingency - 300,000 Total Revenues $ 2,709,500 $ 3,231,577 19.3% Expenditures Billy Casper Golf Operations 1,436,930 1,467,981 2.2% Course Maintenance 1,318,932 1,325,674 0.5% Cart Debt Service 131,998 137,922 4.5% Contingency - 300,000 Total Expenditures $ 2,887,860 $ 3,231,577 11.9% Net Income(Loss)Golf Operations $ (178,360) $ - 53 Golf Course Summary of Estimated Operating Revenues and Expenditures under the Present Public-Private Partnership Estimated Estimated Estimated Revenue Over Operating Operating (Under) Revenue Expenditures Expenditures FY 2014 2,756,418 2,748,065 8,353 FY 2015 2,931,578 2,931,037 541 FY 2016 2,986,220 2,840,539 145,681 FY 2017 3,041,918 2,885,714 156,204 FY 2018 3,098,692 3,027,678 71,014 FY 2019 3,156,584 3,074,444 82,120 54 27 5/14/2014 Golf Course Cash Flow with Public-Private Partnership thy Council.ppmr..golf counts budget to all I udg N management oP.ratlon,m.InM1nmw,and opbl proNn `I .eons.whotlr.rincomd by Billy Cape Golf IICG)on City of Prescott In the cash flew..pl.ln.d Wow Fy15 protections below antidp.f.$2.93 MBIM I budget on.-tim.Initid funding of$30.000far working c.plbt till.Is nota payment of comp.mation m BCG by City Mfoloo.HBb Golf M.nseemndIAHGMI Bank Account•/MGM will Co.subsidiary LLC of BOG 4 4 ♦ 1 MI Budm1 Antelope Hill.Golf Beeenu3152.93 MI Men mein Bank Ginn Fes MI Boo.nu.. Cart rem deposited dolly to thb.ueunt Driving Range pro Shop Soles Monthly cash over minimum balance of food BBw.rag. / $25,090 acne to Clty / 4 41F"' ABGM eM Its Vendors(51A2 MI (BCG personnel are not chy.mploy.c) Payment°.employees and course operating Cttv of Prescott l$1.1GMJ eepemm M approved budget monthly Payment of Course molmemn.a expenses and other sammIt mom M,oth•rt rn fours.msdmen.nq city cost related to the Course paid from payments � *rush over minimum babes Performance Inmost...when earned 55 Other Policy Items with Budget Dimensions General Fund 1. User Fees a)Parks b)Trails c)Library 2. Business License Other Funds 1. BBB Tax 2. Streets Sales Tax(consider raising to 1% from 0.75% rate to become effective 1-1-16) 3. Assured Funding for Public Safety and Community Quality of Life (consider sales tax increment) 28 5/14/2014 Upcoming Budget Process Steps May 29, 2014 Council Budget Workshop Part 2 (Streets, Utilities,Solid Waste,Airport) June 10, 2014 Tentative budget adoption Publishing of tentative budget June 24, 2014 Public hearing on budget June 24, 2014 Public hearing for truth in taxation June 24, 2014 Roll call vote for primary property tax increase June 24, 2014 Adoption of Final Budget by Council (separate meeting) July 8, 2014 Adopt Property Tax Levies 57 29