General Fund Water and Sewer Fund

Mayor’s FY 2007Budgets

Recommendation

First Year Achievements by the Mayor, City Council

and Staff

Ordinance requiring $10 million minimum in RFFI and General Fund

Ordinance establishing a Water and Sewer CIP

Ordinance requiring $10 million minimum in Water and Sewer CIP by 2013

Ratings upgrade by S&P to AA

Committed to Protecting the

Taxpayers’ Investments

Philosophy The Budget is the City’s blueprint to

improve the quality of life for all citizens

The Budget provides the mechanism to achieve the Core Values of our administration

The Budget must be conservative to ensure healthy reserves and sound financial practices

Budget 101

The City of Tuscaloosa has two operating budgets:

1. General Fund (GF)

2. Water and Sewer Fund (W/S)

The City of Tuscaloosa has two capital budgets:

1. Reserve Fund for Future Improvements (RFFI)

2. Water/Sewer Capital Improvement Program (CIP)

Budget 101

General Fund (operating)

Serves as the general operating fund for the City and excludes Water and Sewer Fund operations

Provides funding to City Departments such as City Clerk, EMA, Environmental Services, Finance, Fire, HR, IT, Inspections, OCA, Planning, Police, Revenue and TDOT

Provides funding to agencies such as PARA, Library, Tuscaloosa City Schools, FOCUS and Kid One Transport

Water and Sewer Fund (operating)

Serves as the general operating fund for the City’s Water and Sewer Fund and excludes all General Fund operations

Provides for the operations of Ed Love Water Treatment Plant, Hilliard Fletcher Wastewater Treatment Plant, Lakes Division, Water Distribution, etc.

Provides for debt service expenses on outstanding Water and Sewer debt

Reserve Fund for Future Improvement

(capital)

Annual surpluses from the General Fund are transferred into the RFFI

Provides funding for non-water and sewer infrastructure related projects such as road improvements, sidewalk enhancements, traffic calmers, drainage projects and paving

Other examples of projects funded in previous years include the Mercedes recruitment, fire stations, City Hall annex, etc. This has allowed the City to minimize its outstanding debt

Estimated unencumbered balance is approximately $10.2 million

The FY 2005 General Fund transfer was $6.8 million

Water and Sewer – CIP (capital)

Annual surpluses from the Water and Sewer Fund will be transferred into the CIP

Provides funding for water and sewer infrastructure related projects

Estimated unencumbered balance is approximately $4.3 million

General Fund

The General Fund Budget Must… Include estimates of revenues, and

expenditures to include total debt service payments required for the budget year

Be a balanced budget where estimated revenues equal estimated expenditures

Budget Requirements

Departmental Budgets

Department budget requests to the Mayor exceeded anticipated revenue by $38.5 million for FY 2007

Salary, wage and fringe benefits for employees increased by approximately $3.7 million over the FY 2006 Revised Budget

Agency Funding

Agencies requested an additional $8.7 million over FY 2006

Thirty-four agencies are recommended to be funded a total of $10 million

Revenue Projections

FY 2007 budget is more conservative than in past fiscal years with a 2.5% growth rate for the City’s Sales Tax, County-wide Sales Tax and Privilege License

FY 2006 budget had a 3% growth rate

FY 2005 budget had a 4% growth rate

Projected RevenuesRevenue

Projections FY 2007 FY 2006*1 New Revenue%

Change

Taxes $49,156,000 $45,833,461 $3,322,539 7%

Licenses $16,248,500.00 $14,777,000 $1,471,500 10%

Fines $1,696,700 $1,766,500 ($69,800) -4%

Property Use $84,100 $81,200 $2,900 4%

Service Charges $2,230,600 $2,230,622 ($22) 0%

Intergovernmental $23,539,393 $22,859,221 $680,172 3%

Other Operating $1,381,601 $946,475 $435,126 46%

Encumbrance Carry Over $0 $873,643 ($873,643) -100%

Interfund Transfer $812,610 $1,087,393 ($274,783) -25%

Reimburse $1,200,000 $1,717,006 ($517,006) -30%

Total $96,349,504 $92,172,521 $4,176,983

*1 Revised Budget As Of August 22, 2006

Projected Revenues

General Fund Revenues

Taxes52%

Licenses17%

Fines2%

Property Use0%

Service Charges2%

Intergovernmental24%

Other Operating1%

Interfund Transfer1%

Reimburse1%

Taxes

Licenses

Fines

Property Use

Service Charges

Intergovernmental

Other Operating

Interfund Transfer

Reimburse

Projected ExpendituresExpected Expenditures FY 2007 FY 2006*1 New Exp

% Change

Finance $1,050,172 $922,412 $127,760 14%Revenue $749,154 $735,973 $13,181 2%

Municipal Court $738,141 $610,739 $127,402 21%Human Resources $1,073,307 $1,077,543 -$4,236 0%

Inf Technology $3,054,568 $2,924,224 $130,345 4%Mayor/Clerk $629,864 $600,716 $29,148 5%

Council $198,394 $212,744 -$14,350 -7%Planning $1,000,720 $955,038 $45,682 5%

City Attorney $1,376,355 $1,349,415 $26,940 2%Police $22,380,462 $21,025,639 $1,354,823 6%

Communications $1,181,408 $1,244,869 -$63,461 -5%Fire & Rescue $15,628,426 $14,733,471 $894,955 6%Dept of Transp $11,980,760 $11,729,333 $251,427 2%

Inspections/Fac Maint $4,367,397 $4,713,581 -$346,184 -7%Emergency Mang $301,286 $375,460 -$74,174 -20%

Env Services $5,690,977 $5,686,519 $4,458 0%Agencies $10,034,408 $9,351,530 $682,878 7%

Pass-Thru Taxes (Educ) $9,407,500 $8,984,000 $423,500 5%Other $5,506,205 $4,939,317 $566,888 11%

Total $96,349,504 $92,172,521 $4,176,983

*1 Revised Budget As Of August 22, 2006

Projected Expenditures

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

General Fund Contingencies

2004 2005 2006 2007

Mayor’s Recommended Budget

$485,500 $0

$509,368

$569,551

Original Council Budget *

$464,504

$164,967

$552,015

TBD

* Disregards budget revisions during the year

Contingency

General Fund Highlights

Salary and Benefit Increases:$3,764,857

Employee Cost of Living Adjustment: 3.60%

Police, Fire and Exempt Employees: 3.00% (2 steps)

City Employees: 1.50% (1 step)

Retirees Cost of Living Adjustment: $110,000

Highlights

Highlights

Call Center Manager: $60,000

3 Call Center Employees:$120,00

0

Equipment/Furniture/Training: $50,000

311 Call Center:$230,

000

Highlights

Office of Economic Development:

$120,000

Two Inspectors: $80,000

Code Enforcement Police Officer: $47,000

Neighborhood Planner: $46,000

Highlights

Stillman Blvd Maintenance Contract:

$50,000

Skyland Blvd Maintenance Contract:

$50,000

Greenwood Cemetery:$20,00

0

West Highland Cemetery:$15,00

0 Minority Recruitment

Outreach: $5,000

HighlightsPARA: $3,075,000($250,000 Increase)

Tuscaloosa City Schools: $2,910,000($100,000 Increase) (Does not include Pre-K)

Tuscaloosa Library: $1,575,000($50,761 Increase)

Tuscaloosa County Health Department: $130,000 (GF)

($40,000 Increase - $15,000 GF / $25,000 W/S) $25,000 (W/S)

Sister City Commission: (0.25% of Lodging Tax)$84,643

West Alabama Chamber of Commerce:$25,000

(Cultural Arts Strategic Plan – One Time)

Focus on Senior Citizens: $75,000($10,000 Increase)

Temporary Emergency Services:$15,000

(One-time for new facility)

Other Increases - Pride, Symphony, WAAO

Highlights

Tuscaloosa Pre-K Initiative:$75,000

Tuscaloosa City Schools for Pre-K: $65,000University of Alabama for Pre-K: $10,000

Highlights

Public Safety

6.6% Pay Increase:$2,443,000

3 Additional Fire Apparatus Operators: $150,000

(Station 12 – Airport)

8 Additional Take Home Police Cars: $360,000

Highlights

HighlightsGeneral Fund

Equipment Included In

Mayor’s Recommendati

on

Equipment type items that exceed

$5,000 per item areclassified as equipment

General Fund Equipment$217,000 Inspections/Fac Maint

$416,000Environmental Services

$339,547 Fire

$342,500Information Technology

$13,000 Municipal Court

$10,000 Planning

$1,401,467 Police

$699,000 TDOT

$64,000Emergency Management

Water and Sewer Fund

The Water & Sewer Fund Budget Must… Include estimates of receipts, total

debt service, and expenses

Be an “approximate” balanced budget where expenses (less budgeted total debt service) do not exceed revenues

Budget Requirements

Projected Revenues

Charges for Services

Revenue Projections FY2007 FY2006*1 New Revenues

Water Sales $16,000,000 $15,500,000

500,000

Sewer Sales $11,750,000 $10,200,000 1,550,000

Sale of Riverview Plant 0 2,000,000 (2,000,000)

Other $2,179,500 $2,283,000 (103,500)

Total $29,929,500 $29,983,000 ( 53,500)

RevenuesProjections FY2007 FY2006*1

NewRevenues % Chg

Use of Property $13,200 $14,000 ($800) (0)

Charges for Services $29,929,500 $29,983,000 ($53,500) (0)

Interfund Transfer $54,534 $49,330 $5,204 0

Encumb Carry Over $0 $167,045 ($167,045) (1)

Total $29,997,234 $30,213,375 ($216,141)  

*1 Revised Budget As Of August 22, 2006

Projected Expenses

Division FY2007 FY2006*1 New Exp % Chg

Superintendent $337,210 $108,899 $228,311 210%

Water Works Office $2,235,080 $2,100,578 $134,502 6%

Lakes $610,411 $576,034 $34,377 6%

Waste Water Treatment $5,993,000 $6,138,167 ($145,167) -2%

Depreciation $6,603,091 $6,002,810 $600,281 10%

Ed Love Filter Plant $3,273,927 $3,118,825 $155,102 5%

Distribution $2,861,693 $2,776,878 $84,815 3%

Debt Service $10,497,496 $8,765,222 $1,732,274 20%

Other $505,500 $2,584,719 ($2,079,219) -80%

Total $32,917,408 $32,172,132 $745,276

*1 Revised Budget As Of August 22, 2006

Water and Sewer Fund Highlights

Departmental Budgets

Department budget requests to the Mayor exceeded anticipated revenue by $4.9 million for FY 2007

Salary, wage and fringe benefits for employees increased by approximately $426,000 over the FY 2006 Revised Budget as of August 22, 2006

Water/Sewer Engineer Division$226,000

Water Distribution Engineer $80,000Sewer Distribution Engineer $80,000Vehicles $34,000Secretary $32,000

Highlights

Water & Sewer Equipment

$34,000 Superintendent

$48,000 Lakes

$243,650Waste WaterTreatment Plant

$18,000Ed Love Filter

Plant

$145,000 Distributions

Water & Sewer Fund Equipment

Included In Mayor’s

Recommendation

Equipment type items that exceed

$5,000 per item areclassified as equipment

Highlights

HighlightsWATER AND SEWER DEBT SERVICE BUDGETS

  2007 2006

1996 SRF Sewer $159,905 $158,855

1998 SRF Sewer $671,688 $671,687

2000 Traditional Water $0 $929,079

2002 SRF Refunding $4,618,120 $4,567,320

2003 SRF Sewer $852,088 $610,716

2004 SRF Water $450,315 $0

2005 Traditional Water $1,829,780 $1,827,565

2006 Traditional Water $1,915,600 $0

Total Debt $10,497,496 $8,765,222

Council Finance CommitteeTentative 2007 Budget Schedule Paul Garner Conference Room

Thursday, September 7th3:00 to 5:00 Agencies

Tuesday, September 12th10:00 to 11:00 Vehicles/Equipment (Jimmy Sexton)

11:00 to 11:30 Computers/IT (Doug Taylor)11:30 to 12:00 Employees (Sedell Bullard)

Thursday, September 14th3:00 to 5:00 Water/Sewer Fund Budget (Maurice

Sledge)Tuesday, September 19th

10:00 to 12:00 General Fund Dept. Line Items & OtherThursday, September 21st

3:00 to 4:00 Revenues (Linda McKinney)4:00 to 6:00 Finalize Budget

Questions…

This Summer, I spent well over a hundred hours preparing my first budget recommendation to the Council. I realize how much I have enjoyed learning about the detail workings of our departments and agencies. I encourage all Council members to be actively involved in the Finance Committee’s budget meetings throughout the month of September.

I would like to thank the Finance Department staff, the City’s department heads and representatives of our City funded agencies for their contributions to my report.

Thank You!

Thank You Budget Team!Carol Muir, Accountant

Thank You Budget Team!Tracy Croom, Associate Finance

Director

Thank You Budget Team!Mike Wright, Finance

Director