v4 5-20-14 council action on 2014-15 proposed budget · government relations office government...

Council Action on 2014-15

Proposed Budget

Overview of Balanced Approach

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• Shared solutions save City services • 1% revenue• 1.6% concessions• Continued investment in employee

benefits

• Preserve management capacity and investment in infrastructure

• Efficiency efforts continue

• Zero service cuts

• Resume Police Officer & Firefighter hiring

Overview

Budget Process

Request for Information

Proposed Budget

Manager’s Next Steps

Action Requested

2014-15 Community Budget Process

Preliminary General Fund Status & 5-Year Forecast

January 28

Public Safety Funds Update February 25

Trial Budget March 25

Community Budget Hearings April

City Manager’s Proposed Budget May 6

Council Budget Decision May 20

Legal Budget Adoption Actions June & July

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Overview

Budget Process


Proposed Budget


Action Requested

Responses to Council

Information Requests

Public Information Office

Central Public Information Office including PHX11 (e.g. City Council, Neighborhood Services, Budget & Research, City Clerk)

$2,072,000*

Citywide Public Information staff in other departments(e.g. Police, Fire, Streets, & other General Fund departments)

$1,131,000

Total $3,203,000

*Funded by General Fund cable licensing fees totaling $9.5M

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Overview

Budget Process


Proposed Budget


Action Requested


•Develops and maintains phoenix.gov

•Broadcasts Council meetings

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Overview

Budget Process


Proposed Budget


Action Requested


•Communicates information to community on services and events

•Updates public on important changes

•Responds to public records requests (state law)

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Overview

Budget Process


Proposed Budget


Action Requested


•Assists with economic development through promotional and marketing materials

•In 2012-13, PIO’s Marketing Partnership Program generated over $500,000 in General Fund

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Overview

Budget Process


Proposed Budget


Action Requested

Government Relations Office

Government Relations Office Expenses

$1,401,000

•City, county, regional, state, tribal, national relations

•2012-13 federal grant awards totaled $117,414,120:• SAFER• COPS• CDBG• Transit funds• HOME funds• Others

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Overview

Budget Process


Proposed Budget


Action Requested


•Promote fair share in federal allocations: • Human services• Head Start• Housing• CDBG• Biomedical industry & medical education

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Overview

Budget Process


Proposed Budget


Action Requested


•Track hundreds of bills annually that may impact community services or City revenues, or result in unfunded mandates

•Communicate to state legislators on potential legislative impact to Phoenix residents

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Overview

Budget Process


Proposed Budget


Action Requested

City Memberships

$542,000 in General Fund City membership expenditures, largest:

• Maricopa Association of Governments (MAG)

• League of Arizona Cities &Towns

• National League of Cities (NLC)

• U.S. Conference of Mayors

• Provide state & national presence in critical policy areas for 6th largest city in U.S.

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Overview

Budget Process


Proposed Budget


Action Requested

City Memberships

•MAG- federal & regional transportation funding and air quality

• from 2010-11 to 2014-2015, Phoenix received about $117M in grants through MAG

•NLC- With 19,000 cities/towns, advocates for Phoenix in Washington D.C. on important legislation and to oppose unfunded mandates

•AZ League- 91 cities/towns, represents legislative interests, provides technical & legal assistance, and coordinates shared services

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Overview

Budget Process


Proposed Budget


Action Requested

Travel and Conferences

2014-15

• Police and Fire account for $103,000

• Largest single use is Police at $69,525 for crime investigations and needed training

71%

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Overview

Budget Process


Proposed Budget


Action Requested

Sale of Excess City-Owned Property

Several City-owned properties actively marketed:

• 12th Street and Greenway Parkway

• 4056 East Washington

• 5347 North 19th Avenue

• 1124 West Camelback

• 139 East Jesse Owens Parkway

• 101 South Central Avenue (Barrister)

• 2222 W. Greenway parcel under contract; scheduled to close June 11

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Overview

Budget Process


Proposed Budget


Action Requested

Sale of Excess City-Owned Property

Additional Properties Under Review with Broker:

• $1.5M budgeted in 2014-15 to offset food tax reduction

• Additional $3.1M budgeted to offset Public Safety technology costs for Police RMS and Fire 911 System

• Land purchased w/ federal or enterprise funds not available to GF

• Several properties not marketable (strips of right-of-way, etc.)

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Overview

Budget Process


Proposed Budget


Action Requested

Vacancies

515 GF Civilian vacancies accounted for in:

• salary savings or work order charges

• contractors or temp agency staff

• efficiency reductions

• service reductions preserved in Proposed Budget

• temporary promotion or current hiring process

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Overview

Budget Process


Proposed Budget


Action Requested

Vacancies

• Remaining 92 positions provided in detailed report to Council- $6.8M, not including Library positions

• Service impact

• Includes:

• Police support

• 911 dispatchers

• Park rangers and parks maintenance

• Planning & development

• Victim advocacy

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Overview

Budget Process


Proposed Budget


Action Requested

Large Service Departments

Department 2007-08 Positions (FTE)

Proposed 2014-15 Positions (FTE)

Position Reductions

% Variance

Parks 1,696.6 1,072.8 (623.8) -36.8%

Human Services

525.4 319.0 (206.4) -39.3%

Streets 789.0 661.0 (128.0) -16.2%

Library 474.0 373.8 (100.2) -21.1%

Neighborhood Services

246.0 204.5 (41.5) -16.9%

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Overview

Budget Process


Proposed Budget


Action Requested

Internal Services Departments

Department 2007-08 Positions (FTE)

Proposed 2014-15 Positions (FTE)

Position Reductions

% Variance

Finance 325.5 228.0 (97.5) -30.0%

City Clerk 130.2 62.5 (67.7) -52.0%

Law 258.0 203.0 (55.0) -21.3%

HR 116.4 95.1 (21.3) -18.3%

City Auditor 38.5 25.5 (13.0) -33.8%

Equal Opportunity 39.0 26.0 (13.0) -33.3%

Central PIO 31.0 18.6 (12.4) -40.0%

B&R 34.0 24.0 (10.0) -29.4%

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Overview

Budget Process


Proposed Budget


Action Requested

Staffing Reductions

Nearly 3,000 positions eliminated since peak due to service reductions, efficiencies and organizational review

2,953

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Overview

Budget Process


Proposed Budget


Action Requested

Proposed 2014-15 Budget

Where We Began

$37.7 Million Gap

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$37.7 Million deficit assumed current costs to continue labor contracts & no new revenue

Overview

Budget Process


Proposed Budget


Action Requested

Community Input Matters

• More than 20 Budget hearings

• 1,700 comments received through hearings, emails, and calls

• Main Message:

“City Services are too valuable to lose”

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Overview

Budget Process


Proposed Budget


Action Requested

Proposed Budget

• Reduce Expenses through Efficiencies: $6.5M

• Defer Costs/Use Alternative Fund Sources: $3.7M

• Reduce Employee Cost Growth: $16.5M

• Add Revenue: $11.0M

• Reduce Services: $0

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Overview

Budget Process


Proposed Budget


Action Requested

Balanced Budget- No Service Cuts

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Overview

Budget Process


Proposed Budget


Action Requested

General Fund Revenue

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GF Revenue Category2014-15 Estimate(Millions)

% Change

Primary Reason or Rationale for Difference

Local Taxes $433.9 2.4%

Continued moderate improvement in sales tax collections expected, and food sales tax expiring 4/1/15

State-Shared Income Tax

175.2 8.4%Already known income tax collections (from FY 12/13)

State-Shared Sales Tax

135.5 5.9%Continued moderate improvement in state sales tax expected

State-Shared Vehicle License Tax

54.3 4.0%Continued moderate vehicle sales expected

Primary Property Tax 138.0 (3.4%) Removal of torts

User Fees & Non-Taxes

121.3 1.7%Includes planned sales of city owned vacant land/buildings

Overview

Budget Process


Proposed Budget


Action Requested

Proposed Added Revenue

$11M ongoing revenue assumed from among the items posted on City Website:

• Added excise tax of $1.50 per month for residential municipal service bills

• Bag fee

• Parking meter demand-based pricing

• High demand mountain parks parking fee

• Annual recreation pass increase

• Annual senior center pass increase

• Sports team athletic field usage increase

• New electricity fee for athletic field lighting28

Overview

Budget Process


Proposed Budget


Action Requested

Employee Costs

• Proposed budget includes across the board (1.6%) reduction to cost of employee compensation

• Significant investment in City employees through:

• Pension in General Fund up $18M this year and $61M over 5 years

• Health insurance in General Fund up $3M this year and $19M over 5 years

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Overview

Budget Process


Proposed Budget


Action Requested

Key Services Preserved

• Fire Prevention services

• Fire crisis response

• By September 1, complete civilianizing Police Central Booking, returning 15 Police Officer positions to patrol/investigations

• Police Air Support

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Overview

Budget Process


Proposed Budget


Action Requested


• Senior centers

• Telephone Pioneer, Pierce, & Holiday Pools

• Swim and dive teams at all pools

• All 13 Community and Recreation Centers, including S. Phoenix Youth Center

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Overview

Budget Process


Proposed Budget


Action Requested

• Community Prosecutors

• Courtrooms

• Graffiti Busters

• Neighborhood code enforcement


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Overview

Budget Process


Proposed Budget


Action Requested

• Funding for homeless shelter

• Funding to food banks


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Overview

Budget Process


Proposed Budget


Action Requested

• Annual arts grants funding

• Necessary auditing, tax compliance enforcement and important internal services


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Overview

Budget Process


Proposed Budget


Action Requested

Public Safety Hiring

Without Balancing Plan-Estimated Ending Balances

($19)

($47)

($75)

($104)

($132)

($160)

($189)($210)

($180)

($150)

($120)

($90)

($60)

($30)

$0

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Combined Ending Public Safety Funds Balances- Without Council Action-

(Mil

lio

ns)

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Overview

Budget Process


Proposed Budget


Action Requested

Estimated Ending Balances

($37)

($28)

($4)

$11

($50)

($30)

($10)

$10

2012-13Actual

2013-14Estimate

2014-15Projected

2015-16Projected

Revised Estimated Public Safety Funds Ending Balances

(Mil

lio

ns)

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Overview

Budget Process


Proposed Budget


Action Requested

Police Officer Hiring Plan Advanced

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Police Academy Start Dates

Number of New Hires

March/April 2015* 15July 2015* 15October 2015* 25January 2016 25April 2016 25July 2016 25October 2016 25January 2017 25April 2017 25July 2017 25October 2017 25January 2018 25April 2018 25

*Without compensation reductions of -1.6% in 2014-15 and -0.9% in 2015-16, Police Officer hiring was planned to resume in the final quarter of calendar year 2015

Overview

Budget Process


Proposed Budget


Action Requested

305 total projected new hires through April 2018

Firefighter Hiring Plan Advanced

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Number of Firefighter Positions

SAFER Grant Expiration

DateHire Date

28 10/17/2014 N/A

28 12/27/2014 N/A

7 N/A March/April 2015

42 2/27/2016 N/A

•Balancing enables Public Safety Funds to absorb expiring SAFER grants for 98 Firefighters.

•Concessions enable hiring of 7 additional Firefighters in March/April 2015.

Overview

Budget Process


Proposed Budget


Action Requested

Management Next Action Steps

Comprehensive Organizational Review (CORE)

Assistant City Manager will lead assessment of:

• Span of control, layers, & managerial-employee ratios

• Vacancies and positions reallocation needs

• Consolidate efforts among departments

• Innovate in service delivery

• Labor-management efficiency teams

• Reporting department budgets regularly

• Overtime usage

• New revenue generation ideas

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Overview

Budget Process


Proposed Budget


Action Requested

Cost Recovery Policies

Review City's cost recovery of fees & charges

• Examine factors that determine extent that user fees recover or offset costs for a particular City service, such as:

• Public safety (e.g. event traffic control)

• Community service impact (e.g. pools)

• Economic impact (e.g. special events)

• Fairness (e.g. residents and non-residents)

• Income level of main population served

• Other factors

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Overview

Budget Process


Proposed Budget


Action Requested

City Manager Work Groups

City Manager charged Finance, Budget & Research and Human Resources to review citywide opportunities for improvement/savings for:

• Revenue collection processes

• Health care cost containment

• Worker’s compensation costs

• Police/Parks special event costs

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Overview

Budget Process


Proposed Budget


Action Requested

Meet & Confer Ordinance Review

Review of Meet & Confer Ordinance

• Recommend process improvements to better align the dates in the ordinance with the budget process for future contracts

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Overview

Budget Process


Proposed Budget


Action Requested

Next Steps

Summer 2014

• Staff Review

Fall/Winter 2014

• Council Review and Action

In time for 2015-16 Budget Process

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Overview

Budget Process


Proposed Budget


Action Requested

Conclusion

• Shared solutions save City services • 1% revenue• 1.6% concessions• Continued investment in employee benefits

• Preserve management capacity and investment in infrastructure

• Efficiency efforts continue

• Zero service cuts

• Resume Police Officer & Firefighter hiring

46

Overview

Budget Process


Proposed Budget


Action Requested

Action Requested

Staff recommends approval of the 2014-15 Proposed Budget:

• Preserve City Services

• Advance Police and Fire Hiring

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Overview

Budget Process


Proposed Budget


Action Requested

v4 5-20-14 council action on 2014-15 proposed budget · government relations office government...

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