1 Volume one | Budget Summary City of SCottSdale arizona adopted fy 2010/11 Budget City of Scottsdale, Arizona Adopted FY 2010/11 Budget Budget Summary - Volume One City Council W.J. “Jim” Lane, Mayor Lisa M. Borowsky Wayne Ecton Suzanne Klapp Robert W. Littlefield Ron McCullagh Marg Nelssen Administrative Staff David Richert City Manager Brent Stockwell Senior Advisor David Smith City Treasurer Judy McIlroy Budget Manager Budget Review Commission Louis Schmitt, Chair Scott Miller, Vice Chair Bob Berlese Eric Borowsky Martha Ecton Michael Foster Donna Reagan TABle oF ConTenTS BuDgET SuMMARy - VOLuME ONE Mayor and City Council City Organization Budget Award Final Budget Transmittal Strategic Goals Division Directory 1 4 5 6 13 14 Overview Budget in Brief How to Use This Book Budget Development Process Comprehensive Financial Policies 16 20 22 34 Budget by Fund Fund Accounting - Fund Types General Fund Transportation Fund Preservation Fund Special Programs Fund Special Districts Fund Debt Service Fund Water and Sewer Fund Solid Waste Fund Aviation Fund Fleet Fund Risk Management Fund Healthcare Self-Insurance Fund Trust Funds Grant Funds CIP Funds Total Appropriation 42 43 63 71 75 89 93 101 109 115 121 129 135 141 145 149 153 Summary by Division Mayor and City Council City Attorney City Auditor City Clerk City Court City Manager City Treasurer - Finance and Accounting Administrative Services Community Services Economic Vitality Human Resources Information Technology Planning, Neighborhood &Transportation Public Safety - Fire Public Safety - Police Public Works Water Resources 157 159 165 169 173 177 181 185 189 195 199 205 209 213 217 223 227 Appendix Authorized Positions by Division Authorized Positions by Fund Budget Liaisons and CIP Liaisons Debt Service Expense Long-term Debt Outstanding Legal Debt Margins Privilege Tax Forecast Budget Calendar Historical Summary Demographics Acronyms . Glossary Budget Adoption Ordinance Property Tax Levy Ordinance 232 233 234 235 237 239 240 241 243 244 254 257 267 283 InTRoduCTIon MAyOR AND CITy COuNCIL I Mayor and City Council’s Mission The mission of the City of Scottsdale is to cultivate citizen trust by fostering and practicing open, accountable, and responsive government; providing quality core services; promoting long-term prosperity; planning and managing growth in harmony with the City’s unique heritage and desert surroundings; strengthening the City’s standing as a preeminent destination for tourism; and promoting livability by enhancing and protecting neighborhoods. Quality of life shall be the City’s paramount consideration. Mayor and City Council’s Broad Goals gOAL A: NEIghBORhOODS Enhance and protect a diverse family-oriented community where neighborhoods are safe, protected from adverse impacts, well maintained and actively revitalized. 1 gOAL E: PuBLIC SAFETy Protect Scottsdale residents and visitors by providing quality public safety and homeland security services. gOAL F: FISCAL & RESOuRCE MAN- gOAL B: ENVIRONMENTAL SuSTAINABILITy & PRESERVATION Preserve Scottsdale’s desert environment and natural resources, and honor the City’s heritage and character. gOAL C: TRANSPORTATION Strengthen the transportation system for the safe, efficient and affordable movement of people and goods. gOAL D: ECONOMy Position Scottsdale for short-and long-term economic prosperity by strengthening, expanding and diversifying our economic resources. AgEMENT Provide the means to reach other goals by ensuring Scottsdale is fiscally responsible and fair in its management of taxpayer money and City assets, and coordinates land use and infrastructure planning within the context of financial demands and available resources. gOAL g: OPEN AND RESPONSIVE gOVERNMENT Make government accessible, responsive and accountable so that decisions reflect community input and expectations. The Scottsdale City Council agreed to this statement of the Council’s Mission and Goals at an informal workshop on November 2, 2004. Mayor W. J. “Jim” Lane Mayor Lane began his first term as Mayor in January 2009. He previously served a term on the Scottsdale City Council from June 2004 until his election as Mayor. Mayor Lane served on the 2002 Scottsdale Fire & EMS Advisory Committee, which was convened to evaluate and make recommendations to the city regarding the desired level of fire and emergency medical services relative to cost. Mayor Lane currently represents the city as a member of the Flinn Foundation Arizona Bioscience Roadmap Steering Committee, as president of the Arizona Municipal Water Users Association, and as a member of the Executive Committee of the League of Arizona Cities and Towns and the Maricopa Association of Governments Executive, Regional Council and Transportation Policy committees. Mayor Lane serves on the Scottsdale Leadership Advisory Board and his community service also includes six years on the Scottsdale Paradise Valley YMCA Board of Management, where he chaired the 1999 Kids Campaign annual fund raising effort. He came to Scottsdale from New Jersey in 1973 to take a position with KPMG (Peat Marwick), an international CPA firm. He worked as a CPA for twenty years with five of those years in public accounting as a financial statement auditor. Mayor Lane has owned and operated businesses in construction, mining, computer technology, telecommunications and regional aviation. He currently owns the financial consulting company of Chatham Hill Group LLC. Mayor Lane is also an adjunct professor of business and accounting at Scottsdale Community College. He holds a bachelor’s degree in accounting from Saint Joseph's University in Philadelphia. InTRoduCTIon Councilwoman Lisa Borowsky Councilwoman Borowsky began her first term on the Scottsdale City Council in January 2009. An attorney, she has limited her practice to civil litigation since being admitted to the State Bar of Arizona in 1994. The majority of her legal career has focused on community association representation, specifically related to construction issues. She founded Borowsky Law in 2006, where she focuses on settlement-oriented representation. She has a broad background in real estate, real estate law and complex civil litigation and serves regularly as a court-appointed arbitrator. Before founding her firm, Councilwoman Borowsky worked with midsize, multi-state law firms primarily representing homeowners and associations dealing with defective construction issues. Prior to her career in law, she managed multi-family dwellings, working up the ranks in her family’s apartment business. She is a member of the Arizona State Bar, Construction Law Section, and the Maricopa County Bar Association. Councilwoman Borowsky is active in the Community Associations Institute and Arizona Association of Community Managers, which support and educate the community associations industry. She is a precinct committeeperson in the District 8 Republicans organization and has been active at the State Legislature as a proponent on various issues, both professionally and personally. A native of the Valley, Councilwoman Borowsky completed her undergraduate degree at Arizona State University and her law degree at St. John’s University School of Law. Councilwoman Borowsky’s personal time is dedicated to raising her beautiful daughter, Savannah, riding cutting horses, skiing, culinary arts and travel. She is involved in various charitable organizations, primarily focusing upon those assisting children. MAyOR AND CITy COuNCIL Councilman Wayne Ecton Councilman Ecton was elected to his first term on the Scottsdale City Council in March 2002 and was reelected to a second term beginning in June 2006. Councilman Ecton has represented Scottsdale for the past 2 years on the Board of the Regional Public Transportation Authority where he currently serves as vice chair. He also serves as an Arizona representative to the Western Municipal Conference and is a member of the Board of Directors of the World Affairs Council. Councilman Ecton serves on the Energy, Environment and Natural Resources National League of Cities Steering Committee, and was a member of the Scottsdale Convention and Visitors Bureau Board from July 2004 through June 2009. He previously served on the Big Box Ideas Team, which helped the city develop an ordinance to regulate the placement and appearance of “big box” retail buildings. A Scottsdale resident since 1996, Councilman Ecton has been a member of the Honorable Order of Kentucky Colonels since 1966. He is a member of the Friends of the McDowell Land Trust, the Scottsdale Center for the Arts, the Friends of the Library and the Scottsdale Historical Society. Councilman Ecton retired from Alcoa after 33 years in high-level financial management positions in the U.S. corporate headquarters and international and U.S. operating locations. He holds a bachelor’s degree in business. He was also a member of the Financial Executives Institute until his retirement. He and his wife Martha have been married for 42 years and have two grown children and four grandchildren. I Councilwoman Suzanne Klapp Councilwoman Klapp began her first term on the Scottsdale City Council in January 2009. She has 37 years of broad management experience in manufacturing, distribution and retail operations. She began her career with the Whirlpool Corp. where she worked for 14 years in a variety of staff and operations management positions in marketing, internal and external communications, human resources, production and material control. She was Whirlpool’s spokesman for the company’s headquarters in Benton Harbor, Michigan. Councilwoman Klapp owned a custom injection molding plastics plant for five years in Indiana before moving west. She joined the FastFrame custom framing franchise stores in 1997 as a retailer in the Los Angeles area. She moved to Scottsdale in 1998 and since has owned custom framing retail stores in Scottsdale and Phoenix. She personally manages the only store she currently owns, which is located in Scottsdale. She and her husband Tim continue to pursue several entrepreneurial interests. Councilwoman Klapp is active in the Scottsdale Area Chamber of Commerce, Rotary Club of Pinnacle Peak, Women of Scottsdale, and Legislative District 8 Republican Committee. She is a graduate of Valley Leadership and is on the Advisory Board of Scottsdale Leadership. Councilwoman Klapp serves on the MAG Domestic Violence Council and the City Council’s Audit and Economic Development subcommittees. She grew up in Evansville, Indiana and attended the University of Evansville where she obtained a Bachelor of Arts degree in English and Journalism and was Campus Editor of the school newspaper. She earned a Master of Business Administration degree from Southern Methodist University’s Cox School of Business in Dallas, Texas. 2 InTRoduCTIon 3 Councilman Ron McCullagh Councilman McCullagh began his first term on the Scottsdale City Council in June 2004 and was reelected to a second term that began in January 2009. Councilman McCullagh has lived in the Valley for 33 years and in Scottsdale for the past 17 years. His career experience includes six years as a university professor and 20 years as a businessman in the financial services industry. He is retired. He is past president of Valley Citizens League. He serves or has served on the boards of Scottsdale Leadership, Scottsdale Sister Cities, Scottsdale Rotary Club and the District 8 Republican Executive Committee. He also serves on the Scottsdale Unified School District Grants Subcommittee and the Scottsdale Area Chamber of Commerce Public Policy Committee. He is a member of Scottsdale Leadership Class XVIII, Arizona Town Hall and the Arizona Tax Research Association. He holds bachelor’s and master’s degrees in business from the University of North Dakota, and a doctorate in business administration from the University of Florida. He and his wife Mary Beth have been married for 43 years and have two children and eight grandchildren. In addition to family and civic duties, he enjoys tennis, sailing, hiking and golf. MAyOR AND CITy COuNCIL Councilman Robert Littlefield Councilman Littlefield was elected to his first term on the Scottsdale City Council in May 2002 and was reelected to a second term beginning in June 2006. Councilman Littlefield was the chairperson of the three-member City Council Budget Subcommittee for the FY 2006/07 and FY 2004/5 budgets. He currently serves as the chairman of the Audit Committee and the City Council Subcommittee on Water Issues. He is the founder and president of NetXpert Systems, Inc., a Scottsdale-based computer company. He also is a commercial pilot and flight instructor. Councilman Littlefield served 11 years as a board member in the Arcadia Scottsdale United Soccer Club and 20 years working with Scottsdale's kids as a youth soccer and baseball coach and soccer referee. He is a Joe Foss Institute Veteran Presenter and has been involved in a variety of other civic and professional organizations. A Vietnam combat veteran, Councilman Littlefield served in the U.S. Army from 1968 to 1970 and in the Arizona Army National Guard from 1971 to 1974. He is a member and former director of the Arizona Software & Internet Association. Other memberships include the Arizona Pilot's Association, Aircraft Owners and Pilots Association, National Federation of Independent Business, American Legion, Kiwanis Club and Civitan. Councilman Littlefield also is an Eagle Scout. He holds a bachelor's degree in engineering from Arizona State University. He and his wife Kathy have been married 37 years and have two grown children. I Councilman Tony Nelssen Councilman Tony Nelssen passed away in office on May 26, 2010. He had served on the Scottsdale City Council since June 2006. Councilwoman Marg Nelssen Councilwoman Marg Nelssen was appointed to the Scottsdale City Council in June 2010 to serve the remainder of her late husband’s term. Councilwoman Nelssen is an accomplished artist, educator, and civic advocate who has called Scottsdale home for 23 years. A native of Rochester, New York, her appreciation of the Sonoran desert took Nelssen to Arizona State University where she earned a bachelor of architecture degree and worked in the field of architecture for several years. In 1996, Tony and Marg Nelssen founded The Great Sonoran, a diverse group advocating innovative, site specific, and climate sensitive architecture suited to the Sonoran Desert. Scottsdale has derived much of its Sensitive Design Guidelines from those developed by ‘The Great Sonoran.’ Nelssen has been involved with a wide range of city efforts including the Desert Foothills working group and overlay, local area street circulation plans, metal screen design for local telecommunication boxes, rural road lighting and trail designs, and scenic drive guidelines. She was also involved in the first successful improvement district in Arizona set up specifically to bury 69-kilovolt power lines in the north Scottsdale area, and the first, with her husband Tony, to ride their mules on the new trails of Pinnacle Peak Park. She currently creates and teaches art at several Scottsdale art centers and galleries. She is a juried member and volunteer of the Sonoran Arts League and former board member of the Greater Pinnacle Peak Association. Councilwoman Nelssen lives in the Desert Foothills area of Scottsdale with her son Ian, daughter Hannah, four dogs, four mules and a horse called Ellie. InTRoduCTIon I CITy ORgANIzATION Citizens of Scottsdale Scottsdale City Council Boards, Commissions, Task Forces City Attorney City Auditor City Clerk City Manager Assistant City Manager Administrative Services Community Services Economic Vitality Human Resources Information Technology City Treasurer Presiding Judge Finance & Accounting City Court Planning, Neighborhood & Transportation Form of Government and organization The Mayor and six City Council members are elected at large on a nonpartisan ballot for a four-year term. The City Council appoints the City Manager, who has full responsibiloity for carrying out Council policies and administering City operations. The City Manager, in turn, appoints City employees and Division Managing Directors under service procedures specified by the Charter. 4 Public Safety Police & Fire Public Works Citizens of Scottsdale Mayor and City Council City Manager Divisions Water Resources InTRoduCTIon BuDgET AWARD FOR FISCAL yEAR 2009/10 BuDgET The government Finance Officers Association of the united States and Canada (gFOA) presented a Distinguished Budget Presentation award to the City of Scottsdale, Arizona for its annual budget for fiscal year beginning July 1, 2009. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operating guide, and as a communications device. 5 This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to the gFOA to determine its eligibility for another award. BuDgET AWARD I InTRoduCTIon Date: To: CC: From: Subject: September 3, 2010 Mayor and City Council; Budget Review Commission Charter Officers, Executive Committee David E. Richert, City Manager Final Adopted Fy 2010/11 Operating Budget and Capital Improvement Plan I am pleased to provide you with this copy of the Final Adopted Fy 2010/11 Operating Budget and Capital Improvement Plan for your review. This budget is the result of considerable collaboration between staff, the Budget Review Commission and the City Council. This letter highlights some issues we considered and actions we took in preparing the proposed budget, as well as changes made prior to final budget adoption. The final budget as approved sets the maximum expenditure limit at $1,287.3 million. This is up slightly from prior 2009/10 adopted of $1,144.3 million, but down considerably from $1,428.8 million adopted in 2008/09. Of this amount, the largest category is $677.7 million for capital projects, which includes $440.5 million of re-budgeted projects from prior years. The operating budgets are $486.5 million, when you remove the Internal Service Fund offsets of approximately $35.7 million. There is also $107.9 million in contingencies and reserves. Within the operating budgets, the largest category is the general and Transportation Funds with total spending of $235.0 million. Of that, fifty percent ($115.6 million) of the general Fund is spent on Public Safety – Police, Fire and the City Court. The Fy 2010/11 Operating Budget is a maintenance budget. In preparing the budget, staff was asked to maintain or reduce expenditures from the prior year final approved budget. Increases were only allowed where contractually required or prudent based on changed conditions. Even with those guidelines, the initial difference between forecasted revenues and current year expenditures (including contractual cost increases) was $18.0 million. FINAL BuDgET TRANSMITTAL I To balance the budget, we utilized several major approaches: 1.Eliminated or reduced lower priority expenditures and services, resulting in a reduction of $8.3 million. Some (but not all) of these changes are structural reductions that will be maintained in future years. 2. Applied a portion of the beginning unreserved fund balance as a source, resulting in a one-time revenue of $4.2 million. 3. Transferred excess health Care Trust Fund re serves back to source funds and employees, resulting in a one-time revenue of $3.2 million, and 4. Reduced the contingency reserve to a level consistent with historic average uses, resulting in a one-time revenue of $2.5 million. Each of these strategies is discussed in more detail below. 1. GeneRAl Fund STAFF And CoST ReduCTIonS We eliminated two full-time equivalent (FTE) positions: vacant public affairs manager in the Information Technology Division; and two vacant part-time secretaries in Planning, Neighborhoods and Transportation. In addition, it was agreed to keep 3.5 FTEs as authorized positions, but remove their funding for Fy 2010/11 and Fy 2011/12. These vacant positions are a human Resources representative, an Associate City Judge and a Court Services Representative from the City Court, and a part-time Victim Services Representative from the City Attorney’s Office. There were also reductions of 1.74 FTEs in Community Services that reduced part-time staff hours within aquatics, youth and adult sports, and libraries. In addition, further reductions to personnel costs, contracted services, printing, mailing, supplies and training were made within multiple division budgets resulting in savings of $1.6 million. Overall, the Fy 2010/11 Budget includes a staffing level of 2,546.47 FTEs, which is down 261.37 positions since the Fy 2008/09 Adopted level of 2,807.84 FTEs. Below is a table summarizing FTE changes over the last fiscal year. 6 InTRoduCTIon SuMMARY oF FTe ChAnGeS Fy 2009/10 Adopted FTEs Fy 2010/11 Adopted FTEs: Eliminations Additions Net Reduction Fy 2010/11 Adopted FTEs Reduction 2,607.69 (73.72) 12.50 (61.22) 2,546.47 -2.3% Positions were added in Finance and Accounting (2.0), human Resources (.5), Fire (1.0), and Water Resources (9.0 due to a new treatment facility coming online). 7 IN LIEu TAx AND WATER CONSERVATION – In response to direction from the City Council to eliminate the in lieu tax payments made by Enterprise Funds to the general Fund, we proposed reducing the amount charged by one-third each year until eliminated. The table below shows the level of in lieu tax payments in Fy 2009/10 and shows the reductions over Fy 2010/11 and 2011/12 until eliminated in Fy 2012/13. 2009/10 $2.67 M 2010/11 $1.75 M I FINAL BuDgET TRANSMITTAL 2011/12 $0.88 M 2012/13 $0.00 M The 2010/11 reduction will be offset through $700,000 in water conservation efforts designed to reduce municipal water consumption into the least expensive of the City’s volume-based pricing tiers. Customers may notice this reduction at City facilities where fountains and water features may be shut-off (or their use curtailed); turf areas may be replaced with low-water-use desert landscaping, and annual flowers may be replaced with perennial, desert-adaptive plants. TRANSPORTATION FuNDINg - Dedicated transportation sales taxes have declined $5.6 million since Fy 2006/07 and $1.4 million in lottery tax distributions were swept by the state legislature. The draft budget proposed a $3.1 million reduction in transit funding. During the budget review process, considerable public input asked that funding be restored on Route 76, which provides service on Miller Road. To address this, staff identified an option to increase the general Fund transfer to the Transportation Fund to $1.8 million – which limited transit reductions to just $1.4 million. These reductions will be made by changing peak hour frequencies for Route 72 (Scottsdale Road) and 81 (hayden Road) from 15 to 20 minutes, eliminating Route 66 (68th Street), and utilizing the City’s trolley contractor to operate Route 76 (Miller Road), with no fare collections until an analysis is completed. 2. uSe PoRTIon oF BeGInnInG unReSeRved Fund BAlAnCe Another strategy to help balance the budget is to use a portion of the beginning unreserved fund balance as a “source.” This is allowed by and consistent with state law (ARS 42-17151) which defines a “balanced” budget as follows: “Fix, levy and assess the amount to be raised from primary property taxation and secondary property taxation. This amount, plus all other sources of revenue, as estimated, and * shall equal the total of amounts proposed to be spent in the budget for the current fiscal year.” The following table outlines the changes in both the unreserved and reserved general Fund beginning fund balances over the past three years. This change only affects the unreserved fund balance – the reserved fund balance (“stabilization reserve”) remains at 10% of general and Transportation Fund expenditures – consistent with the City Council’s Comprehensive Adopted Financial Policies. unreserved Reserved 2008/09 Actual $12.01 M $28.13 M 2009/10 Forecast $10.77 M $25.86 M 2010/11 Estimate $ 6.31 M $25.87 M InTRoduCTIon 3. heAlTh CARe SelF-InSuRAnCe Fund ReSeRveS As part of a review of the appropriateness of all reserve funds, staff also reviewed the health Care Trust Fund reserves and found that they have increased to a level in excess of anticipated claims. Subsequent discussions with the Loss Trust Fund Board concluded that this amount could be lowered. The table below shows the level in past years and the proposed level for Fy 2010/11. 2007/08 $7.52 M 2008/09 $8.08 M 2009/10 $8.08 M 2010/11 $4.08 M The reduction will occur by not charging the City and employees for a set time period to draw down the reserve. During that period the health Care Trust Fund reserve will be reduced by $300,000 over two pay periods (to cover contributions normally made by employees) and $3.8 million over five pay periods (to cover the City’s contributions over those five pay periods). 4. MAInTAIn ConTInGenCY ReSeRve AT $2.5M Financial Policy 47 states that “Contingency Reserves to be determined annually will be maintained to offset unanticipated revenue shortfalls and/or unexpected expenditure increases. Contingency reserves may also be used for unanticipated and/or inadequately budgeted events threatening the public health or safety. use of contingency funds should be utilized only after all budget sources have been examined for available funds, and subject to City Council approval.” Staff reviewed the contingency fund levels and uses since 2005/06 and concluded that as long as staff and Council priorities are articulated and planned for as part of the budget process, that $2.5 million is a sufficient level for the general Fund contingency reserves. The following table shows levels over the past five years. Adopted Level Amount used I FINAL BuDgET TRANSMITTAL 2005/06 $2.7 M $650 K * $4.1 M added by Council during budget process ** used for Early Retirement Incentive Program 2006/07 $6.68 M* $4.75 M Capital Improvement Plan In addition to the operating budget, this proposed budget also includes a Five year Capital Improvement Plan (CIP). The expenditure level for the CIP is set at $677.7 million. here are some significant projects included in the proposed CIP which are planned to start in Fy 2010/11. • Advanced Water Treatment – Phase 4 (V0901) • granite Reef Watershed (F0201) • Scottsdale Road – Thompson Peak to Pinnacle Peak (S0311) • upper Camelback Wash Watershed (F0203) • Troon North Park (P0707) • Thomas Road Bicycle Lanes & Enhanced Sidewalks (T0606) In addition, here are some significant projects included in the proposed CIP which are expected to be completed in Fy 2010/11. • Soleri Bridge and Plaza (D0706) • Pima Road – Deer Valley to Pinnacle Peak (S0901) • Miller Road Sewer Phase 3 (V2101) • Cactus Fire Station 8 (B0803) • Eldorado Park Fire Station 1 (B0601) • McCormick Ranch Park Model Railroad Museum (P0712) Changes from the Proposed Budget There were some changes identified between the release of the proposed budget on April 15, and tentative budget adoption on May 17. Changes that impacted the Fy 2009/10 year End Forecast are noted below: • Early Retirement Incentive Program payment to the Arizona State Retirement System $431 K • year-End Savings due to lower than anticipated utility costs ($1.14 M) 2007/08 $ 2.94 M $854 K 2008/09 $5.0 M $3.7 M** 2009/10 $5.0 M $146.6 K 8 InTRoduCTIon • year-End Savings due to lower than anticipated Police Overtime costs ($350 K) Changes to the Fy 2010/11 Tentative Budget are noted below: • Additional savings due to the vacant Assistant City Attorney position ($123 K) • Decrease in State Shared Revenue to the general Fund ($31 K) • Increase in State Shared Revenue (highway user) add to Street Overlay Program $815 K • Increased revenues from Scottsdale unified School District for School Resource Officers $40 K • Add American with Disabilities Act (ADA) capital project $300 K • Move Water Resources position to Library $57 K 9 Changes to the Fy 2010/11 Five-year Capital Improvement Plan • Adjust amount of the T0704 Scottsdale Road and Bicycle Improvements project $204 K Changes Prior to Final Budget Adoption Prior to final budget adoption, three changes were made at Council direction. The first, based on a recommendation from the Budget Review Commission, the general Fund transfer to the Transportation Fund was increased to $1.8 million, which limited necessary transit reductions to $1.4 million as previously discussed. In addition, the proposed increases of 2.5 percent for water user fees and 3.0 for sewer user fees were not accepted by City Council. Finally, the contingencies/reserves amount was modified because there was excess budget authority in the Capital Improvement Plan contingency for Bond 2010, and there was insufficient budget authority to utilize the general Fund stabilization and other reserves if needed. Providing this amount within the maximum expenditure limit gives greater flexibility to the City Council. In any event, all uses require City Council approval prior to expenditure. FINAL BuDgET TRANSMITTAL I FY 2011/12 Approaches As noted throughout the budget process, unless the economy rebounds quickly, there will be another budget deficit to close for Fy 2011/12. At time of budget adoption, this gap was estimated at $28.4 million. Resolving next year’s budget gap requires a combination of both good budget management in the current year and implementing – as soon as practical – a series of changes in services and structures that will result in savings for next year and beyond. From a management perspective this effort is focused on these goals moving forward: 1. Continue to provide high priority services, at a high level of quality, at the lowest practical cost. 2. Consider reducing costs, raising revenues, or eliminating low priority services. 3. Involve impacted customers and employees in the process – before recommendations are made. 4. Retain our high-quality, committed workforce of experienced employees. In light of these goals, I have implemented these five steps to manage the current year budget and plan for next year’s budget. 1. I have asked division executive directors to plan to spend no more than last year’s actual expenses (or the current approved budget, whichever is less). 2. I have asked division executive directors to prepare a plan for how they could restructure their division to reduce costs further. I have asked that, at this time, any staff reductions occur through natural attrition (resignations and planned retirements). 3. To that end, I am also personally reviewing all vacant positions before authorizing recruitments, to see if we can avoid filling the position by redeploying existing employees. 4. I am also recommending that the ending fund balance from last fiscal year, which is anticipated to be larger than forecast due to employees’ efforts to save money, be applied to next year’s deficit. 5. Finally, I have asked six management teams to look at a number of key issues prepare a consolidated report of recommendations by the end of September 2010. InTRoduCTIon FINAL BuDgET TRANSMITTAL I Again, I am pleased to present the Final Fy 2010/11 Budget Book to you. This book could not have been assembled without the diligent work of my staff in the City Manager’s Office, particularly Brent Stockwell, Senior Advisor. Thanks to the City Treasurer David Smith, Budget Manager Judy McIlroy and Senior Budget Analyst Monica Staats, as well as the Executive Directors and their Budget Liaisons throughout the organization. For their work on the Capital Improvement Plan and on the Bond 2010 proposals, I want to specifically thank Public Works Executive Director Dan Worth, City Engineer Derek Earle and Senior Budget Analyst Sylvia Dlott. Finally, my particular appreciation goes to graphic Design Coordinator Rick Forgus, who is primarily responsible for the improved appearance of this document, and Systems Integrator Amy Foster who designed most of the reports. 10 Sincerely, David E. Richert, City Manager InTRoduCTIon Date: To: CC: From: Subject: I April 1, 2010 Mayor and City Council; Budget Review Commission Charter Officers, Executive Committee David E. Richert, Acting City Manager Proposed FY 2010/11 Operating Budget and Capital Improvement Plan I am transmitting the Proposed FY 2010/11 Operating Budget and Capital Improvement Plan for your review. This budget is the result of considerable collaboration with the Interim City Treasurer, other Charter Officers, and members of the Executive Committee. This letter highlights some issues we considered and actions we took in developing this budget. 11 PROPOSED BuDgET TRANSMITTAL Next year will be one of transition – not yet a rebuilding year, but neither a year of downsizing. While this will be the third straight year of declining revenues, there are some positive signs of recovery. Our challenge is to maintain important services, while focusing on new initiatives to position Scottsdale for success when the economy recovers. We will continue to evaluate expenditures and services to ensure they are responsible and sustainable. It is also a year of transition in staffing. Both the City Manager and Treasurer are currently filled on an interim basis, and we have had other changes in key leadership positions. At the beginning of the current year, we implemented a 10 percent workforce reduction and a 20 percent reduction in total appropriations. The result is fewer employees doing more work with fewer resources. To the employees’ credit, we have maintained a high level of service to our customers. When doing more with less, prioritization becomes even more important. As a result, in planning for FY 2010/11, we listened to the City Council, advisory bodies and the community, and worked to include their feedback in the budget. We also created a list of key priorities consistent with General Plan goals (see page 1). The initial difference between forecasted revenues and current year expenditures, including contractual cost increases, was $18.0 million. To balance the budget, we utilized several major approaches: 1) Eliminated or reduced lower priority expenditures and services $8.3 M 2) Applied beginning unreserved fund balance (prior year surpluses) as a source - $4.2 M 3) Transferred excess Health Care Trust Fund reserves back to source funds - $3.2 M 4) Reduced contingency reserve to level consistent with historic average uses - $2.5 M Many of the service changes reflect imposed expenditure reductions on the Transportation Fund to eliminate what would otherwise require a General Fund subsidy. Dedicated transportation sales taxes have declined $5.6 million since FY 2006/07 and the State Legislature has swept lottery tax distributions for transit in the amount of $1.4 million. With all these actions, our proposed General Fund Budget for FY 2010/11 develops a surplus of $365,000 while maintaining stabilization reserves and contingency reserves of $28.4 million. While we have used prior year surpluses to partially offset an imbalance between revenues and expenses, we are mindful this is a strategy that will not be available in future years. We have not just focused on providing a proposed budget without a deficit. We have reviewed this proposed budget with an eye to the future, because if the economy does not rebound quickly, difficult decisions will be needed to balance future years’ budgets. We are developing contingency plans, will work to get community input, and bring additional changes forward throughout FY 2010/11. If you have questions, or need additional information, please let me know, or contact Brent Stockwell, in my office. Sincerely, David Richert Acting City Manager City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 12 InTRoduCTIon PRESERVE MEANINGFUL OPEN SPACE • Acquire 2,000-acre Preserve parcel from Arizona State Land Department (ASLD) • Update the Preserve Strategic Acquisition Plan including funding, land values, priorities, options, etc. • Finalize agreement with ASLD regarding trail maintenance and operations for the northern Preserve • Explore Scottsdale participation in Papago Park, including possible annexation of Barnes Butte area • Start construction of Troon North Park and McCormick-Stillman Railroad Park improvements 13 ENHANCE NEIGHBORHOODS • Complete construction of Cactus Acres Fire Station 8 (Cactus Rd. & 96th Street) and Eldorado Park Fire Station 1 (Miller & Mc Dowell Roads) to enhance response-time performance and service delivery to those neighborhoods • Secure site for Desert Foothills Fire Station 13 to improve services provided in area • Continue efforts to reduce property crimes and crimes against persons • Provide options for noise mitigation, including consideration of a noise ordinance • Develop and implement neighborhood planning program as a complement to the General Plan 2010 STRATEgIC gOALS AND KEy DELIVERABLES SEEK SUSTAINABILITY • Prepare, consider and approve balanced budget for FY 2011/12 • Conduct citywide election in November 2010 to select three Council members, as well as questions on bond projects and charter amendments • Assist City Council in identify key projects needing bond funding, conduct bond election, and begin bond program if approved by voters. • Complete study and make decision regarding Arizona American Water • Enhance Water Conservation and Wastewater Pretreatment programs • Expand the use of alternative and renewable fuels in City facilities and fleet operations SUPPORT ECONOMIC VITALITY • Complete the planning and design phase for the Desert Discovery Center • Implement bed tax increase and associated changes in funding allocations • Create local resident destination marketing program (include Preserve, WestWorld, TPC, Giants, etc.) • Consider and begin implementation of Downtown and McDowell Road Task Force recommendations • Implement business visitation program to aid in retention and expansion of existing businesses • Complete comprehensive citywide economic analysis, and assess economic development programs I ADVANCE TRANSPORTATION • Award and construct improvements to Pima Road from Thompson Peak to Pinnacle Peak • Complete in house Design Concept Report for the Airpark Ring Road, and Phase II Design RFP • Make substantial progress on ARRA funded projects (Goldwater underpass, Crosscut Canal trail, etc.) • Construction underway on Scottsdale/ McDowell Transit Center VALUE SCOTTSDALE'S UNIQUE LIFESTYLE AND CHARACTER • Work with Working Group to review and seek public input on the 2011 General Plan Update • Process major general plan amendments or Greater Airpark and Southern Scottsdale area plans • Complete design and construction of Soleri bridge project • Construction underway on Scottsdale Road Streetscape The Strategic Goals are the same as the chapter headings from the voter-approved 2001 General Plan and are also the guiding principles developed through the CityShape 2020 process. The key deliverables have been identified by City staff and placed under the appropriate Strategic Goal. More information about the General Plan and CityShape 2020 may be found at: http://www.scottsdaleaz.gov/generalplan InTRoduCTIon DIVISION DIRECTORy Mayor W.J. “Jim” Lane (480) 312-2433 Scottsdale City Council Vice Mayor Lisa Borowsky Councilman Wayne Ecton Councilwoman Suzanne Klapp Councilman Robert Littlefield Councilman Ron McCullagh Councilwoman Marg Nelssen (480) 312-2550 City Attorney Bruce Washburn • Civil • Prosecution • Victim’s Services (480) 312-2405 City Auditor Sharron Walker (480) 312-7756 City Clerk Carolyn Jagger • Elections (480) 312-2412 City Court Honorable B. Monte Morgan, Presiding Judge Janet Cornell, Court Administrator (480) 312-2442 City Manager David Richert, City Manager David Ellison, Assistant City Manager City Treasurer - Finance & Accounting David Smith, City Treasurer • Accounting • Budget • Customer Service • Risk Management • Payroll Administrative Services (currently reports to Asst. City Manager) • Purchasing • Tax Audit (480) 312-2800 (480) 312-4510 (480) 312-2364 (480) 312-5700 (480) 312-2437 Community Services Bill Murphy, Executive Director • Human Services • Library Systems • Parks and Recreation • Preserve Management (480) 312-7275 Economic Vitality Harold Stewart, Executive Director • Aviation • Economic Vitality • WestWorld (480) 312-7989 Human Resources La Verne Parker Diggs, Executive Director • Benefits Management • Staffing Services/Employee Relations • Workforce Management/Employee Programs • Technology Services I (480) 312-2491 Information Technology (480) 312-2622 Brad Hartig, Executive Director and Chief Information Officer • Application Development & Support • Technology Infrastructure Support Planning, Neighborhoods & Transportation Connie Padian, Acting Executive Director • Advance Planning • Code Enforcement • Current Planning • Development Services • Neighborhood Planning • Transportation (480) 312-2500 Public Safety - Fire Steve Randall, Acting Chief • Emergency Services • Support Services • Emergency Management (480) 312-8000 Public Safety - Police Alan Rodbell, Chief • Administrative Services • Personnel Development • Investigative Services • Uniformed Services (480) 312-5000 14 Public Works Dan Worth, Executive Director • Capital Project Management • Facilities Management • Fleet Management • Solid Waste Management • Street Operations (480) 312-5550 Water Resources Marshall Brown, Executive Director • Engineering & Administration • Water Services • Reclamation Services • Water Quality (480) 312-5685 City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 15 oveRvIew BuDgET IN BRIEF O General Fund Sources & uses The general Fund is the primary operating fund of the City. It exists to account for the resources devoted to finance the services traditionally associated with local government. Included in these services are police and fire protection, parks and recreation, planning and economic development, general administration of the City and any other activity for which a special fund has not been created. General Fund Sources Sales Tax State Shared Revenues Charges for Services/Other Property Tax Franchise Fees/In-Lieu Taxes Bed Tax Cash Transfers In Total Sources $88,324,648 48,614,006 46,738,974 24,713,673 20,205,764 10,591,667 4,026,238 $243,214,970 General Fund expenses by division, Contracts Payable/CoP and Cash Transfers out Mayor & City Council $616,489 Charter Officers 19,009,819 Administrative Services 2,816,220 Community Services 37,353,595 Economic Vitality 12,960,355 human Resources 3,525,008 Information Technology 9,903,567 Plan., Neigh.& Transp. 16,997,179 Public Safety - Fire 27,893,809 Public Safety - Police 82,991,710 Public Works 17,659,448 Contracts Payable/COP 4,497,360 Cash Transfers Out 16,716,244 Total gross Budget 252,940,802 Less: Vacancy Savings/Payouts (1,245,393) Total uses $251,695,409 16 oveRvIew BuDgET IN BRIEF other City Funds… Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City maintains the following five Special Revenue Funds: Transportation, Preservation Privilege Tax, Special Programs, Special Districts and grants. 17 O Beginning Fund Balance - $21.8M Fy 2010/11 Budgeted Sources - $101.7M Fy 2010/11 Budget uses - $101.7M Ending Fund Balance - $21.8M debt Service Funds Debt Service Funds are used to account for the accumulation of resources for and the payment of, general long-term debt principal and interest that are not serviced by the general, Special Revenue, and Enterprise Funds. It does not include contractual obligations accounted for in the individual funds. Beginning Fund Balance - $15.7M Fy 2010/11 Budgeted Sources - $73.0M Fy 2010/11 Budget uses - $72.9M Ending Fund Balance - $15.8M enterprise Funds Enterprise Funds are used to account for operations, including debt service, which are financed and operated similarly to private businesses – where the intent is the service is self-sufficient, with all costs supported predominately by user charges. The City maintains three Enterprise Funds to account for Water & Sewer, Solid Waste, and Aviation activities. Beginning Fund Balance - $62.8M Fy 2010/11 Budgeted Sources - $215.3M Fy 2010/11 Budget uses - $213.0M Ending Fund Balance - $65.1M Internal Service Funds Internal Service Funds are used to account for the financing, on a cost-reimbursement basis, of commodities or services provided by one program for the benefit of other programs within the City. The City maintains two Internal Service Funds to account for Fleet and Self-Insurance activities. Beginning Fund Balance - $33.3M Fy 2010/11 Budgeted Sources - $13.1M Fy 2010/11 Budget uses - $18.5M Ending Fund Balance - $27.9M Trust Funds Trust Funds are used to administer resources received and held by the City as the trustee or agent for others. use of these funds facilitates the discharge of responsibility placed upon the City by virtue of law or other similar authority. Capital Improvement Funds Capital Improvement Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. The City maintains several capital project funds to ensure legal compliance and financial management for various restricted revenues. Beginning Fund Balance - $3.5K Fy 2010/11 Budgeted Sources - $16.0K Fy 2010/11 Budget uses - $19.5K Ending Fund Balance - $0.0 Beginning Fund Balance - $296.0M Fy 2010/11 Budgeted Sources - $839.3M Fy 2010/11 Budget uses - $732.2M Ending Fund Balance - $403.1M oveRvIew O BuDgET IN BRIEF General Fund Sources & uses Trends general Fund Sources are used to pay for the cost of “ongoing” municipal services such as police, fire, parks, libraries, etc. provided by the City. Over the five year period, the trend reflects a decrease in Sources and uses as a result of the economic recession. The City has made difficult but necessary choices along the way to protect the programs and services most desired by the Community. Fy 2006/07 Actual Fy 2007/08 Actual Fy 2008/09 Actual Fy 2009/10 Est. Fy 2010/11 Budget Sources $280.5M $283.4M $272.1M $252.2M $243.2M uses $284.8M $309.7M $274.7M $256.6M $251.7M Property Tax distribution: Scottsdale unified School District Maricopa County City of Scottsdale Community College Special Districts how the Taxes are distributed SALES TAx DISTRIBuTION: State of Arizona 6.60% Maricopa County 0.70% City of Scottsdale 1.65% 8.95% Staffing ADOPTED ChANgE Fy 2009/10 general Fund 2,115.30 (62.75) Transportation Fund 82.00 (1.00) Special Revenue Fund 42.39 0.53 Enterprise Funds 314.00 2.00 Internal Service Funds 54.00 0.00 Total FTe 2,607.69 (61.22) ADOPTED Fy 2010/11 2,052.55 81.00 42.92 316.00 54.00 2,546.47 58% 14% 10% 12% 6% 100% 18 oveRvIew Total City Budget general Fund $263,667,810 Special Revenue Funds 66,043,646 Debt Service Funds 72,939,186 Enterprise Funds 153,510,110 Internal Service Funds 18,429,213 Trust Funds 19,500 (A) Capital Improvement Funds 712,669,800 (B) Total City Budget $1,287,279,265 (A) Includes $440.5M of re-budgets from prior years (B) Includes $107.9M in Reserves/Contingency 19 BuDgET IN BRIEF O oveRvIew hOW TO uSE ThIS BOOK O FY 2010/11 Budget - how to use This Book - volume one The City of Scottsdale’s budget for FY 2010/11 is comprised of three volumes: volume one - Budget Summary Volume One - Budget Summary includes the City Council’s Mission Statement and Broad goals,the City Manager’s Transmittal Letter, a Budget in Brief and Adopted Financial Policies. The Five-year Financial Plans cover the period Fy 2010/11 through Fy 2014/15, which forecasts results of operations by fund and incorporates the operating expenses of capital improvements for the period. The Summary by Division contains description of services provided by each division, operating budgets by expenditure category and the applicable funding sources, current fiscal year priorities, as well as prior year achievements, significant changes, and performance measures. volume Two - Program operating Budget Volume Two - Program Operating Budget presents the individual programs within each division. The publication includes specific information about the program descriptions, significant budgetary changes, current fiscal year priorities, as well as prior year achievements. In addition, included are program operating budgets and their relationship with the Broad goals, general Plan and CityShape 2020. volume Three - Capital Improvement Plan Volume Three - Capital Improvement Plan (CIP) includes the Capital Project Budget and Five-year Capital Improvement Plan with more detailed information for each project. Projects accounted for in Enterprise funds are also included in the Capital Project Budget. Capital Project Budget funding sources are matched with budgeted expenditures. Future year projected operating impacts are noted in the Capital Budget and are also included in the Five-year Financial Plan. FY 2010/11 Adopted Budget Summary - volume one City Manager’s Transmittal Volume One includes the City Manager’s Transmittal letter dated September 3, 2010. The letter is used to transmit the adopted budget to City Council and highlights the prevailing economic condition under which the budget was prepared. overview The Overview section of Volume One describes in further detail the City’s budget development process, which includes the roles and responsibilities of the City Council, the Budget Review Commission, divisional staff, review teams, the budget development process, the budget adoption, implementation and amendment processes, the use of contingency/ reserves, the basis of accounting used to prepare the budget, and the relationship of the operating budget to the capital budget. This section concludes with a summary of the City’s adopted Comprehensive Financial Policies, which are used to build the budget and manage the City’s finances. Budget by Fund The Budget by Fund section of Volume One represent the core of the City of Scottsdale’s adopted Fy 2010/11 budget. The first part of the Budget by Fund section, entitled Legal Compliance and Financial Management, offers a brief explanation of the City’s use of fund accounting to maintain fiscal accountability. Next, a summary entitled Fund Accounting-Fund Types provides the reader with a description of the generic governmental fund types used by the City. The Budget by Fund section ends with the fund summaries and Five-year Plans, which provide a retrospective and prospective view of the City’s funds. 20 oveRvIew Summary by division The Summary by Division consist of description of services provided by each division, operating budgets by expenditure category and the applicable funding sources, current fiscal year priorities, as well as prior year achievements, significant changes, and performance measures. 21 hOW TO uSE ThIS BOOK O Appendix Volume One concludes with the Appendix that provides a summary of authorized full-time and part-time FTEs by division, a summary of authorized staff positions by City division and fund type, the City divisional staff support in the budget development effort, a Five-year Debt Service Schedule, Schedule of Long-Term Debt Outstanding, a Computation of the Legal Debt Margin as of June 30, 2010, and a general Fund Five-year Privilege Tax Forecast. A budget planning and development calendar is also to provide a visual timeline of the strategic planning process. A historical summary of the City and demographics are also included in this section. This section concludes with a list of Acronyms and a glossary of terms used throughout the City’s budget along with the City Council’s ordinances reflecting the adoption of the City’s Fy 2010/11 budget and property tax levy. oveRvIew Budget development Process for Fiscal Year 2010/11 The development of the 2010/11 Budget did not follow the traditional process due to the economic recession. Below are several issues the City is currently facing and was faced with during the budget development process. • Scottsdale is recovering from a severe recession, which impeded divisions from proposing changes to increase service levels, add new programs due to population and/or service growth, and request additional staff through an Evaluation Decision Package. • The depth and duration of the economic recession was unprecedented and the City experienced a continued decline in revenues for 2009/10 and projects no growth for fiscal year 2010/11. • Finance and Accounting forecasted a revenue deficit from the original adopted budget plan during the 2009/10 fiscal year and projected a continued deficit for the 2010/11 fiscal year. how these issues were addressed was detailed in the City Manager’s Final Budget Transmittal. During the Fy 2010/11 budget development process staff identified various projects that did not meet the criteria of a capital project, and moved them out of the CIP and into the operating budget under a new category titled Operating Projects. These projects specifically reflect operating and maintenance expenditures that do not result in the creation of a capital asset. Operating projects Include: • Additional, replacement, or repair of operating equipment and machinery. • Master plans and studies • Public art The remainder of this section describes the traditional budget process that is followed by the City of Scottsdale. BuDgET DEVELOPMENT PROCESS O City of Scottsdale’s Traditional Budget Process Recommended Budget Practices The City of Scottsdale traditional budget process incorporates the recommended practices promulgated by the National Advisory Council on State and Local Budgeting (NACSLB). Concurrently, City staff applies diligent effort into improving the process, decisions and outcomes with each new budget year. The NACSLB was created to provide tools for governments to improve their budgeting processes and to promote their use. In fulfilling that role, the NACSLB set forth a framework that has provided the context for development of a set of budget practices for state and local governments. The significance about the practices is that they represent an unprecedented cooperative effort by several organizations with diverse interests to examine and agree on key aspects of good budgeting. The NACSLB was founded by eight organizations representing elected officials, government administrators, and finance professionals at both the state and local government level. The NACSLB’s work focused on long-term financial planning and encourages governments to consider the longer consequences of actions to ensure that impacts of budget decisions are understood over a multi-year planning horizon and to assess whether program and service levels can be sustained. Practices encourage the development of organizational goals, establishment of policies and plans to achieve these goals, and allocation of resources through the budget process that are consistent with goals, policies and plans. There is also a focus on measuring performance to determine what has been accomplished with scarce government resources. The following are excerpts of the NACSLB’s guiding principles and budget practice recommendations. 22 oveRvIew Budget definition The budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets. A good budget process is characterized by several essential features: • Incorporates a long-term perspective • Establishes linkages to broad goals • Focuses budget decisions on results and outcomes • Involves and promotes effective communication with stakeholders 23 These key characteristics of good budgeting make clear that the budget process is not simply an exercise in balancing revenues and expenditures one year at a time, but is strategic in nature, encompassing a multi-year financial and operating plan that allocates resources on the basis of identified goals. A good budget process moves beyond the traditional concept of line-item expenditure control, providing incentives and flexibility to managers that can lead to improved program efficiency and effectiveness. Mission of the Budget Process The mission of the budget process is to help decisionmakers make informed choices about the provision of services and capital assets and to promote stakeholder participation in the process. Communication and involvement with citizens and other stakeholders is stressed. The broad nature of the budget mission allows issues to be addressed that have limited the success of budgeting in the past. It is in the best interests of government to have involved and knowledgeable stakeholders. The term stakeholder refers to anyone affected by or who has a stake in government. This term stakeholder includes, but is not limited to: citizens, customers, elected officials, management, employees and their representatives (whether unions or other agents), businesses, vendors, other governments, and the media. BuDgET DEVELOPMENT PROCESS O It is vital that the budget processes include diverse stakeholders. The budget process should accomplish the following: • Involve stakeholders • Identify stakeholder issues and concerns • Obtain stakeholder support for the overall budgeting process • Achieve stakeholder acceptance of decisions related to goals, services, and resource utilization • Report to stakeholders on services and resource utilization, and serve generally to enhance the stakeholders’ view of government The importance of this aspect of the budget process cannot be overstated. Regular and frequent reporting is necessary to provide accountability, educate and inform stakeholders, and improve their confidence in the government. Communication and involvement are essential components of every aspect of the budget process. Principles and elements of the Budget Process The budget process consists of four broad principles that stem from the definition and mission previously described. These principles encompass many functions that spread across a governmental organization. They reflect the fact that development of a balanced budget is a political and managerial process that also has financial and technical dimensions. Each of the principles of the budget process incorporates components or elements that represent achievable results. These elements help translate the guiding principles into action components. Individual budgetary practices are derived from these elements and are a way to accomplish the elements. The principles and elements provide a structure to categorize budgetary practices. 1) Establish Broad goals to guide government Decision-Making - A government should have broad goals that provide overall direction for the government and serve as a basis for decision-making. a) Assess community needs, priorities, challenges and opportunities b) Identify opportunities and challenges for government services, capital assets, and management c) Develop and disseminate broad goals oveRvIew 2) Develop Approaches to Achieve goals - A government should have specific policies, plans, programs, and management strategies to define how it will achieve its long-term goals. a) Adopt financial policies b) Develop programmatic, operating, and capital policies and plans c) Develop programs and services that are consistent with policies and plans d) Develop management strategies 3) Develop a Budget Consistent with Approaches to Achieve goals - A financial plan and budget that moves toward achievement of goals, within the constraints of available resources, should be prepared and adopted. a) Develop a process for preparing and adopting a budget b) Develop and evaluate financial options c) Make choices necessary to adopt a budget 4) Evaluate Performance and Make Adjustments Program and financial performance should be continually evaluated, and adjustments made, to encourage progress toward achieving goals. a) Monitor, measure, and evaluate performance b) Make adjustments, as needed The NACSLB’s work goes on to identify 59 practices to achieve the higher-level activities identified in the principles and elements of budgeting. Scottsdale’s traditional budget process attempts to incorporate all of the NACSLB’s recommended practices. Budget Roles and Responsibilities Traditionally, every City of Scottsdale employee plays a role in the City’s budget — whether in its formulation, preparation, implementation, administration, or evaluation. ultimately, of course, each Executive Managing Director, through the City Manager, and the Charter Officers, is accountable to the City Council for the performance of program personnel in meeting City Council’s Broad goals (see the Introduction section) and specific work plan objectives within allocated resource limits. BuDgET DEVELOPMENT PROCESS O The actual budget responsibilities of the employees are identified more specifically below: PROgRAM MANAgER The Program Manager is responsible for preparing an estimate of remaining cost requirements and revenues, if applicable, for the current fiscal year, projecting the base budget requirements for the next fiscal year, and developing other requests that change or revise the program so that it will be more effective, efficient, productive, and economical. BuDgET LIAISONS The City divisions have Budget Liaisons that coordinate the day-to-day budget management within their respective divisions along with the Budget staff. The Budget Liaisons serve as the vital communication link between their City division and the Finance and Accounting Division - Budget Program on matters related to their specific operating budget. Budget Liaisons are responsible for revenue and expenditure forecasts, monthly expenditure and revenue variance analysis, calculating user and indirect cost rates, monitoring the budget, support to the Finance and Accounting- Accounting Program in the Comprehensive Annual Financial Report preparation, and preparing budget review materials for the City Treasurer, Executive Managing Directors, City Manager, City Council, Budget Review Commission, media and citizen. The CIP Liaisons essentially serve the same role as the Budget Liaisons; however, their focus is on the coordination of capital projects, multi-year capital planning and capital project operating impacts with the Budget staff. In some cases, the same individual serves as both the divisional Budget Liaison and CIP Liaison. A list of Budget Liaisons and CIP Liaisons and their area of responsibility appears in the Appendix. CIP TEChNOLOgy REVIEW TEAM The CIP Technology Review Team and CIP Construction Review Team are comprised of Supervisors and Managers from various City divisions. These cross-divisional teams are traditionally responsible for the initial review of all of the City’s capital projects. Their reviews are fo- 24 oveRvIew cused on timing and cost considerations, compiling lifecycle costs, and preparing a preliminary Capital Improvement Plan recommendation for review and revision by the Executive Managing Directors, Budget staff, City Treasurer, City Manager, City Council and various citizen boards and commissions. 25 ExECuTIVE MANAgINg DIRECTORS AND ChARTER OFFICERS The Executive Managing Directors and Charter Officers are responsible for reviewing historical performance, anticipating future problems and opportunities, considering alternative solutions, and modifying and assembling their program data into a cohesive budget information package. Traditionally, each Executive Managing Director is responsible for evaluating, reviewing, justifying and prioritizing all operating and capital budget requests for their division. Only those requests, that an Executive Managing Director believes support the City Council’s Broad goals, the City’s general Plan, City Manager’s work plan, administrative direction and program objectives are to be submitted to the Budget staff. SENIOR BuDgET ANALySTS The Senior Budget Analysts are responsible for preparing the multi-fund short-range and long-range revenue and expenditure forecasts, coordinating with Budget Liaisons in calculating user and indirect cost rates, developing the process and related forms for preparing and monitoring the budget, coordinating the compilation of budget data, analyzing operating and capital budget requests, supporting Finance and Accounting - Accounting Program in the Comprehensive Annual Financial Report preparation, asset monitoring, evaluating and summarizing budget requests from divisions and preparing budget review materials for the City Treasurer, Executive Managing Directors, City Manager, Budget Review Commission, City Council, media and citizens. CITy TREASuRER AND ExECuTIVE MANAgINg DIRECTORS The City Treasurer and Executive Managing Directors collaborate in developing programmatic, operating, and capital policies and financial plans that help define how Scottsdale will achieve its long-term goals. They are tra- BuDgET DEVELOPMENT PROCESS O ditionally responsible for reviewing the program operating budget and capital budget requests and working with program managers to develop service recommendations that are consistent with City Council’s Broad goals, management strategies and the City’s Adopted Comprehensive Financial Policies (see immediately after the Budget Process in the Overview section). CITy MANAgER The City Manager is responsible for reviewing the multiyear, multi-fund Financial Plan and submitting a balanced Citywide proposed budget to the Mayor and City Council, which supports their Broad goals. Traditionally, from December through May, the City Manager holds weekly meetings with the Budget staff, City Treasurer, and Executive Managing Directors to ensure the staff is preparing a proposed budget that address Council’s priorities and to provide guidance on key policy issues related to the budget development. BuDgET REVIEW COMMISSION The Budget Review Commission serves as an advisory body to the City Council and is responsible for reviewing and making recommendations regarding operating and capital budget recommendations from the divisional program and goals perspective, as well as financial policies and revenue forecast, taxes and fees. During the spring, the Commission holds budget work sessions with each of the division heads to review their proposed operating and capital budgets. The sessions are intended to assess how well the division’s proposed budget aligns with the citizen input, priorities, and supports the City Council’s Broad goals and general Plan. All Commission budget meetings are open to the public for comment and are broadcast on CityCable 11 and the City’s Internet web page. MAyOR AND CITy COuNCIL The Mayor and City Council set the direction for staff related to the forthcoming budget by establishing broad goals for the organization, which serve as a basis for decision-making. The Council reviews key aspects of the City Manager’s proposed budget such as -- the City’s oveRvIew multi-year Financial Plan including an examination of the revenue forecast and related assumptions, employee compensation including healthcare and retirement costs, changes to rates and fees, comprehensive financial policies, debt schedules, property tax rate and the capital budget. The budget process culminates in late spring with the Mayor and City Council holding two public budget hearings. The Mayor and City Council are ultimately responsible for the review of the City Manager’s proposed budget, tentative budget adoption (mid-May) and final adoption of the budget (early June). All Council budget hearings are open to the public for comment and are broadcast on CityCable 11 and the City’s Internet web page. City of Scottsdale’s Traditional Budget Process Scottsdale’s budget process is a key aspect of its strategic visioning and planning efforts - allowing City Council and staff the opportunity to reassess goals and objectives and the means for accomplishing them. While the Budget Review Commission and City Council typically review the City’s proposed budget in detail from March through the early June adoption, they also traditionally provide input to the City Manager and staff throughout the year in a series of work study sessions and regular Council meetings. In these sessions, the Council members collaborate to establish a mission and broad goals for the community, articulate their priorities, discuss relevant issues such as methods of expanding and enhancing public input, and the most recent Economic/Revenue Forecast, and emerging budget/legislative/policy issues. The City Council’s feedback from the retreat provides the groundwork and starting point for the staff to begin framing the program operating budget and the capital project budget. needs Assessment and Financial Capacity Phase In this phase, which traditionally begins in the late summer and continues up to the final budget adoption, the staff compiles and updates on an ongoing basis the City’s multi-fund, multi-year revenue forecast. The first year of the revenue estimates is the most critical in the process, as they will ultimately define the expenditure BuDgET DEVELOPMENT PROCESS O limitations for the forthcoming budget year. The multiyear revenue perspective further refines the City’s planning for current and future period expenditures — with the goal of not adding programs, services or staff which do not have a “sustainable” funding source over the five year planning timeframe. The preliminary assumptions are used to forecast the City’s fiscal capacity and provide the financial framework within which the proposed program budget service levels, capital budget operating impacts and capital infrastructure project budgets must be developed. Policy/Strategy development and Prioritization Process Phase In the fall and spring, City Council typically reviews citizen input, Citizen Board and Commission feedback, Financial Policies, Economic Trends Analysis, citizen survey results and the most current Financial Forecast. They discuss broad organizational goals, priorities, and constituents’ suggestions and expectations for Scottsdale. From this, the Council establishes broad goals and strategic directives, which are the cornerstone for the development of the budget. These broad goals provide the overall direction for Scottsdale and serve as a basis for decision-making. The executive and senior management staff updates City financial policies, plans, programs, and management strategies to define how the City will achieve the broad goals. It is within this framework that the City staff formulates the proposed Program Operating and Capital Budgets. Budget development and Prioritization Process Phase Traditionally, in the early fall, the Capital Improvement Plan (CIP) development begins in conjunction with the City’s multi-year financial forecasts. Initial divisional capital project requests and changes to existing capital projects are reviewed by cross-divisional teams for accurate costing, congruence with City objectives and prioritized using a set of pre-determined criteria. Financing sources are then sought for the highest-ranking projects. The teams involved in this process include the CIP Technology Review Team and the CIP Construction Review 26 oveRvIew Team. The CIP Technology Review Team is made up of mid-level technology managers from various City divisions. The CIP Construction Review Team is made up of mid-level Capital Project Management staff with expertise in public building planning and construction, street improvements, stormwater management, landscaping, etc. The staff, when developing their Program Operating Budget plans, closely considers the ongoing operating impacts of current and proposed capital projects. Staff also considers City Council’s Broad goals and strategic directives as they develop program objectives and work plans for the budget period. 27 Later in the fall after the CIP is underway, the City staff update their proposed performance measurements. The performance measurements are developed to assess results and ensure accountability, which enable managers and policy makers to evaluate progress towards stated goals and objectives. The staff also prepares their proposed Program Operating Budgets at this time, using a modified zero-based program budget approach, which requires that the budget be prepared solely at the existing service operating levels – no modifications are permitted at this stage of the budget development process. The divisional staff is also asked to evaluate their programs and/or positions for possible trade-offs, reductions or eliminations, or service level changes to offset inflation, contractual, compensation, and benefit cost increases. under the City’s modified zero-based program budget approach, traditionally any proposed changes in service levels, new programs, population/service growth, additional staff, and program trade-offs resulting in service level reductions/increases must be submitted to the Budget Office in an Evaluation Decision Package. An Evaluation Decision Package provides extensive analysis and justification for the division’s request and is reviewed by the City Manager and Executive Managing Directors during the budget development and prioritization process. In the later stages of the City’s budget development process, Evaluation Decision Packages are considered and balanced among numerous competing demands within the City’s available, ongoing resources. BuDgET DEVELOPMENT PROCESS O When funding needs exceed the City’s funding limits (as they did in Fy 2009/10 and were projected for Fy 2010/11), remedies may include one or more of the following: reduce the base budget, identify new revenues, employ process management tools, and/or form partnerships with other City programs or non-profit organizations. City Management Review and Modification Phase Traditionally, in the early winter, the Divisions submit their proposed Program Operating Budget and Capital Project Budget requests to the Budget Office. The initial multifaceted review focuses on ascertaining the divisions complied with the Budget Office’s budget instructions, reviewing the mathematical accuracy and logic of the divisional base budget and capital project requests, and any Evaluation Decision Packages. The review also includes a broader assessment of whether the divisional budget proposals address City Council’s Broad goals, strategic directives, and program service needs while maintaining a Citywide perspective ensuring the fiscal integrity of the City (not exceeding our forecasted resources/limits). The City Manager, Executive Managing Directors, City Treasurer, and Budget staff collaborates on the development of a recommended Five-year Financial Plan and proposed budget for each fund and then submit the plans to the Budget Review Commission and City Council for review and adoption. The Budget Review Commission and City Council also review the proposed multi-year revenue forecasts for reasonableness and the expenditure budgets for efficiencies and alignment with community needs and expectations. Budget Review Commission and City Council Budget Review and Adoption Phase In the early spring, staff presents an overview of the proposed operating and capital budgets to the Budget Review Commission and citizens for consideration and further public input. The budget is also communicated to the general public in a summary format using a newspaper insert, televised public Commission meetings, Internet and/or a combination of these formats. oveRvIew The Budget Review Commission holds public work sessions to review each division’s proposed budget and the City’s Five-year Financial Plan. This review focuses on how the division’s program operating and capital budgets address citizens’ priorities and City Council’s Broad goals. Additionally, the Commission holds meetings to review rates and fees, financial policies and compensation, including benefits. After the Budget Review Commission completes their review of the City Manager’s Proposed Budget, they hold a joint meeting with City Council to present their findings and recommendations. Next, a series of required public budget hearings are held and the City Council adopts the budget and property tax levy consistent with the City Charter and State law. Per the City Charter, the City Council must have Tentative Adoption of the proposed budget, on or before the second regular council meeting in May each year. This meeting is usually held in mid-May. (Note: State law requires on or before the third Monday in July of each fiscal year, the City Council must adopt the tentative budget). Tentative Adoption sets the legal maximum expenditure limit (i.e., appropriation) for the coming fiscal year budget. under the City Charter, Final Adoption of the budget must occur at the first Regular City Council meeting in June. (Note: There is no specific date set by state law for adoption of the final budget. however, for jurisdictions with a property tax, such as Scottsdale, the deadline for adoption of the property tax levy is the third Monday in August. Since state law requires a period of at least fourteen (14) days between adoption of the final budget and adoption of the property tax levy, the budget should be adopted by the first Monday in August of each year). BuDgET DEVELOPMENT PROCESS O Arizona State law requires a “balanced” budget, which is “all-inclusive”. Arizona State Revised Statute (ARS 4217151) defines a “balanced” budget as follow: “Fix, levy and assess the amount to be raised from primary property taxation and secondary property taxation. This amount, plus all other sources of revenue, as estimated, and unencumbered balances from the preceding fiscal year, shall equal the total of amounts proposed to be spent in the budget for the current fiscal year.” under Arizona State law “all-inclusive” means if an item is not budgeted (i.e. does not have an appropriation), it cannot legally be spent during the fiscal year. Therefore, the budget must include sufficient appropriation and contingency provisions for expenditures related to revenues (i.e., possible future grants) that cannot be accurately determined or even anticipated when the budget is adopted in June. This budgetary flexibility allows the City to comply with the Arizona State law and to pro-actively pursue emerging revenue sources as the budget year unfolds. Expenditures (i.e., appropriations) associated with items such as possible future grants/revenues may not be spent without City Council’s prior approval at a public meeting. Arizona State Revised Statutes only requires communities to prepare budgets for two funds — the general Fund (ARS 42-17101) and highway user Fund (ARS 28-6533) (See the Transportation Fund). In addition to these two funds the City prepares budgets and requests legal appropriation for all of its funds — Special Revenue, Debt Service, Enterprise, Internal Service, grants, Trust and Capital Improvement Plan Funds. The ordinance adopting the annual budget requires City Council authorization for expenditures from the aforementioned funds, which in the aggregate constitute the City’s total Operating, Capital Budget and Contingency/Reserves for purposes of complying with the State’s balanced budget and legal maximum appropriations requirements. 28 oveRvIew Implementing, Monitoring, and Amending the Budget Phase In July, the City staff begins the process of implementing the newly adopted budget and is accountable for budgetary control throughout the fiscal year. Revenue and expenditure patterns are examined, compared to budget plans, and corrective action, if necessary, is taken during the fiscal year. Members of the Finance and Accounting staff and divisional Budget Liaisons meet every month to review current demographic, economic and financial trends, which may impact the City, and to plan strategy to ensure the City’s fiscal integrity. City management and City Council are also provided monthly Financial Reports disclosing actual revenue, expenditure, and fund balance performance as compared to the budget plan. 29 upon the final adoption of the budget, staff incorporates any of City Council’s approved changes to the Tentative Budget proposal and implements the Program Operating Budget and the Capital Improvement Plan. The final Program Operating Budget and Capital Improvement Plan books are typically published in August. Scottsdale’s programs and activities are periodically reviewed to determine if they are achieving City Council’s Broad goals, accomplishing strategic objectives and making efficient use of limited resources. City values of “plan and innovate for the future” and “focus on quality customer service” along with City Manager directed studies of several service and program areas during the next budget year help communicate this expectation. The Finance and Accounting staff, Executive Managing Directors, and the Internal Audit staff all provide assistance to staff in their review of programs. The staff of every City service or program is expected to conduct self-assessments and develop cost and quality measures of efficiency and effectiveness. Internal performance measurements are developed and reviewed on a periodic basis by program managers. Scottsdale’s culture, along with the City value of “listen, communicate, and take action” stresses open communication and stakeholder involvement determining satisfaction with BuDgET DEVELOPMENT PROCESS O programs and services and in identifying areas needing additional attention. Ongoing monitoring of the City’s financial performance is required of all program managers on a monthly basis. Written budget to actual expenditure variance reports must be submitted monthly by all City divisions explaining any variances that exceeds pre-determined variance ranges and provide a solution for corrective action. Additionally, the divisions must be able to explain in writing to the Budget Office the projected year-end budget savings and/or fund balances. The City of Scottsdale’s Program Operating Budget is adopted at a division level and the Capital Improvement Plan is adopted at a project level. The City uses the following as guidance throughout the fiscal year for adjustments to the budgeted amounts (Budget Transfers) and actual amounts (Request for Adjustment): • All proposed Budget Transfers between divisions and capital projects must be approved by the Executive Managing Director, Budget Manager, City Treasurer and the City Manager before being submitted to City Council for consideration in a public meeting. If approved by City Council, the transfer is processed in the budget system by the Finance and Accounting Division staff. • All proposed salary and benefit account Budget Transfers (51000 accounts) within the same division require the prior written approval of the Executive Managing Director, division Budget Liaison, and Budget Manager. • All proposed non-salary and benefit account Budget Transfers (52000, 53000 and 54000 accounts) within the same division require the prior written approval of the division Executive Managing Director, division Budget Liaison, and the Budget Manager. If approved, the transfer is processed in the budget system by the Finance and Accounting Division staff. • In addition, all proposed Budget Transfers to capital projects funded by Bond 2000 are reviewed by the oveRvIew Citizen Bond Review Commission at a public meeting and their recommendation is forwarded to the City Council for review. If approved by City Council, the transfer is processed in the budget system by the Finance and Accounting Division staff. • All Requests for Adjustments to actual expenditures require a written justification and an explanation of the fiscal impact, which is reviewed by the Finance and Accounting Division Accounting staff before being processed. If approved, the Finance and Accounting Division staff documents the approval in writing. • All amendments to the budget that require a Budget Transfer from the Contingency/Reserve Funds require City Council’s prior approval at a public meeting before the adjustment can be made by staff. If approved, the transfer is processed in the budget system by the Finance and Accounting Division staff. use of Contingency/Reserve Funds The Contingency/Reserve Fund is strictly defined in the City’s financial policies reviewed by the Budget Review Commission and adopted by City Council annually and used when additional funds are necessary to offset events such as: unexpected revenue shortfalls or expenditure increases so that budgeted citizen service measures can be maintained; unanticipated grants are received; and when unanticipated and/or inadequately budgeted events threaten the public health or safety. use of Contingency/Reserve Funds is to be utilized only after all alternative budget funding sources and other options have been fully considered. All Contingency/Reserve Fund requests require a written justification and an explanation of the fiscal impact, which is reviewed and approved in writing by the Budget Liaison, Budget Manager, City Treasurer, the applicable service area Executive Managing Director, and City Manager before being presented to City Council for consideration in a public meeting. BuDgET DEVELOPMENT PROCESS O Budgetary and Accounting Basis Scottsdale’s budget is prepared on a cash basis of accounting for all fund types, which means certain transactions are recognized in the budget on a basis other than generally Accepted Accounting Principles (gAAP), which is the basis used to prepare the City’s Comprehensive Annual Financial Report (CAFR). The major differences between the budgetary and gAAP basis are: • Certain revenues, expenditures, and transfers are not included on the budget basis, but are accrued and reported on the gAAP basis. For example, increases or decreases in compensated absences are not reported for budget basis purposes, but are presented as revenues or expenditures on the gAAP basis. • Indirect administrative cost allocations (including in-lieu property tax and franchise fees) charges to the Enterprise Funds are accounted for as transfers in or out on the budgetary basis, but are recorded as revenues or expenses on the gAAP basis. • Capital outlays in the Enterprise Funds are presented as expenses for budget basis, but are recorded as assets along with associated depreciation expenses on the gAAP basis. • Debt service principal payments in the Enterprise Funds are accounted for as expenses for budget purposes, but are reported as reductions of long-term debt liability on the gAAP basis. • Certain debt service principal and interest payments are accounted for as expenses in the general Fund for budget basis purposes, but are reported as expenses in the Debt Service Fund on the gAAP basis. • For budget purposes the Risk Fund presents claim expenditures on a cash basis, while on a gAAP basis the claim expenditures reflect an accrual for “incurred but not reported” (IBNR) claims. All actual amounts in the budget document are shown on the budgetary basis to facilitate meaningful comparisons. Budgeted funds include the general, Special Revenue, Debt Service, Enterprise, Internal Service, grants, Trust, and Capital Improvement Plan. 30 oveRvIew operating and Capital Budget Relationship The City of Scottsdale’s Budget for Fy 2010/11 is comprised of three volumes: VOLuME ONE Volume One includes the City Council’s Mission Statement and Broad goals, Budget in Brief, City Manager’s Transmittal Letter and Adopted Financial Policies. The Five-year Financial Plans cover the period Fy 2010/11 through Fy 2014/15 and forecasts results of operations by fund and incorporates the operating expenses of capital improvements for the period. 31 VOLuME TWO Volume Two presents the individual programs within each division. The publication includes specific information about the program descriptions, significant budgetary changes, current fiscal year priorities, as well as prior year achievements VOLuME ThREE Volume Three includes the Capital Project Budget and Five-year Capital Improvement Plan with detailed information for each approved project. Projects accounted for in the City’s Enterprise Funds (Water & Sewer, Solid Waste and Aviation) are also included in the Capital Project Budget. Capital Project Budget funding sources are matched with budgeted expenditures. Estimated future year operating impacts are noted in the Capital Budget and included in the Five-year Financial Plan for all approved projects, if applicable. governmental accounting procedures and state law require expenditures for the Five-year Capital Improvement Plan to be budgeted at an amount sufficient to pay for an entire contract, meaning the legal authority is available and appropriated in the period in which a contract is entered into by the City. Therefore, capital expenditures are presented on a budget basis reflecting the total appropriated amount, as opposed to a cash flow basis, which may take several fiscal years to be paid out. For example, a 180-day construction contract entered into in May of fiscal year one would have cash expenditures from May of fiscal year one through October of fis- BuDgET DEVELOPMENT PROCESS O cal year two, however, the entire budget for this contract must be appropriated in fiscal year one, the year in which the contract was entered; any unspent funds at the end of fiscal year one would be carried forward and re-budgeted again in fiscal year two. Funding sources for the Five-year Capital Improvement Plan are presented on budget basis, except for cash transfers in from the Program Operating Budget, which are presented on a purely cash basis. These resources are presented in the period that the cash funding will be transferred in order to provide continuity between the Program Operating Budget and the Capital Improvement Plan. As a result of presenting the cash transfers in on a purely cash basis, the funding sources may not equal the budgeted expenditures in each period, creating a fund balance as cash accumulates each year for planned larger capital expenditures in later fiscal years. For further information regarding capital project funding sources and expenditures, refer to the Capital Improvement Plan section, and the Fund Summaries and Fiveyear Plan section of this Volume. Five-Year Financial Plan The City’s five-year financial planning process used to develop the proposed budget is a year-round process. The budget process begins in the early fall with the Finance and Accounting staff’s initial updating of the Fiveyear Financial Plan for each of the City’s major funds. The staff reviews the Five-year Financial Plans for the following funds that appear in the budget – general, Transportation, Preservation Privilege Tax, Special Programs, Special Districts, Debt Service, Water & Sewer, Solid Waste, Aviation, Fleet, Self-Insurance, and Trust. using the latest fiscal, operational, and legislative information, the staff works collaboratively with the City divisions to update the forecast for the current fiscal year related to the most recently adopted budget and to create a forecast for the coming budget year. The forecasts serve as the basis for the development of the City’s proposed Five-year Financial Plan. oveRvIew In March, the City Manager provides the Budget Review Commission with the updated Five-year Financial Plans for their review and consideration. The staff works with the Commission to review the underlying assumptions and reasonableness of the plans. The plans are used to develop the budget for the coming year (i.e. the first year of the plan) and subsequent years of the five-year financial forecast period. This time is also used to identify future service and financial issues requiring attention during the budget planning process. The Five-year Financial Plans provide the Budget Review Commission, City Council, City management, citizens and municipal bond rating agencies with the benefits of a long-term financial perspective of revenues, expenditures, cash transfers in/out, fund balances, and capital financing options. They also serve as the basis to test the potential impacts of proposed policy and operational modifications and pending legislative changes all intended to avoid subjecting citizens to wide or irregular fluctuations in rates/fees and service levels. Proposed future operating impacts of capital projects are also included in the forecast, which facilitates the planning, integration, and timing of the capital projects into the City’s Five-year Financial Plans. The City Council and City management use the plans to assess the impact of their proposed decisions in a long-range financial context. These decisions may include the proposed addition of new staff, new debt issuances and debt refunding, tax rates changes, the desire to create, modify or eliminate fees/rates, new or expanded services and state legislation changes. Based on the fiscal impact of these decisions, City Council has an opportunity to modify the proposed plans. As noted above, the development and updating of the Five-year Financial Plans is a year-round process. The staff monitors the current budget on a monthly basis and makes adjustments to the estimated annual revenues and expenditures based on the latest economic information, legislative changes and Council priorities. The revenue and expenditure variance, and estimated ending BuDgET DEVELOPMENT PROCESS O fund balances are reported monthly to the City Council, City management and other stakeholders via the City of Scottsdale Monthly Financial Report. The staff also monitors and identifies changes in the financial and economic climates and considers solutions to negative trends, thereby preserving the financial health of Scottsdale. Revenue Forecasting The City of Scottsdale uses both qualitative and quantitative methods for forecasting revenues, blending various techniques to develop conservative and prudent revenue projections. Qualitative revenue forecasting methods used by staff to develop multi-year financial plans include consensus, judgmental, and expert forecasting, while trend analysis is used as a quantitative technique. This balanced approach to revenue forecasting is strongly encouraged by the government Finance Officers Association (gFOA), since research shows that forecasting accuracy is improved by combining qualitative and quantitative techniques. According to the gFOA, each method by itself has inherent weaknesses: qualitative methods can be too subjective at times and may be subject to wishful thinking and selective perception on behalf of the forecasters; quantitative methods may fail to consider changing conditions inside and outside a jurisdiction and also tend to discount important historical events. By combining qualitative and quantitative methods, forecasters integrate judgmental assumptions within the forecasting framework to produce more realistic revenue projections. To enhance the revenue forecasting process and gain the broader input into the planning process, the Finance and Accounting staff works collaboratively with the City divisions throughout the year to prepare the revenue estimates. This multi-disciplinary approach and continual reassessment creates a synergy between the central finance staff and the division field staff, which reduces the likelihood of miscommunications in formulating the revenue estimates. The field staff’s participation in the revenue estimates also increases their ownership and accountability for achieving the proposed plan. 32 oveRvIew expenditure and Year-end Savings Forecasting Each month throughout the fiscal year, the Finance and Accounting Division Budget staff works with the City divisions to monitor their year-to-date actual expenditures against the year-to-date approved budget. Each division is also required to forecast their year-end expenditures and related expenditure savings. All significant actual or forecasted variances are researched and a reason for the likely variance as well as possible alternatives to resolve the variance is considered by the staff. Proactive management of the budget to actual/forecasted expenditures allows staff the opportunity to promptly notify City management and the City Council of potential budget concerns. 33 BuDgET DEVELOPMENT PROCESS O oveRvIew COMPREhENSIVE FINANCIAL POLICIES O The following City financial policies adopted by Resolution by the City Council establish the framework for Scottsdale’s overall fiscal planning and management. They set forth guidelines against which current budgetary performance can be measured and proposals for future programs can be evaluated. Scottsdale’s publicly adopted financial policies show the credit rating industry and prospective investors (bond buyers) the City’s commitment to sound financial management and fiscal integrity. The financial policies also improve the City’s fiscal stability by helping City officials plan fiscal strategy with a consistent approach. Adherence to adopted financial policies promotes sound financial management, which can lead to improvement in City bond ratings and lower cost of capital. 4. The Budget Review Commission is responsible for reviewing the operating budget (division and program/service funding); the capital budget; the revenue forecast, taxes, and fees; and financial policies. operating Management Policies 1. All departments will participate in the responsibility of meeting policy goals and ensuring long-term financial health. Future service plans and program initiatives will be developed to reflect current policy directives, projected resources and future service requirements. In order to ensure compliance with policy, sunset provisions will be required on all grant program initiatives and incorporated into other service plans, as appropriate. 7. Current revenues will fund current expenditures and a diversified and stable revenue system will be developed to protect programs from short-term fluctuations in any single revenue source. To ensure that Scottsdale does not become overly reliant on ‘growth’ revenues for operating needs, a minimum of 25% construction privilege tax revenues will be transferred annually to the Capital Improvement Program for onetime capital project use. 2. The budget process is intended to weigh all competing requests for City resources, within expected fiscal constraints. Requests for new, ongoing programs made outside the budget process will be discouraged. 3. Budget development will use strategic multi-year fiscal planning, conservative revenue forecasts, and modified zero-base expenditure analysis that requires every program to be justified annually in terms of meeting intended objectives (“effectiveness criteria”) and in terms of value received for dollars allocated (“efficiency criteria”). The process will include a diligent review of programs by staff, management, citizens, Budget Review Commission, and City Council. 5. The full City Council will solicit citizen input and review the operating and capital budget recommendations from a departmental, program, and goals perspective. 6. Revenues will not be dedicated for specific purposes, unless required by law or generally accepted accounting practices (gAAP). All non-restricted revenues will be deposited in the general Fund and appropriated by the budget process. 8. Addition of personnel will only be requested to meet program initiatives and policy directives; after service needs have been thoroughly examined and it is substantiated that additional staffing will result in increased revenue or enhanced operating efficiencies. To the extent feasible, personnel cost reductions will be achieved through attrition. 9. Enterprise (Water, Sewer, Solid Waste Management, and Airport) user fees and charges will be examined annually to ensure that they recover all direct and indirect costs of service and be approved by the City Council. Any unfavorable balances in cost recovery will be highlighted in budget documents. Rate adjustments for enterprise operations will be based on five-year financial plans. 34 oveRvIew 10. All non-enterprise user fees and charges will be examined annually to determine the direct and indirect cost of service recovery rate. The acceptable recovery rate and any associated changes to user fees and charges will be approved by the City Council. 11. Development impact fees, as permitted by state law, for capital expenses attributable to new development will be reviewed annually to ensure that fees recover all direct and indirect development-related expenses and be approved by City Council. Any unfavorable balances in cost recovery will be highlighted in budget documents. 35 12. Capital equipment replacement will be accomplished through the use of a “rental” rate structure. The rates will be revised annually to ensure that charges to operating departments are sufficient for operation and replacement of vehicles and other capital equipment (fleet, computers, phones and copier systems). Replacement costs will be based upon equipment lifecycle financial analysis. 13. grant funding will be considered to leverage City funds. Inconsistent and/or fluctuating grants should not be used to fund ongoing programs. Programs financed with grant monies will be budgeted in separate cost centers, and the service program will be adjusted to reflect the level of available funding. In the event of reduced grant funding, City resources will be substituted only after all program priorities and alternatives are considered during the budget process. 14. Balanced revenue and expenditure forecasts will be prepared to examine the City’s ability to absorb operating costs due to changes in the economy, service demands, and capital improvements. The forecast will be updated annually, focus on a three-year horizon, but include a five-year outlook. COMPREhENSIVE FINANCIAL POLICIES O 15. Alternative means of service delivery will be evaluated to ensure that quality services are provided to our citizens at the most competitive and economical cost. Departments, in cooperation with the City Manager, will identify all activities that could be provided by another source and review options/alternatives to current service delivery. The review of service delivery alternatives and the need for the service will be performed annually or on an “opportunity” basis. 16. Cash and Investment programs will be maintained in accordance with the City Charter and the adopted investment policy and will ensure that proper controls and safeguards are maintained. City funds will be managed in a prudent and diligent manner with an emphasis on safety of principal, liquidity, and financial return on principal, in that order. 17.The City will follow an aggressive, consistent, but sensitive to the circumstances policy of collecting revenues to the limit of our ability. Collection policy goal will be for all adjusted uncollectible accounts to be no more than .5 of 1% of the total City revenue being adjusted for bad debts annually. Capital Management Policies 18. A five-year Capital Improvement Plan will be developed and updated annually, including anticipated funding sources. Capital improvement projects are defined as infrastructure or equipment purchases or construction which results in a capitalized asset costing more than $25,000 and having a useful (depreciable life) of five years or more. 19. The capital improvement plan will include, in addition to current operating maintenance expenditures, adequate funding to support repair and replacement of deteriorating infrastructure and avoidance of a significant unfunded liability. oveRvIew 20. Proposed capital projects will be reviewed and prioritized by a cross-departmental team regarding accurate costing (design, capital, and operating) and overall consistency with the City’s goals and objectives. Financing sources will then be identified for the highest ranking projects. 21. Capital improvement lifecycle costs will be coordinated with the development of the Operating Budget. Future operating, maintenance and replacement costs associated with new capital improvements will be forecast, matched to available revenue sources and included in the Operating Budget. Capital project contract awards will include a fiscal impact statement disclosing the expected operating impact of the project and when such cost is expected to occur. 22. Dedicated two tenths of percent (.2%) privilege tax revenue for transportation improvements will be restricted to funding the planning, design, construction and acquisition costs associated with building, renovating, or enhancing capital projects for streets, highways, traffic control, transit and aviation and transportation improvement operating costs. 23. Pay-as-you-go Capital Improvement Plan financing should account for a minimum of 25 percent of all capital improvement projects for each five-year planning period. Pay-as-you-go financing is defined as all sources of revenue other than City debt issuance, i.e., fund balance contributions, developer contributions, grants, endowments, etc. 24. Pay-as-you-go contributions up to 10% or $500,000, whichever is less, may be authorized by City Council towards any single utility undergrounding improvement district. Any unused annual budget authorization may carry forward towards a maximum $2 million appropriation for utility undergrounding capital projects that benefit the community as a whole. COMPREhENSIVE FINANCIAL POLICIES O debt Management Policies 25. The City will seek to maintain and, if possible, improve our current bond rating in order to minimize borrowing costs and preserve access to credit. 26. An analysis showing how the new issue combined with current debt impacts the City’s debt capacity and conformance with City debt policies will accompany every future bond issue proposal. 27. The City will communicate, and, where appropriate, coordinate with all jurisdictions with which we share a common tax base concerning our collective plans for future debt issues. 28. For all debt security transactions, the City will utilize bond legal counsel that is familiar with municipal law to ensure that the securities are issued in compliance with the City’s governing statutes and regulations. The selection of any outside bond counsel to assist in debt security transactions will be subject to the City Attorney’s review and involvement. 29. City Debt Service costs (gO, MPC, huRF, Revenue Bond, McDowell Sonoran Preservation and Contractual Debt) should not exceed 25% of the City’s operating revenue in order to control fixed costs and ensure expenditure flexibility. Improvement District (ID) and Community Facility District (CFD) debt service is not included in this calculation because it is paid by district property owners and is not an obligation of the general citizenry. Separate criteria have been established regarding ID and CFD debt policies. 30. general Obligation debt, which is supported by property tax revenues and grows in proportion to the City’s assessed valuation and/or property tax rate increases, will be utilized as authorized by voters. Other types of voter-approved debt (e.g., water, sewer, and huRF) may also be utilized when they are supported by dedicated revenue sources (e.g., fees and user charges). 36 oveRvIew 31. general Obligation debt issuances will be managed on an annual basis to match funds to Capital Improvement Plan cash flow requirements while being sensitive to the property tax burden on citizens. Careful management of bond issuances will allow the City to not exceed $1.50 property tax per $100 assessed value. 37 32. Municipal Property Corporation and contractual debt, which is non-voter approved, will be utilized only when a dedicated revenue source (e.g., golf course revenue, privilege tax, bed tax) can be identified to pay debt service expenses. The following considerations will be made to the question of pledging of project (facility) revenues towards debt service requirements: a. The project requires monies not available from other sources. b. Matching fund monies are available which may be lost if not applied for in a timely manner. c. Catastrophic conditions. d. The project to be financed will generate net positive revenues (i.e., the additional tax revenues generated by the project will be greater than the debt service requirements). The net revenues should not simply be positive over the life of the bonds, but must be positive each year within a reasonably short period (e.g., by the third year of debt service payments). 33. McDowell Sonoran Preservation debt service will be funded by the dedicated .35% privilege tax. The City’s privilege tax to revenue bond debt service goal will be at least 1.5:1 for senior lien debt to ensure the City’s ability to pay for preserve debt from this elastic revenue source. 34. Improvement District (ID) and Community Facility District (CFD) Bonds shall be permitted only when there is a general City benefit. ID and CFD bonds will be utilized only when it is expected that they will be issued for their full term. It is intended that ID and CFD bonds will be primarily issued for existing neighborhoods desiring improvements to their property such as roads, water lines, sewer lines, streetlights, and drainage. COMPREhENSIVE FINANCIAL POLICIES O a. Improvement District debt will be permitted only when the full cash value of the property, as reported by the Assessor’s Office, to debt ratio (prior to im provements being installed) is a minimum of 3/1 prior to issuance of debt and 5/1 or higher after construction of improvements. Should the full cash value to debt ratio not meet the minimum requirements, property value may be determined by an appraisal paid for by the applicant and administered by the City. In addition, the City’s cumulative improvement district debt will not exceed 5 percent of the City’s secondary assessed valuation. Bonds issued to finance improvement district projects will not have maturities longer than ten years. b. Community Facility District debt will be permitted only when the full cash value of the property, as reported by the Assessor’s Office, to debt ratio (prior to improvements being installed) is a minimum of 3/1 prior to issuance of debt and 5/1 or higher after construction of improvements. In addition, the City’s cumulative facility district debt will not exceed 5 percent of the City’s secondary assessed valuation. The landowner/developer shall also contribute $.25 in public infrastructure improvement costs of each dollar of public infrastructure improvement debt to be financed by the district. 35. Debt financing should not exceed the useful life of the infrastructure improvement with the average (weighted) bond maturities at or below ten years. 36. A ratio of current assets to current liabilities of at least 2/1 will be maintained to ensure the City’s ability to pay short-term obligations. 37. Bond interest earnings will be limited to funding changes to the bond financed Capital Improvement Plan, as approved by City Council, or be applied to debt service payment on the bonds issued for construction of this plan. oveRvIew 38. utility rates will be set, as a minimum, to ensure the ratio of revenue to debt service meets our bond indenture requirement of 1.2/1. The City goal will be to maintain a minimum ratio of utility revenue to debt service of 1.6/1 or greater, to ensure debt coverage in times of revenue fluctuations attributable to weather or other causes, and to ensure a balanced pay-as-you-go Capital Improvement Plan. Reserve Policies 39.All fund designations and reserves will be evaluated annually for long-term adequacy and use requirements in conjunction with development of the City’s balanced five year financial plan. 40.general Fund Stabilization Reserve of 10 percent of annual general governmental (general and Transportation funds) operating expenditures will be maintained for unforeseen emergencies or catastrophic impacts to the City. Funds in excess of 10 percent, but not to exceed $5 million, may be used for economic investment in the community when justified by the financial return to the City. 41.Debt Service Reserve will be funded with secondary property taxes, levied by City Council, sufficient to pay the bonded indebtedness for general Obligation bond principal and interest. A debt service sinking fund will be maintained to account for these restricted revenues and debt payments, as well as any additional debt amounts deemed to be advisable and necessary for any public or municipal purposes. An excise tax debt reserve will be funded at no less than the annual debt service for all currently outstanding (1%) excise tax supported debt. 42.Water and Sewer Fund Reserves will be maintained to meet three objectives: (1) ensure adequate funding for operations; (2) to ensure infrastructure repair and replacement; and, (3) to provide working capital to provide level rate change for customers. COMPREhENSIVE FINANCIAL POLICIES O a. An Operating Reserve will be funded not to exceed 90 days of budgeted system operating expenditures to provide sufficient expenditure flexibility during times of unusual weather resulting in variations in average consumption and associated operating expenses. b. A Replacement and Extension Reserve will be maintained, per bond indenture requirements, to meet the minimum requirement of 2% of all tangible assets of the system to ensure replacement of water and sewer infrastructure. c. In addition, Working Capital will be funded based upon a multi-year financial plan to provide adequate cash for water and sewer capital improvements and to level the impact of rate increases upon our customers. 43. Solid Waste Management Fund Reserve will be funded not to exceed 90 days of budgeted system operating expenditures to provide contingency funding for costs associated with solid waste disposal. Costs may include site purchase, technology applications, or intergovernmental investment to maximize the value of waste disposal activities. 44. Aviation Fund Reserve will be funded not to exceed 90 days of budgeted system operating expenditures to provide contingency funding for costs associated with airport operations. Costs may include site purchase, technology applications, or inter-governmental investment to maximize the value of airport activities. 45. Self-Insurance Reserves will be maintained at a level, which, together with purchased insurance policies, will adequately indemnify the City’s property, liability, and health benefit risk. A qualified actuarial firm shall be retained on an annual basis in order to recommend appropriate funding levels, which will be approved by Council. 38 oveRvIew 46. Fleet Management Reserve will be maintained based upon lifecycle replacement plans to ensure adequate fund balance required for systematic replacement of fleet vehicles and operational contingencies. Operating departments will be charged for fleet operating costs per vehicle class and replacement costs spread over the useful life of the vehicles. 47. Contingency Reserves to be determined annually will be maintained to offset unanticipated revenue shortfalls and/or unexpected expenditure increases. Contingency reserves may also be used for unanticipated and/or inadequately budgeted events threatening the public health or safety. use of contingency funds should be utilized only after all budget sources have been examined for available funds, and subject to City Council approval. 39 Financial Reporting Policies 48. The City’s accounting and financial reporting systems will be maintained in conformance with all state and federal laws, generally accepted accounting principles (gAAP) and standards of the governmental Accounting Standards Board (gASB) and the government Finance Officers Association (gFOA). 49. An annual audit will be performed by an independent public accounting firm; with an audit opinion to be included with the City’s published Comprehensive Annual Financial Report (CAFR). The independent auditor will present CAFR and discuss audit findings concerning internal controls and operational efficiencies at a public meeting. 50. The City’s CAFR will be submitted to the gFOA Certification of Achievement for Excellence in Financial Reporting Program. The financial report should be in conformity with gAAP, demonstrate compliance with finance related legal and contractual provisions, disclose thoroughness and detail sufficiency, and minimize ambiguities and potentials for misleading inference. COMPREhENSIVE FINANCIAL POLICIES O 51. The City’s CAFR will also be submitted to Nationally Recognized Municipal Securities Information Repositories (NRMSIRs) as a continuing commitment to disclose thoroughness to enable investors to make informed decisions. 52. The City’s Budget will be submitted to the gFOA Distinguished Budget Presentation Program. The budget should satisfy criteria as a financial and programmatic policy document, as a comprehensive financial plan, as an operations guide for all organizational units and as a communications device for all significant budgetary issues, trends and resource choices. 53. Financial systems will maintain internal controls to monitor revenues, expenditures, and program performance on an ongoing basis. City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 40 City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 41 BudGeT BY Fund To ensure legal compliance and financial management for the various restricted revenues and program expenditures, the City’s accounting and budget structure is segregated into various funds. This approach is unique to the government sector. Fund accounting segregates functions and activities into separate selfbalancing funds that are created and maintained for specific purposes; for example, Special Revenue Funds are used to account for the expenditure of restricted revenues, while Enterprise Funds account for self-sustaining “business” related activities for which a fee is charged to cover all costs associated with that business. The general Fund is the City’s chief operating fund and is used to account for all financial resources, except those that are legally required to be accounted for in another fund. Fund A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. General Fund The general Fund is the primary operating fund of the City. It exists to account for the resources devoted to finance the services traditionally associated with local government. Included in these services are police and fire protection, parks and recreation, planning and economic development, general administration of the City, and any other activity for which a special fund has not been created. FuND ACCOuNTINg- FuND TyPES Special Revenue Fund Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City maintains the following four Special Revenue Funds: Transportation Fund, Preservation Privilege Tax, Special Programs, and grants. debt Service Fund Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general longterm debt principal and interest which are not serviced by the general, Special Revenue, and Enterprise Funds. It does not include contractual obligations accounted for in the individual funds. enterprise Fund Enterprise Funds are used to account for operations, including debt service, which are financed and operated similarly to private businesses, where the intent is that the service is self-sufficient, with all costs supported predominantly by user charges. The City maintains three Enterprise Funds to account for Water & Sewer, Solid Waste, and Aviation activities. Internal Service Fund Internal Service Funds are used to account for the financing, on a costreimbursement basis, of commodities or services provided by one program for the benefit of other programs within the City. The City maintains two Internal Service Funds to account for Fleet and Self-Insurance activities. B Trust Funds Trust Funds are used to administer resources received and held by the City as the trustee or agent for others. use of these funds facilitates the discharge of responsibility placed upon the City by virtue of law or other similar authority. Capital Improvement Funds Capital Improvement Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. The City maintains several Capital Project funds to ensure legal compliance and financial management for various restricted revenues. Examples of restricted revenue funds are: BOND CAPITAL FuNDS – used to account for bond proceeds to be used only for approved bond projects. TRANSPORTATION PRIVILEgE TAx CAPITAL FuND – used to account solely for transportation projects. gRANT CAPITAL FuNDS – used to account for the proceeds of capital grants. ENTERPRISE CAPITAL FuNDS – used to account for utility rates and development fees for specific projects. gENERAL CAPITAL FuNDS – used to account for transfers-in from the general Fund and for any other activity for which a restricted revenue fund has not been created. 42 BudGeT BY Fund Actual 2008/09 Source of Funds: Beginning Fund Balance: General Fund Reserve Photo Enforcement Loop 101 Program - Contingency Operating Contingency Unreserved Fund Balance (1) Total Beginning Fund Balance 43 Revenues: Taxes - Local Privilege Tax Privilege Tax - Public Safety Property Tax Transient Occupancy Tax (100% GF starting in FY09/10) Light & Power Franchise Cable TV Franchise Salt River Project Lieu Tax Stormwater Water Quality Charge Taxes - From Other Agencies State Shared Sales Tax State Revenue Sharing Auto Lieu Tax Licenses, Permits & Fees Building Permit Fees & Charges Fire Service Charges Business Licenses & Fees Recreation Fees WestWorld Fines & Forfeitures Court Fines Parking Fines Photo Enforcement Revenue Photo Enforcement Loop 101 Program Library Fines & Fees Interest Earnings/Property Rental Interest Earnings Property Rental Other Revenue Miscellaneous 30-Day Tow Program Capital Improvement Plan Cost Allocation Reimbursements Intergovernmental Revenue In Lieu Property Tax Franchise Fees Indirect/Direct Cost Allocation Subtotal Cash Transfers In CIP Funds CIP Funds - Operating Projects Special Programs Fund (Cultural Council) Special Programs Fund (Community Services-Human Svs) Water & Sewer Fund - Security Contract Self Insurance Fund Subtotal Total Sources B gENERAL FuND SuMMARy Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 28,131,257 1,626,388 2,500,000 12,010,835 44,268,480 25,860,367 5,000,000 3,836,635 34,697,002 25,860,367 5,000,000 10,769,901 41,630,268 25,866,610 5,000,000 6,319,503 37,186,112 87,328,386 8,429,071 22,607,397 1,524,624 7,791,429 3,565,549 139,220 814,326 75,900,000 7,362,300 23,654,407 8,231,300 8,400,000 3,600,000 139,000 863,000 78,936,000 7,656,792 23,654,407 7,079,822 8,400,000 3,300,000 139,000 863,000 80,514,720 7,809,928 24,713,673 10,591,667 8,200,000 3,300,000 140,000 888,890 18,935,910 35,102,991 8,151,324 18,047,839 30,308,042 8,000,000 17,347,839 30,308,948 8,000,000 17,611,632 22,845,634 8,156,740 6,911,195 1,752,393 1,733,104 3,206,506 2,663,389 8,149,000 2,350,000 1,680,000 3,022,000 2,888,000 8,149,000 1,346,745 1,680,000 3,022,000 2,873,000 8,220,000 644,641 1,709,167 3,360,000 2,610,500 6,670,715 422,697 1,683,826 781,933 302,729 7,166,300 495,000 1,655,700 389,640 7,156,414 504,886 1,655,700 299,640 7,277,439 425,000 1,756,727 322,000 3,690,990 3,222,002 1,656,860 3,194,029 1,656,860 3,194,029 958,956 2,776,170 643,477 200,000 901,002 455,408 1,160,325 2,480,099 6,328,619 12,936,936 252,537,572 1,000,000 400,000 861,588 350,000 1,049,900 2,675,320 6,684,785 14,773,794 244,947,804 1,016,400 400,000 861,588 365,000 932,057 2,675,320 6,542,388 12,163,344 242,180,179 500,000 430,000 861,562 405,000 850,584 1,752,180 6,813,584 12,742,338 239,188,732 13,935,983 130,000 454,438 5,000,000 19,520,421 9,000,000 300,000 130,000 9,430,000 9,000,000 300,000 269,658 454,438 10,024,096 3,571,800 454,438 4,026,238 272,057,993 254,377,804 252,204,275 243,214,970 BudGeT BY Fund Use of Funds: Divisions City Clerk City Attorney City Auditor City Court Scottsdale City Council City Manager Community Services Public Safety - Police Public Safety - Fire Public Works Planning, Neighborhoods, & Transportation Finance & Accounting Human Resources Information Technologyy Economic Vitality Administrative Services Inventory/Other Leave Accrual Payments Estimated Personnel Savings from Vacant Positions Estimated Personnel Savings - Other Estimated Division Savings (non-vacant positions) Early Retirement Incentive Program Estimated Operating Impacts - CIP Bed Tax Encumbrance Future Budget Reductions/IOU Subtotal Contracts Payable/COP Contracts Payable Certificates of Participation - Radio Financing Certificates of Participation Other Subtotal Total Operating Budget Cash Transfers Out Debt Service Fund - MPC Excise Debt Debt Service Fund - MPC Debt - Bed Tax CIP - General Fund Maintenance CIP - General Fund - Non-Maintenance CIP - Public Safety Radio Sys-Photo Enforce Loop 101 Bal Transportation Fund - Deficit Elimination Transfer Special Programs Fund - Bed Tax Special Programs Fund - Bed Tax/CVB Advancing of Funds Special Programs Fund - Community Services Special Programs Fund - Preservation Rehab Special Programs Fund - Court Enhancement Streetlight Districts Fund Grants Fund Total Cash Transfers Out Total Uses Sources Over/(Under) Uses - Before Future Initiatives Future Initiatives Sources Over/(Under) Uses - After Future Initiatives Ending Fund Balance - After Future Initiatives General Fund Reserve Operating Contingency Unreserved Fund Balance Total Ending Fund Balance B gENERAL FuND SuMMARy Actual 2008/09 Adopted 2009/10 1,156,255 6,220,155 996,880 5,772,082 935,551 2,240,840 43,417,063 88,325,246 30,732,995 17,684,695 22,310,557 6,171,390 3,439,680 10,284,151 9,410,958 3,414,922 249,694 252,763,114 904,960 6,384,959 837,820 4,699,829 790,904 1,742,708 38,499,263 87,544,937 28,711,445 18,983,113 17,163,847 5,061,932 4,085,769 10,333,523 9,630,700 3,213,317 1,790,184 (5,000,000) (12,536,834) 222,842,376 Forecast 2009/10 1,212,987 6,363,097 815,564 4,572,059 716,023 1,609,862 37,879,504 85,469,641 27,438,192 18,360,893 16,871,107 5,051,568 3,686,585 9,863,521 9,298,049 3,135,881 578,391 (1,022,306) (2,850,000) (2,118,000) 431,000 227,363,618 Adopted 2010/11 1,189,115 5,979,807 827,586 4,669,882 616,489 1,407,520 37,353,595 82,991,710 27,893,809 17,659,448 16,997,179 4,935,907 3,525,008 9,903,567 11,715,214 2,816,220 1,754,607 (3,000,000) 1,245,141 230,481,805 2,634,686 40,910 918,790 4,963 3,599,349 2,724,356 1,021,600 918,790 4,664,746 1,637,393 918,790 2,556,183 3,066,770 511,800 918,790 4,497,360 256,362,463 227,507,122 229,919,801 234,979,165 5,787,446 3,300,177 1,877,298 7,023,454 240,898 60,000 2,223 37,245 5,000 18,333,741 6,695,185 1,550,000 9,000,000 5,571,026 6,585,040 60,000 29,461,251 6,691,810 1,350,000 9,000,000 3,387,962 5,663,858 575,000 60,000 26,728,630 274,696,204 256,968,373 256,648,431 6,686,825 746,263 2,239,230 1,818,092 5,295,834 (300,000) 170,000 60,000 16,716,244 251,695,409 (2,638,211) (2,638,211) (2,590,569) (2,590,569) (4,444,156) (4,444,156) (8,480,439) (8,480,439) 25,860,367 5,000,000 10,769,902 41,630,268 26,125,798 5,000,000 980,634 32,106,432 25,866,610 4,853,381 6,466,122 37,186,112 26,188,646 2,500,000 17,027 28,705,673 44 BudGeT BY Fund Adopted 2010/11 Source of Funds: Beginning Fund Balance: General Fund Reserve Photo Enforcement Loop 101 Program - Contingency Operating Contingency Unreserved Fund Balance (1) Total Beginning Fund Balance 45 Revenues: Taxes - Local Privilege Tax Privilege Tax - Public Safety Property Tax Transient Occupancy Tax (100% GF starting in FY09/10) Light & Power Franchise Cable TV Franchise Salt River Project Lieu Tax Stormwater Water Quality Charge Taxes - From Other Agencies State Shared Sales Tax State Revenue Sharing Auto Lieu Tax Licenses, Permits & Fees Building Permit Fees & Charges Fire Service Charges Business Licenses & Fees Recreation Fees WestWorld Fines & Forfeitures Court Fines Parking Fines Photo Enforcement Revenue Photo Enforcement Loop 101 Program Library Fines & Fees Interest Earnings/Property Rental Interest Earnings Property Rental Other Revenue Miscellaneous 30-Day Tow Program Capital Improvement Plan Cost Allocation Reimbursements Intergovernmental Revenue In Lieu Property Tax Franchise Fees Indirect/Direct Cost Allocation Subtotal Cash Transfers In CIP Funds CIP Funds - Operating Projects Special Programs Fund (Cultural Council) Special Programs Fund (Community Services-Human Svs) Water & Sewer Fund - Security Contract Self Insurance Fund Subtotal Total Sources B gENERAL FuND FIVE-yEAR PLAN Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 25,866,610 5,000,000 6,319,503 37,186,112 26,188,646 2,500,000 17,027 28,705,673 24,801,881 2,500,000 1,403,793 28,705,673 25,598,725 2,500,000 606,949 28,705,673 26,371,942 2,500,000 (166,269) 28,705,673 80,514,720 7,809,928 24,713,673 10,591,667 8,200,000 3,300,000 140,000 888,890 82,125,014 7,966,126 26,105,225 10,909,417 8,300,000 3,300,000 145,600 915,557 84,096,015 8,157,313 27,426,353 11,454,888 8,500,000 3,300,000 151,424 943,023 86,198,415 8,361,246 28,782,084 12,256,730 8,700,000 3,300,000 157,481 971,314 88,870,566 8,620,445 30,204,731 13,359,835 8,900,000 3,300,000 163,780 1,000,454 17,611,632 22,845,634 8,156,740 17,963,865 18,250,000 8,200,000 18,394,997 20,000,000 8,300,000 18,854,872 21,000,000 8,400,000 19,439,373 22,050,000 8,500,000 8,220,000 644,641 1,709,167 3,360,000 2,610,500 8,721,000 319,741 1,726,259 3,447,000 2,710,500 9,071,380 320,079 1,734,890 3,600,000 2,610,500 9,497,521 324,424 1,743,564 3,725,000 2,610,500 9,931,003 327,776 1,752,282 3,850,000 2,610,500 7,277,439 425,000 1,756,727 322,000 7,350,213 425,000 1,783,078 331,000 7,497,217 425,000 1,783,078 340,000 7,572,189 425,000 1,800,909 350,000 7,723,633 425,000 1,800,909 360,000 958,956 2,776,170 1,143,948 2,833,358 1,692,400 2,907,078 2,176,023 3,003,364 2,522,134 3,098,469 500,000 430,000 861,562 405,000 850,584 1,752,180 6,813,584 12,742,338 239,188,732 525,000 430,000 868,329 410,000 850,584 874,782 7,140,326 13,620,174 239,691,096 550,000 430,000 878,203 415,000 850,584 7,363,710 15,042,471 248,235,604 575,000 430,000 888,329 420,000 850,584 7,606,982 15,730,471 256,712,003 600,000 430,000 906,096 425,000 850,584 7,869,190 16,407,065 266,298,825 3,571,800 454,438 4,026,238 691,000 463,527 1,154,527 252,152 472,797 724,949 482,253 482,253 491,898 491,898 243,214,970 240,845,623 248,960,553 257,194,256 266,790,723 BudGeT BY Fund Adopted 2010/11 Use of Funds: Divisions City Clerk City Attorney City Auditor City Court Scottsdale City Council City Manager Community Services Public Safety - Police Public Safety - Fire Public Works Planning, Neighborhoods, & Transportation Finance & Accounting Human Resources Information Technologyy Economic Vitality Administrative Services Inventory/Other Leave Accrual Payments Estimated Personnel Savings from Vacant Positions Estimated Personnel Savings - Other Estimated Division Savings (non-vacant positions) Early Retirement Incentive Program Estimated Operating Impacts - CIP Bed Tax Encumbrance Future Budget Reductions/IOU Subtotal Contracts Payable/COP Contracts Payable Certificates of Participation - Radio Financing Certificates of Participation Other Subtotal Total Operating Budget Cash Transfers Out Debt Service Fund - MPC Excise Debt Debt Service Fund - MPC Debt - Bed Tax CIP - General Fund Maintenance CIP - General Fund - Non-Maintenance CIP - Public Safety Radio Sys-Photo Enforce Loop 101 Bal Transportation Fund - Deficit Elimination Transfer Special Programs Fund - Bed Tax Special Programs Fund - Bed Tax/CVB Advancing of Funds Special Programs Fund - Community Services Special Programs Fund - Preservation Rehab Special Programs Fund - Court Enhancement Streetlight Districts Fund Grants Fund Total Cash Transfers Out Total Uses Sources Over/(Under) Uses - Before Future Initiatives Future Initiatives Sources Over/(Under) Uses - After Future Initiatives Ending Fund Balance - After Future Initiatives General Fund Reserve Operating Contingency Unreserved Fund Balance Total Ending Fund Balance B gENERAL FuND FIVE-yEAR PLAN 1,189,115 5,979,807 827,586 4,669,882 616,489 1,407,520 37,353,595 82,991,710 27,893,809 17,659,448 16,997,179 4,935,907 3,525,008 9,903,567 11,715,214 2,816,220 1,754,607 (3,000,000) 1,245,141 230,481,805 Forecast 2011/12 899,691 6,206,004 856,350 5,370,280 639,445 1,452,507 38,313,831 85,933,225 28,940,400 18,122,512 17,685,267 5,141,909 3,638,091 10,168,552 11,858,925 2,923,741 2,523,445 (3,150,000) 1,338,200 2,402,657 241,265,031 Forecast 2012/13 1,262,209 6,549,019 880,666 5,736,529 652,060 1,490,673 39,386,024 88,282,533 29,697,588 18,536,837 16,766,623 5,300,510 3,797,856 10,322,218 11,280,078 3,010,812 1,873,529 (3,307,500) 1,933,900 2,576,471 246,028,635 Forecast 2013/14 953,050 6,747,183 905,301 5,877,853 665,221 1,529,522 40,522,419 90,697,968 30,473,442 18,960,354 17,260,128 5,462,044 3,900,216 10,656,860 11,408,635 3,100,009 1,886,872 (3,472,875) 2,060,800 2,851,636 252,446,638 Forecast 2014/15 1,330,482 6,949,374 930,676 6,022,720 678,790 1,569,488 41,642,164 93,169,500 31,265,168 19,392,858 17,765,258 5,627,997 4,004,895 10,932,240 11,673,192 3,191,559 1,901,967 (3,646,519) 2,171,100 2,942,213 259,515,122 3,066,770 511,800 918,790 4,497,360 4,086,785 2,622,200 918,790 7,627,775 3,220,030 2,621,913 918,790 6,760,733 3,291,918 2,624,675 918,790 6,835,383 3,422,754 2,625,375 918,790 6,966,919 234,979,165 248,892,806 252,789,368 259,282,021 266,482,041 7,621,600 897,166 2,421,748 4,221,195 5,727,444 170,000 60,000 21,119,153 8,218,350 903,117 2,524,980 4,246,567 6,128,365 170,000 60,000 22,251,379 8,290,600 907,664 2,628,212 4,127,079 6,679,918 170,000 60,000 22,863,472 6,686,825 746,263 2,239,230 1,818,092 5,295,834 (300,000) 170,000 60,000 16,716,244 251,695,409 7,623,900 886,823 2,247,643 4,188,881 5,454,709 (275,000) 170,000 60,000 20,356,956 269,249,762 273,908,521 281,533,401 289,345,513 (8,480,439) (8,480,439) (28,404,139) 28,404,139 0 (24,947,968) 24,947,968 0 (24,339,145) 24,339,145 (0) (22,554,790) 23,587,478 1,032,688 26,188,646 2,500,000 17,027 28,705,673 24,801,881 2,500,000 1,403,793 28,705,673 25,598,725 2,500,000 606,949 28,705,673 26,371,942 2,500,000 (166,269) 28,705,673 27,231,592 2,500,000 6,769 29,738,361 46 BudGeT BY Fund gENERAL FuND- REVENuE B Fund Purpose The general Fund exists to account for the activity associated with traditional local government services such as police, fire, parks and recreation, planning and economic development and general City administration. under Arizona State law, each city and town must maintain a general Fund and account for highway user Revenues (see the Transportation Fund in the Special Revenue Fund section). The general Fund is the largest fund and typically the fund of most interest and significance to citizens. General Fund Revenues and Transfers-In general Fund resources include both revenues and transfers-in from other fund types such as the Special Revenue, Enterprise, and the Capital Improvement Plan Funds. Estimated general Fund revenues and transfers-in for Fy 2010/11 equals $243.2 million, a decrease of approximately $9.0 million, or 4.0 percent, from the Fy 2009/10 year-end forecast of $252.2 million. The decrease in the forecasted general Fund revenues reflects decreases in Scottsdale’s revenue categories, such as State Shared Tax Revenues (12.7%) and Interest Earnings/Property Rental (23%). Certain components of the revenue sources are subject to dramatic peaks and valleys from year to year. These numbers reflect the current recovery from the economic recession and a continued decrease in consumer confidence. Revenues and transfers-in determine Scottsdale’s capacity to provide program services to our citizens. The major resources, which fund the program operating budget, debt service, and capital projects, are identified in this section. 47 BudGeT BY Fund gENERAL FuND- REVENuE B local Tax Revenues Local Tax Revenues of $136.2 million represent 56 percent of the general Fund total operating resources and are the fund’s largest category of revenue source. With the exception of property taxes, all of these revenues are “elastic”, meaning they vary directly with the economy – during economic expansion, elastic tax revenues increase, due to higher levels of consumer spending and tourism activity. During an economic downturn, the opposite is true and tax revenue levels decline. Local Tax Revenues consist of the following: Privilege (Sales) Tax Privilege (Sales) Tax represents the 1.0 percent general Fund share of the City’s total 1.65 percent sales tax that is available for any municipal purpose. The remaining 0.65 percent of the tax has dedicated uses and is allocated as follows: general Fund (Public Safety .10%), Special Revenue Fund (Transportation .20%) and Special Revenue Fund (Preservation .35%). This revenue also includes sales tax application and penalty fees. It is the general Fund’s single largest revenue source, and the general Fund portion of the tax is used to pay for general governmental operations and the repayment of excise debt. For Fy 2010/11, the adopted revenue budget is $80.5 million, which is approximately a $1.6 million, or a 2.0 percent increase over the Fy 2009/10 year-end forecast of $78.9 million. The regional economy continues to struggle during the economic recovery and privilege tax is expected to grow moderately in the five-year revenue forecast. The five-year privilege tax forecast is shown in detail by major business category in the Appendix. Staff forecast the privilege tax collections by category to arrive at more of precise total sales tax revenue. The revenue forecasts for each business category use various assumptions that combine historical elements as well as emerging fiscal, economic and legal considerations. General Fund Privilege (Sales) Tax Adopted Budget to Actual/Forecast* (in millions) ADOPTED ACTuAL/ BuDgET FORECAST* FISCAL yEAR 2010/11 $80.5 $80.5* 2009/10 $75.9 $78.9* 2008/09 $106.3 $87.3 2007/08 $113.6 $105.6 2006/07 $110.3 $109.7 48 BudGeT BY Fund 49 gENERAL FuND- REVENuE B Privilege (Sales) Tax - Public Safety Privilege (Sales) Tax - Public Safety represents the .10 percent of the total 1.65 percent sales tax rate and is dedicated exclusively to public safety enhancements. The voters approved the .10 percent increase in the sales tax for public safety in May 2004. The Public Safety sales tax forecast calls for Fy 2010/11 revenues of about $7.8 million versus an expected Fy 2009/10 year-end of approximately $7.7 million. The same business category analysis used for the general Fund 1.0 percent tax was applied when forecasting the Public Safety Privilege Tax. Privilege (Sales) Tax – Public Safety Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $7.8 $7.8* 2009/10 $7.4 $7.7* 2008/09 $10.3 $8.4 2007/08 $11.4 $10.2 2006/07 $11.0 $10.5 Property Tax (Primary) Property Tax (Primary) represents the general Fund’s portion of the Primary Property Tax which is levied on the assessed value of all property within the City to help pay for City general governmental operation costs. By Arizona State Statute, the primary property levy is limited to a 2.0 percent increase per year, plus an allowance for annexations and new construction. Primary property tax accounts for 10.3 percent of the total Adopted Fy 2010/11 general Fund sources. The Fy 2010/11 revenue forecast of $24.7 million represents an increase of slightly more than $1.0 million, or 4.48 percent, from the Fy 2009/10 year-end forecast of $23.7 million. The adopted primary property tax rate of approximately 38 cents per $100 of assessed valuation represents a 1 cents increase from the Fy 2009/10 rate. Property Tax (Primary) Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $24.7 $24.7* 2009/10 $23.7 $23.7* 2008/09 $22.4 $22.6 2007/08 $21.0 $20.4 2006/07 $20.1 $19.6 BudGeT BY Fund gENERAL FuND- REVENuE B Transient occupancy (“Bed”) Tax Transient Occupancy (“Bed”) Tax forecast reflects a voter approved Transient Occupancy Tax increase from 3.0 percent to 5.0 percent on hotel and motel room rentals in addition to the sales tax. By City ordinance, prior to Fy 2009/10, 80 percent of the Bed Tax revenue was reflected as a revenue source within the Special Programs Fund. Beginning in Fy 2009/10, 100 percent of the original 3.0 percent Bed Tax revenue was recorded in the general Fund with a corresponding transfer out of 80 percent to the Special Programs Fund. In March 2010 voters approved an increase to the bed tax from 3.0 percent to 5.0 percent, effective July 1, 2010. half of the 5.0 percent tax is now restricted for destination marketing. The remaining half may be used in the general Fund for tourism-related uses. For Fy 2010/11, this transferout amount will increase to be half of the 5.0 percent Transient Occupancy Tax. Transient occupancy (“Bed”) Tax Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $10.6 $10.6* 2009/10 $8.2 $7.1* 2008/09 $2.0 $1.5 2007/08 $2.2 $2.0 2006/07 $1.9 $1.9 Stormwater Quality Charge Stormwater Quality Charge revenue relates to the water quality charge to help pay a portion of the City’s Stormwater Management program costs. These costs are driven by “unfunded” federal mandates that require the City to operate under a National Pollution Discharge Elimination System (NPDES) permit and to address the quality of stormwater runoff. Charges are forecasted at $0.9 million for Fy 2010/11. Stormwater Quality Charge Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.9 $0.9* 2009/10 $0.9 $0.9* 2008/09 $0.8 $0.8 2007/08 $0.7 $0.9 2006/07 $0.7 $0.7 other Taxes Other Taxes — Light & Power and Cable TV Franchise, Salt River Project In-Lieu Tax and Fire Insurance Premium include franchise taxes charged on revenues from utility and cable companies for use of City right-of-ways and in-lieu property tax for municipal utilities. The light & power franchise tax is projected to decrease (2.38) percent, or $0.2 million. The cable TV franchise tax is expected to remain relatively flat to the Fy 2009/10 year-end forecast of $3.3 million. The Salt River Project In Lieu Tax is expected to remain flat at the Fy 2009/10 year-end forecast of $0.1 million. other Taxes Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $11.6 $11.6* 2009/10 $12.1 $11.8* 2008/09 $11.5 $11.5 2007/08 $10.9 $11.5 2006/07 $9.5 $10.8 50 BudGeT BY Fund gENERAL FuND- REVENuE B State-Shared Tax Revenues State-Shared Tax Revenues include the state sales tax, income tax collections, and auto lieu tax, which are shared with all cities and towns throughout the state. The formula for distribution of the sales and income tax revenue is based upon the relation of the City’s population to the total state population. under this distribution method, mature cities reaching build-out will see their portion of state-shared tax revenues decrease, as rapidly growing cities receive a greater share of the revenue distribution. The 2010 census will likely have an adverse impact on the City’s share, as faster growing cities and towns within the region receive an increased proportion of the overall pool of state-shared revenues. The State Department of Revenue collects and distributes funds and provides revenue forecasts to cities and towns for these revenue sources. The auto lieu tax is shared based on the City’s population in relation to the total incorporated population of Maricopa County. State-Shared Revenues consist of the following: 51 State Shared Sales Tax State Shared Sales Tax cities and towns share in a portion of the 6.60 percent sales tax collected by the State – the State retains 50.0 percent, schools are designated to receive 40.0 percent, and the remaining 10.0 percent is allocated to cities and towns based on percentage of population. The forecast calls for Fy 2010/11 revenues of approximately $17.6 million versus an expected Fy 2009/10 year-end of $17.3 million. Revenue is expected to slightly increase about $0.3 million in Fy 2010/11. State Shared Sales Tax Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $17.6 $17.6* 2009/10 $18.0 $17.3* 2008/09 $22.0 $18.9 2007/08 $23.9 $21.6 2006/07 $20.6 $22.3 State Revenue Sharing (Income Tax) State Revenue Sharing (Income Tax) there is a twoyear lag between the time citizens earn and report results to the State and when the State submits the actual revenues to cities and towns. Cities and towns in Arizona are prohibited from levying a local income tax; however, they are entitled to 15.0 percent of state income tax collections from two years previous. Revenue from State Shared Income Tax is forecasted at $22.8 million for Fy 2010/11, a decrease over expected Fy 2009/10 year-end forecast of $30.3 million. State Revenue Sharing (Income Tax) Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $22.8 $22.8* 2009/10 $30.3 $30.3* 2008/09 $34.0 $35.1 2007/08 $33.1 $33.0 2006/07 $20.8 $26.7 BudGeT BY Fund State Auto lieu Tax State Auto Lieu Tax is part of the vehicle license fees collected by Maricopa County, but is actually a State revenue source. The City receives its share of the vehicle license tax collection based on its population in relation to the total incorporated population of Maricopa County. The only stipulation on the use of this revenue is that it must be spent on a public purpose. The budget for Fy 2010/11 is forecasted at $8.2 million, which is a slight increase from the Fy 2009/10 year-end forecast of $8.0 million. gENERAL FuND- REVENuE B State Auto lieu Tax Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $8.2 $8.2* 2009/10 $8.0 $8.0* 2008/09 $9.7 $8.2 2007/08 $10.4 $10.0 2006/07 $9.6 $9.8 licenses, Permits & Fees Revenue Licenses, Permits & Fees Revenue include revenue from various business licenses, all fees recovered as a part of the development process, and recreation fees. This category includes building, electrical, mechanical, and plumbing permits, as well as subdivision, zoning, and plan check fees. Recreation Fees include revenue from the various recreational programs, classes, entry fees, and WestWorld event revenue. In accordance with Scottsdale’s adopted financial policy, all fees and charges are reviewed annually. Scottsdale’s development activity is slowing as our community is changing from growth oriented to a maturing community focused more on sustaining its high quality of life. The new commercial and residential construction activity is expected to continue, but at a slower pace. The attractiveness of Scottsdale, low commercial vacancy rates and low mortgage interest rates are major contributors to the Licenses, Permits & Fees Revenue. licenses, Permits & Fees Revenue consist of the following: Building Permits Fees & Charges Building Permits Fees & Charges include fees assessed to developers/builders that recover the cost of four primary functions: 1) reviewing/processing development applications, 2) plan review of construction documents, 3) the issuance of building, electrical, mechanical and plumbing permits, and 4) the inspection of buildings/structures in the construction phase. The Fy 2010/11 forecast of $8.2 million takes into consideration the current economic conditions, along with a 3.0 percent increase to certain Planning and Development Services fees effective July 8, 2010. Building Permit Fees & Charges Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $8.2 $8.2* 2009/10 $8.1 $8.1* 2008/09 $14.5 $6.9 2007/08 $16.5 $12.5 2006/07 $17.0 $16.1 52 BudGeT BY Fund gENERAL FuND- REVENuE B Fire Service Charges Fire Service Charges include service fees for the cost recovery of fire and medical standbys at special events, after hours inspections, ambulance staffing, and medical enhancement cost associated with the ambulance agreement. In addition, the department collects fees for CPR classes, permits and incident reports. For Fy 2010/11 revenues are forecasted at $0.6 million, a significant decrease in the Fy 2009/10 yearend forecast of $1.3. This is primarily due to a change in the PMT dispatch fees, reduction in labor and delinquent charges. The City of Phoenix invoices PMT directly for dispatch and the reduction in labor fees is a result of a reduction in a rescue unit that will not be staffed by the City of Scottsdale when station 8 opens. The delinquent charges owed by PMT have been fully recovered. Fire Service Charges Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.6 $0.6* 2009/10 $2.4 $1.3* 2008/09 $1.4 $1.8 2007/08 $1.1 $1.1 2006/07 $1.0 $1.9 Business licenses & Fees Business Licenses & Fees include the licensing of business activity that takes place in Scottsdale and the associated fees relating to the licensure and regulation of specific activity. Revenues of approximately $1.7 million are expected in Fy 2010/11, which is consistent with Fy 2009/10 year-end forecast of $1.7 million. Business licenses & Fees Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $1.7 $1.7* 2009/10 $1.7 $1.7* 2008/09 $1.8 $1.7 2007/08 $1.6 $1.6 2006/07 $2.1 $1.6 Recreation Fees Recreation Fees are budgeted at $3.4 million and include revenue from the various recreational programs, classes, and entry fees. In accordance with the City’s adopted financial policies, recreation fees are reviewed and adjusted annually, if the increase is justified by the analysis and approved by City Council. Recreation Fees Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $3.4 $3.4* 2009/10 $3.0 $3.0* 2008/09 $3.1 $3.2 2007/08 $2.9 $2.8 2006/07 $2.8 $2.8 53 BudGeT BY Fund westworld Fees WestWorld Fees include event revenue (general facility rental, concessions, parking fees, etc.) from events such as horse shows, auto auctions and car shows, consumer and home shows, as well as RV space rental income. Revenues of approximately $2.6 million are expected in Fy 2010/11 versus an expected Fy 2009/10 year-end of $2.9 million. Staff’s Fy 2010/11 revenue forecast is based on future confirmed bookings for WestWorld, Feed and Bedding as well as historical activity. gENERAL FuND- REVENuE B westworld Fees Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $2.6 $2.6* 2009/10 $2.9 $2.9* 2008/09 $2.4 $2.7 2007/08 $2.0 $2.3 2006/07 $2.3 $1.7 Fines and Forfeiture Revenues Fines and Forfeiture Revenues include court, parking, photo radar, and library fines. In the aggregate, the revenue for these items in Fy 2010/11 is projected to be $9.8 million for an increase of approximately $0.2 million over the Fy 2009/10 year-end forecast. Fines and Forfeiture Revenues consist of the following: 54 Court Fines Court Fines are the general Fund portion of penalties or fees assessed by state statute, City ordinance or the Presiding Judge. Examples include: fines, a portion of the registration fee to attend Defensive Driving School, bonds forfeited to the City and collection fees. Revenues of approximately $7.3 million are expected for Fy 2010/11, which reflects a $0.1 million increase from the Fy 2009/10 year-end forecast of $7.2. Court Fines Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $7.3 $7.3* 2009/10 $7.2 $7.2* 2008/09 $6.5 $6.7 2007/08 $5.5 $6.8 2006/07 $5.3 $5.9 Parking Fines Parking Fines are the general Fund portion of parking fees assessed per City ordinance and are forecasted at slightly more than $0.4 million for Fy 2010/11 – which is slightly less than the Fy 2009/10 year-end forecast of $0.5 million. Staff developed revenue estimates based on historical trends. Parking Fines Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.4 $0.4* 2009/10 $0.5 $0.5* 2008/09 $0.3 $0.4 2007/08 $0.3 $0.5 2006/07 $0.3 $0.3 BudGeT BY Fund 55 gENERAL FuND- REVENuE B Photo enforcement Fines Photo Enforcement Fines are the general Fund portion of Photo Enforcement penalties as assessed by the Presiding Judge. Examples include: red light and speeding fines and a portion of the registration fee to attend Defensive Driving School. Revenues are budgeted at about $1.8 million for Fy 2010/11, which represents a decrease of $0.1 million from the Fy 2009/10 year-end forecast of $1.7 million. use of photo enforcement is intended to be a deterrent to unsafe driving and to modify driving habits, not as a revenue producer. Photo enforcement Fines Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $1.8 $1.8* 2009/10 $1.7 $1.7* 2008/09 $1.9 $1.7 2007/08 $2.6 $1.5 2006/07 $2.5 $2.3 Photo enforcement Fines – loop 101 Freeway Photo Enforcement Fines – Loop 101 Freeway represents the revenue previously received from the Photo Enforcement Loop 101 Intergovernmental Agreement (IgA) with the Department of Public Safety (DPS) where photo enforcement was used to target speeding drivers on Scottsdale’s portion of the State Loop 101 Freeway. Scottsdale was the first community in the country to use photo enforcement on a multi-lane limited access freeway. There is no forecasted revenue for Fy 2010/11 as DPS is now fully administering the freeway program. Photo enforcement Fines – loop 101 Freeway Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 -* 2009/10 -* 2008/09 $1.0 $0.8 2007/08 $4.1 $4.3 2006/07 $2.0 $3.9 library Fines & Fees Library Fines & Fees are monies collected when library materials are returned after they are due, are lost, and/or are damaged. Fy 2010/11 revenues are forecasted at $0.3 million – virtually the same as the Fy 2009/10 year-end forecast. library Fines & Fees Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.3 $0.3* 2009/10 $0.4 $0.3* 2008/09 $0.4 $0.3 2007/08 $0.7 $0.4 2006/07 $0.7 $0.6 BudGeT BY Fund gENERAL FuND- REVENuE B Interest earnings Interest Earnings are generated on idle general Fund cash balance throughout the year. Revenue from Interest Earnings is conservatively forecasted at $1.0 million for Fy 2010/11, $0.7 million less than the expected Fy 2009/10 year-end forecast of $1.7 million. This revenue is a function of the relationship between the City’s available cash balance and the interest rate. The City earns interest on idle funds through various investment vehicles in accordance with Arizona Revised Statutes and City Ordinance. The City’s investment policy stresses safety above yield and allows investments in u.S. Treasury and Agency obligations, certificates of deposit, commercial paper, bankers’ acceptances, repurchase agreements, money market funds, and the State of Arizona’s Local government Investment Pool. Interest earnings applicable to bond proceeds and the Capital Improvement Plan (CIP) accrue to the CIP budget and are not included in general Fund revenues. Staff forecasted the interest earnings for Fy 2010/11 based on recent activity and anticipated cash balances. Interest earnings Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $1.0 $1.0* 2009/10 $1.7 $1.7* 2008/09 $4.5 $3.7 2007/08 $5.2 $6.4 2006/07 $2.3 $3.3 Property Rental Property rental revenues are rental fees on facilities such as the Scottsdale Stadium, as well as amounts received from the Tournament Players Club and Princess hotel for percent of revenue on gross sales agreements. The Fy 2010/11 forecasted revenue of approximately $2.8 million represents a decrease over the Fy 2009/10 year-end forecast of $3.2 million. Property Rental Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $2.8 $2.8* 2009/10 $3.2 $3.2* 2008/09 $3.4 $3.2 2007/08 $3.3 $3.5 2006/07 $3.1 $3.4 56 BudGeT BY Fund gENERAL FuND- REVENuE B Miscellaneous and Reimbursements Miscellaneous revenue includes various miscellaneous revenues the City receives during any given year that are not attributable to one of the specific revenue categories noted previously. The Fy 2010/11 revenue is forecasted at $0.5 million, which is less than the Fy 2009/2010 year-end estimate of $1.0 million. Miscellaneous and Reimbursements Adopted Budget to Actual/Forecast* (in millions) ADOPTED ACTuAL/ BuDgET FORECAST* FISCAL yEAR 2010/11 $0.5 $0.5* 2009/10 $1.0 $1.0* 2008/09 $1.0 $0.6 2007/08 $0.7 $0.7 2006/07 $0.3 $1.5 30-day Tow Program 30-Day Tow Program is an inter-allocation process whereby salary/benefit expenses for the enforcement of the 30 day tow program is charged to the special revenue program. Fy 2010/11 revenues are forecasted at $0.4 million, which is virtually the same as the Fy 2009/10 year-end forecast of $0.4 million. 30 day Tow Program Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.4 $0.4* 2009/10 $0.4 $0.4* 2008/09 $0.2 2007/08 2006/07 - Capital Improvement Plan Cost Allocation Capital Improvement Plan Cost Allocation revenue represents the reimbursement the staff time associated with managing the Capital Improvement Program. The cost allocation varies by position based on individual involvement in managing the program. Fy 2010/11 revenues are forecasted at $0.9 million, which remains flat with the Fy 2009/2010 year-end forecast of $0.9 million. Capital Improvement Plan Cost Allocation Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.9 $0.9* 2009/10 $0.9 $0.9* 2008/09 $0.9 2007/08 2006/07 - 57 BudGeT BY Fund gENERAL FuND- REVENuE B Reimbursements This category represents reimbursements to the general Fund for the City’s security contract. Fy 2010/11 revenues are forecasted at $0.4 million, which is a slight increase from the Fy 2009/2010 year-end forecast of $0.36 million. Intergovernmental Revenue Intergovernmental Revenue is related to School Resource Officers from the Scottsdale Police Department servicing local area schools, an intergovernmental agreement with the Scottsdale unified School District for library shared use reimbursement of Palomino Library, and revenue received from the County Library District for reciprocal interlibrary use. Fy 2010/11 revenues are forecasted at $0.9 million, which remains flat with the Fy 2009/10 year-end forecast of $0.9 million. Intergovernmental Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.9 $0.9* 2009/10 $1.0 $0.9* 2008/09 $0.7 $1.2 2007/08 $1.1 2006/07 $0.7 Indirect/direct Cost Allocation Indirect/Direct Cost Allocation represents a reimbursement to the general Fund for centralized services provided to the Enterprise Funds such as payroll, accounts payable, human resources, information technology, city administration, etc. The Fy 2010/11 forecasted revenue is approximately $12.7 million, which reflects a $0.5 million increase from the Fy 2009/10 year-end forecast of $12.2 million. Indirect/direct Allocation Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $12.7 $12.7* 2009/10 $14.8 $12.2* 2008/09 $12.9 $12.9 2007/08 $11.6 $11.6 2006/07 $10.2 $10.2 Transfers-In The Transfers-In for Fy 2010/11 represent a reimbursement from the Enterprise Funds for providing security at various water facilities and from the Capital Improvement Fund for operating projects. Beginning in Fy 2010/11, projects that were identified in the CIP that do not result in the creation of a capital asset were more appropriately moved to the operating budget. The total transfers-in for Fy 2010/11 is expected to decrease by approximately $6.0 million over the Fy 2009/10 year-end forecast of $10.0 million. 58 BudGeT BY Fund gENERAL FuND ExPENDITuRES B Fund Purpose The general Fund exists to account for the activity associated with traditional local government services such as police, fire, parks and recreation, planning and economic development and general City administration. under Arizona State law, each city and town must maintain a general Fund and account for highway user Revenues (see the Transportation Fund in the Special Revenue Fund section). The general Fund is the largest fund and typically the fund of most interest and significance to citizens. General Fund expenditures By expenditure Type The general Fund expenditures are presented by the following five major operating expenditure categories: personnel services, contractual services, commodities, capital outlay, debt service, and operating projects. There is also cash transfers-out to other funds. 59 Personnel Services Personnel Services include the salaries and wages paid to employees, plus the City’s contribution for fringe benefits such as retirement, social security, health, and workers’ compensation insurance. The Fy 2010/11 adopted budget of $163.8 million is $8.1 million less than the Fy 2009/10 adopted budget. The budget change is due to budget reduction efforts and reduced staffing levels in Fy 2009/10 to maintain a balanced budget. Personnel Services Adopted Budget to Actual/Approved*(in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $163.8 $163.8* 2009/10 $171.9 $167.2* 2008/09 $189.3 $192.1 2007/08 $183.4 $180.2 2006/07 $170.4 $161.3 Contractual Services Contractual Services include expenditures for services performed by firms, individuals, or other City departments. Supplies are not included in the contractual services account. The Fy 2010/11 adopted budget of $54.8 million is $1.0 million, or 2 percent, more than the Fy 2009/10 adopted budget. Major contracts include the Maricopa County jail contract, software maintenance and licensing, fleet maintenance and operations, utilities, mowing/landscape maintenance and Fire Dispatch contract. Contractual Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $54.8 $54.8* 2009/10 $53.8 $52.9* 2008/09 $58.5 $51.4 2007/08 $50.4 $53.4 2006/07 $48.3 $48.3 Commodities Commodities are expendable items purchased through the City-approved centralized purchasing process. This classification includes supplies, repair and replacement parts, small tools, and maintenance and repair materials that are not of a capital nature. The adopted budget of $8.9 million is $0.4 million, or 4 percent, less than the Fy 2009/10 adopted budget. Commodities Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $8.9 $8.9* 2009/10 $9.3 $9.1* 2008/09 $10.5 $8.5 2007/08 $10.6 $11.5 2006/07 $10.2 $10.4 BudGeT BY Fund gENERAL FuND ExPENDITuRES B Capital outlay Capital Outlay includes the purchase of land, the purchase of construction of buildings, structures, and facilities of all types, plus machinery and equipment. To qualify as capital outlay, an item must have an estimated useful life of more than two years, have a unit cost of $5,000 or more, and be a betterment or improvement. The Fy 2010/11 adopted budget of $0.3 million is $0.1 million, or 25 percent, less than the Fy 2009/10 adopted budget. Capital outlay Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.3 $0.3* 2009/10 $0.4 $0.3* 2008/09 $0.6 $0.4 2007/08 $0.9 $0.9 2006/07 $1.1 $1.0 operating Projects Operating Projects capture costs associated with the repair and maintenance of capital assets; replacement of non capital assets; master plans; studies; public art; and all other project type costs that do not result in the acquisition or construction of a capital asset. The Fy 2010/11 adopted budget is $3.9 million. operating Projects Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $3.9 $3.9* 2009/10 $$ -* 2008/09 $$2007/08 $$2006/07 $$- debt Service Debt Service is paid from the general Fund, is primarily contractual debt related to sales tax development agreements, and will vary based on the actual sales tax collections at each developed site. The Fy 2010/11 Debt Service budget of $4.5 million is $0.2 million less than the Fy 2009/10 adopted budget. The Fy 2010/11 Debt Service budget is comprised of approximately $3.1 million in Contracts Payable and approximately $1.4 million in Certificates of Participation as follows: debt Service Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $4.5 $4.5* 2009/10 $4.7 $2.6* 2008/09 $6.0 $3.6 2007/08 $6.6 $5.0 2006/07 $6.0 $5.6 60 BudGeT BY Fund gENERAL FuND ExPENDITuRES B Contracts Payable Contracts Payable of approximately $3.1 million represents debt related to sales tax development agreements such as the Nordstrom garage Lease and hotel Valley ho. Certificates of Participation Certificates of Participation (COP) are instruments whereby the City enters into a lease-purchase agreement for the acquisition, operation and/or maintenance of a project. COPs are secured by a budgeted appropriation made each year by the City. At the completion of the lease period, the City owns the project. In Fy 2005/06, the City issued $7.65 million of COPs for the acquisition of the police/fire administration building. The COPs are payable over ten years at an average interest cost of 3.29 percent and are callable at the City's option after July 1, 2008. The Fy 2010/11 forecast assumes a debt payment of approximately $1.0 million related to the purchase of the building. The forecast also assumes a debt payment of approximately $0.5 million related to the planned issuance in Fy 2010/11 for Police/Fire Radio Communication Equipment. 61 Cash Transfers-out Cash Transfers-Out are the authorized movement of cash to other funds, divisions, departments, and/or capital projects. Cash Transfers-Out in Fy 2010/11 totals $16.7 million and includes $2.2 million to the Capital Fund to cover the cost of on-going capital maintenance. Also, $1.8 million will be transferred-out as a subsidy to the Transportation Fund for transportation related operating costs; $6.7 million will be transferred to the MPC Excise Debt Fund; $1.0 million will be transferred to the MPC Excise Debt related to Bed Tax; $5.0 million will be transferred to the Special Programs Fund for bed tax revenues (half of the 5.0 percent bed tax restricted for destination marketing); $0.2 million will be transferred to the Special Programs Fund for Community Services; and $60,000 will be transferred for neighborhood revitalization ($50K) and for the preservation and maintenance of properties on Scottsdale’s historic Register ($10K). General Fund Balance/ Reserve/operating Contingency general Fund Balance/Reserve/ Operating Contingency Fund Balance/Reserve/Operating Contingency protects the City’s financial condition and provides for unexpected economic challenges. growth of fund balance occurs when revenues exceed expenditures. Fund balances are similar to a company’s net equity (assets less liabilities) and should only be used for non-recurring (non-operational) expenditures, since once they are spent they are only replenished by future year resources in excess of expenditures. The City’s budget planning and adopted financial policies call for the establishment of reserves and an operating contingency as part of the resource allocation/limit setting process. The process allows the City to “set aside savings” before it is allocated or spent as budgeted expenditures. The specific make-up of the City’s fund balance, reserves and operating contingencies are noted on the following page. BudGeT BY Fund gENERAL FuND ExPENDITuRES B General Fund Reserve general Fund Reserve continues the City’s adopted financial policy of setting aside a reserve to protect Scottsdale in times of emergency. It is financially prudent to have a minimum general Fund Reserve of 10.0 percent of the general and highway user Revenue Funds total annual operating costs. Based on the revenue and expenditure estimates included in the adopted budget, the ending Fy 2010/11 general Fund Reserve is projected to be approximately $26.2 million. Maintaining the general Fund Reserve is very important to the municipal credit rating agencies and in retaining the City’s AAA bond ratings. It should be noted that the revenue sources that help build the general Fund Reserve during good economic times are considered “elastic” and, therefore, are subject to downturns during recessionary times. operating Contingency Operating Contingency includes $2.5 million of basic operating contingency to meet unforeseen expenses during the fiscal year. City Council approval will be required before the funds can be transferred from the contingency to an operating department budget. unreserved Fund Balance unreserved Fund Balance is the remainder after considering all of the other reserves/uses. The ending unreserved fund balance is forecasted at approximately $17,027, which represents the cumulative general Fund revenues not designated for a specific purpose. This balance represents an accumulation of one-time revenues and is most appropriately used for one-time expenditures. under prudent fiscal management practices, this amount should not be used to fund new or expanded programs with ongoing operating expenses. 62 BudGeT BY Fund B TRANSPORTATION FuND SuMMARy Actual 2008/09 Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 Source of Funds: 63 Beginning Fund Balance (1,560,056) Revenues: Highway User Revenue Tax Transportation Privilege Tax (0.2%) Local Transportation Assistance Fund I Local Transportation Assistance Fund II Proposition 400 Regional Sales Tax Charges for Services Capital Improvement Plan Cost Allocation Federal Grants Miscellaneous Subtotal 14,141,719 16,474,270 1,015,408 432,214 377,237 247,561 879,108 6,920 33,574,437 14,187,000 14,345,100 1,057,100 311,628 1,568,364 819,926 120,000 32,409,118 12,900,000 14,918,904 585,184 336,302 311,628 819,926 2,605,000 20,000 32,496,944 13,814,970 15,217,282 300,000 819,926 1,995,000 20,000 32,167,178 7,023,454 1,500,000 334,012 8,857,466 5,571,026 358,550 5,929,576 3,387,962 358,550 3,746,512 1,818,092 249,000 380,063 2,447,155 42,431,903 38,338,694 36,243,456 34,614,334 Cash Transfers In General Fund - Deficit Elimination Transfer CIP CIP - Operating Projects Solid Waste - Alley Maintenance Subtotal Total Sources - 31,891 - Use of Funds: Division Transportation Municipal Services FY 2009/10 Reorganization Planning, Neighborhoods, & Transportation Public Works & Water Resources Estimated Division Savings (non-vacant positions) Leave Accrual Payments Estimated Personnel Savings from Vacant Positions Subtotal Total Operating Budget Cash Transfers Out CIP Fund - Privilege Tax Allocation CIP Fund - Tech. Replacement Total Cash Transfers Out Total Uses Sources Over/(Under) Uses Total Ending Fund Balance 15,437,011 17,108,310 - - - 32,545,321 13,631,274 17,649,008 86,262 (270,000) 31,096,544 13,540,306 17,643,896 (2,285,000) 80,984 (233,891) 28,746,295 12,063,783 14,935,409 43,100 (135,000) 26,907,293 32,545,321 31,096,544 28,746,295 26,907,293 8,237,135 57,500 7,172,550 69,600 7,459,452 69,600 7,608,641 98,400 8,294,635 7,242,150 7,529,052 7,707,041 40,839,956 38,338,694 36,275,347 34,614,334 1,591,947 - (31,891) - 31,891 - - - - BudGeT BY Fund B TRANSPORTATION FuND FIVE-yEAR PLAN Adopted 2010/11 Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 - - - - - Source of Funds: Beginning Fund Balance Revenues: Highway User Revenue Tax Transportation Privilege Tax (0.2%) Local Transportation Assistance Fund I Local Transportation Assistance Fund II Proposition 400 Regional Sales Tax Charges for Services Capital Improvement Plan Cost Allocation Federal Grants Miscellaneous Subtotal Cash Transfers In General Fund - Deficit Elimination Transfer CIP CIP - Operating Projects Solid Waste - Alley Maintenance Subtotal Total Sources 13,814,970 15,217,282 300,000 819,926 1,995,000 20,000 32,167,178 14,091,269 15,521,628 309,000 821,107 20,000 30,763,004 14,429,460 15,894,147 318,270 833,308 21,000 31,496,185 14,790,196 16,291,500 327,818 845,252 22,000 32,276,767 1,818,092 249,000 380,063 2,447,155 4,188,881 402,867 4,591,748 4,221,195 427,039 4,648,234 4,246,567 452,661 4,699,228 34,614,334 35,354,753 36,144,418 36,975,995 15,248,692 16,796,537 337,653 862,157 23,000 33,268,039 4,127,079 479,821 4,606,900 37,874,939 Use of Funds: Division Transportation Municipal Services FY 2009/10 Reorganization Planning, Neighborhoods, & Transportation Public Works & Water Resources Estimated Division Savings (non-vacant positions) Leave Accrual Payments Estimated Personnel Savings from Vacant Positions Subtotal Total Operating Budget Cash Transfers Out CIP Fund - Privilege Tax Allocation CIP Fund - Tech. Replacement Total Cash Transfers Out Total Uses Sources Over/(Under) Uses Total Ending Fund Balance - - - - - 12,063,783 14,935,409 43,100 (135,000) 26,907,293 12,291,171 15,335,462 45,255 (141,750) 27,530,139 12,557,510 15,689,654 47,518 (148,838) 28,145,845 12,830,127 16,052,803 49,894 (156,279) 28,776,545 13,108,334 16,424,731 52,388 (164,093) 29,421,360 26,907,293 27,530,139 28,145,845 28,776,545 29,421,360 7,608,641 98,400 7,760,814 63,800 7,947,073 51,500 8,145,750 53,700 8,398,268 55,311 7,707,041 7,824,614 7,998,573 8,199,450 8,453,579 34,614,334 35,354,753 36,144,418 36,975,995 37,874,939 - - - - - - - - - - 64 BudGeT BY Fund TRANSPORTATION FuND REVENuES B description The City uses four separate Special Revenue Funds to account for the activity of restricted revenues and designated expenditure uses for Fy 2010/11. The individual funds are: Transportation, Preservation Privilege Tax, Special Programs, and grants. The applicable specific revenues, expenditures and fund balances of the individual Special Revenue Funds, along with each fund’s purpose, are described below: Transportation Fund - Fund Purpose The Transportation Fund receives and expends the City’s allocation of the Arizona highway user Revenue Tax (huRF) as well as the City’s Transportation Sales Tax (.20 percent) revenue and other transportation related revenues. The amount of huRF available to each City is allocated based on population, which is determined by the latest federal census. These monies must be used for street construction, reconstruction, maintenance, or transit. The State of Arizona requires the City to establish and maintain an accounting for highway user Revenue funds. The fund also accounts for the 1989, voter approved Transportation Privilege (Sales) Tax of 0.20 percent which is dedicated to funding transportation improvements and operations. The budget assumes a policy that transfers 50 percent of the Transportation Privilege (Sales) Tax to the Capital Improvement Fund for transportation related capital improvement projects. 65 highway user Revenue (Gas Tax) highway user Revenue Tax (“gas Tax”) is distributed by the State of Arizona based upon the population of each city and the county of origin for the sales of fuel. The State constitution requires that all highway user revenue be used solely for street, highway or transit purposes. The cities share in the State collected highway user revenues based half on population, and half on the origin of the gas sale. The adopted Fy 2010/11 budget of $13.8 million represents an increase of $0.9 million or 7 percent from the Fy 2009/10 year-end forecast. Forecasted revenue growth is based on Scottsdale’s population growth relative to other Arizona cities, as well as projected fuel sale activity for Maricopa County. highway user Revenue Tax (Gas Tax) Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $13.8 $13.8* 2009/10 $14.2 $12.9* 2008/09 $16.9 $14.1 2007/08 $17.0 $16.3 2006/07 $15.6 $16.7 BudGeT BY Fund TRANSPORTATION FuND REVENuES B Transportation Privilege (Sales) Tax Transportation Privilege (Sales) Tax (.20%) represents the .20 percent of the City’s sales tax dedicated solely to transportation. Please note there is a difference between the transportation and preservation privilege tax revenue amounts, which is attributable to differences in the taxing provisions for each of the revenues. The adopted Fy 2010/11 budget of $15.2 million represents an increase of $0.3 million or 2 percent from the Fy 2009/10 year-end forecast. Transportation Privilege (Sales) Tax Revenue (0.20%) Adopted Budget to Actual/Forecast* (in millions) ADOPTED ACTuAL/ BuDgET FORECAST* FISCAL yEAR 2010/11 $15.2 $15.2* 2009/10 $14.3 $14.9* 2008/09 $20.1 $16.5 2007/08 $22.7 $20.0 2006/07 $22.1 $20.8 local Transportation Assistance Fund I and II Local Transportation Assistance Fund (LTAF) Revenue (“State Lottery”) is distributed by the State of Arizona based upon population as well as City and town participation in the lottery. The adopted Fy 2010/11 budget of $0.0 million reflects the actions taken per the State Legislature that these state shared revenues be eliminated retroactively as of February 2010. local Transportation Assistance Fund I and II Adopted Budget to Actual/Forecast* (in millions) ADOPTED ACTuAL/ BuDgET FORECAST* FISCAL yEAR 2010/11 $$ -* 2009/10 $1.1 $0.9* 2008/09 $1.1 $1.4 2007/08 $1.6 $1.5 2006/07 $1.1 $1.8 Proposition 400 Regional Sales Tax Proposition 400 Regional Sales Tax represents the City’s allocation of the 1.0 percent regional sales approved by Maricopa County voters in November 2004 for transportation and transit enhancements. Based on estimates from regional agencies, the City expects to receive an estimated $0.3 million from this regional sales tax in the 2010/11 fiscal year, which remains flat with the Fy 2009/10 year-end forecast. Proposition 400 Regional Sales Tax Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.3 $0.3* 2009/10 $0.3 $0.3* 2008/09 $0.3 $0.4 2007/08 $0.3 $0.4 2006/07 $0.3 $0.0 66 BudGeT BY Fund Charges for Services Charges for Services are budgeted at $0.0 million in Fy 2010/11, which remains flat with the Fy 2009/10 year-end forecast. These fare box revenues are netted against the City’s cost of the Transit contract for each fiscal year, except for Fy 2008/09 when fare box revenues were received. TRANSPORTATION FuND REVENuES B Charges for Services Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.0 $0.0* 2009/10 $1.6 $0.0* 2008/09 $0.0 $0.2 2007/08 $0.0 $0.0 2006/07 $0.0 $0.0 Capital Improvement Plan Cost Allocation Capital Improvement Plan Cost Allocation is budgeted at $0.8 million in Fy 2010/11. These are charges to the CIP as part of the allocation of staff time. 67 Cash Transfers-In Cash Transfers-In from the general Fund are to subsidize the Transportation Fund is budgeted at $1.8 million in Fy 2010/11. This is a $3.8 million decrease from Fy 2009/10 Adopted. Cash transfers-in from the general Fund was approved by City Council to minimize the budget reductions to Transit routes. Cash transfers-in from the Solid Waste Fund for Alley Maintenance are budgeted at $0.4 million in Fy 2010/11. Cash transfers-in from the CIP is budgeted at $0.2 million in Fy 2010/11 to fund the Operating Projects. Cash Transfers-In Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $2.4 $2.4* 2009/10 $6.0 $3.7* 2008/09 $9.5 $8.9 2007/08 $1.3 $2.8 2006/07 $3.2 $0.3 BudGeT BY Fund TRANSPORTATION FuND ExPENDITuRES B Transportation Fund expenditures By expenditure Type The Transportation Fund expenditures are presented by four major expenditure categories: personnel services, contractual services, commodities, capital outlay, plus transfers-out to other funds. Personnel Services Personnel Services include the salaries and wages paid to employees, plus the City’s contribution for fringe benefits such as retirement, social security, health, and workers’ compensation insurance. The adopted Fy 2010/11 personnel services budget of $6.2 million is a decrease of $0.3 million, or 5 percent, from the Fy 2009/10 adopted budget. The budget decrease is related to overall budget reduction efforts. Personnel Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $6.2 $6.2* 2009/10 $6.5 $6.5* 2008/09 $7.4 $7.9 2007/08 $7.2 $6.6 2006/07 $6.5 $5.8 Contractual Services Contractual Services include expenditures for services performed by firms, individuals, or other City departments. Supplies are not included in the contractual services account. The adopted Fy 2010/11 contractual services budget of $19.7 million is a decrease of $4.2 million, or 17 percent, from the Fy 2009/10 adopted budget. The budget decrease is related to overall budget reduction efforts and reductions to the City’s Transit contract for reduced transit routes. Contractual Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $19.7 $19.7* 2009/10 $23.9 $23.9* 2008/09 $26.6 $23.7 2007/08 $25.5 $24.8 2006/07 $20.7 $20.0 Commodities Commodities are expendable items purchased through the City-approved centralized purchasing process. This classification includes supplies, repair and replacement parts, small tools, and maintenance and repair materials that are not of a capital nature. The adopted Fy 2010/11 commodities budget of $0.8 million is an increase of approximately $28,000 or 3 percent from the Fy 2009/10 adopted budget, reflecting an increase in costs for traffic signal maintenance, as well as for streetlight maintenance. Commodities Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.8 $0.8* 2009/10 $0.8 $0.8* 2008/09 $1.1 $0.8 2007/08 $0.9 $0.9 2006/07 $0.7 $0.7 68 BudGeT BY Fund Capital outlay Capital Outlay includes the purchase of land, the purchase or construction of buildings, structures, and facilities of all types, plus machinery and equipment, as well as operating projects. To qualify as capital outlay, an item must have an estimated useful life of more than two years, typically have a unit cost of $5,000 or more, and be a betterment or improvement. The adopted Fy 2010/11 capital outlay budget of $257,000 represents a $125,000 increase from the Fy 2009/10 adopted budget, which is attributable to new operating projects that were previously recorded in the CIP. 69 TRANSPORTATION FuND ExPENDITuRES B Capital outlay Adopted Budget to Actual/Approved* (in thousands) ADOPTED ACTuAL/ BuDgET APPROVED* FISCAL yEAR 2010/11 $257,000 $257,000* 2009/10 $18,200 $18,200* 2008/09 $294,700 $47,300 2007/08 $254,800 $100,800 2006/07 $57,600 $38,500 Transfers-out Transfers-Out is the authorized movement of cash or other resources to other funds, divisions, departments, and/or capital projects. The budget assumes 50% of Transportation Privilege Tax revenue will be transferred annually to the Capital Projects Fund to cover the cost of transportation system improvement operating costs. Transportation Fund Balance The adopted Fy 2010/11 Transportation Fund ending balance is projected to be zero. Typically, this fund does not have a planned fund balance due to its reliance on the general Fund to make up the difference between revenues and expenditures each year. City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 70 BudGeT BY Fund B PRESERVATION FuND SuMMARy Actual 2008/09 Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 Source of Funds: Beginning Fund Balance 19,044,623 20,138,430 14,737,707 12,728,463 Revenues: Privilege Tax (0.20%) Privilege Tax (0.15%) Interest Earnings Base Fines Subtotal 16,951,797 12,643,622 1,101,238 100 30,696,757 14,724,600 11,385,000 302,000 26,411,600 15,313,584 11,840,400 302,000 27,455,984 15,619,856 12,077,208 234,680 27,931,744 Cash Transfers In Reimbursements Subtotal Total Sources 4,768,968 4,768,968 - - - 35,465,725 26,411,600 27,455,984 27,931,744 2,112 2,112 2,200 2,200 2,200 2,200 2,200 2,200 952,480 952,480 951,855 951,855 951,855 951,855 954,175 954,175 954,592 954,055 954,055 956,375 16,142,738 11,651,248 11,024,063 38,818,049 13,961,047 6,739,761 10,610,000 31,310,808 11,777,412 6,733,761 10,000,000 28,511,173 19,609,640 6,701,105 26,310,745 39,772,641 32,264,863 29,465,228 27,267,120 14,737,707 14,285,167 12,728,463 13,393,087 Use of Funds: 71 Operating Miscellaneous Subtotal Debt Service McDowell Sonoran Contract Subtotal Total Expenditures Cash Transfers Out Debt Service Fund (Preserve GO Bonds) Debt Service Fund (Preserve Revenue Bonds) CIP Fund (General Capital Projects) Total Cash Transfers Out Total Uses Ending Fund Balance BudGeT BY Fund PRESERVATION FuND FIVE-yEAR PLAN B 72 BudGeT BY Fund PRESERVATION FuND B Preservation Privilege Tax Fund Fund Purpose This fund accounts for the portion of the City’s Privilege (Sales) Tax (0.35 percent) dedicated to the purchase of 36,400 acres of land within the McDowell Sonoran Preserve. In 1995, voters approved increasing the City’s sales tax rate by .20 percent for the purchase of land within the McDowell Sonoran Preserve. In May 2004, voters approved an additional .15 percent in the City’s sales tax rate dedicated to the McDowell Sonoran Preserve land acquisition. As with the 1995 tax, the 2004 tax covers the purchase of land within the preserve plus the construction of essential preserve related necessities such as proposed trailheads. Revenue collections and contractual debt associated with purchased land are accounted for in this fund. A transfer is made to the Debt Service Fund to pay debt service payments associated with bonds issued for land purchases. 73 Preservation Privilege Tax Fund Revenues 1995 Preservation Privilege (Sales) Tax represents the voter approved .20 percent of the City’s sales tax dedicated to the purchase of 36,400 acres of land within the McDowell Sonoran Preserve. The Fy 2010/11 budget of $15.6 million represents an increase of approximately $0.3 million from the Fy 2009/10 year-end estimate. Please note there is a difference between the transportation and preservation privilege revenue tax amounts, which is attributable to differences in the taxing provisions for each of the revenues. The projected decrease in revenues by staff is based on the estimated economic decrease in sales activity for Scottsdale. Preservation Privilege Tax Fund 1995 Preservation Privilege (Sales) Tax Revenue Adopted Budget to Actual/Forecast* (in millions) Adopted Actual/ Fiscal year Budget Forecast* 2010/11 $15.6 $15.6* 2009/10 $14.7 $15.3* 2008/09 $20.6 $17.0 2007/08 $22.7 $20.5 2006/07 $22.1 $21.3 2004 Preservation Privilege (Sales) Tax 2004 Preservation Privilege (Sales) Tax represents the voter approved .15 percent of the City’s sales tax dedicated to the purchase of 36,400 acres of land within the McDowell Sonoran Preserve, plus construction of essential preserve related necessities such as proposed trailheads. The Fy 2010/11 budget of $12.1 million represents an increase of approximately $0.3 million from the Fy 2009/10 year-end estimate. The projected decrease in revenues by staff is based on the estimated economic decrease in sales activity for Scottsdale. Preservation Privilege Tax Fund 2004 Preservation Privilege (Sales) Tax Revenue Adopted Budget to Actual/Forecast* (in millions) Adopted Actual/ Fiscal year Budget Forecast* 2010/11 $12.1 $12.1* 2009/10 $11.4 $11.8* 2008/09 $14.9 $12.6 2007/08 $17.0 $15.0 2006/07 $16.5 $15.8 BudGeT BY Fund PRESERVATION FuND B Interest earnings Interest Earnings is a function of the relationship between the available cash balance and interest rate. The City earns interest on idle funds through various investments in accordance with Arizona Revised Statutes and City Ordinance. The City’s investment policy stresses safety above yield. The Fy 2010/11 budget of $0.2 million represents a decrease of approximately $0.1 million from the Fy 2009/10 year-end forecast. The projected interest earnings by staff are based on current interest rates and the estimated available cash balance. Preservation Privilege Tax Fund Interest earnings Adopted Budget to Actual/Forecast* (in millions) Adopted Actual/ Fiscal year Budget Forecast* 2010/11 $0.2 $0.2* 2009/10 $0.3 $0.3* 2008/09 $1.1 $1.1 2007/08 $1.3 $1.9 2006/07 $0.8 $1.9 Preservation Privilege Tax Fund expenditures By expenditure Type There are no direct operating expenditures in the Preservation Privilege Tax Fund. All of the expenditures in this fund are for debt service on Preserve general Obligation and Revenue Bonds and transfersout to the Capital Project Fund for land acquisition and construction of essential preserve related necessities such as proposed trailheads. Preservation Privilege Tax Fund debt Service Adopted Budget to Actual/Approved* (in millions) Adopted Actual/ Fiscal year Budget Approved* 2010/11 $1.0 $1.0* 2009/10 $1.0 $1.0* 2008/09 $1.0 $1.0 2007/08 $1.0 $1.0 2006/07 $1.0 $1.0 debt Service Debt Service adopted budget for Fy 2010/11 of approximately $1.0 million remains flat with the Fy 2009/10 adopted budget and consists of contractual debt for the McDowell Sonoran Preserve. Cash Transfers Cash Transfers-Out is authorized movement of cash or other resources to other funds, divisions, departments, and/or capital projects. The Fy 2010/11 adopted budget of $27.3 million consists of $26.3 million in transfers out to the Debt Service Fund for debt payments on Preservation bonds. unlike previous periods, no transfer related to capital improvement plan land acquisition is budgeted. Preservation Privilege Tax Fund Balance The projected ending fund balance for Fy 2010/11 is $13.4 million. 74 BudGeT BY Fund SPECIAL PROgRAMS FuND SuMMARy Actual 2008/09 Adopted 2009/10 Forecast 2009/10 B Adopted 2010/11 Source of Funds: 75 Beginning Fund Balance/Reserve Operating Contingency (A) Reserved: Economic Vitality - CVB Courts Downtown Cultural/Community Arts Human Resources - Cultural Diversity Police Community Services Planning, Neighborhoods & Transportation Fire Economic Vitality - WestWorld Total Beginning Fund Balance Revenues: Economic Vitality - CVB Courts Downtown Cultural/Community Arts Human Resources - Cultural Diversity Police Community Services Planning, Neighborhoods & Transportation Fire Economic Vitality - WestWorld Subtotal Cash Transfers In General Fund - Misc. Comm. Svc. General Fund - Court Enhancement General Fund - Planning, Neighborhoods & Transp General Fund - 50% Bed Tax - CVB General Fund - Bed Tax - CVB Advancing Funds General Fund - Balance Econ Vit - Bed Tax Deficit Elim Subtotal Total Sources 1,500,000 1,500,000 1,500,000 831,680 3,920,232 699,869 8,266 372,724 4,130,060 295,700 6,186 10,264,717 4,371,990 494,533 1,416 701,702 3,661,045 333,200 1,686 9,565,572 4,385,371 638,057 8,067 665,503 4,044,463 335,714 6,676 10,083,851 4,132,585 388,057 3,667 770,290 3,135,074 255,714 6,676 8,692,063 6,098,496 1,068,257 89,639 17,570 1,604,094 2,012,250 490 89,288 10,980,084 1,129,334 150,000 10,000 3,371,817 1,955,260 500 6,616,911 1,129,334 150,000 5,600 3,371,817 1,955,260 500 6,612,511 1,079,508 150,000 5,600 3,589,317 1,740,900 500 200,000 6,765,825 2,223 60,000 240,898 303 121 303,121 60,000 6,585,040 6 645 040 6,645,040 60,000 5,663,858 575,000 0 6 298 858 6,298,858 170,000 60,000 5,295,834 (300,000) 5 225 834 5,225,834 11,283,205 13,261,951 12,911,369 11,991,659 6,864,253 415,941 151,451 17,769 941,245 1,967,847 19,986 89,288 10,467,780 5,983,476 1,439,826 150,000 10,000 1,169,363 2,596,270 140,000 500 11,489,435 5,638,858 1,382,120 100,000 10,000 1,147,030 2,594,991 140,000 500 11,013,499 4,995,834 1,363,190 176,150 5,000 1,860,394 2,336,378 125,000 200,000 11,061,945 10,467,780 11,489,435 11,013,499 11,061,945 - Use of Funds: Programs Economic Vitality - CVB Courts Downtown Cultural/Community Arts Human Resources - Cultural Diversity Police Community Services Planning, Neighborhoods & Transportation Fire Economic Vitality - WestWorld Subtotal Total Operating Budget BudGeT BY Fund Actual 2008/09 Cash Transfers Out General Fund (Police) General Fund (Cultural Council) MPC Debt - Tourism Funds General Fund (Community Services-Human Svcs) CIP Fund - Community Services CIP Fund - Police CIP Fund - Police (RICO) CIP Fund (Court) Subtotal Total Uses GAAP to Budget Adjustment (A) Ending Fund Balance Operating Contingency (B) Reserved: Economic Vitality - CVB Courts Downtown Cultural/Community Arts Human Resources - Cultural Diversity Police Community Services Planning, Neighborhoods & Transportation Fire Economic Vitality - WestWorld Total Ending Fund Balance (A) (B) B SPECIAL PROgRAMS FuND SuMMARy Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 220,000 600,000 130,000 75,000 75,070 189,400 1,289,470 300,000 600,000 130,000 3,200 120,000 2,000,000 3,153,200 300,000 600,000 269,658 120,000 2,000,000 3,289,658 1,000,000 50,000 538,700 1,588,700 11,757,250 14,642,635 14,303,157 12,650,645 293,179 - - - 1,500,000 1,500,000 1,500,000 1,500,000 4,385,371 638,057 8,067 665,503 4,044,463 335,714 6,676 10,083,851 1,564 4,061,498 194,533 1,416 784,156 2,886,835 253,200 1,686 8,184,888 4,132,585 388,057 3,667 770,290 3,135,074 255,714 6,676 8,692,063 3,848,903 361,907 4,267 1,910,513 1,709,596 190,714 7,176 8,033,076 The Operating Contingency for the Special Programs Fund is an unfunded contingency that allows for the expenditure of unanticipated revenues and is not included in the beginning or ending fund balance. Any use of this unfunded contingency requires City Council's approval. Reflects cash transactions that do not affect revenues or expenditures but still impact the ending fund balance. 76 BudGeT BY Fund B SPECIAL PROgRAMS FuND FIVE-yEAR PLAN Adopted 2010/11 Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 Source of Funds: Beginning Fund Balance/Reserve Operating Contingency (A) Reserved: Economic Vitality - CVB Courts Downtown Cultural/Community Arts Human Resources - Cultural Diversity Police Community Services Planning, Neighborhoods & Transportation Fire Economic Vitality - WestWorld Total Beginning Fund Balance 77 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 4,132,585 388,057 3,667 770,290 3,135,074 255,714 6,676 8,692,063 3,848,903 361,907 4,267 1,910,513 1,709,596 190,714 7,176 8,033,076 4,434,604 361,907 4,767 1,588,737 345,114 123,214 7,676 6,866,019 4,980,331 361,907 5,165 1,266,799 8,093 123,214 8,176 6,753,685 5,492,499 361,907 5,459 888,237 36,293 123,214 8,676 6,916,285 Revenues: Economic Vitality - CVB Courts Downtown Cultural/Community Arts Human Resources - Cultural Diversity Police Community Services Planning, Neighborhoods & Transportation Fire Economic Vitality - WestWorld Subtotal 1,079,508 150,000 5,600 3,589,317 1,740,900 500 200,000 6,765,825 1,086,602 150,000 5,600 1,447,317 1,801,896 500 200,000 4,691,915 1,090,303 150,000 5,600 1,450,000 1,829,357 500 200,000 4,725,760 1,101,206 150,000 5,600 1,450,000 1,858,200 500 200,000 4,765,506 1,123,340 150,000 5,600 1,452,000 1,885,200 500 200,000 4,816,640 Cash Transfers In General Fund - Misc. Comm. Svc. General Fund - Court Enhancement General Fund - Planning, Neighborhoods & Transp General Fund - 50% Bed Tax - CVB General Fund - Bed Tax - CVB Advancing Funds General Fund - Balance Econ Vit - Bed Tax Deficit Elim Subtotal 170,000 60,000 5,295,834 (300,000) 5 225 834 5,225,834 170,000 60,000 5,454,709 (275,000) 5 409 709 5,409,709 170,000 60,000 5,727,444 5 957 444 5,957,444 170,000 60,000 6,128,365 6 358 365 6,358,365 170,000 60,000 6,679,918 6 909 918 6,909,918 Total Sources 11,991,659 10,101,624 10,683,204 11,123,871 11,726,558 4,995,834 1,363,190 176,150 5,000 1,860,394 2,336,378 125,000 200,000 11,061,945 5,179,709 500,901 150,000 5,100 1,709,093 2,336,378 127,500 200,000 10,208,681 5,727,444 544,576 150,000 5,202 1,738,438 2,336,378 60,000 200,000 10,762,038 6,128,365 589,038 150,000 5,306 1,768,562 2,000,000 60,000 200,000 10,901,271 6,679,918 634,436 150,000 5,412 1,799,414 2,050,000 60,000 200,000 11,579,179 11,061,945 10,208,681 10,762,038 10,901,271 11,579,179 Use of Funds: Programs Economic Vitality - CVB Courts Downtown Cultural/Community Arts Human Resources - Cultural Diversity Police Community Services Planning, Neighborhoods & Transportation Fire Economic Vitality - WestWorld Subtotal Total Operating Budget BudGeT BY Fund Adopted 2010/11 Cash Transfers Out General Fund (Police) General Fund (Cultural Council) MPC Debt - Tourism Funds General Fund (Community Services-Human Svcs) CIP Fund - Community Services CIP Fund - Police CIP Fund - Police (RICO) CIP Fund (Court) Subtotal Total Uses GAAP to Budget Adjustment (A) Ending Fund Balance Operating Contingency (B) Reserved: Economic Vitality - CVB Courts Downtown Cultural/Community Arts Human Resources - Cultural Diversity Police Community Services Planning, Neighborhoods & Transportation Fire Economic Vitality - WestWorld Total Ending Fund Balance (A) (B) B SPECIAL PROgRAMS FuND FIVE-yEAR PLAN Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 1,000,000 50,000 538,700 1,588,700 1,000,000 60,000 1,060,000 33,500 33,500 60,000 60,000 70,000 70,000 12,650,645 11,268,681 10,795,538 10,961,271 11,649,179 - - - - - 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 3,848,903 361,907 4,267 1,910,513 1,709,596 190,714 7,176 8,033,076 4,434,604 361,907 4,767 1,588,737 345,114 123,214 7,676 6,866,019 4,980,331 361,907 5,165 1,266,799 8,093 123,214 8,176 6,753,685 5,492,499 361,907 5,459 888,237 36,293 123,214 8,676 6,916,285 5,981,403 361,907 5,647 470,824 41,493 123,214 9,176 6,993,664 The Operating Contingency for the Special Programs Fund is an unfunded contingency that allows for the expenditure of unanticipated revenues and is not included in the beginning or ending fund balance. Any use of this unfunded contingency requires City Council's approval. Reflects cash transactions that do not affect revenues or expenditures but still impact the ending fund balance. 78 BudGeT BY Fund SPECIAL PROgRAMS FuND REVENuES B Fund Purpose This fund is used to account for dedicated funding sources and donations earmarked for specific purposes. All revenues not expended in the current fiscal year are carried over to the next fiscal year to continue funding the intended purpose. 79 Transient occupancy (“Bed”) Tax Revenue Transient Occupancy (“Bed”) Tax Revenue comes from the City collecting a 5.0 percent Transient Occupancy Tax on hotel and motel room rentals in addition to the sales tax. Originally, this tax was adopted at 3.0 percent. Per City Ordinance 2045/2291 (amended), prior to July 2010, 80 percent of the first 3.0 percent of this tax revenue was restricted for tourism and hospitality purposes and paid for contracts to increase tourism and debt service for destination attractions. The remaining 20 percent could be used for general government operations and remained in the general Fund. In March 2010 voters approved an increase to the bed tax from 3.0 percent to 5.0 percent, effective July 1, 2010. half of the 5.0 percent tax is now restricted for destination marketing. The remaining half may be used in the general Fund for tourism-related uses. Prior to Fy 2009/10, 80 percent of the Bed Tax revenue was reflected as a revenue source within the Special Programs Fund. Beginning in Fy 2009/10, 100 percent of the original 3.0 percent Bed Tax revenue was recorded in the general Fund with a corresponding transfer in of 80 percent to the Special Programs Fund, as reflected in the Cash Transfers-In section of the Five year Financial Forecast. For Fy 2010/11, this transfer-in amount will increase to be half of the 5.0 percent Transient Occupancy Tax. Transient occupancy (“Bed”) Tax Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED FISCAL yEAR BuDgET FORECAST* 2010/11 -* 2009/10 -* 2008/09 $7.9 $6.1 2007/08 $8.7 $7.8 2006/07 $7.5 $7.7 BudGeT BY Fund SPECIAL PROgRAMS FuND REVENuES B Court Revenue Court Revenue originates from three sources: Court Enhancement, Judicial Collections Enhancement Fund (JCEF) and Fill-the-gap (FTg). The Court Enhancement is established by Scottsdale City Ordinance 2570 section 9-7.2 and provides funding to enhance the technological, operational, and security facilities of the Court. JCEF and FTg were established by Arizona Revised Statutes (ARS) 12-116 (A) (B) and Senate Bill (SB) 1013, which provide funding for maintaining and enhancing the Court’s ability to collect and manage monies. Staff estimates the Fy 2010/11 budget for restricted Court Revenue is approximately $1.1 million. Court Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $1.1 $1.1* 2009/10 $1.1 $1.1* 2008/09 $1.0 $1.1 2007/08 $1.0 $1.6 2006/07 $1.2 $1.5 downtown Cultural Trust Revenue This account holds funds generated from donations and contributions from private development as outlined in the City's art in private development ordinance (Section 5.083). The Fy 2010/11 budget for this revenue source is $50,000. downtown Cultural Trust/Arts Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.2 $0.2* 2009/10 $0.2 $0.2* 2008/09 $0.2 $0.1 2007/08 $0.1 $0.1 2006/07 $0.1 $0.2 Community Arts Trust Revenue This account hold funds that are generated by the lease agreement with the Scottsdale Artists' School at Loloma. The Fy 2010/11 budget for this revenue source is $100,000. human Resources – Cultural diversity Revenue human Resources – Cultural Diversity Revenue includes corporate sponsorship obtained through community outreach efforts in support of cultural programming, including the Cross-Cultural Communication Series and the hispanic heritage Community celebration. The Fy 2010/11 budget for this restricted revenue source is $5,600. human Resources Cultural diversity Revenue Adopted Budget to Actual/Forecast* ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $5,600 $5,600* 2009/10 $10,000 $5,600* 2008/09 $20,000 $17,570 2007/08 $10,000 $18,500 2006/07 $10,000 $21,600 80 BudGeT BY Fund 81 SPECIAL PROgRAMS FuND REVENuES B Police Revenue Police Revenue includes money from the following six sources: (1) Racketeering Influenced Corrupt Organization (RICO) funds, which is only to be used for law enforcement purposes; (2) Forensic Services Intergovernmental Agreements (IgA) with surrounding communities for full cost recovery of crime laboratory services provided; (3) donations for the Mounted unit and Family Advocacy Center; (4) drug conviction assessments, which may only be used for crime laboratory analysis purposes; and (5) Police 30-Day Tow Program, which is only to be used for the enforcement of the State Statute relating to suspended driver’s licenses, driving under the influence offenses, and driving without insurance. Staff estimates the Fy 2010/11 budget for this restricted revenue source is $3.6 million. Police Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $3.6 $3.6* 2009/10 $3.4 $3.4* 2008/09 $1.4 $1.6 2007/08 $1.8 $1.7 2006/07 $0.7 $0.5 Community Services Revenue Community Services Revenue includes donations and contributions that are restricted to fund specific uses. This may include enhancing parks, libraries and human services, providing memorials, covering the expenses associated with special events, providing funds to community support agencies (Scottsdale Cares), and maintaining and operating the train, carousel, and park facilities at the McCormick-Stillman Railroad Park. This revenue also includes McCormick-Stillman Railroad Park revenue generated from the operations of the train and carousel owned by the Scottsdale Railroad and Mechanical Society. Staff estimates the Fy 2010/11 budget for this restricted revenue source is $1.7 million. Community Services Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $1.7 $1.7* 2009/10 $2.0 $2.0* 2008/09 $1.9 $2.0 2007/08 $1.9 $2.0 2006/07 $1.5 $1.7 BudGeT BY Fund SPECIAL PROgRAMS FuND REVENuES B Planning, neighborhood, and Transportation Services Special Revenue Planning, Neighborhood, and Transportation Services Special Revenue reflected revenues from the annual green Building Expo held in Scottsdale. During Fy 2008/09, this expo was discontinued and the associated revenues are no longer budgeted. Planning, neighborhood & Transportation Special Revenue Adopted Budget to Actual/Forecast* ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 -* 2009/10 -* 2008/09 $151,000 2007/08 $58,391 $108,100 2006/07 $19,215 $70,440 Fire department Revenue Fire Revenue includes donations and contributions that are to be used for the specific purpose indicated by the donors. Categories include public education support, equipment acquisition, and fire station enhancements. The Fy 2010/11 budget for this restricted revenue source is $500. Fire department Revenue Adopted Budget to Actual/Forecast* ADOPTED BuDgET FISCAL yEAR 2010/11 $500 2009/10 $500 2008/09 $4,000 2007/08 $1,200 2006/07 $4,140 economic vitality - westworld Special Revenue WestWorld Special Revenue reflects revenues from Bureau of Reclamation for Sanctuary golf Course reimbursements and Tournament Players Club reimbursements to be used for the specific purposed projects. The Fy 2010/11 budget for this restricted revenue source is $200,000. economic vitality – westworld Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.2 $0.2* 2009/10 -* 2008/09 $0.1 2007/08 2006/07 - ACTuAL/ FORECAST* $500* $500* $490 $900 $3,989 82 BudGeT BY Fund SPECIAL PROgRAMS FuND REVENuES B Cash Transfer-In Prior to Fy 2009/10, 80 percent of the Bed Tax revenue was reflected as a revenue source within the Special Programs Fund. Beginning in Fy 2009/10, 100 percent of the original 3.0 percent Bed Tax revenue was recorded in the general Fund with a corresponding transfer in of 80 percent to the Special Programs Fund, as reflected in the Cash Transfers-In section of the Five year Financial Forecast. For Fy 2010/11, this transfer-in amount will increase to be half of the 5.0 percent Transient Occupancy Tax. Fy 2010/11 cash transfers-in from the general Fund also include budget for: $170,000 cash transfer in for Community Services Partnership Funding in Parks and Recreation ($70,000) and for Affordable housing program in human Services ($100,000) used as local grant match to leverage federal and state housing grant funds; $50,000 cash transfer in for the preservation and maintenance of properties on Scottsdale’s historic Register; and $10,000 cash transfer in to fund neighborhood preservation. 83 BudGeT BY Fund SPECIAL PROgRAMS FuND ExPENDITuRES B Transient occupancy Tax expenditures Prior to July 2010 the use of the tax was restricted for tourism and hospitality purposes and to pay for contracts to increase tourism and debt service for destination attractions. Beginning in July 2010 the use of this tax will be for destination marketing purposes. The entire Fy 2010/11 budget of approximately $5.0 million will cover payments associated with the Destination Marketing Contract. economic vitality – Transient occupancy (“Bed”) Tax expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $5.0 $5.0* 2009/10 $6.0 $5.6* 2008/09 $7.9 $6.9 2007/08 $7.6 $7.9 2006/07 $7.0 $7.6 Court expenditure Court Expenditure budget for Fy 2010/11 is approximately $1.4 million and includes the following specific uses: • Enhancements to the Court’s technological, operational, and security facilities, as allowed under the Court Enhancement established by Scottsdale City Ordinance 2570 section 9-7.2. • Maintenance and enhancement of the Court’s ability to collect and manage monies, as allowed by Judicial Collections Enhancement Fund (JCEF) and Fill-thegap (FTg) established by Arizona Revised Statutes (ARS) 12-116 (A) (B) and Senate Bill (SB) 1013. Court expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $1.4 $1.4* 2009/10 $1.4 $1.4* 2008/09 $0.5 $0.4 2007/08 $0.4 $0.4 2006/07 $3.6 $0.5 downtown Cultural/Community Arts expenditures Downtown Cultural/Community Arts Expenditures special programs adopted budget for Fy 2010/11 is approximately $0.2 million and will support the arts and special events in the downtown. downtown Cultural/Arts expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.2 $0.2* 2009/10 $0.2 $0.1* 2008/09 $0.3 $0.2 2007/08 $0.5 2006/07 $0.7 $0.1 84 BudGeT BY Fund 85 SPECIAL PROgRAMS FuND ExPENDITuRES B human Resources – Cultural diversity expenditures human Resources – Cultural Diversity Expenditures support cultural programming, including the Cross-Cultural Communication Series and the hispanic heritage Community celebration. The adopted budget for Fy 2010/11 is $5,000. human Resources – Cultural diversity expenditures Adopted Budget to Actual/Approved* ADOPTED BuDgET FISCAL yEAR 2010/11 $5,000 2009/10 $10,000 2008/09 $25,000 2007/08 $25,000 2006/07 $15,957 Police expenditures Police Expenditures budget for Fy 2010/11 is $1.9 million and includes the following specific uses: • Racketeering Influenced Corrupt Organization (RICO) funds may only be used for law enforcement purposes. • Crime laboratory services expenditures incurred by the City on behalf of surrounding communities. The City recovers the full cost of the crime laboratory services through Forensic Services Intergovernmental Agreements (IgA). • Mounted unit, Family Advocacy Center and school resource education supplies, as specified by the donor. • Crime laboratory analysis, as outlined in drug conviction assessments. • Costs associated with administering the 30-Day Tow Program for the enforcement of the State Statute relating to suspended driver’s licenses, driving under the influence offenses, and driving without insurance. Police expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $1.9 $1.9* 2009/10 $1.2 $1.1* 2008/09 $1.1 $0.9 2007/08 $0.8 $0.5 2006/07 $0.9 $0.5 ACTuAL/ APPROVED* $5,000* $10,000* $17,769 $25,800 $17,281 BudGeT BY Fund SPECIAL PROgRAMS FuND ExPENDITuRES B Community Services expenditures Community Services Expenditures budget for Fy 2010/11 is $2.3 million. The use of funds is restricted to its intended purpose. This includes enhancing parks, libraries and human services, providing memorials, covering the expenses associated with special events, providing funds to community support agencies (Scottsdale Cares), and maintaining and operating the train, carousel, and park facilities at the McCormick-Stillman Railroad Park. Community Services expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $2.3 $2.3* 2009/10 $2.6 $2.6* 2008/09 $2.3 $2.0 2007/08 $2.3 $1.7 2006/07 $4.2 $1.7 Planning, neighborhood, and Transportation Services expenditures Planning, Neighborhood, and Transportation Services Expenditures relate to the preservation and maintenance of properties on Scottsdale’s historic Register; and to fund neighborhood preservation. The Fy 2010/11 adopted budget is $125,000. This funding includes resources available for the City’s Preservation Rehabilitation and historic Preservation special programs. Planning, neighborhood & Transportation expenditures Adopted Budget to Actual/Approved* ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $125,000 $125,000* 2009/10 $140,000 $140,000* 2008/09 $280,000 $19,986 2007/08 $50,024 $88,700 2006/07 $50,000 $24,109 westworld expenditures WestWorld Expenditures budget for Fy 2010/11 is $200,000. Expenditures made from this fund are to be used for projects related to maintaining and preserving the assets at the Sanctuary and TPC golf courses. Emergency issues that arise can also be funded. Approval must also be obtained from the Bureau of Reclamation prior to any funds being used. economic vitality – westworld expenditures Adopted Budget to Actual/Approved* ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.2 $0.2* 2009/10 -* 2008/09 $0.1 2007/08 2006/07 - 86 BudGeT BY Fund SPECIAL PROgRAMS FuND ExPENDITuRES B Transfers-out Cash transfers-out is the authorized movement of cash or other resources to fund debt service and/or capital projects. The entire Fy 2010/11 budget of approximately $1.6 million will cover transfers to the Capital Improvement Fund for Police, RICO and Community Services projects. Special Programs Fund Balance Special Programs Fund projected ending balance of approximately $8.0 million for Fy 2010/11 represents the following individual ending fund balances: $3.8 million for the Courts, $0.4 million for Downtown Cultural/Community Arts, $4,267 for human Resources, $1.9 million for Police, $1.7 million for Community Services, $0.2 million for Planning, Neighborhood, and Transportation, and $7,176 for Fire. 87 City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 88 BudGeT BY Fund B SPECIAL DISTRICTS FuND SuMMARy Actual 2008/09 Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 Source of Funds: Beginning Fund Balance: Streetlight Districts Total Beginning Fund Balance 619,406 619,406 487,472 487,472 624,164 624,164 352,554 352,554 Revenues: Streetlight Districts Subtotal 600,057 600,057 621,068 621,068 279,376 279,376 574,387 574,387 Cash Transfers In Subtotal 58,283 58,283 Total Sources - - - 658,340 621,068 279,376 574,387 632,545 632,545 732,000 732,000 550,986 550,986 574,387 574,387 632,545 732,000 550,986 574,387 Use of Funds: 89 Expenditures: Streetlight Districts Subtotal Total Expenditures Cash Transfers Out Streetlight District Subtotal Total Uses Ending Fund Balance Streetlight Districts Total Ending Fund Balance 21,037 21,037 - - - 653,582 732,000 550,986 574,387 624,164 624,164 376,540 376,540 352,554 352,554 352,554 352,554 BudGeT BY Fund B SPECIAL DISTRICTS FuND FIVE-yEAR PLAN Adopted 2010/11 Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 Source of Funds: Beginning Fund Balance: Streetlight Districts Total Beginning Fund Balance Revenues: Streetlight Districts Subtotal Cash Transfers In Subtotal Total Sources 352,554 352,554 352,554 352,554 352,554 352,554 352,554 352,554 352,554 352,554 574,387 574,387 603,106 603,106 633,261 633,261 664,924 664,924 698,171 698,171 - - - - - 574,387 603,106 633,261 664,924 698,171 574,387 574,387 603,106 603,106 633,261 633,261 664,924 664,924 698,171 698,171 574,387 603,106 633,261 664,924 698,171 Use of Funds: Expenditures: Streetlight Districts Subtotal Total Expenditures Cash Transfers Out Streetlight District Subtotal Total Uses Ending Fund Balance Streetlight Districts Total Ending Fund Balance - - - - - 574,387 603,106 633,261 664,924 698,171 352,554 352,554 352,554 352,554 352,554 352,554 352,554 352,554 352,554 352,554 90 BudGeT BY Fund SPECIAL DISTRICTS FuND REVENuES B Special districts Fund Fund Purpose This fund is used to account for proceeds received by property owners in return for the City providing agreed-upon increased levels of municipal services beyond the standard level of core City services. More specifically, the fund is used to account for the City’s streetlight districts. All revenue not expended in the current fiscal year is carried over to the next fiscal year to continue funding the intended purpose. Special districts Fund Revenue Streetlight Districts Revenue represents the levy assessed on property owners within each of the City’s more than 350 streetlight districts. The adopted Fy 2010/11 revenue budget is $0.6 million. 91 Streetlight district Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.6 $0.6* 2009/10 $0.6 $0.3* 2008/09 $0.6 $0.7 2007/08 $0.6 $0.6 2006/07 $0.6 $0.5 BudGeT BY Fund Special districts Fund expenditures By district Streetlight District adopted Fy 2010/11 expenditure budget is $0.6 million and will be used for contractual services. SPECIAL DISTRICTS FuND ExPENDITuRES B Streetlight district expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.6 $0.6* 2009/10 $0.7 $0.6* 2008/09 $0.7 $0.7 2007/08 $0.6 $0.7 2006/07 $0.6 $0.6 Special districts Fund Balance Special Districts Fund balance of approximately $0.4 million represents cash received from special district assessments and is restricted for the specific uses for which the district was established. All balances not expended in the current fiscal year are carried over to the next fiscal year to continue funding the intended purpose. 92 BudGeT BY Fund B DEBT SERVICE FuND SuMMARy Actual 2008/09 Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 Total Beginning Fund Balance 18,857,990 20,785,410 20,785,410 15,739,087 Revenues: Property Tax (Secondary) Special Assessments MCSD Contributions AZSTA Contributions Spring Exhibition Surcharge GO Bond Premium Interest Earnings Subtotal 34,887,185 822,271 700,458 263,040 165,282 1,157 36,839,393 31,795,488 877,199 204,028 408,116 145,000 11,178 33,441,009 31,795,488 877,199 204,028 408,116 145,000 11,178 33,441,009 37,910,300 839,884 112,370 224,774 145,000 39,232,328 16,264,117 6,760,901 5,787,447 600,000 29,412,465 13,961,047 6,739,761 6,695,185 600,000 27,995,993 11,777,412 6,733,761 6,691,810 600,000 25,802,983 19,609,640 6,701,105 6,686,825 746,263 33,743,833 66,251,857 61,437,002 59,243,992 72,976,161 Source of Funds: 93 Cash Transfers In Preservation Privilege Tax Fund - G.O. Bonds Preservation Privilege Tax Fund - Rev Bonds General Fund - MPC Bonds General Fund - MPC Bonds - Bed Tax Special Programs Fund - MPC Bonds - Bed Tax Subtotal Total Sources Use of Funds: Operating Advertising Other Professional Services Subtotal Debt Service by Type General Obligation Bonds Preserve G. O. Bonds Special Assessment Bonds Special Assessment - Series 104 Preserve Revenue Bonds (SPA) MPC Bonds Subtotal 459 1,680 2,139 - - - 36,184,051 13,691,211 1,002,711 6,762,271 6,682,053 64,322,298 37,315,488 13,961,047 868,625 8,574 6,739,761 7,907,329 66,800,824 37,866,614 11,777,412 8,574 6,733,761 7,903,954 64,290,315 37,910,300 19,609,640 834,825 5,059 6,701,105 7,878,257 72,939,186 Total Operating Budget 64,324,437 66,800,824 64,290,315 72,939,186 Total Uses 64,324,437 66,800,824 64,290,315 72,939,186 20,785,410 15,421,588 15,739,087 15,776,062 Total Ending Fund Balance BudGeT BY Fund B DEBT SERVICE FuND FIVE-yEAR PLAN Adopted 2010/11 Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 Total Beginning Fund Balance 15,739,088 15,776,063 15,708,874 15,669,018 15,589,753 Revenues: Property Tax (Secondary) Special Assessments MCSD Contributions AZSTA Contributions Spring Exhibition Surcharge GO Bond Premium Interest Earnings Subtotal 37,910,300 839,884 112,370 224,774 145,000 39,232,328 37,141,027 803,992 369,011 738,133 145,000 39,197,163 36,693,317 770,806 287,353 574,791 180,000 38,506,267 36,784,651 530,177 1,060,512 145,000 38,520,340 35,577,166 439,119 878,370 145,000 37,039,655 19,609,640 6,701,105 6,686,825 746,263 33,743,833 24,109,379 6,687,705 7,623,900 886,823 39,307,807 25,346,501 6,675,905 7,621,600 897,166 40,541,172 28,099,765 6,664,660 8,218,350 903,117 43,885,892 26,336,542 6,668,848 8,290,600 907,664 72,976,161 78,504,970 79,047,439 82,406,231 79,243,309 Source of Funds: Cash Transfers In Preservation Privilege Tax Fund - G.O. Bonds Preservation Privilege Tax Fund - Rev Bonds General Fund - MPC Bonds General Fund - MPC Bonds - Bed Tax Special Programs Fund - MPC Bonds - Bed Tax Subtotal Total Sources 42,203,654 94 Use of Funds: Operating Advertising Other Professional Services Subtotal Debt Service by Type General Obligation Bonds Preserve G. O. Bonds Special Assessment Bonds Special Assessment - Series 104 Preserve Revenue Bonds (SPA) MPC Bonds Subtotal - - - - - 37,910,300 19,609,640 834,825 5,059 6,701,105 7,878,257 72,939,186 37,141,027 24,109,379 801,075 2,917 6,687,705 9,830,057 78,572,160 36,693,317 25,346,501 767,325 3,481 6,675,905 9,600,765 79,087,294 36,784,651 28,099,765 6,664,660 10,936,421 82,485,497 35,577,166 26,336,542 6,668,848 10,743,387 79,325,943 Total Operating Budget 72,939,186 78,572,160 79,087,294 82,485,497 79,325,943 Total Uses 72,939,186 78,572,160 79,087,294 82,485,497 79,325,943 15,776,063 15,708,874 15,669,018 15,589,753 15,507,119 Total Ending Fund Balance BudGeT BY Fund DEBT SERVICE FuND REVENuES B debt Service Fund Fund Purpose This fund accounts for the accumulation of resources for, and the payment of, long-term debt principal and interest not serviced by the proprietary funds, with the exception of the general Fund. The general Fund includes Contracts Payable for contractual debt related to sales tax development agreements, and will vary based on the actual sales tax collections at each development site. The applicable specific revenues, expenditures, and fund balance of the Debt Service Fund are described below: 95 Property Tax (Secondary) Debt Service Fund Revenues and Cash transfers-in Property Tax (Secondary) represents the portion of the property tax that is exclusively limited to pay debt service by Arizona State Statute. While the growth is unlimited, the City’s use of this portion of the property tax is restricted by State Statute to solely pay debt service on voter-approved general obligation bonds. The debt service for bonds already issued, plus estimated debt service for bonds planned to be issued within the budgeted fiscal year, is levied. The Fy 2010/11 revenue forecast of $37.9 million represents an increase of approximately $6.1 million from the Fy 2009/10 year-end forecast of $31.8 million mainly due to the use in 2009/10 of a portion of the debt service reserve. Property Tax (Secondary) Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $37.9 $37.9* 2009/10 $31.8 $31.8* 2008/09 $35.8 $34.9 2007/08 $29.7 $29.4 2006/07 $28.7 $28.0 BudGeT BY Fund DEBT SERVICE FuND REVENuES B Special Assessment Revenue Special Assessment Revenue results from billings to the property owners within an Improvement District. Districts are formed when owners desire improvement to their property, such as roads, water lines, sewer lines, streetlights, or drainage. The expenditure of funds to construct the specific capital improvements and to pay the debt service on bonds is appropriated as part of the City’s budget; however, the debt service is repaid by the property owners through a special assessment on their improved property. Improvement District debt will be permitted only when the full cash value of the property, as reported by the Maricopa County Assessor’s Office, to debt ratio (prior to improvements being installed) is a minimum of 3:1 prior to issuance of debt and 5:1 or higher after construction of improvements. Should the full cash value to debt ratio not meet the minimum requirements, property value may be determined by an appraisal paid for by the applicant and administered by the City. In addition, per adopted financial policy, the City’s cumulative improvement district debt will not exceed 5.0 percent of the City’s secondary assessed valuation. Bonds issued to finance improvement district projects will not have maturities longer than ten years. The Fy 2010/11 revenue is estimated to be approximately $0.8 million, basically unchanged from the Fy 2009/10 year-end forecast. Special Assessment Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.8 $0.8* 2009/10 $0.9 $0.9* 2008/09 $1.0 $0.8 2007/08 $1.0 $0.9 2006/07 $1.1 $1.8 Maricopa County Stadium district Maricopa County Stadium District (MCSD) contributions are derived from a $2.50 surcharge on car rentals in Maricopa County. The revenue forecast for Fy 2010/11 of approximately $0.1 million will be used to pay the debt services payments associated with the San Francisco giants professional baseball practice facility. Maricopa County Stadium district Contributions Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.1 $0.1* 2009/10 $0.2 $0.2* 2008/09 $0.1 $0.7 2007/08 $0.1 $0.1 2006/07 $0.1 $1.3 96 BudGeT BY Fund 97 DEBT SERVICE FuND REVENuES B Arizona Sports and Tourism Authority Arizona Sports and Tourism Authority (AzSTA) revenue represents the City’s disbursement from the state tourism sports authority that will be used to pay the debt service payments associated with the Cactus League. The Fy 2010/11 revenue is estimated to be approximately $0.2 million and is derived from a 1.0 percent hotel room tax and a 3.25 percent car rental surcharge (net of the $2.50 MCSD surcharge mentioned above). Arizona Sports and Tourism Authority Contributions Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.2 $0.2* 2009/10 $0.4 $0.4* 2008/09 $0.2 $0.3 2007/08 $0.3 $1.6 2006/07 $0.2 $0.03 Spring exhibition Surcharge Spring Exhibition Surcharge represents the ticket surcharge assessed on San Francisco giants spring training games held in Scottsdale. The Fy 2010/11 revenue is estimated to be $0.1 million. The surcharge is used to pay for capital projects and debt service related to professional baseball facilities. Spring exhibition Surcharge Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.1 $0.1* 2009/10 $0.1 $0.1* 2008/09 $0.1 $0.2 2007/08 $0.1 $0.1 2006/07 $0.1 $0.1 Transfers-in Cash transfers-in is the authorized movement of cash or other resources from other funds, divisions, departments, and/or capital projects. The cash transfers-in originate from the general Fund and the Special Programs Fund for MPC debt service payments (for years prior to 2010/11), and the Preservation Privilege Tax Fund for the payment of Preserve general obligation debt service and Preserve revenue bond debt service. Total cash transfers-in for Fy 2010/11 equal $33.7 million, consisting of $20.0 million from Preservation Privilege Tax Fund-g.O. Bonds, $6.7 million from Preservation Privilege Tax Fund-Revenue Bonds, $6.7 million from general Fund-MPC Bonds, and $0.7 million from general Fund-MPC Bonds/Bed Tax Funds. BudGeT BY Fund DEBT SERVICE FuND ExPENDITuRES B debt Service Fund expenditures By debt Type general Obligation (gO)/Preserve gO Bonds – the gO Bonds represent debt issuances related to capital projects authorized in Bond 1989 and Bond 2000 programs. The Preserve gO Bonds represent debt issuances related to land acquisition in the McDowell Mountain Sonoran Preserve. Preserve debt is repaid by a dedicated .20% sales tax authorized by voters in 1995 and a .15% sales tax authorized in 2004. The Fy 2010/11 budget totals $57.5 million, which represents an increase of approximately $7.9 million from the Fy 2009/10 year-end forecast of $49.6 million. The majority of the increase in debt service is attributable to the planned issuance of gO Preserve debt to finance Preserve land acquisitions ($4.7M) and the remainder of the increase is mainly due to an accounting adjustment. General obligation (Go)/Preserve Go Bond debt Service expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $57.5 $57.5* 2009/10 $51.3 $49.6* 2008/09 $50.0 $49.9 2007/08 $45.8 $44.5 2006/07 $46.2 $46.2 Special Assessment debt Service Special Assessment Debt Service – Special Assessment Bonds are issued for property owners desiring improvements to their property such as roads, water lines, sewer lines, streetlights, or drainage. The expenditure of funds to construct the specific capital improvements and to pay the debt service on bonds is appropriated as part of the City’s budget; however, the debt service is repaid by the property owners through a special assessment on their improved property. The City’s debt management policy requires that the full cash value of the property to debt ratio is a minimum of 3:1 prior to issuance of debt and at least 5:1 after construction of the improvements. The Fy 2010/11 budget totals $0.8 million, basically unchanged from the Fy 2009/10 year-end forecast. Special Assessment debt Service expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.8 $0.8* 2009/10 $0.9 $ -* 2008/09 $1.0 $1.0 2007/08 $1.0 $1.0 2006/07 $1.1 $1.1 98 BudGeT BY Fund 99 DEBT SERVICE FuND ExPENDITuRES B Preserve Authority Revenue Bonds debt Service Preserve Authority Revenue Bonds Debt Service – the Preserve Authority Revenue Bonds represent prior debt issuances related to land acquisition in the McDowell Mountain Sonoran Preserve. Preserve Authority Revenue debt is repaid by the dedicated .20% sales tax authorized by voters in 1995. Obligations for Fy 2010/11 total $6.7 million, basically unchanged from the Fy 2009/10 year-end forecast. Preserve Authority Revenue Bonds debt Service expenditures Adopted Budget to Actual/Approved*(in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $6.7 $6.7* 2009/10 $6.7 $6.7* 2008/09 $6.8 $6.8 2007/08 $6.8 $6.8 2006/07 $6.8 $6.8 Municipal Property Corporation Municipal Property Corporation (MPC) Bonds are issued by the City of Scottsdale Municipal Property Corporation (MPC), a nonprofit corporation created by the City in 1967, solely for the purpose of constructing, acquiring and equipping buildings, structures, or improvements on land owned by the City. A Board of Directors appointed by the City Council governs the MPC. The debt incurred by the corporation is a City obligation and the repayment of debt is financed by pledged general Fund excise taxes. Fy 2010/11 obligations total approximately $7.9 million, basically unchanged from the Fy 2009/10 year-end forecast. Debt Service Fund Balance The Debt Service Fund balance varies primarily due to the timing of debt issuances and related repayment schedules as mentioned above. The ending Fy 2010/11 fund balance is approximately $15.8 million, basically unchanged from the Fy 2009/10 year-end forecast. MPC Bonds debt Service expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $7.9 $7.9* 2009/10 $7.9 $7.9* 2008/09 $7.0 $6.7 2007/08 $7.4 $7.0 2006/07 $5.9 $5.9 City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 100 BudGeT BY Fund WATER AND SEWER FuND SuMMARy B 101 (A) Development fee revenues are receipted in the Capital Fund and paid by developers when new construction developments are permitted. A portion of these revenues is then transferred to the operating budget to pay for debt service costs associated with providing additional infrastructure to serve new development areas. (B) Reflects cash transactions that do not affect revenues or expenditures but still impact the ending fund balance. BudGeT BY Fund WATER AND SEWER FuND FIVE-yEAR PLAN B 102 (A) Development fee revenues are receipted in the Capital Fund and paid by developers when new construction developments are permitted. A portion of these revenues is then transferred to the operating budget to pay for debt service costs associated with providing additional infrastructure to serve new development areas. (B) Reflects cash transactions that do not affect revenues or expenditures but still impact the ending fund balance. BudGeT BY Fund WATER AND SEWER FuND REVENuES B enterprise Funds description The City uses three separate Enterprise Funds to account for the activity of this proprietary fund type. The individual funds are Water & Sewer, Solid Waste, and Aviation. In the aggregate, the Enterprise Funds are the City’s second largest source of revenues, which are derived from user fees and charges. user fees and charges are established to promote efficiency by shifting payment of costs to specific users of services and avoiding general taxation. The applicable specific revenues of the individual funds, along with each fund’s purpose, are described below. water & Sewer Funds Fund Purpose This fund accounts for the transactions related to the City’s water and sewer business activities, including operating revenue, expenditures and debt service payments. Capital expenditures are accounted for in various CIP funds (see Volume Three for project detail). 103 overview of user Fees Revenue Policy Rate adjustments for Enterprise user Fees are based upon five-year financial plans developed for each operation and are reviewed annually per Scottsdale’s adopted financial policies to meet the stated objectives of: • Equity — to ensure that charges are borne by the beneficiaries of a project or service; Level distribution of necessary cost increases — to avoid large rate increases in any one year; • Manage the level of debt - to ensure that the City can meet bond coverage requirements, provide for capital financing needs and remain financially healthy; • Rate design —to encourage conservation and efficient use of City resources. water Charges Revenue Water Charges Revenue adopted budget for Fy 2010/11 totals $97.2 million, reflecting a 5.2 percent or $4.8 million increase from the Fy 2009/10 year-end forecast. The revenue forecast assumes no fee increases in the Fy 2010/11 budget. The projected growth in revenues is based on a combination of the full year impact of 2008/09 rate increase and the return to a normal consumption year. Monthly water billings consist of a base charge according to meter size and a variable charge for the amount of water consumed. Fees are reviewed annually to determine if they cover the costs of the services provided. water Charges Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $97.2 $97.2* 2009/10 $95.5 $92.4* 2008/09 $95.6 $92.0 2007/08 $85.2 $89.9 2006/07 $79.8 $82.8 BudGeT BY Fund WATER AND SEWER FuND REVENuES B Sewer Charges Revenue Sewer Charges Revenue adopted budget for Fy 2010/11 totals $33.7 million, reflecting a 0.2 percent or $0.1 million increase from the Fy 2009/10 year-end forecast. The revenue forecast assumes no fee increases in the Fy 2010/11 budget. The projected growth in revenues is based on a slight increase in growth. Customers are charged a monthly fee based upon the volume and strength of their sewage discharge. Fees are reviewed annually to determine if they cover the costs of the services provided. Sewer Charge Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $33.7 $33.7* 2009/10 $34.7 $33.6* 2008/09 $35.3 $34.1 2007/08 $33.7 $32.9 2006/07 $30.4 $32.1 effluent Sales Revenue Effluent Sales Revenue adopted budget for Fy 2009/10 totals $0.9 million reflecting no anticipated change from the Fy 2009/10 year-end forecast. Effluent sales relate to wastewater treated to irrigation standards at the City’s Water Reclamation Plant for the 23 golf courses in north Scottsdale that are part of the Reclaimed Water Distribution System (RWDS), and the City’s gainey Water Reclamation Plant for irrigation use at the gainey Ranch golf Club. Both are contractual obligations to provide reclaimed water for irrigation uses and costs for providing these services are recovered through rates charged for the use. effluent Sales Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.9 $0.9* 2009/10 $0.9 $0.9* 2008/09 $0.7 $0.7 2007/08 $0.7 $0.9 2006/07 $0.6 $0.7 Interest earnings Revenue Interest Earnings Revenue adopted budget for Fy 2010/11 totals $0.8 million, reflecting a $1.4 million decrease from the Fy 2009/10 year-end forecast. Interest earnings are generated on idle Water & Sewer Fund cash balances throughout the year. This revenue is a function of the relationship between the available cash balance and interest rate. The City earns interest on idle funds through various investment vehicles in accordance with Arizona Revised Statutes and City Ordinance. The City’s investment policy stresses safety above yield, and allows investments in u.S. Treasury and Agency obligations, certificates of deposit, commercial paper, bankers’ acceptances, repurchase agreements, money market funds, and the State of Arizona’s Local government Investment Pool. Interest earnings Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.8 $0.8* 2009/10 $2.1 $2.2* 2008/09 $2.3 $3.4 2007/08 $2.1 $5.2 2006/07 $1.5 $5.7 104 BudGeT BY Fund Miscellaneous Revenue Miscellaneous Revenue adopted budget for Fy 2010/11 totals $17.2 million, reflecting a $12.6 million increase from the Fy 2009/10 year-end forecast. The primary increase in revenue is the planned sale of Planet Ranch property and water rights for $12.0 million. WATER AND SEWER FuND REVENuES B Miscellaneous Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $17.2 $17.2* 2009/10 $3.6 $4.6* 2008/09 $4.1 $1.3 2007/08 $2.2 $3.2 2006/07 $2.3 $2.0 Transfers-In Transfers-In adopted Fy 2010/11 budget totals $15.7 million, reflecting a 13.1 percent or $1.8 million increase from the Fy 2009/10 year-end forecast. The increase in transfers-in is related to the portion of the new debt issued in Fy 2009/10, which will be paid from the development fee impact funds. Transfers-in is the authorized movement of cash or other resources from other funds, divisions, departments, and/or capital projects. 105 BudGeT BY Fund WATER AND SEWER FuND ExPENDITuRES B water and Sewer Fund expenditures By expenditure Type The Water & Sewer Fund expenditures are presented by the following six major operating budget expenditure categories: personnel services, contractual services, commodities, capital outlay, debt service, and indirect cost allocation. Additionally, there are transfers-out to other funds. Personnel Services Personnel Services include the salaries and wages paid to employees, plus the City’s contribution for fringe benefits such as retirement, social security, health, and workers’ compensation insurance. The adopted Fy 2010/11 budget of $16.5 million represents 14.6 percent of the total Water and Sewer operating budget. The budget reflects the full-year costs of positions added in Fy 2009/10 and also includes 9.00 additional FTEs to address community facilities needs at the City’s water treatment plants. Personnel Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $16.5 $16.5* 2009/10 $16.7 $14.4* 2008/09 $15.7 $16.7 2007/08 $15.6 $14.7 2006/07 $14.1 $12.9 Contractual Services Contractual Services include expenditures for services performed by firms, individuals, or other City departments. Supplies are not included in the contractual services account. The adopted Fy 2010/11 budget of $27.4 million represents 25.4 percent of the total Water and Sewer operating budget and reflects $1.2 million decrease from the adopted Fy 2009/10 budget. The decrease is primarily due to cost reductions in the City’s share of costs for the regional wastewater treatment facility, consultants and other professional services. Contractual Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $27.4 $27.4* 2009/10 $28.6 $27.3* 2008/09 $29.7 $24.9 2007/08 $29.5 $25.2 2006/07 $27.7 $23.9 106 BudGeT BY Fund 107 WATER AND SEWER FuND ExPENDITuRES B Commodities Commodities are expendable items purchased through the City-approved centralized purchasing process. This classification includes supplies, repair and replacement parts, small tools, and maintenance and repair materials that are not of a capital nature. The adopted Fy 2010/11 budget of $24.0 million represents 23.3 percent of the total Water and Sewer operating budget and reflects a 13.2 percent or $2.8 million increase from the adopted Fy 2009/10 budget. The increase is primarily related to increases in granular activated carbon used in the water treatment process, materials to maintain and repair machinery and equipment, and purchased water costs. Commodities Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $24.0 $24.0* 2009/10 $21.2 $21.2* 2008/09 $22.1 $17.7 2007/08 $17.6 $17.1 2006/07 $15.2 $13.5 Capital outlay Capital Outlay includes the purchase of land, the purchase or construction of buildings, structures, and facilities of all types, plus machinery and equipment. To qualify as capital outlay, an item must have an estimated useful life of more than two years, typically have a unit cost of $5,000 or more, and be a betterment or improvement. The adopted Fy 2010/11 budget of $0.1 million represents 0.1 percent of the total Water and Sewer operating budget and reflects a $0.1 million increase from the adopted Fy 2009/10 budget. The increase is related to new vehicle purchases for additional FTEs. Capital outlay Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.1 $0.1* 2009/10 -* 2008/09 $0.1 $0.3 2007/08 $0.2 $0.2 2006/07 $0.3 $0.1 debt Service Debt Service represents the repayment of general obligation, revenue and Municipal Property Corporation (MPC) bonds, along with the applicable annual fiscal agent fees. The adopted Fy 2010/11 budget of $28.1 million represents 27.2 percent of the total Water and Sewer operating budget and reflects a 9.1 percent or $2.3 million increase from the adopted Fy 2009/10. The increase is primarily related to the repayment of $75.0 million in new MPC bonds issued in Fy 2009/10. debt Service Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $28.1 $28.1* 2009/10 $25.7 $26.5* 2008/09 $26.5 $26.5 2007/08 $21.4 $18.7 2006/07 $19.1 $16.7 BudGeT BY Fund WATER AND SEWER FuND ExPENDITuRES B Indirect Cost Allocation Indirect Cost Allocation represents Enterprise Funds charges for specific general Fund central administrative functions which benefit the Enterprise operations (e.g., City Manager, Financial Management, human Resources, Legal, etc.). The City’s indirect costs are allocated to the Enterprise Funds based upon their proportion of the overall operating budgets for direct service providers. The adopted Fy 2010/11 budget of $9.7 million represents 9.4 percent of the total Water and Sewer operating budget and reflects a $1.4 million decrease from the adopted Fy 2009/10 budget. Transfers-out Transfers-Out is the authorized movement of cash or other resources to other funds, divisions, departments, and/or capital projects. The adopted Fy 2010/11 budget of $56.1 million reflects a $25.5 million decrease from the adopted Fy 2009/10 budget, primarily related to transfers to the water and sewer CIP funds. water and Sewer Fund Balance/Reserves Fund balance/reserves protect the City’s financial condition and provide for unexpected economic challenges. growth of fund balance occurs when revenues exceed expenditures. Fund balances are similar to a company’s net equity (assets less liabilities). Prudent fiscal management dictates fund balances should only be used for nonrecurring (non-operational) expenditures. Once fund balances are spent, they are only replenished by future year resources in excess of expenditures. The City’s budget planning and adopted financial policies call for the establishment of reserves as part of the resource allocation/limit setting process. This process allows the City to “set aside savings” before allocated or spent as budgeted expenditures. The specific make-up of the City’s fund balance and reserves are noted below. operating Reserve Operating Reserve of $19.5 million is projected for the end of Fy 2010/11. This reserve is intended to ensure adequate funding for operations for a maximum period of 90 days. Repair/Replacement Reserve Repair/Replacement Reserve of $29.0 million is projected for the end of Fy 2010/11. This reserve is required per the term of the revenue bond indenture to ensure that funds are set aside to preserve the assets, which, in turn, are the collateral for the Water Revenue Bonds. The reserve is required to be at least 2.0 percent of the revenues received during the year, or until the reserve equals 2.0 percent of the value of total tangible assets. The reserve may be used from time to time for replacement or extension of the assets. Revenue Bond debt Service Reserve Revenue Bond Debt Service Reserve of $5.4 million is projected for the end of Fy 2010/11. This reserve is required per the term of the revenue bond indenture to ensure that funds are set aside as collateral for the Water Revenue Bonds debt service payments. Special Contractual Fund Balance Special Contractual Fund Balance of $3.3 million is projected for the end of Fy 2010/11. This balance reflects reserves established in accordance with various contractual agreements for delivery of non-potable water by the Water Resources Department. 108 BudGeT BY Fund B SOLID WASTE FuND SuMMARy Actual 2008/09 Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 Source of Funds: Beginning Fund Balance Operating Reserve Unreserved Total Beginning Fund Balance Revenues Refuse Collection Charges Interest Earnings Miscellaneous Revenue Subtotal Cash Transfers In CIP Fund Subtotal Total Sources 109 Use of Funds: Division Finance and Accounting Public Works Indirect Cost Allocation Subtotal Total Operating Budget Cash Transfers Out Transp Fund - Alley Maintenance Fleet Fund - Additional Vehicles CIP Fund (Solid Waste Capital Projects) CIP Fund (General Capital Projects) In Lieu Property Tax Total Cash Transfers Out Total Uses Ending Fund Balance Operating Reserve Unreserved Total Ending Fund Balance 4,646,448 683,686 5,330,134 4,543,482 100,000 4,643,482 5,016,537 1,026,619 6,043,156 4,453,718 1,238,816 5,692,534 20,030,707 213,139 20,243,846 19,536,531 54,692 727,800 20,319,023 19,406,284 106,611 637,505 20,150,400 19,409,471 53,453 687,242 20,150,166 70,900 70,900 - - - - - 20,314,746 20,319,023 20,150,400 20,150,166 849,475 15,368,048 2,568,528 18,786,051 812,522 16,331,205 3,040,175 20,183,902 812,552 15,687,169 2,500,566 19,000,287 765,978 15,659,117 2,509,556 18,934,651 18,786,051 20,183,902 19,000,287 18,934,651 334,012 423,000 48,100 10,560 815,672 358,550 1,100,000 31,600 10,585 1,500,735 358,550 1,100,000 31,600 10,585 1,500,735 380,063 1,400,000 69,400 7,050 1,856,513 19,601,723 21,684,637 20,501,022 20,791,164 5,016,537 1,026,619 6,043,156 3,277,868 3,277,868 4,453,718 1,238,816 5,692,534 4,566,241 485,295 5,051,536 BudGeT BY Fund B SOLID WASTE FuND FIVE-yEAR PLAN Adopted 2010/11 Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 Source of Funds: Beginning Fund Balance Operating Reserve Unreserved Total Beginning Fund Balance Revenues Refuse Collection Charges Interest Earnings Miscellaneous Revenue Subtotal Cash Transfers In CIP Fund Subtotal Total Sources Use of Funds: Division Finance and Accounting Public Works Indirect Cost Allocation Subtotal Total Operating Budget Cash Transfers Out Transp Fund - Alley Maintenance Fleet Fund - Additional Vehicles CIP Fund (Solid Waste Capital Projects) CIP Fund (General Capital Projects) In Lieu Property Tax Total Cash Transfers Out Total Uses Ending Fund Balance Operating Reserve Unreserved Total Ending Fund Balance 4,453,718 1,238,816 5,692,534 4,566,241 485,295 5,051,536 4,813,200 358,145 5,171,345 5,043,942 390,836 5,434,778 5,232,082 162,423 5,394,505 19,409,471 53,453 687,242 20,150,166 19,625,809 76,101 709,495 20,411,405 20,174,999 105,011 731,408 21,011,418 20,761,827 107,221 753,522 21,622,570 21,357,490 107,217 761,236 22,225,943 - - - - - 20,150,166 20,411,405 21,011,418 21,622,570 22,225,943 765,978 15,659,117 2,509,556 18,934,651 781,298 16,043,011 2,572,295 19,396,604 808,643 16,545,639 2,649,464 20,003,746 836,945 17,171,398 2,742,195 20,750,538 866,239 17,966,815 2,851,883 21,684,937 18,934,651 19,396,604 20,003,746 20,750,538 21,684,937 380,063 1,400,000 69,400 7,050 1,856,513 402,867 460,000 28,600 3,525 894,992 427,039 292,000 25,200 744,239 452,661 443,844 15,800 912,305 479,821 21,300 501,121 20,791,164 20,291,596 20,747,985 21,662,843 22,186,058 4,566,241 485,295 5,051,536 4,813,200 358,145 5,171,345 5,043,942 390,836 5,434,778 5,232,082 162,423 5,394,505 5,434,390 0 5,434,390 110 BudGeT BY Fund SOLID WASTE FuND REVENuES B Solid waste Fund Fund Purpose This fund accounts for the transactions related to the City’s solid waste and recycling business activities, which includes operating revenues and expenditures. Capital expenditures are accounted for in a separate CIP fund. 111 Refuse Collection Charges Refuse Collection Charges adopted Fy 2010/11 budget totals $20.1 million, reflecting a 0.3 percent or $0.1 million increase from the Fy 2009/10 year-end forecast. The revenue forecast assumes no fee increases in the Fy 2010/11 budget. Solid Waste Charges are billed monthly for the pickup of solid waste. Residential customers are charged a flat fee per month, while commercial customers are charged based upon the size of the container and the number of pickups per month. In addition, the City also provides roll-off, uncontained service, recycling programs, and household hazardous waste collection. Fees are reviewed annually to determine if they cover the costs of the services provided. Refuse Collection Charges Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $20.1 $20.1* 2009/10 $20.3 $20.0* 2008/09 $20.0 $20.0 2007/08 $18.8 $19.8 2006/07 $18.0 $18.5 Interest earnings Revenue Interest Earnings Revenue adopted Fy 2010/11 budget of $0.05 million remains flat from the Fy 2009/10 year-end forecast. Interest earnings are generated on idle Solid Waste Fund cash balance throughout the year. This revenue is a function of the relationship between the available cash balance and interest rate. The City earns interest on idle funds through various investment vehicles in accordance with Arizona Revised Statutes and City Ordinance. The City’s investment policy stresses safety above yield. Interest earnings Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.05 $0.05* 2009/10 $0.05 $0.1* 2008/09 $0.2 $0.2 2007/08 $0.2 $0.3 2006/07 $0.1 $0.3 BudGeT BY Fund SOLID WASTE FuND ExPENDITuRES B Solid waste Fund expenditures By expenditure Type The Solid Waste Fund expenditures are presented by the following six major operating budget expenditure categories: personnel services, contractual services, commodities, capital outlay, debt service, and indirect cost allocation. Additionally, there are transfers-out to other funds. Personnel Services Personnel Services include the salaries and wages paid to employees, plus the City’s contribution for fringe benefits such as retirement, social security, health, and workers’ compensation insurance. The adopted Fy 2010/11 budget of $5.8 million represents 37.2 percent of the total Solid Waste operating budget and reflects a 3.0 percent or $0.2 million decrease from the adopted Fy 2009/10 budget. Personnel Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $5.8 $5.8* 2009/10 $6.0 $6.0* 2008/09 $6.2 $6.0 2007/08 $5.5 $5.8 2006/07 $5.2 $5.3 Contractual Services Contractual Services include expenditures for services performed by firms, individuals, or other City departments. Supplies are not included in the contractual services account. The adopted Fy 2010/11 budget of $10.2 million represents 60.1 percent of the total Solid Waste operating budget and reflects a 4.3 percent or $0.4 million decrease from the adopted Fy 2009/10 budget, primarily related to operations costs and landfill contracts. Contractual Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $10.2 $10.2* 2009/10 $10.6 $10.0* 2008/09 $10.1 $10.2 2007/08 $5.5 $9.8 2006/07 $8.8 $9.6 Commodities Commodities are expendable items purchased through the City-approved centralized purchasing process. This classification includes supplies, repair and replacement parts, small tools, and maintenance and repair materials that are not of a capital nature. The adopted Fy 2010/11 budget of $0.4 million represents 2.7 percent of the total Solid Waste operating budget, which reflects a 14.5 percent or $0.1 million decrease from the adopted Fy 2009/10 budget. Commodities Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.4 $0.4* 2009/10 $0.5 $0.5* 2008/09 $0.5 $0.5 2007/08 $0.5 $0.6 2006/07 $0.5 $0.6 112 BudGeT BY Fund Capital outlay Capital Outlay includes the purchase of land, the purchase or construction of buildings, structures, and facilities of all types, plus machinery and equipment. To qualify as capital outlay, an item must have an estimated useful life of more than two years, typically have a unit cost of $5,000 or more, and be a betterment or improvement. The adopted Fy 2010/11 budget is zero. 113 SOLID WASTE FuND ExPENDITuRES Solid waste Fund Capital outlay Adopted Budget to Actual/Approved* ADOPTED BuDgET FISCAL yEAR 2010/11 2009/10 2008/09 $0.2 2007/08 2006/07 - B ACTuAL/ APPROVED* -* -* - Indirect Cost Allocation Indirect Cost Allocation represents Enterprise Funds charges for specific general Fund central administrative functions, which benefit the Enterprise operations (e.g., City Manager, Financial Management, human Resources, Legal, etc.). The City’s indirect costs are allocated to the Enterprise Funds based upon their proportion of the overall operating budgets for direct service providers. The adopted Fy 2010/11 budget of $2.5 million represents 16.0 percent of the total Solid Waste operating budget and reflects a 17.4 percent or $0.5 million decrease from the adopted Fy 2009/10 budget. Transfers-out Transfers-Out is the authorized movement of cash or other resources to other funds, divisions, departments, and/or capital projects. The adopted Fy 2010/11 budget of $1.9 million reflects a 23.7 percent or $0.4 million increase from the adopted Fy 2009/10 budget, primarily related to an increase in the transfers out to the CIP Fund. Solid waste Fund Balance operating Reserve Operating Reserve of $4.6 million is projected for the end of Fy 2010/11. This reserve is intended to ensure adequate funding for operations for a maximum period of 90 days. The intent of the reserve is to provide for emergencies and the possibility of significant future increases in landfill costs. City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 114 BudGeT BY Fund B AVIATION FuND SuMMARy Actual 2008/09 Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 Source of Funds: Beginning Fund Balance Operating Reserve Repair and Replacement Reserve Unreserved - Operating Total Beginning Fund Balance 610,580 1,911,330 2,521,910 589,843 2,357,010 849,213 3,796,066 589,843 3,346,631 0 3,936,474 526,077 2,661,113 1,556,154 4,743,344 Revenues Aviation Fees Interest Earnings Jet Fuel Tax Subtotal 2,835,658 68,826 119,381 3,023,865 2,712,463 78,001 126,842 2,917,306 2,977,304 70,000 123,000 3,170,304 2,977,304 70,000 123,000 3,170,304 Cash Transfers In CIP Airport Fund Subtotal 1,590,954 1,590,954 Total Sources - - - 4,614,820 2,917,306 3,170,304 3,170,304 Division Economic Vitality - Aviation Indirect/Direct Cost Allocation Direct Cost Allocation (Fire) Subtotal 1,576,232 282,538 328,046 2,186,816 1,604,983 301,466 363,942 2,270,391 1,510,699 143,894 415,195 2,069,788 1,729,622 154,500 415,195 2,299,317 Total Operating Budget 2,186,816 2,270,391 2,069,788 2,299,317 46,440 11,200 955,800 1,013,440 48,346 28,200 229,900 306,446 48,346 15,400 229,900 293,646 900 10,700 1,572,574 1,584,174 3,200,256 2,576,837 2,363,434 3,883,491 589,843 3,346,631 0 3,936,474 571,743 3,235,590 329,202 4,136,535 526,077 2,661,113 1,556,154 4,743,344 569,815 3,366,463 93,879 4,030,157 Use of Funds: 115 Cash Transfers Out In Lieu Property Tax Operating Projects CIP Fund (General Capital Projects) CIP Fund (Aviation Capital Proj Fund) Total Cash Transfers Out Total Uses Ending Fund Balance Operating Reserve Repair and Replacement Reserve Unreserved Total Ending Fund Balance BudGeT BY Fund B AVIATION FuND FIVE-yEAR PLAN Adopted 2010/11 Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 Source of Funds: Beginning Fund Balance Operating Reserve Repair and Replacement Reserve Unreserved - Operating Total Beginning Fund Balance 526,077 2,661,113 1,556,154 4,743,344 569,815 3,366,463 93,879 4,030,157 646,685 3,601,463 154,847 4,402,995 615,892 3,863,463 181,860 4,661,215 636,540 3,863,463 841,500 5,341,503 Revenues Aviation Fees Interest Earnings Jet Fuel Tax Subtotal 2,977,304 70,000 123,000 3,170,304 3,005,574 70,700 124,230 3,200,504 3,034,127 71,407 125,472 3,231,006 3,062,965 72,121 126,727 3,261,813 3,092,092 72,842 127,994 3,292,928 Cash Transfers In CIP Airport Fund Subtotal Total Sources - - - - - 3,170,304 3,200,504 3,231,006 3,261,813 3,292,928 Division Economic Vitality - Aviation Indirect/Direct Cost Allocation Direct Cost Allocation (Fire) Subtotal 1,729,622 154,500 415,195 2,299,317 1,970,082 216,709 425,575 2,612,366 1,847,607 203,237 438,342 2,489,186 1,910,487 210,154 453,684 2,574,325 1,978,426 217,627 471,831 2,667,884 Total Operating Budget 2,299,317 2,612,366 2,489,186 2,574,325 2,667,884 900 10,700 1,572,574 1,584,174 1,200 9,100 205,000 215,300 800 7,800 475,000 483,600 1,000 6,200 7,200 1,100 8,700 9,800 3,883,491 2,827,666 2,972,786 2,581,525 2,677,684 569,815 3,366,463 93,879 4,030,157 646,685 3,601,463 154,847 4,402,995 615,892 3,863,463 181,860 4,661,215 636,540 3,863,463 841,500 5,341,503 660,251 3,863,463 1,433,033 5,956,747 Use of Funds: Cash Transfers Out In Lieu Property Tax Operating Projects CIP Fund (General Capital Projects) CIP Fund (Aviation Capital Proj Fund) Total Cash Transfers Out Total Uses Ending Fund Balance Operating Reserve Repair and Replacement Reserve Unreserved Total Ending Fund Balance 116 BudGeT BY Fund AVIATION FuND REVENuES B Aviation Fund Fund Purpose This fund accounts for the transactions related to the City’s aviation business activity at the Scottsdale Airport, which includes operating revenue and expenditures. Capital Expenditures are accounted for in a separate CIP fund. 117 Aviation Fees and Charges Revenue Aviation Fees and Charges Revenue adopted Fy 2010/11 budget totals $3.0 million, which remains flat with the Fy 2009/10 year-end forecast. The revenue forecast assumes no fee increases in the Fy 2010/11 budget. Aviation fees and charges are for a variety of services provided to airport customers including tie down fees, hangar rentals, fuel sales, and other rental charges. Fees are reviewed annually to determine if they cover the costs of the services provided. Aviation Fees and Charges Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED FISCAL yEAR BuDgET FORECAST* 2010/11 $3.0 $3.0* 2009/10 $2.7 $3.0* 2008/09 $3.6 $2.8 2007/08 $3.5 $3.4 2006/07 $3.3 $3.5 Interest earnings Revenue Interest Earnings Revenue adopted Fy 2010/09 budget totals $0.1 million, reflecting no change from the Fy 2009/10 year-end forecast. Interest earnings are generated on idle Aviation Fund cash balance throughout the year. This revenue is a function of the relationship between the available cash balance and interest rate. The City earns interest on idle funds through various investment vehicles in accordance with Arizona Revised Statutes and City Ordinance. The City’s investment policy stresses safety above yield. Interest earnings Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.1 $0.1* 2009/10 $0.1 $0.1* 2008/09 $0.1 $0.1 2007/08 $0.1 $0.1 2006/07 $0.1 $0.2 Jet Fuel Tax Revenue Jet Fuel Tax Revenue adopted Fy 2010/11 budget totals $0.1 million, remaining flat with the Fy 2009/10 year-end forecast. Jet Fuel Tax Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.1 $0.1* 2009/10 $0.1 $0.1* 2008/09 $0.1 $0.1 2007/08 $0.1 $0.2 2006/07 $0.1 $0.2 BudGeT BY Fund AVIATION FuND ExPENDITuRES B Aviation Fund expenditures By expenditure Type The direct operating expenditures of the Aviation Fund are divided into the following five major expenditure categories, plus transfers-out: Personnel Services Personnel Services include the salaries and wages paid to employees, plus the City’s contribution for fringe benefits such as retirement, social security, health, and workers’ compensation insurance. The adopted Fy 2010/11 budget of $1.0 million represents 43.9 percent of the total Aviation Fund operating budget and reflects a 6.4 percent or $0.1 million decrease from the adopted Fy 2009/10 budget. Personnel Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $1.0 $1.0* 2009/10 $1.1 $1.0* 2008/09 $1.1 $1.2 2007/08 $1.1 $1.1 2006/07 $1.0 $1.0 Contractual Services Contractual Services include expenditures for services performed by firms, individuals, or other City departments. Supplies are not included in the contractual services account. The adopted Fy 2010/11 budget of $0.7 million represents 29.2 percent of the total Aviation Fund operating budget and reflects a 36.6 percent or $0.2 million increase from the adopted Fy 2009/10 budget primarily related to consultants, facility services and custodial services. Contractual Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.7 $0.7* 2009/10 $0.5 $0.5* 2008/09 $0.6 $0.6 2007/08 $0.6 $0.6 2006/07 $0.6 $0.6 Commodities Commodities are expendable items purchased through the City-approved centralized purchasing process. This classification includes supplies, repair and replacement parts, small tools, and maintenance and repair materials that are not of a capital nature. The adopted Fy 2010/11 budget is zero. Commodities Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 -* 2009/10 -* 2008/09 2007/08 $0.1 $0.1 2006/07 $0.1 $0.1 118 BudGeT BY Fund AVIATION FuND ExPENDITuRES B Capital outlay Capital Outlay includes the purchase of land, the purchase or construction of buildings, structures, and facilities of all types, plus machinery and equipment. To qualify as capital outlay, an item must have an estimated useful life of more than two years, typically have a unit cost of $5,000 or more, and be a betterment or improvement. The adopted Fy 2010/11 budget is zero. Indirect/direct Cost Allocation Indirect/Direct Cost Allocation represents charges to the Aviation Fund for specific general Fund central administrative functions which benefit the Enterprise operations (e.g., City Manager, Financial Management, human Resources, Legal, etc.), as well as direct general Fund Fire services provided to the Scottsdale Airport. The City’s indirect costs are allocated to the Enterprise Funds based upon their proportion of the overall operating budgets for direct service providers. The indirect cost allocation adopted Fy 2010/11 budget of $0.2 million represents 6.7 percent of the total Aviation Fund operating budget reflecting a 48.5 percent or a $0.1 million decrease from the adopted Fy 2009/10 budget. The direct charge for general Fund Fire services adopted Fy 2010/11 budget of $0.4 million represents 18.1 percent of the total Aviation Fund operating budget reflecting no change from the Fy 2009/10 budget. 119 Transfers-out Transfers-Out is the authorized movement of cash or other resources to other funds, divisions, departments, and/or capital projects. The adopted Fy 2010/11 budget of $1.6 million reflects a $1.3 million increase from the adopted Fy 2009/10 budget. The increase is related to increased transfers out to the CIP Fund for Aviation capital projects. Aviation Fund Balance operating Reserve Operating Reserve of $0.6 million is projected for the end of Fy 2010/11. This reserve is intended to ensure adequate funding for operations for a maximum period of 90 days. The intent of the reserve is to provide for emergencies, provide for potential grant matches, and to ensure that general Fund subsidies are avoided. Repair and Replacement Reserve of $3.4 million is projected for the end of Fy 2010/11. The intent of the reserve is to ensure adequate funding for emergency repair and replacement needs at the airport. unreserved Fund Balance is projected to be $0.1 million at the end of Fy 2010/11. The unreserved balance represents the net financial resources that are expendable or available for budgeting. City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 120 BudGeT BY Fund 121 FLEET FuND SuMMARy B BudGeT BY Fund FLEET FuND FIVE-yEAR PLAN B 122 BudGeT BY Fund FLEET FuND REVENuES B Internal Service Funds description The City uses three separate Internal Service Funds to account for the activity of this fund type. The individual funds are Fleet Management, Risk Management Self-Insurance Fund and healthcare Self-Insurance Fund. Fleet Management Fund Fund Purpose This fund is used to account for the expenditures associated with purchasing and maintaining the City’s vehicles. Replacement and operation of vehicles are charged to the City departments as internal operating costs to each program based on the quantity and type of vehicle used. The department charges become revenue to the Fleet Management Fund. 123 Rates-vehicle Acquisition Fleet Management Fund Revenues and Transfers-In Rates - Vehicle Acquisition represents the “rental” rate charged to other City funds and programs sufficient for the acquisition and replacement of City vehicles. For Fy 2010/11, approximately 20 percent of the Fleet Management Fund’s operating revenues come from rates related to vehicle acquisition. The adopted vehicle acquisition rates budget for Fy 2010/11 totals approximately $2.9M and represents a $1.2M increase from the Fy 2009/10 year-end revenue forecast. The increase is primarily attributed to the Fy2009/2010 significant decrease from Fy2008/09 as a result of the City’s reduction plan to address the economic recession, and the effort for Fy2010/11 to properly forecast a more realistic and sustainable requirement. Rates - vehicle Acquisition Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $2.9 $2.9* 2009/10 $1.7 $1.7* 2008/09 $5.4 $5.4 2007/08 $5.4 $5.4 2006/07 $5.0 $5.0 Rates-Maintenance & operation Maintenance & Operation represents the “rental” rate to other City programs sufficient for the maintenance and operation of City vehicles. For Fy 2010/09, approximately 78 percent of the Fleet Management Fund’s operating revenues come from rates related to vehicle maintenance and operation. The adopted maintenance and operations rates budget for Fy 2010/11 totals $11.2M for a decrease of approximately $0.3M over the Fy 2009/10 year-end revenue forecast. Rates - Maintenance & operation Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $11.2 $11.2* 2009/10 $11.9 $11.5* 2008/09 $12.9 $12.9 2007/08 $10.3 $10.3 2006/07 $9.2 $9.3 BudGeT BY Fund FLEET FuND REVENuES B Miscellaneous Revenue Miscellaneous Revenue comes from the liquidation of surplus property. The Fy 2010/11 budget is $0.2 million, which remains relatively flat with the Fy 2009/10 year-end revenue forecast. Miscellaneous Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.2 $0.2* 2009/10 $0.2 $0.2* 2008/09 $0.2 $0.3 2007/08 $0.2 $0.2 2006/07 $0.2 $0.5 Interest earnings Interest Earnings Interest earnings are generated on idle Fleet Management Fund cash balance throughout the year. This revenue is a function of the relationship between the available cash balance and interest rate. The City earns interest on idle funds through various investment vehicles in accordance with Arizona Revised Statutes and City Ordinance. The City’s adopted investment policy stresses safety above yield. The adopted Fy 2010/11 interest earnings budget is $0.1million. Interest earnings Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.1 $0.1* 2009/10 $0.2 $0.2* 2008/09 $0.3 $0.4 2007/08 $0.5 $0.5 2006/07 $0.4 $0.6 124 BudGeT BY Fund FLEET FuND ExPENDITuRES B Fleet Management Fund expenditures By Category The direct operating expenditures of the Fleet Management Fund are divided into the following four major expenditure categories: Personnel Services Personnel Services include the salaries and wages paid to employees, plus the City’s contribution for fringe benefits such as retirement, social security, health, and workers’ compensation insurance. The adopted personnel services budget totals approximately $3.3 million, which represents 21 percent of the Fleet Management Fund total operating budget for Fy 2010/11. The adopted Fy 2010/11 personnel services budget decreased $0.2 million from the Fy 2009/10 adopted budget. The decrease is primarily attributed to the City’s budget reduction plan to address the economic recession. Personnel Services Adopted Budget to Actual/Approved*(in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $3.3 $3.3* 2009/10 $3.5 $3.2* 2008/09 $3.6 $3.5 2007/08 $3.7 $3.7 2006/07 $3.5 $3.1 Contractual Services Contractual Services include expenditures for services performed by firms, individuals, or other City departments. Supplies are not included in the contractual services account. The adopted budget of nearly $1.5M represents 10 percent of the Fleet Management Fund total operating budget for Fy 2010/11. The adopted Fy 2010/11 contractual services budget reflects a decrease totaling approximately $0.1 million from the adopted budget Fy 2009/10. Contractual Services (in millions) ADOPTED BuDgET FISCAL yEAR 2010/11 $1.5 2009/10 $1.6 2008/09 $1.2 2007/08 $1.2 2006/07 $1.0 125 ACTuAL/ APPROVED* $1.5* $1.6* $1.4 $1.2 $1.0 BudGeT BY Fund FLEET FuND ExPENDITuRES B Commodities Commodities are expendable items purchased through the City-approved centralized purchasing process. This classification includes supplies, repair and replacement parts, small tools, and maintenance and repair materials that are not of a capital nature. The budget of $6.8 million represents 45 percent of the Fleet Management Fund total operating budget for Fy 2010/11. The adopted Fy 2010/11 commodities budget increased $0.1 million from the adopted budget Fy 2009/10, reflecting cost saving measures due to budget reduction strategies offset by rising fuel costs. Commodities Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $6.8 $6.8* 2009/10 $6.7 $6.2* 2008/09 $8.4 $5.9 2007/08 $6.1 $6.1 2006/07 $5.5 $5.8 Capital outlay Capital Outlay includes the purchase of land, the purchase or construction of buildings, structures, and facilities of all types, plus machinery and equipment. To qualify as capital outlay, an item must have an estimated useful life of more than two years, typically have a unit cost of $5,000 or more, and be a betterment or improvement. The capital outlay budget of $3.7 million represents 24 percent of the Fleet Management Fund total operating budget for Fy 2010/11. The adopted Fy 2010/11 capital outlay budget increased approximately $1.6 million from the Fy 2009/10 adopted budget. The budget increase is primarily attributed to the Fy2009/2010 significant decrease from Fy2008/09 as a result of the City’s reduction plan to address the economic recession, and the effort for Fy2010/11 to properly forecast a more realistic and sustainable requirement . Capital outlay Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $3.7 $3.7* 2009/10 $2.1 $3.5* 2008/09 $3.4 $3.1 2007/08 $3.3 $4.4 2006/07 $5.9 $7.2 126 BudGeT BY Fund FLEET FuND ExPENDITuRES B Transfers-out Cash Transfers-Out is the authorized movement of cash or other resources to other funds, divisions, departments, and/or capital projects. Cash transfers-out totaling less than $0.1 million are planned in Fy 2010/11 to cover the cost of Fleet’s share of general capital projects. Fleet Management Fund Balance The Fleet Management Fund balance varies primarily due to the vehicle replacement schedule. The portion of internal charges to programs for replacement vehicles is evenly spread over the expected life of the vehicles. This charge becomes revenue to the Fleet Management Fund and is representative of the replacement charge for many vehicles with differing useful lives. Therefore, the revenue does not vary significantly by year, but the year in which vehicles are purchased may vary significantly if, for example, several large, expensive vehicles are scheduled for replacement in a single year. The fund balance at the end of each year includes the accumulated balance to be used for future year vehicle purchases. The ending Fy 2010/11 fund balance is projected to be approximately $8.3 million, which is a $0.2 million increase from the Fy 2009/10 year-end adopted. 127 City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 128 BudGeT BY Fund RISK MANAgEMENT SELF INSuRANCE FuND SuMMARy B Actual 2008/09 Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 17,672,746 17,672,746 12,662,824 12,662,824 12,662,823 12,662,823 15,138,496 15,138,496 Revenues Property, Liability, Work Comp Rates Unemployment Taxes Interest - Property Casualty Property Tax (Tort Claims) Insurance/Claim Recoveries Special Event Reimbursements Miscellaneous Subtotal 6,235,234 54,940 530,571 22,743 682,059 59,727 7,585,274 6,604,860 60,000 357,469 1,930,000 250,000 50,000 9,252,329 6,604,860 60,000 357,469 1,754,736 150,000 50,000 8,977,065 5,104,860 60,000 407,623 750,000 250,000 50,000 6,622,483 Total Sources 7,585,274 9,252,329 8,977,065 6,622,483 Expenditures Risk Mgmt - Operating Budget Risk Mgmt - Excess Ins. Premiums Claims (General Liability) Claims (Property) Claims (Workers' Compensation) Claims (Unemployment) Subtotal 1,068,431 1,220,842 3,174,309 157,916 1,862,544 103,854 7,587,896 980,092 1,250,000 2,724,000 185,000 2,099,240 300,000 7,538,332 930,952 1,250,000 1,724,000 185,000 2,099,240 300,000 6,489,192 980,092 1,250,000 2,250,000 225,000 2,183,210 350,000 7,238,302 Cash Transfers Out Operating Projects CIP Fund (Tech. Replacement) General Fund Subtotal 7,300 5,000,000 5,007,300 12,200 12,200 12,200 12,200 1,700 8,500 10,200 Total Uses 12,595,196 7,550,532 6,501,392 7,248,502 Ending Fund Balance Property Casualty Claim Reserve Total Ending Fund Balance 12,662,824 12,662,824 14,364,621 14,364,621 15,138,496 15,138,496 14,512,477 14,512,477 Source of Funds: Beginning Fund Balance: Property Casualty Claims Reserve Total Beginning Fund Balance 129 Use of Funds: BudGeT BY Fund B RISK MANAgEMENT SELF INSuRANCE FIVE-yEAR PLAN Adopted 2010/11 Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 15,138,496 15,138,496 14,512,477 14,512,477 14,128,849 14,128,849 13,780,423 13,780,423 14,429,060 14,429,060 Revenues Property, Liability, Work Comp Rates Unemployment Taxes Interest - Property Casualty Property Tax (Tort Claims) Insurance/Claim Recoveries Special Event Reimbursements Miscellaneous Subtotal 5,104,860 60,000 407,623 750,000 250,000 50,000 6,622,483 5,604,860 60,000 447,129 850,000 250,000 50,000 7,261,989 6,165,346 60,000 479,491 1,000,000 250,000 50,000 8,004,837 6,411,960 62,400 498,671 2,000,000 250,000 50,000 9,273,030 6,668,438 62,400 432,872 1,000,000 250,000 50,000 8,463,710 Total Sources 6,622,483 7,261,989 8,004,837 9,273,030 8,463,710 980,092 1,250,000 2,250,000 225,000 2,183,210 350,000 7,238,302 1,039,779 1,300,000 2,475,000 250,000 2,271,538 300,000 7,636,317 1,070,973 1,325,000 3,064,130 275,000 2,361,360 250,000 8,346,463 1,113,812 1,325,000 3,186,695 286,000 2,455,814 250,000 8,617,322 1,147,226 1,325,000 3,314,163 275,000 2,554,047 250,000 8,865,436 1,700 8,500 10,200 1,000 8,300 9,300 700 6,100 6,800 800 6,272 7,072 800 6,000 6,800 7,248,502 7,645,617 8,353,263 8,624,394 8,872,236 14,512,477 14,512,477 14,128,849 14,128,849 13,780,423 13,780,423 14,429,060 14,429,060 14,020,534 14,020,534 Source of Funds: Beginning Fund Balance: Property Casualty Claims Reserve Total Beginning Fund Balance Use of Funds: Expenditures Risk Mgmt - Operating Budget Risk Mgmt - Excess Ins. Premiums Claims (General Liability) Claims (Property) Claims (Workers' Compensation) Claims (Unemployment) Subtotal Cash Transfers Out Operating Projects CIP Fund (Tech. Replacement) General Fund Subtotal Total Uses Ending Fund Balance Property Casualty Claim Reserve Total Ending Fund Balance 130 BudGeT BY Fund RISK MANAgEMENT SELF INSuRANCE REVENuES B Risk Management Self-Insurance Fund Fund Purpose The Risk Management Self-Insurance Fund is used to account for the City’s self-insurance, safety and risk management functions. Revenue to this fund is derived from internal charges to user programs. Payments for unemployment, workers’ compensation, and property and liability claims are made from this fund. 131 Property Casualty Revenues Property Casualty Revenues represent this fund’s operating resources, which are derived from internal charges for services to other City funds. The fund covers excess insurance premiums, administrative charges and claim payments for general and auto liability/physical damages, workers’ compensation, unemployment taxes, and property damage. Property Casualty Revenues Adopted Budget to Actual/Forecast* (in millions) ADOPTED ACTuAL/ BuDgET FORECAST* FISCAL yEAR 2010/11 $5.9 $5.9* 2009/10 $7.3 $7.2* 2008/09 $6.7 $7.6 2007/08 $6.7 $7.5 2006/07 $6.2 $7.2 Property Taxes (Tort Claims) Property Taxes (Tort Claims) this revenue represents a reimbursement to the City’s Self-Insurance Fund for the “actual” cost of liability tort settlements and judgments paid during the most recently completed calendar year. The inclusion of the tort claim reimbursements in the City’s primary tax levy is allowed per a March 20, 1986 Arizona Attorney general opinion. These are paid from the Risk Management Self-Insurance Fund and therefore, the reimbursement becomes revenue to this fund. In Fy 2010/11, tort claims of $0.7 million were included in the adopted budget. Property Taxes (Tort Claims) Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.7 $0.7* 2009/10 $1.9 $1.8* 2008/09 $0.02 $0.02 2007/08 $0.20 $0.17 2006/07 N/A N/A ** ** City Council opted not to assess torts in FY 2006/07 Cash Transfers-In Cash Transfers-In may be used to address anticipated claim costs. In the adopted Fy 2010/11 budget no cash transfers-in are planned to the Risk Management Self-Insurance Fund. BudGeT BY Fund RISK MANAgEMENT SELF INSuRANCE ExPENDITuRES B Internal Service Funds description The City uses three separate Internal Service Funds to account for the activity of this fund type. The individual funds are Fleet Management, Risk Management Self-Insurance Fund and healthcare Self-Insurance Fund. Risk Management Self Insurance Fund expenditures By Category The direct operating expenditures of the Risk-Management Self-Insurance Fund are divided into the following four major expenditure categories plus transfers-out: Personnel Services Personnel Services include the salaries and wages paid to employees, plus the City’s contribution for fringe benefits such as retirement, social security, health, and workers’ compensation insurance. The adopted budget of less than $0.6 million represents approximately 8 percent of the Fy 2010/11 Risk Management Self-Insurance Fund total operating budget. Personnel Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.6 $0.6* 2009/10 $0.5 $0.6* 2008/09 $0.7 $0.9 2007/08 $0.7 $0.7 2006/07 $0.7 $0.7 Contractual Services Contractual Services include expenditures for excess insurance premiums, claim payments, services performed by firms, individuals, or other City departments. The budget of $6.5 million represents approximately 90 percent of the Fy 2010/11 Self-Insurance Fund operating budget. Contractual Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $6.5 $6.5* 2009/10 $6.9 $5.8* 2008/09 $5.9 $6.5 2007/08 $5.9 $6.2 2006/07 $5.7 $3.1 Commodities Commodities include supplies, repair and replacement parts, small tools, and maintenance and repair materials that are not of a capital nature. The adopted Fy 2010/11 commodities budget of approximately $95,019 remains consistent with the adopted Fy 2009/10 budget. Commodities Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.1 $0.1* 2009/10 $0.1 $0.1* 2008/09 $0.14 $0.2 2007/08 $0.10 $0.11 2006/07 $0.03 $0.11 132 BudGeT BY Fund RISK MANAgEMENT SELF-INSuRANCE ExPENDITuRES B Capital outlay Capital Outlay includes the purchase of land, the purchase or construction of buildings, structures, and facilities of all types, plus machinery and equipment. There is no capital outlay budget for Fy 2010/11. Transfers-out Cash Transfers-Out is the authorized movement of cash to other funds, divisions, departments, and capital projects. Cash transfers-out of $10,200 are planned to help cover the cost of general capital projects. Risk Management Self-Insurance Fund Balance The Risk Management Fund balance is maintained to provide for coverage of unemployment, workers’ compensation, and property and liability claims. The required fund balance is actuarially determined on an annual basis. The projected Fy 2010/11 total ending fund balance is approximately $14.5 million, which is a decrease of $0.6 million from the Fy 2009/10 year end forecast and is within actuary recommendations. 133 City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 134 BudGeT BY Fund hEALThCARE SELF-INSuRANCE FuND SuMMARy Actual 2008/09 Adopted 2009/10 Forecast 2009/10 B Adopted 2010/11 Source of Funds: Beginning Fund Balance Healthcare - Beginning Claims Reserve STD - Beginning Claims Reserve Total Beginning Fund Balance 7,518,766 628,163 8,146,929 5,018,766 773,163 5,791,929 8,083,197 773,163 8,856,360 8,083,197 903,163 8,986,360 Revenues Healthcare/Dental Revenues Healthcare - Other Revenues STD - Rates Subtotal 24,748,679 645,713 350,227 25,744,619 24,158,922 615,000 320,000 25,093,922 23,836,591 643,441 320,000 24,800,032 18,669,529 3,118,140 320,000 22,107,669 Total Sources 25,744,619 25,093,922 24,800,032 22,107,669 Expenditures Healthcare Claims and Claims Administration Healthcare - Dental Claims Healthcare - Live Life Well Program Healthcare - Other Administrative Expenses STD - Claims Subtotal 24,664,309 3,130 162,522 120,145 24,950,106 23,894,289 236,192 643,441 190,000 24,773,922 23,592,433 244,158 643,441 190,000 24,480,032 20,400,000 1,658,554 610,975 3,118,140 150,000 25,787,669 Total Uses 24,950,106 24,773,922 24,480,032 25,787,669 8,083,197 858,245 8,941,442 5,018,766 903,163 5,921,929 8,083,197 903,163 8,986,360 4,083,197 1,073,163 5,156,360 Use of Funds: 135 Ending Fund Balance Healthcare Claims Reserve Short Term Disability Total Ending Fund Balance BudGeT BY Fund hEALThCARE SELF-INSuRANCE FuND FIVE-yEAR PLAN Adopted 2010/11 Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 B Forecast 2014/15 Source of Funds: Beginning Fund Balance Healthcare - Beginning Claims Reserve STD - Beginning Claims Reserve Total Beginning Fund Balance 8,083,197 903,163 8,986,360 4,083,197 1,013,163 5,096,360 3,083,197 1,103,163 4,186,360 3,083,197 1,173,163 4,256,360 3,083,197 1,173,163 4,256,360 Revenues Healthcare/Dental Revenues Healthcare - Other Revenues STD - Rates Subtotal 18,669,529 3,118,140 320,000 22,107,669 22,755,871 3,180,503 25,936,374 24,895,867 3,244,113 28,139,980 26,092,173 3,308,995 29,401,168 27,347,576 3,375,175 30,722,751 Total Sources 22,107,669 25,936,374 28,139,980 29,401,168 30,722,751 Expenditures Healthcare Claims and Claims Administration Healthcare - Dental Claims Healthcare - Live Life Well Program Healthcare - Other Administrative Expenses STD - Claims Subtotal 20,400,000 1,658,554 610,975 3,118,140 150,000 25,787,669 21,420,000 1,724,896 610,975 3,180,503 26,936,374 22,491,000 1,793,892 610,975 3,244,113 28,139,980 23,615,550 1,865,648 610,975 3,308,995 29,401,168 24,796,328 1,940,274 610,975 3,375,175 30,722,751 Total Uses 25,787,669 26,936,374 28,139,980 29,401,168 30,722,751 4,083,197 1,073,163 5,156,360 3,083,197 1,013,163 4,096,360 3,083,197 1,103,163 4,186,360 3,083,197 1,173,163 4,256,360 3,083,197 1,173,163 4,256,360 Use of Funds: Ending Fund Balance Healthcare Claims Reserve Short Term Disability Total Ending Fund Balance 136 BudGeT BY Fund 137 hELAThCARE SELF-INSuRANCE REVENuES B healthcare Revenues healthcare Revenues are comprised of contributions from the City (i.e., employer), employees, retirees, COBRA participants, medical leave conversion contributions, and interest earnings allocated to health care. The Fy 2010/11 adopted budget of $21.8 million is $2.7 million less than the Fy 2009/10 forecast. healthcare Revenues Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $21.8 $21.8* 2009/10 $24.8 $24.5* 2008/09 $26.8 $25.4 2007/08 $24.5 $23.0 2006/07 $22.3 $19.9 Short Term disability Revenues Short Term Disability Revenues represents the resources collected solely from employees participating in the City’s short term disability plan – no City (i.e., employer) contributions are made for short term disability coverage. The Fy 2010/11 revenue budget is $320,000 and is consistent with the prior year end revenue forecast. Short-Term disability Revenues Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $0.32 $0.32* 2009/10 $0.32 $0.32* 2008/09 $0.32 $0.35 2007/08 $0.31 $0.33 2006/07 $0.14 $0.30 Transfers-In Cash Transfers-In may be used to address unanticipated claim costs. In the adopted Fy 2010/11 budget no cash transfers-in are planned to the healthcare Self-Insurance Fund. BudGeT BY Fund hEALThCARE SELF-INSuRANCE FuND ExPENDITuRES B healthcare Self-Insurance Fund Fund Purpose The healthcare Self-Insurance Fund is used to account for the City’s self-insured medical and dental benefits. Revenue to this fund is derived from charges to user programs. This fund provides payment of actual healthcare expenses (medical, prescriptions and dental) and short term disability claims as well as claims administration and other benefit plan expenses. healthcare Self-Insurance Fund expenditures By Category The direct operating expenditures of the healthcare Self-Insurance Fund are divided into the following four major expenditure categories plus transfers-out: Personal Services Personal Services include the salaries and wages paid to employees, plus the City’s contribution for fringe benefits such as retirement, social security, health, and workers’ compensation insurance. The adopted budget of approximately $0.6 million represents approximately 2 percent of the Fy 2010/11 healthcare Self-Insurance Fund total operating budget. Personnel Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.6 $0.6* 2009/10 $0.3 $0.3* 2008/09 –– $0.3 2007/08 –– –– 2006/07 –– –– Contractual Services Contractual Services include expenditures for services performed by firms, individuals, or other City departments. The budget of $25.3 million represents approximately 97 percent of the Fy 2010/11 healthcare Self-Insurance Fund operating budget. The contractual services budget includes $23.2 million for healthcare claims and administration and $0.2 million for shortterm disability claims. Contractual Services Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $25.3 $25.3* 2009/10 $24.5 $24.1* 2008/09 $26.8 $24.5 2007/08 $24.9 $18.3 2006/07 $22.0 $20.9 Commodities Commodities include supplies, repair and replacement parts, small tools, and maintenance and repair materials that are not of a capital nature. The adopted Fy 2010/11 commodities budget of approximately $27,000 is consistent with the adopted Fy 2009/10 budget. Commodities Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.03 $0.03* 2009/10 $0.03 $0.03* 2008/09 –– $0.1 2007/08 –– –– 2006/07 –– –– 138 BudGeT BY Fund Capital outlay Capital Outlay includes the purchase of land, the purchase or construction of buildings, structures, and facilities of all types, plus machinery and equipment. To qualify as capital outlay, an item must have an estimated useful life of more than two years, typically have a unit cost of $5,000 or more, and be a betterment or improvement. The capital outlay budget for Fy 2010/11 is $50,000. hEALThCARE SELF-INSuRANCE FuND ExPENDITuRES B Capital outlay Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $0.05 0.05* 2009/10 $0.05 0.05* 2008/09 –– –– 2007/08 –– –– 2006/07 –– –– Transfers-out Cash Transfers-Out is the authorized movement of cash to other funds, divisions, departments, and capital projects. In the adopted Fy 2010/11 budget no cash transfers-in are planned to the healthcare Self-Insurance Fund. 139 healthcare Self-Insurance Fund Balance The healthcare Self-Insurance Fund balance is maintained to provide for coverage of self-insured benefits. The required fund balance is actuarially determined on an annual basis. Reserves held in the Self Insurance Fund have grown to $8.1 million as of June 30, 2009, an increase of nearly $2 million in the past four years. Based on a review of reserve levels it has been determined that the reserve can safely be drawn down by approximately $4 million. This will be accomplished by not charging medical and dental plan premiums to the City and employees for certain pay periods during Fy 2010/11. The projected Fy 2010/11 total ending fund balance is approximately $5.2 million, which is a decrease of $3.8 million from the Fy 2009/10 year end forecast and is within actuarial recommendations. City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 140 BudGeT BY Fund B TRuST FuNDS SuMMARy Actual 2008/09 Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 Source of Funds: Beginning Fund Balance: Operating Contingency (A) Mayor's Committee for Employment of the Handicapped Total Beginning Fund Balance 10,000 4,121 4,121 10,000 2,921 2,921 10,000 2,921 2,921 10,000 3,521 3,521 Revenues: Mayor's Committee for Employment of the Handicapped Subtotal 5,400 5,400 8,800 8,800 6,000 6,000 6,000 6,000 5,400 8,800 6,000 6,000 6,600 6,600 8,882 8,882 5,400 5,400 9,500 9,500 6,600 8,882 5,400 9,500 10,000 2,921 2,921 10,000 2,839 2,839 10,000 3,521 3,521 10,000 21 21 Total Revenues Use of Funds: Expenditures: Mayor's Committee for Employment of the Handicapped Subtotal 141 Total Expenditures Ending Fund Balance Operating Contingency (A) Mayor's Committee for Employment of the Handicapped Total Ending Fund Balance (A) The Operating Contingency for the Trust Fund is an unfunded contingency that allows for the expenditure of unanticipated revenues and is not included in the beginning or ending fund balance. Any use of this unfunded contingency requires City Council's approval. BudGeT BY Fund B TRuST FuNDS FIVE-yEAR PLAN Adopted 2010/11 Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 Source of Funds: Beginning Fund Balance: Operating Contingency (A) Mayor's Committee for Employment of the Handicapped Total Beginning Fund Balance 10,000 3,521 3,521 10,000 21 21 10,000 - 10,000 - 10,000 - Revenues: Mayor's Committee for Employment of the Handicapped Subtotal 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 9,500 9,500 6,021 6,021 6,000 6,000 6,000 6,000 6,000 6,000 9,500 6,021 6,000 6,000 6,000 10,000 21 21 10,000 - 10,000 - 10,000 - 10,000 - Total Revenues Use of Funds: Expenditures: Mayor's Committee for Employment of the Handicapped Subtotal Total Expenditures Ending Fund Balance (A) Operating Contingency Mayor's Committee for Employment of the Handicapped Total Ending Fund Balance (A) The Operating Contingency for the Trust Fund is an unfunded contingency that allows for the expenditure of unanticipated revenues and is not included in the beginning or ending fund balance. Any use of this unfunded contingency requires City Council's approval. 142 BudGeT BY Fund TRuST FuNDS REVENuES & ExPENDITuRES B description This fund is used to account for assets “held in trust” by the City. The City holds the funds in a trustee capacity as defined by the governmental Accounting Standards Board (gASB) Statement No. 34. All funds not expended in the current fiscal year are carried over to the next fiscal year to continue funding the intended purpose. The City maintains the following Trust Fund: Mayor’s Committee for employment of the handicapped Fund Purpose used to account for proceeds for programs and activities to promote employment of handicapped individuals. The Fy 2010/11 adopted budget for this trust fund is $6,000 and will be distributed to individuals in accordance with the program guidelines. Trust Fund Balance All balances not expended in the current fiscal year are carried over to the next fiscal year to continue funding for the intended purpose. 143 City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 144 BudGeT BY Fund 145 B gRANTS FuND SuMMARy Subtotal Grants: FY 2010/11 Adopted Budget 2,291,263 1,159,838 6,642,546 3,084 25,000 207,000 131,324 535,190 12,500 35,800 135,228 10,000 14,000 10,712 486 15,500 3,000 5,000 56,000 100,000 10,000 15,000 40,000 60,000 160,000 1,000 5,000 11,684,471 Future Grant Description Community Services: 12% Revenue Sharing Salt River Pima Maricopa Indian Community Community Services: 12% Revenue Sharing Gila River Indian Community Community Services: 12% Revenue Sharing Fort McDowell Fire: Emergency Operations Center Fire: Terrorism Liaison Officer Sustainment Fire: Urban Areas Security Initiative, Ballistic Engineered Armored Response Vehicle Police: Justice Assistance Grant Police: Government Office of Highway Safety: Click It or Ticket It Police: Government Office of Highway Safety Plan Grant Police: Arizona Automobile Theft Authority Public Awareness Grant Police: Arizona Criminal Justice Commission Full Service Forensic Crime Lab Police: Arizona Criminal Justice Commission Coverdell Formula Police: Arizona Criminal Justice Commission DNA Capacity Enhancement Police: Governor's Office of Highway Safety Equipment Police: General Grants Library: Arizona Library Services & Technology Act (LSTA) Technology Grant Library: Arizona Library Services & Technology Act (LSTA) Digitization Grant Library: Arizona Library Services & Technology Act (LSTA) Programming Grant Other Future Grants Citywide Subtotal Grants: FY 2010/11 Adopted Budget 800,000 50,000 100,000 600,000 30,000 300,000 100,000 50,000 50,000 12,000 132,000 15,000 30,000 50,000 550,000 20,000 30,000 30,000 10,410,176 13,359,176 Total Grants: 25,043,647 Grant Description CDBG HOME Section 8 ARRA Byrne JAG - Court Auto-Dialer ARRA CDBG-R Admin & Planning ARRA Energy Community Audit Rebate Program ARRA Energy Citywide Audit Program ARRA Energy Streetlight Replacements Library State Grant In Aid Preserve America Police DEA Task Force Police Click It or Ticket It Police DNA Backlog Reduction Program Partners for Paiute Neighborhood Center Playground COS Awarded Grants Can-Do-Fund Library Community Baby Showers Library Services to the Hispanic Community Police Arizona Criminal Justice Commission Full Service Crime Lab Cycle 10 Gila River Indian Community Ryan House 2008/09 12% Revenue Sharing Gila River Indian Community 2006/07 12% Revenue Sharing Salt River Pima Indian Community 2007/08 12% Revenue Sharing Salt River Pima Indian Community 2008/09 12% Revenue Sharing Salt River Pima Indian Community 2009/10 12% Revenue Sharing Salt River Pima Indian Community 2009/10 12% Revenue Sharing Fort McDowell Indian Community 2007/08 12% Revenue Sharing Pascau Yaqui Tribe BudGeT BY Fund gRANTS FuND REVENuES B Grant Fund Fund Purpose This fund receives and expends the City’s federal, state, and local grant revenues. The amount of grants received is generally based upon application to granting agencies by the City and through entitlement grants, contingent upon availability of funding by the grantors. grant revenues may be used only for the stated purpose in the approved grant agreement and are subject to grantor expenditure guidelines and audits. The City will only expend grant funds that have been appropriately awarded by the granting agency and accepted in accordance with the City’s grant policy. The City aggressively seeks grant funding to leverage City funds to address priority program and service needs. The major areas of the grant revenue budget are noted below: CdBG and Section 8 housing Community Development Block grant (CDBg) and housing Choice Voucher funds are awarded annually by the u.S. Department of housing and urban Development (huD) through entitlement grants, based on formula allocations. These grant revenues may only be used for those projects specifically approved in the funding agreement meeting applicable federal regulations and are subject to agency expenditure guidelines and audits. Staff estimates the CDBg and housing Choice Voucher allocations and prior year’s carryover for Fy 2010/11 to be $2.3 million and $6.6 million respectively for a total of $8.9 million. CdBG and Section 8 housing Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $8.9 $8.9* 2009/10 $9.5 $9.5* 2008/09 $7.2 $6.8 2007/08 $7.5 $7.5 2006/07 $7.7 $7.7 hoMe funds hOME funds are received through the Maricopa County home Consortium. Staff estimates the hOME allocation and prior year’s carryover for Fy 2010/11 to total $1.2 million. hoMe Grants Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $1.2 $1.2* 2009/10 $1.0 $1.0* 2008/09 $0.6 $0.2 2007/08 $0.6 $0.2 2006/07 $0.4 $0.4 146 BudGeT BY Fund Miscellaneous Federal, State and local Grants Miscellaneous Federal, State and Local grants include grants for law enforcement, fire services, community services, transportation, preservation projects and future grants contingency. The budget for these grants is estimated to total $14.9 million for Fy 20010/11. 147 gRANTS FuND REVENuES B Miscellaneous Federal & State Grants Revenue Adopted Budget to Actual/Forecast* (in millions) ACTuAL/ ADOPTED BuDgET FORECAST* FISCAL yEAR 2010/11 $14.9 $14.9* 2009/10 $14.6 $14.6* 2008/09 1.5 $1.8 2007/08 $11.3 $1.4 2006/07 $12.2 $2.2 BudGeT BY Fund gRANTS FuND ExPENDITuRES B Community development Block Grants and Section 8 housing Community Development Block grants (CDBg) and housing Choice Voucher funds are used for social and housing services for the elderly, disabled and low-income families. The Fy 2010/11 combined adopted budget is $8.9 million, reflecting a decrease of $0.6 million from the Fy 2009/10 adopted budget. CdBG and Section 8 housing Grant expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $8.9 $8.9* 2009/10 $9.5 $9.5* 2008/09 $7.2 $7.2 2007/08 $7.5 $6.6 2006/07 $7.7 $7.7 hoMe funds hOME funds are used to provide affordable housing, expand the capacity of non-profit housing providers, strengthen the ability of local governments to provide housing, and leverage private-sector participation in housing. The Fy 2010/11 adopted budget is $1.2 million, reflecting an increase of $0.2 million from the adopted Fy 2009/10 budget. hoMe Grant expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $1.2 $1.2* 2009/10 $1.0 $1.0* 2008/09 $0.6 $0.2 2007/08 $0.6 $0.2 2006/07 $0.4 $0.4 Miscellaneous Federal, State & local Grants Miscellaneous Federal, State & Local grants are typically used for the purchase of equipment and services related to the law enforcement, fire services, community services, transportation, preservation projects and future grants contingency. The Fy 2010/11 adopted budget of $14.9 million reflects an increase of $0.3 million from the Fy 2009/10 budget. Miscellaneous Federal & State Grant expenditures Adopted Budget to Actual/Approved* (in millions) ACTuAL/ ADOPTED BuDgET APPROVED* FISCAL yEAR 2010/11 $14.9 $14.9* 2009/10 $14.6 $14.6* 2008/09 $11.5 $1.6 2007/08 $11.3 $1.5 2006/07 $12.2 $1.9 148 BudGeT BY Fund B CIP FuNDS SuMMARy Actual 2008/09 Adopted 2009/10 Forecast 2009/10 Adopted 2010/11 Source of Funds: Beginning Fund Balance 149 76,184.3 179,672.7 296,006.8 50,800.0 - 50,800.0 17,000.0 58,000.0 20,000.0 200,000.0 - 3,973.3 16,794.8 9,409.4 10,055.0 471.8 40,704.3 6,667.0 9,025.4 21,057.3 30.0 50.0 33,402.1 5,099.2 126,131.0 3,172.6 17,100.0 16,217.2 37.0 3,900.0 3,574.7 75.0 189,876.5 3,410.0 50,184.9 25,208.7 37.0 21,284.0 2,006.8 302,131.4 Transfers In General Fund Transportation Fund Preservation Privilege Tax Funds Bed Tax GO Bond Special Programs Fund Aviation Fund Water & Sewer Fund Solid Waste Fund Fleet Fund Internal Service Funds Subtotals 12,790.4 15,393.8 11,024.1 60,041.1 559.5 998.7 114,470.9 471.1 30.1 215,779.5 10,550.0 7,242.2 10,610.0 2,123.2 258.1 72,240.3 1,131.6 41.4 12.2 104,209.0 11,702.8 7,529.1 10,000.0 2,120.0 245.3 45,552.8 1,131.6 763.3 12.2 79,057.0 2,239.2 7,707.0 1,588.7 1,584.2 47,062.0 1,469.4 31.2 10.2 61,691.9 Total Revenues & Transfers In 256,483.8 230,339.9 268,933.5 363,823.4 530,212.0 306,524.2 448,606.3 659,830.1 52,439.6 11,458.2 6,292.4 21,874.5 12,983.2 55,471.0 71,438.5 231,957.6 50,149.7 142,381.0 30,560.4 23,690.9 34,643.0 121,330.3 166,673.9 569,429.2 19,313.2 2,562.4 1,679.2 4,591.6 32,918.0 31,007.7 35,080.5 127,152.6 37,742.6 208,232.7 44,625.4 20,597.1 18,354.9 167,610.6 180,506.5 677,669.8 Revenues: Bonds/Contracts Bond Proceeds General Obligation General Obligation Preserve Municipal Properties Corporation Municipal Properties Corporation-Water Municipal Properties Corporation-Sewer Certificates of Participation Pay-As-You-Go Water & Sewer Development Fees Regional Transportation Sales Tax (Prop 400) Grants Intergovernmental In-Lieu Fees Other Contributions Interest Earnings Miscellaneous Subtotals Total Sources of Funds 273,728.1 - Use of Funds: Program Expenditures Community Facilities Preservation Drainage & Flood Control Public Safety Service Facilities Transportation Water Management (A) Prior Year Unexpended Subtotal Less: Estimated Capital Improvement Expenditures (35%) Subtotal: Unexpended at Year End (65%) (199,300.2) (237,184.4) 370,129.0 440,485.4 - - - T 306,524.2 448,606.3 50,149.7 19,313.2 30,560.4 23,690.9 FuNDS SuMMARy 34,643.0 1,679.2 32,918.0 569,429.2 35,080.5 127,152.6 659,830.1 U P D P S T W BudGeT BY Fund CIP S L S Transfers Out To CIP General Fund To Operating General Fund To Fleet Capital Project Fund To General CIP Fund - Bond Exp Reimb To Transp Privilege Tax CIP Fund - Bond Exp Reimb G To CIP G Water & Sewer Funds To Transportation Fund M To Aviation CIP M To Water & Sewer Operating Funds M To Solid Waste Enterprise Fund C Subtotal P Actual 2008/09 21,035.1 46,293.3 13,747.8 33,529.2 2,121.6 1,622.8 150.6 73.0 118,581.6 Adopted 2009/10 76,184.3 9,000.0 -50,800.0 ---13,886.2 22,886.2 Forecast 2009/10 179,672.7 9,000.0 1,352.8 -50,800.0 --15,094.2 20,000.0 25,447.0 208,232.7 44,625.4 20,597.1 18,354.9 167,610.6 180,506.5 677,669.8 B Adopted ( 2010/11 3,571.8 --249.0 -15,689.3 -19,510.1 6,667.0 3,172.6 3,410.0 Total Use of Funds 350,539.2 222,186.5 152,599.5 256,694.5 R 9,025.4 17,100.0 50,184.9 Liabilities G with No Related Revenue/Expenditure 21,057.3 16,217.2 25,208.7 I Fund Balance 30.0 Ending (B) I 50.0 37.0 37.0 Capital Grant Contingency 40,000.0 32,599.5 5,000.0 O Airport Grant Contingency (B) 33,402.1 3,900.0 21,284.0 Capital 5,500.0 5,500.0 5,500.0 (B) I 5,099.2 3,574.7 Capital Water Contingency 10,000.0 10,000.0 10,000.0 M 2010 Contingency -75.0 Bond 10,000.0 S 126,131.0 189,876.5 302,131.4 Reserved: T Capital General Contingency (C) 2,625.2 10,000.0 9,011.7 4,500.0 10,550.0 11,702.8 2,239.2 Reserved Fund Balance 177,047.5 18,837.8 238,895.6 368,135.6 T Ending Fund Balance 7,242.2 7,529.1 7,707.0 Total 179,672.7 84,337.8 296,006.8 403,135.6 P 10,610.0 (A) Prior year unexpended sources and uses of funds are estimated and included in Beginning Fund Balance (Sources) or by program (Uses). Prior year B unexpended uses are estimated at 65% of prior year budget. G (B) S Capital Grant Contingency, Capital Airport Grant Contingency and Capital Water Contingency are unfunded that allow for the expenditure 2,123.2contingencies 2,120.0 1,588.7 of unanticipated revenues and is not included in the beginning or ending fund balance. City Council A 258.1 245.3 1,584.2 approval is required before making expenditures from capital contingencies. W 45,552.8 47,062.0 1,131.6 1,469.4 (C) S The unused portion of the FY 2009/10 Capital Contingency will carry forward in the five year CIP financial plan up to $4.5 1,131.6 million. 41.4 763.3 31.2 TheFannual $4.5 million Capital Contingency in 2011/12 to FY 2014/15 is used for planning purposes and does not represent additional I 10.2 cumulative funding of $18.0 million (i.e. 4 yrs x $4.5 million). Only the portion of the contingency amount used and replenished 12.2 104,209.0 79,057.0 in a fiscal year is considered contingency funding. T U 50,149.7 142,381.0 D 37,742.6 208,232.7 1,679.2 23,690.9 20,597.1 121,330.3 167,610.6 S W - - - - - - S 150 BudGeT BY Fund B CIP FuNDS FIVE-yEAR PLAN Adopted 2010/11 Forecast 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15 Source of Funds: Beginning Fund Balance 296,006.8 403,135.6 200,000.0 - 6,525.0 - 3,410.0 50,184.9 25,208.7 37.0 21,284.0 2,006.8 302,131.4 5,507.6 5,800.0 4,843.2 37.0 25,412.4 2,055.1 50,180.3 7,370.1 13,000.0 3,245.0 37.0 8,167.4 2,426.7 34,246.2 9,046.9 2,100.0 37.0 2,669.4 13,853.3 11,238.6 300.0 37.0 18,300.0 2,977.0 32,852.6 Transfers In General Fund Transportation Fund Preservation Privilege Tax Funds Bed Tax GO Bond Special Programs Fund Aviation Fund Water & Sewer Fund Solid Waste Fund Fleet Fund Internal Service Funds Subtotals 2,239.2 7,707.0 1,588.7 1,584.2 47,062.0 1,469.4 31.2 10.2 61,691.9 2,247.6 7,824.6 1,060.0 214.1 38,044.7 488.6 29.0 8.3 49,917.0 2,421.7 7,998.6 33.5 482.8 32,689.6 317.2 21.4 6.1 43,970.9 2,525.0 8,199.5 60.0 6.2 33,753.5 15.8 21.4 6.3 44,587.6 2,628.2 8,453.6 70.0 8.7 35,240.4 21.3 21.4 6.0 46,449.5 Total Revenues & Transfers In 363,823.4 100,097.3 78,217.1 58,440.9 79,302.1 659,830.1 503,232.9 385,119.1 285,831.7 242,710.3 37,742.6 208,232.7 44,625.4 20,597.1 18,354.9 167,610.6 180,506.5 677,669.8 600.0 2,700.0 11,270.2 722.8 3,897.4 31,320.4 21,385.0 440,485.4 512,381.2 50.0 8,247.4 623.8 2,940.2 34,146.6 23,925.0 333,047.8 402,980.8 50.0 80.0 747.0 3,384.4 14,095.0 23,400.0 261,937.5 303,693.9 50.0 80.0 970.2 5,035.1 6,575.0 33,900.0 197,401.0 244,011.3 (237,184.4) (179,333.4) (141,043.3) (106,292.9) (85,404.0) 440,485.4 333,047.8 261,937.5 197,401.0 158,607.4 691.0 - 252.2 - Revenues: Bonds/Contracts Bond Proceeds General Obligation General Obligation Preserve Municipal Properties Corporation Municipal Properties Corporation-Water Municipal Properties Corporation-Sewer Certificates of Participation Pay-As-You-Go Water & Sewer Development Fees Regional Transportation Sales Tax (Prop 400) Grants Intergovernmental In-Lieu Fees Other Contributions Interest Earnings Miscellaneous Subtotals 151 Total Sources of Funds 306,902.0 - 227,390.8 - 163,408.2 - Use of Funds: Program Expenditures Community Facilities Preservation Drainage & Flood Control Public Safety Service Facilities Transportation Water Management Prior Year Unexpended (A) Subtotal Less: Estimated Capital Improvement Expenditures (35% Subtotal: Unexpended at Year End (65%) T T T T T T T CIP - - - S 43,970.9 T 100,097.3 T 44,587.6 46,449.5 58,440.9 79,302.1 50.0 - 50.0 80.0 970.2 5,035.1 6,575.0 33,900.0 197,401.0 503,232.9 U 600.0 BudGeT BY Fund P D P S T W P S CIP FuNDS 722.8 PLAN FIVE-yEAR3,897.4 31,320.4 21,385.0 440,485.4 512,381.2 Forecast (179,333.4) 2011/12 333,047.8 402,980.8 Forecast (141,043.3) 2012/13 333,047.8 261,937.5 403,135.6 691.0 ---6,525.0 -16,306.5 -- 306,902.0 252.2 -----16,432.9 -16,685.1 7,370.1 157,728.3 13,000.0 3,245.0 - 5,000.0 5,500.0 10,000.0 10,000.0 16,997.5 5,507.6 196,330.9 5,800.0 4,843.2 37.0 5,000.0 25,412.4 2,055.1 -50,180.3 4,500.0 368,135.6 403,135.6 4,500.0 2,247.6 297,402.0 7,824.6 306,902.0 - Adopted 2010/11 L S S Transfers Out To CIP General Fund To Operating General Fund To Fleet Capital Project Fund To General CIP Fund - Bond Exp Reimb G To Transp Privilege Tax CIP Fund - Bond Exp Reimb G Water & Sewer Funds To CIP M To Transportation Fund M To Aviation CIP M To Water & Sewer Operating Funds C Waste Enterprise Fund To Solid P Subtotal Total Use R of Funds G with No Related Revenue/Expenditure Liabilities I Ending I Fund Balance (B) Capital O Grant Contingency (B) Capital Airport Grant Contingency I (B) Capital M Water Contingency Bond S 2010 Contingency Reserved: T Capital General Contingency (C) TReserved Fund Balance Total P Ending Fund Balance 50.0 8,247.4 623.8 2,940.2 3,571.8 249.0 15,689.3 19,510.1 256,694.5 - 747.0 3,384.4 14,095.0 23,400.0 261,937.5 Forecast 2013/14 B Forecast 2014/15 -----16,130.7 -- -----16,434.7 -- 5,000.0 8,167.4 2,426.7 -34,246.2 16,130.7 9,046.9 122,423.5 2,100.0 37.0 5,000.0 2,669.4 -- 16,434.7 11,238.6 101,838.7 300.0 37.0 5,000.0 18,300.0 2,977.0 -- 4,500.0 2,421.7 217,890.8 7,998.6 227,390.8 - 4,500.0 2,525.0 153,908.2 8,199.5 163,408.2 - 4,500.0 2,628.2 131,371.7 8,453.6 140,871.7 - (A) BPrior year unexpended sources and uses of funds are estimated and included in Beginning Fund Balance -(Sources) or by program (Uses). Prior year - unexpended uses- are estimated at 65% of prior year budget. G - S 1,060.0 33.5 60.0 70.0 32,689.6 S 488.6 317.2 (C) The unused portion of the FY 2009/10 Capital Contingency will carry forward in the five year CIP financial plan up to $4.5 million. F 29.0 The not represent additional I annual $4.5 million Capital Contingency in 2011/12 to FY 2014/15 is used for planning purposes and does8.3 6.1 cumulative funding of $18.0 million (i.e. 4 yrs x $4.5 million). Only the portion of the contingency amount used and replenished S 43,970.9 33,753.5 15.8 21.4 6.3 44,587.6 35,240.4 (B) Capital Grant Contingency, Capital Airport Grant Contingency and Capital Water Contingency are unfunded contingencies that allow for the expenditure of unanticipated A 214.1 482.8 6.2 8.7 revenues and is not included in the beginning or ending fund balance. City Council W is required before making expenditures from capital contingencies. approval in a fiscal year is considered contingency funding. T 100,097.3 58,440.9 T 21.4 6.0 46,449.5 79,302.1 242,710.3 50.0 P D P S T W P S - S T T T T T T T T - 722.8 3,897.4 623.8 747.0 3,384.4 970.2 440,485.4 512,381.2 333,047.8 261,937.5 197,401.0 (179,333.4) (141,043.3) (106,292.9) 333,047.8 CIP - 691.0 - 252.2 - - - 152 BudGeT BY Fund B TOTAL APPROPRIATION Special Revenue General Debt Service Internal Service Enterprise Trusts Capital Total Source of Funds: Beginning Fund Balance/Reserve 153 Revenues Taxes - Local Privilege Tax (1.0%) Privilege Tax - Transportation (.20%) Privilege Tax - McDowell Preserve (.20%) Privilege Tax - Preservation (.15%) Privilege Tax - Public Safety (.10%) Property Tax Transient Occupancy Tax Light & Power Franchise Cable TV Salt River Project Lieu Tax Stormwater Water Quality Charge Taxes - From Other Agencies State Shared Sales Tax State Revenue Sharing AZ STA/MCSD Revenue Transportation Highway User Revenue Tax Auto Lieu Tax Proposition 400 Regional Sales Tax Internal Service Charges Fleet Management Self-Insurance Licenses, Permits & Fees Building Permit Fees & Charges Fire Service Charges Business Licenses & Fees Recreation Fees WestWorld Fines & Forfeitures Court Fines Parking Fines Photo Enforcement Library Fines & Fees Interest Earnings/Property Rental Interest Earnings Property Rental Utilities & Enterprises Water Charges Effluent Sales Sewer Charges Refuse/Recycling Airport Other Revenue In-Lieu Fees Grant & Trust Streetlight Districts Special Assessments Miscellaneous 30-Day Tow Program Capital Improvement Plan Cost Allocation Reimbursements Intergovernmental Revenue In-Lieu Property Tax Franchise Fee Indirect/Direct Cost Allocation Special Programs Revenue Bond Proceeds Spring Exhibition Surcharge CIP Unexpended Year End Less Internal Service Funds Offset Subtotal Cash Transfers In Operating Transfers From General Fund From Special Revenue Funds From Enterprise Funds From Internal Service Funds From Capital Improvement Fund From Capital Improvement Fund - Operating Project Subtotal Other Activity Reserve Appropriations Operating Contingency / Reserves Solid Waste Aviation Self-Insurance Water/Sewer Subtotal Total Sources $ 37,186,112 $ 21,773,080 $ 15,739,088 $ 62,767,369 $ 33,270,679 $ 3,521 $ 296,006,800 80,514,720 37,910,300 750,000 17,611,632 22,845,634 17,611,632 22,845,634 337,144 337,144 13,814,970 8,156,740 300,000 50,184,900 14,067,695 27,572,529 3,410,000 7,277,439 425,000 1,756,727 322,000 234,680 970,332 498,623 2,006,800 6,000 37,000 25,208,700 839,884 20,000 17,853,487 200,000 21,284,000 819,926 6,765,825 200,000,000 145,000 440,485,400 82,072,605 39,232,328 7,043,926 7,433,088 26,310,745 454,438 380,063 3,571,800 4,026,238 249,000 7,672,989 28,688,646 11,910,176 173,050,411 (35,698,232) 7,390,615 6,000 742,616,800 2,239,230 9,295,741 50,115,532 41,400 15,689,290 33,743,833 15,689,290 - - 61,691,903 10,000 35,000,000 11,910,176 101,655,770 72,976,161 16,716,244 35,606,486 50,950,033 41,400 15,689,290 3,820,800 122,824,253 17,058,835 26,561,354 5,750,000 10,000 35,000,000 215,301,055 13,140,615 16,000 839,308,703 1,514,301,920 5,750,000 28,688,646 37,000 41,843,171 574,387 839,884 39,857,487 430,000 1,681,488 405,000 850,584 1,752,180 6,813,584 12,742,338 6,765,825 200,000,000 145,000 440,485,400 (35,698,232) 1,283,557,491 75,608,822 5,066,241 4,436,278 5,750,000 17,058,835 107,920,176 5,066,241 4,436,278 271,903,616 4,669,391 2,776,170 97,153,098 880,541 33,683,178 19,409,471 3,100,304 16,628,471 574,387 239,188,732 11,630,000 644,641 1,709,167 3,360,000 2,610,500 7,277,439 425,000 1,756,727 322,000 97,153,098 880,541 33,683,178 19,409,471 3,100,304 500,000 430,000 861,562 405,000 850,584 1,752,180 6,813,584 12,742,338 13,814,970 8,156,740 50,484,900 14,067,695 27,572,529 8,220,000 644,641 1,709,167 3,360,000 2,610,500 958,956 2,776,170 466,746,649 80,514,720 15,217,282 15,619,856 12,077,208 7,809,928 63,373,973 10,591,667 8,200,000 3,300,000 140,000 888,890 15,217,282 15,619,856 12,077,208 7,809,928 24,713,673 10,591,667 8,200,000 3,300,000 140,000 888,890 $ BudGeT BY Fund B TOTAL APPROPRIATION Special Revenue General Debt Service Enterprise Internal Service Trusts Capital Total Use of Funds: Divisions City Clerk City Attorney City Auditor City Court Scottsdale City Council City Manager Community Services Public Safety - Police Public Safety - Fire Public Works Water Resources Planning, Neighborhoods, & Transportation Finance and Accounting Human Resources Information Technology Economic Vitality Administrative Services Leave Accrual Payments Estimated Personnel Savings from Vacant Positions Bed Tax Encumbrance Indirect/Direct Cost Allocation Less Internal Service Fund Offsets Subtotal Grant and Trust Activity Grants Trust and Special Districts Subtotal Capital Improvements Community Facilities Preservation Neighborhood Drainage and Flood Control Public Safety Service Facilities Transportation Improvements Water and Wastewater Subtotal Debt Service General Obligation Bonds General Obligation Bonds-Preserve Preserve Authority Revenue Bonds Revenue Bonds MPC Bonds Special Assessment Bonds Certificates of Participation Certificates of Participation - Radio Financiing Contracts Payable Subtotal Other Activity Reserve Appropriations Operating Contingency Solid Waste Aviation Self-Insurance Water/Sewer Subtotal Total Budget Cash Transfers Out Capital Improvement Program Operating Transfers To General Fund To Special Revenue Fund To Debt Service Fund To Enterprise Fund Enterprise Transfers In-Lieu Property Tax Franchise Fee Subtotal Total Uses 1,189,115 5,979,807 827,586 4,669,882 616,489 1,407,520 37,353,595 82,991,710 27,893,809 17,659,448 16,997,179 4,935,907 3,525,008 9,903,567 11,715,214 2,816,220 1,754,607 (3,000,000) 1,245,141 - - 1,189,115 5,979,807 827,586 6,033,072 616,489 1,407,520 39,689,973 84,852,104 27,893,809 63,639,145 65,354,670 29,185,962 15,579,212 29,467,677 9,903,567 18,816,819 2,816,220 1,851,044 (3,372,034) 1,245,141 12,742,339 (35,698,232) 380,021,005 9,500 9,500 - 14,633,471 583,887 15,217,358 1,363,190 2,336,378 1,860,394 14,935,409 15,659,117 65,354,670 15,385,171 3,405,003 7,238,302 25,937,669 12,188,783 5,000 5,371,983 1,729,622 43,100 (135,000) 53,337 (237,034) 12,742,339 230,481,804 - - 37,969,237 - 14,633,471 574,387 15,207,858 - - - 98,890,751 - - (35,698,232) 12,679,213 - - 37,742,600 208,232,700 44,625,400 20,597,100 18,354,900 167,610,600 180,506,500 677,669,800 - 37,910,300 19,609,640 6,701,105 7,878,257 839,884 918,790 511,800 3,066,770 4,497,360 956,375 956,375 28,688,646 11,910,176 72,939,186 5,467,088 22,590,917 28,058,005 - - - 10,000 35,000,000 17,058,835 26,561,354 5,750,000 10,000 35,000,000 153,510,110 18,429,213 19,500 712,669,800 1,287,279,265 50,569,970 41,400 5,750,000 28,688,646 11,910,176 66,043,646 2,239,230 9,295,741 7,043,926 7,433,088 26,310,745 16,716,244 35,606,486 101,650,132 Revenue Over/(Under) Expenditures (8,480,438) 28,705,674 62,146,341 3,571,800 249,000 15,689,290 3,571,800 7,672,989 33,743,833 15,689,290 - 19,510,090 1,752,180 6,813,584 131,390,017 19,500 732,179,890 1,418,669,282 380,063 280,384,054 Ending Fund Balance/Reserve 72,939,186 72,939,186 37,910,300 19,609,640 6,701,105 5,467,088 30,469,174 839,884 918,790 511,800 4,023,145 106,450,926 75,608,822 5,066,241 4,436,278 5,750,000 17,058,835 107,920,176 5,066,241 4,436,278 263,667,810 37,742,600 208,232,700 44,625,400 20,597,100 18,354,900 167,610,600 180,506,500 677,669,800 1,752,180 6,813,584 59,515,797 41,400 213,025,907 18,470,613 (3,500) 107,128,813 95,632,638 403,135,613 562,379,287 5,638 36,975 2,275,148 (5,329,998) 21,778,718 15,776,063 65,042,517 27,940,681 21 154 City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 155 City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 156 157 SuMMARY BY dIvISIon S MAyOR AND CITy COuNCIL Mayor & City Council The City Council shall enact local legislation, adopt budgets, determine policies and appoint charter officers as necessary and proper to serve Scottsdale citizens. These leadership responsibilities include establishing a mission, goals, programs, and policies to best serve the needs of Scottsdale. This Year 2009/2010 Highlights Balanced the budget without increasing taxes while dealing with a significant revenue shortfall. The Charter Review Task Force recommendations were accepted by the City Council and the voters approved charter revisions. The McDowell Road/South Scottsdale Economic Development Task Force report was accepted by the City Council. Priorities for 2010/2011 The City Council's priorities continue to be neighborhoods, environmental sustainability and preservation, transportation, the economy, public safety, fiscal and resource management, and open and responsive government. Continue to examine and adopt a fiscally sound budget that preserves the City's longterm fiscal stability. Continue to pursue policies that preserve and enhance the quality of life and economic prosperity for the Scottsdale community. Highlighted Changes Mayor and City Council support staff was consolidated under the City Clerk to reduce the number of staff while maintaining adequate service levels. Mayor & City Council 158 Mayor & City Council Mayor Support Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 12.00 APPROVED 2009/10 10.00 ADOPTED 2010/11 10.00 0.39 % CHANGE 09/10 TO 10/11 0.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 935,551 2,941 938,492 716,023 0 716,023 616,489 0 616,489 -99,534 0 -99,534 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 808,900 110,347 19,245 0 938,492 0 938,492 570,962 127,061 18,000 0 716,023 0 716,023 497,559 100,330 18,600 0 616,489 0 616,489 -73,403 -26,731 600 0 -99,534 0 -99,534 Funding Source General Fund Grants Fund Total Division Budget Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget 159 SuMMARY BY dIvISIon S CITy ATTORNEy City Attorney The City Attorney is the chief legal advisor of all offices, departments and agencies and of all officers and employees in matters relating to their official powers and duties, and serves at the pleasure of the City Council. The office litigates civil claims and lawsuits filed on behalf of or against the City of Scottsdale and provides clients with legal advice to assist in preventing or limiting legal risks. In addition, the office prosecutes misdemeanor offenses in the City, including DUI, domestic violence, juvenile status offenses, minor traffic and other misdemeanor offenses. In addition to police and victim cases, the office supports code enforcement, zoning, fire code, tax & license, airport and photo radar violations. The office represents the City in all court proceedings required to prosecute offenders and to support the mission and goals of the City Council. Through the Victim Services program, the office provides legally mandated victim notification services as well as victim advocacy for victims of misdemeanor crime in Scottsdale. This Year 2009/2010 Highlights 1. The City Attorney’s office believes that training City employees on legal matters relating to their job performance results in fewer legal errors and in reduced legal exposure for the City. Consequently the office conducted the following training: • Basic Real Estate training (12 hours) for City employees from Planning, CPM and other departments. • Civil citation and courtroom procedures for Fire Department employees. • Legal/legislative update training for 500 police officers and civilians. • Contract Academy training for thirty-three employees. • Council, Boards, and Commissions ethics training 2. City Attorney’s Office’s litigation included: • Collection of $168,356.56 during 2009 through revenue recovery. • Resolution of 47 lawsuits • Obtaining summary judgment and $63,891 in an attorney fees award in the Arts District (Loloma) case. 3. The City Attorney’s office involvement in major City projects included: • Revising City’s Streets, Floodplain, and Zoning ordinances. • Revising the Water Resources Department’s backflow and pretreatment code provisions. • Drafting, reviewing and/or revising over 140 contracts and preparation of over 70 resolutions and ordinances. • Interpreting and establishing purchasing and contracting procedures that address new statutes requiring E-Verify employment verification and the most recent immigration statute dealing with City contracts and public benefits. • Redrafting and updating the City’s standard purchasing contract templates. • Drafting a new water treatment agreement with Carefree Ranch Homesteads. • Negotiating a long term effluent sale agreement among the Sub-Regional Operating Group cities and Arizona Public Service. • Negotiating for the sale of Planet Ranch and the transfer of associated water rights. • Representing the City in complex telecommunication issues Bruce Washburn City Attorney 160 SuMMARY BY dIvISIon 161 4. Prosecution Highlights: • The City Prosecutor’s Office continued its efforts to maintain a strong cooperative t team atmosphere by working with other city departments within the Criminal Justice Team. This group includes members of the Court and Police Department. It is vital for efficiency and productivity that all members of the City work together to develop cooperation between these team members whose work so vitally affects one another. • In addition to its work in the Criminal Justice Team, the Prosecutor’s Office continued to work closely with other city departments such as Tax & License, Code Enforcement, Zoning and Fire. We also provide ongoing training for Police Officers. In addition, the office partnered closely with members of the Domestic Violence Team within the community to address issues that arise in these highly emotional and dangerous cases. The office works closely with Police, Probation and Victim Advocates to provide the safest environment possible and secure the best outcome for those involved. • Maintained 96 percent (or better) compliance with Supreme Court mandates regarding resolution of all DUI cases within 180 days of initial filing. All legally mandated time limits for motions and appeals were also met. • Several of the prosecutors were involved in community outreach throughout the year, traveling to school education and career fairs. Members of the office also participated in round table sessions with other legal professionals and as instructors and reviewers for training new prosecutors. CITy ATTORNEy • Implementation of a document management solution continued. Upon completion, the system will reduce paper dependency and allow for easier transfer of appropriate information between departments. 5. Victim Services Highlights: • Victim Advocates continue to make initial contact with all victims of domestic violence and DUI crimes. This outreach immediately assists victims and provides them with resources and education on the criminal justice process. • The Victim Services Department believes that community education is an integral part of prevention. The department focused on education specifically surrounding domestic violence and teen dating violence. A display at the Civic Center library as well as informal discussion groups in the Teen Center focused on education and the availability of help through national and local resources. These activities took place during Domestic Violence Awareness month. • Victim Services continues to work with members of Prosecution, Police, Police Crisis, City Court and various community agencies to meet the needs of victims in our community. City Attorney Civil Prosecution Victim Services S Priorities for 2010/2011 Continue to train City staff to prevent legal claims against the City. Additionally, at least one person in each City department will be trained to fully and promptly respond to Public Records Requests. • Continue revenue recovery efforts. • Continue to limit the use of outside counsel for civil legal matters. Prosecution's priorities include: • Continue resolving criminal matters in a competent and timely manner through effective prosecution processes. • Continue to show consistency and fairness to all participants in our court system. • Maintain open and effective communication to ensure an atmosphere of cooperation and teamwork with all or our city departments and team members. • Continue strong community outreach so citizens of Scottsdale feel comfortable and secure in the fact that the office represents the community in a fair and just manner. Strive to make victims feel safe and to make the community feel comfortable working with the Criminal Justice Team. Victim Services Priorities: • Continue to maintain the highest level of service for victims/citizens within an environment of consistently increasing workload. • Continue to meet legally mandated timelines for notification to victims. • Maintain relationships with our criminal justice partners to ensure seamless response to crime victims. • Increase community education by offering information on domestic violence and victims’ rights. SuMMARY BY dIvISIon Highlighted Changes By reassigning work responsibilities, City Attorney's Office will continue to maintain open positions for a Deputy City Attorney and an Assistant City Attorney saving $313,799. vironment, an increase in theft, assault and other victim crimes is evident. The prosecutor's office continues to strive to meet the needs of victims. With a reduction in staff and a steady flow of cases, the office works hard each day to maintain quality services and just results. City Attorney's office dedicated staff to administer citywide Public Records Requests City Attorney's office dedicated staff to administer citywide public records requests. Domestic Violence and DUI remain the two largest areas of prosecution. The number of cases in these areas is increasing as the legislature continues to increase penalties and law enforcement continues to improve their investigative skills. With the current economic en- S CITy ATTORNEy The office continued strong teamwork with the Police Department and City Court to assure quality is maintained while caseloads continue to increase. the economy and the increased needs of victims. As a result, victim education, case management, and referrals to resources continue to be a significant function of the division. Victim Services also has seen an increased need to provide services to walk-in citizens, specifically to supply resources and assist with orders of protection. By reassigning workload, Victim Services will maintain an open position for a part-time notification specialist, saving $24,122. Victim Advocacy services are increasing in importance as the number of domestic violence victims also continues to increase. There is a direct correlation between the downturn of 162 Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 61.75 APPROVED 2009/10 57.50 ADOPTED 2010/11 57.50 2.26 % CHANGE 09/10 TO 10/11 0.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 6,220,155 6,220,155 6,363,097 6,363,097 5,979,807 5,979,807 -383,290 -383,290 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 6,058,212 84,573 77,370 0 6,220,155 0 6,220,155 5,775,412 501,455 86,230 0 6,363,097 0 6,363,097 5,422,111 469,502 88,194 0 5,979,807 0 5,979,807 -353,301 -31,953 1,964 0 -383,290 0 -383,290 Funding Source General Fund Total Division Budget Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget SuMMARY BY dIvISIon S CITy ATTORNEy Performance Measures 163 ACTUAL 2008/09 Customer satisfaction level Very Good or Excellent (1) 94% Percentage of new lawsuits kept in-house. (2) 85% Amount of revenue recovery and tax appeals $241,500 Number of Code Enforcement Abatements obtained from the court (3) 79 Number of contracts / ordinances and resolutions drafted, 135/92 reviewed and/or revised Average number of new files created per attorney 54 Average number of criminal cases per prosecutor 1,488 Percentage of citations reviewed by Prosecutors prior to 1st court date 100% Percentage of cases resolved at 1st court appearance (4) 45% where defendant appeared Number of victims served 3066 Number of victim notifications sent 8469 Percentage of victims satisfied with services (5) 98% PROJECTED 2009/10 97% 92% $320,000 101 208/150 ESTIMATED 2010/11 97% 94% $350,000 120 210/155 57 1539 100% 42% 60 1569 100% 43% 2852 8146 99% 2909 8308 98% 1. Annual customer satisfaction survey sent this year to 236 individuals in various departments with144 respondents. 2. Lawsuits sent to outside counsel include those with a conflict of interest, those requiring specialized expertise and large cases requiring more resources than the City Attorney's office can provide. 3. An abatement order is court authority to abate a public nuisance. 4. Defendant must appear for case to be resolved. 5. Victim satisfaction survey sent with all case dispositions. City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 164 165 SuMMARY BY dIvISIon S CITy AuDITOR City Auditor The City Auditor conducts expanded scope audits to independently evaluate the operational efficiency and effectiveness, compliance and accountability of City departments, offices, boards, activities and agencies. The office conducts audits in accordance with generally accepted government auditing standards, which provide a framework for conducting high quality audits with competence, integrity, objectivity and independence. This Year 2009/2010 Highlights • Increased productivity by about 25 percent, with 16 audits/special reports completed scheduled for completion compared to 10 - 13 audits/special reports issued in each of the three previous years. • Identified $1.4 million in savings and/or revenue enhancements, while making 45 recommendations for improved controls and/or operational efficiencies or effectiveness. • Established an Audit Follow-up Program to provide quarterly reports on the status of audit recommendations issued during the past 5 years, which encompassed 467 recommendations. • Contributed approximately $40,000 in vacancy savings and about $5,000 in other cost savings for the City's FY 2009/10 budget. Priorities for 2010/2011 • Develop an audit plan addressing the accountability, risks, and economy, efficiency and effectiveness of City programs and activities. • Complete at least 90 percent of audits on the approved Audit Plan, which allows flexibility for unplanned changes or needs that may arise during the year. • Develop meaningful recommendations to help City divisions, departments, offices, boards, and agencies identify cost savings, revenue enhancements, and operational efficiencies. • Streamline and enhance internal processes to ensure efficient, effective and timely audits. Highlighted Changes • The FY 2010/11 budget does not change significantly from the prior year budget, continuing 7 FTE positions, office rent, internal City charges and a small amount of other expenses. City Auditor Internal Audit Program Sharron Walker City Auditor 166 SuMMARY BY dIvISIon S CITy AuDITOR Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 8.00 APPROVED 2009/10 7.00 ADOPTED 2010/11 7.00 0.27 % CHANGE 09/10 TO 10/11 0.00 ACTUAL 2008/09 996,880 996,880 APPROVED 2009/10 815,564 815,564 ADOPTED 2010/11 827,586 827,586 CHANGE 09/10 TO 10/11 12,022 12,022 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 769,662 147,449 8,603 71,166 996,880 0 996,880 704,032 108,532 3,000 0 815,564 0 815,564 718,450 106,886 2,250 0 827,586 0 827,586 14,418 -1,646 -750 0 12,022 0 12,022 ACTUAL 2008/09 13 87% N/A $454,000 PROJECTED 2009/10 16 94% 95% $1,400,000 ESTIMATED 2010/11 17 90% 95% $0 Funding Source General Fund Total Division Budget Expenditures By Type 167 Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget Performance Measures Number of audits and special reports issued Percent of audits completed on the approved Audit Plan Two year audit recommendation implementation rate Cost savings/revenue enhancements identified through audits City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 168 169 SuMMARY BY dIvISIon S CITy CLERK City Clerk The City Clerk conducts all local elections, gives notice of all Council meetings, keeps the record of Council proceedings, administers the City's Records Management Program, authenticates ordinances and resolutions, and provides administrative support to the Council. The Clerk’s Office prepares and distributes Council meeting agendas, produces Council meeting minutes, preserves the permanent records of the City, ensures that legal requirements for the publication of ordinances and resolutions are met, and accepts legal filings on behalf of the City of Scottsdale. This Year 2009/2010 Highlights • Prepared and posted approximately 1,200 legal notices, and completed 79 sets of Council meeting minutes. All statutory requirements for posting and providing meeting notices were met. • Submitted six propositions to the voters at a March 9, 2010 Special Election. Five propositions proposed changes to the City Charter relating to elections, and one proposition sought an increase in the City’s Transient Lodging Tax. Scottsdale voters approved all six propositions. • Trained and provided support to staff throughout the organization on the City’s digital recording system. Board and Commission staff digitally record meetings, enabling the public to access the recordings at no cost on the City’s website. Digital recordings reduce the need to produce detailed written minutes, saving money and staff time. • Generated a projected $50,000 in passport application processing revenue. • Assumed responsibility for: providing administrative support to the Council; maintaining the Agenda Planner; and, coordinating the City’s 42 boards, commissions, committees, and subcommittees. Priorities for 2010/2011 • Comply with the Open Meeting Law and City policies by: ensuring notices of all public meetings are posted at least 24 hours in advance; completing and posting marked agendas on the City’s website within three business days; posting approved minutes to the website within two business days; and posting recordings of Council meetings to the website within one business day. • Accept legal filings on behalf of the City and forward to the Attorney’s Office and appropriate staff the same day received. • Administer the 2010 Scottsdale General Election to ensure it is conducted fairly, impartially, and without challenge; ensure all registered voter households receive candidate and election information pamphlets prior to the start of early voting and in compliance with State law; and ensure all election information and results are made available to the candidates and public in a timely manner. • Continue efforts to improve efficiency and service delivery, while reducing costs. Highlighted Changes • The Clerk’s Office converted a position from a Mayor/Council Assistant to a Clerk Assistant, which resulted in a $40,000 reduction in salaries. • The Clerk's Office returned $97,000 at the end of FY 2009/10 as a result of cost savings efforts. Carolyn Jagger City Clerk City Clerk City Clerk Elections 170 SuMMARY BY dIvISIon S CITy CLERK Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 10.00 APPROVED 2009/10 10.00 ADOPTED 2010/11 10.00 0.39 % CHANGE 09/10 TO 10/11 0.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 1,156,255 1,156,255 1,212,987 1,212,987 1,189,115 1,189,115 -23,872 -23,872 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 899,697 249,641 6,917 0 1,156,255 0 1,156,255 792,012 414,500 6,475 0 1,212,987 0 1,212,987 738,693 443,947 6,475 0 1,189,115 0 1,189,115 -53,319 29,447 0 0 -23,872 0 -23,872 ACTUAL 2008/09 1158 71 1924 554 PROJECTED 2009/10 1300 80 2015 550 ESTIMATED 2010/11 1300 80 2000 550 1785 64 183 135991 166137 1919 92 108 143307 86982 1900 75 110 145000 174000 Funding Source General Fund Total Division Budget Expenditures By Type 171 Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget Performance Measures Number of Legal Postings Number of Minutes Prepared for City Council Number of Passport Applications Processed Number of Council Reports Collected, Reviewed, Distributed and Posted to the Web Number of Documents Scanned Number of Board and Commission Appointments Number of Board and Commission Applications Processed Number of Scottsdale Registered Voters Number of Publicity Pamphlets/Sample Ballots Mailed to Registered Voter Households City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 172 173 SuMMARY BY dIvISIon CITy COuRT S City Court Scottsdale City Court, a municipal court, is part of the integrated judicial system for Arizona, and is the judicial branch for the City of Scottsdale. Scottsdale City Court serves the community by providing a dignified professional forum for the efficient resolution of cases. The court hears civil traffic and misdemeanor violations, petty offenses, City ordinance and code violations, and the issuance of orders of protection and injunctions against harassment. This Year 2009/2010 Highlights • During FY 2009/10, court staff levels decreased six percent while criminal case filings increased five percent, civil traffic filings increased two percent, on site customer visits increased 12 percent, phone call volumes increased three percent and the number of jury trials increased 700 percent from the prior year. • Served on average day - more than 600 customers on site and more than 600 phone calls answered by staff. Scottsdale residents accounted for 37 percent of City Court cases; driving under influence (DUI) filings were the highest in Arizona, compared to other mid-size municipal courts. • Identified and implemented efficient workflow processes for civil correspondence with an automated queuing system wherein filed motions are moved electronically from staff to judge. • Focused on collections activities for current and delinquent outstanding balances through the: implementation of the Arizona Supreme Court FARE collection program, development of a new payment contracts module, and the development of the ARRA grant funded outbound call system. • Continued deployment of technology including electronic document management, automated accessibility and court processing, and the installation of hardware and software in each courtroom. Priorities for 2010/2011 • Establish Home Detention and Electronic Monitoring Program that allows non-violent DUI offenders to serve a portion of court ordered jail time in home detention with an electronic tracking system. • Emphasize Scottsdale City Court’s performance through external and internal reporting, enhanced performance measurement methods, timely statistics, and published reports. • Enhance external customer accessibility and service demands by improving processes and redeploying staff to meet critical needs as they are identified. City Court Court Monte Morgan Presiding Judge Highlighted Changes • Defer filling criminal judge and bailiff positions for period of two years resulting in an annual general fund savings of $224,403. • Implement electronic monitoring will result in an estimated general fund savings of $500,000. • Create and reinforce court order enforcement using staff, new processes, and technology deployment. 174 SuMMARY BY dIvISIon S CITy COuRT Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 66.38 APPROVED 2009/10 62.48 ADOPTED 2010/11 62.48 2.45 % CHANGE 09/10 TO 10/11 0.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 5,772,082 0 413,648 6,185,730 4,572,059 6,840 1,382,120 5,961,019 4,669,882 3,084 1,363,190 6,036,156 97,823 -3,756 -18,930 75,137 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 4,949,772 1,188,086 47,872 0 6,185,730 0 6,185,730 4,613,615 1,284,429 62,975 0 5,961,019 0 5,961,019 4,327,735 1,281,653 57,568 0 5,666,956 369,200 6,036,156 -285,880 -2,776 -5,407 0 -294,063 369,200 75,137 Funding Source General Fund Grants Fund Special Programs Fund Total Division Budget Expenditures By Type 175 Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget SuMMARY BY dIvISIon S CITy COuRT Performance Measures CourTools © 1: Access and Fairness Survey (1) CourTools © 2: Clearance Rates (2) CourTools © 3: Time to Disposition (3) CourTools © 4: Age of Active Pending Caseload (4) CourTools © 9: Court Employee Satisfaction (5) Total Cases filed per Judicial Officer (6) ACTUAL 2008/09 82% 128% 88% 95% 98% 11,664 PROJECTED 2009/10 N/A 105% 89% 96% 81% 12,786 ESTIMATED 2010/11 85% 105% 93% 97% 90% 13,041 The first five performance measures are CourTools © , developed by the National Center for State Courts, which are a set of ten trial court performance measures on court operations. Scottsdale City Court has begun to utilize some of these measures which are footnoted below to explain how they are compiled. The sixth measure is an internal work load statistic.The remaining five CourTools © will be implemented in FY 2010/11. 1. Court user ratings on court’s accessibility and treatment of customers in terms of fairness, equality, and respect. (Average Ratings shown) 2. Number of resolved charges as a percentage of the number of charges filed. 3. Percentage of cases (DUI cases measured) disposed or otherwise resolved within 180 days from date of filing; standard is 93 percent of cases resolved within 180 days of filing. 4. Age of active cases (DUI cases measured) pending before the court, measured as the number of days from filing to report date; standard is the age of all DUI cases (percentage shown) to be equal to or less than 180-days. 5. Survey results to gauge employee perspective on the quality of the work environment and relations between court staff and management. Number of responses and response rate was 24 or 39% for FY 2008/09, and 34 or 52% for FY 2009/10. (Average ratings shown) 6. Total number of cases filed per Judicial Officer annually for six operational courtrooms (4 criminal and 2 civil) 176 177 SuMMARY BY dIvISIon S CITy MANAgER City Manager The City Manager's Office provides the organizational leadership necessary to successfully implement the policy direction of the City Council, communicate that direction to the organization, ensure the efficient and effective delivery of City services to Scottsdale's citizens, and to build and maintain effective working relationships with other governments. This Year 2009/2010 Highlights • Worked with City Treasurer to transition financial operations and collaborated on budget development process. • Identified possible bond projects to support the City Council's decision-making process regarding a November 2010 bond election. • Staffed City Charter Task Force review process to aid the City Council in making decisions on sending amendments to voters. • Participated in national performance measurement effort for 17 service areas. • Revitalization district bill proposed by Scottsdale and introduced by Rep. Reagan signed by Gov. Brewer into law. Priorities for 2010/2011 • Maintain and enhance the economic and fiscal sustainability of the City while ensuring the City's strategic goals are accomplished. • Continue implementation of performance management program to aid in improved policy and management decision-making processes. • Ensure City Council meetings and decision-making processes are managed as effectively and efficiently as possible while maximizing public input opportunities. City Manager City Manager’s Office Government Relations Highlighted Changes • Reduced staffing level by one government relations position by contracting for some state lobbying services. • Funded an enhanced performance management program, including the addition of citizen and employee surveys to gain additional feedback on customer satisfaction with services. 178 David Richert City Manager SuMMARY BY dIvISIon S CITy MANAgER Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 9.00 APPROVED 2009/10 8.00 ADOPTED 2010/11 7.00 0.27 % CHANGE 09/10 TO 10/11 -1.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 2,240,840 2,240,840 1,609,862 1,609,862 1,407,520 1,407,520 -202,342 -202,342 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 2,428,465 -205,963 18,338 0 2,240,840 0 2,240,840 1,234,784 354,728 20,350 0 1,609,862 0 1,609,862 957,794 430,376 19,350 0 1,407,520 0 1,407,520 -276,990 75,648 -1,000 0 -202,342 0 -202,342 ACTUAL 2008/09 240,124 2,808 11.7 $83,509 $464,065,160 $1,933 PROJECTED 2009/10 242,337 2,538 10.5 $80,223 $425,040,874 $1,754 ESTIMATED 2010/11 243,501 2,546 10.5 $78,178 $416,766,246 $1,712 Funding Source General Fund Total Division Budget Expenditures By Type 179 Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget Performance Measures Population Estimate Citywide Full-Time Equivalents Citywide Full-Time Equivalents per 1000 residents Personnel Costs per Full-Time Equivalent Program Operating Budget (All Funds) Program Operating Budget expense per resident City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 180 181 SuMMARY BY dIvISIon S CITy TREASuRER City Treasurer –– Finance & Accounting Division The City Treasurer's Office coordinates the Finance and Accounting departments and is primarily responsible for providing City Council and City management with timely financial reports and analysis and current information about economic conditions and their potential fiscal impact on Scottsdale. This Year 2009/2010 Highlights • Introduced enhanced automation with a web based report manager to enable timely financial reporting. Financial reports are now available on the City's intranet site. • Staff assigned to Accounts Payable were reduced by one-third, even though the number of payments to be processed has remained steady. Accuracy of payments remains of highest priority. • The Federal Trade Commission's Red Flag program, which required utility providers to maintain and identify their theft prevention program, was approved and fully implemented. • The water meter reading team, in partnership with Water Resources, equipped another 3,500 water meters with automated meter reading technology. • Earned the Government Finance Officers Association Distinguished Budget Presentation Award for the City’s FY 2009/10 budget. Priorities for 2010/2011 • Identify major policy issues for City Council which impact the City’s financial sustainability. • Seek optimum financial structure to mitigate debt service costs while reinforcing the city’s solid standing with credit rating agencies and maintain or improve Scottsdale’s excellent bond ratings. • Assist in developing the November 2010 bond program to address the City’s major infrastructure needs. • Utility Billing will implement additional services for accepting payments online for utility bills via the Automated Clearing House – an electronic network for financial institutions. • Continue to increase the number of water meters that are equipped with the automated meter reading technology. Highlighted Changes • Eliminated the Assistant City Treasurer position and replaced it with a Senior Budget Analyst, Accounting Coordinator, and Administrative Assistant all at a net budget impact of $0. • The deletion of the AutoPay program and significant reduction in allowance of credit card payments will produce an estimated savings of $282,000 in the Water/Sewer Enterprise Funds. David Smith City Treasurer 182 SuMMARY BY dIvISIon S CITy TREASuRER Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 110.50 APPROVED 2009/10 92.50 ADOPTED 2010/11 94.50 3.71 % CHANGE 09/10 TO 10/11 2.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 6,171,390 7,585,888 849,319 849,475 2,280,199 17,736,272 5,051,568 7,601,123 778,852 778,852 2,003,537 16,213,932 4,935,907 7,238,302 765,978 765,978 1,873,047 15,579,212 -115,661 -362,821 -12,874 -12,874 -130,490 -634,720 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 8,721,862 8,736,337 278,005 68 17,736,272 0 17,736,272 6,772,637 9,270,822 168,973 1,500 16,213,932 0 16,213,932 6,574,150 8,852,442 152,620 0 15,579,212 0 15,579,212 -198,487 -418,380 -16,353 -1,500 -634,720 0 -634,720 Funding Source General Fund Self Insurance Fund Sewer Fund Solid Waste Management Fund Water Fund Total Division Budget Expenditures By Type 183 Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget SuMMARY BY dIvISIon S CITy TREASuRER Performance Measures ACTUAL 2008/09 1.65% Risk Management budget as a percentage of total City divisional budgets. Goal is less than 2.00%. Citywide - Total Injury Incident Rate per 200,000 hours worked 5.53 Citywide - Number of worker days lost to injury per 2.30 200,000 hours worked (1) Average number of working days to post Monthly Financial 20.4 Report to the City's webpage. Scottsdale Portfolio Yield to maturity at cost versus 3.83% vs 2.77% average two year Treasury yield Write-offs as a percent of total revenue collected 0.36% Monthly water meters read per Full Time Equivalent 6,724 Total Customer Service customer contacts per Full Time Equivalent 5,891 Total number of remittance payments processed per Full Time Equivalent 106,359 Number of Tax & License transactions per Full Time Equivalent 9,111 PROJECTED 2009/10 1.75% ESTIMATED 2010/11 2.00% 4.92 1.59 4.75 1.50 14.8 13.0 2.53% vs 1.18% 1.10% vs 0.80% 0.50% 7,468 6,366 132,496 9,286 0.50% 7,470 6,300 132,850 9,370 The Finance and Accounting Division's net operating expenses are 3.1% of the City's total operating budget. 1. This reporting industry standard measure is used by the federal Occupational Safety and Health Administration. City Treasurer Finance & Accounting Accounting Budget Customer Service Risk Management Accounting Budget Tax & License Risk Management Accounts Payable Revenue Recovery Safety Payroll Remittance Processing Workers Compensation General Liability/Property Utility Billing Contracts Meter Reading 184 185 SuMMARY BY dIvISIon ADMINISTRATIVE SERVICES S Administrative Services Tax Audit Section: Promotes accurate and timely payment of privilege, use, and bed tax self-assessments by taxpayers through education programs; provides guidance in tax code interpretations; evaluates local economic strength through analysis of privilege, use, bed, and property tax collections; and develops innovative solutions that will ensure the City's financial stability. Purchasing Services is responsible for the timely and best value acquisition and/or facilitating the acquisition of all materials, services, and construction required by the City and assists various contract administrators throughout the City. The section will continue to implement flexible procurement processes, secure long-term contracts, advantageous pricing arrangements and educate City staff about best value procurement methods. The Stores/Warehouse Operations service area maintains, dispenses, and delivers inventory items, manages surplus property disposition and is the primary receiving point for the delivery, inspection, and re-delivery of items procured through the City's purchase order system. Our Graphics, Printing and Mail service area provides a variety of internal services to assist City departments with all internal mail and incoming & outgoing postal mail, graphic design, print production and CD duplication as well as production and processing of utility billings. This Year 2009/2010 Highlights • Tax Audit Section: Conducted more than 350 audits/write-ups and compliance reviews, which included continuation of a project to ensure proper reporting of taxes under the speculative building classification. The projected tax collections for 2009/10 are approximately three to four times the cost to fund the Tax Audit Section. • Tax Audit Section: Continued to provide revenue forecasts to budget staff for privilege/use and bed taxes. • Purchasing Services: Received the National Procurement Institute Award for Excellence in Procurement for the 11th consecutive year. • Purchasing Services (Graphics & Printing): New digital production equipment has enabled staff to bring a number of large projects back in-house, thus providing several benefits to the City in addition to cost savings (i.e. all carbonless forms, all business card shells, and all stationery). • Purchasing Services: Continued to provide an excellent level of support services with a 13 percent staff reduction. Priorities for 2010/2011 • Tax Audit Section: Provide taxpayer education through audit and review of taxpayer records to ensure tax code requirements are upheld. • Tax Audit Section: Provide privilege, use, and property tax data to internal and external customer, including revenue forecasts to Budget staff. • Purchasing Services: Complete the implementation of solicitation boilerplate and document management improvements that include review, approval, and retention processes. • Purchasing Services (Graphics & Printing): Provide a full service professional print center that delivers a high quality and cost efficient product using City assets, ensuring that City print projects are designed and produced to specifications which allow 90 percent of projects to remain in-house. • Purchasing Services (Mail): Improve Citywide efficiency so that mailing services achieve the goals set forth in developing the FY 2010/11 budget. 186 David Ellison Assistant City Manager SuMMARY BY dIvISIon 187 Highlighted Changes • Tax Audit Section: Nine employees are in the section: one Tax Audit Manager, four Senior Tax Auditors, one Tax Auditor, and three Audit Associates. An Audit Associate retired in September 2009 and a Tax Auditor was hired in December 2009 to fill the vacant position, which is an underfill of a Sr. Tax Auditor position. The Tax Audit Section was assigned from the Financial and Accounting Division to the Administrative Services Division in December 2009. • Tax Audit Section: A project was launched to ensure privilege taxes are being paid on speculative builder houses in which foreclosures have occurred. The Model City Tax Code requires payment of such taxes by successors. S ADMINISTRATIVE SERVICES • Purchasing Services: Previously part of the Financial Management Division, now part of the Administrative Services Division reporting to the Assistant City Manager. • Purchasing Services (Graphics & Printing): Printing needs have become increasingly more specialized, while still requiring a cost efficient method to produce. The flexibility of using updated Digital print press technology allows a faster and more cost effective in-house operation resulting in an overall savings to the City. • Purchasing Services (Mail and Stores/Warehouse Operations): With reduced staffing and removal of the City's x-ray scanning equipment, the City has resumed receiving packages directly at each location (as was the case five years ago). Administrative Services Tax Audit Purchasing Services Tax Audit Purchasing Stores/Warehouse Operations Graphics & Printing Mail SuMMARY BY dIvISIon ADMINISTRATIVE SERVICES S Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 38.50 APPROVED 2009/10 35.00 ADOPTED 2010/11 35.00 1.37 % CHANGE 09/10 TO 10/11 0.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 3,414,922 3,414,922 3,135,881 3,135,881 2,816,220 2,816,220 -319,661 -319,661 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 2,655,113 606,121 153,687 0 3,414,922 0 3,414,922 2,456,954 435,508 243,419 0 3,135,881 0 3,135,881 2,380,589 221,338 214,293 0 2,816,220 0 2,816,220 -76,365 -214,170 -29,126 0 -319,661 0 -319,661 ACTUAL 2008/09 373 $3.40 6,234 $179M 20% (60/296) PROJECTED 2009/10 357 $3.57 5,748 $154M 43.5% (129/296) ESTIMATED 2010/11 365 $3.00 6,000 $175M 64% (189/296) 12,483 $841,133 11,708 395 2,749 6,750,000 7,409,500 11,384 $676,707 7,626 359 2,430 6,038,136 7,714,000 12,000 $680,000 8,000 390 2,600 6.5M 7.8M Funding Source General Fund Total Division Budget Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget Performance Measures Audits and Compliance Reviews Audit Collection Per Dollar of Cost Number of Purchase Orders Processed Dollar Value of Purchase Orders Processed Percent of Contract Administrators trained in the Contract Administrators Academy Number of Warehouse Items Issued Dollar Value of Warehouse Items Issued Orders Received and Re-delivered by Warehouse Surplus Property Pick-up Requests Number of Graphic Requisitions Processed Number of Impressions processed by Graphics & Printing Number of Pieces of USPS and Inter-office Mail Processed 188 189 SuMMARY BY dIvISIon S COMMuNITy SERVICES Community Services The Community Services Division strives to improve and preserve Scottsdale's quality of life by providing citizens with safe and highly maintained facilities and offering programs and services that focus on family interaction, cultural enrichment, community involvement, and the development of lifetime skills and healthy lifestyles. The division provides assistance and guidance to those in need and links citizens with information resources throughout the world. The Community Services Division consists of four service areas: Preserve Management; Human Services; Parks and Recreation; and Library Systems. Preserve Management operates and manages the Scottsdale McDowell Sonoran Preserve consisting of more than 16,000 acres of dedicated open space including more than 60 miles of multi-use trails and 10 trailhead/parking facilities. Human Services operates two senior centers, Paiute Neighborhood Center, Vista del Camino and the Community Assistance Office. Parks and Recreation operates and manages 41 parks, four aquatic centers, four fitness centers, five community centers, two tennis centers, two skate facilities, eight urban lakes, three off-leash areas, three specialty parks, and maintains more than 400 acres of medians and rights-of-way. Library Systems consists of five libraries: Civic Center, Mustang, Palomino, Arabian and Appaloosa. This Year 2009/2010 Highlights • Number of Scottsdale youth and teens served in Recreation Programs provided by Human Services and Parks and Recreation: Youth Sports 2,170; Adapted Recreation 1,629; Afterschool & Summer Programs 4,548; and Summer Youth Volunteer Program 210. • Human Services provided $5.5 million to landlords for rental assistance for lowincome tenants; more than 11,000 residents benefited from case management and supportive intervention sessions; 8,400 residents visited the career center or attended a career workshop. Seniors benefited from increased fitness center utilization and residents were seen more quickly by backfilling canceled emergency services appointments. • Opened Appaloosa Library, and key usage measures in all libraries increased: attendance increased 10 percent, circulation 12 percent, new customers 15 percent and computer usage 23 percent. • Parks and Recreation opened Phase 1 of Grayhawk Community Park by hosting the Senior Softball World Series. Highlights of key demand areas include: Teen Employment career counseling intakes increased 65 percent; citizens seeking assistance for outreach and outreach resources for individual alcohol education/risk assessments, individual life skills and parenting/family issues increased by 58 percent; learn-to-swim lessons up over 13 percent; Adapted Recreation Services has seen a 33 percent increase in overall program registration; Youth and Adult Sports registration is up just over one percent and participation at aquatic and fitness centers is up almost seven percent. • Completed the ADA accessible Bajada Nature Trail at the Gateway trailhead. Began the design process for the Tom’s Thumb Access Area. Established a Commercial Permit policy for guided hikes and trail rides in the Preserve. Constructed and signed five miles of rock climbing access routes in conjunction with the Arizona Mountaineering Club. Bill Murphy Executive Director 190 SuMMARY BY dIvISIon 191 Priorities for 2010/2011 • Actively pursue alternative means of service delivery including growing volunteer base, enhancing revenue opportunities and fostering cooperative community relationships. • Meet increased human service demands in the areas of crisis assistance, independent living challenges and social wellbeing for families and adults living on their own by providing basic necessities such as food, clothing, utility, rent/mortgage and by mitigating the causes of poverty and supporting independent living through support groups, case management, job search/career building, health / wellness activities and socialization. • Complete remodel design and begin construction of the Civic Center Library entrance and automated check-in and public computer areas, improving service efficiencies for customers and staff. • Preserve Scottsdale's unique lifestyle and character through development of park projects (McCormick-Stillman Railroad Exhibit, ADA Renovation of Eldorado ball field Restroom and Troon North Park); support economic vitality through an COMMuNITy SERVICES economic feasibility study of City recreation amenities and fostering critical partnerships with San Francisco Giants, Phoenix Thunderbirds and Scottsdale Charros; seek sustainability through budget efficiencies, accounting practices, outsourcing opportunities and managed competition; aggressively pursue organizational re-accreditation as a nationally recognized mark of distinction while maintaining excellence in our recreation programs, services and parks maintenance efforts. • Update the Preserve Strategic Acquisition Plan including funding, land values, priorities and operations. Acquire 2,000acre Preserve parcel from Arizona State Land Department (ASLD). Finalize agreement with ASLD regarding trail maintenance and operations for the northern Preserve. Begin design on Alma School access area. Complete design and begin construction of the Tom’s Thumb Access Area at the north end of the McDowell Mountains. Continue to advance the City’s partnership with the McDowell Sonoran Conservancy. Begin issuing permits to commercial entities for use of the Preserve for activities such as guided hikes and trail rides. S Highlighted Changes • Community Services' General Fund operating budget for FY2010/11 decreased $1.2 million from the FY 2009/10 approved budget and was reduced by 2.74 full-time equivalent (FTE) positions. The FY2010/11 General Fund budget is $6.1 million, or 15%, less than FY 2008/09 total expenditures and is 56.60 FTE, or 10.4%, less than FY 2008/09. • Human Services completed the Housing & Human Services Five-Year Consolidated Plan, including a Human Services Strategic Plan, based on community feedback used to prioritize programs. Efficiencies such as utilization of volunteers, shared use of staff across service areas and staggered work schedules allowed staff to meet the 21 percent increased demand for services with an 11 percent reduction in FTE. • Centralized selection of library materials, saving 1.5 FTE and increasing the amount of outsourced materials cataloged and processed from 30 percent to 80 percent. SuMMARY BY dIvISIon • Appaloosa Library purchased one automated sorter allowing customers to check in items they are returning. This sorter presorts over 10,000 items per month, reducing staff ergonomic issues and allowing 1.5 FTE to focus on customer service. Sorters for Mustang and Civic Center libraries will be purchased next in order to continue streamlining operational activities and further enhance customer service. • With financial resources reduced by $3.8 million from FY 2008/09 to FY 2010/11, Parks and Recreation leadership will continue pursuing new and creative sources of funding in the coming year including seeking sponsorships and donations. Additional operating efficiencies include: negotiating reductions in service and commodity contracts; eliminating program redundancies; implementing staffing model changes; transitioning turf to xeriscape for water conservation and cost reductions; and continual evaluation of maintenance operation and service delivery. S COMMuNITy SERVICES Community Services Preserve Management Preserve Management Human Services Parks & Recreation Library Systems Senior Services Adapted Recreation Services Library Administration & Operations Social Services Assistance & Referral Aquatics Centers CivicCenter Library Sports Complexes Housing Assistance & CBDG Programs Sports & Fitness Programs Mustang Library Human Services Planning & Administration Youth & Family Activities & After School Programs Palomino Library Community Recreation Services & Facilities Leisure Education Programs Parks & Recreation Planning & Administration Grounds & Landscape Maintenance Medians & Right-of-Way Downtown Maintenance Arabian Library Appaloosa Library 192 SuMMARY BY dIvISIon COMMuNITy SERVICES S Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 543.08 APPROVED 2009/10 489.32 ADOPTED 2010/11 487.58 19.15 % CHANGE 09/10 TO 10/11 -1.74 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 959,051 43,417,063 965,148 180,594 6,230,134 1,961,923 53,713,912 2,337,089 37,879,504 403,000 1,000,264 7,205,858 2,594,991 51,420,706 2,291,263 37,353,595 462,198 1,159,838 6,642,546 2,336,378 50,245,818 -45,826 -525,909 59,198 159,574 -563,312 -258,613 -1,174,888 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 33,435,466 16,054,633 4,133,930 89,883 53,713,912 0 53,713,912 28,075,967 18,617,971 4,567,768 159,000 51,420,706 0 51,420,706 26,893,971 18,127,173 4,507,607 71,867 49,600,618 645,200 50,245,818 -1,181,996 -490,798 -60,161 -87,133 -1,820,088 645,200 -1,174,888 Funding Source CDBG Fund General Fund Grants Fund Home Fund Section 8 Housing Fund Special Programs Fund Total Division Budget 193 Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget SuMMARY BY dIvISIon S COMMuNITy SERVICES Performance Measures ACTUAL 2008/09 1. Citizen visits to Parks and Park Programs per capita 20.6 2. Acres of Parks and Medians maintained per employee (1) 13.0 3. Park Acres per 1,000 population (2) .04 4. Library registered borrowers as a percentage of Scottsdale population (3) 72% 5. Library check-out rates per capita 15.0 6. Library check-out rates per registered borrower (4) 21.0 7. Library visitation rates per capita 6.4 8. Library visitation rates per registered borrower 8.9 9. Number of units rehabilitated per $100,000 of public 9.4 financial assistance for housing rehabilitation 10. Sentence completion rates for children and youth ordered 100% to perform community services PROJECTED 2009/10 19.9 14.2 .06 60% 16.4 27.2 6.9 11.5 9.2 ESTIMATED 2010/11 20.3 14.2 .06 65% 17.0 30.0 8.0 13.0 9.5 100% 100% 1. Park acreage maintained includes the 41 parks and 400 acres of medians and rights-of-way maintained by the City. 2. Grayhawk and Camelback parks were added in 2009-10. 3. The reduction in FY 2009/10 is a result of database clean-up. 4. Library check-out rates increased due to the downturn in the economy, individuals searching for employment and the opening of Appaloosa Library. 194 195 SuMMARY BY dIvISIon S ECONOMIC VITALITy Economic Vitality Division The Economic Vitality Division is a multi-faceted organization with responsibilities over the areas of tourism, the Scottsdale Airport, WestWorld, business recruitment, business retention, revitalization, servicing the downtown business community, administering the Convention and Visitor’s Bureau and Scottsdale Cultural Council contracts, and working with regional and local organizations on a wide range of economic issues and activities. The program is the point where various economic development strategies are connected and where the evaluation of economic development initiatives begins. The work of the Division is modeled on cooperative planning and implementation of programs and tactics. The combined effect of the identified programs is to maintain the existing economic foundation of Scottsdale and to position the community for sustainable, long-term economic vitality in order to enhance the quality of life for all residents. This Year 2009/10 Highlights WESTWORLD • Continued excellent support of events such as the Arabian Horse Show, Barrett Jackson Auto Auction, and negotiated expansion of the Good Guys Car Show to twice annually. • Initiated efforts to secure WestWorld as the National Arabian Horse Show event venue. • Took on the management of the State land (101 SLUP) for special event support. AIRPORT • Completed the Airport Strategic Business Plan and started implementation. • Worked with the FAA and secured approval to allow planes of 100,000 lbs. maximum certificated operating weight to fly in and out of Scottsdale Airport. • Initiated the regulatory re-write of the airport rules and regulations. REVITALIZATION/DOWNTOWN • Managed City Council appointed McDowell Road/Southern Scottsdale Economic Development Task Force resulting in recommendations unanimously accepted by the Council. • Issued Request for Proposals and received proposals to increase city revenue by acquiring a corporate event sponsorship broker. • Organized Frank Lloyd Wright auto dealerships resulting in a first ever area tent sale at WestWorld. • Held over 100 successful special events in the downtown area. • Directly assisted over 1500 visitors to the downtown office providing referrals to downtown businesses. • Opened the Small Business Development Center in the Downtown Office. • Coordinated various marketing and advertising programs promoting downtown as a destination. BUSINESS RECRUITMENT/RETENTION • Worked with the successful relocation or expansion of 7 targeted companies with 400 jobs, absorbing over 86,000 s.f. of commercial office space with approximately $9.2 million in private capital investment. • Conducted Targeted sales missions, along with public and private partners to attract clean and renewable energy industries, leading national retailers. • Developed an expanded network of corporate real estate professionals representing national and international tenants to work with on creating new business and job opportunities. • Held nine small business workshops with over 250 participants. • Created the Shop Scottsdale program. • Participated in the statewide business retention and expansion report focused on manufacturing. TOURISM DEVELOPMENT/MARKETING • Coordinated and provided direction in the creation of the proposed bed tax increase, including preparing base data and working with the Convention and Visitor’s Bureau. • Initiated the Phase II program for future development of the Desert Discovery Center along with planning, the Preservation Commission and the Tourism Development Commission. • Created a program to better coordinate the marketing and operation efforts of all the departments within the Divisions. Harold Stewart Executive Director 196 SuMMARY BY dIvISIon Priorities for 2010/11 WESTWORLD • Upgrade the Equidome to expand the horse event season and increase WestWorld’s income. • Attract a new national and/or internationally recognized event to WestWorld. • Continue to increase WestWorld income to reduce City general fund expenses. AIRPORT • Renovate the runway to add five years of serviceable life to the pavement. • Complete regulatory rewrite and fee structure recommendations. • Begin environmental assessment to allow complete reconstruction of the runway. 197 REVITALIZATION/DOWNTOWN • Secure corporate sponsorships for City events resulting in increased revenue and decreased City expenditures. • Coordinate implementation of the McDowell Road/Southern Scottsdale Economic Development Task Force recommendations. ECONOMIC VITALITy • Design a five-year strategy to begin work on revitalization and reinvestment in the Airpark. • Establish downtown event standards aimed at increasing awareness of downtown for shopping, eating, and socializing. • Explore the creation of a downtown business association comprised of representatives from each of the districts. BUSINESS RECRUITMENT/RETENTION • Implement the recommendations that will be generated by the General Plan Economic Analysis. • Create and implement a comprehensive marketing and outreach plan to increase Scottsdale’s exposure to business site selectors. • Work with GPEC and other economic development partners to secure new targeted business to Scottsdale. • Offer two rounds of the small business workshop series. • Development of an “Opening a Small Business in Scottsdale” handbook. • Expand the business visitation program to increase elected and appointed officials participation. Economic Vitality Economic Vitality WestWorld Aviation Economic Vitality Administration WestWorld Aviation Economic Development Harold Stewart Executive Director Existing Business Services Hospitality Development Revitalization The Downtown Group S TOURISM DEVELOPMENT/MARKETING • Create a division plan for cooperative marketing of WestWorld and the Airport to drive additional business to these operations. • Update the Economic Vitality Strategic plan to reflect the broad goals and responsibilities of the Division. • Provide support to the City Council Economic Development Subcommittee, WestWorld Subcommittee, Tourism Development Commission, and Industrial Development Authority. • Complete planning of the Desert Discovery Center. • Conduct the required update of the five year strategic plan for tourism development. • Administer the Convention and Visitor’s Bureau contract. • Initiate use of additional bed-tax funds. Highlighted Changes WestWorld saved over $46,000 annually in personel costs by shifting contract employees to regular employee status. SuMMARY BY dIvISIon ECONOMIC VITALITy S Staff Summary ACTUAL 2008/09 54.00 APPROVED 2009/10 47.00 ADOPTED 2010/11 48.00 1.88 % CHANGE 09/10 TO 10/11 1.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 1,869,350 9,410,958 45,000 7,104,992 18,430,300 1,407,699 9,298,049 0 6,121,942 16,827,690 1,729,622 12,960,355 1,000 5,371,983 20,062,960 321,923 3,662,306 1,000 -749,959 3,235,270 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 4,674,832 13,109,326 482,914 163,228 18,430,300 0 18,430,300 3,841,965 12,509,150 476,575 0 16,827,690 0 16,827,690 3,809,314 14,672,566 488,380 0 18,970,260 1,092,700 20,062,960 -32,651 2,163,416 11,805 0 2,142,570 1,092,700 3,235,270 ACTUAL 2008/09 Targeted Job Creation Actual 7 companies with 364 jobs Annual increase/decrease of sales tax revenue -17% Number of jobs in Scottsdale 189,081 Number of assistance contacts and visits with existing businesses 275 Annual percentage increase/decrease in bed tax receipts -21% Scottsdale hotel/motel average occupancy rate 58% Housing appreciation rates (ASU Study) South Scottsdale District -19% Dollar value of new construction south of Chaparral Road $150M Annual number of downtown special events coordinated 100 Number of equestrian use days at WestWorld 307 Number of special event use days at WestWorld 230 PROJECTED 2009/10 Actual 11 companies with 740 jobs -9% 188,488 285 -7% 57% -16% $34M 75 261 253 ESTIMATED 2010/11 7 companies with 450 jobs 2% 182,771 295 3% 59% -14% $50M 100 247 125 Full-time Equivalents (FTE) % of City's FTEs Funding Source Aviation Fund General Fund Grants Fund Special Programs Fund Total Division Budget Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget Performance Measures 198 199 SuMMARY BY dIvISIon huMAN RESOuRCES S Human Resources The Human Resources Division is committed to hiring, developing and retaining a competent, committed and diverse workforce to provide high quality and cost-effective services to the Scottsdale community. This is accomplished through excellent customer service and expertise from the five departments that comprise the human resources division: Executive Management; Staffing Services and Employee Relations; Workforce Management and Employee Programs; Benefits Management; and Technology Services. Efforts include: • Managing employee relations. • Implementing total compensation. • Ensuring compliance with employment laws, practices and policies. • Offering programs and services to facilitate individual, team and organizational performance improvements through learning and professional development opportunities. • Cultivating an environment within the City of Scottsdale and community where differences are valued, respected and embraced through education, community outreach and deliberative dialogue. • Administering City employee benefits programs. • Coordinating and administering employee programs (i.e. wellness, city store operations, years of service and superior performance awards, City Manager Awards of Excellence). • Designing and maintaining technological programs and systems that integrate with and enhance other department systems, eliminating duplication of efforts and improving efficiencies. This Year 2009/2010 Highlights • Implemented a retirement health savings plan that provides opportunity for retirees to pay for qualified medical expenses on a tax free basis. • Implemented a new Supervisory Academy for aspiring and new supervisors. • Completed the transition to an electronic records management system for all personnel files. • Implemented an online job application system and expanded employee self services to include benefits enrollment, International City/County Management Association enrollment and tuition reimbursement management. • Assisted City Council with several high level recruitments (City Manager, City Attorney, City Treasurer, Communications and Public Affairs Officer). Priorities for 2010/2011 • Identify opportunities for automation and process improvement, benchmark with other organizations to assure the City remains competitive, and identify quality, cost effective benefit programs and administrators for consideration by City Management. • Develop programs to promote employee wellness, reduce medical benefit costs, decrease workplace injuries and increase productivity. • Centralize the Volunteer Program application process. • Develop and implement Customer Service Program initiative. • Develop and implement an exit interview process. La Verne Parker Diggs Executive Director 200 SuMMARY BY dIvISIon Highlighted Changes • Transfer of Payroll department back to Finance and Accounting Services Division, effective November 2009, which included five FTEs and a fund 100 budget amount of $421,697. • Transfer of Risk Management department back to Finance and Accounting Services Division, effective November 2009, which included five FTEs and a fund 710 budget of $7,602,566. • Reduction of three FTEs (two from Human Resources and one from Payroll) through the reduction in force process in August 2009. 201 S huMAN RESOuRCES • Reduction of two FTEs (one from Human Resources and one from Risk Management) through the early retirement incentive in September 2009. • Transfer of $45,000 for qualifying medical services (executive physicals) from fund 100 to the self insured fund 715, Live Life Well Program. Delay filling a HR Representative position for a savings of $50,000. Human Resources Human Resources Executive Management Staffing Services/ Employee Relations Workforce Management/ Employee Programs Benefits Management Human Resources Executive Management Staffing/ Services Employee Relations Workforce Development Benefits Management Tuition Reimbursement Live Life Well Program Classification/ Compensation Employee Programs/ Communications Labor Relations Diversity & Dialogue Pre-employment Services City Store Superior Performance Human Resources Technology Services Human Resources Technology Services SuMMARY BY dIvISIon huMAN RESOuRCES S Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 35.50 APPROVED 2009/10 30.00 ADOPTED 2010/11 30.50 1.20 % CHANGE 09/10 TO 10/11 0.50 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 3,439,680 24,946,928 17,769 6,600 28,410,977 3,686,585 24,963,534 10,000 8,882 28,669,001 3,525,008 25,937,669 5,000 9,500 29,477,177 -161,577 974,135 -5,000 618 808,176 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 2,942,338 25,090,347 378,292 0 28,410,977 0 28,410,977 2,782,218 25,563,836 272,947 50,000 28,669,001 0 28,669,001 3,028,519 26,162,411 236,247 50,000 29,477,177 0 29,477,177 246,301 598,575 -36,700 0 808,176 0 808,176 Funding Source General Fund Self Insured Benefits Fund Special Programs Fund Trust And Agency Fund Total Division Budget Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget 202 SuMMARY BY dIvISIon S huMAN RESOuRCES Performance Measures 203 ACTUAL 2008/09 Percentage of favorable findings by Equal Employment Opportunity 100% Commission (EEOC) on responses to formal complaints filed by employees. (1) Annual medical/dental cost per employee/retiree (2) $8,450 Citywide turnover (total) 5.7% Citywide turnover (without retirements) 4.1% Average expenditure per employee for training and development. (3) $50 Number of employees who participate in the tuition reimbursement program 193 Average hours of medical leave used annually per employee 54.1 (includes Family Medical Leave Act covered leave) Total number of applicants seeking employment opportunities 8,166 with the City of Scottsdale Minority applicants as a percentage of total applicants 25% Total number of applicants hired for positions 329 Minority applicants hired 19% PROJECTED 2009/10 75% ESTIMATED 2010/11 100% $8,900 9.3% 4.8% $63 161 62.3 $9,250 5.5% 4.0% $55 161 65 10,744 11,000 27% 356 16% 27% 350 20% 1. Percentages are based on the number of resolved cases received each fiscal year; for FY 2009/10, 6 resolved cases were received from the EEO and 4 had favorable findings. 2. Based on the average cost of all plans; for FY 2010/11, the city pays approximately 88% of total costs, employees pay approximately 12%; retirees pay 100% of total cost. 3. The increase for FY 2009/10 is attributed to additional training provided to employees involuntarily separated and placed in the Employment Transition Center. City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 204 205 SuMMARY BY dIvISIon INFORMATION TEChNOLOgy S Information Technology Information Technology provides technical design, support, and maintenance for a variety of systems and services needed to support City business functions and communications. The infrastructure includes the City’s telephone, computer and radio systems as well as the enterprise data storage devices and the wired and wireless networks. Among the services offered are custom software design and engineering, software support, design and management of databases, maintenance of GIS systems and maps, technical training for City staff, network and data security, technical support for microcomputers and peripherals, project management, Internet/ Intranet design and maintenance, Cable 11 program development and transmission, and providing direction for the communications standards and overall branding for the City. This Year 2009/2010 Highlights • Identified over 10,000 addresses that were not on Census lists. This has a potential of increasing funding to the community by over $30M over the next 10 years. • Completed a new microwave communications network which will support the Public Safety Radio System and provide redundant City business network communications between the Via Linda Civic Campus, the McKellips Service Center and the Civic Center Campus. • Received six PTI Technology Solution Awards for excellence in deploying technology at the local level. In the category of Sustainability, “The Big Map” project was the winner with “Tax Audit Lead Finder” as a noted Significant Achievement. In the GIS category, “GIS Disaster Recovery Implementation” was the winner. In the Web & E-Government Services category, “Employee Self Service Portal” was the winner with “Quick Pay Utilities Application” as a noted Significant Achievement. Finally, in the category of Public Safety Technology, “e-Subpoena” was a noted Significant Achievement. • Replaced the City’s server backup software and hardware with new products to reduce costs, simplify data management functions through a single platform and assist in managing data growth for critical systems such as the water quality data in the Water Resources Department’s Supervisory Control and Data Acquisition (SCADA) system. Redesigned the City’s Intranet site using the Content Management System. Priorities for 2010/2011 • Provide day-to-day service and support for: the City’s core technology infrastructure – install, monitor and maintain the City’s core network systems, the City’s desktop and peripheral infrastructure, and the key information systems throughout the City – e.g. - Document Management, Community Development, Code Enforcement, Water Operations and GIS. • Continue the transition of the City telephone system to VOIP (Voice Over IP) technology. The City’s migration to the new technology is less expensive to deploy, provides a better use of network resources and in the long term will be much less costly to maintain and support. • Automate employee benefits enrollment process to eliminate the need to manually process applications. • Update several web based mapping tools used by field employees and the public to ensure ongoing support and increase efficiencies for the users of these systems. • Transition the City’s police and municipal radio users to the City’s new Public Safety Radio System integrating the City into the greater Regional Wireless Cooperative. 206 Brad Hartig Executive Director-CIO SuMMARY BY dIvISIon 207 Highlighted Changes • Due to a divisional restructure, $45,244 in special pays were eliminated from the IT budget. Shift pay has been eliminated because the third shift was removed, and on-call and overtime budgets were reduced. This represents a permanent reduction in special pays. • The Public Affairs Manager position was eliminated (the position had been vacant for more than 900 days). • Eliminated the Scottsdale PRIDE utility bill insert newsletter to save printing and production costs. News and information carried previously in PRIDE is provided to the news media and is available at scottsdaleaz.gov, via email and on CityCable Channel 11. • Increased revenue for FY10/11 by $520,000 due to contracts with AGL, a company that provides dark fiber to businesses and carriers that want to lease it, and New Path Networks, a company that provides infrastructure for wireless carriers to use to provide service to their customers. INFORMATION TEChNOLOgy Information Technology Application Development & Support Technology Infrastructure Support Application Development & Integration Network Support Network Security Application Support Help Desk Technical Support GIS Data Services Web & Media Services Project Management & Integration S SuMMARY BY dIvISIon INFORMATION TEChNOLOgy S Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 81.81 APPROVED 2009/10 78.81 ADOPTED 2010/11 75.81 2.98 % CHANGE 09/10 TO 10/11 -3.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 10,284,151 10,284,151 9,863,521 9,863,521 9,903,567 9,903,567 40,046 40,046 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 8,562,657 1,578,617 140,608 2,269 10,284,151 0 10,284,151 7,968,389 1,634,725 238,407 22,000 9,863,521 0 9,863,521 7,565,999 1,623,876 230,892 22,000 9,442,767 460,800 9,903,567 -402,390 -10,849 -7,515 0 -420,754 460,800 40,046 ACTUAL 2008/09 NA PROJECTED 2009/10 87% ESTIMATED 2010/11 80% 126 119 1187 29.4% 140 120 1300 45.0% 2,100,000 2,300,000 62.0TB 67.0TB 40% 12,468 390:1 597 4446 45% 12,500 390:1 650 5000 Funding Source General Fund Total Division Budget Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget Performance Measures Percentage of internal employees who rated Information Technology service good/excellent Total Number of map layers maintained by City Staff 95 Number of software solutions supported 115 Number of databases supported 957 Percentage of City telephones transitioned to Voice over 13.0% Internet Protocol (VoIP) technology Number of spam emails blocked monthly from entering the 2,200,000 City email system Total Disk Storage allocated (Storage Area Network storage only) 47.7TB in terabytes Percentage of servers that have been migrated from physical to virtual servers 28% Number of work orders completed 10,650 Ratio of personal computers to Field Technicians 340:1 Number of students completed instructor led IT training 715 Number of students completed IT generated eLearning 5766 208 209 SuMMARY BY dIvISIon PLANNINg/NEIghBORhOOD/TRANSPORTATION S Planning/Neighborhood/Transportation Division Work in partnership with the community - citizens, businesses, civic organizations, visitors and stakeholders to: shape the physical and aesthetic form of the city; to safely, conveniently and efficiently move people, goods and information; and to preserve, reinforce and revitalize the characteristics and stability of commercial areas and residential neighborhoods to provide a high quality of life for all that live, work, and recreate in the city. This Year 2009/2010 Highlights • The McDowell Road/South Scottsdale Task Force Recommendations Report was completed and presented to the Scottsdale City Council. • The General Plan (GP) Update 2011 process was initiated and the General Plan Citizen Working Group was established. • Major projects included: (Solis) Waterview; Fashion Square Mall addition including Barney’s New York; Scottsdale Quarter and Newpath. • Completed reconstruction of Indian School Road. • Completed an intergovernmental agreement with the Salt River Pima Maricopa Indian Community (SRPMIC) for roadway and flood control improvements in the Pima Road corridor. Priorities for 2010/2011 • Process improvements and text amendments to implement Greater Airpark, Downtown, and Southern Scottsdale Character Area Plans. • Revitalize the McDowell area corridor; Adopt the Greater Airpark Character Area Plan; Implement the Airpark Loop Road; Implement the Downtown Character Area Plan. • Release draft 2011 General Plan for community review and input; initiate the 2011 General Plan public hearing process. • Complete widening Pima Road between Thompson Peak Parkway and Pinnacle Peak Road. • Complete the final section of the Upper Camelback Wash multi-use path. Connie Padian Acting Executive Director Highlighted Changes • Eliminated two part-time administrative positions. • Eliminated the on-call program for inspectors in the field after a successful pilot program resulting in a $20,000 savings. • Reduced Transit by $1.4 million to balance the Transportation Fund. 210 SuMMARY BY dIvISIon PLANNINg/NEIghBORhOOD/TRANSPORTATION S Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 240.00 APPROVED 2009/10 181.50 ADOPTED 2010/11 180.50 7.09 % CHANGE 09/10 TO 10/11 -1.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 22,310,557 11,500 14,725,884 19,986 0 37,067,927 16,871,107 64,000 13,540,306 140,000 732,000 31,347,413 16,997,179 242,800 12,063,783 125,000 574,387 30,003,149 126,072 178,800 -1,476,523 -15,000 -157,613 -1,344,264 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 22,270,078 14,440,620 354,409 2,819 37,067,927 0 37,067,927 16,004,907 14,831,871 490,635 20,000 31,347,413 0 31,347,413 15,395,976 12,565,882 478,391 10,000 28,450,249 1,552,900 30,003,149 -608,931 -2,265,989 -12,244 -10,000 -2,897,164 1,552,900 -1,344,264 Funding Source General Fund Grants Fund Highway User Fund Special Programs Fund Streetlight Districts Fund Total Division Budget Expenditures By Type 211 Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget SuMMARY BY dIvISIon S PLANNINg/NEIghBORhOOD/TRANSPORTATION Performance Measures ACTUAL 2008/09 Percent of projects committed to, based on City Council 98% and departmental work plans, completed within established timelines Number of General Plan, Character/Community Area Plan, 2 & Neighborhood Plan Creation/Adoption Programs Implement and leverage technology annually for efficiencies, 2 such as Big Map and digital plan reviews Percent of applicant pre-application meetings held within 99% 30 days of submitting request Average initial case response time (Target: 2 calendar days) .50 Percent of construction document reviews for engineering 99% and building plans completed within 20 calendar days Percent of inspections performed within 24 hours 99% Neighborhood Traffic projects completed 6 Total Citywide transit ridership (bus, Dial-a-Ride, 2,600,000 circulators, Cab Connection) PROJECTED 2009/10 100% ESTIMATED 2010/11 100% 3 3 1 2 100% 100% 1.0 99% 1.0 99% 100% 2 2,700,000 100% 10 2,750,000 212 Planning/ Neighborhood/ Transportation PNT Administration Transportation PNT Administration Traffic Engineering Planning Technology Transit Development Services Current Planning Advance Planning Neighborhood Planning Plan Review Current Planning Office of Environmental Initiatives Community Outreach Advance Planning Neighborhood Stability/ Revitalization One Stop Shop Inspection Transportation Master Planning Code Enforcement 213 SuMMARY BY dIvISIon PuBLIC SAFETy - FIRE S Public Safety - Fire Division The Fire Department provides fire protection, emergency medical, emergency services and emergency management to the community through 268 employees and 90 volunteers from 14 strategically located fire stations and headquarters. The purpose of the Fire Department is to reduce the incidence and severity of natural and man-made emergencies which occur within City limits. This Year 2009/2010 Highlights • Purchased property for future permanent Desert Mountain Fire Station 16 on Cave Creek Road, east of Lone Mountain Parkway. Completed design and began construction of Eldorado Park Fire Station 1 and Cactus Acres Fire Station 8. Downtown Fire Station earned LEED Platinum Certification. • Further developed and expanded the Fire Department's Volunteer Program. The program includes approximately 90 dedicated volunteers who contributed more than 6,000 volunteer hours over the past 12 months. Volunteer activities included training more than 1,000 residents in Hands-Only CPR, which helped increase the presence of bystander CPR in Scottsdale from 25 to 50 percent. Volunteers also assist by delivering mail and supplies to stations, reducing the impact on the City and staff resources, and represent the department at special events. • Created a Police-Fire Operations Working Group to improve field working relationships and operations. Collaborated to combine processes and functions to enhance service delivery and reduce costs in Police and Fire Records and Equipment Asset Management. • Ancala West Estates was recognized as the first Firewise community in Maricopa County. Firewise is an aggressive vegetation management and hazard reduction program that reduces the potential impact of a wildland fire. Priorities for 2010/2011 • Maintain FY2009/2010 service levels and, to maintain fire fighter skill proficiency, reinstate some personneltraining activities that had been eliminated in the past two years. • Relocate and complete the construction of Eldorado Park Fire Station 1; complete the construction of Cactus Acres Fire Station 8; assign appropriate personnel, equipment, and apparatus, and open the new stations during fiscal year. Secure a permanent site for Desert Foothills Fire Station 13. • Emergency Services will research alternatives to resolve demographic concerns, continue to monitor and reduce response times, maintain double-digit cardiac resuscitation rate, and aim to increase bystander CPR above 50 percent. • Support Services will evaluate and consider modification of automatic fire sprinkler ordinance, support Bond 2010 if approved, reduce on-the-job injuries, seek alternative funding sources, and improve labormanagement process and employee engagement. Steve Randall Interim Fire Chief Highlighted Changes • Fiscal Year 2010/11 Operating Budget proposes to maintain service-delivery levels as provided through the Fiscal Year 2009/2010 Budget. Staff additionally proposes to reinstate some personneltraining activities that had been eliminated in the past two years. 214 SuMMARY BY dIvISIon S PuBLIC SAFETy - FIRE Fire Office of the Fire Chief Emergency Services Support Services Emergency Management Office of the Fire Chief Field Operations Fire & Life Safety Homeland Security EMS Administration Services Training Resources Management Community Relations 215 Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 268.00 APPROVED 2009/10 265.00 ADOPTED 2010/11 268.00 10.52 % CHANGE 09/10 TO 10/11 3.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 30,732,995 79,546 0 30,812,541 27,438,192 0 500 27,438,692 27,893,809 0 0 27,893,809 455,617 0 -500 455,117 Funding Source General Fund Grants Fund Special Programs Fund Total Division Budget SuMMARY BY dIvISIon PuBLIC SAFETy - FIRE S Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 24,095,633 5,217,891 1,233,498 265,520 30,812,541 0 30,812,541 22,759,128 3,591,561 949,401 138,602 27,438,692 0 27,438,692 22,717,096 4,089,738 846,675 240,300 27,893,809 0 27,893,809 -42,032 498,177 -102,726 101,698 455,117 0 455,117 ACTUAL 2008/09 21,358 4:23 NA $7,587,023 $66,981,236 13/1 NA NA 57 8,556 30,755 4,110 PROJECTED 2009/10 21,494 4:28 NA $5,619,590 $58,082,212 15/0 NA NA 35 8,623 32,840 6,777 ESTIMATED 2010/11 21,630 4:00 15% $6,000,000 $60,000,000 10/0 80% 80% 30 8,600 39,000 8,000 Performance Measures Total Emergency Incidents (1) Average Fire Emergency Response Time (2) Cardiac Arrest Survival Rate (3) Property Loss due to Fire (4) Property Saved in response to Fire (5) Fire caused injuries/deaths (6) Structure Fire Flamespread (7) Fire Unit Reliability (8) Work Related Injuries (9) Building Inspection Rates (10) Public Education/Outreach (11) Volunteer Hours (12) These measures are consistent with the standards developed by the Commission on Fire Accreditation International (CFAI). 1. Reflects the total number of dispatched responses by the fire department within the City of Scottsdale. 2. Reflects the average response time to all Code 3 incidents in the city. 3. Percentage of patients who were in cardiac arrest, treated and transported by the fire department, and with a pulse when delivered to the hospital. 4. Reflects the total value of property damaged because of fire. 5. Reflects the total value of property involved in a fire but not damaged. This value takes into consideration the potential of an actual fire. 6. Reflects injuries and deaths to firefighters and citizens due to fires, or the work related to extinguishing a fire. 7. Percentage of working fires that were confined to the room where they started. 8. Percentage of time that the assigned (first due) company is available to respond to an incident within the district. 9. Reflects reportable injuries to fire department employees. 10. Number of structures inspected and fire plans reviewed. 11. Reflects the total contacts made in a classroom setting, one on one contacts, or awareness opportunities with the public. 12. Reflects the total volunteer hours provided to the fire department. 216 217 SuMMARY BY dIvISIon PuBLIC SAFETy - POLICE S Public Safety - Police The Police Department provides efficient and effective delivery of police service throughout the community. The department is a professional organization that aggressively and creatively confronts community crime and service needs; responds to community needs; and actively seeks citizen involvement and partnerships, by emphasizing crime prevention as a cooperative effort. The Police Department consists of five segments – Office of the Chief, Uniformed Services, Investigative Services, Administrative Services and Personnel Development. The Office of the Chief consists of administration and Internal Affairs. The Uniformed Services Bureau is the most visible component providing uniformed patrol services and specialized functions that augment police services. Investigative Services is responsible for completing thorough and complex investigations in a timely manner with an emphasis on crime prevention by targeting pattern crime through enforcement, regional community partnerships, and use of technology. The Administrative Services Bureau provides operational, administrative and logistical support through strategic planning, technology implementation, forensic services, communications and policy setting to all divisions in the department. The Personnel Development Bureau is responsible for the recruitment and training of sworn and civilian personnel. This Year 2009/2010 Highlights • Sworn positions within the Police Department were fully staffed, significantly reducing overtime expenditures. • New police facilities were completed and occupied. The McKellips (District 1) Patrol Substation, the Forensic Services Division building and the Property & Evidence building are now fully functional. • The City of Scottsdale continued to see an overall reduction of crimes reported. Part 1 crime volume dropped 13.4 percent (from 8,357 in 2008 to 7,240 in 2009). • The Public Safety Division consisting of the Police and Fire Departments have formed an operations working group to improve effectiveness and efficiency through enhanced coordination. In addition, several internal efficiencies have been implemented in collaboration with both departments that include the consolidation of logistics/supply functions, public records distribution, and coordinated fleet over sight. Priorities for 2010/2011 • Continue to enhance community safety through crime prevention and enforcement. This will lead to a continued reduction in crime rates while maintaining clearance rates higher than the Arizona average. • Maintain full staffing levels to provide quality customer service. The staffing model presently in use can be credited for the department’s double digit reductions in crime, high clearance rates, and reduced overtime costs. • Implement the Public Safety Strategic Plan through the following strategic directions: 1) Establish a collaborative public safety culture; 2) Strengthen communications; 3) Integrate training; and 4) Improve efficiencies. • Continue building community partnerships through leadership, participation and collaboration with citizens, community led organizations, businesses, and other government agencies. These collaborative partnerships lead to increased trust, enhanced crime prevention and a safer community. 218 Alan Rodbell Chief of Police SuMMARY BY dIvISIon Highlighted Changes • The overtime budget and related benefits were reduced by $690,000. The Police Department continues to successfully manage its overtime since the department is at full staffing and due to reduction strategies implemented last year. • The police officer pipeline program was reduced from 10 to 5 slots for a reduction of $253,000. The remaining 5 slots will assist us in minimizing the impact of police officer vacancies caused by attrition, transitional duty, military leave, and the extensive 9.5 month police officer training program. 219 PuBLIC SAFETy - POLICE • The Police Department reduced expenses in most categories to accommodate large mandated increases such as the jail contract (a $417,000 increase), new radio system maintenance fees (a $63,000 increase), and extradition travel (a $15,000 increase). • The Special Revenue base budget increased to accommodate one time equipment purchases funded from Racketeering Influenced Corrupt Organization (RICO) funds such as patrol equipment, a utility truck for the installation/removal of camera equipment, and traffic crash survey equipment to replace aging equipment. Special revenue also includes budget for officer time spend enforcing the 30 Day Tow State Statute. S • The funding split for the School Resource Officers in the Scottsdale Unified School District (SUSD) changed from 77 percent SUSD-23 percent City to 55 percent SUSD45 percent city, resulting in a decrease in General Fund revenue of $147,555. Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 713.60 APPROVED 2009/10 688.60 ADOPTED 2010/11 688.60 27.04 % CHANGE 09/10 TO 10/11 0.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 88,325,246 436,768 939,009 89,701,023 85,469,641 184,713 1,147,030 86,801,384 82,991,710 215,228 1,860,394 85,067,332 -2,477,931 30,515 713,364 -1,734,052 Funding Source General Fund Grants Fund Special Programs Fund Total Division Budget SuMMARY BY dIvISIon PuBLIC SAFETy - POLICE S Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 71,733,690 16,137,306 1,650,130 179,897 89,701,023 0 89,701,023 69,268,929 15,934,532 1,597,923 0 86,801,384 0 86,801,384 66,756,525 16,431,682 1,686,675 192,450 85,067,332 0 85,067,332 -2,512,404 497,150 88,752 192,450 -1,734,052 0 -1,734,052 ACTUAL 2008/09 8,357 34.3 140% 16% 5:07 231,241 19,015 31,987 2,418 4,449 12 968 PROJECTED 2009/10 7,240 29.6 90% 18% 5:01 232,177 18,976 29,952 2,481 3,977 5 806 ESTIMATED 2010/11 6,744 27.5 100% 19% 4:45 229,072 18,434 28,909 2,464 3,848 10 880 Performance Measures Part I (Violent/Property) Crime Volume Part I Crime Rate per 1,000 Residents Homicide Clearance Rate (1) Total Property Crime Clearance Rate Average Response Time to Emergency Calls for Service Calls for Service Arrests Incident Reports Total Arrests for Driving Under the Influence (DUI) Total Traffic Collisions Total Traffic Collisions with Fatalities Total Traffic Collisions with Injuries These statistics are representative of core measures for law enforcement agencies as recommended by the International City/County Management Association's (ICMA) Center for Performance Management. These same measures are used to identify, prevent and reduce crime in the City, and are submitted to the Federal Government to compile National Uniform Crime Reporting (UCR). 1. FY 2008/09 includes homicide clearances from cold cases. 220 SuMMARY BY dIvISIon S PuBLIC SAFETy - POLICE Police Office of the Police Chief Police Uniformed Services Police Investigative Services Police Administrative Services Police Personnel Development Office of the Police Chief Patrol Services Gang Investigations Planning Research & Accreditation Recruiting & Personnel Photo Enforcement Violent Crime Investigations Internal Affairs Training Police Records Traffic Enforcement 221 Bicycle Patrol Sex Crimes Investigations Patrol High Enforcement Arrest Team Domestic Violence Investigations Canine Services Police Crisis Intervention Technology Police Supply Equipment Communications Property & Evidence Mounted Patrol Detention Burglary & Theft Investigations Event Traffic Control Drug Enforcement Special Event/ Off Duty Coordination Auto Crimes Investigations School Resource Services Financial Crimes Investigations Crime Laboratory Crime Analysis Crime Scene Processing Municipal Security & Emergency Preparedness Drug Interdiction Survelliance/SWAT Criminal Intelligence Computer Crime Investigation Repeat Offender Program Technical Operations City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 222 223 SuMMARY BY dIvISIon PuBLIC WORKS S Public Works Division The Public Works Division includes the following five departments: CAPITAL PROJECTS MANAGEMENT: Capital Projects Management oversees design, project management and construction of capital improvement projects such as streets, parks, stormwater, water and wastewater facilities, city and community buildings and WestWorld. The Real Estate program manages use of city owned land through revocable licenses, permits and/or leases that provide a financial return to the city and is also responsible for the acquisition of property interests that support the Capital Projects Management program. SOLID WASTE MANAGEMENT: Solid Waste Management provides residential refuse, curbside recycling, and brush/bulk collection services to 79,034 single family customers. They also provide commercial collection services six days a week to businesses, multi-family housing developments, and all city facilities and parks. Along with these collection programs Solid Waste provides landfill diversion programs such household hazardous waste, electronics recycling, moving box, white goods collections and cardboard baling. FLEET MANAGEMENT: Fleet Management maintains more than 1,200 city vehicles and equipment including police vehicles, fire trucks, refuse collection vehicles, street sweepers, pick-up trucks, vans, one-ton trucks, carts, backhoes, graders, and trailers. STREET OPERATIONS: Street Operations provides cost effective maintenance and environmental compliance through efficient management of transportation, traffic control and drainage system components. FACILITIES MANAGEMENT: The Facilities Management Department provides maintenance and repair services for 2,826,392 square feet of city-owned buildings, pathway lighting for parks and area lighting for parking lots. Skilled maintenance includes plumbing, electrical, HVAC, carpentry, concrete and metal work, and welding. The Strategic Space Planning program allows the City to more easily respond to organizational changes, budget for space needs and moves, more effectively use space in City facilities, and improve affinities among various City divisions. This Year 2009/2010 Highlights • Key construction projects completed include Appaloosa Library, CAP Water Treatment Plant Expansion, Scottsdale Center for the Performing Arts, South Corp Yard Crime Lab, Justice Center Remodel & Sally port, Indian Bend Road (Scottsdale to Hayden), Scottsdale Road (Frank Lloyd Wright to Thompson Peak Parkway), Cactus Road, Pima Road (Pinnacle Peak to Deer Valley), Osborn Road Pedestrian Islands, Miller Road Sewer (south of McDowell Road), Happy Valley Water line, Fuel Island Upgrades, and North Scottsdale Intelligent Transportation System. • Reduced the commercial collection fleet by two vehicles, saving fleet acquisition and maintenance fees of $72,000. • Completed the Fuel Sites Monitor Upgrade and Alternative Fuel (CNG) Slow-Fill Facility Expansion to effectively monitor fuel tank site activity and provide overnight fueling for alternative fuel (CNG) replacement Solid Waste Trucks. • Utilized grant funds from the American Recovery and Reinvestment Act of 2009 and Congestion Mitigation and Air Quality to overlay 10 miles of arterial roadway, install new traffic controllers at 50 percent of signalized intersections, and commence replacement of approximately 30% of city maintained street lights with more energy efficient fixtures. • Saved the City approximately $100,000 by accomplishing structural repairs to the roof at Fire Station 1 with City staff. Dan Worth Executive Director 224 SuMMARY BY dIvISIon 225 Priorities for 2010/2011 • Inform citizens of the 2010 Bond election and assist in the development of a possible 2011 bond program. • Negotiate extension of the intergovernmental agreement for landfill and related services with the Salt RiverPima Maricopa Indian Community through the year 2020. (The current agreement ends in 2015.) • Continue outreach efforts for further fleet equipment/fuel use reduction. • Maintain the city’s paved street system at an average condition index rating of 80 on a 100 point scale. • Identify and implement energy and water conservation programs to attain budgeted savings. S PuBLIC WORKS Highlighted Changes • No change to customer service fees for residential and commercial collection are recommended for FY 2010/11. • Fleet equipment reduction efforts have achieved annual cost savings in excess of $600,000. Outreach on fuel usage has resulted in nearly a four percent reduction over FY 2008/09. • Compressed Street Operations Division, Traffic Operations Division and Traffic Management Center into a single service achieving a 10 percent reduction in workforce with marginal reduction in service level and increased efficiencies through a new organization model which shares staff by skill based task assignments between individual cost centers. • Implementation of the new Computer Aided Facilities Management and Work Order system will allow better service through better facilities management techniques. • As part of the ARRA grant program, building energy audits will be performed and future energy reduction projects will be developed. Public Works Capital Project Management Solid Waste Management Facilities Management Fleet Management Street Operations Real Estate Commercial Collection Services Facilities Maintenance Fleet Maintenance & Operations Alley Maintenance Container Repair Services Facilities Management, Planning & Administration Household Hazardous Waste Contract Administration Residential Collection Services Space Planning Capital Projects Management Solid Waste Management Administration Services Emergency Response Team Fleet Management Administration Street Cleaning Fleet Parts Supply Street Light Maintenance Fuel Street Operations Administration Vehicle Acquisition Street Overlays & Maintenance Transfer Station Operations Street Signs & Markings Traffic Signals Unpaved Roads & Drainage System Maintenance Intelligent Transportation Systems SuMMARY BY dIvISIon S PuBLIC WORKS Staff Summary ACTUAL 2008/09 323.00 APPROVED 2009/10 295.00 ADOPTED 2010/11 295.00 11.58 % CHANGE 09/10 TO 10/11 0.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 13,234,751 17,684,695 0 17,819,437 15,926,075 64,664,958 13,606,703 18,360,893 0 17,643,896 16,290,480 65,901,972 15,385,171 17,659,448 666,514 14,935,409 15,659,117 64,305,659 1,778,468 -701,445 666,514 -2,708,487 -631,363 -1,596,313 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 21,043,579 32,852,881 8,396,323 2,372,176 64,664,958 0 64,664,958 18,341,917 35,633,242 9,679,642 2,247,171 65,901,972 0 65,901,972 18,105,050 32,357,080 10,109,092 3,734,437 64,305,659 0 64,305,659 -236,867 -3,276,162 429,450 1,487,266 -1,596,313 0 -1,596,313 ACTUAL 2008/09 Facilities scheduled preventive maintenance tasks completed n/a Custodial services satisfaction rating n/a Average pounds of recyclable material collected per account 710 Average monthly cost to the customer for residential solid waste services $15.96 Fleet maintenance/repair vehicles completed < 1 day 75.2% Fleet direct labor hours billed as % of hours available 70.4% Road rehabilitation expenditures per paved lane mile (1) $2,753 Operating and maintenance expenditures per linear mile swept $25.57 Capital Project Management expense allocation as a percentage 5.5% of managed capital projects Number of real estate leases/licenses managed per employee 71 (1.75 FTE committed to lease/license management) PROJECTED 2009/10 95% 95% 718 $15.96 85.7% 71% $1,230 $25.30 5.8% ESTIMATED 2010/11 95% 95% 724 $15.96 80.0% 72% $2,700 $25.30 6.3% 80 85 Full-time Equivalents (FTE) % of City's FTEs Funding Source Fleet Management Fund General Fund Grants Fund Highway User Fund Solid Waste Management Fund Total Division Budget Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget Performance Measures 1. Approximately $4.4 million in ARRA pavement overlay funding originally anticipated for expenditure in 2009/10 will be completed in 2010/11. 226 227 SuMMARY BY dIvISIon WATER RESOuRCES S Water Resources Division Committed to providing efficient, high quality service to Scottsdale citizens by planning, managing and operating safe, reliable water systems, the Water Resources Division comprises four major program areas: Engineering and Administration, Water Services, Reclamation Services, and Water Quality. Engineering and Administration provides engineering, financial, planning and management support for the division and directly manages the Water Conservation program and Planet Ranch operations. Water Services manages the drinking water system, which provides service to approximately 95% of all incorporated areas within Scottsdale along with treatment and transport of potable water to neighboring areas of Maricopa County and Carefree. Reclamation Services manages the city's sanitary sewer system which serves most of the incorporated area within Scottsdale along with neighboring areas including Paradise Valley. Water Quality manages all aspects of both water and wastewater quality including water and wastewater laboratory services, management of the industrial pretreatment program, and ensuring that the City meets or surpasses all regulatory compliance requirements. This Year 2009/2010 Highlights • Regulatory Compliance: met all drinking water, wastewater and superfund program federal, state and local regulations. Completed installation of a regulatory compliance database to assist in the tracking of all monitoring requirements for the drinking water system. Published an annual report designed to communicate water quality information to customers in compliance with United States Environmental Protection Agency requirements. • Management: renegotiated the effluent sales contract between Multi-city SubRegional Operating Group (SROG) member cities and the Palo Verde Nuclear Generating Station to increase revenue off sets to the costs of operating the SROG 91st Avenue Wastewater Treatment Plant, incorporated standardized benchmarking and implemented a refined staffing organization to create efficiencies, provide organizational clarity and consistency, improve opportunities for succession planning and professional growth, facilitate better communication, clarify accountability and help retain quality employees. • Efficiency Efforts: redirected wastewater flows to minimize pumping costs at two of the City’s largest wastewater pump stations and imitated the replacement of current blowers with more energy efficient turbo blowers at multiple facilities. • System Improvements: converted the Reservoir 80 disinfection system to onsite chlorine generation, completed improvements to the Gainey Ranch Water Reclamation Plant (WRP), completed a new 6.5 million gallon reservoir and an additional 20 million gallon per day (MGD) membrane treatment facility (Plant 3) at the at the CAP Water Treatment Plant. • Asset Management: an enhanced Asset Management Program (AMP) was installed on the computers of key staff members and training was supplied to staff. Staff began utilizing the program to improve maintenance strategies and budget forecasting. Marshall Brown Executive Director 228 SuMMARY BY dIvISIon 229 Priorities for 2010/2011 • System Optimization: initiate the process to develop and implement strategies and tools to improve efficiency of the City’s water and wastewater systems, while at the same time recognizing a number of constraints including, but not limited to, water quality, supply sustainability, and energy consumption. This optimization effort will also capture valuable institutional knowledge by documenting unique operator perspectives and incorporating the most effective perspectives into optimization controls and software thereby resulting in a valuable tool for future system operation. • Efficiency Efforts: explore options for reducing the future costs of acquiring Granular Activated Carbon (GAC). This commodity is an integral part of the City’s water treatment process, but changing regulatory requirements and increases in GAC pricing justify exploring cost effective alternatives. The primary alternative identified is a potential partnership with private industry to establish a local facility that will reactivate spent GAC here in the Valley. This would establish a local, cost S WATER RESOuRCES effective supply of GAC for Scottsdale and other Valley cities. • Advanced Water Treatment (AWT): complete the AWT expansion to facilitate additional groundwater replenishment and meet the needs identified by the golf courses receiving effluent from the Water Campus. The golf courses are contributing 100% of the funding necessary to complete the AWT Plant expansion associated with their needs. This expansion also will implement additional measures (Advanced Oxidation) to improve water quality and in particular, provide protection from contaminants of potential concern (such as pharmaceuticals and endocrine disrupters). • Enhance Water Conservation and Wastewater Pretreatment programs. • Planet Ranch: complete the transfer of the Planet Ranch property for habitat conservation purposes. The City entered into a purchase contract with Freeport McMoran, which is expected to close by December 2010. Upon closing, the City will receive $12 million in cash and 50,000 acre-feet of Verde River water credits. Highlighted Changes • Personnel Services cost increases for nine new FTE’s to operate and maintain the expanded Advanced Water Treatment Plant and support enhanced Fats, Oils & Grease Program compliance efforts. • Contractual Services cost decreases due to a lower share of net operating costs for the Multi-City 91st Avenue Wastewater Treatment Plant resulting from better plant utilization and a renegotiated effluent sales contract with the Palo Verde Nuclear Generating Station. • Commodities - cost increases for additional treatment filter media (GAC) to comply with disinfection byproduct regulations (accounting for $2.3 million of the Water Resource Division’s overall $2.4 million budget increase). Various efficiencies/ actions/factors allowed the division to absorb significant cost increases including CAP water delivery costs, electricity rates, and chemical prices. Water Resources Engineering & Administration Water Services Reclamation Services Water Quality Engineering Water Treatment Wastewater Collection Quality Compliance Planning & Administration Water Distribution Wastewater Treatment Laboratory Water Reuse & Recharge Industrial Pretreatment Water Conservation SuMMARY BY dIvISIon S WATER RESOuRCES Staff Summary Full-time Equivalents (FTE) % of City's FTEs ACTUAL 2008/09 179.00 APPROVED 2009/10 180.00 ADOPTED 2010/11 189.00 7.42 % CHANGE 09/10 TO 10/11 9.00 ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 703,756 904,095 45,987 3,372,774 12,564,962 162,163 38,713,075 56,466,812 992,722 886,395 51,850 3,727,480 14,566,623 231,750 42,470,357 62,927,177 945,601 935,426 51,880 3,745,408 15,939,730 216,732 43,519,893 65,354,670 -47,121 49,031 30 17,928 1,373,107 -15,018 1,049,536 2,427,493 Funding Source GW Trtmnt Facility Fund IWDS Fund Inlet GC Irrigation Fund Non-Potable RWDS Fund Sewer Fund WW Golf Fund Water Fund Total Division Budget 230 Expenditures By Type Personnel Services Contractual Services Commodities Capital Outlays SubTotal Operating Budget Operating Projects Total Division Budget ACTUAL 2008/09 APPROVED 2009/10 ADOPTED 2010/11 CHANGE 09/10 TO 10/11 14,964,322 23,438,522 17,727,902 336,066 56,466,812 0 56,466,812 14,372,634 27,347,320 21,207,223 0 62,927,177 0 62,927,177 15,027,261 26,203,816 24,001,593 122,000 65,354,670 0 65,354,670 654,627 -1,143,504 2,794,370 122,000 2,427,493 0 2,427,493 ACTUAL 2008/09 69.4 9.6 5.7 19.7 790 $1,834 PROJECTED 2009/10 68.4 11.2 6.9 21.0 768 $1,737 ESTIMATED 2010/11 71.0 11.4 7.0 21.5 761 $1,760 $401 43,646 6,536 358 $386 34,114 7,063 654 $403 35,360 7,000 1,200 Performance Measures Drinking Water Delivered – Million Gallons Per Day (MGD) Reclaimed Water Reused - MGD Water Recharged - MGD Wastewater Treated - MGD Customer Accounts Per Employee Combined Water/Wastewater Operation and Maintenance (O&M) Average Expenses Per MGD Combined Water/Wastewater O&M Average Expenses Per Account Water Conservation Customer Contacts Water Meters Replaced To Increase Revenue & Water Accountability Restaurant Grease Removal Systems Inspected City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 231 APPendIx AuThORIzED PERSONNEL POSITIONSBy DIVISIONS Actual FY 2008/2009 Adopted FY 2009/2010 Approved FY 2009/2010 Adopted FY 2010/2011 MAYOR AND CITY COUNCIL Full Time Total FTE 12.00 12.00 11.00 11.00 10.00 10.00 10.00 10.00 CITY ATTORNEY Full Time Part Time Total FTE 60.00 1.75 61.75 57.00 2.25 59.25 56.00 1.50 57.50 56.00 1.50 57.50 Full Time Total FTE 8.00 8.00 7.00 7.00 7.00 7.00 7.00 7.00 CITY CLERK Full Time Total FTE 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 CITY COURT Full Time Part Time Total FTE 65.00 1.38 66.38 62.00 2.48 64.48 60.00 2.48 62.48 60.00 2.48 62.48 9.00 9.00 8.00 8.00 8.00 8.00 7.00 7.00 FINANCE AND ACCOUNTING Full Time Part Time Total FTE 108.00 2.50 110.50 96.00 2.50 98.50 92.00 0.50 92.50 94.00 0.50 94.50 ADMINISTRATIVE SERVICES Full Time Part Time Total FTE 38.00 0.50 38.50 38 50 37.00 0.00 37.00 37 00 35.00 0.00 35.00 35 00 35.00 0.00 35.00 35 00 322.00 209.33 11.75 543.08 292.00 197.80 11.75 501.55 285.00 192.57 11.75 489.32 285.00 190.83 11.75 487.58 54.00 54.00 51.00 51.00 47.00 47.00 48.00 48.00 CITY AUDITOR CITY MANAGER Full Time Total FTE COMMUNITY SERVICES Full Time Part Time Grant Total FTE ECONOMIC VITALITY Full Time Total FTE HUMAN RESOURCES Full Time Part Time Total FTE 35.00 0.50 35.50 35.00 0.50 35.50 29.00 1.00 30.00 29.00 1.50 30.50 INFORMATION TECHNOLOGY Full Time Part Time Total FTE 81.00 0.81 81.81 81.00 0.81 81.81 78.00 0.81 78.81 75.00 0.81 75.81 PLANNING/NEIGHBORHOOD/TRANSPORTATION Full Time 237.00 Part Time 3.00 Total FTE 240.00 182.00 2.00 184.00 179.00 2.50 181.50 178.00 2.50 180.50 PUBLIC SAFETY - FIRE Full Time Total FTE 268.00 268.00 267.00 267.00 265.00 265.00 268.00 268.00 PUBLIC SAFETY - POLICE Full Time Part Time Total FTE 711.00 2.60 713.60 704.00 2.60 706.60 686.00 2.60 688.60 686.00 2.60 688.60 PUBLIC WORKS Full Time Total FTE 323.00 323.00 301.00 301.00 295.00 295.00 295.00 295.00 WATER RESOURCES Full Time Total FTE 179.00 179.00 184.00 184.00 180.00 180.00 189.00 189.00 2,520.00 222.37 11.75 2,754.12 2,385.00 210.94 11.75 2,607.69 2,322.00 203.96 11.75 2,537.71 2,332.00 202.72 11.75 2,546.47 Total Full-time Position FTE Total Part-time Position FTE Total Grant Funded Position FTE Total Citywide Position FTE A NOTE: Thebudgetincludesfundingforvarious servicesrenderedbytemporaryorseasonal staffing,whichisnotincludedinthe calculationofthefulltimeequivalent(FTE) count.TheseslotsareshortͲtermand/or transitionalinnaturesuchasthoseinthe PoliceandFirepipelines.Thenumberof slotslistedbelowrepresentsthenumberof positionsallocatedtoeachservicearea. TheHumanResourcesDepartmentusesthe numberofslotsallocatedsolelyfor administrativecontrolpurposes.Fiscal controlfortheseslotsismaintained throughthebudget.However,duetothe limitednatureoftheservicesperformedby theseslots,theyarenotconsideredpartof theCity’soverallFTEcount. RecreationSpecialistsͲ areforupto240 seasonalslotsthroughoutvarioustimesof theyear.Thefundingfortheseslotsis includedintheCommunityServices Divisionbudget. PoliceReserveOfficersͲ provideresources toassistthePoliceDepartmentwith sporadicspikesintheworkloadorspecial projects.Whenneeded,upto11retired officerslotsareavailabletoassist.Funding fortheseslotsisincludedinthePublic Safety Division PoliceDepartmentbudget. Police Department budget SafetyDivisionͲ PolicePipelineOfficersͲ areusedforupto 5cadetslotswhiletheyareinthepolice academyoraftercompletingtheacademy andwaitingforaswornpoliceposition. Thefundingfortheseslotsisincludedinthe PublicsafetyDivisionͲ PoliceDepartment budget. FirePipelineFirefightersͲ areusedforupto 24cadetslotswhiletheyareinthefire academyoraftercompletingtheacademy andwaitingforaswornfireposition.There isnofundinginFY2010/11fortheseslots asnoacademyisplanned. ProͲTemJudgesͲ isusedtocompensateup to24ProͲTemJudgeslotsthatserveonan “asneeded”basistosupporttheCityJudge andAssociateCityJudges.Thefundingfor theseslotsisincludedintheCityCourt budget. WestWorldhas13slotsusedto compensateupto2CustodialWorkers,4 CustomerServiceClerks,5Maintenance Helpersand2OfficeAssistants.The fundingfortheseslotsisincludedinthe WestWorldbudget. TemporaryWorkersͲ areslotsusedwhen theworkcircumstancesnecessitatea temporaryassignmentorreassignmentof anemployee.WhiletheHumanResources Divisionmanagesthese20slots,nofunding isincludedinthebudgetfortheseslots. Fundingwouldtypicallycomefromwithina division’sacceptedbudget. 232 APPendIx A AuThORIzED PERSONNEL POSITIONSBy FuND Adopted FY 2010/2011 General Fund Transportation Special Revenue Enterprise Internal Service Total 10.00 10.00 10.00 10.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.00 10.00 Full Time 56.00 56.00 0.00 0.00 0.00 0.00 56.00 Part Time 1.50 1.50 0.00 0.00 0.00 0.00 1.50 Total FTE 57.50 57.50 0.00 0.00 0.00 0.00 57.50 Full Time 7.00 7.00 0.00 0.00 0.00 0.00 7.00 Total FTE 7.00 7.00 0.00 0.00 0.00 0.00 7.00 Full Time 10.00 10.00 0.00 0.00 0.00 0.00 10.00 Total FTE 10.00 10.00 0.00 0.00 0.00 0.00 10.00 60.00 MAYOR AND CITY COUNCIL Full Time Total FTE CITY ATTORNEY CITY AUDITOR CITY CLERK CITY COURT Full Time 60.00 47.00 0.00 13.00 0.00 0.00 Part Time 2.48 0.60 0.00 1.88 0.00 0.00 2.48 Total FTE 62.48 47.60 0.00 14.88 0.00 0.00 62.48 Full Time 7.00 7.00 0.00 0.00 0.00 0.00 7.00 Total FTE 7.00 7.00 0.00 0.00 0.00 0.00 7.00 Full Time 94.00 63.00 0.00 0.00 24.00 7.00 94.00 Part Time 0.50 0.50 0.00 0.00 0.00 0.00 0.50 Total FTE 94.50 63.50 0.00 0.00 24.00 7.00 94.50 Full Time 35.00 35.00 0.00 0.00 0.00 0.00 35.00 Total FTE 35.00 35.00 0.00 0.00 0.00 0.00 35.00 Full Time 285.00 283.00 0.00 2.00 0.00 0.00 285.00 Part Time 190.83 180.54 0.00 10.29 0.00 0.00 190.83 11.75 0.00 0.00 11.75 0.00 0.00 11.75 487.58 463.54 0.00 24.04 0.00 0.00 487.58 Full Time 48.00 34.00 0.00 0.00 14.00 0.00 48.00 Total FTE 48.00 34.00 0.00 0.00 14.00 0.00 48.00 Full Time 29.00 29.00 0.00 0.00 0.00 0.00 29.00 Part Time 1.50 1.50 0.00 0.00 0.00 0.00 1.50 Total FTE 30.50 30.50 0.00 0.00 0.00 0.00 30.50 Full Time 75.00 75.00 0.00 0.00 0.00 0.00 75.00 Part Time 0.81 0.81 0.00 0.00 0.00 0.00 0.81 Total FTE 75.81 75.81 0.00 0.00 0.00 0.00 75.81 Full Time 178.00 157.00 21.00 0.00 0.00 0.00 178.00 Part Time 2.50 2.50 0.00 0.00 0.00 0.00 2.50 Total FTE 180.50 159.50 21.00 0.00 0.00 0.00 180.50 CITY MANAGER FINANCE AND ACCOUNTING ADMINISTRATIVE SERVICES 233 COMMUNITY SERVICES Grant Total FTE ECONOMIC VITALITY HUMAN RESOURCES INFORMATION TECHNOLOGY PLANNING/NEIGHBORHOOD/TRANSPORTATION PUBLIC SAFETY - FIRE Full Time 268.00 268.00 0.00 0.00 0.00 0.00 268.00 Total FTE 268.00 268.00 0.00 0.00 0.00 0.00 268.00 Full Time 686.00 682.00 0.00 4.00 0.00 0.00 686.00 Part Time 2.60 2.60 0.00 0.00 0.00 0.00 2.60 Total FTE 688.60 684.60 0.00 4.00 0.00 0.00 688.60 Full Time 295.00 99.00 60.00 0.00 89.00 47.00 295.00 Total FTE 295.00 99.00 60.00 0.00 89.00 47.00 295.00 Full Time 189.00 0.00 0.00 0.00 189.00 0.00 189.00 Total FTE 189.00 0.00 0.00 0.00 189.00 0.00 189.00 Total Full-time Position FTE 2,332.00 1,862.00 81.00 19.00 316.00 54.00 2,332.00 Total Part-time Position FTE 202.72 190.55 0.00 12.17 0.00 0.00 202.72 11.75 0.00 0.00 11.75 0.00 0.00 11.75 2,546.47 2,052.55 81.00 42.92 316.00 54.00 2,546.47 PUBLIC SAFETY - POLICE PUBLIC WORKS WATER RESOURCES Total Grant Funded Position FTE Total Citywide Position FTE SeeNoteon previouspage APPendIx BuDgET LIAISONS AND CIP LIAISONS A Budget Liaisons and CIP Liaisons coordinate the budget within their respective divisions. The Budget Liaison serves as the vital communication link between their City divisions and Finance and Accounting on matters related to their specific operating budget. Budget Liaisons are responsible for review and analysis coordinating information, checking to see if forms are completed properly, making sure that all necessary documentation is submitted, monitoring the internal review process to meet timelines, and serving as troubleshooters for problems throughout the budget process. The CIP Liaisons (identified with an asterisk) essentially serve the same role; however, their focus is on coordination of capital projects and multiyear capital planning with the Finance and Accounting Division staff. In many cases the same individual serves both roles. Mayor & City Council Janet Secor Public Safety – Fire Teresa Martin/Rich upham* Economic Vitality Kathy Montalvo* City Manager Monica Staats City Attorney Jane Callahan Public Safety - Police holly Christian*/Melissa Miller human Resources Valerie Wegner* Finance and Accounting Monica Staats* City Auditor Joyce gilbride Public Works Teri huston Information Technology Jennifer Jensen* Administrative Services Monica Staats City Clerk Laura zook Water Resources John Ralston/Ron Dolan* Planning, Neighborhoods & Transportation Dan Vandenham Community Services Bryan Bundy/Tim Barnard* City Court Jack Miller* 234 APPendIx A DEBT SERVICE ExPENSE DEBT SERVICE EXPENSE - ALL FUNDS General Fund Contracts Payable U.S. Corps of Engineers - IBW US Patent Office BOR Administration/Westworld BOR Administration/TPC Nordstrom Garage Lease (4% growth) Nordstrom Garage Sales Tax Waterfront Construction Sales Tax Rebate Hotel Valley Ho (max. 2M or 16 yr thru 2019-Caferella) (3% growth) Stacked 40's/Lund - Retail Sales Tax Rebate (max. 5,500,000 plus int.) Stacked 40's/Lund - Construction Sales Tax Rebate Total General Fund Contracts Payable Certificates of Participation (COP) 2005 Certificates of Participation - Fire & Police Building Fiscal Agent Fees Future COP - Police/Fire Radio Communication Equip.(Nov 10) Fiscal Agent Fees ($1,000 per issue) Total Certificates of Participation Total General Fund 235 Debt Service Funds General Obligation Bonds - Property Tax (Secondary) Supported 1993 G. O. Refunding 1997 G.O. Refunding Bonds 1989 G.O. Series I (1998) 1999A G.O. Bonds 2001 G.O. Refunding Bonds-6% & 20% 2002 Various Purpose G.O. Bonds-6% & 20% (28M iss. 5/02) 2002 G.O. Refunding Bonds-6% & 20% 2003 G.O. Refunding Bonds-6% & 20% (16,265,000 iss. 9/03) 2004 G.O. Var. Purpose-6% & 20% (48M iss. 4/04) 2005 G.O. Refunding Bonds-6% & 20% (8,542,000 iss. 3/05) 2005A G.O. Var. Purpose-6% & 20% (125M iss. 12/05) 2008A G.O. Var. Purpose-20% (100M iss. 4/08) Prior year adjustment Fiscal Agent Fees Future G.O. Bond-Series 2010 Var. Purpose-20% ($50.8M iss. 4/10) Fiscal Agent Fees (Future Bonds @ $1,000/bond) Total General Obligation Bonds Preserve General Obligation Bonds - Preserve Sales Tax Supported 1999 Preserve G.O. Bonds (1995 tax) 2001 Preservation G.O. Bonds (1995 tax) 2001 G.O. Refunding Bonds-Preservation Portion (1995 tax) 2002 G.O. Bonds-Preservation Portion (40M iss. 5/02, prev. 70M) (1995 tax) 2002 G.O. Refunding Bonds-Preservation Portion (1995 tax) 2004 Preservation GO (65.4M, iss. 4/04) (1995 tax) 2005 G.O. Refunding Bonds-Preservation Portion (66.088M 3/05) (1995 tax) 2005B G.O. Bonds-Preservation Portion (20M 12/05) (2004 tax) 2008B G.O. Bonds-Preservation Portion (20M 04/08) (2004 tax) Prior year adjustment Fiscal Agent Fees (1995 tax) Future G.O. Bond: $200M issue Jan 2011 (2004 tax) Fiscal Agent Fees (Future Bonds @ $1,000/bond) (2004 tax) Preserve General Obligation Bonds - Preserve Sales Tax Supported Forecast Forecast Forecast Forecast Forecast Forecast Final Final Payment 2009/10 20010/11 2011/12 2012/13 2013/14 2014/15 Date 231,166 3,054 110,250 110,250 2,092,697 44,993 135,000 2,727,410 231,166 115,763 115,763 2,393,316 51,456 159,307 3,066,770 231,166 121,551 121,551 2,044,926 43,966 164,086 1,309,540 50,000 4,086,785 231,166 127,628 127,628 2,126,723 45,725 172,290 388,870 3,220,030 231,166 134,010 134,010 2,211,792 47,554 184,351 349,036 3,291,918 231,166 140,710 140,710 2,300,264 49,456 200,942 359,507 3,422,754 2032 2009 2033 2035 2028 2028 2015 2019 2014 2014 916,790 2,000 916,790 2,000 2,621,200 1,000 3,540,990 916,790 2,000 2,620,913 1,000 3,540,703 916,790 2,000 2,623,675 1,000 3,543,465 916,790 2,000 2,624,375 1,000 3,544,165 6/30/15 1,000 919,790 916,790 2,000 510,800 1,000 1,430,590 3,647,200 4,497,360 7,627,775 6,760,733 6,835,383 6,966,919 4,027,000 177,800 367,650 550,500 8,772,725 5,933,731 2,088,125 427,000 8,540,750 4,362,469 2,181,235 5,400 431,229 1,000 37,866,614 2,418,950 177,800 3,007,650 1,638,000 10,359,475 1,965,556 2,088,125 427,000 8,660,750 4,362,469 1,398,725 177,800 4,425,750 7,702,000 1,438,244 2,088,125 3,142,000 9,520,750 4,362,469 1,398,275 177,800 - 1,424,250 177,800 - 177,800 - 6,316,000 1,424,844 2,088,125 4,591,250 10,295,750 7,437,469 6,319,500 6,088,125 1,601,250 10,520,750 7,612,531 6,334,250 7,363,125 10,720,750 7,828,656 5,400 2,798,125 1,000 37,910,300 5,040 2,879,125 1,000 37,141,027 4,680 2,958,125 1,000 36,693,317 4,320 3,035,125 1,000 36,784,651 3,960 3,147,625 06/30/30 1,000 35,577,166 1,488,913 277,613 360,693 7,323,300 2,838,128 1,662,619 1,325,281 2,318,913 277,613 360,693 5,993,300 2,838,128 1,651,619 1,335,281 4,959,300 277,613 360,693 4,418,300 2,838,128 1,655,369 1,319,531 4,415,369 277,613 360,693 4,313,300 5,843,128 1,631,619 1,327,469 2,100 4,329,993 1,000 19,609,640 1,960 9,330,872 1,000 24,109,379 1,820 9,514,747 1,000 25,346,501 1,680 9,927,894 1,000 28,099,765 1,488,913 277,613 360,693 5,978,300 2,838,128 1,672,619 1,340,281 (2,181,235) 2,100 11,777,412 2,720,519 277,613 360,692 2,108,300 7,532,878 1,631,619 1,334,594 6/30/20 06/30/09 06/30/14 06/30/18 06/30/09 06/30/12 06/30/11 06/30/16 06/30/13 06/30/21 06/30/14 06/30/24 06/30/28 06/30/09 06/30/09 06/30/22 06/30/24 06/30/19 06/30/25 06/30/24 06/30/24 06/30/34 1,540 10,367,787 06/30/34 1,000 26,336,542 APPendIx A DEBT SERVICE ExPENSE DEBT SERVICE EXPENSE - ALL FUNDS Scottsdale Preserve Authority Bonds - Preserve Sales Tax Supported 1998 Scottsdale Preserve Revenue Bonds (1995 tax) 2001 Scottsdale Preserve Revenue Refunding Bonds (1995 tax) 2004 Scottsdale Preserve Revenue Refunding Bonds (1995 tax) Fiscal Agent Fees Corporation Annual Report Total Scottsdale Preserve Authority Bonds McDowell Sonoran Preserve Contract - Preserve Sales Tax Supported (1995 tax) Municipal Property Corp. (MPC) Bonds - Excise Tax Supported 2004A MPC SkySong Bonds 2005 MPC Giants Practice Field ($6.648M, June 2005) MSA funded 2005 MPC Giants Practice Field ($13.297M, June 2005) TSA funded 2005D MPC Westworld Land Acquisition ($46.5M, Dec 2005) 2006 MPC Refunding WestWorld 2006 MPC Refunding SkySong 2006A MPC TPC (10Mil, Nov 2006) 2006B MPC Westworld Land Acquisition ($32.5M, Nov 2006) Excise Tax Funded 2006B MPC Westworld Land Acquisition ($32.5M, Nov 2006) Bed Tax Funded Fiscal Agent Fees Corporation Annual Report Future Bonds - Loloma Museum ($2.779M Mar 2011) Excise Tax funded Future Bonds - Loloma Museum ($3.75M Mar 2011) Bed Tax funded Fiscal Agent Fees (Future Bonds @ $1,000/bond) Subtotal: MPC - General Fund/Excise Tax funded MPC - Bed Tax funded MPC - MSA funded MPC - TSA funded Total Municipal Property Corp. Bonds Special Assessments Series 104 Contract Existing Districts (excluding ID 104) Fiscal Agent Fees Total Special Assessments Total Debt Service Funds Forecast Forecast Forecast Forecast Forecast Forecast Final Final Payment 2009/10 20010/11 2011/12 2012/13 2013/14 2014/15 Date 1,680,275 1,515,976 3,535,500 2,000 10 6,733,761 1,680,275 1,515,320 3,503,500 2,000 10 6,701,105 1,680,275 1,517,920 3,487,500 2,000 10 6,687,705 1,680,275 1,517,870 3,475,750 2,000 10 6,675,905 1,680,275 1,519,625 3,462,750 2,000 10 6,664,660 1,680,275 06/30/24 1,513,313 06/30/22 3,473,250 06/30/16 2,000 10 6,668,848 951,855 954,175 953,750 955,500 - - 06/30/13 1,323,175 204,028 408,116 1,140,000 1,274,250 1,498,250 645,906 800,594 600,000 9,625 10 1,323,275 112,370 224,774 1,128,750 1,274,250 1,498,250 650,706 800,594 600,000 9,625 10 108,390 146,263 1,000 1,322,400 369,011 738,133 1,117,500 1,274,250 1,498,250 649,906 1,750,594 600,000 9,625 10 212,555 286,823 1,000 1,320,550 287,353 574,791 1,106,250 1,274,250 1,498,250 648,706 1,762,594 600,000 9,625 10 220,220 297,166 1,000 1,320,150 530,177 1,060,512 1,695,000 1,274,250 1,498,250 647,106 1,772,594 600,000 9,625 10 224,630 303,117 1,000 1,322,650 439,119 878,370 1,753,750 1,274,250 1,498,250 650,106 1,780,594 600,000 9,625 10 227,999 307,664 1,000 6,691,810 600,000 204,028 408,116 6,794,850 746,263 112,370 224,774 7,836,090 886,823 369,011 738,133 7,841,455 897,166 287,353 574,791 8,442,615 903,117 530,177 1,060,512 8,518,234 907,664 439,119 878,370 7,903,954 7,878,257 9,830,057 9,600,765 10,936,421 10,743,387 8,574 868,125 450 877,149 5,059 834,375 450 839,884 2,917 800,625 450 803,992 3,481 766,875 450 770,806 - 66,110,745 73,893,361 79,525,910 80,042,794 82,485,497 79,325,943 300,850 131,142 3,323,850 1,710,396 400 5,466,638 298,734 119,444 3,300,466 1,700,431 400 5,419,475 299,452 123,953 3,308,398 1,704,272 400 5,436,475 263,450 125,756 2,910,650 1,705,807 400 5,006,063 86,245 145,392 952,855 3,793,646 400 4,978,538 86,619 956,981 3,495,838 400 4,539,838 06/30/16 06/30/14 06/30/16 06/30/23 2,864,400 3,231,500 4,937,178 1,041,600 588,322 5,796,286 1,794,089 3,625 2,792,533 3,196,500 4,937,178 1,015,467 588,322 5,788,650 1,791,725 3,625 3,551,900 1,000 23,666,900 2,763,383 3,171,500 4,937,178 1,004,867 588,322 5,778,150 1,788,475 3,625 3,666,500 544,764 1,000 24,247,764 2,729,650 3,166,500 4,937,178 992,600 588,322 5,781,968 1,789,657 3,625 3,797,500 1,420,510 2,000 25,209,510 3,155,250 8,153,872 971,628 5,780,059 1,789,066 3,000 3,929,900 1,844,764 3,365,719 3,000 28,996,258 06/30/14 06/30/16 06/30/30 06/30/14 06/30/30 06/30/32 06/30/32 20,257,000 2,824,800 3,216,500 4,937,178 1,027,200 588,322 5,793,995 1,793,380 3,625 4,158,677 1,000 24,344,677 25,723,638 29,764,152 29,103,375 29,253,827 30,188,048 33,536,096 95,481,583 108,154,873 116,257,061 116,057,354 119,508,927 119,828,958 18,631,363 3,012,900 21,644,263 19,946,027 7,318,893 27,264,920 19,432,062 12,318,772 31,750,834 20,487,259 12,490,647 32,977,906 21,876,443 12,887,982 34,764,425 19,670,390 13,335,000 33,005,390 06/30/19 06/30/21 06/30/21 06/30/35 06/30/30 06/30/34 06/30/31 06/30/31 06/30/31 06/30/30 06/30/30 236 - 01/01/13 - 01/01/13 - Water and Sewer Funds Water Sewer Revenue Bonds 2004 Water Sewer Revenue Refunding Bonds-Water Portion 2008 Water Sewer Revenue Refunding Bonds-Water Portion 2004 Water Sewer Revenue Refunding Bonds-Sewer Portion 2008 Water Sewer Revenue Refunding Bonds-Sewer Portion Fiscal Agent Fees Total Water Sewer Revenue Bonds Municipal Property Corp. (MPC) Bonds 2004 Water & Sewer MPC Bonds-Water Portion 2005E Water & Sewer MPC Bonds 2006 MPC Refunding Water/Sewer MPC Bonds-Water Portion 2004 Water & Sewer-Sewer Portion 2006 MPC Refunding Water/Sewer-Sewer Portion 2008A MPC Bonds-Water Portion 2008A MPC Bonds-Sewer Portion Fiscal Agent Fees Future Revenue Bonds - Water/Sewer ($75 mil 4/2010) Future Revenue Bonds - Water/Sewer ($26 mil 11/2012) Future Revenue Bonds - Water/Sewer ($62 mil 11/2014) Fiscal Agent Fees (Future Bonds @ $1,000/bond) Total MPC Bonds - Water and Sewer Supported Total Water and Sewer Funds TOTAL DEBT SERVICE Preserve Debt Service segregated by tax funding source: 1995 .20% Tax 2004 .15% Tax 06/30/36 06/30/37 06/30/39 APPendIx A LONg-TERM DEBT OuTSTANDINg Long-Term Debt Outstanding - All Funds As of 6/30/10 through 6/30/14 Balance at 6/30/10 General Fund Contracts Payable U.S. Corps of Engineers - IBW BOR Administration/Westworld BOR Administration/TPC Total General Fund Contracts Payable Balance at 6/30/12 Balance at 6/30/13 Final Payment Date Balance at 6/30/14 2,795,135 4,796,095 5,525,008 13,116,238 2,706,967 4,680,333 5,409,246 12,796,546 2,614,288 4,558,782 5,287,695 12,460,765 2,516,868 4,431,154 5,160,067 12,108,089 2,414,464 4,297,145 5,026,057 11,737,666 6/30/32 7/29/33 6/10/35 4,194,561 4,194,561 3,409,567 19,300,000 22,709,567 2,598,496 17,445,000 20,043,496 1,760,479 15,530,000 17,290,479 894,622 13,550,000 14,444,622 6/30/15 6/30/20 17,310,799 35,506,113 32,504,261 29,398,568 26,182,288 5,890,000 4,445,000 6,840,000 1,560,000 33,025,000 4,505,000 48,000,000 8,540,000 113,250,000 100,000,000 50,800,000 376,855,000 3,795,000 4,445,000 4,200,000 24,230,000 2,710,000 48,000,000 8,540,000 109,750,000 100,000,000 49,850,000 355,520,000 2,605,000 4,445,000 17,720,000 1,375,000 48,000,000 5,825,000 105,250,000 100,000,000 48,800,000 334,020,000 1,350,000 4,445,000 12,290,000 48,000,000 1,525,000 99,750,000 96,925,000 47,650,000 311,935,000 4,445,000 6,585,000 44,000,000 93,750,000 93,575,000 46,400,000 288,755,000 6/30/14 6/30/18 6/30/12 6/30/11 6/30/16 6/30/13 6/30/21 6/30/14 6/30/24 6/30/28 6/30/30 Preserve General Obligation Bonds - Preserve Sales Tax Supported 2001 G.O. Refunding Bonds-Preservation Portion 2002 G.O. Bonds-Preservation Portion 2002 G.O. Refunding Bonds-Preservation Portion 2004 Preservation GO 2005 G.O. Refunding Bonds-Preservation Portion 2005B G.O. Bonds-Preservation Portion 2008B G.O. Bonds-Preservation Portion Future G.O. Bonds Total Preserve General Obligation Bonds 28,715,000 5,755,000 8,100,000 56,800,000 66,090,000 16,700,000 19,175,000 201,335,000 28,715,000 5,755,000 8,100,000 52,200,000 66,090,000 15,800,000 18,675,000 200,000,000 395,335,000 27,885,000 5,755,000 8,100,000 48,700,000 66,090,000 14,875,000 18,150,000 199,329,114 388,884,114 24,370,000 5,755,000 8,100,000 46,600,000 66,090,000 13,900,000 17,625,000 198,460,935 380,900,935 21,210,000 5,755,000 8,100,000 44,500,000 63,085,000 12,900,000 17,075,000 197,162,245 369,787,245 6/30/22 6/30/24 6/30/19 6/30/25 6/30/24 6/30/24 6/30/34 6/30/34 Scottsdale Preserve Authority Bonds - Preserve Sales Tax Supported 1998 Scottsdale Preserve Revenue Bonds 2001 Scottsdale Preserve Revenue Refunding Bonds 2004 Scottsdale Preserve Revenue Refunding Bonds Total Scottsdale Preserve Authority Bonds 36,725,000 13,475,000 17,670,000 67,870,000 36,725,000 12,625,000 15,050,000 64,400,000 36,725,000 11,735,000 12,315,000 60,775,000 36,725,000 10,805,000 9,455,000 56,985,000 36,725,000 9,830,000 6,465,000 53,020,000 6/30/24 6/30/22 6/30/16 McDowell Sonoran Preserve Contract - Preserve Sales Tax Supported 2,600,000 1,775,000 910,000 - - 6/30/13 8,865,000 19,403,356 19,700,000 25,485,000 29,965,000 8,855,000 32,500,000 144,773,356 7,915,000 19,334,928 19,475,000 25,485,000 29,965,000 8,585,000 32,500,000 6,383,163 149,643,091 6,935,000 18,679,092 19,250,000 25,485,000 29,965,000 8,305,000 31,550,000 6,202,944 146,372,036 5,925,000 18,069,092 19,025,000 25,485,000 29,965,000 8,015,000 30,550,000 5,995,706 143,029,798 4,875,000 17,549,092 18,200,000 25,485,000 29,965,000 7,715,000 29,500,000 5,767,743 139,056,835 6/30/19 6/30/21 6/30/35 6/30/30 6/30/34 6/30/31 6/30/31 6/30/30 Special Assessments Series 104 Contract Existing Districts (excluding ID 104) Total Special Assessments 10,469 2,250,000 2,260,469 6,036 1,500,000 1,506,036 3,481 750,000 753,481 - - 1/1/13 1/1/13 Total Debt Service Funds 795,693,825 968,179,127 931,714,631 892,850,733 850,619,080 Certificates of Participation 2005 Certificates of Participation - Fire & Police Building Future COPS Total Certificates of Participation Total General Fund 237 Balance at 6/30/11 Debt Service Funds General Obligation Bonds - Property Tax (Secondary) Supported 1997 G.O. Refunding Bonds 1989 G.O. Series I (1998) 2001 G.O. Refunding Bonds-6% & 20% 2002 Various Purpose G.O. Bonds-6% & 20% 2002 G.O. Refunding Bonds-6% & 20% 2003 G.O. Refunding Bonds-6% & 20% 2004 G.O. Var. Purpose-6% & 20% 2005 G.O. Refunding Bonds-6% & 20% 2005A G.O. Var. Purpose-6% & 20% 2008A G.O. Var. Purpose-6% & 20% 2010 G.O.Var. Purpose Bonds-20% Total General Obligation Bonds Municipal Property Corp. (MPC) Bonds - Excise Tax Supported 2004A MPC SkySong Bonds 2005 MPC Giants Practice Field 2005D MPC WestWorld Land Acquisition 2006 MPC Refunding WestWorld 2006 MPC Refunding SkySong 2006A MPC TPC 2006B MPC Westworld Land Acquisition Future MPC Bonds Total Municipal Property Corp. Bonds APPendIx A LONg-TERM DEBT OuTSTANDINg Long-Term Debt Outstanding - All Funds As of 6/30/10 through 6/30/14 Balance at 6/30/10 Water and Sewer Funds Water Sewer Revenue Bonds 2004 Water Sewer Revenue Refunding Bonds 2008 Water Sewer Revenue Refunding Bonds Total Water Sewer Revenue Bonds Municipal Property Corp. (MPC) Bonds 2004 Water & Sewer MPC Bonds 2005E Water & Sewer MPC Bonds 2006 MPC Refunding Water/Sewer MPC Bonds 2008A Water & Sewer MPC Bonds 2010 Water & Sewer MPC Bonds Future MPC Bonds Total MPC Bonds - Water and Sewer Supported Total Water and Sewer Funds TOTAL LONG-TERM DEBT OUTSTANDING Balance at 6/30/11 Balance at 6/30/12 Balance at 6/30/13 Balance at 6/30/14 Final Payment Date 11,975,000 33,255,000 45,230,000 8,945,000 33,065,000 42,010,000 5,770,000 32,860,000 38,630,000 2,870,000 32,645,000 35,515,000 1,960,000 30,315,000 32,275,000 6/30/16 6/30/23 13,440,000 16,330,000 110,510,000 101,500,000 241,780,000 10,260,000 13,930,000 110,510,000 98,825,000 75,000,000 308,525,000 6,965,000 11,430,000 110,510,000 96,050,000 74,820,000 299,775,000 3,545,000 8,830,000 110,510,000 93,150,000 74,520,000 25,455,236 316,010,236 6,105,000 110,510,000 90,100,000 74,080,000 24,883,234 305,678,234 6/30/14 6/30/16 6/30/30 6/30/32 6/30/36 6/30/39 287,010,000 350,535,000 338,405,000 351,525,236 337,953,234 1,100,014,624 1,354,220,240 1,302,623,892 1,273,774,537 1,214,754,602 Sales Tax Agreements The City also has the following sales tax agreements, in which the City's payments are contingent upon the sales tax generated on the sites. These agreements are not included in the Long-term Debt Outstanding in accordance with generally accepted accounting principles. However, they are shown on the debt service schedule for purposes of budget expenditure authority and cash flow planning. Nordstrom Hotel Valley Ho Stacked 40's 238 6/30/28 6/30/19 6/30/14 APPendIx A LEgAL DEBT MARgINS COMPUTATION OF LEGAL DEBT MARGINS Forecast 6/30/2010 $ 8,406,000,739 Net Secondary Assessed Valuation Forecasted as of June 30, 2010 1,681,200,148 Debt Limit Equal to 20% of Assessed Valuation General Obligation Bonded Debt Subject to 20% Debt Limit (net of amounts available in Debt Service Funds forecasted for payment on July 1, 2010): 1997 Refunding 1989 Series I (1998) 2001 Refunding 2002 2002 Refunding 2003 Refunding 2004 2005 Refunding 2005A 2005B 2008A 2008B 2010 $ 5,890,000 4,445,000 35,555,000 7,315,000 40,630,000 4,505,000 87,800,000 74,630,000 52,500,000 16,700,000 100,000,000 19,175,000 50,800,000 499,945,000 (A) Forecasted Legal 20% Debt Margin (Available Borrowing Capacity) $ 1,181,255,148 (C) Debt Limit Equal to 6% of Assessed Valuation $ Net Outstanding Forecasted Bonded Debt Subject to 20% Limit 239 504,360,044 State Regulation The Arizona Constitution (Article 9, Section 8), provides that the general obligation bonded indebtedness for a city for general municipal purposes may not exceed 6% of the secondary assessed valuation of the taxable property in that city. In addition to the 6% limitation for general municipal purpose bonds, cities may issue general obligation bonds up to an additional 20% of the secondary assessed valuation for supplying such city with water, artificial light, or sewers, for the acquisition and development of land for open space preserves, parks, playgrounds and recreational facilities, public safety, law enforcement, fire and emergency services facilities and transportation facilities. General Obligation Bonded Debt Subject to 6% Debt Limit (net of amounts available in Debt Service Funds forecasted for payment on July 1, 2010): 2002 Refunding 2004 2005A $ 495,000 17,000,000 60,750,000 Net Outstanding Forecasted Bonded Debt Subject to 6% Limit Forecasted Legal 6% Debt Margin (Available Borrowing Capacity) $ 78,245,000 (B) 426,115,044 (D) City of Scottsdale Compliance with State Regulation This schedule indicates the secondary assessed valuation of property tax within the City of Scottsdale allows a maximum legal bonding capacity of $1,681,200,148 for projects subject to the 20% limitation and $504,360,044 for projects subject to the 6% limitation. Legal Debt Capacity Used Based on the City's current outstanding general obligation debt, it is forecasted as of June 30, 2010, the City has used (borrowed) the following legal debt capacity by percentage limitation: 20% limitation 6% limitation (A) $499,945,000 or 30% (B) $78,245,000 or 16% Legal Capacity Available Based on the City's current outstanding general obligation debt, it is forecasted as of June 30, 2010, the City has available (for borrowing) the following legal debt capacity by percentage limitation: 20% limitation 6% limitation (C) $1,181,255,148 or 70% (D) $426,115,044 or 84% APPendIx A PRIVILEgE TAx FORECAST General Fund Five-Year Privilege Tax Forecast By Business Category Revenue Category Automotive Construction Food Hotel/Motel Major Dept Stores Misc. Retail Other Taxable Rental Restaurants Utilities Other Total FY 08/09 Actual 9,596,981 13,538,414 6,295,756 4,400,462 8,806,516 12,064,666 6,248,034 12,467,197 6,909,459 4,431,613 2,569,287 87,328,386 % of Total 11% 16% 7% 5% 10% 14% 7% 14% 8% 5% 3% 100% FY 09/10 Forecast 8,071,446 6,437,129 6,699,469 4,982,005 8,442,947 11,253,398 5,744,068 13,570,907 6,283,649 4,918,702 2,532,281 78,936,000 % of Total 10% 8% 8% 6% 11% 14% 7% 17% 8% 6% 3% 100% FY 10/11 Adopted 8,659,876 8,536,109 6,368,792 4,280,063 9,117,248 12,686,154 5,390,913 11,492,277 6,994,428 4,661,073 2,327,787 80,514,720 % of Total 11% 11% 8% 5% 11% 16% 7% 14% 9% 6% 3% 100% Revenue Category Automotive Construction Food Hotel/Motel Major Dept Stores Misc. Retail Other Taxable Rental Restaurants Utilities Other Total FY 12/13 Forecast 8,886,640 9,909,251 6,649,995 4,645,588 9,404,735 13,052,128 5,487,074 11 649 074 11,649,074 7,160,756 4,914,589 2,336,185 84,096,015 % of Total 11% 12% 8% 6% 11% 16% 7% 14% 9% 6% 3% 100% FY 13/14 Forecast 9,061,690 10,328,606 6,780,988 4,969,308 9,602,468 13,309,232 5,583,410 11 878 540 11,878,540 7,266,017 5,060,529 2,357,627 86,198,415 % of Total 11% 12% 8% 6% 11% 15% 6% 14% 8% 6% 3% 100% FY 14/15 Forecast 9,282,119 10,743,815 6,912,055 5,412,980 9,824,808 13,699,485 5,699,320 12 226 842 12,226,842 7,406,459 5,259,486 2,403,197 88,870,566 % of Total 10% 12% 8% 6% 11% 15% 6% 14% 8% 6% 3% 100% FY 11/12 Forecast 8,753,145 9,194,215 6,517,991 4,423,275 9,239,356 12,856,060 5,416,110 11,530,885 7,088,104 4,770,266 2,335,607 82,125,014 % of Total 11% 11% 8% 5% 11% 16% 7% 14% 9% 6% 3% 100% This same analysis by business category was applied when forecasting privilege tax revenues for Public Safety Privilege Tax (.10%), and Special Revenue Funds: Transportation Privilege Tax (.20%), McDowell Preserve Privilege Tax (.20%) and Preservation Privilege Tax (.15%). 240 APPendIx 241 BuDgET CALENDAR A City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 242 APPendIx origin and historical Summary 243 In 1888, Army Chaplain Winfield Scott, upon his retirement from the Army, visited the Valley of the Sun and subsequently made a down payment on a section of land in order to start a farming practice. Scott’s purchase and subsequent farming of the land would be the impetus for the historic development of the town that is now modern day Scottsdale. Like other Arizona cities and towns, the provision of a reliable water supply was critical to sustaining the community after its initial settlement by Chaplain Winfield Scott. The granite Reef Dam was built in 1908 and the Roosevelt Dam in 1911 which transformed the Salt River Valley and allowed Scottsdale to share in the resulting population boom. Between 1908 and 1933 Scottsdale grew slowly, but steadily as a small market tow principally providing services for families involved in the agricultural industry. Scottsdale’s favorable climate, irri- DEMOgRAPhICS gated desert location, and beautiful scenery influenced its initial settlement as well. Many health seekers came to Scottsdale, and those who were able to relocate to enjoy the advantages of the climate tended to be more well to do. Many of the community’s original settlers who were recruited by Winfield Scott from the East and Midwest were educated and had an established appreciation for cultural activities. These early settlers established the Scottsdale public school system in 1896, supported the burgeoning artists and writes culture that began relocation here in the early 1900’s, and promoted Scottsdale’s affiliation with the earliest area resorts, the Ingleside Inn (1909) and the Jokake Inn (1922). The Depression Era saw an influx of artists and architects to Scottsdale, one of the most renowned being Frank Lloyd Wright. Wright first came to Arizona to work on a desert resort project in Chandler in 1927 and worked on the design for the Arizona Biltmore Resort in 1929. In 1937, Wright and his wife purchased 600 desert acres at the foot of the McDowell Mountains and built Taliesin West, his winter home and his architectural firm’s southwestern headquarters. In 1947, the Scottsdale Chamber of Commerce was incorporated and Scottsdale leaders engaged in a conscious effort to promote a special identity for the town. Scottsdale was the only local community to formally embrace the western atmosphere that helped distinguish it from other tourist destinations. A design theme for the downtown A was established with a “western” image and lifestyle and the city’s moniker the “West’s Most Western Town” was coined. In 1951, the town incorporated into the City of Scottsdale. Although Scottsdale has grown in size and population, its historic origins still shine through today. Scottsdale is nationally and internationally well known for its reputation as an artistically and culturally rich community; a premiere resort, tourist, and golf destination; as well as an attractive location for numerous corporate commercial, retail, and medical-biotechnical opportunities. APPendIx A DEMOgRAPhICS demographics The following tables provide additional demographic statistics for the City of Scottsdale and its citizenry primarily from projections based on data from the uS Census provided by SitesuSA, as well as the City of Scottsdale Economic Vitality Division. gENDER Male Female 48.6% 51.4 % AgE COMPOSITION under 5 years 5 – 19 years 20 – 24 years 25 – 54 years 55 – 74 years 75+ Median age (years) 5.8% 16.9% 4.8% 43.5% 21.5% 7.3% 40.6 OCCuPATIONAL COMPOSITION Managerial & Professional 49.5% Service 12.4% Sales & Office 30.1% Construction, Extraction & Maintenance 4.2% Production & Transportation 3.8% Source: 2008 US Census American Community Survey 1-year estimate RACE/EThNIC ORIgIN White Asian African American Native American Other 88.2% 2.9% 2.3% .1.0% 2.7% EDuCATIONAL ATTAINMENT Bachelor Degree or higher Associate Deg. Only/Some College high School graduate Only Less than high School graduate 44.8% 29.3% 19.0% 7.0% LAND uSE Residential Industrial/Commercial 50.5% 9.2% Note: “Undeveloped/Agricultural” includes street right-of-ways, parks, golf courses, open-space preserves Source: City of Scottsdale Planning, Neighborhood, and Transportation Division “2011 Proposed General Plan Land Uses” POPuLATION 1951 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005. 2006 estimate* 2007 estimate* 2008 estimate* 2009 estimate* 2,021 27,010 54,504 67,841 77,107 88,364 108,447 130,069 168,176 204,680 235,010 237,120 240,126 242,337 243,501 *= Arizona Department of Commerce estimate hOuSEhOLD INCOME DISTRIBuTION Less than $25,000 $25,000- $34,999 $35,000 - $49,999 $50,000 – $74,999 $75,000 – $99,999 $100,000+ Median household Income 13.1% 7.4% 11.8% 17.5% 12.5% 37.5% $85,575 244 APPendIx A DEMOgRAPhICS PopulationandHousingUnitGrowthInScottsdale,AZ From2000toBuildOutin2030 300,000 250,000 200,000 150,000 245 100,000 50,000 0 TotalHousingUnits Population  CityofScottsdale,LongRangePlanningServices APPendIx A DEMOgRAPhICS Scottsdale employment by Industry and Year 2005 EMPLOyMENT Agriculture, forestry, fishing and hunting, and mining Construction Manufacturing Wholesale trade Retail trade Transportation and warehousing, and utilities Information Finance, insurance, and real estate Professional, scientific, and management Educational, health and social services Leisure and hospitality Other services, except public administration Public administration ToTAl 187 5,563 5,961 5,249 14,735 3,612 3,251 17,457 13,392 16,681 12,404 4,874 2,751 106,117 PERCENT 0.2% 5.2% 5.6% 4.9% 13.9% 3.4% 3.1% 16.5% 12.6% 15.7% 11.7% 4.6% 2.6% 100.0% 2008 EMPLOyMENT PERCENT 564 5,900 6,791 4,372 16,206 4,316 2,777 16,233 16,822 19,109 12,354 5,699 2,556 113,699 0.5% 5.2% 6.0% 3.8% 14.3% 3.8% 2.4% 14.3% 14.8% 16.8% 10.9% 5.0% 2.2% 100.0% Source: U.S. Census American Community Survey Major employers City of Scottsdale - 2009 RANK 1 2 3 4 5 6 7 8 9 10 11 13 14 15 12 COMPANy NAME Scottsdale healthcare Mayo Clinic** general Dynamics*** Scottsdale unified School District* City of Scottsdale**** CVS - CareMark go Daddy group The Vanguard group Troon golf LLC Scottsdale Insurance Company Fairmont Resort Dial Corporation Desert Mountain Properties united Blood Services Coventry health Care Source: City of Scottsdale, Economic Vitality Department * = Full-time equivalent (FTE) employees, as of Jan/Feb 2009 ** = Includes all Mayo Clinic employees in Metro Phoenix *** = Includes all employees that report to Scottsdale site **** = Full-time equivalent (FTE) EMPLOyEES 6,650 4,900 3,600 3,126 2,538 2,048 1,915 1,899 1,539 1,400 1,000 700 650 647 631 RANK 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 COMPANy NAME EMPLOyEES The Boulders Resort 620 uSPS - Scottsdale 595 hyatt Regency at gainey Ranch 583 Pulte homes 545 Nordstrom 500 JDA Software group 451 Wal-Mart 450 McKesson 450 Scottsdale Medical Imaging 380 Taser 355 Sage Software 350 Costco 313 Scottsdale Conference Resort* 312 hotel Valley ho 305 Dillard's 290 246 APPendIx A DEMOgRAPhICS Median household Income CITy 247 2005 MEDIAN 2000 MEDIAN 1995 MEDIAN 1990 MEDIAN hOuSEhOLD INCOME hOuSEhOLD INCOME hOuSEhOLD INCOME hOuSEhOLD INCOME $48,319 $32,950 $33,676 $35,483 $46,096 $36,049 $51,660 $40,820 $35,623 42% $39,037 $29,291 $30,273 $31,665 $38,124 $31,885 $41,081 $34,205 $30,797 27% Scottsdale $65,361 $57,484 Phoenix $44,222 $41,207 Mesa $46,438 $42,817 glendale $54,424 $45,015 Chandler $63,143 $58,416 Tempe $48,767 $42,361 gilbert $73,960 $68,032 Peoria $58,742 $52,199 Metro Area $46,111 $45,358 Scottsdale median income is higher than Metro Area by: Source: Sites USA, 2000 US Census, 1995 Special US Census, 1990 US Census gROWTh RATE 2005 VS 1990 67% 51% 53% 72% 66% 53% 80% 72% 50% 36% 27% APPendIx Principal Property Taxpayers June 30, 2010 (in thousands) Taxpayer Scottsdale Fashion Square LLC* Arizona Public Service Company Gainey Drive Associates Quest Corporation** Portales Corporate Center LLC/Etal JEMB Scottsdale LLC Blackwell Robert L/Etal Pacific Promenade LLC DC Ranch LLC Scottsdale Fiesta Retail Center LLC First American Title Motorola, Inc. 92 Mountain View LLC Massachusetts Mutual Life Ins. Co. Southwest Gas Corporation Gainey Ranch Financial Ltd. Ptr. A DEMOgRAPhICS C 2010 2001 Taxable Assessed Value $ 66,131 61,193 26,771 26,730 25,786 22,213 22,152 17,576 17,529 16,079 Rank 1 2 3 4 5 6 7 8 9 10 Percentage of Total Taxable Assessed Value 0.787% 0.728% 0.318% 0.318% 0.307% 0.264% 0.264% 0.209% 0.209% 0.191% - - - Taxable Assessed Value $ 47,335 44,413 18,195 26,778 26,741 20,656 14,965 10,832 10,179 9,746 Rank 1 2 6 3 - Percentage of Total Taxable Assessed Value 1.640% 1.540% 0.630% 0.930% - 4 5 7 8 9 10 0.930% 0.720% 0.520% 0.380% 0.350% 0.340% Source: 2010 information - The Maricopa County Assessor's Office. Source: 2001 information - The City of Scottsdale's Financial Advisor, as obtained from the records of the Arizona Department of Revenue, Division of Utilities and Mines and the tax rolls of the Maricopa County Assessor's office. The Salt River Project Agricultural Improvement and Power District's (SRP) assessed valuation is not reflected in the total assessed valuation of the City. SRP is subject to a "voluntary contribution" in lieu of ad valorem taxation. The 2009/10 secondary assessed valuation of the SRP within the City is $19,333,564 as provided by SRP. The secondary in lieu contribution received by the City of Scottsdale for 2009/10 was $143,094. *Scottsdale Fashion Square LLC was operating under the name Scottsdale Fashion Square Ptr. in 2001. **Quest Corporation was operating under the name U S West Wireless LLC in 2001. 248 APPendIx Revitalization Original neighborhoods form the core of southern Scottsdale. As this area continues to mature, the area requires focused and ongoing efforts to maintain and strengthen the economic and physical health of this important part of the Scottsdale community. Through its revitalization program, the City has stepped up its efforts to maintain, renovate, or rebuild City buildings, parks, and other public facilities, and to attract new businesses and investment. In addition, the City anticipates partnering with its property owners, residents, business owners, community groups, and development professionals to utilize the tools necessary for the revitalization, restoration, and renewal for southern Scottsdale. 249 Transportation Scottsdale’s transportation network offers citizens a variety of mobility choices, such as using streets, transit, downtown trolley, Cab Connection, sidewalks, unpaved trails, and downtown parking. The Pima and Red Mountain Freeways and City streets let people move into and around the City. Scottsdale’s transportation planning efforts work together to support the mission of encouraging livable neighborhoods and providing for safe, efficient, and affordable movement of people and goods in Scottsdale. DEMOgRAPhICS A educational Facilities Several institutions of higher learning are available to City residents. Arizona State university, one of the major universities in the nation, is located in Tempe just south of the City. The university has approximately 63,000 students, graduate and undergraduate, a choice of 23 colleges and has 3,095 full-time faculty members (as of Spring 2010). Also, the university of Arizona operates their Executive MBA program at their location in Scottsdale next to WestWorld. Scottsdale Community College, a part of the Maricopa Community College System, is located on the eastern border of the City, on the Salt River/Pima Maricopa Indian Community. The college is a two-year college, which offers a wide variety of academic, occupational, developmental, and special interest programs. Other higher educational facilities include the university of Phoenix and the Scottsdale Culinary Institute. The City is also served by 25 public elementary and middle schools, 6 public high schools, and a number of private schools. The City is bordered to the west by Phoenix, the state capital, by Tempe to the south, and by the Salt River/Pima Maricopa Indian Community to the east. Scottsdale, together with its neighboring cities, forms the greater metropolitan Phoenix area, which is the economic, political, and population center of the state. 124th ST. 120th ST. 112th ST. 104th ST. 96th ST. PIMA HAYDEN SCOTTSDALE 64th ST. location Scottsdale is centrally located in Maricopa County, Arizona, with its boundaries encompassing an area approximately 184.5 square miles, stretching 31 miles from north to south. A DEMOgRAPhICS 56th ST. APPendIx JENNY LYNN CIRCLE MOUNTAIN HONDA BOW ROCKAWAY HILLS DESERT HILLS JOY RANCH STAGECOACH PASS CAREFREE HWY. DOVE VALLEY DIXILETA DYNAMITE JOMAX 250 HAPPY VALLEY PINNACLE PEAK DEER VALLEY BEARDSLEY OUTER LOOP UNION HILLS BELL/FRANK LLOYD WRIGHT BLVD. GREENWAY air po rt THUNDERBIRD INDIAN BEND North McDONALD CHAPARRAL CAMELBACK INDIAN SCHOOL 17 THOMAS 17 McDOWELL PIMA McKELLIPS 124th ST. 120th ST. McCORMICK PKWY. 112th ST. 96th ST. DOUBLE TREE 104th ST. SHEA 64th ST. Source: Western Regional Climate Center CACTUS 56th ST. AVERAgE DAILy TEMPERATuRES high Low o 36.7oF January 67.0 F o 49.3oF April 84.3 F 74.8oF July 105.6oF o 54.1oF October 87.2 F HAYDEN Scottsdale offers its residents the advantages of a warm, dry climate with low humidity even in the summer months. • The average precipitation: 9.32 inches per year • The average number of sunny days per year: 328 LONE MOUNTAIN SCOTTSDALE Climate Lying at an elevation of 1,260 feet above sea level, the City of Scottsdale averages 328 days of sunshine and 9.41 inches of rainfall per year, with the average minimum and maximum temperatures ranging from 53.4 degrees to 86.2 degrees (F), respectively. APPendIx 251 Tourism Scottsdale is an internationally recognized tourism destination community, widely known for its golf courses, recreational amenities, climate, and high end resorts, and beautiful open spaces of the McDowell Mountain Sonoran Preserve. Tourism generates millions of dollars in economic activity in the City each year and is one of the most significant sources of revenue for the City’s operations and budget. In 2008, Scottsdale hosted over 8.1 million visitors with an economic impact of $3.6 billion (direct and indirect) and tourism was responsible for $7.6 million in bed tax receipts for the City. Numerous resort and convention facilities, along with more than 82 hotels and resorts, provide nearly 16,150 guest rooms in the Scottsdale/ Paradise Valley market area. The City boasts many public and private golf courses, tennis courts, country clubs, day spas, nightclubs, bars, and lounges. More than 4,600 retail shops, boutiques, and galleries are located throughout the City and a selection of almost 600 restaurants is available. These services and facilities, complemented by the mild winter, have made Scottsdale a popular vacation spot for tourists and winter visitors. DEMOgRAPhICS A Photo enforcement Scottsdale has utilized photo enforcement on its City streets since 1997, augmenting a comprehensive traffic safety program proven to reduce both the number and severity of collisions. The city currently has nine fixed intersection cameras and four mobile vans in operation. Police and Traffic Engineering staff primarily chooses locations, both fixed and mobile, based on traffic volume, citizen complaints, and collision history. westworld WestWorld is a premier, nationally recognized, userfriendly equestrian center and special events facility serving the community and target market visitors. It is comprised of approximately 387 acres which are available for a variety of uses and events with a primary focus in the equestrian industry. It is located in a key activity corridor for the city. Close to the gateway of the McDowell Mountain Preserve. While The Bureau of Reclamation owns the land that WestWorld is situated on, the City of Scottsdale assumed management responsibility and purchased the fixed assets in 1997. WestWorld now serves as a community asset and major economic catalyst to the City as it hosts over 275 utilized days with approximately 600,000 visitors annually. APPendIx Preservation In 1990, Scottsdale citizens (through the non-profit McDowell Sonoran Land Trust – today called the McDowell Sonoran Conservancy) initiated the preservation of Scottsdale’s McDowell Mountains and other remaining lush Sonoran Desert areas. The vision is to preserve approximately 36,000 acres, equivalent to 1/3 of Scottsdale’s total land area. Protected land in this geographic area is called the McDowell Sonoran Preserve. The Preserve will protect Scottsdale’s diverse Sonoran Desert environment and create corridors linking to natural open space in adjacent communities as well as to the Tonto National Forest and the Maricopa County Regional Park. The objective is to create a large sustainable natural desert habitat for wildlife and desert flora, available for appropriate public recreation use. In 1995, Scottsdale voters approved initial funding - a .2 percent sales tax increase to purchase land in a 16,000 acre boundary encompassing the McDowell Mountains and surrounding desert. In 1998, voters approved using the sales tax to purchase land in an additional 19,000 acre boundary primarily north of the McDowell Mountains comprised of isolated mountains, deep washes and lush Sonoran Desert vegetation. In 2004, voters approved an additional .15 percent increase in the sales tax for land acquisition and for access area amenities. When completed, the McDowell Sonoran Preserve will be one of the largest urban preserves in the nation. DEMOgRAPhICS A Proposed desert discovery Center at the Gateway to the Preserve Planning continues for establishing a desert discovery center in the gateway to the Preserve- east of Thompson Peak Parkway north of Bell Road (gateway Access/Discovery Plans). The discovery center is envisioned to exist to provide opportunities for residents and visitors to discover the story of the upper Sonoran Desert. Through exhibits and environmental experiences presented in a natural setting, the center will inspire learning about the desert through its programs which encourage preservation and instill a sense of harmony with and respect for the desert. A task force comprised of the McDowell Sonoran Preserve Commission (MSPC) and Tourism Development Commission (TDC) members successfully managed Phase One of the Desert Discovery Center Feasibility Study to develop concepts for the desert discovery center through a public involvement process. The completed report was presented to both commissions in August 2008. The report identifies next steps the community should consider to move the planning process along. Phase Two of the Feasibility Study to further refine concepts, exhibitory, architectural and operational needs is being reviewed by a subcommittee of members of the MSPC and TDC, and is scheduled to be presented to both Commissions, the City Council and the general public in the late summer and early fall of 2010. 252 APPendIx 253 DEMOgRAPhICS A APPendIx ACJIS ADA ADEQ ADOT ANTN APS ARS ASRS ASU ATV AZ GOHS AZSTA CAD CAFR CAP CCTV CDBG CDL CDS CEF CFAI CFD CGTF CIP CISM CIT CNG COBRA COP CPA DAS DAS DMZ network DPS DVAT EDM EEOC EFT EMS EMT EOC EPA ESAP ESRI FAA FBI FCD ACRONyMS Arizona Criminal Justice Information System Americans with Disabilities Act Arizona Department of Environmental Quality Arizona Department of Transportation Aviation News and Training Network Arizona Public Service Arizona Revised Statutes Arizona State Retirement System Arizona State University All Terrain Vehicle Arizona Governor’s Office of Highway Safety Arizona Sports and Tourism Authority Computer Aided Design; Computer Aided Dispatch (Police) Comprehensive Annual Financial Report Central Arizona Project Closed Circuit Television Community Development Block Grant Commercial Driver’s License Community Development System Court Enhancement Fund Committee on Fire Accreditation International Community Facility District Central Groundwater Treatment Facility Capital Improvement Plan Critical Incident Stress Management Crisis Intervention Team Compressed Natural Gas Consolidated Omnibus Budget Reconciliation Act Certificate of Participation Certified Public Accountant Direct Attached Storage Distributed Antenna System Demilitarized Zone (isolated protected network) Department of Public Safety Domestic Violence Action Team Electronic Document Management Equal Employment Opportunity Commission Electronic File System Emergency Medical Services Emergency Medical Technician Emergency Operations Center Environmental Protection Agency Emergency Safety and Preparedness Environmental Systems Research Institute Federal Aviation Administration Federal Bureau of Investigation Flood Control District A 254 APPendIx 255 FEMA FMLA FT FTA FTE FTG FYE GAAP GAC GASB GFOA GIS GO GPS HEAT HIPAA HHW HR HUD HURF HVAC ICMA ID IGA IIHS ILM ISO IT ITD ITS IVR IWDS JCEF JTTF LEED LIS LTAF MAG MCSD MPC MS NACSLB NAS NEP NFMA NIMS NLC ACRONyMS Federal Emergency Management Agency Family Medical Leave Act Full Time Federal Transit Administration Full Time Equivalent Fill the Gap Fiscal Year End Generally Accepted Accounting Principles Granular Activated Carbon Governmental Accounting Standards Board Government Finance Officers Association Geographic Information System General Obligation Geographic Positioning System Help Desk Software Health Insurance Portability and Accountability Act Household Hazardous Waste Human Resources U.S. Department of Housing and Urban Development Highway User Revenue Fund Heating, Ventilation, and Air Conditioning International City/County Management Association Improvement District Intergovernmental Agreement Insurance Institute for Highway Safety Information Lifecycle Management International Organization for Standardization Information Technology Inception to Date Intelligent Transportation System Interactive Voice Response System Irrigation Water Distribution System Judicial Collections Enhancement Fund Joint Terrorism Task Force Leadership in Energy and Environmental Design Land Information System Local Transportation Assistance Fund Maricopa Association of Governments Maricopa County Stadium Project Municipal Property Corporation Microsoft National Advisory Council on State and Local Budgeting Network Attached Storage Neighborhood Enhancement Partnership National Federation of Municipal Analysts National Incident Management Systems National League of Cities A APPendIx NPDES NTO O&M OSHA PC PD PIN PKI PO POS PSPRS PT REV RFP RICO ROP ROW RPTA RWDS SAN SCADA SOS SPA SQL SRO SRP SRPMIC SVC SW SWAT TPC TRF UCR VCC VPP WRP WTP WWTP ACRONyMS National Pollutant Discharge Elimination System Narcotics Trained Officer Operations and Maintenance Occupational Safety and Health Administration Personal Computer Police Department Prosecutor Information Network Public Key Infrastructure Purchase Order Point of Sale Public Safety Personnel Retirement System Part Time Revenue Request for Proposal Racketeering Influenced Corrupt Organizations Repeat Offender Program Right of way Regional Public Transit Authority Reclaimed Water Distribution System Storage Area Network Supervisory Control and Data Acquisition Delinquency Turn On Notification System Scottsdale Preserve Authority Structured Query Language School Resource Officer Salt River Project Salt River Pima-Maricopa Indian Community Service Software Special Weapons and Tactics Tournament Players Club Transfer Uniform Crime Report Virtual Call Center Voluntary Protection Program Water Reclamation Plant Water Treatment Plant Wastewater Treatment Plant A 256 APPendIx Actual Actual, as used in the fund summaries and department and division summaries within the budget document, represents the actual costs results of operations. This category is presented on a gAAP basis, with the exception that depreciation and amortization are not budgeted and principal payments on debt in the enterprise funds are budgeted as expenses. Adopted Adopted, as used in the fund summaries and department and division summaries within the budget document, represents the budget as approved by the City Council. 257 Appropriation An authorization made by the City Council, which permits the City to incur obligations and to expend resources. Assessed valuation A government sets a valuation upon real estate or other property as a basis for levying taxes. An assessed valuation represents the appraised valuation less any exemptions. In Arizona, real property is valued annually by the County Assessor for the assessment of property taxes. Balanced Budget Arizona State law requires a “balanced” budget, which is “all-inclusive”. Arizona State Revised Statute (4217151) defines a “balanced” budget as follow: “Fix, levy and assess the amount to be raised from primary property taxation and secondary property taxation. This amount, plus all other sources of revenue, as estimated, and unencumbered balances from the preceding fiscal year, shall equal the total of amounts proposed to be spent in the budget for the current fiscal year.” under Arizona State law “all-inclusive” means if an item is not budgeted (i.e. does not have an appropria- gLOSSARy A tion), it cannot legally be spent during the fiscal year. Therefore, the budget must include sufficient appropriation provisions for expenditures related to revenues (e.g., possible future grants) that cannot be accurately determined or even anticipated when the budget is adopted in June. This budgetary flexibility allows the City to comply with the Arizona State law and to proactively pursue emerging revenue sources as the budget year unfolds. The contingent expenditure appropriations associated with items such as possible future grants/revenues may not be spent without prior City Council approval during a public meeting. Base Budget Cost of continuing the existing levels of service in the current budget year. Beginning Balance The beginning balance is the residual non–restricted funds brought forward from the previous fiscal year (ending balance). Bond 2000 general Obligation Bonds that were authorized by voters in calendar year 2000 and are secured by the full faith and credit of the issuer. general Obligation Bonds issued by local units of government are secured by a pledge of the issuer’s property taxing power, and must be authorized by the electorate. Bond Funds Established to account for bond proceeds to be used only for approved bond projects. Bonds Bonds are debt instruments, which require repayment of a specified principal amount on a certain date (maturity date), together with interest at a stated rate or according to a formula for determining the interest rate. APPendIx Budget A budget is a plan of financial operation embodying an estimate of proposed expenditures and the means of financing them. used without any modifier, the term usually indicates a financial plan for a single fiscal year. In practice, the term budget is used in two ways. Sometimes it designates the financial plan presented for adoption and other times it designates the plan finally approved. It is usually necessary to specify whether the budget under consideration is preliminary and tentative, or whether the appropriating body has approved it. Budget Calendar The schedule of key dates, which a government follows in the preparation and adoption of the budget. Budgetary Basis – Budgets are adopted on a basis consistent with generally Accepted Accounting Principles (gAAP), with the exception that (1) no depreciation is budgeted for proprietary funds; and (2) bond principal in the enterprise funds is subject to appropriation. The budgetary basis of accounting is used to present all proposed budget and forecast amounts in the budget document to facilitate meaningful comparisons. The differences between the budgetary and gAAP basis of accounting used by the City of Scottsdale are similar to those of many other local governments. The differences between budgetary basis and the gAAP basis exist largely because the budgetary basis provides a more conservative view of revenues and expenditures. Capital expenditures The City defines a capital expenditure as using the following three criteria: (1) relatively high monetary values (equal to or greater than $25,000), (2) long asset life (equal to or greater than five years of useful life, and (3) results in the creation of a fixed asset, or the revitalization of a fixed asset. Capital Improvement Funds Established to account for financial resources to be used for the acquisition or construction of major capital facilities. The City maintains several Capital Project gLOSSARy A funds to ensure legal compliance and financial management for various restricted revenues. Capital Improvement Plan (CIP) A capital improvement plan is a comprehensive plan that projects the capital needs of the community. generally, it is a cyclical process that projects the needs for a set number of years. Capital improvement plans are essential to sound infrastructure and financial planning. The annual capital budget is derived from the long–term CIP. Capital outlay Includes the purchase of land, the purchase or construction of buildings, structures, and facilities of all types, plus machinery and equipment. It includes expenditures that result in the acquisition or addition of a fixed asset or increase the capacity, efficiency, span of life, or economy of operating an existing fixed asset. For an item to qualify as a capital outlay expenditure it must meet all of the following requirements: (1) have an estimated useful life of more than two years; (2) typically have a unit cost of $5,000 or more; and (3) be a betterment or improvement. Replacement of a capital item is classified as a capital outlay under the same code as the original purchase. Replacement or repair parts are classified under commodities. Capital Project Any project having assets of significant value and having a useful life of five years or more. Capital projects include the purchase of land, design, engineering and construction of buildings, and infrastructure items such as streets, bridges, drainage, street lighting, and water systems. Commodities Commodities are expendable items purchased through the City-approved centralized purchasing process. This classification includes supplies, repair and replacement parts, small tools, and maintenance and repair materials that are not of a capital nature. 258 APPendIx Community Facilities districts (CFd) CFDs are special purpose public improvement districts. By utilizing a variety of public funding options such as bonds, special assessments, taxes and user fees, CFDs provide a mechanism to finance public infrastructure, the operation and maintenance of public infrastructure, and enhanced municipal services in qualifying areas. Consumer Price Index (CPI) A statistical description of price levels provided by the u.S. Department of Labor. The index is used as a measure of the increase in the cost of living (i.e., economic inflation). Contingency A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. 259 Contracts Payable Contracts payable represents a liability reflecting amounts due on contracts of goods or services furnished to the City. Contractual Services Includes expenditures for services performed by firms, individuals, or other City departments. Supplies are not included in the contractual services accounts. Cost Center An organizational budget/operating unit within each City division or department. Court enhancement Fund A fund to accumulate fees imposed by the City Court on fines, sanctions, penalties and assessments for the purpose of enhancing the technological, operational and security capabilities of the City Court. debt Service Paid from the general Fund, is primarily contractual debt related to sales tax development agreements and will vary based on the actual sales tax collections at each developed site. gLOSSARy A debt Service Funds Established to account for the accumulation of resources and for the payment of general long-term debt principal and interest that are not serviced by the general, Special Revenue, and Enterprise Funds. It does not include contractual obligations accounted for in the individual funds. department A functional unit within a division consisting of one or more cost centers engaged in activities supporting the unit’s mission and objectives (e.g., Police and Fire departments within Public Safety Division). division The combination of departments of the City with a specific and unique set of goals and objectives (i.e., Public Safety, Financial Management, Community Services, etc.). encumbrance Includes obligations in the form of purchase orders, contracts, or other commitments. They cease to be encumbrances when paid, canceled, or when the actual liability is established. encumbrance Rebudgets The balance of unliquidated purchase commitments brought forward from the previous fiscal year. ending Balance The residual non–restricted funds that are spendable or available for appropriation at the end of the fiscal year. enterprise Capital Funds used to account for utility rates and development fees for specific projects. APPendIx enterprise Funds Established to account for operations, including debt service that are financed and operated similarly to private businesses - where the intent is the service is self-sufficient, with all costs supported predominantly by user charges. The City maintains three Enterprise Funds to account for Water & Sewer, Solid Waste, and Aviation activities. equipment Rental Represents fees charged to other areas of the City for the maintenance, repair, and replacement of City vehicles. The fee for these charges is returned to the fleet management internal service fund as revenue. estimate Represents the original adopted budget plus any prior year open purchase orders, contingency transfers, approved changes, and anticipated year-end savings. excise debt Represents debt that is repaid by excise taxes. In this case, the excise taxes used to fund the debt service payments are a portion of the transaction privilege (sales) tax and transient occupancy tax. expenditures Represents decreases in net financial resources. They include current operating expenses, which require the current or future use of net current assets, debt services, and capital outlays. Fees Charges for specific services. Financial Policy A government’s directive with respect to revenues, spending, reserves, and debt management as these relate to government services, programs and capital investment. Financial policy provides an agreed upon set of principles for the planning and programming of government budgets and its funding. gLOSSARy A Fiscal Year A twelve-month period designated as the operating year for accounting and budgeting purposes in an organization. The City of Scottsdale’s fiscal year is July 1 through June 30. Five-Year Financial Plan An estimation of revenues and expenses required by the City to operate for the next five–year period. Forecast A prediction of a future outcome based on known and unknown factors. Franchise Fee Charged to the water and sewer utility fund, is a reimbursement to the general fund for the utility’s use of City streets and right–of–ways. 260 Fringe Benefits Contributions made by a government to meet commitments or obligations for employee-related expenses. Included is the government’s share of costs for social security and the various pension, medical, and life insurance plans. Full-Time equivalent (FTe) A calculation used to convert part-time hours to equivalent full-time positions. Full-time employee salaries are based on 2,080 hours per year. The full-time equivalent of a part-time employee is calculated by dividing the number of hours budgeted by 2,080. Full Cash value Arizona Revised Statutes defines Full Cash Value (FCV) as being synonymous with market value. For assessment purposes, Full Cash value approximates market value. Also see Secondary Assessed Valuation. Fund A fiscal and accounting entity with a self–balancing set of accounts. Records cash and other financial resources together with all related liabilities and residual APPendIx equities or balances and changes therein. These are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Fund Balance The balance of net financial resources that are spendable or available for appropriation. As used in the budget, the excess of resources (revenues and cash transfers-in) over uses (expenditures, debt service, and cash transfers-out). The beginning fund balance is the residual funds brought forward from the previous fiscal year. The fund balance is comprised of a reserved fund balance and an unreserved fund balance. The reserved fund balance is restricted for specific purposes, while the unreserved fund balance is not restricted for a specific purpose and is available for general appropriation. 261 Fund Summary A combined statement of revenues, expenditures, and changes in fund balance for the prior year’s actual, adopted, estimated budgets, and the current year’s adopted budgets. GAAP Adjustments Differences arising from the use of a basis of accounting for budgetary purposes that differs from the basis of accounting applicable when reporting on operations in conformity with generally Accepted Accounting Principles (gAAP). For example, depreciation and amortization in Enterprise Funds are not considered expenses on the budget basis of accounting, but are considered expenses on the gAAP basis. General Fund Primary operating fund of the City. It exists to account for the resources devoted to finance the services traditionally associated with local government. Included in these services are police and fire protection, parks and recreation, planning and economic development, general administration of the City, and any other activity for which a special fund has not been created. gLOSSARy A General long-Term debt Represents any unmatured debt not considered to be a fund liability. General obligation Bonds (G.o. Bonds) Bonds secured by the full faith and credit of the issuer. g.O. bonds issued by local units of government are secured by a pledge of the issuer’s property taxing power (secondary portion). They are usually issued to pay for general capital improvements such as parks and roads. Generally Accepted Accounting Principles (GAAP) The uniform minimum standards and guidelines to financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. gAAP encompass the conventions, rules, and procedures necessary to define the accepted accounting practices at a particular time. They include both broad guidelines of general application and detailed practices and procedures. gAAP provides standards by which to measure financial presentations. The gAAP basis of accounting is used to prepare the City’s Comprehensive Annual Financial Report (CAFR). The gAAP basis differs from the budgetary (or cash) basis in that certain revenues, expenditures, and transfers are not included on the budget basis, but are accrued and reported on the gAAP basis. goal – A statement of broad direction, purpose or intent based on the needs of the community. A goal is general and timeless. Golf Course Surcharge A $1 per nine hole surcharge established in 1994 for all City owned golf courses. Revenue collected from this source is used for capital improvements, debt service on capital improvements, silt management, catastrophic flood funding, and support of the FBR Open golf tournament. APPendIx Grant A contribution by one government unit or funding source to another. The contribution is usually made to aid in the support of a specified function (i.e., education or drug enforcement), but it is sometimes for general purposes. Grant Capital Funds are used to account for the proceeds of capital grants. highway user Fuel Tax gasoline tax shared with municipalities; a portion is distributed based upon the population of the City and a portion is distributed based upon the origin of the sales of the fuel. The Arizona State Constitution requires that this revenue be used solely for street and highway purposes. Improvement districts Consists of property owners desiring improvements to their property. Bonds are issued to finance these improvements, which are repaid by assessments on affected property. Improvement District debt is paid for by a compulsory levy (special assessment) made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. Indirect Cost Allocation Funding transferred to the general fund from enterprise funds for specific central administrative functions, which benefit those funds (i.e., City Manager, Financial Services Department, human Resources, Legal, etc.). In-lieu Property Tax Charges to the enterprise funds, which compensates the general fund for the property tax that would have been paid if the utilities were for–profit companies. Intergovernmental Revenues Levied by one government but shared on a predetermined basis with another government or class of governments. gLOSSARy A Internal Service Fund Established to account for the financing, on a cost-reimbursement basis, of commodities or services provided by one program for the benefit of other programs within the City. The City maintains two Internal Service Funds to account for Fleet and Self-Insurance activities. limited Property value The Limited Property Value is calculated according to a statutory formula mandated by the Arizona State Legislation and cannot exceed the Full Cash Value (also known as Secondary Assessed Valuation). Also see Primary Assessed Valuation. Mission Defines the primary purpose of the City and is intended to guide all organizational decisions, policies, and activities (internal and external) on a daily basis. Municipal Property Corporation (MPC) A non-profit corporation established to issue bonds to fund City capital improvements projects. needs Assessment The foundation for determining what City customers feel is needed. Market surveys, public hearings, and boards and commission surveys are conducted. objective Something to be accomplished in specific, well-defined, and measurable terms, and that is achievable within a specific time frame. operating Budget The plan for current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending, and service delivery activities of a government are controlled. The use of annual operating budgets is required by law in Arizona and is a requirement of Scottsdale’s City Charter. 262 APPendIx operating Revenue Funds that the government receives as income to pay for ongoing operations. It includes such items as taxes, fees from specific services, interest earnings, and grant revenues. Operating revenues are used to pay for day–to–day services. ordinance A formal legislative enactment by the governing body of a municipality. If it is not in conflict with any higher form of law, such as a state statute or a constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. 263 other Fiscal Activity Refers to various trust and agency funds used to account for assets held by the City in a trustee capacity or as an agent for individuals, other governmental units, and other funds. outstanding debt The balance due at any given time resulting from the borrowing of money or from the purchase of goods and services. Pay-As-You-Go Capital Improvement Projects (PAYGo) Capital projects whose funding source is derived from City revenue sources other than through the sale of voter–approved bonds. Performance Measure Data collected to determine how effective or efficient a program is in achieving its objectives. Personnel Services Include the salaries and wages paid to employees plus the City’s contribution for fringe benefits such as retirement, social security, health, and workers’ compensation insurance. gLOSSARy A Preserve Bonds Represent excise tax revenue bonds and g.O bonds. The bonds are special revenue obligations of the Scottsdale Preserve Authority payable solely from and secured by either a 0.2% sales tax approved by City voters in 1995 and issued for the purpose of acquiring land for the McDowell Sonoran Preserve or a 0.15% sales tax approved by City voters in 2004 and issued for the purpose of acquiring land and construction of essential preserve related necessities such as proposed trailheads for the McDowell Sonoran Preserve. Primary Assessed valuation (limited Property value) In Arizona, the Primary Assessed Valuation is used to compute primary taxes for the maintenance and operation of school districts, community college districts, municipalities, counties, and the state. The Limited Property Value is calculated according to a statutory formula mandated by the Arizona State Legislation and cannot exceed the Full Cash Value (also known as Secondary Assessed Valuation). Primary Assessment The amount of tax calculated according to a statutory formula based on the Primary Assessed Valuation. Primary Property Tax Levied for the purpose of funding general government operations. Annual increases are limited to 2.0% of the previous year’s maximum allowable primary property tax levy plus allowances for new construction and annexation of new property and tort litigation settlements. Program A group of related activities performed by one or more organizational units for the purpose of accomplishing a function for which the City is responsible. A program differs from a division from the standpoint that cost centers from different departments may make up a program while cost centers from the same department make up a division. APPendIx Program Budget A budget, which allocates money to the functions or activities of a government, rather than to specific items of cost or to specific departments. Property Tax Based according to value of property and is used as the source of monies to pay general obligation debt (secondary property tax) and to support the general fund (primary property tax). Each year the Maricopa County Assessor’s Office determines the value of all property within the county, including City buildings and individual homes. These assessment values are then used on a pro-rata basis for levying property taxes. Property taxes are paid twice a year. The first half is due on October 1st and the second half is due on the following March 1st. Proposition 400 (Regional Sales Tax) Proposition 400 (Regional Sales Tax) represents revenues received from the 2004 voter approved 20-year extension of a half-cent transportation sales tax in Maricopa County that was first approved in 1985 to fund freeway construction. Racketeered Influenced Corrupt organizations (RICo) Funds Funds obtained from an anti–racketeering revolving fund maintained by either the Federal or State government as a result of asset forfeitures from criminal enterprises and are allocated to municipalities for approved non–recurring public safety expenditures. Rebudget Carryover represents encumbered and committed funds carried forward to the next fiscal year budget. Refunding A procedure whereby an issuer refinances an outstanding bond issue by issuing new bonds. There are generally two major reasons for refunding: (1) to reduce the issuer’s interest costs or (2) to remove a burdensome or restrictive covenant imposed by the terms of the bonds being refinanced. The proceeds of the gLOSSARy A new bonds are either deposited into escrow to pay the debt service on the outstanding obligations when due, or they are used to immediately retire the outstanding obligations. The new obligations are referred to as the refunding bonds and the outstanding obligations being refinanced are referred to as the refunded bonds or the prior issue. Regional Sales Tax (Proposition 400) Regional Sales Tax (Proposition 400) represents revenues received from the 2004 voter approved 20-year extension of a half-cent transportation sales tax in Maricopa County that was first approved in 1985 to fund freeway construction. Reserve An account which records a portion of the fund balance which must be segregated for some future use and which is, therefore, not available for further appropriation or expenditure. Revenue Bonds Bonds payable from a specific source of revenue, which do not pledge the full faith, and credit of the issuer. Revenue bonds are payable from identified sources of revenue and do not affect the property tax rate. Pledged revenues may be derived from operation of the financed project, grants, excise, or other specified non–property tax. Secondary Assessed valuation (Full Cash value) In Arizona, the Secondary Assessed Valuation is used to compute secondary taxes, which may consist of bonds, budget overrides, and special districts such as fire, flood control, and other limited purpose districts. Full Cash Value is a reflection of the market value of property. Secondary Assessment The amount of tax calculated according to a statutory formula based on the Secondary Assessed Valuation. 264 APPendIx Secondary Property Tax Levied for the purpose of funding the principal, interest, and redemption charges on general obligation bonds of the City. The amount of this tax is determined by the annual debt service requirements on the City’s general obligation bonds. Self Insurance The retention by an entity of a risk of loss arising out of the ownership of property or from some other cause instead of transferring that risk through the purchase of an insurance policy. Service levels Describe the present services provided by a City department and/or division within the department. 265 Sinking Fund An account into which a debt issuer makes periodic deposits to ensure the timely availability of sufficient monies for the payment of debt service requirements. The revenues to be deposited into the sinking fund and payments there from are determined by the terms of the bond contract. Special Assessment A compulsory levy made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. Special Revenue Funds Established to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City maintains the following five Special Revenue Funds: highway user Revenue, Preservation Privilege Tax, Transportation Privilege Tax, Special Programs, and grants. Stakeholder Stakeholder refers to anyone affected by or who has a stake in government. This term stakeholder includes, but is not limited to: citizens, customers, elected officials, management, employees, and their representa- gLOSSARy A tives (whether unions or other agents), businesses, vendors, other governments, and the media. Street light Improvement districts Formed to provide a means for properties within a district to maintain streetlights within their boundaries. A street light tax is levied against the property owner to cover the cost of electrical billings received and paid by the City. Tax levy The total amount of revenue to be raised by general property taxes for purposes specified in the Tax Levy Ordinance. Tax Rate The amount of tax levied for each $100 of assessed valuation. Taxes Compulsory charges levied by a government for the purpose of financing services performed for common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those paying such charges, such as water service. Transfers The authorized exchanges of cash or other resources between funds, divisions, departments and/or capital projects. Transportation Privilege Tax Capital Fund Established to account solely for transportation projects. Trend Analysis Examines changes over time, which provides useful management information such as the City’s current financial situation and its future financial capacity to sustain service levels. APPendIx gLOSSARy A Trust Funds Established to administer resources received and held by the City as the trustee or agent for others. use of these funds facilitates the discharge of responsibility placed upon the City by virtue of law or other similar authority. unreserved Fund Balance The portion of a fund’s balance that is not restricted for a specific purpose and is available for general appropriation. unrestricted General Capital Fund Established to account for transfers-in from the general Fund and for any other activity for which a special capital fund has not been created. user Fee The fee charged for services to the party or parties who directly benefits. 266 APPendIx 267 BuDgET ADOPTION ORDINANCE A APPendIx BuDgET ADOPTION ORDINANCE A 268 APPendIx 269 BuDgET ADOPTION ORDINANCE A APPendIx $ 230,191,420 ADOPTED BUDGETED EXPENDITURES 2009/10 FUND $ 232,507,122 DIRECT 21,773,080 PROPERTY $ 230,191,420 134,446,509 59,546,275 Special Revenue Funds $ 24,713,673 ACTUAL ESTIMATED EXPENDITURES FUND BALANCE 2009/10* July 1, 2010** 64,290,315 General Fund A BuDgET ADOPTION ORDINANCE 70,893,771 TAX S REVENUES 2010/11 $ (4,124,242) NET 93,982,781 INTERFUND ESTIMATED REVENUES OTHER OTHER THAN FINANCING PROPERTY TAXES SOURCES/(USES) 2010/11*** 2010/11 PRIMARY: 15,739,088 $ 37,186,112 TOTAL FINANCIAL RESOURCES AVAILABLE 2010/11 TRANSFERS IN/(OUT) 2010/11 - 1,322,028 $ 24,713,673 $ 296,006,800 21,773,080 234,597,941 $ - (27,933,498) BUDGETED EXPENDITURES 2010/11 - $ (4,124,242) $ 292,373,484 93,982,781 577,616,800 (27,933,498) 87,822,363 1,322,028 199,611,765 33,743,833 88,715,249 $ ENDING FUND BALANCE 33,743,833 263,667,810 $ 28,705,674 200,000,000 42,181,814 66,043,646 $ 21,778,717 1,115,805, SECONDARY: 118,447,661 64,290,315 Debt Service Funds 66,800,824 15,739,088 37,910,300 Capital Projects Funds 634,929,200 134,446,509 296,006,800 577,616,800 Enterprise Funds 127,556,463 118,447,661 62,767,370 199,611,765 - 18,882 5,400 3,521 16,000 - Expendable Trust Funds 6,875,839 Internal Service Funds TOTAL ALL FUNDS 5,400 3,521 P 200,000,000 PRIMARY: 33,270,679 11,563,506 6,875,839 33,270,679 1,702,544 11,438,071 $ 1,144,269,768 $ 613,803,419 $ 466,746,650 $ 64,326,517 $ 1,118,585,386 42,181,814 16,000 (43,826,507) - 11,438,071 - $ 200,000,000 (41,400) $ - (43,826,507) $ 15,776,063 72,939,186 1,115,805,414 712,669,800 $ 403,135,614 218,552,628 153,510,110 $ 65,042,518 19,521 19,500 46,369,894 18,429,213 $ 27,940,681 $ 1,849,658,553 $ 1,287,279,265 $ 562,379,288 $ - $ 19, 21 (41,400) - 46,369, $ 1,849,658, E $ EXPENDITURE LIMITATION COMPARISON 3 4 1. Budgeted expenditures 5 1,287,279,265 - 2 2009/10 1,287,279,265 2010/11 (918,334,597) $ 1,144,269,768 $ $ 368,944,668 2. Add/subtract: estimated net reconciling items $ 6 3. Budgeted expenditures adjusted for reconciling items - 1,144,269,768 4. Less: estimated exclusions 1,287,279,265 - 445,247,515 1,287,279,265 (777,814,382) (918,334,597) 5. Amount subject to the expenditure limitation $ 366,455,386 $ 368,944,668 6. EEC or voter-approved alternative expenditure limitation $ 436,288,678 $ 445,247,515 * Includes expenditure adjustments approved in FY 2009/10 from Schedule E ** Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. *** Does not include transfers-in SChEDuLE A 270 APPendIx 2009/10 FISCAL YEAR 1. A BuDgET ADOPTION ORDINANCE Maximum allowable primary property tax levy $ 25,584,407 2010/11 FISCAL YEAR $ 26,416,217 $ 26,416,217 A.R.S. §42-17051(A). 2. 3. 4. Amount received from primary property taxation in the 2008/09 fiscal year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18). - Property tax levy amounts A. Primary property taxes B. Secondary property taxes C. Total property tax levy amounts $ 25,584,407 31,795,895 $ 57,380,302 $ 24,305,187 608,194 24,913,381 (1) 2009/10 levy (2) Prior years’ levies (3) Total secondary property taxes $ 30,207,965 30 207 965 972,628 31,180,593 Total property taxes collected $ 56,093,974 $ 0.3650 0.3782 0.7432 37,910,300 $ 64,326,517 $ 0.3836 0.5140 0.8976 Property taxes collected* A. Primary property taxes (1) 2009/10 levy (2) Prior years’ levies (3) Total primary property taxes 271 B. C. 5. $ Secondary property taxes Property tax rates A. City tax rate (1) (2) (3) Primary property tax rate Secondary property tax rate Total city tax rate B. Special assessment district tax rates $ $ Secondary property tax rates - As of the date the tentative budget was prepared, the city was operating 355 special assessment districts (streetlight improvement districts) for which secondary property taxes are levied. For information pertaining to these special assessment districts and their tax rates, please contact the City of Scottsdale Finance and Accounting Division. Includes actual property taxes collected as of the date the proposed budget was prepared plus estimated property tax collections for the remainder of the fiscal year. SCHEDULE B APPendIx A BuDgET ADOPTION ORDINANCE ACTUAL REVENUES 2009/10* BUDGETED REVENUES 2009/10 SOURCE OF REVENUES ESTIMATED REVENUES 2010/11 GENERAL FUND Taxes - Local Privilege & Use Tax (1.0%) Privilege & Use Tax - Public Safety (.10%) Transient Occupancy Tax Light & Power Franchise Fee Cable TV Franchise Fee Salt River Project In Lieu Fee Stormwater Water Quality Charge Taxes - From Other Agencies State Shared Sales Tax State Revenue Sharing Auto Lieu Tax Licenses/Permits/Service Charges Business Licenses & Fees Building Permit Fees & Charges Fire Service Charges Recreation Fees WestWorld Equestrian Facility Fees Fines and Forfeitures Court Fines Parking Fines Photo Enforcement Fines Library Fines & Fees Interest Earnings/Property Rental Interest Earnings P Property t Rental R t l Other Revenue/Resources Miscellaneous 30 Day Towing Capital Improvement Plan Cost Allocation Reimbursements Intergovernmental Revenue Indirect/Direct Cost Allocation Contingent / Reserve Appropriation Total General Fund $ $ 75,900,000 7,362,300 8,231,300 8,400,000 3,600,000 139,000 863,000 $ 78,936,000 7,656,792 7,079,822 8,400,000 3,300,000 139,000 863,000 $ 80,514,720 7,809,928 10,591,667 8,200,000 3,300,000 140,000 888,890 18,047,839 30,308,042 8,000,000 17,347,839 30,308,948 8,000,000 17,611,632 22,845,634 8,156,740 1,680,000 8,149,000 2,350,000 3,022,000 2,888,000 1,680,000 8,149,000 1,346,745 3,022,000 2,873,000 1,709,167 8,220,000 644,641 3,360,000 2,610,500 7,166,300 495,000 1,655,700 389,640 7,156,414 504,886 1,655,700 299,640 7,277,439 425,000 1,756,727 322,000 1,656,860 3,194,029 3 194 029 1,656,860 3,194,029 3 194 029 958,956 2,776,170 2 776 170 1,000,000 400,000 861,588 350,000 1,049,900 14,773,794 5,000,000 216,933,292 1,016,400 400,000 861,588 365,000 932,057 12,163,344 4,853,381 214,161,445 500,000 430,000 861,562 405,000 850,584 12,742,338 28,688,646 234,597,941 $ $ * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the budget was prepared, plus estimated revenues for the remainder of the year. SCHEDULE C 272 APPendIx A BuDgET ADOPTION ORDINANCE ACTUAL REVENUES 2009/10* BUDGETED REVENUES 2009/10 SOURCE OF REVENUES ESTIMATED REVENUES 2010/11 SPECIAL REVENUE FUNDS Transportation/HURF Fund Highway User Tax Privilege Tax (.20%) Local Transportation Assistance Fund I Local Transportation Assistance Fund II Prop 400 Regional Sales Tax Charges for Services Capital Improvement Plan Cost Allocation Federal Grants Miscellaneous Total Transportation/HURF Fund 273 Special Programs Fund Court Enhancement/JCEF/FTG Downtown Cultural/Community Arts Human Resources - Cultural Diversity Prog Police Community Services Fire Economic Vitality - WestWorld Contingent / Reserve Appropriation Total Special Programs Fund Preservation Privilege Tax Funds Privilege Tax (.20%) Privilege Tax (.15%) Interest Earnings Total Preservation Privilege Tax Funds Grant Funds Community Development Block Grant HOME Funds Section 8 Housing Federal and State Grants Contingent / Reserve Appropriation Total Grant Funds Special Districts Street Light Districts Total Special Districts Total Special Revenue Funds $ $ 14,187,000 14,345,100 1,057,100 311,628 1,568,364 819,926 120,000 32,409,118 $ 1,129,334 150,000 10,000 3,371,817 1,955,260 500 1,500,000 8,116,911 $ $ $ 12,900,000 14,918,904 585,184 336,302 311,628 819,926 2,605,000 20,000 32,496,944 $ 1,129,334 150,000 5,600 3,371,817 1,955,260 500 1,500,000 8,112,511 14,724,600 11,385,000 302,000 26,411,600 $ $ $ 2,337,449 1,000,264 7,188,252 5,095,773 9,500,000 25,121,738 $ $ $ $ $ $ $ 13,814,970 15,217,282 300,000 819,926 1,995,000 20,000 32,167,178 $ 1,079,508 150,000 5,600 3,589,317 1,740,900 500 200,000 1,500,000 8,265,825 15,313,584 11,840,400 302,000 27,455,984 $ $ $ 2,337,449 1,000,264 7,188,252 7,763,133 18,289,098 $ 2,291,263 1,159,838 6,642,546 4,539,824 10,410,176 25,043,647 621,068 621,068 $ $ 279,376 279,376 $ $ 574,387 574,387 92,680,435 $ 86,633,913 $ 93,982,781 $ $ 15,619,856 12,077,208 234,680 27,931,744 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the budget was prepared, plus estimated revenues for the remainder of the year. SCHEDULE C APPendIx A BuDgET ADOPTION ORDINANCE ACTUAL REVENUES 2009/10* BUDGETED REVENUES 2009/10 SOURCE OF REVENUES ESTIMATED REVENUES 2010/11 DEBT SERVICE FUNDS Special Assessment Debt Fund Special Assessments - Principal Total Special Assessment Debt Fund MPC Excise Debt MCSD/AZ STA Contributions Spring Exhibition Surcharge Total MPC Excise Debt Fund Interest Earnings Total Interest Earnings Total Debt Service Funds $ $ 877,199 877,199 $ $ 877,199 877,199 $ $ 839,884 839,884 $ $ $ 612,144 145,000 757,144 $ $ 612,144 145,000 757,144 $ 337,144 145,000 482,144 $ $ 11,178 11,178 $ $ 11,178 11,178 $ $ $ 1,645,521 $ 1,645,521 $ 1,322,028 $ 6,667,000 9,025,400 5,099,200 30,000 21,057,300 33,402,100 50,000 370,129,000 65,500,000 510,960,000 $ 3,172,600 17,100,000 3,574,700 16,217,200 3,900,000 37,000 75,000 58,206,091 102,282,591 $ 3,410,000 50,184,900 2,006,800 25,208,700 21,284,000 37,000 440,485,400 35,000,000 577,616,800 34,705,460 95,461,373 893,490 2,074,720 3,610,132 2,000,000 138,745,175 $ 33,600,150 92,374,196 863,275 2,245,177 4,576,584 2,000,000 135,659,382 $ 2,712,463 78,001 126,842 2,917,306 $ 2,977,304 70,000 123,000 3,170,304 $ - CAPITAL PROJECT FUNDS Capital Improvement Program Development Fees Prop 400 Regional Sales Tax Interest Earnings Intergovernmental Grant Revenue Contributions In-Lieu Fees Miscellaneous Estimated Unexpended Prior Year Budget Contingent / Reserve Appropriation Total Capital Project Funds $ $ $ ENTERPRISE FUNDS Water and Sewer Utility Funds Sewer Charges Water Charges Effluent Sales Interest Earnings Miscellaneous Contingent / Reserve Appropriation Total Water and Sewer Funds Aviation Fund Airport Fees Interest Earnings Jet Fuel Tax Contingent / Reserve Appropriation Total Aviation Fund $ $ $ $ $ $ $ $ 33,683,178 97,153,098 880,541 846,879 17,166,245 17,058,835 166,788,776 2,977,304 70,000 123,000 4,436,278 7,606,582 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the budget was prepared, plus estimated revenues for the remainder of the year. SCHEDULE C 274 APPendIx A BuDgET ADOPTION ORDINANCE SOURCE OF REVENUES Solid Waste Fund Refuse Collection Interest Earnings Miscellaneous Contingent / Reserve Appropriation Total Solid Waste Fund Total Enterprise Funds ACTUAL REVENUES 2009/10* BUDGETED REVENUES 2009/10 $ $ 19,536,531 54,692 727,800 500,000 20,819,023 $ $ $ ESTIMATED REVENUES 2010/11 $ 19,406,284 106,611 637,505 500,000 20,650,400 $ $ 19,409,471 53,453 687,242 5,066,241 25,216,407 162,481,504 $ 159,480,086 $ 199,611,765 8,800 10,000 18,800 $ 6,000 10,000 16,000 $ 6,000 10,000 16,000 EXPENDABLE TRUST FUNDS Trusts Mayor's Committee for Emp of Handicapped Contingent / Reserve Appropriation Total Trust Funds $ $ $ INTERNAL SERVICE FUNDS 275 Fleet Management Fund Equipment M & O/Acquisition Rates Miscellaneous Revenue Interest Earnings Internal Service Offset Contingent / Reserve Appropriation Total Fleet Management Fund Self Insurance Fund Property Casualty Revenues Short Term Disability Revenues Short-Term Group Health/Dental Revenues Internal Service Offset Contingent / Reserve Appropriation Total Self Insurance Fund $ $ $ 13,575,018 200,000 155,000 (13,575,018) 355,000 $ $ $ $ 7,322,329 320,000 24,773,922 (25,928,922) 5,000,000 11,487,329 Total Internal Service Funds $ TOTAL ALL FUNDS $ 13,223,931 244,000 170,000 (13,223,931) 414,000 $ $ 14,067,695 200,000 91,000 (14,067,695) 750,000 1,041,000 $ $ 7,222,329 320,000 24,480,032 (25,356,948) 5,000,000 11,665,413 $ 4,919,939 320,000 21,787,669 (21,630,537) 5,000,000 10,397,071 11,842,329 $ 12,079,413 $ 11,438,071 996,561,881 $ 576,298,969 $ 1,118,585,386 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the budget was prepared, plus estimated revenues for the remainder of the year. SCHEDULE C APPendIx A BuDgET ADOPTION ORDINANCE OTHER FINANCING SOURCES/(USES) 2010/11 INTERFUND TRANSFERS 2010/11 IN OUT FUND GENERAL FUND $ - $ 12,592,002 $ 16,716,244 $ $ $ $ 2,447,155 5,225,833 7,672,988 $ 7,707,041 1,588,700 26,310,745 35,606,486 $ 33,743,833 $ 33,743,833 $ $ * $ 61,691,904 $ 61,691,904 $ $ 19,510,090 19,510,090 - $ 15,689,290 $ 15,689,290 $ $ 56,075,110 1,584,174 1,856,513 59,515,797 - $ $ 31,200 10,200 41,400 SPECIAL REVENUE FUNDS Transportation/HURF Fund Special Programs Fund Preservation Privilege Tax Funds Total Special Revenue Funds $ - DEBT SERVICE FUNDS Debt Service Fund Total Debt Service Funds $ $ - CAPITAL PROJECTS FUNDS Capital Projects Fund Total Capital Projects Funds $ $ ENTERPRISE FUNDS Water and Sewer Funds Aviation Fund Solid Waste Fund Total Enterprise Funds 200,000,000 200,000,000 $ $ INTERNAL SERVICE FUNDS Fleet Management Fund Self Insurance Fund Total Internal Service Funds $ TOTAL ALL FUNDS $ $ 200,000,000 * General Obligation and Municipal Properties Corporation Bonds SCHEDULE D $ - $ 131,390,017 - $ 131,390,017 276 APPendIx Adopted Budgeted Expenditures 2009/10 Fund/Divisions 277 GENERAL FUND Scottsdale City Council City Clerk City Attorney City Auditor City Court City Manager Community Services Public Safety - Police Public Safety - Fire Public Works Planning, Neighborhoods & Transportation Finance and Accounting Human Resources Information Technology Economic Vitality Administrative Services Leave Accrual Payments Estimated Division Savings Future Savings from Reorganization Early Retirement Incentive Program Bed Tax Encumbrance Debt Service Contingency / Reserve Appropriation Total General Fund SPECIAL REVENUE FUNDS Transportation/HURF Fund Planning, Neighborhoods & Transportation Public Works & Water Resources Leave Accrual Payments Estimated Division Savings Total Transportation/HURF Fund Special Programs Fund Economic Vitality - CVB City Court Downtown Cultural/Community Arts Human Resource Public Safety - Police Community Services Planning, Neighborhoods & Transportation Public Safety - Fire Economic Vitality - WestWorld Contingency / Reserve Appropriation Total Special Programs Fund Preservation Privilege Tax Funds Miscellaneous Debt Service Total Preservation Privilege Tax Funds A BuDgET ADOPTION ORDINANCE $ $ $ $ $ $ $ $ Expenditure Adjustments Approved 2009/10 790,904 904,960 6,384,959 837,820 4,699,829 1,742,708 38,499,264 87,544,937 28,711,445 18,983,113 17,163,847 5,061,932 4,085,768 10,333,523 9,630,700 3,213,317 1,790,184 (5,000,000) (12,536,834) 4,664,746 5,000,000 232,507,122 $ 13,631,274 17,649,007 86,262 (270,000) 31,096,543 $ 5,983,476 1,439,826 150,000 10,000 1,169,363 2,596,270 140,000 500 1,500,000 12,989,435 $ 2,200 951,855 954,055 $ $ $ $ $ (74,881) 308,027 (21,862) (22,256) (127,770) (132,846) (619,760) (2,075,296) (1,273,253) (622,220) (292,740) (10,364) (399,183) (470,002) (332,651) (77,436) (1,211,793) (865,306) 12,536,834 431,000 (2,108,563) (4,853,381) (2,315,702) $ (90,968) (5,111) (5,278) (2,248,891) (2,350,248) $ (352,276) (57,706) (50,000) (22,333) (1,279) (1,500,000) (1,983,594) $ - Budgeted Expenditures 2010/11 Actual Expenditures 2009/10* $ $ $ $ $ 716,023 1,212,987 6,363,097 815,564 4,572,059 1,609,862 37,879,504 85,469,641 27,438,192 18,360,893 16,871,107 5,051,568 3,686,585 9,863,521 9,298,049 3,135,881 578,391 (5,865,306) 431,000 2,556,183 146,619 230,191,420 $ 13,540,306 17,643,896 80,984 (2,518,891) 28,746,295 $ 5,631,200 1,382,120 100,000 10,000 1,147,030 2,594,991 140,000 500 11,005,841 $ 2,200 951,855 954,055 $ $ $ $ 616,489 1,189,115 5,979,807 827,586 4,669,882 1,407,520 37,353,595 82,991,710 27,893,809 17,659,448 16,997,179 4,935,907 3,525,008 9,903,567 11,715,214 2,816,220 1,754,607 (3,000,000) 1,245,141 4,497,360 28,688,646 263,667,810 12,063,783 14,935,409 43,100 (135,000) 26,907,292 4,995,833 1,363,190 176,150 5,000 1,860,394 2,336,378 125,000 200,000 1,500,000 12,561,945 $ * Includes actual expenditures recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures for the remainder of the fiscal year. SCHEDULE E 2,200 954,175 956,375 APPendIx A BuDgET ADOPTION ORDINANCE Fund/Divisions Grant Funds CDBG/HOME/Section 8 Housing Other Federal & State Grants Contingency / Reserve Appropriation Total Grant Funds Adopted Budgeted Expenditures 2009/10 $ $ 732,000 732,000 $ $ $ 70,893,771 GO Debt Service GO Bonds/Revenue Bonds $ MPC Excise Debt MPC Bonds Special Assessment Debt Special Assessment Bonds Total Special Revenue Funds $ $ 10,525,965 5,095,773 9,500,000 25,121,738 $ $ Actual Expenditures 2009/10* (6,832,640) (6,832,640) Special Districts Street Light Districts Total Special Districts $ Expenditure Adjustments Approved 2009/10 Budgeted Expenditures 2010/11 $ $ 10,525,965 5,095,773 2,667,360 18,289,098 $ 10,093,647 4,539,824 10,410,176 25,043,647 (181,014) (181,014) $ $ 550,986 550,986 $ $ 574,387 574,387 $ (11,347,496) $ 59,546,275 $ 66,043,646 51,276,535 $ (1,632,509) $ 49,644,026 $ 57,519,940 $ 7,907,329 $ (3,375) $ 7,903,954 $ 7,878,257 $ 7,616,960 $ (874,625) $ 6,742,335 $ 7,540,989 $ 66,800,824 $ (2,510,509) $ 64,290,315 $ 72,939,186 $ $ $ 127,152,600 7,293,909 134,446,509 $ $ (442,276,600) (58,206,091) (500,482,691) $ $ 569,429,200 65,500,000 634,929,200 $ 677,669,800 35,000,000 712,669,800 $ 634,929,200 $ (500,482,691) $ 134,446,509 $ 712,669,800 $ 3,056,221 62,751,275 25,726,463 11,068,211 2,000,000 104,602,170 $ (273,832) (4,253,685) 813,017 (1,964,522) (1,545,562) (7,224,584) $ 2,782,389 58,497,590 26,539,480 9,103,689 454,438 97,377,586 $ 2,639,025 65,354,670 28,058,005 9,663,088 17,058,835 122,773,623 1,604,983 363,942 301,466 2,270,391 $ (94,284) 51,253 (157,572) (200,603) $ 1,510,699 415,195 143,894 2,069,788 $ $ $ 812,552 15,687,169 2,500,566 19,000,287 $ $ 30 (644,036) (539,609) (500,000) (1,683,615) $ $ 812,522 16,331,205 3,040,175 500,000 20,683,902 $ 765,978 15,659,117 2,509,556 5,066,241 24,000,892 $ 127,556,463 $ (9,108,802) $ 118,447,661 $ 153,510,110 DEBT SERVICE FUNDS Total Debt Service Funds CAPITAL PROJECT FUNDS Capital Improvement Program Capital Projects Contingency / Reserve Appropriation Total Capital Projects Fund ENTERPRISE FUNDS Water and Sewer Utility Fund Finance and Accounting Water Resources Debt Service Indirect Cost Allocation Contingency / Reserve Appropriation Total Water and Sewer Fund Aviation Fund Economic Vitality Direct Cost Allocation (Fire) Indirect Cost Allocation Contingency / Reserve Appropriation Total Aviation Fund Solid Waste Fund Finance and Accounting Public Works Indirect Cost Allocation Contingency / Reserve Appropriation Total Solid Waste Fund Total Enterprise Funds $ $ $ $ $ $ $ $ $ $ 1,729,622 415,195 154,500 4,436,278 6,735,595 Includes actual expenditures recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures for the remainder of the fiscal year. SCHEDULE E 278 APPendIx A BuDgET ADOPTION ORDINANCE Adopted Budgeted Expenditures 2009/10 Fund/Divisions Expenditure Adjustments Approved 2009/10 Budgeted Expenditures 2010/11 Actual Expenditures 2009/10* EXPENDABLE TRUST FUND Trusts Mayor's Com. For Emp. of the Handicapped Contingency / Reserve Appropriation Total Trust Fund $ $ 8,882 10,000 18,882 $ $ (3,482) (10,000) (13,482) $ 577,627 351,087 (15,195) 169,870 1,083,389 $ $ $ 5,400 5,400 $ 9,500 10,000 19,500 $ INTERNAL SERVICE FUNDS Fleet Management Fund Public Works & Water Resources Internal Service Offset Leave Accrual Payments Estimated Division Savings Contingency / Reserve Appropriation Total Fleet Management Fund 279 Self Insurance Fund Finance and Accounting Human Resources Contingency / Reserve Appropriation Internal Service Offset Total Self Insurance Fund Total Internal Service Funds TOTAL ALL FUNDS $ 13,924,383 (13,575,018) 40,809 (400,000) (9,826) $ $ $ 7,538,332 24,963,922 5,000,000 (25,928,922) 11,573,332 $ (1,049,140) (293,890) (5,000,000) 571,974 (5,771,056) $ 11,563,506 $ $ 1,144,269,768 $ $ $ $ 14,502,010 (13,223,931) 25,614 (230,130) 1,073,563 $ $ $ 6,489,192 24,670,032 (25,356,948) 5,802,276 $ 7,238,302 25,937,669 5,000,000 (21,630,537) 16,545,434 (4,687,667) $ 6,875,839 $ 18,429,213 (530,466,349) $ 613,803,419 $ 1,287,279,265 $ $ 15,385,171 (14,067,695) 53,337 (237,034) 750,000 1,883,779 * Includes actual expenditures recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures for the remainder of the fiscal year. SCHEDULE E APPendIx A BuDgET ADOPTION ORDINANCE Adopted Budgeted Expenditures 2009/10 Division/Fund SCOTTSDALE CITY COUNCIL General Fund Total Scottsdale City Council Expenditure Adjustments Approved 2009/10 Actual Expenditures 2009/10* Budgeted Expenditures 2010/11 $ $ 790,904 790,904 $ $ (74,881) (74,881) $ $ 716,023 716,023 $ $ 616,489 616,489 Total City Clerk $ $ 904,960 904,960 $ $ 308,027 308,027 $ $ 1,212,987 1,212,987 $ $ 1,189,115 1,189,115 Total City Attorney $ $ 6,384,959 6,384,959 $ $ (21,862) (21,862) $ $ 6,363,097 6,363,097 $ $ 5,979,807 5,979,807 Total City Auditor $ $ 837,820 837,820 $ $ (22,256) (22,256) $ $ 815,564 815,564 $ $ 827,586 827,586 $ $ $ 4,572,059 1,382,120 5,954,179 $ $ (127,770) (57,706) (185,476) $ $ 4,699,829 1,439,826 6,139,655 $ 4,669,882 1,363,190 6,033,072 $ $ 1,742,708 1,742,708 $ $ (132,846) (132,846) $ $ 1,609,862 1,609,862 $ $ 1,407,520 1,407,520 $ 38,499,263 2,596,270 41,095,533 $ (619,759) (1,279) (621,038) $ 37,879,504 2,594,991 40,474,495 $ 37,353,595 2,336,378 39,689,973 87,544,937 1,169,363 88,714,300 $ (2,075,296) (22,333) (2,097,629) $ 85,469,641 1,147,030 86,616,671 $ (1,273,253) (1,273,253) $ 27,438,192 500 27,438,692 $ (622,220) (5,112) (644,036) 577,627 (693,741) $ 18,360,893 17,643,896 15,687,169 14,502,010 66,193,968 $ CITY CLERK General Fund CITY ATTORNEY General Fund CITY AUDITOR General Fund CITY COURT General Fund Special Revenue Fund - Special Programs Total City Court CITY MANAGER General Fund Total City Manager COMMUNITY SERVICES General Fund Special Revenue Fund - Special Programs Total Community Services PUBLIC SAFETY - POLICE General Fund Special Revenue Fund - Special Programs Total Public Safety - Police PUBLIC SAFETY - FIRE General Fund Special Revenue Fund - Special Programs Total Public Safety - Fire PUBLIC WORKS General Fund Special Revenue Fund - Transportation/HURF Enterprise Fund - Solid Waste Internal Service Fund - Fleet Management Total Public Works PLANNING, NEIGHBORHOODS & TRANSPORTATION General Fund Special Revenue Fund - Transportation/HURF Special Revenue Fund - Special Programs Special Districts Total Planning, Neighborhoods & Transportation FINANCE AND ACCOUNTING General Fund Enterprise Fund - Water & Sewer Enterprise Fund - Solid Waste Internal Service Fund - Self-Insurance Total Finance and Accounting $ $ $ $ $ $ $ $ $ $ $ 28,711,445 500 28,711,945 18,983,113 17,649,008 16,331,205 13,924,383 66,887,709 17,163,847 13,631,274 140,000 732,000 31,667,121 5,061,932 3,056,221 812,522 7,538,332 16,469,007 $ $ $ $ $ $ $ $ $ $ (292,740) (90,968) (181,014) (564,722) (10,364) (273,832) 30 (1,049,140) (1,333,306) $ $ $ $ $ $ $ $ $ $ $ $ 16,871,107 13,540,306 140,000 550,986 31,102,399 $ 5,051,568 2,782,389 812,552 6,489,192 15,135,701 $ $ $ 82,991,710 1,860,394 84,852,104 27,893,809 27,893,809 17,659,448 14,935,409 15,659,117 15,385,171 63,639,145 16,997,179 12,063,783 125,000 574,387 29,760,349 4,935,907 2,639,025 765,978 7,238,302 15,579,212 Includes actual expenditures recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures for the remainder of the fiscal year. SCHEDULE F 280 APPendIx Adopted Budgeted Expenditures 2009/10 Division/Fund HUMAN RESOURCES General Fund Special Revenue Fund - Special Programs Internal Service Fund - Self-Insurance Total Human Resources INFORMATION TECHNOLOGY General Fund Total Information Technology $ $ 4,085,769 10,000 24,963,922 29,059,691 $ $ $ Expenditure Adjustments Approved 2009/10 $ Actual Expenditures 2009/10* $ $ (399,184) (293,890) (693,074) 10,333,523 10,333,523 $ $ $ Budgeted Expenditures 2010/11 $ 3,686,585 10,000 24,670,032 28,366,617 $ $ 3,525,008 5,000 25,937,669 29,467,677 (470,002) (470,002) $ $ 9,863,521 9,863,521 $ $ 9,903,567 9,903,567 $ $ 9,298,049 5,731,200 1,510,699 16,539,948 $ $ (332,651) (402,276) (94,284) (829,211) $ 11,715,214 5,371,983 1,729,622 18,816,819 ECONOMIC VITALITY General Fund Special Revenue Fund - Special Programs Enterprise Fund - Aviation Total Economic Vitality $ 9,630,700 6,133,476 1,604,983 17,369,159 ADMINISTRATIVE SERVICES General Fund Total Administrative Services $ $ 3,213,317 3,213,317 $ $ (77,436) (77,436) $ $ 3,135,881 3,135,881 $ $ 2,816,220 2,816,220 $ $ 62,751,275 62,751,275 $ $ (4,253,685) (4,253,685) $ $ 58,497,590 58,497,590 $ $ 65,354,670 65,354,670 $ $ $ 684,989 (8,614,327) 431,000 11,748,149 415,195 (38,580,879) (33,915,873) $ $ (1,232,266) (2,944,327) 12,536,834 431,000 (2,661,703) 51,253 923,061 7,103,852 $ $ 1,917,255 (5,670,000) (12,536,834) 14,409,852 363,942 (39,503,940) (41,019,725) $ 1,851,044 (3,372,034) 1,245,141 12,327,144 415,195 (35,698,232) (23,231,742) $ 372,053,861 $ (5,932,539) $ 366,121,322 $ 380,595,392 WATER RESOURCES Enterprise Fund - Water & Sewer Total Water Resources 281 A BuDgET ADOPTION ORDINANCE OTHER Leave Accrual Payments Estimated Division Savings Future Savings from Reorganization Early Retirement Incentive Program Bed Tax Encumbrance Indirect Cost Allocation Direct Cost Allocation (Fire) Internal Offset Total Other TOTAL DIVISIONS * Includes actual expenditures recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures for the remainder of the fiscal year. SCHEDULE F APPendIx OPERATING BUDGET Division: Scottsdale City Council City Clerk City Attorney City Auditor City Court City Manager Community Services Public Safety - Police Public Safety - Fire Public Works Planning, Neighborhoods & Transportation Finance and Accounting Human Resources Information Technology Economic Vitality Administrative Services Water Resources Indirect/Direct Cost Allocation Internal Service Fund Offsets Debt Service Leave Accrual Payments Estimated Department Savings Bed Tax Encumbrance Capital Improvements Other Fiscal Activity: Grants Trusts and Special Districts Total 2010/11 Budget Contingency / Reserve Appropriation Total Budget Appropriation A BuDgET ADOPTION ORDINANCE $ CAPITAL BUDGET OTHER FISCAL ACTIVITY 616,489 1,189,115 5,979,807 827,586 6,033,072 1,407,520 39,689,973 84,852,104 27,893,809 63,639,145 29,185,962 15,579,212 29,467,677 9,903,567 18,816,819 2,816,220 65,354,670 12,742,339 (35,698,232) 106,450,926 1,851,044 (3,372,034) 1,245,141 TOTAL ACTIVITY $ $ 677,669,800 $ 486,471,931 62 500 000 62,500,000 $ 548,971,931 $ 677,669,800 35 000 000 35,000,000 $ 712,669,800 SCHEDULE G $ 14,633,471 583,887 $ 15,217,358 10 420 176 10,420,176 $ 25,637,534 $ $ 616,489 1,189,115 5,979,807 827,586 6,033,072 1,407,520 39,689,973 84,852,104 27,893,809 63,639,145 29,185,962 15,579,212 29,467,677 9,903,567 18,816,819 2,816,220 65,354,670 12,742,339 (35,698,232) 106,450,926 1,851,044 (3,372,034) 1,245,141 677,669,800 14,633,471 583,887 1,179,359,089 107 920 176 107,920,176 1,287,279,265 282 APPendIx 283 PROPERTy TAx LEVy ORDINANCE A APPendIx PROPERTy TAx LEVy ORDINANCE A 284 City of Scottsdale, Arizona Adopted FY 2010/11 Budget Program Operating Budget - Volume One 285