CITY OF TUCSON Adopted Update for Fiscal Year 2006 Fiscal Years 2005 & 2006 Biennial Budget Presented July 1, 2005 CITY COUNCIL HONORABLE ROBERT E. WALKUP JOSÉ J. IBARRA CAROL W. WEST KATHLEEN DUNBAR WARD 1 WARD 2 WARD 3 MAYOR SHIRLEY C. SCOTT STEVE LEAL FRED RONSTADT WARD 4 WARD 5 WARD 6 CITY ADMINISTRATION MIKE HEIN CITY MANAGER MICHAEL D. LETCHER DEPUTY CITY MANAGER LIZ RODRIGUEZ MILLER BENNY YOUNG KAREN THORESON ASSISTANT CITY MANAGER ASSISTANT CITY MANAGER ASSISTANT CITY MANAGER TABLE OF CONTENTS Vision Statement ..................................................................................................................................................... City of Tucson Organization Chart Fiscal Year 2006 ....................................................................................... City of Tucson Officials and Directors ............................................................................................................... Biennial Budget Update Calendar Fiscal Year 2006 .......................................................................................... How to Use This Budget ....................................................................................................................................... Distinguished Budget Presentation Award ......................................................................................................... i ii iii iv v vi SECTION A CITY MANAGER'S MESSAGE City Manager’s Message, City of Tucson Fiscal Year 2006 Adopted Budget................................................ Budget Overview .................................................................................................................................................... A-1 A-4 SECTION B RECOMMENDATIONS Significant Adjustments to the Fiscal Year 2006 Budget.................................................................................. Revenue Adjustments to the Fiscal Year 2006 Budget..................................................................................... Expenditure Adjustments to the Fiscal Year 2006 Budget .............................................................................. B-1 B-2 B-5 Elected and Official Mayor and Council......................................................................................................................................... City Manager ................................................................................................................................................... City Clerk......................................................................................................................................................... City Attorney................................................................................................................................................... B-7 B-8 B-9 B-10 Neighborhood Services City Court ........................................................................................................................................................ Community Services ...................................................................................................................................... Fire.................................................................................................................................................................... Library.............................................................................................................................................................. Neighborhood Resources ............................................................................................................................. Parks and Recreation ..................................................................................................................................... Tucson City Golf............................................................................................................................................ Police................................................................................................................................................................ Office of Equal Opportunity Programs and Independent Police Review............................................ Office of the Public Defender ..................................................................................................................... B-11 B-12 B-13 B-14 B-15 B-16 B-17 B-18 B-19 B-20 TABLE OF CONTENTS SECTION B RECOMMENDATIONS (Continued) Environment and Development Development Services................................................................................................................................... Transportation ................................................................................................................................................ Urban Planning and Design ......................................................................................................................... Utility Services-Environmental Services..................................................................................................... Utility Services-Tucson Water...................................................................................................................... Zoning Examiner ........................................................................................................................................... B-21 B-22 B-24 B-25 B-26 B-28 Strategic Initiatives Tucson Convention Center .......................................................................................................................... Office of Economic Development ............................................................................................................. Intergovernmental Relations ........................................................................................................................ Tucson-Mexico Trade Office....................................................................................................................... B-29 B-30 B-31 B-32 Support Services Budget and Research ..................................................................................................................................... Finance............................................................................................................................................................. General Services ............................................................................................................................................. Human Resources .......................................................................................................................................... Information Technology............................................................................................................................... Procurement.................................................................................................................................................... B-33 B-34 B-35 B-36 B-37 B-38 Non-Departmental ................................................................................................................................................. Position Changes to the Fiscal Year 2006 Budget ............................................................................................. B-39 B-41 SECTION C LEGAL AUTHORIZATION Legal Requirements Legal Requirements Imposed by the State................................................................................................. Legal Requirements Imposed by the City Charter.................................................................................... The City’s Budget Process ............................................................................................................................ Financial Policies and Practices ............................................................................................................................ Statement Required by Arizona Revised Statutes §42-17102 Relative to Property Taxation ..................... C-1 C-2 C-3 C-5 C-7 TABLE OF CONTENTS SECTION C LEGAL AUTHORIZATION (Continued) City of Tucson Property Tax Summary............................................................................................................... City of Tucson Residential Property Owner Tax Valuation Fiscal Year 2005 Property Taxes ................................................................................................................. Budget Adoption Resolution No. 20102............................................................................................................. C-8 C-9 C-10 SECTION D COMMUNITY STATISTICAL PROFILE City of Tucson Area and Population Growth Charts ....................................................................................... Number of City Employees Per 1,000 Population Chart................................................................................. Selected Economic Indicators – Tucson Metro Area ....................................................................................... Community Profile ................................................................................................................................................. Benchmark Project ................................................................................................................................................. Benchmark Metropolitan Cities and 2002 Population Map............................................................................. Economic Benchmarks .......................................................................................................................................... Demographic Benchmarks .................................................................................................................................... D-1 D-2 D-3 D-4 D-9 D-10 D-11 D-16 SECTION E SUMMARY INFORMATION City of Tucson Components of the Total Financial Plan................................................................................. Revenues - Fiscal Year 2006 Adopted Sources and Pie Chart......................................................................... Expenditures - Fiscal Year 2006 Adopted Summary and Pie Chart............................................................... Summary of Expenditures by Department......................................................................................................... Summary by Character of Expenditures ............................................................................................................. Revenues and Expenditures Comparisons ......................................................................................................... Explanation of City Funds .................................................................................................................................... Comparison of General Purpose Revenues and Total Revenues ................................................................... Revenues and Expenditures Summary Fiscal Year 2006 by Operating and Capital .................................... Revenues and Expenditures Comparisons and Fund Balance - General Fund ............................................ Revenues and Expenditures Comparisons and Fund Balance - Other Funds.............................................. All Funds Summary ................................................................................................................................................ General Fund........................................................................................................................................................... E-1 E-2 E-3 E-4 E-5 E-6 E-7 E-9 E-10 E-11 E-12 E-13 E-15 TABLE OF CONTENTS SECTION E SUMMARY INFORMATION (Continued) Special Revenue Funds........................................................................................................................................... Enterprise Funds..................................................................................................................................................... Debt Service Funds ................................................................................................................................................ Capital Projects Funds ........................................................................................................................................... Revenue Descriptions ............................................................................................................................................ Primary Property Tax .................................................................................................................................... Secondary Property Tax................................................................................................................................ City Business Privilege (Sales) Tax .............................................................................................................. Transient Occupancy and Room Taxes...................................................................................................... Licenses and Permits ..................................................................................................................................... Public Utility Tax and Utility Franchise Fees ............................................................................................ Fines, Forfeitures, and Penalties .................................................................................................................. Vehicle License (Auto Lieu) Tax ................................................................................................................. State Sales Tax ................................................................................................................................................ State Revenue Sharing ................................................................................................................................... Highway User Revenue Fund (HURF) Allocation ................................................................................... Local Transportation Assistance Fund (LTAF) ........................................................................................ Ten-Year Adopted City Staffing Comparison with Fiscal Years 2005 and 2006 ......................................... Full-Time Equivalent Positions Permanent and Non-Permanent Fiscal Years 2005 and 2006 ......................................................................................................................... Full-Time Equivalent Positions General Purpose Funds and Other Funds Fiscal Years 2005 and 2006 .......................................................................................................................... Fiscal Year 2006 City of Tucson Annual Salary Scale – Exempt Schedule ................................................... Fiscal Year 2006 City of Tucson Annual Salary Scale Police – Exempt Schedule ....................................... Fiscal Year 2006 City of Tucson Annual Salary Scale Fire – Exempt Schedule........................................... Fiscal Year 2006 City of Tucson Annual Salary Scale Legal – Exempt Schedule......................................... Fiscal Year 2006 City of Tucson Annual Salary Scale Information Technology – Exempt Schedule .................................................................................................................. Fiscal Year 2006 City of Tucson Annual Salary Scale Golf and Ranch – Exempt Schedule...................... Fiscal Year 2006 City of Tucson Annual Salary Scale – Non-Exempt Schedule.......................................... Fiscal Year 2006 City of Tucson Annual Salary Scale Police – Non-Exempt Schedule.............................. Fiscal Year 2006 City of Tucson Annual Salary Scale Fire – Non-Exempt Schedule ................................. Fiscal Year 2006 City of Tucson Hourly (Non-Permanent) Schedule – Non-Exempt............................... E-22 E-29 E-32 E-34 E-36 E-36 E-37 E-38 E-39 E-40 E-41 E-42 E-43 E-44 E-45 E-46 E-47 E-49 E-54 E-56 E-58 E-59 E-60 E-61 E-61 E-62 E-63 E-64 E-65 E-66 TABLE OF CONTENTS SECTION F CAPITAL BUDGET SUMMARY Capital Budget Summary ....................................................................................................................................... Capital Budget Summary by Department - Table I ........................................................................................... Capital Budget Summary by Funding Source - Table II................................................................................... Capital Budget Summary of Operating Budget Impacts - Table III............................................................... F-1 F-4 F-5 F-7 SECTION G CITY STRATEGIC PLAN City Strategic Plan ................................................................................................................................................... City Strategic Plan Focus Areas and Strategies .................................................................................................. G-1 G-3 SECTION H RIO NUEVO Rio Nuevo ................................................................................................................................................................ H-1 SECTION I GLOSSARY Glossary of Terms .................................................................................................................................................. Acronyms and Initialisms ...................................................................................................................................... I-1 I-7 SECTION J INDEX Index ......................................................................................................................................................................... J-1 CITY OF TUCSON ORGANIZATION CHART FISCAL YEAR 2006 Mayor and Council City Manager City Clerk Assistant City Manager Neighborhood Services City Attorney Assistant City Manager Assistant City Manager Deputy City Manager Environment and Development Strategic Initiatives Support Services Tucson Convention Center City Court Development Services Community Services Transportation Fire Urban Planning and Design Intergovernmental Relations General Services Library Utility Services Tucson-Mexico Trade Office Human Resources Neighborhood Resources Zoning Examiner Rio Nuevo Project Information Technology** Economic Development Budget and Research Finance Parks and Recreation* Procurement Police Agenda*** Equal Opportunity Programs and Independent Police Review Organizational Development *** Public Defender * Includes Tucson City Golf ** The Information Technology Director is also the Chief Information Officer ***Budgeted under the City Manager ii CITY OF TUCSON OFFICIALS AND DIRECTORS OFFICIALS STRATEGIC INITIATIVES City Manager, Mike Hein Economic Development, Kendall Bert Deputy City Manager, Mike Letcher Intergovernmental Relations, C. Mary Okoye Assistant City Manager, Liz R. Miller Rio Nuevo Project, Gregory Shelko Assistant City Manager, Benny J. Young Tucson Convention Center, Richard Singer Assistant City Manager, Karen Thoreson Tucson-Mexico Trade Office, Augustine Garcia City Attorney, Mike Rankin SUPPORT SERVICES City Clerk, Kathleen S. Detrick Agenda, Joan Stauch NEIGHBORHOOD SERVICES Budget and Research, James A. Cameron City Court, Antonio Riojas Finance, J. Scott Douthitt Community Services, M. Emily Nottingham General Services, Ronald Lewis Equal Opportunity Programs and Independent Police Review, Liana Perez Human Resources, Suzanne Machain (Acting) Fire, Dan Newburn Information Technology and Chief Information Officer, Ann Strine Library, Nancy Ledeboer Organizational Development, Julie Edmonds-Mares Neighborhood Resources, Vacant Procurement, Wayne A. Casper Parks and Recreation, Fred H. Gray, Jr. Police, Richard Miranda Public Defender, Charles Davies ENVIRONMENT AND DEVELOPMENT Development Services, Ernest A. Duarte Transportation, James W. Glock Urban Planning and Design, Albert Elias Utility Services, David Modeer Zoning Examiner, Peter Gavin iii BIENNIAL BUDGET UPDATE CALENDAR FISCAL YEAR 2006 Sequence of events in the budget-setting process for Fiscal Year 2006 October 25, 2004 Mayor and Council Study Session – Fiscal Year 2006 Budget Strategies. February 1, 2005 Submission of the City Manager’s Proposed Five-Year Capital Improvement Program Fiscal Years 2006 through 2010. February 15, 2005 Submission of the Report from the Citizens Bond Project Oversight Committee to Mayor and Council. March 1 and 8, 2005 Mayor and Council review and approval of the Five-Year Capital Improvement Program, Fiscal Years 2006 through 2010. March 22, 2005 Mayor and Council Study Session – Fiscal Year 2006 Budget Strategies and Financial Sustainability. April 19, 2005 Submission of the City Manager's Biennial Budget Recommended Update for Fiscal Year 2006 to Mayor and Council. May 3, 2005 Public hearing on Biennial Budget Recommended Update for Fiscal Year 2006. May 17, 24, and June 7, 2005 Mayor and Council Study Sessions for the purpose of discussing the Biennial Budget Recommended Update for Fiscal Year 2006. June 7, 2005 Tentative Adoption of Biennial Budget Recommended Update for Fiscal Year 2006. June 14, 2005 Truth in Taxation Hearing on primary property tax levy for Fiscal Year 2006. June 14, 2005 Public Hearing on the Biennial Budget Update for Fiscal Year 2006 as Tentatively Adopted. June 14, 2005 Special Mayor and Council meeting for the purpose of final budget adoption. June 28, 2005 Adoption of Fiscal Year 2006 property tax levies. iv HOW TO USE THIS BUDGET Summary Information - Schedules contained in this section provide summary level information on the consolidated (operating and capital) city budget. Expenditure and revenue information, descriptions of funds, debt service information, staffing histories, and pay scales are summarized. This section is particularly helpful if the reader is interested in an overview of the city budget. This document guide outlines the City of Tucson’s Fiscal Years 2005 and 2006 Biennial Budget Adopted Update for Fiscal Year 2006. Copies of the budget are available at all branches of the TucsonPima Public Library, the University of Arizona Main Library, Pima Community College branch libraries, the City Clerk’s Office, and the Department of Budget and Research. In addition, the budget can be viewed on the City of Tucson Web site, http://www.tucsonaz.gov. Information can also be obtained by calling the Department of Budget and Research at (520) 791-4551 or e-mailing the department at budget&research@tucsonaz.gov. Capital Budget Summary - This section provides a summary of Fiscal Year 2006, the first year of the Five-Year Capital Improvement Program. City Strategic Plan - This section summarizes the strategic plan for the city including the process followed to identify the city’s focus areas. For Fiscal Year 2006, only one volume is used to present the adopted changes to the biennial budget. This document may be used with the adopted biennial budget document for Fiscal Years 2005 and 2006. The adopted update is organized as follows. Rio Nuevo - This is a summary of the Rio Nuevo district budget. Rio Nuevo is not part of the city budget but is included for information purposes. City Manager’s Message - This section includes the letter from the city manager transmitting the biennial budget update to the Mayor and Council and an overview of the budget. In the transmittal letter, the city manager highlights the key policy issues and programs in the biennial budget. The overview includes the following: • Where the Money Goes • Staffing • Where the Money Comes From • Citizen Impacts • State Set Spending Limit Glossary - The glossary defines terms and acronyms and initialisms used in the budget. Index - The index provides an alphabetical listing of the contents of the budget. A separate document containing the capital budget detail is also available. The Approved Five-Year Capital Improvement Program (CIP), Fiscal Years 2006 – 2010, includes an overview and department programs. Adopted Changes - This section summarizes the changes from the approved Fiscal Year 2006 budget to the adopted budget for both revenues and expenditures. Major changes are highlighted for each department. Legal Authorization - State and local legal provisions are presented, including the process for budget adoption and setting the property tax, public hearings, and a property tax summary. Community Statistical Profile - This section provides the reader with demographic information on Tucson and benchmark information that compares Tucson to comparable cities in the region. v DISTINGUISHED BUDGET PRESENTATION AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented an Award for Distinguished Budget Presentation to the City of Tucson for its Biennial Budget for the Fiscal Years beginning July 1, 2004 through June 30, 2006. To receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. The award is valid for a period of two years. vi OFFICE OF THE CITY MANAGER July 1, 2005 Honorable Mayor and Council Members: On June 14, 2005, the Mayor and Council adopted the budget update for Fiscal Year 2006. This is the second year of the Fiscal Years 2005 and 2006 Biennial Budget approved by the Mayor and Council in June of 2004. Fiscal Year 2006 continues much of the work begun in Fiscal Year 2005 in the areas of public safety and other services. The total adopted budget is $1,008 million, an increase of $89.8 million from the approved budget for Fiscal Year 2006. Most of the increase was in the capital budget, $88.8 million, with a $1 million increase in the operating budget. The most significant challenge addressed in this budget is funding for the Library. The approved budget for Fiscal Year 2006 was based on full funding of the Library system from the Pima County Library District tax. The current proposal is to transition funding to the Library District tax over a five-year period. This requires the city to contribute $8 million from the general fund in Fiscal Year 2006. A combination of higher state revenue sharing, lower personnel costs, deferred technology upgrades, and use of savings from Fiscal Year 2005 provide the necessary funding for the city’s share of the Library budget. This budget funds market-based salary adjustments, and other employee benefit requirements consistent with those already in the biennial budget. Also, in response to rising fuel costs, a $1.2 million increase is included. Revenue increases are primarily based on growing use of fee-based services and continued economic growth. The secondary property tax rate will increase six cents per $100 of assessed valuation over the Fiscal Year 2005 rate based on a $25 million bond sale this spring from the voter approved 2000 bonds. The primary rate reflects a small decrease to just under 35 cents per $100 of assessed valuation. A-1 Continuing to Invest in Community The Fiscal Years 2005 and 2006 Biennial Budget included a series of initiatives that concentrated on our city’s most pressing needs as expressed by the Mayor and Council and the community. The adopted update to Fiscal Year 2006 funds the following initiatives: ♦ The Police Department will add 27 police officers for a total of 1,028 officers for Fiscal Year 2006. The total cost of the new officers and related support staff is $2.8 million. ♦ Fire and paramedic services will be improved with the addition of a new ladder company and a paramedic company with 21 officers. Fire safety inspections will continue to be addressed with the addition of four inspectors. The combined cost of $1.6 million was part of the Fiscal Year 2006 approved budget. ♦ This budget adds $0.9 million and 24.25 positions to open and staff new or expanded Parks and Recreation facilities built with bond funds. Planned Parks and Recreation fee increases are not included in the budget. ♦ Library service improvements totaling approximately $2 million with 25.5 new positions, were included in the approved budget contingent on increased funding from Pima County. The current proposal to transition to full funding from the Pima County Library District tax still allows the city to continue with these service improvements. Funding to upgrade the Business License Management System approved for Fiscal Year 2006 is now deferred to Fiscal Year 2007. This change will help fund the city’s contribution to the Library system in Fiscal Year 2006. The budget for Fiscal Year 2006 also does not include funding to continue the aggressive roadway resurfacing program begun in Fiscal Year 2005. This is an issue that will be a priority in developing a longterm financial sustainability plan. Long-Term Financial Sustainability If the city is to move forward in meeting growing service demands in areas such as public safety, transportation, and other core services, a long-term approach to financial sustainability is needed. Current city revenues do not cover some existing core service needs and will not keep up with cost of improving core service delivery as our community grows in the future. A financial sustainability plan will provide a strategic framework and clear benchmarks for addressing future service needs. Such a plan will provide the community with a concise picture of the city’s future needs and assist the Mayor and Council in developing a plan of action to address current and future core service needs of the City. The financial sustainability plan will be developed as part of the Fiscal Years 2007 and 2008 Biennial Budget. A-2 BUDGET OVERVIEW The Tucson City Charter requires that the City Manager submit a recommended budget to the Mayor and Council on or before the first Monday in May for the following fiscal year. The Mayor and Council review the City Manager’s recommended budget and are required by the State of Arizona to adopt a balanced budget on or before the third Monday in August. For Fiscal Year 2006, the recommended update to the biennial budget was submitted to the Mayor and Council on April 19. The Mayor and Council adopted the budget on June 14. The Fiscal Year 2006 adopted budget, which totals just over $1 billion dollars, is the second year of the biennial budget for Fiscal Years 2005 and 2006. Approximately 58% of this budget is for enterprise funds ($190 million) and other restricted funds ($394 million) such as state and federal grants as well as voter approved bonds and other financing. The remaining 42% or $424 million is from general purpose funds. The total increase over the Fiscal Year 2006 approved budget is $89.9 million. While the operating budget increased $1.1 million, funding for the capital budget increased $88.8 million primarily from funding carried forward from Fiscal Year 2005. Fiscal Year 2006 $1,008 million General Purpose Funds $424 Enterprise Funds $190 Other Restricted Funds $394 The Fiscal Year 2006 budget also includes full funding of various initiatives begun in Fiscal Year 2005 as well as initiatives included in the approved Fiscal Year 2006 budget: ♦ $2.8 million for 27 Police officers and support staff (this includes $0.4 million for an additional four officers not part of the original approved budget) ♦ $1.6 million to add a Fire ladder company and paramedic unit with a combined 21 officers, and four officers to expand fire safety inspections ♦ $0.9 million to open new Parks and Recreation facilities with 24.25 staff ♦ $2.0 million to open two library branches and expand hours and services with 25.5 staff Total Budget ($ millions) FY 2005 Budget FY 2006 Approved Budget Change FY 2006 Adopted Budget Change General Purpose Funds Enterprise Funds Other Restricted Funds Total $ 394.9 $ 193.3 444.1 $ 1,032.3 $ 409.8 $ 14.9 192.5 (0.8) 316.2 (127.9) 918.5 $ (113.8) $ Operating Capital $ 795.4 $ 11.7 123.1 (125.5) 918.5 $ (113.8) $ 796.50 $ 1.1 211.9 88.8 $ 1,008.4 $ 89.9 Total 783.7 $ 248.6 $ 1,032.3 $ A-4 424.7 $ 14.9 190.1 (2.4) 393.6 77.4 $ 1,008.4 $ 89.9 This Budget Overview is organized into four sections: ♦ ♦ ♦ ♦ Where the Money Goes – Adopted Expenditure Budget and Staffing Where the Money Comes From – Estimated Revenue Sources Citizen Impacts State Set Spending Limit The overview will focus on the changes to Fiscal Year 2006 from the approved budget. WHERE THE MONEY GOES The city budget funds a broad range of services. Some departments are self-supporting and are included in the enterprise group, which makes up 17% of the city budget. Public safety, consisting of the Police, Fire, and judicial departments, makes up 22%. The four largest departments providing other direct services to the community (Parks and Recreation, Transportation, Community Services, and Library) use 23% of the budget. The capital budget for all departments makes up 21%, and other departments, including general support and debt service, make up the remaining 17%. Enterprise Departments include Environmental Services (4%), Golf (1%), and Water (12%) Fiscal Year 2006 Expenditures $1,008 million Police 14% Enterprise 17% Fire 6% Judicial 2% Library 2% Community Services 6% Parks and Recreation 5% Capital 21% Transportation 10% General Support 6% Other Debt Service 5% 6% A-5 Public safety budgets total 22% (Police, Fire & Judicial) Expenditure Changes Expenditures ($ millions) Operating Budgets Public Safety Department Police Fire Judicial Public Safety Sub-Total FY 2005 Budget $ FY 2006 Adopted Budget Change FY 2006 Approved Budget Change 128.0 $ 56.9 20.2 205.1 135.6 $ 62.1 21.3 219.0 7.6 5.2 1.1 13.9 $ 140.1 $ 63.6 21.5 225.2 4.5 1.5 0.2 6.2 Enterprise Departments Golf Utility Services Environmental Services Tucson Water Enterprise Sub-Total 10.7 11.0 0.3 10.9 (0.1) 32.1 114.6 157.4 35.9 118.6 165.5 3.8 4.0 8.1 37.1 118.9 166.9 1.2 0.3 1.4 Other Departments Transportation Community Services Library Parks and Recreation General Support* Debt Service Other Other Departments Sub-Total 121.0 82.1 20.4 44.4 60.8 48.2 44.3 421.2 96.0 78.4 23.5 46.4 65.0 57.4 44.2 410.9 (25.0) (3.7) 3.1 2.0 4.2 9.2 (0.1) (10.3) 100.7 65.9 23.5 46.2 65.5 55.9 46.7 404.4 4.7 (12.5) -0(0.2) 0.5 (1.5) 2.5 (6.5) Operating Budget Total 783.7 795.4 11.7 796.5 1.1 Capital Budget 248.6 123.1 (125.5) 211.9 88.8 918.5 $ (113.8) $ 1,008.4 $ 89.9 Total $ 1,032.3 $ * Includes City Clerk Elections which decreases or increases $1 to $2 million depending on election year. Significant changes by department or department category, from the Fiscal Year 2006 approved budget to the Fiscal Year 2006 adopted budget, are briefly noted below. Generally, department changes include adjustments to benefit rates such as pension and medical insurance. In addition, turnover results in a reduction as new employees are hired at a lower salary than employees that left the city, many of whom were near the top of the pay scale. Additional information on department budgets can be found in Section B, Adopted Changes. Operating Budget Changes (Fiscal Year 2006 Approved to Adopted) Police. The department's $4.5 million increase is primarily the result of an increase to pensions of $2.1 million for commissioned officers as required by the State police pension system and other salary and benefit increases of $1.1 million. Increases in command capabilities adds $0.4 million, and $0.2 million is added for new grant funded positions. Carryforward from Fiscal Year 2005 and fuel cost increases add $0.7 million. Fire. As with Police, Fire's increase of $1.5 million is the result of State pension requirements of $1.2 million, and other personnel budget adjustments of $0.1 million. Increased fuel costs add $0.1 million. Utility Services-Environmental Services. Debt service on vehicle replacement and bonds to be sold in the spring of 2005 will add $1.2 million, and rising fuel costs add $0.3 million. Adjustments to personnel budgets result in a decrease from the approved budget. A-6 Utility Services-Tucson Water. The $0.3 million increase to the Water budget includes a number of offsetting factors. Delayed purchase of Central Arizona Project Water allocations will save $1.1 million. Electric and natural gas costs add $0.9 million and the new on-line bill payment system adds $0.5 million. Transportation. The department’s $4.7 million increase consists of $3.7 million carryforward from Fiscal Year 2005 for transit and roadway maintenance. Additional Powerball transit funding adds $0.4 million and $0.6 million is added for increased fuel costs. Community Services. The Community Services budget is primarily driven by federal funding opportunities. Major decreases in Fiscal Year 2006 include $11 million in HOPE VI grants and $1.8 million for Community Development Block Grant (CDBG) funding. Library. The Library budget is based on a proposed transition to full funding by the Pima County Library District over five years. The approved budget assumed full funding by the district in Fiscal Year 2006. This change results in a city general fund contribution of $8 million with an offsetting reduction from the district through Pima County. Other. This category includes other small departments and offices: Mayor and Council, Development Services, Urban Planning and Design, Neighborhood Resources, Economic Development, Tucson Convention Center, Zoning Examiner, Tucson-Mexico Trade Office, Intergovernmental Relations, Outside Agencies, and General Expense. This category's budget increased by $2.5 million. Much of the increase is for capacity to fund increases offset by special revenues. Increased capacity for grants are included in Urban Planning and Design and for facility improvements at the Tucson Convention Center. Capital Budget Changes Most of the capital program increase is due to carryforward of funds for projects budgeted in Fiscal Year 2005 that will not be completed by the end of that fiscal year. Capacity has been added for projects included in the May 2005 Water Bond Election. Staffing The number of city full-time equivalent (FTE) positions in the adopted budget for Fiscal Year 2006 totals 6,041.51, an increase of 26 FTEs from the Fiscal Year 2006 approved budget. Fiscal Year 2006 City Staffing 6,041.51 FTEs Other 6% Police 23% General Support 13% Fire 11% Library 5% Judicial 5% Community Services 2% Golf 3% Environmental Tucson Water Services 9% 4% Parks and Recreation 12% Transportation 7% A-7 Staffing Changes City Staffing (Full-Time Equivalents) FY 2005 Budget Public Safety Departments Police Fire Judicial Public Safety Sub-Total FY 2006 Approved Budget Change FY 2006 Adopted Budget Change 1,373.50 612.00 283.30 2,268.80 1,405.50 637.00 283.30 2,325.80 32.00 25.00 -057.00 1,411.50 645.00 283.30 2,339.80 6.00 8.00 -014.00 Enterprise Departments Golf Utility Services Environmental Services Tucson Water Enterprise Sub-Total 154.75 154.75 -0- 154.75 -0- 263.00 576.00 993.75 263.00 570.00 987.75 -0(6.00) (6.00) 262.00 571.00 987.75 (1.00) 1.00 -0- Other Departments Transportation Community Services Library Parks and Recreation General Support* Other Other Departments Sub-Total 398.00 153.00 282.75 669.75 785.71 345.50 2,634.71 398.00 153.00 305.25 694.00 806.21 345.50 2,701.96 -0-022.50 24.25 20.50 -067.25 405.00 152.50 308.75 697.00 806.71 344.00 2,713.96 7.00 (0.50) 3.50 3.00 0.50 (1.50) 12.00 Total 5,897.26 6,015.51 118.25 6,041.51 26.00 * Includes City Clerk Elections which decreases or increases 20.5 FTEs depending on election year. The major changes in positions by department or department category, from the Fiscal Year 2006 approved budget to the Fiscal Year 2006 adopted budget, are briefly noted below. For more detail, see the individual department pages in Section B, Adopted Changes. Police. Four officers are added in addition to the 23 already included in the approved budget for Fiscal Year 2006. This brings the total number of commissioned officers to 1,028. In addition, a net increase of two civilian support staff are included for Fiscal Year 2006. Fire. Eight civilian positions are added with the transfer of the hazardous waste program from Pima County. The approved Fiscal Year 2006 budget included a ladder company with 14 personnel, a medic company with seven positions, and four inspectors. Transportation. Six positions are transferred from Development Services and one administrative support position is added. Parks and Recreation. Three positions are added for maintenance in addition to the 24.25 positions included in the approved budget for Fiscal Year 2006. Library. Three and a half customer service positions are added for Fiscal Year 2006 that were originally eliminated from the FY 2006 approved budget with the implementation of the self-checkout systems. This is in addition to the 25.5 already included in the Fiscal Year 2006 approved budget to expand services. A-8 WHERE THE MONEY COMES FROM There are three major revenue groups in the city budget: 1) general purpose funds, 2) restricted enterprise funds, and 3) other restricted funds. This section of the overview will first discuss general purpose fund revenues, followed by the restricted funds, including enterprise funds. General Purpose Fund Revenues General purpose funds include revenues that the Mayor and Council have full discretion to allocate. It is used for basic city services, such as police and fire protection, mass transit service, and parks and recreational opportunities. Revenues that can be used for general purposes come either from city-generated revenue or state-shared revenue. In Fiscal Year 2006 the city’s 2% sales tax is the largest source of general purpose funds (44%) with an additional 29% from state-shared revenues such as the state’s 5.6% sales tax and income taxes. The 25% in Miscellaneous City Revenues consists of local taxes and fees. The primary property tax only provides 2% of the general purpose funds budget. Fiscal Year 2006 General Purpose Funds - Revenues $424.7 million State-Shared Sales Tax 11% City Sales Tax 44% State-Shared Other 6% State-Shared Income Tax 12% City Primary Property Tax 2% Miscellaneous City Revenues 25% In general, the projected revenues for Fiscal Year 2006 anticipate continued economic growth. Major changes from the approved budget for Fiscal Year 2006 are summarized in the following table and discussion. Additional information is available in Section E, Summary Information. A-9 Revenue Changes – General Purpose Funds Budget General Purpose Funds Revenues ($ millions) FY 2005 Budget State-Shared Revenues: Income Tax Sales Tax Other State-Shared Sub-Total $ City Revenues: Sales Tax Primary Property Tax Other City Sub-Total Total $ 44.9 $ 43.2 24.0 112.1 49.2 $ 45.3 25.0 119.5 4.3 2.1 1.0 7.4 176.6 8.8 97.4 282.8 185.4 9.2 95.7 290.3 8.8 0.4 (1.7) 7.5 394.9 FY 2006 Adopted Budget Change FY 2006 Approved Budget Change $ 409.8 $ 14.9 $ 50.9 $ 47.7 25.8 124.4 184.5 9.2 106.6 300.3 $ 424.7 1.7 2.4 0.8 4.9 (0.9) -010.9 10.0 $ 14.9 *The City Sales Tax includes a transfer of $0.9 million to Other (Licenses and Permits) based on a change in accounting for certain cable revenues. City Revenues. City-generated revenues account for 71% of the general purpose funds budget. The total of $300.3 million for Fiscal Year 2006 is an increase of General Purpose Funds $10 million over the approved budget. $ millions City Revenues The city’s sales tax is highly dependent on the local economy and is projected to grow 5% in Fiscal Year 2006. The adopted budget includes $184.5 million, which was adjusted for a transfer of $0.9 million to the other category (Licenses and Permits) for cable revenues no longer collected as sales tax. 177 185 185 97 9 Sales Tax 9 96 107 9 Primary Property Tax Other The $10.9 million increase in the other category is primarily the result of carryforward ($6.3 million) FY 2005 FY 2006 Approved FY 2006 Adopted and a $3.4 million use of fund balance. The transfer of cable revenues from the sales tax makes up most of the remaining increase. $ millions State-Shared Revenues. Annually, the State of Arizona distributes a portion of its revenue receipts to cities and counties. The state-shared revenues that are used by General Purpose Funds the city for general purposes are state income tax, State-Shared Revenues state sales tax, state auto lieu tax, and lottery proceeds. For Fiscal Year 2006, state-shared 51 48 revenues are projected at $124.4 million. The 45 49 45 43 increase of $4.9 million over the approved Fiscal 24 25 26 Year 2006 budget is based on projected state revenues. Compared to Fiscal Year 2005, state sales taxes are projected to grow 5.9% while income tax distributions will increase 13.6%. State Income Tax State Sales Tax State Other FY 2005 FY 2006 Approved FY 2006 Adopted A-10 Restricted Funds Budget – Revenues Restricted fund revenues are divided between (1) grants and shared revenues and contributions from other state and local governments; (2) self supporting enterprise funds; and (3) city revenues that are collected for a specific purpose, certificates of participation and other debt financing, and reserves set aside for a particular requirement. Fiscal Year 2006 Restricted Funds - Revenues $583.7 million Highway User Revenues 12% Secondary Property Tax Capital Projects Fund 4% 13% Certificates of Participation/Debt Financing 6% Other Grants 8% Other 3% Federal Funding 21% Enterprise Funds 33% In the adopted Fiscal Year 2006 budget, the restricted funds revenues total $583.7 million, a $75 million increase over the approved budget. A-11 Revenue Changes – Restricted Funds Budget Restricted Fund Revenues ($ millions) FY 2005 Budget Grants and Shared Revenues: Federal Funding $ Highway User Revenues Other Grants Grants and Shared Revenues Sub-Total Restricted City Revenues: Secondary Property Tax Capital Projects Fund Certificates of Participation/Debt Financing Other Restricted City Sub-Total Enterprise Funds Environmental Services Golf Water Enterprise Funds Sub-Total Total Restricted $ FY 2006 Adopted Budget Change FY 2006 Approved Budget Change 129.4 $ 64.7 44.3 104.5 $ 61.3 50.9 (24.9) (3.4) 6.6 238.4 216.7 (21.7) 243.9 27.2 21.3 93.0 70.2 21.2 205.7 23.1 37.4 19.3 19.7 99.5 1.8 (55.6) (50.9) (1.5) (106.2) 24.2 74.9 34.4 16.2 149.7 1.1 37.5 15.1 (3.5) 50.2 41.9 14.1 137.3 193.3 38.7 11.0 142.8 192.5 (3.2) (3.1) 5.5 (0.8) 37.8 13.1 139.2 190.1 (0.9) 2.1 (3.6) (2.4) 508.7 $ (128.7) 637.4 $ $ $ 127.2 $ 22.7 72.0 10.7 44.7 (6.2) 583.7 $ 75.0 Following are brief explanations of the major revenue differences between the Fiscal Year 2006 adopted budget and the Fiscal Year 2006 approved budget. For more detail, see Section E, Summary Information. $ millions Grants and Shared Revenues. Revenues from grants and shared revenues, which include highway user revenues and other local contributions such as the Pima Restricted Funds County Library District Tax, total $243.9 million in Grants and Shared Revenues Fiscal Year 2006, an increase of $27.2 million from the approved budget. Federal grants will increase a 129 127 105 total of $22.7 million as federally funded programs 65 61 72 and projects are carried forward from the prior year 44 51 45 and adjustments are made consistent with federal allocations. This increase is partially offset by a $6.2 million decrease in state and local grants and Federal Funding Highway User Other Grants contributions, primarily the result of an $8 million Revenues reduction in the Pima County Library District Tax contribution. The Fiscal Year 2006 approved FY 2005 FY 2006 Approved FY 2006 Adopted budget assumed full funding of the Library system from the Library District Tax. The adopted budget is based on a five-year transition that requires an $8 million contribution from city general funds. Highway User Revenue Funds are anticipated to increase approximately $10.7 million due to carryforward from Fiscal Year 2005. A-12 $ millions City Revenues. This group includes the Secondary Property Tax, Capital Projects Fund (Bonds), and other restricted sources such as Transportation Enterprise Restricted Funds Area Management (TEAM), reserves, certificates of City Revenues participation, and other debt financing. The secondary property tax is driven by both the sale of 93 91 new general obligation bonds, refinancing of 75 existing bonds, and interest rates. The $1.1 million 51 39 37 increase in Fiscal Year 2006 is due to the sale of $25 21 23 24 million in general obligation bonds. The increase in the capital projects fund and the certificates of Secondary Capital Projects Other participation and other financing is primarily the result of carryforward from the prior year. Other Property Tax Fund funding includes contributions for zoo and FY 2005 FY 2006 Approved FY 2006 Adopted transportation improvements. $ millions Enterprise Revenues. This group includes both operating revenues and certificates of participation or other financing, but excludes bond funds. Funding for the three enterprise departments will decrease a net Restricted Funds $2.4 million in Fiscal Year 2006 from the approved Enterpise Revenues budget. Reductions in capital requirements in Utility 200 137 143 139 Services are partially offset by revenues based on 150 higher demands for services. Golf funding will 100 increase $2.1 million from certificates of 42 39 38 50 14 11 13 participation and carryforward from Fiscal Year 0 2005. Environmental Services FY 2005 Golf FY 2006 Approved Water FY 2006 Adopted A-13 CITIZEN IMPACTS Changes to the City's “Bill for Services” The cost impact to the typical homeowner from the new budget for Fiscal Year 2006 will be approximately 29 cents per month. FY 2006 City “Bill for Services” for the Typical Homeowner1 City Property Taxes1 City Sales Tax2 Environmental Service Fee Tucson Water3 Annual Total Per Month Approved $ 120.13 371.00 168.00 Adopted $ 123.64 371.00 168.00 218.18 $ 877.31 $ 73.11 218.18 $ 880.82 $ 73.40 Increase $ 3.51 -0-0-0$ 3.51 $ 0.29 1Typical Homeowner Definition: Owner-occupied residence, within the Tucson Unified School District, with an assessed value of $100,000. 2Assumes an average income of $38,000 with approximately 53% of net income (after federal and state income taxes) spent on taxable purchases based on U.S. Department of Labor consumer expenditure data. 3The water bill figures assume a single-family residence with 12 Ccf usage per month. City Property Taxes. The city imposes two taxes on the assessed value of property within the city limits: (1) a primary property tax for general purposes, and (2) a secondary property tax to pay off general obligation bond debt. City of Tucson Property Tax Comparisons Rate Changes Primary Secondary Total Tax Bill Changes* Primary Property Tax Secondary Property Tax Total % Change FY 2006 Adopted FY 2006 Changes Change from FY 2005 FY 2005 FY 2006 Approved $ 0.3531 0.8316 $ 1.1847 $ 0.3480 0.8533 $ 1.2013 $ 0.3469 0.8895 $ 1.2364 $ (0.0011) 0.0362 $ 0.0351 $ (0.0062) 0.0579 $ 0.0517 $ 35.31 83.16 $ 118.47 $ 34.80 85.33 $ 120.13 $ 34.69 88.95 $ 123.64 $ $ (0.62) 5.79 $ 5.17 4.4% *Owner-occupied home with an assessed valuation of $100,000. A-14 (0.11) 3.62 $ 3.51 2.9% The total property tax rate for the Fiscal Year 2006 Adopted Budget is $1.2364 per $100 of assessed valuation for an increase of $0.0517 over Fiscal Year 2005. The primary property tax rate decreased $0.0062. The secondary rate increased $0.0579 based on the debt service requirements of existing general obligation bonds and the sale of $25 million of voter authorized bonds planned for the spring of 2005. For a house with a $100,000 assessed valuation, the property tax would increase $5.17 for the year. City Sales Tax. The Tucson City Charter authorizes a sales tax on many business transactions within the city. However, certain transactions, such as food purchased for home consumption, rent collected on residential units, and advertising, are exempted from the city sales tax. City sales tax collections can be used for any general purpose. No change to the current city sales tax rate of 2% is recommended in the budget for Fiscal Year 2006. STATE SET SPENDING LIMIT Tucson, like all Arizona cities, is subject to a spending limit imposed by the state constitution. For revenues that are subject to the limitation, the Mayor and Council’s adopted budget cannot exceed the expenditure limitation regardless of how much money may be available. Excluded from the limitation are funding sources such as bond proceeds and related debt service, interest earnings, and federal grants. State-Set Expenditure Limit for the City of Tucson ($ millions) ($ millions) FY 2005 FY 2006 Budgeted Expenditures Less Exclusions $ 1,032.3 (506.3) $ 1,008.4 (461.6) Subject to Spending Limit $ 526.0 $ 546.8 EEC Official Limit $ 527.1 $ 547.1 Under/(Over) Official Limit $ $ 1.1 0.3 Each year the spending limit is set by the state’s Economic Estimates Commission (EEC), which takes into consideration annual population growth and inflation. Cities are allowed to override the EEC spending limit only with prior approval of the voters. The voters of Tucson authorized an override of $0.8 million in 1981, and an additional $46.9 million in 1987. With these overrides, the city has been able to stay under the state-set spending limit. However, it is anticipated that an override election will be required in November to meet growing demands for public safety and to operate new facilities. For Fiscal Year 2006, the adopted budget will be under the state’s official spending limit by $0.3 million. A-15 A-16 Significant Adjustments to the Fiscal Year 2006 Budget Approved Operating Budget General Purpose Funds Enterprise Funds Other Restricted Funds Total Operating Budget Adopted $ 408,807,570 $ 165,414,030 221,219,360 419,207,730 $ 10,400,160 166,907,440 1,493,410 210,339,610 (10,879,750) $ 795,440,960 796,454,780 Capital Budget $ 123,110,400 Total $ 918,551,360 Expenditures $ Fuel Cost Increase 1,013,820 211,939,700 88,829,300 1,008,394,480 $ 89,843,120 Base Changes to General Purpose Operating Revenues 3,363,660 Revised Revenue Estimates 870,000 Carryforward from Fiscal Year 2005 234,980 Subtotal 6,348,160 $ Carryforward from Fiscal Year 2005 1,879,520 Other Miscellaneous 4,378,250 1,879,520 Adjustment to Primary Property Tax Levy 90,390 Subtotal Adjustments Related to Library Funding City Contribution to Library Fund $ $ Revenues Base Changes to General Purpose Operating Expenditures Public Safety Pension Increase Change 6,348,160 Adjustments Related to Library Funding 8,000,000 Use of Fiscal Year 2005 Savings Reductions to Expenditures Personnel Savings Medical Insurance Savings Defer Business License System 1,482,000 (1,000,000) (1,198,000) (1,750,000) Increased State Shared Revenues (based on League of Cities and Towns estimate) Miscellaneous Revenue Revisions Subtotal 4,052,000 Subtotal 4,052,000 Total General Purpose Operating Expenditures Enterprise Department Operations $ $ 10,400,160 Total General Purpose Operating Revenues 1,493,410 Enterprise Revenues/Funding $ 2,500,000 70,000 $ 10,400,160 1,493,410 Other Restricted Operations (10,879,750) Other Restricted Funding (10,879,750) Capital Projects 88,829,300 Capital Projects 88,829,300 Total Expenditure Adjustments $ 89,843,120 Total Revenue Adjustments B-1 $ 89,843,120 Revenue Adjustments to the Fiscal Year 2006 Budget Approved Primary Property Tax Secondary Property Tax Business Privilege Tax (City Sales Tax) Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property State Income Tax (State Revenue Sharing) State Sales Tax Highway User Revenue Funds Other Shared Taxes and Grants Federal Grants Charges for Services Non-Revenue Receipts Enterprise Funds Environmental Services Golf Water Capital Funds (Bonds) Certificates of Participation Brought Forward and Use of Fund Balance $ Total $ Adopted Change 9,161,820 $ 23,098,280 185,400,000 25,680,000 19,466,300 13,155,160 3,820,760 49,230,000 45,340,000 51,298,800 76,236,200 107,148,550 41,402,260 9,232,050 9,174,950 $ 24,235,450 184,540,000 25,950,000 21,066,700 13,375,330 5,036,990 50,930,000 47,670,000 50,510,000 70,978,120 127,170,400 40,397,390 16,706,170 13,130 1,137,170 (860,000) 270,000 1,600,400 220,170 1,216,230 1,700,000 2,330,000 (788,800) (5,258,080) 20,021,850 (1,004,870) 7,474,120 38,712,470 10,987,510 142,751,050 37,382,900 19,314,700 9,732,550 37,860,090 13,088,050 139,178,300 74,933,900 34,403,600 21,189,040 (852,380) 2,100,540 (3,572,750) 37,551,000 15,088,900 11,456,490 918,551,360 $ 1,008,394,480 $ 89,843,120 Discussion of Major Revenue Adjustments Change Secondary Property Tax The secondary property tax is based on the general obligation bond debt service, which increased due to a May 2005 bond sale. The secondary property tax rate will increase approximately four cents from the approved rate of 89 cents. Business Privilege Tax Primarily transfer of sales tax equivalent paid by cable providers to Licenses and Permits. Licenses and Permits Transfer of sales tax equivalent paid by cable providers from Business Privilege Tax and growth in franchise fee collections. B-2 $ 1,137,170 (860,000) 1,600,400 Revenue Adjustments to the Fiscal Year 2006 Budget Discussion of Major Revenues Adjustments (Continued) Use of Money and Property Most of this change is the result of increased rental income including revenues from the Pennington parking garage. Interest earnings are also projected to grow based on higher interest rates. Change $ 1,216,230 State Income Tax (State Revenue Sharing) Increased distribution based on Fiscal Year 2004 income tax collections. 1,700,000 State Sales Tax Increased distribution based on strong economic recovery. 2,330,000 Highway User Revenue Funds Decreased distribution based on lower growth in revenues. (788,800) Other Shared Taxes and Grants This primarily reflects the change in Library funding provided by Pima County from full funding by the Library District to the proposed transition to full funding. Increases to the distribution of State auto lieu taxes and other grants partially offset the $8 million library funding decrease. (5,258,080) Federal Grants Grants used primarily to fund capital projects will increase based on the implementation of those projects. 20,021,850 Charges for Services Anticipated Parks and Recreation fee increases in both Fiscal Years 2005 and 2006 have been put on hold. (1,004,870) Non-Revenue Receipts This increase consists of $4.6 million in contributions for the zoo and roadway improvements, $1.8 million in debt service capacity previously budgeted as federal revenues and Highway User Revenues, and $1 million in capacity to be used in the event revenues become available during the year. 7,474,120 Enterprise Funds Environmental Services - reductions in certificates of participation and other funding sources partially offset by growth in service demand. (852,380) Golf - use of certificates of participation for Silverbell Golf Course improvements. 2,100,540 Water - reductions in capital spending from recurring revenues (to be offset by bonds if approved by the voters in the May 2005 election). (3,572,750) Capital Funds (Bonds) Carry over of bond funded projects from Fiscal Year 2005 and capacity for water revenue bonds included in the May 2005 water bond election. 37,551,000 Certificates of Participation (COPs) Carry over of projects from Fiscal Year 2005. 15,088,900 B-3 Revenue Adjustments to the Fiscal Year 2006 Budget Discussion of Major Revenues Adjustments (Continued) Brought Forward and Use of Fund Balance The increase in these funds is primarily due to the carryforward of capital projects and the use of Highway User Revenue Fund and other restricted reserves. In addition, anticipated savings of $2.5 million from Fiscal Year 2005 are included to fund the city's contribution to the Library fund. Change $ Other Revenues Changes Miscellaneous adjustments to various tax revenue projections. Total Revenue Adjustments 503,300 $ B-4 11,456,490 89,843,120 Expenditure Adjustments to the Fiscal Year 2006 Budget Approved Adopted Change Operating Elected and Official Mayor and Council City Manager City Clerk City Attorney $ Sub-Total Neighborhood Services City Court Community Services Fire Library Neighborhood Resources Parks and Recreation Tucson City Golf Police Office of Equal Opportunity Programs and Independent Police Review Office of the Public Defender Sub-Total Environment and Development Development Services Transportation Urban Planning and Design Utility Services Environmental Services Tucson Water Zoning Examiner Sub-Total Strategic Planning Tucson Convention Center Office of Economic Development Intergovernmental Relations Tucson-Mexico Trade Office Sub-Total B-5 3,311,160 $ 2,305,900 4,952,160 8,106,870 3,264,070 2,281,310 4,921,830 8,085,460 $ (47,090) (24,590) (30,330) (21,410) 18,676,090 18,552,670 (123,420) 10,319,980 78,401,770 62,124,510 23,510,080 2,572,230 46,384,990 10,987,510 135,594,440 686,010 10,492,060 65,915,840 63,594,850 23,485,830 2,589,570 46,242,970 10,863,050 140,146,210 740,020 172,080 (12,485,930) 1,470,340 (24,250) 17,340 (142,020) (124,460) 4,551,770 54,010 2,881,300 2,813,750 (67,550) 373,462,820 366,884,150 (6,578,670) 10,496,460 95,981,070 4,713,040 10,513,910 100,679,860 5,208,220 17,450 4,698,790 495,180 35,866,470 118,560,050 191,750 37,110,090 118,934,300 192,820 1,243,620 374,250 1,070 265,808,840 272,639,200 6,830,360 10,530,620 1,850,470 567,480 1,433,020 10,789,740 1,683,000 565,860 1,546,230 259,120 (167,470) (1,620) 113,210 14,381,590 14,584,830 203,240 Expenditure Adjustments to the Fiscal Year 2006 Budget Approved Adopted Change Operating (Continued) Support Services Budget and Research Finance General Services Human Resources Information Technology Procurement $ Sub-Total Non-Departmental Total Operating $ Capital Total Budget $ B-6 2,115,750 $ 10,910,640 23,790,440 2,816,080 13,965,420 3,464,530 2,183,580 $ 10,844,310 23,580,700 2,854,660 14,530,050 3,545,090 67,830 (66,330) (209,740) 38,580 564,630 80,560 57,062,860 57,538,390 475,530 66,048,760 66,255,540 206,780 795,440,960 $ 796,454,780 123,110,400 211,939,700 918,551,360 $ 1,008,394,480 $ 1,013,820 88,829,300 $ 89,843,120 Change from Fiscal Year 2006 Approved to Adopted Budget Mayor and Council Approved Adopted Change Financial Summary Operating Budget General Purpose Funds $ 3,311,160 $ 3,264,070 $ (47,090) Department Total $ 3,311,160 3,264,070 $ (47,090) $ Staffing Summary Permanent 53.00 51.50 (1.50) Total Staffing 53.00 51.50 (1.50) Adopted Change Staffing Budget Operating Budget Changes Personnel Reorganization of City Clerk support resulted in the reduction of one Courier and the transfer of one half-time Secretary from Council-General Administration to City Clerk Total Changes B-7 (1.50) $ (47,090) (1.50) $ (47,090) Change from Fiscal Year 2006 Approved to Adopted Budget City Manager Approved Adopted Change Financial Summary Operating Budget General Purpose Funds $ 2,305,900 $ 2,281,310 $ (24,590) Department Total $ 2,305,900 $ 2,281,310 $ (24,590) Staffing Summary Permanent 19.00 19.00 -0- Total Staffing 19.00 19.00 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits Total Changes -0- B-8 $ (24,590) $ (24,590) Change from Fiscal Year 2006 Approved to Adopted Budget City Clerk Approved Adopted Change Financial Summary Operating Budget General Purpose Funds $ 4,952,160 $ 4,921,830 $ (30,330) Department Total $ 4,952,160 4,921,830 $ (30,330) $ Staffing Summary Permanent Non-Permanent 34.50 23.00 35.00 23.00 0.50 -0- Total Staffing 57.50 58.00 0.50 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Transferred one part-time position from Mayor and Council, Council-General Administration 0.50 Total Changes 0.50 B-9 (48,580) 18,250 $ (30,330) Change from Fiscal Year 2006 Approved to Adopted Budget City Attorney Approved Adopted Change Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds $ 7,341,720 $ 409,560 355,590 7,301,880 424,700 358,880 $ (39,840) 15,140 3,290 Department Total $ 8,106,870 8,085,460 $ (21,410) $ Staffing Summary Permanent 106.00 106.00 -0- Total Staffing 106.00 106.00 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Carryforward from Fiscal Year 2005 (46,410) 25,000 Total Changes -0- B-10 $ (21,410) Change from Fiscal Year 2006 Approved to Adopted Budget City Court Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funds $ Department Total $ Adopted 9,553,640 $ 766,340 Change 9,714,690 $ 777,370 $ 161,050 11,030 10,319,980 $ 10,492,060 172,080 Staffing Summary Permanent 141.30 141.30 -0- Total Staffing 141.30 141.30 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Carryforward from Fiscal Year 2005 127,480 44,600 Total Changes -0- B-11 $ 172,080 Change from Fiscal Year 2006 Approved to Adopted Budget Community Services Approved Adopted Change Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds $ 3,963,620 $ 70,673,560 3,764,590 Department Total $ 78,401,770 $ 65,915,840 $ (12,485,930) Staffing Summary Permanent Non-Permanent 153.00 -0- 145.50 7.00 (7.50) 7.00 Total Staffing 153.00 152.50 (0.50) 3,963,610 $ (10) 58,204,050 (12,469,510) 3,748,180 (16,410) Adopted Change Staffing Budget Operating Budget Changes Federal allocation of Community Development Block Grant (CDBG) Funds reduced $ HOPE VI funds reduced to reflect project expenditures Other federal and related funds and positions adjusted based on actual allocations (11,017,970) (0.50) Total Changes (1,814,920) 346,960 (0.50) $ (12,485,930) B-12 Change from Fiscal Year 2006 Approved to Adopted Budget Fire Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funds Total Operating Budget Capital Budget General Obligation Bonds Other Restricted Funds Adopted Change $ 59,395,510 $ 2,729,000 60,767,470 $ 2,827,380 1,371,960 98,380 $ 62,124,510 63,594,850 $ 1,470,340 $ $ 480,000 $ -0- 2,681,400 $ 920,000 2,201,400 920,000 Total Capital Budget $ 480,000 $ 3,601,400 $ 3,121,400 Department Total $ 62,604,510 $ 67,196,250 $ 4,591,740 Staffing Summary Commissioned Civilian Total Staffing 590.00 47.00 590.00 55.00 -08.00 637.00 645.00 8.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Impact of fire pension rate increase from 14.69% to 19.12% Transfer of Household Hazardous Waste Program from Pima County to be funded by existing revenues from Pima County and Environmental Services 120,340 1,230,000 8.00 -0- Increase in fuel costs 120,000 Total Operating Budget Changes 8.00 $ 1,470,340 $ 3,121,400 -0- $ 3,121,400 8.00 $ 4,591,740 Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available funding Total Capital Budget Changes Total Changes B-13 Change from Fiscal Year 2006 Approved to Adopted Budget Library Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funds Adopted Change $ -0- $ 23,510,080 8,000,000 $ 15,485,830 $ 23,510,080 $ 23,485,830 $ 8,000,000 (8,024,250) Total Operating Budget Capital Budget General Obligation Bonds (24,250) $ 125,000 $ 439,000 Total Capital Budget $ 125,000 $ 439,000 $ 314,000 Department Total $ 23,635,080 $ 23,924,830 $ 289,750 314,000 Staffing Summary Permanent Non-Permanent 249.00 56.25 298.50 10.25 49.50 (46.00) Total Staffing 305.25 308.75 3.50 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Increase of 3.50 positions during Fiscal Year 2005 to improve customer service Change in classification of 46 non-permanent staff to permanent in order to comply with Civil Service rules, with no budget impact (152,410) 3.50 128,160 -0- -0- Adjustment to funding based on proposed transition of Library funding to Pima County General Purpose Funds 8,000,000 Pima County Funds (8,000,000) Total Operating Budget Changes 3.50 $ (24,250) $ 314,000 -0- $ 314,000 3.50 $ 289,750 Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available funding Total Capital Budget Changes Total Changes B-14 Change from Fiscal Year 2006 Approved to Adopted Budget Neighborhood Resources Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funds Adopted Change $ 2,470,630 $ 101,600 2,487,970 $ 101,600 17,340 -0- Total Operating Budget Capital Budget General Purpose Funds Federal Funds Other Restricted Funds $ 2,572,230 2,589,570 $ 17,340 $ -0- $ 1,275,000 1,700,000 1,000,000 $ 3,475,000 3,700,000 1,000,000 2,200,000 2,000,000 Total Capital Budget $ 2,975,000 $ 8,175,000 $ 5,200,000 Department Total $ 5,547,230 $ 10,764,570 $ 5,217,340 $ Staffing Summary Permanent 20.00 20.00 -0- Total Staffing 20.00 20.00 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Carryforward from Fiscal Year 2005 (56,660) 74,000 Total Operating Budget Changes -0- $ 17,340 $ 5,200,000 Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available funding Total Capital Budget Changes -0- $ 5,200,000 Total Changes -0- $ 5,217,340 B-15 Change from Fiscal Year 2006 Approved to Adopted Budget Parks and Recreation Approved Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds Adopted $ 43,955,100 $ 725,370 1,704,520 Total Operating Budget $ 46,384,990 Capital Budget General Obligation Bonds Other Restricted Funds $ 2,824,000 $ 3,867,800 Total Capital Budget $ 6,691,800 Department Total 43,696,630 $ 720,930 1,825,410 $ 46,242,970 $ Change (258,470) (4,440) 120,890 $ (142,020) 4,811,400 $ 5,343,000 1,987,400 1,475,200 10,154,400 $ 3,462,600 $ 53,076,790 $ 56,397,370 $ 3,320,580 Staffing Summary Permanent Non-Permanent 407.50 286.50 407.00 290.00 (0.50) 3.50 Total Staffing 694.00 697.00 3.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Three positions added to Hi Corbett Field to be funded with the existing maintenance budget 3.00 (382,020) -0- Carryforward from Fiscal Year 2005 240,000 Total Operating Budget Changes 3.00 $ (142,020) $ 3,462,600 -0- $ 3,462,600 3.00 $ 3,320,580 Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available funding Total Capital Budget Changes Total Changes B-16 Change from Fiscal Year 2006 Approved to Adopted Budget Tucson City Golf Approved Financial Summary Operating Budget Other Restricted Funds Adopted $ 10,987,510 $ Total Operating Budget Capital Budget Other Restricted Funds $ 10,987,510 $ Total Capital Budget Department Total Change 10,863,050 $ $ 10,863,050 (124,460) $ (124,460) -0- $ 2,225,000 $ 2,225,000 $ -0- $ 2,225,000 $ 2,225,000 $ 10,987,510 $ 13,088,050 $ 2,100,540 Staffing Summary Permanent Non-Permanent 44.00 110.75 44.00 110.75 -0-0- Total Staffing 154.75 154.75 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits Total Operating Budget Changes -0- $ (124,460) $ (124,460) $ 2,225,000 Capital Budget Changes Golf Course Improvements Total Capital Budget Changes -0- $ 2,225,000 Total Changes -0- $ 2,100,540 B-17 Change from Fiscal Year 2006 Approved to Adopted Budget Police Approved Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds Total Operating Budget Capital Budget General Obligation Bonds Other Restricted Funds Total Capital Budget Adopted Change $ 123,336,170 $ 127,504,350 $ 5,317,020 5,430,830 6,941,250 7,211,030 $ 135,594,440 $ 140,146,210 $ $ -03,444,000 3,444,000 $ 139,038,440 $ Department Total $ 4,168,180 113,810 269,780 4,551,770 $ $ 211,700 3,444,000 3,655,700 $ 211,700 -0211,700 $ 143,801,910 $ 4,763,470 Staffing Summary Commissioned Civilian 1,024.00 381.50 1,028.00 383.50 4.00 2.00 Total Staffing 1,405.50 1,411.50 6.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Commissioned officer pension rate increase 1,144,970 2,133,660 Fiscal Year 2005 reorganization added positions to strengthen the command structure of the department and focus on critical community needs 9.00 366,140 Positions added for Counter Narcotics Alliance in Fiscal Year 2005, funded with forfeiture funds 3.00 174,000 Weed and Seed - federal grant funded positions eliminated, with services to be provided by the Parks and Recreation Department and charged to Police (6.00) -0- Carryforward from Fiscal Year 2005 583,000 Increase in fuel costs 150,000 Total Operating Budget Changes 6.00 $ 4,551,770 $ 211,700 -0- $ 211,700 6.00 $ 4,763,470 Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available funding Total Capital Budget Changes Total Changes B-18 Change from Fiscal Year 2006 Approved to Adopted Budget Office of Equal Opportunity Programs and Independent Police Review Approved Financial Summary Operating Budget General Purpose Funds Total Adopted Change $ 686,010 $ 740,020 $ 54,010 $ 686,010 740,020 54,010 $ $ Staffing Summary Permanent 9.00 10.00 1.00 Total Staffing 9.00 10.00 1.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Positions reclassified based on revised responsibilities 15,500 Project Manager for Americans with Disabilities Act Program funded in Non-Departmental. 1.00 Total Changes 1.00 B-19 38,510 -0- $ 54,010 Change from Fiscal Year 2006 Approved to Adopted Budget Office of the Public Defender Approved Adopted Change Financial Summary Operating Budget General Purpose Funds $ 2,881,300 $ 2,813,750 $ (67,550) Department Total $ 2,881,300 2,813,750 $ (67,550) $ Staffing Summary Permanent 36.00 36.00 -0- Total Staffing 36.00 36.00 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Miscellaneous adjustments (68,030) 480 Total Changes -0- B-20 $ (67,550) Change from Fiscal Year 2006 Approved to Adopted Budget Development Services Approved Financial Summary Operating Budget General Purpose Funds Adopted Change $ 10,496,460 $ 10,513,910 $ 17,450 Total Operating Budget Capital Budget General Purpose Funds $ 10,496,460 $ 10,513,910 17,450 $ -0- $ 500,000 Total Capital Budget $ -0- $ 500,000 $ 500,000 Department Total $ 10,496,460 $ 11,013,910 $ 517,450 $ 500,000 Staffing Summary Permanent Non-Permanent 132.00 1.00 126.00 1.00 (6.00) -0- Total Staffing 133.00 127.00 (6.00) Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ 17,450 Transferred six positions to Transportation for the Private Improvement Agreement Project (to be charged back to Development Services) (6.00) -0- Total Operating Budget Changes (6.00) $ 17,450 $ 500,000 $ 500,000 (6.00) $ 517,450 Capital Budget Changes Computerized Permitting System Upgrade to be funded from reserves designated for Development Services Total Capital Budget Changes -0- Total Changes B-21 Change from Fiscal Year 2006 Approved to Adopted Budget Transportation Approved Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds Adopted Change $ 53,106,370 6,270,680 36,604,020 $ 54,408,830 6,819,430 39,451,600 $ 1,302,460 548,750 2,847,580 Total Operating Budget Capital Budget General Purpose Funds Federal Funds General Obligation Bonds Street and Highway Bonds Non-City Funds Other Restricted Funds $ 95,981,070 $ 100,679,860 $ 4,698,790 $ 1,010,600 19,975,100 2,300,000 746,900 -024,220,700 $ 3,771,400 49,089,400 15,938,200 2,727,200 410,000 26,524,700 $ 2,760,800 29,114,300 13,638,200 1,980,300 410,000 2,304,000 Total Capital Budget $ 48,253,300 $ 98,460,900 $ 50,207,600 Department Total $ 144,234,370 $ 199,140,760 $ 54,906,390 Staffing Summary Permanent Non-Permanent 396.00 2.00 403.00 2.00 7.00 -0- Total Staffing 398.00 405.00 7.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ (280,070) Transferred one position from Support Services 1.00 124,440 Transferred six positions from Development Services for Private Improvement Agreements (to be charged back to Development Services) 6.00 -0- Increase in fuel costs 600,000 Local Transportation Assistance funding increase 422,550 Building maintenance increase based on Fiscal Year 2005 trends 111,370 Carryforward from Fiscal Year 2005 3,720,500 Total Operating Budget Changes 7.00 B-22 $ 4,698,790 Change from Fiscal Year 2006 Approved to Adopted Budget Transportation Adopted Change Staffing Budget Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available funding $ Special Assessment Funds to be used for the Improvement District Program Total Capital Budget Changes Total Changes B-23 49,797,600 410,000 -0- $ 50,207,600 7.00 $ 54,906,390 Change from Fiscal Year 2006 Approved to Adopted Budget Urban Planning and Design Approved Adopted Change Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds $ 4,276,660 $ 80,000 356,380 4,459,240 $ 390,000 358,980 182,580 310,000 2,600 Department Total $ 4,713,040 5,208,220 495,180 $ $ Staffing Summary Permanent 39.50 44.00 4.50 Total Staffing 39.50 44.00 4.50 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ (54,180) Positions added in support of annexation efforts, funded within the existing budget 2.50 -0- Transfer of two positions from the Office of Economic Development in support of retail recruitment and business retention 2.00 145,760 Carryforward from Fiscal Year 2005 91,000 Increased capacity for federal and state grants 312,600 Total Changes 4.50 B-24 $ 495,180 Change from Fiscal Year 2006 Approved to Adopted Budget Utility Services-Environmental Services Approved Financial Summary Operating Budget Environmental Services Revenues Other Restricted Funds Total Operating Budget Capital Budget Environmental Services Bonds Other Restricted Funds Adopted Change $ 34,199,730 $ 1,666,740 35,443,350 $ 1,666,740 1,243,620 -0- $ 35,866,470 37,110,090 1,243,620 $ $ $ 2,833,000 $ 2,846,000 7,994,000 $ 750,000 5,161,000 (2,096,000) Total Capital Budget $ 5,679,000 $ 8,744,000 $ 3,065,000 Department Total $ 41,545,470 $ 45,854,090 $ 4,308,620 Staffing Summary Permanent 263.00 262.00 (1.00) Total Staffing 263.00 262.00 (1.00) Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits including the reduction of one position (1.00) $ Increase in fuel costs (168,780) 300,000 Adjustments to debt service for lease purchase of vehicles and additional bond sales Total Operating Budget Changes 1,112,400 (1.00) $ 1,243,620 $ 3,065,000 $ 3,065,000 (1.00) $ 4,308,620 Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available financing Total Capital Budget Changes -0- Total Changes B-25 Change from Fiscal Year 2006 Approved to Adopted Budget Utility Services-Tucson Water Approved Financial Summary Operating Budget Water Revenue and Operations Fund Other Restricted Funds Total Operating Budget Capital Budget Water Revenue and Operations Fund Water Revenue Bonds Water Infrastructure Finance Authority (WIFA) Other Restricted Funds Adopted Change $ 115,742,050 2,818,000 $ 116,116,300 $ 2,818,000 374,250 -0- $ 118,560,050 $ 118,934,300 374,250 $ 23,930,000 $ 28,074,000 -0261,000 $ 19,983,000 $ 36,706,000 2,497,000 261,000 (3,947,000) 8,632,000 2,497,000 -0- Total Capital Budget $ 52,265,000 $ 59,447,000 $ 7,182,000 Department Total $ 170,825,050 $ 178,381,300 $ 7,556,250 Staffing Summary Permanent 570.00 571.00 1.00 Total Staffing 570.00 571.00 1.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Adjustment to maintenance management staff reductions previously approved for Fiscal Year 2006 1.00 (135,490) 41,920 Delayed purchase of Central Arizona Project (CAP) Water Allocation - Central Arizona Water Conservation District (1,087,960) Electric and natural gas adjustment due to increase in usage and rates 860,770 New On-line Bill Payment System 498,020 CAP Water Acquisition Rate Adjustment 145,260 Miscellaneous adjustments 51,730 Total Operating Budget Changes 1.00 B-26 $ 374,250 Change from Fiscal Year 2006 Approved to Adopted Budget Utility Services-Tucson Water Adopted Change Staffing Budget Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available funding Total Capital Budget Changes Total Changes B-27 $ 7,182,000 -0- $ 7,182,000 1.00 $ 7,556,250 Change from Fiscal Year 2006 Approved to Adopted Budget Zoning Examiner Approved Adopted Change Financial Summary Operating Budget General Purpose Funds $ 191,750 $ 192,820 $ 1,070 Department Total $ 191,750 192,820 $ 1,070 $ Staffing Summary Permanent 2.00 2.00 -0- Total Staffing 2.00 2.00 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits Total Changes -0- B-28 $ 1,070 $ 1,070 Change from Fiscal Year 2006 Approved to Adopted Budget Tucson Convention Center Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funds $ Total Operating Budget Capital Budget General Obligation Bonds - Interest $ Adopted 9,780,620 $ 750,000 10,530,620 $ Change 9,789,740 1,000,000 $ 9,120 250,000 10,789,740 $ 259,120 $ -0- $ 928,000 $ 928,000 Total Capital Budget $ -0- $ 928,000 $ 928,000 Department Total $ 10,530,620 $ 11,717,740 $ 1,187,120 Staffing Summary Permanent Non-Permanent 42.75 19.00 44.75 19.00 2.00 -0- Total Staffing 61.75 63.75 2.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Reorganization to improve service adds two positions with no budget impact 2.00 -0- Increase in facility improvements and to cover increased maintenance funded by prior year facility fee revenues Total Operating Budget Changes 9,120 250,000 2.00 $ 259,120 Capital Budget Changes Carryforward from Fiscal Year 2005 928,000 Total Capital Budget Changes Total Changes B-29 -0- $ 928,000 2.00 $ 1,187,120 Change from Fiscal Year 2006 Approved to Adopted Budget Office of Economic Development Approved Financial Summary Operating Budget General Purpose Funds Federal Funds Department Total Adopted Change $ 1,335,550 $ 514,920 1,169,480 $ 513,520 (166,070) (1,400) $ 1,850,470 1,683,000 (167,470) $ $ Staffing Summary Permanent Non-Permanent 11.00 4.50 12.00 1.00 1.00 (3.50) Total Staffing 15.50 13.00 (2.50) Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Transfer of two positions to Urban Planning and Design in support of retail recruitment and business retention (2.00) Reorganization upgrades one position and eliminates one part-time position, with no budget impact (0.50) Transfer of Southern Arizona Institute of Advanced Technology to Outside Agencies in Non-Departmental to consolidate Economic Development agency funding 78,290 (145,760) -0(100,000) Total Changes (2.50) $ B-30 (167,470) Change from Fiscal Year 2006 Approved to Adopted Budget Intergovernmental Relations Approved Financial Summary Operating Budget General Purpose Funds Total Adopted Change $ 567,480 $ 565,860 $ (1,620) $ 567,480 565,860 (1,620) $ $ Staffing Summary Permanent 2.00 3.00 1.00 Total Staffing 2.00 3.00 1.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Addition of one Management Intern position to be funded through Transportation and internal department support 1.00 Total Changes 1.00 B-31 (1,620) -0- $ (1,620) Change from Fiscal Year 2006 Approved to Adopted Budget Tucson-Mexico Trade Office Approved Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds $ Department Total $ Adopted 553,770 $ 273,350 605,900 1,433,020 $ Change 573,840 $ 381,660 590,730 1,546,230 $ 20,070 108,310 (15,170) 113,210 Staffing Summary Permanent Non-Permanent 6.00 8.00 6.00 8.00 -0-0- Total Staffing 14.00 14.00 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Carryforward from Fiscal Year 2005 8,210 5,000 Increased federal grant capacity 100,000 Total Changes -0- B-32 $ 113,210 Change from Fiscal Year 2006 Approved to Adopted Budget Budget and Research Approved Adopted Change Financial Summary Operating Budget General Purpose Funds $ 2,115,750 $ 2,183,580 $ 67,830 Department Total $ 2,115,750 2,183,580 67,830 $ $ Staffing Summary Permanent 22.55 22.55 -0- Total Staffing 22.55 22.55 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Carryforward from Fiscal Year 2005 (2,170) 70,000 Total Changes -0- B-33 $ 67,830 Change from Fiscal Year 2006 Approved to Adopted Budget Finance Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funds Department Total Adopted Change $ 10,910,640 $ -0- 10,794,310 $ 50,000 (116,330) 50,000 $ 10,910,640 10,844,310 (66,330) $ $ Staffing Summary Permanent 149.00 150.00 1.00 Total Staffing 149.00 150.00 1.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Correction to staffing levels due to Fiscal Year 2004 reorganization of Employee Benefits 1.00 (171,630) -0- Funding for maintenance of upgraded financial software 55,300 Certificates of participation proceeds to complete remodeling of support service areas 50,000 Total Changes 1.00 B-34 $ (66,330) Change from Fiscal Year 2006 Approved to Adopted Budget General Services Approved Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds Adopted Change $ 10,979,040 $ 1,500,000 11,311,400 10,747,000 $ 1,500,000 11,333,700 (232,040) -022,300 Total Operating Budget Capital Budget Other Restricted Funds $ 23,790,440 $ 23,580,700 $ (209,740) $ 3,197,300 $ -0- $ (3,197,300) Total Capital Budget $ 3,197,300 $ -0- $ (3,197,300) Department Total $ 26,987,740 $ 23,580,700 $ (3,407,040) Staffing Summary Permanent Non-Permanent 356.00 1.00 356.00 1.00 -0-0- Total Staffing 357.00 357.00 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ (293,500) Transferred one position from Information Technology for Geographic Information Systems (GIS) needs 1.00 51,460 One position eliminated due to completion of Teaching Energy Conservation Grant (1.00) -0- Carryforward from Fiscal Year 2005 32,300 Total Operating Budget Changes -0- $ (209,740) $ (3,197,300) Capital Budget Changes Emergency Communications System Project transferred to Information Technology Total Capital Budget Changes -0- $ (3,197,300) Total Changes -0- $ (3,407,040) B-35 Change from Fiscal Year 2006 Approved to Adopted Budget Human Resources Approved Adopted Change Financial Summary Operating Budget General Purpose Funds $ 2,816,080 $ 2,854,660 $ 38,580 Department Total $ 2,816,080 2,854,660 38,580 $ $ Staffing Summary Permanent 26.00 27.00 1.00 Total Staffing 26.00 27.00 1.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Reorganization to meet customer service needs with no budget increase 1.00 26,950 -0- Miscellaneous adjustments 11,630 Total Changes 1.00 B-36 $ 38,580 Change from Fiscal Year 2006 Approved to Adopted Budget Information Technology Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funds Total Operating Budget Capital Budget Other Restricted Funds Total Capital Budget $ Department Total Adopted Change $ 13,461,500 $ 503,920 13,965,420 $ 14,026,130 $ 503,920 14,530,050 $ 564,630 -0564,630 $ $ -0- $ -0- $ 11,172,300 $ 11,172,300 $ 11,172,300 11,172,300 $ 13,965,420 $ 25,702,350 $ 11,736,930 Staffing Summary Permanent Non-Permanent 99.50 1.66 98.50 1.66 (1.00) -0- Total Staffing 101.16 100.16 (1.00) Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Transferred one position to General Services for Geographic Information Systems (GIS) support (1.00) (23,910) (51,460) Carryforward from Fiscal Year 2005 640,000 Total Operating Budget Changes (1.00) $ 564,630 $ 11,172,300 $ 11,172,300 (1.00) $ 11,736,930 Capital Budget Changes Emergency Communications System Project transferred from General Services, including carryforward from Fiscal Year 2005 Total Capital Budget Changes -0- Total Changes B-37 Change from Fiscal Year 2006 Approved to Adopted Budget Procurement Approved Adopted Change Financial Summary Operating Budget General Purpose Funds $ 3,464,530 $ 3,545,090 $ 80,560 Department Total $ 3,464,530 3,545,090 80,560 $ $ Staffing Summary Permanent 65.00 64.00 (1.00) Total Staffing 65.00 64.00 (1.00) Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to update salaries and benefits $ Transferred one position to Transportation, with no budget impact (1.00) 160 -0- Carryfoward from Fiscal Year 2005 59,400 Miscellaneous adjustments 21,000 Total Changes (1.00) $ B-38 80,560 Change from Fiscal Year 2006 Approved to Adopted Budget Non-Departmental Approved Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds Adopted Change $ 20,598,450 $ 133,990 45,316,320 18,284,690 122,510 47,848,340 $ (2,313,760) (11,480) 2,532,020 $ 66,048,760 $ 66,255,540 $ 206,780 $ -0-0- $ 744,000 3,693,000 $ 744,000 3,693,000 Total Capital Budget $ -0- $ 4,437,000 $ 4,437,000 Department Total $ 66,048,760 $ 70,692,540 $ 4,643,780 Total Operating Budget Capital Budget General Purpose Funds Other Restricted Funds Staffing Summary Permanent Total Staffing 4.75 4.75 -0- 4.75 4.75 -0- Adopted Change Staffing Budget Operating Budget Changes Starr Pass Environmental Enhancement Fee, which will be recovered through increased revenues from the Starr Pass Marriott $ 840,000 Increase in capacity for Pima Animal Control, Access Tucson, and Tucson Unified School District cable access, less the Commission on Urban Native Americans, which was not renewed 272,970 Administrative charge adjustment 205,000 Transfer Southern Arizona Institute of Advanced Technology (SAIAT) funding from Economic Development 100,000 Tucson Downtown Alliance increase based on contractual requirements 18,500 Reduction in debt service costs due to refinancing and revised funding requirements (482,140) Transfer pay and benefit adjustment capacity to Fire and Police (747,550) Total Operating Budget Changes -0- B-39 $ 206,780 Change from Fiscal Year 2006 Approved to Adopted Budget Non-Departmental Adopted Change Staffing Budget Capital Budget Changes Adjustments to project budgets based on scheduled implementation $ 4,437,000 Total Capital Budget Changes -0- $ 4,437,000 Total Changes -0- $ 4,643,780 B-40 Position Changes to the Fiscal Year 2006 Budget Approved Elected and Official Neighborhood Services Environmental and Development Strategic Initiatives Support Services Non-Departmental Total Adopted Change 235.50 3,555.80 1,405.50 93.25 720.71 4.75 234.50 3,576.80 1,411.00 93.75 720.71 4.75 (1.00) 21.00 5.50 0.50 -0-0- 6,015.51 6,041.51 26.00 Position Change Detail Permanent Non-Permanent Total Change Organizational Changes Elected and Official Mayor and Council Courier Executive Assistant Sub-Total City Clerk Secretary Sub-Total Total Elected and Official Neighborhood Services Community Services Community Services Project Coordinator Custodian Customer Service Clerk General Maintenance Trainee/Worker Housing Quality Standards Inspector Housing Services Agent Locksmith Office Assistant Sub-Total B-41 (1.00) (0.50) -0-0- (1.00) (0.50) (1.50) -0- (1.50) 0.50 -0- 0.50 0.50 -0- 0.50 (1.00) -0- (1.00) (2.50) -0(2.00) -0(2.00) (1.00) -0-0- -01.50 -02.00 -0-00.75 2.75 (2.50) 1.50 (2.00) 2.00 (2.00) (1.00) 0.75 2.75 (7.50) 7.00 (0.50) Position Changes to the Fiscal Year 2006 Budget Permanent Non-Permanent Total Change Organizational Changes Neighborhood Services (Continued) Fire Environmental Services Equipment Operator Environmental Services Superintendent Environmental Services Supervisor Environmental Services Worker Equipment Operation Specialist Firefighter Firefighter Assignment: Haz Mat/Technical Rescue Team Paramedic Paramedic Assignment: Haz Mat/Technical Rescue Team Senior Environmental Services Worker Sub-Total Library Customer Service Clerk Sub-Total Parks and Recreation General Maintenance Worker/Trainee Lead Groundskeeper Recreation Assistant Recreation Coordinator Senior Recreation Worker Sub-Total Police Clerk Transcriptionist Customer Service Clerk Financial Specialist Police Crime Analyst Police Lieutenant Police Lieutenant Assignment: Assistant Police Chief Police Lieutenant Assignment: Police Captain Program Coordinator Recreational Worker Secretary Senior Recreational Worker Sub-Total B-42 2.00 1.00 1.00 1.00 1.00 4.00 (3.00) (5.00) 4.00 2.00 -0-0-0-0-0-0-0-0-0-0- 2.00 1.00 1.00 1.00 1.00 4.00 (3.00) (5.00) 4.00 2.00 8.00 -0- 8.00 3.50 -0- 3.50 3.50 -0- 3.50 -01.00 (0.50) (1.00) -0- 3.00 -0-0-00.50 3.00 1.00 (0.50) (1.00) 0.50 (0.50) 3.50 3.00 (1.00) 1.00 1.00 2.00 1.00 1.00 2.00 -0-05.00 -0- -0-0-0-0-0-0-0(1.00) (3.00) -0(2.00) (1.00) 1.00 1.00 2.00 1.00 1.00 2.00 (1.00) (3.00) 5.00 (2.00) 12.00 (6.00) 6.00 Position Changes to the Fiscal Year 2006 Budget Permanent Non-Permanent Total Change Organizational Changes Neighborhood Services (Continued) Office of Equal Opportunity Programs and Independent Police Review Project Manager Sub-Total Total Neighborhood Services Environment and Development Development Services Construction Inspector Engineering Associate Senior Engineering Associate Sub-Total Transportation Construction Inspector Engineering Associate Research Assistant Special Projects Senior Engineering Associate Sub-Total Urban Planning and Design Administrative Assistant Economic Development Specialist Management Analyst Project Manager Secretary Sub-Total Utility Services-Environmental Services Director of Environmental Services Sub-Total Utility Services-Tucson Water Utility Service Worker Sub-Total Total Environment and Development B-43 1.00 -0- 1.00 1.00 -0- 1.00 16.50 4.50 21.00 (4.00) (1.00) (1.00) -0-0-0- (4.00) (1.00) (1.00) (6.00) -0- (6.00) 4.00 1.00 1.00 1.00 -0-0-0-0- 4.00 1.00 1.00 1.00 7.00 -0- 7.00 1.00 1.00 1.00 1.00 0.50 -0-0-0-0-0- 1.00 1.00 1.00 1.00 0.50 4.50 -0- 4.50 (1.00) -0- (1.00) (1.00) -0- (1.00) 1.00 -0- 1.00 1.00 -0- 1.00 5.50 -0- 5.50 Position Changes to the Fiscal Year 2006 Budget Permanent Non-Permanent Total Change Organizational Changes Strategic Initiatives Tucson Convention Center Cashier Convention Center Event Services Manager Convention Center Parking Supervisor Deputy Director of Convention Center Office Assistant Secretary Sub-Total Office of Economic Development Administrative Assistant Database Administrator Economic Development Specialist Economic Development Supervisor Sub-Total Intergovernmental Relations Municipal Intern Sub-Total Total Strategic Initiatives Support Services Finance Finance Manager Sub-Total General Services Administrative Assistant Community Services Project Supervisor Sub-Total Human Resources Administrative Assistant Management Coordinator Staff Assistant Sub-Total Information Technology Administrative Assistant Sub-Total B-44 1.00 1.00 0.50 (1.00) -00.50 (0.50) -0-0-00.50 -0- 0.50 1.00 0.50 (1.00) 0.50 0.50 2.00 -0- 2.00 (1.00) -0(2.00) 1.00 -0(0.50) -0-0- (1.00) (0.50) (2.00) 1.00 (2.00) (0.50) (2.50) 1.00 -0- 1.00 1.00 -0- 1.00 1.00 (0.50) 0.50 1.00 -0- 1.00 1.00 -0- 1.00 1.00 (1.00) -0-0- 1.00 (1.00) -0- -0- -0- 1.00 (1.00) 1.00 -0-0-0- 1.00 (1.00) 1.00 1.00 -0- 1.00 (1.00) -0- (1.00) (1.00) -0- (1.00) Position Changes to the Fiscal Year 2006 Budget Permanent Non-Permanent Total Change Organizational Changes Support Services (Continued) Procurement Senior Reprographics Technician Sub-Total Total Support Services Total Organizational Changes in the Budget B-45 (1.00) -0- (1.00) (1.00) -0- (1.00) -0- -0- -0- 22.00 4.00 26.00 Position Changes to the Fiscal Year 2006 Budget Permanent Non-Permanent Total Change Reclassifications and Other General Changes Elected and Official Mayor and Council Administrative Assistant Executive Assistant Executive Assistant/City Manager or Mayor Management Assistant Sub-Total City Manager Assistant to the City Manager Special Projects Coordinator Sub-Total City Clerk Office Supervisor Secretary Sub-Total Total Elected and Official (2.00) (3.00) 3.00 2.00 -0-0-0-0- (2.00) (3.00) 3.00 2.00 -0- -0- -0- 1.00 (1.00) -0-0- 1.00 (1.00) -0- -0- -0- 1.00 (1.00) -0-0- 1.00 (1.00) -0- -0- -0- -0- -0- -0- Neighborhood Services City Court Assistant Director Court Administrator Court Clerk Deputy Director of City Court Management Coordinator Probation Officer Secretary Senior Court Clerk Senior Probation Officer Sub-Total 1.00 (1.00) (15.00) 1.00 (1.00) (1.00) (2.00) 17.00 1.00 -0- -0-0-0-0-0-0-0-0-0-0- 1.00 (1.00) (15.00) 1.00 (1.00) (1.00) (2.00) 17.00 1.00 -0- Community Services Community Services Manager Financial Specialist Sub-Total 1.00 (1.00) -0- -0-0-0- 1.00 (1.00) -0- (1.00) 1.00 -0- -0-0-0- (1.00) 1.00 -0- Fire Clerk Transcriptionist Secretary Sub-Total B-46 Position Changes to the Fiscal Year 2006 Budget Permanent Non-Permanent Total Change Reclassifications and Other General Changes Neighborhood Services (Continued) Library Library Page Sub-Total Parks and Recreation Administrative Assistant Environmental Project Coordinator Facility and Equipment Maintenance Specialist Parks Equipment Operator Pest Control Specialist Recreation Assistant Sub-Total Police Account Clerk Crime Laboratory Coordinator Crime Scene Specialist Criminalist Fingerprint System Operator LAN Administrator Mainframe Systems Programmer Management Assistant Marshall Police Certified Latent Print Examiner Police Crime Analyst Police Hazardous Devices Technician Police Latent Print Examiner Police Latent Print Examiner Supervisor Police Lieutenant Police Officer Police Officer Assignments Senior Account Clerk Senior Criminalist Staff Assistant Sub-Total Total Neighborhood Services B-47 46.00 (46.00) -0- 46.00 (46.00) -0- 1.00 1.00 (1.00) (1.00) 1.00 (1.00) -0-0-0-0-0-0- 1.00 1.00 (1.00) (1.00) 1.00 (1.00) -0- -0- -0- (1.00) 1.00 1.00 2.00 (1.00) (1.00) 1.00 1.00 (1.00) (5.00) 1.00 2.00 (2.00) (1.00) 2.00 (5.00) 1.00 1.00 5.00 (1.00) -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0- (1.00) 1.00 1.00 2.00 (1.00) (1.00) 1.00 1.00 (1.00) (5.00) 1.00 2.00 (2.00) (1.00) 2.00 (5.00) 1.00 1.00 5.00 (1.00) -0- -0- -0- 46.00 (46.00) -0- Position Changes to the Fiscal Year 2006 Budget Permanent Non-Permanent Total Change Reclassifications and Other General Changes Environment and Development Transportation Administrative Assistant Community Service Project Coordinator Engineering Associate LAN Administrator Lead Management Analyst Management Analyst Parking Services Supervisor Project Manager Public Information Specialist Senior Engineering Associate System Analyst Transportation Administrator Transportation Engineering Supervisor Transportation Project Coordinator Sub-Total Urban Planning and Design Planning Administrator Transportation Administrator Sub-Total Utility Services-Environmental Services Environmental Inspector Environmental Services Inspection Supervisor Environmental Services Landfill Inspector Management Analyst Senior Environmental Equipment Operator Utility Services Equipment Controls Technician Sub-Total Utility Services-Tucson Water Administrative Assistant Database Administrator Information Technology Specialist Lead Utility Service Worker Maintenance Mechanic/Electrical Supervisor Safety Specialist Senior Accountant/Auditor B-48 (1.00) (1.00) (1.00) 1.00 (1.00) 2.00 (1.00) (1.00) (1.00) 2.00 (1.00) 1.00 1.00 1.00 -0-0-0-0-0-0-0-0-0-0-0-0-0-0- (1.00) (1.00) (1.00) 1.00 (1.00) 2.00 (1.00) (1.00) (1.00) 2.00 (1.00) 1.00 1.00 1.00 -0- -0- -0- 1.00 (1.00) -0-0- 1.00 (1.00) -0- -0- -0- (1.00) 1.00 1.00 1.00 (1.00) (1.00) -0-0-0-0-0-0- (1.00) 1.00 1.00 1.00 (1.00) (1.00) -0- -0- -0- (1.00) 1.00 2.00 5.00 (1.00) 1.00 (2.00) -0-0-0-0-0-0-0- (1.00) 1.00 2.00 5.00 (1.00) 1.00 (2.00) Position Changes to the Fiscal Year 2006 Budget Permanent Non-Permanent Total Change Reclassifications and Other General Changes Environment and Development (Continued) Utility Services-Tucson Water (continued) Senior Utility Service Worker Staff Assistant Water Control Systems Manager Sub-Total Total Environmental and Development Strategic Initiatives Tucson Convention Center Center Services Assistant Secretary Sub-Total Office of Economic Development Economic Development Specialist Sub-Total Total Strategic Initiatives Non-Departmental General Expense (Rio Nuevo) Project Manager Special Projects Coordinator/City Manager's Office Sub-Total Total Non-Departmental (6.00) 2.00 (1.00) -0-0-0- (6.00) 2.00 (1.00) -0- -0- -0- -0- -0- -0- (1.00) 1.00 -0-0- (1.00) 1.00 -0- -0- -0- 3.00 (3.00) -0- 3.00 (3.00) -0- 3.00 (3.00) -0- (1.00) 1.00 -0-0- (1.00) 1.00 -0- -0- -0- -0- -0- -0-0- Total Reclassifications and Other General Changes 49.00 (49.00) Total Position Changes 71.00 (45.00) B-49 26.00 B-50 LEGAL REQUIREMENTS Primary Property Tax Levy: There is a strict limitation on how much the city can levy as a primary property tax. This primary property tax levy is limited to an increase of 2% over the previous year's maximum allowable primary levy, plus an increased dollar amount due to a net gain in property not taxed the previous year (ARS §42-17051). Even if the city does not adopt the maximum allowable levy from year to year, the 2% allowable increase will be based on the prior year's "maximum allowable levy.” The "net new property" factor is included in the calculation to take into account all new construction and any additional property added to a community due to annexations. The 2% increase applies to all taxable property. The city’s budget is subject to requirements set by the State of Arizona's Constitution and statutes, and the Tucson City Charter. LEGAL REQUIREMENTS IMPOSED BY THE STATE State Spending Limitation Tucson, like all cities in the State of Arizona, is subject to numerous budgetary and related legal requirements. Article IX, Section 20(1) of the Arizona Constitution sets out limits on the city's legal budget capacity. In general, the Mayor and Council cannot authorize expenditures of local revenues in excess of the expenditure limitation determined annually by the State of Arizona's Economic Estimates Commission (EEC). This limitation is based on the city's actual expenditures incurred during Fiscal Year 1980, adjusted to reflect subsequent inflation and population growth. Not subject to this limit are items such as bond proceeds, related debt service, interest earnings, certain highway user revenue funds, federal funds, monies received pursuant to intergovernmental agreements, and state grants which are to be used for specific purposes. Each year the EEC recalculates expenditure limitations for population growth and inflation, using the federal Gross Domestic Product (GDP) index to account for inflationary increases. Secondary Property Tax Levy: The secondary property tax allows the city to levy a property tax for the purpose of retiring the principal and paying interest on general obligation bonds. This levy is referred to as the "unlimited" levy because this property tax may be levied in an amount to make necessary interest payments on, and for the retirement of, general obligation bonds issued by the city. Not only is the dollar amount of the secondary property tax levy "unlimited," the actual full cash value of property that is used in determining the tax rate will be increased by changes in market value without a cap (Article IX, Section 18 and 19, Arizona Constitution). Unlike the primary tax system which uses a controlled assessment system to determine the tax rate, state laws allow the city to levy the amount of secondary property tax necessary to pay off its general obligation bonds. In November 1981, in accordance with state statutes, the voters of Tucson passed a $800,000 increase in the expenditure base used to calculate the city's expenditure limitation. In November 1987, the voters of Tucson passed a $46.9 million increase. The effects are permanent increases in the city's expenditure limitation, which the city has used for purposes of improved police, recreational, water, transportation, fire protection services, and paramedic services. Budget Adoption State law (ARS §42-17101) requires that on or before the third Monday in July of each fiscal year, the Mayor and Council must adopt a tentative budget. Once this tentative budget has been adopted, the expenditures may not be increased upon final adoption. In effect, with the adoption of the tentative budget, the council has set its maximum "limits" for expenditure, but these limits may be reduced upon final adoption. Property Tax Levy Limitation The Arizona Constitution and Arizona Revised Statutes (ARS) specify a property tax levy limitation system. This system consists of two levies, a limited levy known as the primary property tax levy and an unlimited levy referred to as the secondary property tax levy. The primary levy may be imposed for all purposes, while the secondary levy may only be used to retire the principal and interest or redemption charges on general obligation bonded indebtedness. Once the tentative budget has been adopted, it must be published once a week for at least two consecutive weeks. The tentative budget must be fully itemized in accordance with forms supplied by the auditor general and included in the council meeting minutes. C-1 1) Elected and Official 2) Neighborhood Services 3) Environment and Development 4) Strategic Initiatives 5) Support Services 6) Non-Departmental State law (ARS §42-17104, §42-17105) specifies that seven or more days prior to the date the property tax levy is adopted, the city or town council must adopt the final budget for the fiscal year by roll call vote at a special meeting called for that purpose. State law requires adoption of the tax levy on or before the third Monday in August. The adopted budget then becomes the amount proposed for expenditure in the upcoming fiscal year and shall not exceed the total amount proposed for expenditure in the published estimates (ARS §42-17106). Once adopted, no expenditures shall be made for a purpose not included in the budget and no expenditures shall be made in excess of the amounts specified for each purpose in the budget, except as provided by law. This restriction applies whether or not the city has at any time received, or has on hand, funds or revenue in excess of those required to meet expenditures incurred under the budget. Federal and bond funds are not subject to this requirement. The departments within a given program category are held accountable for their budget. Each department and the Budget and Research Department continuously monitor expenditures. If budget changes are needed, city departments prepare budget change requests that identify the areas to be increased and decreased. The Director of Budget and Research approves these budget change requests; under special circumstances the City Manager or his designee also approves the change requests. If there are major policy or program implications associated with a change, the City Manager may submit it to the Mayor and Council for approval. Once approved, the revised appropriation is entered into the city’s financial management system. Adoption Of Tax Levy ARS §42-17106 permits the Mayor and Council, on the affirmation of a majority of the members at a duly noticed public meeting, to authorize the transfer of funds between program categories if the funds are available so long as the transfer does not violate the state set spending limitations. State law (ARS §42-17107) governing truth in taxation notice and hearing requires that on or before July 1st, the county assessor shall transmit to the city an estimate of the total net assessed valuation of the city, including an estimate of new property that has been added to the tax roll since the previous levy of property taxes in the city. If the proposed primary property tax levy, excluding amounts that are attributable to new construction, is greater than the amount levied by the city in the preceding year, the governing body shall publish a notice of tax increase. The truth in taxation hearing must be held prior to the adoption of the property tax levy. LEGAL REQUIREMENTS IMPOSED BY THE CITY CHARTER Legal requirements of the Tucson City Charter related to limiting property taxes and scheduling of budget adoption–are more restrictive than state law. Property Tax Levy Limitation The tax levy for the city must be adopted on or before the third Monday in August (ARS §42-17151). The tax levy must be specified in an ordinance adopted by the Mayor and Council. The levy is for both the primary and secondary tax. Chapter IV, Section 2 of the Tucson Charter sets an upper property tax limit of $1.75 per $100 assessed value. Therefore, state laws notwithstanding, the city cannot levy a combined primary and secondary property tax that exceeds $1.75. Budget Revisions Fiscal Year ARS §42-17106 requires that no expenditures be made for a purpose not included in the adopted budget in any fiscal year in excess of the amount specified for each purpose in the budget. The City of Tucson in its annual Budget Adoption Resolution defines “purpose” as a series of departments and offices organized into the following six program categories: The fiscal year of the city begins the first day of July of each year. (Tucson City Charter, Chapter XIII, Section 1) C-2 possible implications of not having a budget in place before the beginning of the fiscal year, it is advised that the Mayor and Council adopt a final budget on or before June 30. Submission of the Recommended Budget The City Charter requires that the City Manager prepare a written estimate of the funds required to conduct the business and affairs of the city for the next fiscal year. This estimate, which is the recommended budget, is due on or before the first Monday in May of each year, or on such date in each year as shall be fixed by the Mayor and Council. (Tucson City Charter, Chapter XIII, Section 3) The Mayor and Council are required to hold a public hearing at least one week prior to the day on which tax levies are made, so that taxpayers may be heard in favor of or against any proposed tax levy. After the hearing has been concluded, the Mayor and Council adopt the budget as finally determined upon. All taxes are to be levied or voted upon in specific sums and cannot exceed the sum specified in the published estimate. (Tucson City Charter, Chapter XVIII, Section 6, and Ordinance Number 1142, effective 6-23-48) Budget Approval On or before the first Monday in June of each year, or on such date in each year as shall be fixed by the Mayor and Council, the City Manager is required to submit to the Mayor and Council an estimate of the probable expenditures for the coming fiscal year, stating the amount in detail required to meet all expenditures necessary for city purposes, including interest and sinking funds, and outstanding indebtedness. Also required is an estimate of the amount of income expected from all sources and the probable amount required to be raised by taxation to cover expenditures, interest, and sinking funds. (Tucson City Charter, Chapter XVIII, Section 4) City Ordinance Setting the Tax Rate On the day set for making tax levies, and not later than the third Monday in August, the Mayor and Council must meet and adopt an ordinance that levies upon assessed valuation of property within the city a rate of taxation sufficient to raise the amounts estimated to be required in the annual budget. (Tucson City Charter, Chapter XVIII, Section 7, and Ordinance Number 1142, effective 6-23-48) Budget Publication and Hearings The budget has to be prepared in detail sufficient to show the aggregate sum and the specific items allowed for each and every purpose. The budget and a notice that the Mayor and Council will meet for the purpose of making tax levies must be published in the official newspaper of the city once a week for at least two consecutive weeks following the tentative adoption of such budget. (Tucson City Charter, Chapter XVIII, Section 5) THE CITY’S BUDGET PROCESS While state and city legal requirements dictate certain facets of the budget process, the budget evolves though a number of steps: (1) identification of priorities, (2) a five-year forecast of revenues and expenditures, (3) department requests and the City Manager’s recommendation, and (4) Mayor and Council adoption. Adoption of the Budget and Tax Levy Step 1: Identification of Priorities Under Chapter XIII, Section 13 of the City Charter, any unexpended funds held at the conclusion of the fiscal year, other than funds needed to pay bond indebtedness, are no longer available for expenditure and must be credited against amounts to be raised by taxation in the succeeding fiscal year. If a budget is adopted after the beginning of the fiscal year, Chapter XIII, Section 13 may bar the expenditure of any money until a budget is in place. The implications of Chapter XIII, Section 13 are two fold. First, any nonbond related expenditure authority terminates on June 30. Second, since the clear implication of this section is that an adopted budget is necessary to provide expenditure authority, if a budget is not in place on July 1 the city cannot expend funds. To avoid any To identify the community’s values and priorities, public forums were conducted during the spring and summer of 1997 as part of the Livable Tucson Vision Program. Over 1,200 community members, business people, and city employees participated. Seventeen goals for strengthening the community emerged from these forums. A follow-up citizen survey in 2001 helped to confirm and define the priorities of the community. In addition, the Mayor and Council members individually held townhalls throughout the year on budget issues and priorities. These priorities are used by departments and city management to assess programs and projects during the preparation of the budget. C-3 Citizens Advisory Committee: The Mayor and Council have also established a Bond Project Oversight Committee (BPOC). The BPOC tracks the city’s use of bond funds through regular committee meetings and attendance at project management reviews. The city’s strategic plan was developed to further guide resources towards priority areas and to focus attention on the results to be achieved. In December 2001, the Mayor and Council adopted six focus areas: Transportation, Downtown, Growth, Neighborhoods, Economic Development, and Good Government. Within each focus area, a set of strategies and priority projects were approved. Taken collectively, these projects set the workplan for the city. Mayor and Council Review and Adoption: Within the framework of the identified community priorities and the policy initiatives, the Mayor and Council review the city manager’s recommended budget during several study sessions. Department directors are available to respond to questions. Following these reviews and public hearings to obtain taxpayer comments, the Mayor and Council adopt the budget and property tax levy. Step 2: Five-Year Forecast of Revenues and Expenditures Each summer a five-year financial forecast–the proforma–is prepared for all sources of funds. This financial forecast takes into consideration economic factors and strategic plans implemented by the city. All departments participate by projecting their expenditures, which are reviewed and modified by the Budget and Research Department. The Finance Department projects revenues. The expenditure and revenue forecasts are collated by the Budget and Research Department and presented to the city manager. The proforma then serves as a baseline from which to develop a balanced budget for the coming year. Step 3: Department Requests and the City Manager’s Recommendation In the fall, department directors are asked to submit budget requests. Following a review by the Budget and Research Department, each department’s requested budget is reviewed by the City Manager. The City Manager, acting upon citywide priorities, will revise department requested budgets and prepare a balanced budget for Mayor and Council consideration. Step 4: Mayor and Council Adoption As noted earlier, this step in the process is governed by both state and city legal requirements and provides for citizen comment. Public Hearings: Citizens are provided three public hearings to express to the Mayor and Council their opinions and concerns about the recommended budget and property tax levy. The first public hearing is held prior to the Mayor and Council’s study session reviews of the recommended budget. The second public hearing is held subsequent to those reviews and the Mayor and Council’s tentative adoption of the budget. The third public hearing is a truth in taxation hearing regarding the primary property tax levy. C-4 FINANCIAL POLICIES AND PRACTICES Cost of Development In addition to legal requirements set by state law and the City Charter, the budget is developed and adopted under the guidelines of a series of policies and practices. State legislation requires cities to include a cost of development element in the city’s General Plan. Development is required to pay its fair share of the cost of additional public service and needs generated by new development. The General Plan provides a framework for public-private cost sharing of capital facilities needed to serve new development. Balanced Budget The city shall adopt a balanced budget so that expenditures approved for city purposes will not exceed the estimate of income expected from all sources, including available balances from prior years. This policy applies to expenditures and revenues within each fund such that each fund is individually balanced. Furthermore, one-time funding sources will only be used for one-time expenditures to avoid a future imbalance that would be caused by funding recurring expenditures with one-time revenues or balances from prior years. General Accounting Policies The city complies with Generally Accepted Accounting Principles and Governmental Accounting Standards Board statements in accounting for and presenting, financial information. The modified accrual basis of accounting is used for all governmental fund types while other fund types including enterprise funds comply with the full accrual basis of accounting. Encumbrance accounting records purchase orders and other contracts as reservations of balances in each fund and does not recognize outstanding encumbrances as expenditures at year end. Additional information on the basis of accounting as it compares to the budget is found on page E-9. Fund Balance In September of 2000, the Mayor and Council adopted a policy that the General Fund unreserved fund balance, previously referred to as the strategic reserve, be increased to 7.5% of expenditures by Fiscal Year 2006. Investment Policy Revenue Diversification The City Charter and state statutes authorize the city to invest in obligations of the U.S. Government, its agencies and instrumentalities, money market funds consisting of the above, repurchase agreements, bank certificates of deposit, commercial paper rated A-1/P1, corporate bonds and notes rated AAA or AA, and the State of Arizona Local Government Investment Pool. Investment maturities are scheduled so that maturing principal and interest, plus ongoing, noninvestment cash flow, is sufficient to cover projected payroll, operating, and capital expenses as these become payable. Funds available for the day-to-day operation of the city may be invested in authorized investments with a final maturity not exceeding three years from the date of the investment. Monies not related to the day-to-day operation of the city, such as bond proceeds, may also be invested for a maximum of three years with maturities based upon anticipated needs. The city cannot meet the growing demand for services without diversifying its revenue base. Although the state places certain restrictions on raising revenues, restrictions due to the City Charter can be lifted if approved by the voters. The city must continue in its efforts to expand revenues such as fees for services, and to remove limitations set by the City Charter where feasible. Fees for Service Pricing Policy In 1995 the city developed a pricing policy decision tree to categorize services that should be fully tax supported on one extreme to fully fee supported on the other. If a service benefits a large segment of the community and is considered a public service, then it should be funded with general tax dollars. If the service benefits individuals and is more of a private service, a market-based fee is appropriate. Services that fall in between may be funded by a combination of taxes and fees. C-5 Debt Management Policy The city’s debt program includes a variety of financing mechanisms to meet long-term capital needs of the community. In all cases, the city aggressively manages the debt program with the assistance of a financial advisor and bond counsel. Restructuring, refinancing, and advance bond refunding are used to limit the city’s debt service costs and to provide maximum future borrowing flexibility. C-6 STATEMENT REQUIRED BY ARIZONA REVISED STATUTES §42-17102 RELATIVE TO PROPERTY TAXATION PRIMARY AND SECONDARY TAX LEVIES FISCAL YEARS 2005 AND 2006 Adopted FY 2005 Levy Property Tax Primary $ Secondary Total $ Actual FY 2005 Levy 8,812,120 $ 2 3 4 8,746,464 $ 9,174,950 21,274,250 24,235,450 30,148,640 $ 30,020,714 $ 33,410,400 Primary Secondary 1 FY 2006 Levy 21,336,520 Actual FY 2005 Rate Property Tax FY 2006 Maximum Levy Amount $ 3 0.3531 0.8316 $ 0.3469 0.8895 Total $ 1.1847 $ 1.2364 1 $ 24,235,450 $ 33,410,402 Amount Rate Increase/ (Decrease) Estimated FY 2006 4 Rate $ 9,174,952 Amount of Levy Increase/ (Decrease) $ $ Percentage Levy Increase/ (Decrease) 428,486 4.9% 2,961,200 13.9% 3,389,686 11.3% 2 Percentage Rate Increase/ (Decrease) (0.0062) 0.0579 (1.8%) 7.0% 0.0517 4.4% The primary property tax levy is shown at the estimated maximum possible amount. The actual maximum amount may be less. The primary property tax levy is limited to an increase of two percent over the previous year's maximum allowable primary levy plus an increased dollar amount due to a net gain in property not taxed in the previous year. The net new property factor is included in the calculation to take into account all new construction and property annexed in the last year. Sales of $25 million and $14 million in general obligation bonds are assumed for 2005 and 2006, respectively. Both of these rates may differ depending upon the final actual assessed valuations. C-7 CITY OF TUCSON PROPERTY TAX SUMMARY Taxing Jurisdiction FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 Property Tax Rates (Per $100 of assessed value) State of Arizona Pima County $ 1 0.47 $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- 5.28 5.24 5.34 5.41 5.74 5.72 5.68 5.60 5.57 5.56 6.29 6.99 6.46 6.26 6.03 6.05 5.86 5.74 5.69 5.51 Pima Community College 1.22 1.24 1.18 1.19 1.37 1.56 1.55 1.53 1.49 1.34 Flood Control District 0.36 0.36 0.33 0.32 0.30 0.30 0.35 0.35 0.35 0.35 Fire District 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.04 0.04 0.04 Central Arizona Project (CAP) Conservation District 0.14 0.14 0.14 0.14 0.14 0.13 0.13 0.13 0.12 0.12 Tucson Unified School District 2 C-8 Sub-Total without the City of Tucson City of Tucson 3 Total Percent increase/(decrease) from prior year $ 13.81 $ 14.02 $ 13.50 $ 13.37 $ 13.63 $ 13.81 $ 13.62 $ 13.39 $ 13.26 $ 12.92 1.15 1.15 0.99 0.96 1.02 1.13 1.12 1.12 1.16 1.18 $ 14.96 $ 15.17 $ 14.49 $ 14.33 $ 14.65 $ 14.94 $ 14.74 $ 14.51 $ 14.42 $ 14.10 1.0% 1.4% (4.5%) (1.1%) 2.2% 2.0% (1.3%) (1.6%) (0.6%) (2.2%) Assessed Valuation 1 2 3 Primary (billions) $ 1.530 $ 1.582 $ 1.727 $ 1.830 $ 1.887 $ 1.999 $ 2.088 $ 2.203 $ 2.344 $ 2.477 Secondary (billions) $ 1.569 $ 1.599 $ 1.819 $ 1.904 $ 1.945 $ 2.049 $ 2.138 $ 2.269 $ 2.427 $ 2.558 Includes the Education Assistance rate ($0.46 in Fiscal Year 2004). Tucson Unified School District tax levy reflects State Aid to Education reduction ($2.82 in Fiscal Year 2004). Does not include any special assessment districts. City of Tucson Residential Property Owner Tax Valuation Fiscal Year 2005 Property Taxes Owner-Occupied Home with Assessed Valuation of $100,000 Pima County1 $ 595 City of Tucson $ 118 CAP Conservation District $ 12 Tucson Unified School District2 $ 551 Pima Community College $ 134 Tax Rate Per $1,000 1 Pima County 2 Tucson Unified School District $ Pima Community College Central Arizona Project (CAP) Conservation District 5.95 5.51 1.34 Total Tax Amount3 $ 0.12 Percent of Total 595.00 551.00 134.00 42.2% 39.1% 9.5% 12.00 0.9% Sub-Total City of Tucson $ 12.92 1.18 $ 1,292.00 118.00 91.6% 8.4% Total $ 14.10 $ 1,410.00 100.0% 1 Includes Flood Control, Free Library District, and Fire District tax rates. 2 Tucson Unified School District actual levy after decrease for State Aid to Education. 3 The tax amount is calculated on 10% of the assessed value for tax purposes. C-9 SCHEDULE A TO RESOLUTION 20102 CITY OF TUCSON Summary Schedule of Estimated Revenues and Expenditures/Expenses Fiscal Year 2005-06 FUND 1. General Fund ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2004-05* $ 2. Special Revenue Funds 383,144,910 5. Total Debt Service Funds 6. Capital Projects Funds OTHER FINANCING 2005-06 SOURCES $ 19,335,200 $ 15,068,400 TOTAL BUDGETED FINANCIAL INTERFUND TRANSFERS EXPENDITURES/ RESOURCES 2005-06 AVAILABLE 2005 EXPENSES IN 06 2005-06 $ 7,607,700 $ 55,905,910 69,487,250 9,161,110 $ 382,563,890 $ 382,563,890 319,331,690 319,331,690 37,884,900 36,949,080 24,235,450 8,042,000 9,161,110 41,438,560 41,438,560 37,884,900 36,949,080 24,235,450 8,042,000 9,161,110 41,438,560 41,438,560 92,951,200 100,409,652 74,933,900 74,933,900 193,270,190 191,153,310 188,569,540 4,277,250 2,720,350 190,126,440 190,126,440 193,270,190 191,153,310 188,569,540 4,277,250 2,720,350 190,126,440 190,126,440 $ 67,787,370 $ 1,008,394,480 325,076,010 3. Debt Service Funds Available 4. Less: Designation for Future Debt Retirement ESTIMATED FUND REVENUES BALANCE/ ACTUAL DIRECT OTHER THAN NET EXPENDITURES/ PROPERTY TAX PROPERTY ASSETS*** EXPENSES REVENUES TAXES July 1, 2005** 2004-05** 2005-06 2005-06 Primary: $ 9,174,950 $ 402,351,950 $ 365,577,651 $ Secondary: 282,625,290 243,937,150 74,933,900 7. Permanent Funds 8. Enterprise Funds Available 9. Less: Designation for Future Debt Retirement 10. Total Enterprise Funds 11. Internal Service Funds 12. TOTAL ALL FUNDS $ 1,032,327,210 $ 976,714,983 $ $ 33,410,400 $ 842,900,640 EXPENDITURE LIMITATION COMPARISON 1. Budgeted expenditures/expenses 2. Add/subtract: estimated net reconciling items 3. Budgeted expenditures/expenses adjusted for reconciling items 4. Less: estimated exclusions 5. Amount subject to the expenditure limitation 6. EEC or voter-approved alternative expenditure limitation $ 113,614,750 $ 2004-05 $ 1,032,327,210 2005-06 $ 1,008,394,480 1,032,327,210 506,356,490 $ 525,970,720 $ 527,063,475 1,008,394,480 461,558,580 $ 546,835,900 $ 547,120,880 $ 86,256,060 The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted. * Includes Expenditure/Expense Adjustments Approved in 2004-05 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. *** Amounts in this column represent Fund Balance/Net Asset amounts except for amounts invested in capital assets, net of related debt, and reserved/restricted amounts established as offsets to assets presented for informational purposes (i.e., prepaids, inventory, etc.). C-13 $ 1,008,394,480 SCHEDULE B TO RESOLUTION 20102 CITY OF TUCSON Summary of Tax Levy and Tax Rate Information Fiscal Year 2005-06 2004-05 FISCAL YEAR 1. Maximum allowable primary property tax levy. A.R.S. §42-17051(A). $ 2. Amount received from primary property taxation in the 2004-05 fiscal year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18). $ 2005-06 FISCAL YEAR 8,812,124 $ 9,174,950 8,812,120 $ 9,174,950 3. Property tax levy amounts A. Primary property taxes $ B. Secondary property taxes 21,336,520 C. Total property tax levy amounts $ 30,148,640 $ 8,746,464 $ 8,746,464 24,235,450 $ 33,410,400 4. Property taxes collected* A. Primary property taxes (1) 2004-05 year's levy (2) Prior years’ levies (3) Total primary property taxes B. Secondary property taxes (1) 2004-05 year's levy (2) Prior years’ levies (3) Total secondary property taxes $ 21,274,250 $ 21,274,250 C. Total property taxes collected $ 30,020,714 5. Property tax rates A. City/Town tax rate (1) Primary property tax rate (2) Secondary property tax rate (3) Total city/town tax rate 0.3531 0.8316 1.1847 0.3469 0.8895 1.2364 B. Special assessment district tax rates Secondary property tax rates - As of the date the proposed budget was prepared, the no special assessment districts for which secondary city/town was operating property taxes are levied. For information pertaining to these special assessment districts and their tax rates, please contact the city/town. * 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. C-14 SCHEDULE C TO RESOLUTION 20102 CITY OF TUCSON Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2005-06 ESTIMATED REVENUES 2004-05 SOURCE OF REVENUES ACTUAL REVENUES 2004-05* ESTIMATED REVENUES 2005-06 GENERAL FUND Local taxes Business Privilege Tax Public Utility Tax Transient Occupancy Tax Room Tax Occupational Taxes Liquor Taxes Use Tax Licenses and permits Application Fees Sign Permits Parking Meter Collections Vehicle Permits Developer In Lieu Fees Fire Inspection Fee Temporary Workzone Traffic Control Fee Cable Television Licenses Public, Educational, Government Operating Support (PEG) Public, Educational, Government Capital Support (PEG) Telecommunications Applications Fee Telecommunications Licenses and Franchise Fees Utility Franchise Fees $ 176,600,000 8,370,000 7,350,000 1,890,000 2,070,000 760,000 4,490,000 260,000 285,000 310,000 60,000 $ 175,750,000 8,090,000 7,460,000 2,050,000 2,090,000 760,000 4,670,000 $ 184,540,000 8,250,000 7,760,000 2,130,000 2,130,000 780,000 4,900,000 180,000 300,000 296,000 70,000 47,900 190,000 305,000 440,000 75,000 220,700 600,000 500,000 3,234,240 2,920,000 930,000 3,040,000 970,000 532,700 580,000 600,000 650,000 730,000 760,000 11,680,000 12,130,000 12,620,000 Intergovernmental Auto Lieu Taxes State Sales Tax State Revenue Sharing Grants-in-Aid Other 21,410,000 43,185,270 44,853,450 456,720 741,000 22,340,000 45,030,000 44,850,000 223,500 748,000 23,230,000 47,670,000 50,930,000 410,820 813,000 Charges for services General Government Public Safety Development Services Charges Recreation 462,980 5,780,000 10,989,690 5,430,000 584,800 6,462,000 10,558,000 4,200,000 580,940 6,973,000 10,980,000 4,200,000 Fines and forfeits Civil Traffic Diversion Program Civil Traffic Violations Criminal Traffic Violations Probation Fees Parking Violations Forfeitures/Assessments Other 2,346,000 500,000 5,304,000 347,000 326,000 1,982,160 1,817,000 1,490,000 560,000 5,320,000 450,000 560,000 800,000 2,020,000 1,520,000 570,000 5,430,000 460,000 590,000 2,155,330 2,060,000 500,000 560,000 750,000 300,750 350,000 6,000 Interest on investments Interest Earnings C-15 SCHEDULE C TO RESOLUTION 20102 CITY OF TUCSON Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2005-06 SOURCE OF REVENUES ESTIMATED REVENUES 2004-05 ACTUAL REVENUES 2004-05* ESTIMATED REVENUES 2005-06 In-lieu property taxes Contributions Voluntary contributions Miscellaneous Rentals Sale of Property Recovered Expenditures Sundry Income Other General Revenues Off Duty Police Program Other Funding Sources 1,380,230 616,000 489,000 226,000 1,000,000 3,129,170 2,577,310 Total General Fund $ 375,047,670 1,530,230 790,000 405,000 272,000 1,561,990 805,000 413,000 275,000 3,750,000 3,109,060 2,304,110 3,129,170 2,334,370 $ 374,270,970 $ 402,351,950 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. C-16 SCHEDULE C TO RESOLUTION 20102 CITY OF TUCSON Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2005-06 SOURCE OF REVENUES ESTIMATED REVENUES 2004-05 ACTUAL REVENUES 2004-05* ESTIMATED REVENUES 2005-06 SPECIAL REVENUE FUNDS Highway User Revenue Fund State Grants-in-Aid Interest Earnings Non-Revenue Receipts 32,458,120 464,000 1,100,000 Total Highway User Revenue Fund $ 34,022,120 Local Transportation Assistance Fund State Grants-in-Aid 40,835,000 518,400 691,011 $ 2,646,230 Total Local Transportation Assistance Fund $ 2,646,230 Mass Transit Fund Charges for Current Services Local Operating Assistance State Grants-in-Aid Federal Grants Total Mass Transit $ $ 32,459,730 18,052,950 10,410,330 Intergovernmental Funds State Grants-in-Aid County/Local Pima Association of Governments $ 34,425,460 Housing Assistance Funds Public Housing Local Revenue Public Housing Federal Revenue $ 61,987,490 Other Federal Funds Community Development Block Grant Entitlement Police Grants Transportation Grants Other Federal Grants Total Other Federal Funds $ 10,202,549 $ 25,491,651 8,800,000 3,100,000 609,040 31,197,410 $ 53,298,231 43,706,450 570,000 13,915,830 $ 14,485,830 8,645,930 7,498,000 14,076,500 $ 2,280,000 51,018,231 $ 2,592,000 30,220,430 2,280,000 46,003,450 $ 48,283,450 15,106,170 13,375,026 13,153,730 5,797,280 12,225,990 4,509,240 6,082,490 17,276,766 3,245,581 5,430,830 24,711,420 4,393,560 37,638,680 Other Special Revenue Funds Public Safety Academy Tucson Convention Center Transportation Enterprise Area Management (TEAM) Parking Contributions $ 4,946,500 9,368,413 11,176,738 2,680,860 59,306,630 Total Housing Assistance Funds $ 29,632,950 45,543,000 2,592,000 570,000 9,632,549 8,129,360 14,054,200 12,241,900 Total Intergovernmental Funds $ 2,690,000 8,580,000 3,000,000 570,000 9,840,330 Total Library Fund $ $ 2,690,000 8,246,000 2,700,000 43,405,730 Library Fund Charges for Current Services Local Operating Assistance 42,044,411 42,468,000 550,000 2,525,000 $ 851,580 3,820,000 2,856,000 39,979,863 $ 883,580 3,351,000 3,061,481 47,689,540 878,950 3,501,500 3,526,000 3,510,000 Total Other Special Revenue Funds $ 7,527,580 $ 7,296,061 $ 11,416,450 Total Special Revenue Funds $ 232,063,620 $ 210,635,716 $ 243,937,150 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. C-17 SCHEDULE C TO RESOLUTION 20102 CITY OF TUCSON Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2005-06 ESTIMATED REVENUES 2004-05 SOURCE OF REVENUES DEBT SERVICE FUNDS Street and Highway Debt Service Highway User Revenue Funds ACTUAL REVENUES 2004-05* 16,548,380 ESTIMATED REVENUES 2005-06 7,732,000 8,042,000 Total Street and Highway Debt Service $ 16,548,380 $ 7,732,000 $ 8,042,000 Total Debt Service Funds $ 16,548,380 $ 7,732,000 $ 8,042,000 CAPITAL PROJECTS FUNDS See Schedule D $ $ $ $ $ $ Total Capital Projects Funds $ $ $ * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. C-18 SCHEDULE C TO RESOLUTION 20102 CITY OF TUCSON Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2005-06 ESTIMATED REVENUES 2004-05 SOURCE OF REVENUES ACTUAL REVENUES 2004-05* ESTIMATED REVENUES 2005-06 PERMANENT FUNDS None $ $ $ $ $ $ Total Permanent Funds $ $ $ ENTERPRISE FUNDS Environmental Services Fund Operating Revenue Non-Operating Revenue Miscellaneous Grants 34,235,000 329,600 1,510,000 Total Environmental Services Fund $ 36,074,600 Golf Course Fund Operating Revenue Non-Operating Revenue 34,689,000 1,279,600 410,000 $ 10,344,540 3,724,050 Total Golf Fund $ Water Utility Fund Operating Revenue Non-Operating Revenue Miscellaneous Grants 14,068,590 36,378,600 37,227,000 1,089,490 410,000 $ 8,954,600 2,536,200 $ 127,987,000 10,274,000 650,000 11,490,800 38,726,490 10,344,540 563,510 $ 125,168,000 8,947,000 650,000 10,908,050 128,765,000 9,770,000 400,000 Total Water Utility Fund $ 138,911,000 $ 134,765,000 $ 138,935,000 Total Enterprise Funds $ 189,054,190 $ 182,634,400 $ 188,569,540 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. C-19 SCHEDULE C TO RESOLUTION 20102 CITY OF TUCSON Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2005-06 ESTIMATED REVENUES 2004-05 SOURCE OF REVENUES ACTUAL REVENUES 2004-05* ESTIMATED REVENUES 2005-06 INTERNAL SERVICE FUNDS Not Applicable $ $ $ $ $ $ Total Internal Service Funds $ $ $ TOTAL ALL FUNDS $ 812,713,860 $ 775,273,086 $ 842,900,640 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. C-20 SCHEDULE D TO RESOLUTION 20102 CITY OF TUCSON Summary by Fund Type of Other Financing Sources/ and Interfund Transfers Fiscal Year 2005-06 OTHER FINANCING 2005-06 SOURCES FUND GENERAL FUND Certificates of Participation Business Privilege Tax Transfers from Fund Balance $ 19,335,200 $ INTERFUND TRANSFERS 2005-06 IN $ $ 55,905,910 7,607,700 Total General Fund $ SPECIAL REVENUE FUNDS $ Certificates of Participation Library Fund Public Safety Academy Fund Tucson Convention Center Fund Mass Transit Fund Transfers to Debt Service Funds Transfers from Fund Balance Total Special Revenue Funds $ 19,335,200 $ $ 15,068,400 $ $ 7,607,700 $ $ 8,000,000 5,045,200 6,797,740 36,062,970 9,161,110 $ $ 13,581,340 69,487,250 $ $ $ 9,161,110 $ Total Debt Service Funds $ $ $ 9,161,110 $ DEBT SERVICE FUNDS Transfer from Highway User Revenue Fund CAPITAL PROJECTS FUNDS General Obligation Bond Funds Street and Highway Revenue Bond Environmental Services Bond Funds Water Revenue Bond Funds 15,068,400 $ $ 25,009,700 2,727,200 7,994,000 39,203,000 $ $ $ Total Capital Projects Funds $ 74,933,900 $ $ $ $ $ $ $ Total Permanent Funds $ $ $ $ $ $ $ PERMANENT FUNDS None ENTERPRISE FUNDS Certificates of Participation Transfers to Fund Balance $ 4,277,250 9,161,110 2,720,350 Total Enterprise Funds $ $ $ $ $ $ $ $ Total Internal Service Funds $ $ $ $ $ $ INTERNAL SERVICE FUNDS Not Applicable 55,905,910 TOTAL ALL FUNDS $ 4,277,250 113,614,750 C-21 86,256,060 $ 2,720,350 67,787,370 SCHEDULE E TO RESOLUTION 20102 CITY OF TUCSON Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2005-06 FUND/DEPARTMENT GENERAL FUND Mayor and Council $ City Manager City Clerk City Attorney City Court Community Services Fire Neighborhood Resources Parks and Recreation Police Office of Equal Opportunity Programs and Independent Police Review Office of the Public Defender Development Services Urban Planning and Design Transportation Zoning Examiner Office of Economic Development Intergovernmental Relations Tucson Mexico Trade Office Budget and Research Finance Human Resources Information Technology General Services Procurement Non-Departmental Total General Fund $ ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2004-05 3,118,990 2,250,840 3,785,520 7,127,480 10,355,380 7,018,350 53,522,390 5,107,210 42,919,810 118,828,850 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2004-05 $ ACTUAL EXPENDITURES/ EXPENSES 2004-05* $ 650,090 2,712,910 9,618,730 3,823,580 28,514,680 179,310 1,286,430 555,260 844,280 2,064,920 9,130,520 2,692,100 13,450,060 18,707,230 3,391,470 31,488,520 383,144,910 3,077,390 2,139,840 2,952,860 6,929,010 10,108,680 7,018,350 53,958,039 2,880,805 40,979,365 118,069,948 BUDGETED EXPENDITURES/ EXPENSES 2005-06 $ 692,820 2,741,380 9,657,730 3,684,580 29,450,150 180,310 1,242,430 548,730 803,280 1,950,720 9,335,520 2,719,680 12,445,473 10,681,187 3,175,126 28,154,248 $ C-22 $ 365,577,651 3,264,070 2,281,310 4,921,830 7,511,890 9,974,690 7,061,800 59,359,610 3,487,970 44,427,450 134,192,390 740,020 2,813,750 11,013,910 4,459,240 6,569,200 192,820 1,169,480 565,860 886,920 2,183,580 10,844,310 2,854,660 25,672,350 10,769,300 3,545,090 21,800,390 $ 382,563,890 SCHEDULE E TO RESOLUTION 20102 CITY OF TUCSON Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2005-06 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2004-05 FUND/DEPARTMENT SPECIAL REVENUE FUNDS Highway User Revenue Fund Neighborhood Resources Urban Planning and Design Transportation Non-Departmental $ Local Transportation Assistance Fund Transportation 5,592,400 137,630 42,277,890 749,110 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2004-05 $ ACTUAL EXPENDITURES/ EXPENSES 2004-05* $ 2,219,242 137,630 39,356,101 677,110 BUDGETED EXPENDITURES/ EXPENSES 2005-06 $ 3,801,600 148,980 40,729,820 1,215,840 2,646,230 2,690,000 2,592,000 Mass Transit Fund Transportation 78,607,800 60,885,850 82,667,340 Library Fund Library 19,415,450 18,979,807 22,485,830 138,300 399,140 800,000 350,000 1,000,000 148,870 399,140 650,000 350,000 1,000,000 3,337,590 1,273,380 210,000 19,743,800 277,650 30,000 1,500,000 1,300,000 Intergovernmental Funds City Attorney City Court Community Services Fire Library Neighborhood Resources Parks and Recreation Police Urban Planning and Design Transportation Tucson Mexico Trade Office Information Technology General Services Non-Departmental 8,802,550 1,142,390 210,000 18,968,800 284,280 30,000 1,500,000 800,000 106,000 375,390 800,000 350,000 1,000,000 110,303 7,493,706 1,142,390 210,000 12,683,652 284,280 30,000 100,000 805,930 Housing Assistance Funds Community Services Non-Departmental 61,891,430 96,060 53,212,114 86,117 48,190,170 93,280 Community Development Block Grant Community Services Neighborhood Resources Office of Economic Development Non-Departmental 12,125,340 2,775,000 167,900 37,930 12,173,841 1,071,125 110,900 19,160 9,478,030 3,475,000 171,470 29,230 C-23 SCHEDULE E TO RESOLUTION 20102 CITY OF TUCSON Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2005-06 FUND/DEPARTMENT Other Federal Grant Funds City Attorney Community Services Fire Library Parks and Recreation Police Urban Planning and Design Transportation Office of Economic Development Tucson Mexico Trade Office General Services Non-Departmental ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2004-05 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2004-05 378,130 1,179,470 BUDGETED EXPENDITURES/ EXPENSES 2005-06 117,660 1,179,470 946,211 98,748 127,120 6,082,490 433,000 17,276,766 424,700 535,840 98,380 143,372 200,000 720,930 5,430,830 390,000 24,711,420 342,050 381,660 1,500,000 2,833,410 2,684,820 251,310 3,055,020 2,684,820 283,310 2,951,860 2,693,610 278,680 10,279,730 10,124,730 10,789,740 Transportation Enterprise Area Management Fund City Court 105,960 Transportation 3,098,060 Non-Departmental 10,925,460 91,855 2,942,179 8,308,771 118,230 3,051,780 4,536,560 Fleet Services Fund Fire General Services 1,700,000 9,719,120 1,755,000 9,811,400 Public Safety Academy Fund Fire Police Non-Departmental Tucson Convention Center Fund Tucson Convention Center 708,990 5,797,280 130,000 12,225,990 342,050 270,600 1,500,000 ACTUAL EXPENDITURES/ EXPENSES 2004-05* 1,700,000 9,719,120 Contributions Parks and Recreation Total Special Revenue Funds $ 3,510,000 325,076,010 $ C-24 $ 282,625,290 $ 319,331,690 SCHEDULE E TO RESOLUTION 20102 CITY OF TUCSON Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2005-06 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2004-05 FUND/DEPARTMENT EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2004-05 ACTUAL EXPENDITURES/ EXPENSES 2004-05* BUDGETED EXPENDITURES/ EXPENSES 2005-06 DEBT SERVICE FUNDS General Obligation Debt Service Non-Departmental $ Street and Highway Debt Service Non-Departmental 21,336,520 Total Debt Service Funds $ 37,884,900 $ $ 36,949,080 $ 41,438,560 7,414,000 1,978,600 14,889,300 6,688,200 11,038,000 16,996,800 1,028,000 $ $ 7,414,000 1,978,600 14,889,300 6,688,200 11,038,000 16,996,800 1,028,000 943,318 $ 2,681,400 439,000 4,811,400 211,700 CAPITAL PROJECTS FUNDS General Obligation Bonds Fire Library Parks and Recreation Police Environmental Services Transportation Tucson Convention Center Non-Departmental $ $ 16,548,380 $ Street and Highway Revenue Bonds Transportation 20,739,430 $ 16,209,650 4,773,300 17,203,110 15,938,200 928,000 10,064,083 2,727,200 Environmental Services Revenue Bonds Environmental Services Water Revenue Bonds Tucson Water 7,994,000 28,145,000 Total Capital Projects Funds $ $ $ $ $ Total Permanent Funds $ $ $ $ $ $ $ 41,872,320 137,329,280 Total Enterprise Funds $ INTERNAL SERVICE FUNDS Not Applicable 14,068,590 193,270,190 $ Total Internal Service Funds $ TOTAL ALL FUNDS $ 1,032,327,210 100,409,652 39,203,000 $ ENTERPRISE FUNDS Tucson City Golf Utility Department Environmental Services Tucson Water 92,951,200 29,369,351 $ PERMANENT FUNDS None 24,235,450 11,490,800 $ $ 43,388,440 136,274,070 $ $ $ $ $ $ $ $ 191,153,310 74,933,900 13,088,050 37,860,090 139,178,300 $ 190,126,440 $ 976,714,983 $ $ 1,008,394,480 * Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. C-25 C-26 D-1 NUMBER OF CITY EMPLOYEES PER 1,000 POPULATION 11.4 0.5 2.0 2.8 11.6 0.5 2.0 11.6 0.5 2.0 General Fund Positions Commissioned Public Safety Personnel* Enterprise Positions** Grant-Funded Positions 11.6 0.5 1.9 11.9 11.6 0.4 0.4 2.0 2.0 11.4 0.5 11.0 0.5 1.9 1.9 2.8 2.9 2.9 3.0 6.1 6.3 6.2 6.3 6.5 1997 1998 1999 2000 2001 3.0 3.0 2.9 11.0 11.0 0.5 0.4 1.9 1.8 2.9 3.0 6.2 6.0 5.7 5.9 5.9 2002 2003 2004 2005 2006 * Includes Fire and Police personnel. ** Includes Environmental Services, Golf, and Tucson Water. Beginning in Fiscal Year 2005 Environmental Services became an enterprise department – prior year data has been revised for consistency. D-2 SELECTED ECONOMIC INDICATORS Tucson Metro Area Description Personal Income (Billions of Dollars) Percentage Change from Prior Year 2004 Calendar Year 2005 2006 2007 $ 24.484 6.1 $ 26.312 7.5 $ 28.474 8.2 $ 30.409 6.8 Retail Sales-Excluding Food (Billions of Dollars)* Percentage Change from Prior Year $ 7.812 $ 8.289 $ 8.846 $ 9.285 6.9 6.1 6.7 4.9 Residential Building Permits (Units) Percentage Change from Prior Year 10,410 25.3 10,573 1.6 10,063 (4.8) 9,052 (10.1) Population (000)** Percentage Change from Prior Year 931.2 2.2 957.0 2.8 981.9 2.6 1,004.4 2.3 Wage and Salary Employment (000) Percentage Change from Prior Year 359.1 3.1 374.5 4.3 387.2 3.4 395.8 2.2 .386 .391 .394 .394 Real Per Capita Disposable Income (2002 Dollars) Percentage Change from Prior Year $ 12,342 $ 12,553 $ 12,921 $ 13,176 1.6 1.7 2.9 2.0 Annual Earnings Per Worker Percentage Change from Prior Year $ 36,319 3.0 $ 37,699 3.8 $ 39,409 4.5 $ 41,144 4.4 Consumer Price Index (CPI) Western Region (Percent Change) 2.3 2.5 2.1 2.1 Personal Consumption Deflator (Percent Change) 2.2 2.2 2.1 2.1 Gross Domestic Product (GDP) Implicit Price Deflator (Percent Change) 2.2 2.4 2.2 2.2 384.5 0.0 397.2 3.3 413.5 4.1 424.1 2.5 Employment/Population Ratio Gasoline Sales (Millions of Gallons) Percentage Change from Prior Year Source: Economic Outlook, May 2005, Economics and Business Research Program, Eller College of Business and Public Administration, University of Arizona. *Calculated by combining retail sales (less food) with restaurant and bar sales. **Population projections were made prior to Census 2000 using different base data than the population data on page D-6. D-3 COMMUNITY PROFILE TUCSON - Combining a Rich History with a Bright Future Permanent settlements were built in Tucson nearly 2,000 years ago by people of the Hohokam culture. A Long History of Many Cultures The Hohokam culture thrived in this region until it suddenly declined during the fourteenth century. Native American cultures believed to be descendants of the Hohokam were joined by new arrivals from Spain, Mexico, and the eastern United States. Mission San Xavier del Bac, the “White Dove of the Desert,” was established by the Franciscan Order in the late 1600s and still serves the Tohono O’Odham Native American community. The mission was recently restored, with the cleaning of the interior frescoes that were painted by European artists who trained local Tohono O’Odham tribal members in the craft. More than 300 years after Tucson’s founding as a mission site, the “Old Pueblo” continues to grow and celebrate its diverse cultural influences. An Interesting Place to Live Located in the Sonoran Desert, Tucson is surrounded by mountain ranges and lush desert valleys. Tucsonans enjoy over 300 days of sunshine each year and an average temperature of 82 degrees. In Money Magazine’s 1998 ranking of 300 cities, Tucson was selected as the fifth “Best Place to Live” for medium-size cities in the West. Prevention Magazine, April 2004 issue, in conjunction with the American Podiatric Medical Association (APMA), ranked Tucson 9th for cities that are best suited for fitness and walking for 2003. Any place can be a good place to walk, but the APMA and Prevention found the 12 Best Walking Cities in the U.S. to be true urban oases, proving how easy and enjoyable walking can be. Tucson was ranked 8th in the "Top 25 Cities for Doing Business in America" (medium sized cities) in Inc. Magazine's March 2004 issue. According to Inc., cities like Tucson were selected because they have continued to grow in a tough economy and create good opportunities for entrepreneurs. Leisure activities are abundant. The Tucson area has more than 27,000 acres of park lands. In the nearby mountains and deserts, there are many places to camp, hike, and fish; the southern Arizona region is ranked one of the five best areas in the United States for bird watching. Golfing is available year-round on over 30 public and private golf courses, and the Tucson area annually hosts Professional Golfers’ Association (PGA) and Ladies Professional Golf Association (LPGA) golf tournaments. In the winter, skiing is only a one-hour drive from Tucson. The University of Arizona provides a full range of intercollegiate athletic events. The women’s softball team has won several National Collegiate Athletic Association (NCAA) championships. The men’s basketball team won the NCAA championship in 1997 and were runners up in the championship in 2001. Tucson D-4 is the spring training home for three major league baseball teams: Arizona Diamondbacks, Chicago White Sox, and Colorado Rockies. The Tucson Sidewinders, a minor league (AAA) affiliate of the Arizona Diamondbacks, offers a full schedule of summer baseball. In addition, Tucson is the new home of the Arizona Heat of the National Pro Fast Pitch softball league. Tucson provides opportunities to stimulate the mind as well as the body. The University of Arizona offers undergraduate, graduate, and doctoral degree programs and has an extension program open to the public. Pima Community College is the fifth largest multi-campus community college in the nation and offers courses in 64 program areas. There are over 215 arts groups and over 35 art galleries in Tucson. Tucson’s downtown arts district hosts over 800 arts and cultural events annually, with many other events and fairs available throughout Tucson. Many museums and other attractions are located in the Tucson area, including the Tucson Museum of Art, the Arizona Historical Society Museum, the Arizona State Museum, the Center for Creative Photography, the Tucson Children’s Museum, the Fort Lowell Museum, the Pima Air and Space Museum, Biosphere 2, the Tucson Botanical Gardens, the Reid Park Zoo, the Flandrau Planetarium, the Kitt Peak National Observatory, the San Xavier del Bac Mission, and the Arizona-Sonora Desert Museum (rated as one of America’s top ten zoos by Parade Magazine). We Mean Business Tucson’s business environment is as agreeable as its natural climate. Tourism, which accounted for over $1.8 billion in the past year, will continue to be a major contributor to the region’s economic base. Not just the service sector is booming: manufacturing employment in metropolitan Tucson has more than doubled in the past ten years. Tucson is home to a premier research institution–the University of Arizona–and is recognized as one of the megatrend cities for the 21st century with its emerging presence as a center for optics, astronomy, and health services. Balancing Growth and Preservation The City of Tucson, incorporated in 1877, is the second largest city in the State of Arizona. Tucson is forecast to have a population of over 530,000 in 2005. As with many communities in the West, growth has occurred at the edges of the urban area. City leaders are committed to ensuring that growth will complement existing neighborhoods. To ensure that areas in the central city remain attractive places to live and work, the City of Tucson works with neighborhoods through the Department of Neighborhood Resources and has initiated a Back to Basics program that directs financial resources to targeted areas. The aim of Back to Basics is to maintain and improve neighborhoods by collaborating with residents, businesses, and schools. Neighborhood residents are able to choose from a menu of options to determine for themselves how the financial resources are applied. Because “downtown is everyone’s neighborhood,” a special program has also been established to enhance downtown as a business, cultural, and residential area. D-5 COMMUNITY PROFILE Key Statistics City Government By charter from the State of Arizona, the City of Tucson is governed by a Mayor and Council. Council member candidates are nominated in primary elections in each of the six wards, but are elected in citywide elections. The Mayor is nominated and elected citywide. The Mayor and Council set policy and appoint a city manager to provide the general supervision and direction for city government operations. Tucson is the county seat for Pima County. Pima County is the second largest county in population in Arizona. Demographics Tucson is growing: 45th largest city in 1980, 34th largest in 1990, and the 30th largest in 2000. Population 1990 2000 2003 2004 2005* 2006* Land Area 1990 1998 1999 2000 2001 2002 2003 2004 2005* Tucson 405,390 486,699 514,725 522,850 530,588 543,902 158.30 194.15 194.36 196.32 223.36 226.10 226.13 231.70 226.55 Pima County 666,880 843,746 910,950 932,500 955,800 976,000 square miles square miles square miles square miles square miles square miles square miles square miles square miles Racial/Ethnic Composition, 2000 White, Non-Hispanic 54.2% Hispanic 35.7% Black 4.1% Native American 1.6% Asian/Pacific Islander 2.5% Other 1.9% Land Use, 1990 Undeveloped Residential Commercial Government Industrial Open Space Agricultural Other Median Age 1970 1980 1990 2000 38.72% 30.70% 5.83% 4.48% 4.11% 4.02% 1.04% 11.10% 25.7 years 28.3 years 30.8 years 32.1 years *Projected figures from the City of Tucson Department of Urban Planning and Design assuming normal annexation rates. D-6 Economy For the next five years, Tucson is projected to be the 13th most rapidly growing metropolitan area in the United States for employment. Major Employers - Southern Arizona, 2004* (Based on number of full-time equivalent positions) U.S. Army Fort Huachuca University of Arizona Raytheon Systems Company State of Arizona Davis-Monthan Air Force Base Tucson Unified School District Pima County City of Tucson Wal-Mart Phelps Dodge Mining Company Carondelet Health Network Tohono O’Odham Nation Tucson Medical Center HealthCare University Medical Center Pascua Yaqui Tribe U.S. Border Patrol Pima Community College Total Employment (Pima County) 1990 2000 2001 2002 2003 2004 321,700 444,400 443,900 448,900 450,800 457,800 12,250 10,348 10,300 9,750 8,727 7,684 6,767 5,897** 4,595 4,500 3.746 3,665 3,135 2,918 2,500 2,300 2,226 Unemployment Rates (Pima County) 1990 2000 2001 2002 2003 2004 4.6% 2.8% 3.5% 4.6% 4.2% 3.7% Commercial 236 140 191 208 268 Industrial 17 8 17 7 16 Annual Rate of Earnings (Per worker in current dollars) 1990 $21,598 2000 $31,475 2001 $32,272 2002 $33,160 2003 $34,079 2004 $35,250 Building Permits Issued Residential 2000 2,689 2001 2,712 2002 2,719 2003 2,497 2004 2,430 *Source: “Star Two Hundred,” The Arizona Daily Star, March 13, 2005. **Reflects Fiscal Year 2005 Adopted Budget for the City of Tucson. City of Tucson’s Fiscal Year 2006 Adopted Budget includes 6,041.51 full-time equivalent positions. D-7 City Services The City of Tucson is committed to providing appropriate and equitable levels of service to all of its citizens. Some examples are listed below. Neighborhood Resources Parks (District, Neighborhood, School, Regional, and Open Space) Recreation Centers Neighborhood/Senior Centers After-School Program Sites Senior Citizen Program Sites Municipal Swimming Pools Municipal Golf Courses Tennis Court Sites Playfields Libraries Bookmobiles Environmental Services Tons of Waste Collected Tons of Material Recycled Number of Christmas Trees Mulched or Composted Transportation Number of Street Miles Maintained Miles of Bikeways Miles of Drainageway Number of Street Lights Annual Miles of Fixed-Route Bus Service Annual Miles of Paratransit Service Number of Traffic Signals Tucson Water Miles of Water Lines Number of Water Connections Millions of gallons of potable water storage capacity Billions of gallons of potable water delivered annually Public Safety Number of Commissioned Law Enforcement Personnel Average Police Emergency Response Time (in minutes) Average Police Response Time for All Emergency, Critical, Urgent, and General Response Calls (in minutes) Number of Commissioned Fire Personnel Annual Number of Structural Fire Runs Annual Number of Paramedic Runs (Advanced Life Support only) Annual Number of Other Emergency Responses Number of Paramedic Personnel D-8 136 12 6 54 13 27 5 17 250 26 2 547,270 46,489 35,697 1,736 445 1,154 15,924 7,982,000 3,615,844 464 4,360 215,000 287 36 1,028 4.8 36.2 590 388 16,913 52,288 133 BENCHMARK PROJECT In recent years, the City of Tucson has used performance goals and project management to increase its accountability and assess effectiveness. Another way to measure municipal performance is to benchmark with other cities. This is commonly done in the private sector, particularly in health care and education, to compare effectiveness of organizations in the same business. For example, universities are often ranked on the quality of their freshman classes and how well students do as undergraduates. Measures such as Scholastic Aptitude Test/American College Test scores, faculty to student ratios, educational expenses per student, graduation rates, and alumni giving rates are widely used. Included in this section are benchmarks comparing the City of Tucson’s metropolitan area with ten other metropolitan areas (see map on page D-10). These metropolitan areas, some larger and some smaller than Tucson, were chosen because of their western geography and governance, their ethnic distribution and economic variety, and their cultural and historical traditions—a combination that allows the comparison of similar and dissimilar urban elements. The other metropolitan areas used are Albuquerque, Austin, Colorado Springs, Denver, El Paso, Las Vegas, Phoenix-Mesa, Salt Lake City, San Antonio, and San Diego. The Tucson metro area was compared with these other areas to determine how it compares economically and demographically. The benchmarks included in this section, comprised of ten economic benchmarks and six demographic benchmarks, are listed below and displayed in a series of graphs on the pages that follow. Economic Benchmarks • Metro Area 2002 Average Annual Wage, page D-11 • Metro Area 2002 Wage and Salary Employment, Number of Jobs Per 1,000 Population, page D-11 • Metro Area 2000 Percent of Population Below Poverty Level, page D-12 • Metro Area 2003 Cost of Living Index (adjusted for Tucson’s cost of living), page D-12 • Metro Area 2003 Cost of Groceries Index (adjusted for Tucson’s cost of groceries), page D-13 • Metro Area 2003 Cost of Housing Index (adjusted for Tucson’s cost of housing), page D-13 • Metro Area 2003 Cost of Transportation Index (adjusted for Tucson’s cost of transportation), page D-14 • Metro Area 2003 Cost of Health Care Index (adjusted for Tucson’s cost of health care), page D-14 • Percentage of Households That Use a Personal Computer, page D-15 • Metro Area 2000 Mean Travel Time to Work, In Minutes, page D-15 Demographic Benchmarks • Percent of 2000 Metro Population Less Than 18 Years Old, page D-16 • Percent of 2000 Metro Population Greater Than 64 Years Old, page D-16 • 2000 Average Number of Persons Per Household, page D-17 • 2000 Infant Death Rate Per 1,000 Population, page D-17 • 2000 High School Diploma, Percent of Population 25 Years Old and Older, page D-18 • 2000 Bachelor Degree, Percent of Population 25 Years Old and Older, page D-18 D-9 Benchmark Metropolitan Cities and 2002 Populations • Salt Lake City 1,372,699 Denver 2,187,464 • • Colorado Springs Las Vegas 1,722,256 • 543,818 Albuquerque 737,324 • San Diego 2,906,660 • Phoenix 3,500,151 • Tucson 890,545  El Paso 697,562 • ! Austin 1,349,291 • San Antonio 1,660,205 • D-10 ECONOMIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson METRO AREA 2002 AVERAGE ANNUAL WAGE Denver $42,133 Austin $39,540 San Diego $39,305 Phoenix $36,045 Colorado Springs $34,681 Las Vegas $33,280 Salt Lake City $32,600 Albuquerque $32,475 ***TUCSON*** $31,673 San Antonio $31,336 $26,604 El Paso $0 $10,000 $20,000 $30,000 $40,000 $50,000 Source: Bureau of Labor Statistics, 2002 METRO AREA 2002 WAGE AND SALARY EMPLOYMENT Number of Jobs Per 1,000 Population 570 Denver Albuquerque 519 Colorado Springs 518 512 Austin San Antonio 499 San Diego 498 472 Phoenix Las Vegas 445 Salt Lake City 429 *** TUCSON *** 406 El Paso 401 300 350 400 450 500 Source: U. S. Bureau of Commerce, Bureau of Economic Analysis, March 2004 D-11 550 600 ECONOMIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson METRO AREA 2000 PERCENT OF POPULATION BELOW POVERTY LEVEL Salt Lake City 8.9% Denver 9.0% 9.5% Colorado Springs Austin 11.1% Las Vegas 11.8% Phoenix 13.1% San Diego 14.2% Albuquerque 14.7% *** TUCSON *** 16.2% San Antonio 17.9% El Paso 27.8% 0% 5% 10% 15% 20% 25% 30% Source: City County Data Book, 2001 METRO AREA 2003 COST OF LIVING INDEX Tucson = $100 San Antonio $88.8 Austin $98.0 El Paso $98.3 *** TUCSON *** $100.0 Phoenix $102.4 Colorado Springs $104.3 Salt Lake City $108.2 Denver $110.9 Las Vegas $111.3 Albuquerque $112.0 San Diego $145.4 $0 $20 $40 $60 $80 $100 $120 Source: American Chamber of Commerce Research Association, 3rd Quarter 2000 Source: American Chamber of Commerce Resource Association, 3rd Quarter 2003 D-12 $140 $160 ECONOMIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson METRO AREA 2003 COST OF GROCERIES INDEX Tucson = $100 San Antonio $67.5 Austin $69.6 Salt Lake City $86.6 Albuquerque $89.0 El Paso $89.6 Phoenix $89.6 Las Vegas $96.7 Colorado Springs $96.9 Denver $99.3 *** TUCSON *** $100.0 San Diego $106.9 $0 Source: American $20 Chamber of$40 $60 Association, 3rd $80Quarter 2000 $100 Commerce Research $120 Source: American Chamber of Commerce Resource Association, 3rd Quarter 2003 METRO AREA 2003 COST OF HOUSING INDEX Tucson = $100 San Antonio *** TUCSON *** El Paso Phoenix Austin $97.3 $100.0 $104.4 $109.1 $115.1 Colorado Springs $123.7 Las Vegas $124.0 Salt Lake City $130.0 Denver $138.1 Albuquerque $141.4 $257.5 San Diego $0Source: American $50 Chamber of Commerce $100 $150 Research Association, 3rd$200 Quarter 2000 Source: American Chamber of Commerce Research Association, 3rd Quarter 2003 D-13 $250 $300 ECONOMIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson METRO AREA 2003 COST OF TRANSPORTATION INDEX Tucson = $100 San Antonio $83.8 El Paso $88.2 Austin $91.9 Colorado Springs $93.7 $96.3 Denver Salt Lake City $97.9 Albuquerque $98.0 Phoenix $99.8 *** TUCSON *** $100.0 Las Vegas $101.9 San Diego $115.6 $0 $20 $40 $60 $80 $100 Source: American Chamber of Commerce Research Association, 3rd Quarter 2000 Source: American Chamber of Commerce Research Association, 3rd Quarter 2003 $120 $140 METRO AREA 2003 COST OF HEALTH CARE INDEX Tucson = $100 $90.2 San Antonio *** TUCSON *** $100.0 Salt Lake City $101.8 Austin $106.7 Albuquerque $116.9 $118.9 Phoenix $122.4 Colorado Springs El Paso $124.2 Denver $126.8 $134.2 San Diego $141.1 Las Vegas $0 $20 $40 $60 $80 $100 $120 Source: American Chamber of Commerce Research Association, 3rd Quarter 2003 D-14 $140 $160 ECONOMIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson PERCENTAGE OF HOUSEHOLDS THAT USE A PERSONAL COMPUTER 66.1% Denver 65.5% San Diego 64.8% Austin Salt Lake City 63.3% Colorado Springs 62.9% Las Vegas 61.9% Phoenix 61.5% *** TUCSON *** 61.1% 58.2% Albuquerque 57.2% San Antonio 52.9% El Paso 0% 10% 20% 30% Source: The Lifestyle Market Analyst, 1999 Source: The Life Style Market Analyst, 2003 40% 50% 60% 70% METRO AREA 2000 MEAN TRAVEL TIME TO WORK In Minutes Albuquerque 19.5 Colorado Springs 19.8 El Paso 19.8 Austin 20.1 *** TUCSON *** 20.4 Salt Lake City 21.2 San Antonio 21.5 San Diego 22.6 Las Vegas 24.1 Phoenix 24.6 Denver 25.2 19 20 21 22 Source: U. S. Census 2000 D-15 23 24 25 26 DEMOGRAPHIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson PERCENT OF 2000 METRO POPULATION LESS THAN 18 YEARS OLD *** TUCSON *** 24.6% Austin 25.0% Las Vegas 25.3% Denver 25.8% San Diego 25.8% Albuquerque 26.3% Phoenix 26.8% Colorado Springs 27.6% San Antonio 28.4% El Paso 28.9% 31.4% Salt Lake City 0% 5% 10% 15% 20% 25% 30% 35% Source: City County Data Book, 2002 PERCENT OF 2000 METRO POPULATION GREATER THAN 64 YEARS OLD Austin 7.3% Salt Lake City 8.3% Colorado Springs 8.7% Denver 9.0% El Paso 9.7% San Antonio 10.7% San Diego 11.2% Albuquerque 11.3% 11.8% Las Vegas Phoenix 12.0% 14.2% *** TUCSON *** 0% 2% 4% 6% 8% Source: City County Data Book, 2002 D-16 10% 12% 14% 16% DEMOGRAPHIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson 2000 AVERAGE NUMBER OF PERSONS PER HOUSEHOLD 2.27 Denver *** TUCSON *** 2.40 Austin 2.44 Colorado Springs 2.50 2.54 Albuquerque Mesa 2.55 San Diego 2.63 Las Vegas 2.64 2.78 San Antonio Phoenix 2.81 Salt Lake City 3.06 El Paso 3.12 2.00 2.30 Source: U. S. Census, 2000 2.60 2.90 3.20 2000 INFANT DEATH RATE PER 1,000 POPULATION 5.1 El Paso 5.4 San Diego 5.7 Austin Salt Lake City 6.1 6.2 Albuquerque *** TUCSON *** 6.4 6.6 Denver Las Vegas 6.7 San Antonio 7.3 Phoenix 7.5 7.6 Colorado Springs 0 1 2 3 4 Source: City County Data Book, 2001 D-17 5 6 7 8 DEMOGRAPHIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson 2000 HIGH SCHOOL DIPLOMA Percent of Population 25 Years Old and Older Colorado Springs 92.5% Salt Lake City 89.7% Albuquerque 87.3% Austin 85.2% Mesa 82.8% *** TUCSON *** 82.0% Denver 80.9% Las Vegas 80.3% San Diego 80.3% Phoenix 78.0% San Antonio 73.8% El Paso 70.1% 65% 70% Source: U. S. Census, 2000 75% 80% 85% 90% 95% 2000 BACHELOR DEGREE Percent of Population 25 Years Old and Older Austin 42.5% Denver 35.0% Colorado Springs 34.7% San Diego 34.6% Albuquerque 28.7% 27.2% Salt Lake City *** TUCSON *** 23.0% Phoenix 21.7% San Antonio 21.2% Mesa 19.9% El Paso 17.5% Las Vegas 16.7% 15% 20% 25% 30% Source: U. S. Census, 2000 D-18 35% 40% 45% CITY OF TUCSON Components of the Total Financial Plan Fiscal Year 2006 Total Budget $ 1,008,394,480 Operating Budget $ 796,454,780 Capital Budget $ 211,939,700 Mayor and Council $ 3,264,070 Development Services $ 10,513,910 Budget and Research $ 2,183,580 Fire $ 3,601,400 City Manager $ 2,281,310 Transportation $ 100,679,860 Finance $ 10,844,310 Library $ 439,000 City Clerk $ 4,921,830 Urban Planning and Design $ 5,208,220 General Services $ 23,580,700 Neighborhood Resources $ 8,175,000 City Attorney $ 8,085,460 Utility ServicesEnvironmental Services $ 37,110,090 Human Resources $ 2,854,660 Parks and Recreation $ 10,154,400 City Court $ 10,492,060 Utility ServicesTucson Water $ 118,934,300 Information Technology $ 14,530,050 Tucson City Golf $ 2,225,000 Community Services $ 65,915,840 Zoning Examiner $ 192,820 Procurement $ 3,545,090 Police $ 3,655,700 Fire $ 63,594,850 Tucson Convention Center $ 10,789,740 Outside Agencies $ 3,182,950 Development Services $ 500,000 Library $ 23,485,830 Economic Development $ 1,683,000 General Expense $ 7,153,390 Transportation $ 98,460,900 Neighborhood Resources $ 2,589,570 Intergovernmental Relations $ 565,860 Debt Service $ 55,919,200 Utility ServicesEnvironmental Services $ 8,744,000 Parks and Recreation $ 46,242,970 Tucson-Mexico Trade Office $ 1,546,230 Utility ServicesTucson Water $ 59,447,000 Tucson City Golf $ 10,863,050 Tucson Convention Center $ 928,000 Police $ 140,146,210 Information Technology $ 11,172,300 EOP and IPR* $ 740,020 General Expense $ 4,437,000 Public Defender $ 2,813,750 *Equal Opportunity Programs and Independent Police Review E-1 REVENUES FISCAL YEAR 2006 ADOPTED Other Federal Revenues 8% Capital Projects Funds 7% Business Privilege Tax 18% Enterprise Funds 19% Miscellaneous 17% Charges for Current Services 4% Public Housing 5% Grants and Shared Taxes 17% State Revenue Sharing 5% Annual Budget Total Funds Available Primary Property Tax Secondary Property Tax Business Privilege Tax Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Public Housing Other Federal Revenues Enterprise Funds Certificates of Participation Capital Projects Funds Brought Forward/Fund Balance Total Funds Available Miscellaneous: Certificates of Participation 3% Other Local Taxes 3% Brought Forward/Fund Balance 2% Licenses and Permits 2% Non-Revenue Receipts 2% Secondary Property Tax 2% Fines, Forfeitures, and Penalties 1% Primary Property Taxes 1% Use of Money and Property 1% $ Percent of Total 9,174,950 24,235,450 184,540,000 25,950,000 21,066,700 13,375,330 5,036,990 169,158,120 50,930,000 40,397,390 16,706,170 48,283,450 78,886,950 190,126,440 34,403,600 74,933,900 21,189,040 1% 2% 18% 3% 2% 1% 1% 17% 5% 4% 2% 5% 8% 19% 3% 7% 2% $ 1,008,394,480 100% E-2 EXPENDITURES FISCAL YEAR 2006 ADOPTED Environment and Development 44% Strategic Initiatives 1% Support Services 7% Neighborhood Services 39% Non-Departmental 7% Elected and Official Non-Departmental: 2% Outside Agencies <1% General Expense 1% Debt Service 6% Annual Budget Total Funds Available Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental Outside Agencies General Expense Debt Service Total Funds Available $ Percent of Total 18,552,670 395,134,650 439,791,100 15,512,830 68,710,690 2% 39% 44% 1% 7% 3,182,950 11,590,390 55,919,200 <1% 1% 6% $ 1,008,394,480 100% E-3 SUMMARY OF EXPENDITURES BY DEPARTMENT Actual FY 2004 Elected and Official Mayor and Council City Manager City Clerk City Attorney Sub-Total $ 2,632,844 1,982,542 4,211,349 6,892,803 15,719,538 Environment and Development Development Services Transportation Urban Planning and Design Utility Services Environmental Services Tucson Water Zoning Examiner Sub-Total Strategic Initiatives Tucson Convention Center Office of Economic Development Intergovernmental Relations Tucson-Mexico Trade Office Sub-Total $ 3,118,990 2,250,840 3,785,520 7,643,910 Estimated FY 2005 $ 3,077,390 2,139,840 2,952,860 7,152,670 Approved FY 2006 $ 3,311,160 2,305,900 4,952,160 8,106,870 Adopted FY 2006 $ 3,264,070 2,281,310 4,921,830 8,085,460 16,799,260 15,322,760 18,676,090 18,552,670 10,860,480 83,014,590 65,819,800 22,394,050 13,474,610 67,320,650 14,068,590 135,141,540 650,090 10,575,925 74,383,775 65,709,794 22,943,986 6,281,475 62,423,266 10,880,800 134,670,411 692,820 10,319,980 78,401,770 62,604,510 23,635,080 5,547,230 53,076,790 10,987,510 139,038,440 686,010 10,492,060 65,915,840 67,196,250 23,924,830 10,764,570 56,397,370 13,088,050 143,801,910 740,020 2,712,910 2,741,380 2,881,300 2,813,750 321,331,286 415,457,310 391,303,632 387,178,620 395,134,650 8,172,220 110,746,009 3,660,725 9,618,730 208,109,550 4,301,210 9,657,730 194,504,343 4,465,210 10,496,460 144,234,370 4,713,040 11,013,910 199,140,760 5,208,220 29,221,206 150,567,217 165,309 52,910,320 165,474,280 179,310 56,001,971 165,643,421 180,310 41,545,470 170,825,050 191,750 45,854,090 178,381,300 192,820 302,532,686 440,593,400 430,452,985 372,006,140 439,791,100 10,757,451 1,293,368 551,775 587,843 11,307,730 1,796,380 555,260 1,399,160 10,224,730 1,353,330 548,730 1,230,932 10,530,620 1,850,470 567,480 1,433,020 11,717,740 1,683,000 565,860 1,546,230 13,190,437 15,058,530 13,357,722 14,381,590 15,512,830 Neighborhood Services City Court 9,045,520 Community Services 59,678,416 Fire 50,602,946 Library 20,444,474 Neighborhood Resources 7,316,769 Parks and Recreation 47,136,043 Tucson City Golf 9,939,016 Police 114,099,817 Office of Equal Opportunity Programs 625,448 and Independent Police Review Office of the Public Defender 2,442,837 Sub-Total Adopted FY 2005 E-4 Summary of Expenditures by Department (Continued) Actual FY 2004 Support Services Budget and Research Finance General Services Human Resources Information Technology Procurement Sub-Total Non-Departmental Outside Agencies General Expense Debt Service Sub-Total Total All Departments $ 1,790,659 7,951,956 16,463,775 2,561,643 10,404,844 2,991,163 Adopted FY 2005 $ 2,064,920 9,130,520 36,302,650 2,692,100 13,480,060 3,391,470 Estimated FY 2005 $ 1,950,720 9,335,520 20,727,639 2,719,680 17,087,814 3,175,126 Approved FY 2006 $ 2,115,750 10,910,640 26,987,740 2,816,080 13,965,420 3,464,530 Adopted FY 2006 $ 2,183,580 10,844,310 23,580,700 2,854,660 25,702,350 3,545,090 42,164,040 67,061,720 54,996,499 60,260,160 68,710,690 7,545,315 7,622,309 42,429,207 3,723,490 25,390,850 48,242,650 3,723,490 21,174,308 45,773,587 3,723,490 4,888,930 57,436,340 3,182,950 11,590,390 55,919,200 57,596,831 77,356,990 70,671,385 66,048,760 70,692,540 $ 752,534,818 $ 1,032,327,210 $ 976,104,983 $ 918,551,360 $ 1,008,394,480 SUMMARY BY CHARACTER OF EXPENDITURES Actual FY 2004 Personal Services Services Commodities Equipment Debt Service Other* Operating Total Capital Improvements Total All Expenditures Adopted FY 2005 Estimated FY 2005 Approved FY 2006 358,272,410 233,769,710 64,480,230 22,208,600 81,428,470 23,505,490 $ 354,956,236 211,253,980 63,977,959 25,245,424 78,176,637 27,731,420 $ 387,497,580 210,355,790 63,081,610 21,798,430 92,584,970 20,122,580 641,482,274 111,052,544 783,664,910 248,662,300 761,341,656 214,763,327 795,440,960 123,110,400 796,454,780 211,939,700 $ 752,534,818 $ 1,032,327,210 $ 976,104,983 $ 918,551,360 $ 1,008,394,480 $ 328,235,103 $ 198,182,346 56,268,147 8,168,435 71,069,229 (20,440,986) * Other includes Inter-activity Transfers that were shown separately in previous budgets. E-5 Adopted FY 2006 $ 391,548,490 215,690,080 65,943,320 24,726,960 92,084,520 6,461,410 REVENUES AND EXPENDITURES COMPARISONS Actual FY 2004 CLASSIFICATION FUNDS AVAILABLE Primary Property Tax Secondary Property Tax Business Privilege Tax Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Public Housing Other Federal Revenues Enterprise Funds Less General Fund Contribution Certificates of Participation Capital Projects Funds Brought Forward/Fund Balance TOTAL FUNDS AVAILABLE EXPENDITURES Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental TOTAL EXPENDITURES $ $ $ $ Adopted FY 2005 Estimated FY 2005 4,091,637 $ 8,812,120 22,031,525 21,336,520 174,345,408 176,600,000 24,063,634 24,930,000 18,231,570 18,143,690 9,679,264 12,948,160 3,091,657 3,559,230 131,587,231 160,970,510 44,022,893 44,853,450 38,745,522 39,591,250 5,166,531 9,977,480 47,312,982 61,987,490 30,539,148 70,098,410 165,507,226 193,270,190 (11,968,825) -0-070,199,700 50,231,743 92,951,200 (1,775,728) 22,097,810 754,903,418 $ 1,032,327,210 $ 15,719,538 321,331,286 302,532,686 13,190,437 42,164,040 57,596,831 752,534,818 $ $ 16,799,260 415,457,310 440,593,400 15,058,530 67,061,720 77,356,990 $ 1,032,327,210 E-6 $ $ Approved FY 2006 8,746,464 20,739,430 175,750,000 25,120,000 18,663,900 11,760,000 3,781,630 153,974,700 44,850,000 38,937,380 8,470,032 53,298,231 58,032,813 191,153,310 -056,378,563 100,409,652 15,587,766 985,653,871 $ 15,322,760 391,303,632 430,452,985 13,357,722 54,996,499 70,671,385 976,104,983 $ $ $ Adopted FY 2006 9,161,820 23,098,280 185,400,000 25,680,000 19,466,300 13,155,160 3,820,760 172,875,000 49,230,000 41,402,260 9,232,050 59,215,130 47,933,420 192,451,030 -019,314,700 37,382,900 9,732,550 918,551,360 $ 9,174,950 24,235,450 184,540,000 25,950,000 21,066,700 13,375,330 5,036,990 169,158,120 50,930,000 40,397,390 16,706,170 48,283,450 78,886,950 190,126,440 -034,403,600 74,933,900 21,189,040 $ 1,008,394,480 18,676,090 387,178,620 372,006,140 14,381,590 60,260,160 66,048,760 918,551,360 $ 18,552,670 395,134,650 439,791,100 15,512,830 68,710,690 70,692,540 $ 1,008,394,480 EXPLANATION OF CITY FUNDS FUND GROUPS The city budget consists of five fund groups. Funds are accounting entities that the city uses to track specific revenue sources and expenditures. Some funds are required by State law or by bond covenants, while other funds are established for management purposes. The city does not include budgets for internal service funds and other fiduciary funds as the expenditures are reflected in the funds of departments using those services. The major funds included in the budget are as follows: General Fund The General Fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government that are not accounted for in other funds. Revenues accounted for in the General Fund include local taxes and state taxes distributed to the city, license and permit fees, fines and penalties, charges for services, certificates of participation, and other miscellaneous funding sources. These funds are expended in Elected and Official, Neighborhood Services, Environment and Development, Strategic Initiatives, Support Services, and Non-Departmental program categories. Special Revenue Funds Special Revenue Funds are used to account for revenues derived from specific taxes or other revenue sources earmarked for a specific use. They are usually required by statute, charter provision, local ordinance, or federal grant regulation to account for particular operating or capital functions of the city. Enterprise Funds Enterprise Funds are established to account for city functions that are financed and operated in a manner similar to private business enterprises and where periodic determination of net income is desired. Expenses, including depreciation, for goods or services provided to the general public are recovered primarily through user charges. The three enterprise funds of the city are Environmental Services, Golf, and Water Utility. Debt Service Funds Debt Service Funds are created to account for the payment of principal and interest on long-term bonded debt other than that issued for and serviced primarily by an enterprise fund. The two funds in this group are for general obligation bonds paid with proceeds from the secondary property tax, and street and highway bonds paid with Highway User Revenue Funds. Capital Projects Funds Funds for capital projects are created to account for the purchase or construction of major capital facilities which are not financed by General, Special Revenue, or Enterprise Funds. Voter authorized bonds are the primary source of funds in this group. Special assessment funds are not included in the budget, as they are not considered a city fund for budget purposes. Proceeds from bond sales are reflected in the year that they are expended. FUND BALANCE The budget treats Fund Balance as the unreserved fund balance defined in the Comprehensive Annual Financial Report (CAFR) as “available spendable resources.” GENERAL PURPOSE FUNDS Throughout the budget a distinction is made between general purpose funds and restricted funds. General purpose funds include funding that has no restrictions on its use and may be either General Funds or Special Revenue Funds. This is a concept used in developing and managing the budget. Although most General Funds can be classified as general purpose funds, certain sources such as certificates of participation or any revenues collected for a specific purpose are not. Any general fund contributions reflected in Special Revenue Funds are also considered general E-7 EXPLANATION OF CITY FUNDS General Purpose Funds (Continued) purpose in that the original sources are unrestricted revenues. In addition, certain user fees in Special Revenues are classified as general purpose where there is no legal restriction and those funds close out against the General Fund. Restricted funds include State and Federal funds awarded for a specific purpose as well as Enterprise Funds, Capital Projects Funds, and Debt Service Funds. BASIS OF BUDGETING The basis of budgeting is best described as a modified cash basis, because funds are budgeted in the year expended. As a result, revenues that may be received in a prior year are budgeted in the year that they will be expended. Comparison to the Basis of Accounting for the Comprehensive Annual Financial Report The structure of city funds is generally the same in the budget and the CAFR; however, because the CAFR uses either a modified accrual or full accrual basis of accounting, there are differences in how revenues and expenses are treated in specific areas. As indicated above, there are certain funds, such as internal service funds and other fiduciary funds, that are reported in the CAFR but not in the budget. In the budget, expenses for these funds are reflected in the funds and programs that use services that are internal to the city organization. Where the general fund contributes to a special revenue fund, those special revenue funds do not carry an unreserved fund balance as only the amount of general fund required to cover expenses and obligations are transferred. This treatment is the essentially the same in both the budget and the CAFR. The budget matches revenues to expenditures in the year expensed for funds other than the general fund. This may result in differences with the CAFR where a revenue may be received prior to the start of the fiscal year such as is the case with bond funds and other financing while the CAFR would report the proceeds in the year received. The budget does not record expenditures such as depreciation that are accrued under Generally Accepted Accounting Principles. E-8 COMPARISON OF GENERAL PURPOSE REVENUES AND TOTAL REVENUES ($000s) $1,200,000 $1,032,327 $1,000,000 $1,008,394 $957,793 $774,183 $800,000 $772,765 $600,000 $400,000 $378,089 $375,387 $394,938 $352,023 $419,208 $200,000 $-02002 Actual 2003 Actual 2004 Actual General Purpose Revenues 2005 Adopted 2006 Adopted Total Revenues Note: Beginning in Fiscal Year 2005, general purpose funds no longer include Environmental Services based on the decision to make it an enterprise fund. E-9 REVENUES AND EXPENDITURES SUMMARY FISCAL YEAR 2006 BY OPERATING AND CAPITAL GENERAL PURPOSE FUNDS CLASSIFICATION FUNDS AVAILABLE Primary Property Tax Secondary Property Tax Business Privilege Tax Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Public Housing Other Federal Revenues Enterprise Funds Certificates of Participation Capital Projects Funds Brought Forward/Fund Balance TOTAL FUNDS AVAILABLE EXPENDITURES Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental TOTAL EXPENDITURES TOTAL BUDGET $ OPERATING CAPITAL RESTRICTED FUNDS TOTAL OPERATING CAPITAL TOTAL 9,174,950 24,235,450 184,540,000 25,950,000 21,066,700 13,375,330 5,036,990 169,158,120 50,930,000 40,397,390 16,706,170 48,283,450 78,886,950 190,126,440 34,403,600 74,933,900 21,189,040 $ 9,174,950 -0183,529,400 25,950,000 19,500,000 10,380,000 1,550,000 73,492,000 50,930,000 38,004,860 1,433,000 -0-0-0-0-05,263,520 $ -0-01,010,600 -0-0-0-0-0-0-0-0-0-0-0-0-04,504,800 $ 9,174,950 -0184,540,000 25,950,000 19,500,000 10,380,000 1,550,000 73,492,000 50,930,000 38,004,860 1,433,000 -0-0-0-0-09,768,320 $ -024,235,450 -0-01,566,700 2,995,330 3,257,590 62,652,820 -02,392,530 12,538,170 48,283,450 26,322,550 167,517,440 14,564,300 -010,920,720 $ -0-0-0-0-0-0229,400 33,013,300 -0-02,735,000 -052,564,400 22,609,000 19,839,300 74,933,900 500,000 $ -024,235,450 -0-01,566,700 2,995,330 3,486,990 95,666,120 -02,392,530 15,273,170 48,283,450 78,886,950 190,126,440 34,403,600 74,933,900 11,420,720 $ 1,008,394,480 $ 419,207,730 $ 5,515,400 $ 424,723,130 $ 377,247,050 $ 206,424,300 $ 583,671,350 $ 18,552,670 395,134,650 439,791,100 15,512,830 68,710,690 70,692,540 $ 17,769,090 259,688,490 68,965,760 12,098,920 42,400,770 18,284,690 $ -01,000,000 3,771,400 -0-0744,000 $ 17,769,090 260,688,490 72,737,160 12,098,920 42,400,770 19,028,690 $ 783,580 107,195,660 203,673,440 2,485,910 15,137,620 47,970,850 $ -027,250,500 163,380,500 928,000 11,172,300 3,693,000 $ 783,580 134,446,160 367,053,940 3,413,910 26,309,920 51,663,850 $ 1,008,394,480 $ 419,207,720 $ 5,515,400 $ 424,723,120 $ 377,247,060 $ 206,424,300 $ 583,671,360 E-10 REVENUES AND EXPENDITURES COMPARISONS AND FUND BALANCE GENERAL FUND Actual FY 2004 Beginning Fund Balance $ Adopted FY 2005 Estimated FY 2005 Approved FY 2006 Adopted FY 2006 3,481,000 $ 10,790,477 $ 13,164,692 $ 28,790,477 $ 35,174,030 Revenues and Other Sources Primary Property Tax Business Privilege Tax Less Transfers Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Certificates of Participation Brought Forward/Fund Balance Total Sources 4,091,637 174,345,408 (56,865,548) 24,063,634 17,349,475 9,273,135 1,648,649 62,789,278 44,022,893 23,509,615 4,617,689 -0(3,730,894) 305,114,971 8,812,120 176,600,000 (53,765,080) 24,930,000 17,668,690 12,622,160 1,880,230 65,051,990 44,853,450 23,403,670 8,037,480 48,723,580 4,326,620 383,144,910 8,746,464 175,750,000 (50,002,658) 25,120,000 18,183,900 11,200,000 2,090,230 67,593,500 44,850,000 22,552,800 6,930,540 37,402,443 4,099,320 374,516,539 9,161,820 185,400,000 (47,945,950) 25,680,000 18,974,300 12,822,160 1,926,760 68,022,360 49,230,000 24,928,880 8,007,050 7,748,300 -0363,955,680 9,174,950 184,540,000 (55,905,910) 25,950,000 20,320,700 12,785,330 2,311,990 71,310,820 50,930,000 23,546,940 10,656,170 19,335,200 7,607,700 382,563,890 Less Unbudgeted Fund Balance Requirements (3,481,000) (10,790,477) (13,164,692) (28,790,477) (35,174,030) Total Funds Available 305,114,971 383,144,910 374,516,539 363,955,680 382,563,890 Expenditures Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental Total Expenditures 15,440,672 210,735,509 14,243,397 2,156,772 41,667,996 19,662,308 303,906,654 16,282,830 241,114,990 42,136,300 2,685,970 49,436,300 31,488,520 383,144,910 15,099,100 236,449,387 42,972,770 2,594,440 40,307,706 28,154,248 365,577,651 18,120,950 254,434,800 19,005,470 2,776,530 47,418,760 22,199,170 363,955,680 17,979,100 262,057,680 22,235,170 2,622,260 55,869,290 21,800,390 382,563,890 Available Funds Over/(Under) Expenditures 1,208,317 -0- 8,938,888 -0- -0- Unbudgeted Fund Balance Requirements From Prior year From Available Funds Transfers from/(to) other Funds or Reserves Total 3,481,000 10,790,477 13,164,692 28,790,477 35,174,030 1,208,317 -08,938,888 -0-08,475,375 18,000,000 13,070,450 -0-0$ 13,164,692 $ 28,790,477 $ 35,174,030 $ 28,790,477 $ 35,174,030 Notes on Changes to Fund Balance: FY 2004 - Based on recent court findings the $7,309,477 net Qwest settlement received in FY 2002 is included in fund balance. Miscellaneous transfers between funds resulted in a net decrease. FY 2005 - Funds previously reserved for Environmental Mandates will be transferred to fund balance based on the establishment of Environmental Services as an enterprise fund. E-11 REVENUES AND EXPENDITURES COMPARISONS AND FUND BALANCE OTHER FUNDS Actual FY 2004 Adopted FY 2005 Estimated FY 2005 Approved FY 2006 Adopted FY 2006 SPECIAL REVENUE FUNDS Beginning Fund Balance $ 33,527,441 $ 18,738,000 $ 33,151,787 $ 18,738,000 $ 33,761,787 Revenues and Other Sources Expenditures 198,695,373 (197,535,090) Surplus/(Deficit) Transfers from/(to) other Funds or Reserves Ending Fund Balance 325,076,010 (325,076,010) 282,625,290 (282,015,290) 284,264,740 (284,264,740) 319,331,690 (319,331,690) 1,160,283 -0- 610,000 -0- -0- (1,535,937) -0- -0- -0- -0- $ 33,151,787 $ 18,738,000 $ 33,761,787 $ 18,738,000 $ 33,761,787 ENTERPRISE FUNDS Beginning Fund Balance $ 36,165,073 $ 41,843,543 $ 39,610,142 $ 48,661,193 $ 42,124,882 Revenues and Other Sources Expenditures Surplus/(Deficit) Transfers from/(to) other Funds or Reserves Ending Fund Balance 166,714,330 (165,507,226) 200,087,840 (193,270,190) 193,668,050 (191,153,310) 196,054,320 (192,451,030) 192,846,790 (190,126,440) 1,207,104 6,817,650 2,514,740 3,603,290 2,720,350 2,237,965 -0- -0- -0- -0- $ 39,610,142 $ 48,661,193 $ 42,124,882 $ 52,264,483 $ 44,845,232 DEBT SERVICE FUNDS Beginning Fund Balance $ Revenues and Other Sources Expenditures 35,354,105 (35,354,105) Surplus/(Deficit) Ending Fund Balance -0- $ -0- $ 37,884,900 (37,884,900) -0- $ 36,949,080 (36,949,080) -0- $ 40,497,010 (40,497,010) -041,438,560 (41,438,560) -0- -0- -0- -0- -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- CAPITAL PROJECTS FUND Beginning Fund Balance Revenues and Other Sources Expenditures 50,231,743 (50,231,743) Surplus/(Deficit) Ending Fund Balance $ 92,951,200 (92,951,200) 100,409,652 (100,409,652) 37,382,900 (37,382,900) 74,933,900 (74,933,900) -0- -0- -0- -0- -0- -0- $ -0- $ -0- $ -0- $ -0- Notes on Changes to Fund Balance: Enterprise Funds - Changes in fund balance each year are based on a policy to increase working capital to meet future infrastructure requirements. E-12 ALL FUNDS SUMMARY Actual FY 2004 FINANCIAL RESOURCES Adopted FY 2005 Estimated FY 2005 Approved FY 2006 Adopted FY 2006 GENERAL FUND SPECIAL REVENUE FUNDS ENTERPRISE FUNDS DEBT SERVICE FUNDS CAPITAL PROJECTS FUNDS $ 305,114,971 $ 383,144,910 $ 374,516,539 $ 198,695,373 325,076,010 282,625,290 165,507,226 193,270,190 191,153,310 35,354,105 37,884,900 36,949,080 50,231,743 92,951,200 100,409,652 363,955,680 $ 284,264,740 192,451,030 40,497,010 37,382,900 TOTAL ALL FUNDS $ 754,903,418 $ 1,032,327,210 $ 985,653,871 $ 918,551,360 $ 1,008,394,480 $ 9,161,820 $ 185,400,000 (47,945,950) 9,174,950 184,540,000 (55,905,910) 25,680,000 18,974,300 12,822,160 1,926,760 68,022,360 49,230,000 24,928,880 8,007,050 7,748,300 -0-0- 25,950,000 20,320,700 12,785,330 2,311,990 71,310,820 50,930,000 23,546,940 10,656,170 19,335,200 3,628,700 3,979,000 $ 305,114,971 $ 383,144,910 $ 374,516,539 $ 363,955,680 $ 382,563,890 $ 44,896,723 $ 53,765,080 $ 50,002,658 $ 882,095 475,000 480,000 406,129 326,000 560,000 1,443,008 1,679,000 1,691,400 55,475,373 79,370,140 70,171,550 15,235,907 16,187,580 16,384,580 2,590,752 2,680,860 2,280,000 75,261,378 129,405,040 109,051,044 548,842 1,940,000 1,539,492 -021,476,120 18,976,120 -06,516,100 6,516,100 1,955,166 11,255,090 4,972,346 47,945,950 $ 492,000 333,000 1,894,000 87,453,910 16,473,380 2,680,860 104,467,690 1,225,000 11,566,400 -09,732,550 55,905,910 746,000 590,000 2,725,000 80,644,190 16,850,450 2,280,000 124,890,400 6,050,000 15,068,400 2,972,920 10,608,420 $ 198,695,373 $ 325,076,010 $ 282,625,290 $ 284,264,740 $ 319,331,690 General Fund Primary Property Tax Business Privilege Tax less Contributions to Other Funds Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Certificates of Participation Brought Forward Use of Fund Balance Total General Fund Special Revenue Funds General Fund Contributions Licenses and Permits Fines and Forfeitures Use of Money and Property Grants and Shared Taxes Charges for Current Services Public Housing Local Revenue Federal Grants Non-Revenue Receipts Certificates of Participation Brought Forward Use of Fund Balance Total Special Revenue Funds 4,091,637 $ 8,812,120 $ 8,746,464 $ 174,345,408 176,600,000 175,750,000 (56,865,548) (53,765,080) (50,002,658) 24,063,634 17,349,475 9,273,135 1,648,649 62,789,278 44,022,893 23,509,615 4,617,689 -0-0(3,730,894) 24,930,000 17,668,690 12,622,160 1,880,230 65,051,990 44,853,450 23,403,670 8,037,480 48,723,580 3,994,320 332,300 E-13 25,120,000 18,183,900 11,200,000 2,090,230 67,593,500 44,850,000 22,552,800 6,930,540 37,402,443 3,994,320 105,000 382,563,890 319,331,690 190,126,440 41,438,560 74,933,900 ALL FUNDS SUMMARY Actual FY 2004 FINANCIAL RESOURCES Enterprise Funds Environmental Services Golf Course Water Utility Total Enterprise Funds Debt Service Funds Secondary Property Tax State Shared Taxes Total Debt Service Funds Capital Projects Funds Bond Funds Proceeds Total Capital Projects Funds Adopted FY 2005 Estimated FY 2005 Approved FY 2006 Adopted FY 2006 $ 28,512,895 $ 41,872,320 $ 43,388,440 $ 9,939,016 14,068,590 11,490,800 $ 127,055,315 $ 137,329,280 $ 136,274,070 $ 38,712,470 $ 10,987,510 142,751,050 $ 37,860,090 13,088,050 139,178,300 $ 165,507,226 $ 193,270,190 $ 191,153,310 $ 192,451,030 $ 190,126,440 $ 22,031,525 $ 13,322,580 21,336,520 $ 16,548,380 20,739,430 $ 16,209,650 23,098,280 $ 17,398,730 24,235,450 17,203,110 $ 35,354,105 $ 37,884,900 $ 36,949,080 $ 40,497,010 $ 41,438,560 $ 50,231,743 $ 92,951,200 $ 100,409,652 $ 37,382,900 $ 74,933,900 $ 50,231,743 $ 92,951,200 $ 100,409,652 $ 37,382,900 $ 74,933,900 E-14 GENERAL FUND Actual FY 2004 FINANCIAL RESOURCES 8,812,120 $ Estimated FY 2005 8,746,464 $ Approved FY 2006 9,161,820 $ Adopted FY 2006 9,174,950 Primary Property Tax $ Business Privilege Tax Less Contributions to Special Revenue Funds $ 174,345,408 $ 176,600,000 $ 175,750,000 $ 185,400,000 $ 184,540,000 (56,865,548) (53,765,080) (50,002,658) (47,945,950) (55,905,910) Business Privilege Tax $ 117,479,860 $ 122,834,920 $ 125,747,342 $ 137,454,050 $ 128,634,090 Other Local Taxes Public Utility Tax Transient Occupancy Tax Room Tax Occupational Taxes Liquor Taxes Use Tax Total Licenses and Permits Application Fees Sign Permits Parking Meter Collections Vehicle Permits Developer In Lieu Fees Fire Inspection Fee Temporary Workzone Traffic Control Fee Cable Television Licenses Public, Educational, Government Operating Support (PEG) Public, Educational, Government Capital Support (PEG) Telecommunications Applications Fee Telecommunications Licenses and Franchise Fees Utility Franchise Fees Total $ 4,091,637 $ Adopted FY 2005 7,887,631 $ 7,172,184 1,973,780 2,049,759 713,675 4,266,605 8,370,000 $ 7,350,000 1,890,000 2,070,000 760,000 4,490,000 8,090,000 $ 7,460,000 2,050,000 2,090,000 760,000 4,670,000 8,600,000 $ 7,640,000 1,970,000 2,110,000 780,000 4,580,000 8,250,000 7,760,000 2,130,000 2,130,000 780,000 4,900,000 $ 24,063,634 $ 24,930,000 $ 25,120,000 $ 25,680,000 $ 25,950,000 $ 146,578 $ 260,823 260,100 53,125 234,026 -0-0- 260,000 $ 285,000 310,000 60,000 -0300,750 350,000 180,000 $ 300,000 296,000 70,000 47,900 -0-0- 320,000 $ 290,000 320,000 65,000 -0623,620 500,000 190,000 305,000 440,000 75,000 220,700 600,000 500,000 3,340,912 -0- 3,234,240 -0- 2,920,000 930,000 3,598,580 -0- 3,040,000 970,000 550,855 532,700 580,000 681,100 600,000 -0- 6,000 -0- 6,000 -0- 886,607 650,000 730,000 660,000 760,000 11,616,449 11,680,000 12,130,000 11,910,000 12,620,000 $ 17,349,475 $ 17,668,690 $ 18,183,900 $ 18,974,300 $ 20,320,700 E-15 GENERAL FUND Actual FY 2004 FINANCIAL RESOURCES Fines, Forfeitures, and Penalties Civil Traffic Diversion Program Prosecutor's Diversion Program Civil Traffic Violations Criminal Traffic Violations Driving Under the Influence Filing Fees-Domestic Violence Probation Fees City Court Miscellaneous Time Payment Fees $ Sub-Total Other Fines/Forfeitures Parking Violations Zoning Code Violations Fire Code Violations Building Code Violations Other Fines/Violations Forfeitures/Assessments False Alarm Violations Offroad Vehicle Violations Dishonored Check 8,217,706 $ Sub-Total Total Grants and Shared Taxes Shared State Taxes Auto Lieu Taxes State Sales Tax Sub-Total 403,708 $ 30,550 12,805 10,940 4,914 502,742 76,599 1,357 11,814 1,055,429 $ Use of Money and Property Rentals Tenant Rent Telephone Pay Booths Interest Earnings Total 1,303,147 $ 107,619 423,440 4,863,051 114,731 11,678 346,089 839,044 208,907 2,346,000 $ 138,000 500,000 5,304,000 107,000 20,000 347,000 1,201,000 250,000 10,213,000 326,000 $ 36,000 1,000 18,000 6,000 1,982,160 17,000 3,000 20,000 2,409,160 Estimated FY 2005 1,490,000 $ 370,000 560,000 5,320,000 172,000 11,000 450,000 1,040,000 250,000 9,663,000 560,000 $ 26,000 3,000 10,000 2,000 800,000 125,000 1,000 10,000 1,537,000 Approved FY 2006 2,393,000 $ 141,000 510,000 5,410,000 110,000 20,000 354,000 1,217,000 250,000 10,405,000 Adopted FY 2006 1,520,000 380,000 570,000 5,430,000 175,000 12,000 460,000 1,060,000 250,000 9,857,000 333,000 $ 37,000 1,000 18,000 6,000 1,982,160 17,000 3,000 20,000 590,000 27,000 3,000 10,000 4,000 2,155,330 128,000 1,000 10,000 2,417,160 2,928,330 9,273,135 $ 12,622,160 $ 11,200,000 $ 12,822,160 $ 12,785,330 849,238 656,182 18,180 125,049 $ Adopted FY 2005 1,648,649 $ 592,000 770,230 18,000 500,000 1,880,230 $ 742,000 770,230 18,000 560,000 2,090,230 $ 592,000 816,760 18,000 500,000 1,926,760 $ 782,000 761,990 18,000 750,000 2,311,990 $ 21,077,563 $ 21,410,000 $ 22,340,000 $ 22,270,000 $ 23,230,000 41,216,598 43,185,270 45,030,000 45,340,000 47,670,000 62,294,161 64,595,270 E-16 67,370,000 67,610,000 70,900,000 GENERAL FUND Actual FY 2004 FINANCIAL RESOURCES Grants and Shared Taxes (Continued) State and Local Grants City Manager's Office Community Services Grants Parks and Recreation Grants Police Grants General Services Grants Other Sub-Total Total State Revenue Sharing Public Safety University of Arizona Fire Services Emergency Medical Transport Police Charges Police Protection Sub-Total Development Services Charges Permit Inspection Fee Review Fees Zoning Adjustments Other Sub-Total Estimated FY 2005 Approved FY 2006 Adopted FY 2006 3,587 73,673 158,464 157,031 33,887 68,475 3,910 -0403,900 -048,910 -0- 3,910 -0192,980 -026,610 -0- -0-0412,360 -0-0-0- -0-0410,820 -0-0-0- 495,117 456,720 223,500 412,360 410,820 $ 62,789,278 $ 65,051,990 $ 67,593,500 $ 68,022,360 $ 71,310,820 $ 44,022,893 $ 44,853,450 $ 44,850,000 $ 49,230,000 $ 50,930,000 Charges for Current Services General Government Mutual Aid Communication $ System Dispatch Intergovernmental Agreement Sale of Codes, Regulations, and Maps Information Technology Services Tucson-Mexico Trade Office Other Sub-Total Adopted FY 2005 26,000 $ 26,000 $ 26,000 $ 26,000 $ 26,000 646,868 615,000 615,000 615,000 680,000 26,459 18,000 20,000 18,000 20,000 256,086 69,938 25,584 -0317,980 127,000 220,000 317,980 26,820 -0319,730 127,000 220,000 313,080 27,860 1,050,935 1,103,980 1,225,800 1,105,730 1,286,940 107,602 100,000 107,000 100,000 107,000 7,721,889 78,572 25 5,700,000 79,000 1,000 6,382,000 79,000 1,000 5,700,000 79,000 1,000 6,893,000 79,000 1,000 7,908,088 5,880,000 6,569,000 5,880,000 7,080,000 8,287,025 1,699,856 362,725 53,829 7,956,950 1,751,800 535,000 745,940 8,220,000 1,750,000 535,000 53,000 8,646,480 1,895,920 625,000 745,750 8,550,000 1,820,000 560,000 50,000 10,403,435 10,989,690 10,558,000 11,913,150 10,980,000 E-17 GENERAL FUND Actual FY 2004 FINANCIAL RESOURCES Charges for Current Services (Continued) Recreation Fee Classes $ Facility Reservations Permits Civic Events Equipment General Recreation Programs Sports Programs Udall Center Programs Randolph Center Programs Tennis Centers Aquatics Fees El Pueblo Center Programs Zoo Concessions Baseball Revenues El Rio Center Programs Quincie Douglas Center Clements Center Rodeo Grounds Miscellaneous Non-Revenue Receipts Sale of Property Real Property Vehicles Inventory and Other Materials Unclaimed Property Other Sub-Total Recovered Expenditures Uninsured Damages Industrial Insurance Payroll Deductions Charges Services Other Sub-Total Estimated FY 2005 Approved FY 2006 Adopted FY 2006 1,031,769 $ 424,640 136,342 39,311 283,423 178,028 217,500 50,766 71,666 379,208 139,796 864,376 218,808 15,120 23,211 20,502 13,720 38,971 998,000 $ 389,000 109,000 90,000 533,000 240,000 242,000 32,000 57,000 304,000 171,000 1,271,000 190,000 11,000 20,000 20,000 20,000 733,000 1,050,000 $ 430,000 140,000 40,000 290,000 180,000 220,000 50,000 70,000 380,000 140,000 870,000 220,000 20,000 20,000 20,000 20,000 40,000 998,000 $ 389,000 109,000 90,000 533,000 240,000 242,000 32,000 57,000 304,000 171,000 1,271,000 190,000 11,000 20,000 20,000 20,000 1,333,000 1,050,000 430,000 140,000 40,000 290,000 180,000 220,000 50,000 70,000 380,000 140,000 870,000 220,000 20,000 20,000 20,000 20,000 40,000 4,147,157 5,430,000 4,200,000 6,030,000 4,200,000 $ 23,509,615 $ 23,403,670 $ 22,552,800 $ 24,928,880 $ 23,546,940 $ 829,581 $ 59,973 71,569 27,619 125,155 500,000 $ 21,000 32,000 21,000 42,000 500,000 $ 60,000 75,000 30,000 125,000 500,000 $ 21,000 32,000 21,000 42,000 510,000 60,000 80,000 30,000 125,000 1,113,897 616,000 790,000 616,000 805,000 28,092 193,997 2,130 44,501 132,055 55,000 126,000 3,000 -0305,000 30,000 195,000 3,000 45,000 132,000 55,000 126,000 3,000 -0305,000 30,000 195,000 3,000 45,000 140,000 400,775 489,000 405,000 489,000 413,000 Sub-Total Total Adopted FY 2005 E-18 GENERAL FUND Actual FY 2004 FINANCIAL RESOURCES Non-Revenue Receipts (Continued) Sundry Income Reimbursement Court Attorney $ Fees Employee Fees Election Campaign Contributions Open Space Contributions Other Adopted FY 2005 73,011 $ 90,000 $ Estimated FY 2005 75,000 $ Approved FY 2006 90,000 $ Adopted FY 2006 75,000 6,849 47,123 11,929 129,470 9,000 -0-0127,000 7,000 48,000 12,000 130,000 9,000 -0-0127,000 8,000 50,000 12,000 130,000 268,382 226,000 272,000 226,000 275,000 Other General Revenues -0- 1,000,000 -0- 1,000,000 3,750,000 Off Duty Police Program 2,834,635 3,129,170 3,129,170 3,131,680 3,109,060 2,577,310 2,334,370 2,544,370 2,304,110 4,617,689 $ 8,037,480 $ 6,930,540 $ 8,007,050 $ 10,656,170 $ 48,723,580 $ 37,402,443 $ 7,748,300 $ 19,335,200 -0- $ 3,994,320 $ 3,994,320 $ -0- $ 3,628,700 Sub-Total Other Funding Sources Total $ Certificates of Participation Brought Forward Use/Transfers to Fund Balance Uses of Fund Balance Transfers to Fund Balance Use/Transfers to Fund Balance Total General Fund $ 109,158 (3,840,052) $ ( 3,730,894) $ 332,300 -0- 105,000 -0- -0-0- 3,979,000 -0- 332,300 $ 105,000 $ -0- $ 3,979,000 $ 305,114,971 $ 383,144,910 $ 374,516,539 $ 363,955,680 $ 382,563,890 E-19 GENERAL FUND HIGHLIGHTS Primary Property Tax The city's Fiscal Year 2006 projected primary property tax revenue is $362,830 higher than the Fiscal Year 2005 adopted revenues. Although the tax rate is lower ($0.3469 per $100 of assessed valuation), valuations have increased. The Fiscal Year 2006 projection is $13,130 higher than the projection in the approved budget for Fiscal Year 2006. Business Privilege Tax Revenue from the business privilege tax, or sales tax, is a funding source for the general fund and various special revenue funds. For Fiscal Year 2006 the total projected sales tax collections are $184,540,000, an increase of 5% based on strong economic growth. Revenues related to cable services have been transferred to a separate revenue group reducing the estimate by $970,000. The general fund is reduced by contributions to special revenue funds, which are projected to increase $2,140,830 in Fiscal Year 2006 for a total allocation of $55,905,910. The Fiscal Year 2006 projection is $860,000 lower than the Fiscal Year 2006 approved budget primarily due to the cable revenue transfer. Contributions to other funds increased to continue funding the library system based on a transition to full funding from the Pima County Library District. Other Local Taxes Other local tax revenues adopted for Fiscal Year 2006 increased $1,020,000 over adopted Fiscal Year 2005 amounts, a 4.1% increase based on the economic growth. The Fiscal Year 2006 estimate is $270,000 higher than the approved budget for Fiscal Year 2006. Licenses and Permits This revenue source increased by $2,652,010 from adopted Fiscal Year 2005 revenues. In addition to the transfer of cable revenues from the Business Privilege Tax, an increase of $940,000 is estimated for Utility Franchise Fees based on economic growth. Full year revenues from fire inspections ($299,250) and Temporary Workzone Traffic Control ($150,000) are included for Fiscal Year 2006. The Fiscal Year 2006 estimate is $1,346,400 higher than the approved budget for Fiscal Year 2006 primarily due to the transfer of cable revenues and strong franchise fees. Fines, Forfeitures, and Penalties Total revenues from all fines, forfeitures, and penalties are forecast to increase $163,170 from Fiscal Year 2005 adopted revenues. The Fiscal Year 2006 estimate is $36,830 lower than the approved budget for Fiscal Year 2006. Use of Money and Property An increase of $431,760 for Fiscal Year 2006 from Fiscal Year 2005 adopted revenues is projected for these revenue sources due to higher interest rates and rental income. The Fiscal Year 2006 projection is $385,230 higher than the approved budget for Fiscal Year 2006. Grants and Shared Taxes State shared taxes and other state and local grant funds increased $6,258,830 for Fiscal Year 2006 over Fiscal Year 2005 adopted revenues. Auto lieu taxes are projected to increase $1,820,000 based on 4% growth on top of higher estimated Fiscal Year 2005 revenues. The League of Arizona Cities and Towns is projecting state sales tax distributions of $47,670,000 in Fiscal Year 2006, an increase of $4,484,730 over the Fiscal Year 2005 Adopted Budget. The Fiscal Year 2006 estimate for Grants and Shared Taxes is $3,288,460 higher than the approved budget for Fiscal Year 2006. State Revenue Sharing An increase in state income taxes of $6,076,550 is forecast for Fiscal Year 2006 compared to the Fiscal Year 2005 Adopted Budget based on estimates from the League of Arizona Cities and Towns. The Fiscal Year 2006 distribution is based on Fiscal Year 2004 state income tax collections, which grew approximately 14%. The Fiscal Year 2006 estimate is $1,700,000 higher than the approved budget for Fiscal Year 2006. E-20 GENERAL FUND Charges for Current Services Total charges for current services for Fiscal Year 2006 are projected to increase $143,270 over Fiscal Year 2005 adopted revenues. Anticipated rate increases for Parks and Recreation were deferred, resulting in a decrease of $1,230,000. This was offset by an increase of $1,193,000 in Emergency Medical Transport fees and moderate increases in other charges. The Fiscal Year 2006 projection is $1,381,940 lower than the approved budget for Fiscal Year 2006 primarily due to deferring Parks and Recreation fee increases. Non-Revenue Receipts These sources are projected to increase $2,618,690 for Fiscal Year 2006 primarily due to a correction to debt service capacity of $1,750,000 previously budgeted as Federal and Highway User Revenue funds and a $1,000,000 increase in capacity for Other General Revenues offset by moderate reductions in other sources. The proposed allotment of Other General Revenues reflects capacity for additional revenues that will be utilized to meet unexpected service demands or opportunities, contingent upon the availability of funds. The Fiscal Year 2006 projection is $2,649,120 higher than the approved budget for Fiscal Year 2006 primarily due to the increase in capacity. Certificates of Participation Certificates of participation decreased $29,388,380 based on financing requirements of $19,335,200 in Fiscal Year 2006. Major uses include capital improvements such as the new Emergency Communications System and equipment, the new Police Substation, and purchases of capital equipment. Brought Forward Brought Forward funding will decrease $365,620 from the Fiscal Year 2005 adopted amount based on Fiscal Year 2006 carryforward requirements. No Brought Forward funds were anticipated in the Fiscal Year 2006 approved budget. Use/Transfers to Fund Balances Use of fund balance is budgeted at $3,979,000 for Fiscal Year 2006. This includes one-time use of reserves to offset funding requirements for the library system and the use of restricted reserves for Development Services and acquisition of a Police helicopter. No Uses/Transfers to Fund Balance were anticipated in the Fiscal Year 2006 approved budget. E-21 SPECIAL REVENUE FUNDS Actual FY 2004 FINANCIAL RESOURCES General Fund Contributions Library Fund Public Safety Academy Fund Tucson Convention Center Fund Transportation Enterprise Area Management (TEAM) Parking Mass Transit Fund Total Licenses and Permits Transportation Enterprise Area Management (TEAM) Parking Meter Collections Hooded Meter Fees Highway User Revenue Fund Total Fines, Forfeitures, and Penalties TEAM Parking Violations Total Use of Money and Property TEAM Parking Revenues Interest Earnings Public Safety Fund TEAM Highway User Revenue Fund Total Grants and Shared Taxes Shared State Taxes Highway User Revenue Fund Transfer to Debt Service Local Transit Assistance Fund Sub-Total $ Adopted FY 2005 8,361,672 $ 3,262,367 7,244,328 9,005,120 $ 4,917,960 6,459,730 Estimated FY 2005 8,777,258 $ 5,139,570 6,652,730 Approved FY 2006 -0- $ 5,038,960 6,710,620 Adopted FY 2006 8,000,000 5,045,200 6,797,740 492,921 25,535,435 -033,382,270 -029,433,100 -036,196,370 -036,062,970 $ 44,896,723 $ 53,765,080 $ 50,002,658 $ 47,945,950 $ 55,905,910 $ 454,153 $ 15,020 412,922 465,000 $ 10,000 -0- 465,000 $ 15,000 -0- 480,000 $ 12,000 -0- 730,000 16,000 -0- $ 882,095 $ 475,000 $ 480,000 $ 492,000 $ 746,000 $ 406,129 $ 326,000 $ 560,000 $ 333,000 $ 590,000 $ 406,129 $ 326,000 $ 560,000 $ 333,000 $ 590,000 $ 1,219,241 $ 1,215,000 $ 1,173,000 $ 1,430,000 $ 2,175,000 3,447 558 219,762 -0-0464,000 -0-0518,400 -0-0464,000 $ 1,443,008 $ 1,679,000 $ 1,691,400 $ 1,894,000 $ 2,725,000 $ 39,264,149 $ (5,855,485) 2,690,290 32,458,120 $ -02,646,230 40,835,000 $ (8,477,650) 2,690,000 33,900,070 $ -02,650,000 42,468,000 (9,161,110) 2,592,000 36,098,954 35,104,350 35,047,350 36,550,070 35,898,890 E-22 -0-0550,000 SPECIAL REVENUE FUNDS Actual FY 2004 FINANCIAL RESOURCES Grants and Shared Taxes (Continued) State and Local Grants City Attorney Grants City Court Grants Community Services Grants Fire Grants Pima County Library Support Library Grants Neighborhood Resources Parks and Recreation Grants Police Grants Transportation Grants Mass Transit Grants Urban Planning Information Technology General Services Grants Economic Development Tucson-Mexico Trade Office General Expense Debt Service Pima County Bonds $ Charges for Current Services Public Safety Academy Library Charges Public Transportation Adult Fares Special Reduced Rates Shuttle Service Advertising Revenue County/Other Local Operating Assistance Special Needs Other Sub-Total 69,399 $ 91,936 51,999 -09,322,867 81,136 -01,344,496 741,958 4,977,997 398,126 -0-0-099,520 -068,145 800,000 1,328,840 Estimated FY 2005 Approved FY 2006 Adopted FY 2006 138,300 $ 399,140 650,000 350,000 9,840,330 1,000,000 -03,205,250 1,142,390 17,968,800 -0210,000 30,000 1,500,000 -0284,280 -0800,000 6,747,300 106,000 $ 375,390 650,000 350,000 9,632,549 1,000,000 110,303 913,810 1,142,390 11,683,652 -0210,000 30,000 100,000 -0284,280 5,930 800,000 7,729,896 145,580 $ 402,900 650,000 350,000 21,940,080 1,000,000 -01,092,160 1,154,150 15,975,000 -0210,000 30,000 1,500,000 -0286,170 -01,300,000 4,867,800 148,870 399,140 650,000 350,000 13,915,830 1,000,000 -02,345,590 1,273,380 16,743,800 609,040 210,000 30,000 1,500,000 -0277,650 -01,300,000 3,992,000 19,376,419 44,265,790 35,124,200 50,903,840 44,745,300 $ 55,475,373 $ 79,370,140 $ 70,171,550 $ 87,453,910 $ 80,644,190 $ 228,453 $ 851,580 $ 883,580 $ 853,380 $ 878,950 505,762 570,000 570,000 570,000 570,000 5,918,251 1,600,891 16,854 372,504 3,167,836 5,900,000 1,700,000 45,000 200,000 2,700,000 6,000,000 1,700,000 20,000 370,000 3,000,000 6,000,000 1,800,000 50,000 200,000 2,750,000 6,100,000 1,800,000 20,000 380,000 3,100,000 309,197 180,525 280,000 121,000 310,000 180,000 300,000 130,000 320,000 180,000 11,566,058 10,946,000 11,580,000 11,230,000 11,900,000 Sub-Total Total Adopted FY 2005 E-23 SPECIAL REVENUE FUNDS Actual FY 2004 FINANCIAL RESOURCES Charges for Current Services (Continued) Tucson Convention Center Room and Space Rental $ Box Office Fees Parking Parking Facility Fee Recovered Expenditures Catering and Concessions Program Sales Commission Revenues Facility User Fees Miscellaneous Sub-Total Total Public Housing Local Revenue Federal Grants Public Housing Federal Revenue Conventional/Development Fund HOME Fund Section 8 Fund Comprehensive Housing Fund Miscellaneous Federal Housing Funds HOPE VI Fund Sub-Total Other Federal Revenue Community Development Block Grant Entitlement City Attorney Grants Community Services Grants Fire Grants Library Grants Parks and Recreation Grants Police Grants Urban Planning Grants Mass Transit Grants Transportation Grants Adopted FY 2005 988,405 $ 199,837 678,331 59,444 84,769 444,498 50,243 116,214 278,246 35,647 2,935,634 Estimated FY 2005 Approved FY 2006 Adopted FY 2006 1,500,000 $ 200,000 650,000 -0100,000 440,000 80,000 100,000 750,000 -0- 1,166,000 $ 205,000 725,000 75,000 90,000 475,000 55,000 120,000 404,000 36,000 1,500,000 $ 200,000 650,000 -0100,000 440,000 80,000 100,000 750,000 -0- 1,236,000 209,000 732,500 77,500 92,000 503,500 58,000 125,000 432,000 36,000 3,820,000 3,351,000 3,820,000 3,501,500 $ 15,235,907 $ 16,187,580 $ 16,384,580 $ 16,473,380 $ 16,850,450 $ 2,590,752 $ 2,680,860 $ 2,280,000 $ 2,680,860 $ 2,280,000 $ 2,760,351 $ 3,217,360 $ 3,616,160 $ 3,217,360 $ 3,651,970 4,149,331 29,631,067 1,701,818 2,648,774 9,344,710 28,083,930 2,488,320 3,099,260 9,340,830 28,079,927 3,076,720 3,099,260 8,762,410 28,162,640 2,490,940 2,565,960 8,125,390 27,580,020 2,789,730 3,539,340 3,830,889 13,073,050 3,805,334 11,334,960 317,000 44,722,230 59,306,630 51,018,231 56,534,270 46,003,450 7,701,184 15,106,170 13,375,026 12,778,750 13,153,730 209,466 1,286,996 223,510 46,915 287,326 3,228,458 -015,116,261 2,207,243 378,130 1,179,470 -0-0708,990 5,797,280 130,000 32,459,730 12,225,990 117,660 1,179,470 946,211 98,748 127,120 6,082,490 433,000 18,052,950 17,276,766 409,560 261,540 -0-0725,370 5,317,020 80,000 11,472,930 14,772,850 424,700 535,840 98,380 -0720,930 5,430,830 390,000 31,197,410 24,711,420 E-24 SPECIAL REVENUE FUNDS Actual FY 2004 FINANCIAL RESOURCES Federal Grants Other Federal Revenue (Continued) Economic Development Tucson-Mexico Trade Office General Services Grant $ Sub-Total Total Non-Revenue Receipts Sale of Property Highway User Revenue Fund Mass Transit $ $ 58,032,813 342,050 $ 273,350 1,500,000 47,933,420 Adopted FY 2006 342,050 381,660 1,500,000 78,886,950 75,261,378 $ 129,405,040 $ 109,051,044 $ 104,467,690 $ 124,890,400 -0- $ -0- -0- $ -0- 200,000 -0- 251,913 -0- -0- -0- 200,000 557 -0246,431 7,497 -042,444 -0-01,100,000 -0840,000 -0- -0-0691,011 12,000 836,481 -0- -0-01,225,000 -0-0-0- -03,510,000 2,325,000 15,000 -0-0- 296,929 1,940,000 1,539,492 1,225,000 5,850,000 $ 548,842 $ 1,940,000 $ 1,539,492 $ 1,225,000 $ 6,050,000 $ -0- $ -0-0- 557,000 $ 9,500,000 11,419,120 557,000 $ -0- $ -07,000,000 -03,502,000 11,419,120 11,566,400 11,566,400 $ -0- $ 21,476,120 $ 18,976,120 $ Brought Forward TEAM Highway User Revenue Fund Mass Transit Fund Total 70,098,410 -0- $ 143,372 200,000 Approved FY 2006 -0- $ -0- Sub-Total Total 342,050 $ 270,600 1,500,000 Estimated FY 2005 200,410 $ 51,503 Other Non-Revenue Receipts Library Fund Contributions Highway User Revenue Fund TEAM Shuttle TEAM Contributions Capital Agreement Funds Certificates of Participation Highway User Revenue Fund TEAM Fleet Services Fund 58,778 $ 77,222 95,789 30,539,148 Sub-Total Total Adopted FY 2005 $ 11,566,400 $ 15,068,400 -0-0-0- 95,300 4,601,000 1,819,800 95,300 4,601,000 1,819,800 -0-0-0- -075,000 2,897,920 -0- $ 6,516,100 $ 6,516,100 $ -0- $ 2,972,920 E-25 SPECIAL REVENUE FUNDS Actual FY 2004 FINANCIAL RESOURCES Use of Fund Balance Capital Agreements Highway User Revenue Fund Library Public Safety Academy Tucson Convention Center Transit TEAM Adopted FY 2005 Estimated FY 2005 Approved FY 2006 Adopted FY 2006 $ (90,677) $ 1,943,236 24,204 3,973 73,386 1,044 -0- -0- $ 9,576,910 -0-0-0-01,678,180 -0- $ 3,665,322 -0-0121,000 -01,186,024 -0- $ 8,330,310 -0-0-0-01,402,240 -09,439,350 -0-0490,500 -0678,570 Total $ 1,955,166 $ 11,255,090 $ 4,972,346 $ 9,732,550 $ 10,608,420 Total Special Revenue Funds $ 198,695,373 $ 325,076,010 $ 282,625,290 $ 284,264,740 $ 319,331,690 E-26 SPECIAL REVENUE FUNDS HIGHLIGHTS General Fund Contributions Changes from Fiscal Year 2005 reflect increases and decreases necessary to offset the expenditures of specific funds supported by general revenues based on their projected budgets and revenues. For Fiscal Year 2006, general fund contributions increased $2,140,830 primarily because expenditures in the Public Safety Academy, Tucson Convention Center, and Mass Transit funds are growing faster than revenues. Contributions to the Library decreased based on the transition to full funding from the Pima County Library District. The Fiscal Year 2006 estimate is $7,959,960 higher than the approved budget for Fiscal Year 2006 primarily due to continued funding of the library system. General Fund contributions to the Library Fund were originally anticipated to be eliminated in the Fiscal Year 2006 approved budget. Licenses and Permits This revenue consists of parking meter collections and fees, which are projected to increase $271,000 in Fiscal Year 2006 based on increased parking meter installations. The Fiscal Year 2006 projection is $254,000 higher than the approved budget for Fiscal Year 2006. Fines, Forfeitures, and Penalties Parking violation fine revenues are projected to increase $264,000 from the adopted Fiscal Year 2005 budget due to expanded enforcement. The Fiscal Year 2006 projection is $257,000 higher than the approved budget for Fiscal Year 2006. Use of Money and Property The majority of the projected $1,046,000 increase is due to higher parking garage revenues, including revenues from the new Pennington Garage. The Fiscal Year 2006 projection is $831,000 higher than the approved budget for Fiscal Year 2006. Grants and Shared Taxes For Fiscal Year 2006, state-shared taxes and other state and local grants increased $1,274,050 from the Fiscal Year 2005 adopted budget based on implementation of funded programs and projects. Major changes include the following: ♦ Highway User Revenue Fund distributions from the state are projected to increase $848,770 due to economic growth. ♦ Budget capacity for state distributions of Powerball funds (Mass Transit Grants) increased by $609,040 to reflect actual amount expected. ♦ Pima County Library Support increased $4,075,500 based on the proposed transition to full funding of the Library system from the Library District tax. ♦ Parks and Recreation grants decreased $859,660 based on the completion of projects. ♦ Grant and intergovernmental agreement funding for transportation purposes decreased $1,225,000 for street and public transportation projects. ♦ Debt service increased $500,000 based on repayment of the Highway Expansion and Extension Loan program. ♦ Pima County bonds decreased $2,755,300 based on the completion of projects. The Fiscal Year 2006 estimate is $6,809,720 than the approved budget for Fiscal Year 2006 primarily due to the change in library funding, which was anticipated to be fully funded by Pima County. E-27 SPECIAL REVENUE FUNDS Charges for Current Services User fees are projected to increase $662,870 in Fiscal Year 2006 based on recent trends and anticipated usage of the services in this group. The Fiscal Year 2006 projection is $377,070 lower than the approved budget for Fiscal Year 2006. Public Housing Local Revenue Local revenues restricted to public housing are anticipated to decrease $400,860 for Fiscal Year 2006, with the same decrease compared to the approved budget for Fiscal Year 2006. Federal Grants Federal funding is anticipated to be $4,514,640 lower for Fiscal Year 2006 based on completion of projects and anticipated grant awards. Major changes are as follows: ♦ HOME funds decrease $1,219,320. ♦ HOPE VI funding decreased $12,756,050. ♦ Other federal housing funds increased $672,190. ♦ Community Development Block Grant (CDBG) funds decrease $1,952,440. ♦ Mass Transit and other transportation grants for capital projects increased $11,223,110 for capital projects. The Fiscal Year 2006 estimate is $20,422,710 higher than the approved budget for Fiscal Year 2006 due to carry over of projects originally scheduled for completion in Fiscal Year 2005. Non-Revenue Receipts The $4,110,000 increase is primarily from contributions to the Zoo and transportation improvements in Fiscal Year 2006. The Fiscal Year 2006 estimate is $4,825,000 higher than the approved budget for Fiscal Year 2006. Certificates of Participation Certificates of Participation decreased $6,407,720 based on financing requirements of $15,068,400 in Fiscal Year 2006 to complete the Pennington Garage and to purchase capital equipment. The Fiscal Year 2006 requirement is $3,502,000 higher than the approved budget for Fiscal Year 2006 due to the garage. Brought Forward Brought forward funding decreased $3,543,180 from Fiscal Year 2005 based on project completion. No requirements were anticipated for the approved Fiscal Year 2006 budget. Use of Fund Balance Use of fund balances decreased $646,670 for Fiscal Year 2006 based primarily on reduced requirements for TEAM programs. The Fiscal Year 2006 estimate is $875,870 higher than the approved budget for Fiscal Year 2006 based on Highway User Revenue Fund requirements. E-28 ENTERPRISE FUNDS Actual FY 2004 FINANCIAL RESOURCES Environmental Services Fund Operating Revenue General Fund Contribution Commercial Refuse Services Residential Refuse Services Landfill Services Charges Tucson Clean Program Self Haul Fee Refuse Penalties Recycling $ Sub-Total Total Approved FY 2006 Adopted FY 2006 11,968,825 $ -0- $ -0- $ -0- $ -05,729,928 5,900,000 6,983,000 6,069,500 7,123,000 -018,199,000 19,878,000 20,307,170 22,119,000 5,347,273 4,800,000 5,399,000 4,800,000 5,507,000 3,140,134 3,396,000 -03,453,600 -0737,347 1,100,000 995,000 1,113,000 1,015,000 204,815 140,000 139,000 142,800 142,000 1,180,668 700,000 1,295,000 721,000 1,321,000 34,235,000 34,689,000 36,607,070 37,227,000 -0227,660 3,755 -0- -01,510,000 -09,733,650 -0410,000 -09,733,650 -0860,000 -03,313,250 -0410,000 -0917,250 893,869 -0- -0- -0- -0- 232,430 (1,153,809) 329,600 (3,935,930) 1,279,600 (2,723,810) 339,490 (2,407,340) 1,089,490 (1,783,650) 203,905 7,637,320 8,699,440 2,105,400 633,090 $ 28,512,895 $ 41,872,320 $ 43,388,440 $ 38,712,470 $ 37,860,090 $ 1,227,866 $ 4,741,994 1,526,614 1,696,058 478,462 268,022 1,304,460 $ 5,557,200 1,665,980 1,816,900 3,724,050 -0- 933,000 $ 4,895,130 1,680,470 1,446,000 2,536,200 -0- 1,304,460 $ 5,557,200 1,665,980 1,816,900 642,970 -0- 1,304,460 5,557,200 1,665,980 1,816,900 563,510 2,180,000 $ 9,939,016 $ 14,068,590 $ 11,490,800 $ 10,987,510 $ 13,088,050 Sub-Total Golf Course Fund El Rio Randolph Fred Enke Silverbell Other Certificates of Participation Estimated FY 2005 28,308,990 Non-Operating Revenue Interest Earnings State and Local Grants Federal Grants Certificates of Participation and Debt Financing Environmental Mandate Reserve Miscellaneous Revenues Transfers to Reserves Total Adopted FY 2005 E-29 ENTERPRISE FUNDS Actual FY 2004 FINANCIAL RESOURCES Water Utility Operating Water Revenue Potable Water Sales Central Arizona Project Surcharge Connection Fees Miscellaneous Revenue Billing Services Reclaimed Water Sales Sales/Use Tax Sub-Total Non-Operating Water Revenue Interest Earnings Tucson Airport Remediation Project Reimbursement Metropolitan Water Company Reserve Account Water System Equity Fees Area Development Fees Certificates of Participation Transfers to Working Capital Miscellaneous Grants Sub-Total $ Adopted FY 2005 94,475,525 $ 101,982,000 $ 1,437,451 1,532,000 Estimated FY 2005 Approved FY 2006 Adopted FY 2006 98,761,095 $ 105,135,000 $ 101,082,800 1,962,000 1,573,000 2,011,000 3,737,533 5,356,791 1,877,042 5,874,518 -0- 3,200,000 2,964,000 1,877,000 6,152,000 10,280,000 2,700,000 3,396,000 1,877,000 6,191,905 10,280,000 3,200,000 2,964,000 1,877,000 6,971,000 10,609,000 3,000,000 3,396,000 1,877,000 6,789,200 10,609,000 112,758,860 127,987,000 125,168,000 132,329,000 128,765,000 495,432 793,729 1,055,000 933,000 912,000 933,000 1,066,000 984,000 1,116,000 993,000 245,812 414,000 414,000 -0- -0- 11,693,249 925,694 -0(53,295) 195,834 6,933,000 939,000 1,300,000 (2,881,720) 650,000 5,749,000 939,000 1,300,000 209,070 650,000 7,081,000 907,000 1,180,000 (1,195,950) 400,000 6,754,000 907,000 1,180,000 (936,700) 400,000 14,296,455 9,342,280 11,106,070 10,422,050 10,413,300 Total $ 127,055,315 $ 137,329,280 $ 136,274,070 $ 142,751,050 $ 139,178,300 Total Enterprise Funds $ 165,507,226 $ 193,270,190 $ 191,153,310 $ 192,451,030 $ 190,126,440 E-30 ENTERPRISE FUNDS HIGHLIGHTS Environmental Services Environmental Services revenues projected for Fiscal Year 2006 reflect a decrease of $4,012,230 from Fiscal Year 2005 adopted revenues. A decrease of $8,816,400 in Certificates of Participation is partially offset by increased collections based on demand. No rate increases are included. The Fiscal Year 2006 projection is $852,380 lower than the approved budget for Fiscal Year 2006. Golf Fund Golf revenues are projected to decrease $980,540 for Fiscal Year 2006 due to completion of work on the Trini Alvarez Golf Course project. Certificates of Participation will be used to fund $2,180,000 of the Silverbell Golf Course Project. The Fiscal Year 2006 projection is $2,100,540 higher than the approved budget for Fiscal Year 2006 primarily based on the Silverbell project. Water Utility The adopted revenue for Fiscal Year 2006 reflects an increase of $1,849,020 over the Fiscal Year 2005 adopted amount based on growth in service demand. No rate increases are included. The Fiscal Year 2006 estimate is $3,572,750 lower than the approved budget for Fiscal Year 2006 based on revised capital requirements. E-31 DEBT SERVICE FUNDS Actual FY 2004 FINANCIAL RESOURCES General Obligation Debt Service Secondary Property Tax Adopted FY 2005 Estimated FY 2005 Approved FY 2006 Adopted FY 2006 $ 22,031,525 $ 21,336,520 $ 20,739,430 $ 23,098,280 $ 24,235,450 $ 22,031,525 $ 21,336,520 $ 20,739,430 $ 23,098,280 $ 24,235,450 $ 13,322,580 $ 16,548,380 $ 16,209,650 $ 17,398,730 $ 17,203,110 Total $ 13,322,580 $ 16,548,380 $ 16,209,650 $ 17,398,730 $ 17,203,110 Total Debt Service Funds $ 35,354,105 $ 37,884,900 $ 36,949,080 $ 40,497,010 $ 41,438,560 Total Street and Highway Debt Service State Shared Taxes E-32 DEBT SERVICE FUNDS HIGHLIGHTS General Obligation Debt Service General obligation debt service is funded from the secondary property tax, which increased $2,898,930 for Fiscal Year 2006 based primarily on a $25,000,000 bond sale. Debt service on these bonds will be shared with Utility ServicesEnvironmental Services. The Fiscal Year 2006 requirement is $1,137,170 higher than the approved budget for Fiscal Year 2006. Street and Highway Debt Service Street and highway debt service is financed entirely from state-shared gasoline taxes and highway user fees and charges. This debt service will increase $654,730 in Fiscal Year 2006. The Fiscal Year 2006 requirement is $195,620 lower than the approved budget for Fiscal Year 2006. E-33 CAPITAL PROJECTS FUNDS FINANCIAL RESOURCES Actual FY 2004 Adopted FY 2005 General Obligation Bond Funds $ Proceeds Street and Highway Revenue Bond Funds Proceeds Environmental Services Bond Funds Proceeds Water Revenue Bond Funds Proceeds 20,767,285 $ 60,032,900 $ 5,952,555 4,773,300 -0- Total Capital Projects Funds $ Estimated FY 2005 Adopted FY 2006 8,562,000 $ 25,009,700 10,064,083 746,900 2,727,200 -0- -0- -0- 7,994,000 23,511,903 28,145,000 29,369,351 28,074,000 39,203,000 50,231,743 $ 92,951,200 $ 100,409,652 $ 37,382,900 $ 74,933,900 E-34 60,976,218 $ Approved FY 2006 CAPITAL PROJECTS FUNDS HIGHLIGHTS General Obligation Bonds General obligation bonds are used to finance capital projects other than street, environmental services, and water projects. Fiscal Year 2006 uses decrease $35,023,200 based on project implementation. The Fiscal Year 2006 requirement is $16,447,700 higher than the approved budget for Fiscal Year 2006 due to carry over of projects from Fiscal Year 2005. Street and Highway Revenue Bonds Street and highway revenue bonds are used to finance Transportation street and right of way capital projects. Fiscal Year 2006 uses decrease $2,046,100 based on project implementation. The Fiscal Year 2006 requirement is $1,980,300 higher than the approved budget for Fiscal Year 2006 due to carry over of projects from Fiscal Year 2005. Environmental Services Bonds Environmental Services bonds are used to finance landfill and other environmental projects. Fiscal Year 2006 uses of $7,994,000 reflect the sale of general obligation bonds used for environmental projects for the first time. Water Revenue Bonds Water revenue bonds used to finance water capital projects increased $11,058,000 in Fiscal Year 2006. This includes bonds that were approved in May 2005. The Fiscal Year 2006 requirement is $11,129,000 higher than the approved budget for Fiscal Year 2006 based on the May 2005 bond authorization. E-35 REVENUE DESCRIPTIONS PRIMARY PROPERTY TAX The city imposes a primary property tax on real and personal property located within the city limits. Revenues from the primary property tax can be used to pay any expense legally chargeable to the General Fund. The Arizona State Constitution limits the amount of ad valorem taxes levied by the city to an amount not to exceed 2% greater than the maximum permissible levy in the preceding year. This levy limitation permits additional taxes to be levied on new or annexed property. New or annexed property may be taxed at the allowable rate computed for property taxed in the preceding year. Property annexed by November 1 will be taxable in the following year. The city is required, under the Truth in Taxation law, to notify taxpayers of its intention to increase primary property taxes over the previous year’s levy, unless the amount increased is solely attributable to new construction and annexations. The estimated primary property tax for Fiscal Year 2006 is $9,174,950 or $428,486 more than last year's levy of $8,746,464. The tax rate changes to $0.3469 per $100 of assessed valuation. Fiscal Year 2006 revenues are growing due to a 6.7% increase in assessed valuation. The adopted budget for Fiscal Year 2005 was $8,812,120. The following table shows the primary assessed valuations, levies, and rates since Fiscal Year 2001. PRIMARY PROPERTY TAX ($000s) Fiscal Year 2001 2002 2003 2004 2005 2006 (Estimate) Primary Assessed Valuation Percent Change Maximum Allowable Tax Levy Primary Tax Levy Increase (Decrease) Percent Change Rate per $100 Assessed Valuation $ 1,999,070 2,089,090 2,202,934 2,344,619 2,477,050 2,644,840 10.0% 4.5% 5.4% 6.4% 5.6% 6.7% $ 7,436 7,775 8,146 8,477 8,812 9,175 $ 2,810 2,931 4,602 4,898 8,746 9,175 $ 214 121 1,671 296 3,848 429 8.2% 4.3% 57.0% 6.4% 78.6% 4.9% $ 0.1406 0.1403 0.2089 0.2089 0.3531 0.3469 PRIMARY PROPERTY TAX LEVY ($000s) $8,746 $10,000 $9,174 $8,000 $6,000 $4,000 $2,810 $4,602 $4,898 2003 2004 $2,931 $2,000 $2001 2002 E-36 2005 2006 SECONDARY PROPERTY TAX The city imposes a secondary property tax on real property located within the city limits. The secondary property tax is used solely to pay the principal and interest on general obligation bonds approved by the voters. The secondary assessed valuation is based on the full cash value of real property. Full cash value is synonymous with the market value as determined by standard appraisal methods. There is no limitation on the annual increase to the full cash value as it applies to the computation of the secondary property tax. The Fiscal Year 2006 secondary assessed valuation is estimated to be $2,724,720,949, a 6.5% increase over last year's valuation. The city's total estimated debt service requirement on general obligation bonds for Fiscal Year 2006 is $24,235,450. The secondary property tax rate for Fiscal Year 2006 is estimated at $0.8895 per $100 of assessed valuation, an increase of $0.0579, based on a $25 million bond sale in the spring of 2005. Although the adopted budget for Fiscal Year 2005 was $21,336,520, the final estimate is $20,739,430. The following table and graph show secondary assessed valuations, levies, and rates since Fiscal Year 2001. SECONDARY PROPERTY TAX ($000s) Fiscal Year Secondary Assessed Valuation Percent Change Secondary Tax Levy Increase (Decrease) 2001 2002 2003 2004 2005 2006 (Estimate) $ 2,048,620 2,138,461 2,268,733 2,427,124 2,558,231 2,724,721 5.3% 4.4% 6.1% 7.0% 5.4% 6.5% $ 20,207 20,954 20,675 23,009 21,274 24,235 $ 3,070 747 (279) 2,334 (1,735) 2,961 Percent Change 17.9% 3.7% (1.3%) 11.3% (7.5%) 13.9% SECONDARY PROPERTY TAX LEVY ($000s) $30,000 $24,235 $23,009 $25,000 $20,207 $20,954 $20,675 2002 2003 $21,274 $20,000 $15,000 2001 2004 E-37 2005 2006 Rate per $100 Assessed Valuation $ 0.9864 0.9799 0.9113 0.9480 0.8316 0.8895 CITY BUSINESS PRIVILEGE (SALES) TAX The Tucson City Charter authorizes a 2% tax on taxable business activity transacted within the city. The tax is imposed on 15 separate business activities. The charter exempts food purchased for home consumption, but allows the taxation of food consumed in restaurants or carried out. The charter further provides that as long as the city sales tax is imposed, no ad valorem tax shall be imposed on real or personal property within the city in excess of $1.75 per $100 of assessed valuation. The city sales tax can be used to pay any expense legally chargeable to the General Fund. Mayor and Council policy allocates a portion of the city sales tax collected to finance part of mass transit, library, convention center, and public housing operations. Tucson's economy is anticipated to grow and sales tax revenues are projected to increase 5% in Fiscal Year 2006. The city sales tax estimate of $184,540,000 for Fiscal Year 2006 is an increase of $8,790,000, over the prior year revised estimate of $175,750,000 due to continued economic growth. The adopted budget for Fiscal Year 2005 was $176,600,000. The following table and graph show city business privilege tax collections since Fiscal Year 2001. CITY BUSINESS PRIVILEGE (SALES) TAX ($000s) Fiscal Year Revenues Increase (Decrease) Percent Change 2001 2002 2003 2004* 2005 (Estimate) 2006 (Estimate) $ 157,335 158,139 160,781 174,345 175,750 184,540 $ 10,105 804 2,642 13,564 1,405 8,790 6.9% 0.5% 1.7% 8.4% 0.8% 5.0% CITY BUSINESS PRIVILEGE (SALES) TAX Revenues ($000s) $210,000 $184,540 $180,000 $157,335 $158,139 $174,345* $175,750 2004 2005 $160,781 $150,000 2001 2002 2003 * Includes recognition of a one-time settlement from Qwest of $7 million. E-38 2006 TRANSIENT OCCUPANCY AND ROOM TAXES The Tucson City Code authorizes a 6% transient occupancy tax on rooms rented for 30 days or less. This rate was increased from 4% in Fiscal Year 2004, generating revenues which by state statute are dedicated to tourism. In Fiscal Year 1989, an additional daily hotel/motel surtax of $1.00 per rented room was authorized. Estimated transient occupancy taxes for Fiscal Year 2006 total $9,890,000, a 4.0% increase over the prior year estimate of $9,510,000. The Fiscal Year 2006 estimate is comprised of $7,760,000 in revenues from the 6% tax and $2,130,000 from the $1.00 surtax. The adopted budget for Fiscal Year 2005 was $9,240,000. The following table and graph show Transient Occupancy and Room Tax collections since Fiscal Year 2001. TRANSIENT OCCUPANCY AND ROOM TAXES ($000s) Fiscal Year 2001 2002 2003 2004 2005 (Estimate) 2006 (Estimate) Revenues Increase (Decrease) Percent Change $ 6,993 6,339 6,395 9,146 9,510 9,890 $ 173 (654) 56 2,751 364 380 2.5% (9.4%) 0.9% 43.0% 4.0% 4.0% TRANSIENT OCCUPANCY AND ROOM TAXES Revenues ($000s) $10,000 $9,146 $9,510 $9,890 $8,500 $6,993 $7,000 $6,339 $6,395 2002 2003 $5,500 2001 2004 E-39 2005 2006 LICENSES AND PERMITS Revenues from licenses and permits include sign and street work permits, parking meter collections, utility franchises, cable television, refuse hauling permits, and telecommunications licenses and franchise fees. Although utility franchises are accounted for and reported within this revenue category in the city’s Comprehensive Annual Financial Report, the discussion on estimated revenues from utility franchises granted to Tucson Electric Power and Southwest Gas is presented separately in Public Utility Tax and Utility Franchise Fees (see page E-45). Revenues from licenses and permits in Fiscal Year 2006, excluding utility franchise fees, is estimated to total $8,446,700, which is a 29.3% increase over the prior year's estimate of $6,533,900. The increase is primarily due to parking meter collections from new meters and full year revenues from a new fire inspection fee and a temporary workzone traffic control fee. The adopted budget for Fiscal Year 2005 was $6,463,690. The following table and graph show revenues from licenses and permits since Fiscal Year 2001. LICENSES AND PERMITS ($000s) Fiscal Year 2001 2002 2003 2004 2005 (Estimate) 2006 (Estimate) Revenues Increase (Decrease) Percent Change $ 3,967 4,897 6,033 6,615 6,534 8,447 $ (439) 930 1,136 582 (81) 1,913 (10.0%) 23.4% 23.2% 9.6% (1.2%) 29.3% LICENSES AND PERMITS Revenues ($000s) $8,447 $9,000 $7,000 $6,615 $6,033 $6,534 $4,897 $5,000 $3,967 $3,000 2001 2002 2003 2004 E-40 2005 2006 PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES The Tucson City Charter authorizes a tax on the gross sales by public utilities to consumers within the city limits. By ordinance, the tax rate is set at 2% and is imposed in addition to the 2% city sales tax. Under the terms of voter-approved franchises granted to Tucson Electric Power and Southwest Gas for use of public rights-of-way, the city collects 2.25% on gross sales of electricity and 2.5% on natural gas consumed within the city. However, franchise fee payments received from Tucson Electric Power and Southwest Gas reduce the public utility tax due from these two utilities. Monies received from public utility taxes and utility franchise fees can be used to pay any expense legally chargeable to the General Fund. Estimated revenues from public utility taxes and utility franchise fees for Fiscal Year 2006 total $20,870,000, a 3.2% increase over last year's revised estimate of $20,220,000. The adopted budget for Fiscal Year 2005 was $20,050,000. The following table and graph show revenues from public utility tax and utility franchise fees since Fiscal Year 2001. PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES ($000s) Fiscal Year Public Utility Tax Utility Franchise Fees Combined Revenues Increase (Decrease) Percent Change 2001 2002 2003 2004 2005 (Estimate) 2006 (Estimate) $ 6,539 7,853 9,267 7,888 8,090 8,250 $ 10,608 11,202 11,227 11,616 12,130 12,620 $ 17,147 19,055 20,494 19,504 20,220 20,870 $ 1,939 1,908 1,439 (990) 716 650 12.7% 11.1% 7.6% (4.8%) 3.7% 3.2% PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES Revenues ($000s) $24,000 $20,494 $21,000 $18,000 $19,504 $19,055 $20,220 $20,870 $17,147 $15,000 2001 2002 2003 2004 E-41 2005 2006 FINES, FORFEITURES, AND PENALTIES This revenue is derived from fines for violations of state statutes and the Tucson City Code, and from forfeitures collected by the Tucson Police Department and the City Attorney. Fines include driving under the influence and other criminal misdemeanors, civil traffic violations, and parking violations. Fine revenues can be used by the city to pay any expense legally chargeable to the General Fund; however, forfeitures are restricted. The Fiscal Year 2006 estimate of $13,375,330 is 13.7% more than the $11,760,000 revised estimate for Fiscal Year 2005, primarily due to an increase in court default fees and improved court collection efforts. The adopted budget for Fiscal Year 2005 was $12,948,160. The following table and graph show revenues from fines, forfeitures, and penalties since Fiscal Year 2001. FINES, FORFEITURES, AND PENALTIES ($000s) Fiscal Year Revenues 2001 2002 2003 2004 2005 (Estimate) 2006 (Estimate) $ 6,342 7,951 10,016 9,679 11,760 13,375 Increase (Decrease) Percent Change $ 540 1,609 2,065 (337) 2,081 1,615 9.3% 25.4% 25.9% (3.4%) 21.5% 13.7% FINES, FORFEITURES, AND PENALTIES Revenues ($000s) $13,375 $14,000 $11,760 $12,000 $10,016 $9,679 2003 2004 $10,000 $7,951 $8,000 $6,342 $6,000 2001 2002 E-42 2005 2006 VEHICLE LICENSE (AUTO LIEU) TAX This tax is imposed by the Arizona Constitution as an “in-lieu” tax for all ad valorem property taxes assessed on motor vehicles. The Arizona Constitution requires that vehicle license tax (VLT) revenues be distributed to the state, counties, and cities. Additionally, the Arizona Constitution requires that a portion of the state’s distribution go to fund education. The vehicle license tax is based on each $100 of a vehicle’s value. The valuation base for the first year is 60% of the manufacturer's base retail price and the annual depreciation rate for each succeeding year is 16.25%. The statute sets specific rates for each vehicle license to be charged for each distribution recipient. The rate for incorporated cities and towns is sixty-nine cents ($0.69) for a new vehicle and seventy-one cents ($0.71) for a vehicle older than one year. Current law provides that 41.37% of vehicle license taxes collected be retained by the state in the Highway User Revenue Fund (HURF). The statute establishes distributions that include 22.62% to the county treasurer to be distributed to the incorporated cities and towns of the county in proportion to the population of each as shown in the most recent United States census. The City of Tucson's vehicle license tax distributions for Fiscal Year 2006 are estimated to be $23,230,000, which is an increase of 4.0% from the revised estimate of $22,340,000 for Fiscal Year 2005. The adopted budget for Fiscal Year 2005 was $21,410,000. Vehicle license tax revenues received by the city can be used to pay any expense legally chargeable to the General Fund. The following table and graph show the City of Tucson’s share since Fiscal Year 2001, and estimates for Fiscal Years 2005 and 2006. VEHICLE LICENSE TAX ($000s) Fiscal Year City of Tucson’s Distribution Increase (Decrease) $ 18,181 19,058 18,424 21,078 22,340 23,230 $ 1,020 877 (634) 2,654 1,262 890 2001 2002 2003 2004 2005 (Estimate) 2006 (Estimate) Percentage Change 5.9% 4.8% (3.3%) 14.4% 6.0% 4.0% VEHICLE LICENSE TAX Revenues ($000s) $24,000 $22,340 $21,078 $22,000 $20,000 $23,230 $19,058 $18,181 $18,424 $18,000 $16,000 2001 2002 2003 2004 E-43 2005 2006 STATE SALES TAX The state sales tax is assessed on the taxable income of business activities within the State of Arizona. The state taxes approximately 20 separate business activities using various rates ranging from 3.1% to 5.6%. Shared sales taxes can be used to pay any expense legally chargeable to the General Fund. Approximately 78% of the state sales tax is retained by the state’s general fund with 14% set aside for distribution to counties, and 8% to incorporated cities and towns. Each city’s share is allocated in proportion to its population compared to the total population of the state. The City of Tucson's share of state sales tax for Fiscal Year 2006 is estimated to be $47,670,000, a 5.9% increase from the revised estimate of $45,030,000 for Fiscal Year 2005. The adopted budget for Fiscal Year 2005 was $43,185,270. The following table and graph show the state sales tax allocations to the City of Tucson since Fiscal Year 2001. STATE SALES TAX ($000s) Fiscal Year Total Distribution To Cities Percent Change $ 312,676 310,190 317,500 343,475 375,250 398,000 4.4% (0.8%) 2.4% 8.2% 9.3% 6.1% 2001 2002 2003 2004 2005 (Estimate) 2006 (Estimate) City of Tucson's Share Percent Amount 13.0% 12.1% 12.0% 12.0% 12.0% 12.0% $ 40,649 37,533 38,161 41,217 45,030 47,670 Increase (Decrease) Percent Change $ 2,004 (3,116) 628 3,056 3,813 2,640 5.2% (7.7%) 1.7% 8.0% 9.3% 5.9% STATE SALES TAX City of Tucson's Share ($000s) $50,000 $47,670 $45,030 $45,000 $41,217 $40,649 $40,000 $37,533 $38,161 2002 2003 $35,000 2001 2004 E-44 2005 2006 STATE REVENUE SHARING Incorporated cities and towns are prohibited from imposing local income taxes, but they do receive a share of net individual and corporate income taxes collected by the state which can be used to pay any expense legally chargeable to the General Fund. Distributions are actually made to cities and towns two fiscal years following the fiscal year in which the state collects the income taxes. The portion (of net income taxes collected two years earlier) currently distributable to incorporated cities and towns was set by statute at 15%. For Fiscal Year 2004 this rate was reduced to 14.8% by the state. For Fiscal Year 2005 and thereafter the rate was reinstated to 15%. The city's portion of State Revenue Sharing distributions is estimated to be $50,930,000 for Fiscal Year 2006, which is an increase of 13.6% from the revised estimate of $44,850,000 for Fiscal Year 2005. The adopted budget for Fiscal Year 2005 was $44,853,450. The following table and graph show the state income tax distributions to the City of Tucson since Fiscal Year 2001. STATE REVENUE SHARING ($000s) Fiscal Year Total Distribution To Cities Percent Change $ 396,453 420,934 430,559 366,858 373,750 425,229 5.0% 6.2% 2.3% (14.8%) 1.9% 13.8% 2001 2002 2003 2004 2005 (Estimate) 2006 (Estimate) Tucson’s Share Percent Amount 13.0% 12.1% 12.0% 12.0% 12.0% 12.0% $ 51,619 50,933 50,486 44,023 44,850 50,930 Increase (Decrease) Percent Change $ 2,465 (686) (447) (6,463) 827 6,080 5.0% (1.3%) (0.9%) (12.8%) 1.9% 13.6% STATE REVENUE SHARING City of Tucson's Share ($000s) $60,000 $51,619 $50,933 $50,930 $50,486 $50,000 $44,023 $44,850 $40,000 2001 2002 2003 2004 E-45 2005 2006 HIGHWAY USER REVENUE FUND (HURF) ALLOCATION State of Arizona gasoline tax and highway user fees and charges are deposited in the state’s Highway User Revenue Fund (HURF). Prior to allocation to counties and cities, funds are distributed to the Arizona Department of Public Safety to fund highway patrol costs and to the Arizona Economic Strength Fund. HURF monies remaining after these distributions are then shared with counties and cities. The current distribution formula provides that 50.5% be retained in the state highway fund, 19% be distributed to counties, 27.5% be distributed to all incorporated cities and towns, and a final 3% be distributed to cities with a population greater than 300,000. The 27.5% share earmarked for distribution to all incorporated cities and towns is often referred to as “regular HURF”, and the Arizona Constitution requires that these funds be used solely for highway and street purposes which includes payment of principal and interest on street and highway bonds. These funds are allocated to individual cities and towns using a two-tier distribution formula. One-half of the “regular HURF” is apportioned to each city or town based on the population each bears to the population of all cities and towns in the state. The remaining half is then apportioned to counties based on each county’s proportion of motor vehicle fuel sales within the state and is then distributed to each city or town within each county on the basis of its population. The 3% allocation distributable to cities and towns with a population greater than 300,000, sometimes referred to as “restricted HURF”, is also required to be used solely for highway and street purposes. However, these funds are further restricted to the acquisition of right-of-way or construction of streets or highways other than controlled-access highways. Phoenix, Tucson, and Mesa are the only cities currently sharing in this distribution, and the funds are distributed based on the 2000 decennial census. The city’s share of HURF distributions from the state is estimated to be $50,510,000 for Fiscal Year 2006, which is a 4.0% increase from the revised estimate of $48,567,000 for Fiscal Year 2005. The adopted budget for Fiscal Year 2005 was $49,006,500. The following table and graph show the HURF allocations to the City of Tucson since Fiscal Year 2001. HIGHWAY USER REVENUE FUND ALLOCATION ($000s) Increase 27.5% Share 3% Share Total (Decrease) Fiscal Year 2001 2002 2003 2004 2005 (Estimate) 2006 (Estimate) $ 39,503 36,102 37,905 39,264 40,835 42,468 $ 7,020 6,416 6,748 7,467 7,732 8,042 $ 46,523 42,518 44,653 46,731 48,567 50,510 $ 976 (4,005) 2,135 2,078 1,836 1,943 HIGHWAY USER REVENUE FUND ALLOCATION ($000s) $55,000 $50,510 $48,567 $50,000 $46,731 $46,523 $45,000 $40,000 2001 $44,653 $42,518 2002 2003 2004 E-46 2005 2006 Percent Change 2.1% (8.6%) 5.0% 4.7% 3.9% 4.0% LOCAL TRANSPORTATION ASSISTANCE FUND (LTAF) In November 1980, an initiative established a state lottery in Arizona. In July 1981, the state legislature established the Local Transportation Assistance Fund (LTAF) consisting of monies deposited initially from the state lottery fund to be distributed to Arizona cities and towns. Current law provides that the Arizona Legislature must appropriate whatever amount is necessary to ensure that a minimum of $20,500,000 annually is deposited in the LTAF. Revenues from the state lottery have historically exceeded the minimum, and the state has not been required to subsidize the fund. Current law places an annual ceiling of $23,000,000 on funds deposited from the state lottery fund into the LTAF for distribution to cities and towns. Tucson, having a population of more than 300,000, is required to use these LTAF monies for public transportation operating expenses and related capital purposes. Statutes provide that cities may adopt resolutions authorizing the use of up to 10% annually of the LTAF monies for cultural, educational, historical, recreational, or scientific facilities or programs, or for certain non-residential outpatient local programs or services. However, the monies used in this manner must be matched equally with non-public monies spent for the same purposes. In recent years, the LTAF has also been used as the depository for Arizona’s share of revenues from the multi-state lottery (Powerball). The statutes place a ceiling of $18,000,000 on multi-state lottery proceeds available for distribution to the cities and towns. State lottery ticket sales started declining after the introduction of Powerball; to compensate for the loss of state general fund revenues from the state lottery, the state appropriated monies received from the multi-state lottery to the state’s general fund. Statutory annual minimum appropriations to the state’s general fund were enacted by the Arizona Legislature before receipts from multi-state lottery sales were available for distribution to cities and towns. The city is expected to receive $2,592,000 in Fiscal Year 2006, a decrease of $98,000 from the Fiscal Year 2005 estimate of $2,690,000. The adopted budget for Fiscal Year 2005 was $2,646,230. The following table shows the LTAF distribution to the City of Tucson since Fiscal Year 2001. LOCAL TRANSPORTATION ASSISTANCE FUND ($000s) Fiscal Year 2001 2002 2003 2004 2005 (Estimate) 2006 (Estimate) Tucson's Share Increase (Decrease) Percent Change $ 2,811 2,763 2,721 2,690 2,690 2,592 $ 300 (48) (42) (31) 0 (98) 11.9% (1.7%) (1.5%) (1.1%) 0.0% (3.6%) E-47 E-48 TEN-YEAR ADOPTED CITY STAFFING COMPARISON WITH FISCAL YEARS 2005 AND 2006 DEPARTMENTS Elected and Official Mayor Council a City Manager b City Clerk City Attorney Sub-Total Neighborhood Services City Court Community Services Fire Library Neighborhood Resources Office of Equal Opportunity Programs c and Independent Police Review Office of Public Defender Parks and Recreation Police Tucson City Golf Sub-Total Environment and Development Development Services Utility Services-Environmental Servicesd Transportation Utility Services-Tucson Water Urban Planning and Design Zoning Examiner Sub-Total Strategic Initiatives Intergovernmental Relations Office of Economic Development Tucson Convention Center Tucson-Mexico Trade Office Sub-Total FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 7.00 29.00 19.80 39.50 100.00 7.00 29.00 19.20 40.50 107.00 7.50 32.50 23.00 40.50 108.00 8.00 35.50 22.00 73.00 108.00 8.00 35.50 21.00 44.50 108.00 8.00 36.50 22.00 69.50 112.00 9.50 43.50 23.75 43.00 113.00 9.50 43.50 24.25 63.50 114.00 9.50 43.50 22.25 41.00 112.00 9.50 43.50 19.25 58.50 105.00 9.50 43.50 19.00 37.00 106.00 9.50 42.00 19.00 58.00 106.00 195.30 202.70 211.50 246.50 217.00 248.00 232.75 254.75 228.25 235.75 215.00 234.50 133.80 158.90 459.50 241.75 5.00 8.00 138.80 158.25 516.50 243.75 5.00 9.00 138.80 159.25 519.50 253.00 5.00 9.00 141.30 169.00 569.00 253.00 7.00 11.00 145.30 167.00 528.00 265.50 7.00 11.00 141.80 160.00 539.00 265.50 11.00 11.00 143.80 157.00 570.00 299.50 11.00 12.00 143.80 155.00 571.00 287.25 11.00 12.50 138.30 157.00 572.00 287.75 21.00 11.00 137.30 153.00 572.00 286.75 19.00 10.00 141.30 153.00 612.00 282.75 20.00 9.00 141.30 152.50 645.00 308.75 20.00 10.00 32.50 580.00 1,048.00 104.00 33.00 577.00 1,102.00 103.00 31.00 596.00 1,146.00 103.00 31.00 631.50 1,154.00 103.00 31.00 685.75 1,191.50 103.50 33.50 665.00 1,356.00 153.75 33.50 633.75 1,353.50 154.75 36.00 669.75 1,373.50 154.75 2,771.45 2,886.30 2,960.55 3,069.80 3,135.55 3,244.05 3,462.80 3,422.55 3,395.30 3,353.55 3,452.05 64.00 234.00 366.50 577.00 46.50 2.00 64.00 232.00 376.50 584.00 45.50 2.00 64.00 234.00 378.50 588.00 46.50 2.00 66.00 235.75 384.00 589.00 46.50 2.00 66.00 246.75 386.50 588.00 49.50 2.00 72.00 253.60 401.50 588.00 50.50 2.00 100.00 258.85 395.50 588.00 47.50 2.00 101.00 259.00 399.50 590.00 49.50 2.00 111.00 251.00 399.50 590.00 31.50 2.00 113.00 252.00 393.50 589.00 38.50 2.00 133.00 263.00 398.00 576.00 39.50 2.00 1,290.00 1,304.00 1,313.00 1,323.25 1,338.75 1,367.60 2.25 16.00 55.00 -0- 2.75 18.00 58.00 -0- 2.75 18.10 58.00 -0- 2.00 22.10 62.00 -0- 2.00 23.75 61.00 -0- 2.00 14.00 61.00 5.00 73.25 78.75 78.85 86.10 86.75 82.00 1 2 E-49 3 4 32.50 720.25 1,266.50 96.50 5, 6 7 6, 8 9 9 32.50 718.75 1,355.00 163.25 10 11 12 10 10 10 33.50 677.50 1,362.00 169.00 14 15 16 14 17 17 17 18 19 18 18 18 20 21 22 36.00 697.00 1,411.50 154.75 28 29 30 31 32 33 3,576.80 23 24 25, 26 27 127.00 262.00 405.00 571.00 44.00 2.00 1,391.85 1,401.00 1,385.00 1,388.00 1,411.50 1,411.00 2.00 15.50 63.50 5.00 2.00 15.50 63.00 5.00 2.00 17.50 60.00 6.00 2.00 14.50 56.25 6.00 2.00 15.50 61.75 14.00 3.00 13.00 63.75 14.00 86.00 85.50 85.50 78.75 93.25 93.75 34 34 35 TEN-YEAR ADOPTED CITY STAFFING COMPARISON WITH FISCAL YEARS 2005 AND 2006 DEPARTMENTS Support Services Budget and Research Finance General Services Human Resources a Information Technology Procurement Sub-Total Non-Departmental General Expense Sub-Total Total FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 28.00 134.00 332.00 29.00 78.00 72.00 28.00 133.00 335.00 29.00 79.50 72.00 27.00 139.00 337.00 28.00 82.42 75.00 26.00 138.00 341.00 32.00 82.42 75.00 26.00 143.00 350.00 32.00 92.12 76.00 26.00 146.00 365.00 32.00 94.12 77.00 26.00 150.25 377.00 34.00 88.12 81.00 24.00 151.25 377.00 31.00 91.12 82.00 673.00 676.50 688.42 694.42 719.12 740.12 756.37 756.37 -0- -0- -0- -0- -0- -0- 3.00 -0- -0- -0- -0- -0- -0- 3.00 5,003.00 5,148.25 5,252.32 5,420.07 5,497.17 5,681.77 5,932.77 a 14 FY 2003 FY 2004 24.00 145.00 370.00 29.00 84.66 77.00 22.55 146.00 350.00 25.00 81.16 75.00 729.66 699.71 720.71 720.71 5.75 4.75 4.75 4.75 5.50 5.75 4.75 4.75 4.75 5,925.67 5,829.46 5,760.51 5,897.26 6,041.51 5.50 15 15 15 19 FY 2005 FY 2006 22.55 149.00 357.00 26.00 101.16 65.00 22.55 150.00 357.00 27.00 100.16 64.00 27 27 27 In Fiscal Year 2002, the offices of the City Manager were reflected in various service teams based on the functions of each office. During Fiscal Year 2002, Citizen and Neighborhood Services became the Neighborhood Resources Department. In Fiscal Year 2003, the Grants function transferred back to City Manager, and Community Relations became part of Information Technology. For comparative purposes, staff is shown for all years in the service teams. b Beginning in Fiscal Year 1998, non-permanent positions for city elections are added every other year to the City Clerk’s Office as follows: 29.5 in Fiscal Year 1998, 25 in Fiscal Year 2000, 20.5 in Fiscal Year 2002, 20.5 in Fiscal Year 2004, and 20.5 in Fiscal Year 2006. c In Fiscal Year 2004, the Equal Opportunity Office and the Independent Police Auditor merged to form the Office of Equal Opportunity Programs and Independent Police Review. For comparative purposes, staff is shown for all years in the new office. d In Fiscal Year 2004, Solid Waste Management and Environmental Management were merged to form Environmental Services. For comparative purposes, staff is shown for all years in the new department. E-50 TEN-YEAR ADOPTED CITY STAFFING COMPARISON WITH FISCAL YEARS 2005 AND 2006 NOTES ON SIGNIFICANT CHANGES 1 In Fiscal Year 1997, the Tucson Police Department added 24 community service officers for the new Community Service Officer Program, an additional 10 police officers to improve community policing, and 10 civilian support positions. 2 In Fiscal Year 1998, the Fire Department added 49.5 positions: 34 positions for annexations, 7 positions for a new paramedic unit, and 8.5 positions for a second vehicle maintenance shift and the public safety academy. 3 In Fiscal Year 1999, the Parks and Recreation Department added 54.25 positions: 32.5 positions for the Clements Center and Pool, 3.5 positions for the Quincie Douglas Center, 14.5 maintenance workers for other new or expanded facilities and parks, and 3.75 positions for expand programs. 4 In Fiscal Year 1999, the Tucson Police Department added 37.5 positions to improve community policing. 5 In Fiscal Year 2000, the Parks and Recreation Department added 42.5 positions: 27 positions for new grants, 8 positions for Aquatics, 6.5 positions for Quincie-Douglas Neighborhood Center, and 1 municipal intern. 6 In Fiscal Year 2000, to support median island maintenance, the Parks and Recreation Department transferred 9 positions to the Transportation Department, and 1 electrician was transferred from Transportation for a net decrease of 8 positions. 7 In Fiscal Year 2000, the Tucson Police Department added 75 positions: 50 police officers for the Universal Cops Hiring Grant and 2 in support of a new department reorganization, and 23 civilian support positions. 8 In Fiscal Year 2000, the Transportation Department’s Van Tran Americans with Disabilities Act Compliance organization was transferred to the new Transit Division, with the existing 4 employees being converted to city positions and the addition of 3 new positions. 9 In Fiscal Year 2000, the Tucson-Mexico Trade Office was created by transferring 4 positions from the Office of Economic Development and adding 1 new position. 10 In Fiscal Year 2001, the consolidation of Plans Review included transferring 17 positions to the Development Services Department: 2 from the Parks and Recreation Department, 6 from the Department of Urban Planning and Design, and 9 from the Transportation Department. 11 In Fiscal Year 2001, the Tucson Police Department added 56 positions for the Universal Cops Hiring Grant and an additional 32.5 support positions. 12 In Fiscal Year 2001, Tucson City Golf added 66.75 positions in response to the Mayor and Council approved Tucson City Golf Business Plan. 13 In Fiscal Year 2001, 3 grant-funded positions were added to the General Expense budget for water conservation projects at the A-7 Ranch. 14 In Fiscal Year 2002, 3.5 positions were transferred from the City Manager’s Office: 2.5 to the Non-Departmental budget to support of Rio Nuevo and 1 project manager to the Department of Urban Planning and Design. Additionally, 2 positions were transferred from the Budget and Research Department and 1 from the Human Resources Department to the City Manager’s Office. 15 In Fiscal Year 2002, the Library Department eliminated 12.25 positions: 10.75 due to the elimination of Sunday library services at Woods, Mission, Miller-Golf Links, and Green Valley branches, 1.5 due to revised implementation of programs. 16 In Fiscal Year 2002, a net reduction of 41.25 positions was made in the Parks and Recreation Department. A total of 49.25 positions were eliminated: 11 due to the completion of grants, 9 from the privatization of zoo concessions, and 29.25 from reductions in HICO/MIDCO, KIDCO, fee classes and summer aquatics programs. The department added 8 positions: 4 for grounds maintenance, 2 for capital project management, and 2 for a new KIDCO site. E-51 TEN-YEAR ADOPTED CITY STAFFING COMPARISON WITH FISCAL YEARS 2005 AND 2006 NOTES ON SIGNIFICANT CHANGES 17 A reorganization of Neighborhood Resources, Development Services and Urban Planning and Design departments’ responsibilities resulted in an increase of 10 positions in Neighborhood Resources, and 10 positions in Development Services, and a reduction of 18 positions in Urban Planning and Design. 18 In Fiscal Year 2004, comprehensive planning functions were consolidated into Urban Planning and Design, including the transfer of 4 positions from the Transportation Department, 1 from Utility Services-Tucson Water Department, and 3 from various function within the City Manager’s Office. 19 The Fiscal Year 2004 budget has been corrected to reflect positions that were funded but not included in the budget. 20 In Fiscal Year 2005, staffing of two new fire stations adds 35 positions, an increase in inspection activity adds 4 new inspectors, and the supervision of computer systems adds 1 information technology manager to the Fire Department. 21 In Fiscal Year 2005, the Parks and Recreation Department added 36 positions: 21 positions for the new Adaptive Recreation Center, 5 positions for the Udall Center Senior Expansion, 6.5 maintenance workers for new or expanded facilities, and 3.5 positions for expanded programs. 22 In Fiscal Year 2005, the Tucson Police Department added 18 positions: 5 police officers and 13 civilian positions in support functions. An additional 2 police officers were added during Fiscal Year 2004. 23 In Fiscal Year 2005, the Development Services Department added 20 positions: 7 positions to improve existing programs, 7.5 positions for the Private Improvement Agreement program, and 5.5 positions for the Stormwater Retention Basin Management program. 24 In Fiscal Year 2005, the Utility Services-Environmental Services Department added 11 positions for residential growth, improved customer service, and environmental programs. 25 In Fiscal Year 2005, the Transportation Department added 11.5 positions for maintenance of streets and traffic control in temporary work zones, and 7 positions to expand the residential parking enforcement program. 26 In Fiscal Year 2005, to improve organizational efficiency, Real Estate was transferred from the Transportation Department to the General Services Department (14 positions), Telecommunications was transferred from General Services to the Information Technology Department (20 positions), and Auto Stores was transferred from the Procurement Department to the General Services Department (10 positions). The General Services Department added an additional 3 positions for fleet maintenance and grants. 27 In Fiscal Year 2005, the Utility Services-Tucson Water Department reflects a reduction of 13 positions due to improved efficiencies identified through the Maintenance Management Program. 28 In Fiscal Year 2006, 7.5 permanent positions were eliminated from Community Services due to a reduction in federal funding and 7 non-permanent positions were authorized. 29 In Fiscal Year 2006, the staffing of a ladder company and a medic company added 21 positions, and an increase in inspection activity added 4 new inspectors. The household hazardous waste program was transferred from Pima County, including 8 positions. 30 In Fiscal Year 2006, the Library Department added 26 positions: 10 positions for the new Quincie Douglas Library, 5 positions for the new Martha Cooper Library and Learning Center, and 11 positions to expand services. 31 In Fiscal Year 2006, the Office of Equal Opportunity Programs and Independent Police Review added 1 position to coordinate the American with Disabilities Act Program. 32 In Fiscal Year 2006, the Parks and Recreation Department added 27.25 positions: 15.25 positions to staff and maintain the new Quincie Douglas Center Pool, 4.5 positions for the El Pueblo Center expansion, 4.5 positions for the Lincoln Park/William Clements Center expansion, and 3 positions for Hi Corbett Field maintenance. E-52 TEN-YEAR ADOPTED CITY STAFFING COMPARISON WITH FISCAL YEARS 2005 AND 2006 NOTES ON SIGNIFICANT CHANGES 33 In Fiscal Year 2006, the Tucson Police Department added 23 officers and 5 civilian positions to the Field Operations Bureau and 10 civilian positions to Investigative Services. One civilian position was eliminated in the Grants Division and 6 positions were transferred to the Parks and Recreation Department. During the prior year 4 officers were added to the Field Operations Bureau and 3 civilian positions to Counter-Narcotics Alliance. 34 In Fiscal Year 2006, 6 positions were transferred from the Development Services Department to Transportation Department for the Private Improvement Agreement Program, and 1 position from Support Services. 35 In Fiscal Year 2006, the Utility Services-Tucson Water Department reduced 5 positions due to improved efficiencies identified through the Maintenance Management Program. E-53 FULL-TIME EQUIVALENT POSITIONS PERMANENT AND NON-PERMANENT FISCAL YEARS 2005 AND 2006 Permanent ELECTED AND OFFICIAL Mayor and Council City Manager City Clerk City Attorney Sub-Total NEIGHBORHOOD SERVICES City Court Community Services Fire Library Neighborhood Resources Office of Equal Opportunity Programs and Independent Police Review Office of Public Defender Parks and Recreation Police Tucson City Golf Sub-Total ENVIRONMENT AND DEVELOPMENT Development Services Utility Services-Environmental Services Transportation Utility Services-Tucson Water Urban Planning and Design Zoning Examiner Sub-Total Adopted 2005 NonPermanent Total Permanent Adopted 2006 NonPermanent Total 53.00 19.00 34.50 106.00 -0-02.50 -0- 53.00 19.00 37.00 106.00 51.50 19.00 35.00 106.00 -0-023.00 -0- 51.50 19.00 58.00 106.00 212.50 2.50 215.00 211.50 23.00 234.50 141.30 153.00 612.00 229.50 20.00 9.00 -0-0-053.25 -0-0- 141.30 153.00 612.00 282.75 20.00 9.00 141.30 145.50 645.00 298.50 20.00 10.00 -07.00 -010.25 -0-0- 141.30 152.50 645.00 308.75 20.00 10.00 36.00 399.50 1,367.50 44.00 -0270.25 6.00 110.75 36.00 669.75 1,373.50 154.75 36.00 407.00 1,411.50 44.00 -0290.00 -0110.75 36.00 697.00 1,411.50 154.75 3,011.80 440.25 3,452.05 3,158.80 418.00 3,576.80 132.00 263.00 396.00 576.00 39.50 2.00 1.00 -02.00 -0-0-0- 133.00 263.00 398.00 576.00 39.50 2.00 126.00 262.00 403.00 571.00 44.00 2.00 1.00 -02.00 -0-0-0- 127.00 262.00 405.00 571.00 44.00 2.00 1,408.50 3.00 1,411.50 1,408.00 3.00 1,411.00 E-54 FULL-TIME EQUIVALENT POSITIONS PERMANENT AND NON-PERMANENT FISCAL YEARS 2005 AND 2006 Permanent STRATEGIC INITIATIVES Intergovernmental Relations Office of Economic Development Tucson Convention Center Tucson-Mexico Trade Office Sub-Total SUPPORT SERVICES Budget and Research Finance General Services Human Resources Information Technology Procurement Sub-Total NON-DEPARTMENTAL General Expense Sub-Total Total Adopted 2005 NonPermanent Total Permanent Adopted 2006 NonPermanent Total 2.00 11.00 42.75 6.00 -04.50 19.00 8.00 2.00 15.50 61.75 14.00 3.00 12.00 44.75 6.00 -01.00 19.00 8.00 3.00 13.00 63.75 14.00 61.75 31.50 93.25 65.75 28.00 93.75 22.55 149.00 356.00 26.00 99.50 65.00 -0-01.00 -01.66 -0- 22.55 149.00 357.00 26.00 101.16 65.00 22.55 150.00 356.00 27.00 98.50 64.00 -0-01.00 -01.66 -0- 22.55 150.00 357.00 27.00 100.16 64.00 718.05 2.66 720.71 718.05 2.66 720.71 4.75 -0- 4.75 4.75 -0- 4.75 4.75 5,417.35 -0479.91 4.75 5,897.26 4.75 5,566.85 -0474.66 4.75 6,041.51 E-55 FULL-TIME EQUIVALENT POSITIONS GENERAL PURPOSE FUNDS AND OTHER FUNDS FISCAL YEAR 2005 AND 2006 Adopted 2005 General Purpose ELECTED AND OFFICIAL Mayor and Council City Manager City Clerk City Attorney Sub-Total NEIGHBORHOOD SERVICES City Court Community Services Fire Library Neighborhood Resources Office of Equal Opportunity Programs and Independent Police Review Office of Public Defender Parks and Recreation Police Tucson City Golf Sub-Total ENVIRONMENT AND DEVELOPMENT Development Services Utility Services-Environmental Services Transportation Utility Services-Tucson Water Urban Planning and Design Zoning Examiner Sub-Total Other Total Adopted 2006 General Purpose Other Total 53.00 19.00 37.00 95.00 -0-0-011.00 53.00 19.00 37.00 106.00 51.50 19.00 58.00 95.00 -0-0-011.00 51.50 19.00 58.00 106.00 204.00 11.00 215.00 223.50 11.00 234.50 137.80 9.18 610.00 141.38 20.00 9.00 3.50 143.82 2.00 141.37 -0-0- 141.30 153.00 612.00 282.75 20.00 9.00 137.80 9.18 643.00 154.38 20.00 10.00 3.50 143.32 2.00 154.37 -0-0- 141.30 152.50 645.00 308.75 20.00 10.00 36.00 628.50 1,337.50 -0- -041.25 36.00 154.75 36.00 669.75 1,373.50 154.75 36.00 655.75 1,383.50 -0- -041.25 28.00 154.75 36.00 697.00 1,411.50 154.75 2,929.36 522.69 3,452.05 3,049.61 527.19 3,576.80 133.00 -025.50 -038.50 2.00 -0263.00 372.50 576.00 1.00 -0- 133.00 263.00 398.00 576.00 39.50 2.00 127.00 -034.00 -043.00 2.00 -0262.00 371.00 571.00 1.00 -0- 127.00 262.00 405.00 571.00 44.00 2.00 199.00 1,212.50 1,411.50 206.00 1,205.00 1,411.00 E-56 FULL-TIME EQUIVALENT POSITIONS GENERAL PURPOSE FUNDS AND OTHER FUNDS FISCAL YEAR 2005 AND 2006 Adopted 2005 General Purpose STRATEGIC INITIATIVES Intergovernmental Relations Office of Economic Development Tucson Convention Center Tucson-Mexico Trade Office Sub-Total SUPPORT SERVICES Budget and Research Finance General Services Human Resources Information Technology Procurement Sub-Total NON-DEPARTMENTAL General Expense Sub-Total Total Other Total Adopted 2006 General Purpose Other Total 2.00 14.50 61.75 6.00 -01.00 -08.00 2.00 15.50 61.75 14.00 3.00 12.00 63.75 6.00 -01.00 -08.00 3.00 13.00 63.75 14.00 84.25 9.00 93.25 84.75 9.00 93.75 22.55 138.00 248.00 26.00 101.16 65.00 -011.00 109.00 -0-0-0- 22.55 149.00 357.00 26.00 101.16 65.00 22.55 136.00 249.00 27.00 100.16 64.00 -014.00 108.00 -0-0-0- 22.55 150.00 357.00 27.00 100.16 64.00 600.71 120.00 720.71 598.71 122.00 720.71 -0- 4.75 4.75 -0- 4.75 4.75 -04,017.32 4.75 1,879.94 4.75 5,897.26 -04,162.57 4.75 1,878.94 4.75 6,041.51 E-57 Fiscal Year 2006 City of Tucson Annual Salary Scale Effective June 26, 2005 Exempt Schedule Grade 810 811 812 813 814 815 816 817 818 819 820 821 822 Minimum Midpoint Maximum 30,555 32,718 35,214 38,106 41,413 45,219 49,629 54,725 60,632 67,517 75,525 84,906 95,846 40,955 43,846 47,195 51,064 55,494 60,590 66,498 73,341 81,245 90,480 101,213 113,755 128,440 51,334 54,974 59,155 64,002 69,555 75,962 83,366 91,936 101,858 113,422 126,880 142,605 161,034 E-58 Fiscal Year 2006 City of Tucson Annual Salary Scale Police Exempt Schedule Effective June 26, 2005 Grade Minimum Midpoint Maximum 320 321 322 323 324 74,339 74,818 82,534 90,771 124,363 81,474 89,232 100,547 110,594 143,229 88,608 103,626 118,539 130,395 162,074 Police Exempt Schedule Effective December 25, 2005 Grade Minimum Midpoint Maximum 320 321 322 323 324 77,002 77,492 85,488 94,016 128,814 84,386 92,414 104,146 114,546 148,346 91,770 107,328 122,782 135,054 167,856 E-59 Fiscal Year 2006 City of Tucson Annual Salary Scale Fire Exempt Schedule Effective June 26, 2005 Grade Minimum Midpoint Maximum 420 421 422 423 75,945 75,275 83,034 124,363 82,555 89,773 101,150 143,229 89,136 104,270 119,267 162,074 Fire Exempt Schedule Effective December 25, 2005 Grade Minimum Midpoint Maximum 420 421 422 423 77,272 76,586 84,490 126,526 83,990 91,333 102,918 145,725 90,709 106,101 121,347 164,902 E-60 Fiscal Year 2006 City of Tucson Annual Salary Scale Legal Exempt Schedule Effective June 26, 2005 Grade 610 611 612 613 614 615 616 617 618 619 Minimum Midpoint Maximum 32,531 35,776 39,437 43,576 48,277 53,581 59,613 66,456 74,256 83,179 43,098 47,403 52,250 57,741 63,960 70,990 78,978 88,067 98,405 110,219 53,664 59,010 65,062 71,906 79,622 88,400 98,322 109,658 122,533 137,238 Information Technology Exempt Schedule Effective June 26, 2005 Grade 712 713 714 715 716 717 718 719 Minimum Midpoint Maximum 38,002 41,101 45,032 49,858 55,827 63,232 71,614 81,099 50,326 54,475 59,654 66,050 73,975 83,782 94,890 107,453 62,650 67,850 74,277 82,243 92,123 104,333 118,165 133,806 E-61 Fiscal Year 2006 City of Tucson Annual Salary Scale Golf and Ranch Exempt Schedule Effective June 26, 2005 Grade 501 502 503 505 514 515 Minimum Midpoint Maximum 20,966 22,152 23,608 27,331 41,413 45,219 26,770 28,309 30,160 34,923 55,494 60,590 32,573 34,445 36,691 42,494 69,555 75,962 Range 501 and 502 receive 50% earnings from golf lesson revenue. Range 503 and 505 receive $300 in-kind pay per year. Range 514 receive 100% earnings from golf lesson revenue up to $12,000 per year. Range 515 receive 100% earnings from golf lesson revenue up to $5,000 per year. E-62 Fiscal Year 2006 City of Tucson Annual Salary Scale Non-Exempt Schedule Effective June 26, 2005 Grade 910 911 912 913 914 915 916 917 918 919 920 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 Step 12 Step 13 Step 14 19,947.20 20,966.40 22,152.00 23,608.00 25,313.60 27,331.20 29,723.20 32,552.00 35,880.00 39,832.00 44,512.00 20,966.40 22,006.40 23,254.40 24,772.80 26,561.60 28,704.00 31,220.80 34,174.40 37,668.80 41,828.80 46,737.60 22,006.40 23,088.00 24,440.00 26,020.80 27,913.60 30,118.40 32,760.00 35,880.00 39,561.60 43,929.60 49,088.00 23,088.00 24,252.80 25,646.40 27,310.40 29,286.40 31,636.80 34,403.20 37,668.80 41,537.60 46,113.60 51,521.60 24,252.80 25,459.20 26,936.00 28,683.20 30,763.20 33,217.60 36,129.60 39,561.60 43,617.60 48,422.40 54,100.80 25,459.20 26,728.00 28,267.20 30,097.60 32,302.40 34,881.60 37,918.40 41,537.60 45,801.60 50,856.00 56,825.60 26,104.00 27,393.60 28,974.40 30,867.20 33,113.60 35,755.20 38,896.00 42,577.60 46,945.60 52,104.00 58,219.20 26,748.80 28,100.80 29,702.40 31,636.80 33,945.60 36,649.60 39,852.80 43,638.40 48,110.40 53,414.40 59,696.00 27,414.40 28,787.20 30,451.20 32,427.20 34,777.60 37,564.80 40,851.20 44,720.00 49,316.80 54,745.60 61,193.60 28,100.80 29,515.20 31,220.80 33,238.40 35,651.20 38,500.80 41,870.40 45,864.00 50,544.00 56,118.40 62,712.00 28,808.00 30,243.20 31,990.40 34,070.40 36,545.60 39,457.60 42,910.40 46,987.20 51,812.80 57,512.00 64,272.00 29,536.00 30,992.00 32,780.80 34,923.20 37,460.80 40,435.20 43,992.00 48,152.00 53,102.40 58,947.20 65,873.60 30,284.80 31,782.40 33,592.00 35,796.80 38,396.80 41,475.20 45,094.40 49,379.20 54,433.60 60,424.00 67,537.60 31,012.80 32,572.80 34,444.80 36,691.20 39,353.60 42,494.40 46,217.60 50,606.40 55,785.60 61,942.40 69,222.40 E-63 Fiscal Year 2006 City of Tucson Annual Salary Scale Police Non-Exempt Schedule Effective June 26, 2005 Grade 351 302 303 304 305 306 307 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 33,883.20 39,416.00 41,392.00 43,472.00 45,635.20 35,588.80 41,392.00 43,472.00 45,635.20 47,923.20 37,356.80 43,472.00 45,635.20 47,923.20 50,315.20 39,228.80 45,635.20 47,923.20 50,315.20 52,832.00 41,184.00 47,923.20 50,315.20 52,832.00 55,473.60 58,260.80 61,172.80 43,264.00 50,315.20 52,832.00 55,473.60 58,260.80 61,172.80 64,209.60 45,406.40 52,832.00 55,473.60 58,260.80 61,172.80 64,209.60 67,412.80 47,673.60 55,473.60 58,260.80 61,172.80 64,209.60 67,412.80 70,782.40 Police Non-Exempt Schedule Effective December 25, 2005 Grade 351 302 303 304 305 306 307 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 35,090.00 40,830.00 42,869.00 45,032.00 47,258.00 36,858.00 42,869.00 45,032.00 47,258.00 49,629.00 38,688.00 45,032.00 47,258.00 49,629.00 52,104.00 40,622.00 47,258.00 49,629.00 52,104.00 54,725.00 42,661.00 49,629.00 52,104.00 54,725.00 57,450.00 60,341.00 63,357.00 44,803.00 52,104.00 54,725.00 57,450.00 60,341.00 63,357.00 66,498.00 47,029.00 54,725.00 57,450.00 60,341.00 63,357.00 66,498.00 69,826.00 49,379.00 57,450.00 60,341.00 63,357.00 66,498.00 69,826.00 73,320.00 E-64 Fiscal Year 2006 City of Tucson Annual Salary Scale Fire Non-Exempt Schedule Effective June 26, 2005 Grade 401 403 404 405 406 407 408 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 36,866.00 38,671.00 40,652.00 42,690.00 44,816.00 45,922.00 47,029.00 39,050.00 40,884.00 42,865.00 44,874.00 47,000.00 48,135.00 49,242.00 50,640.00 51,863.00 52,853.00 54,076.00 58,619.00 60,045.00 60,832.00 62,229.00 65,624.00 67,246.00 48,223.00 50,407.00 53,144.00 55,328.00 61,531.00 63,744.00 68,890.00 49,358.00 51,601.00 54,425.00 56,668.00 63,016.00 65,229.00 70,595.00 50,640.00 52,853.00 55,794.00 58,007.00 64,588.00 66,801.00 72,322.00 Step 7 Step 8 Step 9 Step 10 37,507.00 39,341.00 41,350.00 43,447.00 45,602.00 46,738.00 47,844.00 39,720.00 41,612.00 43,622.00 45,660.00 47,815.00 48,980.00 50,116.00 51,513.00 52,765.00 53,785.00 55,008.00 59,638.00 61,094.00 61,880.00 63,307.00 66,768.00 68,411.00 49,067.00 51,280.00 54,076.00 56,289.00 62,608.00 64,850.00 70,096.00 50,232.00 52,503.00 55,386.00 57,658.00 64,122.00 66,364.00 71,822.00 51,513.00 53,785.00 56,755.00 59,026.00 65,724.00 67,966.00 73,590.00 Fire Non-Exempt Schedule Effective December 25, 2005 Grade 401 403 404 405 406 407 408 Step 1 Step 2 Step 3 Step 4 Step 5 E-65 Step 6 Fiscal Year 2006 City of Tucson Hourly (Non-Permanent) Schedule Non-Exempt Effective June 26, 2005 Grade 1001 1003 1004 1006 1008 1010 1011 1013 1015 1017 1019 1021 1022 1023 1025 1027 1029 1035 1043 Class Title Hourly Rate City Youth Worker Concession Worker Center Attendant Recreation Worker Class Instructor Short Order Cook Senior Recreation Worker Lifeguard General Maintenance Trainee/Worker Water Safety Instructor/Senior Lifeguard Swimming Pool Supervisor Golf Host Election Technician Program Coordinator Aquatics Program Supervisor Senior Election Technician Camera Operator Library Program Instructor Election Specialist $ E-66 6.15 6.01 6.52 7.36 7.81 8.09 8.20 8.50 8.73 8.97 9.66 10.34 10.61 10.37 11.05 11.65 11.94 13.89 16.99 - $ 7.42 - 18.06 10.46 - 10.11 - 14.57 - 16.00 17.93 18.61 23.35 CAPITAL BUDGET SUMMARY Capital improvement projects are assigned to city departments to ensure proper project management. The following two tables summarize the $211.9 million Fiscal Year 2006 capital budget by service area and by funding type. For a breakout by individual departments and funding sources, see Tables I and II on pages F-4 and F-5. Fiscal Year 2006 Capital Budget Summary of Expenditures ($000s) Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental Total Carryforward $ 14,282.0 46,663.2 928.0 7,975.0 3,435.0 New Funding $ 13,968.5 120,488.7 -03,197.3 1,002.0 Total $ 28,500.5 167,151.9 928.0 11,172.3 4,437.0 $ 73,283.2 $ 138,656.5 $ 211,939.7 Fiscal Year 2006 Capital Budget Summary of Funding Sources ($000s) General Purpose Funds Grants and Contributions City Bond Funds Enterprise Funds Other Local Funds Non-City Funds Carryforward $ 4,504.8 28,164.1 21,599.8 7,416.1 11,538.4 60.0 New Funding $ 1,010.6 56,638.6 6,137.1 62,999.9 8,420.3 3,450.0 Total $ 5,515.4 84,802.7 27,736.9 70,416.0 19,958.7 3,510.0 $ 73,283.2 $ 138,656.5 $ 211,939.7 Total Changes from the Mayor and Council Approved Five-Year Capital Improvement Program On March 8, 2005, the Mayor and Council approved the Five-Year Capital Improvement Program for Fiscal Years 2006 through 2010. The total approved for Fiscal Year 2006 at that time was $221,101,700. Subsequently, the following changes to the Fiscal Year 2006 capital budget were made, bringing the total to $211,939,700: Department Change ($000s) Reason Changes from Approved CIP to Proposed Budget Fire $ 150.0 Correction to funding for the Support Maintenance Facility Parks and Recreation (12,481.0) Rescheduling of Pima County bond projects to match 2005 county bond sale; no reductions in total project costs Tucson City Golf 50.0 Revised funding source and amount for Silverbell project Environmental Services (546.2) Revised 1994 bond funds to reflect expenditure of funds in FY 2005 Transportation (13.9) Revised 1994 bond funds to reflect expenditure of funds in FY 2005 $ (12,841.1) F-1 Change ($000s) Department Reason Changes from Proposed Budget to Adopted Budget Tucson City Golf $ 610.0 Carryforward of FY 2005 funds Transportation 2,069.1 Carryforward of FY 2005 funds $ 2,679.1 Total $ (10,162.0) DEPARTMENT PROGRAMS The following section summarizes the recommended Fiscal Year 2006 department programs within each service area. Project listings for each department begin on page F-8. Neighborhood Services Projects in the Neighborhood Services category include those managed by Fire, Library, Neighborhood Resources, Parks and Recreation, Police, and Tucson City Golf. Fire. Fire's $3.6 million budget for Fiscal Year 2006 includes the following projects: construction of Station 22 (estimated completion date of June 2007), improvements to support facilities, and purchase of upgraded mobile data terminals for fire vehicles. Library. Two projects will be completed with Library's $0.4 million budget in Fiscal Year 2006: Main Library Plaza Improvements and the Martha Cooper Midtown Library and Learning Center. Neighborhood Resources. Back to Basics projects continue with $8.2 million in Fiscal Year 2006: $5.2 million in carryforward to complete previous year projects and $3 million in new funding. Parks and Recreation. Park's capital budget of $10.2 million in Fiscal Year 2006 provides for 25 park improvement projects, ranging from the construction of new facilities to the replacement of playground equipment. The four largest projects to be completed in Fiscal Year 2006 are the Lincoln Park/William Clements Center Expansion, Quincie Douglas Center Pool Facility, Reid Park Renovation, and El Pueblo Center Expansion. Police. Two projects, totaling $3.7 million, are being completed in Fiscal Year 2006: Land acquisition and facilities improvements, and construction of a new police substation. After Fiscal Year 2006, Police will have no funding for capital projects. Tucson City Golf. Two projects will be completed with the $2.2 million in Golf's capital budget: renovations at the Silverbell Golf Course and at the Trini Alvarez Golf Course. Environment and Development The Environment and Development category contains projects managed by the following departments: Development Services, Transportation, Utility Services-Environmental Services, and Utility Services-Tucson Water. Development Services. The $0.5 million in the Development Services Fiscal Year 2006 capital budget is to begin work on upgrading the department's computerized permitting system. The project will be completed in Fiscal Year 2007. Transportation: This department's capital budget for Fiscal Year 2006 totals $98.5 million in six program areas: Streets, Drainage, Street Lighting, Traffic Signals, Parking, and Public Transit. The three largest program areas are Streets at $46.1 million, Public Transit at $29.5 million, and Drainage at $16.7 million. The remaining three areas total $6.2 million: Street Lighting at $2 million, Traffic Signals at $4 million, and Parking at $0.2 million. F-2 Utility Services-Environmental Services. Twenty-nine projects totaling $8.7 million are included in the Environmental Services capital budget for Fiscal Year 2006. Investigation and remediation projects total $3.1 million in Fiscal Year 2006 and landfill improvement projects total $5.6 million. Environmental Services will be out of capital funds by the end of Fiscal Year 2007. Utility Services-Tucson Water. Tucson Water's capital budget for Fiscal Year 2006 totals $59.4 million: $46.7 million for the Potable Water System and $12.7 million for the Reclaimed Water System. Tucson Water's CIP includes the water revenue bond authorization approved by the voters in May 2005. Sixty-two percent, or $36.7 million, of the total for Fiscal Year 2006 is funded from that authorization. Strategic Initiatives The Strategic Initiatives category contains projects managed by the Tucson Convention Center. Tucson Convention Center. There is only one project in the Tucson Convention Center's Fiscal Year 2006 capital budget of $0.9 million: replacement of the facility's fire alarm system. Support Services The Support Services category contains projects managed by the Information Technology Department. Information Technology. There is only one project in Information Technology's Fiscal Year 2006 capital budget of $11.2 million: the Emergency Communications System, Phase I. This project would complement Pima County's communication project. Non-Departmental The Non-Departmental category contains projects budgeted as General Expense, because the projects are not associated with a specific department. General Expense. The Fiscal Year 2006 budget of $4.4 million provides for three projects: completion of the Hardesty/Midtown Multi-Service Facility, construction of the Pennington Street Garage, and purchase of new Web-based financial and human resources systems. TABLES Table I Table II Table III Capital Budget Summary by Department Capital Budget Summary by Funding Source Capital Budget Summary of Operating Budget Impacts F-3 TABLE I CAPITAL BUDGET SUMMARY BY DEPARTMENT Adopted Fiscal Year 2006 Carry Forward Service Area/Department Neighborhood Services Fire Library Neighborhood Resources Parks and Recreation Police Tucson City Golf Sub-Total Environment and Development Development Services Transportation Utility Services-Environmental Services Utility Services-Tucson Water Sub-Total $ $ 1,603,900 439,000 5,200,000 6,217,400 211,700 610,000 14,282,000 New Funding $ Total 1,997,500 -02,975,000 3,937,000 3,444,000 1,615,000 13,968,500 $ 3,601,400 439,000 8,175,000 10,154,400 3,655,700 2,225,000 28,250,500 -039,857,100 4,309,100 2,497,000 46,663,200 500,000 58,603,800 4,434,900 56,950,000 120,488,700 500,000 98,460,900 8,744,000 59,447,000 167,151,900 928,000 928,000 -0-0- 928,000 928,000 Support Services Information Technology Sub-Total 7,975,000 7,975,000 3,197,300 3,197,300 11,172,300 11,172,300 Non-Departmental General Expense 3,435,000 1,002,000 4,437,000 3,435,000 $ 73,283,200 1,002,000 138,656,500 4,437,000 211,939,700 Strategic Initiatives Tucson Convention Center Sub-Total Sub-Total Total F-4 $ $ TABLE II CAPITAL BUDGET SUMMARY BY FUNDING SOURCE Carry Forward Adopted Fiscal Year 2006 New Funding Total Fund Category/Fund General Purpose Funds General Fund Mass Transit Fund: General Fund Transfer Sub- Total $ 1,744,000 2,760,800 4,504,800 $ -01,010,600 1,010,600 $ 1,744,000 3,771,400 5,515,400 Grants and Contributions Capital Agreement Fund Capital Agreement Fund: PAG Capital Agreement Fund: Pima County Bonds Capital Agreement Fund: Pima County Contribution Community Development Block Grant Fund Federal Highway Administration Grants H.E.L.P. Loan Highway User Revenue Fund Highway User Revenue Fund: Contributions Highway User Revenue Fund: In-Lieu Fees Mass Transit Fund: Federal Grants Miscellaneous Non-Federal Grants Sub- Total 1,306,000 620,000 235,000 -02,200,000 -04,600,000 4,142,800 500,000 -013,868,000 692,300 28,164,100 -011,658,200 3,757,000 2,200,000 1,275,000 19,492,600 -05,302,000 1,225,000 600,000 11,128,800 -056,638,600 1,306,000 12,278,200 3,992,000 2,200,000 3,475,000 19,492,600 4,600,000 9,444,800 1,725,000 600,000 24,996,800 692,300 84,802,700 City Bond Funds 1994 General Obligation Bond Funds 1994 General Obligation Bond Funds - Interest 2000 General Obligation Bond Funds 2000 General Obligation Bond Funds - Interest 2000 Street and Highway Revenue Bond Funds Sub- Total 530,600 419,000 16,230,000 2,228,000 2,192,200 21,599,800 -080,000 5,522,100 -0535,000 6,137,100 530,600 499,000 21,752,100 2,228,000 2,727,200 27,736,900 Enterprise Funds 2000 Environmental Service Bonds 2000 Water Revenue Bond Funds Central Arizona Project Reserve Fund Environmental Services Fund: Reimbursement Future Water Revenue Bonds Golf Course Fund Golf Course Fund: Certificates of Participation Tucson Water Revenue and Operations Fund Water Revenue and Operations Fund: Grants Sub- Total 4,309,100 2,497,000 -0-0-0-0610,000 -0-07,416,100 3,684,900 -011,000 750,000 36,706,000 45,000 1,570,000 19,983,000 250,000 62,999,900 7,994,000 2,497,000 11,000 750,000 36,706,000 45,000 2,180,000 19,983,000 250,000 70,416,000 F-5 TABLE II CAPITAL BUDGET SUMMARY BY FUNDING SOURCE Carry Forward Adopted Fiscal Year 2006 New Funding Total Fund Category/Fund Other Local Funds General Fund: Certificates of Participation General Fund: Restricted TEAM: Certificates of Participation TEAM: Fees and Charges Sub- Total Non-City Funds Civic Contributions Fund Special Assessments Construction Fund Sub- Total Total $ 8,936,000 -02,500,000 102,400 11,538,400 -060,000 60,000 $ 73,283,200 F-6 $ 6,791,300 500,000 1,002,000 127,000 8,420,300 3,100,000 350,000 3,450,000 $ 138,656,500 $ 15,727,300 500,000 3,502,000 229,400 19,958,700 3,100,000 410,000 3,510,000 $ 211,939,700 TABLE III CAPITAL BUDGET SUMMARY OF OPERATING BUDGET IMPACTS Service Area/Department FY 2006 Neighborhood Services Fire Library Parks and Recreation Police Sub-Total 129,800 274,920 945,200 60,000 1,409,920 $ 1,092,740 291,420 1,641,850 120,000 3,146,010 1,172,000 1,223,000 187,000 2,582,000 1,455,400 1,856,000 187,000 3,498,400 476,100 490,400 476,100 $ 4,468,020 490,400 $ 7,134,810 $ 1,496,500 1,154,300 2,650,800 $ 3,226,990 1,201,100 4,428,090 17,700 274,920 292,620 254,300 291,420 545,720 1,223,000 187,000 1,410,000 1,856,000 187,000 2,043,000 114,600 118,000 114,600 $ 4,468,020 118,000 $ Environment and Development Transportation Utility Services-Environmental Services Utility Services-Tucson Water Sub-Total Non-Departmental General Expense Sub-Total Total Projected FY 2007 Source of Funds Summary General Purpose Funds General Fund Mass Transit Fund: General Fund Transfer Sub-Total Highway User Revenue Fund Library Fund: Pima County Contribution Sub-Total Enterprise Funds Environmental Services Fund Tucson Water Revenue and Operations Fund Sub-Total Other Local Funds TEAM: Fees and Charges Sub-Total Total F-7 $ 7,134,810 Five-Year Capital Improvement Program Fire Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Fire Station 22 Mobile Data Terminal Upgrades Support Facility Improvements Department Total Source of Funds Summary 1994 General Obligation Bond Funds 2000 General Obligation Bond Funds General Fund: Certificates of Participation $ -0770,000 833,900 $ 1,603,900 $ 1,847,500 -0150,000 $ 1,997,500 $ 1,847,500 770,000 983,900 $ 3,601,400 $ -01,847,500 150,000 $ 1,997,500 $ 530,600 303,300 770,000 $ 1,603,900 Department Total F-8 530,600 2,150,800 920,000 $ 3,601,400 Five-Year Capital Improvement Program Library Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Main Library Plaza Improvements Martha Cooper Midtown Library & Learning Center $ $ Department Total Source of Funds Summary 1994 General Obligation Bond Funds - Interest 2000 General Obligation Bond Funds $ $ Department Total F-9 239,000 200,000 439,000 $ 239,000 200,000 439,000 $ $ $ -0-0-0- $ -0-0-0- $ $ $ 239,000 200,000 439,000 239,000 200,000 439,000 Five-Year Capital Improvement Program Neighborhood Services Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Back to Basics Unallocated Department Total Source of Funds Summary Community Development Block Grant Fund General Fund Highway User Revenue Fund Department Total F-10 $ 5,200,000 $ 5,200,000 $ 2,975,000 $ 2,975,000 $ 8,175,000 $ 8,175,000 $ 2,200,000 1,000,000 2,000,000 $ 5,200,000 $ 1,275,000 -01,700,000 $ 2,975,000 $ 3,475,000 1,000,000 3,700,000 $ 8,175,000 Five-Year Capital Improvement Program Parks and Recreation Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Parks and Recreation - Parks Development Atturbury Wash Sanctuary Expansion Case Natural Resource Park Improvements Catalina High School Track and Field Lighting Christopher Columbus Park Eastside Senior Center Recreation Facility El Pueblo Center Expansion General Instruments Site Improvements Golf Links Sports Center Parking Improvements Greenway and Natural Resource Area Acquisition Himmel Park Irrigation Replacement Houghton Greenway Lighting System Improvements, Phase I Lincoln Park/William Clements Center Expansion Miscellaneous Parks Development/Renovations New Comfort Stations Pascua Neighborhood Center Improvements Performing Arts Center Playground Equipment Replacement Quincie Douglas Center Pool Facility Reid Park Renovation Reuse of Landfill Areas Rio Vista Park Expansion Riverview Park Rodeo Grounds Improvements Sub-Total $ Parks and Recreation - Zoo Improvements Reid Park Zoo School Sub-Total -0240,000 100,000 50,000 151,500 879,100 200,000 15,000 495,200 50,000 -0180,000 300,000 281,600 340,000 60,000 -0140,000 1,123,000 1,000,000 207,000 -0125,000 280,000 6,217,400 -0-0- Department Total Source of Funds Summary 1994 General Obligation Bond Funds - Interest 2000 General Obligation Bond Funds Capital Agreement Fund Capital Agreement Fund: Pima County Bonds Civic Contributions Fund Miscellaneous Non-Federal Grants Department Total 150,000 -0-0-0-0-0-0-0-0-0405,000 80,000 -0-0-0-052,000 -0-0-0-0150,000 -0-0837,000 $ 150,000 240,000 100,000 50,000 151,500 879,100 200,000 15,000 495,200 50,000 405,000 260,000 300,000 281,600 340,000 60,000 52,000 140,000 1,123,000 1,000,000 207,000 150,000 125,000 280,000 7,054,400 $ 6,217,400 3,100,000 3,100,000 $ 3,937,000 3,100,000 3,100,000 $ 10,154,400 $ $ $ 180,000 4,551,400 1,123,000 235,000 -0128,000 $ 6,217,400 F-11 $ 80,000 -0-0757,000 3,100,000 -0$ 3,937,000 260,000 4,551,400 1,123,000 992,000 3,100,000 128,000 $ 10,154,400 Five-Year Capital Improvement Program Police Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Land Acquisition and Facilities Improvement Police Substation $ $ Department Total Source of Funds Summary 2000 General Obligation Bond Funds General Fund: Certificates of Participation $ $ Department Total F-12 211,700 -0211,700 $ -03,444,000 $ 3,444,000 $ 211,700 -0211,700 $ $ -03,444,000 $ 3,444,000 211,700 3,444,000 $ 3,655,700 211,700 3,444,000 $ 3,655,700 Five-Year Capital Improvement Program Tucson City Golf Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Silverbell Golf Course Improvements Trini Alvarez-El Rio First Tee Renovations $ $ Department Total Source of Funds Summary Golf Course Fund Golf Course Fund: Certificates of Participation $ $ Department Total F-13 610,000 -0610,000 $ 1,570,000 45,000 $ 1,615,000 $ 2,180,000 45,000 $ 2,225,000 -0610,000 610,000 $ $ 45,000 1,570,000 $ 1,615,000 45,000 2,180,000 $ 2,225,000 Five-Year Capital Improvement Program Development Services Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Computerized Permitting System Upgrade Department Total Source of Funds Summary General Fund: Restricted Department Total F-14 $ $ -0-0- $ $ 500,000 500,000 $ $ 500,000 500,000 $ $ -0-0- $ $ 500,000 500,000 $ $ 500,000 500,000 Five-Year Capital Improvement Program Transportation Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Transportation - Streets 6th Avenue/18th Street Intersection Improvements Alternate Modes Improvements Anklam Road Traffic Safety Improvements Barraza-Aviation Parkway: 4th Avenue Underpass Barraza-Aviation: Downtown, Phase III Broadway Boulevard Right-Turn and Transit Lane Broadway Boulevard: Euclid to Campbell Bus-Related Roadway Improvements Downtown Pedestrian Implementation Grant and Craycroft Intersection Improvements Harrison Road: Speedway to Old Spanish Trail Highland Avenue Bike and Pedestrian Improvements Kino Parkway Overpass at 22nd Street Miscellaneous Developer-Funded Improvements Miscellaneous Street Improvements Mountain Avenue: Roger Road to Ft. Lowell Road Old Pueblo Track Extension Park and Euclid Bicycle and Pedestrian Bridge Pedestrian Improvements Road Resurfacing, Restoration, and Rehabilitation South 10th Avenue Revitalization South 4th Avenue Streetscape Enhancement Stone Ave: Speedway/Drachman Improvements Stone Avenue: 6th Street to Speedway Stone Avenue: Pedestrian Safety Improvements Tyndall Avenue Enhancements Sub-Total $ Transportation - Drainage Alamo Wash Drainage Improvements Arroyo Chico Drainage Improvements Columbus Wash Drainage Relief, Phase II Jefferson Park Drainage Improvements Park Avenue Detention Basin Silverbell Drainage Improvements Sub-Total F-15 70,000 -0-0-0-0500,000 -0-0-01,300,000 4,600,000 157,000 -0-0-01,500,000 -0-0354,800 -0-093,300 520,000 240,000 12,500 -09,347,600 $ 1,500,000 951,000 450,000 10,488,200 500,000 500,000 1,500,000 325,000 200,000 -08,293,000 940,000 1,500,000 1,200,000 1,050,000 -025,000 1,295,000 -03,046,000 479,000 343,000 -01,367,000 215,600 529,000 36,696,800 $ 1,570,000 951,000 450,000 10,488,200 500,000 1,000,000 1,500,000 325,000 200,000 1,300,000 12,893,000 1,097,000 1,500,000 1,200,000 1,050,000 1,500,000 25,000 1,295,000 354,800 3,046,000 479,000 436,300 520,000 1,607,000 228,100 529,000 46,044,400 100,000 5,299,300 2,500,000 830,000 832,300 1,300,000 10,861,600 1,600,000 200,000 3,574,600 -0500,000 -05,874,600 1,700,000 5,499,300 6,074,600 830,000 1,332,300 1,300,000 16,736,200 Five-Year Capital Improvement Program Transportation Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Transportation - Street Lighting 1st Avenue: Prince Road to River Road Electrical Systems Upgrades Neighborhood District Lighting Improvements Park Avenue Lighting: Valencia to Irvington Sub-Total $ 747,900 -0-0714,100 1,462,000 -0150,000 350,000 -0500,000 Transportation - Traffic Signals Communication System Improvements Intelligent Transportation System: ER Link Living Transportation Laboratory Machine Vision Video Detection System Upgrades School Flasher Construction Tanque Verde/Paseo Rancho Esperanza Signal Traffic Signal and Control Equipment Traffic Signal Conversions Sub-Total -0-0-0354,400 366,000 -0-0-0720,400 1,117,000 1,219,000 133,000 -0-0250,000 337,000 210,000 3,266,000 1,117,000 1,219,000 133,000 354,400 366,000 250,000 337,000 210,000 3,986,400 Transportation - Parking Garages City/State Parking Garage Improvements Main Library Parking Garage Improvements Sub-Total 13,300 89,100 102,400 93,900 33,100 127,000 107,200 122,200 229,400 Transportation - Public Transit ADA Transit Enhancements Automated Vehicle Location Kiosks Compressed Natural Gas Facility Contingency Local Match for Future Grants Expansion Vans for Van Tran Replacement Buses for Sun Tran Replacement Vans for Van Tran Ronstadt Transit Center Sun Tran Maintenance Facility, Phase II Transit Alternatives Analysis Transit Enhancement Program Transit Headquarters Improvements Udall Center Transit Facility Sub-Total -0220,000 319,000 -0961,000 10,076,400 3,824,600 -0400,000 410,000 177,000 664,500 310,600 17,363,100 491,500 -0-0244,000 -04,412,700 1,814,900 2,912,600 -0505,700 112,400 1,645,600 -012,139,400 491,500 220,000 319,000 244,000 961,000 14,489,100 5,639,500 2,912,600 400,000 915,700 289,400 2,310,100 310,600 29,502,500 $ 39,857,100 $ 58,603,800 $ 98,460,900 Department Total F-16 $ 747,900 150,000 350,000 714,100 1,962,000 Five-Year Capital Improvement Program Transportation Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Source of Funds Summary 2000 General Obligation Bond Funds 2000 General Obligation Bond Funds - Interest 2000 Street and Highway Revenue Bond Funds Capital Agreement Fund Capital Agreement Fund: PAG Capital Agreement Fund: Pima County Bonds Capital Agreement Fund: Pima County Contribution Federal Highway Administration Grants H.E.L.P. Loan Highway User Revenue Fund Highway User Revenue Fund: Contributions Highway User Revenue Fund: In-Lieu Fees Mass Transit Fund: Federal Grants Mass Transit Fund: General Fund Transfer Miscellaneous Non-Federal Grants Special Assessments Construction Fund TEAM: Fees and Charges Department Total $ 10,963,600 1,300,000 2,192,200 183,000 620,000 -0-0-04,600,000 2,142,800 500,000 -013,868,000 2,760,800 564,300 60,000 102,400 $ 39,857,100 F-17 $ 3,674,600 -0535,000 -011,658,200 3,000,000 2,200,000 19,492,600 -03,602,000 1,225,000 600,000 11,128,800 1,010,600 -0350,000 127,000 $ 58,603,800 $ 14,638,200 1,300,000 2,727,200 183,000 12,278,200 3,000,000 2,200,000 19,492,600 4,600,000 5,744,800 1,725,000 600,000 24,996,800 3,771,400 564,300 410,000 229,400 $ 98,460,900 Five-Year Capital Improvement Program Utility Services-Environmental Services Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Environmental Management Broadway-Pantano Remediation Site, Phase I City Landfill Investigations, Phase I Cottonwood Landfill Project, Phase I Harrison Landfill Remediation, Phase I Los Reales Landfill Remediation, Phase I Los Reales Landfill Southwest Remediation Price Service Center Remediation, Phase I Prudence Landfill Vadose Zone Remediation Silverbell Jail Annex Landfill, Phase I Tumamoc Landfill Investigation Sub-Total $ Environmental Services Closed Landfill Gas Mitigation, Phase I Closed Landfill Improvements, Phase I Irvington Landfill Closure, Phase I Los Reales Intermediate Closure, Phase I Los Reales Landfill Buffer Improvements Los Reales Landfill Drainage, Phase I Los Reales Landfill Facilities, Phase I Los Reales Landfill Future Cells, Phase I Los Reales Landfill Gas Control, Phase I Los Reales Landfill GPS System Los Reales Landfill Perimeter Litter Control Los Reales Landfill Self-Hauler Facility Los Reales Landfill Westside Closure Mullins Landfill Closure Mullins Landfill Gas Mitigation Mullins Landfill Goundwater Remediation Mullins Landfill Stormwater Controls Tumamoc Landfill Closure, Phase I Sub-Total Department Total Source of Funds Summary 2000 Environmental Service Bonds Environmental Services Fund: Reimbursement Department Total F-18 246,800 -020,000 -0340,000 80,000 8,600 500,000 260,000 -01,455,400 $ 100,000 228,000 -071,000 -0-0600,000 -0567,800 120,000 1,686,800 $ 346,800 228,000 20,000 71,000 340,000 80,000 608,600 500,000 827,800 120,000 3,142,200 -0-0702,500 10,000 -087,800 10,000 390,500 10,000 310,000 -0-0298,600 665,000 350,000 -019,300 -02,853,700 $ 4,309,100 50,000 50,000 200,000 -0384,000 -0-0-0-0-0300,000 75,000 392,400 100,000 -0618,000 383,700 195,000 2,748,100 $ 4,434,900 50,000 50,000 902,500 10,000 384,000 87,800 10,000 390,500 10,000 310,000 300,000 75,000 691,000 765,000 350,000 618,000 403,000 195,000 5,601,800 $ 8,744,000 $ 4,309,100 -0$ 4,309,100 $ 3,684,900 750,000 $ 4,434,900 $ 7,994,000 750,000 $ 8,744,000 Five-Year Capital Improvement Program Utility Services-Tucson Water Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Tucson Water - Potable Water System Tucson Water - Potable Source Development Drill Production Wells New Well Equipping Pressure Tank Replacement Production Well Sites Santa Rita Bel-Air Wellfield Upgrades (Well H-2) Wellfield Upgrades Sub-Total $ -0-0-0-0-0-0-0- $ 800,000 715,000 450,000 75,000 175,000 113,000 2,328,000 $ 800,000 715,000 450,000 75,000 175,000 113,000 2,328,000 Tucson Water - Recharge and Recovery CAVSARP Recharge Expansion South Avra Valley Storage and Recovery Project Sub-Total -0-0-0- 495,000 1,000,000 1,495,000 495,000 1,000,000 1,495,000 Tucson Water - Potable Storage 22nd Street Reservoir Modifications (Vault) Devine Reservoir Vault And Piping Modifications Diamond Bell Ranch I Zone Reservoir and Booster Disinfection Equipment Upgrades Reservoir Roof Replacements Southeast C Zone Reservoir Southeast E Zone Reservoir Thornydale/Tangerine C Zone Reservoir Sub-Total -0-0-0-0-0-0-0-0-0- 972,000 192,000 660,000 530,000 378,000 307,000 2,100,000 1,027,000 6,166,000 972,000 192,000 660,000 530,000 378,000 307,000 2,100,000 1,027,000 6,166,000 Tucson Water - Potable Pumping Plant Anklam B-C Zone Booster Station Modifications Clearwell Pressure Regulating Valve Stations Diamond Bell Ranch G-I Zone Booster Modification Fireflow Booster Upgrades Hayden-Udall D-B Pressure Regulating Valve I-1 Well and Booster Modifications La Cholla A-C Zone Booster Station Modifications Las Palomas B-C Booster Station Modifications Mark Road Booster Station Modifications Pumping Facility Modifications Sierrita/Cherokee Booster Improvement W-2 Well And Booster Modifications Sub-Total -0-0-0-0-0-0-0-0-0-0-0-0-0- 300,000 400,000 170,000 50,000 256,000 25,000 92,000 211,000 60,000 450,000 30,000 150,000 2,194,000 300,000 400,000 170,000 50,000 256,000 25,000 92,000 211,000 60,000 450,000 30,000 150,000 2,194,000 F-19 Five-Year Capital Improvement Program Utility Services-Tucson Water Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Tucson Water - Potable Transmission Aviation and Third Avenue Manholes Transmission Avra Valley Blending Transmission Main Avra Valley Transmission Main Augmentation Cathodic Protection for Critical Pipelines Clearwell/Columbus Manhole Improvements Corrosion Evaluation and Repair Palo Verde Overpass 16-inch Slipline Pipeline Protection: Acoustic Monitoring Pipeline Protection: Manhole Upgrades Santa Rita Bel Air Transmission Main (Well H-2) South Avra Valley Raw Water Delivery Pipeline Southeast E Zone Transmission Main Upgrade Corrosion Test Stations Sub-Total $ -0-0-0-0-0-0-0-0-0-0-0-0-0-0- $ 250,000 1,600,000 225,000 1,000,000 700,000 25,000 29,000 100,000 210,000 2,187,000 1,527,000 3,140,000 50,000 11,043,000 $ 250,000 1,600,000 225,000 1,000,000 700,000 25,000 29,000 100,000 210,000 2,187,000 1,527,000 3,140,000 50,000 11,043,000 Tucson Water - Potable Distribution Chip Seal Main Replacements Emergency Main Replacement Extensions for New Services On-Call Valve Replacement Program Payments to Developers for Oversized Systems Peppertree Settlement Quadrant Main Replacements Review Developer-Financed Potable Projects Road Improvement Main Replacements Routine Main Replacements Sub-Total -0-0-0-0-0-0-0-0-0-0-0- 25,000 300,000 10,000 300,000 100,000 300,000 1,015,000 850,000 3,013,000 400,000 6,313,000 25,000 300,000 10,000 300,000 100,000 300,000 1,015,000 850,000 3,013,000 400,000 6,313,000 Tucson Water - Potable New Services Fire Services Water Services Sub-Total -0-0-0- 1,500,000 1,210,000 2,710,000 1,500,000 1,210,000 2,710,000 Tucson Water - Potable General Plant Eastside Maintenance Facility Facility Improvements - General Facility Safety and Security Improvements Facility Security Grant Geographic Information System La Entrada Improvements La Entrada Structure Remedy Meter Upgrade and Replacement Program -0-0-0-0-0-0-0-0- 800,000 100,000 738,000 250,000 106,000 900,000 270,000 1,890,000 800,000 100,000 738,000 250,000 106,000 900,000 270,000 1,890,000 F-20 Five-Year Capital Improvement Program Utility Services-Tucson Water Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name $ Miscellaneous Land and Right-of-Way Acquisitions SCADA Communications Upgrade SCADA System Improvements Tucson Water Document Management Sub-Total -0-0-0-0-0- $ 10,000 150,000 700,000 300,000 6,214,000 $ 10,000 150,000 700,000 300,000 6,214,000 Tucson Water - Potable Treatment Hayden-Udall Improvements, Phase II Technical Drive Improvements Sub-Total -0-0-0- 2,457,000 400,000 2,857,000 2,457,000 400,000 2,857,000 Tucson Water - Potable Process Control Control Panel Replacements Photovoltaic Monitoring Control Sub-Total -0-0-0- 369,000 20,000 389,000 369,000 20,000 389,000 -0-0-0- 5,000,000 5,000,000 $ 46,709,000 5,000,000 5,000,000 $ 46,709,000 -0-0- $ 1,446,000 1,446,000 $ 1,446,000 1,446,000 Tucson Water - Reclaimed Storage La Paloma Reservoir Expansion Reclaimed Storage Projects - General Roger Road Reservoir Expansion Sunrise Reclaimed Reservoir Sub-Total -0-0-0-0-0- 173,000 30,000 940,000 78,000 1,221,000 173,000 30,000 940,000 78,000 1,221,000 Tucson Water - Reclaimed Pumping Plant Mountain View Reclaimed Reservoir and Booster Reclaimed Pressure Reducing Valves Reclaimed Pumping Facility Modifications Reclaimed Pumping Plant Projects- General Roger Road Plant Booster Expansion Sub-Total -0-0-0-0-0-0- 249,000 10,000 10,000 55,000 1,200,000 1,524,000 249,000 10,000 10,000 55,000 1,200,000 1,524,000 Tucson Water - Capitalized Expense Capitalized Expense Sub-Total $ Total Tucson Water - Potable Water System Tucson Water - Reclaimed Water System Tucson Water - Reclaimed Source Development Reclaimed Storage and Recovery Sub-Total $ F-21 Five-Year Capital Improvement Program Utility Services-Tucson Water Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Tucson Water - Reclaimed Transmission Campbell/Drexel Reclaimed Transmission Main Forty-Niner's Reclaimed Laterals Forty-Niners Reclaimed Transmission Main Norris/Main Avenue Reclaimed Transmission Main Sub-Total $ -0-02,497,000 -02,497,000 $ 3,640,000 664,000 653,000 100,000 5,057,000 $ 3,640,000 664,000 3,150,000 100,000 7,554,000 Tucson Water - Reclaimed Distribution City of Tucson Parks Main Extensions Developer-Financed Reclaimed Projects Sunnyside School District Main Extensions System Enhancements: Reclaimed Tucson Unified School District Main Extensions Sub-Total -0-0-0-0-0-0- 55,000 60,000 55,000 178,000 55,000 403,000 55,000 60,000 55,000 178,000 55,000 403,000 Tucson Water - Reclaimed New Services New Metered Services Sub-Total -0-0- 50,000 50,000 50,000 50,000 Tucson Water - Reclaimed Treatment Roger Road Reclaimed Water Treatment Plant Roger Road Treatment Plant Clarifier Additions Sub-Total -0-0-0- 50,000 400,000 450,000 50,000 400,000 450,000 Tucson Water - Reclaimed Process Control Control Panels: Reclaimed System Sub-Total -0-0- 90,000 90,000 90,000 90,000 2,497,000 10,241,000 12,738,000 $ 2,497,000 $ 56,950,000 $ 59,447,000 $ 2,497,000 -0-0-0-0$ 2,497,000 $ $ 2,497,000 11,000 36,706,000 19,983,000 250,000 $ 59,447,000 Total Tucson Water - Reclaimed Water System Department Total Source of Funds Summary 2000 Water Revenue Bond Funds Central Arizona Project Reserve Fund Future Water Revenue Bonds Tucson Water Revenue and Operations Fund Water Revenue and Operations Fund: Grants Department Total F-22 -011,000 36,706,000 19,983,000 250,000 $ 56,950,000 Five-Year Capital Improvement Program Tucson Convention Center Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Fire Alarm Replacement Department Total Source of Funds Summary 2000 General Obligation Bond Funds - Interest Department Total F-23 $ $ 928,000 928,000 $ $ -0-0- $ $ 928,000 928,000 $ $ 928,000 928,000 $ $ -0-0- $ $ 928,000 928,000 Five-Year Capital Improvement Program Information Technology Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Emergency Communications System, Phase I Department Total Source of Funds Summary General Fund: Certificates of Participation Department Total F-24 $ 7,975,000 $ 7,975,000 $ 3,197,300 $ 3,197,300 $ 11,172,300 $ 11,172,300 $ 7,975,000 $ 7,975,000 $ 3,197,300 $ 3,197,300 $ 11,172,300 $ 11,172,300 Five-Year Capital Improvement Program General Expense Adopted Fiscal Year 2006 Carry New Forward Funding Total Program Area/Project Name Hardesty Multi-Service Center Pennington Street Parking Garage Web-Based Financial and Human Resource Systems Department Total Source of Funds Summary General Fund General Fund: Certificates of Participation TEAM: Certificates of Participation $ 191,000 2,500,000 744,000 $ 3,435,000 $ -01,002,000 -0$ 1,002,000 191,000 3,502,000 744,000 $ 4,437,000 $ $ $ 744,000 191,000 2,500,000 $ 3,435,000 Department Total F-25 -0-01,002,000 $ 1,002,000 $ 744,000 191,000 3,502,000 $ 4,437,000 F-26 CITY STRATEGIC PLAN The City of Tucson continues to move forward in its effort to become a more strategic, results-oriented organization. The process began in the mid-1990s with the introduction of performance measurement and the Livable Tucson program, and continues in Fiscal Years 2005 and 2006 with a focus on the City Strategic Plan. To be more efficient and effective in delivering quality services to residents, the City of Tucson follows a fourstep strategic approach: • Use Mayor and Council strategic priorities to guide City of Tucson priorities, • Align the city organization to effectively carry out these priorities, • Fund programs and projects which further these priorities, and • Measure the results of our work and use the information to improve services. Performance Measurement: The Journey Begins In the mid-1990s, the city began measuring its performance by developing numerous “Recurring Performance Measures” for each division of the organization. These measures were reported on a quarterly basis and were included in the annual budget document. In the late 1990s, the city’s performance measurement effort was refined by distinguishing between outputs and outcomes, and reducing the number of measures by identifying only the most important, or key, measures of performance. A Results-Oriented Organization: The Ultimate Goal Performance measurement was a starting point for the City of Tucson in adopting a more results-oriented, strategic approach to providing services to residents. While the City Strategic Plan has allowed the city to move forward, additional steps still need to be taken. To better equip the organization to effectively carry out priorities, departments and offices are aligned into four service areas: • Support Services • Neighborhood Services • Environment and Development • Strategic Initiatives These groupings facilitate departments and offices working in partnership to achieve city priorities. The alignment also allows the organization to function with a more meaningful performance measurement system, one that connects across departments, and helps measure results at all levels of the organization—from divisions down to employees. In a properly aligned organization, all efforts lead upward toward Mayor and Council priorities and community values and interests. Citizen Survey Livable Tucson provided an initial foundation for community values and interests. However, our community is ever changing and additional sources of data are needed to ensure that our priorities are reflective of the community. One source of community data came from a citizen survey the City of Tucson conducted during 2001 in partnership with the International City/County Management Association (ICMA). In 2004, the city engaged in its second citizen survey utilizing a similar survey instrument. Gathering feedback from a broad section of Tucson residents on a routine basis is an important tool to gauge community perceptions of our city. Results from the survey are being used by the city council and the city organization to assess current practices and help set future priorities. G-1 City Strategic Plan (Continued) Focus Areas and the Strategic Planning Process In December 2001, the Mayor and Council adopted six focus areas to guide improvements and development efforts within the strategic planning process. Focus areas allow government units to concentrate management initiatives, projects, and strategies, direct training of employees, and use resources effectively. The six focus areas identified by the Mayor and Council are: Transportation, Downtown, Growth, Neighborhoods, Economic Development, and Good Government. The Adopted Strategic Planning process has been an effective tool for the city, documenting council priorities and setting direction for staff. The City of Tucson’s Strategic Plan designated six long-term areas of focus, set forth strategies to improve results in each of those areas, and identified projects that are important for making progress towards those goals. As we look back at the original City Strategic Plan, adopted by the Mayor and Council in the spring of 2002, significant progress has been achieved. The Year-End Review for Fiscal Years 2003 and 2004 can be found at http://www.tucsonaz.gov/hottopics/stratplan.html. In February and March of 2004, the Mayor and Council held two retreats to revisit the city’s priorities. At that time the governing body suggested many new projects and other priorities were identified during the budget discussions. Using this information, the Fiscal Years 2005 and 2006 Strategic Plan was created to accurately reflect priorities for the coming years. Within each focus area, the Mayor and Council adopted a set of strategies and critical priority projects. Taken collectively, the focus area projects set the workplan for the organization. The City Strategic Plan directs the city’s limited resources so that they further the Mayor and Council’s policy directions and have practical results in the shortterm, as well as significant, long-term impact on the community. The City Strategic Plan can be found on the city’s Web site at http://www.tucsonaz.gov/hottopics/csp2.html. G-2 CITY STRATEGIC PLAN FOCUS AREAS AND STRATEGIES Transportation 1. Seek and obtain funding, and technological, informational, operational and other types of resources necessary to improve the transportation system. 2. Provide leadership, in collaboration with other agencies within the region, to address local and regional transportation system needs. 3. Develop more effective transportation systems that support alternative land use patterns and lead to a more efficient travel system. 4. Employ Community Character and Design policies in transportation projects. Downtown 1. Aggressively manage downtown’s redevelopment through partnering efforts with public and private organizations and individuals active in the downtown. 2. Provide a highly attractive urban center focused on the proposed entertainment experience area on Congress Street from Church Avenue to 4th Avenue, linked with the Tucson Convention Center and its adjoining proposed new Civic Plaza, Science Center and Arena. 3. Leverage private leadership and investment in downtown through targeted public investment. Growth 1. Grow smarter in newly developing areas. This includes providing the capital and infrastructure planning needed to ensure the orderly and sustainable growth of the community. 2. Reinvest in the central city. Opportunities for investment and redevelopment in inner-city areas need to be understood and achievable implementation strategies need to be developed. The need for investment in aging infrastructure must be addressed through the City’s capital improvement program. 3. Protect Tucson’s character through good design. We must understand the history of our built environment, and provide achievable solutions to correct existing deficiencies, and ensure that past mistakes are not repeated. 4. Improve services and infrastructure to address the demands of a growing community. The costs associated with growth needs to be understood for appropriate capital improvements planning and budgeting. This includes funding strategies, such as impact fees, community facilities districts, county and state funding and other sources. New development must finance its fair share of capital costs. 5. Address the impacts of an aging housing stock and develop programs to assist with maintenance and replacement needs. Neighborhoods 1. Community Safety and Citizen Participation - Ensure community safety by improving police and fire staffing levels and developing programs to support them. Establish better communication between government and constituents to improve service delivery and citizen participation. 2. The Built Environment – Invest public funding and encourage private investment through partnerships to enhance the appearance and livability of Tucson’s neighborhoods. Continue restoration of public funding to complete or initiate needed infrastructure such as sidewalks, lighting, and public buildings and facilities. 3. The Natural Environment – Respect and preserve our natural resources by investing in parks, trails and open space. Economic Development 1. Foster a strong, diversified economy by encouraging the creation, attraction, and retention of businesses that provide knowledge-based, high-quality employment opportunities for a prepared and successful workforce base. 2. Improve community infrastructure to support and encourage economic expansion and opportunity in a global marketplace. 3. Increase the Mexican tourism economic impact on the region through strategic marketing efforts and partnerships. G-3 City Strategic Plan Focus Areas and Strategies (Continued) Good Government 1. Improved Customer Services – by positioning the City to provide the highest level of customer service to city residents and the community at large. 2. Prepared Workforce – enable and support the development of a prepared and successful employee workforce that is aligned with organizational priorities. 3. Fiscal Responsibility – optimize the streamlining of organizational processes to ensure quality services and fiscal responsibility. 4. Expand Use of Technology – by capitalizing on technology to improve service and increase efficiency, ensuring public and employee safety, exercising appropriate environmental stewardship and providing greater information access. 5. Strengthen Partnerships – by building a strategic network of partnerships that aim at bettering community life, eliminating redundant services and stretching the value of the taxpayer’s dollars. G-4 PROVIDED FOR INFORMATION PURPOSES; NOT PART OF THE CITY OF TUCSON BUDGET. MISSION STATEMENT: To create a vital downtown that expresses and nurtures Tucson’s unique natural landscape, cultural heritage, rich history, and community values. OVERVIEW In 1999, Tucson and South Tucson voters approved the Rio Nuevo Multipurpose Facilities District and established a tax increment financing (TIF) mechanism to fund economic development downtown. The vision for Rio Nuevo is to create a vital city center that expresses Tucson’s unique natural landscape, cultural heritage, and community values. Rio Nuevo will create a solid foundation on which both residents and visitors can experience the riches of our community’s heritage. Its residential and commercial development opportunities will create a vibrant core of new life in the heart and future of Tucson. Financing for Rio Nuevo is made up of the following: • Incremental portion of state sales tax revenues generated within the District’s geographical boundaries ($12.6 million received to date); • City matching funds for the state sales tax revenue; and • Private investment funding (commitments of $569 million as of July 2005). State sales tax funds will be collected from the Arizona Department of Revenue over a ten-year period that began on July 1, 2003. It is projected that over the ten-year life of the District, at least $125 million of state sales tax will be made available to Rio Nuevo. In the end, success will be measured not by the strategic public investments, but rather the amount of leverage by private sector investments. More information about Rio Nuevo and Downtown Tucson revitalization can be obtained by visiting the Rio Nuevo Web site at www.tucsonaz.gov/rionuevo. HIGHLIGHTS The past year saw many accomplishments for Rio Nuevo including: • • • • • • • • Historic Depot Restoration Court/Meyer Housing Rio Nuevo Master Plan Update Acquisition of the Rialto Historic Theatre El Presidio Adobe Structure Stabilization Site Preparation for the Post at Kolbe Square Jacome Plaza Redesign • • • H-1 Development rights awarded for Presidio and Congress Blocks Arena Design/Build and Feasibility Teams selected Phase I funding for Origins approved Design Team for Civic and Cultural Plazas selected RIO NUEVO Current Revitalization Goals for Downtown: FY 2006 The East End on Congress Street Congress Streetscape Complete master plan and begin implementing recommendations. Depot Plaza Complete design of 168 units of housing. Fourth Avenue Underpass Fox Theatre Restoration Begin construction on new underpass to include trolley tracks, bike lanes and wheelchair accessible sidewalks, and refurbish the historic underpass with improved lighting, decorative paving and restrict to pedestrian use. Landscape plazas at both ends of the project. Complete restoration of 27,000 sq. ft., 1,200 seat historic theatre. Pennington Street Garage Complete construction of 750 parking spaces and restaurant/office build-out. Rialto Block Rialto Theatre Restoration Begin remodeling 16 apartments, building infrastructure and restoring Congress/5th Avenue commercial façade. Complete renovations of 11,000 sq. ft. historic theatre. The Post at Kolbe Square Begin construction of 60 condominiums and 12,000 sq. ft. of first floor retail space. Warehouse Arts District Begin implementation of Master Plan. Presidio Presidio Terrace Complete design of 60 unit multi-story housing with first floor retail space. Tucson Presidio Reconstruction Complete design for the reconstruction of the Presidio including watchtower, barracks, ammunition building and interpretive displays. Civic Plaza in the Convention District Arena Complete feasibility analysis and begin design. Civic Plaza/Parking Structure Schematic design for Civic Plaza and parking garage. University of Arizona Science Center The West Side Begin design of $100+ million multi-purpose center spanning Interstate-10 and Santa Cruz River. Arizona Historical Society Complete feasibility study for relocation to Rio Nuevo. Arizona State Museum Complete feasibility study for relocation to Rio Nuevo. Cultural Plaza Schematic design. Tucson Origins Heritage Park Complete transit business relocation; design and begin constructing infrastructure. Private Development Academy Lofts Armory Park del Sol Complete historic renovation of 50 unit rental property. Continue sales and construction of 93 unit subdivision. Clarion Hotel Redevelopment Complete adaptive re-use feasibility study and begin design. Franklin Court Complete construction of 7 townhouses. Ice House/Barrio Metallico Complete construction on 51 loft units. La Entrada Luxury Apartments Complete 66 unit addition. Mercado District of Menlo Park Complete model homes for 260 unit residential development with retail and commercial space on Congress Street. Paseo Estrella Complete model homes and begin sales of 104 unit development. Radisson Hotel Redevelopment Complete feasibility analyses for mixed use and redevelopment. H-2 RIO NUEVO Transportation Infrastructure Ronstadt Transit Center and Greyhound Transit Analysis Stevens Extension Complete relocation study of Greyhound and Ronstadt Transit Center facilities. Establish a locally preferred alternative for connecting major activity centers from the University of Arizona to Rio Nuevo west of Interstate-10. Identify preferred alternative route for Barraza-Aviation Parkway interim by-pass. St. Mary's Road: Interstate-10 to Begin design phase for west end of the Barraza-Aviation Parkway design. Church New Development Identify and promote vacant and underutilized publicly and privately owned real estate for redevelopment. Add 500 new residential units to the downtown marketplace. Add 25,000 square feet of new retail to the downtown marketplace. Implement Parking Master Plan. Complete long-range commercial and residential market forecasts. FISCAL YEAR 2006 BUDGET The Fiscal Year 2006 budget includes a capital budget of $44.6 million and an operating budget of $2.21 million. In addition, the District is responsible for servicing debt in the amount of $3.7 million in the coming fiscal year. This debt service payment is returned to the District through rental income from the City of Tucson’s use of the Tucson Convention Center. The District’s anticipated operating and capital budget funds will come from state tax increment funding during Fiscal Year 2006. The staff of 4.75 full-time equivalent positions is supplemented by city staff temporarily assigned to Rio Nuevo. The District’s Board of Directors adopted the biennial budget in June 2004. RIO NUEVO CAPITAL, OPERATING, AND DEBT SERVICE BUDGETS FY 2005 FY 2006 CAPITAL BUDGET East End Fox Theatre - Construction Bank One Parking Lot Acquisition Congress Streetscape Warehouse District Design of Toole Streetscape Infrastructure (East) Design of Streetscape Construction Thrifty Block - Demolition 44 North Stone Renovation Rialto Block Development Depot Plaza - Design Trolley/Transit - Design, Start Construction H-3 $ 1,300,000 -0-0- $1,000,000 800,000 500,000 100,000 100,000 50,000 200,000 750,000 -01,500,000 30,000 200,000 -0-0-01,000,000 250,000 -01,100,000 RIO NUEVO Capital Budget (Continued) FY 2005 Civic Plaza Arena Gateway/Greenway Planning Drill Track/Rail Line - Track Removal Civic Plaza/Garage Design Construction Land Acquisition University of Arizona Science Center West Side Archaeology - Recovery, Clearance Arizona Historical Society Arizona State Museum Citizen Auto Stage - Relocation Santa Cruz River Park - Design Infrastructure (West) - Design, Construction Landfill - Remediation Cultural Plaza/Garage - Design FY 2006 -0- 2,000,000 30,000 200,000 -0-0- 100,000 -0-0-0- 1,750,000 4,000,000 3,500,000 20,000,000 200,000 -0-0750,000 -0200,000 800,000 100,000 1,000,000 100,000 100,000 -050,000 1,000,000 200,000 500,000 -0- 1,600,000 -0-0100,000 2,000,000 1,500,000 50,000 -0$ 6,610,000 500,000 $ 44,600,000 Personal Services* Professional Services Commodities/Equipment Total Operating $ 551,000 580,000 21,000 $ 1,152,000 $ Total Capital and Operating $ 7,762,000 $ 46,815,000 Debt Service – Tucson Convention Center** $ 3,704,000 $ 3,703,680 Total Capital, Operating, and Debt Service $ 11,466,000 $ 50,518,680 Other Origins Heritage Park - Phase I (Design and Construction of the Presidio) Presidio Terrace Parking Garage Cushing/Simpson Culvert Entitlements - Plats, Zoning, Planned Area Development for Arena, West Congress, and Science Center Street Circulation Total Capital OPERATING BUDGET 666,000 1,527,000 22,000 $ 2,215,000 DEBT SERVICE *Budget includes salaries charged to Rio Nuevo from other city departments. **Debt service payments on the financing of the Tucson Convention Center (TCC) are returned to the District in the form of rental payments from the TCC. H-4 GLOSSARY OF TERMS Term Definition ACCOUNTABILITY The state of being obliged to explain actions to justify what was done. Accountability requires justification for the raising of public funds and the purposes for which they are used. ACTIVITY A group of related functions performed by one or more organizational units for the purpose of satisfying a need for which the city is responsible. ALLOCATION Assigning one or more items of cost or revenue to one or more segments of an organization according to benefits received, responsibilities, or other logical measures of use. ANALYSIS A process that separates the whole into its parts to determine their nature, proportion, function, and relationship. ANNUALIZED COSTS Operating costs incurred at annual rates for a portion of the prior fiscal year that must be incurred at similar rates for the entire 12 months of the succeeding fiscal year. APPROPRIATION An authorization granted by the Mayor and Council to make expenditures and to incur obligations for purposes specified in the appropriation resolution. ASSESSED VALUATION A valuation set upon real estate or other property by the county assessor and the state as a basis for levying taxes. BENCHMARKING The ongoing search for best practices and processes that produce superior performance when adopted and implemented in an organization. For the purpose of bench-marking, only that which you can measure exists. BENCHMARKS Measurements used to gauge the city’s efforts, both as a community and as an organizational entity, in accomplishing predefined and measurable desired outcomes that have been developed with participation from decision-makers, management, staff, and customers. Benchmark selection requires that you first know what it is you wish to improve, and then the metrics (a means to measure) that will be used. BIENNIAL BUDGET A form of multi-year budgeting that covers a two-year period, rather than the one-year period of an annual budget. Each year within the biennial period is budgeted and shown separately within a single budget document published at the start of the first year. At the start of each fiscal year, the Mayor and Council formally adopt each budget within the two-year period in compliance with state budget law. Second year budgets can be adjusted as necessary with the Mayor and Council budgetary policies. I-1 GLOSSARY OF TERMS Term Definition BOND A written promise to pay a specified sum of money (called the face value or principal amount) at a specified date or dates in the future (called the maturity date), together with periodic interest at a specific rate. BOND FUNDS Funds used for the purchase or construction of major capital facilities which are not financed by other funds. The use of bond funds is limited to ensure that bond proceeds are spent only in the amounts and for the purposes authorized. BOND PROCEEDS Funds derived from the sale of bonds for the purpose of constructing major capital facilities. BONDS - GENERAL OBLIGATION Limited tax bonds which are secured by the city's secondary property tax. BUDGET A financial plan consisting of an estimate of proposed expenditures and their purposes for a given period and the proposed means of financing them. CAPITAL BUDGET A financial plan of proposed capital expenditures and the means of financing them. CAPITAL CARRYFORWARD Capital funds unspent and brought forward from prior years. CAPITAL IMPROVEMENT PROGRAM A plan separate from the annual budget that identifies: (1) all capital improvements which are proposed to be undertaken during a five fiscal year period, (2) the cost estimate for each improvement, (3) the method of financing each improvement, and (4) the planned implementation schedule for each project. CAPITAL PROJECT Any project having assets of significant value and 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, water system, etc. Capital improvements are permanent attachments intended to remain on the land. Capital projects may include the acquisition of heavy equipment and machinery or specialized vehicles using capital funding sources. I-2 GLOSSARY OF TERMS Term Definition CARRYFORWARD CAPITAL IMPROVEMENT PROJECT Any capital project that has been previously approved by the Mayor and Council, but for various reasons has not been implemented on schedule. Under state law and Generally Accepted Accounting Principles, only those costs relating to work actually done on or before the last day of the fiscal year can be reflected on the financial statements of that fiscal year. To avoid having to charge the project costs estimated to be incurred in a subsequent fiscal year as an unbudgeted item for that year and, therefore, violate state budget law, such a project and the associated projected costs are included in the subsequent fiscal year's budget. CARRYFORWARD OPERATING FUND BALANCES Operating funds unspent and brought forward from prior fiscal years. CERTIFICATES OF PARTICIPATION A debt financing tool which is used to enable the city to purchase large equipment and improve or construct city facilities. Interest is paid and principal repaid through annual payments made from funds appropriated each fiscal year by the Mayor and Council. COMMODITIES Expendable items used by operating departments. Examples include office supplies, repair and replacement parts for equipment, books, and gasoline. CUSTOMER The recipient of a product or service provided by the city. Internal customers are city departments, employees, or officials who receive products or services provided by other city departments. External customers are citizens, neighborhoods, community organizations, businesses, or other public entities who receive products or services provided by a city department. DEBT SERVICE The amount required to retire the principal and pay the interest on outstanding debt. ENCUMBRANCES Obligations in the form of purchase orders, contracts, or other commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise extinguished. ENTERPRISE FUND An accounting entity established to account for the acquisition, operation, and maintenance of governmental facilities and services which are entirely or predominantly self-supporting. EQUIPMENT An item of machinery or furniture having a unit cost of more than $5,000 and an estimated useful life of more than one year. Heavy equipment and machinery that are capital improvements are included in the capital budget and are not considered equipment items in the operating budget. I-3 GLOSSARY OF TERMS Term Definition EXPENDITURE Any authorization made for the payment or disbursing of funds during the fiscal year. FISCAL YEAR A 12-month period of time to which the annual budget applies and at the end of which a governmental unit determines its financial position and the results of its operations. Fiscal Year 2006, for the City of Tucson, refers to the period July 1, 2005 through June 30, 2006. FOCUS AREA Areas selected by the Mayor and Council as part of a strategic planning process that guide city improvement and development efforts for the budget year. The focus areas are Downtown, Transportation, Growth, Neighborhoods, Good Government, and Economic Development (see Section I, “City Strategic Plan” for details). FULL-TIME EQUIVALENT POSITION (FTE) A full-time position, or part-time position converted to a decimal equivalent of a full-time position, based on 2,080 hours per year. For example, a summer lifeguard working for four months, or 690 hours, would be equivalent to .33 of a full-time position. FUND An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources, together with all related liabilities, for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations. GENERAL FUND A fund used to account for all general purpose transactions of the city that do not require a special type of fund. INTER-ACTIVITY TRANSFERS Transactions between city organizations or funds that would be treated as revenues or expenditures if they involved parties external to the city. Transactions may be charged against other organizations or funds. MISSION A succinct description of the scope and purpose of a city department. It specifies the business activities of a department. NON-PERSONAL SERVICES Costs related to expendable services, such as supplies, materials, utilities, printing, rent, and contracted and professional services. NON-RECURRING REVENUE Proceeds of general obligation bonds, revenue bonds, and other restricted revenue. OPERATING BUDGET A financial plan which applies to all proposed expenditures other than for capital improvements. I-4 GLOSSARY OF TERMS Term Definition OPERATING FUNDS Resources derived from recurring revenue sources used to finance operating expenditures and pay-as-you-go capital expenditures. ORGANIZATION The smallest unit of budgetary accountability and control which encompasses specific and distinguishable lines of work performed for the purpose of accomplishing a function for which the city is responsible. OTHER COSTS This classification of costs includes Sun Tran expenditures, contributions to outside agencies, specific federal fund expenditures, and miscellaneous expenditures. OUTCOME The result or community benefit derived from programs or services expressed as a measure and used to evaluate quality or effectiveness. Examples of outcomes are the number of traffic signals operating trouble-free on a daily basis and the percent of library customers satisfied with the book collection. OUTPUT A quantitative measure of activities or efforts undertaken to provide a service or program. Examples of outputs are the number of responses to emergency 9-1-1 calls and the number of tons of recyclable materials collected. OUTSIDE AGENCIES A group of organizations which are neither associated with, nor allocated to, any particular city department. Payments to Other Governments, Economic Development, Cultural Enrichment, Community Health and Safety, Mayor and Council Appointed Commissions, Annual Community Events, and Tucson Community Cable Corporation (Access Tucson) are the major program groupings for outside agencies. PERFORMANCE MEASURE An annual indicator of achievement or measure of production for a program or a unit as defined in the organization of the budget. Measures may be expressed as a number count, fraction, or percent of achievement. Examples are the number of water meters read, number of customer calls received, or percent of customers rating the service as “good” or higher. PERSONAL SERVICES The costs of compensating employees of the City of Tucson, including salaries and employee benefit costs, such as health, dental, and life insurance, city contributions for retirement, social security, and workers’ compensation insurance. PRIMARY PROPERTY TAXES All ad valorem taxes, except the secondary property taxes, which can be used for any lawful purpose. I-5 GLOSSARY OF TERMS Term Definition PROGRAMS Desired output-oriented accomplishments which can be measured and achieved within a given time frame. Achievement of the programs advance the activity and organization toward fulfillment of a corresponding need. PROJECTS Unique assignments having a finite time span and a deliverable; normally associated with capital improvements such as roadways, neighborhood facilities, etc. RECURRING REVENUES Revenue sources available on a continuing basis to support operating and capital budgetary needs. RESTRICTED REVENUES Revenues which are legally restricted for a specific purpose by the federal, state, or local governments. REVENUES Income from taxes and other sources during the fiscal year. SECONDARY PROPERTY TAXES Ad valorem taxes or special property assessments used to pay the principal, interest, and redemption charges on any bonded indebtedness or other lawful long-term obligation issued or incurred for a specific purpose by a municipality, county, or taxing district; and assessments levied by or for assessment districts and for limited purpose districts other than school districts and community colleges pursuant to an election to temporarily exceed (up to one year) budget, expenditure, or tax limitations. SECONDARY TAX RATE The rate per one hundred dollars of assessed value employed in the levy of secondary property taxes. The assessed value derived from the current full cash value (market value) is the basis for computing taxes for budget overrides, bonds, and for sanitary, fire, and other special districts. SERVICES Costs which involve the performance of a specific service by an outside organization or other city organization. Examples of services include consultants, utilities, and vehicle maintenance. STREET AND HIGHWAY BONDS Revenue bonds which are secured by the city's Highway User Revenues and used for the construction of street, highway, and related capital projects. TAX LEVY The total amount to be raised by general property taxes for purposes specified in the Tax Levy Ordinance. TAX RATE The amount of tax levied for each one hundred dollars of assessed valuation. I-6 ACRONYMS AND INITIALISMS Acronym/Initialism Definitions ADA ARS ASLD Americans with Disabilities Act Arizona Revised Statutes Arizona State Lands Department CAP CAVSARP CBC CDBG CIP Central Arizona Project Central Avra Valley Storage and Recovery Project Capital Budget Committee Community Development Block Grant Capital Improvement Program DOT Department of Transportation EEC Economic Estimates Commission FHQ Fire Headquarters GDP GFOA GIS GPS Gross Domestic Product Government Finance Officers Association Geographic Information Systems Global Position System HAMP HELP HOPE HURF Houghton Area Master Plan Highway Expansion and Extension Loan Program Housing Opportunities for People Everywhere Highway User Revenue Fund LED Light Emitting Diode O&M Operating and Maintenance PAG PEG PRV Pima Association of Governments Public, Education, or Government Pressure Regulating Valve SAIAT SAVSARP SCADA SWAT Southern Arizona Institute of Advanced Technology South Avra Valley Storage and Recovery Project Supervisory Control and Data Acquisition Special Weapons and Tactics TEAM TICET TIP Transportation Enterprise Area Management Tucson Inner City Express Transit Transportation Improvement Program (Pima Association of Governments) WIFA Water Infrastructure Finance Authority I-7 I-8 INDEX Acronyms and Initialisms.................................................................................................................................... All Funds Summary ............................................................................................................................................. Area and Population Growth Charts ................................................................................................................ I-7 E-13 D-1 Benchmark Metropolitan Cities and 2002 Population Map.......................................................................... Benchmark Project............................................................................................................................................... Biennial Budget Update Calendar Fiscal Year 2006....................................................................................... Budget Adoption Resolution No. 20102.......................................................................................................... Budget and Research ........................................................................................................................................... Budget Overview.................................................................................................................................................. D-10 D-9 iv C-10 B-33 A-4 Capital Budget Summary..................................................................................................................................... Capital Budget Summary by Department - Table I........................................................................................ Capital Budget Summary by Funding Source - Table II................................................................................ Capital Budget Summary of Operating Budget Impacts - Table III ........................................................... Capital Projects Funds......................................................................................................................................... City Attorney......................................................................................................................................................... City Clerk ............................................................................................................................................................... City Court .............................................................................................................................................................. City Manager ......................................................................................................................................................... City Manager’s Message, City of Tucson Fiscal Year 2006 Adopted Budget ............................................ City of Tucson Area and Population Growth Charts .................................................................................... City of Tucson Components of the Total Financial Plan ............................................................................. City of Tucson Officials and Directors ............................................................................................................ City of Tucson Organization Chart Fiscal Year 2006 .................................................................................... City of Tucson Property Tax Summary............................................................................................................ City of Tucson Residential Property Owner Tax Valuation Fiscal Year 2005 Property Taxes .............. City Strategic Plan ................................................................................................................................................ City Strategic Plan Focus Areas and Strategies ............................................................................................... Community Profile............................................................................................................................................... Community Services ............................................................................................................................................ Comparison of General Purpose Revenues and Total Revenues ................................................................ Components of the Total Financial Plan ......................................................................................................... F-1 F-4 F-5 F-7 E-34 B-10 B-9 B-11 B-8 A-1 D-1 E-1 iii ii C-8 C-9 G-1 G-3 D-4 B-12 E-9 E-1 Debt Service Funds.............................................................................................................................................. Demographic Benchmarks ................................................................................................................................. Development Services ......................................................................................................................................... Distinguished Budget Presentation Award ...................................................................................................... E-32 D-16 B-21 vi Economic Benchmarks ....................................................................................................................................... Enterprise Funds .................................................................................................................................................. Expenditure Adjustments to the Fiscal Year 2006 Budget ........................................................................... D-11 E-29 B-5 J-1 INDEX Expenditures - Fiscal Year 2006 Adopted Summary and Pie Chart............................................................ Explanation of City Funds.................................................................................................................................. E-3 E-7 Finance ................................................................................................................................................................... Financial Policies and Practices.......................................................................................................................... Fire .......................................................................................................................................................................... Fiscal Year 2006 City of Tucson Annual Salary Scale – Exempt Schedule................................................ Fiscal Year 2006 City of Tucson Annual Salary Scale – Non-Exempt Schedule...................................... Fiscal Year 2006 City of Tucson Annual Salary Scale Fire – Exempt Schedule........................................ Fiscal Year 2006 City of Tucson Annual Salary Scale Fire – Non-Exempt Schedule.............................. Fiscal Year 2006 City of Tucson Annual Salary Scale Golf and Ranch – Exempt Schedule.................................................................................................................................. Fiscal Year 2006 City of Tucson Annual Salary Scale Information Technology – Exempt Schedule.................................................................................................................................. Fiscal Year 2006 City of Tucson Annual Salary Scale Legal – Exempt Schedule ..................................... Fiscal Year 2006 City of Tucson Annual Salary Scale Police – Exempt Schedule.................................... Fiscal Year 2006 City of Tucson Annual Salary Scale Police – Non-Exempt Schedule.......................... Fiscal Year 2006 City of Tucson Hourly (Non-Permanent) Schedule – Non-Exempt ........................... Full-Time Equivalent Positions General Purpuse Funds and Other Funds – Fiscal Years 2005 and 2006 ....................................................................................................................... Full-Time Equivalent Positions Permanent and Non-Permanent – Fiscal Years 2005 and 2006 ....................................................................................................................... B-34 C-5 B-13 E-58 E-63 E-60 E-65 General Fund ........................................................................................................................................................ General Services ................................................................................................................................................... Glossary of Terms................................................................................................................................................ E-15 B-35 I-1 How to Use This Budget .................................................................................................................................... Human Resources ................................................................................................................................................ v B-36 Index....................................................................................................................................................................... Information Technology ..................................................................................................................................... Intergovernmental Relations .............................................................................................................................. J-1 B-37 B-31 Legal Requirements.............................................................................................................................................. Library .................................................................................................................................................................... C-1 B-14 Mayor and Council............................................................................................................................................... B-7 Neighborhood Resources ................................................................................................................................... Non-Departmental............................................................................................................................................... Number of City Employees per 1,000 Population Chart .............................................................................. B-15 B-39 D-2 J-2 E-62 E-61 E-61 E-59 E-64 E-66 E-56 E-54 INDEX Office of Economic Development ................................................................................................................... Office of Equal Opportunity Programs and Independent Police Review............................................ Office of the Public Defender ........................................................................................................................... Officials and Directors ........................................................................................................................................ Organization Chart Fiscal Year 2006................................................................................................................ B-30 B-19 B-20 iii ii Parks and Recreation ........................................................................................................................................... Police ...................................................................................................................................................................... Position Changes to the Fiscal Year 2006 Budget.......................................................................................... Procurement.......................................................................................................................................................... Property Tax Summary........................................................................................................................................ B-16 B-18 B-41 B-38 C-8 Residential Property Owner Tax Valuation Fiscal Year 2005 Property Tax.............................................. Revenue Adjustments to the Fiscal Year 2006 Budget.................................................................................. Revenue Descriptions.......................................................................................................................................... Revenue Detail - All Funds Summary .............................................................................................................. Revenues and Expenditures Comparisons....................................................................................................... Revenues and Expenditures Comparisons and Fund Balance - General Fund......................................... Revenues and Expenditures Comparisons and Fund Balance - Other Funds .......................................... Revenues and Expenditures Summary Fiscal Year 2006 by Operating and Capital................................. Revenues - Fiscal Year 2006 Adopted Sources and Pie Chart ..................................................................... Rio Nuevo ............................................................................................................................................................. C-9 B-2 E-36 E-13 E-6 E-11 E-12 E-10 E-2 H-1 Selected Economic Indicators - Tucson Metro Area..................................................................................... Significant Adjustments to the Fiscal Year 2006 Budget .............................................................................. Special Revenue Funds........................................................................................................................................ Statement Required by Arizona Revised Statutes §42-17102 Relative to Property Taxation ................. Summary by Character of Expenditures .......................................................................................................... Summary of Expenditures by Department...................................................................................................... D-3 B-1 E-22 C-7 E-5 E-4 Ten-Year Adopted City Staffing Comparison with Fiscal Years 2005 and 2006 ...................................... Transportation ...................................................................................................................................................... Tucson City Golf.................................................................................................................................................. Tucson Convention Center ................................................................................................................................ Tucson-Mexico Trade Office............................................................................................................................. E-49 B-22 B-17 B-29 B-32 Urban Planning and Design ............................................................................................................................. Utility Services-Environmental Services........................................................................................................... Utility Services-Tucson Water............................................................................................................................ B-24 B-25 B-26 Vision Statement .................................................................................................................................................. i Zoning Examiner ................................................................................................................................................. B-28 J-3 J-4 Río Nuevo Home Río Nuevo Office 52 W. Congress St. Tucson, AZ 85701 * 520-791-5580 Rio Nuevo is a comprehensive revitalization program for downtown Tucson including new attractions, shopping, restaurants, office space, and housing. One of the primary goals of the Rio Nuevo Office is to foster and promote private sector development and reinvestment in the downtown area. General Information News and Newsletters What Is It About and How Is It Going? Latest News Fact Sheet -updated Fact Sheet -Tax Incremental Funding Master Plan Draft-jpg -aerial illustration plans Master Plan Draft -pdf -best for printing City Manager Río Nuevo Presentation to Mayor & Council (pdf) Financials -Where the Money Comes From and How It Is Being Used May 18 Civic & Cultural Plaza Refined Master Plan Concept Presentation ● ● ● ● ● ● ● TIF Revenue Received Projects, Expenses, and Commitments to Date Tax Refunds Provided for Development and http://www.tucsonaz.gov/rionuevo/ (1 of 4)9/9/2005 8:25:53 AM Road Construction Updates with Map Tamarisk Tree Removal Railroad Track Removal Río Nuevo Home State Tax Funds Received by Río Nuevo Federal grant to rebuild units for elderly, disabled (goes to Arizona Daily Star online) Development by Downtown Area See Many Views of Downtown on Web Cam (leaving Río Nuevo site) Convention The Month’s Outlook Navigating Río Nuevo Civic & Cultural Plaza Master Plan Presentation from Hargreaves & Associates (all files pdf format) Progress That’s Being Made ● 1. Background Historic & Interpretive Foundations 2. Scale & Economic Challenges 3. Cultural Plaza Programming & Preliminarty Concepts 4. Civic Plaza Programming & Preliminarty Concepts 5. Next Steps Public Comments from Plaza Meetings May 18, March 24 and Feb. 2nd Presidio ● ● Avenues Downtown Transportation Info Río Nuevo is Happening bimonthly update Goals Update this year Newsletter Quarterly Update Spring Downtown Happenings Get a Feel for Downtown Tucson, Watch The Beat on Tucson12.tv Downtown Farmers Market Wednesdays and Fridays (from City of Tucson website) The Downtown Tucsonan Paper -places to go and things to do More . . . http://www.tucsonaz.gov/rionuevo/ (2 of 4)9/9/2005 8:25:53 AM Río Nuevo Home Science Center Congress Street What Will It Be? Fact Sheet (pdf) “Thrifty” Block Sale Approved Little Poca Cosa's New Home Warehouse Arts Dist Master Plan Origins Heritage Park Landfill Stabilization Info Tucson Origins Heritage Park Master Plan (pdf) W. Congress Residential Developer Selected http://www.tucsonaz.gov/rionuevo/ (3 of 4)9/9/2005 8:25:53 AM More . . . Río Nuevo Home Río Nuevo Office/Downtown Information and Development Center 52 W. Congress St. Tucson, AZ 85701 520-791-5580 FAX 520-791-3240 http://www.tucsonaz.gov/rionuevo/ (4 of 4)9/9/2005 8:25:53 AM City of Tucson Strategic Plan Review 2004 The City Strategic Plan Year-End Review for Fiscal Year 2004 highlights our accomplishments made over the past year and documents how Mayor and Council, in partnership with City staff and the community, have moved forward with an action plan to improve the Tucson community. Table of Contents (pdf files) ● ● ● ● ● ● ● Introduction and Table of Contents Downtown Economic Development Good Government Growth Neighborhoods Transportation Entire Document Posted 9/23/04 Strategic Plan Review 2003 Table of Contents (pdf files) ● ● ● ● ● ● ● Introduction Downtown Growth Neighborhoods Economic Development Good Government Transportation Entire document http://www.tucsonaz.gov/hottopics/stratplan.html (1 of 2)9/9/2005 8:34:51 AM City of Tucson E-Services | Business | Jobs | Visitors | Mayor & Council InfoGuide to City Services | Tucson's Goals | Search | Site Map | Departments | Español Contact Us | Postcards | City Calendar | Tucson 12 | Privacy Policy © 2005 City of Tucson http://www.tucsonaz.gov/hottopics/stratplan.html (2 of 2)9/9/2005 8:34:51 AM