City of Tucson Adopted Biennial Budget Summary Fiscal Years 2007 and 2008 Volume I CITY OF TUCSON Adopted Biennial Budget Summary Fiscal Years 2007 and 2008 Presented July 1, 2006 CITY COUNCIL HONORABLE ROBERT E. WALKUP MAYOR JOSÉ J. IBARRA WARD 1 SHIRLEY C. SCOTT WARD 4 CAROL W. WEST WARD 2 KARIN UHLICH WARD 3 NINA J. TRASOFF WARD 6 STEVE LEAL WARD 5 CITY ADMINISTRATION MIKE HEIN City Manager MICHAEL D. LETCHER Deputy City Manager LIZ RODRIGUEZ MILLER KAREN MASBRUCH Assistant City Manager Assistant City Manager TABLE OF CONTENTS City of Tucson Organization Chart Fiscal Year 2007 ....................................................................................... City of Tucson Officials and Directors ............................................................................................................... Budget Calendar for Fiscal Years 2007 and 2008 .............................................................................................. How to Use This Budget ....................................................................................................................................... Frequently Asked Questions ................................................................................................................................. Distinguished Budget Presentation Award ......................................................................................................... i ii iii iv vi viii SECTION A CITY MANAGER'S MESSAGE City Manager’s Message, City of Tucson Adopted Fiscal Years 2007 and 2008 Budget ............................ Budget Overview .................................................................................................................................................... A-1 A-6 SECTION B STRATEGIC PRIORITIES City Strategic Priorities and Financial Sustainability.......................................................................................... B-1 SECTION C LEGAL AUTHORIZATION Legal Requirements Legal Requirements Imposed by the State................................................................................................. Legal Requirements Imposed by the City Charter.................................................................................... Financial Policies and Practices ............................................................................................................................ Statement Required by Arizona Revised Statutes 42-17102 ............................................................................ City of Tucson Property Tax Summary............................................................................................................... City of Tucson’s Share of Residential Property Owner Tax Valuation Fiscal Year 2006 Property Taxes ................................................................................................................ Budget Adoption Resolution No. 20350............................................................................................................. C-1 C-2 C-4 C-6 C-7 C-8 C-9 TABLE OF CONTENTS SECTION D COMMUNITY STATISTICAL PROFILE Area and Population Growth Charts ................................................................................................................... Number of City Employees Per 1,000 Population Chart................................................................................. Selected Economic Indicators – Tucson Metro Area ....................................................................................... Community Profile ................................................................................................................................................. D-1 D-2 D-3 D-4 SECTION E SUMMARY INFORMATION Components of the Total Financial Plan Fiscal Year 2007.............................................................................. Revenues Fiscal Year 2007 Adopted Sources and Pie Chart ........................................................................... Expenditures Fiscal Year 2007 Adopted Summary and Pie Chart ................................................................. Revenues Fiscal Year 2008 Approved Sources and Pie Chart......................................................................... Expenditures Fiscal Year 2008 Approved 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 to Total Revenues ...................................................................... Revenues and Expenditures Summary Fiscal Years 2007 and 2008 Biennial Budget ................................. Revenues and Expenditures Summary Fiscal Year 2007 by Operating and Capital .................................... Revenues and Expenditures Summary Fiscal Year 2008 by Operating and Capital .................................... Revenues and Expenditures Comparisons and Fund Balance General Fund............................................... Revenues and Expenditures Comparisons and Fund Balance Other Funds ................................................ Revenue Detail All Funds Summary.................................................................................................................... General Fund........................................................................................................................................................... Special Revenue Funds........................................................................................................................................... Enterprise Funds..................................................................................................................................................... Debt Service Funds ................................................................................................................................................ Capital Projects Funds ........................................................................................................................................... Revenue Descriptions ............................................................................................................................................ Ten-Year Adopted City Staffing Comparison with Fiscal Years 2007 and 2008 ......................................... Full-Time Equivalent Positions General Purpose Funds and Other Funds Fiscal Years 2007 and 2008 .......................................................................................................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Elected and Mayor/Council Appointed Officials (Unclassified) ........................................................... Exempt Schedule ........................................................................................................................................... Police (Exempt) ............................................................................................................................................. Fire (Exempt) ................................................................................................................................................ E-1 E-2 E-3 E-4 E-5 E-6 E-7 E-8 E-9 E-11 E-12 E-13 E-14 E-15 E-16 E-17 E-19 E-26 E-33 E-36 E-38 E-40 E-53 E-55 E-57 E-58 E-59 E-59 TABLE OF CONTENTS SECTION E (Continued) Fiscal Year 2007 City of Tucson Annual Salary Scale (Continued) Information Technology (Exempt)............................................................................................................. Legal (Exempt) ............................................................................................................................................... Golf (Exempt) ................................................................................................................................................ Non-Exempt Schedule.................................................................................................................................. Police (Non-Exempt) .................................................................................................................................... Fire (Non-Exempt) ........................................................................................................................................ Hourly Non-Permanent Classifications and Schedule (Non-Exempt).................................................. E-60 E-61 E-62 E-63 E-64 E-64 E-65 SECTION F CAPITAL BUDGET SUMMARY Capital Budget Summary ....................................................................................................................................... Summary of CIP Impact on the Operating Budget .......................................................................................... Five-Year Capital Budget Summary by Department Table I ........................................................................... Five-Year Capital Budget Summary by Funding Source Table II................................................................... Five-Year Capital Budget Summary of CIP Impact on the Operating Budget Table III............................ Department Projects Five Year Capital Improvement Program..................................................................... F-1 F-4 F-5 F-6 F-8 F-9 SECTION G RIO NUEVO Rio Nuevo Project .................................................................................................................................................. G-1 SECTION H GLOSSARY Glossary of Terms .................................................................................................................................................. Acronyms and Initialisms ...................................................................................................................................... H-1 H-7 SECTION I INDEX Index ......................................................................................................................................................................... I-1 CITY OF TUCSON ORGANIZATION CHART FISCAL YEAR 2007 Citizens Mayor and Council City Manager: Mike Hein City Clerk Deputy City Manager: Mike Letcher Support Services City Attorney Assistant City Manager: Karen Masbruch Assistant City Manager: Liz Miller Environment and Development Strategic Initiatives Neighborhood Services Budget & Research Development Services Tucson Convention Center City Court Finance Transportation Rio Nuevo Project Community Services General Services Urban Planning & Design Human Resources Utilities - Environmental Services Fire Utilities - Tucson Water Neighborhood Resources Information Technology* Equal Opportunity Programs & Independent Police Review Procurement Parks & Recreation** Police Public Defender * The Chief Information Officer is also the Information Technology Director **Includes Tucson City Golf i CITY OF TUCSON OFFICIALS AND DIRECTORS OFFICIALS STRATEGIC INITIATIVES City Manager, Mike Hein Rio Nuevo Project, Gregory Shelko Deputy City Manager, Michael D. Letcher Tucson Convention Center, Richard Singer Assistant City Manager, Liz Rodriguez Miller SUPPORT SERVICES Assistant City Manager, Karen Masbruch Budget and Research, James A. Cameron City Attorney, Mike Rankin Finance, J. Scott Douthitt City Clerk, Kathleen S. Detrick General Services, Ronald Lewis NEIGHBORHOOD SERVICES Human Resources, Cindy Bezaury City Court, Antonio Riojas Information Technology and Chief Information Officer, Ann Strine Community Services, M. Emily Nottingham Procurement, Wayne A. Casper Equal Opportunity Programs and Independent Police Review, Liana Perez Fire, Dan Newburn Neighborhood Resources, Eliseo Garza 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 ii BIENNIAL BUDGET CALENDAR FISCAL YEARS 2007 AND 2008 Sequence of events in the budget-setting process. December 9, 2005 Budget kickoff. December 13, 2005 through April 18, 2006 Financial Sustainability Plan presentations and discussion with Mayor and Council. April 18, 2006 Financial Sustainability Plan Recommendations presented to Mayor and Council. April 18, 2006 Submission of the City Manager’s Fiscal Years 2007 and 2008 Recommended Biennial Budget and Proposed Five-Year Capital Improvement Program Fiscal Years 2007 through 2011 to Mayor and Council. May 2, 2006 Public hearing on Fiscal Years 2007 and 2008 Recommended Biennial Budget and Proposed Five-Year Capital Improvement Program Fiscal Years 2007 through 2011. May 9, 2006 Mayor and Council Study Session on the Fiscal Years 2007 and 2008 Recommended Biennial Budget and Proposed Five-Year Capital Improvement Program Fiscal Years 2007 through 2011. May 16, 2006 Tentative adoption of budget for Fiscal Year 2007. June 13, 2006 Truth in Taxation Hearing on primary property tax levy for Fiscal Year 2007. June 13, 2006 Public Hearing on the Biennial Budget for Fiscal Year 2007 as tentatively adopted. June 13, 2006 Special Mayor and Council meeting for the purpose of final budget adoption. June 27, 2006 Fixing and levying the Primary and Secondary Property Taxes for Fiscal Year 2007. iii HOW TO USE THIS BUDGET This document guide outlines the City of Tucson’s Fiscal Years 2007 and 2008 Adopted Biennial Budget, which is contained in three volumes. Copies of the budget are available at all branches of the Tucson-Pima Public Library, the University of Arizona Main Library, Pima Community College libraries, the City Clerk’s Office, and the Department of Budget and Research. In addition, the budget may be viewed on the City of Tucson web site at http://www.tucsonaz.gov/budget. Information may 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. 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 of the summary provides the reader with demographic and economic information on Tucson. 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 here. Presenting the budget in these volumes allows users to select the level of information that meets their needs. Volume I, the Adopted Budget Summary, provides summary level information. Volume II, the Adopted Budget Operating Detail, and its appendices in Volume IIA and B provides detailed information on staffing and city services. Volume III, the Approved Five-Year Capital Improvement Program, provides detailed information on capital projects. Following are descriptions of the contents in each volume. Capital Budget Summary - This section provides a summary of the Five-Year Capital Improvement Program. Rio Nuevo - This is a summary of the Rio Nuevo district budget. While Rio Nuevo is not part of the city budget, its budget is included for information purposes. Glossary - The glossary defines terms and acronyms used in the budget. Volume I Index - The index provides an alphabetical listing of the contents of the budget. City Manager’s Message - This section includes the letter from the city manager transmitting the biennial budget 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 topics: • Where The Money Goes – Expenditures and Staffing • Where The Money Comes From – Revenue Sources • Citizen Impacts • Expenditure Limitation • Budget Development Process Volume II The Adopted Budget Operating Detail provides the detail for department budgets. It is organized in alphabetic order, except that the Mayor and Council is first and Non-Departmental is last. Each department section includes a mission statement, an overview of the department, department highlights, department financial and personnel resources, funding summaries, a summary of significant changes that compare the Fiscal Year 2006 Adopted to the Fiscal Year 2007 Adopted Budget and the Fiscal Year 2008 Approved Budget. Key measures of performance are included for the various programs within each department. Strategic Priorities - This section summarizes the strategic plan for the city including the focus areas and the approved Financial Sustainability Plan. iv Volume III Appendix A: Position Resources by Classification - Appendix A presents, by department and division, the position resources for the Fiscal Year 2007 Adopted Budget and Fiscal Year 2008 Approved Budget, as well as the Fiscal Year 2006 Adopted and Estimated budgets, and Fiscal Year 2005 actual staffing. This section includes the detail by position and pay range for all authorized positions. The Approved Five-Year Capital Improvement Program (CIP) contains the capital budget detail. This volume has two major sections: Overview and Department Programs. Overview - The overview provides a description of the capital program and its impact on the community, including: • Summary Tables • Summary of Planned Expenditures and Funding • Department Program Highlights • Impact on the Operating Budget • Use of Impact Fees Appendix B: Financial Summary - Appendix B displays, by department and division, each organization’s financial summary. The information reflects the financial resources for the Fiscal Year 2007 Adopted Budget and Fiscal Year 2008 Approved Budget, as well as the Fiscal Year 2006 Adopted and Estimated budgets, and Fiscal Year 2005 actual expenditures. Department Programs - In this section of the Approved CIP, each department’s capital budget is presented. Within each department a program statement describes the highlights of the capital program, and the impact of the capital program on the operating budget are tabulated. There are project and funding summaries by major program area. The reader can find the individual project detail in this section. Each project is described, and funding sources, project costs, and other project information (such as start and end dates, ward locations) are presented. v FREQUENTLY ASKED QUESTIONS For many of the following questions, additional information can be found in the Budget Overview and in the summary sections of Volume 1. What is the Fiscal Year 2007 total budget? The budget for Fiscal Year 2007 totals $1.1 billion. That is an increase of $93.9 million more than the Fiscal Year 2006 Adopted Budget. Total Budget ($ millions) Adopted FY 2006 Operating $ 796.5 Capital 211.9 Total $ 1,008.4 Adopted FY 2007 $ 826.6 275.7 $ 1,102.3 Change $ 30.1 63.8 $ 93.9 The operating budget of $826.6 million increased by $30.1 million, primarily to fund the opening of new facilities, employee pay and benefit adjustments, and the programs included in the Financial Sustainability Plan. The capital budget of $275.7 million increased by $63.8 million, including carryforward for projects not completed in Fiscal Year 2006, funding for new public safety facilities, and capacity for the possible programming of impact fee and Regional Transportation Authority revenue. Is the Mayor and Council required to have a "balanced" budget? Yes. By Arizona state law, the Mayor and Council must adopt a balanced budget: Expenditures = Revenues What are the major components of the Fiscal Years 2007 and 2008 Biennial Budget? Looked at from an activity perspective, the two major Total Budget ($ millions) components are the following: FY 2007 Operating budget Capital budget Operating $ 826.6 Capital 275.7 Looked at from a funding perspective, the two major Total $ 1,102.3 components are the following: General Purpose Funds General Purpose Funds $ 461.4 Restricted Funds Restricted Funds 640.9 Total $ 1,102.3 FY 2008 $ 845.4 196.5 $ 1,041.9 $ 481.3 560.6 $ 1,041.9 What is the difference between General Purpose Funds and Restricted Funds? General Purpose Funds are those revenues that the Mayor and Council have full discretion to allocate. These revenues come from both city-generated sources, such as the city sales tax and utility taxes, and from state-shared revenues from the state's sales, auto lieu, and incomes taxes. The General Purpose Funds are used for basic city services, such as police and fire protection, mass transit service, and parks and recreation opportunities. Only 42% or $461.4 million is available for the Mayor and Council to allocate for general purposes and competing city priorities. As the name implies, Restricted Funds are restricted for specific purposes. These revenues come from grants, state-shared gasoline taxes, self-supporting city enterprise activities, and other city revenues collected for specific purposes, such as certificates of participation, bonds, and the secondary property tax. Approximately 58% of the total budget or $640.9 million has restrictions upon its use. What are the major sources of revenue for the General Purpose Funds budget? The General Purpose Funds of $461.4 million for Fiscal Year 2007 come from city sources (70%) and state-shared revenues (30%). The city-generated General Purpose Funds budget revenues total $323.6 million; state-shared revenues provide the remaining $137.8 million. The largest individual revenue sources are the city's sales tax ($199.5 million), state-shared income tax ($61 million), and state-shared sales tax ($51.9 million). The city's primarily property tax provides only $10 million, which is only 2% of the total. vi FREQUENTLY ASKED QUESTIONS (Continued) What are the major service changes included in the Fiscal Year 2007 budget? The Fiscal Years 2007 and 2008 Biennial budget includes funding for the following service improvements: Funding for Service Improvements Expanded road maintenance, primarily for residential streets 75 new police officers, plus support and judicial staff Improved fire and paramedic response capabilities Additional child and family programs Additional recreation programming and facilities FY 2007 $ 4.0 million 6.3 million 3.8 million 1.0 million 1.1 million $ 16.2 million FY 2008 $ 7.0 million 11.6 million 8.4 million 1.0 million 2.7 million $ 30.7 million Will the number of city staff change because of the Fiscal Year 2007 budget? Yes, the number of authorized positions in Fiscal Year 2007 will be 193.75 FTEs less than the adopted budget for Fiscal Year 2006. Most of that decline is due to the transfer of over 300 employees to Pima County, which became responsible for the Tucson-Pima Public Library effective July 1, 2006. Additional positions totaling 113.5 were added for the first year of the Financial Sustainability Plan. For Fiscal Year 2007, the total number of positions is 5,847.76. What types of debt does the city carry? The city currently uses voter-authorized bonds, certificates of participation, lease/purchases, and state infrastructure bank loans to finance needed equipment and projects. Maturities for these debts range from 1 to 20 years, depending upon the type of equipment or project being financed. Restructuring, refinancing, and advance bond refunding are used to limit the city's debt service costs. As of June 30, 2005, the total outstanding indebtedness was $932 million. See the Non-Departmental budget in Volume II for further information on types of debt, bond ratings, and outstanding indebtedness. Will the city's property tax rate change because of the Fiscal Year 2007 budget? Yes, the city's property tax rate will be Property Tax Rates FY 2006 FY 2007 slightly lower in Fiscal Year 2007. Primary $ 0.3469 $ 0.3411 Secondary 0.8895 0.8846 The combined rate will drop from Total $ 1.2364 $ 1.2257 $1.2364 per $100 of assessed valuation Change $ (0.0058) (0.0049) $ (0.0107) to $1.2257. While the city's property tax rate will be lower, your city tax bill will likely be higher because your assessed valuation from the Pima County Assessor probably increased. Does the city set aside money for a "rainy day?" Yes. In September 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. As part of the Financial Sustainability Plan, the Mayor and Council approved an increased goal of 10%. As of June 30, 2005, the General Fund unreserved fund balance was $28 million, which was 7.5% of General Fund expenditures. Who approves the city's budget? Every two years, the City Manager's recommended biennial budget is reviewed and modified by the Mayor and Council. Following two public hearings, the Mayor and Council adopt the first year of the biennial budget. The second year of the biennial budget is considered “approved.” That approved budget will again be reviewed and modified, and become the adopted budget for the second year of the biennial budget. How can I voice an opinion or concern about the budget? Copies of the budget are available at the public libraries and online for your review http://www.tucsonaz.gov/budget. The Mayor and Council held two public hearings prior to budget adoption for the purpose of receiving citizen input. You may also contact the Mayor and Council Comment Line at 791-4700. If you have further questions about budget, please contact the Department of Budget and Research at 791-4551. vii 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. viii 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 Years 2007 and 2008, the adopted biennial budget was submitted to the Mayor and Council on April 18 and adopted the budget on June 13. Year 1 - Fiscal Year 2007. The Adopted Budget for Fiscal Year 2007 totals $1,102.3 million. Approximately 58% is from restricted funds that can only be used for specific purposes: Enterprise Funds of $194.7 million and Other Restricted Funds of $446.2 million. The remaining 42% or $461.4 million is from General Purpose Funds, which the Mayor and Council have discretion to program to meet the city's priority needs. Fiscal Year 2007 $ 1,102 million General Purpose Funds $461 Enterprise Funds $195 Other Restricted Funds $446 The Fiscal Year 2007 Adopted Budget is an increase of $93.9 million over the Adopted Budget for Fiscal Year 2006. The General Purpose Funds budget increased by $36.7 million and the Restricted Funds budget by $57.2 million. Much of the General Purpose Funds increase is for capacity to fund the proposed Financial Sustainability Plan, including the opening of new facilities and for employee pay and benefit adjustments. The $27.0 million of capacity for the proposed Financial Sustainability Plan, which the Mayor and Council received on April 18, is allocated as follows: 60% or $16.2 million for public service improvements and 40% or $10.8 million for employee pay and benefit adjustments. Year 2 - Fiscal Year 2008. The Approved Budget for Fiscal Year 2008 totals $1,041.9 million, a decrease of $60.4 million. This decrease is primarily driven by the completion of capital projects in Fiscal Year 2007. The operating budget increases by $18.8 million. This increase includes another $24.1 million for the proposed Financial Sustainability Plan, which is allocated as follows: 60% or $14.5 million for public service improvements and 40% or $9.6 million for employee pay and benefit adjustments. Those increases are offset by decreases based on no carryforward for Fiscal Year 2008. Total Budget ($ millions) FY 2006 Budget FY 2007 Budget Change FY 2008 Budget Change General Purpose Funds Enterprise Funds Other Restricted Funds Total $ 424.7 $ 461.4 $ 36.7 $ 481.3 $ 19.9 190.1 194.7 4.6 202.6 7.9 393.6 446.2 52.6 358.0 (88.2) $ 1,008.4 $ 1,102.3 $ 93.9 $ 1,041.9 $ (60.4) Operating Capital $ 796.5 $ 826.6 $ 30.1 $ 845.4 $ 18.8 211.9 275.7 63.8 196.5 (79.2) $ 1,008.4 $ 1,102.3 $ 93.9 $ 1,041.9 $ (60.4) Total A-6 Highlights – Use of Revenue Growth The Adopted Biennial Budget for Fiscal Years 2007 and 2008 incorporates two strategies: (1) focusing revenue growth on improving services and (2) developing a financial sustainability plan for meeting long-term service needs, while continuing to meet the human capital requirements of the organization. To develop the biennial budget, departments were requested to keep expenditures at Fiscal Year 2006 adopted levels; funding for one-time acquisitions and carryforward from prior years was eliminated. By holding down budget allocations, approximately $2 million in inflationary costs were covered through program savings. General Purpose Funds. Funding from revenue growth was added to the departments’ base budgets. Because of the prior commitments and other unavoidable costs listed below, $8 million of the increased revenues was not available for the Financial Sustainability Plan. Prior Commitments and Unavoidable Costs ($ millions) • Full-year funding of Fiscal Year 2006 mid-year pay adjustments for Police • Full-year costs of facilities opened or positions added during Fiscal Year 2006 • Metropolitan Tucson Convention and Visitors Bureau funding requirements due to increases in hotel tax collections $ 1.6 3.4 1.0 • Financing costs of the fleet replacement program • Workers' compensation and liability insurance needs • Miscellaneous adjustments including carryforward reduction 1.0 2.7 (1.7) $ 8.0 For Fiscal Years 2007 and 2008, which are the first two years of the Financial Sustainability Plan, 60% of the available revenue growth is being used for service improvements and 40% for human capital needs as noted below. Use of Revenue Growth for Financial Sustainability ($ millions) Increase FY 2007 Service Improvements • Expanding road maintenance, primarily for residential streets $ • Hiring more police officers over two years, plus funding for support and judicial staff • Improving fire and paramedic response capabilities with funding and staff • Increasing funds for Parks and Recreation programming and facilities maintenance • Increasing funds for child and family programs such as KIDCO, JobPath, School-Plus-Jobs, and Exploring Our Future Human Capital • Increases required for Police and Fire pension contributions • Pay adjustments/other requirements $ A-7 4.0 Increase FY 2008 $ 3.0 6.3 5.3 3.8 4.6 1.1 1.6 1.0 -0- 16.2 14.5 5.0 5.8 10.8 -09.6 9.6 27.0 $ 24.1 The Budget Overview that follows is organized into five sections: Where the Money Goes – Expenditure Budget and Staffing Where the Money Comes From – Revenue Sources Citizen Impacts Expenditure Limitation Budget Development Process This overview focuses on the changes from the Adopted Budget for Fiscal Year 2006 to the Adopted Budget for Fiscal Year 2007. For more detailed information, see Section E of this volume and Volume II. 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 15% of the budget. The Public Safety group, consisting of Police, Fire, and Judicial departments, makes up 23% of the budget. The three largest departments providing other direct services to the public (Parks and Recreation, Transportation, and Community Services) use 20% of the budget. The capital budget for all departments makes up 25%. Other departments, including general support and debt service, make up the remaining 17% of the budget. The Enterprise group includes Environmental Services 3%, Golf 1%, and Water 11%. Fiscal Year 2007 Expenditures $ 1,102 million Public Safety group totals 23% (Police, Fire, and Judicial). Police 14% Enterprise 15% Fire 7% Judicial 2% Community Services 7% Parks and Recreation 3% Transportation 9% Capital 26% General Support 5% Debt Service 6% Other 6% A-8 Expenditure Changes Changes by department or department category, from the Adopted Budget for Fiscal Year 2006 to the Adopted Budget for Fiscal Year 2007 and from the Adopted Budget for Fiscal Year 2007 to the Approved Budget for Fiscal Year 2008, are briefly noted below and on the following pages. Additional information on department expenditure budgets can be found in Volume II. Expenditures ($ millions) FY 2006 Budget Public Safety Police Fire Judicial Public Safety Sub-Total $ FY 2007 Budget Change FY 2008 Budget Change 140.1 $ 63.6 21.5 225.2 149.7 $ 9.6 $ 73.7 10.1 22.8 1.3 246.2 21.0 154.3 $ 77.3 23.1 254.7 4.6 3.6 0.3 8.5 Enterprise Operations Golf Environmental Services Water Enterprise Sub-Total 10.9 37.1 118.9 166.9 10.9 38.0 113.8 162.7 -00.9 (5.1) (4.2) 10.9 39.3 126.0 176.2 -01.3 12.2 13.5 Other Operating Departments Transportation Community Services Parks and Recreation General Support* Debt Service Other ** Other Operating Sub-Total 100.7 65.9 46.2 66.2 55.9 69.5 404.4 104.3 75.3 47.2 56.8 67.0 67.1 417.7 3.6 9.4 1.0 (9.4) 11.1 (2.4) 13.3 105.8 70.2 48.6 53.8 71.0 65.1 414.5 1.5 (5.1) 1.4 (3.0) 4.0 (2.0) (3.2) Operating Budget Total 796.5 826.6 30.1 845.4 18.8 Capital Budget 211.9 275.7 63.8 196.5 (79.2) Total $ 1,008.4 $ 1,102.3 $ 93.9 $ 1,041.9 $ (60.4) * Includes City Clerk Elections which decreases or increases $1 to $2 million depending on election year. ** Library funding is reflected in Other due to the transfer to Pima County. Market-Based Compensation Adjustment For Fiscal Year 2007, a market-based pay adjustment was included for all employees, except for selected upper management positions. Police and Fire commissioned positions are to receive a 4% compensation adjustment effective July 9, 2006. The general workforce is to receive a 3% adjustment effective July 9, 2006, which will be adjusted up to 4% on November 12, 2006. Public Safety Changes Police. The department's operating budget increase of $9.6 million in Fiscal Year 2007 is primarily due to capacity for the approved Financial Sustainability Plan, an increase to the pension contribution, and a marketbased compensation adjustment. The transfer of the jail board charges to the Non-Departmental budget A-9 offset these increases. The $4.6 million increase in Fiscal Year 2008 is primarily due to additional capacity for the approved Financial Sustainability Plan. The ten-year goal of the Financial Sustainability Plan is to reach 2.4 police officers per 1,000 population. Fire. Fire's Fiscal Year 2007 increase of $10.1 million includes capacity for the approved Financial Sustainability Plan and a ladder company manned by 14 new positions. Other significant changes include an increase to pension contribution and the market-based pay adjustment. The $3.6 million increase in Fiscal Year 2008 is primarily due to capacity for the approved Financial Sustainability Plan. Judicial. This category includes City Court, City Attorney, and Office of the Public Defender. The $1.3 million increase in Fiscal Year 2007 and the $0.3 million increase in Fiscal Year 2008 are due to capacity for the approved Financial Sustainability Plan. Enterprise Operations Changes Golf. For Fiscal Year 2007, there is a small increase of $45,000 over the Adopted Fiscal Year 2006 Budget. There is no change for Fiscal Year 2008. While the Golf fund is projected to break even, revenues and expenditures are carefully monitored. Environmental Services. The department's $0.9 million increase in Fiscal Year 2007 resulted primarily from anticipated Environmental Protection Agency grants and reimbursed costs for household hazardous waste collection. (Fourteen positions were transferred to Neighborhood Resources, but the funding for those code enforcement positions remains in Environmental Services.) Three positions were transferred from the Water Department to improve financial management and personnel support. The Fiscal Year 2008 increase of $1.3 million includes debt service on capital projects funded with certificates of participation and other finance and administrative charges. Water. The decrease of $5.1 million in Fiscal Year 2007 is primarily due to a change in the accounting for sales and use taxes that resulted in a decrease to expenditures and revenues. That decrease is offset by increases for Central Arizona Project (CAP) water payments and additional debt service on bonds for capital projects. The Fiscal Year 2008 increase of $12.2 million is primarily due to increases in CAP payments, debt service, and other operational costs. Other Operating Department Changes Transportation. The department's increase of $3.6 million is primarily due to capacity for the approved Financial Sustainability Plan. The Fiscal Year 2008 increase of $1.5 million is also due to additional capacity for the approved Financial Sustainability Plan. Community Services. The Community Services budget total is primarily driven by federal funding opportunities. For Fiscal Year 2007, the budget increases by $9.4 million, primarily for the Martin Luther King Revitalization project award of HOPE VI funds. Capacity is also included for the Housing Trust Fund, which is under development. The Fiscal Year 2008 decrease of $5.1 million is due to the completion of projects. Parks and Recreation. The department's increases of $1.0 million in Fiscal Year 2007 and $1.4 million in Fiscal Year 2008 are primarily due to capacity for the approved Financial Sustainability Plan. General Support. This category includes the City Manager's Office, City Clerk, the Office of Equal Opportunity Programs and Independent Police Review and support services departments: Budget, Finance, Human Resources, Information Technology, General Services, and Procurement. A-10 The $9.4 million decrease for Fiscal Year 2007 is primarily due to two major changes in General Services: a change in the financing for fleet replacement and a reduction in grant capacity based on prior year trends. Because there are no city elections in Fiscal Year 2007, the City Clerk's budget also decreases. An investment in a Voice over Internet Protocol phone system added $1.5 million to the Information Technology budget. The Fiscal Year 2008 decrease of $3.0 million for General Support departments is due to reductions for onetime acquisitions in Fiscal Year 2007, which are offset by the City Clerk’s election-year costs. Debt Service. This category includes the repayment of general government debt, which is budgeted in NonDepartmental. (The repayment of Enterprise Fund debt is budgeted in their respective departments.) The increase of $11.1 million in Fiscal Year 2007 is primarily due to the repayment of certificates of participation, which will be used to finance additional public safety facilities and equipment, and repayment of lease/purchases for fleet replacement. The repayment of general obligation bonds increased due to changes in the debt repayment schedule; no sale is anticipated for Fiscal Year 2007. The repayment of a H.E.L.P. (Highway Extension and Expansion Loan Program) loan for Harrison Road construction, which begins in Fiscal Year 2007, also added to the increase. Fiscal Year 2008's $4.0 million increase is due to the continued use of certificates of participation for public safety facility and equipment investments and a new general obligation bond sale. Other. All remaining departments and offices are included in this category: Mayor and Council, Development Services, Urban Planning and Design, Neighborhood Resources, Tucson Convention Center, and NonDepartmental's Outside Agencies and General Expense. This category's Fiscal Year 2007 budget decreases by $2.4 million primarily due to a reduction in the contribution for the Library, which is in Non-Departmental. The Fiscal Year 2008 decrease of $2.0 million is primarily due reductions for one-time payments and carryforward that were included for Fiscal Year 2007 and the continuing decline in contributions to Pima County for the Library as part of the transfer of financial responsibility. These reductions are partially offset by capacity for possible employee pay and benefit adjustments in Fiscal Year 2008. Capital Budget Changes The $63.8 million increase in Fiscal Year 2007 is primarily due to the use of certificates of participation for public safety facilities, capacity for the possible programming of impact fee and Regional Transportation Authority revenues, and funds carried forward for projects not completed as scheduled in Fiscal Year 2006. For Fiscal Year 2008, the capital budget decreases by $79.2 million as projects are completed. A-11 Staffing For Fiscal Year 2007, 42% of all employees are in the Public Safety group, which includes Police, Fire, and Judicial departments. The three largest departments providing other direct services to the public (Parks and Recreation, Transportation, and Community Services) employ 21% of all employees. The self-supporting Enterprise group employs 17% of the city workforce. The remaining 20% of employees provide support services and other public services, including Neighborhood Resources, Development Services, and the Tucson Convention Center. The number of city employees in the adopted budget for Fiscal Year 2007 totals 5,847.76, a decrease of 193.75 full-time equivalent (FTE) positions from Fiscal Year 2006. The decrease in positions is primarily due to the transfer of Library staff to Pima County. Additional positions were reduced in the City Clerk's Office, because there is no election in Fiscal Year 2007. Offsetting those reductions are new positions for the first year of the Financial Sustainability Plan, a Fire ladder company, and enhanced code enforcement in Neighborhood Resources. For Fiscal Year 2008, the position total is 6,006.71, an increase of 158.95 FTEs. That increase is primarily due to more positions for the second year of the Financial Sustainability Plan and non-permanent positions in the City Clerk's Office, because Fiscal Year 2008 is an election year. New positions are also added for further enhancements to consolidated code enforcement in Neighborhood Resources. Fiscal Year 2007 City Staffing 5,847.76 FTEs The Enterprise group totals 17% (Environmental Services, Golf, and Water ). Other 6% Public Safety group totals 42% (Police, Fire, and Judicial). Police 25% General Support 14% Fire 12% Community Services 2% Judicial 5% Parks and Recreation 12% Transportation 7% Water 10% A-12 Golf 3% Environmental Services 4% Staffing Changes The changes in positions by department or department category, from Fiscal Year 2006 to Fiscal Year 2007 and from Fiscal Year 2007 to Fiscal Year 2008, are briefly noted on the following page. For more detail, see the individual department pages in Volume II and Appendix A in Volume IIA. City Staffing (full-time equivalents) FY 2006 Budget FY 2007 Budget Change FY 2008 Budget Change Public Safety Police Fire Judicial Public Safety Sub-Total 1,411.50 646.00 283.30 2,340.80 1,468.00 694.00 296.80 2,458.80 56.50 48.00 13.50 118.00 1,520.00 741.00 305.80 2,566.80 Enterprise Departments Environmental Services Golf Water Enterprise Sub-Total 262.00 154.75 571.00 987.75 251.00 154.75 573.00 978.75 (11.00) 2.00 (9.00) 251.00 154.75 573.00 978.75 Other Operating Departments Transportation Community Services Library Parks and Recreation General Support* Other Other Operating Sub-Total 405.00 152.50 307.75 697.00 812.71 338.00 2,712.96 404.50 152.50 711.00 799.21 343.00 2,410.21 (0.50) (307.75) 14.00 (13.50) 5.00 (302.75) 404.50 152.50 737.00 819.16 348.00 2,461.16 26.00 19.95 5.00 50.95 Total 6,041.51 5,847.76 (193.75) 6,006.71 158.95 52.00 47.00 9.00 108.00 - * Includes City Clerk Elections which decreases or increases 20.5 FTEs depending on election years. Public Safety Changes Police. The Fiscal Year 2007 increase for the department of 56.5 FTEs is primarily due to 52 positions for the first year of the Financial Sustainability Plan, which has a ten-year goal of 2.4 officers per 1,000 population. Also, 5.50 FTEs were added due to state's new requirement that vehicles be impounded if a driver is found to be impaired. One position, which supports the Public Safety Retirement System board, was transferred to Finance. For Fiscal Year 2008, the additional 52 FTEs are for the second year of the Financial Sustainability Plan. Fire. The increase of 48 FTEs in Fiscal Year 2007 is primarily due to 36 positions for the first year of the Financial Sustainability Plan. Also, a new ladder company of 14 FTEs was added. The transfer of two inspector positions to Neighborhood Resources as part of the city's efforts to consolidate code enforcement offsets those increases. For Fiscal Year 2008, the additional 47 FTEs are for the second year of the Financial Sustainability Plan. A-13 Judicial. The Judicial departments are City Attorney, City Court, and Office of the Public Defender. The Fiscal Year 2007 total for these department’s increased by 13.50 FTEs primarily due to 12.50 positions added for the first year of the Financial Sustainability Plan. One system analyst position in City Court was also added during Fiscal Year 2006 to cope with the increasing automation of court processes. For Fiscal Year 2008, the total for these three departments will increase by 9 FTEs, which are for the second year of the Financial Sustainability Plan. Enterprise Operations Changes Environmental Services. The department's Fiscal Year 2007 staffing is reduced by 11 positions. As part of the city's consolidation of code enforcement, 14 inspector positions were transferred to Neighborhood Resources for Fiscal Year 2007. That reduction was offset by three positions transferred into the department from Tucson Water to assist with financial and personnel issues. No changes are included for Fiscal Year 2008. Golf. There are no changes to the department’s position totals in Fiscal Years 2007 and 2008. Water. The department's Fiscal Year 2007 FTEs increased by two positions water conservation programs as directed by the Mayor and Council. No changes are included for Fiscal Year 2008. Other Operating Department Changes Transportation. The reduction of 0.5 FTEs in Fiscal Year 2007 resulted from a review of positions that have been vacant for an extended period. No changes are included for Fiscal Year 2008. Community Services. There are no changes to the department’s position totals in Fiscal Years 2007 and 2008. Library. All staff (307.75 FTEs) for the Library has been transferred to Pima County, which is fully responsible for Library operations as of July 1, 2006. Parks and Recreation. The Fiscal Year 2007 increase of 14 FTEs is primarily due to 13 positions for the first year of the Financial Sustainability Plan. The remaining 1 position was a deputy director position added during Fiscal Year 2006 with the goal of improving the department's management of capital projects. For Fiscal Year 2008, the additional 26 positions are for the second year of the Financial Sustainability Plan. General Support. This category includes the City Manager's Office, City Clerk, the Office of Equal Opportunity Programs and Independent Police Review and support services departments: Budget, Finance, Human Resources, Information Technology, General Services, and Procurement. The changes in positions for Fiscal Years 2007 and 2008 are primarily due to City Clerk positions for elections. Because Fiscal Year 2007 is not an election year, 20.5 non-permanent FTEs are not needed; those same FTEs are added back in Fiscal Year 2008, because it is a city election year. The remaining differences are due to the movement Intergovernmental Relations and the Zoning Examiner from the “Other” category to the “General Support” category and the creation of the Office of Conservation and Sustainable Development with positions from departments in the “Other” category. Other. All remaining departments and offices are included in this category: Mayor and Council, Development Services, Urban Planning and Design, Neighborhood Resources, Tucson Convention Center, and NonDepartmental. The increase of 5 FTEs in Fiscal Year 2007 is primarily due to the city's efforts to consolidate and enhance code enforcement in Neighborhood Resources. For Fiscal Year 2008, there are another 5 positions added for Neighborhood Resources. A-14 WHERE THE MONEY COMES FROM There are three major revenue groups in the city budget: 1) General Purpose Funds, 2) Enterprise Funds, which are restricted, and 3) Other Restricted Funds. This section of the overview will first discuss General Purpose Fund revenues, followed by Restricted Funds revenues. General Purpose Funds – Revenues General Purpose Funds revenues are those revenues that the Mayor and Council have full discretion to allocate. These revenues are used for basic city services, such as police and fire protection, mass transit service, and parks and recreation opportunities. These funds account for 42% of the total Fiscal Year 2007 budget. General Purposes Funds revenue comes from both city-generated sources and state-shared sources. In Fiscal Year 2007, 70% of the General Purpose Funds will come from city sources and 30% from state-shared sources. Of the city sources, the largest contributor is city sales at 43% of the total. The 25% in Miscellaneous City Revenues shown in the chart below consists of local taxes and fees. The city's Primary Property Tax provides only 2% of the General Purpose Funds budget. Of the state-shared sources, the largest contributors are income and sales taxes, which together total 24%. Other state-shared sources include the auto-lieu tax and lottery contributions. Fiscal Year 2007 General Purpose Funds - Revenues $ 461.4 million State-Shared Sales Tax 11% City Sales Tax 43% State-Shared Other 6% State-Shared Income Tax 13% Miscellaneous City Revenues 25% A-15 City Primary Property Tax 2% Revenue Changes – General Purpose Funds The Fiscal Year 2007 General Purpose Funds budget increased $36.7 million over the adopted budget for Fiscal Year 2006 due to an improving regional economy. The major changes are summarized in the table and discussion on the following pages. Additional information on revenues is available in Section E, Summary Information, in this volume. General Purpose Funds Revenues ($ millions) FY 2006 Budget City Revenues: Sales Tax Primary Property Tax Other City Sub-Total State-Shared Revenues: Income Tax Sales Tax Other State-Shared Sub-Total Total FY 2007 Budget Change FY 2008 Budget Change 184.5 9.2 106.6 300.3 199.5 9.7 114.4 323.6 $ 50.9 $ 47.7 25.8 124.4 60.5 $ 9.6 51.9 4.2 25.4 (0.4) 137.8 13.4 $ 69.6 $ 9.1 55.1 3.2 26.3 0.9 151.0 13.2 $ 424.7 461.4 $ 481.3 $ 15.0 0.5 7.8 23.3 $ 36.7 209.5 10.2 110.6 330.3 10.0 0.5 (3.8) 6.7 $ 19.9 Following are brief explanations of the revenue differences between the Fiscal Year 2007 Adopted Budget and the Fiscal Year 2006 Adopted Budget. City Revenues. City-generated revenues account for 70% of the Fiscal Year 2007 General Purpose Funds budget. The total of $323.6 million for Fiscal Year 2007 is an increase of $23.3 million, primarily from city sales tax revenue. For Fiscal Year 2008, city revenues will contribute an additional $6.7 million to the General Purpose Funds budget. $ millions General Purpose Funds City Revenues 210 185 200 107 114 111 9 Sales Tax 10 10 Primary Property Tax FY 2006 FY 2007 Other FY 2008 The city’s sales tax is highly dependent on the local economy, which continues to expand. It is projected to grow 5% in Fiscal Year 2007. The budget includes $199.5 million from city sales tax, an increase of $15.0 million. The increase in Fiscal Year 2007 over the Fiscal Year 2006 adopted budget includes $5.5 million additional revenue expected in Fiscal Year 2006 and $10 million due to 5% growth in Fiscal Year 2007. For Fiscal Year 2008, city sales tax revenues are projected to increase another $10 million due to 5% growth. The budget for Fiscal Year 2007 also includes a small increase in the primary property tax levy to bring it to the maximum allowable of $9.7 million. This increase will bring in an additional $0.5 million. For Fiscal Year 2008, the projected maximum allowable property levy of $10.2 million will bring in another $0.5 million. A-16 The remaining $7.8 million of the Fiscal Year 2007 increase is primarily the result of increases in tourism-related revenues (up $3.2 million) and revenues from fines, forfeitures, and penalties (up $2.2 million). These other city sources are expected to decline $3.8 million in Fiscal Year 2008 based on the assumption that no carryforward will be needed from Fiscal Year 2007. 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 the city for general purposes are state income tax, state sales tax, state auto lieu tax, and lottery proceeds. These revenues provide for 30% of the General Purpose Funds budget. State-shared revenues distributed to the city in Fiscal Year 2007 will be impacted by the mid-decade census in which the city's portion of the state's population declined. For Fiscal Year 2007, state-shared revenues are projected at $137.8 million, an increase of $13.4 million more than in the adopted budget for Fiscal Year 2006. For Fiscal Year 2008, it is anticipated that these revenues will increase another $13.2 million. $ millions General Purpose Funds State-Shared Revenues 51 61 70 48 52 55 26 State Income Tax State Sales Tax FY 2006 FY 2007 25 26 State Other FY 2008 State income tax distributions for Fiscal Year 2007, which are based on collections in 2005, are expected to be $60.5 million, a 19% increase, reflecting the improvements in the economy. Fiscal Year 2008 income tax distributions are projected to grow another $9.1 million. Distribution of state-shared sales tax is based on a city's percentage of the total state population. Because Tucson's percentage of the state's population has decreased, the city's increases in this revenue are less than the statewide increases in the collection of state sales tax. The adopted budget for Fiscal Year 2007 includes $51.9 million of state-shared sales tax, which is an increase of $4.2 million over the Fiscal Year 2006 budget of $47.7 million. The increase in Fiscal Year 2007 is attributable to additional growth during Fiscal Year 2006; estimated revenue from state-shared sales tax for Fiscal Year 2006 is $52.0 million. There is no net growth in Fiscal Year 2007, because any improvements in the economy are expected to be fully offset by the impact of the mid-decade census. Fiscal Year 2008 distributions are expected to increase 6% or $3.2 million. Other state-shared revenues include auto lieu taxes and lottery proceeds. The auto lieu tax is projected to decrease 1% or $0.3 million in Fiscal Year 2007 net of the mid-decade census reduction, with an additional $0.9 million anticipated for Fiscal Year 2008. No change is anticipated for lottery proceeds in either Fiscal Year 2007 or 2008. A-17 Restricted Funds – Revenues Restricted funds account for 58% of the total Fiscal Year 2007 budget. These funds are considered restricted because their use is limited to specific purposes. Restricted fund revenues are fairly evenly divided between: (1) grants, shared revenues, and contributions from other state and local governments (2) self-supporting enterprise funds (3) city revenues that are collected for a specific purpose, such as certificates of participation and other debt financing, and reserves set aside for a particular requirement Restricted Funds come from federal, state, and local sources. For Fiscal Year 2007, federal funding is 22% of the Restricted Funds budget and provides revenue for public housing, roadway, and transit programs and projects. The restricted funding from the state is from grants and state-shared Highway User Revenue Funds (HURF), which together provide approximately 22% of the Restricted Funds budget. The remaining 56% is from local sources. The largest component of restricted local revenue is from the Enterprise Funds, but local sources also include bonds, certificates of participation, parking revenues, and debt service funds from the secondary property tax. Fiscal Year 2007 Restricted Funds - Revenues $ 640.9 million Other Contributions 12% Highway User Revenues 10% Secondary Property Tax 4% Capital Projects Fund 8% Certificates of Participation/Debt Financing 8% Federal Funding 22% Other City Restricted 6% Enterprise Funds 30% A-18 Revenue Changes – Restricted Funds Budget In Fiscal Year 2007, the restricted funds revenues total $640.9 million, a $57.2 million increase over Fiscal Year 2006. Fiscal Year 2008 funding will decrease $80.2 million as programs and projects funded from restricted sources are completed. Restricted Fund Revenues ($ millions) FY 2006 Budget Grants and Shared Revenues: Federal Funding Highway User Revenues Other Contributions Grants and Shared Revenues Sub-Total Restricted City Revenues: Secondary Property Tax Capital Projects Fund Other Restricted City Sub-Total Enterprise Revenues Environmental Services Golf Water Enterprise Revenues Sub-Total $ Total Restricted $ FY 2007 Budget Change FY 2008 Budget Change 127.2 $ 60.8 51.4 135.6 $ 60.8 78.7 8.4 $ 27.3 110.7 $ (24.9) 57.8 (3.0) 56.7 (22.0) 239.4 275.1 35.7 225.2 (49.9) 24.2 74.9 55.1 154.2 26.8 51.1 93.2 171.1 2.6 (23.8) 38.1 16.9 27.8 35.3 69.8 132.9 1.0 (15.8) (23.4) (38.2) 37.8 13.1 139.2 190.1 39.5 10.9 144.3 194.7 1.7 (2.2) 5.1 4.6 47.4 10.9 144.3 202.6 7.9 7.9 583.7 $ 640.9 $ 57.2 $ 560.7 $ (80.2) Following are brief explanations of the revenue differences between the Fiscal Year 2007 Adopted Budget and the Fiscal Year 2006 Adopted Budget. Additional information on restricted revenues is provided in Section E of this volume. Grants and Shared Revenues. Revenues from grants and shared revenues total $275.1 million in Fiscal Year 2007, which is an increase of $35.7 million from Fiscal Year 2006. In Fiscal Year 2008, these revenues will decrease by $49.9 million. For Fiscal Year 2007, federal grants increase $8.4 million, primarily for the HOPE IV funds awarded for the Martin Luther King Revitalization project. For Fiscal Year 2008, federal funding decreases as that and other projects are completed. $ millions Restricted Funds Grants and Shared Revenues 127 136 111 61 Federal Funding 61 58 Highway User Revenues FY 2006 FY 2007 51 79 Revenues from Highway User Revenue Funds are expected to remain fairly level for Fiscal Year 2007 and drop by $3.0 million in Fiscal Year 2008. The Fiscal Year 2008 reduction is primarily due to decrease in funds carried forward. HURF revenues are also impacted by the city's declining proportion of the state's population. 57 Other Grants FY 2008 A-19 The Other Contributions group, which includes state grants and local contributions such as Pima County bonds, Regional Transportation Authority (RTA) funds, and Highway User Revenues distributed by the Pima Association of Governments, increase by $27.3 million in Fiscal Year 2007. That increase is primarily due to the RTA funding and carryforward for roadway projects not completed as planned in Fiscal Year 2006. For Fiscal Year 2008, those revenue sources will decrease $22.0 million as roadway projects are completed. Restricted City Revenues. This group includes the Secondary Property Tax, Capital Projects Fund (bonds), and other restricted sources such as ParkWise, reserves, and certificates of participation. These revenues will increase $16.9 million in Fiscal Year 2007 and decrease $38.2 Restricted Funds million in Fiscal Year 2008. $ millions City Revenues 75 51 24 Secondary Property Tax 70 55 35 28 27 While the Fiscal Year 2007 secondary property tax levy is increasing by $2.6 million, primarily from changes in the debt repayment schedule for outstanding bonds, the rate declines by $0.0049 per $100 of assessed valuation. A new bond sale is planned in Fiscal Year 2008, which will increase the revenues needed by $1.0 million. 93 Capital Projects Fund Other Because the voter-approved bond programs are nearing completion, the Capital Project Funds revenue decreases by $23.8 million in Fiscal Year 2007. These revenues will decrease a further $15.8 million as the 2000 bond authorization nears completion. FY 2006 FY 2007 FY 2008 The Other group of restricted city revenues increases by $38.1 million in Fiscal Year 2007 due to the additional certificates of participation being used to fund public safety facilities and the use of fund balance to cover one-time payments. For Fiscal Year 2008, these revenues decline by $23.4 million as projects are completed. 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 increase a total of $4.6 million in Fiscal Year 2007. For Fiscal Year 2008, these revenues increase by $7.9 million. $ millions Restricted Funds Enterprise Funds Revenues 139 144 144 38 39 47 Environmental Services FY 2006 13 11 11 Golf FY 2007 The Environmental Services Fund increases by $1.7 million in Fiscal Year 2007, primarily from user revenues that are based on customer demand, not on rate changes. For Fiscal Year 2008, revenues are projected to increase by $7.9 million because of certificates of participation used for facility projects. One-time Golf revenues from certificates of participation will decrease by $2.2 million in Fiscal Year 2007, because the Silverbell Golf Course improvements project has been completed. No change in revenues is Water FY 2008 anticipated for Fiscal Year 2008. For Fiscal Year 2007, Tucson Water's revenues increase $5.1 million due to anticipated revenue from the Water System Equity Fee and commodity rate increases needed to cover the purchase of additional Central Arizona Project (CAP) water. For Fiscal Year 2008, Tucson Water's revenues are projected to remain the same, although more revenue will come from water sales and less from reserves. A-20 CITIZEN IMPACTS Changes to the City's “Bill for Services” The cost impact to the average homeowner from the adopted Fiscal Year 2007 budget will be approximately $2.59 per month or 9¢ per day more than in Fiscal Year 2006. That change will come from property tax collections and water usage. Although the city's property tax rates will decrease, the assessed value of property within the city has risen, generating the additional cost impact to the homeowner. City “Bill for Services” for the Average Homeowner City Property Taxes1: Primary Secondary City Sales Tax2 Environmental Service Fee Tucson Water3 Annual Total Per Month FY 2006 FY 2007 Increase $ 34.69 111.19 434.60 168.00 $ 37.52 127.38 434.60 168.00 $ 2.83 16.19 -0-0- 234.84 $ 983.32 $ 81.94 246.84 $ 1,014.34 $ 84.53 12.00 $ 31.02 $ 2.59 1Owner-occupied residence with the following assessed valuations: FY 2006 FY 2007 Change Full cash value $ 125,000 $ 144,000 + 15% Limited value $ 100,000 $ 110,000 + 10% 2Assumes an average income of $41,000 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 Survey. 3The water bill figures assume a single-family residence with 12 Ccf usage per month. The increase for FY 2007 reflects the water rate changes approved by Mayor and Council on July 6, 2006. City Property Taxes. The city imposes two taxes on the assessed value of property within the city limits. The primary property tax, which is applied to the limited value assessed by the Pima County Assessor, is used for general purposes, and the secondary property tax, which is applied to the full cash value assessed by the Pima County Assessor, is used to pay off general obligation bond debt. The combined property tax rate for the Fiscal Year 2007 Adopted Budget is $1.2257 per $100 of assessed valuation, which is a decrease of $0.0107. For Fiscal Year 2008, the city's combined property tax rate is anticipated to drop another $0.0219 for a combined rate of $1.2038 per $100 of assessed valuation. City of Tucson Property Tax Comparisons Rate Changes Primary Secondary Total Actual FY 2006 Estimated FY 2007 Changes $ 0.3469 0.8895 $ 1.2364 $ 0.3411 0.8846 $ 1.2257 $ (0.0058) (0.0049) $ (0.0107) A-21 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. There is no change to the current city sales tax rate of 2% in the budgets for Fiscal Years 2007 and 2008. Any such change would require a majority vote of the electorate. (The recently approved ½ ¢ sales tax for the Regional Transportation Authority is a county-wide sales tax.) Charges for Services. Not all of charges for services directly impact the general public; e.g., court fines and development fee increases. The charges for service that affect the majority of Tucson residents are the residential refuse fee and water usage rates. There is no change to the residential refuse fee of $14 per month. The Mayor and Council approved water rate changes on July 6, 2006 (effective August 7, 2006) that are consistent with the Tucson Water Financial Plan that it adopted on June, 6, 2006. For single-family residential customers the increased rates vary based on usage: $0.07/Ccf for usage between 1 to 15 Ccf, $0.22/Ccf for usage between 16 to 30 Ccf, $0.31/Ccf for usage between 31 to 45 Ccf, and $0.37/Ccf for usage over 45 Ccf. EXPENDITURE LIMITATION Tucson, like all Arizona cities, is subject to a spending limit imposed by the state constitution, unless voters approve an alternative expenditure limitation that is also known as Home Rule. In November 2005, city voters approved an alternative expenditure limitation for Fiscal Years 2007 through 2011. For each of those four fiscal years, the city's expenditure limitation will equal the total amount of budgeted expenditures in the annual budget adopted by the Mayor and Council. BUDGET DEVELOPMENT PROCESS Biennial Budget The city has chosen to prepare biennial budgets that cover a two-year period. In the first year, a complete budget document is prepared; in the second year, only an update document is prepared. In addition to planning for a longer financial horizon, the biennial process gives staff time in the second year to investigate and evaluate service improvements. This budget document covers the biennial period of Fiscal Years 2007 and 2008. The Mayor and Council have adopted Fiscal Year 2007; the Fiscal Year 2008 budget is considered approved. For Fiscal Year 2008, the approved budget, with necessary adjustments, will be brought to the Mayor and Council for adoption. Budget Development While state and city legal requirements dictate certain facets of the budget process, the budget evolved 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. A-22 Step 1: Identification of Priorities. The city’s strategic plan serves as a guide for applying resources towards priority areas and focuses 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. These were amended in Fiscal Year 2006 to the following six priorities: Transportation Neighborhoods, Public Safety, and Emergency Preparedness Children, Families, and Seniors Environment, Planning, and Resource Management Economic and Workforce Development Rio Nuevo/Downtown, Arts, Culture, and History Taken collectively, these priorities set the work plan for the city. A Financial Sustainability Plan presented to the Mayor and Council on April 18, 2006 provides a framework and clear benchmarks for addressing future service needs. See Section B of this volume for more information on that plan. 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 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 reference point for development of 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 and Financial Sustainability Plan, will revise department requested budgets and prepare a recommended budget for Mayor and Council consideration. For the Fiscal Year 2007 and 2008 Biennial Budget, departments were given financial and staffing allocations equal to their Fiscal Year 2006 Adopted Budget with some adjustments. To stay within those allocations, departments had to review their operations and make revisions to their budgets to cover inflation and the full-year impact of Fiscal Year 2006 pay adjustments. Funding was added for prior commitments for such costs as the full-year funding of mid-year pay adjustments for public safety commissioned personnel and pension contributions. These adjustments to the Fiscal Year 2006 budget formed the base budgets for Fiscal Years 2007 and 2008. In addition to the base budgets, funding was included for the first two years of the Financial Sustainability Plan. Step 4: Mayor and Council Adoption. This step in the process is governed by both state and city legal requirements and provides an opportunity 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. 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. Budget Calendar For a complete budget calendar for the Fiscal Years 2007 and 2008 Biennial Budget, see page iii. A-23 A-24 CITY STRATEGIC PRIORITIES & FINANCIAL SUSTAINABILITY VISION Through cooperative leadership, provide the resources, expertise, and enduring spirit required to be one of the top cities in the United States. STRATEGIC PRIORITIES The City of Tucson continues to move towards being a more strategic, results-oriented organization. The process began in the mid-1990s with the introduction of performance measurement and the Livable Tucson program. Fiscal years 2007 and 2008 will begin with a new set of strategic priorities and a long-term financial sustainability plan approved by the Mayor and Council. The Strategic Priorities for the City of Tucson are: Children, Families, and Seniors Transportation Environment, Planning, and Resource Management Economic and Workforce Development Rio Nuevo/Downtown, Arts, Culture, and History Neighborhoods, Public Safety, and Emergency Preparedness The Mayor and Council has established subcommittees, made up of three council members each, to review and discuss strategies, information, and issues related to their assigned strategic priority. Recommendations are forwarded to the full Mayor and Council for consideration and action. Citizen Participation The Livable Tucson process 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 remain reflective of the community. One source of new community data is coming from citizen surveys. Gathering feedback from a broad section of Tucson residents on a routine basis is an important tool to gauge community perceptions of our city. In 2001, the City of Tucson in partnership with the International City/County Management Association (ICMA) conducted its first citizen survey. A second citizen survey was done in 2004 using a similar survey instrument. Results from the citizen surveys are being used by the Mayor and Council and the city organization to assess current practices and to help set future priorities. Strategic Planning Process The Mayor and Council adopted the city's first Strategic Plan in the spring of 2002. The plan was based on six focus areas approved by the Mayor and Council in December, 2001, and included associated goals, strategies, and priority projects. Since that time, the plan has evolved based on citizen surveys and progress achieved on the plan’s strategies and projects. With the adoption of a new set of strategic priorities by the Mayor and Council in 2006, the city has begun developing a new Strategic Plan working through the Strategic Priority Subcommittees. B-1 In the Strategic Plan, each priority area will be composed of strategies or goals and important performance measures that will be used to measure success. The priority areas will allow the city to concentrate management initiatives, projects, and strategies, as well as direct the training of employees and ensure the effective use of resources. The City of Tucson follows a basic four-step strategic approach: ¾ Mayor and Council (and its six strategic subcommittees) establish and define the city’s priorities. ¾ The city organization is aligned to effectively carry out the priorities. ¾ Programs and projects are approved and funded to further the priorities. ¾ Results are measured and evaluated with the goal of improved services. It is anticipated that an updated Strategic Plan will be presented to the Mayor and Council in the fall of 2006. Financial Sustainability Plan Although the City of Tucson has a number of long-term plans on specific issues such as the capital improvement program and transportation, there is not one process that consolidates the strategic priorities and long-term plans and financial projections into a single long-term service and financial plan. The financial sustainability process fills that need by identifying future service levels consistent with the city’s strategic priorities and the resources required to provide those services. The Financial Sustainability Plan will provide a basis for future biennial budgets and will guide workforce planning and other efforts to improve the effectiveness and efficiency of city services. While the needs of the community appear daunting, a significant impact can be achieved through a managed effort that consistently grows the amount of funding allocated to priority services one year at a time. Background. During December 2005 and January 2006, presentations were made to the Mayor and Council on three primary services that are the focus of the plan: road maintenance, public safety, and parks and recreational programs and services. The discussions also included such issues as crime prevention and youth funding. Staff developed revenue projections and a plan that allocated revenue growth to the primary services presented to the Mayor and Council. The Financial Sustainability Plan was approved by the Mayor and Council on April 18, 2006. Use of Revenue Growth. One of the underlying premises of the Financial Sustainability Plan is that revenue growth would be applied to ensure continuous service improvements while still addressing human capital requirements of the city organization. Fiscal Year 2005, a year with positive economic conditions and a significant investment in services, was used a guide for determining the allocation amounts. In that fiscal year, 58% of the year's revenue growth went to services and 42% was used for human capital. Although it is recognized that future revenue growth will vary based on economic cycles, an average annual growth of $24 million is anticipated over the next ten years. It is recommended that 60% or just over $14 million of each year's revenue growth be allocated to services. Less than $10 million would be used to support human capital costs, such as salary and benefit adjustments. Savings of $2 to $3 million annually are anticipated from efforts to improve the effectiveness and efficiency of city services that will offset inflationary costs. The total allocation for service improvements for the ten-year plan is over $780 million beginning with $16 million in the first year, Fiscal Year 2007, and growing to more than $142 million in the tenth year. (Revenue projections due not include any general tax increases or new revenue sources.) The recommended goals and allocations for the priority services are as follows: Road Maintenance. Establish a sustainable road maintenance program to raise the condition of every roadway to “good” or better, with an emphasis on residential streets. The Financial Sustainability Plan proposes $133 million from future General Fund revenues be allocated to this goal; an additional $25 million is anticipated from Pima Association of Governments. B-2 Public Safety – Police. Increase the number of Police officers to 2.4 per thousand residents to improve service and timely response, emphasizing crime prevention. A total of $324 million is allocated to increase the Police force by 560 officers, including investments to improve effectiveness. This allocation includes $38 million for the judicial support required because of the increase in enforcement. Public Safety – Fire. Add new firefighters to ensure emergency call response within an average of 4 minutes and increase medical response capabilities, fire prevention efforts, and emergency and hazardous materials preparedness. The ten-year plan allocates $223 million for this goal, including the addition of 354 firefighters and paramedics. Parks and Recreation. Take care of our existing parks and centers and increase programs with an emphasis on youth, families, and seniors. Improvements in maintenance, programming, and other services, including those for social and educational issues, will be achieved with $104 million in funding over ten years. While many service needs are driven by a growing community, a significant portion is required to “catch up.” The above amounts to not include capital improvement project costs. Impact fees will help offset some of the costs associated with growth and capital improvements may be funded by future voter authorized bonds and other funding mechanisms. Revenue projections do not include any general tax increases or new revenue sources. B-3 B-4 LEGAL REQUIREMENTS The city’s budget is subject to requirements set by the State of Arizona's Constitution and statutes, and the Tucson City Charter. property added to a community due to annexations. The 2% increase applies to all taxable property. 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. LEGAL REQUIREMENTS IMPOSED BY THE STATE Expenditure Limitation – Home Rule 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. The constitution also allows cities, with voter approval, to adopt an alternative expenditure limitation, which is commonly referred to as Home Rule. 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 2005, the voters approved the Home Rule option for Fiscal Years 2007 through 2010. For each of those four fiscal years, the city's expenditure limitation will equal the total amount of budgeted expenditures in the annual budget adopted by the Mayor and Council after at least one public hearing. Because the city is also required to have a balanced budget, expenditures will never exceed available revenues. 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. 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 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 C-1 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 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. 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. LEGAL REQUIREMENTS IMPOSED BY THE CITY CHARTER 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. Legal requirements of the Tucson City Charter related to limiting property taxes and scheduling of budget adoption–are more restrictive than state law. Budget Revisions Property Tax Levy Limitation 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: 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. Fiscal Year The fiscal year of the city begins the first day of July of each year. (Tucson City Charter, Chapter XIII, Section 1) 1) Elected and Official 2) Neighborhood Services 3) Environment and Development 4) Strategic Initiatives 5) Support Services 6) Non-Departmental C-2 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 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) 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) 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 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) 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) Adoption of the Budget and Tax Levy 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 C-3 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 fund balance 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 The Mayor and Council have adopted a policy of increasing the General Fund unreserved fund balance to 10% of expenditures. Revenue Diversification Investment Policy 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. The Tucson 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/P-1, 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, non-investment 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. 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. When a service benefits a large segment of the community and is considered a public service, then it should be funded with general tax dollars. When the service benefits individuals and is more of a private service, a market-based fee is appropriate. Services that fall in between should be funded by a combination of taxes and fees. C-4 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 provide maximum future borrowing flexibility. C-5 STATEMENT REQUIRED BY ARIZONA REVISED STATUTES 42-17102 RELATIVE TO PROPERTY TAXATION PRIMARY AND SECONDARY TAX LEVIES FISCAL YEARS 2006, 2007, AND 2008 PROJECTED FY 2006 Adopted Levy Property Tax Primary $ Secondary Total $ 9,174,950 $ FY 2006 Revised Levy FY 2007 Levy 9,163,090 $ 24,220,340 26,808,660 33,410,400 $ 33,383,430 $ 36,541,710 Total 2 3 $ 569,960 $ 3,158,280 FY 2008 Levy Increase/ (Decrease) FY 2008 Levy $ 2,588,320 Actual FY 2006 Rate Property Tax 1 9,733,050 24,235,450 Primary Secondary FY 2007 Levy Increase/ (Decrease) 10,219,700 27,815,830 $ 38,035,530 $ 2 $ 1,007,170 $ FY 2007 Rate Increase/ (Decrease) Estimated FY 2007 Rate 3 486,650 FY 2007 Maximum Levy Amount 1,493,820 9,733,050 FY 2008 Maximum Levy Amount 1 $ 26,808,660 $ 36,541,710 10,219,700 1 27,815,830 $ 38,035,530 FY 2008 Rate Increase/ (Decrease) Estimated FY 2008 Rate 3 $ 0.3469 0.8895 $ 0.3411 0.8846 $ (0.0058) (0.0049) $ 0.3379 0.8659 $ (0.0032) (0.0187) $ 1.2364 $ 1.2257 $ (0.0107) $ 1.2038 $ (0.0219) The 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 in the previous year, such as new construction and annexed property. The primary property tax levy is shown at the estimated maximum possible amount. The actual maximum amount may be less. A general obligation bond sale of $13.3 million is assumed for Fiscal Year 2008. Both rates may differ depending on the final actual assessed valuation for the respective purposes. C-6 CITY OF TUCSON PROPERTY TAX SUMMARY Taxing Jurisdiction FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 Property Tax Rates (Per $100 of assessed value) State of Arizona Pima County $ 1 -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- 5.24 5.34 5.41 5.74 5.72 5.68 5.60 5.57 5.56 5.48 6.99 6.46 6.26 6.03 6.05 5.86 5.74 5.69 5.51 5.50 Pima Community College 1.24 1.18 1.19 1.37 1.56 1.55 1.53 1.49 1.34 1.31 Flood Control District 0.36 0.33 0.32 0.30 0.30 0.35 0.35 0.35 0.35 0.37 Fire District 0.05 0.05 0.05 0.05 0.05 0.05 0.04 0.04 0.04 0.04 Central Arizona Project (CAP) Conservation District 0.14 0.14 0.14 0.14 0.13 0.13 0.13 0.12 0.12 0.12 Tucson Unified School District 2 Sub-Total without the City of Tucson City of Tucson Total 3 Percent increase/(decrease) from prior year $ 14.02 $ 13.50 $ 13.37 $ 13.63 $ 13.81 $ 13.62 $ 13.39 $ 13.26 $ 12.92 $ 12.82 1.15 0.99 0.96 1.02 1.13 1.12 1.12 1.16 1.18 1.24 $ 15.17 $ 14.49 $ 14.33 $ 14.65 $ 14.94 $ 14.74 $ 14.51 $ 14.42 $ 14.10 $ 14.06 1.4% (4.5%) (1.1%) 2.2% 2.0% (1.3%) (1.6%) (0.6%) (2.2%) (0.3%) Assessed Valuation 1 2 3 Primary (billions) $ 1.582 $ 1.727 $ 1.830 $ 1.887 $ 1.999 $ 2.088 $ 2.203 $ 2.344 $ 2.477 $ 2.641 Secondary (billions) $ 1.599 $ 1.819 $ 1.904 $ 1.945 $ 2.049 $ 2.138 $ 2.269 $ 2.427 $ 2.558 $ 2.723 Includes the Education Assistance rate ($0.44 in Fiscal Year 2006). Tucson Unified School District tax levy reflects State Aid to Education reduction ($2.38 in Fiscal Year 2006). Does not include any special assessment districts. C-7 City of Tucson's Share of Residential Property Owner Tax Valuation Fiscal Year 2006 Property Taxes Pima County1 42% City of Tucson 9% CAP Conservation District 1% Tucson Unified School District2 39% Pima Community College 9% Tax Rate Per $1,000 Pima County 1 Tucson Unified School District $ 2 Pima Community College Central Arizona Project (CAP) Conservation District Percent of Total 5.89 5.50 1.31 42% 39% 9% 0.12 1% Sub-Total City of Tucson $ 12.82 1.24 91% 9% Total $ 14.06 100% 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-8 SCHEDULE A TO RESOLUTION NO. 20350 City of Tucson Summary Schedule of Estimated Revenues and Expenditures/Expenses Fiscal Year 2006-07 FUND 1. General Fund ESTIMATED REVENUES FUND ACTUAL OTHER THAN DIRECT BALANCE/ OTHER FINANCING EXPENDITURES/ PROPERTY PROPERTY TAX NET 2006-07 EXPENSES TAXES REVENUES ASSETS*** SOURCES 2005-06** 2006-07 2006-07 July 1, 2006** Primary: $ 9,733,050 $ 445,664,950 $ 50,785,800 $ 382,563,890 $ 364,353,020 $ Secondary: 261,257,310 288,538,910 2,175,490 319,331,690 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2005-06* $ 2. Special Revenue Funds 3. Debt Service Funds Available 4. Less: Designation for Future Debt Retirement 5. Total Debt Service Funds 6. Capital Projects Funds INTERFUND TRANSFERS 2006-07 IN $ TOTAL FINANCIAL BUDGETED RESOURCES EXPENDITURES/ EXPENSES AVAILABLE 20062006-07 07 12,648,100 $ 47,890,350 $ 470,941,550 $ 470,941,550 60,013,420 341,900,580 341,900,580 41,438,560 38,647,210 26,808,660 8,042,000 8,827,240 8,827,240 43,677,900 43,677,900 41,438,560 38,647,210 26,808,660 8,042,000 8,827,240 43,677,900 43,677,900 74,933,900 77,098,900 51,059,900 51,059,900 190,126,440 188,175,930 184,235,650 1,571,000 11,862,350 2,944,360 194,724,640 194,724,640 190,126,440 188,175,930 184,235,650 1,571,000 11,862,350 2,944,360 194,724,640 194,724,640 51,059,900 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 $ 1,008,394,480 $ 929,532,370 $ $ 36,541,710 $ 926,481,510 $ 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 105,592,190 $ $ 93,351,110 $ 59,661,950 $ 1,102,304,570 $ 2005-06 2006-07 (Home Rule Option) $ 1,008,394,480 $ 1,102,304,570 1,008,394,480 1,102,304,570 461,558,580 $ 546,835,900 $ 1,102,304,570 $ 547,129,880 $ 1,102,304,570 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 2005-06 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-12 1,102,304,570 SCHEDULE B TO RESOLUTION NO. 20350 City of Tucson Summary of Tax Levy and Tax Rate Information Fiscal Year 2006-07 2005-06 FISCAL YEAR 1. Maximum allowable primary property tax levy. A.R.S. §42-17051(A). $ 2. Amount received from primary property taxation in the 2005-06 fiscal year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18). $ 2006-07 FISCAL YEAR 9,174,950 $ 9,733,050 9,163,090 $ 9,733,050 3. Property tax levy amounts A. Primary property taxes $ B. Secondary property taxes 24,220,340 C. Total property tax levy amounts $ 33,383,430 $ 9,163,090 $ 9,163,090 26,808,660 $ 36,541,710 4. Property taxes collected* A. Primary property taxes (1) 2005-06 year's levy (2) Prior years’ levies (3) Total primary property taxes B. Secondary property taxes (1) 2005-06 year's levy (2) Prior years’ levies (3) Total secondary property taxes $ 24,220,340 $ 24,220,340 C. Total property taxes collected $ 33,383,430 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 0.3469 0.8895 1.2364 0.3411 0.8846 1.2257 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-13 SCHEDULE C TO RESOLUTION NO. 20350 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2006-07 ESTIMATED REVENUES 2005-06 SOURCE OF REVENUES ACTUAL REVENUES 2005-06* ESTIMATED REVENUES 2006-07 GENERAL FUND Local taxes Business Privilege Tax Public Utility Tax Transient Occupancy Tax Room Tax Occupational Taxes Liquor Taxes Use Tax $ 184,540,000 8,250,000 7,760,000 2,130,000 2,130,000 780,000 4,900,000 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 (PEG) Operating Support PEG Capital Support Telecommunications Licenses and Franchise Fees Utility Franchise Fees Intergovernmental Auto Lieu Taxes State Sales Tax State Revenue Sharing Grants-in-Aid Other $ 190,000,000 7,601,300 9,819,830 2,240,440 2,425,400 794,000 5,373,250 $ 199,500,000 7,750,000 10,210,000 2,280,000 2,470,000 810,000 5,640,000 190,000 305,000 440,000 75,000 220,700 600,000 500,000 271,150 339,520 304,220 336,890 267,000 340,000 388,650 360,000 212,360 300,000 3,040,000 970,000 3,056,260 1,045,780 3,180,000 1,090,000 600,000 608,960 630,000 760,000 672,780 760,000 12,620,000 13,200,000 13,800,000 23,230,000 47,670,000 50,930,000 410,820 813,000 23,695,750 52,000,000 50,954,690 358,180 879,890 22,900,000 51,930,000 60,500,000 351,070 995,650 580,940 6,973,000 10,980,000 4,200,000 248,500 7,810,690 11,885,640 3,838,930 198,920 8,201,000 11,750,000 3,540,000 1,520,000 570,000 5,430,000 460,000 590,000 2,155,330 2,060,000 1,843,240 908,010 6,676,330 303,280 622,410 2,155,330 2,198,150 1,900,000 940,000 6,700,000 320,000 660,000 2,169,410 2,281,200 750,000 1,214,630 1,300,000 Charges for services Fines and forfeits Prosecutor's Diversion Program Criminal Traffic Violations Driving Under the Influence City Court Miscellaneous Zoning Code Violations False Alarm Violations Other Interest on investments C-14 SCHEDULE C TO RESOLUTION NO. 20350 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2006-07 SOURCE OF REVENUES ESTIMATED REVENUES 2005-06 ACTUAL REVENUES 2005-06* ESTIMATED REVENUES 2006-07 In-lieu property taxes Contributions Voluntary contributions Miscellaneous Tenant Rent 1,561,990 805,000 413,000 275,000 3,750,000 3,109,060 2,304,110 Total General Fund $ 402,351,950 1,715,210 1,116,890 459,450 144,610 1,829,100 1,110,000 462,000 278,000 2,000,000 3,003,260 10,569,690 2,949,880 4,434,860 $ 416,716,690 $ 445,664,950 * 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-15 SCHEDULE C TO RESOLUTION NO. 20350 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2006-07 ESTIMATED REVENUES 2005-06 SOURCE OF REVENUES ACTUAL REVENUES 2005-06* ESTIMATED REVENUES 2006-07 SPECIAL REVENUE FUNDS Highway User Revenue Fund State Grants-in-Aid Interest Earnings Non-Revenue Receipts $ 42,468,000 550,000 2,525,000 $ 42,985,410 518,400 1,825,000 $ 42,468,000 520,000 1,525,000 Total Highway User Revenue Fund $ 45,543,000 $ 45,328,810 $ 44,513,000 $ 2,592,000 $ 2,592,000 $ 2,592,000 Total Local Transportation Assistance Fund $ 2,592,000 $ 2,592,000 $ 2,592,000 8,800,000 3,100,000 609,040 31,197,410 $ 9,604,530 3,579,430 $ 9,930,000 3,600,000 43,706,450 $ 31,998,280 $ $ 570,000 13,915,830 $ 570,000 12,915,830 $ Total Library Fund $ 14,485,830 $ 13,485,830 $ 8,645,930 7,498,000 14,076,500 $ 5,414,300 6,241,800 1,866,200 $ 30,220,430 $ 13,522,300 $ $ 2,280,000 46,003,450 $ 2,280,000 45,799,920 $ 2,280,000 58,049,750 Total Housing Assistance Funds $ 48,283,450 $ 48,079,920 $ 60,329,750 13,153,730 $ 10,173,740 $ 11,353,760 Local Transportation Assistance Fund State Grants-in-Aid Mass Transit Fund Charges for Current Services Local Operating Assistance State Grants-in-Aid Federal Grants $ Total Mass Transit $ Library Fund Charges for Current Services Local Operating Assistance Intergovernmental Funds State Grants-in-Aid $ County/Local Pima Association of Governments Regional Transportation Authority Total Intergovernmental Funds $ Housing Assistance Funds Public Housing Local Revenue Public Housing Federal Revenue Other Federal Funds Community Development Block Grant Entitlement Police Grants Transportation Grants Other Federal Grants $ 5,430,830 24,711,420 4,393,560 Total Other Federal Funds $ Other Special Revenue Funds Public Safety Academy Tucson Convention Center ParkWise Impact Fees Contributions 18,814,320 $ 34,853,610 2,939,820 22,546,300 3,963,790 48,383,610 6,261,960 21,639,600 23,067,000 25,000,000 75,968,560 5,516,110 17,855,700 5,670,450 47,689,540 $ 39,623,650 $ 40,396,020 878,950 3,501,500 3,526,000 $ 758,950 3,642,690 3,421,740 $ 883,240 4,083,000 4,187,230 6,852,500 350,000 3,510,000 1,451,540 Total Other Special Revenue Funds $ 11,416,450 $ 9,274,920 $ 16,355,970 Total Special Revenue Funds $ 243,937,150 $ 203,905,710 $ 288,538,910 * 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 NO. 20350 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2006-07 ESTIMATED REVENUES 2005-06 SOURCE OF REVENUES DEBT SERVICE FUNDS Street and Highway Debt Service Highway User Revenue Funds ACTUAL REVENUES 2005-06* ESTIMATED REVENUES 2006-07 $ 8,042,000 $ 8,054,090 $ 8,042,000 Total Street and Highway Debt Service $ 8,042,000 $ 8,054,090 $ 8,042,000 Total Debt Service Funds $ 8,042,000 $ 8,054,090 $ 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-17 SCHEDULE C TO RESOLUTION NO. 20350 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2006-07 ESTIMATED REVENUES 2005-06 SOURCE OF REVENUES ACTUAL REVENUES 2005-06* ESTIMATED REVENUES 2006-07 PERMANENT FUNDS None $ $ $ $ $ $ Total Permanent Funds $ $ $ ENTERPRISE FUNDS Environmental Services Fund Operating Revenue Non-Operating Revenue Miscellaneous Grants $ 37,227,000 1,089,490 410,000 $ 38,840,800 681,000 410,000 $ 39,487,600 510,500 910,500 Total Environmental Services Fund $ 38,726,490 $ 39,931,800 $ 40,908,600 $ 10,344,540 563,510 $ 8,238,000 1,667,480 $ 10,344,540 563,510 Total Golf Fund $ 10,908,050 $ 9,905,480 $ 10,908,050 $ 128,765,000 9,770,000 400,000 $ 124,822,000 10,412,000 400,000 $ 120,714,000 10,855,000 850,000 Total Water Utility Fund $ 138,935,000 $ 135,634,000 $ 132,419,000 Total Enterprise Funds $ 188,569,540 $ 185,471,280 $ 184,235,650 Golf Course Fund Operating Revenue Non-Operating Revenue Water Utility Fund Operating Revenue Non-Operating Revenue Miscellaneous Grants * 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 NO. 20350 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2006-07 ESTIMATED REVENUES 2005-06 SOURCE OF REVENUES ACTUAL REVENUES 2005-06* ESTIMATED REVENUES 2006-07 INTERNAL SERVICE FUNDS Not Applicable $ $ $ $ $ $ Total Internal Service Funds $ $ $ TOTAL ALL FUNDS $ 842,900,640 $ 814,147,770 $ 926,481,510 * 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 D TO RESOLUTION NO. 20350 City of Tucson Summary by Fund Type of Other Financing Sources/ and Interfund Transfers Fiscal Year 2006-07 OTHER FINANCING 2006-07 SOURCES FUND INTERFUND TRANSFERS 2006-07 IN GENERAL FUND $ 50,785,800 $ $ Business Privilege Tax Transfers from Fund Balance 47,890,350 12,648,100 Total General Fund $ SPECIAL REVENUE FUNDS Certificates of Participation Highway User Revenue Fund Library Fund Public Safety Academy Fund Tucson Convention Center Fund Mass Transit Fund Transfers from Fund Balance $ $ 50,785,800 $ $ 2,175,490 $ $ 12,648,100 $ $ 8,827,240 5,583,860 6,624,260 35,682,230 12,123,070 Total Special Revenue Funds $ $ $ 60,013,420 $ $ $ $ 8,827,240 $ Total Debt Service Funds $ $ $ 8,827,240 $ 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 2,175,490 $ 18,174,700 85,300 2,899,000 29,900,900 $ $ $ Total Capital Projects Funds $ 51,059,900 $ $ $ $ $ $ $ Total Permanent Funds $ $ $ $ $ $ PERMANENT FUNDS None ENTERPRISE FUNDS Certificates of Participation Transfers from/to Fund Balance $ 1,571,000 $ $ $ $ $ Total Internal Service Funds $ $ $ $ $ $ 105,592,190 C-20 11,862,350 2,944,360 $ TOTAL ALL FUNDS $ 1,571,000 8,827,240 $ 11,862,350 Total Enterprise Funds $ INTERNAL SERVICE FUNDS Not Applicable 47,890,350 93,351,110 $ $ 2,944,360 59,661,950 SCHEDULE E TO RESOLUTION NO. 20350 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2006-07 FUND/DEPARTMENT ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2005-06 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 & Independent Police Review Office of Public Defender Development Services Urban Planning & 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 $ 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 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2005-06 $ ACTUAL EXPENDITURES/ EXPENSES 2005-06* $ 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 3,128,540 2,211,740 4,125,610 7,540,050 9,929,540 7,061,800 58,790,860 2,763,210 42,365,580 130,304,280 731,870 BUDGETED EXPENDITURES/ EXPENSES 2006-07 $ 2,755,570 10,203,910 4,372,260 6,243,950 190,080 1,110,520 655,840 461,740 1,964,170 9,886,870 2,811,450 18,544,340 11,115,360 3,532,360 21,551,520 3,272,010 2,825,200 3,699,070 8,279,940 10,483,020 7,455,860 75,009,730 3,825,780 50,673,360 158,422,580 757,470 3,000,810 11,427,740 3,678,530 10,719,920 2,455,910 11,053,660 2,701,950 32,517,110 12,407,350 3,841,520 52,433,030 382,563,890 $ $ 364,353,020 $ 470,941,550 3,801,600 148,980 40,729,820 1,215,840 45,896,240 $ $ $ $ $ 1,401,220 148,980 38,643,040 1,415,840 41,609,080 $ 4,101,600 88,530 39,509,510 1,791,090 45,490,730 $ $ 2,592,000 2,592,000 $ 2,592,000 2,592,000 SPECIAL REVENUE FUNDS Highway User Revenue Fund Neighborhood Resources $ Urban Planning & Design Transportation Non-Departmental Total $ Local Transportation Assistance Fund Transportation Total $ Mass Transit Fund Transportation 2,592,000 2,592,000 82,667,340 67,076,530 86,225,940 Total $ 82,667,340 $ $ 67,076,530 $ Total $ 22,485,830 22,485,830 $ $ 21,485,790 21,485,790 $ Library Fund Library C-21 86,225,940 SCHEDULE E TO RESOLUTION NO. 20350 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2006-07 FUND/DEPARTMENT ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2005-06 Intergovernmental Funds City Attorney $ City Court Community Services Fire Library Parks & Recreation Police Urban Planning & Design Transportation Tucson Mexico Trade Office Information Technology General Services Non-Departmental Total $ Housing Assistance Funds Community Services $ Non-Departmental Total $ Community Development Block Grant Community Services $ Neighborhood Resources Office of Economic Development Non-Departmental Total $ Other Federal Grant Funds City Attorney $ Community Services Fire Information Technology Library Parks & Recreation Police Urban Planning & Design Transportation Office of Economic Development Tucson Mexico Trade Office General Services Non-Departmental Total $ Public Safety Academy Fund Fire $ Police Non-Departmental Total $ Tucson Convention Center Fund Tucson Convention Center $ Non-Departmental Total $ ParkWise Fund City Court $ Transportation Non-Departmental Total $ EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2005-06 ACTUAL EXPENDITURES/ EXPENSES 2005-06* 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 30,220,430 $ $ $ $ 48,190,170 93,280 48,283,450 $ $ $ $ 9,478,030 3,475,000 171,470 29,230 13,153,730 $ $ $ $ 424,700 535,840 98,380 $ $ 103,090 260,390 650,000 17,040 946,250 3,450,210 1,143,390 210,000 5,411,930 BUDGETED EXPENDITURES/ EXPENSES 2006-07 $ 15,533,290 1,181,980 210,000 55,480,140 30,000 1,300,000 13,522,300 $ 47,953,160 126,760 48,079,920 $ 9,398,030 575,010 171,470 29,230 10,173,740 $ 204,720 535,840 2,040,390 $ $ $ 53,250 237,220 2,939,820 390,000 22,546,300 342,050 160,320 720,930 5,430,830 390,000 24,711,420 342,050 381,660 1,500,000 30,000 500,000 200,000 75,968,560 60,183,380 146,370 60,329,750 7,425,170 3,907,500 21,090 11,353,760 338,440 398,540 911,880 300,000 581,590 5,516,110 390,000 17,855,700 34,535,810 $ $ 29,449,910 $ 2,951,860 2,693,610 278,680 5,924,150 $ $ $ $ $ 3,011,300 2,766,940 278,680 6,056,920 10,789,740 $ $ 10,682,040 $ 10,789,740 $ $ 10,682,040 $ 118,230 3,051,780 4,536,560 7,706,570 $ $ $ $ $ 118,230 3,006,140 4,198,170 7,322,540 C-22 148,260 362,190 1,972,700 350,000 $ $ 500,000 2,250,000 29,042,260 2,821,160 3,367,370 278,570 6,467,100 10,860,320 4,940 10,865,260 115,510 2,944,060 1,127,660 4,187,230 SCHEDULE E TO RESOLUTION NO. 20350 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2006-07 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2005-06 FUND/DEPARTMENT Fleet Services Funds Fire General Services EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2005-06 ACTUAL EXPENDITURES/ EXPENSES 2005-06* BUDGETED EXPENDITURES/ EXPENSES 2006-07 $ 1,755,000 9,811,400 $ $ 1,755,000 $ 2,175,490 Total $ 11,566,400 $ $ 1,755,000 $ 2,175,490 $ $ $ $ Total $ $ $ $ 775,000 6,077,500 6,852,500 3,100,000 410,000 3,510,000 319,331,690 $ $ $ $ 17,203,110 $ Impact Fees Parks & Recreation Transportation Contributions Parks & Recreation Transportation $ Total $ Total Special Revenue Funds $ $ $ $ 108,300 1,343,240 1,451,540 261,257,310 $ $ 350,000 350,000 341,900,580 $ 16,936,270 $ 16,869,240 DEBT SERVICE FUNDS Street and Highway Debt Service Non-Departmental $ General Obligation Debt Service Non-Departmental Total Debt Service Funds $ 24,235,450 21,710,940 26,808,660 41,438,560 $ $ 38,647,210 $ 43,677,900 2,681,400 439,000 4,811,400 211,700 15,938,200 928,000 $ $ 3,473,490 1,489,930 2,940,850 3,655,710 7,915,940 907,000 $ 2,639,300 25,009,700 $ $ 20,382,920 $ 374,500 18,174,700 2,727,200 2,727,200 $ $ 5,434,020 5,434,020 $ 85,300 85,300 7,994,000 7,994,000 $ $ 8,893,710 8,893,710 $ 2,899,000 2,899,000 39,203,000 39,203,000 $ $ 42,388,250 42,388,250 $ 29,900,900 29,900,900 74,933,900 $ $ 77,098,900 $ 51,059,900 $ $ $ $ Total Permanent Funds $ $ $ $ CAPITAL PROJECTS FUNDS General Obligation Bonds Fire $ Library Parks & Recreation Police Transportation Tucson Convention Center Non-Departmental Total $ Street and Highway Revenue Bonds Transportation Total $ Environmental Services Bonds Environmental Services Total $ Water Revenue Bonds Tucson Water Total $ Total Capital Projects Funds $ PERMANENT FUNDS None ENTERPRISE FUNDS Environmental Services Tucson City Golf Tucson Water 3,528,700 11,632,200 $ 37,860,090 13,088,050 139,178,300 $ $ 37,015,120 12,015,480 139,145,330 $ 39,465,240 10,978,050 144,281,350 Total Enterprise Funds $ 190,126,440 $ $ 188,175,930 $ 194,724,640 C-23 SCHEDULE E TO RESOLUTION NO. 20350 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2006-07 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2005-06 FUND/DEPARTMENT INTERNAL SERVICE FUNDS Not Applicable $ Total Internal Service Funds $ TOTAL ALL FUNDS $ 1,008,394,480 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2005-06 ACTUAL EXPENDITURES/ EXPENSES 2005-06* $ $ $ $ $ $ BUDGETED EXPENDITURES/ EXPENSES 2006-07 $ 929,532,370 $ $ 1,102,304,570 * 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-24 D-1 NUMBER OF CITY EMPLOYEES PER 1,000 POPULATION Other* 11.6 2.0 2.9 6.7 1999 11.6 1.9 2.9 6.8 2000 11.9 2.0 3.0 6.9 2001 Commissioned Public Safety Personnel** 11.7 2.0 3.0 6.7 2002 11.3 11.0 1.9 1.9 3.0 2.9 Enterprise Positions*** 11.1 1.9 2.9 11.0 10.5 10.6 1.8 1.8 1.7 3.1 3.2 5.7 5.7 2007 2008 2.9 6.4 6.2 6.3 6.3 2003 2004 2005 2006 * Beginning in Fiscal Year 2007, Library staff was transferred to Pima County. ** 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 2005 Calendar Year 2006 2007 2008 $ 26.408 6.9 $ 28.348 7.4 $ 30.248 6.7 $ 31.968 5.7 Retail Sales-Excluding Food (Billions of Dollars)* Percentage Change from Prior Year $ 8.566 $ 9.200 $ 9.621 $ 10.036 9.7 7.4 4.6 4.3 Residential Building Permits (Units) Percentage Change from Prior Year 11,913 14.4 11,317 (5.0) 10,584 (6.5) 9,637 (8.9) Gasoline Sales (Millions of Gallons) Percentage Change from Prior Year 394.0 2.5 399.7 1.5 412.3 3.1 424.9 3.1 Population (000)** Percentage Change from Prior Year 957.6 2.8 986.2 3.0 1,013.0 2.7 1,037.5 2.4 Wage and Salary Employment (000) Percentage Change from Prior Year 369.1 2.5 383.5 3.9 395.2 3.1 402.9 1.9 .385 .389 .390 .388 Real Per Capita Disposable Income (1982 Dollars) Percentage Change from Prior Year $ 12,448 $ 12,605 $ 12,802 $ 12,936 0.1 1.3 1.6 1.0 Annual Earnings Per Worker Percentage Change from Prior Year $ 38,477 4.2 $ 39,844 3.6 $ 41,336 3.7 $ 42,843 3.6 Consumer Price Index (CPI) Western Region (Percent Change) 3.1 2.7 1.9 2.1 Personal Consumption Deflator (Percent Change) 2.8 2.3 2.0 2.1 Gross Domestic Product (GDP) Implicit Price Deflator (Percent Change) 2.7 2.5 2.0 2.1 Employment/Population Ratio Source: Economic Outlook, May 2006, 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 has been 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 about 350 days of sunshine each year and an average temperature of 83 degrees. 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 40 public and private golf courses, and the Tucson area annually hosts a Professional Golfers’ Association (PGA) Tournament. In the winter, skiing is only a one-hour drive from Tucson. In February, the Professional Golfers’ Association announced that the Accenture Match Play Championship will be moving to Tucson in 2007. The event will feature the top 64 golfers in the world. The University of Arizona provides a full range of intercollegiate athletic events. The women’s softball team has won seven National Collegiate Athletic Association (NCAA) championships including the 2006 title. The men’s basketball team won the NCAA championship in 1997 and were runners up in the championship in 2001. Tucson 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. D-4 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. The university is rich in history. It was established in 1885 as the first university in the Arizona Territory and is the state’s only land grant institution. It has 334 fields of study with 18 colleges and 12 schools located on a 378-acre campus. Pima Community College (PCC) offers courses in more that 160 program areas. It has six campuses. For most of its 35 plus years PCC has ranked among the ten largest multi campus community colleges in the nation. 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, 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. City leaders are committed to ensuring that growth will complement existing neighborhoods. 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 540,000 in 2006. As with many communities in the West, growth has occurred at the edges of the urban 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 2006* Tucson 405,390 486,699 514,725 522,850 529,770 540,386 Pima County 666,880 843,746 910,950 932,500 957,635 981,110 158.30 square miles 194.15 square miles 194.36 square miles 196.32 square miles 223.36 square miles 226.10 square miles 226.13 square miles 231.70 square miles 226.55 square miles 229.50 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, 2003 Undeveloped Residential Commercial Government Industrial Open Space Agricultural Other Median Age 1970 1980 1990 2000 2004 52.84% 22.50% 4.06% 3.26% 3.09% 2.59% 0.77% 10.89% 25.7 years 28.3 years 30.8 years 32.1 years 32.3 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, 2005* (Based on number of full-time equivalent positions) U.S. Army Fort Huachuca Raytheon Missile Systems University of Arizona 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 U.S. Border Patrol Pima Community College Pascua Yaqui Tribe Amphitheater Public Schools 13,098 10,756 10,282 9,742 8,233 7,623 6,765 5,306* 4,980 4,123 3,751 3,665 3,276 2,969 2,515 2,248 2,184 2,174 *The staffing per Adopted Update for Fiscal Year 2006 was 6,041.51. Total Employment (Pima County) 2000 2001 2002 2003 2004 2005 2006* 444,400 443,900 448,900 451,200 465,560 487,300 507,300 Unemployment Rates (Pima County) 2000 2001 2002 2003 2004 2005 2.8% 3.5% 4.6% 4.2% 3.7% 4.4% Commercial 140 191 208 268 159 150 Industrial 8 17 7 16 8 6 Annual Rate of Earnings (Per worker in current dollars) 2000 $31,475 2001 $32,419 2002 $33,677 2003 $35,271 2004 $36,489 2005 $38,076 Building Permits Issued Residential 2001 2,712 2002 2,719 2003 2,497 2004 2,430 2005 2,302 2006 (Projected) 2,680 *Source: “Star Two Hundred,” The Arizona Daily Star, March 12, 2006. 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 Environmental Services Tons of Waste Collected Tons of Waste Collected by City of Tucson refuse and recycling services 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 Miles of Reclaimed 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 10 8 38 13 27 5 17 250 597,576 307,980 47,608 35,697 1,750 446 1,154 17,243 7,972,000 3,821,431 508 4,374 106 229,210 287 39.4 1,031 4.79 38.92 591 2,800 22,200 51,800 133 CITY OF TUCSON Components of the Total Financial Plan Fiscal Year 2007 Total Budget $ 1,102,304,570 Operating Budget $ 826,568,970 Capital Budget $ 275,735,600 Mayor and Council $ 3,272,010 EOP and IPR* $ 757,470 Police $ 149,739,440 Community Services $ 2,112,800 Budget and Research $ 2,455,910 Finance $ 11,053,660 Procurement $ 3,841,520 Development Services $ 305,000 City Attorney $ 8,766,640 Fire $ 73,668,260 Public Defender $ 3,000,810 Environmental Services $ 4,400,000 City Clerk $ 3,699,070 General Services $ 13,407,350 Transportation $ 104,293,970 Fire $ 10,239,300 City Court $ 10,960,720 Golf $ 10,908,050 Urban Planning and Design $ 4,367,060 Golf $ 70,000 City Manager $ 2,825,200 Human Resources $ 2,701,950 Water $ 113,848,350 Information Technology $ 16,860,000 Community Services $ 75,322,850 Information Technology $ 15,987,110 Outside Agencies $ 2,554,670 Neighborhood Resources $ 8,457,500 Convention Center $ 10,860,320 Neighborhood Resources $ 3,377,380 General Expense $ 31,561,330 Parks and Recreation $ 23,870,600 Development Services $ 11,122,740 Parks and Recreation $ 47,221,340 Debt Service $ 67,029,550 Police $ 18,748,600 Transportation $ 129,178,300 Environmental Services $ 37,964,240 Water $ 60,333,900 General Expense $ 1,159,600 *Equal Opportunity Programs and Independent Police Review E-1 REVENUES FISCAL YEAR 2007 ADOPTED Capital Projects Funds 5% Other Federal Revenues 7% Business Privilege Tax 18% Miscellaneous 14% Enterprise Funds 18% Charges for Current Services 4% Certificates of Participation 5% Public Housing State Revenue 5% Sharing 5% Grants and Shared Taxes 19% 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: 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 9,733,050 26,808,660 199,500,000 29,160,000 21,713,630 15,630,610 6,563,350 204,251,630 60,500,000 43,181,810 26,165,450 60,329,750 75,249,630 194,724,640 52,961,290 51,059,900 24,771,170 1% 2% 18% 3% 2% 1% 1% 19% 5% 4% 2% 5% 7% 18% 5% 5% 2% $ 1,102,304,570 100% E-2 EXPENDITURES FISCAL YEAR 2007 ADOPTED Environment and Development 42% Strategic Initiatives 1% Support Services 6% Neighborhood Services 40% Non-Departmental 9% Elected and Official 2% 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 $ Non-Departmental: Outside Agencies <1% General Expense 3% Debt Service 6% Percent of Total 18,562,920 438,455,120 465,813,560 10,860,320 66,307,500 2% 40% 42% 1% 6% 2,554,670 32,720,930 67,029,550 <1% 3% 6% $ 1,102,304,570 100% E-3 REVENUES FISCAL YEAR 2008 APPROVED Other Federal Revenues 5% Business Privilege Tax 20% Capital Projects Funds 3% Enterprise Funds 19% Miscellaneous 19% Charges for Current Services 4% Public Housing 5% State Revenue Sharing 7% Grants and Shared Taxes 18% 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 4% Other Local Taxes 3% Brought Forward/Fund Balance <1% Licenses and Permits 2% Non-Revenue Receipts 2% Secondary Property Tax 3% Fines, Forfeitures, and Penalties 2% Primary Property Taxes 1% Use of Money and Property 1% Percent of Total 10,219,700 27,815,830 209,500,000 29,970,000 22,153,630 15,906,680 6,570,700 189,092,170 69,580,000 44,256,960 20,150,220 55,929,320 54,803,430 202,621,570 43,604,640 35,331,000 4,446,030 1% 3% 20% 3% 2% 2% 1% 18% 7% 4% 2% 5% 5% 19% 4% 3% <1% $ 1,041,951,880 100% E-4 EXPENDITURES FISCAL YEAR 2008 APPROVED Environment and Development 41% Strategic Initiatives 1% Support Services 5% Non-Departmental 10% Neighborhood Services 41% Elected and Official 2% 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 $ Non-Departmental: Outside Agencies <1% General Expense 3% Debt Service 7% Percent of Total 19,861,750 428,806,790 426,580,160 10,860,320 51,874,810 2% 41% 41% 1% 5% 2,554,670 30,399,350 71,014,030 <1% 3% 7% $ 1,041,951,880 100% E-5 SUMMARY OF EXPENDITURES BY DEPARTMENT Actual FY 2005 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 Initiatives Tucson Convention Center Intergovernmental Relations Sub-Total $ 2,907,872 1,980,651 2,694,863 7,349,787 Adopted FY 2006 $ 3,264,070 2,281,310 4,921,830 8,085,460 Estimated FY 2006 $ 3,128,540 2,211,740 4,125,610 7,847,860 Adopted FY 2007 $ 3,272,010 2,825,200 3,699,070 8,766,640 Approved FY 2008 $ 3,272,010 2,820,980 4,899,130 8,869,630 14,933,173 18,552,670 17,313,750 18,562,920 19,861,750 10,751,463 57,185,437 65,553,024 21,408,383 4,593,539 52,499,344 11,782,697 126,158,302 701,199 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 10,308,160 65,598,830 69,088,080 23,975,220 4,739,440 49,102,160 12,015,480 140,810,140 731,870 10,960,720 77,435,650 83,907,560 -011,834,880 71,091,940 10,978,050 168,488,040 757,470 11,238,860 70,971,160 97,893,990 -06,420,880 62,660,340 10,908,050 164,960,230 757,470 2,750,612 2,813,750 2,755,570 3,000,810 2,995,810 353,384,000 395,134,650 379,124,950 438,455,120 428,806,790 8,926,462 143,460,268 3,901,419 11,013,910 199,140,760 5,208,220 10,203,910 160,213,090 5,121,240 11,427,740 233,472,270 4,367,060 11,237,740 185,733,940 4,363,960 39,622,252 142,038,553 177,202 45,854,090 178,381,300 192,820 45,908,830 181,533,580 190,080 42,364,240 174,182,250 -0- 48,961,910 176,282,610 -0- 338,126,156 439,791,100 403,170,730 465,813,560 426,580,160 10,650,224 594,673 11,717,740 565,860 11,589,040 655,840 10,860,320 -0- 10,860,320 -0- 11,244,897 12,283,600 12,244,880 10,860,320 10,860,320 E-6 Summary of Expenditures by Department (Continued) Actual FY 2005 Support Services Budget and Research Finance General Services Human Resources Information Technology Procurement $ Sub-Total Non-Departmental Outside Agencies General Expense Debt Service Office of Economic Development Tucson-Mexico Trade Office Sub-Total Total All Departments 1,924,643 8,898,653 10,405,659 2,819,390 13,442,115 3,337,933 Adopted FY 2006 $ 2,183,580 10,844,310 23,580,700 2,854,660 25,702,350 3,545,090 Estimated FY 2006 $ 1,964,170 9,886,870 11,115,360 2,811,450 18,574,340 3,532,360 Adopted FY 2007 $ 2,455,910 11,053,660 13,407,350 2,701,950 32,847,110 3,841,520 Approved FY 2008 $ 2,360,050 9,310,730 12,782,350 2,701,950 20,933,210 3,786,520 40,828,393 68,710,690 47,884,550 66,307,500 51,874,810 2,584,405 20,750,041 43,831,015 1,465,514 689,181 1,963,160 12,810,180 55,919,200 1,683,000 1,546,230 1,963,160 12,687,130 52,897,120 1,624,040 622,060 2,554,670 32,720,930 67,029,550 -0-0- 2,554,670 30,399,350 71,014,030 -0-0- 69,320,156 73,921,770 69,793,510 102,305,150 103,968,050 $ 827,836,775 $ 1,008,394,480 $ 929,532,370 $ 1,102,304,570 $ 1,041,951,880 SUMMARY BY CHARACTER OF EXPENDITURES Actual FY 2005 Personal Services Services Commodities Equipment Other Operating Total Capital Improvements Total All Expenditures $ 356,686,157 194,844,771 65,123,869 14,249,772 79,530,576 Adopted FY 2006 $ Estimated FY 2006 Adopted FY 2007 391,548,490 215,690,075 65,943,325 22,276,060 100,996,830 $ 383,802,460 211,794,140 65,680,830 11,166,370 95,024,590 710,435,145 117,401,630 796,454,780 211,939,700 767,468,390 162,063,980 826,568,970 275,735,600 845,384,280 196,567,600 $ 827,836,775 $ 1,008,394,480 $ 929,532,370 $ 1,102,304,570 $ 1,041,951,880 E-7 $ 393,941,750 225,369,850 67,017,800 16,547,820 123,691,750 Approved FY 2008 $ 410,382,340 219,645,070 68,279,610 11,544,340 135,532,920 REVENUES AND EXPENDITURES COMPARISONS Actual FY 2005 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 2006 Estimated FY 2006 9,382,696 $ 9,174,950 20,388,546 24,235,450 176,654,012 184,540,000 26,211,715 25,950,000 20,234,189 21,066,700 10,887,548 13,375,330 4,611,992 5,036,990 139,692,196 169,158,120 45,774,828 50,930,000 39,247,756 40,397,390 13,662,072 16,706,170 43,789,443 48,283,450 28,576,848 78,886,950 169,682,829 190,126,440 (1,655,000) -038,801,667 34,403,600 48,223,957 74,933,900 8,319,663 21,189,040 842,486,957 $ 1,008,394,480 $ 14,933,173 353,384,000 338,126,156 11,244,897 40,828,393 69,320,156 827,836,775 $ $ 18,552,670 395,134,650 439,791,100 12,283,600 68,710,690 73,921,770 $ 1,008,394,480 E-8 $ $ Adopted FY 2007 Approved FY 2008 9,163,090 24,220,340 190,000,000 28,254,220 20,519,250 15,329,160 5,764,240 156,123,560 50,954,690 42,819,250 12,408,680 48,079,920 58,437,970 188,175,930 -014,631,880 77,098,900 10,470,160 952,451,240 $ 9,733,050 26,808,660 199,500,000 29,160,000 21,713,630 15,630,610 6,563,350 204,251,630 60,500,000 43,181,810 26,165,450 60,329,750 75,249,630 194,724,640 -052,961,290 51,059,900 24,771,170 $ 1,102,304,570 $ 17,313,750 379,124,950 403,170,730 12,244,880 47,884,550 69,793,510 929,532,370 $ $ 18,562,920 438,455,120 465,813,560 10,860,320 66,307,500 102,305,150 $ 1,102,304,570 10,219,700 27,815,830 209,500,000 29,970,000 22,153,630 15,906,680 6,570,700 189,092,170 69,580,000 44,256,960 20,150,220 55,929,320 54,803,430 202,621,570 -043,604,640 35,331,000 4,446,030 $ 1,041,951,880 19,861,750 428,806,790 426,580,160 10,860,320 51,874,810 103,968,050 $ 1,041,951,880 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, because the expenditures are reflected in the funds of departments using those services. The major funds included in the budget are the General Fund, Special Revenue Funds, Enterprise Funds, Debt Service Funds, and Capital Projects Funds. General Fund The General Fund accounts for all revenues and expenditures used to finance 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 shared-state taxes, license and permit fees, fines and penalties, charges for services, certificates of participation, and other miscellaneous funding sources. These funds are expended in the Elected and Official, Neighborhood Services, Environment and Development, Strategic Initiatives, Support Services, and NonDepartmental program categories. Special Revenue Funds Special Revenue Funds are used to account for revenues derived from 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 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 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 revenue 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. 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.” E-9 EXPLANATION OF CITY FUNDS (Continued) 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. 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 purpose funds 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. 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. A good example is bond funds, which are sold and received in the fiscal year prior to the fiscal year they are budgeted and 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, because 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-10 COMPARISON OF GENERAL PURPOSE REVENUES TO TOTAL REVENUES ($000s) $1,200,000 1,102,305 1,041,952 1,008,394 $1,000,000 957,793 844,142 772,765 $800,000 $600,000 $400,000 375,387 352,023 424,723 388,323 461,390 481,261 $200,000 $-02003 Actual 2004 Actual 2005 Actual 2006 Adopted General Purpose Revenues 2007 Adopted 2008 Approved 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-11 REVENUES AND EXPENDITURES SUMMARY FISCAL YEARS 2007 AND 2008 BIENNIAL BUDGET FY 2007 FUNDING 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 GENERAL PURPOSE RESTRICTED FY 2008 FUNDING GENERAL PURPOSE TOTAL RESTRICTED TOTAL $ 9,733,050 -0199,500,000 29,160,000 20,485,650 12,540,000 2,420,000 77,422,000 60,500,000 41,640,650 1,650,000 -0-0-0-0-06,338,200 $ -026,808,660 -0-01,227,980 3,090,610 4,143,350 126,829,630 -01,541,160 24,515,450 60,329,750 75,249,630 194,724,640 52,961,290 51,059,900 18,432,970 $ 9,733,050 26,808,660 199,500,000 29,160,000 21,713,630 15,630,610 6,563,350 204,251,630 60,500,000 43,181,810 26,165,450 60,329,750 75,249,630 194,724,640 52,961,290 51,059,900 24,771,170 $ 10,219,700 -0209,500,000 29,970,000 20,910,650 12,790,000 2,420,000 81,462,000 69,580,000 42,663,510 1,640,020 -0-0-0-0-0100,000 $ -027,815,830 -0-01,242,980 3,116,680 4,150,700 107,630,170 -01,593,450 18,510,200 55,929,320 54,803,430 202,621,570 43,604,640 35,331,000 4,346,030 $ $ 461,389,550 $ 640,915,020 $ 1,102,304,570 $ 481,255,880 $ 560,696,000 $ 1,041,951,880 $ 17,806,210 274,473,310 75,485,520 10,219,320 43,771,250 39,633,940 $ 756,710 163,981,810 390,328,040 641,000 22,536,250 62,671,210 $ 18,562,920 438,455,120 465,813,560 10,860,320 66,307,500 102,305,150 $ 19,105,040 285,273,840 75,902,360 10,219,320 43,318,460 47,436,860 $ 756,710 143,532,950 350,677,800 641,000 8,556,350 56,531,190 $ $ 461,389,550 $ 640,915,020 $ 1,102,304,570 $ 481,255,880 $ 560,696,000 $ 1,041,951,880 E-12 10,219,700 27,815,830 209,500,000 29,970,000 22,153,630 15,906,680 6,570,700 189,092,170 69,580,000 44,256,960 20,150,220 55,929,320 54,803,430 202,621,570 43,604,640 35,331,000 4,446,030 19,861,750 428,806,790 426,580,160 10,860,320 51,874,810 103,968,050 REVENUES AND EXPENDITURES SUMMARY FISCAL YEAR 2007 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 9,733,050 26,808,660 199,500,000 29,160,000 21,713,630 15,630,610 6,563,350 204,251,630 60,500,000 43,181,810 26,165,450 60,329,750 75,249,630 194,724,640 52,961,290 51,059,900 24,771,170 $ 9,733,050 -0198,170,700 29,160,000 20,485,650 12,540,000 2,420,000 77,422,000 60,500,000 41,640,650 1,650,000 -0-0-0-0-03,045,600 $ -0-01,329,300 -0-0-0-0-0-0-0-0-0-0-0-0-03,292,600 $ 9,733,050 -0199,500,000 29,160,000 20,485,650 12,540,000 2,420,000 77,422,000 60,500,000 41,640,650 1,650,000 -0-0-0-0-06,338,200 $ -026,808,660 -0-01,227,980 3,090,610 4,143,350 50,691,530 -01,327,160 15,296,850 59,980,750 25,618,130 162,720,640 7,112,690 -011,782,970 $ -0-0-0-0-0-0-076,138,100 -0214,000 9,218,600 349,000 49,631,500 32,004,000 45,848,600 51,059,900 6,650,000 $ -026,808,660 -0-01,227,980 3,090,610 4,143,350 126,829,630 -01,541,160 24,515,450 60,329,750 75,249,630 194,724,640 52,961,290 51,059,900 18,432,970 $ 1,102,304,570 $ 456,767,650 $ 4,621,900 $ 461,389,550 $ 369,801,320 $ 271,113,700 $ 640,915,020 $ 18,562,920 438,455,120 465,813,560 10,860,320 66,307,500 102,305,150 $ 17,806,210 273,923,310 72,198,720 10,219,320 43,771,250 38,848,840 $ -0550,000 3,286,800 -0-0785,100 $ 17,806,210 274,473,310 75,485,520 10,219,320 43,771,250 39,633,940 $ 756,710 101,033,010 199,397,640 641,000 5,676,250 62,296,710 $ -062,948,800 190,930,400 -016,860,000 374,500 $ 756,710 163,981,810 390,328,040 641,000 22,536,250 62,671,210 $ 1,102,304,570 $ 456,767,650 $ 4,621,900 $ 461,389,550 $ 369,801,320 $ 271,113,700 $ 640,915,020 E-13 REVENUES AND EXPENDITURES SUMMARY FISCAL YEAR 2008 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 10,219,700 27,815,830 209,500,000 29,970,000 22,153,630 15,906,680 6,570,700 189,092,170 69,580,000 44,256,960 20,150,220 55,929,320 54,803,430 202,621,570 43,604,640 35,331,000 4,446,030 $ 10,219,700 -0208,167,700 29,970,000 20,910,650 12,790,000 2,420,000 81,462,000 69,580,000 42,663,510 1,640,020 -0-0-0-0-0100,000 $ -0-01,332,300 -0-0-0-0-0-0-0-0-0-0-0-0-0-0- $ 10,219,700 -0209,500,000 29,970,000 20,910,650 12,790,000 2,420,000 81,462,000 69,580,000 42,663,510 1,640,020 -0-0-0-0-0100,000 $ -027,815,830 -0-01,242,980 3,116,680 4,150,700 56,479,970 -01,366,550 10,849,700 55,782,620 23,388,530 176,233,570 2,002,540 -03,031,030 $ -0-0-0-0-0-0-051,150,200 -0226,900 7,660,500 146,700 31,414,900 26,388,000 41,602,100 35,331,000 1,315,000 $ -027,815,830 -0-01,242,980 3,116,680 4,150,700 107,630,170 -01,593,450 18,510,200 55,929,320 54,803,430 202,621,570 43,604,640 35,331,000 4,346,030 $ 1,041,951,880 $ 479,923,580 $ 1,332,300 $ 481,255,880 $ 365,460,700 $ 195,235,300 $ 560,696,000 $ 19,861,750 428,806,790 426,580,160 10,860,320 51,874,810 103,968,050 $ 19,105,040 285,273,840 74,570,060 10,219,320 43,318,460 47,436,860 $ -0-01,332,300 -0-0-0- $ 19,105,040 285,273,840 75,902,360 10,219,320 43,318,460 47,436,860 $ 756,710 94,689,250 211,882,300 641,000 1,960,250 55,531,190 $ -048,843,700 138,795,500 -06,596,100 1,000,000 $ 756,710 143,532,950 350,677,800 641,000 8,556,350 56,531,190 $ 1,041,951,880 $ 479,923,580 $ 1,332,300 $ 481,255,880 $ 365,460,700 $ 195,235,300 $ 560,696,000 E-14 REVENUES AND EXPENDITURES COMPARISONS AND FUND BALANCE GENERAL FUND Actual FY 2005 Beginning Fund Balance 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 Adopted FY 2006 Estimated FY 2006 Adopted FY 2007 Approved FY 2008 $ 10,871,979 $ 35,174,030 $ 28,315,663 $ 48,725,133 $ 48,725,133 9,382,696 176,654,012 (53,018,483) 26,211,715 18,889,468 10,341,490 2,616,594 69,014,175 45,774,828 22,774,261 9,934,842 30,238,268 -0- 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 9,163,090 190,000,000 (52,361,140) 28,254,220 20,047,920 14,706,750 2,929,840 76,053,930 50,954,690 24,663,650 9,105,690 9,738,280 1,505,570 9,733,050 199,500,000 (47,890,350) 29,160,000 21,115,650 14,970,610 3,129,100 75,181,070 60,500,000 24,685,570 17,422,950 50,785,800 12,648,100 10,219,700 209,500,000 (47,468,510) 29,970,000 21,540,650 15,236,680 3,129,100 79,130,070 69,580,000 25,258,430 18,385,220 41,999,640 470,000 368,813,866 382,563,890 384,762,490 470,941,550 476,950,980 Less Unbudgeted Fund Balance Requirements Total Funds Available $ (10,871,979) $ (35,174,030) $ (28,315,663) $ (48,725,133) $ (48,725,133) 368,813,866 382,563,890 384,762,490 470,941,550 476,950,980 Expenditures Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental $ 14,620,385 $ 17,979,100 $ 17,005,940 $ 18,076,220 $ 19,375,050 236,943,322 262,057,680 254,702,710 309,628,610 323,729,400 39,496,753 22,235,170 21,010,200 25,826,190 29,665,160 2,457,807 2,622,260 2,228,100 -0-040,675,515 55,869,290 47,854,550 64,977,500 50,544,810 19,969,905 21,800,390 21,551,520 52,433,030 53,636,560 Total Expenditures Available Funds Over/(Under) Expenditures 354,163,687 382,563,890 $ 14,650,179 $ 364,353,020 -0- $ 20,409,470 $ 470,941,550 -0- $ 476,950,980 -0- Unbudgeted Fund Balance Requirements From Prior year From Available Funds Transfers from/(to) other Funds or Reserves Total $ 10,871,979 $ 35,174,030 $ 28,315,663 $ 48,725,133 $ 48,725,133 14,650,179 -020,409,470 -0-02,793,505 -0-0-0-0$ 28,315,663 $ 35,174,030 $ 48,725,133 $ 48,725,133 $ 48,725,133 Notes on Changes to Fund Balance: FY 2005 - Funds previously reserved now available for future needs. E-15 REVENUES AND EXPENDITURES COMPARISONS AND FUND BALANCE OTHER FUNDS Actual FY 2005 Adopted FY 2006 Estimated FY 2006 Adopted FY 2007 Approved FY 2008 SPECIAL REVENUE FUNDS Beginning Fund Balance $ 33,151,787 $ 33,761,787 $ 30,978,515 $ 30,978,515 $ 30,978,515 Revenues and Other Sources Expenditures 219,956,341 (219,956,338) Surplus/(Deficit) Transfers from/(to) other Funds or Reserves Ending Fund Balance 319,331,690 (319,331,690) 3 (2,173,275) 261,257,310 (261,257,310) 341,900,580 (341,900,580) 282,395,300 (282,395,300) -0- -0- -0- -0- -0- -0- -0- -0- $ 30,978,515 $ 33,761,787 $ 30,978,515 $ 30,978,515 $ 30,978,515 ENTERPRISE FUNDS Beginning Fund Balance $ 39,610,142 $ 42,124,882 $ (18,560,531) $ (18,237,931) $ (27,155,921) Revenues and Other Sources Expenditures 170,145,025 (169,682,829) Surplus/(Deficit) Transfers from/(to) other Funds or Reserves Ending Fund Balance 192,846,790 (190,126,440) 188,498,530 (188,175,930) 462,196 2,720,350 322,600 (58,632,869) -0- -0- 185,806,650 (194,724,640) 205,011,640 (202,621,570) (8,917,990) 2,390,070 -0- -0- $ (18,560,531) $ 44,845,232 $ (18,237,931) $ (27,155,921) $ (24,765,851) DEBT SERVICE FUNDS Beginning Fund Balance $ Revenues and Other Sources Expenditures 35,809,964 (35,809,964) Surplus/(Deficit) Ending Fund Balance -0- $ -0- $ 41,438,560 (41,438,560) -0- $ 41,156,610 (38,647,210) 2,509,400 $ 43,677,900 (43,677,900) 2,509,400 44,653,030 (44,653,030) -0- -0- 2,509,400 -0- -0- $ -0- $ -0- $ 2,509,400 $ 2,509,400 $ 2,509,400 $ -0- $ -0- $ -0- $ -0- $ -0- CAPITAL PROJECTS FUND Beginning Fund Balance Revenues and Other Sources Expenditures 48,223,957 (48,223,957) Surplus/(Deficit) Ending Fund Balance $ 74,933,900 (74,933,900) 77,098,900 (77,098,900) 51,059,900 (51,059,900) 35,331,000 (35,331,000) -0- -0- -0- -0- -0- -0- $ -0- $ -0- $ -0- $ -0- Notes on Changes to Fund Balance: Special Revenue Funds - Environmental Services Fund transferred from Special Revenue to Enterprise Funds. Enterprise Funds - In Fiscal Year 2005, the establishment of Environmental Services as an enterprise fund resulted in a negative fund balance of ($61.8 million) due to long-term liabilities associated with landfill closure and post-closure costs. E-16 REVENUE DETAIL ALL FUNDS SUMMARY Actual FY 2005 FINANCIAL RESOURCES GENERAL FUND SPECIAL REVENUE FUNDS ENTERPRISE FUNDS DEBT SERVICE FUNDS CAPITAL PROJECTS FUNDS TOTAL ALL FUNDS 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, Forfeitures, and Penalties 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 Adopted FY 2006 Estimated FY 2006 $ 368,813,866 $ 382,563,890 $ 384,762,490 $ 219,956,341 319,331,690 261,257,310 169,682,829 190,126,440 188,175,930 35,809,964 41,438,560 41,156,610 48,223,957 74,933,900 77,098,900 Adopted FY 2007 470,941,550 $ 341,900,580 194,724,640 43,677,900 51,059,900 Approved FY 2008 476,950,980 282,395,300 202,621,570 44,653,030 35,331,000 $ 842,486,957 $ 1,008,394,480 $ 952,451,240 $ 1,102,304,570 $ 1,041,951,880 $ 9,382,696 $ 9,174,950 $ 9,163,090 $ 176,654,012 184,540,000 190,000,000 (53,018,483) (55,905,910) (52,361,140) 9,733,050 $ 199,500,000 (47,890,350) 10,219,700 209,500,000 (47,468,510) 29,160,000 21,115,650 14,970,610 3,129,100 75,181,070 60,500,000 24,685,570 17,422,950 50,785,800 4,078,100 8,570,000 29,970,000 21,540,650 15,236,680 3,129,100 79,130,070 69,580,000 25,258,430 18,385,220 41,999,640 -0470,000 $ 368,813,866 $ 382,563,890 $ 384,762,490 $ 470,941,550 $ 476,950,980 $ 51,363,483 $ 55,905,910 $ 52,361,140 $ 1,344,721 746,000 471,330 546,058 590,000 622,410 1,995,398 2,725,000 2,834,400 55,256,603 80,644,190 63,133,360 16,473,495 16,850,450 18,155,600 2,555,153 2,280,000 2,280,000 69,811,138 124,890,400 104,237,890 3,727,230 6,050,000 3,302,990 8,563,399 15,068,400 4,893,600 3,236,600 2,972,920 5,115,720 5,083,063 10,608,420 3,848,870 47,890,350 $ 597,980 660,000 3,434,250 112,201,320 18,496,240 2,280,000 133,299,380 8,742,500 2,175,490 5,717,400 6,405,670 47,468,510 612,980 670,000 3,441,600 93,124,900 18,998,530 2,280,000 108,452,750 1,765,000 1,605,000 -03,976,030 $ 219,956,341 $ 319,331,690 $ 261,257,310 $ 341,900,580 $ 282,395,300 26,211,715 18,889,468 10,341,490 2,616,594 69,014,175 45,774,828 22,774,261 9,934,842 30,238,268 -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 E-17 28,254,220 20,047,920 14,706,750 2,929,840 76,053,930 50,954,690 24,663,650 9,105,690 9,738,280 1,141,600 363,970 REVENUE DETAIL ALL FUNDS SUMMARY Actual FY 2005 FINANCIAL RESOURCES Enterprise Funds Environmental Services General Fund Contributions 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 2006 Estimated FY 2006 Adopted FY 2007 Approved FY 2008 33,062,534 $ 37,860,090 $ 37,015,120 $ 1,655,000 -0-011,782,697 13,088,050 12,015,480 123,182,598 139,178,300 139,145,330 39,465,240 $ -010,978,050 144,281,350 47,460,910 -010,908,050 144,252,610 $ 169,682,829 $ 190,126,440 $ 188,175,930 $ 194,724,640 $ 202,621,570 $ 20,388,546 $ 15,421,418 24,235,450 $ 17,203,110 24,220,340 $ 16,936,270 26,808,660 $ 16,869,240 27,815,830 16,837,200 $ 35,809,964 $ 41,438,560 $ 41,156,610 $ 43,677,900 $ 44,653,030 $ 48,223,957 $ 74,933,900 $ 77,098,900 $ 51,059,900 $ 35,331,000 $ 48,223,957 $ 74,933,900 $ 77,098,900 $ 51,059,900 $ 35,331,000 E-18 GENERAL FUND Actual FY 2005 FINANCIAL RESOURCES Approved FY 2008 Business Privilege Tax Less Contributions to Special Revenue Funds $ 176,654,012 $ 184,540,000 $ 190,000,000 $ 199,500,000 $ 209,500,000 (53,018,483) (55,905,910) (52,361,140) (47,890,350) (47,468,510) Business Privilege Tax $ 123,635,529 $ 128,634,090 $ 137,638,860 $ 151,609,650 $ 162,031,490 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 (PEG) Operating Support PEG Capital Support Telecommunications Licenses and Franchise Fees Utility Franchise Fees Total 7,654,851 $ 8,814,161 1,954,331 2,098,216 740,742 4,949,414 8,250,000 $ 7,760,000 2,130,000 2,130,000 780,000 4,900,000 9,163,090 $ Adopted FY 2007 $ $ 9,174,950 $ Estimated FY 2006 Primary Property Tax Other Local Taxes Public Utility Tax Transient Occupancy Tax Room Tax Occupational Taxes Liquor Taxes Use Tax 9,382,696 $ Adopted FY 2006 9,733,050 $ 10,219,700 7,601,300 $ 7,750,000 $ 7,750,000 9,819,830 10,210,000 10,620,000 2,240,440 2,280,000 2,330,000 2,425,400 2,470,000 2,520,000 794,000 810,000 830,000 5,373,250 5,640,000 5,920,000 $ 26,211,715 $ 25,950,000 $ 28,254,220 $ 29,160,000 $ 29,970,000 $ 200,120 $ 316,884 295,848 56,597 43,546 -0-0- 190,000 $ 305,000 440,000 75,000 220,700 600,000 500,000 271,150 $ 339,520 304,220 336,890 -0-0212,360 267,000 $ 340,000 388,650 360,000 -0-0300,000 267,000 340,000 398,650 365,000 -0-0310,000 3,106,676 785,108 3,040,000 970,000 3,056,260 1,045,780 3,180,000 1,090,000 3,180,000 1,090,000 590,991 739,001 600,000 760,000 608,960 672,780 630,000 760,000 630,000 760,000 12,754,697 12,620,000 13,200,000 13,800,000 14,200,000 $ 18,889,468 $ 20,320,700 $ 20,047,920 $ 21,115,650 $ 21,540,650 E-19 GENERAL FUND Actual FY 2005 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 Civil Fines/Violations Forfeitures/Assessments False Alarm Violations Offroad Vehicle Violations Dishonored Check Recovery $ Sub-Total Total Grants and Shared Taxes Shared State Taxes Auto Lieu Taxes State Sales Tax Sub-Total 1,355,022 $ 325,782 585,567 5,158,667 153,105 10,615 405,455 993,351 250,365 1,520,000 $ 380,000 570,000 5,430,000 175,000 12,000 460,000 1,060,000 250,000 9,237,929 9,857,000 559,216 $ 23,110 1,871 7,118 1,753 354,379 144,030 794 11,290 1,103,561 Estimated FY 2006 1,843,240 $ 276,100 908,010 6,676,330 147,750 14,270 303,280 1,235,400 260,000 11,664,380 Adopted FY 2007 1,900,000 $ 300,000 940,000 6,700,000 160,000 16,000 320,000 1,260,000 261,200 11,857,200 Approved FY 2008 1,940,000 308,000 960,000 6,830,000 160,000 16,000 330,000 1,285,000 262,420 12,091,420 590,000 $ 27,000 3,000 10,000 4,000 2,155,330 128,000 1,000 10,000 622,410 $ 17,930 5,730 8,620 7,130 2,155,330 213,750 860 10,610 660,000 $ 25,000 10,000 10,000 8,000 2,169,410 220,000 1,000 10,000 670,000 30,000 10,000 10,000 10,000 2,184,260 220,000 1,000 10,000 2,928,330 3,042,370 3,113,410 3,145,260 $ 10,341,490 $ 12,785,330 $ 14,706,750 $ 14,970,610 $ 15,236,680 Use of Money and Property Rentals and Leases Tenant Rent Telephone Pay Booths Interest Earnings Total Adopted FY 2006 1,066,164 808,213 14,903 727,314 $ 2,616,594 $ 782,000 761,990 18,000 750,000 2,311,990 $ 998,120 709,100 7,990 1,214,630 1,112,000 709,100 8,000 1,300,000 1,112,000 709,100 8,000 1,300,000 2,929,840 $ 3,129,100 $ 3,129,100 $ 23,187,797 $ 23,230,000 $ 23,695,750 $ 22,900,000 $ 23,820,000 45,700,066 47,670,000 52,000,000 51,930,000 55,050,000 68,887,863 70,900,000 E-20 75,695,750 74,830,000 78,870,000 GENERAL FUND Actual FY 2005 FINANCIAL RESOURCES Grants and Shared Taxes (Continued) State and Local Grants City Manager's Office $ Parks and Recreation Grants General Services Grants Other Sub-Total Total State Revenue Sharing 126,312 Public Safety University of Arizona Fire Services Emergency Medical Transport Police Reprographics Services Police Vehicle Impoundment Police Protection Orders Sub-Total Development Services Charges Permit and Inspection Fees Review Fees Zoning Adjustments Other Sub-Total Estimated FY 2006 Adopted FY 2007 Approved FY 2008 -0- $ 410,820 -0-0- -0- $ 335,880 22,300 -0- -0- $ 269,070 82,000 -0- -0194,070 66,000 -0- 410,820 358,180 351,070 260,070 $ 69,014,175 $ 71,310,820 $ 76,053,930 $ 75,181,070 $ 79,130,070 $ 45,774,828 $ 50,930,000 $ 50,954,690 $ 60,500,000 $ 69,580,000 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 3,910 $ 7,804 93,670 20,928 Adopted FY 2006 26,000 $ 26,000 $ 26,000 $ 26,000 $ 26,000 685,492 680,000 736,110 849,650 852,510 18,143 20,000 23,260 25,000 25,000 235,292 46,259 15,743 220,000 313,080 27,860 177,920 20,500 26,820 148,920 -025,000 148,920 -025,000 1,026,929 1,286,940 1,010,610 1,074,570 1,077,430 107,602 107,000 117,780 120,000 120,000 6,663,360 78,378 -054 6,893,000 79,000 -01,000 7,644,100 97,080 69,480 30 8,030,000 100,000 70,000 1,000 8,430,000 100,000 70,000 1,000 6,849,394 7,080,000 7,928,470 8,321,000 8,721,000 8,056,764 1,950,346 477,824 83,769 8,550,000 1,820,000 560,000 50,000 9,145,960 2,038,500 638,150 63,030 9,100,000 1,990,000 610,000 50,000 9,190,000 1,990,000 610,000 50,000 10,568,703 10,980,000 11,885,640 11,750,000 11,840,000 E-21 GENERAL FUND Actual FY 2005 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 Baseball Adaptive Recreation Center El Rio Center Programs Quincie Douglas Center Clements Center Rodeo Grounds Miscellaneous Sub-Total Total Non-Revenue Receipts Sale of Property Real Property Used Vehicles Inventory and Other Materials Unclaimed Property Other Sub-Total Recovered Expenditures Uninsured Damages Industrial Insurance Payroll Deductions Charges Reimbursement for Services Other Sub-Total 988,749 $ 430,208 133,482 56,602 311,621 195,641 211,517 44,557 8,364 240,481 132,781 982,646 342,512 -017,818 27,687 25,265 73,488 105,816 Adopted FY 2006 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 -020,000 20,000 20,000 20,000 40,000 Estimated FY 2006 989,620 $ 359,570 108,500 36,060 315,850 144,240 174,420 37,080 5,090 383,280 114,590 633,160 260,630 87,980 21,030 31,550 84,430 20,440 31,410 Adopted FY 2007 940,000 $ 320,000 100,000 40,000 260,000 160,000 160,000 30,000 70,000 340,000 100,000 620,000 200,000 70,000 20,000 20,000 40,000 20,000 30,000 Approved FY 2008 960,000 320,000 100,000 40,000 260,000 160,000 160,000 40,000 70,000 340,000 100,000 650,000 220,000 70,000 20,000 20,000 40,000 20,000 30,000 4,329,235 4,200,000 3,838,930 3,540,000 3,620,000 $ 22,774,261 $ 23,546,940 $ 24,663,650 $ 24,685,570 $ 25,258,430 $ 3,993,636 $ 267,407 89,094 38,013 29,940 510,000 $ 60,000 80,000 30,000 125,000 613,160 $ 202,000 192,110 42,550 67,070 620,000 $ 200,000 150,000 40,000 100,000 620,000 200,000 150,000 40,000 100,000 4,418,090 805,000 1,116,890 1,110,000 1,110,000 7,199 167,858 1,906 81,258 135,466 30,000 195,000 3,000 45,000 140,000 40,080 209,810 1,950 39,910 167,700 40,000 200,000 2,000 50,000 170,000 40,000 200,000 2,000 50,000 170,000 393,687 413,000 459,450 462,000 462,000 E-22 GENERAL FUND Actual FY 2005 FINANCIAL RESOURCES Non-Revenue Receipts (Continued) Sundry Income Reimbursement Court Attorney $ Fees Employee Fees Election Campaign Contributions Open Space Contributions Other 90,059 $ Adopted FY 2006 75,000 $ Estimated FY 2006 75,360 $ Adopted FY 2007 80,000 $ Approved FY 2008 80,000 8,116 182 11,297 389,338 8,000 50,000 12,000 130,000 8,180 13,050 10,210 37,810 8,000 50,000 10,000 130,000 8,000 50,000 10,000 130,000 498,992 275,000 144,610 278,000 278,000 Other General Revenues -0- 3,750,000 -0- 2,000,000 2,000,000 Off Duty Police Program 3,067,927 3,109,060 2,949,880 3,003,260 3,003,260 Other Funding Sources 1,556,146 2,304,110 4,434,860 10,569,690 11,531,960 Sub-Total Total $ 9,934,842 $ 10,656,170 $ 9,105,690 $ 17,422,950 $ 18,385,220 Certificates of Participation $ 30,238,268 $ 19,335,200 $ 9,738,280 $ 50,785,800 $ 41,999,640 Brought Forward $ -0- $ 3,628,700 $ 1,141,600 $ 4,078,100 $ -0- -0-0- 3,979,000 -0- 363,970 -0- 8,570,000 -0- 470,000 -0- -0- $ 3,979,000 $ 363,970 $ 8,570,000 $ 470,000 Use/Transfers to Fund Balance Uses of Fund Balance Transfers to Fund Balance Use/Transfers to Fund Balance Total General Fund $ $ 368,813,866 $ 382,563,890 $ 384,762,490 $ 470,941,550 $ 476,950,980 E-23 GENERAL FUND HIGHLIGHTS Primary Property Tax The city's Fiscal Year 2007 projected primary property tax revenue is $558,100 higher than the Fiscal Year 2006 adopted revenues. Although the tax rate will be lower, assessed property valuations have risen, which results in the additional revenue. The Fiscal Year 2007 levy of $9,733,050 is set at the maximum allowable primary property tax as estimated by the Pima County Assessor. The Fiscal Year 2008 projected primary property tax increases another $486,650, which is due to further projected increases in property valuations. Business Privilege Tax Revenue from the business privilege tax, or sales tax, is a funding source for the General Fund and the Special Revenue Funds. For Fiscal Year 2007 the total projected sales tax collections are $199,500,000, an increase of 8% over the Fiscal Year 2006 Adopted Budget. For Fiscal Year 2008, projected tax collections are $209,500,000, another 5% increase. The increases for Fiscal Years 2007 and 2008 are based on a continuation of the strong economic growth Tucson is experiencing. The amount of city sales tax allocated to the General Fund for Fiscal Year 2007 increases $22,975,560, while the allocation to the Special Revenue Funds decreases by $8,015,560. The decrease to the Special Revenue Funds is partially due to the transfer of the contribution for the Library from Special Revenue Funds to the General Fund. The amount allocated to the General Fund for Fiscal Year 2008 increases another $10,421,840. Other Local Taxes Other local tax revenues projected for Fiscal Year 2007 increased $3,210,000 over adopted Fiscal Year 2006 amounts, a 12% increase, which is primarily due to the rebounding of the tourism sector of the local economy. The Fiscal Year 2008 estimate is another increase of $810,000 or 3%, reflecting a return to moderate growth in the near future. Licenses and Permits For Fiscal Year 2007, this revenue source increased by $794,950 or 4% over the adopted Fiscal Year 2006 revenues, primarily due to an increase in Utility Franchise Fees that is based on economic growth. The Fiscal Year 2008 estimate increases by $425,000, because Utility Franchise Fees are expected to continue growing. Fines, Forfeitures, and Penalties Total revenues in Fiscal Year 2007 from all fines, forfeitures, and penalties are forecast to increase $2,185,280 from Fiscal Year 2006 adopted revenues. Much of the increase is due to projections for criminal traffic violations, based on revenue growth experienced during Fiscal Year 2006. The increase for Fiscal Year 2008 is $266,070. Use of Money and Property An increase of $817,110 for Fiscal Year 2007 from Fiscal Year 2006 adopted revenues is projected due to higher interest rates and rental income. The Fiscal Year 2008 projection anticipates no change from Fiscal Year 2007. Grants and Shared Taxes State-shared taxes and other state and local grant funds increased $3,870,250 for Fiscal Year 2007 over Fiscal Year 2006 adopted revenues. Auto lieu taxes are projected to decrease $330,000 and grants by $59,750. Those reductions are offset by an increase of $4,260,000 in state-shared sales tax. For Fiscal Year 2008, revenues from grants and shared taxes are expected to increase another $3,949,000. The increases in Fiscal Years 2007 and 2008 reflect Arizona's continuing economic growth. Fiscal Year 2007 revenue from state-shared sales and auto lieu taxes reflects the results of the mid-decade census: Tucson is growing at a slower rate than many other Arizona cities and towns. Tucson's share is anticipated to decrease 8.6% or $6,466,000: a loss of $1,979,000 in auto lieu taxes and $4,487,000 in state sales tax. This reduction is offset by strong revenue growth anticipated in Fiscal Years 2006 and 2007. E-24 GENERAL FUND State Revenue Sharing An increase in state-shared income taxes of 19% or $9,570,000 is expected for Fiscal Year 2007. The Fiscal Year 2008 estimate increases another $9,080,000. The Fiscal Years 2007 and 2008 distributions from the state are based on Fiscal Years 2005 and 2006 state income tax collections. As is the case with state-shared taxes, $5,227,000 was lost in stateshared revenues due to the mid-decade census. The growth in the Arizona economy fully offset that loss. Charges for Current Services Total charges for current services for Fiscal Year 2007 are projected to increase $1,138,630 over Fiscal Year 2006 adopted revenues. There is a decrease of $660,000 in Parks and Recreation fee revenues based on a roll-back of certain fees to Fiscal Year 2004 levels and to reflect a change in the manner of accounting for discounts. (In Fiscal Year 2006 adopted budget, the Parks fee discounts were counted as an expense against revenue. Because no expenditures are recorded, the revenue has been reduced for Fiscal Year 2007.) This decrease is offset by an increase of $1,137,000 in Emergency Medical Transport fees and moderate increases in other fees for services. The Fiscal Year 2008 revenues from fees and charges are expected to increase another $572,860. Non-Revenue Receipts These sources are projected to increase $6,766,780 for Fiscal Year 2007. That increase is primarily due to capacity included for a possible payment of $4,500,000 to the Irvington area developer and the debt service on certificates of participation covered by Rio Nuevo's first repayment to the General Fund of $2,200,000. The increase of $962,270 in Fiscal Year 2008 is primarily due to the elimination of the one-time payment to the Irvington area developer, which is offset by $5,250,000 from potential private sector participation in a downtown parking garage. Certificates of Participation Certificates of participation increased $31,450,600 based on new financing requirements in Fiscal Year 2007, primarily for public safety facilities and the emergency communication system. In Fiscal Year 2008, the use of certificates of participation decreases by $8,786,160 due to the completion of certain of those facilities. Brought Forward Brought Forward funding will decrease $449,400 from the Fiscal Year 2006 adopted amount based on Fiscal Year 2007 carryforward requirements. No Brought Forward funds are anticipated at this time for the Fiscal Year 2008 budget. Use/Transfers to Fund Balances Use of fund balance increases by $4,591,000 for Fiscal Year 2007. This includes the use of reserves for the emergency communications project and for fire apparatus. For Fiscal Year 2008, the use of fund balance decreases by $8,100,000. The $470,000 budgeted in Fiscal Year 2008 includes the use of reserves designated for Development Service to complete the upgrade of a computerized permitting system. E-25 SPECIAL REVENUE FUNDS Actual FY 2005 FINANCIAL RESOURCES General Fund Contributions Library Fund Public Safety Academy Fund Tucson Convention Center Fund Mass Transit Fund Total Licenses and Permits ParkWise Meter Collections Hooded Meter Fees Highway User Revenue Fund Total Fines, Forfeitures, and Penalties ParkWise Parking Violations Total Use of Money and Property ParkWise Parking Revenues Interest Earnings Public Safety Fund ParkWise 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 2006 Estimated FY 2006 Adopted FY 2007 Approved FY 2008 $ 10,052,144 $ 5,691,866 7,043,378 28,576,095 8,000,000 $ 5,045,200 6,797,740 36,062,970 7,999,960 $ 5,297,970 6,897,330 32,165,880 -0- $ 5,583,860 6,624,260 35,682,230 -05,614,050 6,444,260 35,410,200 $ 51,363,483 $ 55,905,910 $ 52,361,140 $ 47,890,350 $ 47,468,510 $ 410,641 $ 14,662 919,418 730,000 $ 16,000 -0- 456,330 $ 15,000 -0- 582,980 $ 15,000 -0- 597,980 15,000 -0- $ 1,344,721 $ 746,000 $ 471,330 $ 597,980 $ 612,980 $ 546,058 $ 590,000 $ 622,410 $ 660,000 $ 670,000 $ 546,058 $ 590,000 $ 622,410 $ 660,000 $ 670,000 $ 1,343,372 $ 2,175,000 $ 2,316,000 $ 2,914,250 $ 2,891,600 4,038 203,105 444,883 -0-0550,000 -0-0518,400 -0-0520,000 $ 1,995,398 $ 2,725,000 $ 2,834,400 $ 3,434,250 $ 3,441,600 $ 41,332,129 $ (7,466,467) 2,646,230 42,468,000 $ (9,161,110) 2,592,000 42,985,410 $ (8,882,180) 2,592,000 42,468,000 $ (8,827,240) 2,592,000 44,167,000 (7,656,870) 2,592,000 36,511,892 35,898,890 36,695,230 36,232,760 39,102,130 E-26 -0-0550,000 SPECIAL REVENUE FUNDS Actual FY 2005 FINANCIAL RESOURCES Grants and Shared Taxes (Continued) State and Local Grants City Attorney Grants City Court Grants Community Services Grants Fire Grants Human Resources 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 General Expense Debt Service Pima County Bonds $ Charges for Current Services Public Safety Academy Library Charges Public Transportation Full Fares Special Reduced Fares Shuttle Service Advertising Revenue County/Other Local Operating Assistance Special Needs Other Sub-Total 69,500 $ 48,959 47,400 -03,534 9,041,455 80,165 181,208 1,059,343 804,972 3,676,834 -01,800 15,000 -0271,599 550,000 2,892,942 Estimated FY 2006 Adopted FY 2007 Approved FY 2008 148,870 $ 399,140 650,000 350,000 -013,915,830 1,000,000 -02,345,590 1,273,380 16,743,800 609,040 210,000 30,000 1,500,000 277,650 1,300,000 3,992,000 103,090 $ 260,390 650,000 17,040 -012,915,830 946,250 -01,302,200 1,143,390 2,802,570 -0210,000 30,000 -0-01,300,000 4,757,370 148,260 $ 362,190 700,000 350,000 -0-0-0-0966,390 1,181,980 52,280,140 -0210,000 30,000 500,000 200,000 -019,039,600 148,260 363,970 700,000 350,000 -0-0-0-0966,390 1,107,110 33,924,040 -0210,000 30,000 500,000 200,000 -015,523,000 18,744,711 44,745,300 26,438,130 75,968,560 54,022,770 $ 55,256,603 $ 80,644,190 $ 63,133,360 $ 112,201,320 $ $ 308,045 $ 878,950 $ 758,950 $ 576,012 570,000 570,000 -0- -0- 6,095,448 1,569,803 46,307 274,923 3,589,689 6,100,000 1,800,000 20,000 380,000 3,100,000 6,702,910 2,343,340 27,040 66,020 3,579,430 6,750,000 2,340,000 20,000 310,000 3,600,000 6,850,000 2,340,000 20,000 320,000 3,760,000 340,957 133,334 320,000 180,000 416,360 48,860 330,000 180,000 330,000 180,000 12,050,461 11,900,000 13,183,960 13,530,000 13,800,000 Sub-Total Total Adopted FY 2006 E-27 883,240 $ 93,124,900 887,530 SPECIAL REVENUE FUNDS Actual FY 2005 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 H.O.M.E. Fund Section 8 Fund Comprehensive Housing Fund Miscellaneous Federal Housing Funds HOPE VI Funds Sub-Total Other Federal Revenue Community Development Block Grant Entitlement City Attorney Grants Community Services Grants Fire Grants Information Technology Grants Library Grants Parks and Recreation Grants Police Grants Urban Planning Grants Mass Transit Grants Transportation Grants Adopted FY 2006 Estimated FY 2006 Adopted FY 2007 Approved FY 2008 1,174,572 $ 217,820 802,406 114,653 83,820 453,378 57,297 118,601 318,224 198,206 1,236,000 $ 209,000 732,500 77,500 92,000 503,500 58,000 125,000 432,000 36,000 1,365,550 $ 194,000 810,000 77,500 120,000 509,500 58,300 125,000 332,340 50,500 1,500,000 $ 175,000 981,000 120,000 126,000 516,000 60,000 136,000 363,000 106,000 1,590,000 188,000 1,007,000 127,000 126,000 557,000 60,000 146,000 404,000 106,000 3,538,977 3,501,500 3,642,690 4,083,000 4,311,000 $ 16,473,495 $ 16,850,450 $ 18,155,600 $ 18,496,240 $ 18,998,530 $ 2,555,153 $ 2,280,000 $ 2,280,000 $ 2,280,000 $ 2,280,000 $ 3,225,997 $ 3,651,970 $ 3,685,450 $ 3,818,200 $ 3,868,200 4,150,158 28,695,256 1,517,399 2,829,231 8,125,390 27,580,020 2,789,730 3,539,340 8,125,390 27,580,020 2,789,730 3,539,340 9,142,280 27,710,190 3,388,130 4,889,270 8,277,500 27,603,790 3,203,200 4,789,350 816,249 317,000 79,990 9,101,680 5,907,280 41,234,290 46,003,450 45,799,920 58,049,750 53,649,320 6,599,993 13,153,730 10,173,740 11,353,760 8,010,290 243,288 417,415 1,089,008 -098,748 304,403 4,302,224 89,947 9,124,679 6,163,778 424,700 535,840 98,380 -0-0720,930 5,430,830 390,000 31,197,410 24,711,420 204,720 535,840 2,040,390 -053,250 237,220 2,939,820 390,000 18,814,320 22,546,300 338,440 398,540 911,880 300,000 -0581,590 5,516,110 390,000 34,853,610 17,855,700 338,440 317,870 556,840 300,000 -0581,590 5,373,950 390,000 25,981,510 10,852,940 E-28 SPECIAL REVENUE FUNDS Actual FY 2005 FINANCIAL RESOURCES Federal Grants Other Federal Revenue (Continued) General Expense Grants General Services Grants $ Sub-Total Total Non-Revenue Receipts Sale of Property Highway User Revenue Fund Mass Transit $ $ Brought Forward Highway User Revenue Fund Mass Transit Fund Total 78,886,950 502,370 $ -058,437,970 Adopted FY 2007 2,250,000 $ 500,000 75,249,630 Approved FY 2008 1,600,000 500,000 54,803,430 69,811,138 $ 124,890,400 $ 104,237,890 $ 133,299,380 $ 108,452,750 200,000 $ -0- -0- $ 14,450 -0- $ -0- -0-0- 640,423 200,000 14,450 -0- -0- 220 39,890 2,198,710 -011,506 836,481 -03,510,000 2,325,000 -015,000 -0- -01,451,540 1,825,000 -012,000 -0- -0350,000 1,525,000 6,852,500 15,000 -0- -0350,000 1,400,000 -015,000 -0- 3,086,807 5,850,000 3,288,540 8,742,500 1,765,000 $ 3,727,230 $ 6,050,000 $ 3,302,990 $ 8,742,500 $ 1,765,000 $ 8,563,399 $ -0- 3,502,000 $ 11,566,400 3,138,600 $ 1,755,000 -0- $ 2,175,490 -01,605,000 $ 8,563,399 $ 15,068,400 $ 4,893,600 $ 2,175,490 $ 1,605,000 $ 1,416,800 $ 1,819,800 75,000 $ 2,897,920 2,217,800 $ 2,897,920 3,557,300 $ 2,160,100 -0-0- $ 3,236,600 $ 2,972,920 $ 5,115,720 $ 5,717,400 $ -0- Sub-Total Total 723,710 $ 1,500,000 Estimated FY 2006 558,273 $ 82,150 Other Non-Revenue Receipts Library Fund Contributions Highway User Revenue Fund Impact Fees ParkWise Shuttle ParkWise Contributions Certificates of Participation ParkWise Fleet Services Fund 121,353 $ 22,012 28,576,848 Sub-Total Total Adopted FY 2006 E-29 SPECIAL REVENUE FUNDS Actual FY 2005 FINANCIAL RESOURCES Use of Fund Balance Impact Fees Highway User Revenue Fund Library Mass Transit Fund Public Safety Academy Tucson Convention Center ParkWise Adopted FY 2006 Estimated FY 2006 Adopted FY 2007 Approved FY 2008 $ 3,329,729 $ 756,953 119,676 651,161 94,453 (53,123) 184,214 -0- $ 9,439,350 -0-0-0490,500 678,570 -0- $ 2,944,650 -0-0-0142,020 762,200 -0- $ 6,247,670 -0-0-0158,000 -0- -03,866,030 -0-0-0110,000 -0- Total $ 5,083,063 $ 10,608,420 $ 3,848,870 $ 6,405,670 $ 3,976,030 Total Special Revenue Funds $ 219,956,341 $ 319,331,690 $ 261,257,310 $ 341,900,580 $ 282,395,300 E-30 SPECIAL REVENUE FUNDS HIGHLIGHTS General Fund Contributions Changes from Fiscal Year 2006 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 2007, General Fund Contributions decreased $8,015,560, primarily due to the transfer of the Library contribution to the General Fund. With Pima County taking full operational control of the Library on July 1, 2006, it is no longer necessary for the city to account for Library expenses in a special revenue fund. For Fiscal Year 2008, General Fund contributions are expected to decrease by $421,840. Licenses and Permits This revenue consists of parking meter collections and fees, which are projected to decrease $148,020 from the Fiscal Year 2006 Adopted Budget. The anticipated increase in revenue in Fiscal Year 2006, which was based on new parking meter installations, has not materialized. The Fiscal Year 2007 estimate is based on more modest growth over the actual collections for Fiscal Year 2006. The Fiscal Year 2008 projection increases by $15,000. Fines, Forfeitures, and Penalties Parking violation fine revenues, the only revenue in this category, are projected to increase $70,000 from the adopted Fiscal Year 2006 budget due to expanded enforcement. The Fiscal Year 2008 projection is $10,000 higher than Fiscal Year 2007. Use of Money and Property The majority of the projected $709,250 increase in Fiscal Year 2007 is due to higher parking garage revenues, including revenues from the new Pennington Garage. The Fiscal Year 2008 projection increases by $7,350. Grants and Shared Taxes For Fiscal Year 2007, state-shared taxes and other state and local grants increase by $31,557,130 from the Fiscal Year 2006 adopted budget based on the implementation of funded programs and projects. Most of that increase is due to inclusion of $25 million capacity for the expenditures of Regional Transportation Authority funds. Other major changes include the following: ♦ Budget capacity for Pima County support of the Library has been eliminated due to its transfer to Pima County. ♦ Grant capacity in several departments has been reduced to more accurately reflect historical awards. ♦ Grant and intergovernmental agreement funding for transportation purposes increased for street and public transportation projects. ♦ The use of Pima County bonds increased, primarily for Parks and Recreation projects. The Fiscal Year 2008 estimate decreases by $19,076,420, primarily due to the anticipated completion of Transportation projects. Charges for Current Services User fees are projected to increase $1,645,790 in Fiscal Year 2007, primarily due to increased Sun Tran revenues based on Fiscal Year 2006 ridership and Tucson Convention Center revenues; Library charges will be collected by Pima County. The Fiscal Year 2008 projection increases by is $502,290, due to further increases in Sun Tran and Tucson Convention Center revenues. E-31 SPECIAL REVENUE FUNDS Public Housing Local Revenue Local revenues restricted to public housing are not anticipated to change for Fiscal Years 2007 or 2008. Federal Grants Federal funding is anticipated to be $8,408,980 higher for Fiscal Year 2007 based on anticipated grant awards and the completion of projects. Major changes are as follows: ♦ HOPE VI funding increases by $8,784,680. ♦ Other federal housing funds increase by $3,261,620. ♦ Community Development Block Grant (CDBG) funds decrease by $1,799,970. ♦ Mass Transit and other transportation grants for capital projects decrease by $3,199,520. ♦ Debt repayment from federal grants increases by $1,606,290. The Fiscal Year 2008 estimate decreases by $24,846,630 due to the completion of housing and transportation projects. Non-Revenue Receipts The $2,692,500 increase in Fiscal Year 2007 is primarily due to the inclusion of impact fee revenue, which is offset by a reduction in developer contributions for transportation improvements. (Impact fee capacity of $6,852,500 is being included in Fiscal Year 2007 should the Mayor and Council decide to program those funds for specific impact fee eligible projects.) The Fiscal Year 2008 estimate decreases by $6,977,500 due to zero impact fee revenue. (Capacity for Fiscal Year 2008 impact fee revenue will be included in the Fiscal Year 2008 Update to the biennial budget.) Certificates of Participation Certificates of Participation decrease $12,892,910 in Fiscal Year 2007 based on the completion of the Pennington Garage and a change in the use of lease/purchase agreements, rather than certificates of participation, for vehicle replacement. The Fiscal Year 2008 requirement decreases by $570,490 due to a decline in financing requirements for fire apparatus replacement. Brought Forward Brought forward funding increases $2,744,480 for Fiscal Year 2007 due to Transportation projects not being completed as planned in Fiscal Year 2006. No requirements are anticipated for Fiscal Year 2008. Use of Fund Balance Use of fund balances decreases $4,202,750 for Fiscal Year 2007 based primarily on reduced requirements for Transportation and ParkWise programs and projects. The Fiscal Year 2008 estimate decreases another $2,429,640 due to reduced requirements for Transportation programs and projects. E-32 ENTERPRISE FUNDS FINANCIAL RESOURCES Actual FY 2005 Environmental Services Fund Operating Revenue General Fund Contributions $ Commercial Refuse Services Residential Refuse Services Brush and Bulky Refuse Service Landfill Services Charges Self Haul Fee Refuse Penalties Recycling 1,655,000 $ -0- $ -0- $ -0- $ -05,710,785 7,123,000 6,460,600 6,460,600 6,460,600 17,622,887 18,959,000 19,384,800 19,772,000 20,167,000 3,212,981 3,160,000 3,230,800 3,295,000 3,361,000 6,217,365 5,507,000 7,067,700 7,209,000 7,353,000 1,034,942 1,015,000 1,200,000 1,224,000 1,248,000 138,431 142,000 155,000 158,000 161,000 1,474,219 1,321,000 1,341,900 1,369,000 1,396,000 Sub-Total Total Adopted FY 2007 Approved FY 2008 37,227,000 38,840,800 39,487,600 40,146,600 43,671 -0-0170,467 -0- -0-0-0410,000 917,250 237,000 332,000 -0410,000 917,250 196,000 314,500 500,500 410,000 1,501,000 196,000 314,500 181,500 410,000 8,144,000 165,848 (2,729,062) 1,089,490 (1,783,650) 112,000 (3,833,930) -0(2,944,360) -0(1,931,690) (2,349,076) 633,090 (1,825,680) (22,360) 7,314,310 $ 34,717,534 $ 37,860,090 $ 37,015,120 $ 39,465,240 $ 47,460,910 $ 801,300 $ 4,896,836 1,714,474 1,372,786 2,997,301 -0- 1,304,460 $ 5,557,200 1,665,980 1,816,900 563,510 2,180,000 699,000 $ 5,015,000 1,687,000 837,000 1,667,480 2,110,000 1,304,460 $ 5,557,200 1,665,980 1,816,900 563,510 70,000 1,304,460 5,557,200 1,665,980 1,816,900 563,510 -0- $ 11,782,697 $ 13,088,050 $ 12,015,480 $ 10,978,050 $ 10,908,050 Sub-Total Golf Course Fund El Rio Randolph Fred Enke Silverbell Other Certificates of Participation Estimated FY 2006 37,066,610 Non-Operating Revenue Interest Earnings Household Hazardous Waste Federal Grants State and Local Grants Certificates of Participation and Debt Financing Miscellaneous Revenues Transfers to Reserves Total Adopted FY 2006 E-33 ENTERPRISE FUNDS Actual FY 2005 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 from Working Capital Miscellaneous Grants Sub-Total $ Adopted FY 2006 93,335,582 $ 101,082,800 $ 1,852,266 2,011,000 Estimated FY 2006 Adopted FY 2007 Approved FY 2008 96,165,000 $ 101,813,000 $ 110,762,000 1,931,000 1,983,000 2,026,000 2,997,238 4,929,786 1,914,630 5,652,916 -0- 3,000,000 3,396,000 1,877,000 6,789,200 10,609,000 2,900,000 6,138,000 2,962,000 5,239,000 9,487,000 2,900,000 4,923,000 2,992,000 6,103,000 -0- 2,900,000 8,028,000 3,022,000 6,632,000 -0- 110,682,418 128,765,000 124,822,000 120,714,000 133,370,000 1,119,131 713,618 1,116,000 993,000 1,173,000 993,000 1,233,000 816,000 1,208,000 908,000 3,417 -0- -0- -0- -0- 7,438,248 439,244 509,674 2,266,866 9,982 6,754,000 907,000 1,180,000 (936,700) 400,000 7,772,000 474,000 -03,511,330 400,000 8,332,000 474,000 -011,862,350 850,000 8,594,000 474,000 -0(458,380) 156,990 12,500,180 10,413,300 14,323,330 23,567,350 10,882,610 Total $ 123,182,598 $ 139,178,300 $ 139,145,330 $ 144,281,350 $ 144,252,610 Total Enterprise Funds $ 169,682,829 $ 190,126,440 $ 188,175,930 $ 194,724,640 $ 202,621,570 E-34 ENTERPRISE FUNDS HIGHLIGHTS Environmental Services Environmental Services revenues projected for Fiscal Year 2007 increase $1,605,150 over the Fiscal Year 2006 adopted revenues. User revenues will increase by $2,260,600 based on customer demand; no rate increases are included. Because the city took over the operation of the Household Hazardous Waste Program from Pima County, reimbursement revenues of $314,500 are anticipated. A transfer to reserves, which will allow the department to meet future regulatory compliance requirements, offsets these increases. The Fiscal Year 2008 revenue projection is $7,995,670 more than Fiscal Year 2007, primarily due to the use of certificates of participation for capital improvements at the city's landfills. Golf Fund Golf revenues are projected to decrease $2,110,000 for Fiscal Year 2007 due to the near completion of work on the Silverbell Golf Course. Fiscal Year 2008 revenues are $70,000 less due to the final completion of that project. Water Utility The projected revenue for Fiscal Year 2007 reflects an increase of $5,103,050 over the Fiscal Year 2006 adopted amount based on growth in service demand and a rate increase that will generate a 3.7% increase in water sale revenues. The Fiscal Year 2008 decreases by $28,740. The revenue increase in Fiscal Years 2007 and 2008 are partially driven by the need to purchase to additional Central Arizona Project water. E-35 DEBT SERVICE FUNDS Actual FY 2005 FINANCIAL RESOURCES General Obligation Debt Service Secondary Property Tax Adopted FY 2006 Estimated FY 2006 Adopted FY 2007 Approved FY 2008 $ 20,388,546 $ 24,235,450 $ 24,220,340 $ 26,808,660 $ 27,815,830 $ 20,388,546 $ 24,235,450 $ 24,220,340 $ 26,808,660 $ 27,815,830 $ 15,421,418 $ 17,203,110 $ 16,936,270 $ 16,869,240 $ 16,837,200 Total $ 15,421,418 $ 17,203,110 $ 16,936,270 $ 16,869,240 $ 16,837,200 Total Debt Service Funds $ 35,809,964 $ 41,438,560 $ 41,156,610 $ 43,677,900 $ 44,653,030 Total Street and Highway Debt Service State Shared Taxes E-36 DEBT SERVICE FUNDS HIGHLIGHTS General Obligation Debt Service General obligation debt service is funded from the secondary property tax, which increases $2,573,210 for Fiscal Year 2007. No new sale is anticipated for Fiscal Year 2007. The increase is based on the debt repayment schedule. It includes a change in accounting for Environmental Services debt on general obligation bonds that last year was reflected in the Environmental Services Fund. For Fiscal Year 2008, the debt service requirement increases by $1,007,170 based on the expected sale of the remaining $13,300,000 of the 2000 general obligation bond authorization. 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 decrease $333,870 in Fiscal Year 2007. The Fiscal Year 2008 requirement decreases another $32,040. The city has sold all of the 2000 street and highway revenue bond authorization. E-37 CAPITAL PROJECTS FUNDS FINANCIAL RESOURCES Actual FY 2005 Adopted FY 2006 Estimated FY 2006 Adopted FY 2007 Approved FY 2008 General Obligation Bond Funds $ Proceeds Street and Highway Revenue Bond Funds Proceeds Environmental Services Bond Funds Proceeds Water Revenue Bond Funds Proceeds 19,174,724 $ 25,009,700 $ 20,382,920 $ 18,174,700 $ 5,288,560 2,727,200 5,434,020 85,300 -0- 4,904,718 7,994,000 8,893,710 2,899,000 1,501,000 18,855,955 39,203,000 42,388,250 29,900,900 32,030,000 Total Capital Projects Funds $ 48,223,957 $ 74,933,900 $ 77,098,900 $ 51,059,900 $ 35,331,000 E-38 1,800,000 CAPITAL PROJECTS FUNDS HIGHLIGHTS General Obligation Bonds General obligation bonds are used to finance capital projects other than street, environmental services, and water projects. The Fiscal Year 2007 use of these bonds decreases $6,835,000 based on project implementation and completion. The Fiscal Year 2008 decreases a further $16,374,700 as more bond projects are completed. It is anticipated that the 2000 authorization will be fully expended in Fiscal Year 2009. Street and Highway Revenue Bonds Street and highway revenue bonds are used to finance Transportation street and right-of-way capital projects. The Fiscal Year 2007 use of these bonds decreases $2,641,900 due to project completion. The 2000 authorization will be fully expended in Fiscal Year 2007, which leaves no bonds available in Fiscal Year 2008. Environmental Services Bonds Environmental Services bonds are used to finance landfill and other environmental projects that were part of the 2000 general obligation bond authorization. The Fiscal Year 2007 use of these bonds decreases $5,095,000 based on project implementation and completion. For Fiscal Year 2008, their use decreases another $1,398,000. It is anticipated that the 2000 authorization will be fully expended in Fiscal Year 2008. Water Revenue Bonds Water revenue bonds used to finance water capital projects are from the 2005 authorization. The Fiscal Year 2007 use of these bonds decreases $9,320,100 based on project implementation. For Fiscal Year 2008, their use increases another $2,129,100. It is anticipated that the 2005 authorization will finance projects through Fiscal Year 2010. E-39 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 allowable 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 2007 is $9,733,050 or $569,960 more than last year's levy of $9,163,090. (The adopted levy for Fiscal Year 2006 was $9,174,950.) The tax rate for Fiscal Year 2007 changes to $0.3411 per $100 of assessed valuation. The estimated primary property tax for Fiscal Year 2008 is $10,219,700 or an increase of $486,650. The Fiscal Year 2008 tax rate will decrease to $0.3379 per $100 of assessed valuation. The following table and graph show the primary assessed valuations, levies, and rates since Fiscal Year 2003. PRIMARY PROPERTY TAX ($000s) Fiscal Year 2003 2004 2005 2006 2007 (Estimate) 2008 (Estimate) Primary Assessed Valuation Percent Change $ 2,202,934 2,344,619 2,477,050 2,641,419 2,853,430 3,025,636 5.4% 6.4% 5.6% 6.6% 8.0% 6.0% Maximum Allowable Tax Levy $ 8,146 8,477 8,812 9,175 9,733 10,220 Primary Tax Levy $ 4,602 4,898 8,746 9,163 9,733 10,220 Increase (Decrease) Percent Change Rate per $100 Assessed Valuation $ 1,671 296 3,848 417 570 487 57.0% 6.4% 78.6% 4.8% 6.2% 5.0% $ 0.2089 0.2089 0.3531 0.3469 0.3411 0.3379 PRIMARY PROPERTY TAX LEVY ($000s) $12,000 $8,000 $4,602 $8,746 $9,163 $9,733 2005 2006 2007 $10,220 $4,898 $4,000 $2003 2004 E-40 2008 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 city's total estimated debt service requirement on general obligation bonds for Fiscal Year 2007 is $26,808,660, an increase of $2,588,320 over the Fiscal Year 2006 levy of $24,220,340.* (The adopted levy for Fiscal Year 2006 was $24,235,450.) While no new sales are anticipated for Fiscal Year 2007, the secondary property tax will be used to pay debt service on the general obligation bonds authorized for Environmental Services. The secondary property tax rate for Fiscal Year 2007 is estimated at $0.8846 per $100 of assessed valuation, a decrease of $0.0049. For Fiscal Year 2008, the secondary property tax levy is estimated at $27,815,830 or an increase of $1,007,170, which is based on the remaining $13,300,000 of the 2000 bond authorization being sold. The rate in Fiscal Year 2008 is estimated at $0.8659 per $100 of assessed valuation. The following table and graph show secondary assessed valuations, levies, and rates since Fiscal Year 2003. SECONDARY PROPERTY TAX ($000s) Fiscal Year Secondary Assessed Valuation Percent Change Secondary Tax Levy Increase (Decrease) Percent Change Rate per $100 Assessed Valuation 2003 2004 2005 2006 2007 (Estimate) 2008 (Estimate) $ 2,268,733 2,427,124 2,558,231 2,722,916 3,030,580 3,212,415 6.1% 7.0% 5.4% 6.4% 11.3% 6.0% $ 20,675 23,009 21,274 24,220 26,809 27,816 (279) 2,334 (1,735) 2,946 2,589 1,007 (1.3%) 11.3% (7.5%) 13.8% 10.7% 3.8% $ 0.9113 0.9480 0.8316 0.8895 0.8846 0.8659 SECONDARY PROPERTY TAX LEVY ($000s) $30,000 $25,000 $23,009 $20,675 $24,220 $26,809 $27,816 $21,274 $20,000 $15,000 2003 2004 2005 2006 2007 2008 *While the secondary property tax levy was $24,220,340, the Environmental Services Fund will cover $2,509,400 of the Fiscal Year 2006 payment for a net use of $21,710,940 from the secondary property tax in Fiscal Year 2006. E-41 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, 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 2007. The city sales tax estimate of $199,500,000 for Fiscal Year 2007 is an increase of $9,500,000, over the prior year revised estimate of $190,000,000. (The adopted budget for Fiscal Year 2006 was $184,540,000.) For Fiscal Year 2008, this revenue is expected to grow another 5%, yielding an additional $10,000,000. The following table and graph show city business privilege tax collections since Fiscal Year 2003. CITY BUSINESS PRIVILEGE (SALES) TAX ($000s) Fiscal Year Revenues Increase (Decrease) Percent Change 2003 2004* 2005 2006 (Estimate) 2007 (Estimate) 2008 (Estimate) $ 160,781 167,345 176,654 190,000 199,500 209,500 $ 2,642 6,564 9,309 13,346 9,500 10,000 1.7% 4.1% 5.6% 7.6% 5.0% 5.0% CITY BUSINESS PRIVILEGE (SALES) TAX Revenues ($000s) $209,500 $210,000 $199,500 $190,000 $180,000 $160,781 $167,345 $176,654 $150,000 2003 2004 2005 2006 2007 *Does not include recognition of a one-time settlement from Qwest of $7 million. E-42 2008 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 that by state statute must be dedicated to tourism-related expenses. In Fiscal Year 1989, a daily hotel/motel surtax of $1.00 per rented room was authorized. Estimated transient occupancy and room taxes for Fiscal Year 2007 total $12,490,000, an increase of $429,730 or 4% over the prior year estimate of $12,060,270. (The adopted budget for Fiscal Year 2006 was $9,890,000.) The Fiscal Year 2008 estimate increases another $460,000. The large increases in Fiscal Years 2004, 2005, and 2006 reflect the rebounding of the tourism sector of the Tucson economy. The increases for Fiscal Years 2007 and 2008 are based on continued growth, but at a more moderate pace. The following table and graph show Transient Occupancy and Room Tax collections since Fiscal Year 2003. TRANSIENT OCCUPANCY AND ROOM TAXES ($000s) Fiscal Year Revenues 2003 2004 2005 2006 (Estimate) 2007 (Estimate) 2008 (Estimate) $ 6,395 9,146 10,768 12,060 12,490 12,950 Increase (Decrease) $ Percent Change 56 2,751 1,622 1,292 430 460 0.9% 43.0% 17.7% 12.0% 3.6% 3.7% TRANSIENT OCCUPANCY AND ROOM TAXES Revenues ($000s) $15,000 $12,060 $12,490 $12,950 $10,768 $9,146 $10,000 $6,395 $5,000 2003 2004 2005 2006 E-43 2007 2008 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 (CAFR), 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 on the following page. Revenues from licenses and permits in Fiscal Year 2007, excluding utility franchise fees, is estimated to total $7,913,630, which is an 8% increase over the prior year's estimate of $7,319,250. (The adopted budget for Fiscal Year 2006 was $8,446,700.) The increase is primarily due to parking meter collections from new meters, a temporary workzone traffic control fee, and increases in television and telecommunications licenses and fees. An increase of $40,000 is anticipated for Fiscal Year 2008. The following table and graph show revenues from licenses and permits since Fiscal Year 2003. LICENSES AND PERMITS ($000s) Fiscal Year 2003 2004 2005 2006 (Estimate) 2007 (Estimate) 2008 (Estimate) Revenues Increase (Decrease) Percent Change $ 6,033 6,615 7,479 7,319 7,914 7,954 $ 1,136 582 864 (161) 595 40 23.2% 9.6% 13.1% (2.2%) 8.1% 0.5% LICENSES AND PERMITS Revenues ($000s) $9,000 $7,000 $6,033 $7,479 $7,319 2005 2006 $7,914 $7,954 2007 2008 $6,615 $5,000 $3,000 2003 2004 E-44 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 2007 total $21,550,000, a 4% increase over last year's revised estimate of $20,801,300. (The adopted budget for Fiscal Year 2006 was $20,870,000.) The increase of $748,700 is primarily due to anticipated growth in the utility franchise fee of $600,000. For Fiscal Year 2008, these revenues are expected to increase another $400,000. The following table and graph show revenues from public utility tax and utility franchise fees since Fiscal Year 2003. PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES ($000s) Fiscal Year Public Utility Tax Utility Franchise Fees Combined Revenues Increase (Decrease) Percent Change 2003 2004 2005 2006 (Estimate) 2007 (Estimate) 2008 (Estimate) $ 9,267 7,888 7,655 7,601 7,750 7,750 $ 11,227 11,616 12,755 13,200 13,800 14,200 $ 20,494 19,504 20,410 20,801 21,550 21,950 $ 1,439 (990) 906 391 749 400 7.6% (4.8%) 4.6% 1.9% 3.6% 1.9% PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES Revenues ($000s) $24,000 $21,000 $20,494 $19,504 $20,410 $20,801 2005 2006 $21,550 $21,950 $18,000 $15,000 2003 2004 E-45 2007 2008 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. Forfeitures are restricted for specific law enforcement expenses. The Fiscal Year 2007 estimate of $15,630,610 is 2% more than the $15,329,160 revised estimate for Fiscal Year 2006, primarily due to improved court collection efforts. (The adopted budget for Fiscal Year 2006 was $13,375,330.) For Fiscal Year 2008, these revenues increase by $276,070. The following table and graph show revenues from fines, forfeitures, and penalties since Fiscal Year 2003. FINES, FORFEITURES, AND PENALTIES ($000s) Fiscal Year Revenues Increase (Decrease) 2003 2004 2005 2006 (Estimate)* 2007 (Estimate) 2008 (Estimate) $ 10,016 9,679 10,888 15,329 15,631 15,907 $ 2,065 (337) 1,209 4,441 302 276 Percent Change 25.9% (3.4%) 12.5% 40.8% 2.0% 1.8% FINES, FORFEITURES, AND PENALTIES Revenues ($000s) $17,000 $15,329 $15,631 $15,907 2007 2008 $15,000 $13,000 $11,000 $10,016 $10,888 $9,679 $9,000 $7,000 2003 2004 2005 2006 *In Fiscal Year 2006, there was an increase in court default fees. E-46 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. As a result of the mid-decade census, Tucson's portion of state-shared revenues are anticipated to decrease 8.6% in Fiscal Year 2007. Vehicle license tax revenues received by the city can be used to pay any expense legally chargeable to the General Fund. The City of Tucson's vehicle license tax distributions for Fiscal Year 2007 are estimated to be $22,900,000, which is a decrease of 3% from the revised estimate of $23,695,750 for Fiscal Year 2006. (The adopted budget for Fiscal Year 2006 was $23,230,000.) The mid-decade census resulted in a loss of $1,979,000; otherwise, revenues would have grown 5%. For Fiscal Year 2008, this revenue estimate increases by $920,000. The following table and graph show the City of Tucson’s share since Fiscal Year 2003. VEHICLE LICENSE TAX ($000s) Fiscal Year City of Tucson’s Distribution Increase (Decrease) $ 18,424 21,078 23,188 23,696 22,900 23,820 $ (634) 2,654 2,110 508 (796) 920 2003 2004 2005 2006 (Estimate) 2007 (Estimate) 2008 (Estimate) Percentage Change (3.3%) 14.4% 10.0% 2.2% (3.4%) 4.0% VEHICLE LICENSE TAX Revenues ($000s) $28,000 $24,000 $20,000 $23,188 $23,696 2005 2006 $22,900 $23,820 $21,078 $18,424 $16,000 2003 2004 E-47 2007 2008 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%. 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. As a result of the mid-decade census, the Tucson's portion of state-shared revenues are anticipated to decrease 8.6% in Fiscal Year 2007. State-shared sales taxes can be used to pay any expense legally chargeable to the General Fund. The City of Tucson's share of state sales tax for Fiscal Year 2007 is estimated to be $51,930,000, a less than 1% decrease from the revised estimate of $52,000,000 for Fiscal Year 2006. (The adopted budget for Fiscal Year 2006 was $47,670,000.) While the state's economy has grown, Tucson's portion of the population has dropped from 12% to 11%, as a result of the mid-decade census. That drop in proportionate population resulted in a loss of $4,487,000 in revenue. The revenue estimate for Fiscal Year 2008 increases by $3,120,000, which is based on continued strong economic growth in the region. The following table and graph show the state sales tax allocations to the City of Tucson since Fiscal Year 2003. STATE SALES TAX ($000s) Fiscal Year 2003 2004 2005 2006 (Estimate) 2007 (Estimate) 2008 (Estimate) Total Distribution To Cities Percent Change $ 317,500 343,475 380,830 433,330 472,090 500,450 2.4% 8.2% 10.9% 13.8% 8.9% 6.0% City of Tucson's Share Percent Amount 12.0% 12.0% 12.0% 12.0% 11.0% 11.0% $ 38,161 41,217 45,700 52,000 51,930 55,050 Increase (Decrease) $ STATE SALES TAX City of Tucson's Share ($000s) $60,000 $55,050 $50,000 $52,000 $51,930 2006 2007 $45,700 $41,217 $40,000 $38,161 $30,000 2003 2004 2005 E-48 2008 628 3,056 4,483 6,300 (70) 3,120 Percent Change 1.7% 8.0% 10.9% 13.8% (0.1%) 6.0% STATE REVENUE SHARING Incorporated cities and towns are prohibited from imposing local income taxes, but in exchange they receive a share of net individual and corporate income taxes collected by the state. Distributions are 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, the state changed the rate to 14.8% by the state. For Fiscal Year 2005 and thereafter, the rate has been reinstated to 15%. Each city’s share is allocated in proportion to its population compared to the total population of the state. As a result of the mid-decade census, the Tucson's portion of state-shared revenues are anticipated to decrease 8.6% in Fiscal Year 2007. State-shared income taxes, also referred to as Urban Revenue Sharing, can be used to pay any expense legally chargeable to the General Fund. The city's portion of state-shared income tax distributions is estimated to be $60,500,000 for Fiscal Year 2007, which is an increase of 19% from the revised estimate of $50,954,690 for Fiscal Year 2006. (The adopted budget for Fiscal Year 2006 was $50,930,000.) While the state's revenue from income taxes increased at a higher rate, the city's share did climb at the same rate because our portion of the state's population declined. That drop in proportionate population resulted in a loss of $5,227,000 in revenue. For Fiscal Year 2008, the revenue estimate for state revenue sharing increases by 15%. The following table and graph show the state income tax distributions to the City of Tucson since Fiscal Year 2003. STATE REVENUE SHARING ($000s) Fiscal Year Total Distribution To Cities Percent Change $ 430,559 366,858 381,458 424,625 550,000 632,550 2.3% (14.8%) 4.0% 11.3% 29.5% 15.0% 2003 2004 2005 2006 (Estimate) 2007 (Estimate) 2008 (Estimate) Tucson’s Share Percent Amount 12.0% 12.0% 12.0% 12.0% 11.0% 11.0% $ 50,486 44,023 45,775 50,955 60,500 69,580 Increase (Decrease) Percent Change $ (447) (6,463) 1,752 5,180 9,545 9,080 (0.9%) (12.8%) 4.0% 11.3% 18.7% 15.0% STATE REVENUE SHARING City of Tucson's Share ($000s) $69,580 $75,000 $60,500 $65,000 $55,000 $50,955 $50,486 $44,023 $45,775 $45,000 $35,000 2003 2004 2005 2006 E-49 2007 2008 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. 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”; 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, which is based on population. The city’s share of HURF distributions from the state is estimated to be $50,510,000 for Fiscal Year 2007, which is a 1% decrease from the revised estimate of $51,039,500 for Fiscal Year 2006. (The adopted budget for Fiscal Year 2006 was $50,510,000.) The decline in expected HURF revenue for Fiscal Year 2007 is related to the decrease in the city's share of the state's population from 12% to 11% due to the mid-decade census. For Fiscal Year 2008, these revenues are expected to increase by 6% due to continued economic growth. The following table and graph show the HURF allocations to the City of Tucson since Fiscal Year 2003. HIGHWAY USER REVENUE FUND ALLOCATION ($000s) Increase 27.5% Share 3% Share Total (Decrease) Fiscal Year 2003 2004 2005 2006 (Estimate) 2007 (Estimate) 2008 (Estimate) $ 37,905 39,264 41,332 42,985 42,468 44,167 $ 6,748 7,467 7,955 8,054 8,042 9,180 $ 44,653 46,731 49,287 51,039 50,510 53,347 $ 2,135 2,078 2,556 1,752 (529) 2,837 HIGHWAY USER REVENUE FUND ALLOCATION ($000s) $53,347 $55,000 $51,039 $50,510 2006 2007 $49,287 $50,000 $46,731 $44,653 $45,000 $40,000 2003 2004 2005 E-50 2008 Percent Change 5.0% 4.7% 5.5% 3.6% (1.0%) 5.6% LOCAL TRANSPORTATION ASSISTANCE FUND (LTAF) 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 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. However, regardless of lottery revenues, the Arizona Legislature must appropriate whatever amount is necessary to ensure that a minimum of $20,500,000 annually is deposited in the LTAF. 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. Statutory annual minimum appropriations to the state’s general fund were enacted by the Arizona Legislature before receipts from multi-state lottery sales are made available for distribution to cities and towns. The city is expected to receive $2,592,000 in Fiscal Year 2007, which is no change from the Fiscal Year 2006 estimated amount. (The adopted budget for Fiscal Year 2006 was also $2,592,000.) No change to this revenue is anticipated for Fiscal Year 2008. The following table shows the LTAF distribution to the City of Tucson since Fiscal Year 2003. LOCAL TRANSPORTATION ASSISTANCE FUND ($000s) Fiscal Year 2003 2004 2005 2006 (Estimate) 2007 (Estimate) 2008 (Estimate) Tucson's Share Increase (Decrease) $ 2,721 2,690 2,646 2,592 2,592 2,592 $ (42) (31) (44) (54) -0-0- E-51 Percent Change (1.5%) (1.1%) (1.6%) (2.0%) 0.0% 0.0% E-52 TEN-YEAR ADOPTED CITY STAFFING COMPARISON WITH FISCAL YEARS 2007 AND 2008 DEPARTMENTS Elected and Official Mayor 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 Environmental Services Transportation 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 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 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 9.50 42.00 26.00 37.50 108.50 9.50 42.00 26.00 58.00 110.50 211.50 246.50 217.00 248.00 232.75 254.75 228.25 235.75 215.00 234.50 223.50 246.00 138.80 159.25 519.50 253.00 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 9.00 141.30 152.50 646.00 307.75 20.00 10.00 150.30 152.50 694.00 -053.00 11.00 157.30 152.50 741.00 -058.00 11.00 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 32.50 720.25 1,266.50 96.50 32.50 718.75 1,355.00 163.25 33.50 677.50 1,362.00 169.00 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 36.00 697.00 1,411.50 154.75 38.00 711.00 1,468.00 154.75 38.00 737.00 1,520.00 154.75 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 3,576.80 3,432.55 3,569.55 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 2.00 127.00 262.00 405.00 571.00 44.00 2.00 123.00 251.00 404.50 573.00 37.00 -0- 123.00 251.00 404.50 573.00 37.00 -0- 1,313.00 1,323.25 1,338.75 1,367.60 1,391.85 1,401.00 1,385.00 1,388.00 1,411.50 1,411.00 1,388.50 1,388.50 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 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 -0-063.75 -0- -0-063.75 -0- 78.85 86.10 86.75 82.00 86.00 85.50 85.50 78.75 93.25 93.75 63.75 63.75 E-53 TEN-YEAR ADOPTED CITY STAFFING COMPARISON WITH FISCAL YEARS 2007 AND 2008 DEPARTMENTS Support Services Budget and Research Finance General Services Human Resources Information Technology Procurement Sub-Total Non-Departmental General Expense Sub-Total Total FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 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 24.00 145.00 370.00 29.00 84.66 77.00 22.55 146.00 350.00 25.00 81.16 75.00 22.55 149.00 357.00 26.00 101.16 65.00 22.55 150.00 357.00 27.00 100.16 64.00 24.55 164.00 345.00 27.00 100.16 64.00 24.00 164.00 345.00 27.00 100.16 64.00 688.42 694.42 719.12 740.12 756.37 756.37 729.66 699.71 720.71 720.71 724.71 724.16 -0- -0- -0- -0- 3.00 5.50 5.75 4.75 4.75 4.75 14.75 14.75 -0- -0- -0- -0- 3.00 5.50 5.75 4.75 4.75 4.75 14.75 14.75 5,252.32 5,420.07 5,497.17 5,681.77 5,932.77 5,925.67 5,829.46 5,760.51 5,897.26 6,041.51 5,847.76 6,006.71 E-54 FULL-TIME EQUIVALENT POSITIONS GENERAL PURPOSE FUNDS AND OTHER FUNDS FISCAL YEARS 2007 AND 2008 General Purpose Adopted Fiscal Year 2007 Other Total General Purpose Approved Fiscal Year 2008 Other Total Elected and Official Mayor and Council City Manager City Clerk City Attorney 51.50 26.00 37.50 98.50 -0-0-010.00 51.50 26.00 37.50 108.50 51.50 26.00 58.00 100.50 -0-0-010.00 51.50 26.00 58.00 110.50 Sub-Total 213.50 10.00 223.50 236.00 10.00 246.00 146.80 8.00 692.00 53.00 11.00 3.50 144.50 2.00 -0-0- 150.30 152.50 694.00 53.00 11.00 153.80 8.00 739.00 58.00 11.00 3.50 144.50 2.00 -0-0- 157.30 152.50 741.00 58.00 11.00 38.00 693.25 1,422.00 -0- -017.75 46.00 154.75 38.00 711.00 1,468.00 154.75 38.00 719.25 1,474.00 -0- -017.75 46.00 154.75 38.00 737.00 1,520.00 154.75 3,064.05 368.50 3,432.55 3,201.05 368.50 3,569.55 123.00 -034.00 -037.00 -0251.00 370.50 573.00 -0- 123.00 251.00 404.50 573.00 37.00 123.00 -034.00 -037.00 -0251.00 370.50 573.00 -0- 123.00 251.00 404.50 573.00 37.00 194.00 1,194.50 1,388.50 194.00 1,194.50 1,388.50 Neighborhood Services City Court Community Services Fire 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 Environmental Services Transportation Tucson Water Urban Planning and Design Sub-Total E-55 FULL-TIME EQUIVALENT POSITIONS GENERAL PURPOSE FUNDS AND OTHER FUNDS FISCAL YEARS 2007 AND 2008 General Purpose Strategic Initiatives Tucson Convention Center 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 Fiscal Year 2007 Other Total General Purpose Approved Fiscal Year 2008 Other Total 63.75 -0- 63.75 63.75 -0- 63.75 63.75 -0- 63.75 63.75 -0- 63.75 24.55 149.00 125.00 27.00 100.16 63.00 -015.00 220.00 -0-01.00 24.55 164.00 345.00 27.00 100.16 64.00 24.00 149.00 125.00 27.00 100.16 63.00 -015.00 220.00 -0-01.00 24.00 164.00 345.00 27.00 100.16 64.00 488.71 236.00 724.71 488.16 236.00 724.16 9.00 5.75 14.75 9.00 5.75 14.75 9.00 4,033.01 5.75 1,814.75 14.75 5,847.76 9.00 4,191.96 5.75 1,814.75 14.75 6,006.71 E-56 City of Tucson Elected and Mayor/Council Appointed Officials (Unclassified) Class Code Class Title 0400 0401 0409 0430 0625 0629 0630 0633 0634 0635 Annual Rate Mayor Council Member City Clerk City Manager City Attorney Limited Special City Magistrate City Magistrate Presiding Magistrate Senior Special Magistrate Special Magistrate 42,000 24,000 128,060 198,986 141,856 59,394 98,990 106,490 98,990 $90/Session E-57 Last Effective Date 6/18/2000 6/18/2000 1/1/2006 4/2/2006 6/1/2006 1/2/2006 1/2/2006 1/2/2006 1/2/2006 7/1/1997 EXEMPT SCHEDULE EFFECTIVE: July 9, 2006 Grade No. 810 811 812 813 814 815 816 817 818 819 820 821 822 823 Minimum Midpoint 31,470 33,696 36,275 39,250 42,661 46,571 51,126 56,368 62,442 69,534 77,792 87,443 98,717 111,550 42,182 45,157 48,610 52,582 57,158 62,421 68,494 75,546 83,678 93,184 104,250 117,166 132,288 149,490 Maximum 52,874 56,618 60,923 65,915 71,635 78,250 85,862 94,702 104,915 116,834 130,686 146,890 165,859 187,408 EFFECTIVE: November 12, 2006 Grade No. 810 811 812 813 814 815 816 817 818 819 820 821 822 823 Minimum Midpoint 31,782 34,029 36,629 39,624 43,077 47,029 51,605 56,909 63,066 70,221 78,541 88,296 99,674 112,632 42,598 45,614 49,088 53,102 57,720 63,024 69,160 76,274 84,510 94,099 105,248 118,310 133,578 150,946 E-58 Maximum 53,394 57,179 61,526 66,560 72,342 78,998 86,694 95,618 105,934 117,957 131,955 148,304 167,482 189,238 POLICE (EXEMPT) Effective: July 9, 2006 Grade No. 320 321 322 323 324 Minimum Midpoint 84,282 94,141 105,435 118,082 134,618 95,930 107,328 120,203 134,618 154,606 Maximum 107,578 120,494 134,950 151,154 174,574 FIRE (EXEMPT) EFFECTIVE: July 9, 2006 Range No. 420 421 422 423 Minimum Midpoint 80,371 79,643 87,859 131,581 87,360 94,994 107,037 151,549 E-59 Maximum 94,328 110,344 126,194 171,496 INFORMATION TECHNOLOGY SCHEDULE (EXEMPT) EFFECTIVE: July 9, 2006 Grade No. 712 713 714 715 716 717 718 719 Minimum Midpoint 39,146 42,328 46,384 51,355 57,512 65,125 73,757 83,533 51,834 56,118 61,443 68,037 76,211 86,299 97,739 110,677 Maximum 64,522 69,888 76,502 84,718 94,890 107,453 121,701 137,821 EFFECTIVE: November 12, 2006 Grade No. 712 713 714 715 716 717 718 719 Minimum Midpoint 39,520 42,744 46,842 51,854 58,053 65,770 74,485 84,344 52,333 56,659 62,046 68,702 76,939 87,152 98,696 111,758 E-60 Maximum 65,146 70,554 77,251 85,530 95,805 108,514 122,886 139,152 LEGAL SCHEDULE (EXEMPT) EFFECTIVE: July 9, 2006 Grade No. 610 611 612 613 614 615 616 617 618 619 Minimum Midpoint 33,509 36,858 40,622 44,886 49,733 55,182 61,402 68,453 76,482 85,675 44,387 48,818 53,830 59,488 65,874 73,133 81,349 90,709 101,358 113,526 Maximum 55,266 60,778 67,018 74,069 82,014 91,062 101,275 112,944 126,214 141,357 EFFECTIVE: November 12, 2006 Grade No. 610 611 612 613 614 615 616 617 618 619 Minimum Midpoint 33,842 37,211 41,018 45,323 50,211 55,723 62,005 69,118 77,230 86,507 44,824 49,296 54,350 60,050 66,518 73,840 82,139 91,582 102,336 114,629 E-61 Maximum 55,806 61,360 67,662 74,776 82,805 91,936 102,253 114,046 127,442 142,730 GOLF SCHEDULE (EXEMPT) CLASSIFICATIONS WITH EXCEPTIONAL PAY COMPUTATIONS EFFECTIVE: July 9, 2006 Grade No. 501 502 503 505 514 515 Minimum Midpoint 21,590 22,818 24,315 28,142 42,661 46,571 27,581 29,162 31,054 35,963 57,158 62,421 Maximum 33,550 35,485 37,794 43,763 71,635 78,250 EFFECTIVE: November 12, 2006 Grade No. 501 502 503 505 514 515 Minimum Midpoint 21,798 23,046 24,544 28,434 43,077 47,029 27,851 29,432 31,366 36,317 57,720 63,024 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 form golf lesson revenue up to $12,000 per year. Range 515 receive 100% earnings form golf lesson revenue up to $5,000 per year. E-62 Maximum 33,883 35,818 38,168 44,200 72,342 78,998 NON EXEMPT SCHEDULE EFFECTIVE: July 9, 2006 Grade No. 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 20,550 21,590 22,818 24,315 26,083 28,142 30,618 33,530 36,962 41,018 45,843 21,590 22,672 23,962 25,522 27,352 29,557 32,157 35,194 38,792 43,077 48,131 22,672 23,774 25,168 26,811 28,746 31,013 33,738 36,962 40,747 45,240 50,565 23,774 24,981 26,416 28,122 30,160 32,594 35,443 38,792 42,786 47,507 53,061 24,981 26,229 27,747 29,536 31,678 34,216 37,211 40,747 44,928 49,878 55,723 26,229 27,539 29,120 30,992 33,280 35,922 39,062 42,786 47,174 52,374 58,531 26,894 28,226 29,848 31,803 34,112 36,837 40,061 43,846 48,360 53,664 59,966 STEP 8 STEP 9 STEP 10 STEP 11 STEP 12 STEP 13 STEP 14 28,246 29,661 31,366 33,405 35,818 38,688 42,078 46,072 50,794 56,389 63,024 28,954 30,410 32,157 34,237 36,712 39,666 43,118 47,237 52,062 57,803 64,584 29,682 31,158 32,947 35,090 37,648 40,643 44,200 48,402 53,373 59,238 66,206 30,430 31,928 33,758 35,963 38,584 41,642 45,302 49,587 54,704 60,715 67,850 31,200 32,739 34,590 36,878 39,541 42,723 46,446 50,856 56,077 62,234 69,555 31,949 33,550 35,485 37,794 40,539 43,763 47,611 52,125 57,450 63,794 71,302 STEP 10 STEP 11 STEP 12 STEP 13 STEP 14 29,224 30,701 32,469 34,570 37,086 40,040 43,555 47,694 52,562 58,365 65,229 29,952 31,450 33,280 35,443 38,002 41,038 44,637 48,859 53,893 59,821 66,851 30,722 32,240 34,091 36,317 38,958 42,058 45,760 50,086 55,224 61,298 68,515 31,491 33,051 34,944 37,232 39,936 43,139 46,904 51,355 56,618 62,837 70,242 32,261 33,883 35,818 38,168 40,934 44,200 48,069 52,624 58,011 64,418 71,989 27,560 28,954 30,597 32,594 34,965 37,752 41,038 44,949 49,546 55,016 61,485 EFFECTIVE: November 12, 2006 Grade No. 910 911 912 913 914 915 916 917 918 919 920 STEP 1 20,738 21,798 23,046 24,544 26,333 28,434 30,909 33,862 37,315 41,434 46,301 STEP 2 21,798 22,880 24,190 25,771 27,622 29,848 32,469 35,547 39,166 43,493 48,610 STEP 3 22,880 24,003 25,418 27,061 29,037 31,325 34,070 37,315 41,142 45,677 51,043 STEP 4 24,003 25,230 26,666 28,413 30,451 32,906 35,776 39,166 43,202 47,965 53,581 STEP 5 25,230 26,478 28,018 29,827 31,990 34,549 37,565 41,142 45,365 50,357 56,264 STEP 6 26,478 27,789 29,390 31,304 33,592 36,275 39,437 43,202 47,632 52,894 59,093 STEP 7 27,144 28,496 30,139 32,094 34,445 37,190 40,456 44,283 48,818 54,184 60,549 E-63 STEP 8 27,810 29,224 30,888 32,906 35,298 38,106 41,454 45,386 50,045 55,557 62,088 STEP 9 28,517 29,931 31,678 33,717 36,171 39,062 42,494 46,509 51,293 56,930 63,648 POLICE NON EXEMPT SCHEDULE Effective: July 9, 2006 Grade No. 302 303 304 305 306 307 351 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 42,474 44,574 46,842 49,150 44,574 46,842 49,150 51,605 46,842 49,150 51,605 54,184 49,150 51,605 54,184 56,909 51,605 54,184 56,909 59,738 54,184 56,909 59,738 62,754 36,483 38,334 40,227 42,245 44,366 46,592 56,909 59,738 62,754 65,894 72,613 76,253 48,901 59,738 62,754 65,894 69,160 76,253 80,059 51,355 FIRE NON EXEMPT SCHEDULE Effective: July 9, 2006 Grade No. 400 401 403 404 405 406 407 408 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 33,176 39,021 41,321 40,914 43,272 43,010 45,369 45,194 47,495 47,436 49,737 48,601 50,931 53,581 55,940 62,026 64,355 69,430 49,766 52,125 54,862 57,221 63,540 65,840 71,157 51,018 53,319 56,231 58,531 65,112 67,442 72,904 52,241 54,600 57,599 59,958 66,685 69,014 74,693 53,581 55,940 59,026 61,385 68,345 70,674 76,544 E-64 HOURLY NON-PERMANENT CLASSIFICATIONS AND SCHEDULE (NON-EXEMPT) EFFECTIVE: July 9, 2006 Code Class Title (alpha order) Grade 3306 2256 3401 1001 3316 3005 0203 0201 1403 3201 7012 3302 3323 3311 0202 3313 3021 3304 3303 Aquatics Program Supervisor Camera Operator Center Attendant City Youth Worker Class Instructor Concession Worker Election Specialist Election Technician General Maintenance Trainee/Worker Golf Host Program Instructor Lifeguard Program Coordinator Recreation Worker Senior Election Technician Senior Recreation Worker Short Order Cook Swimming Pool Supervisor Water Safety Instructor/Senior Lifeguard 1025 1029 1004 1001 1008 1003 1043 1022 1015 1021 1035 1013 1023 1006 1027 1011 1010 1019 1017 Hourly Rate $11.38 $12.30 $6.72 $6.33 $8.04 $6.19 $17.50 $10.93 $8.99 $10.65 $13.89 $8.76 $10.68 $7.58 $12.00 $8.45 $8.33 $9.95 $9.24 - $18.47 - $18.60 $7.64 $24.05 $15.01 $10.41 - $18.61 - $16.48 - $10.77 EFFECTIVE: November 12, 2006 Code Class Title (alpha order) Grade 3306 2256 3401 1001 3316 3005 0203 0201 1403 3201 7012 3302 3323 3311 0202 3313 3021 3304 3303 Aquatics Program Supervisor Camera Operator Center Attendant City Youth Worker Class Instructor Concession Worker Election Specialist Election Technician General Maintenance Trainee/Worker Golf Host Program Instructor Lifeguard Program Coordinator Recreation Worker Senior Election Technician Senior Recreation Worker Short Order Cook Swimming Pool Supervisor Water Safety Instructor/Senior Lifeguard 1025 1029 1004 1001 1008 1003 1043 1022 1015 1021 1035 1013 1023 1006 1027 1011 1010 1019 1017 E-65 Hourly Rate $11.49 $12.42 $6.78 $6.40 $8.12 $6.25 $17.67 $11.03 $9.08 $10.75 $13.89 $8.84 $10.78 $7.65 $12.12 $8.53 $8.41 $10.05 $9.33 - $18.65 - $18.78 $7.72 $24.28 $15.15 $10.51 - $18.61 - $16.64 - $10.88 E-66 CAPITAL BUDGET SUMMARY This section summarizes the Five-Year Capital Improvement Program (CIP) for Fiscal Years 2007 through 2011. In general, only funded projects are reflected in the five-year CIP totals. Future utility revenue bonds are an exception; these are included so that the CIP matches the Environmental Services and Tucson Water multi-year financing plans. SUMMARY OF EXPENDITURES AND FUNDING SOURCES The following table summarizes adopted CIP expenditures by service area and by funding source. For more detailed summaries, see Tables I and II on pages F-5 and F-6. Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Projected Five-Year Total $ 63,498.8 194,217.2 16,860.0 1,159.6 $ 48,843.7 140,127.8 6,596.1 1,000.0 $ 174,606.3 651,995.5 29,862.8 3,159.6 Total $ 275,735.6 $ 195,567.6 $ 859,624.2 $ $ ($000s) Service Area Expenditures Neighborhood Services Environment and Development Support Services Non-Departmental Funding Sources General Purpose Funds Grants and Contributions City Bond Funds Enterprise Funds Other Local Funds Non-City Funds $ 4,621.9 127,643.6 18,260.0 64,803.9 60,056.2 350.0 Total $ 275,735.6 1,332.3 84,111.8 1,800.0 59,919.0 49,054.5 350.0 $ 195,567.6 9,970.0 376,678.2 23,936.3 290,138.5 157,151.2 1,750.0 $ 859,624.2 DEPARTMENT PROGRAMS The following section summarizes the department programs within each service area. Further detail on department programs and specific projects is available in the Approved Five-Year Capital Improvement Program volume. Neighborhood Services The Neighborhood Services category, which accounts for 20% of the total five-year CIP, contains projects managed by Community Services, Fire, Neighborhood Resources, Parks and Recreation, Police, and Tucson City Golf. Community Services. The Community Services five-year program of $2.9 million consists of one project, which is to construct public and common resident amenities at a new Martin Luther King, Jr. apartment building. Funding is provided by Pima County bonds, proceeds from land sale, and federal HOPE VI funds. F-1 Fire. Fire’s five-year program of $30.8 million contains two projects: new multi-company fire station and a new central Headquarters and fire station located in the downtown area. City general obligation bonds, certificates of participation, and the General Fund will fund these projects. Neighborhood Resources. This department’s five-year CIP of $19.3 million is for the Back to Basics Program. There is $5.75 million carried forward in Fiscal Year 2007 for the completion of prior year projects. New funding of $2.7 million will provide $386,780 annually for each councilmember and the mayor. Parks and Recreation. Park’s five-year CIP of $51.8 million contains 30 projects. The projects are funded primarily from Pima County bonds of $33 million, city bonds of $9.2 million, and certificates of participation of $8.8 million. Revenue from impact fees and contributions provide for the remaining $0.8 million. These funds provide for a wide range of projects: improvements at regional parks, completion of new recreation centers, and amenities at neighborhood parks. Police. The Police Department’s five-year program of $69.7 million is for five projects: renovation of Patrol Division East, construction of a new Evidence Facility, acquisition of communication equipment, expansion of Police Headquarters, and completion of a new substation that replaces the Rillitio Substation. These projects are funded with city general obligation bonds and certificates of participation. Tucson City Golf. Golf’s $0.07 million five-year program contains one project: completion of the Silverbell Golf Course Improvements. Certificates of Participation are carried forward from Fiscal Year 2006 to fund this project. Environment and Development The Environment and Development category, which accounts for 76% of the total five-year CIP, contains projects managed by Development Services, Environmental Services, Transportation, and Tucson Water. Development Services. The department’s five-year program of $0.8 million is for one project: Computerized Permitting System Upgrade. This project is funded from the Development Services fees reserved for service improvements. Environmental Services. The department’s five-year program of 26 projects totals $30.1 million. Funding for these projects is primarily from city general obligation bonds, certificates of participation, and from a future environmental service revenue bond authorization. Transportation. The five-year Transportation program of $361.1 million includes six program areas: Streets for $251.1 million, Drainage for $18.4 million, Street Lighting for $2.5 million, Traffic Signals for $3.9 million, Parking Garages for $5.8 million, and Public Transit for $79.4 million. Because there are insufficient funds to meet all of Transportation’s needs, this CIP simply allocates available funding to the highest priority projects. The largest funding source for Transportation’s projects is the capacity for the Regional Transportation Authority (RTA) plan, which totals $125 million. Other major funding sources are federal funding of $107.5 million, Pima County bond funds of $32.1 million, city bond funds of $11.7 million, regional Highway User Revenue Funds (HURF) of $37.2 million, city HURF of $7.5 million, impact fee revenues of $6.1 million, and certificates of participation of $4 million. Non-Federal grants and other contributions provide $21.4 million. The remaining $8.6 million is from the General Fund, which is used as the local match for federal transit grants. Tucson Water. The five-year Tucson Water CIP of $259.9 million includes $231.8 million of improvements to the potable water system and $28.1 million of improvements for the reclaimed water system. Tucson Water’s CIP is funded from 2005 revenue bonds of $115.3 million, operations and reserve funds of $113.6 million, $30.3 million from a future water revenue bond authorization, and $0.7 million from a federal grant. F-2 Support Services The Support Services category, which accounts for 3% of the total five-year CIP, contains a capital project managed by the Information Technology Department. Information Technology. There is one project in Information Technology's five-year CIP, the initial phase of the Emergency Communications System for $29.9 million. This project is funded with $25 million in certificates of participation and $4.9 million from General Fund Restricted Trust Reserves. These funds will provide for computer-aided dispatch for Fire, a radio dispatch center security system, and radio communication for non-public safety city departments. Non-Departmental The Non-Departmental category, which accounts for less than 1% of the total five-year CIP, contains projects that are beyond the scope of a single department. General Expense. The five-year program for General Expense contains one project for $3.2 million: continuation of an upgrade to the city’s financial and human resources management systems. Funding for the program comes from the General Fund for $2.8 million, and $0.4 million in bond interest. F-3 SUMMARY OF CIP IMPACT ON THE OPERATING BUDGET While the completion of a capital project provides improved service to the community, the completion of many capital projects is also the beginning of annual operating expenses for staff, maintenance, and routine operations. Operating and maintenance (O&M) impacts from projects in this Approved Capital Improvement Program total $3.6 million for Fiscal Year 2007, increasing to $11.5 million for Fiscal Year 2008, and to $19 million by Fiscal Year 2011. The Fiscal Year 2007 and 2008 Biennial Budget includes 45 new positions, which accounts for more that half of the increased cost. These O&M impacts are primarily for the staffing and opening of new or expanded facilities, primarily Fire Station 22. The operating costs for expansion vans, specifically labor and fuel costs, for Van Tran is also a significant component of the total O&M impact. The General Fund pays for most of the operating and maintenance impacts, (62% in Fiscal Year 2007 and 50% in Fiscal Year 2008. The balance is funded from utility revenue and the city’s Highway User Revenue Fund (HURF). The following table summarizes the operating budget impact of projects in this five-year CIP that were completed in Fiscal Year 2006 or will be completed in Fiscal Year 2007 and 2008. For a more detailed summary, see Table III on page F-9. ($000s) Service Area Expenditures Neighborhood Services Environment and Development Total Funding Sources General Purpose Funds Grants and Contributions Enterprise Funds Other Local Funds Total Year 1 FY 2007 Year 2 FY 2008 Five-Year Total $ 1,262.1 2,315.9 $ 4,878.7 6,676.3 $ 28,938.9 40,350.6 $ 3,578.0 $ 11,555.0 $ 69,289.5 $ 2,243.6 188.4 1,146.0 -0- $ 5,860.2 345.1 5,349.7 -0- $ 34,036.2 1,689.0 33,186.3 378.0 $ 3,578.0 $ 11,555.0 $ 69,289.5 For additional information on specific projects that have an impact on the operating budget, see the Approved Capital Improvement Program, Volume III. ATTACHED TABLES Table I. Table II. Table III. Five-Year Capital Improvement Program Summary by Department Five-Year Capital Improvement Program Summary by Funding Source Five-Year Capital Improvement Program Summary of CIP Impact on the Operating Budget F-4 Five-Year Capital Improvement Program Table I. Summary by Department ($000) Adopted Year 1 FY 2007 Neighborhood Services Community Services Fire 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 Support Services Information Technology Sub-Total Non-Departmental Non-Departmental: General Expense Sub-Total Total Approved Year 2 FY 2008 $ 2,112.8 10,239.3 8,457.5 23,870.6 18,748.6 70.0 $ 63,498.8 $ $ 305.0 129,178.3 4,400.0 60,333.9 $ $ 807.2 20,606.0 2,707.5 14,073.0 10,650.0 -0- Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 $ -0-02,707.5 11,451.3 30,300.0 -0- $ 48,843.7 $ 44,458.8 $ 315.0 79,893.8 9,645.0 50,274.0 170.0 57,391.7 9,428.0 43,145.0 $ $ -0-02,707.5 1,390.0 10,000.0 -0- Five Year Total $ -0- $ 2,920.0 -030,845.3 2,707.5 19,287.5 1,000.0 51,784.9 -069,698.6 -070.0 14,097.5 $ 3,707.5 $ 174,606.3 -044,662.1 3,262.6 52,898.0 $ -050,011.1 3,410.0 53,272.0 $ 790.0 361,137.0 30,145.6 259,922.9 $ 194,217.2 $ 140,127.8 $ 110,134.7 $ 100,822.7 $ 106,693.1 $ 651,995.5 $ 16,860.0 $ 6,596.1 $ 6,406.7 $ 16,860.0 $ 6,596.1 $ 6,406.7 $ 1,159.6 $ 1,000.0 $ 1,000.0 $ $ -0-0- $ $ -0-0- $ 29,862.8 $ $ -0-0- $ $ -0-0- $ $ 1,159.6 $ 1,000.0 $ 1,000.0 $ 275,735.6 $ 196,567.6 $ 162,000.2 $ 114,920.2 $ 110,400.6 F-5 $ 29,862.8 3,159.6 $ 3,159.6 $ 859,624.2 Five-Year Capital Improvement Program Table II. Summary by Funding Source ($000) Adopted Year 1 FY 2007 General Purpose Funds General Fund Mass Transit Fund: General Fund Transfer Sub-Total Grants and Contributions Capital Agreement Fund: PAG Capital Agreement Fund: Pima County Bonds Capital Agreement Fund: Pima County Contribution Capital Agreement Fund: RTA Community Development Block Grant Fund Federal Highway Administration Grants HOPE VI - Martin Luther King Revitalization 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 State Infrastructure Bank Federal Pass-Through Sub-Total City Bond Funds 1994 General Obligation Bond Funds - Interest 2000 General Obligation Bond Funds 2000 Street and Highway Revenue Bond Funds Future General Obligation Bond Authorization Sub-Total Approved Year 2 FY 2008 $ $ 1,335.1 3,286.8 $ 4,621.9 $ $ 22,597.0 $ 19,039.6 $ $ Five Year Total -0- $ 1,335.4 -0- $ 1,338.6 -0- $ 1,341.8 1,335.1 8,634.9 1,332.3 $ 1,335.4 $ 1,338.6 1,341.8 9,970.0 5,415.0 $ 15,523.0 4,000.0 12,075.0 $ -05,200.0 $ 4,890.0 14,850.1 $ $ $ 37,212.0 66,377.7 2,600.0 2,000.0 2,200.0 -0- -0- 6,800.0 25,000.0 3,907.5 25,000.0 1,007.5 25,000.0 1,007.5 25,000.0 1,007.5 25,000.0 1,007.5 125,000.0 7,937.5 12,261.9 349.0 9,607.0 146.7 10,100.0 -0- 4,700.0 -0- -0-0- 36,668.9 495.7 6,797.4 725.0 3,212.2 600.0 3,137.5 600.0 2,766.5 600.0 2,422.5 600.0 18,336.1 3,125.0 800.0 28,862.1 104.1 4,600.0 800.0 20,800.4 -0-0- 800.0 6,905.0 -0-0- 800.0 2,107.0 -0-0- 600.0 7,546.7 -0-0- 3,800.0 66,221.2 104.1 4,600.0 $ 376,678.2 $ 127,643.6 $ $ -01,332.3 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 452.5 84,111.8 $ $ -0- $ 65,825.0 $ 47,071.0 $ 52,026.8 -0- $ -0- $ -0- $ 452.5 17,722.2 85.3 1,800.0 -0- 126.3 -0- -0-0- -0-0- 19,648.5 85.3 -0- -0- 3,750.0 -0- -0- 3,750.0 3,876.3 $ -0- $ -0- $ 23,936.3 18,260.0 $ 1,800.0 $ F-6 Five-Year Capital Improvement Program Table II. Summary by Funding Source ($000) Adopted Year 1 FY 2007 Enterprise Funds 2000 Environmental Service Bonds 2005 Water Revenue Bond Funds Central Arizona Project Reserve Fund Environmental Services Fund: COPs Future Environmental Services Revenue Bonds Future Water Revenue Bonds Golf Course Fund: COPs Tucson Water Fund: Grants Tucson Water Revenue and Operations Fund Water Infrastructure Reserve Fund Sub-Total Other Local Funds General Fund: Certificates of Participation General Fund: Earned Revenue General Fund: Pending Partnership Funding General Fund: Restricted General Fund: Restricted Trust Reserves Impact Fee Fund: Central Benefit District Impact Fee Fund: East Benefit District Impact Fee Fund: Southeast Benefit District Impact Fee Fund: Southlands Benefit District Impact Fee Fund: West Benefit District Parkwise: Fees and Charges Sub-Total Non-City Funds Special Assessments Construction Fund Sub-Total Total $ Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 $ -0- $ -0- $ 23,224.0 30,150.0 10.0 10.0 -0-09,428.0 3,262.6 -0-010.0 -03,410.0 Five Year Total 2,899.0 $ 29,900.9 10.0 1,501.0 -0- 1,501.0 32,030.0 10.0 8,144.0 -0- $ 4,400.0 115,304.9 50.0 9,645.0 16,100.6 -070.0 700.0 22,723.0 -0-0-018,234.0 -0-0-016,911.0 1,537.0 -0-021,201.0 28,722.0 -0-024,540.0 30,259.0 70.0 700.0 103,609.0 7,000.0 -0- 3,000.0 -0- -0- 10,000.0 $ 64,803.9 $ 59,919.0 $ 52,573.0 $ 56,160.6 $ 56,682.0 $ 290,138.5 $ 45,848.6 $ 491.1 -0- 41,602.1 $ 660.5 5,250.0 36,706.7 $ -0-0- 10,000.0 $ -0-0- -0- $ 134,157.4 -01,151.6 -05,250.0 1,805.0 4,860.0 970.7 1,800.0 973.5 1,315.0 -0-0-0-0- 1,170.0 -0-0-0-0- -0-0-0-0-0- -0-0-0-0-0- 4,290.0 4,860.0 970.7 1,800.0 973.5 570.7 -0- -0- -0- -0- 570.7 2,537.6 199.0 -0226.9 -0163.8 -0-0- 2,537.6 589.7 38,040.5 $ 10,000.0 $ -0-0-0- 350.0 $ 350.0 $ 350.0 $ 60,056.2 $ 49,054.5 $ $ 350.0 350.0 $ 350.0 $ 275,735.6 $ $ 350.0 $ 196,567.6 F-7 $ $ 350.0 $ 350.0 $ 350.0 $ 162,000.2 $ 114,920.2 $ 110,400.6 $ 157,151.2 $ 1,750.0 $ 1,750.0 $ 859,624.2 Five-Year Capital Improvement Program Table III. Summary of CIP Impact on the Operating Budget ($000) Year 1 FY 2007 Neighborhood Services Fire Parks and Recreation Police Sub-Total Environment and Development Transportation Utility Services-Environmental Services Utility Services-Tucson Water Sub-Total Total Year 2 FY 2008 Year 3 FY 2009 Year 4 FY 2010 Year 5 FY 2011 Five Year Total $ 611.7 $ 588.4 62.0 3,312.7 $ 1,346.0 220.0 3,526.1 3,216.0 220.0 $ 3,698.7 $ 3,797.4 220.0 3,884.4 4,015.4 220.0 $ 1,262.1 $ 4,878.7 $ 6,962.1 $ 7,716.1 $ 8,119.8 $ 28,938.9 $ 1,169.9 $ 1,146.0 -0- 1,326.6 $ 1,239.0 4,110.7 1,552.3 1,232.0 7,103.9 $ 1,570.9 $ 1,232.0 7,751.7 1,544.6 1,232.0 8,139.0 $ 2,315.9 $ 6,676.3 $ 9,888.2 $ 10,554.6 $ 10,915.6 $ 3,578.0 $ 11,555.0 $ 16,850.3 $ 18,270.7 $ 19,035.4 $ 15,033.6 12,963.3 942.0 $ 7,164.3 6,081.0 27,105.3 $ 40,350.6 $ 69,289.5 Source of Funds Summary General Purpose Funds General Fund Mass Transit Fund: General Fund Transfer Sub-Total Grants and Contributions Highway User Revenue Fund Sub-Total Enterprise Funds Environmental Services Fund Tucson Water Revenue and Operations Fund Sub-Total Other Local Funds Parkwise: Fees and Charges Sub-Total Total $ 1,262.1 $ 981.5 4,878.7 $ 981.5 6,962.1 1,043.5 $ 7,716.1 $ 1,045.4 8,119.8 $ 28,938.9 1,045.4 5,097.3 $ 2,243.6 $ 5,860.2 $ 8,005.6 $ 8,761.5 $ 9,165.2 $ 34,036.2 $ 188.4 $ 345.1 $ 382.8 $ 399.5 $ 373.2 $ 1,689.0 $ 188.4 $ 345.1 $ 382.8 $ 399.5 $ 373.2 $ 1,689.0 $ 1,146.0 $ -0- 1,239.0 $ 4,110.7 1,232.0 7,103.9 $ 1,232.0 $ 7,751.7 1,232.0 8,139.0 $ 6,081.0 27,105.3 $ 1,146.0 $ 5,349.7 $ 8,335.9 $ 8,983.7 $ 9,371.0 $ 33,186.3 $ $ -0- $ -0- $ $ 3,578.0 -0-0- $ 11,555.0 F-8 $ 126.0 $ 126.0 $ 126.0 $ 126.0 $ 16,850.3 $ 18,270.7 $ 126.0 $ 378.0 $ 126.0 $ 378.0 $ 19,035.4 $ 69,289.5 Five-Year Capital Improvement Program Community Services ($000) Project Name Adopted Year 1 FY 2007 Martin Luther King Public Housing Amenities $ Department Total $ Projected Requirements Approved Year 2 Year 3 Year 4 Year 5 FY 2008 FY 2009 FY 2010 FY 2011 Five Year Total 2,112.8 $ 2,112.8 $ 807.2 807.2 $ $ -0- $ -0- $ -0- $ -0- $ -0- $ 2,920.0 -0- $ 2,920.0 1,272.7 $ 491.1 349.0 2,112.8 $ -0660.5 146.7 807.2 $ -0- $ -0-0-0- $ -0- $ -0-0-0- $ -0- $ 1,272.7 -01,151.6 -0495.7 -0- $ 2,920.0 Source of Funds Summary Capital Agreement Fund: Pima County Bonds $ General Fund: Earned Revenue HOPE VI - Martin Luther King Revitalization Department Total $ F-9 $ Five-Year Capital Improvement Program Development Services ($000) Project Name Adopted Year 1 FY 2007 Computerized Permitting System Upgrade $ Department Total $ Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Five Year Total 305.0 305.0 $ $ 315.0 315.0 $ $ 170.0 170.0 $ $ -0- $ -0- $ -0- $ -0- $ 790.0 790.0 305.0 305.0 $ $ 315.0 315.0 $ $ 170.0 170.0 $ $ -0- $ -0- $ -0- $ -0- $ 790.0 790.0 Source of Funds Summary General Fund: Restricted $ Department Total $ F-10 Five-Year Capital Improvement Program Utility Services-Environmental Services ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Environmental Remediations Broadway-Pantano Remediation Site, Phase I $ 125.0 $ Harrison Landfill Groundwater Remediation 150.0 Los Reales Landfill Groundwater Remediation 460.0 Price Service Center Remediation 290.0 Silverbell Jail Annex Landfill Remediation 250.0 Tumamoc Landfill Remediation 238.0 Sub-Total $ 1,513.0 $ Landfill Construction Los Reales Landfill Buffer Improvements $ Los Reales Landfill Drainage Improvements Los Reales Landfill Lined Cell Four Los Reales Landfill Lined Cell Three Los Reales Landfill West Property Acquisition Sub-Total $ Landfill Closure Irvington Landfill Closure Los Reales Landfill Final Closure Features Los Reales Landfill Gas Control, Phase II Los Reales Landfill Westside Closure Tumamoc Landfill Closure Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 -0- $ 1,425.0 $ 1,255.0 $ -0-0-0-0-0580.0 -0-0240.0 -0-0960.0 -0-0-0-0- $ 3,205.0 $ 1,255.0 $ 200.0 $ 220.0 $ -0-0-0-0100.0 3,626.0 -0480.0 300.0 $ 4,326.0 $ $ 876.0 $ -0150.0 260.0 100.0 Sub-Total $ 1,386.0 $ 222.0 -0-0-0-0222.0 $ $ 1,501.0 $ 1,400.0 $ -01,275.0 -0-0-0-0-02,100.0 1,501.0 $ 4,775.0 $ -0-0-0-0-0-0-0- Five Year Total $ 2,805.0 150.0 1,040.0 530.0 1,210.0 238.0 $ 5,973.0 -0- $ 184.0 $ 826.0 -0230.0 230.0 100.0 3,060.0 3,160.0 -0-03,726.0 -0-0480.0 514.0 $ 3,060.0 $ 8,422.0 750.6 $ -0-0-0243.0 993.6 $ -0-0-0-0-0-0- $ 4,527.6 1,275.0 150.0 260.0 2,443.0 $ 8,655.6 Environmental Services Facilities -0- $ -0- $ 1,302.0 Household Hazardous Waste Facility $ 100.0 $ 601.0 $ 601.0 $ -0-0-0Irvington Landfill End-Use 150.0 150.0 300.0 -0-0-0Los Reales Landfill Access Roadway 776.0 1,912.0 2,688.0 -0-0-0-0Los Reales Landfill Education & Training Center 100.0 100.0 -0-0-0Los Reales Landfill Entrance Facilities, Phase I 100.0 500.0 600.0 -0-0-0-0Los Reales Landfill Security Fencing 100.0 100.0 -0-0Los Reales Landfill Self Hauler Facility 75.0 590.0 585.0 1,250.0 -0-0-0Master Plan for Landfill End-Use 50.0 75.0 125.0 -0-0-0Pantano Wash Landfill End-Use 150.0 100.0 250.0 -0Santa Cruz Landfill End-Use 40.0 40.0 200.0 100.0 380.0 Sub-Total $ 1,201.0 $ 3,818.0 $ 1,226.0 $ 500.0 $ 350.0 $ 7,095.0 Department Total $ 4,400.0 $ 9,645.0 $ 9,428.0 $ 3,262.6 $ 3,410.0 $ 30,145.6 F-11 Five-Year Capital Improvement Program Utility Services-Environmental Services ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Five Year Total Source of Funds Summary -0- $ -0- $ -0- $ 4,400.0 2000 Environmental Service Bonds $ 2,899.0 $ 1,501.0 $ -0-0-0Environmental Services Fund: COPs 1,501.0 8,144.0 9,645.0 -0-0Future Environmental Services Revenue Bonds 9,428.0 3,262.6 3,410.0 16,100.6 Department Total $ 4,400.0 $ 9,645.0 $ 9,428.0 $ 3,262.6 $ 3,410.0 $ 30,145.6 F-12 Five-Year Capital Improvement Program Fire ($000) Project Name Fire Central Fire Station 22 Adopted Year 1 FY 2007 Approved Year 2 FY 2008 $ Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 5,400.0 $ 20,606.0 -04,839.3 Department Total $ 10,239.3 $ 20,606.0 $ -02000 General Obligation Bond Funds $ 2,639.3 $ General Fund: Certificates of Participation 6,100.0 20,606.0 -0General Fund: Restricted 1,500.0 Department Total $ 10,239.3 $ 20,606.0 $ $ Five Year Total -0- $ -0-0- $ -0- $ -0-0- $ -0- $ 26,006.0 -04,839.3 -0- $ 30,845.3 -0- $ -0-0-0- $ -0- $ -0-0-0- $ -0- $ 2,639.3 -0- 26,706.0 -01,500.0 -0- $ 30,845.3 Source of Funds Summary F-13 $ Five-Year Capital Improvement Program Tucson City Golf ($000) Adopted Year 1 FY 2007 Project Name Silverbell Golf Course Improvements $ Department Total $ Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Five Year Total 70.0 70.0 $ $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ 70.0 70.0 70.0 70.0 $ $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ 70.0 70.0 Source of Funds Summary Golf Course Fund: COPs $ Department Total $ F-14 Five-Year Capital Improvement Program Information Technology ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Emergency Communications System, Phase I $ 16,860.0 $ 6,596.1 $ 6,406.7 Department Total $ 16,860.0 $ 6,596.1 $ 6,406.7 Five Year Total $ $ -0- $ -0- $ -0- $ 29,862.8 -0- $ 29,862.8 $ -0- $ -0-0- $ -0- $ 25,002.8 -04,860.0 -0- $ 29,862.8 Source of Funds Summary General Fund: Certificates of Participation $ 12,000.0 $ 6,596.1 $ 6,406.7 -0-0General Fund: Restricted Trust Reserves 4,860.0 Department Total $ 16,860.0 $ 6,596.1 $ 6,406.7 F-15 $ Five-Year Capital Improvement Program Neighborhood Resources ($000) Project Name Back to Basics Unallocated Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 $ 8,457.5 $ 2,707.5 $ 2,707.5 $ 2,707.5 $ 2,707.5 Department Total $ 8,457.5 $ 2,707.5 $ 2,707.5 $ 2,707.5 $ 2,707.5 Five Year Total $ 19,287.5 $ 19,287.5 Source of Funds Summary Community Development Block Grant Fund $ 3,907.5 $ 1,007.5 $ 1,007.5 $ 1,007.5 $ 1,007.5 $ 7,937.5 -0-0-0-0General Fund 550.0 550.0 Highway User Revenue Fund 4,000.0 1,700.0 1,700.0 1,700.0 1,700.0 10,800.0 Department Total $ 8,457.5 $ 2,707.5 $ 2,707.5 $ 2,707.5 $ 2,707.5 $ 19,287.5 F-16 Five-Year Capital Improvement Program Parks and Recreation ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Parks and Recreation - Parks Development $ -0- $ Arroyo Chico Wash Improvements 45.0 Atturbury Wash Sanctuary Expansion 1,090.0 260.0 -0Catalina High School Track and Field Lighting 250.0 -0Christopher Columbus Park 6.0 Eastside Senior Center Recreation Facility 396.3 950.0 Eastside Sports Complex 4,035.0 1,082.5 -0General Instruments Site Improvements 200.0 -0Greenway and Natural Resource Area Acquisition 465.2 -0Himmel Park Irrigation Replacement 204.0 Houghton Greenway 505.0 860.0 -0Impact Fee Capacity - Regional Park Improvements 775.0 Julian Wash Linear Park 1,550.0 450.0 -0Lighting System Improvements, Phase I 78.0 -0Lincoln Park/William Clements Center Expansion 300.0 -0Miscellaneous Parks Development/Renovations 174.0 -0New Comfort Stations 543.7 Northside Community Park 850.5 3,422.0 Performing Arts Center 185.0 480.0 Pima County Neighborhood Reinvestment Capacity 1,000.0 1,000.0 -0Playground Equipment Replacement 135.2 -0Reid Park Renovation 282.4 -0Reuse of Landfill Areas 207.0 Rio Vista Park Expansion 350.0 712.5 -0Rodeo Grounds Improvements 142.9 Santa Cruz River Sports Park 952.4 871.0 -0Santa Rita Skate Park 150.0 Southeast Community Park 4,005.0 190.0 -0Sunnyside Neighborhood Improvements 38.0 Sub-Total $ 18,870.6 $ 10,323.0 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 $ 540.0 600.0 -0-0126.3 732.5 -0-0-0-0-01,607.5 -0-0-0-01,090.0 -01,000.0 -0-0-0350.0 -0-0-01,655.0 -0$ 7,701.3 -0- $ 390.0 $ 975.0 -0-01,950.0 -0-0250.0 -0-06.0 -0-01,472.6 -0-05,850.0 -0-0200.0 -0-0465.2 -0-0204.0 -0-01,365.0 -0-0775.0 -0-03,607.5 -0-078.0 -0-0300.0 -0-0174.0 -0-0543.7 -0-05,362.5 -0-0665.0 1,000.0 1,000.0 5,000.0 -0-0135.2 -0-0282.4 -0-0207.0 -0-01,412.5 -0-0142.9 -0-01,823.4 -0-0150.0 -0-05,850.0 -0-038.0 $ 1,390.0 $ 1,000.0 $ 39,284.9 $ Parks and Recreation - Zoo Improvements -0- $ -0Reid Park Zoo Africa Expansion-Elephant Exhibit $ 1,000.0 $ 3,750.0 $ 3,750.0 $ -0-0-0-0Reid Park Zoo Conservation Learning Center 4,000.0 -0- $ -0Sub-Total $ 5,000.0 $ 3,750.0 $ 3,750.0 $ Department Total $ 23,870.6 $ 14,073.0 $ 11,451.3 $ 1,390.0 $ 1,000.0 F-17 Five Year Total $ 8,500.0 4,000.0 $ 12,500.0 $ 51,784.9 Five-Year Capital Improvement Program Parks and Recreation ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Five Year Total Source of Funds Summary -0- $ -0- $ -0- $ -0- $ 1994 General Obligation Bond Funds - Interest $ 78.0 $ 78.0 -0-02000 General Obligation Bond Funds 3,450.7 1,800.0 126.3 5,377.0 Capital Agreement Fund: Pima County Bonds 14,566.9 8,523.0 7,575.0 1,390.0 1,000.0 33,054.9 -0-0-0-0Future General Obligation Bond Authorization 3,750.0 3,750.0 -0-0-0General Fund: Certificates of Participation 5,000.0 3,750.0 8,750.0 -0-0-0-0Impact Fee Fund: Central Benefit District 135.0 135.0 -0-0-0-0Impact Fee Fund: East Benefit District 195.0 195.0 -0-0-0-0Impact Fee Fund: Southeast Benefit District 105.0 105.0 -0-0-0-0Impact Fee Fund: Southlands Benefit District 65.0 65.0 -0-0-0-0Impact Fee Fund: West Benefit District 275.0 275.0 Department Total $ 23,870.6 $ 14,073.0 $ 11,451.3 $ 1,390.0 $ 1,000.0 $ 51,784.9 F-18 Five-Year Capital Improvement Program Police ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 $ -0- $ 5,000.0 -010,600.0 -01,500.0 -045,000.0 -07,598.6 -0- $ 69,698.6 General Fund: Certificates of Participation $ 18,748.6 $ 10,650.0 $ 30,300.0 $ 10,000.0 $ Department Total $ 18,748.6 $ 10,650.0 $ 30,300.0 $ 10,000.0 $ -0- $ 69,698.6 -0- $ 69,698.6 Eastside Renovation $ 200.0 $ 4,500.0 $ 300.0 -0-0Evidence Facility 10,600.0 -0Police Communications Equipment 150.0 1,350.0 Police Headquarters Expansion 200.0 4,800.0 30,000.0 -0-0Police Substation 7,598.6 Department Total $ 18,748.6 $ 10,650.0 $ 30,300.0 $ -0-0-010,000.0 -0$ 10,000.0 $ Five Year Total Source of Funds Summary F-19 Five-Year Capital Improvement Program Transportation ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Five Year Total Transportation - Streets -0- $ -0- $ -0- $ -0- $ 2,384.0 6th Avenue/18th Street Intersection Improvements $ 2,384.0 $ -0-0-0Alternate Modes Improvements 651.0 529.0 1,180.0 -0-0-0-0Anklam Road Traffic Safety Improvements 450.0 450.0 -0-0-0-0Armory/Santa Rita Park Pedestrian Enhancements 186.0 186.0 -0-0-0-0Barraza-Aviation Downtown Segment, Phase I 364.4 364.4 -0-0Barraza-Aviation Parkway: 4th Avenue Underpass 18,735.0 3,565.0 1,170.0 23,470.0 -0-0-0-0Barraza-Aviation: Downtown, Phase III 2,830.0 2,830.0 Broadway Boulevard: Euclid to Campbell 1,000.0 2,000.0 3,000.0 3,500.0 13,850.1 23,350.1 -0-0-0-0Broadway/Campbell to Country Club 1,000.0 1,000.0 -0-0-0-0Cambio Grande Street Revitalization 511.0 511.0 -0-0-0-0Congress Improvements 100.0 100.0 -0-0-0Downtown Pedestrian Implementation 150.0 200.0 350.0 -0-0-0-0Harrison Road: Speedway to Old Spanish Trail 5,921.6 5,921.6 -0-0-0-0Highland Avenue Bike and Pedestrian Improvements 422.8 422.8 -0Houghton Road: Golf Links to I-10 1,000.0 1,000.0 1,000.0 1,000.0 4,000.0 -0-0-0-0Impact Fee Capacity - Transportation Improvement 6,077.5 6,077.5 -0-0Kino Parkway Overpass at 22nd Street 2,200.0 5,000.0 1,500.0 8,700.0 Miscellaneous Developer-Funded Improvements 1,200.0 1,200.0 1,200.0 1,200.0 1,200.0 6,000.0 Miscellaneous Street Improvements 347.5 550.0 550.0 550.0 550.0 2,547.5 -0-0-0Mountain Avenue: Roger Road to Ft. Lowell Road 2,120.9 7,930.0 10,050.9 -0-0-0-0Old Pueblo Trolley Track Extension 25.0 25.0 -0-0Oracle/Drachman Main Intersection 1,768.0 400.0 250.0 2,418.0 -0-0-0-0Park and Euclid Bicycle and Pedestrian Bridge 1,242.3 1,242.3 -0-0-0-0Pedestrian Improvements 5.6 5.6 -0-0-0-0Railroad Grade Separations at 22nd & Barraza 500.0 500.0 Regional Transportation Authority Capacity 25,000.0 25,000.0 25,000.0 25,000.0 25,000.0 125,000.0 -0Road Resurfacing, Restoration, & Rehabilitation 1,215.1 8,067.7 2,085.0 2,785.0 14,152.8 -0-0-0-0South 4th Avenue Streetscape Enhancement 706.0 706.0 -0-0Speedway and Main Intersection Improvements 200.0 1,000.0 250.0 1,450.0 -0-0Stone Ave: Drachman/Speedway Improvements 300.0 300.0 3,500.0 4,100.0 -0-0-0-0Stone Avenue: 6th Street to Speedway 822.6 822.6 -0-0-0-0Stone Avenue: Pedestrian Safety Improvements 225.2 225.2 -0-0-0-0Tyndall Avenue Enhancements 529.0 529.0 Sub-Total $ 75,209.5 $ 48,733.7 $ 46,265.0 $ 40,264.0 $ 40,600.1 $ 251,072.3 Transportation - Drainage Alamo Wash Drainage Improvements Arroyo Chico Drainage Improvements Columbus Wash Drainage Relief, Phase II Navajo Wash Drainage Improvements Park Avenue Detention Basin, Phase II -0- $ -02,000.0 $ -0-0500.0 -0-010,332.2 600.0 2,000.0 2,200.0 -0-0800.0 Sub-Total $ 14,232.2 $ 2,000.0 $ 2,200.0 $ F-20 $ $ -0-0-0-0-0-0- $ $ -0- $ 2,000.0 -0500.0 -010,332.2 -04,800.0 -0800.0 -0- $ 18,432.2 Five-Year Capital Improvement Program Transportation ($000) Adopted Year 1 FY 2007 Project Name Transportation - Street Lighting Electrical Systems Upgrades $ Neighborhood District Lighting Improvements Sub-Total $ Transportation - Traffic Signals $ Changeable Message Signs Communication System Improvements Control Center to South Tucson Harrison/Golf Links Communication Project Intelligent Transportation System Improvements Intelligent Transportation System: ER Link Living Transportation Laboratory Mission Road Complex Fiber Optics Tanque Verde/Paseo Rancho Esperanza Signal Traffic Signal and Control Equipment Traffic Signal and Control Equipment, Ph I Valencia: Santa Clara to Old Nogales Fiber Sub-Total $ Transportation - Parking Garages Broadway and 5th Parking Structure City/State Parking Garage Improvements Main Library Parking Garage Improvements $ Sub-Total $ 150.0 350.0 500.0 Approved Year 2 FY 2008 $ Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 150.0 350.0 500.0 $ -0- $ 150.0 1,117.0 772.0 -0109.9 -0160.2 -040.0 -0324.7 -0133.0 -079.6 -0250.0 -0106.0 -050.0 -0185.0 2,449.4 $ 1,028.0 $ 60.0 $ 5,250.0 100.0 156.9 39.0 70.0 199.0 $ 5,476.9 $ $ $ $ $ 150.0 350.0 500.0 $ -0-0-0-0-0-0-0-0-0-0-0-0-0- $ -0163.8 -0163.8 $ $ $ $ 150.0 350.0 500.0 $ -0-0-0-0-0-0-0-0-0430.0 -0-0430.0 $ -0-0-0-0- $ $ $ $ Five Year Total 150.0 $ 350.0 500.0 $ 750.0 1,750.0 2,500.0 -0- $ -0-0-0-0-0-0-0-0-0-0-0-0- $ 150.0 1,889.0 109.9 160.2 40.0 324.7 133.0 79.6 250.0 536.0 50.0 185.0 3,907.4 -0- $ -0-0-0- $ 5,310.0 420.7 109.0 5,839.7 Transportation - Public Transit ADA Transit Enhancements $ 603.9 $ 112.4 $ 112.4 $ 112.4 $ 112.4 $ 1,053.5 -0-0-0-0125.0 Broadway Boulevard Transit Improvements 125.0 -0-0-0-0Bus Shelters 392.4 392.4 -0-0-0-0Compressed Natural Gas Facility Improvements 515.5 515.5 Contingency Local Match for Future Grants 971.3 70.4 85.5 922.0 118.2 2,167.4 -0-0-0-0Downtown Intermodal Center 6,541.2 6,541.2 Expansion Vans for Van Tran 1,306.0 514.0 496.4 426.1 263.3 3,005.8 Replacement Buses for Sun Tran 10,399.0 5,816.9 4,780.1 459.8 5,886.0 27,341.8 Replacement Vans for Van Tran 5,768.7 1,977.4 2,788.5 1,335.7 2,531.1 14,401.4 -0-0-0-0Ronstadt Transit Center 2,912.6 2,912.6 -0-0-0Sun Tran Maintenance Facility 1,882.8 8,500.0 10,382.8 -0-0-0Transit Alternatives Analysis 2,195.0 4,080.0 6,275.0 -0-0-0212.1 424.2 Transit Enhancement Program 212.1 -0-0-0Transit Headquarters Improvements 2,974.8 872.0 3,846.8 Sub-Total $ 36,588.2 $ 22,155.2 $ 8,262.9 $ 3,468.1 $ 8,911.0 $ 79,385.4 Department Total $ 129,178.3 $ 79,893.8 $ 57,391.7 $ 44,662.1 $ 50,011.1 $ 361,137.0 F-21 Five-Year Capital Improvement Program Transportation ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Five Year Total Source of Funds Summary -02000 General Obligation Bond Funds $ 11,632.2 $ -02000 Street and Highway Revenue Bond Funds 85.3 Capital Agreement Fund: PAG 22,597.0 5,415.0 Capital Agreement Fund: Pima County Bonds 3,200.0 7,000.0 Capital Agreement Fund: Pima County Contribution 2,600.0 2,000.0 Capital Agreement Fund: RTA 25,000.0 25,000.0 Federal Highway Administration Grants 12,261.9 9,607.0 -0General Fund: Certificates of Participation 4,000.0 -0General Fund: Pending Partnership Funding 5,250.0 Highway User Revenue Fund 2,797.4 1,512.2 Highway User Revenue Fund: Contributions 725.0 600.0 Highway User Revenue Fund: In-Lieu Fees 800.0 800.0 -0Impact Fee Fund: Central Benefit District 835.7 -0Impact Fee Fund: East Benefit District 1,605.0 -0Impact Fee Fund: Southeast Benefit District 868.5 -0Impact Fee Fund: Southlands Benefit District 505.7 -0Impact Fee Fund: West Benefit District 2,262.6 Mass Transit Fund: Federal Grants 28,862.1 20,800.4 Mass Transit Fund: General Fund Transfer 3,286.8 1,332.3 -0Miscellaneous Non-Federal Grants 104.1 Parkwise: Fees and Charges 199.0 226.9 Special Assessments Construction Fund 350.0 350.0 -0State Infrastructure Bank Federal Pass-Through 4,600.0 Department Total $ 129,178.3 $ 79,893.8 F-22 $ -0-04,000.0 4,500.0 2,200.0 25,000.0 10,100.0 -0-01,437.5 600.0 800.0 -0-0-0-0-06,905.0 1,335.4 -0163.8 350.0 -0$ 57,391.7 $ -0- $ -0-0-0-05,200.0 3,500.0 13,850.1 -0-025,000.0 25,000.0 -04,700.0 -0-0-0-01,066.5 722.5 600.0 600.0 600.0 800.0 -0-0-0-0-0-0-0-0-0-02,107.0 7,546.7 1,338.6 1,341.8 -0-0-0-0350.0 350.0 -0-0$ 44,662.1 $ 50,011.1 $ 11,632.2 85.3 37,212.0 32,050.1 6,800.0 125,000.0 36,668.9 4,000.0 5,250.0 7,536.1 3,125.0 3,800.0 835.7 1,605.0 868.5 505.7 2,262.6 66,221.2 8,634.9 104.1 589.7 1,750.0 4,600.0 $ 361,137.0 Five-Year Capital Improvement Program Utility Services-Tucson Water ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Five Year Total Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Tucson Water - Potable Source Development Drill Production Wells $ 2,288.0 $ 1,750.0 $ 1,000.0 $ 1,000.0 $ 1,000.0 $ 7,038.0 -0-0Monitor Wells 220.0 150.0 150.0 520.0 -0New Well Equipping 1,100.0 1,000.0 1,000.0 250.0 3,350.0 Pressure Tank Replacement 200.0 200.0 200.0 200.0 200.0 1,000.0 Production Well Sites 75.0 75.0 75.0 75.0 75.0 375.0 -0-0-0Well Equipping for Central Avra Valley Storage 600.0 600.0 1,200.0 and Recovery Project Wellfield Upgrades 288.0 288.0 288.0 288.0 288.0 1,440.0 Sub-Total $ 4,771.0 $ 3,913.0 $ 2,713.0 $ 1,813.0 $ 1,713.0 $ 14,923.0 Tucson Water - Recharge and Recovery South Avra Valley Storage and Recovery Project $ 5,500.0 $ 4,000.0 $ Sub-Total $ 5,500.0 $ 4,000.0 $ 500.0 $ 500.0 $ -0- $ -0- $ 500.0 500.0 Tucson Water - Potable Storage -0- $ Devine Reservoir Vault and Piping Modifications $ 177.0 $ -0Diamond Bell Ranch I Zone Reservoir and Booster 364.0 Disinfection Equipment Upgrades 520.4 120.0 -0-0Los Reales Reservoir Roof Replacement -0Peppertree Ranch Y Zone Reservoir 250.0 Reservoir Roof Replacements 199.0 204.0 South Avra Valley Reservoir and Booster Station 15.0 180.0 -0Southeast C Zone Reservoir 55.0 -0Southeast E Zone Reservoir 150.0 Southeast G Zone Reservoir 200.0 900.0 -0-0Spencer Avenue Storage and Booster Station Thornydale/Tangerine C Zone Reservoir 3,353.0 1,000.0 -0Valley View Vault and Piping Modifications 295.0 -0Westside C Zone Reservoir 115.0 Sub-Total $ 5,328.4 $ 2,769.0 $ -0- $ -0- $ -0-0120.0 120.0 -0250.0 250.0 1,700.0 204.0 204.0 -0400.0 -0-0-0-0-0-0-01,000.0 -0-0-0-0-0824.0 824.0 $ 4,248.0 $ -0-0120.0 -01,700.0 204.0 3,000.0 400.0 -0-0-0-01,000.0 256.0 6,680.0 Tucson Water - Potable Pumping Plant Avra Valley D Zone Pressure Regulating Valves Clearwell Pressure Regulating Valve Stations Diamond Bell Ranch G-I Zone Booster Modification El Camino del Cerro Booster Upgrade Fireflow Booster Upgrades Hayden-Udall D-B Pressure Regulating Valve Houghton I-K Booster Upgrade, Phase II Hydroelectric Facilities I-1 Well and Booster Modifications Las Palomas B-C Booster Station Modifications $ -0- $ -0184.0 500.0 25.0 -096.0 -0236.0 295.5 F-23 -0- $ 244.0 -0-050.0 256.0 -0-0-0-0- -0- $ -0-0-025.0 1,600.0 -0-0-0-0- 150.0 $ -0-0-050.0 -0-0-0-0-0- $ 10,500.0 $ 10,500.0 $ 177.0 364.0 1,000.4 250.0 3,900.0 1,015.0 3,595.0 455.0 150.0 1,100.0 1,000.0 4,353.0 1,295.0 1,195.0 $ 19,849.4 100.0 $ 800.0 -0-025.0 -0-0350.0 -0-0- 250.0 1,044.0 184.0 500.0 175.0 1,856.0 96.0 350.0 236.0 295.5 Five-Year Capital Improvement Program Utility Services-Tucson Water ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Tucson Water - Potable Pumping Plant (Continued) -0- $ -0- $ Mark Road Booster Station Modifications $ 425.0 $ Pumping Facility Modifications 300.0 300.0 300.0 -0-0Sandario B-D Zone Booster Station Upgrade 250.0 -0-0Sierrita/Cherokee Booster Improvement 300.0 -0-0W-2 Well and Booster Modifications 92.0 -0-0Z-Y Zone Pressure Regulating Valves 15.0 Sub-Total $ 2,168.5 $ 1,400.0 $ 1,925.0 $ Tucson Water - Potable Transmission A-60 Discharge Transmission Main $ 115.0 $ -0Alvernon Way/Valencia C Zone Transmission Main Avra Valley Blending Transmission Main 25.0 Avra Valley Transmission Main Augmentation 240.0 Cathodic Protection for Critical Pipelines 600.0 -0Country Club/36th St D Zone Transmission Main Lee Street Transmission Main 320.0 Pipeline Protection: Manhole Upgrades 220.0 Rehabilitation of Critical Transmission Mains 260.0 Santa Rita Bel Air G Zone Transmission Main 150.0 Santa Rita Bel Air Transmission Main (Well H-2) 1,748.0 Santa Rita Bel Air Transmission Main (Well H-3) 770.0 South Avra Valley Raw Water Delivery Pipeline 7,400.0 -0South Avra Valley Recovered Transmission Main -0Southeast C Zone Transmission Main -0Southeast E Zone Transmission Main -0Southside A Zone Transmission Main Southwest C Zone Transmission Main 60.0 Upgrade Corrosion Test Stations 50.0 Viviana Road C Zone Transmission Main 10.0 Well AV-26 Discharge Transmission Main 215.0 -0Westside C Zone Transmission Main Sub-Total $ 12,183.0 $ F-24 Five Year Total Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 -0- $ -0- $ 300.0 300.0 -0-0-0-0-0-0-0-0500.0 $ 1,575.0 $ -0- $ -0- $ -0- $ -0-0-0-01,500.0 4,650.0 602.0 450.0 14,331.0 -0-0600.0 -0-0-0-0-0-0230.0 240.0 250.0 270.0 280.0 290.0 -0-0-0-0-0-0-0-0-0-0-02,800.0 -08.0 32.0 -0-0400.0 -0-0-0-0-0300.0 -0-0-050.0 50.0 50.0 -01,000.0 1,950.0 -0-0-0-050.0 500.0 7,102.0 $ 7,628.0 $ 16,153.0 $ -0500.0 -011,337.0 -0800.0 -0260.0 300.0 -0-0-0-0623.0 1,157.0 5.0 2,265.0 -050.0 -0-0-017,297.0 $ 425.0 1,500.0 250.0 300.0 92.0 15.0 7,568.5 115.0 500.0 6,175.0 26,960.0 1,200.0 800.0 320.0 1,200.0 1,400.0 150.0 1,748.0 770.0 10,200.0 663.0 1,557.0 5.0 2,565.0 60.0 250.0 2,960.0 215.0 550.0 $ 60,363.0 Five-Year Capital Improvement Program Utility Services-Tucson Water ($000) Adopted Year 1 FY 2007 Project Name Approved Year 2 FY 2008 Tucson Water - Potable Distribution Chip Seal Main Replacements $ 25.0 $ 25.0 $ 25.0 $ 25.0 $ 25.0 -0-0-0Distribution Main Projects - General 500.0 500.0 Emergency Main Replacement 300.0 300.0 200.0 200.0 200.0 Extensions for New Services 10.0 10.0 10.0 10.0 10.0 -0-0-0-0Gates Pass Main Improvement 400.0 -0-0-0-0Genematas Main Improvement 400.0 -0-0-0Jefferson Park Main Replacement, Phase I 50.0 1,563.0 -0-0-0Jefferson Park Main Replacement, Phase II 50.0 1,420.0 Mapping As-Builts 180.0 180.0 180.0 180.0 180.0 -0-0-0-0Nebraska and Liberty Main Replacement 693.0 On-Call Valve Replacement Program 200.0 200.0 200.0 200.0 200.0 Payments to Developers for Oversized Systems 200.0 200.0 200.0 200.0 200.0 -0-0-0-0Quadrant Main Replacements 282.0 -0-0-0-0Redington Road Main Improvements 200.0 Review Developer-Financed Potable Projects 850.0 850.0 850.0 850.0 850.0 Road Improvement Main Replacements 4,600.0 4,100.0 6,368.0 6,446.0 6,525.0 Routine Main Replacements 1,197.0 800.0 800.0 800.0 800.0 -0-0-0South Avra Valley Storage and Recovery Project 500.0 500.0 Collector Lines -0-0-0-0Silver Shadows Estates Main Replacement 516.0 -0-0-0Southwest G Zone Interconnections 180.0 700.0 -0-0-0-0Taylor Lane System Improvements 922.0 -0-0-0Tucson International Airport Distribution Main 50.0 300.0 -0-0-0-0Vista Las Catalinas Main Replacement 244.0 Sub-Total $ 9,947.0 $ 9,200.0 $ 10,803.0 $ 10,391.0 $ 10,590.0 Tucson Water - Potable New Services Fire Services Water Services $ 1,500.0 $ 1,500.0 $ 1,500.0 $ 1,500.0 $ 1,500.0 1,210.0 1,210.0 1,210.0 1,210.0 1,210.0 Sub-Total $ 2,710.0 $ 2,710.0 $ 2,710.0 $ 2,710.0 $ 2,710.0 Tucson Water - Potable General Plant Central Avra Valley Storage and Recovery Project Facility Security Eastside Maintenance Facility Facility Safety and Security Improvements Facility Security Grant Geographic Information System La Entrada Improvements La Entrada Structure Remedy Meter Upgrade and Replacement Program Miscellaneous Land and Right-of-Way Acquisitions $ 564.0 $ 226.0 607.0 250.0 100.0 500.0 270.0 1,460.0 10.0 F-25 413.0 $ 4,600.0 567.0 -0-0-0-01,460.0 10.0 Five Year Total Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 620.0 $ -0567.0 -0-0-0-01,460.0 10.0 613.0 $ 208.0 -0535.0 -0-0-0-0600.0 10.0 -0559.0 -0-0-0-0600.0 10.0 $ 125.0 1,000.0 1,200.0 50.0 400.0 400.0 1,613.0 1,470.0 900.0 693.0 1,000.0 1,000.0 282.0 200.0 4,250.0 28,039.0 4,397.0 1,000.0 516.0 880.0 922.0 350.0 244.0 $ 50,931.0 $ 7,500.0 6,050.0 $ 13,550.0 $ 2,418.0 4,826.0 2,835.0 250.0 100.0 500.0 270.0 5,580.0 50.0 Five-Year Capital Improvement Program Utility Services-Tucson Water ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Five Year Total Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Tucson Water - Potable General Plant (Continued) -0- $ -0- $ -0- $ Supervisory Control and Data Acquisition (SCADA) $ 150.0 $ 150.0 $ 300.0 Communications Upgrade -0-0-0-0SCADA System Improvements 450.0 450.0 -0-0-0Tucson Water Document Management 750.0 750.0 1,500.0 Sub-Total $ 5,337.0 $ 7,950.0 $ 2,657.0 $ 1,758.0 $ 1,377.0 $ 19,079.0 Tucson Water - Potable Treatment Hayden-Udall Improvements, Phase II Treatment Improvements - General $ Sub-Total $ Tucson Water - Potable Process Control Control Panel Replacements Flow Meters Remote Site Control System Upgrades $ Sub-Total $ Tucson Water - Capitalized Expense Capitalized Expense -0- $ 500.0 500.0 $ -0- $ 500.0 500.0 $ -0- $ 500.0 500.0 $ 268.0 $ 250.0 $ 250.0 $ 250.0 $ -0-0-0140.0 400.0 800.0 1,600.0 3,200.0 808.0 $ 1,050.0 $ 1,850.0 $ 3,450.0 $ -0- $ 500.0 500.0 $ 868.0 2,000.0 2,868.0 -0-0-0-0- 1,018.0 140.0 6,000.0 7,158.0 $ 5,000.0 $ 5,000.0 $ 5,000.0 $ 5,000.0 $ 5,000.0 Sub-Total $ 5,000.0 $ 5,000.0 $ 5,000.0 $ 5,000.0 $ 5,000.0 Tucson Water - Reclaimed Source Development $ Ina Road Reclaimed Water Facility Reclaimed Storage and Recovery Sub-Total $ Tucson Water - Reclaimed Storage Ina Road Reservoir La Paloma Reservoir Expansion Reclaimed Storage Projects - General Roger Road Reservoir Expansion Sunrise Reclaimed Reservoir 868.0 $ -0868.0 $ $ Sub-Total $ Tucson Water - Reclaimed Pumping Plant Forty-Niners Control Valve $ Ina Road Booster Reclaimed Pressure Reducing Valves Reclaimed Pumping Facility Modifications Reclaimed Pumping Plant Projects - General Roger Road Plant Booster Expansion Sub-Total $ -0- $ 888.5 888.5 $ -0- $ 750.0 750.0 $ -0- $ -030.0 -093.1 123.1 $ 420.0 $ 840.0 $ 840.0 $ 300.0 1,395.0 1,395.0 30.0 30.0 100.0 -0-0-0-0-0-0750.0 $ 2,265.0 $ 2,335.0 $ $ $ 25,000.0 $ 25,000.0 -0- $ 1,800.0 $ 3,400.0 $ -0-0500.0 500.0 $ 1,800.0 $ 3,400.0 $ -0- $ -0- $ 45.0 $ -0440.0 880.0 60.0 10.0 10.0 10.0 10.0 10.0 55.0 55.0 55.0 600.0 1,000.0 600.0 770.0 $ 1,515.0 $ 1,555.0 $ F-26 $ -0- $ 880.0 10.0 10.0 55.0 -0955.0 $ -0-0100.0 300.0 -0400.0 $ 5,200.0 2,138.5 7,338.5 $ 2,100.0 3,090.0 290.0 300.0 93.1 5,873.1 -0- $ -010.0 10.0 55.0 -075.0 $ 45.0 2,200.0 100.0 50.0 275.0 2,200.0 4,870.0 Five-Year Capital Improvement Program Utility Services-Tucson Water ($000) Project Name Adopted Year 1 FY 2007 Tucson Water - Reclaimed Transmission $ Alvernon/La Paloma Reclaimed Transmission Main Reclaimed Emergency Main Enhancements Reclaimed Transmission Main Projects - General Sub-Total $ Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 -0- $ 720.0 $ 720.0 $ 100.0 100.0 100.0 -0500.0 380.0 100.0 $ 1,320.0 $ 1,200.0 $ Tucson Water - Reclaimed Distribution Developer-Financed Reclaimed Systems $ 60.0 $ Forty-Niner's Reclaimed Laterals 842.0 Main Extensions: Miscellaneous 55.0 Rose Elementary Reclaimed Lateral 260.0 -0Seneca/Palo Verde Reclaimed Distribution Main System Enhancements: Reclaimed 100.0 Sub-Total $ 1,317.0 $ Five Year Total -0- $ 100.0 500.0 600.0 $ -0- $ 100.0 500.0 600.0 $ 1,440.0 500.0 1,880.0 3,820.0 60.0 $ -055.0 -0-0100.0 215.0 $ 60.0 $ -055.0 -0-0100.0 215.0 $ 60.0 $ -055.0 -0170.0 100.0 385.0 $ 60.0 $ -055.0 -0340.0 100.0 555.0 $ 300.0 842.0 275.0 260.0 510.0 500.0 2,687.0 50.0 $ 50.0 $ 50.0 $ 50.0 $ 50.0 $ 50.0 $ 50.0 $ 50.0 $ 50.0 $ 50.0 $ 250.0 250.0 Tucson Water - Reclaimed Treatment Roger Road Reclaimed Water Treatment Plant $ 941.4 $ Roger Road Treatment Plant Clarifier Additions 1,386.0 Sub-Total $ 2,327.4 $ -0- $ -0-0- $ -0- $ -0-0- $ -0- $ -0-0- $ -0- $ -0-0- $ 941.4 1,386.0 2,327.4 Tucson Water - Reclaimed New Services New Metered Services $ Sub-Total $ Tucson Water - Reclaimed Process Control -0- $ -0- $ -0- $ -0- $ 18th Street Crossover Flow Meter $ 30.0 $ 30.0 Control Panels: Reclaimed System 107.0 80.0 250.0 250.0 250.0 937.0 Sub-Total $ 137.0 $ 80.0 $ 250.0 $ 250.0 $ 250.0 $ 967.0 Department Total $ 60,333.9 $ 50,274.0 $ 43,145.0 $ 52,898.0 $ 53,272.0 $ 259,922.9 F-27 Five-Year Capital Improvement Program Utility Services-Tucson Water ($000) Project Name Adopted Year 1 FY 2007 Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Five Year Total Source of Funds Summary -0- $ 115,304.9 2005 Water Revenue Bond Funds $ 29,900.9 $ 32,030.0 $ 23,224.0 $ 30,150.0 $ Central Arizona Project Reserve Fund 10.0 10.0 10.0 10.0 10.0 50.0 -0-0-0Future Water Revenue Bonds 1,537.0 28,722.0 30,259.0 -0-0-0-0Tucson Water Fund: Grants 700.0 700.0 Tucson Water Revenue and Operations Fund 22,723.0 18,234.0 16,911.0 21,201.0 24,540.0 103,609.0 -0-0-0Water Infrastructure Reserve Fund 7,000.0 3,000.0 10,000.0 Department Total $ 60,333.9 $ 50,274.0 $ 43,145.0 $ 52,898.0 $ 53,272.0 $ 259,922.9 F-28 Five-Year Capital Improvement Program Non-Departmental ($000) Project Name Adopted Year 1 FY 2007 Web-Based Financial and Human Resource Systems $ Department Total $ Approved Year 2 FY 2008 Projected Requirements Year 3 Year 4 Year 5 FY 2009 FY 2010 FY 2011 Five Year Total 1,159.6 $ 1,000.0 $ 1,000.0 1,159.6 $ 1,000.0 $ 1,000.0 $ $ -0- $ -0- $ -0- $ 3,159.6 -0- $ 3,159.6 -0- $ -01994 General Obligation Bond Funds - Interest $ 374.5 $ -0-0General Fund 785.1 -0General Fund: Restricted 1,000.0 1,000.0 Department Total $ 1,159.6 $ 1,000.0 $ 1,000.0 $ -0- $ -0-0-0- $ -0- $ 374.5 -0785.1 -02,000.0 -0- $ 3,159.6 Source of Funds Summary F-29 $ F-30 THIS BRIEF SUMMARY IS PROVIDED FOR INFORMATION PURPOSES. RIO NUEVO IS NOT PART OF THE CITY OF TUCSON BUDGET. OVERVIEW the end, success will be measured not by the amount of Rio Nuevo investments, but rather, by the amount of private sector investments resulting from it. Downtown is our region’s cultural center, it is the place of employment for thousands, and it is fast becoming a destination of choice for new residents and visitors alike. In 1999, Tucson and South Tucson voters approved the use of tax increment dollars to fund a variety of public projects expected to facilitate downtown revitalization. The city’s vision is to create a vibrant city center with diverse residential, entertainment, and commercial offerings. It is imperative that redevelopment express Tucson’s unique natural landscape, cultural heritage, and community values. Toward that end the Rio Nuevo Downtown Master Plan was adopted in 2001. As originally conceived, Tucson was to benefit from the Rio Nuevo tax increment district for a ten-year period which began in 2003. On a monthly basis, the Arizona Department of Revenue returns to Tucson a portion of sales taxes collected in the Rio Nuevo district. It is projected that over those ten years at least $125 million would be available to reinvest in the downtown. House Bill 2702 was introduced into the 2006 State Legislative Session to increase the revenue stream period. This extension for an additional 12 years of funding was approved in June 2006. The estimated gross revenue for 2003-2025 is approximately $800 million and will enable the Tucson community to achieve its downtown goals. Downtown is the heart of the city and its rebirth will be led by the private sector. The city’s role is to create and maintain a positive investment climate and to ensure a clear and predictable regulatory environment. Rio Nuevo is essentially a financial tool. Within this tax increment district the city will provide adequate infrastructure and upgrades, and facilitate the development of major public attractions. Rio Nuevo then becomes a catalyst for economic development. In More information about Rio Nuevo and downtown Tucson revitalization can be obtained by visiting the Rio Nuevo Web site at www.tucsonaz.gov/rionuevo. G-1 HIGHLIGHTS There is no single plan or project alone that is the lynchpin to revitalization of our downtown. Success depends upon strong partnerships and multifaceted strategic elements. We must learn to celebrate recent successes, no matter how large or small, because downtowns do not change overnight. But while there are many signs of future prosperity for the downtown, much work needs to be done. Our downtown partners and we must approach this work with urgency, because the economy and momentum can swing at any time. The community has charged the city and its partners with the enormous responsibility to change our downtown in fundamental ways. Our long-term goal is to make downtown a dynamic urban center. In doing so, we must build upon our unique local competitive advantages and honor our past. It’s been 24 months since the first tax increment district check arrived from the State of Arizona. Today there are over 1,200 units of housing planned or underway in the neighborhoods of downtown. This represents more than $250 million in new investments. The city is investing another $65 million in public improvement projects. For its part next year, the city must get public land along the banks of the Santa Cruz and in the civic plaza area around the Convention Center into the hands of the private sector for development. We must make improvements to the Ronstadt Transit Center that will free up valuable real estate for redevelopment and resolve public safety issues associated with the center. Through code enforcement or other means, we must remove blighting influences, particularly on Congress Street. We must continue with transportation and infrastructure improvements. Policy makers will be addressing the feasibility and funding of a new arena. We expect the community to resolve the Barraza Aviation Parkway extension question so that we may promote redevelopment in the Warehouse Arts District along Toole. Last year we saw the re-opening of the Fox Theater and the redevelopment of the Rialto Theater. The city was awarded a $9 million federal grant to partner with the private sector on redevelopment of the block adjacent to the Hotel Congress. Ground broke on the $100 million Mercado District mixed-use project. We received an independent housing market forecast that confirms a healthy future for the downtown. We opened the 1st of several new parking garages downtown to address current and future demand. We made strides with planning for the relocation of the state museum and historical society facilities to downtown. The changes to the Rio Nuevo District approved by the State Legislature have opened up new opportunities. More exciting projects are being developed and will be incorporated in future plans. We continue to deliver on cultural commitments, having completed site clearance work and funded early infrastructure phases of Tucson Origins Heritage Park on the westside. The $2 million Presidio interpretive center is under construction on the eastside. Puro Mexicano, an international film festival, premiered. Broadway in Tucson is enjoying another successful season. G-2 RIO NUEVO BUDGET Operating Budget Personal Services Professional Services Commodities/Equipment Total Operating Fiscal Year 2007 Fiscal Year 2008 $ $ 513,930 549,940 22,000 513,930 489,940 15,600 $ 1,085,870 $ 1,019,470 Capital Budget $ 40,500,000 $ 58,250,000 Debt Service $ 2,976,624 $ 7,839,525 $ 44,562,494 $67,108,995 Total Operating, Capital, and Debt Service G-3 G-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 benchmarking, 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. H-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 that 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 six 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. 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. H-2 GLOSSARY OF TERMS Term Definition 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 that 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. 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 2007, for the City of Tucson, refers to the period July 1, 2006 through June 30, 2007. H-3 GLOSSARY OF TERMS Term Definition 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 Transportation; Neighborhoods, Public Safety, and Emergency Preparedness; Children, Families, and Seniors; Environment, Planning, and Resource Management; Economic and Workforce Development; and Rio Nuevo/Downtown, Arts, Culture, and History [See Section B, “Strategic Priorities”]. 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. 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. H-4 GLOSSARY OF TERMS Term Definition 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 customers satisfied with park conditions. 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. 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. 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. H-5 GLOSSARY OF TERMS Term Definition 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. SUNSET CLAUSE A provision, inserted in a set of regulations, for the expiration of specified arrangements should certain conditions prevail or the initiative is not extended past the agreed upon time frame. 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. H-6 ACRONYMS AND INITIALISMS Acronym/Initialism Definitions ACC ACJ ADA ADEQ ADEQ LUST AFRS AFSCME ALS APDM ARS ATLAS AVBTM AZPDES Arizona Corporation Commission Apprentice, Craft, Journey Americans with Disabilities Act Arizona Department of Environmental Quality Arizona Department of Environmental Quality Leaking Underground Storage Tank Automated Field Reporting System American Federation of State, County, and Municipal Employees Advanced Life Support Alternative Procurement Delivery Method Arizona Revised Statutes Advanced Traffic and Logistics Algorithms and Software Avra Valley Blending Transmission Main Arizona Pollution Discharge Elimination System CAFR CALL CAP CAVSARP CAWCD CDBG CEEO CIFP CIP CNG COBRA COP CPI CRRF CWA CWAC Comprehensive Annual Financial Report Commission on Accreditation for Law Enforcement Agencies Central Arizona Project Central Avra Valley Storage and Recovery Project Central Arizona Water Conservation District Community Development Block Grant Certificates of Equal Employment Opportunity Capital Improvement Funded Program Capital Improvement Program Compressed Natural Gas Consolidated Omnibus Budget Reconciliation Act of 1985 Certificates of Participation Consumer Price Index Clearwater Renewable Resource Facility Communications Workers of America Citizens’ Water Advisory Committee DNR DOT DSD DUI Department of Neighborhood Resources Department of Transportation Development Services Department Driving Under the Influence EOP and IPR EPA ER Equal Opportunity Programs and Independent Police Auditor Environmental Protection Agency Emergency Room FARE FSS FTA FY Fines, Fees, and Restitution Family Self-Sufficiency Federal Transit Administration Fiscal Year GAPIT GIS GREAT Graffiti Abatement Program in Tucson Geographic Information Systems Gang Resistance Education and Training H-7 ACRONYMS AND INITIALISMS Acronym/Initialism Definitions HAMP HAZMAT HELP HMO HOPE HRC HUD HURF HVAC Houghton Area Master Plan Hazardous Materials Highway Expansion and Extension Loan Program Health Maintenance Organization Housing Opportunities for People Everywhere Housing Rehabilitation Collaborative Housing and Urban Development Highway User Revenue Fund Heating, Ventilation, and Cooling Equipment ICMA IGA ILU I-NET IT International City/County Management Association Intergovernmental Agreement Internal Litigation Unit Institutional Network Information Technology LAN LED LEED LTAF Local Area Network Light Emitting Diode Leadership in Energy and Environmental Design Local Transportation Assistance Fund MDP MLK MS&RP Monitored Diversion Program Martin Luther King Major Streets and Routes Plan NPPO NPT Natural Plant Preservation Ordinance Neighborhood Prosecution Team OSHA O&M Occupational Safety and Health Administration Operating and Maintenance PAG PC pCard PCCP PCD PEG PPO PRO psi PVC Pima Association of Governments Personal Computer Procurement Card Prestressed Concrete Cylinder Pipe Planned Community Development Public, Educational, Government Operating Support Preferred Provider Organization Property Research Online pounds per square inch Polyvinyl Chloride RFP RHODES ROED RRT RTA Request for Proposals Real-time Hierarchical Optimized Distributed Effective System Research and Organizational Efficiency Division Rapid Response Team Regional Transportation Authority H-8 ACRONYMS AND INITIALISMS Acronym/Initialism Definitions SAVSARP SCDA SDHP SUSD SWAT South Avra Valley Storage and Recovery Project Supervisory Control and Data Acquisition Self-Directed Health Plan Sunnyside Unified School District Special Weapons and Tactics TACE TUSD TARP TCC TCG TDOT TEA-21 TEAM TFD TFFA TPAC TPD TREO TSRS TUSD TV Tucson Association of City Employees Tucson Unified School District Tucson Airport Remediation Project Tucson Convention Center Tucson City Golf Tucson Department of Transportation Transportation Equity Act for the Twenty-first Century Transportation Enterprise Area Management Tucson Fire Department Tucson Fire Fighters Association Tucson-Pima Arts Council Tucson Police Department Tucson Regional Economic Opportunities Tucson Supplemental Retirement System Tucson Unified School District Television VLT VoIP Vehicle License Tax Voice over Internet Protocol WAN WIFA Wide Area Network Water Infrastructure Finance Authority H-9 H-10 INDEX Acronyms and Initialisms................................................................................................................................................... Area and Population Growth Charts ............................................................................................................................... H-7 D-1 Budget Adoption Resolution No. 20350......................................................................................................................... Budget Calendar for Fiscal Years 2007 and 2008 .......................................................................................................... Budget Overview................................................................................................................................................................. C-9 iii A-6 Capital Budget Summary.................................................................................................................................................... Capital Projects Funds........................................................................................................................................................ City Manager’s Message, City of Tucson Adopted Fiscal Years 2007 and 2008 Biennial Budget ........................ City of Tucson Organization Chart Fiscal Year 2007 ................................................................................................... City of Tucson Officials and Directors ........................................................................................................................... City of Tucson’s Share of Residential Property Owner Tax Valuation Fiscal Year 2006 Property Taxes........... City of Tucson Property Tax Summary........................................................................................................................... City Strategic Priorities and Financial Sustainability...................................................................................................... Community Profile.............................................................................................................................................................. Comparison of General Purpose Revenues to Total Revenues .................................................................................. Components of the Total Financial Plan Fiscal Year 2007.......................................................................................... F-1 E-38 A-1 i ii C-8 C-7 B-1 D-4 E-11 E-1 Debt Service Funds............................................................................................................................................................. Department Projects Five-Year Capital Improvement Program ....................................................................... Distinguished Budget Presentation Award ............................................................................................................ E-36 F-9 viii Enterprise Funds ................................................................................................................................................................. Explanation of City Funds................................................................................................................................................. Expenditures Fiscal Year 2007 Adopted Summary and Pie Chart ............................................................................. Expenditures Fiscal Year 2008 Approved Summary and Pie Chart........................................................................... E-33 E-9 E-3 E-5 Financial Policies and Practices......................................................................................................................................... Financial Sustainability ....................................................................................................................................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Elected and Mayor/Council Appointed Officials (Unclassified) ................................................................................................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Exempt Schedule .................................................................. Fiscal Year 2007 City of Tucson Annual Salary Scale Fire (Exempt) ........................................................................ Fiscal Year 2007 City of Tucson Annual Salary Scale Fire (Non-Exempt)............................................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Golf (Exempt) ....................................................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Hourly Non-Permanent Classifications Schedule (Non-Exempt) ................................................................................................................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Information Technology (Exempt) ................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Legal (Exempt) ...................................................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Non-Exempt Schedule......................................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Police (Exempt)..................................................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Police (Non-Exempt) ........................................................... Five-Year Capital Budget Summary by Department Table I....................................................................................... Five-Year Capital Budget Summary by Funding Source Table II............................................................................... C-4 B-1 I-1 E-57 E-58 E-59 E-64 E-62 E-65 E-60 E-61 E-63 E-59 E-64 F-5 F-6 INDEX Five-Year Capital Budget Summary of CIP Impact on the Operating Budget Table III ....................................... Frequently Asked Questions ............................................................................................................................................. Full-Time Equivalent Positions General Purpose Funds and Other Funds Fiscal Years 2007 and 2008................................................................................................................................ F-8 vi General Fund ....................................................................................................................................................................... Glossary of Terms............................................................................................................................................................... E-19 H-1 How to Use This Budget ................................................................................................................................................... iv Index...................................................................................................................................................................................... I-1 Legal Requirements............................................................................................................................................................. C-1 Number of City Employees per 1,000 Population Chart ............................................................................................. D-2 Officials and Directors ....................................................................................................................................................... Organization Chart Fiscal Year 2007............................................................................................................................... ii i Property Tax Summary....................................................................................................................................................... C-7 Residential Property Owner Tax Valuation Fiscal Year 2006 Property Tax............................................................. 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-Adopted Fiscal Years 2007 and 2008 Biennial Budget............................ Revenues and Expenditures Summary Fiscal Year 2007 by Operating and Capital ....................................... Revenues and Expenditures Summary Fiscal Year 2008 by Operating and Capital ....................................... Revenues Fiscal Year 2007 Adopted Sources and Pie Chart....................................................................................... Revenues Fiscal Year 2008 Approved Sources and Pie Chart.................................................................................... Rio Nuevo Project............................................................................................................................................................... C-8 E-40 E-17 E-8 E-15 E-16 E-12 E-13 E-14 E-2 E-4 G-1 Selected Economic Indicators-Tucson Metro Area ...................................................................................................... Special Revenue Funds....................................................................................................................................................... Statement Required by Arizona Revised Statutes 42-17102 ........................................................................................ Summary of Expenditures by Department............................................................................................................ Summary by Character of Expenditures ................................................................................................................ Summary of CIP Impact on the Operating Budget ...................................................................................................... D-3 E-26 C-6 E-6 E-7 F-4 Ten-Year Adopted City Staffing Comparison with Fiscal Years 2007 and 2008 ..................................................... E-53 I-2 E-55 INDEX Acronyms and Initialisms............................................................................................................................ Area and Population Growth Charts ........................................................................................................ Vol. I, H-7 Vol. I, D-1 Biennial Budget Calendar for Fiscal Year 2007....................................................................................... Budget Adoption Resolution No. 20350.................................................................................................. Budget and Research ................................................................................................................................... Budget and Research Financial Summary ................................................................................................ Budget and Research Position Resources by Classification .................................................................. Budget Overview.......................................................................................................................................... Vol. I, iii Vol. I, C-9 Vol. II, 7 Vol. IIa, B-2 Vol. IIa, A-3 Vol. I, A-6 Capital Budget Summary............................................................................................................................. Capital Projects Funds................................................................................................................................. City Attorney................................................................................................................................................. City Attorney Financial Summary.............................................................................................................. City Attorney Position Resources by Classification ............................................................................... City Clerk ....................................................................................................................................................... City Clerk Financial Summary.................................................................................................................... City Clerk Position Resources by Classification...................................................................................... City Court ...................................................................................................................................................... City Court Financial Summary .................................................................................................................. City Court Position Resources by Classification..................................................................................... City Manager ................................................................................................................................................. City Manager Financial Summary .............................................................................................................. City Manager Position Resources by Classification................................................................................ City Manager’s Message, City of Tucson Adopted Fiscal Years 2007 and 2008 Biennial Budget.................................................................................................................. City of Tucson Organization Chart Fiscal Year 2007 ............................................................................ City of Tucson Officials and Directors .................................................................................................... City of Tucson’s Share of Residential Property Owner Tax Valuation Fiscal Year 2006 Property Taxes ...................................................................................................... City of Tucson Property Tax Summary.................................................................................................... City Strategic Priorities and Financial Sustainability............................................................................... Community Profile....................................................................................................................................... Vol. I, F-1 Vol. I, E-38 Vol. II, 13 Vol. IIa, B-3 Vol. IIa, A-4 Vol. II, 23 Vol. IIa, B-4 Vol. IIa, A-6 Vol. II, 31 Vol. IIa, B-5 Vol. IIa, A-8 Vol. II, 39 Vol. IIa, B-6 Vol. IIa, A-10 I-1 Vol. I, A-1 Vol. I, i Vol. I, ii Vol. I, C-8 Vol. I, C-7 Vol. I, B-1 Vol. I, D-4 INDEX Community Services .................................................................................................................................... Community Services Capital....................................................................................................................... Community Services Financial Summary................................................................................................. Community Services Position Resources by Classification................................................................... Comparison of General Purpose Revenues to Total Revenues ........................................................... Components of the Total Financial Plan ................................................................................................. Convention Center....................................................................................................................................... Convention Center Financial Summary.................................................................................................... Convention Center Position Resources by Classification ..................................................................... Vol. II, 49 Vol. III, B-1 Vol. IIa, B-7 Vol. IIa, A-12 Vol. I, E-11 Vol. I, E-1 Vol. II, 61 Vol. IIa, B-9 Vol. IIa, A-18 Debt Management Policy............................................................................................................................ Debt Service .................................................................................................................................................. Debt Service Funds...................................................................................................................................... Department Projects Five-Year Capital Improvement Program ......................................................... Development Services ................................................................................................................................. Development Services Capital ................................................................................................................... Development Services Financial Summary.............................................................................................. Development Services Position Resources by Classification................................................................ Distinguished Budget Presentation Award .............................................................................................. Vol. II, 277 Vol. II, 276 Vol. I, E-36 Vol. I, F-9 Vol. II, 69 Vol. III, B-7 Vol. IIa, B-10 Vol. IIa, A-20 Vol. I, viii Enterprise Funds .......................................................................................................................................... Environmental Service ................................................................................................................................ Environmental Service Capital................................................................................................................... Environmental Service Financial Summary ............................................................................................. Environmental Service Position Resources by Classification............................................................... Equal Opportunity Programs and Independent Police Review ...................................................... Equal Opportunity Programs and Independent Police Review Financial Summary................... Equal Opportunity Programs and Independent Police Review Position Resources by Classification ............................................................................................... Expenditures Fiscal Year 2007 Adopted Summary and Pie Chart ...................................................... Expenditures Fiscal Year 2008 Approved Summary and Pie Chart.................................................... Explanation of City Funds.......................................................................................................................... Vol. I, E-33 Vol. II, 81 Vol. III, B-11 Vol. IIa, B-11 Vol. IIa, A-24 Vol. II, 93 Vol. IIa, B-13 I-2 Vol. IIa, A-28 Vol. I, E-3 Vol. I, E-5 Vol. I, E-9 INDEX Finance ........................................................................................................................................................... Finance Financial Summary........................................................................................................................ Finance Position Resources by Classification.......................................................................................... Financial Policies and Practices.................................................................................................................. Financial Sustainability ................................................................................................................................ Fire .................................................................................................................................................................. Fire Capital .................................................................................................................................................... Fire Financial Summary............................................................................................................................... Fire Position Resources by Classification................................................................................................. Fiscal Year 2007 City of Tucson Annual Salary Scale Exempt ........................................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Fire (Exempt) ................................................ Fiscal Year 2007 City of Tucson Annual Salary Scale Fire (Non-Exempt) ....................................... Fiscal Year 2007 City of Tucson Annual Salary Scale Golf and Ranch (Exempt) ........................... Fiscal Year 2007 City of Tucson Annual Salary Scale Hourly (Non-Permanent) Schedule (Non-Exempt) ............................................................................................................................. Fiscal Year 2007 City of Tucson Annual Salary Scale Information Technology (Exempt) ........... Fiscal Year 2007 City of Tucson Annual Salary Scale Legal (Exempt) .............................................. Fiscal Year 2007 City of Tucson Annual Salary Scale Non-Exempt Schedule.................................. Fiscal Year 2007 City of Tucson Annual Salary Scale Police (Exempt) ............................................. Fiscal Year 2007 City of Tucson Annual Salary Scale Police (Non-Exempt) ................................... Five-Year Capital Budget Summary by Department Table I................................................................ ...................................................................................................................................................... Five-Year Capital Budget Summary by Funding Source Table II........................................................ ...................................................................................................................................................... Five-Year Capital Budget Summary CIP Impact on the Operating Budget Table III.................... ...................................................................................................................................................... Five-Year Capital Projects with Pima County Funding Table IV........................................................ Frequently Asked Questions ...................................................................................................................... Full-Time Equivalent Positions General Purpose Funds and Other Funds Fiscal Years 2007 and 2008 ............................................................................................................... I-3 Vol. II, 99 Vol. IIa, B-14 Vol. IIa, A-29 Vol. I, C-4 Vol. I, B-1 Vol. II, 113 Vol. III, B-39 Vol. IIa, B-15 Vol. IIa, A-33 Vol. I, E-58 Vol. I, E-59 Vol. I, E-64 Vol. I, E-62 Vol. I, E-65 Vol. I, E-50 Vol. I, E-61 Vol. I, E-63 Vol. I, E-59 Vol. I, E-64 Vol. I, F-5 & Vol. III, A-11 Vol. I, F-6 & Vol. III, A-12 Vol. I, F-8 & Vol. III, A-15 Vol. III , A-16 Vol. I, vi Vol. I, E-55 INDEX General Expense .......................................................................................................................................... General Fund ................................................................................................................................................ General Services ........................................................................................................................................... General Services Financial Summary ........................................................................................................ General Services Position Resources by Classification.......................................................................... Glossary of Terms........................................................................................................................................ Golf................................................................................................................................................................. Golf Financial Summary ............................................................................................................................. Golf Position Resources by Classification ............................................................................................... Vol. II, 275 Vol. I, E-19 Vol. II, 127 Vol. IIa, B-16 Vol. IIa, A-37 Vol. I, H-1 Vol. II, 139 Vol. IIa, B-18 Vol. IIa, A-42 How to Use This Budget ............................................................................................................................ Human Resources ........................................................................................................................................ Human Resources Financial Summary ..................................................................................................... Human Resources Position Resources by Classification....................................................................... Vol. I, iv Vol. II, 147 Vol. IIa, B-19 Vol. IIa, A-45 Index............................................................................................................................................................... Information Technology ............................................................................................................................. Information Technology Financial Summary.......................................................................................... Information Technology Position Resources by Classification............................................................ Intergovernmental Relations ...................................................................................................................... Intergovernmental Relations Financial Summary ................................................................................... Intergovernmental Relations Position Resources by Classification..................................................... Vol. I, I-1 Vol. II, 155 Vol. IIa, B-20 Vol. IIa, A-46 Vol. II, 167 Vol. IIa, B-21 Vol. IIa, A-49 Legal Requirements...................................................................................................................................... Vol. I, C-1 Mayor and Council....................................................................................................................................... Mayor and Council Financial Summary.................................................................................................... Mayor and Council Position Resources by Classification ..................................................................... Vol. II, 1 Vol. IIa, B-1 Vol. IIa, A-1 Neighborhood Resources ........................................................................................................................... Neighborhood Resources Financial Summary ........................................................................................ Neighborhood Resources Position Resources by Classification.......................................................... Vol. II, 167 Vol. IIa, B-21 Vol. IIa, A-49 I-4 INDEX Non-Departmental....................................................................................................................................... Non-Departmental Capital ......................................................................................................................... Non-Departmental Financial Summary ................................................................................................... Non-Departmental Position Resources by Classification ..................................................................... Number of City Employees per 1,000 Population Chart ...................................................................... Vol. II, 271 Vol. III, B-277 Vol. IIa, B-38 Vol. IIa, A-97 Vol. I, D-2 Officials and Directors ................................................................................................................................ Organization Chart Fiscal Year 2007........................................................................................................ Outside Agencies ......................................................................................................................................... Overview of the Capital Improvement Program.................................................................................... Vol. I, ii Vol. I, i Vol. II, 273 Vol. III, A-1 Parks and Recreation ................................................................................................................................... Parks and Recreation Capital...................................................................................................................... Parks and Recreation Financial Summary ................................................................................................ Parks and Recreation Position Resources by Classification.................................................................. Police .............................................................................................................................................................. Police Capital................................................................................................................................................. Police Financial Summary........................................................................................................................... Police Position Resources by Classification............................................................................................. Procurement.................................................................................................................................................. Procurement Financial Summary............................................................................................................... Procurement Position Resources by Classification ................................................................................ Property Tax Summary................................................................................................................................ Public Defender............................................................................................................................................ Public Defender Financial Summary ........................................................................................................ Public Defender Position Resources by Classification .......................................................................... Vol. II, 175 Vol. III, B-59 Vol. IIa, B-22 Vol. IIa, A-51 Vol. II, 195 Vol. III, B-87 Vol. IIa, B-25 Vol. IIa, A-63 Vol. II, 209 Vol. IIa, B-28 Vol. IIa, A-74 Vol. I, C-7 Vol. II, 221 Vol. IIa, B-29 Vol. IIa, A-76 Residential Property Owner Tax Valuation Fiscal Year 2006 Property Tax...................................... 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..................................... Vol. I, C-8 Vol. I, E-40 Vol. I, E-17 Vol. I, E-8 Vol. I, E-15 Vol. I, E-16 I-5 INDEX Revenues and Expenditures Summary Adopted Fiscal Years 2007 and 2008 Biennial Budget.................................................................................................................. Revenues and Expenditures Summary Fiscal Year 2007 Operating and Capital .............................. Revenues and Expenditures Summary Fiscal Year 2008 Operating and Capital .............................. Revenues Fiscal Year 2007 Adopted Sources and Pie Chart................................................................ Revenues Fiscal Year 2008 Approved Sources and Pie Chart.............................................................. Rio Nuevo Project........................................................................................................................................ Vol. I, E-12 Vol. I, E-13 Vol. I, E-14 Vol. I, E-2 Vol. I, E-4 Vol. I, G-1 Selected Economic Indicators-Tucson Metro Area ............................................................................... Special Revenue Funds................................................................................................................................ Statement Required by Arizona Revised Statutes 42-17102 ................................................................. Summary by Character of Expenditures .................................................................................................. Summary of Expenditures by Department.............................................................................................. Summary if CIP Impact on the Operating Budget................................................................................. Vol. I, D-3 Vol. I, E-26 Vol. I, C-6 Vol. I, E-7 Vol. I, E-6 Vol. I, F-4 Ten-Year Adopted City Staffing Comparison with Fiscal Years 2007 and 2008 .............................. Transportation .............................................................................................................................................. Transportation Capital................................................................................................................................ Transportation Financial Summary ........................................................................................................... Transportation Position Resources by Classification............................................................................. Vol. I, E-53 Vol. II, 225 Vol. III, B-95 Vol. IIa, B-30 Vol. IIa, A-77 Urban Planning and Design ..................................................................................................................... Urban Planning and Design Financial Summary.................................................................................. Urban Planning and Design Position Resources by Classification.................................................... Vol. II, 241 Vol. IIa, B-34 Vol. IIa, A-85 Water .............................................................................................................................................................. Water Capital................................................................................................................................................. Water Financial Summary ........................................................................................................................... Water Position Resources by Classification............................................................................................. Vol. II, 253 Vol. III, B-153 Vol. IIa, B-35 Vol. IIa, A-87 I-6 City of Tucson