City of Tucson Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget Volume I CITY OF TUCSON Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget Presented July 1, 2007 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 2008 ....................................................................................... City of Tucson Officials and Directors ............................................................................................................... Biennial Budget Calendar for Fiscal Year 2008 Update.................................................................................... How to Use This Budget ....................................................................................................................................... Distinguished Budget Presentation Award ......................................................................................................... i ii iii iv v SECTION A CITY MANAGER'S MESSAGE City Manager’s Message, City of Tucson Adopted Update Budget for Fiscal Year 2008 ........................... Budget Overview .................................................................................................................................................... A-1 A-4 SECTION B ADOPTED CHANGES Revenue Adjustments to the Fiscal Year 2008 Budget..................................................................................... Expenditure Adjustments to the Fiscal Year 2008 Budget .............................................................................. Mayor and Council.................................................................................................................................................. Budget and Research .............................................................................................................................................. City Attorney ........................................................................................................................................................... City Clerk ................................................................................................................................................................. City Court................................................................................................................................................................. City Manager............................................................................................................................................................ Community Services............................................................................................................................................... Development Services............................................................................................................................................ Environmental Services ......................................................................................................................................... Equal Opportunity Programs and Independent Police Review ...................................................................... Finance...................................................................................................................................................................... Fire ............................................................................................................................................................................ General Services ...................................................................................................................................................... Golf ........................................................................................................................................................................... Human Resources................................................................................................................................................... Information Technology........................................................................................................................................ Neighborhood Resources ...................................................................................................................................... Parks and Recreation .............................................................................................................................................. Police......................................................................................................................................................................... Procurement ............................................................................................................................................................ Public Defender ...................................................................................................................................................... B-1 B-3 B-5 B-6 B-7 B-8 B-9 B-10 B-11 B-12 B-13 B-15 B-16 B-17 B-18 B-19 B-20 B-21 B-22 B-23 B-24 B-25 B-26 TABLE OF CONTENTS SECTION B ADOPTED CHANGES (Continued) Transportation......................................................................................................................................................... Tucson Convention Center ................................................................................................................................... Tucson Water .......................................................................................................................................................... Urban Planning and Design .................................................................................................................................. Non-Departmental ................................................................................................................................................. Position Changes to the Fiscal Year 2008 Budget ............................................................................................. B-27 B-29 B-30 B-32 B-33 B-35 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 Residential Property Owner Tax Valuation Fiscal Year 2007 Property Taxes ................................................................................................................ Budget Adoption Resolution No. 20686............................................................................................................. C-1 C-2 C-4 C-6 C-7 C-8 C-9 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 TABLE OF CONTENTS SECTION E SUMMARY INFORMATION Components of the Total Financial Plan ............................................................................................................ Revenues Fiscal Year 2008 Adopted Sources and Pie Chart ........................................................................... Expenditures Fiscal Year 2008 Adopted Summary and Pie Chart ................................................................. Summary of Expenditures by Department......................................................................................................... Summary by Character of Expenditures ............................................................................................................. Revenues and Expenditures Comparisons ......................................................................................................... Explanation of City Funds .................................................................................................................................... Use of General Purpose Funds Compared to Total Funds ............................................................................. 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 ................................................................................................................................................ Internal 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 .......................................................................................................................... City of Tucson Annual Salary Scale – Elected and Mayor/Council Appointed Officials........................... City of Tucson Annual Salary Scale – Exempt ................................................................................................. City of Tucson Annual Salary Scale Police – Exempt ..................................................................................... City of Tucson Annual Salary Scale Fire – Exempt ......................................................................................... City of Tucson Annual Salary Scale Information Technology – Exempt...................................................... City of Tucson Annual Salary Scale Legal – Exempt ....................................................................................... City of Tucson Annual Salary Scale Golf – Exempt ........................................................................................ City of Tucson Annual Salary Scale – Non-Exempt......................................................................................... City of Tucson Annual Salary Scale Police – Non-Exempt ............................................................................ City of Tucson Annual Salary Scale Fire – Non-Exempt ................................................................................ City of Tucson Annual Salary Scale Hourly Non-Permanent Classifications and Schedule – Non-Exempt....................................................................................................................... E-1 E-2 E-3 E-4 E-5 E-6 E-7 E-9 E-10 E-11 E-12 E-13 E-15 E-22 E-29 E-32 E-34 E-36 E-38 E-51 E-53 E-55 E-55 E-56 E-56 E-56 E-57 E-57 E-58 E-59 E-59 E-60 TABLE OF CONTENTS SECTION F CAPITAL BUDGET SUMMARY Capital Budget Summary ....................................................................................................................................... Capital Budget Summary by Department – Table I .......................................................................................... Capital Budget Summary by Funding Source – Table II.................................................................................. Capital Budget Summary of Operating Budget Impacts – Table III.............................................................. Five-Year Capital Improvement Program, Department Projects ................................................................... F-1 F-4 F-5 F-7 F-8 SECTION G STRATEGIC PRIORITIES City Strategic Priorities and Financial Sustainability.......................................................................................... 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 2008 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 Environmental Services General Services Transportation Human Resources Tucson Water Fire Urban Planning & Design Neighborhood Resources Information Technology Procurement Community Services Equal Opportunity Programs & Independent Police Review Parks & Recreation* Police Public Defender *Includes Tucson City Golf CITY OF TUCSON OFFICIALS AND DIRECTORS OFFICIALS STRATEGIC INITIATIVES City Manager, Mike Hein Tucson Convention Center, Richard Singer Deputy City Manager, Michael D. Letcher SUPPORT SERVICES Assistant City Manager, Liz Rodriguez Miller Budget and Research, James Cameron, Acting Assistant City Manager, Karen Masbruch Finance, James Cameron City Attorney, Mike Rankin General Services, Ronald Lewis City Clerk, Kathleen S. Detrick Human Resources, Cindy Bezaury NEIGHBORHOOD SERVICES 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 Environmental Services, Andrew Quigley Transportation, James W. Glock Urban Planning and Design, Albert Elias Tucson Water, David Modeer ii BIENNIAL BUDGET CALENDAR FISCAL YEAR 2008 UPDATE Sequence of events in the budget-setting process. December 11 and 14, 2006 Budget kickoff. May 1, 2007 Submission of the City Manager’s Recommended Biennial Budget Update for Fiscal Year 2008, and Proposed Five-Year Capital Improvement Program Fiscal Years 2008 through 2012 to Mayor and Council. May 15, 2007 Public Hearing on Recommended Biennial Budget Update for Fiscal Year 2008. May 22, 2007 Mayor and Council Study Session for the purpose of discussing the Recommended Biennial Budget Update for Fiscal Year 2008 and Proposed Five-Year Capital Improvement Program, Fiscal Years 2008 through 2012. June 5, 2007 Tentative adoption of budget for Fiscal Year 2008. June 12, 2007 Truth in Taxation Hearing on primary property tax levy for Fiscal Year 2008. June 12, 2007 Public Hearing on the Biennial Budget Update for Fiscal Year 2008 as tentatively adopted. June 12, 2007 Special Mayor and Council meeting for the purpose of final budget adoption. June 26, 2007 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 Biennial Budget Adopted Update for Fiscal Year 2008. Copies of the budget are available at all branches of the TucsonPima Public Library, the University of Arizona Main Library, Pima Community College branch libraries, the City Clerk’s Office, and the Department of Budget and Research. In addition, the budget may be viewed on the City of Tucson Web site, http://www.tucsonaz.gov. Information may be obtained by calling the Department of Budget and Research at (520) 791-4551 or e-mailing the department at budget&rsearch@tucsonaz.gov. Summary Information - Schedules contained in this section provide summary level information on the consolidated (operating and capital) city budget. Expenditure and revenue information, descriptions of funds, debt service information, staffing histories, and pay scales are summarized. This section is particularly helpful if the reader is interested in an overview of the city budget. Capital Budget Summary - This section provides a summary of the first year, Fiscal Year 2008, of the Five-Year Capital Improvement Program. City Strategic Plan - This section summarizes the strategic plan for the city including the process followed to identify the city’s focus areas. For Fiscal Year 2008 only one volume is used to present the adopted changes to the second year of the biennial budget. This document may be used with the adopted biennial budget document for Fiscal Years 2007 and 2008. The adopted update is organized as follows. Glossary - The glossary defines terms and acronyms used in the budget. Index - The index provides an alphabetical listing of the contents of the budget. City Manager’s Message/Overview - This section includes the letter from the city manager transmitting the biennial budget update to the Mayor and Council and an overview of the budget. In the transmittal letter, the city manager highlights the key policy issues and programs in the biennial budget. The overview includes the following: • Where the Money Goes • Staffing • Where the Money Comes From • Citizen Impacts • Expenditure Limitation A separate document containing the capital budget detail is also available. The Approved Five-Year Capital Improvement Program (CIP), Fiscal Years 2008 - 2012 includes an overview and department programs. Recommendations - This section summarizes the changes from the approved Fiscal Year 2008 budget to the adopted budget for both revenues and expenditures. Major changes are highlighted for each department. Legal Authorization - State and local legal provisions are presented, including the process for budget adoption and setting the property tax, public hearings, and a property tax summary. Community Statistical Profile - This section of the summary provides the reader with demographic information on Tucson. iv 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, 2006 through June 30, 2008. 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. v vi City of Tucson Section A City Manager’s Message Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget CITY OF TUCSON OFFICE OF THE CITY MANAGER July 1, 2007 Honorable Mayor and Council Members: It is with pleasure that I transmit to you the Adopted Update Budget for Fiscal Year 2008. This is the second year of the Fiscal Years 2007 and 2008 Biennial Budget approved by the Mayor and Council in June 2006. Fiscal Year 2008 continues the Financial Sustainability Plan begun in Fiscal Year 2007. Also included is an update to the FiveYear Capital Improvement Program, which expands the use of Regional Transportation Authority (RTA) funding and the use of impact fees. Because this budget is an update to the biennial budget, it is limited in scope and focuses on the major changes. The total adopted budget is $1.26 billion for Fiscal Year 2008 compared to the Fiscal Year 2007 budget of $1.1 billion. Recent Government Accounting Standards and the state’s Auditor General require that the city budget include capacity that was not required in previous budgets. As a result, additional capacity of $113 million for bond funds, federal grants, contributions from other agencies, and project financing is included to ensure that the city will be able to move forward with programs and projects in public safety, transportation, and other priority areas. This also ensures that we can meet reporting requirements for internal transactions between city functions and fiduciary requirements such as the pension fund. Enterprise Funds increased $15 million primarily in support of the expansion of Central Arizona Project water delivery. General Purpose Funds include $26.6 million of revenue growth in Fiscal Year 2008 allocated to Financial Sustainability. Financial Sustainability The Fiscal Year 2008 allocation to the Financial Sustainability Plan of $26.6 million provides a cumulative investment of $53.6 million for the Fiscal Years 2007 and 2008 Biennial Budget. The increase for Fiscal Year 2008 is based on higher state-shared revenues than originally anticipated, as well as moderate growth in city sales tax revenues. The Financial Sustainability Plan funds $10.6 million for human capital in Fiscal Year 2008. These funds with an additional $2 million carried over from prior year revenues will provide for a salary adjustment based on the January 2007 Consumer Price Index for all Urban Consumers (CPI), merit increases, and other employee benefit requirements, primarily in public safety. CITY HALL • 255 W. ALAMEDA • P.O. BOX 27210 • TUCSON, AZ 85726-7210 (520) 791-4204 • FAX (520) 791-5198 • TTY (520) 791-2639 www.cityoftucson.org Service-related improvements are funded at $16 million in support of residential street maintenance, Police and related Judicial programs, Fire protection, and Parks and Recreation services as follows: • $3.4 million to repair 16 square miles of residential streets (24 miles over two years) • $6.0 million for 40 police officers and support functions and equipment in the Police and Judicial departments (80 police officers over two years) • $4.8 million for 45 firefighters and paramedics primarily to staff a new fire station, as well as support staff and equipment (74 firefighters and paramedics over two years) • $1.8 million to improve maintenance and programming in Parks and Recreation including an additional 12,000 hours of youth programming (24,000 hours of programming added over two years) The city is on target to complete the Fiscal Year 2007 service improvement goals funded with $16.2 million: • 8 square miles of residential street maintenance (an additional 4.8 miles of major roads were funded through Pima Association of Governments) • 40 police officers and necessary Police and Judicial support staff, equipment, and a new Police substation • 29 firefighters and paramedics as well as support staff and equipment • Improved maintenance and programming in Parks and Recreation including 11,560 hours of senior and KIDCO programming The goal of the Financial Sustainability Plan and previous initiatives is to support city priorities, public safety in particular. Each year, public safety has been allocated a larger percentage of General Purpose Funds. Commissioned Police and Fire personnel have grown from about 36% of all general purpose funded positions five years ago to over 42%. Public safety expenses now make up about 50% of the General Purpose Funds budget from about 43% five years ago. Commissioned Positions as a Percentage of General Purpose Funds Positions Public Safety as a Percentage of General Purpose Funds Total 45% 60% 42% 50% 40% 50% 43% 36% 35% 40% 30% 30% FY 2003 FY 2003 FY 2008 FY 2008 Economic and Revenue Considerations While the economy continued to expand strongly during much of Fiscal Year 2007, a general slowdown is anticipated in Fiscal Year 2008. The housing market will likely continue to decline into Fiscal Year 2008; however, it is difficult to project when it will hit bottom. The employment picture continues to improve and has helped support consumer confidence in light of the potential impact of the declining housing market. Fuel and energy costs continue to be a concern. A-2 BUDGET OVERVIEW On June 13, 2006, the Mayor and Council adopted the Fiscal Years 2007 and 2008 Biennial Budget. Because state law requires that each fiscal year’s budget be adopted separately, the Fiscal Year 2008 budget update was submitted to the Mayor and Council for final adoption. Fiscal Year 2008 $ 1.26 billion Enterprise Funds $ 210 million General Purpose Funds $ 493 million Other Restricted Funds $ 559 million The Fiscal Year 2008 Adopted Budget totals $1.26 billion. Approximately 61% comes from restricted funds that can only be used for specific purposes: Enterprise Funds of $209.6 million and Other Restricted Funds of $559.5 million. The remaining 39% or $493.4 million is from General Purpose Funds, including $5.4 million from prior year sources. The Mayor and Council have discretion to program General Purpose Funds for any purpose to meet the city's priority needs. The Fiscal Year 2008 Adopted Budget is an increase of $160.2 million over the Fiscal Year 2007 Budget of $1.1 billion. The General Purpose Funds budget was increased by $26.6 million based on Fiscal Year 2008 revenue growth and $5.4 million brought forward from prior years. To provide adequate capacity for grants, bonds, and other capital financing needs, the Other Restricted Funds budget increased by $113.3 million. Enterprise Funds grew $14.9 million, primarily to expand increased delivery of Central Arizona Project water. This overview is organized into the following sections: Financial Sustainability Plan Where the Money Goes – Expenditure Budget and Staffing Where the Money Comes From – Revenue Sources Citizen Impacts Expenditure Limitation Budget Development Process A-4 FINANCIAL SUSTAINABILITY PLAN The Fiscal Year 2008 budget continues to focus revenue growth on improving services while meeting the human capital requirements of the organization. The $26.6 million growth in Fiscal Year 2008 revenues are allocated 60% for service and 40% for human capital needs. The Fiscal Year 2008 budget incorporates the $27.0 million recurring investment from Fiscal Year 2007 and the new funding from Fiscal Year 2008 revenue growth for a total of $53.6 million. Revenue Growth for Financial Sustainability ($ millions) FY 2007 Adopted Service Improvements • Expanding road maintenance, primarily for a total of 24 square $ miles of residential streets • Hiring 80 additional police officers, plus funding for support and judicial staff • Improving fire and paramedic response capabilities with funding and staff, including 74 firefighters and paramedics • Increasing funds for Parks and Recreation programming and facilities maintenance Human Capital • Pay and benefit adjustments $ FY 2008 New Total 4.0 $ 3.4 $ 7.4 6.3 6.0 12.3 3.8 4.8 8.6 2.1 1.8 3.9 16.2 16.0 32.2 10.8 10.6 21.4 27.0 $ 26.6 $ 53.6 Ten Year Perspective The Financial Sustainability Plan establishes long-term goals to guide the city in allocating future revenues towards meeting the needs of the community. Recognizing the importance of investing in our human capital, a full 40% or $526 million of future revenues are targeted for salary and benefits. The remaining 60% allocated to city services is critical to meeting the community goals identified in this plan. The Police Department and related Judicial functions are programmed to receive 42% of the revenue growth allocated to services. An additional 26% is programmed for Fire Department services. In total, the investment in Public Safety will reach $533 million. Road maintenance by the Department of Transportation and services by the Parks and Recreation Department (expanding parks maintenance and programming, and opening new facilities) make up the remainder of the services allocation. It will be extremely important to continue the 60% allocation to services in future years if we are to be successful in reaching the city’s Financial Sustainability Plan goals. A-5 WHERE THE MONEY GOES The city budget funds a broad range of services. Some department operations are self-supporting; these are included in the Enterprise group, which makes up 14% of the budget. The Public Safety group, consisting of the Police, Fire, and Judicial department operations, makes up 22% of the budget. Operations of the other three largest departments that provide direct services to the public (Parks and Recreation, Transportation, and Community Services) use 19% of the budget. The capital budget for all departments makes up 26%. Other department operations, including general support and debt service, accounts for the remaining 19% of the budget. The Enterprise group includes Environmental Services 3%, Golf 1%, and Water 10%. Fiscal Year 2008 Expenditures $ 1.26 billion Police 13% Enterprise 14% Fire 7% Judicial 2% Community Services 6% Parks and Recreation 4% Transportation 9% General Support 5% Debt Service 6% Capital 26% Other 8% A-6 Public Safety group totals 22% (Police, Fire, and Judicial). Expenditure Changes Changes by department or department category, from the Fiscal Year 2007 Adopted Budget to the Fiscal Year 2008 Adopted Budget, are briefly noted below and on the following pages. All department expenditure changes include adjustments to salaries and benefits based on the compensation plan: 2.1% cost-of-living adjustment, merit/step increases, and starting public safety commissioned employees at the second salary step. Additional information on department budget changes can be found in Section B of this volume. Expenditures ($ millions) Adopted FY 2007 Budget Public Safety Police Fire Judicial Public Safety Sub-Total $ Adopted FY 2008 Budget % of Total Change Change 149.7 $ 73.7 22.8 246.2 170.7 $ 82.6 24.2 277.5 21.0 8.9 1.4 31.3 13% 6% 1% 20% Enterprise Operations Golf Environmental Services Water Enterprise Sub-Total 10.9 38.0 113.8 162.7 11.1 43.5 124.6 179.2 0.2 5.5 10.8 16.5 0% 3% 7% 10% Other Operating Departments Transportation Community Services Parks and Recreation General Support* Debt Service Other ** Other Operating Sub-Total 104.3 75.3 47.2 56.8 67.0 67.1 417.7 108.1 78.8 49.7 62.4 73.9 100.0 472.9 3.8 3.5 2.5 5.6 6.9 32.9 55.2 2% 2% 2% 3% 4% 21% 34% Operating Budget Total 826.6 929.6 103.0 64% Capital Budget 275.7 332.9 57.2 36% 1,262.5 $ 160.2 100% Total $ 1,102.3 $ * Includes City Clerk Elections which decreases or increases $1 to $2 million depending on election year. ** Includes capacity for internal service and fiduciary funds. Public Safety Changes Police. The Fiscal Year 2008 funding increment from the Financial Sustainability Plan is $5.2 million, which provides for 40 additional officers and 14 civilian support positions. The department's remaining increase of $15.8 million is primarily due to $10.6 million in grant capacity, including $8.0 million for an Urban Area Security Initiative grant, and $5.5 million in adjustments to salaries and benefits based on the compensation plan. The Fiscal Year 2007 budget included one-time funds that are not required in Fiscal Year 2008. A-7 Fire. The Fiscal Year 2008 funding increment from the Financial Sustainability Plan is $4.8 million, which provides for 47 additional positions: 45 commissioned and 2 civilian. Fire's remaining increase of $4.1 million is primarily due to $2.3 million in additional grant capacity, including $2 million for an Urban Area Security Initiative grant, and $2.8 million for adjustments to salaries and benefits based on the compensation plan. The Fiscal Year 2007 budget included one-time funds that are not required in Fiscal Year 2008. Judicial. This category includes City Court, City Attorney, and Office of the Public Defender. The Fiscal Year 2008 funding increment from the Financial Sustainability Plan is $0.7 million, which provides for 3.5 additional positions: 2.0 for City Court and 1.5 for the City Attorney. The remaining $0.7 million increase is primarily due to $0.6 million for adjustments to salaries and benefits based on the compensation plan. Enterprise Operations Changes Golf. For Fiscal Year 2008, there is an increase of $0.2 million. That increase is solely due to adjustments to salaries and benefits based on the compensation plan. While the Golf fund is projected to break even, revenues and expenditures are carefully monitored. Environmental Services. The department's $5.5 million increase in Fiscal Year 2008 is due to several factors. Debt service payments for the use of certificates of participation in the capital budget account for $1.6 million of the increase. Salary and benefit adjustments based on the compensation plan added $0.6 million. Most of the remaining $3.3 million increase is capacity for equipment and software, higher fuel costs, general government support, and the switch to in-house labor for better inspection of landfill loads and operations of the household hazardous waste program. Water. The increase of $10.8 million in Fiscal Year 2008 is primarily due to increases in Central Arizona Project payments of $3.8 million, debt service payments of $3.3 million, and energy costs of $1.9 million. Other operational increases include the outsourcing of bill printing and water resource management contracts. Other Operating Department Changes Transportation. The Fiscal Year 2008 funding increment from the Financial Sustainability Plan is $3.4 million to expand the existing road maintenance program. The department's remaining increase of $0.4 million is due to several factors. Adjustments to salaries and benefits based on the compensation plan added $0.5 million. The transfer of the Real Estate Division from Finance accounts for another $0.7 million. Capacity for ParkWise’s GemRide and corrections to costs charged to the capital budget added approximately $0.7 million. These increases were offset by the elimination of one-time funds in the Fiscal Year 2007 budget that are not required in Fiscal Year 2008. Community Services. For Fiscal Year 2008, the department’s budget increase is $3.5 million. Earned revenue, which includes land sales, adds $3.0 million for projects such as the Martin Luther King, Jr. housing project downtown. Capacity for the Housing Trust Fund was increased by $0.7 million for a Fiscal Year 2008 total of $1.7 million. Adjustments to salaries and benefits based on the compensation plan increased the budget by $0.6 million. The budget also reflects the transfer of $0.3 million from NonDepartmental’s outside agency support and $0.3 million of additional funding for the School Plus Jobs program. Completion of projects in Fiscal Year 2007 resulted in offsetting decreases to the Fiscal Year 2008 budget. Parks and Recreation. The Fiscal Year 2008 funding increment from the Financial Sustainability Plan is $1.8 million, which provides for additional facility maintenance and increased programs and services. The department's remaining increase of $0.7 million is primarily due to $0.8 million for adjustment to salaries A-8 and benefits based on the compensation plan, which is partially offset by the elimination of one-time funds in the Fiscal Year 2007 budget that are not required in Fiscal Year 2008. 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. Funding for this group of departments was increased by $5.6 million in Fiscal Year 2008, primarily for $6 million carried forward from Fiscal Year 2007 to complete General Services’ Central Cooling Loop project. Other adjustments include $2.0 million for elections and $1.2 million to salaries and benefits based on the compensation plan, which are offset by reductions for acquisitions completed in Fiscal Year 2007. Debt Service. This category includes the repayment of general government debt, which is budgeted in Non-Departmental. (The repayment of Enterprise Fund debt is budgeted in their respective departments.) The increase of $6.9 million in Fiscal Year 2008 is primarily due to $5.4 million for the repayment of certificates of participation that will be used to finance additional public safety facilities and equipment. The repayment of general obligation bonds increased by $1.2 million due to the planned sale of $13.3 million, which will be the final sale from the 2000 authorization, and offsetting savings from a recent refunding of outstanding bonds. Also included is $0.6 million for the repayment of special assessment bonds. These increases are offset by a reduction in repayment on an H.E.L.P. (Highway Extension and Expansion Loan Program from the Arizona Department of Transportation) loan for the Mountain Avenue project. 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 Non-Departmental's Outside Agencies, General Expense, Risk Management, and Pension. This category's Fiscal Year 2008 budget increases by $32.9 million. The increase primarily occurs in NonDepartment's General Expense and is due to two factors: capacity for internal service and fiduciary funds and for an accounting change in the treatment of indirect cost allocations for general government support. Offsetting these increases are reductions for one-time payments and carryforward in Fiscal Year 2007 that are no longer required and the decline in contributions to Pima County for the Library that is part of the continued transfer of financial responsibility. Capital Budget Changes The $57.2 million increase in Fiscal Year 2008 includes additional capacity for impact fees and Regional Transportation Authority funds, and capacity to expedite Tucson Water’s Central Arizona Project water recharge and recovery projects. A-9 Staffing For Fiscal Year 2008, 42% of employees are in the Public Safety group, which includes Police, Fire, and Judicial departments. Three large departments providing other direct services to the public, Parks and Recreation, Transportation, and Community Services, employ 22% of employees. The self-supporting Enterprise group employs 17% of the city workforce. The remaining 19% 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 budget for Fiscal Year 2008 totals 6,032.71, an increase of 184.95 full-time equivalent (FTE) positions over the adopted budget for Fiscal Year 2007. A total of 146.00 positions were added through the Financial Sustainability Plan and will provide additional services in Police, Fire, Parks, City Attorney’s Office, and City Court. Another 3.0 positions were added to Police for administration of the vehicle impound program, which is funded from new impound fees. The remaining 35.95 positions were added in the following departments. City Clerk positions were increased by 20.50 FTEs due to temporary election positions. Environmental Services gained 13.00 positions to eliminate a dependency on contracted labor and improve inspections of landfill loads. The second year of implementation for Neighborhood Services added 9.00 positions for improved customer service. Tucson Water added 5.00 positions to expedite their Central Arizona Project recharge and recovery projects. Those increases were offset by a net decrease of 11.55 positions in other departments, including 5.00 positions transferred from the city to TREO (Tucson Regional Economic Opportunities, Inc.). Fiscal Year 2008 City Staffing 6,032.71 FTEs The Enterprise group totals 17% (Environmental Services, Golf, and Water ). Public Safety group totals 42% (Police, Fire, and Judicial). Police 25% Other 6% General Support 13% Community Services 2% Fire 12% Judicial 5% Parks and Recreation 13% Transportation 7% Water 10% A-10 Golf 3% Environmental Services 4% Staffing Changes The changes in positions by department or department category from Fiscal Year 2007 to Fiscal Year 2008 are briefly noted below and on the following page. All position changes noted are in full-time equivalents. For more detail, see the position change summary and individual department pages in Section B of this volume. City Staffing (full-time equivalents) Adopted FY 2007 Budget Adopted FY 2008 Budget % of Total Change Change Public Safety Police Fire Judicial Public Safety Sub-Total 1,468.00 694.00 296.80 2,458.80 1,525.00 741.00 309.80 2,575.80 57.00 47.00 13.00 117.00 31% 25% 7% 63% Enterprise Departments Environmental Services Golf Water Enterprise Sub-Total 251.00 154.75 573.00 978.75 264.00 154.75 578.00 996.75 13.00 -05.00 18.00 7% 0% 3% 10% Other Operating Departments Transportation Community Services Parks and Recreation General Support* Other Other Operating Sub-Total 404.50 152.50 711.00 799.21 343.00 2,410.21 416.50 148.75 749.50 803.16 342.25 2,460.16 12.00 (3.75) 38.50 3.95 (0.75) 49.95 7% (2%) 21% 2% (1%) 27% Total 5,847.76 6,032.71 184.95 100% * Includes City Clerk Elections which decreases or increases 20.5 FTEs depending on election years. Public Safety Changes Police. The increase of 57.00 positions includes 40.00 officers and 14.00 civilian support positions funded through the Financial Sustainability Plan, and 3.00 positions funded through new impound fees. Fire. The increase of 47.00 positions includes 45.00 firefighters, paramedics, and inspectors and 2.00 civilian support positions funded through the Financial Sustainability Plan. Judicial. This department group was increased by 13.00 positions including 12.50 funded from Financial Sustainability. In addition, City Court added 2.00 positions funded by the state’s Fill the Gap program and eliminated 1.50 grant-funded positions. A-11 Enterprise Operations Changes Environmental Services. The department's staffing increased by 13.00 positions, which were added to eliminate dependency on contracted labor and improve landfill inspections. Water. The department's staffing increased by 5.00 positions to expedite the construction of capital projects for the recharge and recovery of CAP (Central Arizona Project) water. Other Operating Department Changes Transportation. The increase of 12.00 positions in Fiscal Year 2008 resulted from organizational changes during Fiscal Year 2007: the transfer of 13.00 Real Estate Division positions from Finance and the transfer of 1.00 position to Neighborhood Resources. Community Services. The 3.75 positions eliminated were grant-funded positions. Parks and Recreation. Parks staffing is increased by 38.50 positions: 32.50 additional positions funded through the Financial Sustainability Plan, 5.00 custodial positions transferred from General Services, and 1.00 non-permanent position for extended zoo hours. 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 increase of 3.95 positions in Fiscal Year 2008 is due to various factors. Because Fiscal Year 2008 is an election year, 20.50 positions are added in City Clerk. In addition, 1.00 position is added in Finance for the wellness program, 1.00 position transferred to Human Resources from Tucson Water, and 5.00 positions transferred from Non-Departmental to the City Manager’s Office due to the realignment of the Rio Nuevo Office. These increases are offset by 13.00 positions transferred from Finance to Transportation, 5.00 positions transferred from General Services to Parks, and 5.55 positions eliminated in Budget. Within the General Support category, 1.00 position was transferred from Budget to the City Manager’s Office. 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 General Expense. The decrease of 0.75 positions in Fiscal Year 2008 is primarily due to the net increase of 10.00 positions for customer service and code enforcement in Neighborhood Resources offset by the transfer of 10.75 positions out of Non-Departmental: 5.00 Rio Nuevo positions transferred to the City Manager’s Office and 0.75 Rio Nuevo position deleted, and 5.00 positions transferred to TREO (Tucson Regional Economic Opportunities, Inc.). A-12 WHERE THE MONEY COMES FROM There are two major revenue groups in the city’s budget: 1) General Purpose Funds and 2) Restricted Funds, which include Enterprise Funds and Other Restricted Funds. This section of the overview will first discuss General Purpose Fund revenues, followed by a discussion of Restricted Fund 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 39% of the total Fiscal Year 2008 budget. General Purpose Funds revenue comes from both city-generated sources and state-shared sources, as illustrated in the chart below. In Fiscal Year 2008, city sales tax and state-shared taxes will provide almost 3/4 of the General Purpose Funds: 43% from city sales tax and 31% from state-shared taxes. The 24% in Miscellaneous City Revenues consists of local taxes and fees. The city's Primary Property Tax provides only 2% of the General Purpose Funds budget. Fiscal Year 2008 General Purpose Funds - Revenues $ 493.4 million State-Shared Sales Tax 11% City Sales Tax 43% State-Shared Other 5% State-Shared Income Tax 15% Miscellaneous City Revenues 24% A-13 City Primary Property Tax 2% Revenue Changes – General Purpose Funds To correctly calculate the Fiscal Year 2008 General Purpose Funds revenue growth, the adopted budget of $493.4 million is compared to the revised Fiscal Year 2007 revenue projections. The resulting increase of $26.6 million is the basis for the Financial Sustainability Plan. The increase in estimated Fiscal Year 2007 revenues over the adopted revenues is restricted to specific requirements, including partial funding of merit increases, elections, and other contractual requirements. The major changes are summarized in the table and discussion on the following pages. Additional information on revenues is available in Section E of this volume. General Purpose Funds Revenues ($ millions) Adopted FY 2007 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 Estimated FY 2007 Budget Adopted FY 2008 Budget Change $ 199.5 9.7 114.4 323.6 $ 204.7 9.7 115.6 330.0 $ 212.9 $ 10.3 115.7 338.9 8.2 0.6 0.1 8.9 $ 60.5 51.9 25.4 137.8 $ 60.2 51.2 25.4 136.8 $ 74.6 $ 54.0 25.9 154.5 14.4 2.8 0.5 17.7 $ 461.4 $ 466.8 $ 493.4 26.6 $ Following are brief explanations of the revenue differences between the Fiscal Year 2008 Adopted Budget and Fiscal Year 2007 Estimated Budget. City Revenues. City-generated revenues account for 69% of the Fiscal Year 2008 General Purpose Funds budget. The total of $338.9 million for Fiscal Year 2008 is an increase of $8.9 million, primarily in city sales tax revenues. General Purpose Funds City Revenues $ millions 199 205 213 114 116 116 10 Sales Tax FY 2007 10 10 Primary Property Tax FY 2007 Estimated Other FY 2008 The city’s sales tax is highly dependent on the strength of the local economy. The adopted budget includes $212.9 million from city sales tax, which is an increase of $8.2 million. That increase resulted from a modest 4.5% growth compared to 7.5% in Fiscal Year 2007. This growth is less than the 5% estimated in the approved budget for Fiscal Year 2008. The adopted budget for Fiscal Year 2008 also includes a small increase in the primary property tax collection that is within the maximum allowable levy of $10.3 million. This increase will bring in an additional $0.6 million. The primary property tax rate is reduced from $0.3411 per $100 assessed valuation to $0.3296 based on the value of property as estimated by the Pima County Assessor in January 2007. A-14 The remaining $0.1 million of the Fiscal Year 2008 increase is primarily due to increases in the use tax and various licenses, permits, and fines that are offset by minor reductions in other revenues. 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 31% of the General Purpose Funds budget. For Fiscal Year 2008, state-shared revenues are projected at $154.5 million, an increase of $17.7 million from Fiscal Year 2007 Estimated Budget. State income tax distributions for Fiscal Year 2008, which are based on collections in 2006, are expected to be $74.6 million, a $14.4 million increase. That increase reflects the growth in the Arizona economy two years ago. General Purpose Funds State-Shared Revenues $ millions 75 61 60 52 51 54 25 State Income Tax FY 2007 State Sales Tax FY 2007 Estimated 25 The budget for Fiscal Year 2008 includes $54.0 million of state-shared sales tax, which is a $2.8 million increase from Fiscal Year 2007 Estimated Budget. As is the case with the city’s sales tax, the state sales tax reflects slower economic growth of 5.5% in Fiscal Year 2008 compared to 7.7% growth in Fiscal Year 2007 (prior to the middecade census adjustment). 26 State Other FY 2008 Other state-shared revenues include auto lieu taxes and lottery proceeds used for mass transit. In total, these revenues of $25.9 million for Fiscal Year 2008 are $0.5 million higher than the Fiscal Year 2007 Estimated Budget. That increase is entirely from moderate growth in the auto lieu revenue from $22.8 million to $23.3 million. No change is anticipated for lottery proceeds. State revenues returned to the city are constantly at risk from appropriation by the legislature. Last year the state cut income taxes a combined 10% over two years. This cut will begin to impact the city in Fiscal Year 2010. The city must be vigilant in protecting this important source of funding for critical services. A-15 Restricted Funds – Revenues Restricted funds account for 61% of the total Fiscal Year 2008 budget. These funds are restricted because their use is limited to specific purposes. Restricted Funds come from federal, state, and local sources. Restricted fund revenues are fairly evenly divided between: (1) federal funding (2) grants, shared taxes, and contributions from state and other local governments (3) self-supporting enterprise funds (4) 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 Federal funding will provide 20% of the Fiscal Year 2008 Restricted Funds Budget for public housing, roadway, and transit programs and projects. Grants, shared taxes, and contributions from the state and other local governments, including the Regional Transportation Authority, will provide another 18%. The city’s selfsupporting enterprise funds will provide 27%. The remaining 35% is from restricted city sources, such as bonds, certificates of participation, impact fees, parking revenues, and debt service funds from the secondary property tax. Fiscal Year 2008 Restricted Funds - Revenues $ 769.1 million Highway User Secondary Property Tax Revenues 4% 8% Capital Projects Fund Other Grants 8% 10% Federal Funding 20% Other 23% Enterprise Funds 27% A-16 Revenue Changes – Restricted Funds Budget In Fiscal Year 2008, the restricted funds revenues total $769.1 million, an increase of $128.2 million over Fiscal Year 2007 Adopted Budget. Much of that increase is to provide capacity to meet Government Accounting Standards and the state auditor general’s reporting requirements and will ensure that the city will be able to move forward with programs and projects in public safety, transportation, and other priority areas. Restricted Fund Revenues ($ millions) Adopted FY 2007 Budget Grants and Shared Revenues: Federal Funding Highway User Revenues Other Grants Grants and Shared Revenues Sub-Total Restricted City Revenues: Secondary Property Tax Capital Projects Fund Other Restricted City Sub-Total Enterprise Funds Environmental Services Golf Water Enterprise Funds Sub-Total Total Restricted $ 135.6 60.8 78.7 Adopted FY 2008 Budget $ 275.1 Change 156.2 $ 63.2 75.7 20.6 2.4 (3.0) 295.1 20.0 $ 26.8 51.1 93.2 171.1 $ 28.0 $ 61.0 175.4 264.4 1.2 9.9 82.2 93.3 $ 39.5 10.9 144.3 194.7 $ 52.0 $ 11.1 146.5 209.6 12.5 0.2 2.2 14.9 $ 640.9 $ 769.1 $ 128.2 Following are brief explanations of the revenue differences between the Fiscal Year 2008 Adopted Budget and Fiscal Year 2007 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 $295.1 million in Fiscal Year 2008, which is an increase of $20.0 million. Restricted Funds Grants and Shared Revenues 156 $ millions 136 61 Federal Funding 63 Highway User Revenues FY 2007 FY 2008 78 76 Other Grants Federal grants increase $20.6 million for housing, transportation, and public safety. Included in the federal grant funding is $10.0 million of capacity for an Urban Area Security Initiative grant from the Department of Homeland Security and $9.0 million for a loan from the state’s infrastructure bank for Transportation’s Mountain Avenue project. Revenues from Highway User Revenue Funds are increased by $2.4 million for Transportation programs and projects. A-17 The Other Grants group, which includes state grants and local contributions such as Pima County bonds, Highway User Revenue Funds (HURF) distributed by the Pima Association of Governments, and Regional Transportation Authority funding, decreased by $3.0 million in Fiscal Year 2008. That decrease is mainly due to a rescheduling of capital projects. Restricted City Revenues. This group includes the Secondary Property Tax, Capital Projects Fund (bonds), and other restricted sources such as parking revenue, reserves, impact fees, and certificates of participation. These revenues will increase $93.3 million in Fiscal Year 2008. While the Fiscal Year 2008 secondary property tax levy is increasing by $1.2 million, primarily from a planned new sale of $13.3 million and savings from a recent refunding, the secondary property tax rate will decline from $0.8846 per $100 of assessed valuation to $0.8025, a decrease of 9%. Restricted Funds City Revenues $ millions 175 93 27 61 51 28 Secondary Property Tax Capital Projects Fund FY 2007 The Capital Projects Funds group is increasing by $9.9 million, including $5.8 million in new funding that is primarily for the acceleration of Tucson Water’s bond program related to Central Arizona Project recharge and recovery. Other FY 2008 The Other group of restricted city revenues increases by $82.2 million in Fiscal Year 2008 due to a combination of carryforward and new funding. The programming of impact fee revenue, certificates of participation, and internal revenues accounts for most of the new funding increase. Enterprise Funds Revenues. This group includes both enterprise fund operating revenues and certificates of participation or other financing, but excludes bond funds. Funding for the three enterprise departments will increase a total of $14.9 million in Fiscal Year 2008. The Environmental Services Fund increases by $12.5 million in Fiscal Year 2008 from carryforward, operating revenue growth, and certificates of participation. Revenue projections do not include a rate change. Restricted Funds Enterprise Funds Revenues $ millions 144 40 147 52 11 Environmental Services FY 2007 Golf revenues are anticipated to stay fairly flat, increasing by just $0.2 million. 11 Golf Water For Fiscal Year 2008, Tucson Water's revenues will increase $2.2 million. A rate increase of 6.2% was included in the utility’s financial plan approved by Mayor and Council on April 17, 2007. FY 2008 A-18 CITIZEN IMPACTS Changes to the City's “Bill for Services” The cost impact to the average homeowner from the Fiscal Year 2008 Adopted Budget will be approximately $6.65 per month or 22¢ per day more than in Fiscal Year 2007. That change will come from property tax collections, due to higher assessed valuations not from rate increases, and from a potential increase to residential water usage rates based on the approved 6.2% revenue increase in Tucson Water’s current financial plan. City “Bill for Services” for the Average Homeowner FY 2007 City Property Taxes1: Primary Secondary City Sales Tax2 Environmental Service Fee Tucson Water3 Annual Total Per Month $ 375.21 1,273.82 434.60 144.00 234.84 $ 2,462.47 $ 205.20 FY 2008 Increase 398.82 1,328.94 434.60 144.00 $ 23.61 55.12 -0-0- 235.87 $ 2,542.23 $ 211.85 1.03 $ 79.76 $ 6.65 $ 1Owner-occupied residence with the following assessed valuations, with the change % based on the overall increase in city property valuations: FY 2006 FY 2007 Change Full cash value $ 144,000 $ 165,600 + 15% Limited value $ 110,000 $ 121,000 + 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 and the proposed rate schedule for Fiscal Year 2008. 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 Fiscal Year 2008 property tax rates are calculated from the assessed valuations for Tax Year 2007 provided by the Pima County Assessor in January 2007. The City of Tucson’s primary assessed valuation increased slightly more than 10%, from $2,839,163,113 to $3,133,309,748. The city’s secondary assessed valuation was increased by more than 15%, from $3,016,230,759 to $3,491,926,602. While primary property tax collections are increasing based on the maximum allowable levy, the primary property tax rate will decrease due to the increase in assessed valuation. Essentially, the cost per $100 of assessed valuation is spread over a larger base, making the rate lower. The secondary property tax will also decrease, even though the levy increases, for the same reason. These decreases in the city’s property tax rates are shown in the table on the following page. A-19 City of Tucson Property Tax Comparisons Actual Estimated FY 2008 Changes FY 2007 Rate Changes $ 0.3296 $ (0.0115) Primary $ 0.3411 0.8025 (0.0821) Secondary 0.8846 Total $ 1.2257 $ 1.1321 $ (0.0936) 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 budget for Fiscal Year 2008. (Any such change would require a majority vote of the electorate.) 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 Environmental Services Fee (residential refuse fee) and Tucson Water’s usage rates. There is no change in this budget to the residential refuse fee. A 6.2% increase in revenues is needed to fund Tucson Water’s Fiscal Year 2008 Adopted Budget. While the exact impact to residential users is not known at this time, the bill for the average single family use (about 12 Ccf or approximately 9,000 gallons per month) will increase by $1.03 under the proposed rate schedule. 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 a Home Rule 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. Voters will have an opportunity to renew Home Rule in the November 2009 general election. A-20 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 is a Fiscal Year 2008 update to the biennial budget of Fiscal Years 2007 and 2008. The Mayor and Council adopted Fiscal Year 2007 and approved the Fiscal Year 2008 budget last year. For the Fiscal Year 2008 budget, that approved budget was adjusted and brought back 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) long-range forecast of revenues and expenditures, (3) department requests and the City Manager’s recommendation, and (4) Mayor and Council adoption. 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 Strategic Priorities Plan, that provides a framework and clear benchmarks for addressing future service needs, is updated annually and presented to the Mayor and Council. See Section G of this volume for more information on that plan. Step 2: Long-Range Forecast of Revenues and Expenditures. In Fiscal Year 2007, the city implemented a Financial Sustainability Plan (FSP) with a ten-year planning horizon to consolidate the strategic priorities and longterm financial projections. One of the underlying premises of the FSP is that revenue growth should be used for service improvements in four priority areas, while still addressing the human capital needs of the city organization. The four priority areas are enhanced road maintenance, additional police officers and related support, improved response to fire and medical emergencies, and increased funding for parks facilities and programs. Fiscal Year 2005, which was a year of positive economic conditions and significant investments in services, was used as the guide for determining allocation amounts of 60% of revenue growth for service improvements and 40% for human capital costs, such as salary and benefit adjustments. The FSP provides the basis for the biennial budget process and other efforts to improve city services. Step 3: Department Requests and the City Manager’s Recommendation. For the Fiscal Year 2008 Update Budget, departments were given financial and staffing allocations equal to their Fiscal Year 2008 Approved Budget with adjustments, such as the full-year cost of the November 2007 pay adjustment and funding for the Fiscal Year 2008 pay and benefit adjustments based on the compensation plan. To stay within those allocations, departments had to review their operations and make revisions to their budgets to cover inflation. Funding was also included for increases based on the second year of the Financial Sustainability Plan. A-21 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 set the property tax levies. Budget Calendar For a complete budget calendar for the Adopted Update for Fiscal Year 2008, see page iii. A-22 City of Tucson Section B Adopted Changes Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget Revenue Adjustments for the Fiscal Year 2008 Budget Primary Property Tax Secondary Property Tax Business Privilege Tax (City Sales Tax) Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property State-Shared Income Tax (State Revenue Sharing) State-Shared Sales Tax State-Shared Highway User Revenue Funds Other Shared Taxes and Grants Charges for Current Services Non-Revenue Receipts Federal Grants Enterprise Funds Environmental Services Golf Water Certificates of Participation Capital Project Funds (Bonds) Brought Forward and Use of Fund Balance $ Total FY 2007 FY 2008 Adopted Adopted Change 9,733,050 $ 26,808,660 199,500,000 29,160,000 21,713,630 15,630,610 6,563,350 60,500,000 51,930,000 50,510,000 101,811,630 45,461,810 26,165,450 133,299,380 10,327,380 $ 28,022,940 212,870,000 30,021,000 23,181,500 14,265,850 6,588,700 74,600,000 53,970,000 54,730,060 101,697,700 54,199,480 36,649,700 153,877,860 594,330 1,214,280 13,370,000 861,000 1,467,870 (1,364,760) 25,350 14,100,000 2,040,000 4,220,060 (113,930) 8,737,670 10,484,250 20,578,480 39,465,240 10,978,050 144,281,350 52,961,290 51,059,900 24,771,170 52,043,200 11,063,820 146,472,000 86,647,800 60,948,300 50,371,200 12,577,960 85,770 2,190,650 33,686,510 9,888,400 25,600,030 $ 1,102,304,570 $ 1,262,548,490 $ 160,243,920 Discussion of Major Revenue Adjustments Change Secondary Property Tax Adjustment for new bond sale in Fiscal Year 2008 Business Privilege Tax Improved prior year revenues $ 1,214,280 13,370,000 Licenses and Permits Growth in franchise fee and cable license collections 1,467,870 Fines, Forfeitures, and Penalties Adjustment for revenues transferred to the state (1,364,760) State-Shared Income Tax (State Revenue Sharing) Increased distribution based on Fiscal Year 2006 income tax collections 14,100,000 State-Shared Sales Tax Increased distribution based on state collections 2,040,000 B-1 Revenue Adjustments for the Fiscal Year 2008 Budget Discussion of Major Revenues Adjustments (Continued) State-Shared Highway User Revenue Funds Increased distribution based on state collections Change $ 4,220,060 Charges for Current Services Primarily due to a change in the accounting treatment of the indirect cost allocation to Enterprise Funds for general government support 8,737,670 Non-Revenue Receipts Primarily due to the budgeting of additional impact fees for arterial roadway and regional park projects 10,484,250 Federal Grants Increased use based on the implementation of projects; includes $10 million of additional capacity for Homeland Security's urban area grants 20,578,480 Enterprise Funds Environmental Services - growth in service demand and increased use of certificates of participation for landfill projects Water - increase from new CAP water resource fee and water sales rate adjustment Certificates of Participation (COPs) Carry over of projects from Fiscal Year 2007 and capacity for the Depot Plaza garage 12,577,960 2,190,650 33,686,510 Capital Project Funds (Bonds) Carry over of bond-funded projects from Fiscal Year 2007 and capacity for Tucson Water's expedited recharge and recovery projects 9,888,400 Brought Forward and Use of Fund Balance Carry over of projects and the use of Highway User Revenue Fund and other restricted reserves; includes $2 million from prior year General Fund revenues to fund the Fiscal Year 2008 employee pay adjustments 25,600,030 Other Revenues Changes Miscellaneous adjustments to various tax revenue projections Total Revenue Adjustments 1,452,520 $ 160,243,920 B-2 Expenditure Adjustments for the Fiscal Year 2008 Budget FY 2007 FY 2008 Adopted Adopted Change Operating Elected and Official Mayor and Council City Manager City Clerk City Attorney $ Sub-Total Neighborhood Services City Court Community Services Fire 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 Environmental Services Transportation Tucson Water Urban Planning and Design Sub-Total Strategic Planning Tucson Convention Center Sub-Total B-3 3,272,010 $ 2,825,200 3,699,070 8,766,640 3,424,270 $ 3,970,170 5,519,990 9,192,910 152,260 1,144,970 1,820,920 426,270 18,562,920 22,107,340 3,544,420 10,960,720 75,322,850 73,668,260 3,377,380 47,221,340 10,908,050 149,739,440 757,470 11,808,830 78,827,950 82,647,760 4,449,060 49,708,830 11,063,820 170,666,650 832,950 848,110 3,505,100 8,979,500 1,071,680 2,487,490 155,770 20,927,210 75,480 3,000,810 3,190,910 190,100 374,956,320 413,196,760 38,240,440 11,122,740 37,964,240 104,293,970 113,848,350 4,367,060 12,592,510 43,469,200 108,087,480 124,603,000 5,096,800 1,469,770 5,504,960 3,793,510 10,754,650 729,740 271,596,360 293,848,990 22,252,630 10,860,320 7,355,120 (3,505,200) 10,860,320 7,355,120 (3,505,200) Expenditure Adjustments for the Fiscal Year 2008 Budget FY 2007 FY 2008 Adopted Adopted Change Operating (Continued) Support Services Budget and Research Finance General Services Human Resources Information Technology Procurement $ 2,455,910 $ 11,053,660 13,407,350 2,701,950 15,987,110 3,841,520 1,690,740 $ 9,764,590 19,074,860 2,904,190 14,725,190 3,904,890 (765,170) (1,289,070) 5,667,510 202,240 (1,261,920) 63,370 49,447,500 52,064,460 2,616,960 101,145,550 141,101,220 39,955,670 929,673,890 $ 103,104,920 275,735,600 332,874,600 57,139,000 $ 1,102,304,570 $ 1,262,548,490 $ 160,243,920 Sub-Total Non-Departmental Total Operating $ Capital Total Budget B-4 826,568,970 $ Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Mayor and Council FY 2007 Adopted FY 2008 Adopted Change Financial Summary Operating Budget General Purpose Funds $ 3,272,010 $ 3,424,270 $ 152,260 Department Total $ 3,272,010 3,424,270 152,260 Staffing Summary 51.50 $ $ 51.50 -0- Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan Total Changes B-5 -0- $ 152,260 -0- 152,260 $ Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Budget and Research FY 2007 Adopted FY 2008 Adopted Change Financial Summary Operating Budget General Purpose Funds $ 2,455,910 $ 1,690,740 $ (765,170) Department Total $ 2,455,910 1,690,740 (765,170) Staffing Summary 24.55 $ $ 18.00 (6.55) Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan $ 58,030 Staff and funding transferred to City Manager's Office (1.00) (181,230) Positions and costs eliminated (5.55) (641,970) (6.55) $ (765,170) Total Changes B-6 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget City Attorney FY 2007 Adopted FY 2008 Adopted Change Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds $ 8,009,930 $ 338,440 418,270 8,416,360 $ 344,620 431,930 406,430 6,180 13,660 Department Total $ 8,766,640 9,192,910 426,270 Staffing Summary 108.50 $ $ 112.00 3.50 Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan $ Increase to Financial Sustainability Plan funding 3.50 227,190 179,240 19,840 Increase in grant funding Total Changes 3.50 B-7 $ 426,270 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget City Clerk FY 2007 Adopted FY 2008 Adopted Change Financial Summary Operating Budget General Purpose Funds $ 3,699,070 $ 5,519,990 $ 1,820,920 Department Total $ 3,699,070 5,519,990 1,820,920 Staffing Summary 37.50 $ $ 58.00 20.50 Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan $ Increase for November general election 20.50 20,860 2,000,000 Reduction for carryforward from Fiscal Year 2006 (199,940) Total Changes 20.50 B-8 $ 1,820,920 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget City Court FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Other Restricted Funds Department Total FY 2008 Adopted Change $ 10,221,820 $ 738,900 11,006,410 $ 802,420 784,590 63,520 $ 10,960,720 11,808,830 $ 848,110 Staffing Summary 150.30 $ 159.80 9.50 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ Elimination of grant-funded positions; grant capacity retained Increase to Financial Sustainability Plan funding 261,490 (1.50) -0- 9.00 482,970 Capacity for potential new revenues 100,000 Fill the Gap program funded by the retention of a percentage of the state surcharge on certain fines 2.00 69,170 Increase for court appearance costs 36,000 Increase in grant funding 8,640 Miscellaneous other changes 5,350 (115,510) Correction to accounting for ParkWise support; costs are in Transportation's budget Total Changes 9.50 B-9 $ 848,110 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget City Manager FY 2007 Adopted FY 2008 Adopted Change Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds $ 2,825,200 $ -0-0- 3,570,170 $ 250,000 150,000 744,970 250,000 150,000 Department Total $ 2,825,200 3,970,170 $ 1,144,970 Staffing Summary 26.00 $ 32.00 6.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ 111,130 Realignment of the Rio Nuevo Program Office to improve relationships with city departments that are key to downtown development 5.00 363,640 Staff and funding transferred from the Budget and Research Department 1.00 181,230 Capacity from General Services for a position transferred during Fiscal Year 2007 93,190 Capacity for anticipated grants 400,000 Miscellaneous other changes (4,220) Total Changes 6.00 B-10 $ 1,144,970 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Community Services FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds Total Operating Budget Capital Budget Federal Funds Other Restricted Funds FY 2008 Adopted $ 3,965,430 $ 67,658,090 3,699,330 $ 75,322,850 Change 4,308,500 $ 68,218,690 6,300,760 $ 78,827,950 $ 343,070 560,600 2,601,430 3,505,100 $ 349,000 $ 1,763,800 1,049,300 $ 518,200 700,300 (1,245,600) Total Capital Budget $ 2,112,800 1,567,500 $ (545,300) Department Total $ 77,435,650 $ 80,395,450 152.50 148.75 Staffing Summary $ $ 2,959,800 (3.75) Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ Grant-funded positions eliminated (3.75) Additional earned revenue, including land sales for the Martin Luther King building project 611,250 -01,621,430 Increased capacity for the Housing Trust Fund 680,000 Contributions to School Plus Jobs 620,000 Carryforward for Pima Council on Aging program 30,000 Miscellaneous other changes (57,580) Total Operating Budget Changes (3.75) $ Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available funding Total Capital Budget Changes Total Changes -0- $ (545,300) -0- (545,300) (3.75) $ B-11 3,505,100 2,959,800 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Development Services FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds FY 2008 Adopted Change $ 11,122,740 $ 12,592,510 $ 1,469,770 $ 11,122,740 $ 12,592,510 $ 1,469,770 Total Operating Budget Capital Budget General Fund: Restricted $ 305,000 $ 215,000 $ (90,000) Total Capital Budget $ 305,000 $ 215,000 $ (90,000) Department Total $ 11,427,740 $ 12,807,510 $ Staffing Summary 123.00 120.00 1,379,770 (3.00) Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ Position transferred from Neighborhood Resources already funded by Development Services 1.00 Positions transferred to Urban Planning and Design (4.00) 210,770 -0(289,880) Capacity for Accounting change that treats the indirect cost allocation as an expense 1,498,880 Capacity for City Manager efficiency efforts if revenues become available 250,000 Reduction in carryforward from Fiscal Year 2006 (200,000) Total Operating Budget Changes (3.00) $ 1,469,770 Capital Budget Changes Adjustment to project budget based on scheduled implementation and available funding Total Capital Budget Changes -0- Total Changes $ (90,000) $ (90,000) (3.00) $ B-12 1,379,770 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Environmental Services FY 2007 Adopted Financial Summary Operating Budget Environmental Services Revenues Other Restricted Funds Total Operating Budget Capital Budget Environmental Services Revenues General Obligation Bonds Other Restricted Funds FY 2008 Adopted Change $ 37,053,740 $ 910,500 42,877,700 $ 591,500 $ 5,823,960 (319,000) $ 37,964,240 43,469,200 $ 5,504,960 150,000 $ 3,665,000 8,424,000 150,000 766,000 6,923,000 $ $ -0- $ 2,899,000 1,501,000 Total Capital Budget $ 4,400,000 $ 12,239,000 $ 7,839,000 Department Total $ 42,364,240 $ 55,708,200 $ 13,343,960 Staffing Summary 251.00 264.00 13.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ Positions added to eliminate dependency on contracted services for collections and landfill operations 13.00 579,850 1,149,670 Realign budget for Household Hazardous Waste program from contract services to in-house labor 408,010 Increase in debt service for certificates of participation 1,578,800 Increase in capacity for equipment and software costs 900,000 Increase in indirect cost allocation for general government support 800,000 Increase in fuel costs 600,000 Miscellaneous adjustments 22,010 Decrease in contract services, including collection, and landfill operations (533,380) Total Operating Budget Changes 13.00 B-13 $ 5,504,960 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Environmental Services Adopted Change Staffing Budget Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available financing Total Capital Budget Changes Total Changes B-14 $ 7,839,000 -0- $ 7,839,000 13.00 $ 13,343,960 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Office of Equal Opportunity Programs and Independent Police Review FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Total Staffing Summary FY 2008 Adopted Change $ 757,470 $ 832,950 $ 75,480 $ 757,470 832,950 75,480 11.00 $ $ 11.00 -0- Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ 28,440 (25,960) Additional costs transferred to Non-Departmental for Americans with Disabilities (ADA) support Budget for diversity training 60,000 Increase for building rent 13,000 Total Changes -0- B-15 $ 75,480 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Finance FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Other Restricted Funds $ Department Total $ Staffing Summary FY 2008 Adopted 9,303,660 $ 1,750,000 11,053,660 164.00 $ Change 9,647,250 $ 117,340 343,590 (1,632,660) 9,764,590 (1,289,070) $ 152.00 (12.00) Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ Additional staff to oversee Wellness Program (previously funded) Real Estate Division transferred to Transportation 1.00 (13.00) 234,320 -0(61,890) Capacity for accounting change that expense cost allocations 385,220 MacArthur building maintenance transferred to General Services (96,720) Transfer of Tax Revenue Management System project to Non-Departmental (1,750,000) Total Changes (12.00) $ B-16 (1,289,070) Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Fire FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds Total Operating Budget Capital Budget General Obligation Bonds Other Restricted Funds FY 2008 Adopted Change $ 69,663,690 $ 911,880 3,092,690 77,240,780 $ 2,874,440 2,532,540 7,577,090 1,962,560 (560,150) $ 73,668,260 82,647,760 8,979,500 $ $ 2,639,300 $ 7,600,000 $ 2,183,100 $ 16,522,200 (456,200) 8,922,200 Total Capital Budget $ 10,239,300 $ 18,705,300 $ 8,466,000 Department Total $ 83,907,560 $ 101,353,060 $ 17,445,500 Staffing Summary Commissioned Civilian 632.00 62.00 674.00 67.00 42.00 5.00 Total Staffing 694.00 741.00 47.00 Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan $ Additional grant capacity, including $2 million for an Urban Area Security Initiative grant 2,762,170 1,962,560 Increase to Financial Sustainability Plan funding 47.00 4,835,000 Reduction in carryforward from Fiscal Year 2006 (580,230) Total Operating Budget Changes 47.00 $ 8,979,500 $ 8,466,000 -0- $ 8,466,000 47.00 $ 17,445,500 Capital Budget Changes Adjustments to project budgets based on scheduled implementation of Fire Central Total Capital Budget Changes Total Changes B-17 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget General Services FY 2007 Adopted FY 2008 Adopted Change Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds $ 11,975,350 $ 500,000 932,000 12,001,650 $ 500,000 6,573,210 26,300 -05,641,210 Department Total $ 13,407,350 19,074,860 5,667,510 Staffing Summary 345.00 $ $ 340.00 (5.00) Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ Net change due to position transfers: one position to City Manager and one position from Environmental Services Positions transferred to Parks and Recreation for custodial services (already funded in Parks and Recreation) 313,180 (61,810) (5.00) -0- MacArthur Building maintenance expenses, including a transfer from Finance 154,720 Metropolitan Energy Commission support transferred from Non-Departmental 14,420 Capacity transferred to Debt Service for financing of remodel expenses (128,000) Reduction in carryforward from Fiscal Year 2006 (625,000) Carryforward from Fiscal Year 2007 for the heating and cooling loop project Total Changes 6,000,000 (5.00) $ B-18 5,667,510 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Tucson City Golf FY 2007 Adopted Financial Summary Operating Budget Other Restricted Funds FY 2008 Adopted Change $ 10,908,050 $ 11,063,820 $ 155,770 $ 10,908,050 $ 11,063,820 $ 155,770 Total Operating Budget Capital Budget Other Restricted Funds $ 70,000 $ -0- $ (70,000) Total Capital Budget $ 70,000 $ -0- $ (70,000) Department Total $ 10,978,050 $ 11,063,820 $ 85,770 Staffing Summary 154.75 154.75 -0- Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan Total Operating Budget Changes -0- Capital Budget Changes Projects completed in Fiscal Year 2007 $ 155,770 $ 155,770 $ (70,000) Total Capital Budget Changes -0- $ (70,000) Total Changes -0- $ 85,770 B-19 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Human Resources FY 2007 Adopted FY 2008 Adopted Change Financial Summary Operating Budget General Purpose Funds $ 2,701,950 $ 2,904,190 $ 202,240 Department Total $ 2,701,950 2,904,190 202,240 Staffing Summary 27.00 $ $ 28.00 1.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ One position transferred from Tucson Water 1.00 78,270 85,460 High school intern program 18,990 Miscellaneous adjustments 19,520 Total Changes 1.00 B-20 $ 202,240 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Information Technology FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds Total Operating Budget Capital Budget Other Restricted Funds Total Capital Budget $ Department Total Staffing Summary FY 2008 Adopted $ 13,583,190 $ 300,000 2,103,920 15,987,110 $ $ $ 16,860,000 $ 16,860,000 $ $ 32,847,110 100.16 $ Change 13,896,460 $ 300,000 528,730 14,725,190 $ 313,270 -0(1,575,190) (1,261,920) 4,000,000 $ (12,860,000) 4,000,000 $ (12,860,000) 18,725,190 $ (14,121,920) 100.16 -0- Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan $ Software maintenance for hosting the Employee University 60,000 Completion of the VoIP system (Voice over Internet Protocol) Total Operating Budget Changes 328,080 (1,650,000) -0- Capital Budget Changes Adjustments to project budgets based on scheduled implementation $ (1,261,920) $ (12,860,000) Total Capital Budget Changes -0- $ (12,860,000) Total Changes -0- $ (14,121,920) B-21 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Neighborhood Resources FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Other Restricted Funds FY 2008 Adopted Change $ 3,275,780 $ 101,600 4,207,460 $ 241,600 4,449,060 Total Operating Budget Capital Budget General Purpose Funds Federal Funds Other Restricted Funds $ 3,377,380 $ 550,000 $ 3,907,500 4,000,000 450,000 $ 3,680,400 3,300,000 Total Capital Budget $ 8,457,500 $ 7,430,400 $ Department Total $ 11,834,880 $ 11,879,460 $ Staffing Summary 53.00 $ $ 62.00 931,680 140,000 1,071,680 (100,000) (227,100) (700,000) (1,027,100) 44,580 9.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ 143,680 Positions added to improve customer service 9.00 488,000 Position added in Fiscal Year 2007 for code enforcement administration 1.00 130,000 Position transferred to Development Services and funding used for direct customer service positions (1.00) (78,000) Increased funding for graffiti abatement 180,000 Code enforcement remediation, including disposal fees and property board-ups 168,000 Increase in Youth Funding 40,000 Total Operating Budget Changes 9.00 $ 1,071,680 $ (1,027,100) -0- $ (1,027,100) 9.00 $ Capital Budget Changes Adjustments to Back to Basics projects based on scheduled implementation Total Capital Budget Changes Total Changes B-22 44,580 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Parks and Recreation FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds Total Operating Budget Capital Budget General Obligation Bonds Impact Fee Funds Other Restricted Funds FY 2008 Adopted $ 45,404,290 $ 581,590 1,235,460 $ 47,221,340 $ 3,528,700 $ 775,000 19,566,900 Change 48,000,260 $ 598,630 1,109,940 $ 49,708,830 $ 3,860,900 $ 4,671,300 15,096,500 Total Capital Budget $ 23,870,600 $ 23,628,700 $ Department Total $ 71,091,940 $ 73,337,530 $ 711.00 749.50 Staffing Summary 2,595,970 17,040 (125,520) 2,487,490 332,200 3,896,300 (4,470,400) (241,900) 2,245,590 38.50 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ 821,270 Position added to support extended Zoo hours 1.00 33,700 Positions transferred from General Services; funded from existing maintenance budget 5.00 -0- Increase to Financial Sustainability Plan funding 32.50 1,800,000 Reduction in grants and contributions (125,520) Miscellaneous other changes (41,960) Total Operating Budget Changes 38.50 Capital Budget Changes Increase to Impact Fee projects and capacity $ 2,487,490 $ 3,896,300 Adjustments to project budgets based on scheduled implementation and available funding (4,138,200) Total Capital Budget Changes Total Changes B-23 -0- $ 38.50 $ (241,900) 2,245,590 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Police FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds FY 2008 Adopted Change $ 137,634,020 $ 148,161,610 $ 5,516,110 15,141,670 6,589,310 7,363,370 Total Operating Budget Capital Budget Other Restricted Funds $ 149,739,440 $ 170,666,650 10,527,590 9,625,560 774,060 $ 20,927,210 $ 18,748,600 $ 26,602,800 $ 7,854,200 Total Capital Budget $ 18,748,600 $ 26,602,800 $ 7,854,200 Department Total $ 168,488,040 $ 197,269,450 $ 28,781,410 Staffing Summary Commissioned Civilian 1,071.00 397.00 1,112.00 413.00 41.00 16.00 Total Staffing 1,468.00 1,525.00 57.00 Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan $ Capacity for an Urban Area Security Initiative grant 5,459,110 8,000,000 Increase to Financial Sustainability Plan funding 54.00 5,200,000 Capacity for additional federal and state grants 2,097,310 Increase for impound fee program 3.00 500,000 Transfer of pension board support to Finance (139,210) Reduction in carryforward from Fiscal Year 2006 (190,000) Total Operating Budget Changes 57.00 $ 20,927,210 $ 7,854,200 -0- $ 7,854,200 57.00 $ 28,781,410 Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available funding Total Capital Budget Changes Total Changes B-24 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Procurement FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Other Restricted Funds Department Total Staffing Summary FY 2008 Adopted Change $ 3,751,190 $ 90,330 3,764,560 $ 140,330 13,370 50,000 $ 3,841,520 3,904,890 63,370 64.00 $ $ 64.00 -0- Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan $ 21,370 Increase for online auction expenses; recovered through auction revenues 50,000 Capacity for accounting changes that expense cost allocations 47,000 Reduction in carryforward from Fiscal Year 2006 (55,000) Total Changes -0- B-25 $ 63,370 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Office of the Public Defender FY 2007 Adopted FY 2008 Adopted Change Financial Summary Operating Budget General Purpose Funds $ 3,000,810 $ 3,190,910 $ 190,100 Department Total $ 3,000,810 3,190,910 190,100 Staffing Summary 38.00 $ $ 38.00 -0- Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan $ Increase to Financial Sustainability Plan funding 128,900 61,200 Total Changes -0- B-26 $ 190,100 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Transportation FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds $ FY 2008 Adopted 57,397,450 $ 6,985,310 39,911,210 Change 59,639,610 $ 5,351,880 43,095,990 Total Operating Budget Capital Budget General Purpose Funds Federal Funds General Obligation Bonds Street and Highway Bonds Non-City Funds Other Restricted Funds $ 104,293,970 Total Capital Budget $ 129,178,300 $ 167,836,900 $ 38,658,600 Department Total $ 233,472,270 $ 275,924,380 $ 42,452,110 404.50 416.50 $ Staffing Summary $ 108,087,480 $ 2,242,160 (1,633,430) 3,184,780 3,286,800 $ 4,206,300 $ 45,724,000 56,571,900 11,632,200 5,596,200 85,300 63,200 350,000 -068,100,000 101,399,300 3,793,510 919,500 10,847,900 (6,036,000) (22,100) (350,000) 33,299,300 12.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ Real Estate Division transferred from Finance 13.00 497,600 735,210 Position costs no longer billable to capital improvement projects 258,290 Direct charge of two City Magistrate positions for parking violations 115,520 Position transferred to Neighborhood Resources (1.00) Increase to Financial Sustainability Plan funding (139,100) 3,400,000 Building maintenance increase based on Fiscal Year 2007 trends 570,000 Shuttle service for the 2008 Gem Show; expenses to be reimbursed 500,000 Local Transportation Assistance funding increase 404,960 B-27 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Transportation Adopted Change Staffing Budget Operating Budget Changes (Continued) Increased funding for sub-recipient federal grants $ 268,820 Delay Federal Transit Administration projects (1,363,960) Reduction in carryforward from Fiscal Year 2006 (1,453,830) Total Operating Budget Changes 12.00 Capital Budget Changes Adjustments to project budgets based on scheduled implementation and available funding $ 3,793,510 $ 39,328,700 Regional Transportation Authority projects (5,556,000) Impact Fee projects and capacity 4,885,900 Total Capital Budget Changes Total Changes B-28 -0- $ 38,658,600 12.00 $ 42,452,110 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Tucson Convention Center FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Other Restricted Funds Department Total Staffing Summary FY 2008 Adopted Change $ 10,219,320 $ 641,000 6,714,120 $ 641,000 (3,505,200) -0- $ 10,860,320 7,355,120 (3,505,200) 63.75 $ $ 63.75 -0- Adopted Change Staffing Budget Operating Budget Changes Adjustments to salaries and benefits based on the compensation plan $ Increase in District Heating and Cooling expenses 54,080 144,400 Lease payment to Rio Nuevo transferred to Non-Departmental (3,703,680) Total Changes -0- B-29 $ (3,505,200) Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Tucson Water FY 2007 Adopted Financial Summary Operating Budget Water Revenue and Operations Fund Other Restricted Funds FY 2008 Adopted Change $ 111,725,350 $ 122,430,010 $ 2,123,000 2,172,990 Total Operating Budget Capital Budget Water Revenue and Operations Fund Water Revenue Bonds Water Infrastructure Finance Authority (WIFA) Other Restricted Funds $ 113,848,350 $ 124,603,000 $ $ 29,723,000 29,900,900 -0710,000 10,704,660 49,990 $ 10,754,650 21,226,000 $ 40,125,800 5,454,100 643,000 (8,497,000) 10,224,900 5,454,100 (67,000) Total Capital Budget $ 60,333,900 $ 67,448,900 $ Department Total $ 174,182,250 $ 192,051,900 $ 17,869,650 573.00 578.00 5.00 0 Staffing Summary 7,115,000 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ Positions added and charged to Capital Improvement Program 5.00 945,960 -0- Increase in Central Arizona Project charges 3,797,060 Increase in debt service on revenue bonds 3,327,490 Increase in energy costs for water recharge and recovery 1,989,350 Increase in contractual requirements for water resources management 550,000 Increase for postage and the outsourcing of bill printing 516,550 Increase due to transfer of projects previously budgeted within Capital Improvement Plan 373,970 Increase in indirect cost allocation for general government support 270,330 Miscellaneous adjustments 244,440 B-30 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Tucson Water Adopted Change Staffing Budget Operating Budget Changes (Continued) Decrease due to transfer of Regional Transportation Authority project costs to the Capital Improvement Program Total Operating Budget Changes $ (1,260,500) $ 10,754,650 $ 7,115,000 -0- $ 7,115,000 5.00 $ 17,869,650 5.00 Capital Budget Changes Increase to reflect the requirements related to South Avra Valley Storage and Recovery facility, expediting the ability to recharge the full allocation of Central Arizona Project water. Total Capital Budget Changes Total Changes B-31 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Urban Planning and Design FY 2007 Adopted FY 2008 Adopted Change Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds $ 3,678,530 $ 390,000 298,530 4,171,250 $ 460,000 465,550 492,720 70,000 167,020 Department Total $ 4,367,060 5,096,800 729,740 Staffing Summary 37.00 $ $ 41.00 4.00 Adopted Change Staffing Budget Operating Budget Changes Personnel Adjustments to salaries and benefits based on the compensation plan $ Positions transferred from Development Services 4.00 102,960 289,880 Increase in grant capacity 240,000 Increase for building rent 100,000 Miscellaneous other changes (3,100) Total Changes 4.00 B-32 $ 729,740 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Non-Departmental FY 2007 Adopted Financial Summary Operating Budget General Purpose Funds Federal Funds Other Restricted Funds $ FY 2008 Adopted 43,875,890 756,330 96,469,000 $ 5,027,050 (1,661,130) 36,589,750 $ 141,101,220 $ 39,955,670 $ 1,159,600 $ 3,200,100 $ 2,040,500 Total Capital Budget $ 1,159,600 3,200,100 $ 2,040,500 Department Total $ 102,305,150 $ 144,301,320 $ 41,996,170 14.75 4.00 Total Operating Budget Capital Budget Other Restricted Funds 38,848,840 $ 2,417,460 59,879,250 Change $ 101,145,550 Staffing Summary $ (10.75) Adopted Change Staffing Budget Operating Budget Changes Personnel Positions transferred to City Manager's Office for Downtown Development (Rio Nuevo) (5.00) $ -0- Positions transferred from the City to Tucson Regional Economic Opportunities (TREO) (5.00) -0- Position deleted (0.75) -0- Capacity adjustments for Pension Fund and Risk Management Fund as required by the State Auditor General and GASB (General Accounting Standards Board) 55,000,000 Increase for debt service payments, primarily on certificates of participation 6,883,630 Lease payment to Rio Nuevo for Tucson Convention Center facilities 3,774,310 Increase for retiree medical costs 892,680 Increase for required contractual property requirements 805,000 Increase for jail charge costs 625,000 Contribution to the Tucson Conquistadors' First Tee education facility 100,000 Increased contribution to the Metropolitan Education Commission 38,000 Capacity for contribution to Skrappy's rent 24,000 Decrease in Library contribution to Pima County (2,000,000) Distribution of human capital set-aside to departments (9,668,770) Adjustments for capacity offsets (16,518,180) Total Operating Budget Changes (10.75) $ B-33 39,955,670 Change from Fiscal Year 2007 Adopted to Fiscal Year 2008 Adopted Budget Non-Departmental Adopted Change Staffing Budget Capital Budget Changes Adjustments to project budgets based on scheduled implementation Total Capital Budget Changes $ 2,040,500 $ 2,040,500 (10.75) $ 41,996,170 -0- Total Changes B-34 Position Changes for the Fiscal Year 2008 Budget FY 2007 FY 2008 Adopted Elected and Official Neighborhood Services Environmental and Development Strategic Initiatives Support Services Non-Departmental Total Adopted Change 223.50 3,432.55 1,388.50 63.75 724.71 14.75 253.50 3,589.80 1,419.50 63.75 702.16 4.00 30.00 157.25 31.00 -0(22.55) (10.75) 5,847.76 6,032.71 184.95 Position Change Detail Permanent Financial Sustainability Plan Changes Elected and Official City Attorney Assistant City Attorney Court Clerk Non-Permanent Total Change 0.50 3.00 -0-0- 0.50 3.00 3.50 -0- 3.50 Total Elected and Official 3.50 -0- 3.50 Neighborhood Services City Court City Magistrate Court Clerk 1.00 8.00 -0-0- 1.00 8.00 Sub-Total 9.00 -0- 9.00 7.00 1.00 7.00 1.00 21.00 2.00 1.00 7.00 -0-0-0-0-0-0-0-0- 7.00 1.00 7.00 1.00 21.00 2.00 1.00 7.00 47.00 -0- 47.00 9.00 1.00 2.00 1.00 -0-0-0-0- 9.00 1.00 2.00 1.00 Sub-Total Fire Fire Captain Fire Captain: Eight Hour Fire Engineer: Suppression Rate Fire Equipment Specialist Fire Fighter Fire Prevention Inspector Information Technology Specialist Paramedic Sub-Total Parks and Recreation Groundskeeper Lead Groundskeeper Recreation Assistant Recreation Program Coordinator B-35 Position Changes for the Fiscal Year 2008 Budget Permanent Neighborhood Services (Continued) Parks and Recreation (Continued) Recreation Worker Senior Recreation Worker Trade Specialist Sub-Total Police Clerk Transcriptionist Crime Scene Specialist Detective Police Crime Analyst Police Evidence Technician Police Officer Police Records Specialist Police Sergeant Police Service Operator Secretary Senior Criminalist Storekeeper Systems Analyst Sub-Total Total Neighborhood Services Total Financial Sustainability Plan Changes Non-Permanent Total Change -00.50 3.00 12.75 3.25 -0- 12.75 3.75 3.00 16.50 16.00 32.50 2.00 1.00 5.00 1.00 1.00 30.00 2.00 5.00 3.00 1.00 1.00 1.00 1.00 -0-0-0-0-0-0-0-0-0-0-0-0-0- 2.00 1.00 5.00 1.00 1.00 30.00 2.00 5.00 3.00 1.00 1.00 1.00 1.00 54.00 -0- 54.00 126.50 130.00 16.00 16.00 142.50 146.00 Other Changes Elected and Official City Clerk Election Specialist Election Technician Information Technology Manager Management Assistant Secretary: Assignment Secretary Senior Election Technician Sub Total B-36 -0-01.00 (1.00) 6.00 (6.00) -0- 2.00 4.50 -0-0-01.00 13.00 2.00 4.50 1.00 (1.00) 6.00 (5.00) 13.00 -0- 20.50 20.50 Position Changes for the Fiscal Year 2008 Budget Permanent Non-Permanent Total Change Other Changes City Manager Assistant to the City Manager General Services Administrator Rio Nuevo Community Outreach Officer Rio Nuevo Project Director Special Projects Coordinator/City Manager's Office Staff Assistant Sub-Total Total Elected and Official 1.00 1.00 1.00 1.00 1.00 1.00 -0-0-0-0-0-0- 1.00 1.00 1.00 1.00 1.00 1.00 6.00 -0- 6.00 6.00 20.50 26.50 Neighborhood Services City Court Court Clerk Probation Officer Senior Court Clerk Special Magistrate (1.00) 1.00 2.00 (1.50) -0-0-0-0- (1.00) 1.00 2.00 (1.50) Sub-Total 0.50 -0- 0.50 1.00 (2.00) 1.00 (0.50) (1.00) 1.00 (0.75) (0.75) 1.00 (1.00) (2.00) -0-0-0-0-0-00.25 -0-0-0-0- 1.00 (2.00) 1.00 (0.50) (1.00) 1.00 (0.50) (0.75) 1.00 (1.00) (2.00) (4.00) 0.25 (3.75) (1.00) (3.00) 1.00 3.00 -0-0-0-0- (1.00) (3.00) 1.00 3.00 -0- -0- -0- Community Services Accountant Community Services Project Coordinator Community Services Project Supervisor Fleet Services Attendant Housing Assistance Supervisor Management Assistant Office Assistant Recreation Program Coordinator Senior Accountant/Auditor Senior Account Clerk Staff Assistant Sub-Total Fire Building Permit Specialist Fire Prevention Inspector Fire Protection Plans Examiner Public Safety Education Specialist Sub-Total B-37 Position Changes for the Fiscal Year 2008 Budget Permanent Non-Permanent Total Change Other Changes Neighborhood Resources Customer Service Clerk Customer Service Representative Deputy Director of Neighborhood Resources Development Services/Neighborhood Resources Section Manager Environmental Services Equipment Operator Housing Assistant Supervisor Housing Assistance and Outreach Coordinator Staff Assistant Sub-Total Office of Equal Opportunity Programs and Independent Police Review Equal Opportunity Specialist Secretary Sub-Total Parks and Recreation Administrative Assistant Capital Planning and Development Manager Custodian Management Coordinator Recreation Assistant Recreation Program Coordinator Secretary Zookeeper Sub-Total Police Police Records Specialist Police Sergeant: Assignment Sub-Total Total Neighborhood Services Environment and Development Development Services Customer Service Clerk Lead Planner Planning Technician Principal Planner Sub-Total B-38 (1.00) 5.00 1.00 (1.00) -0-0-0-0- (1.00) 5.00 1.00 (1.00) 4.00 (1.00) 1.00 1.00 -0-0-0-0- 4.00 (1.00) 1.00 1.00 9.00 -0- 9.00 1.00 (1.00) -0-0- 1.00 (1.00) -0- -0- -0- 1.00 1.00 5.00 (1.00) (1.00) 1.00 (1.00) -0- -0-0-0-0-0-0-01.00 1.00 1.00 5.00 (1.00) (1.00) 1.00 (1.00) 1.00 5.00 1.00 6.00 2.00 1.00 -0-0- 2.00 1.00 3.00 -0- 3.00 13.50 1.25 14.75 1.00 (2.00) (1.00) (1.00) -0-0-0-0- 1.00 (2.00) (1.00) (1.00) (3.00) -0- (3.00) Position Changes for the Fiscal Year 2008 Budget Permanent Non-Permanent Total Change Other Changes Environmental Services Administrative Assistant Civil Engineer Customer Service Representative Department Human Resources Supervisor Director of Environmental Services Electrician Environmental Inspector Environmental Scientist Environmental Services Accounts Representative Environmental Services Administrator Environmental Services Equipment Operator Environmental Services Inspection Supervisor Environmental Services Worker Equipment Operation Specialist GIS Data Analyst GIS Supervisor Hydrologist Management Analyst Management Assistant Office Supervisor Painter Principal Planner Public Information Officer Public Information Specialist Senior Account Clerk Senior Engineering Associate Senior Environmental Services Worker Staff Assistant Technological Intern Utility Service Representative Water Services Supervisor Welder Sub-Total Transportation Cement Mason Customer Service Clerk Customer Service Representative Deputy Director of Transportation B-39 3.00 2.00 4.00 1.00 1.00 (1.00) 1.00 2.00 1.00 (1.00) (3.00) 1.00 11.00 1.00 2.00 1.00 1.00 (2.00) (1.00) (2.00) (1.00) (1.00) 1.00 (1.00) (1.00) (2.00) (2.00) 1.00 (4.00) (1.00) 1.00 1.00 -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0- 3.00 2.00 4.00 1.00 1.00 (1.00) 1.00 2.00 1.00 (1.00) (3.00) 1.00 11.00 1.00 2.00 1.00 1.00 (2.00) (1.00) (2.00) (1.00) (1.00) 1.00 (1.00) (1.00) (2.00) (2.00) 1.00 (4.00) (1.00) 1.00 1.00 13.00 -0- 13.00 1.00 1.00 1.00 (1.00) -0-0-0-0- 1.00 1.00 1.00 (1.00) Position Changes for the Fiscal Year 2008 Budget Permanent Non-Permanent Total Change Other Changes Transportation (Continued) Engineering Associate Engineering Manager Engineering Project Manager Engineering Support Section Supervisor Environmental Inspector Equipment Operation Specialist Heavy Equipment Operator Information Technology Specialist Inspection Supervisor Management Assistant Office Assistant Property Agent Property Manager Real Estate Program Coordinator Review Appraiser Secretary Senior Account Clerk Senior Accountant Senior Storekeeper Senior Street Maintenance Worker Storekeeper Streets Inspector and Compliance Specialist Streets Maintenance Supervisor Survey Supervisor Systems Analyst Trade Specialist Transportation Project Coordinator Sub-Total Tucson Water Administrative Assistant Chief Hydrologist Civil Engineer Construction Inspector Customer Service Representative Data Base Administrator Engineering Associate Environmental Inspector Environmental Scientist Equal Opportunity Specialist Equipment Operation Specialist B-40 (1.00) 1.00 (1.00) (1.00) (4.00) (1.00) 1.00 2.00 1.00 1.00 (2.00) 3.00 2.00 4.00 1.00 (1.00) 2.00 1.00 2.00 (1.00) (2.00) 4.00 1.00 (1.00) 1.00 (1.00) (1.00) -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0- (1.00) 1.00 (1.00) (1.00) (4.00) (1.00) 1.00 2.00 1.00 1.00 (2.00) 3.00 2.00 4.00 1.00 (1.00) 2.00 1.00 2.00 (1.00) (2.00) 4.00 1.00 (1.00) 1.00 (1.00) (1.00) 12.00 -0- 12.00 1.00 (1.00) 1.00 3.00 (1.00) 2.00 2.00 1.00 (1.00) (1.00) 1.00 -0-0-0-0-0-0-0-0-0-0-0- 1.00 (1.00) 1.00 3.00 (1.00) 2.00 2.00 1.00 (1.00) (1.00) 1.00 Position Changes for the Fiscal Year 2008 Budget Permanent Non-Permanent Total Change Other Changes Water (Continued) Fleet Services Supervisor GIS Programmer Information Technology Specialist Lead Utility Service Worker Maintenance Mechanic/Electrical Supervisor Management Assistant Management Coordinator Office Assistant Office Supervisor Senior Account Clerk Senior Utility Service Worker Staff Assistant Utility Service Representative Water Administrator Water Quality Analyst Welder Well Maintenance Mechanic Sub-Total Urban Planning and Design Lead Planner Planning Technician Principal Planner Sub-Total Total Environmental and Development Support Services Budget and Research Budget Coordinator Deputy Director of Budget and Research Lead Budget Analyst Office Assistant Organizational Development Manager Staff Assistant Sub-Total B-41 1.00 (2.00) 1.00 4.00 (1.00) 1.00 1.00 (1.00) (1.00) 2.00 (5.00) (1.00) (1.00) 1.00 1.00 (1.00) (1.00) -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0- 1.00 (2.00) 1.00 4.00 (1.00) 1.00 1.00 (1.00) (1.00) 2.00 (5.00) (1.00) (1.00) 1.00 1.00 (1.00) (1.00) 5.00 -0- 5.00 2.00 1.00 1.00 -0-0-0- 2.00 1.00 1.00 4.00 -0- 4.00 31.00 -0- 31.00 (1.00) (1.00) (2.00) (0.55) (1.00) (1.00) -0-0-0-0-0-0- (1.00) (1.00) (2.00) (0.55) (1.00) (1.00) (6.55) -0- (6.55) Position Changes for the Fiscal Year 2008 Budget Permanent Non-Permanent Total Change Other Changes Finance Management Assistant Property Agent Property Manager Real Estate Program Coordinator Review Appraiser Risk Management Specialist Secretary Systems Analyst Sub-Total General Services Administrative Assistant Custodian General Services Administrator Management Assistant Management Coordinator Sub-Total Human Resources Equal Opportunity Specialist Human Resources Analyst Lead Human Resources Analyst Sub-Total Information Technology Television Production Specialist Television Program Development Specialist Sub-Total Procurement Account Clerk Supervisor Administrative Assistant Sub-Total Total Support Services B-42 (1.00) (3.00) (2.00) (4.00) (1.00) 1.00 (1.00) (1.00) -0-0-0-0-0-0-0-0- (1.00) (3.00) (2.00) (4.00) (1.00) 1.00 (1.00) (1.00) (12.00) -0- (12.00) 1.00 (7.00) (1.00) 1.00 1.00 -0-0-0-0-0- 1.00 (7.00) (1.00) 1.00 1.00 (5.00) -0- (5.00) 1.00 (1.00) 1.00 -0-0-0- 1.00 (1.00) 1.00 1.00 -0- 1.00 1.00 1.00 (2.00) -0- (1.00) 1.00 2.00 (2.00) -0- (1.00) 1.00 -0-0- (1.00) 1.00 -0- -0- -0- (20.55) (2.00) (22.55) Position Changes for the Fiscal Year 2008 Budget Permanent Non-Permanent Total Change Other Changes Non-Departmental General Expense Administrative Assistant Economic Development Specialist Management Assistant Project Manager Rio Nuevo Project Director Secretary Special Projects Coordinator/City Manager's Office Staff Assistant Tucson-Mexico Program Director Sub-Total Total Other Changes Total Position Changes B-43 (2.00) (2.00) (1.00) (1.00) (1.00) (1.00) (0.75) (1.00) (1.00) -0-0-0-0-0-0-0-0-0- (2.00) (2.00) (1.00) (1.00) (1.00) (1.00) (0.75) (1.00) (1.00) (10.75) -0- (10.75) 19.20 19.75 38.95 149.20 35.75 184.95 B-44 City of Tucson Section C Legal Authorization Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget 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 any 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). 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 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. 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. State law (ARS §42-17104, §42-17105) specifies that fourteen or more days prior to the date the property tax levy is adopted, the city or town council must adopt the final budget for the fiscal year by roll call vote at a special meeting called for that purpose. State law requires adoption of the tax levy on or before the third Monday in August. The adopted budget then becomes the amount proposed for expenditure in the upcoming fiscal year and shall not exceed the total amount proposed for expenditure in the published estimates (ARS §42-17106). Once adopted, no expenditures shall be made for a purpose not included in the budget, and no expenditures shall be made in excess of the amounts specified for each purpose in the budget, except as provided by law. This restriction applies whether or not the city has at any time received, or has on hand, funds or revenue in excess 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 C-1 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 February 10 of the tax year, 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 on or before 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 spending limitation. The tax levy for the city must be adopted on or before the third Monday in August (ARS §42-17151). The tax levy must be specified in an ordinance adopted by the Mayor and Council. The levy is for both the primary and secondary tax. LEGAL REQUIREMENTS IMPOSED BY THE CITY CHARTER Budget Revisions Legal requirements of the Tucson City Charter related to limiting property taxes and scheduling of budget adoption are more restrictive than state law. 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: Property Tax Levy Limitation 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. 1) Elected and Official 2) Neighborhood Services 3) Environment and Development 4) Strategic Initiatives 5) Support Services 6) Non-Departmental Fiscal Year The fiscal year of the city begins the first day of July of each year. (Tucson City Charter, Chapter XIII, Section 1) C-2 Submission of the Adopted Budget 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. 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 adopted 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 XIII, 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 XIII, 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 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 XIII, 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 XIII, 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 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. Cost of Development 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 will 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 2007 AND 2008 Adopted FY 2007 Levy Property Tax Primary $ Secondary Total $ Actual FY 2007 Levy 9,733,050 $ 2 9,684,390 $ 10,327,380 26,681,580 28,022,940 36,541,710 $ 36,365,970 $ 38,350,320 Primary Secondary 1 FY 2008 Levy 26,808,660 Actual FY 2007 Rate Property Tax FY 2008 Maximum Levy Amount $ 3 10,327,380 Amount of Levy Increase/ (Decrease) 1 $ 28,022,940 $ 38,350,320 Amount Rate Increase/ (Decrease) Estimated FY 2008 Rate 4 $ Percentage Levy Increase/ (Decrease) 642,990 6.6% 1,341,360 5.0% 1,984,350 5.5% 2 Percentage Rate Increase/ (Decrease) $ 0.3411 0.8846 $ 0.3296 0.8025 $ (0.0115) (0.0821) (3.4%) (9.3%) Total $ 1.2257 $ 1.1321 $ (0.0936) (7.6%) The primary property tax levy is shown at the estimated maximum possible amount. The actual maximum amount may be less. The primary property tax levy is limited to an increase of two percent over the previous year's maximum allowable primary levy plus an increased dollar amount due to a net gain in property not taxed in the previous year. The net new property factor is included in the calculation to take into account all new construction and property annexed in the last year. 3 General obligation bonds in the amount of $13.3 million have been sold for Fiscal Year 2008. 4 Both of these rates may differ depending upon the final actual assessed valuations. C-6 CITY OF TUCSON PROPERTY TAX SUMMARY Taxing Jurisdiction FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Property Tax Rates (Per $100 of assessed value) State of Arizona Pima County $ 1 -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- 5.34 5.41 5.74 5.72 5.68 5.60 5.57 5.56 5.48 4.93 6.46 6.26 6.03 6.05 5.86 5.74 5.69 5.51 5.50 5.25 Pima Community College 1.18 1.19 1.37 1.56 1.55 1.53 1.49 1.34 1.31 1.25 Flood Control District 0.33 0.32 0.30 0.30 0.35 0.35 0.35 0.35 0.37 0.37 Fire District 0.05 0.05 0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.04 Central Arizona Project (CAP) Conservation District 0.14 0.14 0.14 0.13 0.13 0.13 0.12 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 $ 13.50 $ 13.37 $ 13.63 $ 13.81 $ 13.62 $ 13.39 $ 13.26 $ 12.92 $ 12.82 $ 11.96 0.99 0.96 1.02 1.13 1.12 1.12 1.16 1.18 1.24 1.23 $ 14.49 $ 14.33 $ 14.65 $ 14.94 $ 14.74 $ 14.51 $ 14.42 $ 14.10 $ 14.06 $ 13.19 (4.5%) (1.1%) 2.2% 2.0% (1.3%) (1.6%) (0.6%) (2.2%) (0.3%) (6.2%) Assessed Valuation 1 2 3 Primary (billions) $ 1.727 $ 1.830 $ 1.887 $ 1.999 $ 2.088 $ 2.203 $ 2.344 $ 2.477 $ 2.641 $ 2.839 Secondary (billions) $ 1.819 $ 1.904 $ 1.945 $ 2.049 $ 2.138 $ 2.269 $ 2.427 $ 2.558 $ 2.723 $ 3.016 Includes the Education Assistance rate ($0.00 in Fiscal Year 2007). Tucson Unified School District tax levy reflects State Aid to Education reduction ($2.14 in Fiscal Year 2007). Does not include any special assessment districts. City of Tucson's Share of Residential Property Owner Tax Valuation Fiscal Year 2007 Property Taxes Pima County1 41% City of Tucson 9% CAP Conservation District 1% Pima Community College 9% Tucson Unified School District2 40% Tax Rate Per $1,000 1 Pima County Tucson Unified School District2 $ Pima Community College Central Arizona Project (CAP) Conservation District Percent of Total 5.34 5.25 1.25 41% 40% 9% 0.12 1% Sub-Total City of Tucson $ 11.96 1.23 91% 9% Total $ 13.19 100% 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 ADOPTED BY THE MAYOR AND COUNCIL _______June 12, 2007_____ RESOLUTION NO. 20686 RELATING TO FINANCE; FINALLY DETERMINING AND ADOPTING ESTIMATES OF PROPOSED EXPENDITURES BY THE CITY OF TUCSON FOR THE FISCAL YEAR BEGINNING JULY 1, 2007 AND ENDING JUNE 30, 2008, DECLARING THAT TOGETHER SAID EXPENDITURES SHALL CONSTITUTE THE BUDGET OF THE CITY OF TUCSON FOR SUCH FISCAL YEAR. WHEREAS, pursuant to the provisions of the laws of the State of Arizona, and the Charter and Ordinances of the City of Tucson, the Mayor and Council are required to adopt an annual budget; and WHEREAS, the Mayor and Council have prepared and filed with the City Clerk a proposed budget for the Fiscal Year beginning July 1, 2007 and ending June 30, 2008, which was tentatively adopted on June 5, 2007 and consists of estimates of the amounts of money required to meet the public expenses for that year, an estimate of expected revenues from sources other than direct taxation and the amount needed to be raised by taxation upon real and personal property; and WHEREAS, due notice has been given by the City Clerk that this tentative budget with supplementary schedules and details is on file and open to inspection by anyone interested; and WHEREAS, publication of the estimates has been made and the public hearing at which any taxpayer could appear and be heard in favor of or against any proposed expenditure or tax levy has been duly held, and the Mayor and Council are now {A0016948.DOC/} C-9 convened in special meeting to finally determine and adopt estimates of proposed expenditures for the various purposes set forth in the published proposal, all as required by law; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF TUCSON, ARIZONA, AS FOLLOWS: SECTION 1. The Mayor and Council have finally determined the estimates of revenue and expenditures, as set forth in Schedules A, B, C, D, E, and F attached and incorporated herein by this reference, which will be required of the City of Tucson for the Fiscal Year beginning July 1, 2007 and ending June 30, 2008, and such finally determined estimates are hereby adopted as the budget of the City of Tucson for said fiscal year. SECTION 2. The Purposes of Expenditure and the amount finally determined upon for each purpose, as set forth in this section, are necessary for the conduct of the business of the government of the City of Tucson, and such amounts and purposes shall constitute the adopted Expenditure Plan for the City for the 2008 Fiscal Year: Purpose of Expenditure Final 2008 Budget Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental $ TOTAL 22,107,340 491,131,460 541,588,790 7,355,120 56,064,460 144,301,320 $ 1,262,548,490 SECTION 3. That the Purposes of Expenditure and the amount finally determined upon for each purpose as set forth in this section constitutes the portion of {A0016948.DOC/} C-10 C-11 SCHEDULE A TO RESOLUTION NO. 20686 City of Tucson Summary Schedule of Estimated Revenues and Expenditures/Expenses Fiscal Year 2007-08 FUND 1. General Fund ESTIMATED FUND REVENUES ACTUAL BALANCE/ DIRECT OTHER THAN OTHER FINANCING EXPENDITURES/ NET PROPERTY TAX PROPERTY 2007-08 EXPENSES ASSETS*** REVENUES TAXES SOURCES 2006-07** July 1, 2007** 2007-08 2007-08 Primary: $ 10,327,380 $ 484,704,400 $ 76,847,800 $ 470,941,550 $ 419,158,595 $ Secondary: 323,151,390 9,800,000 341,900,580 245,881,529 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2006-07* $ 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 2007-08 IN $ 39,291,170 $ 55,662,110 TOTAL BUDGETED FINANCIAL EXPENDITURES/ RESOURCES AVAILABLE 2007EXPENSES 08 2007-08 99,582,080 $ 8,041,140 511,588,670 $ 511,588,670 380,572,360 380,572,360 43,677,900 42,477,900 28,022,940 8,796,060 8,041,140 44,860,140 44,860,140 43,677,900 42,477,900 28,022,940 8,796,060 8,041,140 44,860,140 44,860,140 51,059,900 41,357,529 60,948,300 60,948,300 194,724,640 184,665,288 202,124,280 8,424,000 2,177,010 3,146,270 209,579,020 209,579,020 194,724,640 184,665,288 202,124,280 8,424,000 2,177,010 3,146,270 209,579,020 209,579,020 55,000,000 55,000,000 60,948,300 7. Permanent Funds 8. Enterprise Funds Available 9. Less: Designation for Future Debt Retirement 10. Total Enterprise Funds 55,000,000 11. Internal Service Funds 12. TOTAL ALL FUNDS $ 1,102,304,570 $ 933,540,841 $ $ 38,350,320 $ 1,018,776,130 $ 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 156,020,100 $ $ 160,171,430 $ 110,769,490 $ 1,262,548,490 $ 2006-07 2007-08 (Home Rule Option) $ 1,102,304,570 $ 1,262,548,490 1,102,304,570 1,262,548,490 $ 1,102,304,570 $ 1,262,548,490 $ 1,102,304,570 $ 1,262,548,490 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.). 4/07 SCHEDULE A C-12 1,262,548,490 SCHEDULE B TO RESOLUTION NO. 20686 City of Tucson Summary of Tax Levy and Tax Rate Information Fiscal Year 2007-08 2006-07 FISCAL YEAR 1. Maximum allowable primary property tax levy. A.R.S. §42-17051(A). $ 2. Amount received from primary property taxation in the 2006-07 fiscal year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18). $ 2007-08 FISCAL YEAR 9,733,050 $ 10,327,380 9,684,390 $ 10,327,380 3. Property tax levy amounts A. Primary property taxes $ B. Secondary property taxes 26,681,580 C. Total property tax levy amounts $ 36,365,970 $ 9,684,390 $ 9,684,390 28,022,940 $ 38,350,320 4. Property taxes collected* A. Primary property taxes (1) 2006-07 year's levy (2) Prior years’ levies (3) Total primary property taxes B. Secondary property taxes (1) 2006-07 year's levy (2) Prior years’ levies (3) Total secondary property taxes $ 26,681,580 $ 26,681,580 C. Total property taxes collected $ 36,365,970 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 0.3411 0.8846 1.2257 0.3296 0.8025 1.1321 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. SCHEDULE B 4/07 C-13 SCHEDULE C TO RESOLUTION NO. 20686 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2007-08 ESTIMATED REVENUES 2006-07 SOURCE OF REVENUES ACTUAL REVENUES 2006-07* ESTIMATED REVENUES 2007-08 GENERAL FUND Local taxes Business Privilege Tax Public Utility Tax Transient Occupancy Tax Room Tax Occupational Taxes Liquor Taxes Use Tax Licenses and permits Application Fees Sign Permits Parking Meter Collections Vehicle Permits 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 $ 199,500,000 7,750,000 10,210,000 2,280,000 2,470,000 810,000 5,640,000 204,700,000 7,212,000 10,850,000 2,345,000 2,143,000 805,000 6,485,000 $ 212,870,000 7,210,000 10,731,000 2,390,000 2,140,000 810,000 6,740,000 267,000 340,000 388,650 360,000 300,000 250,000 310,000 290,000 565,000 260,000 260,000 310,000 351,000 580,000 389,000 3,180,000 1,090,000 3,610,000 1,010,000 3,480,000 1,090,000 630,000 760,000 630,000 720,000 630,000 680,000 13,800,000 14,300,000 14,870,000 Intergovernmental Auto Lieu Taxes State Sales Tax State Revenue Sharing Grants-in-Aid Other 22,900,000 51,930,000 60,500,000 351,070 995,650 22,805,000 51,153,000 60,158,000 290,883 1,129,320 23,260,000 53,970,000 74,600,000 118,820 998,510 Charges for services General Government Public Safety Development Services Charges Parks and Recreation 198,920 8,201,000 11,750,000 3,540,000 289,820 7,496,000 11,750,000 3,540,000 8,615,610 8,389,000 11,380,000 3,646,000 Fines and forfeits Civil Traffic Diversion Program Civil Traffic Violations Criminal Traffic Violations Probation Fees Parking Violations Forfeitures/Assessments Other 1,900,000 940,000 6,700,000 320,000 660,000 2,169,410 2,281,200 1,727,270 653,060 5,852,310 278,440 600,970 2,470,211 2,015,930 1,760,000 670,000 5,970,000 280,000 610,000 2,184,260 2,181,590 Interest on investments Interest Earnings 1,300,000 1,400,000 900,000 SCHEDULE C 4/07 $ C-14 SCHEDULE C TO RESOLUTION NO. 20686 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2007-08 ESTIMATED REVENUES 2006-07 SOURCE OF REVENUES ACTUAL REVENUES 2006-07* ESTIMATED REVENUES 2007-08 In-lieu property taxes Contributions Miscellaneous Rentals and Leases Sale of Property Recovered Expenditures Sundry Income Other General Revenues Off Duty Police Program Other Funding Sources $ Total General Fund $ 1,829,100 1,110,000 462,000 278,000 2,000,000 3,003,260 10,569,690 $ 445,664,950 $ 2,247,100 1,123,730 477,490 256,330 $ 2,247,100 1,120,000 507,000 313,000 2,000,000 3,003,260 10,449,250 $ 484,704,400 3,002,907 6,080,473 443,283,244 * 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. SCHEDULE C 4/07 C-15 SCHEDULE C TO RESOLUTION NO. 20686 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2007-08 ESTIMATED REVENUES 2006-07 SOURCE OF REVENUES ACTUAL REVENUES 2006-07* ESTIMATED REVENUES 2007-08 SPECIAL REVENUE FUNDS Highway User Revenue Fund State Grants-in-Aid Interest Earnings Non-Revenue Receipts $ 42,468,000 520,000 1,525,000 $ 43,654,940 518,400 1,343,000 $ 45,934,000 550,000 1,586,490 Total Highway User Revenue Fund $ 44,513,000 $ 45,516,340 $ 48,070,490 $ 2,592,000 $ 2,592,000 $ 2,592,000 Total Local Transportation Assistance Fund $ 2,592,000 $ 2,592,000 $ 2,592,000 9,930,000 3,600,000 34,853,610 $ 9,471,160 3,948,840 8,468,690 $ 48,383,610 $ 21,888,690 $ 10,123,000 3,567,000 34,726,870 570,000 48,986,870 Intergovernmental Funds State Grants-in-Aid $ County/Local Pima Association of Governments Regional Transportation Authority Total Intergovernmental Funds $ 6,261,960 42,106,600 2,600,000 25,000,000 75,968,560 $ 4,848,087 16,489,466 367,000 3,683,345 25,387,898 $ Housing Assistance Funds Public Housing Local Revenue Public Housing Federal Revenue $ 2,280,000 58,049,750 $ 2,280,000 57,245,740 $ 2,280,000 58,405,650 Total Housing Assistance Funds $ 60,329,750 $ 59,525,740 $ 60,685,650 11,353,760 $ 8,580,356 $ 10,894,800 Local Transportation Assistance Fund State Grants-in-Aid Mass Transit Fund Charges for Current Services $ Local Operating Assistance Federal Grants Non-Revenue Receipts Total Mass Transit $ Other Federal Funds Community Development Block Grant Entitlement Police Grants Transportation Grants Other Federal Grants $ $ 5,516,110 17,855,700 5,670,450 Total Other Federal Funds $ $ 6,207,011 13,591,045 2,184,590 7,457,780 40,192,100 8,633,000 19,444,000 75,726,880 15,141,670 27,196,910 7,511,960 40,396,020 $ 30,563,002 $ 60,745,340 $ 883,240 4,083,000 4,187,230 6,852,500 350,000 $ 747,390 4,316,350 3,378,970 2,075,000 1,111,862 $ 887,530 4,312,830 4,558,100 15,634,700 951,000 Total Other Special Revenue Funds $ 16,355,970 $ 11,629,572 $ 26,344,160 Total Special Revenue Funds $ 288,538,910 $ 197,103,242 $ 323,151,390 Other Special Revenue Funds Public Safety Academy Tucson Convention Center ParkWise Impact Fees Contributions * 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. SCHEDULE C 4/07 C-16 SCHEDULE C TO RESOLUTION NO. 20686 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2007-08 ESTIMATED REVENUES 2006-07 SOURCE OF REVENUES DEBT SERVICE FUNDS Street and Highway Debt Service Highway User Revenue Funds ACTUAL REVENUES 2006-07* ESTIMATED REVENUES 2007-08 $ 8,042,000 $ 8,457,750 $ 8,796,060 Total Street and Highway Debt Service $ 8,042,000 $ 8,457,750 $ 8,796,060 Total Debt Service Funds $ 8,042,000 $ 8,457,750 $ 8,796,060 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. SCHEDULE C 4/07 C-17 SCHEDULE C TO RESOLUTION NO. 20686 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2007-08 ESTIMATED REVENUES 2006-07 SOURCE OF REVENUES ACTUAL REVENUES 2006-07* ESTIMATED REVENUES 2007-08 PERMANENT FUNDS None $ $ $ $ $ $ Total Permanent Funds $ $ $ ENTERPRISE FUNDS Environmental Services Fund Operating Revenue Non-Operating Revenue Miscellaneous Grants $ 39,487,600 510,500 910,500 $ 42,428,750 740,500 548,200 $ 41,680,090 4,493,880 591,500 Total Environmental Services Fund $ 40,908,600 $ 43,717,450 $ 46,765,470 $ 10,344,540 563,510 $ 10,337,598 $ 10,344,540 719,280 Total Golf Fund $ 10,908,050 $ 10,337,598 $ 11,063,820 $ 120,714,000 10,855,000 850,000 $ 114,864,000 10,825,000 250,000 $ 130,609,000 12,906,000 779,990 Total Water Utility Fund $ 132,419,000 $ 125,939,000 $ 144,294,990 Total Enterprise Funds $ 184,235,650 $ 179,994,048 $ 202,124,280 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. SCHEDULE C 4/07 C-18 SCHEDULE C TO RESOLUTION NO. 20686 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2007-08 ESTIMATED REVENUES 2006-07 SOURCE OF REVENUES ACTUAL REVENUES 2006-07* ESTIMATED REVENUES 2007-08 INTERNAL SERVICE FUNDS Not Applicable $ $ $ $ $ $ Total Internal Service Funds $ $ $ TOTAL ALL FUNDS $ 926,481,510 $ 828,838,284 $ 1,018,776,130 * 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. SCHEDULE C 4/07 C-19 SCHEDULE D TO RESOLUTION NO. 20686 City of Tucson Summary by Fund Type of Other Financing Sources/ and Interfund Transfers Fiscal Year 2007-08 OTHER FINANCING 2007-08 SOURCES FUND GENERAL FUND Certificates of Participation Business Privilege Tax Transfers from Fund Balance $ $ $ 99,582,080 $ 76,847,800 $ $ 9,800,000 $ $ 39,291,170 $ $ 8,041,140 $ $ 55,662,110 $ $ $ $ 8,041,140 $ Total Debt Service Funds $ $ $ 8,041,140 $ DEBT SERVICE FUNDS Transfer from Highway User Revenue Fund CAPITAL PROJECTS FUNDS General Obligation Bond Funds Street and Highway Revenue Bond Water Revenue Bond Funds 9,800,000 $ 15,305,200 63,200 45,579,900 $ $ $ Total Capital Projects Funds $ 60,948,300 $ $ $ $ $ $ $ Total Permanent Funds $ $ $ $ $ $ PERMANENT FUNDS None ENTERPRISE FUNDS Certificates of Participation Transfers from/to Fund Balance 99,582,080 1,103,820 5,265,840 2,932,320 35,280,100 11,080,030 Total Special Revenue Funds $ $ Total Enterprise Funds $ 8,424,000 8,424,000 TOTAL ALL FUNDS $ 156,020,100 C-20 3,146,270 $ $ 2,177,010 $ $ $ $ $ $ 15,000,000 40,000,000 55,000,000 $ $ 160,171,430 $ SCHEDULE D 8,041,140 $ 2,177,010 INTERNAL SERVICE FUNDS Risk Management Internal $ Tucson Supplemental Retirement Total Internal Service Funds $ 4/07 $ 39,291,170 Total General Fund $ SPECIAL REVENUE FUNDS Certificates of Participation Highway User Revenue Fund ParkWise Fund Public Safety Academy Fund Tucson Convention Center Fund Mass Transit Fund Transfers from Fund Balance 76,847,800 INTERFUND TRANSFERS 2007-08 IN 3,146,270 $ 110,769,490 SCHEDULE E TO RESOLUTION NO. 20686 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2007-08 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2006-07 FUND/DEPARTMENT GENERAL FUND Mayor and Council City Manager City Clerk City Attorney City Court Community Services Fire Neighborhood Resources Parks and Recreation Police Office of Equal Opportunity Programs and Independent Police Review Office of the Public Defender Development Services Urban Planning and Design Transportation Budget And Research Finance Human Resources Information Technology General Services Procurement Non-Departmental $ Total General Fund $ 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 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2006-07 $ ACTUAL EXPENDITURES/ EXPENSES 2006-07* $ 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 3,101,496 2,773,410 3,742,786 8,402,435 10,386,140 7,021,760 64,852,724 3,256,981 47,905,879 141,300,363 707,625 BUDGETED EXPENDITURES/ EXPENSES 2007-08 $ 3,059,060 10,927,796 3,636,718 6,144,670 2,026,155 11,157,555 2,703,700 25,167,838 11,362,849 3,828,751 45,691,904 3,424,270 3,570,170 5,519,990 8,686,370 11,438,000 9,909,560 92,923,790 4,697,460 50,863,670 177,837,810 832,950 3,190,910 12,807,510 4,171,250 29,409,810 1,690,740 9,764,590 2,904,190 18,395,190 18,074,860 3,904,890 37,570,690 470,941,550 $ $ 419,158,595 $ 511,588,670 4,101,600 $ $ $ 3,501,600 $ 85,550 41,455,720 2,943,540 47,986,410 $ 2,592,000 2,592,000 SPECIAL REVENUE FUNDS Highway User Revenue Fund Neighborhood Resources $ Parks and Recreation Urban Planning and Design Transportation Non-Departmental Total $ Local Transportation Assistance Fund Transportation Total $ Mass Transit Fund Transportation Non-Departmental Total $ 88,530 39,509,510 1,791,090 45,490,730 $ $ 1,384,999 25,961 66,510 40,577,654 1,487,690 43,542,814 2,592,000 2,592,000 $ $ 2,592,000 2,592,000 86,225,940 86,225,940 55,612,194 $ SCHEDULE E 4/07 C-21 $ 55,612,194 87,140,970 $ 87,140,970 SCHEDULE E TO RESOLUTION NO. 20686 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2007-08 FUND/DEPARTMENT ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2006-07 Intergovernmental Funds City Attorney $ City Court City Manager Community Services Fire Parks and Recreation Police Urban Planning and Design Transportation Information Technology General Services Non-Departmental Total $ Housing Assistance Funds Community Services $ Non-Departmental Total $ Community Development Block Grant Community Services $ Neighborhood Resources Parks and Recreation Non-Departmental Total $ Other Federal Grant Funds City Attorney $ City Manager Community Services Fire Information Technology Parks and Recreation Police Urban Planning and Design Transportation 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 $ 148,260 362,190 1,972,700 350,000 15,533,290 1,181,980 210,000 55,480,140 30,000 500,000 200,000 75,968,560 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2006-07 $ $ 112,920 89,880 BUDGETED EXPENDITURES/ EXPENSES 2007-08 $ 573,743 381,433 7,991,864 1,619,829 210,000 14,315,498 98,131 $ $ 25,393,298 $ 60,183,380 146,370 60,329,750 $ $ $ $ $ 59,379,370 146,370 59,525,740 7,425,170 3,907,500 $ $ 7,757,170 802,096 $ 21,090 11,353,760 $ $ 21,090 8,580,356 $ 338,440 $ $ 250,180 $ 398,540 911,880 300,000 581,590 5,516,110 390,000 17,855,700 500,000 2,250,000 29,042,260 $ 383,600 480,601 546,084 6,207,011 390,000 13,591,045 $ $ 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 4,187,230 134,125 21,982,646 $ 161,920 370,830 150,000 1,217,900 350,000 12,973,030 1,436,700 380,000 57,956,500 30,000 500,000 200,000 75,726,880 60,546,850 138,800 60,685,650 7,136,870 3,680,400 60,000 17,530 10,894,800 344,620 250,000 1,584,270 2,874,440 300,000 598,630 15,141,670 460,000 27,196,910 500,000 600,000 49,850,540 $ $ 3,029,980 4,061,711 278,570 7,370,261 $ 3,021,730 2,853,270 278,370 6,153,370 $ $ 11,071,214 $ 7,355,120 $ $ 11,071,214 $ 7,355,120 $ $ 115,510 3,605,484 1,127,660 4,848,654 $ $ SCHEDULE E 4/07 ACTUAL EXPENDITURES/ EXPENSES 2006-07* C-22 $ $ 13,549,670 2,051,250 15,600,920 SCHEDULE E TO RESOLUTION NO. 20686 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2007-08 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2006-07 FUND/DEPARTMENT Fleet Services Funds Fire EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2006-07 ACTUAL EXPENDITURES/ EXPENSES 2006-07* BUDGETED EXPENDITURES/ EXPENSES 2007-08 $ 2,175,490 $ $ 2,175,490 $ Total $ 2,175,490 $ $ 2,175,490 $ $ 775,000 6,077,500 6,852,500 $ $ $ $ $ 775,000 1,300,000 2,075,000 $ 4,671,300 10,963,400 15,634,700 $ $ $ 310,000 350,000 341,900,580 $ $ $ $ 120,862 350,000 641,000 1,111,862 245,881,529 $ $ 641,000 951,000 380,572,360 26,808,660 $ $ 25,608,660 $ 28,022,940 Impact Fees Parks and Recreation Transportation Total $ Contributions Parks and Recreation Transportation Non-Departmental $ 350,000 Total $ Total Special Revenue Funds $ DEBT SERVICE FUNDS Street and Highway Debt Service Non-Departmental $ General Obligation Debt Service Non-Departmental Total Debt Service Funds $ 16,869,240 16,869,240 16,837,200 43,677,900 $ $ 42,477,900 $ 44,860,140 2,639,300 2,899,000 3,528,700 $ $ $ 2,183,100 3,665,000 3,860,900 $ 15,305,200 CAPITAL PROJECTS FUNDS General Obligation Bonds Fire $ Environmental Services Parks and Recreation Police Transportation Non-Departmental Total $ Street and Highway Revenue Bonds Transportation Total $ Water Revenue Bonds Tucson Water Total $ 11,632,200 374,500 21,073,700 $ $ 1,492,974 2,899,000 1,360,561 2,399,095 3,413,448 342,900 11,907,978 85,300 85,300 $ $ 1,035,571 1,035,571 $ 63,200 63,200 29,900,900 29,900,900 $ $ 28,413,980 28,413,980 $ 45,579,900 45,579,900 51,059,900 $ $ 41,357,529 $ 60,948,300 $ $ $ $ Total Permanent Funds $ $ $ $ Total Capital Projects Funds $ PERMANENT FUNDS None ENTERPRISE FUNDS Environmental Services Tucson City Golf Tuscon Water $ 39,465,240 10,978,050 144,281,350 $ $ 38,477,110 10,337,598 135,850,580 $ 52,043,200 11,063,820 146,472,000 Total Enterprise Funds $ 194,724,640 $ $ 184,665,288 $ 209,579,020 SCHEDULE E 4/07 5,596,200 C-23 SCHEDULE E TO RESOLUTION NO. 20686 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2007-08 FUND/DEPARTMENT INTERNAL SERVICE FUNDS Risk Management $ Tucson Supplemental Retirement Total Internal Service Funds $ TOTAL ALL FUNDS $ ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2006-07 1,102,304,570 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2006-07 ACTUAL EXPENDITURES/ EXPENSES 2006-07* $ $ $ $ $ $ BUDGETED EXPENDITURES/ EXPENSES 2007-08 $ 933,540,841 $ $ 15,000,000 40,000,000 55,000,000 1,262,548,490 * 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. SCHEDULE E 4/07 C-24 SCHEDULE F TO RESOLUTION NO. 20686 City of Tucson Summary by Department of Expenditures/Expenses Fiscal Year 2007-08 DEPARTMENT/FUND ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2006-07 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2006-07 ACTUAL EXPENDITURES/ EXPENSES 2006-07* BUDGETED EXPENDITURES/ EXPENSES 2007-08 Mayor and Council General Fund $ Mayor and Council Total $ 3,272,010 $ 3,272,010 $ 0 $ 0 $ 3,101,496 $ 3,101,496 $ 3,424,270 3,424,270 Budget & Research General Fund $ Budget & Research Total $ 2,455,910 $ 2,455,910 $ 0 $ 0 $ 2,026,155 $ 2,026,155 $ 1,690,740 1,690,740 City Attorney General Fund $ Intergovernmental Funds Other Federal Grant Funds City Attorney Total $ 8,279,940 $ 148,260 338,440 8,766,640 $ 0 $ 0 0 0 $ 8,402,435 $ 112,920 250,180 8,765,535 $ 8,686,370 161,920 344,620 9,192,910 $ City Clerk Total $ 3,699,070 $ 3,699,070 $ 0 $ 0 $ 3,742,786 $ 3,742,786 $ 5,519,990 5,519,990 City Court General Fund $ Intergovernmental Funds ParkWise Fund City Court Total $ 10,483,020 $ 362,190 115,510 10,960,720 $ 0 $ 0 0 0 $ 10,386,140 $ 89,880 115,510 10,591,530 $ 11,438,000 370,830 0 11,808,830 City Manager General Fund $ Intergovernmental Funds Other Federal Grant Funds City Manager Total $ 2,825,200 $ 0 0 2,825,200 $ 0 $ 0 0 0 $ 2,773,410 $ 0 0 2,773,410 $ 3,570,170 150,000 250,000 3,970,170 City Clerk General Fund Community Services General Fund $ Community Development Block Grant Entitlement Housing Assistance Funds Intergovernmental Funds Other Federal Grant Funds Community Services Total $ 7,455,860 $ 7,425,170 0 $ 0 7,021,760 $ 7,757,170 9,909,560 7,136,870 60,183,380 1,972,700 398,540 77,435,650 $ 0 0 0 0 $ 59,379,370 573,743 383,600 75,115,643 $ 60,546,850 1,217,900 1,584,270 80,395,450 Convention Center Tucson Convention Center Fund $ Convention Center Total $ 10,860,320 10,860,320 $ 0 $ 0 $ 11,071,214 $ 11,071,214 $ 7,355,120 7,355,120 Development Services General Fund $ Development Services Total $ 11,427,740 $ 11,427,740 $ 0 $ 0 $ 10,927,796 10,927,796 $ 12,807,510 12,807,510 Environmental Services Environmental Services Funds $ General Obligation Bonds Environmental Services Total $ 39,465,240 $ 2,899,000 42,364,240 $ 0 $ 0 0 $ 38,477,110 $ 2,899,000 41,376,110 $ 52,043,200 3,665,000 55,708,200 Equal Opportunity Programs and Independent Police Review General Fund $ Department Total $ 757,470 $ 757,470 $ 0 $ 0 $ 707,625 $ 707,625 $ 832,950 832,950 * 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. SCHEDULE F 4/07 C-25 SCHEDULE F TO RESOLUTION NO. 20686 City of Tucson Summary by Department of Expenditures/Expenses Fiscal Year 2007-08 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2006-07 DEPARTMENT/FUND Finance General Fund $ Finance Total $ EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2006-07 ACTUAL EXPENDITURES/ EXPENSES 2006-07* BUDGETED EXPENDITURES/ EXPENSES 2007-08 11,053,660 $ 11,053,660 $ 0 $ 0 $ 11,157,555 $ 11,157,555 $ 9,764,590 9,764,590 Fire Total $ 75,009,730 $ 2,175,490 2,639,300 350,000 911,880 2,821,160 83,907,560 $ 0 $ 0 0 0 0 0 0 $ 64,852,724 $ 2,175,490 1,492,974 381,433 480,601 3,029,980 72,413,202 $ 92,923,790 0 2,183,100 350,000 2,874,440 3,021,730 101,353,060 General Services General Fund $ Intergovernmental Funds Other Federal Grant Funds General Services Total $ 12,407,350 $ 500,000 500,000 13,407,350 $ 0 $ 0 0 0 $ 11,362,849 $ 0 0 11,362,849 $ 18,074,860 500,000 500,000 19,074,860 $ Golf Total $ 10,978,050 $ 10,978,050 $ 0 $ 0 $ 10,337,598 $ 10,337,598 $ 11,063,820 11,063,820 Human Resources General Fund $ Human Resources Total $ 2,701,950 $ 2,701,950 $ 0 $ 0 $ 2,703,700 $ 2,703,700 $ 2,904,190 2,904,190 Information Technology General Fund $ Intergovernmental Funds Other Federal Grant Funds Information Technology Total $ 32,517,110 $ 30,000 300,000 32,847,110 $ 0 $ 0 0 0 $ 25,167,838 $ 98,131 0 25,265,969 $ 18,395,190 30,000 300,000 18,725,190 3,825,780 $ 3,907,500 0 $ 0 3,256,981 $ 802,096 4,697,460 3,680,400 4,101,600 11,834,880 $ 0 0 $ 1,384,999 5,444,076 $ 3,501,600 11,879,460 50,673,360 $ 0 0 $ 0 47,905,879 $ 0 50,863,670 60,000 0 3,528,700 0 775,000 15,533,290 581,590 71,091,940 $ 0 0 0 0 0 0 0 $ 120,862 1,360,561 25,961 775,000 7,991,864 546,084 58,726,211 $ 310,000 3,860,900 0 4,671,300 12,973,030 598,630 73,337,530 Fire General Fund Fleet Funds General Obligation Bonds Intergovernmental Funds Other Federal Grant Funds Public Safety Academy Fund Golf Golf $ Neighborhood Resources General Fund $ Community Development Block Grant Entitlement Highway User Revenue Fund Neighborhood Resources Total $ Parks & Recreation General Fund $ Community Development Block Grant Entitlement Contributions General Obligation Bonds Highway User Revenue Fund Impact Fee Funds Intergovernmental Funds Other Federal Grant Funds Parks & Recreation Total $ * 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. SCHEDULE F 4/07 C-26 SCHEDULE F TO RESOLUTION NO. 20686 City of Tucson Summary by Department of Expenditures/Expenses Fiscal Year 2007-08 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2006-07 DEPARTMENT/FUND Police General Fund $ General Obligation Bonds Intergovernmental Funds Other Federal Grant Funds Public Safety Academy Fund Police Total $ EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2006-07 ACTUAL EXPENDITURES/ EXPENSES 2006-07* BUDGETED EXPENDITURES/ EXPENSES 2007-08 158,422,580 $ 0 1,181,980 5,516,110 3,367,370 168,488,040 $ 0 $ 0 0 0 0 0 $ 141,300,363 $ 2,399,095 1,619,829 6,207,011 4,061,711 155,588,009 $ 177,837,810 0 1,436,700 15,141,670 2,853,270 197,269,450 $ Procurement Total $ 3,841,520 $ 3,841,520 $ 0 $ 0 $ 3,828,751 $ 3,828,751 $ 3,904,890 3,904,890 $ Public Defender Total $ 3,000,810 $ 3,000,810 $ 0 $ 0 $ 3,059,060 $ 3,059,060 $ 3,190,910 3,190,910 Transportation General Fund $ Contributions General Obligation Bonds Highway User Revenue Fund Impact Fee Funds Intergovernmental Funds Local Transportation Assistance Fund Mass Transit Fund Other Federal Grant Funds ParkWise Fund Street and Highway Revenue Bonds Transportation Total $ 10,719,920 $ 350,000 11,632,200 39,509,510 6,077,500 55,480,140 2,592,000 86,225,940 17,855,700 2,944,060 85,300 233,472,270 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 $ 6,144,670 $ 350,000 3,413,448 40,577,654 1,300,000 14,315,498 2,592,000 55,612,194 13,591,045 3,605,484 1,035,571 142,537,564 $ 29,409,810 0 5,596,200 41,455,720 10,963,400 57,956,500 2,592,000 87,140,970 27,196,910 13,549,670 63,200 275,924,380 Urban Planning and Design General Fund $ Highway User Revenue Fund Intergovernmental Funds Other Federal Grant Funds Urban Planning and Design Total $ 3,678,530 $ 88,530 210,000 390,000 4,367,060 $ 0 $ 0 0 0 0 $ 3,636,718 $ 66,510 210,000 390,000 4,303,228 $ 4,171,250 85,550 380,000 460,000 5,096,800 144,281,350 $ 29,900,900 174,182,250 $ 0 $ 0 0 $ 135,850,580 $ 28,413,980 164,264,560 $ 146,472,000 45,579,900 192,051,900 Procurement General Fund Public Defender General Fund Water Water Funds Water Revenue Bonds $ Water Total $ * 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. SCHEDULE F 4/07 C-27 SCHEDULE F TO RESOLUTION NO. 20686 City of Tucson Summary by Department of Expenditures/Expenses Fiscal Year 2007-08 DEPARTMENT/FUND ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2006-07 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2006-07 ACTUAL EXPENDITURES/ EXPENSES 2006-07* BUDGETED EXPENDITURES/ EXPENSES 2007-08 Non-Departmental General Fund $ Community Development Block Grant Entitlement Tucson Convention Center Fund Contributions General Obligation Bonds General Obligation Debt Service Highway User Revenue Fund Housing Assistance Funds Intergovernmental Funds Mass Transit Fund Other Federal Grant Funds ParkWise Fund Public Safety Academy Fund Street and Highway Debt Service Risk Management Fund Tucson Supplemental Retirement Department Total $ 52,433,030 $ 21,090 0 $ 0 45,691,904 $ 21,090 37,570,690 17,530 4,940 0 374,500 16,869,240 1,791,090 146,370 200,000 0 2,250,000 1,127,660 278,570 26,808,660 0 0 102,305,150 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 641,000 342,900 16,869,240 1,487,690 146,370 0 0 134,125 1,127,660 278,570 25,608,660 0 0 92,349,209 $ 0 641,000 0 16,837,200 2,943,540 138,800 200,000 0 600,000 2,051,250 278,370 28,022,940 15,000,000 40,000,000 144,301,320 Total All Departments $ 1,102,304,570 $ 0 $ 933,540,841 $ 1,262,548,490 * 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. SCHEDULE F 4/07 C-28 City of Tucson Section D Community Statistical Profile Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget 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 Enterprise Positions*** 11.2 11.1 10.7 1.9 1.8 1.9 1.9 2.9 2.9 6.4 6.2 6.4 6.3 2003 2004 2005 2006 3.0 10.8 1.8 1.8 3.1 3.2 5.8 5.8 2007 2008 3.0 * 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 $ 26.155 5.9 $ 28.895 8.2 $ 30.838 6.7 $ 32.602 5.7 Retail Sales-Excluding Food (Billions of Dollars)* Percentage Change from Prior Year $ 8.566 $ 9.164 $ 9.633 $ 10.114 9.7 7.0 5.1 5.0 Residential Building Permits (Units) Percentage Change from Prior Year 11,913 14.4 8,315 (30.2) 7,293 (12.3) 7,717 5.8 Gasoline Sales (Millions of Gallons) Percentage Change from Prior Year 394.0 2.5 353.6 (10.3) 390.5 10.5 401.9 2.9 Population (000)** Percentage Change from Prior Year 957.6 2.8 981.3 2.5 1,004.9 2.4 1,027.0 2.2 Wage and Salary Employment (000) Percentage Change from Prior Year 365.0 1.4 380.1 3.7 388.6 2.2 393.4 1.2 .381 .387 .387 .383 Real Per Capita Disposable Income (1982 Dollars) Percentage Change from Prior Year $ 12,248 $ 12,633 $ 12,840 $ 13,032 (1.1) 1.1 1.6 1.5 Annual Earnings Per Worker Percentage Change from Prior Year $ 38,327 3.8 $ 39,882 4.7 $ 41,556 4.2 $ 43,019 3.5 Consumer Price Index (CPI) Western Region (Percent Change) 3.1 3.4 2.3 2.0 Personal Consumption Deflator (Percent Change) 2.9 2.7 1.9 1.9 Employment/Population Ratio Source: Economic Outlook, February 2007 and May 2007, Economics and Business Research Center, Eller College of Management, University of Arizona. Data are from May 2007, except data for year 2005 is from February 2007. *Calculated by combining retail sales (less food) with restaurant and bar sales. **Population projections were made 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; the interior frescoes were cleaned and 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. In the winter, skiing is only a one-hour drive from Tucson. In 2007 the Professional Golfers’ Association moved the Accenture Match Play Championship to the Tucson region where it will be hosted through 2010. The annual event features 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 eight National Collegiate Athletic Association (NCAA) championships including the 2006 and 2007 titles. The men’s basketball team were runners up in the NCAA 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. 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 many 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 contributes almost $2.5 billion annually to the local economy, 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 almost 550,000 in 2007. 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 has grown: 45th largest city in 1980, 34th largest in 1990, the 30th largest in 2000, and the 32nd largest in 2006. Population 1990 2000 2003 2004 2005 2006 2007* Land Area 1990 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007* Tucson 405,390 486,699 514,725 522,850 531,000 539,341 543,838 157.53 194.12 194.36 195.40 223.33 226.09 226.13 226.15 226.55 226.73 227.62 Pima County 666,880 843,746 910,950 932,500 957,635 989,953 1,009,402 square miles square miles square miles square miles square miles square miles square miles square miles square miles square miles square miles Racial/Ethnic Composition, 2000 White, Non-Hispanic 54.2% Hispanic 35.7% Black 4.1% Native American 1.6% Asian/Pacific Islander 2.5% Other 1.9% Land Use, 2003 Undeveloped Residential Commercial Government Industrial Open Space Agricultural Other Median Age 1970 1980 1990 2000 2005 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 32.4 years *Estimated figure for March 2007 from the City of Tucson Department of Urban Planning and Design. Population figures are for July of each year. 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, 2006* (Based on number of full-time equivalent positions) Raytheon Missile Systems University of Arizona State of Arizona U.S. Army Fort Huachuca Davis-Monthan Air Force Base Tucson Unified School District Pima County City of Tucson Wal-Mart Stores Phelps Dodge Mining Company Carondelet Health Network Tohono O’Odham Nation Tucson Medical Center HealthCare University Medical Center U.S. Border Patrol Sunnyside Unified School District Pima Community College Amphitheater Public Schools 11,184 10,354 9,927 9,119 8,233 7,419 7,290 5,848** 5,625 4,900 4,319 3,825 3,474 3,094 2,763 2,690 2,211 2,187 *Source: “Star Two Hundred,” The Arizona Daily Star, March 13, 2007 **The staffing per Adopted Budget for Fiscal Year 2007 is 5,847.76 Total Employment (Pima County) 2000 2001 2002 2003 2004 2005 2006 444,400 443,900 448,900 451,200 465,560 472,200 490,200 Unemployment Rates (Pima County) 2000 2001 2002 2003 2004 2005 2006 2.8% 3.5% 4.6% 4.2% 3.7% 4.4% 4.0% Commercial 191 208 268 159 171 129 Industrial 17 7 16 8 6 14 Annual Rate of Earnings (Per worker in current dollars) 2000 $31,475 2002 $33,677 2003 $35,271 2004 $36,913 2005 $38,603 2006 $40,260 Building Permits Issued Residential 2002 2,719 2003 2,497 2004 2,430 2005 2,302 2006 2,904 2007 1,497 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 (including Paramedics) Annual Number of Units Responding to Structural Fires 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 17 250 630,741 320,258 46,034 30,984 1,815 512 1,141 17,269 7,987,000 4,039,253 520 4,500 155 229,210 290 39.4 1,071 5.01 39.56 673 2,880 20,800 55,840 147 City of Tucson Section E Summary Information Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget CITY OF TUCSON Components of the Total Financial Plan Fiscal Year 2008 Total Budget $ 1,262,548,490 Operating Budget $ 929,673,890 Capital Budget $ 332,874,600 Mayor and Council $ 3,424,270 EOP and IPR* $ 832,950 Police $ 170,666,650 Community Services $ 1,567,500 Budget and Research $ 1,690,740 Finance $ 9,764,590 Procurement $ 3,904,890 Development Services $ 215,000 City Attorney $ 9,192,910 Fire $ 82,647,760 Public Defender $ 3,190,910 Environmental Services $ 12,239,000 City Clerk $ 5,519,990 General Services $ 19,074,860 Transportation $ 108,087,480 Fire $ 18,705,300 City Court $ 11,808,830 Golf $ 11,063,820 Urban Planning and Design $ 5,096,800 Information Technology $ 4,000,000 City Manager $ 3,970,170 Human Resources $ 2,904,190 Water $ 124,603,000 Neighborhood Resources $ 7,430,400 Community Services $ 78,827,950 Information Technology $ 14,725,190 Outside Agencies $ 2,265,460 Parks and Recreation $ 23,628,700 Convention Center $ 7,355,120 Neighborhood Resources $ 4,449,060 General Expense $ 9,922,580 Police $ 26,602,800 Development Services $ 12,592,510 Parks and Recreation $ 49,708,830 Debt Service $ 73,913,180 Transportation $ 167,836,900 Risk Management $ 15,000,000 Water $ 67,448,900 Pension $ 40,000,000 General Expense $ 3,200,100 Environmental Services $ 43,469,200 *Equal Opportunity Programs and Independent Police Review E-1 REVENUES FISCAL YEAR 2008 ADOPTED Capital Projects Funds 5% Other Federal Revenues 8% Business Privilege Tax 17% Enterprise Funds 17% Miscellaneous 14% Certificates of Participation 7% Charges for Current Services 4% Public Housing 5% State Revenue Sharing Grants and Shared Taxes 17% 6% 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: Brought Forward/Fund Balance 4% Non-Revenue Receipts 3% Secondary Property Tax 2% Other Local Taxes 2% Licenses and Permits 2% Fines, Forfeitures, and Penalties 1% Primary Property Tax <1% Use of Money and Property <1% Percent of Total 10,327,380 28,022,940 212,870,000 30,021,000 23,181,500 14,265,850 6,588,700 210,397,760 74,600,000 51,919,480 36,649,700 60,685,650 95,472,210 209,579,020 86,647,800 60,948,300 50,371,200 <1% 2% 17% 2% 2% 1% <1% 17% 6% 4% 3% 5% 8% 17% 7% 5% 4% $ 1,262,548,490 100% E-2 EXPENDITURES FISCAL YEAR 2008 ADOPTED Environment and Development 43% Strategic Initiatives 1% Support Services 4% Non-Departmental 11% Neighborhood Services 39% 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 Risk Management Pension Total Funds Available $ Non-Departmental: Outside Agencies <1% General Expense 1% Debt Service 6% Risk Management 1% Pension 3% Percent of Total 22,107,340 491,131,460 541,588,790 7,355,120 56,064,460 2% 39% 43% 1% 4% 2,265,460 13,122,680 73,913,180 15,000,000 40,000,000 <1% 1% 6% 1% 3% $ 1,262,548,490 100% E-3 SUMMARY OF EXPENDITURES BY DEPARTMENT Actual FY 2006 Elected and Official Mayor and Council City Manager City Clerk City Attorney $ Sub-Total 3,199,039 2,909,803 4,312,094 8,001,689 Sub-Total $ 10,563,328 39,579,739 139,245,877 159,817,208 4,431,048 Sub-Total Support Services Budget and Research Finance General Services Human Resources Information Technology Procurement Sub-Total $ $ 353,637,200 $ 11,539,884 1,917,105 10,275,049 13,604,474 2,787,993 16,269,194 3,495,752 48,349,567 $ 10,960,720 77,435,650 83,907,560 -011,834,880 71,091,940 10,978,050 168,488,040 757,470 $ $ $ 10,591,530 75,115,643 72,413,202 -05,444,076 58,726,211 10,337,598 155,588,009 707,625 3,272,010 2,820,980 4,899,130 8,869,630 Adopted FY 2008 $ 19,861,750 $ 11,238,860 70,971,160 97,893,990 -06,420,880 62,660,340 10,908,050 164,960,230 757,470 3,424,270 3,970,170 5,519,990 9,192,910 22,107,340 $ 11,808,830 80,395,450 101,353,060 -011,879,460 73,337,530 11,063,820 197,269,450 832,950 3,000,810 3,059,060 2,995,810 3,190,910 438,455,120 391,982,954 428,806,790 491,131,460 11,427,740 42,364,240 233,472,270 174,182,250 4,367,060 $ 10,860,320 2,455,910 11,053,660 13,407,350 2,701,950 32,847,110 3,841,520 66,307,500 E-4 10,927,796 41,376,110 142,537,564 164,264,560 4,303,228 $ 363,409,258 $ 10,860,320 $ 3,101,496 2,773,410 3,742,786 8,765,535 Approved FY 2008 18,383,227 465,813,560 11,539,884 $ 3,272,010 2,825,200 3,699,070 8,766,640 Estimated FY 2007 18,562,920 376,846,069 Sub-Total Strategic Initiatives Tucson Convention Center $ 18,422,625 Neighborhood Services City Court $ 10,561,989 Community Services 54,122,667 Fire 68,817,856 Library 22,817,244 Neighborhood Resources 6,652,151 Parks and Recreation 49,933,686 Tucson City Golf 11,872,702 Police 148,489,821 Office of Equal Opportunity Programs 748,949 and Independent Police Review Office of the Public Defender 2,829,004 Environment and Development Development Services Environmental Services Transportation Tucson Water Urban Planning and Design Adopted FY 2007 11,071,214 2,026,155 11,157,555 11,362,849 2,703,700 25,265,969 3,828,751 56,344,979 $ 426,580,160 $ 11,071,214 $ 11,237,740 48,961,910 185,733,940 176,282,610 4,363,960 10,860,320 541,588,790 $ 10,860,320 $ 2,360,050 9,310,730 12,782,350 2,701,950 20,933,210 3,786,520 51,874,810 12,807,510 55,708,200 275,924,380 192,051,900 5,096,800 7,355,120 7,355,120 $ 1,690,740 9,764,590 19,074,860 2,904,190 18,725,190 3,904,890 56,064,460 Summary of Expenditures by Department (Continued) Actual FY 2006 Non-Departmental Outside Agencies General Expense Debt Service Risk Management Pension Office of Economic Development Tucson-Mexico Trade Office Sub-Total Total All Expenditures $ 1,964,981 15,950,092 52,244,439 -0-0866,035 590,602 Adopted FY 2007 $ 2,554,670 32,720,930 67,029,550 -0-0-0-0- Estimated FY 2007 $ 2,233,460 28,696,419 61,419,330 -0-0-0-0- Approved FY 2008 $ 2,554,670 30,399,350 71,014,030 -0-0-0-0- Adopted FY 2008 $ 2,265,460 13,122,680 73,913,180 15,000,000 40,000,000 -0-0- 71,616,149 102,305,150 92,349,209 103,968,050 144,301,320 $ 880,411,494 $ 1,102,304,570 $ 933,540,841 $ 1,041,951,880 $ 1,262,548,490 SUMMARY BY CHARACTER OF EXPENDITURES Actual FY 2006 Personal Services Services Commodities Equipment Other $ 385,766,448 192,816,082 60,855,574 4,826,425 98,514,962 Adopted FY 2007 $ Estimated FY 2007 Approved FY 2008 Adopted FY 2008 393,941,750 225,369,850 67,017,800 16,547,820 123,691,750 $ 394,991,362 215,065,354 70,213,841 12,328,310 109,859,284 $ 410,382,340 219,645,070 68,279,610 11,544,340 135,532,920 $ 462,095,660 229,138,650 70,971,140 10,939,290 156,529,150 Operating Total Capital Improvements 742,779,491 137,632,003 826,568,970 275,735,600 802,458,151 131,082,690 845,384,280 196,567,600 929,673,890 332,874,600 Total All Expenditures $ 880,411,494 $ 1,102,304,570 $ 933,540,841 $ 1,041,951,880 $ 1,262,548,490 E-5 REVENUES AND EXPENDITURES COMPARISONS Actual FY 2006 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 ALL EXPENDITURES $ $ $ $ Adopted FY 2007 Estimated FY 2007 9,727,445 21,697,938 190,385,477 28,033,063 20,968,702 11,952,502 4,953,371 154,032,148 52,493,683 43,614,637 11,199,236 41,801,647 36,407,408 177,333,062 13,191,783 61,111,629 8,379,437 887,283,168 $ 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 $ 1,102,304,570 $ 18,422,625 376,846,069 353,637,200 11,539,884 48,349,567 71,616,149 880,411,494 $ $ 18,562,920 438,455,120 465,813,560 10,860,320 66,307,500 102,305,150 $ 1,102,304,570 F-6 $ $ Approved FY 2008 Adopted FY 2008 9,684,390 25,608,660 204,700,000 29,840,000 22,395,000 14,199,161 6,481,500 154,341,471 60,158,000 42,688,880 15,482,792 59,525,740 39,031,692 184,665,288 18,787,612 41,357,529 15,836,042 944,783,757 $ 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 $ 1,041,951,880 $ 18,383,227 391,982,954 363,409,258 11,071,214 56,344,979 92,349,209 933,540,841 $ $ 19,861,750 428,806,790 426,580,160 10,860,320 51,874,810 103,968,050 $ 1,041,951,880 10,327,380 28,022,940 212,870,000 30,021,000 23,181,500 14,265,850 6,588,700 210,397,760 74,600,000 51,919,480 36,649,700 60,685,650 95,472,210 209,579,020 86,647,800 60,948,300 50,371,200 $ 1,262,548,490 22,107,340 491,131,460 541,588,790 7,355,120 56,064,460 144,301,320 $ 1,262,548,490 EXPLANATION OF CITY FUNDS FUND GROUPS The city budget consists of six 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 major funds included in the budget are the General Fund, Special Revenue Funds, Enterprise Funds, Debt Service Funds, Internal 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. Internal Service Funds Internal Service Funds are used to report any activity that provides goods or services to other funds, departments, or agencies of the primary government on a cost-reimbursement basis. The goal of an internal service fund is to measure the full cost of providing goods or services for the purpose of fully recovering that cost through fees or charges. The Risk Management Fund is such a fund; departments are assessed charges to fund the city’s self-insurance expenses. Also included in this budget category is the Tucson Supplemental Retirement System pension fund, which is a fiduciary fund used to report assets held in a trustee capacity and therefore cannot be used to support the city’s programs. 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. E-7 EXPLANATION OF CITY FUNDS (Continued) FUND BALANCE The budget treats Fund Balance as the unreserved fund balance defined in the Comprehensive Annual Financial Report (CAFR) as “available spendable resources.” GENERAL PURPOSE FUNDS Throughout the budget a distinction is made between general purpose funds and restricted funds. General purpose funds include funding that has no restrictions on its use and may be either General Funds or Special Revenue Funds. 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 (CAFR) 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. 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 essentially the same in both the budget and the CAFR. The budget matches revenues to expenditures in the year expensed for funds other than the general fund. This may result in differences with the CAFR where a revenue may be received prior to the start of the fiscal year, such as is the case with bond funds and other financing, while the CAFR would report the proceeds in the year received. The budget does not record expenditures such as depreciation that are accrued under Generally Accepted Accounting Principles. E-8 USE OF GENERAL PURPOSE FUNDS COMPARED TO TOTAL FUNDS ($000s) $1,400,000 1,262,548 $1,200,000 1,102,305 $1,000,000 880,411 827,837 771,149 $800,000 753,902 $600,000 441,939 $400,000 349,830 353,943 461,390 493,434 388,323 $200,000 $-02003 Actual 2004 Actual 2005 Actual 2006 Actual General Purpose Expenditures 2007 Adopted 2008 Adopted Total Expenditures Note: Beginning in Fiscal Year 2005, general purpose funds no longer include Environmental Services based on the decision to make it an enterprise fund. F-9 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 10,327,380 28,022,940 212,870,000 30,021,000 23,181,500 14,265,850 6,588,700 210,397,760 74,600,000 51,919,480 36,649,700 60,685,650 95,472,210 209,579,020 86,647,800 60,948,300 50,371,200 $ 10,327,380 -0212,870,000 30,021,000 22,010,000 11,040,000 2,438,000 79,822,000 74,600,000 40,077,010 1,740,000 -0-0-0-0-03,832,510 $ -0-0-0-0-0-0-0-0-01,332,300 -0-0-0-0-0-03,324,000 $ 10,327,380 -0212,870,000 30,021,000 22,010,000 11,040,000 2,438,000 79,822,000 74,600,000 41,409,310 1,740,000 -0-0-0-0-07,156,510 $ -028,022,940 -0-01,171,500 3,225,850 4,150,700 57,256,260 -010,282,970 19,275,000 59,636,350 35,159,910 179,136,020 7,905,000 -035,673,490 $ -0-0-0-0-0-0-073,319,500 -0227,200 15,634,700 1,049,300 60,312,300 30,443,000 78,742,800 60,948,300 7,541,200 $ -028,022,940 -0-01,171,500 3,225,850 4,150,700 130,575,760 -010,510,170 34,909,700 60,685,650 95,472,210 209,579,020 86,647,800 60,948,300 43,214,690 $ 1,262,548,490 $ 488,777,900 $ 4,656,300 $ 493,434,200 $ 440,895,990 $ 328,218,300 $ 769,114,290 $ 22,107,340 491,131,460 541,588,790 7,355,120 56,064,460 144,301,320 $ 20,930,790 296,948,880 76,403,370 6,714,120 43,904,850 43,875,890 $ -0450,000 4,206,300 -0-0-0- $ 20,930,790 297,398,880 80,609,670 6,714,120 43,904,850 43,875,890 $ 1,176,550 116,247,880 217,445,620 641,000 8,159,610 97,225,330 $ -077,484,700 243,533,500 -04,000,000 3,200,100 $ 1,176,550 193,732,580 460,979,120 641,000 12,159,610 100,425,430 $ 1,262,548,490 $ 488,777,900 $ 4,656,300 $ 493,434,200 $ 440,895,990 $ 328,218,300 $ 769,114,290 F-10 REVENUES AND EXPENDITURES COMPARISONS AND FUND BALANCE GENERAL FUND Actual FY 2006 Beginning Fund Balance Adopted FY 2007 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 $ 28,315,663 $ 35,174,030 $ 41,258,164 $ 43,000,100 $ 43,000,100 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 9,727,445 190,385,477 (57,529,243) 28,033,063 20,552,526 11,356,932 2,650,861 74,979,228 52,493,683 25,926,236 9,031,937 10,736,792 -0- 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 9,684,390 204,700,000 (46,108,753) 29,840,000 21,945,000 13,598,191 3,647,100 74,248,883 60,158,000 24,205,140 10,940,930 16,612,122 6,935,908 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 10,327,380 212,870,000 (99,582,080) 30,021,000 22,640,000 13,655,850 3,147,100 77,348,820 74,600,000 33,029,120 17,392,510 76,847,800 39,291,170 378,344,937 470,941,550 430,406,911 476,950,980 511,588,670 Less Unbudgeted Fund Balance Requirements Total Funds Available $ (28,315,663) $ (35,174,030) $ (41,258,164) $ (43,000,100) $ (43,000,100) 378,344,937 470,941,550 430,406,911 476,950,980 511,588,670 Expenditures Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental $ 18,044,782 $ 18,076,220 $ 18,020,127 $ 19,375,050 $ 21,200,800 261,906,883 309,628,610 278,490,532 323,729,400 351,694,150 19,616,937 25,826,190 20,709,184 29,665,160 46,388,570 1,456,637 -0-0-0-048,330,234 64,977,500 56,246,848 50,544,810 54,734,460 24,907,743 52,433,030 45,691,904 53,636,560 37,570,690 Total Expenditures Available Funds Over/(Under) Expenditures 374,263,216 $ 470,941,550 4,081,721 $ 419,158,595 -0- $ 11,248,316 $ 476,950,980 -0- $ 511,588,670 -0- Unbudgeted Fund Balance Requirements From Prior year From Available Funds Transfers from/(to) other Funds or Reserves Total $ 28,315,663 $ 35,174,030 $ 41,258,164 $ 43,000,100 $ 43,000,100 4,081,721 -011,248,316 -0-08,860,780 -0(9,506,380) -0-0$ 41,258,164 $ 35,174,030 $ 43,000,100 $ 43,000,100 $ 43,000,100 E-11 REVENUES AND EXPENDITURES COMPARISONS AND FUND BALANCE OTHER FUNDS Actual FY 2006 SPECIAL REVENUE FUNDS Beginning Fund Balance Adopted FY 2007 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 $ 30,978,515 $ 33,761,787 $ 42,986,370 $ 42,980,970 $ 42,980,970 Revenues and Other Sources Expenditures 231,877,980 (229,088,027) Surplus/(Deficit) Transfers from/(to) other Funds or Reserves 341,900,580 (341,900,580) 2,789,953 -0- 9,217,902 -0- 245,876,129 (245,881,529) (5,400) -0- 282,395,300 (282,395,300) 380,572,360 (380,572,360) -0- -0- -0- -0- Ending Fund Balance $ 42,986,370 $ 33,761,787 $ 42,980,970 $ 42,980,970 $ 42,980,970 ENTERPRISE FUNDS Beginning Fund Balance $ (18,560,531) $ 42,124,882 $ (16,769,204) $ (20,552,444) $ (18,162,374) Revenues and Other Sources Expenditures Surplus/(Deficit) Transfers from/(to) other Funds or Reserves 182,286,773 (177,333,062) 185,806,650 (194,724,640) 180,882,048 (184,665,288) 205,011,640 (202,621,570) 4,953,711 (8,917,990) (3,783,240) 2,390,070 969,260 -0- -0- (3,162,384) -0- -0- 210,548,280 (209,579,020) Ending Fund Balance $ (16,769,204) $ 33,206,892 $ (20,552,444) $ (18,162,374) $ (17,193,114) DEBT SERVICE FUNDS Beginning Fund Balance $ Revenues and Other Sources Expenditures -0- $ 38,615,560 (38,615,560) Surplus/(Deficit) -0- $ 43,677,900 (43,677,900) -0- $ 42,477,900 (42,477,900) -0- $ 44,653,030 (44,653,030) -044,860,140 (44,860,140) -0- -0- -0- -0- -0- Ending Fund Balance $ -0- $ -0- $ -0- $ -0- $ -0- INTERNAL SERVICE FUNDS Beginning Fund Balance $ -0- $ -0- $ -0- $ -0- $ -0- -0-0- -0-0- -0-0- -0-0- -0- -0- -0- -0- -0- Revenues and Other Sources Expenditures Surplus/(Deficit) 55,000,000 (55,000,000) Ending Fund Balance $ -0- $ -0- $ -0- $ -0- $ -0- CAPITAL PROJECTS FUND Beginning Fund Balance $ -0- $ -0- $ -0- $ -0- $ -0- Revenues and Other Sources Expenditures 61,111,629 (61,111,629) Surplus/(Deficit) Ending Fund Balance $ 51,059,900 (51,059,900) 41,357,529 (41,357,529) 35,331,000 (35,331,000) 60,948,300 (60,948,300) -0- -0- -0- -0- -0- -0- $ -0- $ -0- $ -0- $ -0- E-12 REVENUE DETAIL ALL FUNDS SUMMARY Actual FY 2006 FINANCIAL RESOURCES GENERAL FUND SPECIAL REVENUE FUNDS ENTERPRISE FUNDS DEBT SERVICE FUNDS INTERNAL SERVICE FUNDS CAPITAL PROJECTS FUNDS TOTAL ALL FUNDS General Fund Primary 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 Transfers to Other Funds 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 2007 Estimated FY 2007 $ 378,344,937 $ 470,941,550 $ 430,406,911 $ 231,877,980 341,900,580 245,876,129 177,333,062 194,724,640 184,665,288 38,615,560 43,677,900 42,477,900 -0-0-061,111,629 51,059,900 41,357,529 Approved FY 2008 476,950,980 $ 282,395,300 202,621,570 44,653,030 -035,331,000 Adopted FY 2008 511,588,670 380,572,360 209,579,020 44,860,140 55,000,000 60,948,300 $ 887,283,168 $ 1,102,304,570 $ 944,783,757 $ 1,041,951,880 $ 1,262,548,490 $ 9,727,445 $ 9,733,050 $ 9,684,390 $ 190,385,477 199,500,000 204,700,000 28,033,063 29,160,000 29,840,000 20,552,526 21,115,650 21,945,000 11,356,932 14,970,610 13,598,191 2,650,861 3,129,100 3,647,100 74,979,228 75,181,070 74,248,883 52,493,683 60,500,000 60,158,000 25,926,236 24,685,570 24,205,140 9,031,937 17,422,950 10,940,930 (57,529,243) (47,890,350) (46,108,753) 10,736,792 50,785,800 16,612,122 -04,078,100 2,970,400 -08,570,000 3,965,508 10,219,700 $ 209,500,000 29,970,000 21,540,650 15,236,680 3,129,100 79,130,070 69,580,000 25,258,430 18,385,220 (47,468,510) 41,999,640 -0470,000 10,327,380 212,870,000 30,021,000 22,640,000 13,655,850 3,147,100 77,348,820 74,600,000 33,029,120 17,392,510 (99,582,080) 76,847,800 29,784,790 9,506,380 $ 378,344,937 $ 470,941,550 $ 430,406,911 $ 476,950,980 $ 511,588,670 $ 46,108,753 $ 450,000 600,970 2,834,400 63,223,348 18,483,740 2,280,000 96,277,432 4,541,862 2,175,490 3,575,800 5,324,334 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 44,582,080 541,500 610,000 3,441,600 116,211,740 18,890,360 2,280,000 153,877,860 19,257,190 9,800,000 4,400,100 6,679,930 $ 231,877,980 $ 341,900,580 $ 245,876,129 $ 282,395,300 $ 380,572,360 57,529,243 $ 47,890,350 $ 416,176 597,980 595,570 660,000 2,302,510 3,434,250 62,135,298 112,201,320 17,688,401 18,496,240 2,555,153 2,280,000 75,653,902 133,299,380 2,167,299 8,742,500 2,454,991 2,175,490 1,539,920 5,717,400 6,839,517 6,405,670 E-13 REVENUE DETAIL ALL FUNDS SUMMARY Actual FY 2006 FINANCIAL RESOURCES Enterprise Funds Environmental Services Golf Course Water Utility Total Enterprise Funds Debt Service Funds Secondary Property Tax State Shared Taxes Total Debt Service Funds Internal Service Funds Risk Management Fund TSRS* Trust Fund Total Internal Service Funds Capital Projects Funds Bond Funds Proceeds Total Capital Projects Funds $ Adopted FY 2007 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 35,098,360 $ 39,465,240 $ 38,477,110 $ 11,872,702 10,978,050 10,337,598 130,362,000 144,281,350 135,850,580 47,460,910 $ 10,908,050 144,252,610 52,043,200 11,063,820 146,472,000 $ 177,333,062 $ 194,724,640 $ 184,665,288 $ 202,621,570 $ 209,579,020 $ 21,697,938 $ 16,917,622 26,808,660 $ 16,869,240 25,608,660 $ 16,869,240 27,815,830 $ 16,837,200 28,022,940 16,837,200 $ 38,615,560 $ 43,677,900 $ 42,477,900 $ 44,653,030 $ 44,860,140 $ -0-0- $ -0-0- $ -0-0- $ -0-0- $ 15,000,000 40,000,000 $ -0- $ -0- $ -0- $ -0- $ 55,000,000 $ 61,111,629 $ 51,059,900 $ 41,357,529 $ 35,331,000 $ 60,948,300 $ 61,111,629 $ 51,059,900 $ 41,357,529 $ 35,331,000 $ 60,948,300 *Tucson Supplemental Retirement System E-14 GENERAL FUND Actual FY 2006 FINANCIAL RESOURCES Approved FY 2008 Adopted FY 2008 $ Business Privilege Tax $ 190,385,477 $ 199,500,000 $ 204,700,000 $ 209,500,000 $ 212,870,000 Total Licenses and Permits Application Fees Sign Permits Parking Meter Collections Vehicle Permits 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 $ 9,733,050 $ Estimated FY 2007 Primary Property Tax Other Local Taxes Public Utility Tax Transient Occupancy Tax Room Tax Occupational Taxes Liquor Taxes Use Tax 9,727,445 $ Adopted FY 2007 9,684,390 $ 10,219,700 $ 10,327,380 7,585,462 $ 7,750,000 $ 7,212,000 $ 7,750,000 $ 7,210,000 10,206,786 10,210,000 10,850,000 10,620,000 10,731,000 2,069,415 2,280,000 2,345,000 2,330,000 2,390,000 2,044,040 2,470,000 2,143,000 2,520,000 2,140,000 721,117 810,000 805,000 830,000 810,000 5,406,243 5,640,000 6,485,000 5,920,000 6,740,000 $ 28,033,063 $ 29,160,000 $ 29,840,000 $ 29,970,000 $ 30,021,000 $ 233,440 $ 291,430 287,264 390,451 171,625 267,000 $ 340,000 388,650 360,000 300,000 250,000 $ 310,000 290,000 565,000 260,000 267,000 $ 340,000 398,650 365,000 310,000 260,000 310,000 351,000 580,000 389,000 3,313,223 976,908 3,180,000 1,090,000 3,610,000 1,010,000 3,180,000 1,090,000 3,480,000 1,090,000 604,752 677,556 630,000 760,000 630,000 720,000 630,000 760,000 630,000 680,000 13,605,877 13,800,000 14,300,000 14,200,000 14,870,000 $ 20,552,526 $ 21,115,650 $ 21,945,000 $ 21,540,650 $ 22,640,000 E-15 GENERAL FUND Actual FY 2006 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/Fill the Gap 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 10,281,066 $ Sub-Total Total Grants and Shared Taxes Shared State Taxes Auto Lieu Taxes State Sales Tax Sub-Total 594,466 $ 21,667 3,460 6,343 5,761 241,229 192,920 1,189 8,831 1,075,866 1,900,000 $ 300,000 940,000 6,700,000 160,000 16,000 320,000 1,260,000 261,200 11,857,200 Estimated FY 2007 1,727,270 $ 59,970 653,060 5,852,310 144,470 9,660 278,440 1,291,600 261,200 10,277,980 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 Adopted FY 2008 1,760,000 60,000 670,000 5,970,000 150,000 10,000 280,000 1,280,000 431,590 10,611,590 660,000 $ 25,000 10,000 10,000 8,000 2,169,410 220,000 1,000 10,000 600,970 $ 18,860 1,720 7,250 7,130 2,470,211 200,130 1,960 11,980 670,000 $ 30,000 10,000 10,000 10,000 2,184,260 220,000 1,000 10,000 610,000 20,000 10,000 10,000 10,000 2,184,260 190,000 1,000 9,000 3,113,410 3,320,211 3,145,260 3,044,260 $ 11,356,932 $ 14,970,610 $ 13,598,191 $ 15,236,680 $ 13,655,850 Use of Money and Property Rentals and Leases Tenant Rent Telephone Pay Booths Interest Earnings Total 1,417,684 $ 241,069 804,042 5,746,128 139,624 11,913 277,316 1,171,925 471,365 Adopted FY 2007 $ 677,896 749,407 9,382 1,214,176 1,112,000 709,100 8,000 1,300,000 1,530,000 709,100 8,000 1,400,000 1,112,000 709,100 8,000 1,300,000 1,530,000 709,100 8,000 900,000 2,650,861 $ 3,129,100 $ 3,647,100 $ 3,129,100 $ 3,147,100 $ 23,134,336 $ 22,900,000 $ 22,805,000 $ 23,820,000 $ 23,260,000 51,801,435 51,930,000 51,153,000 55,050,000 53,970,000 74,935,771 74,830,000 E-16 73,958,000 78,870,000 77,230,000 GENERAL FUND Actual FY 2006 FINANCIAL RESOURCES Grants and Shared Taxes (Continued) State and Local Grants Parks and Recreation Grants $ General Services Grants Sub-Total Total State Revenue Sharing 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 2007 Approved FY 2008 31,780 $ 11,677 269,070 $ 82,000 218,033 $ 72,850 194,070 $ 66,000 43,457 351,070 290,883 260,070 Adopted FY 2008 45,610 73,210 118,820 $ 74,979,228 $ 75,181,070 $ 74,248,883 $ 79,130,070 $ 77,348,820 $ 52,493,683 $ 60,500,000 $ 60,158,000 $ 69,580,000 $ 74,600,000 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 Indirect Cost Allocation to Enterprise Funds Other Sub-Total Adopted FY 2007 26,000 $ 26,000 $ 26,000 $ 26,000 $ 26,000 756,711 849,650 983,320 852,510 852,510 26,947 25,000 20,000 25,000 25,000 84,000 142,849 -0- 148,920 -0-0- 249,820 -0-0- 148,920 -0-0- 173,730 -08,391,880 33,714 25,000 20,000 25,000 25,000 1,070,221 1,074,570 1,299,140 1,077,430 9,494,120 117,777 120,000 120,000 120,000 120,000 7,184,781 74,411 141,625 -0- 8,030,000 100,000 70,000 1,000 7,200,000 95,000 200,000 1,000 8,430,000 100,000 70,000 1,000 7,588,000 100,000 700,000 1,000 7,518,594 8,321,000 7,616,000 8,721,000 8,509,000 9,931,519 2,227,572 583,318 206,991 9,100,000 1,990,000 610,000 50,000 9,100,000 1,990,000 610,000 50,000 9,190,000 1,990,000 610,000 50,000 9,000,000 1,800,000 530,000 50,000 12,949,400 11,750,000 11,750,000 11,840,000 11,380,000 E-17 GENERAL FUND Actual FY 2006 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 982,215 $ 458,412 141,353 58,971 320,007 170,601 203,554 45,742 7,684 176,234 141,213 1,065,103 264,017 108,090 23,263 31,471 104,457 47,373 38,261 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 Estimated 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 Adopted FY 2008 960,000 320,000 100,000 40,000 260,000 160,000 160,000 40,000 70,000 340,000 100,000 686,000 220,000 70,000 20,000 20,000 40,000 20,000 20,000 4,388,021 3,540,000 3,540,000 3,620,000 3,646,000 $ 25,926,236 $ 24,685,570 $ 24,205,140 $ 25,258,430 $ 33,029,120 $ 2,615,165 $ 46,915 505,322 51,080 57,492 620,000 $ 200,000 150,000 40,000 100,000 620,000 $ 202,000 192,110 42,550 67,070 620,000 $ 200,000 150,000 40,000 100,000 620,000 200,000 160,000 40,000 100,000 3,275,974 1,110,000 1,123,730 1,110,000 1,120,000 51,484 116,992 1,963 235,248 590,526 40,000 200,000 2,000 50,000 170,000 40,000 200,000 2,000 65,490 170,000 40,000 200,000 2,000 50,000 170,000 40,000 200,000 2,000 65,000 200,000 996,213 462,000 477,490 462,000 507,000 E-18 GENERAL FUND Actual FY 2006 FINANCIAL RESOURCES Non-Revenue Receipts (Continued) Sundry Income Reimbursement Court Attorney $ Fees Employee Fees Election Campaign Contributions Open Space Contributions Other 85,217 $ Adopted FY 2007 80,000 $ Estimated FY 2007 86,210 $ Approved FY 2008 Adopted FY 2008 80,000 $ 90,000 8,536 8,702 10,364 33,644 8,000 50,000 10,000 130,000 7,340 50,000 11,260 101,520 8,000 50,000 10,000 130,000 8,000 50,000 10,000 155,000 146,463 278,000 256,330 278,000 313,000 Other General Revenues -0- 2,000,000 -0- 2,000,000 2,000,000 Off Duty Police Program 2,961,471 3,003,260 3,002,907 3,003,260 3,003,260 Other Funding Sources 1,651,816 10,569,690 6,080,473 11,531,960 10,449,250 9,031,937 $ 17,422,950 $ 18,385,220 $ 17,392,510 Sub-Total Total $ 10,940,930 $ Transfers to Other Funds $ (57,529,243) $ (47,890,350) $ (46,108,753) $ (47,468,510) $ (99,582,080) Certificates of Participation $ 10,736,792 $ 50,785,800 $ 16,612,122 $ Brought Forward $ -0- $ 4,078,100 $ 2,970,400 $ -0- $ 29,784,790 Use/Transfers to Fund Balance Uses of Fund Balance Transfers to Fund Balance $ -0- $ -0- 8,570,000 $ -0- 3,965,508 $ -0- 470,000 $ -0- 9,506,380 -0- Use/Transfers to Fund Balance $ -0- $ 8,570,000 $ 3,965,508 $ 470,000 $ 9,506,380 Total General Fund 41,999,640 $ 76,847,800 $ 378,344,937 $ 470,941,550 $ 430,406,911 $ 476,950,980 $ 511,588,670 E-19 GENERAL FUND HIGHLIGHTS Primary Property Tax The city's Fiscal Year 2008 projected primary property tax revenue is $594,330 higher than the Fiscal Year 2007 adopted revenue. Although the tax rate will be lower, assessed property valuations have risen, which results in the additional revenue. The Fiscal Year 2008 levy of $10,327,380 is set at the maximum allowable primary property tax as estimated by the Pima County Assessor. Business Privilege Tax Revenue from the business privilege tax, or sales tax, is a funding source for both the General Fund and the Special Revenue Funds. For Fiscal Year 2008, the total projected sales tax collections are $212,870,000, an increase of $13,370,000 over the Fiscal Year 2007 Adopted Budget. While the Fiscal Year 2007 revenue growth continued at a strong 7.5%, Fiscal Year 2008 revenues are projected to grow at 4.5% after adjusting for one-time payments received in Fiscal Year 2007. Other Local Taxes Other local tax revenues projected for Fiscal Year 2008 are increased by $861,000 over adopted Fiscal Year 2007 amounts, or a 3% increase. Revenue increases are expected from the tourism sector and the use tax. However, these are offset by reductions in occupational taxes and the public utility tax. Licenses and Permits For Fiscal Year 2008, this revenue source is increased by $1,524,350 or 7% over the adopted Fiscal Year 2007 revenues. The majority of that growth is due to an increase in Utility Franchise Fees, which is partially due to an amendment to the Southwest Gas Corporation agreement that provides additional funds to be set aside for utility relocations. Fines, Forfeitures, and Penalties Total revenues in Fiscal Year 2008 from all fines, forfeitures, and penalties are forecast to be $1,314,760 lower than Fiscal Year 2007 adopted revenues. The decrease reflects an adjustment for court revenues transferred to the state. The projected amounts for Fiscal Year 2008 were lowered to be consistent with prior year collections. Use of Money and Property A small increase of $18,000 over the Fiscal Year 2007 adopted revenues is expected for Fiscal Year 2008. Falling interest rates result in an anticipated loss of $400,000 in interest earnings. That loss is offset by a $418,000 increase in rentals and leases, based on Fiscal Year 2007 estimated revenues. Grants and Shared Taxes Fiscal Year 2008 grant and shared taxes are increased by $2,167,750, which is 3% more than the Fiscal Year 2007 adopted revenues. That increase is primarily due to an expected increase of $2,040,000 in shared state sales tax. Auto lieu taxes are projected to increase $360,000. Those increases are offset by an anticipated reduction of $232,250 in state grants. E-20 GENERAL FUND State Revenue Sharing An increase in state-shared income taxes of $14,100,000 is expected for Fiscal Year 2008. The Fiscal Year 2008 distribution from the state is based on Fiscal Year 2006 state income tax collections. Charges for Current Services Total charges for current services for Fiscal Year 2008 are increased by $8,343,550 over Fiscal Year 2007 adopted revenues. The increase is primarily due to a change in the accounting for the indirect cost allocation of $8,391,880 from the General Fund to the Enterprise Funds. In prior years, this charge for general government support was done as a negative expense in the Non-Departmental budget. For Fiscal Year 2008, this support is shown as revenue from the Enterprise Funds to the General Fund. Excluding the indirect cost allocation revenue, there is a decrease of $48,330 in this revenue category. Increases are anticipated in police vehicle impoundment and recreation charges. However, these are offset by expected reductions in Development Services charges as the housing market cools and in emergency medical transport revenues, because increases included for the Fiscal Year 2007 Adopted Budget did not materialize. Non-Revenue Receipts These sources are projected to decrease by $30,440 for Fiscal Year 2008, primarily due to reductions in the Other Funding Sources category. Transfers to Other Funds A portion of the business privilege tax (city sales tax)) is transferred to Special Revenue Funds to support the Mass Transit Fund, the ParkWise Fund, the Public Safety Training Academy Fund, and the Tucson Convention Center Fund. For Fiscal Year 2008, the $44,582,080 in city sales tax allocated to Special Revenue Funds decreased by $3,308,270, primarily due to the transfer of the Tucson Convention Center’s lease payment to the General Fund. Also transferred out is $55,000,000 to Internal Service Funds for Risk Management Fund and Pension Fund expenditures. This budgeted amount is new in Fiscal Year 2008 due to requirements of the Government Accounting Standards Board and the state’s Auditor General. Certificates of Participation Certificates of participation increased $26,062,000 based on new financing requirements in Fiscal Year 2008, primarily for public safety and transit facilities. Brought Forward Brought Forward funding in Fiscal Year 2008 is increased by $25,706,690 over the Fiscal Year 2007 adopted amount based on Fiscal Year 2008 carryforward requirements. Use/Transfers to Fund Balances The Use of Fund Balance increases by $936,380 for Fiscal Year 2008. This includes the use of reserves set aside for the new tax revenue management system and fire apparatus, and for partial funding of the employee pay adjustment. E-21 SPECIAL REVENUE FUNDS Actual FY 2006 FINANCIAL RESOURCES General Fund Contributions Library Fund ParkWise Fund Public Safety Academy Fund Tucson Convention Center Fund Mass Transit Fund Total Licenses and Permits ParkWise Meter Collections Hooded Meter Fees 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 2007 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 $ 9,978,956 $ -06,517,893 6,736,966 34,295,428 -0- $ -05,583,860 6,624,260 35,682,230 -0- $ 1,469,684 6,622,871 6,452,794 31,563,404 -0- $ -05,614,050 6,444,260 35,410,200 -01,103,820 5,265,840 2,932,320 35,280,100 $ 57,529,243 $ 47,890,350 $ 46,108,753 $ 47,468,510 $ 44,582,080 $ 400,675 $ 15,501 582,980 $ 15,000 435,000 $ 15,000 597,980 $ 15,000 526,500 15,000 $ 416,176 $ 597,980 $ 450,000 $ 612,980 $ 541,500 $ 595,570 $ 660,000 $ 600,970 $ 670,000 $ 610,000 $ 595,570 $ 660,000 $ 600,970 $ 670,000 $ 610,000 $ 1,678,712 $ 2,914,250 $ 2,316,000 $ 2,891,600 $ 2,891,600 7,098 38,748 577,952 -0-0520,000 -0-0518,400 -0-0550,000 $ 2,302,510 $ 3,434,250 $ 2,834,400 $ 3,441,600 $ 3,441,600 $ 41,975,903 $ (8,785,169) 2,592,000 42,468,000 $ (8,827,240) 2,592,000 43,654,940 $ (8,411,490) 2,592,000 44,167,000 $ (7,656,870) 2,592,000 45,934,000 (8,041,140) 2,592,000 35,782,734 36,232,760 37,835,450 39,102,130 40,484,860 E-22 -0-0550,000 SPECIAL REVENUE FUNDS Actual FY 2006 FINANCIAL RESOURCES Grants and Shared Taxes (Continued) State and Local Grants City Attorney Grants City Court Grants City Manager Grants Community Services Grants Fire Grants Library Grants Library - Pima County Support Parks and Recreation Grants Police Grants Transportation Grants Urban Planning Information Technology General Services Grants General Expense Debt Service Pima County Bonds $ Sub-Total Total 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 $ $ Adopted FY 2007 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 75,401 $ -0-063,600 37,391 174,129 11,871,008 812,077 1,373,805 6,605,071 -015,000 -0-01,300,000 4,025,082 148,260 $ 362,190 -0700,000 350,000 -0-0966,390 1,181,980 52,280,140 210,000 30,000 500,000 200,000 -019,039,600 112,920 $ 89,880 -0573,743 381,433 -0-0289,111 1,619,829 12,525,710 210,000 98,131 -0-0-09,487,141 148,260 $ 363,970 -0700,000 350,000 -0-0966,390 1,107,110 33,924,040 210,000 30,000 500,000 200,000 -015,523,000 161,920 370,830 150,000 700,000 350,000 -0-01,264,330 1,436,700 51,456,500 380,000 30,000 500,000 200,000 -018,726,600 26,352,564 75,968,560 25,387,898 54,022,770 75,726,880 63,223,348 $ 93,124,900 $ 116,211,740 62,135,298 $ 112,201,320 $ 387,098 $ 883,240 $ 747,390 $ 887,530 $ 887,530 622,646 -0- -0- -0- -0- 6,655,255 1,639,812 28,497 126,793 4,383,076 6,750,000 2,340,000 20,000 310,000 3,600,000 7,080,750 1,651,060 60,190 70,000 3,948,840 6,850,000 2,340,000 20,000 320,000 3,760,000 7,400,000 1,800,000 38,000 350,000 3,567,000 386,480 21,252 330,000 180,000 409,160 200,000 330,000 180,000 330,000 205,000 13,241,165 13,530,000 13,420,000 13,800,000 13,690,000 E-23 SPECIAL REVENUE FUNDS Actual FY 2006 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 Public Housing Capital Fund Miscellaneous Federal Housing Funds HOPE VI Funds Sub-Total Other Federal Revenue Community Development Block Grant Entitlement City Attorney Grants City Manager Grants Community Services Grants City Court Grants Fire Grants Information Technology Grants Library Grants Parks and Recreation Grants Police Grants Urban Planning Grants Mass Transit Grants Transportation Grants Adopted FY 2007 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 1,163,801 $ 174,350 716,055 72,000 45,503 536,682 40,466 171,482 341,331 175,822 1,500,000 $ 175,000 981,000 120,000 126,000 516,000 60,000 136,000 363,000 106,000 1,575,750 $ 233,420 924,750 110,000 31,820 652,910 23,430 225,610 340,000 198,660 1,590,000 $ 188,000 1,007,000 127,000 126,000 557,000 60,000 146,000 404,000 106,000 1,588,290 188,000 879,500 127,000 195,000 557,220 62,000 145,790 404,030 166,000 3,437,492 4,083,000 4,316,350 4,311,000 4,312,830 $ 17,688,401 $ 18,496,240 $ 18,483,740 $ 18,998,530 $ 18,890,360 $ 2,555,153 $ 2,280,000 $ 2,280,000 $ 2,280,000 $ 2,280,000 $ 3,651,284 $ 3,818,200 $ 3,741,819 $ 3,868,200 $ 3,877,660 3,437,747 25,963,775 1,907,790 2,710,025 9,142,280 27,710,190 3,388,130 4,889,270 8,742,280 28,000,776 3,583,816 5,489,519 8,277,500 27,603,790 3,203,200 4,789,350 12,146,060 27,727,370 3,671,320 5,372,980 1,575,873 9,101,680 7,687,530 5,907,280 5,610,260 39,246,494 58,049,750 57,245,740 53,649,320 58,405,650 7,650,383 11,353,760 8,580,356 8,010,290 10,894,800 302,442 -0406,559 26,597 1,314,640 -053,250 313,226 4,614,284 192,227 15,471,293 6,026,632 338,440 -0398,540 -0911,880 300,000 -0581,590 5,516,110 390,000 34,853,610 17,855,700 250,180 -0383,600 -0480,601 -0-0546,084 6,207,011 390,000 8,468,690 13,591,045 338,440 -0317,870 -0556,840 300,000 -0581,590 5,373,950 390,000 25,981,510 10,852,940 344,620 250,000 1,584,270 -02,874,440 300,000 -0598,630 15,141,670 460,000 34,726,870 27,196,910 E-24 SPECIAL REVENUE FUNDS Actual FY 2006 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 ParkWise Total 75,249,630 75,653,902 $ 133,299,380 $ 134,125 $ -039,031,692 Approved FY 2008 1,600,000 $ 500,000 54,803,430 Adopted FY 2008 600,000 500,000 95,472,210 96,277,432 $ 108,452,750 $ 153,877,860 -0- $ -0- -0- $ -0- -0- $ -0- -0-0- 426,870 -0- -0- -0- -0- 144 1,210,886 347,095 170,272 -012,032 -0350,000 1,525,000 6,852,500 -015,000 -01,111,862 1,343,000 2,075,000 -012,000 -0350,000 1,400,000 -0-015,000 -0951,000 1,586,490 15,634,700 570,000 515,000 1,740,429 8,742,500 4,541,862 1,765,000 19,257,190 $ 2,167,299 $ 8,742,500 $ 4,541,862 $ 1,765,000 $ 19,257,190 $ 2,454,991 $ -0- -0- $ 2,175,490 -0- $ 2,175,490 -0- $ 1,605,000 9,800,000 -0- $ 2,454,991 $ 2,175,490 $ 2,175,490 $ 1,605,000 $ 9,800,000 $ 802,100 $ 737,820 -0- 3,557,300 $ 2,160,100 -0- 1,415,700 $ 2,160,100 -0- -0- $ -0-0- 1,387,100 2,874,000 139,000 $ 1,539,920 $ 5,717,400 $ 3,575,800 $ -0- $ 4,400,100 Sub-Total Total 2,250,000 $ 500,000 Estimated FY 2007 406,987 $ 19,883 Other Non-Revenue Receipts Library Fund Contributions Highway User Revenue Fund Impact Fees Mass Transit Fund ParkWise Shuttle Certificates of Participation ParkWise Fleet Services Fund 35,875 $ -036,407,408 Sub-Total Total Adopted FY 2007 E-25 SPECIAL REVENUE FUNDS Actual FY 2006 FINANCIAL RESOURCES Use of Fund Balance Highway User Revenue Fund ParkWise Fund Public Safety Academy Tucson Convention Center Adopted FY 2007 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 $ 5,233,210 $ 1,146,946 943 458,418 6,247,670 $ -0-0158,000 5,022,264 $ -0-0302,070 3,866,030 $ -0-0110,000 6,569,960 -0-0109,970 Total $ 6,839,517 $ 6,405,670 $ 5,324,334 $ 3,976,030 $ 6,679,930 Total Special Revenue Funds $ 231,877,980 $ 341,900,580 $ 245,876,129 $ 282,395,300 $ 380,572,360 E-26 SPECIAL REVENUE FUNDS HIGHLIGHTS General Fund Contributions Changes from adopted Fiscal Year 2007 contribution amounts reflect increases and decreases necessary to offset the expenditures of specific funds based on their projected budgets and revenues. For Fiscal Year 2008, General Fund Contributions decreased a total of $3,308,270. The transfer of the Tucson Convention Center’s Rio Nuevo lease payment to the General Fund accounts for most of that decrease. Contributions to the Public Safety Academy and the Mass Transit funds also decreased, but those were offset by the contribution to ParkWise. Licenses and Permits This revenue consists of parking meter collections and fees, which are projected to decrease by $56,480 from the Fiscal Year 2007 adopted revenues. Anticipated increases from new parking meter installations in Fiscal Year 2006 have not materialized. Fines, Forfeitures, and Penalties Parking violation fine revenues, the only revenue in this category, are projected to decrease by $50,000 from the adopted Fiscal Year 2007 budget. Current revenue collections do not bear out the additional revenue that was added to the Fiscal Year 2007 Adopted Budget Use of Money and Property For Fiscal Year 2008, this revenue category is increased by just $7,350 over the adopted budget for Fiscal Year 2007. While interest earnings are anticipated to be $30,000 more, off-street parking revenue is decreased by $22,650. Increased parking garage revenues from the Pennington Garage have not been realized. Grants and Shared Taxes For Fiscal Year 2008, grants and shared taxes are increased by $4,010,420 over the adopted budget for Fiscal Year 2007. Shared state fuel taxes increased by $4,252,100, but grant funding decreased by $241,680. Charges for Current Services Charges for services in the Special Revenue Funds are from three sources: the Public Safety Academy, Sun Tran/Van Tran public transit, and the Tucson Convention Center. These user fees are projected to increase by $394,120 in Fiscal Year 2008 over the adopted Fiscal Year 2007 revenues. While revenues from the Public Safety Academy are projected to remain essentially the same, increases are anticipated in public transit and convention center revenues. Federal Grants Fiscal Year 2008 federal funding is anticipated to be $20,578,480 higher than the adopted budget for Fiscal Year 2007 based on anticipated grant awards and the completion of projects. Increased capacity of $10 million is included for Homeland Security grants to urban areas. Most of the rest of the increase is for Transportation transit and roadway grants. Non-Revenue Receipts The $10,514,690 increase in Fiscal Year 2008 is primarily due to the programming of impact fee revenue. While capacity for impact fees was included in the Fiscal Year 2007 budget, that capacity has been increased by $8,782,200 based on actual impact fees collected. Other major increases include $500,000 for ParkWise’s GemRide shuttle revenue, $570,000 in lease payments at Transportation facilities, and $601,000 in civic contributions and special assessments. E-27 SPECIAL REVENUE FUNDS Certificates of Participation Certificates of Participation totaling $9,800,000 are added in Fiscal Year 2008 for the Depot Plaza Garage. That increase is offset by a correction in the funding source for replacement fire apparatus from the Fleet Service Fund to the General Fund. Brought Forward Brought forward funding is decreased by $1,317,300 for Fiscal Year 2008 due to less carryforward needed for unfinished projects. Use of Fund Balance For Fiscal Year 2008, the use of fund balances is increased by $274,260 from the adopted budget for Fiscal Year 2007. The increase is based on reserve requirements for Transportation and ParkWise programs and projects, and an increased use of developer in-lieu fees collected in prior years. E-28 ENTERPRISE FUNDS FINANCIAL RESOURCES Actual FY 2006 Environmental Services Fund Operating Revenue Commercial Refuse Services $ Residential Refuse Services Brush and Bulky Refuse Service Landfill Services Charges Self Haul Fee Refuse Penalties Recycling 6,496,796 $ 19,741,538 3,213,739 7,536,460 1,177,281 144,812 1,326,093 6,460,600 $ 19,772,000 3,295,000 7,209,000 1,224,000 158,000 1,369,000 7,148,100 $ 20,199,890 3,288,360 9,037,000 1,221,000 158,000 1,376,400 6,460,600 $ 20,167,000 3,361,000 7,353,000 1,248,000 161,000 1,396,000 7,148,100 20,401,890 3,321,240 8,000,000 1,248,480 164,000 1,396,380 39,636,719 39,487,600 42,428,750 40,146,600 41,680,090 -0310,846 -0-0-0104,506 -0(4,953,711) 196,000 314,500 500,500 410,000 1,501,000 -0-0(2,944,360) 346,000 314,500 138,200 410,000 888,000 80,000 -0(6,128,340) 196,000 314,500 181,500 410,000 8,144,000 -0-0(1,931,690) 196,000 314,500 181,500 410,000 8,424,000 1,000,000 2,983,380 (3,146,270) (4,538,359) (22,360) (3,951,640) 7,314,310 10,363,110 $ 35,098,360 $ 39,465,240 $ 38,477,110 $ 47,460,910 $ 52,043,200 $ 781,145 $ 4,836,872 1,533,518 952,158 3,769,009 -0- 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 1,809,958 -0-0- 1,304,460 $ 5,557,200 1,665,980 1,816,900 563,510 -0- 1,304,460 5,557,200 1,665,980 1,816,900 719,280 -0- $ 11,872,702 $ 10,978,050 $ 10,337,598 $ 10,908,050 $ 11,063,820 Sub-Total Non-Operating Revenue Interest Earnings Household Hazardous Waste Federal Grants State and Local Grants Certificates of Participation Miscellaneous Revenues Brought Forward Funds Transfers to Reserves Sub-Total Total Golf Course Fund El Rio Randolph Fred Enke Silverbell Other Certificates of Participation Total Adopted FY 2007 E-29 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 ENTERPRISE FUNDS Actual FY 2006 FINANCIAL RESOURCES Water Utility Operating Water Revenue Potable Water Sales Central Arizona Project Surcharge Reclaimed Water Sales Connection Fees Development Plan Review/ Inspection Fees Miscellaneous Revenue Billing Services Sub-Total Non-Operating Water Revenue Interest Earnings Tucson Airport Remediation Project Reimbursement Water System Equity Fees CAP Water Resource Fees Area Development Fees Transfers from Working Capital Miscellaneous Grants Sub-Total $ Adopted FY 2007 98,096,000 $ 101,813,000 $ 1,966,000 1,983,000 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 96,451,000 $ 110,762,000 $ 108,113,000 1,848,000 2,026,000 1,938,000 5,856,000 3,767,000 1,867,000 6,103,000 2,900,000 -0- 5,883,000 3,100,000 1,700,000 6,632,000 2,900,000 -0- 7,038,000 2,800,000 1,700,000 3,374,000 2,962,000 4,923,000 2,992,000 2,909,000 2,973,000 8,028,000 3,022,000 6,017,000 3,003,000 117,888,000 120,714,000 114,864,000 133,370,000 130,609,000 2,216,000 1,172,000 1,233,000 816,000 1,727,000 816,000 1,208,000 908,000 1,696,000 908,000 7,844,000 -01,231,000 -011,000 8,332,000 -0474,000 11,862,350 850,000 7,182,000 -01,100,000 9,911,580 250,000 8,594,000 -0474,000 (458,380) 156,990 8,181,000 1,306,000 815,000 2,177,010 779,990 12,474,000 23,567,350 20,986,580 10,882,610 15,863,000 Total $ 130,362,000 $ 144,281,350 $ 135,850,580 $ 144,252,610 $ 146,472,000 Total Enterprise Funds $ 177,333,062 $ 194,724,640 $ 184,665,288 $ 202,621,570 $ 209,579,020 E-30 ENTERPRISE FUNDS HIGHLIGHTS Environmental Services Environmental Services total revenues projected for Fiscal Year 2008 are increased by $12,577,960 over the Fiscal Year 2007 adopted revenues. Operating revenues are expected to increase by $2,192,490 from collection and landfill charges based on customer demand. The other major increases are an additional $6,923,000 in certificates of participation for landfill projects and $1,000,000 in capacity for possible new revenues. For Fiscal Year 2008, the transfer to reserves is anticipated to be $201,910 more than the adopted budget for Fiscal Year 2007. Golf Fund Golf revenues are projected to increase by $85,770 for Fiscal Year 2008 from pro shop and concessions activities. Water Utility The projected revenue for Fiscal Year 2008 reflects an increase of $2,190,650 over the Fiscal Year 2007 adopted amount based on growth in service demand and a rate increase that will generate a 6.2% more in water sale revenues. The revenue increase in Fiscal Year 2008 is partially driven by the need to purchase, recharge, and recover additional Central Arizona Project water. E-31 DEBT SERVICE FUNDS Actual FY 2006 FINANCIAL RESOURCES General Obligation Debt Service Secondary Property Tax Adopted FY 2007 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 $ 21,697,938 $ 26,808,660 $ 25,608,660 $ 27,815,830 $ 28,022,940 $ 21,697,938 $ 26,808,660 $ 25,608,660 $ 27,815,830 $ 28,022,940 $ 16,917,622 $ 16,869,240 $ 16,869,240 $ 16,837,200 $ 16,837,200 Total $ 16,917,622 $ 16,869,240 $ 16,869,240 $ 16,837,200 $ 16,837,200 Total Debt Service Funds $ 38,615,560 $ 43,677,900 $ 42,477,900 $ 44,653,030 $ 44,860,140 Total Street and Highway Debt Service State Shared Taxes E-32 DEBT SERVICE FUNDS HIGHLIGHTS General Obligation Debt Service General obligation debt service is funded from the secondary property tax. For Fiscal Year 2008, the revenue from the secondary property tax is increased by $1,214,280 over the adopted Fiscal Year 2007 revenue. The increase is due to an anticipated sale of $13.3 million, the last of the 2000 bond authorization, and changes in the debt repayment schedule due to a recent refunding. The current repayment schedule on the outstanding bonds extends to 2021. Street and Highway Debt Service Street and highway debt service is financed entirely from state-shared gasoline taxes and highway user fees and charges. For Fiscal Year 2008, this debt service will decrease by $32,040 from the adopted Fiscal Year 2007 requirement. The city has sold all of the 2000 street and highway revenue bond authorization. The current repayment schedule extends to 2018. E-33 INTERNAL SERVICE FUNDS Actual FY 2006 FINANCIAL RESOURCES Risk Management Internal Service Fund Adopted FY 2007 Estimated FY 2007 Approved FY 2008 Adopted FY 2008 $ -0- $ -0- $ -0- $ -0- $ 15,000,000 $ -0- $ -0- $ -0- $ -0- $ 15,000,000 $ -0- $ -0- $ -0- $ -0- $ 40,000,000 $ -0- $ -0- $ -0- $ -0- $ 40,000,000 Total Internal Service Funds $ -0- $ -0- $ -0- $ -0- $ 55,000,000 Total Tucson Supplemental Retirement System Fund Total E-34 INTERNAL SERVICE FUNDS HIGHLIGHTS Risk Management Internal Service Fund Home Rule and recent Government Accounting Standards require that the city budget include capacity not previously budgeted. In prior year budgets, expenses associated with the city’s risk management program, which includes selfinsurance liability, loss prevention, and wellness functions, was budgeted only in user department budgets. However, those expenses must now be shown in user department budgets and again in the internal service fund’s budget. For Fiscal Year 2008, capacity of $15,000,000 has been estimated. Tucson Supplemental Retirement System Fund The city’s retirement-related expenses are also required to be budgeted both in user departments and in the pension fund. In prior years, pension expenses were budgeted on in the user departments’ budgets. For Fiscal Year 2008, capacity of $40,000,000 has been estimated. E-35 CAPITAL PROJECTS FUNDS Actual FY 2006 FINANCIAL RESOURCES General Obligation Bond Funds Proceeds* Street and Highway Revenue Bond Funds Proceeds Water Revenue Bond Funds Proceeds $ Total Capital Projects Funds $ Adopted FY 2007 Estimated FY 2007 Approved FY 2008 3,301,000 $ Adopted FY 2008 26,673,400 $ 21,073,700 $ 11,907,978 $ 15,305,200 2,926,712 85,300 1,035,571 -0- 63,200 31,511,517 29,900,900 28,413,980 32,030,000 45,579,900 61,111,629 $ 51,059,900 $ 41,357,529 $ 35,331,000 $ 60,948,300 *Includes general obligation bonds authorized for Environmental Services that were previously shown separately. E-36 CAPITAL PROJECTS FUNDS HIGHLIGHTS General Obligation Bonds General obligation bonds are used to finance capital projects other than street and water projects. The Fiscal Year 2008 use of these bonds is decreased by $5,768,500 based on project implementation and completion. It is anticipated that the 2000 authorization will be fully expended in Fiscal Year 2010. Street and Highway Revenue Bonds Street and highway revenue bonds are used to finance Transportation’s street and right-of-way capital projects. The Fiscal Year 2008 use of these bonds is decreased $22,100 due to delays in project completion. The 2000 authorization will be fully expended in Fiscal Year 2008. Water Revenue Bonds The water revenue bonds used to finance water capital projects in Fiscal Year 2008 are from the 2005 authorization. For Fiscal Year 2008 use of these bonds is increased by $15,679,000 over the adopted budget for Fiscal Year 2007. Much of that increase is due to an acceleration of recharge and recovery projects. It is anticipated that the 2005 authorization will fund projects through Fiscal Year 2009. E-37 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 2008 is $10,327,380 or $642,990 more than last year's actual levy of $9,684,390. (The adopted levy for Fiscal Year 2007 was $9,733,050.) The tax rate for Fiscal Year 2008 will decrease to $0.3296 per $100 of assessed valuation from $0.3411 in Fiscal Year 2007. 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 2008 (Estimate) Primary Assessed Valuation Percent Change $ 2,202,934 2,344,619 2,477,050 2,641,419 2,839,163 3,133,309 5.4% 6.4% 5.6% 6.6% 7.5% 10.4% Maximum Allowable Tax Levy $ 8,146 8,477 8,812 9,175 9,733 10,327 Primary Tax Levy $ 4,602 4,898 8,746 9,163 9,684 10,327 Increase (Decrease) Percent Change Rate per $100 Assessed Valuation $ 1,671 296 3,848 417 521 643 57.0% 6.4% 78.6% 4.8% 5.7% 6.6% $ 0.2089 0.2089 0.3531 0.3469 0.3411 0.3296 PRIMARY PROPERTY TAX LEVY ($000s) $12,000 $8,000 $4,602 $8,746 $9,163 $9,684 2005 2006 2007 $10,327 $4,898 $4,000 $2003 2004 E-38 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 2008 is $28,022,940, an increase of $1,341,360 over the Fiscal Year 2007 actual levy of $26,681,580. (The adopted levy for Fiscal Year 2007 was $26,808,660.) A new sale of $13,300,000 has been held for projects in Fiscal Year 2008; this was the final sale of the 2000 general obligation bond authorization. The secondary property tax rate for Fiscal Year 2008 is estimated at $0.8025 per $100 of assessed valuation, a decrease from $0.8846 in Fiscal Year 2007. 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 2008 (Estimate) $ 2,268,733 2,427,124 2,558,231 2,722,916 3,016,231 3,491,927 6.1% 7.0% 5.4% 6.4% 10.8% 15.8% $ 20,675 23,009 21,274 24,220 26,682 28,023 (279) 2,334 (1,735) 2,946 2,462 1,341 (1.3%) 11.3% (7.5%) 13.8% 10.2% 5.0% $ 0.9113 0.9480 0.8316 0.8895 0.8846 0.8025 SECONDARY PROPERTY TAX LEVY ($000s) $30,000 $25,000 $20,675 $23,009 $24,220 $26,682 $28,023 $21,274 $20,000 $15,000 2003 2004 2005 2006 E-39 2007 2008 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 4.5% in Fiscal Year 2008 after adjustment for one-time payments in Fiscal Year 2007, for a net increase of 4%. The city sales tax estimate of $212,870,000 for Fiscal Year 2008 is an increase of $8,170,000 over the revised estimate of $204,700,000 for Fiscal Year 2007. (The adopted budget for Fiscal Year 2007 was $199,500,000.) 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 2007 (Estimate) 2008 (Estimate) $ 160,781 167,345 176,654 190,385 204,700 212,870 $ 2,642 6,564 9,309 13,731 14,315 8,170 1.7% 4.1% 5.6% 7.8% 7.5% 4.0% CITY BUSINESS PRIVILEGE (SALES) TAX Revenues ($000s) $240,000 $200,000 $160,781 $167,345 $176,654 $190,385 $204,700 $212,870 $160,000 $120,000 2003 2004 2005 2006 2007 *Does not include recognition of a one-time settlement from Qwest of $7 million. E-40 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 2008 total $13,121,000, a decrease of $74,000 from the estimate of $13,195,000 for Fiscal Year 2007. (The adopted budget for Fiscal Year 2007 was $12,490,000.) The large increases in Fiscal Years 2004, 2005, and 2006 reflect the rebounding of the tourism sector of the Tucson economy. The increase for Fiscal Years 2007 is expected to be more moderate, leveling off for Fiscal Year 2008. 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 2007 (Estimate) 2008 (Estimate) $ 6,395 9,146 10,768 12,276 13,195 13,121 Increase (Decrease) $ Percent Change 56 2,751 1,622 1,508 919 (74) 0.9% 43.0% 17.7% 14.0% 7.5% (0.1%) TRANSIENT OCCUPANCY AND ROOM TAXES Revenues ($000s) $15,000 $12,276 $13,195 $13,121 $10,768 $9,146 $10,000 $6,395 $5,000 2003 2004 2005 2006 E-41 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 the budget document under Public Utility Tax and Utility Franchise Fees on the following page. Revenues from licenses and permits in Fiscal Year 2008, excluding utility franchise fees, is estimated to total $8,311,500 which is close to a 3% increase over the estimate of $8,095,000 for Fiscal Year 2007. (The adopted budget for Fiscal Year 2007 was $7,913,630.) The increase is primarily due to parking meter collections from new meters and a temporary workzone traffic control fees. Those increases are offset by a reduction in cable television license revenues. 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 2007 (Estimate) 2008 (Estimate) Revenues Increase (Decrease) Percent Change $ 6,033 6,615 6,560 7,363 8,095 8,312 $ 1,136 582 (55) 803 732 217 23.2% 9.6% (0.8%) 12.2% 9.9% 2.7% LICENSES AND PERMITS Revenues ($000s) $9,000 $8,095 $8,312 $7,363 $7,000 $6,615 $6,560 2004 2005 $6,033 $5,000 2003 2006 E-42 2007 2008 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 3.0% on natural gas consumed within the city (1% is set aside for utility relocation reimbursements). Franchise fee payments received from Tucson Electric Power and Southwest Gas reduce the public utility tax due from them. 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 2008 total $22,080,000, which is less than a 3% increase over the estimate of $21,512,000 for Fiscal Year 2007. (The adopted budget for Fiscal Year 2007 was $21,550,000.) The increase of $568,000 from both revenues is primarily due to anticipated growth of $570,000 in the utility franchise fees. 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 2007 (Estimate) 2008 (Estimate) $ 9,267 7,888 7,655 7,585 7,212 7,210 $ 11,227 11,616 12,755 13,606 14,300 14,870 $ 20,494 19,504 20,410 21,191 21,512 22,080 $ 1,439 (990) 906 781 321 568 7.6% (4.8%) 4.6% 3.8% 1.5% 2.6% PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES Revenues ($000s) $25,000 $20,494 $20,000 $19,504 $20,410 $21,191 2005 2006 $21,512 $22,080 $15,000 2003 2004 E-43 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 2008 estimate of $14,265,850 is less than 1% higher than the estimate of $14,199,161 for Fiscal Year 2007. (The adopted budget for Fiscal Year 2007 was $15,630,610, which included an anticipated increase in court default fees.) 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 2007 (Estimate)* 2008 (Estimate) $ 10,016 9,679 10,888 11,952 14,199 14,266 $ 2,065 (337) 1,209 1,064 2,247 67 Percent Change 25.9% (3.4%) 12.5% 9.8% 18.8% 0.5% FINES, FORFEITURES, AND PENALTIES Revenues ($000s) $14,199 $15,000 $10,016 $9,679 $14,266 $11,952 $10,888 $10,000 $5,000 2003 2004 2005 2006 *In Fiscal Year 2007, there is an increase in anticipated forfeiture funds. E-44 2007 2008 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 2005 mid-decade census, Tucson's portion of the state’s population declined, which diminished the city’s state-shared revenues. 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 2008 are estimated to be $23,260,000, which is an increase of 2% from the estimate of $22,805,000 for Fiscal Year 2007. (The adopted budget for Fiscal Year 2007 was $22,900,000.) Because the mid-decade census resulted in a loss of $1,979,000 in Fiscal Year 2007, the increase of $455,000 anticipated for Fiscal Year 2008 is just getting the city back to the pre-census level. 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 23,134 22,805 23,260 $ (634) 2,654 2,110 (54) (329) 455 2003 2004 2005 2006 2007 (Estimate) 2008 (Estimate) Percentage Change (3.3%) 14.4% 10.0% (0.2%) (1.4%) 2.0% VEHICLE LICENSE TAX Revenues ($000s) $25,000 $23,188 $23,134 2005 2006 $22,805 $23,260 $21,078 $20,000 $18,424 $15,000 2003 2004 E-45 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, Tucson dropped in proportionate population of the state, which has diminished our distribution of this state-shared revenue. 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 2008 is estimated to be $53,970,000, an increase of more than 5% over the estimate of $51,153,000 for Fiscal Year 2007. (The adopted budget for Fiscal Year 2007 was $51,930,000.) The Fiscal Year 2008 increase of $2,817,000 is based on state collection estimates. 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 2007 (Estimate) 2008 (Estimate) Total Distribution To Cities Percent Change $ 318,000 343,475 380,830 431,675 465,030 490,630 2.4% 8.0% 10.9% 13.4% 7.7% 5.5% 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 51,801 51,153 53,970 Increase (Decrease) $ 628 3,056 4,483 6,101 (648) 2,817 STATE SALES TAX City of Tucson's Share ($000s) $60,000 $50,000 $51,801 $38,161 $41,217 $45,700 $51,153 $53,970 $40,000 $30,000 $20,000 2003 2004 2005 2006 E-46 2007 2008 Percent Change 1.7% 8.0% 10.9% 13.3% (1.2%) 5.5% 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, Tucson dropped in proportionate population of the state, which has diminished our distribution of this state-shared revenue. 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 $74,600,000 for Fiscal Year 2008, which is an increase of 24% from the estimate of $60,158,000 for Fiscal Year 2007. (The adopted budget for Fiscal Year 2007 was $60,500,000.) The Fiscal Year 2008 increase of $14,442,000 is based on state income tax collections from 2006, which reflected an improved statewide economy. 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 $ 420,716 366,858 381,458 437,442 546,890 678,180 2.3% (12.8%) 4.0% 14.7% 25.0% 24.0% 2003 2004 2005 2006 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 52,493 60,158 74,600 Increase (Decrease) Percent Change $ (0.9%) (12.8%) 4.0% 14.7% 14.6% 24.0% (447) (6,463) 1,752 6,718 7,665 14,442 STATE REVENUE SHARING City of Tucson's Share ($000s) $74,600 $75,000 $60,158 $65,000 $55,000 $52,493 $50,486 $44,023 $45,775 $45,000 $35,000 2003 2004 2005 2006 E-47 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 $54,730,060 for Fiscal Year 2008, which is a 5% increase over the estimate of $52,112,690 for Fiscal Year 2007. (The adopted budget for Fiscal Year 2007 was $50,510,000.) 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 2007 (Estimate) 2008 (Estimate) $ 37,905 39,264 41,332 41,976 43,655 45,934 $ 6,748 7,467 7,955 8,132 8,458 8,796 $ 44,653 46,731 49,287 50,108 52,113 54,730 $ 2,135 2,078 2,556 821 2,005 2,617 HIGHWAY USER REVENUE FUND ALLOCATION Revenues ($000s) $60,000 $50,000 $44,653 $46,731 $49,287 $50,108 2005 2006 $52,113 $54,730 $40,000 $30,000 2003 2004 E-48 2007 2008 Percent Change 5.0% 4.7% 5.5% 1.7% 4.0% 5.0% 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 2008 which is no change from the Fiscal Year 2007 estimated amount. (The adopted budget for Fiscal Year 2007 was also $2,592,000.) 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 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-49 Percent Change (1.5%) (1.1%) (1.6%) (2.0%) 0.0% 0.0% E-50 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 Adopted 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 32.00 58.00 112.00 211.50 246.50 217.00 248.00 232.75 254.75 228.25 235.75 215.00 234.50 223.50 253.50 138.80 159.25 519.50 253.00 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 11.00 159.80 148.75 741.00 -062.00 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 38.00 749.50 1,525.00 154.75 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 3,589.80 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- 120.00 264.00 416.50 578.00 41.00 -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 1,419.50 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 F-51 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 Adopted 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 18.00 152.00 340.00 28.00 100.16 64.00 688.42 694.42 719.12 740.12 756.37 756.37 729.66 699.71 720.71 720.71 724.71 702.16 -0- -0- -0- -0- 3.00 5.50 5.75 4.75 4.75 4.75 14.75 4.00 -0- -0- -0- -0- 3.00 5.50 5.75 4.75 4.75 4.75 14.75 4.00 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 6,032.71 F-52 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 Adopted 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 32.00 58.00 102.00 -0-0-010.00 51.50 32.00 58.00 112.00 Sub-Total 213.50 10.00 223.50 243.50 10.00 253.50 146.80 8.00 692.00 53.00 11.00 3.50 144.50 2.00 -0-0- 150.30 152.50 694.00 53.00 11.00 157.80 10.05 739.00 62.00 11.00 2.00 138.70 2.00 -0-0- 159.80 148.75 741.00 62.00 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 38.00 732.75 1,499.00 -0- -016.75 26.00 154.75 38.00 749.50 1,525.00 154.75 3,064.05 368.50 3,432.55 3,249.60 340.20 3,589.80 123.00 -034.00 -037.00 -0251.00 370.50 573.00 -0- 123.00 251.00 404.50 573.00 37.00 120.00 -041.00 -041.00 -0264.00 375.50 578.00 -0- 120.00 264.00 416.50 578.00 41.00 194.00 1,194.50 1,388.50 202.00 1,217.50 1,419.50 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 F-53 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 Adopted 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 18.00 136.00 126.00 28.00 100.16 64.00 -016.00 214.00 -0-0-0- 18.00 152.00 340.00 28.00 100.16 64.00 488.71 236.00 724.71 472.16 230.00 702.16 9.00 5.75 14.75 4.00 -0- 4.00 9.00 4,033.01 5.75 1,814.75 14.75 5,847.76 4.00 4,235.01 -01,797.70 4.00 6,032.71 F-54 City of Tucson Elected and Mayor/Council Appointed Officials (Unclassified) Class Code 0400 0401 0409 0430 0625 0629 0630 0633 0634 0635 Class Title Annual Rate Effective Mayor Council Member City Clerk City Manager City Attorney Limited Special City Magistrate City Magistrate Presiding Magistrate Senior Special Magistrate Special Magistrate 42,000.00 24,000.00 128,060.00 198,986.00 141,856.00 59,394.00 98,990.00 106,490.00 98,990.00 $90/Session 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: June 24, 2007 Grade No. 810 811 812 813 814 815 816 817 818 819 820 821 822 823 Minimum Midpoint 32,448.00 34,736.00 37,398.40 40,456.00 43,971.20 48,006.40 52,686.00 58,094.40 64,396.80 71,697.60 80,184.00 90,147.20 101,774.40 115,003.20 43,492.80 46,571.20 50,107.20 54,204.80 58,926.40 64,334.40 70,616.00 77,875.20 86,278.40 96,075.20 107,452.80 120,785.60 136,385.60 154,107.20 E-55 Maximum 54,516.80 58,385.60 62,816.00 67,953.60 73,860.80 80,662.40 88,524.80 97,635.20 108,160.00 120,432.00 134,721.60 151,424.00 170,996.80 193,211.20 POLICE (EXEMPT) Effective: June 24, 2007 Grade No. 320 321 322 323 324 Minimum Midpoint 86,049.60 96,116.80 107,640.00 120,556.80 137,446.40 97,947.20 109,574.40 122,720.00 137,446.40 157,851.20 Maximum 109,844.80 123,032.00 137,779.20 154,336.00 178,235.20 FIRE (EXEMPT) EFFECTIVE: June 24, 2007 Range No. 420 421 422 423 Minimum Midpoint 82,056.00 86,153.60 89,710.40 134,347.20 89,190.40 99,403.20 109,283.20 154,731.20 Maximum 96,304.00 112,652.80 128,835.20 175,094.40 INFORMATION TECHNOLOGY SCHEDULE (EXEMPT) EFFECTIVE: June 24, 2007 Grade No. 712 713 714 715 716 717 718 719 Minimum Midpoint 40,352.00 43,638.40 47,819.20 52,936.00 59,280.00 67,142.40 76,044.80 86,112.00 53,435.20 57,844.80 63,356.80 70,137.60 78,561.60 88,982.40 100,755.20 114,088.00 E-56 Maximum 66,518.40 72,030.40 78,873.60 87,318.40 97,822.40 110,801.60 125,465.60 142,064.00 LEGAL SCHEDULE (EXEMPT) EFFECTIVE: June 24, 2007 Grade No. 610 611 612 613 614 615 616 617 618 619 Minimum Midpoint 34,548.80 38,001.60 41,870.40 46,280.00 51,272.00 56,888.00 63,315.20 70,574.40 78,852.80 88,316.80 45,760.00 50,336.00 55,473.60 61,318.40 67,912.00 75,379.20 83,865.60 93,516.80 104,499.20 117,020.80 Maximum 56,971.20 62,649.60 69,076.80 76,336.00 84,552.00 93,870.40 104,395.20 116,438.40 130,124.80 145,724.80 GOLF SCHEDULE (EXEMPT) CLASSIFICATIONS WITH EXCEPTIONAL PAY COMPUTATIONS EFFECTIVE: June 24, 2007 Grade No. 501 502 514 515 Minimum Midpoint 22,256.00 23,524.80 43,971.20 48,006.40 28,433.60 30,056.00 58,926.40 64,334.40 Range 501 and 502 receive 50% earnings from golf lesson revenue. 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-57 Maximum 34,590.40 36,566.40 73,860.80 80,662.40 NON-EXEMPT SCHEDULE EFFECTIVE: June 24, 2007 Grade No. STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 STEP 11 STEP 12 STEP 13 STEP 14 910 21,174.40 22,256.00 23,358.40 24,502.40 25,750.40 27,040.00 27,705.60 28,392.00 29,120.00 29,848.00 30,576.00 31,366.40 32,156.80 32,947.20 911 22,256.00 23,358.40 24,502.40 25,750.40 27,040.00 28,371.20 29,099.20 29,848.00 30,555.20 31,345.60 32,115.20 32,926.40 33,737.60 34,590.40 912 23,524.80 24,689.60 25,958.40 27,227.20 28,600.00 30,014.40 30,763.20 31,532.80 32,344.00 33,155.20 33,987.20 34,798.40 35,672.00 36,566.40 913 25,064.00 26,312.00 27,622.40 29,016.00 30,451.20 31,969.60 32,760.00 33,592.00 34,424.00 35,297.60 36,192.00 37,086.40 38,022.40 38,979.20 914 26,894.40 28,204.80 29,640.00 31,096.00 32,656.00 34,299.20 35,172.80 36,046.40 36,940.80 37,856.00 38,792.00 39,769.60 40,768.00 41,787.20 915 29,036.80 30,472.00 31,990.40 33,592.00 35,276.80 37,044.80 37,980.80 38,896.00 39,873.60 40,872.00 41,891.20 42,931.20 44,054.40 45,136.00 916 31,553.60 33,155.20 34,777.60 36,524.80 38,355.20 40,268.80 41,308.80 42,328.00 43,388.80 44,470.40 45,572.80 46,716.80 47,881.60 49,088.00 917 34,569.60 36,296.00 38,105.60 39,998.40 42,016.00 44,116.80 45,219.20 46,342.40 47,486.40 48,692.80 49,878.40 51,147.20 52,436.80 53,726.40 918 38,105.60 39,998.40 42,016.00 44,116.80 46,321.60 48,630.40 49,836.80 51,105.60 52,374.40 53,664.00 55,016.00 56,388.80 57,803.20 59,238.40 919 42,307.20 44,408.00 46,633.60 48,963.20 51,417.60 53,996.80 55,328.00 56,721.60 58,115.20 59,592.00 61,068.80 62,587.20 64,147.20 65,769.60 920 47,278.40 49,628.80 52,124.80 54,704.00 57,449.60 60,340.80 61,817.60 63,398.40 64,979.20 66,601.60 68,244.80 69,950.40 71,718.40 73,507.20 F-58 POLICE NON-EXEMPT SCHEDULE Effective: June 24, 2007 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 47,819.20 50,190.40 45,510.40 47,819.20 50,190.40 52,686.40 47,819.20 50,190.40 52,686.40 55,328.00 50,190.40 52,686.40 55,328.00 58,094.40 52,686.40 55,328.00 58,094.40 60,985.60 55,328.00 58,094.40 60,985.60 64,064.00 37,252.80 39,145.60 41,080.00 43,139.20 45,302.40 47,569.60 58,094.40 60,985.60 64,064.00 67,288.00 74,131.20 77,854.40 49,920.00 60,985.60 64,064.00 67,288.00 70,616.00 77,854.40 81,744.00 52,436.80 FIRE NON-EXEMPT SCHEDULE Effective: June 24, 2007 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 35,547.20 41,845.44 43,912.96 43,912.96 46,126.08 46,126.08 48,426.56 48,426.56 50,901.76 49,649.60 52,183.04 54,832.96 57,599.36 63,568.96 66,772.16 71,177.60 50,901.76 53,493.44 56,201.60 59,055.36 65,141.44 68,432.00 72,966.40 52,183.04 54,832.96 57,599.36 60,511.36 66,772.16 70,150.08 74,796.80 53,493.44 56,201.60 59,055.36 62,025.60 68,432.00 71,897.28 76,668.80 54,832.96 57,599.36 60,511.36 63,568.96 70,150.08 73,673.60 78,582.40 F-59 HOURLY NON-PERMANENT CLASSIFICATIONS AND SCHEDULE (NON-EXEMPT) EFFECTIVE: June 24, 2007 Class Title (alpha order) Grade Aquatics Program Supervisor Camera Operator Center Attendant Class Instructor, Fine Arts Class Instructor, Sports and Movement Class Instructor, Health and Fitness Concession Worker Election Specialist Election Technician General Maintenance Trainee/Worker General Officer 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 1008 1008 1008 1003 1043 1022 1015 1003 1021 1035 1013 1023 1006 1027 1011 1010 1019 1017 E-60 Hourly Rate $11.73 $12.68 $6.92 $8.50 $8.50 $8.50 $6.89 $18.04 $11.26 $9.27 $6.89 $10.98 $14.18 $9.03 $11.01 $7.81 $12.37 $8.71 $8.59 $10.26 $9.53 - $19.04 - $17.00 $17.00 $17.00 $7.88 $24.79 $15.47 $10.73 $7.88 - $19.00 - $16.99 - $11.11 City of Tucson Section F Capital Budget Summary Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget CAPITAL BUDGET SUMMARY Capital improvement projects are assigned to city departments to ensure proper project management. The following two tables summarize the $332.9 million Fiscal Year 2008 capital budget by service area and by funding type. For a breakout by individual departments and funding sources, see Table I. Capital Budget Summary by Department and Table II. Capital Budget Summary by Funding Source on pages F-4 and F-5. Fiscal Year 2008 Capital Budget Summary of Expenditures ($000s) Neighborhood Services Environment and Development Support Services Non-Departmental Total Carryforward $ 31,974.1 71,789.0 4,000.0 1,050.0 New Funding $ 45,960.6 175,950.8 -02,150.1 Total $ 77,934.7 247,739.8 4,000.0 3,200.1 $ 108,813.1 $ 224,061.5 $ 332,874.6 Fiscal Year 2008 Capital Budget Summary of Funding Sources ($000s) General Purpose Funds Grants and Contributions City Bond Funds Enterprise Funds Other Local Funds Non-City Funds Total Carryforward $ 3,324.0 60,000.1 9,156.8 10,374.9 25,942.3 15.0 New Funding $ 1,332.3 77,558.1 6,211.6 65,648.0 73,216.5 95.0 $ 108,813.1 $ 224,061.5 $ Total 4,656.3 137,558.2 15,368.4 76,022.9 99,158.8 110.0 $ 332,874.6 Changes from the Recommended Budget On May 1, 2007, the Proposed Five-Year Capital Improvement Program was submitted to the Mayor and Council. The recommended budget for Fiscal Year 2008 at that time was $331,217,400. Subsequently, the following change was made prior to adoption, which brought the total to $332,874,600: Department Water Change ($000s) $ 1,657.2 Reason Carryforward of Fiscal Year 2007 funds F-1 DEPARTMENT PROGRAMS The following section summarizes the approved Fiscal Year 2008 department programs within each service area. Project listings for each department begin on page F-8. Neighborhood Services Projects in the Neighborhood Services category include those managed by Community Services, Fire, Neighborhood Resources, Parks and Recreation, and Police. Community Services. The Community Services capital budget of $1.6 million in Fiscal Year 2008 consists of three projects: completion of the Fry Apartments rehabilitation project, construction of public housing resident amenities at a new Martin Luther King, Jr. apartment building, and construction of rental units in the Mercado. Funding is provided by federal HOPE VI funds, other federal grants, and Pima County bonds. Fire. Fire's $18.7 million capital budget for Fiscal Year 2008 includes the following projects: three new multicompany fire stations, a new headquarters and fire station in the downtown area, improvements to support facilities, and the replacement of mobile data terminals for fire vehicles. Certificates of participation, general obligation bonds, and the General Fund reserves will fund these projects. Neighborhood Resources. Back to Basics projects continue with $7.4 million in Fiscal Year 2008: $4.6 million in carryforward to complete previous year projects and $2.8 million in new funding. Parks and Recreation. Park's capital budget of $23.6 million in Fiscal Year 2008 provides for 42 projects, ranging from improvements at regional parks, expansion of recreation centers, amenities at neighborhood parks, and zoo improvements. These projects are funded primarily by city and county bonds, certificates of participation, impact fees, federal and non-federal grants, and contributions. Police. Police’s $26.6 million capital budget for Fiscal Year 2008 provides for five projects: renovation of Patrol Division East substation, construction of a new evidence facility, expansion of headquarters, acquisition of operational support equipment for the addition a sixth field division, and completion of a new substation that replaces the Rillitio Substation. These projects are funded with certificates of participation. Environment and Development The Environment and Development category contains projects managed by the following departments: Development Services, Environmental Services, Transportation, and Tucson Water. Development Services. The $0.2 million in the Development Services Fiscal Year 2008 capital budget continues with the upgrading of the department's computerized permitting system. The project is funded from the Development Services fees reserved for service improvements. Environmental Services. Nineteen projects totaling $12.2 million are included in the Environmental Services capital budget for Fiscal Year 2008. These projects are in four program areas: Facilities at $4.8 million, Landfill Closure at $2.5 million, Landfill Construction at $3.8 million, and Remediations at $1.1 million. Funding is provided by city general obligation bonds, Environmental Services revenue, and certificates of participation. Transportation: This department's capital budget for Fiscal Year 2008 totals $167.8 million in six program areas: Drainage, Parking Garages, Public Transit, Street Lighting, Streets, and Traffic Signals. The three largest program areas are Streets at $80.0 million, Public Transit at $57.3 million, and Drainage at $13.7 million. The remaining three areas total $16.8 million: Street Lighting at $1.5 million, Traffic Signals at $5.1 million, and Parking at $10.2 million. Tucson Water. Tucson Water's capital budget for Fiscal Year 2008 totals $67.4 million: $64.8 million for the Potable Water System and $2.6 million for the Reclaimed Water System. Tucson Water's CIP was revised to push forward Central Arizona Project (CAP) water recharge and recovery projects. F-2 Support Services The Support Services category contains projects managed by the Information Technology Department. Information Technology. There is only one project in Information Technology's Fiscal Year 2008 capital budget of $4.0 million: the Voice and Data Network and Component Upgrades project. This project is funded with certificates of participation. Non-Departmental The Non-Departmental category contains projects budgeted as General Expense, because the projects are not associated with a specific department. General Expense. The Fiscal Year 2008 budget of $3.2 million provides for two projects: Human Resources Management System and the Tax Revenue Management System. These projects are funded by General Fund reserves. SUMMARY OF THE CIP IMPACT ON THE OPERATING BUDGET The completion of many capital projects is the beginning of annual operating expenses for staff, maintenance, and routine operations. Operating and maintenance impacts in Fiscal Year 2008 are estimated to be $6.5 million, including funding for 41 new positions. Most of the impact is for the opening of Fire Station 22 and operating costs for Tucson Water’s South Avra Valley Recharge and Recovery project and Environmental Services remediation projects. The following table summarizes the impact of this five-year CIP on the Fiscal Year 2008 Operating Budget. For a more detailed summary, see Table III. Capital Budget Summary of Operating Budget Impacts on page F-7. Adopted Year 1 FY 2008 ($000s) Service Area Expenditures Neighborhood Services Environment and Development $ 3,674.9 2,792.8 Total Source of Funds General Purpose Funds Grants and Contributions Enterprise Funds $ 6,467.7 $ 3,751.9 269.6 2,446.2 Total $ 6,467.7 For additional information on specific projects that have an impact on the operating budget, see the Approved Capital Improvement Program, Volume II. SUMMARY TABLES Table I Table II Table III Capital Budget Summary by Department Capital Budget Summary by Funding Source Capital Budget Summary of Operating Budget Impacts F-3 TABLE I CAPITAL BUDGET SUMMARY BY DEPARTMENT Adopted Fiscal Year 2008 Carry Total Forward New Funding Service Area/Department Neighborhood Services Community Services Fire Neighborhood Resources Parks and Recreation Police $ Sub-Total -0- $ 1,567,500 $ 1,567,500 6,255,000 12,450,300 18,705,300 4,650,000 2,780,400 7,430,400 11,320,500 12,308,200 23,628,700 9,748,600 16,854,200 26,602,800 $ 31,974,100 $ 45,960,600 $ 77,934,700 Environment and Development Development Services Environmental Services Transportation Tucson Water $ Sub-Total 115,000 $ 100,000 $ 215,000 123,000 12,116,000 12,239,000 61,299,100 106,537,800 167,836,900 10,251,900 57,197,000 67,448,900 $ 71,789,000 $ 175,950,800 $ 247,739,800 Support Services Information Technology $ 4,000,000 $ -0- $ 4,000,000 $ 4,000,000 $ -0- $ 4,000,000 $ 1,050,000 $ 2,150,100 $ 3,200,100 Sub-Total $ 1,050,000 $ 2,150,100 $ 3,200,100 Total $ 108,813,100 Sub-Total Non-Departmental Non-Departmental: General Expense F-4 $ 224,061,500 $ 332,874,600 TABLE II CAPITAL BUDGET SUMMARY BY FUNDING SOURCE Adopted Fiscal Year 2008 Carry Total Forward New Funding Fund Category/Fund General Purpose Funds General Fund Mass Transit Fund: General Fund Transfer Sub- Total Grants and Contributions Capital Agreement Fund Capital Agreement Fund: PAG Capital Agreement Fund: Pima County Bonds Capital Agreement Fund: Pima County Contribution Community Development Block Grant Fund Federal Highway Administration Grants H.O.M.E. 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 Public Housing Capital Fund Regional Transportation Authority Fund State Infrastructure Bank Federal Pass-Through $ 450,000 2,874,000 $ -0- $ 1,332,300 450,000 4,206,300 $ 3,324,000 $ 1,332,300 $ 4,656,300 $ Sub- Total -0- $ 150,500 $ 150,500 14,436,000 6,879,000 21,315,000 8,087,800 10,638,800 18,726,600 2,233,000 6,400,000 8,633,000 2,600,000 1,140,400 3,740,400 7,664,100 13,261,900 20,926,000 -0778,000 778,000 -0183,400 183,400 2,987,100 2,958,400 5,945,500 -0200,000 200,000 182,000 1,200,000 1,382,000 19,861,100 10,779,800 30,640,900 -0400,000 400,000 -087,900 87,900 1,949,000 17,495,000 19,444,000 -05,005,000 5,005,000 $ 60,000,100 $ 77,558,100 $ 137,558,200 City Bond Funds 2000 General Obligation Bond Funds 2000 General Obligation Bond Funds - Interest 2000 Street and Highway Revenue Bond Funds Sub- Total Enterprise Funds 2005 Water Revenue Bond Funds Central Arizona Project Reserve Fund Environmental Services Fund Environmental Services Fund: COPs Tucson Water Fund: State Grants Tucson Water Revenue and Operations Fund $ 8,143,600 $ 950,000 63,200 6,211,600 $ 14,355,200 -0950,000 -063,200 $ 9,156,800 $ 6,211,600 $ 15,368,400 $ 10,251,900 $ 35,328,000 $ 45,579,900 -020,000 20,000 -0150,000 150,000 123,000 8,301,000 8,424,000 -0623,000 623,000 -021,226,000 21,226,000 Sub- Total $ 10,374,900 $ 65,648,000 $ 76,022,900 F-5 TABLE II CAPITAL BUDGET SUMMARY BY FUNDING SOURCE Adopted Fiscal Year 2008 Carry Total Forward New Funding Fund Category/Fund Other Local Funds General Fund: Certificates of Participation General Fund: Earned Revenue General Fund: Restricted Parkwise: Certificates of Participation Parkwise: Fees and Charges Road and Park Impact Fee Fund: Central District Road and Park Impact Fee Fund: East District Road and Park Impact Fee Fund: Southeast District Road and Park Impact Fee Fund: Southlands District Road and Park Impact Fee Fund: West District $ 23,638,300 $ 45,304,500 $ 68,942,800 -0300 300 2,165,000 2,250,100 4,415,100 -09,800,000 9,800,000 139,000 226,900 365,900 -03,311,100 3,311,100 -02,527,500 2,527,500 -02,581,700 2,581,700 -04,003,900 4,003,900 -03,210,500 3,210,500 Sub- Total $ 25,942,300 $ 73,216,500 $ 99,158,800 Non-City Funds Civic Contributions Fund $ 15,000 $ 95,000 $ 110,000 Sub- Total $ 15,000 $ 95,000 $ 110,000 Total $ 108,813,100 F-6 $ 224,061,500 $ 332,874,600 TABLE III CAPITAL BUDGET SUMMARY OF OPERATING BUDGET IMPACTS Adopted Fiscal Year 2008 Service Area/Department Neighborhood Services Fire Parks and Recreation Police $ 3,316,400 138,540 220,000 $ 3,674,940 $ 15,000 1,059,000 331,600 1,387,206 Sub-Total $ 2,792,806 Total $ 6,467,746 Sub-Total Environment and Development Development Services Environmental Services Transportation Tucson Water Source of Funds Summary General Purpose Funds General Fund General Fund: Fees and Charges Mass Transit Fund: General Fund Transfer $ 3,674,940 15,000 62,000 $ 3,751,940 $ 269,600 $ 269,600 $ 1,059,000 1,387,206 Sub-Total $ 2,446,206 Total $ 6,467,746 Sub-Total Grants and Contributions Highway User Revenue Fund Sub-Total Enterprise Funds Environmental Services Fund Tucson Water Revenue and Operations Fund F-7 Community Services Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Fry Apartments Rehabilitation Martin Luther King Public Housing Amenities Mercado District Rentals - El Portal Department Total Source of Funds Summary Capital Agreement Fund: Pima County Bonds General Fund: Earned Revenue H.O.M.E. Grants HOPE VI - Martin Luther King Revitalization Public Housing Capital Fund Department Total F-8 $ -0- $ -0-0- $ -0- $ -0- $ -0-0-0-0- $ -0- $ $ 298,000 $ 789,500 480,000 1,567,500 298,000 789,500 480,000 $ 1,567,500 517,900 $ 300 778,000 183,400 87,900 517,900 300 778,000 183,400 87,900 1,567,500 $ 1,567,500 Fire Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Fire Central Fire Station 20 Fire Station 21 Fire Station 22 Fire Station Remodels Mobile Data Terminal Upgrades Support Facility Improvements $ Department Total 2,610,500 $ 12,450,300 $ 15,060,800 -0203,700 203,700 -091,700 91,700 -02,450,000 2,450,000 -0150,000 150,000 -0111,400 111,400 -0637,700 637,700 $ 6,255,000 Source of Funds Summary 2000 General Obligation Bond Funds 2000 General Obligation Bond Funds - Interest General Fund: Certificates of Participation General Fund: Restricted $ Department Total $ 18,705,300 -0- $ 1,233,100 1,233,100 $ -0950,000 950,000 3,071,900 12,450,300 15,522,200 -01,000,000 1,000,000 $ 6,255,000 F-9 $ 12,450,300 $ 12,450,300 $ 18,705,300 Neighborhood Resources Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Back to Basics Unallocated $ Department Total 4,650,000 $ $ 4,650,000 Source of Funds Summary Community Development Block Grant Fund General Fund Highway User Revenue Fund $ Department Total F-10 $ 2,780,400 2,600,000 $ 450,000 1,600,000 $ 4,650,000 2,780,400 $ $ 7,430,400 1,080,400 $ -01,700,000 $ 2,780,400 7,430,400 3,680,400 450,000 3,300,000 $ 7,430,400 Parks and Recreation Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Parks and Recreation - Parks Development Arcadia Park, Phase I Arroyo Chico Wash Improvements Atturbury Wash Sanctuary Expansion Cherry Avenue Center Expansion, Phase I Christopher Columbus Park Expansion Clements Senior Center Recreation Facility El Pueblo Center Expansion, Phase I General Instruments Site Improvements Greenway and Natural Resource Area Acquisition Grijalva School Park Houghton Greenway Impact Fee Capacity - Regional Park Improvements Juhan Park Expansion Julian Wash Linear Park Lincoln Park Expansion, Phase I Lincoln Park Sport Fields Mendoza Memorial Park Miscellaneous Parks Development/Renovations New Comfort Stations Northside Recreation Center Ormsby Park Expansion Plan Performing Arts Center Pima County Bond Project Capacity Purple Heart Park Expansion Reid Park Expansion, Phase I Reid Park Renovation Reuse of Landfill Areas Rio Vista Park Expansion Rodeo Grounds Improvements Santa Cruz River Sports Park Santa Rita Skate Park Silverlake Park Soccer Field Lighting Design South Central Community Park, Phase I Southeast Community Park Sunnyside Neighborhood Improvements Udall Park Sport Fields Valencia and Alvernon Community Park, Phase I Valencia Corridor Facilities Plan Valencia Corridor Land Acquisition, Phase I William Clements Center Expansion Sub-Total F-11 $ -0- $ -0320,000 -0-0300,000 -0189,000 460,200 -0346,800 -0-0450,000 -0500,000 -0228,700 300,000 775,500 -0145,000 82,300 -0-0350,000 207,000 201,500 100,000 802,400 140,300 -0-02,019,000 5,000 300,000 -0-0-0265,000 $ 8,487,700 $ 12,248,200 $ 20,735,900 464,800 $ 204,600 -0226,200 500,000 -0200,000 -0436,800 1,146,300 1,010,900 1,000,000 100,000 -0150,000 -0155,000 17,300 -0-0100,000 480,000 3,066,400 149,200 300,000 -0-0761,000 6,900 21,300 -0500,000 400,000 -0-0-0300,000 250,000 301,500 -0- 464,800 204,600 320,000 226,200 500,000 300,000 200,000 189,000 897,000 1,146,300 1,357,700 1,000,000 100,000 450,000 150,000 500,000 155,000 246,000 300,000 775,500 100,000 625,000 3,148,700 149,200 300,000 350,000 207,000 962,500 106,900 823,700 140,300 500,000 400,000 2,019,000 5,000 300,000 300,000 250,000 301,500 265,000 Parks and Recreation Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Parks and Recreation - Zoo Improvements Reid Park Zoo Africa Expansion-Elephant Exhibit Reid Park Zoo Conservation Learning Center $ 700,000 $ 2,132,800 -0- $ 60,000 700,000 2,192,800 Sub-Total $ 2,832,800 $ 60,000 $ 2,892,800 Department Total $ 11,320,500 Source of Funds Summary 2000 General Obligation Bond Funds Capital Agreement Fund: Pima County Bonds Civic Contributions Fund Community Development Block Grant Fund General Fund: Certificates of Participation Miscellaneous Non-Federal Grants Road and Park Impact Fee Fund: Central District Road and Park Impact Fee Fund: East District Road and Park Impact Fee Fund: Southeast District Road and Park Impact Fee Fund: Southlands District Road and Park Impact Fee Fund: West District $ Department Total 2,399,900 $ 6,087,800 15,000 -02,817,800 -0-0-0-0-0-0- $ 11,320,500 F-12 $ 12,308,200 $ 23,628,700 1,461,000 $ 3,860,900 5,620,900 11,708,700 95,000 110,000 60,000 60,000 -02,817,800 400,000 400,000 829,600 829,600 814,800 814,800 749,200 749,200 1,051,500 1,051,500 1,226,200 1,226,200 $ 12,308,200 $ 23,628,700 Police Adopted Fiscal Year 2008 Total Program Area/Project Name Carry Forward New Funding Eastside Renovation Evidence Facility Police Field Support Equipment Police Headquarters Expansion Police Substation $ -0- $ 3,000,000 150,000 -06,598,600 $ 9,748,600 $ 9,748,600 $ 16,854,200 $ 26,602,800 $ 9,748,600 Department Total Source of Funds Summary General Fund: Certificates of Participation Department Total F-13 300,000 $ 300,000 7,399,100 10,399,100 1,350,000 1,500,000 4,500,000 4,500,000 3,305,100 9,903,700 $ 16,854,200 $ 16,854,200 $ 26,602,800 $ 26,602,800 Development Services Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Computerized Permitting System Upgrade Department Total Source of Funds Summary General Fund: Restricted Department Total F-14 $ 115,000 $ 100,000 $ 215,000 $ 115,000 100,000 $ 215,000 $ 115,000 $ 100,000 $ 215,000 $ 115,000 100,000 215,000 $ $ $ Environmental Services Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Environmental Services - Facilities Gas-to-Energy: Harrison Landfill Gas-to-Energy: Mullins Landfill Los Reales Infrastructure Plan Los Reales Recycling Facilities Los Reales Roadway Relocation Los Reales Scalehouse Los Reales Self Hauler Facility Sub-Total $ $ Environmental Services - Landfill Closure Irvington Landfill Closure Los Reales Intermediate Closures Los Reales Landfill Final Closure-Cells 1 and 2 Tumamoc Landfill Closure Sub-Total $ $ Environmental Services - Landfill Construction Los Reales Landfill Buffer Improvements Los Reales Landfill Lined Cell 3 Los Reales Landfill West Property Acquisition Sub-Total $ $ Environmental Services - Remediations Broadway-Pantano Groundwater Remediation Harrison Landfill Groundwater Remediation Los Reales Landfill Groundwater Remediation Price Service Center Remediation Silverbell Jail Annex Landfill Remediation Sub-Total $ $ Department Total Source of Funds Summary 2000 General Obligation Bond Funds Environmental Services Fund Environmental Services Fund: COPs Department Total F-15 -0- $ -0-0-075,000 -0-075,000 $ 50,000 $ 100,000 1,435,000 220,000 2,025,000 440,000 460,000 4,730,000 $ 50,000 100,000 1,435,000 220,000 2,100,000 440,000 460,000 4,805,000 -0- $ -0-0-0-0- $ 1,305,000 $ 185,000 275,000 750,000 2,515,000 $ 1,305,000 185,000 275,000 750,000 2,515,000 48,000 $ -0-048,000 $ 115,000 $ 3,126,000 480,000 3,721,000 $ 163,000 3,126,000 480,000 3,769,000 -0- $ -0-0-0-0-0- $ 500,000 $ 150,000 150,000 100,000 250,000 1,150,000 $ 500,000 150,000 150,000 100,000 250,000 1,150,000 $ 123,000 $ 12,116,000 $ -0- $ -0123,000 $ 123,000 $ 12,239,000 3,665,000 $ 150,000 8,301,000 $ 12,116,000 3,665,000 150,000 8,424,000 $ 12,239,000 Transportation Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Transportation - Drainage Alamo Wash Drainage Improvements Arroyo Chico Drainage Improvements Columbus Wash Drainage Relief, Phase II High School Wash Navajo Wash Drainage Improvements Park Avenue Detention Basin, Phase II Sub-Total Transportation - Parking Garages City/State Parking Garage Improvements Depot Plaza Parking Garage Main Library Parking Garage Improvements Sub-Total Transportation - Public Transit ADA Transit Enhancements Automated Vehicle Locating System Bus Shelters Compressed Natural Gas Facility Contingency Local Match for Future Grants Downtown Intermodal Center, Phase IV Expansion Vans for Van Tran Greyhound Transit Center Replacement Buses for Sun Tran Replacement Vans for Van Tran Ronstadt Transit Center Sun Tran Maintenance Facility Transit Alternatives Analysis Transit Enhancement Program Transit Headquarters Improvements Sub-Total $ 1,875,000 $ 107,100 3,729,500 350,000 233,000 180,000 700,000 $ -04,400,000 -02,000,000 122,600 $ 6,474,600 $ 7,222,600 $ 13,697,200 $ 100,000 $ -039,000 $ 139,000 $ 10,026,900 $ 10,165,900 $ 102,500 $ 9,500 $ 112,000 -0401,900 401,900 -0374,800 374,800 -0130,000 130,000 -01,050,200 1,050,200 -01,241,200 1,241,200 545,400 16,800 562,200 4,000,000 16,000,000 20,000,000 7,562,300 1,588,200 9,150,500 1,564,900 7,550,900 5,986,000 -02,912,600 2,912,600 1,660,000 5,750,000 7,410,000 2,014,700 3,400,000 5,414,700 -0212,100 212,100 -0822,300 822,300 156,900 $ 9,800,000 70,000 2,575,000 107,100 8,129,500 350,000 2,233,000 302,600 256,900 9,800,000 109,000 $ 26,931,400 $ 30,414,000 $ 57,345,400 Transportation - Street Lighting 1st Avenue: Prince Road to River Road Electrical Systems Upgrades Ft. Lowell Road: Oracle to Country Club Julia Keen Neighborhood Lighting Midvale Park Neighborhood Lighting Sub-Total F-16 $ 619,000 $ -0-0150,000 300,000 -0- $ 150,000 263,000 -0-0- 619,000 150,000 263,000 150,000 300,000 $ 1,069,000 $ 413,000 $ 1,482,000 Transportation Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Transportation - Streets 22nd Street: I-10 to Kino Boulevard 6th Avenue: 18th Street Intersection Ajo to Silverlake Bikeway Project, Phase II Anklam Road Traffic Safety Improvements Barraza-Aviation Downtown Links, Phase I Barraza-Aviation Parkway: 4th Avenue Underpass Broadway Boulevard: Euclid to Campbell Broadway: Euclid to Country Club Cambio Grande Street Revitalization Camino Seco and Wrightstown Intersection Campbell Avenue Revitalization Congress Street Bikeway Project, Phase II Downtown Pedestrian Implementation El Camino del Cerro Reconstruction Ft. Lowell: Campbell Intersection Improvements Golf Links and Kolb Intersection Design Golf Links: Wilmot Intersection Improvements Grant and Craycroft Intersection Improvement Grant Road Corridor Harrison and Wrightstown Curve Design Harrison Road: Speedway to Old Spanish Trail Highland Avenue Bike and Pedestrian Improvements Houghton Road Bridge Replacement Houghton Road: I-10 to Valencia Houghton Road: Old Spanish Trail to Valencia Houghton Road: Speedway to Old Spanish Trail Impact Fee Capacity - Road Improvements Irvington and Campbell Intersection Kino Parkway Overpass at 22nd Street Miscellaneous Developer-Funded Improvements Miscellaneous Street Improvements Mountain Avenue: Roger Road to Ft. Lowell Road Oracle and Drachman Main Intersection Park and Euclid Bicycle and Pedestrian Bridge Presidio Trail ADA Improvements Road Resurfacing, Restoration, and Rehabilitation Santa Rita Park Pedestrian Enhancements South 4th Avenue Streetscape Enhancement Speedway and Main Intersection Improvements Speedway: Camino Seco to Houghton Starr Pass: Mission Intersection Improvements Stone Ave: Drachman and Speedway Improvements Stone Avenue: 6th Street to Speedway Stone Avenue: Pedestrian Safety Improvements $ F-17 -0- $ 2,359,000 -05,000 -013,000,000 550,000 -0492,000 -0-0-0146,000 -0-0-068,000 950,000 -0-0300,000 1,150,000 982,000 -0-0-0-0-01,000,000 -0-0-01,200,000 1,500,000 -0-0186,000 328,000 -0-0558,000 40,000 50,000 64,400 1,200,000 $ 1,200,000 55,000 2,414,000 424,200 424,200 -05,000 600,000 600,000 4,165,000 17,165,000 2,000,000 2,550,000 2,110,000 2,110,000 -0492,000 200,000 200,000 851,600 851,600 70,000 70,000 -0146,000 500,000 500,000 373,000 373,000 250,000 250,000 193,000 261,000 3,500,000 4,450,000 1,437,000 1,437,000 50,000 50,000 3,106,700 3,406,700 -01,150,000 1,000,000 1,982,000 1,550,000 1,550,000 1,800,000 1,800,000 1,275,000 1,275,000 8,913,400 8,913,400 800,000 800,000 2,500,000 3,500,000 1,200,000 1,200,000 550,000 550,000 5,005,000 5,005,000 400,000 1,600,000 -01,500,000 260,000 260,000 5,512,300 5,512,300 14,000 200,000 -0328,000 1,000,000 1,000,000 755,000 755,000 -0558,000 300,000 340,000 -050,000 162,600 227,000 Transportation Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name $ Tanque Verde and Dos Hombres Intersection Tyndall Avenue Enhancements Wilmot at Park Place Intersection Improvements Sub-Total -0- $ 505,000 45,000 250,000 $ -0198,000 250,000 505,000 243,000 $ 25,478,400 $ 54,530,800 $ 80,009,200 Transportation - Traffic Signals 6th Street and Euclid Signal Upgrade Changeable Message Signs Communication System Improvements Control Center to South Tucson Connection Country Club and Pima Signal Upgrade Harrison/Golf Links Communication Project Intelligent Transportation System Improvements Intelligent Transportation System: ATLAS Intelligent Transportation System: ER Link Living Transportation Laboratory Nogales Highway and Drexel Signal Upgrade Old Vail and Valencia Signal Upgrade Pre-emption and Transit Signal Priority Regional Transportation Data Network Rita Road and Old Vail Signal Upgrade School Flasher Construction Starr Pass and La Cholla Traffic Signal Stone Avenue and Glenn Signal Upgrade Traffic Signal and Control Equipment Valencia Road Fiber Optic Cabling $ 50,000 $ -060,000 109,800 175,000 171,000 37,000 -0-0133,000 75,000 25,000 -0-0-0150,500 3,000 -0-0217,400 -0- $ 150,000 1,829,000 -075,000 -0-050,000 325,000 -0-050,000 75,000 600,000 75,000 150,500 26,000 75,000 450,000 -0- 50,000 150,000 1,889,000 109,800 250,000 171,000 37,000 50,000 325,000 133,000 75,000 75,000 75,000 600,000 75,000 301,000 29,000 75,000 450,000 217,400 Sub-Total $ 1,206,700 $ 3,930,500 $ 5,137,200 Department Total $ 61,299,100 Source of Funds Summary 2000 General Obligation Bond Funds 2000 Street and Highway Revenue Bond Funds Capital Agreement Fund Capital Agreement Fund: PAG Capital Agreement Fund: Pima County Bonds Capital Agreement Fund: Pima County Contribution Federal Highway Administration Grants General Fund: Certificates of Participation Highway User Revenue Fund Highway User Revenue Fund: Contributions Highway User Revenue Fund: In-Lieu Fees Mass Transit Fund: Federal Grants Mass Transit Fund: General Fund Transfer $ F-18 $ 106,537,800 $ 167,836,900 4,510,600 $ 1,085,600 $ 5,596,200 -063,200 63,200 -0150,500 150,500 14,436,000 6,879,000 21,315,000 2,000,000 4,500,000 6,500,000 2,233,000 6,400,000 8,633,000 7,664,100 13,261,900 20,926,000 4,000,000 16,000,000 20,000,000 1,387,100 1,258,400 2,645,500 -0200,000 200,000 182,000 1,200,000 1,382,000 19,861,100 10,779,800 30,640,900 2,874,000 1,332,300 4,206,300 Transportation Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Source of Funds Summary Parkwise: Certificates of Participation Parkwise: Fees and Charges Regional Transportation Authority Fund Road and Park Impact Fee Fund: Central District Road and Park Impact Fee Fund: East District Road and Park Impact Fee Fund: Southeast District Road and Park Impact Fee Fund: Southlands District Road and Park Impact Fee Fund: West District State Infrastructure Bank Federal Pass-Through $ Department Total -0- $ 9,800,000 $ 9,800,000 139,000 226,900 365,900 1,949,000 17,495,000 19,444,000 -02,481,500 2,481,500 -01,712,700 1,712,700 -01,832,500 1,832,500 -02,952,400 2,952,400 -01,984,300 1,984,300 -05,005,000 5,005,000 $ 61,299,100 F-19 $ 106,537,800 $ 167,836,900 Tucson Water Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Tucson Water - Potable Water System Tucson Water - Potable Source Development CAVSARP Well Pump Improvements Drill Production Wells New Well Equipping Pressure Tank Replacement Production Well Sites Wellfield Upgrades Sub-Total Tucson Water - Recharge and Recovery South Avra Valley Storage and Recovery Project Sub-Total Tucson Water - Potable Storage Devine Reservoir Vault and Piping Modifications Disinfection Equipment Upgrades Martin Reservoir - Liner Replacement South Avra Valley Reservoir and Booster Station Southeast G Zone Reservoir Thornydale/Tangerine C Zone Reservoir Sub-Total Tucson Water - Potable Pumping Plant CAVSARP Booster Expansion Diamond Bell Ranch G-I Zone Booster Modification I-1 Well and Booster Modifications Las Palomas B-C Booster Station Modifications Pumping Facility Modifications Well I-002B Upgrades Sub-Total Tucson Water - Potable Transmission Cathodic Protection for Critical Pipelines Pipeline Protection: Manhole Upgrades Rehabilitation of Critical Transmission Mains South Avra Valley Raw Water Delivery Pipeline Sub-Total Tucson Water - Potable Distribution CAVSARP Collector Lines Emergency Main Replacement Extensions for New Services Jefferson Park Addition Main Replacement F-20 $ -0- $ -0-0-013,000 -0- 600,000 $ 1,500,000 1,300,000 300,000 50,000 100,000 600,000 1,500,000 1,300,000 300,000 63,000 100,000 $ 13,000 $ 3,850,000 $ 3,863,000 $ 2,454,100 $ 11,520,000 $ 13,974,100 $ 2,454,100 $ 11,520,000 $ 13,974,100 $ 177,000 $ 744,600 -0-0-02,903,000 -0- $ 120,000 50,000 250,000 200,000 1,000,000 177,000 864,600 50,000 250,000 200,000 3,903,000 $ 3,824,600 $ 1,620,000 $ 5,444,600 $ -0- $ 184,000 36,000 207,000 -0150,000 3,000,000 $ -0-0-0310,000 -0- 3,000,000 184,000 36,000 207,000 310,000 150,000 $ 577,000 $ 3,310,000 $ 3,887,000 $ -0- $ -0-01,000,000 300,000 $ 300,000 115,000 115,000 135,000 135,000 9,000,000 10,000,000 $ 1,000,000 $ 9,550,000 $ 10,550,000 $ -0- $ -0-0-0- 900,000 $ 300,000 10,000 50,000 900,000 300,000 10,000 50,000 Tucson Water Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name On-Call Valve Replacement Program Payments to Developers for Oversized Systems Quadrant Main Replacements Review Developer-Financed Potable Projects Road Improvement Main Replacements Routine Main Replacements Samos Main Replacement Vista Las Catalinas Main Replacement Water System Acquisitions Sub-Total Tucson Water - Potable New Services Fire Services Water Services Sub-Total Tucson Water - Potable General Plant CAVSARP Security Eastside Maintenance Facility Facility Safety and Security Infrastructure Meter Upgrade and Replacement Program Miscellaneous Land and Right-of-Way Acquisitions SCADA Communications Upgrade Tucson Water Document Management Sub-Total Tucson Water - Potable Process Control Control Panel Replacements: Potable Remote Control System Upgrades Sub-Total Tucson Water - Capitalized Expense Capitalized Expense Sub-Total Tucson Water - Potable Water System Sub-Total $ 175,000 $ -0309,200 -0-0-0350,000 100,000 -0- $ 934,200 $ 10,487,000 $ 11,421,200 Sub-Total F-21 175,000 100,000 1,009,200 850,000 5,264,000 800,000 1,563,000 100,000 300,000 $ -0- $ -0- 1,500,000 $ 1,210,000 1,500,000 1,210,000 $ -0- $ 2,710,000 $ 2,710,000 $ -0- $ -0-0-0-0-0-0- 413,000 $ 3,750,000 567,000 1,460,000 10,000 150,000 250,000 413,000 3,750,000 567,000 1,460,000 10,000 150,000 250,000 $ -0- $ 6,600,000 $ 6,600,000 $ 10,000 $ -0- 600,000 $ 800,000 610,000 800,000 $ 10,000 $ 1,400,000 $ 1,410,000 $ -0- $ 5,000,000 $ 5,000,000 $ -0- $ 5,000,000 $ 5,000,000 $ Tucson Water - Reclaimed Water System Tucson Water - Reclaimed Source Development Reclaimed Storage and Recovery Sweetwater Wetlands Recharge Facility -0- $ 100,000 700,000 850,000 5,264,000 800,000 1,213,000 -0300,000 8,812,900 $ 56,047,000 $ 64,859,900 $ 89,000 $ 600,000 -0- $ -0- 89,000 600,000 $ 689,000 $ -0- $ 689,000 Tucson Water Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Tucson Water - Reclaimed Pumping Plant Forty-Niners Control Valve Reclaimed Pumping Plant Projects - General Roger Road Plant Booster Expansion Sub-Total Tucson Water - Reclaimed Transmission Reclaimed Emergency Main Enhancements Sub-Total Tucson Water - Reclaimed Distribution Developer-Financed Reclaimed Systems Main Extensions: Miscellaneous Rose Elementary Reclaimed Lateral System Enhancements: Reclaimed Sub-Total Tucson Water - Reclaimed New Services New Metered Services Sub-Total Tucson Water - Reclaimed Treatment Roger Road Reclaimed Water Treatment Plant Sub-Total Tucson Water - Reclaimed Process Control Control Panels: Reclaimed System Sub-Total Tucson Water - Reclaimed Water System Sub-Total $ 110,000 $ -0-0- -0- $ 55,000 600,000 110,000 55,000 600,000 $ 110,000 655,000 $ 765,000 $ -0- $ 50,000 $ 50,000 $ -0- $ 50,000 $ 50,000 $ -0- $ -050,000 -0- 60,000 $ 55,000 -0100,000 60,000 55,000 50,000 100,000 $ 50,000 $ 215,000 $ 265,000 $ -0- $ 50,000 $ 50,000 $ -0- $ 50,000 $ 50,000 $ 580,000 $ -0- $ 580,000 $ 580,000 $ -0- $ 580,000 $ 10,000 $ 180,000 $ 190,000 $ 10,000 $ 180,000 $ 190,000 $ Department Total 1,439,000 $ 10,251,900 Source of Funds Summary 2005 Water Revenue Bond Funds Central Arizona Project Reserve Fund Tucson Water Fund: State Grants Tucson Water Revenue and Operations Fund $ 1,150,000 $ 2,589,000 $ 57,197,000 $ 67,448,900 $ 10,251,900 $ 35,328,000 $ 45,579,900 -020,000 20,000 -0623,000 623,000 -021,226,000 21,226,000 Department Total $ 10,251,900 F-22 $ 57,197,000 $ 67,448,900 Information Technology Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Voice and Data Network and Component Upgrades $ Department Total 4,000,000 $ $ 4,000,000 Source of Funds Summary General Fund: Certificates of Participation $ Department Total 4,000,000 $ $ 4,000,000 ` F-23 $ $ -0- $ -0- $ 4,000,000 -0- $ -0- 4,000,000 4,000,000 $ 4,000,000 Non-Departmental - General Expense Adopted Fiscal Year 2008 Carry Total Forward New Funding Program Area/Project Name Human Resources Management System Tax Revenue Management System $ -0- $ 1,050,000 1,000,000 $ 1,150,100 1,000,000 2,200,100 $ 1,050,000 2,150,100 $ 3,200,100 Source of Funds Summary General Fund: Restricted $ 1,050,000 $ 2,150,100 $ 3,200,100 Department Total $ 1,050,000 2,150,100 3,200,100 Department Total F-24 $ $ $ City of Tucson Section G City Strategic Plan Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget 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 began 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. The Mayor and Council unanimously approved the 2007-08 Strategic Plan. Each council member leads a subcommittee for each of the six focus area. With more citizen input these subcommittees will understand the community’s priorities and work on specific projects to meet these priorities. G-1 In the Strategic Plan, each priority area is 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 2007. 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 was 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. The Strategic Plan has been updated based on revised revenue projections. 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 $790 million beginning with $16 million in the first year, Fiscal Year 2007, and growing to more than $144 million in the tenth year. Fiscal Year 2008 funding for services is also $16 million for a cumulative $32 million. (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 $151 million from future General Fund revenues be allocated to this goal; an additional $25 million is anticipated from Pima Association of Governments. G-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 $329 million over 10 years is allocated to increase the Police force by 560 officers, including investments to improve effectiveness. This allocation includes $39 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 $205 million for this goal, including the addition of 312 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 $106 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. G-3 G-4 City of Tucson Section H Glossary Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget 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. 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. 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. H-1 GLOSSARY OF TERMS Term Definition 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. 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 H-2 GLOSSARY OF TERMS Term Definition 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. FIDUCIARY FUNDS Funds used to report assets held in a trustee capacity and therefore cannot be used to support the city’s programs. The Tucson Supplemental Retirement System fund is a fiduciary fund. 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 2008, for the City of Tucson, refers to the period July 1, 2007 through June 30, 2008. 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 G, “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 H-3 GLOSSARY OF TERMS Term Definition 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. INTERNAL SERVICE FUNDS Funds used to report any activity that provides goods or services to other funds, departments, or agencies of the primary government on a cost-reimbursement basis. The goal of an internal service funds is to measure the full cost of providing goods or services for the purpose of fully recovering that cost through fees or charges. The Risk Management Fund is such a fund; departments are assessed charges to fund the city’s self-insurance expenses. 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. 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. H-4 GLOSSARY OF TERMS Term Definition 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. 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 H-5 GLOSSARY OF TERMS Term Definition (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 ADA ADEQ ADEQ LUST ATLAS Americans with Disabilities Act Arizona Department of Environmental Quality Arizona Department of Environmental Quality Leaking Underground Storage Tank Advanced Traffic and Logistics Algorithms and Software CAP CAVSARP Ccf CIFP CIP CNG COP Central Arizona Project Central Avra Valley Storage and Recovery Project A water billing unit that equals 100 cubic feet or 748 gallons Capital Improvement Funded Program Capital Improvement Program Compressed Natural Gas Certificates of Participation ER Emergency Room FSP FTE FY Financial Sustainability Plan Full-time Equivalent Fiscal Year GIS HELP HURF Geographic Information Systems Highway Expansion and Extension Loan Program Highway User Revenue Fund LEED Leadership in Energy and Environmental Design MGD million gallons per day PRV PVC pressure reducing value polyvinyl chloride RHODES RTDN Real-time Hierarchical Optimized Distributed Effective System Regional Transportation Data Network SAVSARP SCDA South Avra Valley Storage and Recovery Project Supervisory Control and Data Acquisition TPD TREO TUSD Tucson Police Department Tucson Regional Economic Opportunities, Inc. Tucson Unified School District VoIP Voice over Internet Protocol WIFA Water Infrastructure Finance Authority H-7 H-8 City of Tucson Section I Index Adopted Update for Fiscal Year 2008 Fiscal Years 2007 and 2008 Biennial Budget INDEX Acronyms and Initialisms................................................................................................................................................... Area and Population Growth Charts ............................................................................................................................... H-7 D-1 Biennial Budget Calendar for Fiscal Year 2008 Update ............................................................................................... Budget Adoption Resolution No. 20686......................................................................................................................... Budget and Research .......................................................................................................................................................... Budget Overview................................................................................................................................................................. iii C-9 B-6 A-4 Capital Budget Summary.................................................................................................................................................... Capital Budget Summary by Department – Table I...................................................................................................... Capital Budget Summary by Funding Source – Table II.............................................................................................. Capital Budget Summary of Operating Budget Impacts – Table III ......................................................................... Capital Projects Funds........................................................................................................................................................ City Attorney........................................................................................................................................................................ City Clerk ............................................................................................................................................................................. City Court ............................................................................................................................................................................. City Manager ........................................................................................................................................................................ City Manager’s Message, City of Tucson Adopted Update Budget for Fiscal Years 2008..................................... City of Tucson Annual Salary Scale Elected and Mayor/Council Appointed Officials............................................................................................................................................. City of Tucson Annual Salary Scale – Exempt .............................................................................................................. City of Tucson Annual Salary Scale Fire – Exempt ...................................................................................................... City of Tucson Annual Salary Scale Fire – Non-Exempt ............................................................................................ City of Tucson Annual Salary Scale Golf – Exempt..................................................................................................... City of Tucson Annual Salary Scale Hourly Non-Permanent Classifications Schedule – Non-Exempt .................................................................................................................................. City of Tucson Annual Salary Scale Information Technology – Exempt ................................................................. City of Tucson Annual Salary Scale Legal – Exempt.................................................................................................... City of Tucson Annual Salary Scale – Non-Exempt Schedule.................................................................................... City of Tucson Annual Salary Scale Police – Exempt .................................................................................................. City of Tucson Annual Salary Scale Police – Non-Exempt......................................................................................... City of Tucson Organization Chart Fiscal Year 2008 ................................................................................................... City of Tucson Officials and Directors ........................................................................................................................... City of Tucson Residential Property Owner Tax Valuation Fiscal Year 2007 Property Taxes ............................. City of Tucson Property Tax Summary........................................................................................................................... City Strategic Priorities and Financial Sustainability...................................................................................................... Community Services ........................................................................................................................................................... Community Profile.............................................................................................................................................................. Components of the Total Financial Plan Fiscal Year 2008.......................................................................................... F-1 F-4 F-5 F-7 E-36 B-7 B-8 B-9 B-10 A-1 Debt Service Funds............................................................................................................................................................. Department Projects Five-Year Capital Improvement Program ....................................................................... Development Services............................................................................................................................................... Distinguished Budget Presentation Award ............................................................................................................ E-32 F-8 B-12 v I-1 E-55 E-55 E-56 E-59 E-57 E-60 E-56 E-57 E-58 E-56 E-59 i ii C-8 C-7 G-1 B-11 D-4 E-1 INDEX Environmental Services...................................................................................................................................................... Enterprise Funds ................................................................................................................................................................. Equal Opportunity Programs and Independent Police Review .................................................................................. Explanation of City Funds................................................................................................................................................. Expenditure Adjustments to the Fiscal Year 2008 Budget .......................................................................................... Expenditures-Adopted Fiscal Year 2008 Summary and Pie Chart............................................................................. B-13 E-29 B-15 E-7 B-3 E-3 Finance .................................................................................................................................................................................. Financial Policies and Practices......................................................................................................................................... Fire ......................................................................................................................................................................................... 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.................................... Five-Year Capital Improvement Program – Department Projects............................................................................. Full-Time Equivalent Positions General Purpose Funds and Other Funds Fiscal Years 2007 and 2008................................................................................................................................ B-16 C-4 B-17 F-4 F-5 F-7 F-8 General Fund ....................................................................................................................................................................... General Services .................................................................................................................................................................. Glossary of Terms............................................................................................................................................................... Golf........................................................................................................................................................................................ E-15 B-18 H-1 B-19 How to Use This Budget ................................................................................................................................................... Human Resources ............................................................................................................................................................... iv B-20 Index...................................................................................................................................................................................... Information Technology .................................................................................................................................................... Internal Service Funds........................................................................................................................................................ I-1 B-21 E-34 Legal Requirements............................................................................................................................................................. C-1 Mayor and Council.............................................................................................................................................................. B-5 Neighborhood Resources .................................................................................................................................................. Non-Departmental.............................................................................................................................................................. Number of City Employees per 1,000 Population Chart ............................................................................................. B-22 B-33 D-2 Officials and Directors ....................................................................................................................................................... Organization Chart Fiscal Year 2008............................................................................................................................... ii i Parks and Recreation .......................................................................................................................................................... Police ..................................................................................................................................................................................... Position Changes to the Fiscal Year 2008 Budget......................................................................................................... B-23 B-24 B-35 I-2 E-53 INDEX Procurement......................................................................................................................................................................... Property Tax Summary....................................................................................................................................................... Public Defender................................................................................................................................................................... B-25 C-7 B-26 Residential Property Owner Tax Valuation Fiscal Year 2007 Property Tax............................................................. Revenue Adjustments to the Fiscal Year 2008 Budget................................................................................................. Revenue Descriptions......................................................................................................................................................... Revenue Detail – All Funds Summary ............................................................................................................................ Revenues and Expenditures Comparisons...................................................................................................................... Revenues and Expenditures Comparisons and Fund Balance – General Fund....................................................... Revenues and Expenditures Comparisons and Fund Balance – Other Funds ........................................................ Revenues and Expenditures Summary Fiscal Year 2008 by Operating and Capital................................................ Revenues-Adopted Fiscal Year 2008 Sources and Pie Chart....................................................................................... C-8 B-1 E-38 E-13 E-6 E-11 E-12 E-10 E-2 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 of CIP Impact on the Operating Budget ...................................................................................................... D-3 E-22 C-6 E-5 E-4 F-3 Ten-Year Adopted City Staffing Comparison with Fiscal Years 2007 and 2008 ..................................................... Transportation .................................................................................................................................................................... Tucson Convention Center ............................................................................................................................................... Tucson Water....................................................................................................................................................................... E-51 B-27 B-29 B-30 Urban Planning and Design............................................................................................................................................... Use of General Purpose Funds Compared to Total Funds ......................................................................................... B-32 E-9 I-3 I-4 City of Tucson