Adopted Biennial Budget Summary Fiscal Years 2009 and 2010 Volume I CITY OF TUCSON Adopted Biennial Budget Summary Fiscal Years 2009 and 2010 Presented July 1, 2008 CITY COUNCIL HONORABLE ROBERT E. WALKUP MAYOR REGINA ROMERO WARD 1 SHIRLEY C. SCOTT WARD 4 RODNEY GLASSMAN 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 RICHARD MIRANDA KAREN MASBRUCH Assistant City Manager Assistant City Manager TABLE OF CONTENTS City of Tucson Organization Chart Fiscal Year 2009 ....................................................................................... City of Tucson Officials and Directors ............................................................................................................... Biennial Budget Calendar for Fiscal Year 2009 and 2010 ................................................................................ How to Use This Budget ....................................................................................................................................... Distinguished Budget Presentation Award ......................................................................................................... i ii iii iv vi SECTION A CITY MANAGER'S MESSAGE City Manager’s Message, City of Tucson Fiscal Year 2009 Adopted Budget................................................ Budget Overview .................................................................................................................................................... A-1 A-9 SECTION B STRATEGIC PRIORITIES Strategic Priorities and Financial Sustainability .................................................................................................. B-1 SECTION C LEGAL AUTHORIZATION Legal Requirements Legal Requirements Imposed by the State................................................................................................. Legal Requirements Imposed by the City Charter.................................................................................... Financial Policies and Practices ............................................................................................................................ Statement Required by Arizona Revised Statutes §42-17102.......................................................................... City of Tucson Property Tax Summary............................................................................................................... City of Tucson Residential Property Owner Tax Valuation Fiscal Year 2008 Property Taxes ................................................................................................................ Budget Adoption Resolution No. 20960 ........................................................................................................... C-1 C-2 C-4 C-6 C-7 C-8 C-9 SECTION D COMMUNITY STATISTICAL PROFILE City of Tucson Area and Population Growth Charts ....................................................................................... Number of City Employees Per 1,000 Population Chart................................................................................. Selected Economic Indicators – Tucson Metro Area ....................................................................................... Community Profile ................................................................................................................................................. D-1 D-2 D-3 D-4 TABLE OF CONTENTS SECTION E SUMMARY INFORMATION City of Tucson Components of the Total Financial Plan Fiscal Year 2009 .................................................. Revenues - Fiscal Year 2009 Adopted Sources and Pie Chart......................................................................... Expenditures - Fiscal Year 2009 Adopted Summary and Pie Chart............................................................... Revenues - Fiscal Year 2010 Approved Sources and Pie Chart ...................................................................... Expenditures - Fiscal Year 2010 Approved 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 Years 2009 and 2010 Biennial Budget ................................. Revenues and Expenditures Summary Fiscal Year 2009 by Operating and Capital .................................... Revenues and Expenditures Summary Fiscal Year 2010 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 and Fiduciary Funds .................................................................................................................. Capital Projects Funds ........................................................................................................................................... Revenue Descriptions ............................................................................................................................................ Ten-Year City Staffing Comparison Fiscal Years 2009 and 2010 ................................................................... Full-Time Equivalent Positions General Purpose Funds and Other Funds Fiscal Years 2009 and 2010 .......................................................................................................................... City of Tucson Annual Salary Scale - Elected and Mayor/Council Appointed Officials............................ City of Tucson Annual Salary Scale - Exempt Schedule .................................................................................. City of Tucson Annual Salary Scale - Police - Exempt Schedule.................................................................... City of Tucson Annual Salary Scale - Fire - Exempt Schedule........................................................................ City of Tucson Annual Salary Scale - Information Technology - Exempt Schedule ................................... City of Tucson Annual Salary Scale - Legal - Exempt Schedule ..................................................................... City of Tucson Annual Salary Scale - Golf - Exempt Schedule ...................................................................... City of Tucson Annual Salary Scale - Non-Exempt Schedule......................................................................... City of Tucson Annual Salary Scale - Police - Non-Exempt Schedule ......................................................... City of Tucson Annual Salary Scale - Fire - Non-Exempt Schedule .............................................................. City of Tucson Annual Salary Scale - Hourly Non-Permanent Classifications Non-Exempt Schedule.................................................................................................................................. E-1 E-2 E-3 E-4 E-5 E-6 E-7 E-8 E-9 E-11 E-12 E-13 E-14 E-15 E-16 E-17 E-19 E-26 E-33 E-36 E-38 E-40 E-42 E-55 E-57 E-59 E-59 E-60 E-60 E-60 E-61 E-61 E-62 E-63 E-63 E-64 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............................................................... Department Projects Five Year Capital Improvement Program..................................................................... F-1 F-5 F-6 F-8 F-9 SECTION G GLOSSARY Glossary of Terms .................................................................................................................................................. Acronyms and Initialisms ...................................................................................................................................... G-1 G-7 SECTION H INDEX Index ......................................................................................................................................................................... H-1 CITY OF TUCSON ORGANIZATION CHART FISCAL YEAR 2009 Citizens Mayor and Council City Manager: Mike Hein City Clerk Deputy City Manager: Mike Letcher Support Services Budget & Research City Attorney Assistant City Manager: Karen Masbruch Assistant City Manager: Richard Miranda Environment and Development Strategic Initiatives Neighborhood Services Development Services Tucson Convention Center City Court Finance Environmental Services Community Services General Services Transportation Equal Opportunity Programs & Independent Police Review Human Resources Tucson Water Information Technology Fire Urban Planning & Design Neighborhood Resources Procurement Parks & Recreation* Police *Includes Tucson City Golf i Public Defender 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, Richard Miranda Budget and Research, David Cormier, Interim Assistant City Manager, Karen Masbruch Finance, David Cormier, Interim City Attorney, Mike Rankin General Services, Ronald Lewis City Clerk, Roger W. Randolph Human Resources, Cindy Bezaury NEIGHBORHOOD SERVICES City Court, Antonio Riojas Information Technology and Chief Information Officer, Ann Strine Community Services, M. Emily Nottingham Procurement, Mark A. Neihart Equal Opportunity Programs and Independent Police Review, Liana Perez Fire, Dan Newburn Neighborhood Resources, Eliseo Garza Parks and Recreation, Fred H. Gray, Jr. Police, Kermit Miller, Interim 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, Vacant ii BIENNIAL BUDGET CALENDAR FISCAL YEARS 2009 AND 2010 Sequence of events in the budget-setting process. October 4, 2007 Budget kickoff. April 22, 2008 Submission of the City Manager’s Fiscal Years 2009 and 2010 Recommended Biennial Budget, and Proposed Five-Year Capital Improvement Program Fiscal Years 2009 through 2013 to Mayor and Council. May 6, 2008 Public Hearing on Fiscal Years 2009 and 2010 Recommended Biennial Budget. May 13, 2008 Mayor and Council Study Sessions for the purpose of discussing the Fiscal Years 2009 and 2010 Recommended Biennial Budget and Proposed FiveYear Capital Improvement Program, Fiscal Years 2009 through 2013. May 20, 2008 Mayor and Council Study Sessions for the purpose of discussing the Fiscal Years 2009 and 2010 Recommended Biennial Budget and Proposed FiveYear Capital Improvement Program, Fiscal Years 2009 through 2013. June 3, 2008 Tentative adoption of budget for Fiscal Year 2009. June 10, 2008 Truth in Taxation Hearing on primary property tax levy for Fiscal Year 2009. June 10, 2008 Public Hearing on the Biennial Budget for Fiscal Year 2009 as tentatively adopted. June 10, 2008 Special Mayor and Council meeting for the purpose of final budget adoption. June 25, 2008 Fixing and levying the Primary and Secondary Property Taxes for Fiscal Year 2009. iii HOW TO USE THIS BUDGET 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. This document guide outlines the City of Tucson’s Fiscal Years 2009 and 2010 Adopted Biennial Budget, which is contained in three volumes. Copies of the budget are available at all branches of the Tucson-Pima Public Library, the University of Arizona Main Library, Pima Community College libraries, the City Clerk’s Office, and the Department of Budget and Research. In addition, the budget may be viewed on the City of Tucson web site at http://www.tucsonaz.gov/budget. Information may also be obtained by calling the Department of Budget and Research at (520) 791-4551 or e-mailing the department at budget&research@tucsonaz.gov. Community Statistical Profile - This section of the summary provides the reader with demographic and economic information on Tucson. Summary Information - Schedules contained in this section provide summary level information on the consolidated (operating and capital) city budget. Expenditure and revenue information, descriptions of funds, debt service information, staffing histories, and pay scales are summarized here. Presenting the budget in these volumes allows users to select the level of information that meets their needs. Volume I, the Adopted Budget Summary, provides summary level information. Volume II, the Adopted Budget Operating Detail, and its appendices in Volume IIA and B provides detailed information on staffing and city services. Volume III, the Approved Five-Year Capital Improvement Program, provides detailed information on capital projects. Following are descriptions of the contents in each volume. Capital Budget Summary - This section provides a summary of the Five-Year Capital Improvement Program. Glossary - The glossary defines terms and acronyms used in the budget. Index - The index provides an alphabetical listing of the contents of the budget. Volume I Volume II City Manager’s Message - This section includes the letter from the city manager transmitting the biennial budget to the Mayor and Council and an overview of the budget. In the transmittal letter, the city manager highlights the key policy issues and programs in the biennial budget. The overview includes the following topics: • Financial Sustainability Plan • Where The Money Goes – Expenditures and Staffing • Where The Money Comes From – Revenue Sources • Citizen Impacts • Expenditure Limitation • Budget Development Process The Adopted Budget Operating Detail provides the detail for department budgets. It is organized in alphabetic order, except that the Mayor and Council is first and Non-Departmental is last. Each department section includes a mission statement, an overview of the department, department financial and personnel resources, funding summaries, a summary of significant changes that compare the Fiscal Year 2008 Adopted to the Fiscal Year 2009 Adopted Budget and the Fiscal Year 2009 Adopted Budget to the Fiscal Year 2010 Approved Budget. Key measures of performance are included for the various programs within each department. Strategic Priorities - This section summarizes the strategic plan for the city including the focus areas and the proposed Financial Sustainability Plan. iv Volume III Appendix A: Position Resources by Classification - Appendix A presents, by department and division, the position resources for the Fiscal Years 2009 and 2010 Adopted Biennial Budget, as well as the Fiscal Year 2008 Adopted and Estimated budgets, and Fiscal Year 2007 actual staffing. This section includes the detail by position and pay range for all authorized positions. The Approved Five-Year Capital Improvement Program (CIP) contains the capital budget detail. This volume has two major sections: Overview and Department Programs. Overview - The overview provides a description of the capital program and its impact on the community, including: • Summary Tables • Summary of Planned Expenditures and Funding • Department Program Highlights • Impact on the Operating Budget • Use of Impact Fees Appendix B: Financial Summary - Appendix B displays, by department and division, each organization’s financial summary. The information reflects the financial resources for the Fiscal Years 2009 and 2010 Adopted Biennial Budget, as well as the Fiscal Year 2008 Adopted and Estimated budgets, and Fiscal Year 2007 actual expenditures. Department Programs - In this section of the Approved CIP, each department’s capital budget is presented. Within each department a program statement describes the highlights of the capital program, and the impact of the capital program on the operating budget are tabulated. There are project and funding summaries by major program area. The reader can find the individual project detail in this section. Each project is described, and funding sources, project costs, and other project information (such as start and end dates, ward locations) are presented. v 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. vi Adopted Biennial Budget Summary Fiscal Years 2009 and 2010 Section A City Manager's Message OFFICE OF THE CITY MANAGER July 1, 2008 Honorable Mayor and Council Members: The Fiscal Years 2009 and 2010 Biennial Budget I am presenting to you continues the prudent, disciplined, and necessary ten-year vision that we initiated with the Financial Sustainability Plan in the Fiscal Years 2007 and 2008 Biennial Budget. This budget will allow us to weather the current economic storm, while standing our ground on the service improvements we have gained through the Financial Sustainability Plan. Focus on Services Through the ten-year Financial Sustainability Plan, the Mayor and Council has provided the community with a concise picture of the city’s future needs and the means to achieve its goals. The plan incorporated aspects of the city’s strategic priorities, as well as input from citizens and other planning processes. It focuses 60% of General Purpose Funds revenue growth on improving services to the community. The goal of this year’s budget process has been to maintain the gains achieved through the Financial Sustainability Plan over the last two years. Financial Sustainability Plan Gains in Fiscal Years 2007 and 2008. Over the past two years the city has utilized $48.4 million of General Purpose Funds revenue growth on public safety, street repair and paving, and parks maintenance and programming: • • • • 80 police officers and support staff were added ($18.6 million expended). 75 firefighters and paramedics were added ($12.4 million expended). 24 square miles of residential streets were repaired or repaved ($11.4 million expended). Parks maintenance and youth/senior programming was expanded ($6 million expended). In addition, $32.2 million of General Purpose Funds revenue growth went to fund human capital increases for salaries and benefits over the past two years. • • • Cost-of-living and merit increases ($21.4 million expended). Police and fire officer starting salaries raised ($0.5 million expended). Compression and supplemental pay for police command staff ($0.8 million expended). • Increased pension contributions for general workforce ($0.5 million expended). • Increased pension contributions for public safety workforce ($9.0 million expended). A-1 Financial Sustainability Plan Changes for Fiscal Years 2009 and 2010. The General Purpose Funds budget, which funds the Financial Sustainability Plan, is $492.1 million for Fiscal Year 2009, a decrease of $1.3 million from Fiscal Year 2008. Because the Fiscal Year 2009 General Purpose Fund revenues are just adequate to cover the recurring costs adopted in the Fiscal Year 2008 budget, funds are not available to expand services or fund human capital adjustments. Just as there are no service increases for citizens in the Fiscal Year 2009 Adopted Budget, there are no raises for employees. However, the Fiscal Year 2009 Adopted Budget does continue the past two years of Financial Sustainability Plan’s service and human capital increases: • • • • • Maintains Police and Fire staffing at the city’s highest recorded levels. Repairs and repaves another 16 square miles of residential streets. Continues 24,000 hours of maintenance and 20,000 hours of programs in Parks and Recreation. Funds $800,000 in Parks and Recreation facility improvements. Maintains employee raises and benefit contributions. For Fiscal Year 2010, preliminary revenue projections indicate growth of $10.9 million that will be available for increases in Financial Sustainability Plan funding: $6.5 million to improve services and $4.4 million for human capital investments. Increased Personnel Costs in Fiscal Year 2009. While there are no Financial Sustainability Plan funds for human capital adjustments, the city is still faced with increased personnel costs and no revenue growth. The Fiscal Year 2009 budget has to cover an estimated $11 million for public safety pension contribution increases ($6 million), the full-year cost of the Fiscal Year 2008 merits ($3 million), and medical insurance rate increases ($2 million). While it would have been easy to reverse course on the Financial Sustainability Plan to fund this deficit, Mayor and Council have made it clear that they don’t want to retreat from progress on their ten-year vision. Instead, to cover these increased costs, support departments will be asked to further tighten their belts. Prior to the tentative adoption of the budget, staff transferred existing funding between departments to cover the public safety pension contribution increase and the full-year cost of Fiscal Year 2008 merits. Funding for the increased personnel costs will come from filling retiree vacancies at lower salaries and from reducing department budgets through increased turnover rates, which will require the continued management of vacancies in Fiscal Year 2009. Potential non-personnel increases in fuel and energy rate changes will be recovered through an extension of travel reductions and major acquisition deferrals begun in Fiscal Year 2008. In recognition of the economic strains on our 80% employees and the lack of funds for pay raises, CPI Urban COLA Add Merit Add Benefits employees will be protected from reductions needed to fund these additional costs: There will be no 60% layoffs. The city has experienced down cycles before and has not been able to increase wages in other budget years. However, as the chart to the right shows, the city has been successful over the past ten years in providing salary and benefit increases that exceed the rate of inflation. 40% 20% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Fiscal Year A-2 Ten-Year Financial Sustainability Goals. While current economic conditions will impact our ability to move forward as aggressively as originally planned for Fiscal Years 2009 and 2010, it is important that we keep our attention on the ten-year goals of the Financial Sustainability Plan: Reduce Crime. The city anticipates adding police officers to meet the goal of 2.4 police officers per 1,000 residents and adding support staff for a total investment of close to $330 million. Save Lives and Property. Fire and paramedic response capabilities will be improved with funding in excess of $200 million. Eight new fire stations are planned, which will house additional firefighters and paramedics, with the goal of reducing response time. Maintain Our Roadways. The road maintenance program will be expanded by a total investment of more than $151 million, including $25 million from other agencies. Address Social Concerns. Child and family programs such as KIDCO, JobPath, SchoolPlus-Jobs, and Exploring our Future, as well as new programming and services for youth and seniors, will be expanded with $26 million in funding. Improve Parks Facilities and Recreational Opportunities. Close to $80 million will fund maintenance of parks and recreational facilities as well as operating funds for new facilities that will support increased programming opportunities. While 60% of the Financial Sustainability Plan is allocated for service enhancements, the other 40% is for the human capital requirements of the city organization. Over the course of the ten-year plan, approximately $520 million will be used to keep up with required pension contributions and salary adjustments for employees to ensure that citizens are served by a well-qualified and dedicated workforce. I believe the way to achieve our goals is to be patient and stay focused on the ten-year plan, making disciplined financial decisions during periods of economic slowdown and re-committing ourselves to advancing the plan when economic times are good. Improving the City’s Financial Position Over the last ten years, the city’s financial position has been improved by increasing fund balances and by controlling base budgets and staffing levels. Increasing Fund Balance. In 2007, the Mayor and Council increased the reserve requirement from 7.5% to 10%. Reserves have grown from less than 1% in 2003 to more than 10% in 2007. This has partly made possible by economic growth, but also by not giving in to the temptation to use one-time funds—which the reserve is—for recurring costs. Maintaining the reserve at 10% during this economic slowdown will be a challenge. Maintenance of the General Fund Unreserved Balance at the city’s policy level is critical to the financial health of the city. It also has implications for securing general obligation bonds that finance public safety and other facilities that service the public. General Fund Unreserved Balance 12.0% 10.0% 8.0% Actual Goal 10% 6.0% 4.0% 2.0% 0.0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Fiscal Year “Fund balance is a measure of an issuer’s financial flexibility to meet essential services during periods of limited liquidity. Standard & Poor’s considers an adequate fund balance to be a credit strength.” - Standard and Poor’s Public Finance Criteria manual. A-3 Controlling Base Budgets. Controlling base budgets is an integral part of the Financial Sustainability Plan; without controlling our current costs we would not be able to dedicate revenue growth to improving services and investing in human capital. A basic tenet of the Financial Sustainability Plan has been that the city’s budget would offset the impact of population and inflationary pressures by generating cost savings throughout the organization. Over the life of the plan, departments will have to continuously improve their service delivery by doing more with less. Over the past two years, departments have had to absorb the cost impacts of inflation and the demands of a growing population. Following are some of our “controlling base budgets” accomplishments to date: • • • • Per capita budgets have decreased on a constant dollar basis (i.e., adjusted for inflation). Since 2006, new city positions have primarily been to implement Financial Sustainability Plan services, such as additional police officers and firefighters. Staffing has been reduced through attrition in support operations such as fleet, purchasing, personnel, etc. since 1999. Total Budget per Capita Adjusted for Inflation $2,000 Operating Budget Capital Budget ISF* FSP** $1,600 $1,200 $800 $400 $0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Past and current retirement incentives have reduced recurring personnel costs. Fiscal Year *Internal Service Funds *Financial Sustainability Plan The Financial Sustainability Plan itself has helped to control base budgets by limiting funding for human capital increases to 40% of revenue growth. Beginning in Fiscal Year 2007, the Financial Sustainability Plan reversed prior year trends that saw over 60% of funding allocated to human capital and only 40% to services. Future Benefit Changes. To complement department efforts at reducing the costs of service delivery, several changes in employee benefits have been initiated to help control future cost pressures on base budgets. Revenue Allocations Services Human Capital 100% 80% 60% 40% 20% 0% 1999 2000 2001 2002 2003 2004 2005 2006 Fiscal Year Pension Contribution Rates. Contribution rates to Tucson Supplemental Retirement System (TSRS) for new employees will be based on the total required combined contribution rate calculated annually, which will save the city up to $2 million annually. Retirement Program Changes. An End of Service (EOS) Program is offered to help with the long-term goal of workforce planning. TSRS employees who are eligible to retire prior to December 31, 2010, may participate in this program, which sets aside their monthly retirement benefit in an interest-bearing account while they continue to work up to one additional year for the city. A-4 2007 2008 Medical Benefit and Premium Changes. The city has had successful negotiations with our current medical insurance provider (CIGNA HealthCare) and is renewing the contract for next fiscal year. Initially, CIGNA offered the city a 14% premium rate increase, but the city was successful in negotiating that down to a 6% rate increase. Plan offerings were changed based on feedback received from an Employee Benefit Survey conducted in March 2008. The city has offered a high premium plan, a low premium plan, and a choice fund plan. The Open Access Plus plan, which provided referral-free access to physicians, was eliminated due to low participation and high cost. A cost saving feature built into the contract includes premium returns for employee participation in a health risk assessment. CIGNA agreed to a premium credit based on the level of employee completion of CIGNA's on-line Health Risk Assessment (HRA) by June 15, 2008. If 50% to 74% of the employees complete the HRA, a premium credit of 0.75% will be issued back to the city. A 75% or greater employee participation rate will garner the city a 1.5% premium credit. While a lower rate increase was negotiation, the city will be absorbing a $2 million premium increase for active and retired employees. As has been discussed with Mayor and Council, the city will move to a three tiered salary-based employee contribution, with better paid employees bearing a greater cost of their medical benefit. For employees with base salaries of $60,000 or less (approximately 3,600 employees), their premium levels will be set at current rates for the basic HMO and HRA plans. For employees with base salaries of $60,001 to $100,000 (approximately 1,850 employees), premium levels will be set at 5% more than the rates for the lowest salary-based premium. Premium levels for employees with base salaries of more than $100,001 (approximately 140 employees) will be set at 10% more. Depending upon the plan selected, employees making over $60,000 would be paying from $1 to $9 more per pay period for medical insurance. Retiree Medical Premium Changes. Like most other city, county, and state governments, the City of Tucson is facing a funding challenge related to Government Accounting Standards Board Statement 45, which requires disclosing liabilities relating to Other Post-Employment Benefits. The city’s other post-employment benefit is the medical insurance provided to retirees. While the city’s policy has been to contribute 75% to the cost of medical premiums for retirees prior to Medicare eligibility (upon eligibility for Medicare, the city's contribution ceases), the city’s post-employment liability can be reduced by switching to a fixed-amount subsidy. Other Arizona retirement systems provide a fixed-amount subsidy (currently $160-240 depending on the coverage). To contain future costs, the city will offer a fixed contribution for this benefit. For those who enter the EOS Program or retire prior to January 1, 2011, the medical benefit will remain at the 75% level. For those retiring January 1, 2011 or later, the benefit will be $200 for the retiree only, $375 for retiree and one dependent, or $475 for a family. As with the current policy, the city’s retiree medical benefit will stop when the retiree reaches Medicare eligibility. Managing through the Current Recession While an economic slowdown was anticipated for Fiscal Years 2008 and 2009, revenue trends progressively deteriorated throughout 2008 with no significant recovery anticipated for 2009. The significant slowdown in the housing market and turmoil in the credit markets have had a significant impact on Arizona’s economy. Early data available in November 2007 suggested a $5 million shortfall for the City of Tucson based on reduced local and state-shared sales tax collections. However, holiday revenues proved to be very disappointing and the estimated revenue shortfall was revised upwards to $12 million. The City of Tucson is A-5 not alone. Many others, including the City of Phoenix and the State of Arizona, have experienced similar downward trends with revenue estimates getting progressively worse. In response to the city’s projected deficit in Fiscal Year 2008, a decision was made to hold non-public safety positions vacant, cut travel, and defer major acquisitions and improvements. The impact of the economic slowdown on the city’s revenues is also reflected in the General Purpose Funds portion of the Fiscal Years 2009 and 2010 Adopted Biennial Budget. Most of the city’s revenue shortfall estimated for Fiscal Year 2008 is projected to be recovered in Fiscal Year 2009. As the following table shows, Fiscal Year 2009 General Purpose Funds revenues are anticipated to be $1.7 million below the adopted budget for Fiscal Year 2008. For Fiscal Year 2010, a moderate increase of just under $11 million is anticipated. General Purpose Funds ($ millions) Budget 2008 Preliminary Estimates 2009 2010 Sales Tax State Shared Other 212.9 154.4 126.1 206.8 157.0 128.3 214.1 159.5 129.0 Total Services 493.4 492.1 502.6 -1.3 10.5 53.6 64.5 -0- 10.9 Change Financial Sustainability 53.6 Change Permanent Reductions Are Needed. The General Purpose Funds savings efforts started in Fiscal Year 2008 and that will continue in Fiscal Year 2009 are only temporary solutions. As noted earlier, during Fiscal Year 2009, departments will be asked to evaluate the services and activities they perform to determine opportunities for permanent savings by eliminating vacant positions, consolidating services, and improving efficiencies. This effort will help us manage the recession and is a next step in the continuous improvement cycles that the Financial Sustainability Plan requires to be successful. City Support to Outside Groups The draft report distributed to the Mayor and Council in January was an effort to provide information on our investments in community agencies. It was intended to serve as transparent look at all city expenditures for human services, arts and cultural enrichment, and economic and workforce development that would support a more strategic approach to those investments. That report revealed that the city is spending approximately $127 million annual in support to outside groups. While there is no plan to make cuts in that commitment level, there are no plans to grow that investment level. Over the course of the next few years, Mayor and Council will have the opportunity to review this support and decide how to strategically allocate the available resources for the greatest benefit to the public. A-6 Enterprise Funds The city has three enterprise departments that are primarily funded by user fees for the services provided to citizens. Tucson Water, Environmental Services, and Tucson City Golf are also engaged in their own efforts to improve services and plan for future financial health. Tucson Water. Tucson Water is working with Pima County on a joint study that will include an evaluation of the health of the region’s water and wastewater infrastructure. Tucson Water’s Fiscal Year 2009 budget incorporates a proposed 8% revenue increase, which includes a dedicated funding source for conservation efforts. The additional revenue of approximately $9.5 million will be used to secure the city’s full allotment of Colorado River water, fund projects that recharge and store that water, and enhance conservation programs. Environmental Services. Environmental Services’ Fiscal Year 2009 budget initiates a pay-as-you-go replacement program for refuse vehicles. This program is expected to reduce long-term maintenance costs and maintain current service levels for both residential and commercial customers. Their capital budget funds construction projects that will keep the city’s only open landfill, Los Reales, operational, in regulatory compliance, and prepared to meet future regional needs for waste disposal. Golf. Tucson City Golf (TCG) provides the most affordable access to golf in the region. Their facilities, some recently redesigned, provide local and visiting golfers with a golfing bargain compared to the high-end daily fee and resort courses. TCG has completed changes to the Trini Alvarez Golf Course and is working with the Tucson Conquistadors on the First Tee program. Over 500 young people signed up last year for the First Tee’s instructional and educational programs. Besides providing recreational and social benefits to the young golfers and their families, this program will help TCG grow its customer base. Increasing participation level in the sport is one way that TCG can help meet the financial challenges posed by the current recession. Total Adopted Biennial Budget The Fiscal Year 2009 Adopted Budget totals $1.294 billion, which is $31.5 million more than the adopted budget for Fiscal Year 2008. As noted above, the General Purpose Funds budget, which funds the Financial Sustainability Plan and other key services to the community, is $492.1 million for Fiscal Year 2009, a decrease of $ 1.3 million from Fiscal Year 2008. The restricted funds budget for Fiscal Year 2009 is $32.8 million more than Fiscal Year 2008, primarily due to the inclusion of budget capacity for potential refundings and new, financed projects. The Fiscal Year 2010 Approved Budget totals $1.270 billion, which is decrease of $23.7million from the Fiscal Year 2009 Adopted Budget. The General Purpose Funds budget of $502.6 million is a $10.5 million increase, reflecting the anticipated revenue growth that would be allocated to the Financial Sustainability Plan. The restricted funds budget in Fiscal Year 2010 decreases a $34.2 million due to the exclusion of refunding capacity. The decision to add refunding capacity will be made during the FY 2010 Update Year budget process. Following this transmittal memo is an overview of the city’s adopted budget that provides a summary of Fiscal Years 2009 and 2010 revenues and expenditures and the reasons for the annual changes. Conclusion The Financial Sustainability Plan is a ten-year vision for improving city services. During the first two years, revenues exceeded the long-term trend and during the next two years the city will experience revenue growth below that trend. While there will be future economic fluctuations, with financial discipline, the city can end the ten years attaining the Financial Sustainability Plan’s goals. We live in a dynamic community that is A-7 BUDGET OVERVIEW The Tucson City Charter requires that the City Manager submit a recommended budget to the Mayor and Council on or before the first Monday in May for the following fiscal year. The Mayor and Council review the City Manager’s recommended budget and are required by the State of Arizona to adopt a balanced budget on or before the third Monday in August. For Fiscal Years 2009 and 2010, the recommended biennial budget was submitted to the Mayor and Council on April 22, and the Mayor and Council adopted the budget on June 10. Fiscal Year 2009 $ 1.294 billion General Purpose Funds 38% Enterprise Funds 17% Year 1 - Fiscal Year 2009. The Fiscal Year 2009 Adopted Budget totals $1.294 billion. Approximately 62% is from restricted funds that can only be used for specific purposes: 17% from Enterprise Funds of $222.2 million and 45% from Other Restricted Funds of $579.7 million. The remaining 38% or $492.1 million is from General Purpose Funds, which the Mayor and Council have discretion to program to meet the city's priority needs. The Fiscal Year 2009 Adopted Budget is a status quo budget. The General Purpose Funds budget decreased by $1.3 Other million due to a reduction in funds carried forward for Restricted Funds capital projects. The Restricted Funds budget increased by 45% $32.8 million primarily due to the addition of budget capacity for the potential refundings ($25 million) and for the Parque de Santa Cruz developer payment ($4.5 million). The total increase over the Fiscal Year 2008 Adopted Budget is $31.5 million. The Fiscal Year 2009 Adopted Budget continues the services added in the prior years of the Financial Sustainability Plan (FSP). However, due to the economic slowdown, new funding for the FSP is not anticipated until Fiscal Year 2010. Year 2 - Fiscal Year 2010. The Fiscal Year 2010 budget totals $1,270.3 million, an overall decrease of $23.7 million from the Fiscal Year 2009 budget. The decrease is primarily in Other Restricted Funds, because of no capacity included for refundings and no carryforward for capital projects. The decrease of $44.0 million in the Other Restricted Funds was offset by an increase in the General Purpose Funds due to the inclusion of $10.9 million to advance the FSP. Total Budget ($ millions) FY 2008 Budget General Purpose Funds Enterprise Funds Other Restricted Funds Total $ Operating Capital $ Total FY 2009 Budget Change 493.4 $ 492.1 $ 209.6 222.2 559.5 579.7 $ 1,262.5 $ 1,294.0 $ FY 2010 Budget Change (1.3) $ 502.6 $ 10.5 12.6 232.0 9.8 20.2 535.7 (44.0) 31.5 $ 1,270.3 $ (23.7) 929.6 $ 1,048.5 $ 118.9 $ 1,030.7 $ (17.8) 332.9 245.5 (87.4) 239.6 (5.9) $ 1,262.5 $ 1,294.0 $ 31.5 $ 1,270.3 $ (23.7) A-9 This Budget Overview is organized into six sections: Financial Sustainability Plan Where the Money Goes – Expenditure Budget and Staffing Where the Money Comes From – Revenue Sources Impacts on Citizens Expenditure Limitation Budget Development Process This overview focuses on the changes from the Adopted Fiscal Year 2008 Budget to the Adopted Fiscal Year 2009 Budget. For more detailed information on changes, see Section E of this volume and Volume II. FINANCIAL SUSTAINABILITY PLAN The ten-year Financial Sustainability Plan (FSP), which was implemented with the Fiscal Year 2007 Budget, focuses revenue growth on improving services and meeting the human capital requirements of the organization. Revenue growth is allocated 60% for service enhancements and 40% for human capital needs. Due to the economic slowdown, no revenue growth is projected for Fiscal Year 2009, which leaves the FSP total at $53.6 million from Fiscal Years 2007 and 2008 and preserves the service gains made over the past two years. Modest revenue growth of $10.9 million is projected for Fiscal Year 2010, bringing the total for the FSP to $64.5 million. The allocation of that revenue growth to specific service improvements will be made during the Fiscal Year 2010 update budget process. Financial Sustainability Plan ($ millions) FY 2008 Budget Service Improvements • Expand road maintenance of residential streets • Hiring additional police officers, plus funding for support and judicial staff $ • Improving fire and paramedic response capabilities with funding and staff • Increasing funds for Parks and Recreation programming and facilities maintenance Human Capital • Pay and benefit adjustments $ 7.4 $ 12.3 FY 2009 Budget Change FY 2010* Budget Change 7.4 12.3 -0-0- tbd tbd tbd tbd 8.6 8.6 -0- tbd tbd 3.9 3.9 -0- tbd tbd 32.2 32.2 -0- 38.7 6.5 21.4 21.4 -0- 25.8 4.4 53.6 $ 53.6 -0- $ 64.5 $ $ 10.9 *The allocation of the $6.5 million in revenue growth during FY 2010 for service improvements will be made during the next budget cycle. A-10 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. WHERE THE MONEY GOES The city budget funds a broad range of services. Some departments are self-supporting and are included in the Enterprise group, which makes up 15% of the Fiscal Year 2009 Budget. The Public Safety group, consisting of Police, Fire, and Judicial departments, makes up 21% of the Fiscal Year 2009 Budget. The three largest departments providing other direct services to the public (Parks and Recreation, Transportation, and Community Services) use 19% of the budget. Other departments, including general support and debt service use 26% of the budget. The capital budget for all departments makes up the remaining 19% of the Fiscal Year 2009 Budget. The Enterprise group includes Environmental Services 4%, Golf 1%, and Water 10%. Fiscal Year 2009 Expenditures $ 1.294 billion Public Safety group totals 21% (Police, Fire, and Judicial). Police 13% Enterprise 15% Fire 6% Judicial 2% Community Services 6% Parks and Recreation 4% Capital 19% Transportation 9% General Support 4% Debt Service 8% A-11 Other 6% Internal Service/Fiduciary 8% Expenditure Changes Changes by department or department category, from Fiscal Year 2008 to Fiscal Year 2009 and from Fiscal Year 2009 to Fiscal Year 2010, are briefly noted below and on the following pages. Additional information on department budgets can be found in Volume II. The Fiscal Year 2009 Budget contains no new funding for the Financial Sustainability Plan, which means there are no increases to department service levels or to employee compensation. For Fiscal Year 2010, $10.9 million has tentatively been included for increases to the Financial Sustainability Plan. Those funds remain unallocated in the Non-Departmental budget. Expenditures ($ millions) FY 2008 Budget Public Safety Police Fire Judicial Public Safety Sub-Total $ FY 2009 Budget Change FY 2010 Budget Change 170.7 $ 82.6 24.2 277.5 166.5 $ 84.4 22.7 273.6 (4.2) $ 1.8 (1.5) (3.9) 166.8 $ 84.4 22.6 273.8 Enterprise Operations Golf Environmental Services Water Enterprise Sub-Total 11.1 43.5 124.6 179.2 11.1 52.2 131.4 194.7 -08.7 6.8 15.5 11.1 53.1 137.4 201.6 -00.9 6.0 6.9 Other Operating Departments Transportation Community Services Parks and Recreation General Support* Debt Service Internal Service and Fiduciary** Other Other Operating Sub-Total 108.1 78.8 49.7 62.4 73.9 -0100.0 472.9 111.4 78.3 48.0 54.7 102.6 110.2 75.0 580.2 3.3 (0.5) (1.7) (7.7) 28.7 110.2 (25.0) 107.3 113.7 78.2 47.7 52.5 74.0 108.9 80.3 555.3 2.3 (0.1) (0.3) (2.2) (28.6) (1.3) 5.3 (24.9) Operating Budget Total 929.6 1,048.5 118.9 1,030.7 (17.8) Capital Budget 332.9 245.5 (87.4) 239.6 (5.9) Total $ 1,262.5 $ 1,294.0 $ 1,270.3 $ (23.7) $ 31.5 0.3 -0(0.1) 0.2 * Includes City Clerk Elections which decreases or increases $1 to $2 million depending on election year. **Category of internal revenues and expenditures that is required by the state. Public Safety Changes Police. The department's operating budget decrease of $4.2 million in Fiscal Year 2009 is due to a reduction in grant capacity. The Fiscal Year 2008 Budget included a larger amount for homeland security grants that the city received; the Fiscal Year 2009 reduced budget reflects a more realistic estimate of possible grant awards. There is a slight increase of $0.3 million to the department’s budget for Fiscal Year 2010. Financial Sustainability Plan funding for Fiscal Year 2010 remains unallocated in the Non-Departmental budget. A-12 Public Safety Changes (continued) Fire. Fire's operating budget increase of $1.8 million in Fiscal Year 2009 is primarily due to increased pension contributions. There is no change for Fiscal Year 2010. Financial Sustainability Plan funding for Fiscal Year 2010 remains unallocated in the Non-Departmental budget. Judicial. This category includes City Court, City Attorney, and Office of the Public Defender. This category is decreased $1.5 million in Fiscal Year 2009 and $0.1 million in Fiscal Year 2010. These decreases are due to the transfer of personnel costs to cover retiree medical and payout costs in Non-Departmental and increased pension contributions in Police and Fire. Financial Sustainability Plan funding for Fiscal Year 2010 remains unallocated in the Non-Departmental budget. Enterprise Operations Changes Golf. For Fiscals Year 2009 and 2010, there is no change in Golf’s operating budget. For budgeting purposes, the Golf fund is projected to break even; revenues and expenditures are carefully monitored. Environmental Services. The department's operating budget increase of $8.7 million in Fiscal Year 2009 is primarily due to the acquisition of new refuse vehicles for $4.0 million, an increase in debt service payments at $2.5 million, and higher costs for vehicle operations of $1.1 million. The remaining difference is due to a change in the accounting of expenditures and revenues at the Material Recycling Facility. For Fiscal Year 2010, the operating budget increases $0.9 million primarily due to increases in debt service payments and the acquisition of equipment. Water. The increase of $6.8 million in the department’s Fiscal Year 2009 Operating Budget is primarily due to $5.0 million added for the purchase of the city’s full allotment of Colorado River water and $1.8 million in additional debt service requirements. For Fiscal Year 2010, the increase to the operating budget of $6.0 million is due to higher debt service requirements and increased power costs. Other Operating Department Changes Transportation. The department's operating budget increases by $3.3 million in Fiscal Year 2009. That increase is primarily due to additional capacity of $6.6 million from the Regional Transportation Authority, which is partially offset by a decrease of $5.2 million in Highway User Revenue Funds from the state for street programs. There is also a $1.5 million transfer from the capital budget to support Sun Tran and Van Tran operations and $1.1 million of capacity for increased costs for public transit. For Fiscal Year 2010, the operating budget is increased by $2.3 million for increased costs for public transit. Financial Sustainability Plan funding for Fiscal Year 2010 remains unallocated in the Non-Departmental budget. Community Services. The operating budget decreases by $0.5 million in Fiscal Year 2009 and $0.1 million in Fiscal Year 2010. These reductions reflect anticipated changes in the use of federal grants and the transfer of personnel costs to cover retiree medical and payout costs in Non-Departmental and increased pension contributions in Police and Fire. Parks and Recreation. The operating budget is decreased by $1.7 million in Fiscal Year 2009 and by $0.3 million in Fiscal Year 2010 primarily due to the transfer of personnel costs to cover retiree medical and payout costs in Non-Departmental and increased pension contributions in Police and Fire. Financial Sustainability Plan funding for Fiscal Year 2010 remains unallocated in the Non-Departmental budget. A-13 Other Operating Department Changes (continued) 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 General Support category decreases by $7.7 million for the Fiscal Year 2009 Operating Budget. The major decreases are due to completion of a project in General Services for $6.0 million and a reduction in the City Clerk’s budget of $2.0 million because there is no election during Fiscal Year 2009. For Fiscal Year 2010, the category’s operating budget decreases by $2.2 million. Debt Service. This category includes the repayment of general government debt, which is budgeted in NonDepartmental. (The repayment of Enterprise Fund debt is budgeted in their respective departments.) The increase of $28.7 million in Fiscal Year 2009 is primarily due to capacity of $25.0 million for possible refundings of street and highway user revenue bonds. There is an increase of $6.8 million for repayment of a H.E.L.P. (Highway Extension and Expansion Loan Program) loan for Mountain Road construction, but it is offset by a reduction in general obligation bond payments of $3.1 million. For Fiscal Year 2010, debt service requirements will decrease by $28.6 million primarily due to the elimination of refunding capacity and lower required payments on the H.E.L.P. loan. Internal Service and Fiduciary. This category consolidates the Fleet Services, Facilities Management, and Risk Management Internal Service Funds and the Tucson Supplemental Retirement System (TSRS) fiduciary fund. The Fiscal Year 2009 Budget reflects an increase of $110.2 million because the Fleet Services and Facilities Management Internal Service Funds were previously budgeted with expenditure credit offsets that resulted in a zero bottom-line increase. However, subsequent discussions with the state indicated that they should have been budgeted at their full amounts with an offset in revenues from internal charges to departments. The Risk Management and Pension Fund functions had been budgeted in Non-Departmental for Fiscal Year 2008. For Fiscal Year 2010, this category decreases by $1.3 million due to a reduction in the use of Clean Renewable Energy Bonds (CREBs) for solar projects. Other. All remaining departments and offices are included in this category: Mayor and Council, Development Services, Urban Planning and Design, Neighborhood Resources, Tucson Convention Center, and NonDepartmental's Outside Agencies and General Expense. This category's Fiscal Year 2009 Budget decreases by $25 million. The decrease is primarily due to the elimination of contingency carryforward in Non-Departmental. The Fiscal Year 2010 increase of $5.3 million is primarily due to the unallocated Financial Sustainability Plan funding of $10.9 million offset by the elimination of a one-time payment to the developer of the Parque de Santa Cruz. Capital Budget Changes The $87.4 million decrease in Fiscal Year 2009 is primarily due to a reduction in capacity for Transportation’s projects based on historical trends. Transportation’s capital capacity of $90.3 million is a reduction of $77.5 million from their Fiscal Year 2008 Capital Budget of $167.8 million. Their Fiscal Year 2009 Capital Budget is a more realistic assessment of what can be accomplished in a single year. Project funding is not lost, just shifted to future years for a five-year capital improvement program of more levelized funding. The remaining reductions of $10.4 million are due to the completion or rescheduling of projects in other departments. A-14 Staffing For Fiscal Year 2009, 43% of all employees are in the Public Safety group, which includes Police, Fire, and Judicial departments (City Attorney, City Court, and Public Defender). Three other large departments that provide direct services to the public—Parks and Recreation, Transportation, and Community Services—employ 21% of all employees. The self-supporting Enterprise group employs 17% of the city workforce. The remaining 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 adopted budget for Fiscal Year 2009 totals 6,028.21, a decrease of 4.5 fulltime equivalent (FTE) positions from Fiscal Year 2008. The decrease in positions is primarily due to the reduction of 20.5 positions in the City Clerk’s budget, because there is no scheduled election in Fiscal Year 2009. Those decreases were offset by increases of 11.0 FTEs in the Public Safety group, 1.0 FTE added in the Enterprise group, and 4.0 FTEs in the other operating departments. For Fiscal Year 2010, the position total is 6,048.71, an increase of 20.5 FTEs. That increase is entirely in the City Clerk's budget, because of the November 2009 election for which 20.5 non-permanent staff are hired. No additional positions for the Financial Sustainability Plan (FSP) in Fiscal Year 2010 are included; any position changes will be part of the next update to the FSP. Fiscal Year 2009 City Staffing 6,028.21 FTEs Public Safety group totals 43% (Police, Fire, and Judicial). Police 26% Other 6% General Support 13% Community Services 2% Fire 12% Parks and Recreation 12% Transportation 7% Water 10% Judicial 5% Environmental Golf Services 3% 4% The Enterprise group totals 17% (Environmental Services, Golf, and Water ). Note: A full-time equivalent (FTE) is equal to a 40-hour work week or 2,080 hours per year. A-15 Staffing Changes The changes in positions by department or department category, from Fiscal Year 2008 to Fiscal Year 2009 and from Fiscal Year 2009 to Fiscal Year 2010, are briefly noted on the following page. For more detail, see the individual department pages in Volume II and Appendix A in Volume IIA. City Staffing (full-time equivalents) FY 2008 Budget Public Safety Police Fire Judicial FY 2009 Budget Change FY 2010 Budget Change 1,525.00 741.00 309.80 1,532.50 745.00 309.30 7.50 4.00 (0.50) 1,532.50 745.00 309.30 Public Safety Sub-Total 2,575.80 2,586.80 11.00 2,586.80 -0-0-0-0- Enterprise Departments Environmental Services Golf Water Enterprise Sub-Total 264.00 154.75 578.00 996.75 263.00 154.75 580.00 997.75 (1.00) -02.00 1.00 263.00 154.75 580.00 997.75 -0-0-0-0- Other Operating Departments Transportation Community Services Parks and Recreation General Support* Internal Service/Fiduciary Other 416.50 148.75 749.50 803.16 -0342.25 403.50 148.75 749.50 785.66 15.00 341.25 (13.00) -0-0(17.50) 15.00 (1.00) 403.50 148.75 749.50 806.16 15.00 341.25 -0-0-020.50 -0-0- Other Operating Sub-Total 2,460.16 2,443.66 (16.50) 2,464.16 20.50 Total 6,032.71 6,028.21 (4.50) 6,048.71 20.50 * Includes City Clerk Elections which decreases or increases 20.5 FTEs depending on election years. Public Safety Changes Police. The increase for the department in Fiscal Year 2009 of 7.50 FTEs is due to 2.5 additional grantfunded positions and 5.0 positions added for the impound lot program. There is no change in FTEs for Fiscal Year 2010. Any additional positions in Fiscal Year 2010 from the Financial Sustainability Plan (FSP) will be determined during the next budget update. Fire. The increase of 4.0 FTEs in Fiscal Year 2009 is due to 2.0 positions added in advance from the Financial Sustainability Plan (are to come from the department’s next FSP allocation), the transfer of 1.0 position from the Finance Department, and 1.0 position to correct for an error in the Fiscal Year 2008 Adopted Budget. There is no change in FTEs for Fiscal Year 2010. Any additional positions in Fiscal Year 2010 from the Financial Sustainability Plan will be determined during the next budget update. A-16 Judicial. The net reduction of 0.5 FTEs in Fiscal Year 2009 is due to 1.0 position added in the Public Defender’s Office and 1.5 positions reduced in City Court. The Public Defender position was an advance Financial Sustainability Plan (FSP) position that will come from the department’s next FSP allocation. The decrease of 1.5 positions in City Court is due to a decision by the department to trade out some of its FSP personnel costs and positions for non-personnel FSP costs. Enterprise Operations Changes Environmental Services. The department's staffing for Fiscal Year 2009 is reduced by 1.0 FTE, which was transferred to the City Manager’s Office during Fiscal Year 2008. There is no change in positions for Fiscal Year 2010. Golf. The department has no change in positions for Fiscal Years 2009 and 2010. Water. The department's FTEs for Fiscal Year 2009 increased by 2.0 positions. These positions, which were added during Fiscal Year 2008, are for backflow device inspection and project design review. For Fiscal Year 2010, there is no change in positions. Other Operating Department Changes Transportation. The Fiscal Year 2009 reduction of 13.0 positions is due to the transfer of the Real Estate Division to the City Manager’s Office. There is no change in positions for Fiscal Year 2010. Community Services. The department has no change in positions for Fiscal Years 2009 and 2010. Parks and Recreation. There is no change in positions for Parks during either Fiscal Year 2009 or 2010. Any additional positions in Fiscal Year 2010 from the Financial Sustainability Plan will be determined in the next budget cycle. 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 Fiscal Year 2009 net reduction of 17.5 positions is due to several changes. Since Fiscal Year 2009 is not an election year, the City Clerk’s budget is reduced by 20.5 FTEs. Offsetting those reductions is 1.0 position in City Clerk that was added during Fiscal Year 2008. Two new positions were added to the Equal Opportunity Office and General Services for Americans with Disabilities Act (ADA) improvements and implementation of solar grant-funded projects, respectively. Risk Management and Pension positions totaling 15.00 were transferred to the Internal Service and Fiduciary group. The transfer of the Real Estate Division to the City Manager’s Office added 15 FTEs: 13.0 transferred from Transportation and 2.0 new positions. The 2.0 new positions in Real Estate were offset by the elimination of 2.0 FTEs for Rio Nuevo support. The increase of 20.5 FTEs in Fiscal Year 2010 is due to non-permanent positions in the City Clerk’s budget for support of the November 2009 election. Internal Service/Fiduciary. This group was established in Fiscal Year 2009 to comply with state budget requires for the accounting of internal service and fiduciary funds. Fifteen positions were transferred from Finance to this group. Other. All remaining departments and offices are included in this category: Mayor and Council, Development Services, Urban Planning and Design, Neighborhood Resources, Tucson Convention Center, and NonDepartmental’s Outside Agencies and General Expense. The decrease of 1.0 FTE in Fiscal Year 2009 is due to the transfer of a Development Services position to the City Manager’s Office. There is no change in positions for Fiscal Year 2010. A-17 WHERE THE MONEY COMES FROM There are three major revenue groups in the city budget: 1) General Purpose Funds, 2) Enterprise Funds, which are restricted, and 3) Other Restricted Funds. This section of the overview will first discuss General Purpose Fund revenues, followed by a discussion of Restricted Funds revenues. General Purpose Funds – Revenues General Purpose Funds revenues are those revenues that the Mayor and Council have full discretion to allocate. These revenues are used for basic city services, such as police and fire protection, mass transit service, and parks and recreation functions. These funds account for 38% of the total Fiscal Year 2009 Budget. Revenue for the General Purposes Funds budget comes from city-generated sources and state-shared sources. In Fiscal Year 2009, 74% of the General Purpose Funds will come from city sales tax revenue at 42% and stateshared taxes at 32%. The 24% in Miscellaneous City Revenues shown in the chart below consists of local taxes and fees, and carryforward. The city's Primary Property Tax provides only 2% of the General Purpose Funds budget. Fiscal Year 2009 General Purpose Funds - Revenues $492.1 million State-Shared Sales Tax 10% City Sales Tax 42% State-Shared Other 6% State-Shared Income Tax 16% Miscellaneous City Revenues 24% A-18 City Primary Property Tax 2% Revenue Changes – General Purpose Funds The Fiscal Year 2009 General Purpose Funds budget is a status quo budget. It decreased $1.3 million from the adopted budget for Fiscal Year 2008 due to a reduction in funds carried forward for capital projects. The major changes in revenue sources are summarized in the table and discussion on the following pages. Additional information on revenues is available in Section E, Summary Information, in this volume. General Purpose Funds Revenues ($ millions) FY 2008 Budget City Revenues: Sales Tax Primary Property Tax Other City Sub-Total State-Shared Revenues: Income Tax Sales Tax Other State-Shared Sub-Total Total FY 2009 Budget Change FY 2010 Budget Change 212.9 10.3 115.7 338.9 206.8 10.9 117.3 335.0 $ 74.6 $ 54.0 25.9 154.5 79.2 $ 4.6 50.5 (3.5) 27.4 1.5 157.1 2.6 $ $ 493.4 492.1 $ (6.1) 0.6 1.6 (3.9) $ (1.3) 214.1 11.1 117.8 343.0 7.3 0.2 0.5 8.0 79.2 52.5 27.9 159.6 $ -02.0 0.5 2.5 $ 502.6 $ 10.5 Following are brief explanations of the revenue differences between the Fiscal Year 2009 Adopted Budget and the Fiscal Year 2008 Adopted Budget and between the Fiscal Year 2009 Adopted and Fiscal Year 2010 Approved Budgets. City Revenues. City-generated revenues account for 68% of the Fiscal Year 2009 General Purpose Funds budget. The total of $335.0 million for Fiscal Year 2009 is a decrease of $3.9 million. For Fiscal Year 2010, city revenues will contribute an additional $8.0 million to the General Purpose Funds budget. $ millions General Purpose Funds City Revenues 213 207 214 116 117 118 10 Sales Tax 11 11 Primary Property Tax FY 2008 FY 2009 Other FY 2010 A-19 The city’s sales tax is highly dependent on the local economy, which is experiencing the slowdown common to the rest of Arizona and the nation. The budget includes $206.8 million from city sales tax, a decrease of $6.1 million, which is a decline of 3% compared to the Fiscal Year 2008 Adopted Budget. For Fiscal Year 2010, city sale’s tax revenue is projected to increase by $7.3 million based on an assumption that the economy will have recovered by then. [Subsequent to budget adoption, these revenues are being re-projected.] The budget for Fiscal Year 2009 also includes a small increase in the primary property tax levy to maintain it at the maximum allowable level of $10.9 million. This increase will bring in an additional $0.6 million. For Fiscal Year 2010, the projected maximum allowable property levy of $11.1 million will bring in another $0.2 million. The state legislature is considering changes to property tax limits that may impact the projected growth in this revenue source. The remaining $1.6 million of the Fiscal Year 2009 increase is primarily the result of increased revenues from the city’s use tax and fines, forfeitures, and penalties, and from carryforward from Fiscal Year 2008. These other sources are expected to increase $0.5 million in Fiscal Year 2010. 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 32% of the General Purpose Funds budget. General Purpose Funds State-Shared Revenues $ millions 75 79 79 54 51 53 26 27 28 For Fiscal Year 2009, total state-shared revenues are projected at $157.1 million, an increase of $2.6 million more than in the adopted budget for Fiscal Year 2008. For Fiscal Year 2010, it is anticipated that these revenues will increase another $2.5 million. State income tax distributions for Fiscal Year 2009, which will be based on collections made in 2007, are expected State Income Tax State Sales Tax State Other to total $79.2 million, an increase of FY 2008 FY 2009 FY 2010 6%. Since this revenue source has a two-year lag, it is not impacted by the current economic slowdown. Fiscal Year 2010 income tax distributions are projected to remain the same as for Fiscal Year 2009, because given the two-year lag those distributions will likely reflect the current economic situation. The state shared sales tax is projected to decline due to the current economic slowdown. The Fiscal Year 2009 Budget includes $50.5 million of state-shared sales tax, which is a decrease of $3.5 million from the Fiscal Year 2008 Budget. For Fiscal Year 2010, projections have state-shared sales tax increasing by $2.0 million based on a moderate economic recovery. Other state-shared revenues include auto lieu taxes and lottery proceeds used for mass transit. The auto lieu tax is projected to increase 6% or $1.5 million in Fiscal Year 2009. A further increase of $0.5 million is anticipated for Fiscal Year 2010. No change is anticipated for lottery proceeds in either Fiscal Year 2009 or 2010. [Subsequent to the city’s budget adoption, the state legislation adopted a budget that reduced state-shared revenues for Fiscal Year 2009.] A-20 Restricted Funds – Revenues Restricted funds account for 62% of the total Fiscal Year 2009 Budget. These funds are considered restricted because their use is limited to specific purposes. Restricted fund revenues are generated from the following sources: (1) grants, shared revenues, and contributions from other state and local governments (2) self-supporting enterprise funds (3) city revenues that are collected for a specific purpose, such as certificates of participation and other debt financing, and reserves set aside for a particular requirement (4) internal service and fiduciary funds Restricted Funds come from federal, state, and local sources. For Fiscal Year 2009, federal funding is 17% of the Restricted Funds budget and provides revenue for public housing, roadway, and transit programs and projects. The restricted funding from the state is from grants and state-shared Highway User Revenue Funds (HURF), which together provide approximately 14% of the Restricted Funds budget. The city’s enterprise funds account for 28% of the total. The remaining 41% is from other local sources, which include internal service and fiduciary funds, bonds, certificates of participation, parking revenues, and debt service funds from the secondary property tax. Fiscal Year 2009 Restricted Funds - Revenues $ 801.9 million Other Grants 8% Highway User Revenues 6% Internal Service & Fiduciary Funds 14% Secondary Property Tax 3% Capital Projects Fund 6% Federal Funding 17% Other 18% Enterprise Funds 28% A-21 Revenue Changes – Restricted Funds Budget In Fiscal Year 2009, revenues for the Restricted Funds Budget total $801.9 million, a $32.8 million increase from Fiscal Year 2008. This increase is primarily due to the inclusion of refunding capacity of $25.0 million and new certificates of participation for capital projects. Fiscal Year 2010 funding will decrease by $34.2 million due to no capacity for refundings or carryforward. Restricted Fund Revenues ($ millions) FY 2008 Budget Grants and Shared Revenues: Federal Funding Highway User Revenues Other Grants Grants and Shared Revenues Sub-Total $ Internal Service & Fiduciary Funds FY 2009 Budget Change FY 2010 Budget Change 153.9 $ 54.7 78.3 136.2 $ (17.7) $ 51.6 (3.1) 67.8 (10.5) 125.2 $ 53.2 93.1 (11.0) 1.6 25.3 286.9 255.6 (31.3) 271.5 15.9 55.0 110.2 55.2 109.0 (1.2) Restricted City Revenues: Secondary Property Tax Capital Projects Fund Other Restricted City Sub-Total Enterprise Funds Environmental Services Golf Water 28.0 60.9 128.7 217.6 24.9 46.7 142.3 213.9 (3.1) (14.2) 13.6 (3.7) 24.9 40.7 89.5 155.1 -0(6.0) (52.8) (58.8) 52.0 11.1 146.5 59.8 11.1 151.3 7.8 -04.8 64.6 11.1 156.4 4.8 -05.1 Enterprise Funds Sub-Total 209.6 222.2 12.6 232.1 9.9 769.1 $ 801.9 $ 32.8 $ Total Restricted $ 767.7 $ (34.2) Following are brief explanations of the revenue differences between the Fiscal Year 2009 Adopted Budget and the Fiscal Year 2008 Adopted Budget and between the Fiscal Year 2009 Adopted and 2010 Approved Budgets. Additional information on restricted revenues is provided in Section E of this volume. Grants and Shared Revenues. Revenues from grants and shared revenues total $255.6 million in Fiscal Year 2009, which is a decrease of $31.3 million from Fiscal Year 2008. In Fiscal Year 2010, these revenues are anticipated to increase by $15.9 million. Restricted Funds Grants and Shared Revenues $ millions 154 136 125 55 Federal Funding FY 2008 52 53 Highway User Revenues FY 2009 78 68 93 For Fiscal Year 2009, federal grants decrease $17.7 million. Reductions of $11.7 million in the Police and Fire budget reflect a more realistic estimate of grant awards for homeland security. The remaining reduction of $6 million is in grant capacity carried forward for Transportation capital projects. For Fiscal Year 2010, federal grants are anticipated to decrease another $11.0 million primarily for Transportation capital projects. Other Grants FY 2010 A-22 Revenues from Highway User Revenue Funds are expected to decrease by $3.1 million in Fiscal Year 2009 from the Fiscal Year 2008 Adopted Budget and increase $1.6 million in Fiscal Year 2010. The decrease in Fiscal Year 2009 is due to an overly optimistic revenue projection in Fiscal Year 2008. [Subsequent to the city’s budget adoption, the state legislation adopted a budget that included reductions in state-shared revenues.] The Other Grants group, which includes state grants and local contributions such as Pima County bonds, Regional Transportation Authority funds, and Highway User Revenue Funds (HURF) distributed by the Pima Association of Governments, has a decrease of $10.5 million in Fiscal Year 2009. That decrease is primarily due to a rescheduling of Transportation projects. For Fiscal Year 2010, use of this revenue source will increase $25.3 million due to the timing and rescheduling of Transportation projects. Internal Service and Fiduciary Funds. This category includes the Fleet Services, Facilities Management, and Risk Management Internal Service Funds (ISFs) and the Tucson Supplemental Retirement System (TSRS) pension fund. State budget law requires that the city reflects these funds as revenues sources even though they simply reflect transactions internal to the city. In Fiscal Year 2008, the internally-generated revenues from the Fleet Services and Facilities Management ISFs were reflected as expenditure credits rather than revenues. The Fiscal Year 2009 increase of $55.2 million is due to their inclusion in the budget as expenditures with offsetting revenues ($26.0 million for the Fleet Services ISF and $17.9 million for the Facilities Management ISF) and the inclusion of Clean Renewable Energy Bonds (CREBs) to fund solar projects. For Fiscal Year 2010, there is a $1.2 million decrease in the use of CREBs. $ millions Restricted City Revenues. This group includes the Secondary Property Tax, Capital Projects Fund (bonds), and other restricted sources such as ParkWise, reserves, and certificates of participation totaling $213.9 million in Fiscal Year 2009 and $155.1 million in Fiscal Year 2010. Restricted Funds These totals reflect a decrease of $3.7 million in City Revenues Fiscal Year 2009 and another $58.80 million in Fiscal Year 2010. 129 61 28 25 25 S econdary Property T ax The Fiscal Year 2009 secondary property tax levy is decreasing by $3.1 million, because the debt repayment on general obligation bonds used for Environmental Services projects will be paid from that department’s revenues. 90 47 41 Capital Projects F und FY 200 8 142 FY 200 9 Other Because the voter-approved bond programs are nearing completion, Capital Project Funds decrease by $14.2 million in Fiscal Year 2009. These funds will FY 201 0 decrease a further $6.0 million in Fiscal Year 2010. The Other group of restricted city revenues increases by $13.6 million in Fiscal Year 2009 primarily due to the inclusion of $25.0 million for refundings of certificates of participation and street and highway user revenue bonds and $7.5 million in additional certifications of participation, which is offset by elimination of Transportation capital projects that were to be funded by certifications of participation (construction of a new Greyhound facility and the Depot Plaza Garage, which will now be a Rio Nuevo project). The decrease of $52.0 million in Fiscal Year 2010 reflects the fact that no refunding capacity is included and the completion of capital projects. A-23 $ mill ions Enterprise Funds Revenues. The city has three enterprise departments that are intended to be self-supporting: Environmental Services, Golf, and Tucson Water. This revenue group includes both their operating revenues and certificates of participation or other financing, but excludes bond funds used by them, which are included in the Capital Projects Funds. The use of enterprise fund revenues will increase $12.6 million in Fiscal Year Restricted Funds 2009. For Fiscal Year 2010, use of these revenues Enterprise Funds Revenues increases by $9.9 million. 147 151 156 52 60 The Environmental Services Fund increases by $7.8 million in Fiscal Year 2009. Fee revisions will be proposed for commercial collections to help fund a pay-as-you-go vehicle replacement program. For Fiscal Year 2010, revenues are to increase by $4.8 million. 65 Environmental Services FY 2008 11 11 11 Golf FY 2009 Water FY 2010 There is no change in anticipated Golf revenues for either Fiscal Year 2009 or 2010. For Fiscal Year 2009, Tucson Water's revenues increase $4.8 million is due to anticipated revenue from potable and reclaimed water sales, the water conservation fee, and the use of its Water Infrastructure Replacement Fund. The increased revenue from water sales is dependent upon approval of proposed rate increases. For Fiscal Year 2010, water revenues are anticipated to increase by $5.1 million CITIZEN IMPACTS City Property Taxes. The city’s property tax rates will decrease in Fiscal Year 2009. The city imposes two taxes on property within the city limits. The primary property tax, which is applied to the limited value assessed by the Pima County Assessor, is used for general purposes, and the secondary property tax, which is applied to the full cash value assessed by the Pima County Assessor, is used to pay off general obligation bond debt. The combined property tax rate for the Fiscal Year 2009 budget is $0.9601 per $100 of assessed valuation, which is a decrease of $0.1720. For Fiscal Year 2010, the city's combined property tax rate is anticipated to drop another $0.0302 for a combined rate of $0.9299 per $100 of assessed valuation. City of Tucson Property Tax Comparisons Actual Estimated FY 2009 Changes FY 2008 Rate Changes $ 0.3231 $ (0.0065) Primary $ 0.3296 0.6370 (0.1655) Secondary 0.8025 Total $ 1.1321 $0.9601 $ (0.1720) 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% included in the budgets for Fiscal Years 2009 and 2010. Any change to the city sales tax rate requires a majority vote of the electorate. A-24 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 generally affect the majority of Tucson residents are the residential refuse fee and water usage rates. There is no proposed change to the residential refuse fee. While water revenues are proposed to increase in Fiscal Year 2009, it is not known at this time if residential water rates would change. EXPENDITURE LIMITATION Tucson, like all Arizona cities, is subject to a spending limit imposed by the state constitution, unless voters approve an alternative expenditure limitation that is also known as Home Rule. In November 2005, city voters approved an alternative expenditure limitation for Fiscal Years 2007 through 2011. For each of those four fiscal years, the city's expenditure limitation will equal the total amount of budgeted expenditures in the annual budget adopted by the Mayor and Council. BUDGET DEVELOPMENT PROCESS Biennial Budget The city has chosen to prepare biennial budgets that cover a two-year period. In the first year, a complete budget document is prepared; in the second year, only an update document is prepared. In addition to planning for a longer financial horizon, the biennial process gives staff time in the second year to investigate and evaluate service improvements. This budget document covers the biennial period of Fiscal Years 2009 and 2010. The Mayor and Council will adopt Fiscal Year 2009; the Fiscal Year 2010 budget will be considered approved. For Fiscal Year 2010, that approved budget, with necessary adjustments, will be 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 through a number of steps: (1) identification of priorities, (2) a five-year forecast of revenues and expenditures, (3) department requests and the City Manager’s recommendation, and (4) Mayor and Council adoption. 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–Intelligent Growth Economic and Workforce Development Rio Nuevo/Downtown, Arts, Culture, and History Taken collectively, these priorities set the work plan for the city. A Financial Sustainability Plan presented to the Mayor and Council on April 18, 2006 provides a framework and clear benchmarks for addressing future service needs. See Section B of this volume for more information on that plan. A-25 Step 2: Five-Year Forecast of Revenues and Expenditures. Each summer, a five-year financial forecast–the proforma–is prepared for all sources of funds. This forecast takes into consideration economic factors and strategic plans implemented by the city. All departments participate by projecting their expenditures, which are reviewed and modified by the Budget and Research Department. The Finance Department projects revenues. The expenditure and revenue forecasts are collated by the Budget and Research Department and presented to the City Manager. The proforma then serves as a reference point for development of a balanced budget for the coming year. Step 3: Department Requests and the City Manager’s Recommendation. In the fall, department directors are asked to submit budget requests. Following a review by the Budget and Research Department, each department’s requested budget is reviewed by the City Manager. The City Manager, acting upon citywide priorities and Financial Sustainability Plan, will revise department requested budgets and prepare a recommended budget for Mayor and Council consideration. For the Fiscal Year 2009 and 2010 Biennial Budget, departments were given financial and staffing allocations equal to their Fiscal Year 2008 Adopted Budget with some minor adjustments. To stay within those allocations, departments had to review their operations and make revisions to cover any inflationary increases. Step 4: Mayor and Council Adoption. This step in the process is governed by both state and city legal requirements and provides an opportunity for citizen comment. Public Hearings: Citizens are provided three public hearings to express to the Mayor and Council their opinions and concerns about the recommended budget and property tax levy. The first public hearing is held prior to the Mayor and Council’s study session reviews of the recommended budget. The second public hearing is held subsequent to those reviews and the Mayor and Council’s tentative adoption of the budget. The third public hearing is a truth in taxation hearing regarding the primary property tax levy. Mayor and Council Review and Adoption: Within the framework of the identified community priorities and the policy initiatives, the Mayor and Council review the City Manager’s recommended budget during several study sessions. Department directors are available to respond to questions. Following these reviews and public hearings to obtain taxpayer comments, the Mayor and Council adopt the budget and property tax levy. Budget Calendar For a complete budget calendar for the Fiscal Years 2009 and 2010 Biennial Budget, see page iii. A-26 Adopted Biennial Budget Summary Fiscal Years 2009 and 2010 Section B Strategic Priorities 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. In Fiscal Year 2007, a new set of strategic priorities and a long-term financial sustainability plan were 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 six 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 the 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 original Strategic Plan for the Fiscal Years 2007 and 2008 Biennial Budget. 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, strategies, and the training of employees to ensure the effective use of resources. B-1 FINANCIAL SUSTAINABILITY PLAN Although the City of Tucson had a number of long-term plans on specific issues such as the capital improvement program and the regional transportation improvement plan, there was not one process or plan that consolidated the city’s strategic priorities, long-term plans, and financial projections into a single long-term service and financial plan. The financial sustainability process filled 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 (FSP) provides a basis for future biennial budgets and guides workforce planning and other efforts to improve the effectiveness and efficiency of city services. Background. During December 2005 and January 2006, presentations were made to the Mayor and Council on three primary services that are the focus of the plan: road maintenance, public safety, and parks and recreational programs and services. The discussions also included such issues as crime prevention and youth funding. Staff developed revenue projections and a plan that allocated revenue growth to the primary services presented to the Mayor and Council. The Financial Sustainability Plan was approved by the Mayor and Council on April 18, 2006. Use of Revenue Growth. One of the underlying premises of the Financial Sustainability Plan is that revenue growth will be allocated to ensure continuous service improvements and to address the human capital requirements of the city organization. Fiscal Year 2005, a year with positive economic conditions and a significant investment in services, was used the guide for determining the allocation amounts for the FSP. 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. 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. The FSP allocates 60% or just over $14 million of each year's revenue growth to services. The remaining 40%, approximately $10 million, would be used to support human capital costs, such as salary and benefit adjustments. Because new revenue growth would be reserved for service enhancements and human capital adjustments, inflationary pressure on existing costs is to be offset by anticipated savings of $2 to $3 million annually from efforts to improve the effectiveness and efficiency of city services. Service Improvement Goals and Allocations. The approved goals and allocations for the priority services funded by the 60% allocation of future revenue growth 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 over ten years from future General Fund revenues be allocated to this goal; an additional $25 million is anticipated from Pima Association of Governments. 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. B-2 Adopted Biennial Budget Summary Fiscal Years 2009 and 2010 Section C Legal Authorization LEGAL REQUIREMENTS property added to a community due to annexations. The 2% increase applies to all taxable property. The city’s budget is subject to requirements set by the State of Arizona's Constitution and statutes, and the Tucson City Charter. Secondary Property Tax Levy: The secondary property tax allows the city to levy a property tax for the purpose of retiring the principal and paying interest on general obligation bonds. This levy is referred to as the "unlimited" levy because this property tax may be levied in an amount to make necessary interest payments on, and for the retirement of, general obligation bonds issued by the city. LEGAL REQUIREMENTS IMPOSED BY THE STATE Expenditure Limitation – Home Rule Tucson, like all cities in the State of Arizona, is subject to numerous budgetary and related legal requirements. Article IX, Section 20(1) of the Arizona Constitution sets out limits on the city's legal budget capacity. The constitution also allows cities, with voter approval, to adopt an alternative expenditure limitation, which is commonly referred to as Home Rule. Not only is the dollar amount of the secondary property tax levy "unlimited," the actual full cash value of property that is used in determining the tax rate can be adjusted by changes in market value without a cap (Article IX, Section 18 and 19, Arizona Constitution). Unlike the primary tax system which uses a controlled assessment system to determine the tax rate, state laws allow the city to levy the amount of secondary property tax necessary to pay off its general obligation bonds. In November 2005, the voters approved the Home Rule option for Fiscal Years 2007 through 2010. For each of those four fiscal years, the city's expenditure limitation will equal the total amount of budgeted expenditures in the annual budget adopted by the Mayor and Council after at least one public hearing. Because the city is also required to have a balanced budget, expenditures will never exceed available revenues. Budget Adoption State law (ARS §42-17101) requires that on or before the third Monday in July of each fiscal year, the Mayor and Council must adopt a tentative budget. Once this tentative budget has been adopted, the expenditures may not be increased upon final adoption. In effect, with the adoption of the tentative budget, the council has set its maximum "limits" for expenditure, but these limits may be reduced upon final adoption. Property Tax Levy Limitation The Arizona Constitution and Arizona Revised Statutes (ARS) specify a property tax levy limitation system. This system consists of two levies, a limited levy known as the primary property tax levy and an unlimited levy referred to as the secondary property tax levy. The primary levy may be imposed for all purposes, while the secondary levy may only be used to retire the principal and interest or redemption charges on general obligation bonded indebtedness. Once the tentative budget has been adopted, it must be published once a week for at least two consecutive weeks. The tentative budget must be fully itemized in accordance with forms supplied by the auditor general and included in the council meeting minutes. Primary Property Tax Levy: There is a strict limitation on how much the city can levy as a primary property tax. This primary property tax levy is limited to an increase of 2% over the previous year's maximum allowable primary levy, plus an increased dollar amount due to a net gain in property not taxed the previous year (ARS §42-17051). Even if the city does not adopt the maximum allowable levy from year to year, the 2% allowable increase will be based on the prior year's "maximum allowable levy.” The "net new property" factor is included in the calculation to take into account all new construction and any additional State law (ARS §42-17104, §42-17105) specifies that seven or more days prior to the date the property tax levy is adopted, the city or town council must adopt the final budget for the fiscal year by roll call vote at a special meeting called for that purpose. State law requires adoption of the tax levy on or before the third Monday in August. The adopted budget then becomes the amount proposed for expenditure in the upcoming fiscal year and shall not exceed the total amount proposed for expenditure in the published estimates (ARS §42-17106). Once adopted, no expenditures shall be made for a purpose not included C-1 in the budget and no expenditures shall be made in excess of the amounts specified for each purpose in the budget, except as provided by law. This restriction applies whether or not the city has at any time received, or has on hand, funds or revenue in excess of those required to meet expenditures incurred under the budget. Federal and bond funds are not subject to this requirement. Director of Budget and Research approves these budget change requests; under special circumstances the City Manager or his designee also approves the change requests. If there are major policy or program implications associated with a change, the City Manager may submit it to the Mayor and Council for approval. Once approved, the revised appropriation is entered into the city’s financial management system. Adoption Of Tax Levy ARS §42-17106 permits the Mayor and Council, on the affirmation of a majority of the members at a duly noticed public meeting, to authorize the transfer of funds between program categories if the funds are available so long as the transfer does not violate the state set spending limitations. State law (ARS §42-17107) governing truth in taxation notice and hearing requires that on or before July 1st, the county assessor shall transmit to the city an estimate of the total net assessed valuation of the city, including an estimate of new property that has been added to the tax roll since the previous levy of property taxes in the city. If the proposed primary property tax levy, excluding amounts that are attributable to new construction, is greater than the amount levied by the city in the preceding year, the governing body shall publish a notice of tax increase. The truth in taxation hearing must be held prior to the adoption of the property tax levy. LEGAL REQUIREMENTS IMPOSED BY THE CITY CHARTER Legal requirements of the Tucson City Charter related to limiting property taxes and scheduling of budget adoption are more restrictive than state law. Property Tax Levy Limitation The tax levy for the city must be adopted on or before the third Monday in August (ARS §42-17151). The tax levy must be specified in an ordinance adopted by the Mayor and Council. The levy is for both the primary and secondary tax. Chapter IV, Section 2 of the Tucson Charter sets an upper property tax limit of $1.75 per $100 assessed value. Therefore, state laws notwithstanding, the city cannot levy a combined primary and secondary property tax that exceeds $1.75. Budget Revisions Fiscal Year ARS §42-17106 requires that no expenditures be made for a purpose not included in the adopted budget in any fiscal year in excess of the amount specified for each purpose in the budget. The City of Tucson in its annual Budget Adoption Resolution defines “purpose” as a series of departments and offices organized into the following seven program categories: The fiscal year of the city begins the first day of July of each year. (Tucson City Charter, Chapter XIII, Section 1) Submission of the Recommended Budget The City Charter requires that the City Manager prepare a written estimate of the funds required to conduct the business and affairs of the city for the next fiscal year. This estimate, which is the recommended budget, is due on or before the first Monday in May of each year, or on such date in each year as shall be fixed by the Mayor and Council. (Tucson City Charter, Chapter XIII, Section 3) 1) Elected and Official 2) Neighborhood Services 3) Environment and Development 4) Strategic Initiatives 5) Support Services 6) Non-Departmental 7) Internal Service and Fiduciary Funds 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 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, C-2 After the hearing has been concluded, the Mayor and Council adopt the budget as finally determined upon. All taxes are to be levied or voted upon in specific sums and cannot exceed the sum specified in the published estimate. (Tucson City Charter, Chapter XVIII, Section 6, and Ordinance Number 1142, effective 6-23-48) stating the amount in detail required to meet all expenditures necessary for city purposes, including interest and sinking funds, and outstanding indebtedness. Also required is an estimate of the amount of income expected from all sources and the probable amount required to be raised by taxation to cover expenditures, interest, and sinking funds. (Tucson City Charter, Chapter XVIII, Section 4) City Ordinance Setting the Tax Rate Budget Publication and Hearings On the day set for making tax levies, and not later than the third Monday in August, the Mayor and Council must meet and adopt an ordinance that levies upon assessed valuation of property within the city a rate of taxation sufficient to raise the amounts estimated to be required in the annual budget. (Tucson City Charter, Chapter XVIII, Section 7, and Ordinance Number 1142, effective 6-23-48) The budget has to be prepared in detail sufficient to show the aggregate sum and the specific items allowed for each and every purpose. The budget and a notice that the Mayor and Council will meet for the purpose of making tax levies must be published in the official newspaper of the city once a week for at least two consecutive weeks following the tentative adoption of such budget. (Tucson City Charter, Chapter XVIII, Section 5) 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 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 non-bond 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 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. C-3 FINANCIAL POLICIES AND PRACTICES Cost of Development In addition to legal requirements set by state law and the City Charter, the budget is developed and adopted under the guidelines of a series of policies and practices that were initially approved by the Mayor and Council on October 25, 2004. 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 such 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 General Fund unreserved fund balance, previously referred to as the strategic reserve, shall be increased to 10% of expenditures. [Policy approved in 2004 at 7.5%, and subsequently increased to 10%.] Investment Policy Revenue Diversification 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. The city cannot meet the growing demand for services without diversifying its revenue base. Although the state places certain restrictions on raising revenues, restrictions due to the City Charter can be lifted if approved by the voters. The city must continue in its efforts to expand revenues such as fees for services, and to remove limitations set by the City Charter where feasible. Fees for Service Pricing Policy In 1995 the city developed a pricing policy decision tree to categorize services that should be fully tax supported on one extreme to fully fee supported on the other. If a service benefits a large segment of the community and is considered a public service, then it should be funded with general tax dollars. If the service benefits individuals and is more of a private service, a market-based fee is appropriate. Services that fall in between may be funded by a combination of taxes and fees. C-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 2008, 2009, AND 2010 PROJECTED FY 2008 Adopted Levy Property Tax Primary $ Secondary Total $ FY 2008 Revised Levy FY 2009 Levy 10,327,380 $ 10,327,380 $ 10,931,690 28,022,940 27,962,810 24,899,560 38,350,320 $ 38,290,190 $ 35,831,250 Total 1 2 $ $ Actual FY 2008 Rate Property Tax Primary Secondary FY 2009 Levy Increase/ (Decrease) FY 2010 Levy 604,310 11,150,320 (3,063,250) 24,919,400 (2,458,940) FY 2010 Levy Increase/ (Decrease) $ 36,069,720 $ $ 19,840 $ FY 2009 Rate Increase/ (Decrease) Estimated FY 2009 2 Rate 218,630 FY 2009 Maximum Levy Amount 238,470 10,931,690 FY 2010 Maximum Levy Amount 1 $ 24,899,560 $ 35,831,250 11,150,320 1 24,919,400 $ 36,069,720 FY 2010 Rate Increase/ (Decrease) Estimated FY 2010 Rate 2 $ 0.3296 0.8025 $ 0.3231 0.6370 $ (0.0065) (0.1655) $ 0.3169 0.6130 $ (0.0062) (0.0240) $ 1.1321 $ 0.9601 $ (0.1720) $ 0.9299 $ (0.0302) The primary property tax levy is limited to an increase of 2% over the previous year's maximum allowable primary levy plus an increased dollar amount due to a net gain in property not taxed in the previous year, such as new construction and annexed property. The primary property tax levy is shown at the estimated maxiumum amount. The actual maximum amount may be less. Both rates may differ depending on the final actual assessed valuation for the respective purposes. C-6 CITY OF TUCSON PROPERTY TAX SUMMARY Taxing Jurisdiction FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Property Tax Rates (Per $100 of assessed value) Pima County1 $ 5.19 $ 5.54 $ 5.52 $ 5.48 $ 5.39 $ 5.36 $ 5.35 $ 5.22 $ 4.55 $ 4.29 Flood Control District 0.32 0.30 0.30 0.35 0.35 0.35 0.35 0.37 0.37 0.34 Library District 0.22 0.20 0.20 0.20 0.21 0.21 0.21 0.26 0.37 0.40 0.05 0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.04 6.26 6.03 6.05 5.86 5.74 5.69 5.51 5.50 5.25 4.95 Pima Community College 1.19 1.37 1.56 1.55 1.53 1.49 1.34 1.31 1.25 1.18 Central Arizona Project (CAP) Conservation District 0.14 0.14 0.13 0.13 0.13 0.12 0.12 0.12 0.12 0.10 Fire District Tucson Unified School District 2 Sub-Total without the City of Tucson City of Tucson Total3 Percent increase/(decrease) from prior year $ 13.37 $ 13.63 $ 13.81 $ 13.62 $ 13.39 $ 13.26 $ 12.92 $ 12.82 $ 11.95 $ 11.30 0.96 1.02 1.13 1.12 1.12 1.16 1.18 1.24 1.23 1.13 $ 14.33 $ 14.65 $ 14.94 $ 14.74 $ 14.51 $ 14.42 $ 14.10 $ 14.06 $ 13.18 $ 12.43 (1.1%) 2.2% 2.0% (1.3%) (1.6%) (0.6%) (2.2%) (0.3%) (6.2%) (5.7%) Assessed Valuation, City of Tucson 1 2 3 Primary (billions) $ 1.830 $ 1.887 $ 1.999 $ 2.088 $ 2.203 $ 2.344 $ 2.477 $ 2.641 $ 2.839 $ 3.133 Secondary (billions) $ 1.904 $ 1.945 $ 2.049 $ 2.138 $ 2.269 $ 2.427 $ 2.558 $ 2.723 $ 3.016 $ 3.484 Includes the Education Assistance rate, which was suspended in 2006 for three years. Tucson Unified School District tax levy reflects State Aid to Education reduction ($2.10 in Fiscal Year 2008). Does not include any special assessment districts. C-7 City of Tucson Residential Property Owner Tax Valuation Fiscal Year 2008 Property Taxes Owner-Occupied Home with Assessed Valuation of $100,000 City of Tucson $ 113 Pima County1 $ 507 CAP Conservation District $ 10 Pima Community College $ 118 Tucson Unified School District2 $ 495 Tax Rate Per $1,000 1 Pima County 2 Tucson Unified School District $ Pima Community College Central Arizona Project (CAP) Conservation District 4.67 4.95 1.18 Total Tax Amount3 $ 0.10 Percent of Total 467.00 495.00 118.00 38.8% 41.2% 9.8% 10.00 0.8% Sub-Total City of Tucson $ 10.90 1.13 $ 1,090.00 113.00 90.6% 9.4% Total $ 12.03 $ 1,203.00 100.0% 1 Includes Flood Control, 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 C-9 C-10 C-11 SCHEDULE A TO RESOLUTION NO. 20960 City of Tucson Summary Schedule of Estimated Revenues and Expenditures/Expenses Fiscal Year 2009 FUND 1. General Fund ESTIMATED REVENUES FUND ACTUAL BALANCE/ DIRECT OTHER THAN OTHER FINANCING EXPENDITURES/ PROPERTY TAX PROPERTY NET 2009 EXPENSES** TAXES ASSETS*** REVENUES SOURCES 2008 2009 2009 July 1, 2008** Primary: 10,931,690 $ 498,921,720 $ 511,588,670 $ 453,587,891 $ 33,221,940 $ $ Secondary: 380,572,360 322,537,088 283,034,630 66,452,330 ADOPTED BUDGETED EXPENDITURES/ EXPENSES* 2008 $ 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 2009 IN $ 3,271,590 $ 49,049,370 43,125,080 $ 8,014,760 TOTAL FINANCIAL RESOURCES AVAILABLE 2009 BUDGETED EXPENDITURES/ EXPENSES 2009 503,221,860 $ 469,999,920 390,521,570 390,521,570 44,860,140 41,996,890 24,899,560 21,517,900 8,014,760 54,432,220 54,432,220 44,860,140 41,996,890 24,899,560 21,517,900 8,014,760 54,432,220 54,432,220 60,948,300 50,626,141 46,679,300 46,679,300 209,579,020 207,613,890 204,254,660 6,000,000 11,929,370 222,184,030 222,184,030 209,579,020 207,613,890 204,254,660 6,000,000 11,929,370 222,184,030 222,184,030 55,000,000 103,629,303 110,176,450 110,176,450 110,176,450 46,679,300 7. Permanent Funds 8. Enterprise Funds Available 9. Less: Designation for Future Debt Retirement 10. Total Enterprise Funds 11. Internal Service Funds 12. TOTAL ALL FUNDS $ 1,262,548,490 $ 1,179,991,203 $ 33,221,940 $ 35,831,250 $ 1,117,905,360 $ 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 119,131,630 $ $ 72,265,090 $ 51,139,840 $ 1,327,215,430 $ 2008 2009 $ 1,262,548,490 $ 1,293,993,490 1,262,548,490 1,293,993,490 $ 1,262,548,490 $ 1,293,993,490 $ 1,262,548,490 $ 1,293,993,490 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 Fiscal Year 2008 from Schedule E. ** Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. *** Amounts in this column represent Fund Balance/Net Asset amounts except for amounts invested in capital assets, net of related debt, and reserved/restricted amounts established as offsets to assets presented for informational purposes (i.e., prepaids, inventory, etc.). C-12 1,293,993,490 SCHEDULE B TO RESOLUTION NO. 20960 City of Tucson Summary of Tax Levy and Tax Rate Information Fiscal Year 2009 2008 1. Maximum allowable primary property tax levy. A.R.S. §42-17051(A). $ 2. Amount received from primary property taxation in the 2008 fiscal year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18). $ 2009 10,327,388 $ 10,931,699 10,327,380 $ 10,931,690 3. Property tax levy amounts A. Primary property taxes $ B. Secondary property taxes 27,962,810 C. Total property tax levy amounts $ 38,290,190 $ 10,327,380 $ 10,327,380 24,899,560 $ 35,831,250 4. Property taxes collected* A. Primary property taxes (1) 2008 year's levy (2) Prior years’ levies (3) Total primary property taxes B. Secondary property taxes (1) 2008 year's levy (2) Prior years’ levies (3) Total secondary property taxes $ 27,962,810 $ 27,962,810 C. Total property taxes collected $ 38,290,190 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 0.3296 0.8025 1.1321 0.3231 0.6370 0.9601 B. Special assessment district tax rates Secondary property tax rates - As of the date the proposed budget was prepared, the city/town was operating no special assessment districts for which secondary property taxes are levied. For information pertaining to these special assessment districts and their tax rates, please contact the city/town. * Includes actual property taxes collected as of the date the proposed budget was prepared, plus estimated property tax collections for the remainder of the fiscal year. C-13 SCHEDULE C TO RESOLUTION NO. 20960 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2009 ESTIMATED REVENUES 2008 SOURCE OF REVENUES ACTUAL REVENUES* 2008 ESTIMATED REVENUES 2009 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 $ 212,870,000 7,210,000 10,731,000 2,390,000 2,140,000 810,000 6,740,000 $ 202,389,000 7,084,000 11,347,000 2,151,000 846,000 691,000 8,114,000 $ 206,840,000 7,080,000 11,500,000 2,240,000 690,000 8,520,000 260,000 310,000 351,000 580,000 389,000 2,167,000 314,000 254,000 8,000 190,000 3,250,000 330,000 259,000 5,000 233,000 3,480,000 1,090,000 5,379,000 5,380,000 630,000 680,000 1,224,000 1,224,000 14,870,000 14,666,000 15,250,000 Intergovernmental Auto Lieu Taxes State Sales Tax State Revenue Sharing Grants-in-Aid Other 23,260,000 53,970,000 74,600,000 118,820 998,510 24,328,000 49,571,000 74,558,000 145,859 1,230,000 24,810,000 50,460,000 79,240,000 122,650 1,253,000 Charges for services General Government Public Safety Development Services Charges Parks and Recreation 8,615,610 8,389,000 11,380,000 3,646,000 553,000 8,001,250 10,155,000 3,820,000 1,044,080 8,380,250 10,155,000 3,900,000 Fines and forfeits Civil Traffic Diversion Program Civil Traffic Violations Criminal Traffic Violations Probation Fees Parking Violations Forfeitures/Assessments Other 1,760,000 670,000 5,970,000 280,000 610,000 2,184,260 2,181,590 2,215,000 760,000 5,662,000 320,000 590,000 2,336,370 2,083,590 2,260,000 780,000 5,758,000 330,000 610,000 2,302,430 2,266,290 900,000 690,000 690,000 Interest on investments Interest Earnings * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. C-14 SCHEDULE C TO RESOLUTION NO. 20960 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2009 ESTIMATED REVENUES 2008 SOURCE OF REVENUES ACTUAL REVENUES* 2008 ESTIMATED REVENUES 2009 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 $ 2,247,100 1,120,000 507,000 313,000 2,000,000 3,003,260 10,449,250 $ 484,704,400 $ 2,316,000 873,130 10,506,956 419,200 $ 2,310,000 1,101,500 12,857,010 488,000 2,000,000 3,003,260 19,999,250 $ 498,921,720 3,003,260 5,921,539 466,883,154 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. C-15 SCHEDULE C TO RESOLUTION NO. 20960 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2009 ESTIMATED REVENUES 2008 SOURCE OF REVENUES ACTUAL REVENUES* 2008 ESTIMATED REVENUES 2009 SPECIAL REVENUE FUNDS Highway User Revenue Fund State Grants-in-Aid Interest Earnings Non-Revenue Receipts $ 45,934,000 550,000 1,586,490 $ 48,070,490 $ 44,513,516 $ 44,333,000 $ 2,592,000 $ 2,592,000 $ 2,592,000 Total Local Transportation Assistance Fund $ 2,592,000 $ 2,592,000 $ 2,592,000 10,123,000 3,567,000 $ 10,255,600 4,114,400 5,343,970 12,383,418 570,000 32,667,388 $ 11,572,330 4,200,000 6,620,430 34,431,070 570,000 57,393,830 5,043,346 31,647,646 13,784,405 50,475,397 $ Total Highway User Revenue Fund $ Local Transportation Assistance Fund State Grants-in-Aid Mass Transit Fund Charges for Current Services $ Local Operating Assistance Regional Transportation Authority Support Federal Grants Non-Revenue Receipts Total Mass Transit $ 34,726,870 570,000 48,986,870 41,364,570 $ 3,148,946 $ 42,605,500 1,727,500 $ Intergovernmental Funds State Grants-in-Aid $ County/Local Regional Transportation Authority Total Intergovernmental Funds $ 7,457,780 48,825,100 19,444,000 75,726,880 $ Housing Assistance Funds Public Housing Local Revenue Public Housing Federal Revenue $ 2,280,000 58,405,650 $ 2,280,000 57,859,754 $ 2,280,000 59,274,930 Total Housing Assistance Funds $ 60,685,650 $ 60,139,754 $ 61,554,930 10,894,800 $ 7,972,173 $ 10,251,180 Other Federal Funds Community Development Block Grant Entitlement Police Grants Transportation Grants Other Federal Grants $ $ 15,141,670 27,196,910 7,511,960 Total Other Federal Funds $ $ 6,357,909 13,086,195 6,756,975 6,968,400 16,202,700 35,442,600 58,613,700 5,128,060 15,044,300 12,060,300 60,745,340 $ 34,173,252 $ $ $ 4,211,000 3,113,500 5,253,500 1,598,000 1,887,330 16,063,330 $ 283,034,630 Other Special Revenue Funds Public Safety Academy $ Tucson Convention Center ParkWise Impact Fees Contributions Housing Trust Fund Total Other Special Revenue Funds $ 887,530 4,312,830 4,558,100 15,634,700 951,000 $ 26,344,160 $ 867,390 3,947,200 3,041,000 2,865,701 953,000 200,000 11,874,291 Total Special Revenue Funds $ 323,151,390 $ 236,435,598 42,483,840 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. C-16 SCHEDULE C TO RESOLUTION NO. 20960 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2009 ESTIMATED REVENUES 2008 SOURCE OF REVENUES ACTUAL REVENUES* 2008 ESTIMATED REVENUES 2009 DEBT SERVICE FUNDS Street and Highway Debt Service Highway User Revenue Funds $ Refunding Proceeds Total Street and Highway Debt Service $ 8,796,060 $ 8,755,250 $ 8,796,060 $ 8,755,250 $ 9,017,900 12,500,000 21,517,900 Total Debt Service Funds $ 8,796,060 $ 8,755,250 $ 21,517,900 CAPITAL PROJECTS FUNDS See Schedule D $ $ $ $ $ $ Total Capital Projects Funds $ $ $ $ $ $ $ $ $ Total Permanent Funds $ $ $ PERMANENT FUNDS None ENTERPRISE FUNDS Environmental Services Fund Operating Revenue Non-Operating Revenue Miscellaneous Grants $ 41,680,090 1,510,500 591,500 $ 43,440,870 1,591,190 591,500 $ 43,960,000 2,341,570 595,130 Total Environmental Services Fund $ 43,782,090 $ 45,623,560 $ 46,896,700 $ 10,344,540 719,280 $ 10,344,540 719,280 $ 10,344,540 719,280 Total Golf Fund $ 11,063,820 $ 11,063,820 $ 11,063,820 $ 130,609,000 12,906,000 779,990 $ 125,890,860 7,222,000 698,000 $ 138,174,140 7,428,000 692,000 Total Water Utility Fund $ 144,294,990 $ 133,810,860 $ 146,294,140 Total Enterprise Funds $ 199,140,900 $ 190,498,240 $ 204,254,660 Golf Course Fund Operating Revenue Non-Operating Revenue Water Utility Fund Operating Revenue Non-Operating Revenue Miscellaneous Grants * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. C-17 SCHEDULE C TO RESOLUTION NO. 20960 City of Tucson Summary by Fund Type of Revenues Other Than Property Taxes Fiscal Year 2009 ESTIMATED REVENUES 2008 SOURCE OF REVENUES ACTUAL REVENUES* 2008 ESTIMATED REVENUES 2009 INTERNAL SERVICE FUNDS Fleet Services Internal Service Fund Facilities Management Internal Service Fund Risk Management Internal Service Fund Tucson Supplemental Retirement System $ $ 25,155,613 15,473,690 15,000,000 48,000,000 $ 25,993,950 21,182,500 15,000,000 48,000,000 15,000,000 40,000,000 Total Internal Service Funds $ 55,000,000 $ 103,629,303 $ 110,176,450 TOTAL ALL FUNDS $ 1,070,792,750 $ 1,006,201,545 $ 1,117,905,360 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. C-18 SCHEDULE D TO RESOLUTION NO. 20960 City of Tucson Summary by Fund Type of Other Financing Sources/ and Interfund Transfers Fiscal Year 2009 OTHER FINANCING 2009 SOURCES FUND GENERAL FUND Transfers to Special Revenue Funds Transfers from Fund Balance $ $ $ $ 43,125,080 $ 43,125,080 3,271,590 Total General Fund $ SPECIAL REVENUE FUNDS Capital Improvements Fund Highway User Revenue Fund ParkWise Fund Tucson Convention Center Fund Mass Transit Fund Community Services' Central Office Fund Transfers from Fund Balance INTERFUND TRANSFERS 2009 IN $ 66,452,330 $ $ $ $ 3,271,590 $ 8,014,760 1,431,120 6,906,880 34,509,190 277,890 5,924,290 Total Special Revenue Funds $ $ $ 49,049,370 $ $ $ $ 8,014,760 $ Total Debt Service Funds $ $ $ 8,014,760 $ $ $ $ $ $ $ $ $ $ $ Total Permanent Funds $ $ $ $ $ $ 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 $ 5,906,300 8,014,760 40,773,000 Total Capital Projects Funds $ PERMANENT FUNDS None 66,452,330 ENTERPRISE FUNDS Certificates of Participation $ Transfers from/to Fund Balance Water Infrastructure Replacement Fund Total Enterprise Funds $ 46,679,300 6,000,000 6,000,000 $ 6,929,370 5,000,000 11,929,370 $ $ $ $ $ $ $ Total Internal Service Funds $ $ $ $ $ $ INTERNAL SERVICE FUNDS TOTAL ALL FUNDS $ 119,131,630 C-19 72,265,090 $ 51,139,840 SCHEDULE E TO RESOLUTION NO. 20960 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2009 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2008 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 $ 3,424,270 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 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2008 $ ACTUAL EXPENDITURES/ EXPENSES* 2008 $ 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 3,424,270 3,716,471 5,424,990 8,684,650 11,370,630 7,841,506 75,226,843 4,220,676 48,185,255 151,255,986 832,950 BUDGETED EXPENDITURES/ EXPENSES 2009 $ 3,190,910 12,451,571 4,168,940 9,936,128 1,675,230 9,637,735 2,904,190 14,400,070 14,003,003 3,831,284 57,204,603 3,477,650 3,989,970 3,244,450 8,067,920 10,635,430 7,191,610 80,535,820 5,643,970 46,543,130 159,710,620 732,190 3,208,090 10,869,580 3,901,730 9,112,440 1,282,450 8,141,320 2,971,980 14,146,340 11,688,210 3,723,740 71,181,280 511,588,670 $ $ 453,587,891 $ 469,999,920 3,501,600 $ $ 1,541,083 $ 3,400,000 $ 34,802,820 2,606,710 40,809,530 $ 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 $ 85,550 41,455,720 2,943,540 47,986,410 $ $ 85,550 41,670,627 2,907,400 46,204,660 2,592,000 2,592,000 $ $ 2,592,000 2,592,000 87,140,970 87,140,970 67,724,038 $ $ 67,724,038 $ 93,336,020 $ $ 200,000 200,000 $ 1,887,330 1,887,330 Housing Trust Fund Community Services Total $ 93,336,020 * Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. C-20 SCHEDULE E TO RESOLUTION NO. 20960 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2009 FUND/DEPARTMENT ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2008 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 $ EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2008 ACTUAL EXPENDITURES/ EXPENSES* 2008 BUDGETED EXPENDITURES/ EXPENSES 2009 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 $ $ 161,920 91,370 50,000 740,000 350,000 5,647,192 1,720,566 280,000 41,434,349 $ 155,470 372,370 150,000 1,495,500 218,000 12,776,130 1,630,270 300,000 40,521,090 94,870 900,000 $ $ 50,475,397 $ 58,613,700 60,546,850 138,800 60,685,650 $ $ $ $ $ 60,278,844 138,800 60,417,644 61,732,980 99,840 61,832,820 7,136,870 3,680,400 60,000 17,530 10,894,800 $ $ 7,284,011 670,632 $ $ $ 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 $ $ $ $ 3,021,730 2,853,270 278,370 6,153,370 $ $ $ $ 7,355,120 $ $ 7,355,120 $ $ $ $ 13,549,670 2,051,250 15,600,920 $ $ 17,530 7,972,173 311,560 50,000 1,808,945 2,874,440 602,030 6,357,909 460,000 13,086,195 50,000 600,000 26,201,079 $ $ $ $ 2,961,723 4,550,880 278,370 7,790,973 $ 7,355,120 3,774,310 11,129,430 $ 6,544,900 3,680,400 25,880 10,251,180 311,600 250,000 1,467,810 1,123,300 300,000 599,590 5,128,060 408,000 15,044,300 100,000 7,500,000 32,232,660 $ $ 7,342,350 3,775,530 11,117,880 $ 3,458,180 1,138,730 4,596,910 $ 3,408,180 1,136,440 4,544,620 * Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. C-21 SCHEDULE E TO RESOLUTION NO. 20960 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2009 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2008 FUND/DEPARTMENT Capital Improvement Fund Fire General Services Information Technology Parks and Recreation Police Non-Departmental Total Impact Fees Parks and Recreation Transportation Total Contributions Parks and Recreation Fire Non-Departmental Total EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2008 ACTUAL EXPENDITURES/ EXPENSES* 2008 $ $ $ $ $ $ $ $ $ 4,671,300 10,963,400 15,634,700 $ $ 310,000 $ Total Special Revenue Funds $ $ BUDGETED EXPENDITURES/ EXPENSES 2009 9,806,591 1,662,177 5,216,010 576,000 15,907,175 246,130 33,414,083 $ $ $ 1,815,800 1,049,901 2,865,701 $ $ 312,000 $ 641,000 951,000 $ $ 641,000 953,000 $ 947,000 10,000 641,000 1,598,000 380,572,360 $ $ 322,537,088 $ 390,521,570 16,837,200 $ $ 16,837,200 $ 29,532,660 $ $ 33,968,000 3,000,000 550,330 424,000 24,010,000 4,500,000 66,452,330 2,553,500 2,700,000 5,253,500 DEBT SERVICE FUNDS Street and Highway Debt Service Non-Departmental $ General Obligation Debt Service Non-Departmental Total Debt Service Funds $ 28,022,940 25,159,690 24,899,560 44,860,140 $ $ 41,996,890 $ 54,432,220 2,183,100 3,665,000 3,860,900 $ $ 1,168,345 2,953,240 1,790,530 $ 440,000 2,115,700 3,172,100 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 $ 15,305,200 $ $ 63,200 63,200 $ $ 45,579,900 45,579,900 $ $ 39,706,500 39,706,500 $ 40,773,000 40,773,000 Total Capital Projects Funds $ 60,948,300 $ $ 50,626,141 $ 46,679,300 $ $ $ $ Total Permanent Funds $ $ $ $ PERMANENT FUNDS None 5,596,200 5,007,526 10,919,641 178,500 $ 5,906,300 $ * Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. C-22 SCHEDULE E TO RESOLUTION NO. 20960 City of Tucson Summary by Department of Expenditures/Expenses Within Each Fund Type Fiscal Year 2009 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2008 FUND/DEPARTMENT ENTERPRISE FUNDS Environmental Services Tucson City Golf Tuscon Water EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2008 ACTUAL EXPENDITURES/ EXPENSES* 2008 BUDGETED EXPENDITURES/ EXPENSES 2009 $ 52,043,200 11,063,820 146,472,000 $ $ 52,043,210 11,063,820 144,506,860 $ 59,826,070 11,063,820 151,294,140 Total Enterprise Funds $ 209,579,020 $ $ 207,613,890 $ 222,184,030 $ $ 25,155,613 15,473,690 15,000,000 48,000,000 $ 25,993,950 21,182,500 15,000,000 48,000,000 55,000,000 $ $ 103,629,303 $ 110,176,450 1,262,548,490 $ $ 1,179,991,203 $ 1,293,993,490 INTERNAL SERVICE FUNDS Fleet Services $ Facilities Management Risk Management Tucson Supplemental Retirement System Total Internal Service Funds $ TOTAL ALL FUNDS $ 15,000,000 40,000,000 * Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. C-23 SCHEDULE F TO RESOLUTION NO. 20960 City of Tucson Summary by Department of Expenditures/Expenses Fiscal Year 2009 DEPARTMENT/FUND ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2008 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2008 ACTUAL EXPENDITURES/ EXPENSES* 2008 BUDGETED EXPENDITURES/ EXPENSES 2009 Mayor and Council General Fund $ Mayor and Council Total $ 3,424,270 $ 3,424,270 $ 0 $ 0 $ 3,424,270 $ 3,424,270 $ 3,477,650 3,477,650 Budget & Research General Fund $ Budget & Research Total $ 1,690,740 $ 1,690,740 $ 0 $ 0 $ 1,675,230 $ 1,675,230 $ 1,282,450 1,282,450 City Attorney General Fund $ Intergovernmental Funds Other Federal Grant Funds City Attorney Total $ 8,686,370 $ 161,920 344,620 9,192,910 $ 0 $ 0 0 0 $ 8,684,650 $ 161,920 311,560 9,158,130 $ 8,067,920 155,470 311,600 8,534,990 $ City Clerk Total $ 5,519,990 $ 5,519,990 $ 0 $ 0 $ 5,424,990 $ 5,424,990 $ 3,244,450 3,244,450 City Court General Fund $ Intergovernmental Funds City Court Total $ 11,438,000 $ 370,830 11,808,830 $ 0 $ 0 0 $ 11,370,630 $ 91,370 11,462,000 $ 10,635,430 372,370 11,007,800 City Manager General Fund $ Intergovernmental Funds Other Federal Grant Funds City Manager Total $ 3,570,170 $ 150,000 250,000 3,970,170 $ 0 $ 0 0 0 $ 3,716,471 $ 50,000 50,000 3,816,471 $ 3,989,970 150,000 250,000 4,389,970 City Clerk General Fund Community Services General Fund $ Community Development Block Grant Entitlement Housing Assistance Funds Housing Trust Fund Intergovernmental Funds Other Federal Grant Funds Community Services Total $ 9,909,560 $ 7,136,870 0 $ 0 7,841,506 $ 7,284,011 7,191,610 6,544,900 60,546,850 0 1,217,900 1,584,270 80,395,450 $ 0 0 0 0 0 $ 60,278,844 200,000 740,000 1,808,945 78,153,306 $ 61,732,980 1,887,330 1,495,500 1,467,810 80,320,130 Convention Center Tucson Convention Center Fund $ Convention Center Total $ 7,355,120 7,355,120 $ 0 $ 0 $ 7,355,120 $ 7,355,120 $ 7,342,350 7,342,350 Development Services General Fund $ Development Services Total $ 12,807,510 $ 12,807,510 $ 0 $ 0 $ 12,451,571 12,451,571 $ 10,869,580 10,869,580 Environmental Services Environmental Services Funds $ General Obligation Bonds Environmental Services Total $ 52,043,200 $ 3,665,000 55,708,200 $ 0 $ 0 0 $ 52,043,210 $ 2,953,240 54,996,450 $ 59,826,070 2,115,700 61,941,770 Equal Opportunity Programs and Independent Police Review General Fund $ Department Total $ 832,950 $ 832,950 $ 0 $ 0 $ 832,950 $ 832,950 $ 732,190 732,190 * Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. C-24 SCHEDULE F TO RESOLUTION NO. 20960 City of Tucson Summary by Department of Expenditures/Expenses Fiscal Year 2009 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2008 DEPARTMENT/FUND Finance General Fund $ Finance Total $ EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2008 ACTUAL EXPENDITURES/ EXPENSES* 2008 BUDGETED EXPENDITURES/ EXPENSES 2009 9,764,590 $ 9,764,590 $ 0 $ 0 $ 9,637,735 $ 9,637,735 $ 8,141,320 8,141,320 Fire Total $ 92,923,790 $ 0 2,183,100 350,000 2,874,440 3,021,730 0 101,353,060 $ 0 $ 0 0 0 0 0 0 0 $ 75,226,843 $ 9,806,591 1,168,345 350,000 2,874,440 2,961,723 0 92,387,942 $ 80,535,820 33,968,000 440,000 218,000 1,123,300 0 10,000 116,295,120 General Services General Fund $ Intergovernmental Funds Capital Improvements Fund Other Federal Grant Funds General Services Total $ 18,074,860 $ 500,000 0 500,000 19,074,860 $ 0 $ 0 0 0 0 $ 14,003,003 $ 0 1,662,177 50,000 15,715,180 $ 11,688,210 900,000 3,000,000 100,000 15,688,210 $ Golf Total $ 11,063,820 $ 11,063,820 $ 0 $ 0 $ 11,063,820 $ 11,063,820 $ 11,063,820 11,063,820 Human Resources General Fund $ Human Resources Total $ 2,904,190 $ 2,904,190 $ 0 $ 0 $ 2,904,190 $ 2,904,190 $ 2,971,980 2,971,980 Information Technology General Fund $ Capital Improvements Fund Intergovernmental Funds Other Federal Grant Funds Information Technology Total $ 18,395,190 $ 0 30,000 300,000 18,725,190 $ 0 $ 0 0 0 0 $ 14,400,070 $ 5,216,010 0 0 19,616,080 $ 14,146,340 550,330 94,870 300,000 15,091,540 4,697,460 $ 3,680,400 0 $ 0 4,220,676 $ 670,632 5,643,970 3,680,400 3,501,600 11,879,460 $ 0 0 $ 1,541,083 6,432,391 $ 3,400,000 12,724,370 Fire General Fund Capital Improvement Fund General Obligation Bonds Intergovernmental Funds Other Federal Grant Funds Public Safety Academy Fund Contributions Golf Golf $ Neighborhood Resources General Fund $ Community Development Block Grant Entitlement Highway User Revenue Fund Neighborhood Resources 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. C-25 SCHEDULE F TO RESOLUTION NO. 20960 City of Tucson Summary by Department of Expenditures/Expenses Fiscal Year 2009 DEPARTMENT/FUND ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2008 EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2008 ACTUAL EXPENDITURES/ EXPENSES* 2008 BUDGETED EXPENDITURES/ EXPENSES 2009 Parks & Recreation General Fund $ Community Development Block Grant Entitlement Contributions General Obligation Bonds Highway User Revenue Fund Impact Fee Funds Intergovernmental Funds Capital Improvements Fund Other Federal Grant Funds Parks & Recreation Total $ 50,863,670 $ 60,000 0 $ 0 48,185,255 $ 0 46,543,130 0 310,000 3,860,900 0 4,671,300 12,973,030 0 598,630 73,337,530 $ 0 0 0 0 0 0 0 0 $ 312,000 1,790,530 0 1,815,800 5,647,192 576,000 602,030 58,928,807 $ 947,000 3,172,100 0 2,553,500 12,776,130 424,000 599,590 67,015,450 Police General Fund $ General Obligation Bonds Intergovernmental Funds Capital Improvements Fund Other Federal Grant Funds Public Safety Academy Fund Police Total $ 177,837,810 $ 0 1,436,700 0 15,141,670 2,853,270 197,269,450 $ 0 $ 0 0 0 0 0 0 $ 151,255,986 $ 0 1,720,566 15,907,175 6,357,909 4,550,880 179,792,516 $ 159,710,620 0 1,630,270 24,010,000 5,128,060 0 190,478,950 $ Procurement Total $ 3,904,890 $ 3,904,890 $ 0 $ 0 $ 3,831,284 $ 3,831,284 $ 3,723,740 3,723,740 $ Public Defender Total $ 3,190,910 $ 3,190,910 $ 0 $ 0 $ 3,190,910 $ 3,190,910 $ 3,208,090 3,208,090 Transportation General Fund $ 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 $ 29,409,810 $ 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 $ 0 $ 0 0 0 0 0 0 0 0 0 0 $ 9,936,128 $ 5,007,526 41,670,627 1,049,901 41,434,349 2,592,000 67,724,038 13,086,195 3,458,180 0 185,958,944 $ 9,112,440 178,500 34,802,820 2,700,000 40,521,090 2,592,000 93,336,020 15,044,300 3,408,180 0 201,695,350 Urban Planning and Design General Fund $ Highway User Revenue Fund Intergovernmental Funds Other Federal Grant Funds Urban Planning and Design Total $ 4,171,250 $ 85,550 380,000 460,000 5,096,800 $ 0 $ 0 0 0 0 $ 4,168,940 $ 85,550 280,000 460,000 4,994,490 $ 3,901,730 0 300,000 408,000 4,609,730 Procurement General Fund Public Defender General Fund * Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. C-26 SCHEDULE F TO RESOLUTION NO. 20960 City of Tucson Summary by Department of Expenditures/Expenses Fiscal Year 2009 ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2008 DEPARTMENT/FUND Water Water Funds Water Revenue Bonds $ Water Total $ EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2008 ACTUAL EXPENDITURES/ EXPENSES* 2008 BUDGETED EXPENDITURES/ EXPENSES 2009 146,472,000 $ 45,579,900 192,051,900 $ 0 $ 0 0 $ 144,506,860 $ 39,706,500 184,213,360 $ 151,294,140 40,773,000 192,067,140 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 Capital Improvements Fund Street and Highway Debt Service Risk Management Tucson Supplemental Retirement Department Total $ 37,570,690 $ 17,530 0 $ 0 57,204,603 $ 17,530 71,181,280 25,880 0 641,000 0 28,022,940 2,943,540 138,800 200,000 0 600,000 2,051,250 278,370 0 16,837,200 15,000,000 40,000,000 144,301,320 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 3,774,310 641,000 0 25,159,690 2,907,400 138,800 0 0 600,000 1,138,730 278,370 246,130 16,837,200 0 0 108,943,763 $ 3,775,530 641,000 0 24,899,560 2,606,710 99,840 0 0 7,500,000 1,136,440 0 4,500,000 29,532,660 0 0 145,898,900 Internal Service and Fiduciary Funds Fleet Services $ Facilities Management Risk Management Tucson Supplemental Retirement Department Total $ 0 $ 0 0 0 0 $ 0 $ 0 0 0 0 $ 25,155,613 $ 15,473,690 15,000,000 48,000,000 103,629,303 $ 25,993,950 21,182,500 15,000,000 48,000,000 110,176,450 Total All Departments $ 1,262,548,490 $ 0 $ 1,179,991,203 $ 1,293,993,490 * 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. C-27 C-28 Adopted Biennial Budget Summary Fiscal Years 2009 and 2010 Section D Community Statistical Profile D-1 NUMBER OF CITY EMPLOYEES PER 1,000 POPULATION Other* 11.9 2.0 3.0 6.9 2001 11.7 2.0 3.0 6.7 2002 11.3 Commissioned Public Safety Personnel** 11.2 11.0 11.0 1.9 1.8 1.8 2.9 2.9 3.0 6.4 6.2 6.3 6.4 2003 2004 2005 2006 1.9 3.0 Enterprise Positions*** 10.9 10.8 10.8 1.8 1.8 1.8 3.1 3.2 3.2 3.2 5.8 5.9 5.8 5.8 2007 2008 2009 2010 10.7 1.8 * 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 2007 Calendar Year 2008 2009 2010 $ 31.875 6.9 $ 33.178 4.1 $ 34.115 2.8 $ 36.162 6.0 $ 9.246 $ 9.209 $ 9.442 $ 9.986 .9 (.4) 2.5 5.8 Residential Building Permits (Units) Percentage Change from Prior Year 5,237 (38.5) 4,027 (23.1) 4,745 17.8 6,748 42.2 Gasoline Sales (Millions of Gallons) Percentage Change from Prior Year 368.1 4.1 381.7 3.7 391.2 2.5 398.6 1.9 Population (000)** Percentage Change from Prior Year 1,003.2 2.2 1,019.3 16.1 1,036.4 17.1 1,058.3 21.9 Wage and Salary Employment (000) Percentage Change from Prior Year 384.0 1.2 382.6 (0.4) 380.8 (0.5) 387.7 1.8 .383 .375 .367 .366 Real Per Capita Disposable Income (1982 Dollars) Percentage Change from Prior Year $ 13,169 $ 13,189 $ 13,114 $ 13,361 1.0 0.2 (0.6) 1.9 Annual Earnings Per Worker Percentage Change from Prior Year $ 41,614 4.7 $ 42,894 3.1 $ 44,110 2.8 $ 45,367 2.9 Consumer Price Index (CPI) Western Region (Percent Change) 3.2 3.1 1.6 1.6 Personal Consumption Deflator (Percent Change) 2.7 2.0 2.0 1.9 Retail Sales-Excluding Food (Billions of Dollars)* Percentage Change from Prior Year Employment/Population Ratio Source: Economic Outlook, May 2008, Economics and Business Research Center, Eller College of Management, University of Arizona. *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 men’s and women’s swim teams recently won the 2008 National Collegiate Athletic Association (NCAA) championships. The women’s softball team has won eight NCAA championships including the 2006 and 2007 titles. The men’s basketball team were runners up in the NCAA championship in 2001. 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 168 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). City leaders are committed to ensuring that growth will complement existing neighborhoods. 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. 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 546,700 in 2008. 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 2008. Population 1990 2000 2003 2004 2005 2006 2007 2008* Land Area 1990 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008* Tucson 405,390 486,699 514,725 522,850 531,000 539,341 545,273 546,767 157.53 194.12 194.36 195.40 223.33 226.09 226.13 226.15 226.55 226.73 227.62 227.73 Pima County 666,880 843,746 910,950 932,500 957,635 989,953 1,003,918 1,028,132 square miles 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, 2006 (ACS) White, Non-Hispanic 50.6% Hispanic 38.6% Black 4.4% Native American 2.3% Asian/Pacific Islander 2.8% Other 1.3% Land Use, 2003 Undeveloped Residential Commercial Government Industrial Open Space Agricultural Other Median Age 1970 1980 1990 2000 2005 2006 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 32.6 years *Estimated figure for March 2008 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, 2007* (Based on number of full-time equivalent positions) Raytheon Missile Systems State of Arizona University of Arizona Tucson Unified School District Davis-Monthan Air Force Base Pima County U.S. Army Fort Huachuca City of Tucson Freeport-McMoRan Copper & Gold, Inc.*** Wal-Mart Stores Carondelet Health Network University Medical Center Corporation Tucson Medical Center HealthCare U.S. Border Patrol Tohono O’odham Nation Sunnyside Unified School District Pima Community College Pima County 12,515 10,754 10,535 8,018 7,701 6,954 6,701 5,848** 5,840 5,805 4,766 3,304 3,038 2,975 2,725 2,685 2,325 2,321 *Source: “Star Two Hundred,” The Arizona Daily Star, March 16, 2008 **The staffing per Adopted Budget for Fiscal Year 2007 is 5,847.76 ***Formerly Phelps Dodge Mining Company Total Employment (Pima County) 2000 2001 2002 2003 2004 2005 2006 2007 444,400 443,900 448,900 451,200 465,560 472,200 490,200 491,700 Unemployment Rates (Pima County) 2000 2001 2002 2003 2004 2005 2006 2007 2.8% 3.5% 4.6% 4.2% 3.7% 4.4% 4.0% 4.7% Commercial 191 208 268 159 171 129 208 Industrial 17 7 16 8 6 14 10 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 2007 $41,502 Building Permits Issued Residential 2002 2,719 2003 2,497 2004 2,430 2005 2,302 2006 2,904 2007 1,518 2008 701 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-8 140 9 8 47 15 27 5 16 198 630,741 320,258 46,034 30,984 1,840 550 1,141 17,570 8,879,690 3,798,994 530 4,500 155 232,301 290 39.4 1,113 4.43 42.08 673 2,930 23,000 51,070 147 Adopted Biennial Budget Summary Fiscal Years 2009 and 2010 Section E Summary Information CITY OF TUCSON Components of the Total Financial Plan Fiscal Year 2009 Total Budget $ 1,293,993,490 Capital Budget $ 245,457,930 Operating Budget $ 1,048,535,560 Mayor and Council $ 3,477,650 EOP and IPR* $ 732,190 Police $ 166,468,950 Community Services $ 2,038,100 Budget and Research $ 1,282,450 Finance $ 8,141,320 Procurement $ 3,723,740 Environmental Services $ 9,742,100 City Attorney $ 8,534,990 Fire $ 84,422,120 Public Defender $ 3,208,090 Fire $ 31,873,000 City Clerk $ 3,244,450 General Services $ 15,688,210 Transportation $ 111,386,450 Information Technology $ 550,330 City Court $ 11,007,800 Golf $ 11,063,820 Urban Planning and Design $ 4,609,730 Neighborhood Resources $ 7,310,700 City Manager $ 4,389,970 Human Resources $ 2,971,980 Water $ 131,417,140 Parks and Recreation $ 18,974,800 Community Services $ 78,282,030 Information Technology $ 14,541,210 Outside Agencies $ 2,405,460 Police $ 24,010,000 Convention Center $ 7,342,350 Neighborhood Resources $ 5,413,670 General Expense $ 40,867,460 Transportation $ 90,308,900 Development Services $ 10,869,580 Parks and Recreation $ 48,040,650 Debt Service $ 102,625,980 Water $ 60,650,000 Environmental Services $ 52,199,670 Fleet Services Internal Service Fund $ 25,993,950 Risk Management $ 15,000,000 Facilities Management Internal Service Fund $ 21,182,500 Pension $ 48,000,000 *Equal Opportunity Programs and Independent Police Review E-1 REVENUES FISCAL YEAR 2009 ADOPTED Capital Projects Funds 4% Non-Revenue Receipts 4% Other Federal Revenues 6% Business Privilege Tax 16% Miscellaneous 10% ISF/Fiduciary Funds 9% Miscellaneous: Secondary Property Tax 2% Other Local Taxes 2% Licenses and Permits 2% Fines, Forfeitures, and Penalties 1% Brought Forward/Fund Balance 1% Primary Property Tax 1% Other Financing Sources 1% Use of Money and Property <1% Certificates of Participation 5% Enterprise Funds 17% Charges for Current Services 3% Grants and Shared Taxes 15% State Revenue Sharing Public Housing 6% 5% Annual Budget Total Funds Available Primary Property Tax $ Secondary Property Tax Business Privilege Tax Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Public Housing Other Federal Revenues Enterprise Funds Certificates of Participation Other Financing Sources Capital Projects Funds Internal Service and Fiduciary Funds Brought Forward/Fund Balance Total Funds Available Percent of Total 10,931,690 24,899,560 206,840,000 30,030,000 26,634,500 14,916,720 5,060,000 194,842,180 79,240,000 44,715,660 50,225,350 61,554,930 76,914,910 222,184,030 66,452,330 12,500,000 46,679,300 110,176,450 9,195,880 1% 2% 16% 2% 2% 1% <1% 15% 6% 3% 4% 5% 6% 17% 5% 1% 4% 9% 1% $ 1,293,993,490 100% E-2 EXPENDITURES FISCAL YEAR 2009 ADOPTED Environment and Development 36% Strategic Initiatives <1% Support Services 4% Non-Departmental 11% ISF/Fiduciary 9% Neighborhood Services 38% Annual Budget Total Elected and Official $ Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental Outside Agencies General Expense Debt Service Internal Service and Fiduciary Funds Fleet Services Facilities Management Risk Management Tucson Supplemental Retirement System (TSRS) Total Funds Available Internal Service and Fiduciary: (ISF) Funds Fleet Services 2% Facilities Management 2% Risk Management 1% TSRS 4% Elected and Official 2% Funds Available Percent of Total 19,647,060 492,845,920 471,183,570 7,342,350 46,899,240 2% 38% 36% <1% 4% 2,405,460 40,867,460 102,625,980 <1% 3% 8% 25,993,950 21,182,500 15,000,000 48,000,000 2% 2% 1% 4% $ 1,293,993,490 100% E-3 Non-Departmental: Outside Agencies <1% General Expense 3% Debt Service 8% REVENUES FISCAL YEAR 2010 APPROVED Capital Projects Funds 3% Other Federal Revenues 5% Business Privilege Tax 17% ISF/Fiduciary Funds 9% Miscellaneous 11% Miscellaneous: 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% Brought Forward/Fund Balance <1% Enterprise Funds 18% Certificates of Grants and Shared Participation Taxes 4% 18% Charges for Current State Revenue Sharing Public Housing Services 6% 5% 4% 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 Internal Service and Fiduciary Funds Brought Forward/Fund Balance Total Funds Available Percent of Total 11,150,320 24,919,400 214,080,000 30,960,000 27,305,000 15,175,140 5,100,000 224,138,450 79,240,000 47,293,240 31,766,160 63,582,040 63,936,660 232,052,060 46,455,000 40,749,700 108,896,300 3,511,500 1% 2% 17% 2% 2% 1% <1% 18% 6% 4% 3% 5% 5% 18% 4% 3% 9% <1% $ 1,270,310,970 100% E-4 EXPENDITURES FISCAL YEAR 2010 APPROVED Environment and Development 38% Strategic Initiatives < 1% Support Services 3% ISF/Fiduciary 9% Non-Departmental 10% Neighborhood Services 38% 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 Internal Service and Fiduciary Funds Fleet Services Facilities Management Risk Management Tucson Supplemental Retirement System Total Funds Available Non-Departmental: Outside Agencies <1% General Expense 4% Debt Service 6% Percent of Total 20,688,650 478,984,060 488,699,560 7,307,830 42,895,510 2% 38% 38% <1% 3% 2,405,460 46,463,500 73,970,100 <1% 4% 6% 25,988,800 19,907,500 15,000,000 48,000,000 2% 2% 1% 4% $ 1,270,310,970 100% E-5 Internal Service and Fiduciary (ISF) Funds: Fleet Services 2% Facilities Management 2% Risk Management 1% TSRS 4% SUMMARY OF EXPENDITURES BY DEPARTMENT Actual FY 2007 Elected and Official Mayor and Council City Manager City Clerk City Attorney $ Sub-Total 3,189,236 2,739,153 3,673,468 8,665,353 Sub-Total $ Sub-Total $ $ 373,784,941 $ Sub-Total Support Services Budget and Research Finance General Services Human Resources Information Technology Procurement 11,263,925 43,262,440 159,742,937 155,918,807 3,596,832 7,799,134 1,953,489 9,930,869 19,776,107 2,968,477 20,482,736 3,901,770 59,013,448 $ 11,808,830 80,395,450 101,353,060 -011,879,460 73,337,530 11,063,820 197,269,450 832,950 $ $ $ 11,462,000 78,153,306 92,387,942 -06,432,391 58,928,807 11,063,820 179,792,516 832,950 3,477,650 4,389,970 3,244,450 8,534,990 Approved FY 2010 $ 19,647,060 $ 11,007,800 80,320,130 116,295,120 -012,724,370 67,015,450 11,063,820 190,478,950 732,190 3,477,650 4,385,890 4,476,850 8,348,260 20,688,650 $ 10,990,460 80,333,300 85,614,260 -08,189,970 73,327,430 11,063,820 205,477,380 755,410 3,190,910 3,190,910 3,208,090 3,232,030 491,131,460 442,244,642 492,845,920 478,984,060 12,807,510 55,708,200 275,924,380 192,051,900 5,096,800 $ 7,355,120 1,690,740 9,764,590 19,074,860 2,904,190 18,725,190 3,904,890 56,064,460 E-6 12,451,571 54,996,450 185,958,944 184,213,360 4,994,490 $ 442,614,815 $ 7,355,120 $ 3,424,270 3,816,471 5,424,990 9,158,130 Adopted FY 2009 21,823,861 541,588,790 7,799,134 $ 3,424,270 3,970,170 5,519,990 9,192,910 Estimated FY 2008 22,107,340 374,325,175 Sub-Total Strategic Initiatives Tucson Convention Center $ 18,267,210 Neighborhood Services City Court $ 10,514,608 Community Services 57,903,810 Fire 76,877,926 Library 9,808 Neighborhood Resources 6,490,450 Parks and Recreation 49,665,424 Tucson City Golf 9,870,848 Police 159,226,643 737,263 Office of Equal Opportunity Programs and Independent Police Review Office of the Public Defender 3,028,395 Environment and Development Development Services Environmental Services Transportation Tucson Water Urban Planning and Design Adopted FY 2008 7,355,120 1,675,230 9,637,735 15,715,180 2,904,190 19,616,080 3,831,284 53,379,699 $ 471,183,570 $ 7,355,120 $ 10,869,580 61,941,770 201,695,350 192,067,140 4,609,730 7,342,350 488,699,560 $ 7,342,350 $ 1,282,450 8,141,320 15,688,210 2,971,980 15,091,540 3,723,740 46,899,240 10,639,000 65,983,880 217,113,590 190,339,360 4,623,730 7,307,830 7,307,830 $ 1,356,330 8,096,630 12,266,560 2,965,150 14,443,020 3,767,820 42,895,510 Summary of Expenditures by Department (Continued) Actual FY 2007 Non-Departmental Outside Agencies General Expense Debt Service Risk Management Pension Administration $ Sub-Total Total All Expenditures $ 94,758,071 Internal Service and Fiduciary Funds Fleet Services Internal Service Fund $ Facilities Management Internal Service Fund Risk Management Fund Tucson Supplemental Retirement System Fund Sub-Total 2,225,771 32,851,315 59,680,985 -0-0- Adopted FY 2008 23,467,505 15,086,759 2,265,460 13,122,680 73,913,180 15,000,000 40,000,000 Estimated FY 2008 $ 144,301,320 $ -0-0- 2,265,460 37,546,563 69,131,740 -0-0- Adopted FY 2009 $ 108,943,763 $ 25,155,613 15,473,690 2,405,460 40,867,460 102,625,980 -0-0- Approved FY 2010 $ 145,898,900 $ 25,993,950 21,182,500 2,405,460 46,463,500 73,970,100 -0-0122,839,060 $ 25,988,800 19,907,500 17,768,325 60,313,408 -0-0- 15,000,000 48,000,000 15,000,000 48,000,000 15,000,000 48,000,000 116,635,997 -0- 103,629,303 110,176,450 108,896,300 $ 1,044,583,976 $ 1,262,548,490 $ 1,179,991,203 $ 1,293,993,490 $ 1,270,310,970 SUMMARY BY CHARACTER OF EXPENDITURES Actual FY 2007 Personal Services Services Commodities Equipment Other $ 453,371,131 247,055,971 73,768,714 6,804,893 121,147,903 Adopted FY 2008 $ 462,095,660 229,138,650 70,971,140 10,939,290 156,529,150 Estimated FY 2008 $ Adopted FY 2009 Approved FY 2010 472,105,843 238,119,451 80,553,681 13,539,743 189,808,528 $ 472,239,020 243,611,280 75,298,660 14,257,860 243,128,740 $ 473,457,950 235,947,150 75,635,270 13,221,700 232,396,200 Operating Total 902,148,612 929,673,890 994,127,246 1,048,535,560 1,030,658,270 Capital Improvements 142,435,364 332,874,600 185,863,957 245,457,930 239,652,700 Total All Expenditures $ 1,044,583,976 $ 1,262,548,490 $ 1,179,991,203 $ 1,293,993,490 $ 1,270,310,970 E-7 REVENUES AND EXPENDITURES COMPARISONS Actual FY 2007 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 Other Financing Sources Capital Projects Funds Internal Service and Fiduciary Funds Brought Forward/Fund Balance TOTAL FUNDS AVAILABLE EXPENDITURES Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental Internal Service and Fiduciary Funds ALL EXPENDITURES $ 9,975,822 23,331,690 202,340,460 29,852,312 22,895,022 12,791,779 13,134,733 141,911,645 62,547,187 42,393,467 12,257,863 45,406,544 46,444,365 191,946,945 29,727,336 -042,654,378 117,713,510 8,788,563 Adopted FY 2008 $ 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 -060,948,300 -050,371,200 Estimated FY 2008 $ 10,327,380 27,962,810 202,389,000 30,233,000 24,976,600 14,556,960 5,021,000 182,881,505 74,558,000 42,943,840 28,123,132 60,139,754 46,556,670 207,613,890 33,414,083 -050,626,141 103,629,303 25,009,868 Adopted FY 2009 $ 10,931,690 24,899,560 206,840,000 30,030,000 26,634,500 14,916,720 5,060,000 194,842,180 79,240,000 44,715,660 50,225,350 61,554,930 76,914,910 222,184,030 66,452,330 12,500,000 46,679,300 110,176,450 9,195,880 Approved FY 2010 $ 11,150,320 24,919,400 214,080,000 30,960,000 27,305,000 15,175,140 5,100,000 224,138,450 79,240,000 47,293,240 31,766,160 63,582,040 63,936,660 232,052,060 46,455,000 -040,749,700 108,896,300 3,511,500 $ 1,056,113,621 $ 1,262,548,490 $ 1,170,962,936 $ 1,293,993,490 $ 1,270,310,970 $ $ $ $ $ 18,267,210 374,325,175 373,784,941 7,799,134 59,013,448 94,758,071 116,635,997 $ 1,044,583,976 22,107,340 491,131,460 541,588,790 7,355,120 56,064,460 144,301,320 -0- $ 1,262,548,490 E-8 21,823,861 442,244,642 442,614,815 7,355,120 53,379,699 108,943,763 103,629,303 $ 1,179,991,203 19,647,060 492,845,920 471,183,570 7,342,350 46,899,240 145,898,900 110,176,450 $ 1,293,993,490 20,688,650 478,984,060 488,699,560 7,307,830 42,895,510 122,839,060 108,896,300 $ 1,270,310,970 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, and other miscellaneous funding sources. These funds are expended in the Elected and Official, Neighborhood Services, Environment and Development, Support Services, and Non-Departmental 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 and Fiduciary 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, Fleet Services, and Facilities Management Internal Service Funds all operate on a costreimbursement basis. 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 source of funds in this group. Proceeds from bond sales are reflected in the year that they are expended. E-9 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 have no restrictions on their use and may be either General Funds or Special Revenue Funds. Although most General Funds can be classified as general purpose funds, certain 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-10 USE OF GENERAL PURPOSE FUNDS COMPARED TO TOTAL FUNDS ($000s) $1,400,000 1,262,548 1,293,993 1,270,311 $1,200,000 1,044,583 $1,000,000 880,411 827,837 $800,000 $600,000 441,939 $400,000 493,434 450,597 492,083 502,559 388,323 $200,000 $-02005 Actual 2006 Actual 2007 Actual 2008 Adopted General Purpose Expenditures 2009 Adopted 2010 Approved 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. E-11 REVENUES AND EXPENDITURES SUMMARY FISCAL YEARS 2009 AND 2010 BIENNIAL BUDGET FY 2009 FUNDING CLASSIFICATION FUNDS AVAILABLE Primary Property Tax $ Secondary Property Tax Business Privilege Tax Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Public Housing Other Federal Revenues Enterprise Funds Certificates of Participation Other Financing Sources Capital Projects Funds Internal Service and Fiduciary Funds Brought Forward/Fund Balance GENERAL PURPOSE RESTRICTED FY 2010 FUNDING GENERAL PURPOSE TOTAL RESTRICTED TOTAL 10,931,690 -0206,840,000 30,030,000 25,601,000 11,500,000 2,500,000 77,862,000 79,240,000 31,240,000 14,255,010 -0-0-0-0-0-0-02,083,000 $ -024,899,560 -0-01,033,500 3,416,720 2,560,000 116,980,180 -013,475,660 35,970,340 61,554,930 76,914,910 222,184,030 66,452,330 12,500,000 46,679,300 110,176,450 7,112,880 $ 10,931,690 24,899,560 206,840,000 30,030,000 26,634,500 14,916,720 5,060,000 194,842,180 79,240,000 44,715,660 50,225,350 61,554,930 76,914,910 222,184,030 66,452,330 12,500,000 46,679,300 110,176,450 9,195,880 $ 11,150,320 -0214,080,000 30,960,000 26,370,000 11,730,000 2,500,000 80,402,000 79,240,000 31,870,000 14,256,680 -0-0-0-0-0-0-0-0- $ -024,919,400 -0-0935,000 3,445,140 2,600,000 143,736,450 -015,423,240 17,509,480 63,582,040 63,936,660 232,052,060 46,455,000 -040,749,700 108,896,300 3,511,500 $ $ 492,082,700 $ 801,910,790 $ 1,293,993,490 $ 502,559,000 $ 767,751,970 $ 1,270,310,970 EXPENDITURES Elected and Official $ Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental Internal Service and Fiduciary Funds 18,562,990 303,431,820 66,118,360 6,501,350 41,435,170 56,033,010 -0- $ 1,084,070 189,414,100 405,065,210 841,000 5,464,070 89,865,890 110,176,450 $ 19,647,060 492,845,920 471,183,570 7,342,350 46,899,240 145,898,900 110,176,450 $ 19,604,580 302,923,210 64,659,100 6,466,090 41,036,590 67,869,430 -0- $ 1,084,070 176,060,850 424,040,460 841,740 1,858,920 54,969,630 108,896,300 $ 492,082,700 $ 801,910,790 $ 1,293,993,490 $ 502,559,000 $ 767,751,970 $ 1,270,310,970 TOTAL FUNDS AVAILABLE TOTAL EXPENDITURES $ E-12 11,150,320 24,919,400 214,080,000 30,960,000 27,305,000 15,175,140 5,100,000 224,138,450 79,240,000 47,293,240 31,766,160 63,582,040 63,936,660 232,052,060 46,455,000 -040,749,700 108,896,300 3,511,500 20,688,650 478,984,060 488,699,560 7,307,830 42,895,510 122,839,060 108,896,300 REVENUES AND EXPENDITURES SUMMARY FISCAL YEAR 2009 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 Other Financing Sources Capital Projects Funds Internal Service and Fiduciary Funds Brought Forward/Fund Balance TOTAL FUNDS AVAILABLE OPERATING CAPITAL RESTRICTED FUNDS TOTAL OPERATING CAPITAL TOTAL 10,931,690 24,899,560 206,840,000 30,030,000 26,634,500 14,916,720 5,060,000 194,842,180 79,240,000 44,715,660 50,225,350 61,554,930 76,914,910 222,184,030 66,452,330 12,500,000 46,679,300 110,176,450 9,195,880 $ 10,931,690 -0206,840,000 30,030,000 25,601,000 11,500,000 2,500,000 77,862,000 79,240,000 30,738,600 14,255,010 -0-0-0-0-0-0-0419,700 $ -0-0-0-0-0-0-0-0-0501,400 -0-0-0-0-0-0-0-01,663,300 $ 10,931,690 -0206,840,000 30,030,000 25,601,000 11,500,000 2,500,000 77,862,000 79,240,000 31,240,000 14,255,010 -0-0-0-0-0-0-02,083,000 $ -024,899,560 -0-01,033,500 3,416,720 2,560,000 60,370,880 -013,475,660 28,880,840 60,416,930 29,396,510 194,680,630 10,035,000 12,500,000 -0110,176,450 6,774,880 $ -0-0-0-0-0-0-056,609,300 -0-07,089,500 1,138,000 47,518,400 27,503,400 56,417,330 -046,679,300 -0338,000 $ -024,899,560 -0-01,033,500 3,416,720 2,560,000 116,980,180 -013,475,660 35,970,340 61,554,930 76,914,910 222,184,030 66,452,330 12,500,000 46,679,300 110,176,450 7,112,880 $ 1,293,993,490 $ 489,918,000 $ 2,164,700 $ 492,082,700 $ 558,617,560 $ 243,293,230 $ 801,910,790 19,647,060 492,845,920 471,183,570 7,342,350 46,899,240 145,898,900 110,176,450 $ 18,562,990 303,201,520 64,183,960 6,501,350 41,435,170 56,033,010 -0- $ -0230,300 1,934,400 -0-0-0-0- $ 18,562,990 303,431,820 66,118,360 6,501,350 41,435,170 56,033,010 -0- $ 1,084,070 105,437,800 246,298,610 841,000 4,913,740 89,865,890 110,176,450 $ -083,976,300 158,766,600 -0550,330 -0-0- $ 1,084,070 189,414,100 405,065,210 841,000 5,464,070 89,865,890 110,176,450 $ 1,293,993,490 $ 489,918,000 $ 2,164,700 $ 492,082,700 $ 558,617,560 $ 243,293,230 $ 801,910,790 EXPENDITURES Elected and Official $ Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental Internal Service and Fiduciary Funds TOTAL EXPENDITURES TOTAL BUDGET E-13 REVENUES AND EXPENDITURES SUMMARY FISCAL YEAR 2010 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 Internal Service and Fiduciary Funds Brought Forward/Fund Balance TOTAL FUNDS AVAILABLE OPERATING CAPITAL RESTRICTED FUNDS TOTAL OPERATING CAPITAL TOTAL 11,150,320 24,919,400 214,080,000 30,960,000 27,305,000 15,175,140 5,100,000 224,138,450 79,240,000 47,293,240 31,766,160 63,582,040 63,936,660 232,052,060 46,455,000 40,749,700 108,896,300 3,511,500 $ 11,150,320 -0214,080,000 30,960,000 26,370,000 11,730,000 2,500,000 80,402,000 79,240,000 31,385,000 14,256,680 -0-0-0-0-0-0-0- $ -0-0-0-0-0-0-0-0-0485,000 -0-0-0-0-0-0-0-0- $ 11,150,320 -0214,080,000 30,960,000 26,370,000 11,730,000 2,500,000 80,402,000 79,240,000 31,870,000 14,256,680 -0-0-0-0-0-0-0- $ -024,919,400 -0-0935,000 3,445,140 2,600,000 64,796,350 -015,423,240 14,813,380 61,832,040 23,047,960 201,558,960 2,805,000 -0108,896,300 3,511,500 $ -0-0-0-0-0-0-078,940,100 -0-02,696,100 1,750,000 40,888,700 30,493,100 43,650,000 40,749,700 -0-0- $ -024,919,400 -0-0935,000 3,445,140 2,600,000 143,736,450 -015,423,240 17,509,480 63,582,040 63,936,660 232,052,060 46,455,000 40,749,700 108,896,300 3,511,500 $ 1,270,310,970 $ 502,074,000 $ 485,000 $ 502,559,000 $ 528,584,270 $ 239,167,700 $ 767,751,970 20,688,650 478,984,060 488,699,560 7,307,830 42,895,510 122,839,060 108,896,300 $ 19,604,580 302,923,210 64,174,100 6,466,090 41,036,590 67,869,430 -0- $ -0-0485,000 -0-0-0-0- $ 19,604,580 302,923,210 64,659,100 6,466,090 41,036,590 67,869,430 -0- $ 1,084,070 105,654,750 255,278,860 841,740 1,858,920 54,969,630 108,896,300 $ -070,406,100 168,761,600 -0-0-0-0- $ 1,084,070 176,060,850 424,040,460 841,740 1,858,920 54,969,630 108,896,300 $ 1,270,310,970 $ 502,074,000 $ 485,000 $ 502,559,000 $ 528,584,270 $ 239,167,700 $ 767,751,970 EXPENDITURES Elected and Official $ Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental Internal Service and Fiduciary Funds TOTAL EXPENDITURES TOTAL BUDGET E-14 REVENUES AND EXPENDITURES COMPARISONS AND FUND BALANCE GENERAL FUND Actual FY 2007 Beginning Fund Balance Revenues and Other Sources Primary Property Tax Business Privilege Tax Less Transfers Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Certificates of Participation Brought Forward/Fund Balance Adopted FY 2008 Estimated FY 2008 Adopted FY 2009 Approved FY 2010 $ 41,258,164 $ 43,000,100 $ 43,664,330 $ 33,221,940 $ 33,221,940 $ Total Sources 9,975,822 $ 10,327,380 $ 10,327,380 $ 10,931,690 $ 11,150,320 202,340,460 212,870,000 202,389,000 206,840,000 214,080,000 (52,796,731) (99,582,080) (48,122,263) (43,125,080) (41,369,870) 29,852,312 30,021,000 30,233,000 30,030,000 30,960,000 21,980,168 22,640,000 24,202,000 25,931,000 26,700,000 12,194,115 13,655,850 13,966,960 14,306,720 14,555,140 10,380,408 3,147,100 3,006,000 3,000,000 3,000,000 73,814,918 77,348,820 74,044,859 75,392,650 77,878,150 62,547,187 74,600,000 74,558,000 79,240,000 79,240,000 24,039,376 33,029,120 23,759,250 24,732,330 25,012,290 7,889,812 17,392,510 20,724,085 39,449,020 25,961,480 29,727,336 76,847,800 -0-0-0-039,291,170 12,362,774 3,271,590 1,950,810 431,945,183 511,588,670 441,451,045 469,999,920 469,118,320 Less Unbudgeted Fund Balance Requirements Total Funds Available $ (41,258,164) $ (43,000,100) $ (43,664,330) $ (33,221,940) $ (33,221,940) 431,945,183 511,588,670 441,451,045 469,999,920 469,118,320 Expenditures Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental $ 17,929,410 $ 21,200,800 $ 21,250,381 $ 18,779,990 $ 19,821,580 286,231,166 351,694,150 302,124,756 314,200,860 312,864,050 22,349,888 46,388,570 26,556,639 23,883,750 24,687,470 -0-0-0-0-058,756,170 54,734,460 46,451,512 41,954,040 41,500,640 46,678,549 37,570,690 57,204,603 71,181,280 70,244,580 Total Expenditures Available Funds Over/(Under) Expenditures 431,945,183 $ 511,588,670 -0- $ 453,587,891 -0- $ (12,136,846) $ 469,999,920 -0- $ 469,118,320 -0- Unbudgeted Fund Balance Requirements From Prior year From Available Funds Transfers from/(to) other Funds or Reserves Total $ 41,258,164 $ 43,000,100 $ 43,664,330 $ 33,221,940 $ 33,221,940 -0-0(12,136,846) -0-02,406,166 8,158,770 1,694,456 -0-0$ 43,664,330 $ 51,158,870 $ 33,221,940 $ 33,221,940 $ 33,221,940 E-15 REVENUES AND EXPENDITURES COMPARISONS AND FUND BALANCE OTHER FUNDS Actual FY 2007 SPECIAL REVENUE FUNDS Beginning Fund Balance $ Revenues and Other Sources Expenditures Adopted FY 2008 34,774,991 $ 42,980,970 $ 231,658,180 (220,128,535) Surplus/(Deficit) Transfers from/(to) other Funds or Reserves 380,572,360 (380,572,360) Estimated FY 2008 31,232,789 $ 322,842,547 (319,733,968) Adopted FY 2009 34,341,368 $ 390,521,570 (390,521,570) Approved FY 2010 34,341,368 377,506,010 (377,506,010) 11,529,645 -0- 3,108,579 -0- -0- (15,071,847) -0- -0- -0- -0- Ending Fund Balance $ ENTERPRISE FUNDS Beginning Fund Balance $ (16,769,204) $ (18,162,374) $ (20,458,204) $ (25,635,394) $ (32,564,764) Revenues and Other Sources Expenditures 31,232,789 $ 42,980,970 $ 191,963,197 (191,946,945) Surplus/(Deficit) Transfers from/(to) other Funds or Reserves 210,548,280 (209,579,020) 16,252 969,260 (3,705,252) -0- 34,341,368 $ 34,341,368 $ 34,341,368 202,436,700 (207,613,890) 215,254,660 (222,184,030) 224,134,880 (232,052,060) (5,177,190) (6,929,370) (7,917,180) -0- -0- -0- Ending Fund Balance $ (20,458,204) $ (17,193,114) $ (25,635,394) $ (32,564,764) $ (40,481,944) DEBT SERVICE FUNDS Beginning Fund Balance $ Revenues and Other Sources Expenditures -0- $ 40,195,425 (40,195,425) Surplus/(Deficit) -0- $ 44,860,140 (44,860,140) -0- $ 44,800,010 (44,800,010) -0- $ 54,432,220 (54,432,220) -041,988,580 (41,988,580) -0- -0- -0- -0- -0- -0- $ -0- $ -0- $ -0- $ -0- INTERNAL SERVICE & FIDUCIARY FUNDS Beginning Fund Balance $ -0- $ -0- $ -0- $ -0- $ -0- Ending Fund Balance $ Revenues and Other Sources Expenditures 117,713,510 (117,713,510) Surplus/(Deficit) 55,000,000 (55,000,000) 103,629,303 (103,629,303) 110,176,450 (110,176,450) 108,896,300 (108,896,300) -0- -0- -0- -0- -0- Ending Fund Balance $ -0- $ -0- $ -0- $ -0- $ -0- CAPITAL PROJECTS FUND Beginning Fund Balance $ -0- $ -0- $ -0- $ -0- $ -0- Revenues and Other Sources Expenditures 42,654,378 (42,654,378) Surplus/(Deficit) Ending Fund Balance $ 60,948,300 (60,948,300) 50,626,141 (50,626,141) 46,679,300 (46,679,300) 40,749,700 (40,749,700) -0- -0- -0- -0- -0- -0- $ -0- $ -0- $ -0- $ -0- E-16 REVENUE DETAIL ALL FUNDS SUMMARY Actual FY 2007 FINANCIAL RESOURCES GENERAL FUND SPECIAL REVENUE FUNDS ENTERPRISE FUNDS DEBT SERVICE FUNDS INTERNAL SERVICE FUNDS CAPITAL PROJECTS FUNDS TOTAL ALL FUNDS Adopted FY 2008 Estimated FY 2008 $ 431,945,183 $ 511,588,670 $ 441,451,045 $ 231,658,180 380,572,360 322,842,547 191,946,945 209,579,020 207,613,890 40,195,425 44,860,140 44,800,010 117,713,510 55,000,000 103,629,303 42,654,378 60,948,300 50,626,141 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 469,999,920 $ 390,521,570 222,184,030 54,432,220 110,176,450 46,679,300 Approved FY 2010 469,118,320 377,506,010 232,052,060 41,988,580 108,896,300 40,749,700 $ 1,056,113,621 $ 1,262,548,490 $ 1,170,962,936 $ 1,293,993,490 $ 1,270,310,970 General Fund Primary Property Tax $ 9,975,822 $ 10,327,380 $ 10,327,380 $ Business Privilege Tax 202,340,460 212,870,000 202,389,000 Other Local Taxes 29,852,312 30,021,000 30,233,000 Licenses and Permits 21,980,168 22,640,000 24,202,000 Fines, Forfeitures, and Penalties 12,194,115 13,655,850 13,966,960 Use of Money and Property 10,380,408 3,147,100 3,006,000 Grants and Shared Taxes 73,814,918 77,348,820 74,044,859 State Revenue Sharing 62,547,187 74,600,000 74,558,000 Charges for Current Services 24,039,376 33,029,120 23,759,250 Non-Revenue Receipts 7,889,812 17,392,510 20,724,085 Transfers to Other Funds (52,796,731) (99,582,080) (48,122,263) Certificates of Participation 29,727,336 76,847,800 -0Brought Forward -029,784,790 1,638,500 Use of Fund Balance and Reserves -09,506,380 10,724,274 Total General Fund Adopted FY 2009 10,931,690 $ 206,840,000 30,030,000 25,931,000 14,306,720 3,000,000 75,392,650 79,240,000 24,732,330 39,449,020 (43,125,080) -0788,000 2,483,590 11,150,320 214,080,000 30,960,000 26,700,000 14,555,140 3,000,000 77,878,150 79,240,000 25,012,290 25,961,480 (41,369,870) -0-01,950,810 $ 431,945,183 $ 511,588,670 $ 441,451,045 $ 469,999,920 $ 469,118,320 $ 52,796,731 $ 44,582,080 $ 48,122,263 $ 914,854 541,500 774,600 597,664 610,000 590,000 2,754,325 3,441,600 2,015,000 51,232,992 116,211,740 91,999,446 18,354,091 18,890,360 19,184,590 2,555,153 2,280,000 2,280,000 89,295,756 153,877,860 104,416,424 4,368,051 19,257,190 7,399,047 -09,800,000 33,414,083 2,170,200 4,400,100 4,261,100 6,618,363 6,679,930 8,385,994 43,125,080 $ 703,500 610,000 2,060,000 102,416,870 19,983,330 2,280,000 136,189,840 10,776,330 66,452,330 3,524,600 2,399,690 41,369,870 605,000 620,000 2,100,000 129,191,120 22,280,950 2,280,000 125,238,700 5,804,680 46,455,000 -01,560,690 $ 231,658,180 $ 380,572,360 $ 322,842,547 $ 390,521,570 $ 377,506,010 E-17 REVENUE DETAIL ALL FUNDS SUMMARY Actual FY 2007 FINANCIAL RESOURCES Enterprise Funds Environmental Services Golf Course Water Utility Total Enterprise Funds Debt Service Funds Secondary Property Tax State Shared Taxes Refunding Proceeds Total Debt Service Funds Internal Service Funds Fleet Services Fund Facilities Management Fund Risk Management Fund TSRS* Trust Fund Total Internal Service Funds Capital Projects Funds Bond Funds Proceeds Total Capital Projects Funds $ Adopted FY 2008 Estimated FY 2008 Adopted FY 2009 Approved FY 2010 45,048,210 $ 52,043,200 $ 52,043,210 $ 12,424,762 11,063,820 11,063,820 134,473,973 146,472,000 144,506,860 59,826,070 $ 11,063,820 151,294,140 64,603,880 11,063,820 156,384,360 $ 191,946,945 $ 209,579,020 $ 207,613,890 $ 222,184,030 $ 232,052,060 $ 23,331,690 $ 16,863,735 -0- 28,022,940 $ 16,837,200 -0- 27,962,810 $ 16,837,200 -0- 24,899,560 $ 17,032,660 12,500,000 24,919,400 17,069,180 -0- $ 40,195,425 $ 44,860,140 $ 44,800,010 $ 54,432,220 $ 41,988,580 $ 23,917,219 $ 15,086,759 18,396,124 60,313,408 -0- $ -015,000,000 40,000,000 25,155,613 $ 15,473,690 15,000,000 48,000,000 25,993,950 $ 21,182,500 15,000,000 48,000,000 25,988,800 19,907,500 15,000,000 48,000,000 $ 117,713,510 $ 55,000,000 $ 103,629,303 $ 110,176,450 $ 108,896,300 $ 42,654,378 $ 60,948,300 $ 50,626,141 $ 46,679,300 $ 40,749,700 $ 42,654,378 $ 60,948,300 $ 50,626,141 $ 46,679,300 $ 40,749,700 *Tucson Supplemental Retirement System E-18 GENERAL FUND Actual FY 2007 FINANCIAL RESOURCES Adopted FY 2008 Estimated FY 2008 Adopted FY 2009 Approved FY 2010 Primary Property Tax $ Business Privilege Tax $ 202,340,460 $ 212,870,000 $ 202,389,000 $ 206,840,000 $ 214,080,000 Other Local Taxes Public Utility Tax Transient Occupancy Tax Room Tax Occupational Taxes Liquor Taxes Use Tax Total Licenses and Permits Application Fees Sign Permits Parking Meter Collections Vehicle Permits 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 $ 9,975,822 $ 10,327,380 $ 10,327,380 $ 10,931,690 $ 11,150,320 7,176,742 $ 7,210,000 $ 7,084,000 $ 7,080,000 $ 7,080,000 10,963,953 10,731,000 11,347,000 11,500,000 11,960,000 2,015,940 2,390,000 2,151,000 2,240,000 2,280,000 2,124,410 2,140,000 846,000 -0-0731,380 810,000 691,000 690,000 690,000 6,839,887 6,740,000 8,114,000 8,520,000 8,950,000 $ 29,852,312 $ 30,021,000 $ 30,233,000 $ 30,030,000 $ 30,960,000 $ 252,673 $ 313,654 287,311 457,519 233,200 260,000 $ 310,000 351,000 580,000 389,000 2,167,000 $ 314,000 254,000 8,000 190,000 3,250,000 $ 330,000 259,000 5,000 233,000 3,410,000 330,000 260,000 5,000 235,000 3,729,912 1,026,835 3,480,000 1,090,000 5,379,000 -0- 5,380,000 -0- 5,380,000 -0- 622,973 485,372 630,000 680,000 -01,224,000 -01,224,000 -01,220,000 14,570,719 14,870,000 14,666,000 15,250,000 15,860,000 $ 21,980,168 $ 22,640,000 $ 24,202,000 $ 25,931,000 $ 26,700,000 E-19 GENERAL FUND Actual FY 2007 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 Crime Lab Assessment Offroad Vehicle Violations Dishonored Check Recovery Sub-Total Total Use of Money and Property Rentals and Leases Tenant Rent Telephone Pay Booths Interest Earnings Total Grants and Shared Taxes Shared State Taxes Auto Lieu Taxes State Sales Tax Sub-Total 1,641,137 $ 122,006 769,939 6,199,706 119,377 9,715 332,236 1,165,337 366,137 10,725,590 $ 597,206 $ 10,972 4,550 6,914 2,211 591,201 225,525 19,270 1,693 8,983 1,468,525 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 Estimated FY 2008 2,215,000 $ 90,000 760,000 5,662,000 125,100 11,500 320,000 1,250,000 321,590 10,755,190 Adopted FY 2009 2,260,000 $ 90,000 780,000 5,758,000 130,000 10,000 330,000 1,280,000 335,110 10,973,110 Approved FY 2010 2,310,000 90,000 800,000 5,868,000 130,000 10,000 340,000 1,310,000 336,380 11,194,380 610,000 $ 20,000 10,000 10,000 10,000 2,184,260 190,000 -01,000 9,000 590,000 $ 24,000 10,000 10,000 10,000 2,336,370 195,000 25,000 2,400 9,000 610,000 $ 20,000 10,000 10,000 10,000 2,302,430 200,000 159,180 2,000 10,000 620,000 20,000 10,000 10,000 10,000 2,316,400 200,000 162,360 2,000 10,000 3,044,260 3,211,770 3,333,610 3,360,760 $ 12,194,115 $ 13,655,850 $ 13,966,960 $ 14,306,720 $ 14,555,140 1,222,774 756,489 3,349 8,397,796 $ 10,380,408 $ 1,530,000 709,100 8,000 900,000 1,806,000 502,000 8,000 690,000 1,802,000 500,000 8,000 690,000 1,802,000 500,000 8,000 690,000 3,147,100 $ 3,006,000 $ 3,000,000 $ 3,000,000 $ 23,429,781 $ 23,260,000 $ 24,328,000 $ 24,810,000 $ 25,310,000 50,310,855 53,970,000 49,571,000 50,460,000 52,500,000 73,740,636 77,230,000 E-20 73,899,000 75,270,000 77,810,000 GENERAL FUND Actual FY 2007 FINANCIAL RESOURCES Grants and Shared Taxes (Continued) State and Local Grants Parks and Recreation Grants $ General Services Grants Sub-Total Total State Revenue Sharing 74,282 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 Planning Charges Other Sub-Total 45,610 $ 73,210 118,820 Estimated FY 2008 Adopted FY 2009 Approved FY 2010 10,240 $ 135,619 18,620 $ 104,030 18,940 49,210 145,859 122,650 68,150 $ 73,814,918 $ 77,348,820 $ 74,044,859 $ 75,392,650 $ 77,878,150 $ 62,547,187 $ 74,600,000 $ 74,558,000 $ 79,240,000 $ 79,240,000 Charges for Current Services General Government Mutual Aid Communication $ System Dispatch Intergovernmental Agreement Sale of Codes, Regulations, and Maps Information Technology Services Indirect Cost Allocation to Enterprise Funds Urban Planning Services Public Safety Training Other Sub-Total 29,723 $ 44,559 Adopted FY 2008 33,712 $ 26,000 $ 26,000 $ 23,000 $ 23,000 991,698 852,510 1,084,000 1,110,000 1,130,000 36,134 25,000 40,000 35,000 35,000 84,000 -0- 173,730 8,391,880 108,000 -0- 103,400 -0- 103,400 -0- 6,863 -010,686 -0-025,000 385,000 -020,000 385,000 500,680 20,000 385,000 504,300 20,000 1,163,093 9,494,120 1,663,000 2,177,080 2,200,700 117,409 120,000 120,000 120,000 120,000 7,243,133 98,888 455,115 -0- 7,588,000 100,000 700,000 1,000 7,306,000 100,000 595,250 -0- 7,450,000 100,000 830,250 -0- 7,600,000 120,000 836,590 -0- 7,914,545 8,509,000 8,121,250 8,500,250 8,676,590 8,040,550 2,199,266 542,214 (59,441) 9,000,000 1,800,000 530,000 50,000 7,786,000 2,010,000 159,000 200,000 7,786,000 2,010,000 159,000 200,000 7,786,000 2,010,000 159,000 200,000 10,722,589 11,380,000 10,155,000 10,155,000 10,155,000 E-21 GENERAL FUND Actual FY 2007 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 Fire Equipment Scrap and Other Materials Unclaimed Property Other Sub-Total Recovered Expenditures Uninsured Damages Industrial Insurance Payroll Deductions Charges Reimbursement for Services Administrative Service Charges Other Sub-Total 872,234 $ 339,682 134,045 110,088 408,586 138,936 149,912 41,353 7,539 122,412 114,999 1,340,701 94,689 88,804 21,217 39,536 123,397 43,791 47,228 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 Estimated FY 2008 870,000 $ 283,600 115,900 89,900 414,900 127,000 164,400 34,000 8,600 138,600 95,600 988,800 188,400 75,700 16,300 28,900 106,300 29,300 43,800 Adopted FY 2009 960,000 $ 320,000 120,000 90,000 400,000 160,000 160,000 40,000 10,000 150,000 100,000 990,000 200,000 70,000 20,000 20,000 40,000 20,000 30,000 Approved FY 2010 960,000 320,000 120,000 90,000 400,000 160,000 160,000 40,000 10,000 150,000 100,000 1,000,000 220,000 70,000 20,000 20,000 80,000 20,000 40,000 4,239,149 3,646,000 3,820,000 3,900,000 3,980,000 $ 24,039,376 $ 33,029,120 $ 23,759,250 $ 24,732,330 $ 25,012,290 $ 1,525,366 $ 3,099 -0130,033 68,678 26,723 620,000 $ 200,000 -0160,000 40,000 100,000 499,200 $ 90,330 20,000 154,500 56,400 52,700 620,000 $ 171,100 20,400 150,000 40,000 100,000 620,000 171,100 20,810 160,000 40,000 100,000 1,753,899 1,120,000 873,130 1,101,500 1,111,910 19,746 142,419 1,878 37,053 -0686,564 40,000 200,000 2,000 65,000 -0200,000 19,100 145,700 1,800 13,100 9,930,956 396,300 40,000 200,000 2,000 65,000 12,195,010 355,000 40,000 200,000 2,000 65,000 12,196,680 355,000 887,660 507,000 10,506,956 12,857,010 12,858,680 E-22 GENERAL FUND Actual FY 2007 FINANCIAL RESOURCES Non-Revenue Receipts (Continued) Sundry Income Reimbursement Court Attorney $ Fees Employee Fees Election Campaign Contributions Open Space Contributions Other 85,518 $ Adopted FY 2008 90,000 $ Estimated FY 2008 Adopted FY 2009 64,600 $ Approved FY 2010 100,000 $ 90,000 8,017 610 11,163 348,614 8,000 50,000 10,000 155,000 8,100 4,300 14,200 328,000 8,000 5,000 15,000 360,000 8,000 5,000 15,000 360,000 453,922 313,000 419,200 488,000 478,000 Other General Revenues -0- 2,000,000 -0- 2,000,000 2,000,000 Off Duty Police Program 3,139,769 3,003,260 3,003,260 3,003,260 3,003,260 Other Funding Sources 1,654,562 10,449,250 5,921,539 19,999,250 6,509,630 7,889,812 $ 17,392,510 $ Sub-Total Total $ 20,724,085 $ 39,449,020 $ 25,961,480 Transfers to Other Funds $ (52,796,731) $ (99,582,080) $ (48,122,263) $ (43,125,080) $ (41,369,870) Certificates of Participation $ 29,727,336 $ 76,847,800 $ -0- Brought Forward $ -0- $ 29,784,790 $ Use of Fund Balance and Reserves $ -0- $ 9,506,380 $ Total General Fund $ -0- $ -0- 1,638,500 $ 788,000 $ -0- 10,724,274 $ 2,483,590 $ 1,950,810 $ 431,945,183 $ 511,588,670 $ 441,451,045 $ 469,999,920 $ 469,118,320 E-23 GENERAL FUND CHANGE HIGHLIGHTS Primary Property Tax The city's Fiscal Year 2009 projected primary property tax revenue is $604,310 higher than the Fiscal Year 2008 adopted revenue. Although the tax rate will be lower, assessed property valuations have risen, which will result in the additional revenue. The Fiscal Year 2009 levy of $10,931,690 is set at the maximum allowable primary property tax as estimated by the Pima County Assessor. For Fiscal Year 2010, the primary property tax levy is estimated to increase by $218,630. Business Privilege Tax For Fiscal Year 2009, the total projected sales tax collections decrease $6,030,000 from the Fiscal Year 2008 Adopted Budget. The current economic slowdown translates into reduced city sales tax. In Fiscal Year 2010, the budget assumes a rebounding economy that will generate a $7,240,000 increase in city sales tax revenue. [Subsequent to the city’s budget adoption, sales tax revenues are being reviewed, which will likely result in a decrease from the budgeted estimates.] Other Local Taxes Other local tax revenues projected for Fiscal Year 2009 are minimally increased by $9,000 over adopted Fiscal Year 2008 amount. Revenue increases are expected from the tourism sector and the use tax. However, these are offset by reductions in the public utility tax. The city has also ceased to collect occupational taxes, which were in this category in Fiscal Year 2008. The city now collects application fees, which are in the Licenses and Permits category. For Fiscal Year 2010, revenues are anticipated to increase by $930,000 due to an increase in use tax collections and transient occupancy (bed tax) revenues. Licenses and Permits For Fiscal Year 2009, this revenue source is increased by $3,291,000 over the adopted Fiscal Year 2008 revenues. The majority of that change is due to the change from the collection of occupational taxes, which were part of the Other Local Taxes category, to business application fees. For Fiscal Year 2010, these revenues will increase by $769,000 due to an increase in utility franchise fees and business application fees. Fines, Forfeitures, and Penalties Total revenues in Fiscal Year 2009 from all fines, forfeitures, and penalties are forecast to be $650,870 higher than Fiscal Year 2008 adopted revenues. The increase is due to additional revenues from the traffic diversion program and forfeiture collections. For Fiscal Year 2010, revenue is expected to increase another $248,420 for the same reasons. Use of Money and Property A decrease of $147,100 from the Fiscal Year 2008 adopted revenues is expected for Fiscal Year 2009. That decrease is primarily due to reduced interest earnings. For Fiscal Year 2010 no change is anticipated. Grants and Shared Taxes Fiscal Year 2009 grants and shared taxes are decreased by $1,956,170 from the Fiscal Year 2008 adopted revenues. A decrease of $3.5 million in state-shared sales tax is anticipated due to the economic slowdown. That decrease is offset by an anticipated increase of $1.5 million in auto lieu taxes. For Fiscal Year 2010, a budgeted increase of $2,485,500 is expected, because an economic rebound is anticipated. [Subsequent to the city’s budget adoption, the state’s budget was adopted and these state-shared revenues will be reduced from the adopted estimates.] State Revenue Sharing An increase in state-shared income taxes of $4,640,000 is expected for Fiscal Year 2009. The Fiscal Year 2009 distribution from the state is based on Fiscal Year 2007 state income tax collections, which were prior to the current economic slowdown. No change is anticipated for Fiscal Year 2010. [Subsequent to the city’s budget adoption, the state’s budget was adopted and this state-shared revenue will be reduced from the adopted estimates.] E-24 GENERAL FUND Charges for Current Services Total charges for current services for Fiscal Year 2009 are decreased by $8,296,790 from Fiscal Year 2008 adopted revenues. The decrease is primarily due to a correction in the category location of the indirect cost allocation from this category to the Recovered Expenditures group within the Non-Revenue Receipts category. For Fiscal Year 2010, an increase of $279,960 is expected. Excluding the relocation of the indirect cost allocation revenue, there is a decrease of $1,225,000 in Development Services revenues in Fiscal Year 2009 due to slowdowns in the housing market. That decrease is offset by increases in Parks and General Government charges. Non-Revenue Receipts These sources are projected to increase by $22,056,510 for Fiscal Year 2009, primarily due to the correction in the location of the indirect cost allocation revenues—now referred to as Administrative Service Charges—from the Charges for Current Services category and capacity for refundings of outstanding certificates of participation. For Fiscal Year 2010, Non-Revenue Receipts are anticipated to decrease by $13,487,540, because any capacity for refundings will be determined during the biennial budget update process. Transfers to Other Funds A portion of General Fund revenues is transferred to Special Revenue Funds to support the Mass Transit Fund, the ParkWise Fund, the Tucson Convention Center Fund, and Community Services Central Office Fund. For Fiscal Year 2009, the General Fund revenue allocated to other funds decreased by $56,457,000 for the following reasons: elimination of a $55,000,000 offset to Internal Service Funds for Risk Management Fund and Pension Fund revenues and a reduction in need from the General Fund of $1,457,000, which is primarily due to the projected increase in Mass Transit Fund user revenues. For Fiscal Year 2010, these transfers will decrease another $1,755,210 for the same reason. Certificates of Participation Certificates of Participation (COPs) decreased $76,847,800, because a new fund was established for this source of revenue. General Fund COPs were transferred to a Special Revenue Fund called the Capital Improvement Fund to segregate these restricted funds from unrestricted funds within the General Fund. Brought Forward Brought Forward funding in Fiscal Year 2009 is decreased by $28,996,790 from the Fiscal Year 2008 adopted amount. The criteria for establishing carryforward funding was strengthened to bring budget capacity more in line with realistic expenditure projections. Use of Fund Balance and Reserves The Use of Fund Balance and Reserves decreases by $7,022,790 for Fiscal Year 2009. This decrease is due to the completion of projects that were funded from reserves. For Fiscal Year 2010, the use of reserves will be reduced another $532,780. E-25 SPECIAL REVENUE FUNDS Actual FY 2007 FINANCIAL RESOURCES General Fund Contributions Community Services Central Office ParkWise Fund Public Safety Academy Fund Tucson Convention Center Fund Mass Transit Fund Total Licenses and Permits ParkWise Meter Collections Hooded Meter Fees Highway User Revenue Fund Total Fines, Forfeitures, and Penalties ParkWise Parking Violations Total Use of Money and Property ParkWise Parking Revenues Interest Earnings Housing Trust Fund Highway User Revenue Fund ParkWise Public Safety 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 2008 Estimated FY 2008 Adopted FY 2009 Approved FY 2010 $ -0- $ 1,258,709 7,922,040 7,574,834 36,041,148 -0- $ 1,103,820 5,265,840 2,932,320 35,280,100 277,890 $ 1,555,910 6,923,583 7,182,230 32,182,650 277,890 $ 1,431,120 -06,906,880 34,509,190 277,890 1,128,920 -06,804,430 33,158,630 $ 52,796,731 $ 44,582,080 $ 48,122,263 $ 43,125,080 $ 41,369,870 $ 403,353 $ 17,692 493,809 526,500 $ 15,000 -0- 381,000 $ 15,000 378,600 388,500 $ 15,000 300,000 390,000 15,000 200,000 $ 914,854 $ 541,500 $ 774,600 $ 703,500 $ 605,000 $ 597,664 $ 610,000 $ 590,000 $ 610,000 $ 620,000 $ 597,664 $ 610,000 $ 590,000 $ 610,000 $ 620,000 $ 2,042,532 $ 2,891,600 $ 2,015,000 $ 2,060,000 $ 2,100,000 117 640,183 58,918 12,575 -0550,000 -0-0- $ 2,754,325 $ 3,441,600 $ 2,015,000 $ 2,060,000 $ 2,100,000 $ 40,586,881 $ (9,763,403) 2,541,284 45,934,000 $ (8,041,140) 2,592,000 41,364,570 $ (8,081,950) 2,592,000 42,605,500 $ (8,014,760) 2,592,000 43,884,000 (7,780,780) 2,592,000 33,364,762 40,484,860 35,874,620 37,182,740 38,695,220 E-26 -0-0-0-0- -0-0-0-0- -0-0-0-0- SPECIAL REVENUE FUNDS Actual FY 2007 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 Parks and Recreation Grants Police Grants Transportation Grants Transportation - Regional Transportation Authority Mass Transit - Regional Transportation Authority Urban Planning Information Technology General Services Grants General Expense Pima County Bonds $ Sub-Total Total Charges for Current Services Public Safety Academy Public Transportation Full Fares Special Reduced Fares Shuttle Service Advertising Revenue County/Other Local Operating Assistance Special Needs Other Capacity for Fare Increase Sub-Total $ $ Adopted FY 2008 81,350 $ -0-0487,724 8,050 109,202 1,676,657 7,864,842 5,115,894 161,920 $ 370,830 150,000 700,000 350,000 1,264,330 1,436,700 32,012,500 19,444,000 Estimated FY 2008 161,920 $ 91,370 50,000 600,000 350,000 933,000 1,720,566 25,393,171 13,784,405 Adopted FY 2009 155,470 $ 372,370 150,000 700,000 218,000 2,240,930 1,630,270 4,878,490 34,442,600 Approved FY 2010 155,470 374,230 150,000 700,000 200,000 1,174,930 1,614,260 6,912,490 53,262,800 353,215 -0- 5,343,970 6,620,430 7,541,950 48,504 98,132 -0-02,024,660 380,000 30,000 500,000 200,000 18,726,600 280,000 -0-0-07,416,424 300,000 94,870 900,000 -012,530,700 250,000 94,870 900,000 -017,164,900 17,868,230 75,726,880 56,124,826 65,234,130 90,495,900 51,232,992 $ 116,211,740 $ 356,805 $ 887,530 $ 91,999,446 $ 102,416,870 $ 129,191,120 867,390 $ -0- $ -0- 7,038,739 1,762,439 60,191 309,341 4,536,473 7,400,000 1,800,000 38,000 350,000 3,567,000 6,867,900 2,428,400 38,000 284,500 4,114,400 7,010,000 2,480,000 40,000 290,000 4,200,000 7,150,000 2,530,000 40,000 300,000 4,280,000 418,868 54,254 -0- 330,000 205,000 -0- 428,200 208,600 -0- 440,000 200,000 1,112,330 450,000 200,000 3,049,210 14,180,305 13,690,000 14,370,000 15,772,330 17,999,210 E-27 SPECIAL REVENUE FUNDS Actual FY 2007 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 Novelty Sales Commission Revenues Facility User Fees Miscellaneous Sub-Total Total Public Housing Local Revenue 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 Parks and Recreation Grants Police Grants Urban Planning Grants Mass Transit Grants Transportation Grants Estimated FY 2008 Adopted FY 2009 Approved FY 2010 1,272,596 $ 210,658 730,205 81,130 84,401 544,993 60,111 202,094 403,413 227,380 1,588,290 $ 188,000 879,500 127,000 195,000 557,220 62,000 145,790 404,030 166,000 1,300,000 $ 181,700 866,700 96,300 42,200 455,400 81,200 232,000 544,700 147,000 1,330,000 $ 190,000 880,000 250,000 40,000 460,000 80,000 240,000 591,000 150,000 1,360,000 190,000 900,000 250,000 50,000 470,000 80,000 240,000 591,740 150,000 3,816,981 4,312,830 3,947,200 4,211,000 4,281,740 $ 18,354,091 $ 18,890,360 $ 19,184,590 $ 19,983,330 $ 22,280,950 $ 2,555,153 $ 2,280,000 $ 2,280,000 $ 2,280,000 $ 2,280,000 3,634,191 $ 3,877,660 $ -0- $ -0- $ -0- Federal Grants Public Housing Federal Revenue Conventional/Development $ Fund Central Office Cost Center Fund Assest Management Project Funds H.O.M.E. Fund Section 8 Fund Public Housing Capital Fund Miscellaneous Federal Housing Funds Lead Hazard Control Grant HOPE VI Funds Sub-Total Adopted FY 2008 -0-04,171,366 28,183,209 3,048,540 2,798,394 -0-012,146,060 27,727,370 3,671,320 5,372,980 760,246 9,966,412 12,910,554 27,727,770 853,830 3,984,243 764,050 12,573,720 6,896,150 29,113,350 6,600 4,559,400 630,140 15,083,670 6,513,900 29,721,590 -04,672,680 -01,015,691 -05,610,260 280,000 1,376,699 1,220,000 4,141,660 1,800,000 2,880,060 42,851,391 58,405,650 57,859,754 59,274,930 61,302,040 7,252,516 10,894,800 7,972,173 10,251,180 6,873,430 250,805 -0270,918 1,500 1,122,245 -0277,900 3,071,450 132,087 14,520,103 19,411,014 344,620 250,000 1,584,270 -02,874,440 300,000 598,630 15,141,670 460,000 34,726,870 27,196,910 311,560 50,000 1,808,945 -02,874,440 -0602,030 6,357,909 460,000 12,383,418 13,086,195 311,600 250,000 1,467,810 -01,123,300 300,000 599,590 5,128,060 408,000 34,431,070 15,044,300 311,600 250,000 1,386,040 -01,121,500 300,000 618,060 5,187,440 482,120 22,681,170 22,125,300 E-28 SPECIAL REVENUE FUNDS Actual FY 2007 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 95,472,210 600,000 $ 50,000 46,556,670 Adopted FY 2009 7,500,000 $ 100,000 76,914,910 Approved FY 2010 2,500,000 100,000 63,936,660 89,295,756 $ 153,877,860 $ 104,416,424 $ 136,189,840 $ 125,238,700 -0- $ -0- -0- $ -0- -0- $ -0- -0-0- 553,338 -0- -0- -0- -0- 1,078,475 715,132 325,023 1,300,580 213,295 182,208 951,000 1,586,490 -015,634,700 570,000 515,000 953,000 2,770,346 200,000 2,865,701 570,000 40,000 1,598,000 1,427,500 1,887,330 5,253,500 570,000 40,000 966,080 1,157,500 1,575,000 1,496,100 570,000 40,000 3,814,713 19,257,190 7,399,047 10,776,330 5,804,680 $ 4,368,051 $ 19,257,190 $ 7,399,047 $ 10,776,330 $ 5,804,680 $ -0- $ -0- -0- $ 9,800,000 33,414,083 $ -0- 66,452,330 $ -0- 46,455,000 -0- $ -0- $ 9,800,000 $ 33,414,083 $ 66,452,330 $ 46,455,000 $ 2,170,200 $ -0-0- 1,387,100 $ 2,874,000 139,000 1,387,100 $ 2,874,000 -0- 2,091,600 $ 1,433,000 -0- -0-0-0- $ 2,170,200 $ 4,400,100 $ 4,261,100 $ 3,524,600 $ -0- Sub-Total Total 600,000 $ 500,000 Estimated FY 2008 438,376 $ 114,962 Other Non-Revenue Receipts Contributions Highway User Revenue Fund Housing Trust Fund Impact Fees Mass Transit Fund ParkWise Certificates of Participation Capital Improvement Fund ParkWise Fund 133,827 $ -046,444,365 Sub-Total Total Adopted FY 2008 E-29 SPECIAL REVENUE FUNDS Actual FY 2007 FINANCIAL RESOURCES Use of Fund Balance Highway User Revenue Fund Tucson Convention Center Adopted FY 2008 Estimated FY 2008 Adopted FY 2009 Approved FY 2010 $ 6,428,705 $ 189,658 6,569,960 $ 109,970 8,385,994 $ -0- 2,399,690 $ -0- 1,560,690 -0- Total $ 6,618,363 $ 6,679,930 $ 8,385,994 $ 2,399,690 $ 1,560,690 Total Special Revenue Funds $ 231,658,180 $ 380,572,360 $ 322,842,547 $ 390,521,570 $ 377,506,010 E-30 SPECIAL REVENUE FUNDS CHANGE HIGHLIGHTS General Fund Contributions For Fiscal Year 2009, budgeted General Fund Contributions decreased $1,457,000 primarily due to a reduced need for the Mass Transit Fund, because of projected increases in user revenues given the current rate structure. The Public Safety Training Academy (PSTA) Fund has been eliminated as a Special Revenue Fund, because over 90% of its funding was the General Fund Contribution. Revenues and expenditures previously accounted for in the PSTA Fund are now in the General Fund. For Fiscal Year 2010, the budgeted General Fund Contributions decreases another $1,755,210. Licenses and Permits This revenue consists of parking meter collections and fees and developer in-lieu payments for road and drainage work. An increase of $162,000 in Fiscal Year 2009 is due to the inclusion in this category of developer in-lieu fees for street improvements; previously, developer in-lieu fees had incorrectly been placed in a different revenue category. Parking meter revenues have been reduced to more accurately reflect collections. For Fiscal Year 2010, these revenues are expected to decline $98,500. Fines, Forfeitures, and Penalties Parking violation revenues, the only revenue in this category, are projected to remain the same in Fiscal Year 2009 as they were for adopted for Fiscal Year 2008. In Fiscal Year 2010, an increase of $10,000 is budgeted. Use of Money and Property For Fiscal Year 2009, this revenue category is decreased by $1,381,600 from the adopted budget for Fiscal Year 2008. ParkWise’s on- and off-street parking program revenues are anticipated to be $831,600 less than adopted for Fiscal Year 2008. No interest earnings are anticipated as fund balance in the Highway User Revenue Fund is declining. For Fiscal Year 2010, an increase of $40,000 is anticipated for ParkWise parking program revenues. Grants and Shared Taxes For Fiscal Year 2009, grants and shared taxes are decreased by $13,794,870 from the adopted budget for Fiscal Year 2008. State-shared fuel taxes are expected to decrease by $3,302,120. State and Local grants are budgeted to decrease by $10,492,750; the majority of the decrease is in Transportation grants due to the rescheduling of projects. For Fiscal Year 2010, grants and shared taxes are expected to increase $26,774,250. Use of state-shared fuel taxes are anticipated to increase $1,512,480 and state and local grants by $25,261,770, which is primarily due to the rescheduling of Transportation grants. Charges for Current Services Charges for services in the Special Revenue Funds are from two sources: Public Transportation (Sun Tran and Van Tran) and the Tucson Convention Center. In Fiscal Year 2009, these user fees are projected to increase by $1,092,970 over the adopted Fiscal Year 2008 revenues. That increase is due to a projected increase in Public Transportation user revenues given the current rate structure and the inclusion of revenue capacity for a proposed fare increases. For Fiscal Year 2010, the increase of $2,297,620 is primarily due to the same reasons. Public Housing Local Revenue No change is anticipated in either Fiscal Year 2009 or Fiscal Year 2010 in these revenues. Federal Grants Fiscal Year 2009 federal funding is anticipated to be $17,688,020 less than the adopted budget for Fiscal Year 2008 based on anticipated grant awards and the completion of projects. For Fiscal Year 2010, the use of federal grant revenue is expected to decrease another $10,951,140. E-31 SPECIAL REVENUE FUNDS Non-Revenue Receipts The $8,480,860 decrease in Fiscal Year 2009 is primarily due to more realistic programming of impact fee revenue. A new inclusion to this category is the Housing Trust Fund revenues, which were previously part of the General Fund. For Fiscal Year 2010, a decrease of $4,971,650 is anticipated due to the spending down of programmed impact fees. Certificates of Participation In Fiscal Year 2009, certificates of participation (COPs) funding will increase $56,652,330, because COPs previously budgeted in the General Fund were transferred to the Capital Improvement Fund. For Fiscal Year 2010, the use of COPs decreases by $19,997,330 due to the anticipated completion of projects. Brought Forward Brought forward funding reflects funds carried forward from the prior year. In Fiscal Year 2009, funds carried forward decrease by $875,500. For Fiscal Year 2010, it is assumed that no carryforward from Fiscal Year 2009 will be needed. Use of Fund Balance For Fiscal Year 2009, the use of fund balances is decreased by $4,280,240 from the adopted budget for Fiscal Year 2008. The decrease is due to reduced expenditures of Highway User Revenue Funds by Transportation to reflect an anticipated decrease in funding from state-shared gasoline taxes. For Fiscal Year 2010, the use of fund balance decreases by $839,000. E-32 ENTERPRISE FUNDS FINANCIAL RESOURCES Actual FY 2007 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 7,269,073 $ 19,702,761 3,476,960 8,668,618 1,197,284 198,086 2,265,689 7,148,100 $ 20,401,890 3,321,240 8,000,000 1,248,480 164,000 1,396,380 7,750,370 $ 20,307,850 3,583,740 8,419,150 1,074,040 207,970 2,097,750 7,870,000 $ 20,612,500 3,637,500 8,550,000 1,090,000 200,000 2,000,000 8,000,000 20,922,750 3,692,250 8,680,000 1,105,000 200,000 2,000,000 42,778,471 41,680,090 43,440,870 43,960,000 44,600,000 582,101 557,559 150,825 -0499,544 479,710 -0-0-0- 196,000 314,500 181,500 410,000 8,424,000 1,000,000 2,983,380 (3,146,270) -0- 535,000 325,000 381,500 210,000 6,419,650 250,000 -0-0481,190 500,000 325,000 185,130 410,000 6,000,000 1,516,570 -0-06,929,370 500,000 325,000 185,130 410,000 9,150,000 1,516,570 -0-07,917,180 2,269,739 10,363,110 8,602,340 15,866,070 20,003,880 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 Use of Fund Balance* Sub-Total Total Golf Course Fund El Rio Randolph Fred Enke Silverbell Other Total Adopted FY 2008 Estimated FY 2008 Adopted FY 2009 Approved FY 2010 $ 45,048,210 $ 52,043,200 $ 52,043,210 $ 59,826,070 $ 64,603,880 $ 1,167,307 $ 4,896,283 1,466,189 1,227,187 3,667,796 1,304,460 $ 5,557,200 1,665,980 1,816,900 719,280 1,304,460 $ 5,557,200 1,665,980 1,816,900 719,280 1,304,460 $ 5,557,200 1,665,980 1,816,900 719,280 1,304,460 5,557,200 1,665,980 1,816,900 719,280 $ 12,424,762 $ 11,063,820 $ 11,063,820 $ 11,063,820 $ 11,063,820 *Subsequent to budget adoption, the Mayor and Council approved Environmental Services rate changes that will result in increased operating revenues and decreased use of fund balance. E-33 ENTERPRISE FUNDS Actual FY 2007 FINANCIAL RESOURCES Water Utility Operating Water Revenue Potable Water Sales Central Arizona Project Surcharge Water Conservation Fee Reclaimed Water Sales Connection Fees Development Plan Review/ Inspection Fees Miscellaneous Revenue Thornydale/Tangerine Developer Agreements 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 Water Infrastructure Replacement Fund Miscellaneous Grants Sub-Total $ Adopted FY 2008 Estimated FY 2008 Adopted FY 2009 Approved FY 2010 93,544,938 $ 108,113,000 $ 101,839,000 $ 113,793,840 $ 122,305,620 1,858,060 1,938,000 2,371,000 2,437,000 2,491,000 -06,293,387 3,628,019 1,433,123 -07,038,000 2,800,000 1,700,000 -07,444,000 2,244,000 1,409,000 1,452,300 8,340,000 2,351,000 1,685,000 1,452,300 9,899,000 2,351,000 1,685,000 5,072,056 -0- 6,017,000 -0- 6,358,860 1,241,000 3,101,000 2,000,000 3,383,000 -0- 2,921,082 3,003,000 2,984,000 3,014,000 3,044,000 114,750,665 130,609,000 125,890,860 138,174,140 146,610,920 1,760,212 1,044,791 1,696,000 908,000 1,236,000 908,000 1,219,000 978,000 1,228,000 1,015,440 6,664,975 9,657,375 (16,252) -0- 8,181,000 1,306,000 815,000 2,177,010 -0- 4,323,000 494,000 261,000 4,696,000 6,000,000 4,611,000 609,000 11,000 -05,000,000 6,456,000 854,000 -0-0-0- 612,207 779,990 698,000 692,000 220,000 19,723,308 15,863,000 18,616,000 13,120,000 9,773,440 Total $ 134,473,973 $ 146,472,000 $ 144,506,860 $ 151,294,140 $ 156,384,360 Total Enterprise Funds $ 191,946,945 $ 209,579,020 $ 207,613,890 $ 222,184,030 $ 232,052,060 E-34 ENTERPRISE FUNDS CHANGE HIGHLIGHTS Environmental Services Environmental Services projected revenues for Fiscal Year 2009 are increased by $7,782,870 over the Fiscal Year 2008 adopted revenues. Operating revenues are expected to increase $2,279,910 from collection and landfill charges based on customer demand. Non-operating revenue is expected to increase $5,502,960, primarily due to an increased use of fund balance to cover needed capital expenditures. For Fiscal Year 2010, operating revenues are anticipated to increase by $640,000 and non-operating revenues by $4,137,810. [Subsequent to budget adoption, the Mayor and Council approved Environmental Services rate changes that will result in increased operating revenues and decreased use of fund balance.] Golf Fund Golf revenues are projected to remain the same in Fiscal Years 2009 and 2010 as was adopted for Fiscal Year 2008. Water Utility The projected revenue for Fiscal Year 2009 reflects an increase of $4,822,140 over the Fiscal Year 2008 adopted amount based on growth in service demand and a rate increase that will generate more in water sale revenues. For Fiscal Year 2010, use of revenue is projected to increase another $5,090,220. E-35 DEBT SERVICE FUNDS Actual FY 2007 FINANCIAL RESOURCES General Obligation Debt Service Secondary Property Tax Adopted FY 2008 Estimated FY 2008 Adopted FY 2009 Approved FY 2010 $ 23,331,690 $ 28,022,940 $ 27,962,810 $ 24,899,560 $ 24,919,400 $ 23,331,690 $ 28,022,940 $ 27,962,810 $ 24,899,560 $ 24,919,400 $ 16,863,735 $ -0- 16,837,200 $ -0- 16,837,200 $ -0- 17,032,660 $ 12,500,000 17,069,180 -0- Total $ 16,863,735 $ 16,837,200 $ 16,837,200 $ 29,532,660 $ 17,069,180 Total Debt Service Funds $ 40,195,425 $ 44,860,140 $ 44,800,010 $ 54,432,220 $ 41,988,580 Total Street and Highway Debt Service State Shared Taxes Refunding Proceeds E-36 DEBT SERVICE FUNDS CHANGE HIGHLIGHTS General Obligation Debt Service General obligation debt service is funded from the secondary property tax. For Fiscal Year 2009, the revenue from the secondary property tax levy is decreased by $3,123,380 from the adopted Fiscal Year 2008 revenue. The decrease is due to the repayment of Environmental Services general obligation bonds switching from the secondary property tax to Environmental Services revenues. For Fiscal Year 2010, the secondary property tax levy will increase by $19,840. 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 2009, this debt service will increase $12,695,460 over the adopted Fiscal Year 2008 budget. Changes in the debt payment schedule accounts for $195,460 of the increase. Capacity of $12,500,000 was included for a potential refunding of outstanding street and highway revenue bonds. For Fiscal Year 2010, this debt service requirement will decrease by $12,463,480. This decrease is due to no capacity for refundings, which is offset by a slight change in the debt payment schedule. E-37 INTERNAL SERVICE AND FIDUCIARY FUNDS Actual FY 2007 FINANCIAL RESOURCES Fleet Services Internal Service Fund Total Facilities Management Internal Service Fund Total Risk Management Internal Service Fund Total Tucson Supplemental Retirement System Fund Total Adopted FY 2008 Estimated FY 2008 Adopted FY 2009 Approved FY 2010 $ 23,917,219 $ -0- $ 25,155,613 $ 25,993,950 $ 25,988,800 $ 23,917,219 $ -0- $ 25,155,613 $ 25,993,950 $ 25,988,800 $ 15,086,759 $ -0- $ 15,473,690 $ 21,182,500 $ 19,907,500 $ 15,086,759 $ -0- $ 15,473,690 $ 21,182,500 $ 19,907,500 $ 18,396,124 $ 15,000,000 $ 15,000,000 $ 15,000,000 $ 15,000,000 $ 18,396,124 $ 15,000,000 $ 15,000,000 $ 15,000,000 $ 15,000,000 $ 60,313,408 $ 40,000,000 $ 48,000,000 $ 48,000,000 $ 48,000,000 $ 60,313,408 $ 40,000,000 $ 48,000,000 $ 48,000,000 $ 48,000,000 Total Internal Service Funds $ 117,713,510 $ 55,000,000 $ 103,629,303 $ 110,176,450 $ 108,896,300 E-38 INTERNAL SERVICE AND FIDUCIARY FUNDS CHANGE HIGHLIGHTS Home Rule and Government Accounting Standards require that the city budget include these internal revenues, even though the requisite revenue to cover department expenditures is already included in the external revenue categories (i.e., General Fund, Special Revenue Funds, etc.). Fleet Services Internal Service Fund This internal revenue source was not budgeted for in Fiscal Year 2008. These revenues are earned by charging departments for vehicle-related expenditures. The anticipated revenue for Fiscal Year 2009 is $25,993,950. For Fiscal Year 2010, the revenue is less by $5,150. Facilities Management Internal Service Fund This internal revenue source was not budgeted for in Fiscal Year 2008. These revenues are earned by charging departments for building maintenance and architectural and communication maintenance services. The anticipated revenue for Fiscal Year 2009 is $21,182,500. For Fiscal Year 2010, there is a decrease of $1,275,000 due to a reduced use of Clean Renewable Energy Bonds (CREBS) for capital projects. Risk Management Internal Service Fund There is no change in projected revenues for Fiscal Years 2009 and 2010 from the adopted budget for Fiscal Year 2008. Tucson Supplemental Retirement System Fund For Fiscal Year 2009, there is a budgeted increase of $8,000,000. For Fiscal Year 2010, there is no anticipated increase. E-39 CAPITAL PROJECTS FUNDS FINANCIAL RESOURCES Actual FY 2007 General Obligation Bond Funds $ Proceeds* Environmental Services Bond Funds Proceeds Street and Highway Revenue Bond Funds Proceeds Water Revenue Bond Funds Proceeds 11,518,733 $ Total Capital Projects Funds $ Adopted FY 2008 15,305,200 $ Estimated FY 2008 Adopted FY 2009 Approved FY 2010 7,966,401 $ 3,790,600 $ 5,414,700 2,773,340 -0- 2,953,240 2,115,700 1,380,000 2,838,542 63,200 -0- -0- -0- 25,523,763 45,579,900 39,706,500 40,773,000 33,955,000 42,654,378 $ 60,948,300 $ 50,626,141 $ 46,679,300 $ 40,749,700 *For Adopted Fiscal Year 2008, included general obligation bonds authorized for Environmental Services that are now shown separately. E-40 CAPITAL PROJECTS FUNDS CHANGE HIGHLIGHTS General Obligation Bonds General obligation bonds are used to finance capital projects other than street and water projects. The Fiscal Year 2009 use of these bonds is decreased by $11,514,600 based on project completions and because Environmental Services projects were moved to a separate bond category. For Fiscal Year 2010, this revenue source is anticipated to increase by $1,624,100. Environmental Services Bond Funds General obligation bonds used for Environmental Services projects were authorized in 2000, which was prior to Environmental Services becoming an enterprise fund. During Fiscal Year 2008, it was determined that these general obligation bonds need to be accounted for separately. For Fiscal Year 2009, the use of these bonds totals $2,115,700. For Fiscal Year 2010, there is $1,380,000 of capacity included from a proposed new authorization. Street and Highway Revenue Bonds Street and highway revenue bonds are used to finance Transportation’s street and right-of-way capital projects. For Fiscal Years 2009 and 2010, use of these bonds is zero because all authorized street and highway revenue bonds have been expended. Water Revenue Bonds The water revenue bonds used to finance water capital projects in Fiscal Year 2009 are from the 2005 authorization. For Fiscal Year 2009, the use of these bonds is decreased by $4,806,900 from the adopted budget for Fiscal Year 2008. The remaining $9,939,000 of the 2005 authorization will be spent in Fiscal Year 2010. In Fiscal Year 2010, another $24,016,000 is included for capacity from a proposed new authorization. E-41 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 2009 is $10,931,690 or $604,310 more than last year's actual levy of $10,327,380. (The adopted levy for Fiscal Year 2008 was $10,327,380.) The tax rate for Fiscal Year 2009 will decrease to $0.3231 per $100 of assessed valuation from $0.3296 in Fiscal Year 2008. The estimated property tax for Fiscal Year 2010 is $11,150,320, which is an increase of $218,630; the rate will decrease to $0.3169. The following table and graph show the primary assessed valuations, levies, and rates since Fiscal Year 2005. PRIMARY PROPERTY TAX ($000s) Fiscal Year 2005 2006 2007 2008 2009 (Estimate) 2010 (Estimate) Primary Assessed Valuation Percent Change Maximum Allowable Tax Levy Primary Tax Levy Increase (Decrease) Percent Change Rate per $100 Assessed Valuation $ 2,477,050 2,641,419 2,839,163 3,133,309 3,383,379 3,518,714 5.6% 6.6% 7.5% 10.4% 8.0% 4.0% $ 8,812 9,175 9,733 10,327 10,931 11,150 $ 8,746 9,163 9,684 10,327 10,931 11,150 $ 3,848 417 521 643 604 219 78.6% 4.8% 5.7% 6.6% 5.8% 2.0% $ 0.3531 0.3469 0.3411 0.3296 0.3231 0.3169 PRIMARY PROPERTY TAX LEVY ($000s) $15,000 $10,000 $8,746 $9,163 $9,684 $10,327 $10,931 $11,150 $5,000 2005 2006 2007 2008 E-42 2009 2010 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 2009 is $24,899,560, a decrease of $3,063,250 from the Fiscal Year 2008 actual levy of $27,962,810. (The adopted levy for Fiscal Year 2008 was $28,022,940.) The decrease is primarily due to Environmental Services paying the debt service on the general obligation bonds that fund its capital projects. The secondary property tax rate for Fiscal Year 2009 is estimated at $0.6370 per $100 of assessed valuation, a decrease from $0.8025 in Fiscal Year 2008. For Fiscal Year 2010, the estimated secondary property tax levy is $24,919,400; the tax rate will be $0.6130. The following table and graph show secondary assessed valuations, levies, and rates since Fiscal Year 2005. SECONDARY PROPERTY TAX ($000s) Fiscal Year Secondary Assessed Valuation Percent Change Secondary Tax Levy Increase (Decrease) 2005 2006 2007 2008 2009 (Estimate) 2010 (Estimate) $ 2,558,231 2,722,916 3,016,231 3,484,462 3,908,857 4,065,211 5.4% 6.4% 10.8% 15.6% 12.2% 4.0% $ 21,274 24,220 26,682 27,963 24,900 24,919 (1,735) 2,946 2,462 1,281 (3,063) 19 Percent Change (7.5%) 13.8% 10.2% 4.80% (10.9%) less than 1% SECONDARY PROPERTY TAX LEVY ($000s) $30,000 $25,000 $26,682 $27,963 $24,900 $24,220 $24,919 $21,274 $20,000 $15,000 2005 2006 2007 2008 E-43 2009 2010 Rate per $100 Assessed Valuation $ 0.8316 0.8895 0.8846 0.8025 0.6370 0.6130 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. The city sales tax estimate of $206,840,000 for Fiscal Year 2009 is an increase of $4,451,000 over the revised estimate of $202,389,000 for Fiscal Year 2008. (The adopted budget for Fiscal Year 2008 was $212,870,000.) The recent economic slowdown has resulted in less than 1% growth for Fiscal Year 2008; modest growth of 2.2% is anticipated for Fiscal Year 2009. For Fiscal Year 2010, the estimated city sales tax revenue of $214,080,000 is an increase of 3.5% as the economy is anticipated to start recovering. [Subsequent to budget adoption, the sales tax revenue estimated will be reviewed in light of the continuing economic downturn. It is expected that city sales tax revenue estimates will decrease from the budgeted estimates.] The following table and graph show city business privilege tax collections since Fiscal Year 2005. CITY BUSINESS PRIVILEGE (SALES) TAX ($000s) Fiscal Year Revenues Increase (Decrease) 2005 2006 2007 2008 (Estimate) 2009 (Estimate) 2010 (Estimate $ 176,654 190,385 202,340 202,389 206,840 214,080 $ 9,309 13,731 11,955 49 4,451 7,240 Percent Change 5.6% 7.8% 6.3% less than 1.0% 2.2% 3.5% CITY BUSINESS PRIVILEGE (SALES) TAX Revenues ($000s) TRANSIENT OCCUPANCY AND ROOM TAXES Revenues ($000s) $240,000 $15,000 $200,000 $10,000 $10,768 $202,340 $12,276 $202,389 2007 2005 2008 2006 $13,195 $206,840 $13,121 $214,080 $190,385 $9,146 $176,654 $6,395 $160,000 $5,000 2005 2003 2006 2004 E-44 2009 2007 2010 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 2009 total $13,740,000, an increase of $242,000 from the estimate of $13,498,000 for Fiscal Year 2008. (The adopted budget for Fiscal Year 2008 was $13,121,000.) For Fiscal Year 2010, transient occupancy and room taxes are estimated to increase by $500,000 for a total of $14,200,000. [Subsequent to the city’s budget adoption, revenue projections were revisted; these revenue sources are expected to be less than the adopted estimates.] The following table and graph show Transient Occupancy and Room Tax collections since Fiscal Year 2005. The large increases in Fiscal Years 2005 and 2006 reflect the rebounding of the tourism sector of the Tucson economy after post-9/11 declines. TRANSIENT OCCUPANCY AND ROOM TAXES ($000s) Fiscal Year Revenues 2005 2006 2007 2008 (Estimate) 2009 (Estimate) 2010 (Estimate) $ 10,768 12,276 12,980 13,498 13,740 14,240 Increase (Decrease) Percent Change $ 1,622 1,508 704 518 242 500 17.7% 14.0% 5.7% 4.0% 1.8% 3.6% TRANSIENT OCCUPANCY AND ROOM TAXES Revenues ($000s) $16,000 $12,276 $12,000 $12,980 $13,498 $13,740 $14,240 $10,768 $8,000 2005 2006 2007 2008 E-45 2009 2010 LICENSES AND PERMITS Revenues from licenses and permits include business license application and renewal fees, sign and street work permits, parking meter collections, utility franchises, cable television, refuse hauling permits, and telecommunications licenses and franchise fees. These revenues are accounted for in both the General Fund and the Special Revenue Funds. 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 2009, excluding utility franchise fees, is estimated to total $11,384,500 ($10,681,000 in the General Fund and $703,500 in the Special Revenue Funds). This is a 10.4% increase over the estimate of $10,310,600 for Fiscal Year 2008. (The adopted budget for Fiscal Year 2008 was $8,311,500.) The increases in Fiscal Years 2008 and 2009 are due the new business license policy that went into effect on January 1, 2008. For Fiscal Year 2010, revenues from this source are projected to increase to $11,445,000 ($10,840,000 in the General Fund and $605,000 in the Special Revenue Funds). The following table and graph show revenues from licenses and permits since Fiscal Year 2005. LICENSES AND PERMITS ($000s) Fiscal Year Increase (Decrease) Revenues 2005 2006 2007 2008 (Estimate) 2009 (Estimate) 2010 (Estimate) $ 6,560 7,363 8,324 10,311 11,384 11,445 Percent Change $ (55) 803 961 1,987 1,073 61 (0.8%) 12.2% 13.0% 23.8% 10.4% less than 1.0% LICENSES AND PERMITS Revenues ($000s) $15,000 $10,311 $10,000 $6,560 $7,363 $11,384 $11,445 $8,324 $5,000 2005 2006 2007 2008 E-46 2009 2010 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 2009 total $22,330,000, which is an increase of $580,000 over the estimate of $21,750,000 for Fiscal Year 2008. (The adopted budget for Fiscal Year 2008 was $22,080,000.) The increase of $580,000 is almost solely due to anticipated growth in utility franchise fees. For Fiscal Year 2010, these revenues are anticipated to grow another $610,000 for a total of $22,940,000. The minimal change from Fiscal Year 2007 to Fiscal Year 2008 is due to the current economic slowdown. The increases for Fiscal Years 2009 and 2010 are based on an assumption of a recovering economy over the next few years. The following table and graph show revenues from public utility tax and utility franchise fees since Fiscal Year 2005. PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES ($000s) Fiscal Year Public Utility Tax Utility Franchise Fees Combined Revenues Increase (Decrease) 2005 2006 2007 2008 (Estimate) 2009 (Estimate) 2010 (Estimate) $ 7,655 7,585 7,177 7,084 7,080 7,080 $ 12,755 13,606 14,571 14,666 15,250 15,860 $ 20,410 21,191 21,748 21,750 22,330 22,940 $ 906 781 557 2 580 610 PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES Revenues ($000s) $24,000 $22,940 $22,330 $22,000 $21,191 $21,748 $21,750 2007 2008 $20,410 $20,000 2005 2006 E-47 2009 2010 Percent Change 4.6% 3.8% 2.6% less than 1.0% 2.7% 2.7% 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. Fines and penalty revenues are accounted for in both the General Fund and the Special Revenue Funds. Forfeitures, which are accounted for in the General Fund, are restricted for specific law enforcement expenses. The Fiscal Year 2009 estimate of $14,916,720 ($14,306,720 in the General Fund and $610,000 in Special Revenue Funds) is $359,760 more than the estimate of $14,556,960 for Fiscal Year 2008. (The adopted budget for Fiscal Year 2008 was $14,265,850.) The increase is primarily from fines received through the Civil Traffic Diversion Program. For Fiscal Year 2010, revenue projections from these sources total $15,175,140 ($14,555,140 in the General Fund and $620,000 in Special Revenue Funds), which is an increase of another $258,420 from traffic and court fines. The following table and graph show revenues from fines, forfeitures, and penalties since Fiscal Year 2005. FINES, FORFEITURES, AND PENALTIES ($000s) Fiscal Year Revenues Increase (Decrease) Percent Change 2005 2006 2007 2008 (Estimate) 2009 (Estimate) 2010 (Estimate) $ 10,888 11,952 12,792 14,557 14,917 15,175 $ 1,209 1,064 840 1,765 360 258 12.5% 9.8% 7.0% 13.8% 2.5% 1.7% FINES, FORFEITURES, AND PENALTIES Revenues ($000s) $18,000 $14,557 $15,000 $12,000 $14,917 $15,175 2009 2010 $12,792 $10,888 $11,952 $9,000 2005 2006 2007 2008 E-48 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 2009 are estimated to be $24,810,000, which is an increase of $482,000 over the estimate of $24,328,000 for Fiscal Year 2008. (The adopted budget for Fiscal Year 2008 was $23,260,000.) For Fiscal Year 2010, vehicle license tax revenue is anticipated to grow another $500,000 for a total of $25,310,000. [Subsequent to the city’s budget adoption, the state adopted its budget, which resulted in a reduction in the city’s adopted estimates.] The following table and graph show the City of Tucson’s share since Fiscal Year 2005. VEHICLE LICENSE TAX ($000s) Fiscal Year City of Tucson’s Distribution Increase (Decrease) $ 23,188 23,134 23,430 24,328 24,810 25,310 $ 2,110 (54) 296 898 482 500 2005 2006 2007 2008 (Estimate) 2009 (Estimate) 2010 (Estimate) Percentage Change 10.0% (0.2%) 1.3% 3.8% 2.0% 2.0% VEHICLE LICENSE TAX Revenues ($000s) $28,000 $26,000 $24,328 $24,000 $23,188 $23,134 $23,430 2006 2007 $24,810 $25,310 $22,000 2005 2008 E-49 2009 2010 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. In the past couple years the city has received less from the state-shared sales tax due to the mid-decade census and an economic slowdown. For the adopted budget, the economy was expected to recover modestly, bringing in additional revenue. The City of Tucson's share of state sales tax for Fiscal Year 2009 is estimated to be $50,460,000, an increase of $889,000 more than the estimate of $49,571,000 for Fiscal Year 2008. (The adopted budget for Fiscal Year 2008 was $53,970,000.) For Fiscal Year 2010, a $2,040,000 increase is anticipated for revenue totaling $52,500,000. [Subsequent to the adoption of the city’s budget, state adopted its budget, which resulted in a reduction the city’s budgeted estimates.] The following table and graph show the state sales tax allocations to the City of Tucson since Fiscal Year 2005. STATE SALES TAX ($000s) Fiscal Year 2005 2006 2007 2008 (Estimate) 2009 (Estimate) 2010 (Estimate) Total Distribution To Cities Percent Change $ 380,830 431,675 457,371 450,645 458,727 477,273 10.9% 13.4% 5.9% (1.5%) 1.8% 4.0% City of Tucson's Share Percent Amount 12.0% 12.0% 11.0% 11.0% 11.0% 11.0% Increase (Decrease) $ 45,700 51,801 50,311 49,571 50,460 52,500 4,483 6,101 (1,490) (740) 889 2,040 STATE SALES TAX City of Tucson's Share ($000s) $60,000 $55,000 $50,000 $51,801 $52,500 $50,311 $49,571 $50,460 2007 2008 2009 $45,700 $45,000 2005 2006 E-50 2010 Percent Change 10.9% 13.3% (2.9%) (1.5%) 1.8% 4.0% STATE REVENUE SHARING Incorporated cities and towns are prohibited from imposing local income taxes, but in exchange they receive a share of net individual and corporate income taxes collected by the state. Distributions are made to cities and towns two fiscal years following the fiscal year in which the state collects the income taxes. The portion (of net income taxes collected two years earlier) currently distributable to incorporated cities and towns was set by statute at 15%. For Fiscal Year 2004, the state changed the rate to 14.8% by the state. For Fiscal Year 2005 and thereafter, the rate has been reinstated to 15%. Each city’s share is allocated in proportion to its population compared to the total population of the state. As a result of the mid-decade census, Tucson dropped in proportionate population of the state, which has diminished our distribution of this state-shared revenue. For Fiscal Year 2009, this revenue sharing is not strictly formula-based, but an allocation agreed to in budget balancing legislation. 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 $79,240,000 for Fiscal Year 2009, which is an increase of $4,682,000 more than the estimate of $74,558,000 for Fiscal Year 2008. (The adopted budget for Fiscal Year 2008 was $74,600,000.) For Fiscal Year 2010, no increase is anticipated. The Fiscal Year 2010 revenue sharing will be based on tax collections for 2008, which is a year of economic slowdown. [Subsequent to the city’s budget adoption, the state adopted its budget, which resulted in a reduction to the city’s budgeted estimate.] The following table and graph show the state income tax distributions to the City of Tucson since Fiscal Year 2005. STATE REVENUE SHARING ($000s) Fiscal Year 2005 2006 2007 2008 (Estimate) 2009 (Estimate) 2010 (Estimate) Total Distribution To Cities Percent Change $ 381,458 437,442 568,609 677,800 720,364 720,364 4.0% 14.7% 30.0% 19.2% 6.3% 0.0% Tucson’s Share Percent Amount 12.0% 12.0% 11.0% 11.0% 11.0% 11.0% $ 45,775 52,493 62,547 74,558 79,240 79,240 Increase (Decrease) Percent Change $ 1,752 6,718 10,054 12,011 4,682 -0- 4.0% 14.7% 19.1% 19.2% 6.3% 0.0 % STATE REVENUE SHARING City of Tucson's Share ($000s) $100,000 $74,558 $80,000 $79,240 $79,240 2009 2010 $62,547 $52,493 $60,000 $45,775 $40,000 2005 2006 2007 E-51 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. After a decline in Fiscal Year 2007 due to the impact of the mid-decade census, the city’s HURF distribution in Fiscal Year 2008 returned to its Fiscal Year 2006 level. The city’s share of HURF distributions for Fiscal Year 2009 from the state is estimated to be $51,623,400, which is an increase of $1,503,580 over the estimate of $50,119,820 for Fiscal Year 2008. (The adopted budget for Fiscal Year 2008 was $54,730,060.) For Fiscal Year 2010, another $1,549,000 increase is anticipated for a total of $53,172,400. The following table and graph show the HURF allocations to the City of Tucson since Fiscal Year 2005. HIGHWAY USER REVENUE FUND ALLOCATION ($000s) Increase 27.5% Share 3% Share Total (Decrease) Fiscal Year 2005 2006 2007 2008 (Estimate) 2009 (Estimate) 2010 (Estimate) $ 41,332 41,976 40,587 41,364 42,605 43,884 $ 7,955 8,132 7,100 8,755 9,018 9,288 $ 49,287 50,108 47,687 50,119 51,623 53,172 $ 2,556 821 (2,421) 2,432 1,504 1,549 HIGHWAY USER REVENUE FUND ALLOCATION ($000s) $55,000 $53,172 $51,623 $50,000 $49,287 $45,000 2005 $50,119 $50,108 $47,687 2006 2007 2008 E-52 2009 2010 Percent Change 5.5% 1.7% (4.8%) 5.1% 3.0% 3.0% 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 2009 which is no change from the Fiscal Year 2008 estimated amount. (The adopted budget for Fiscal Year 2008 was also $2,592,000.) For Fiscal Year 2010, no change is anticipated. The following table shows the LTAF distribution to the City of Tucson since Fiscal Year 2005. LOCAL TRANSPORTATION ASSISTANCE FUND ($000s) Fiscal Year 2005 2006 2007 2008 (Estimate) 2009 (Estimate) 2010 (Estimate) Tucson's Share Increase (Decrease) $ 2,646 2,592 2,541 2,592 2,592 2,592 $ (44) (54) (51) 51 -0-0- E-53 Percent Change (1.6%) (2.0%) (2.0%) 2.0% 0.0% 0.0% E-54 TEN-YEAR ADOPTED CITY STAFFING COMPARISON WITH FISCAL YEARS 2009 AND 2010 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 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Adopted FY 2009 Approved FY 2010 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 9.50 42.00 48.00 38.50 112.00 9.50 42.00 48.00 59.00 112.00 217.00 248.00 232.75 254.75 228.25 235.75 215.00 234.50 223.50 253.50 250.00 270.50 145.30 167.00 528.00 265.50 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 11.00 158.30 148.75 741.00 -062.00 11.00 158.30 148.75 745.00 -062.00 12.00 158.30 148.75 745.00 -062.00 12.00 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 39.00 749.50 1,532.50 154.75 39.00 749.50 1,532.50 154.75 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 3,588.30 3,601.80 3,601.80 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- 119.00 263.00 403.50 580.00 41.00 -0- 119.00 263.00 403.50 580.00 41.00 -0- 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 1,406.50 1,406.50 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- -0-063.75 -0- -0-063.75 -0- 86.75 82.00 86.00 85.50 85.50 78.75 93.25 93.75 63.75 63.75 63.75 63.75 E-55 TEN-YEAR ADOPTED CITY STAFFING COMPARISON WITH FISCAL YEARS 2009 AND 2010 DEPARTMENTS Support Services Budget and Research Finance General Services Human Resources Information Technology Procurement Sub-Total Non-Departmental General Expense Sub-Total Internal Service and Fiduciary Funds Risk Management Internal Service Fund Tucson Supplemental Retirement System Fiduciary Fund Sub- Total Total FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Adopted FY 2009 Approved FY 2010 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 18.00 132.00 341.00 32.00 100.16 64.00 18.00 132.00 341.00 32.00 100.16 64.00 719.12 740.12 756.37 756.37 729.66 699.71 720.71 720.71 724.71 702.16 687.16 687.16 -0- -0- 3.00 5.50 5.75 4.75 4.75 4.75 14.75 4.00 4.00 4.00 -0- -0- 3.00 5.50 5.75 4.75 4.75 4.75 14.75 4.00 4.00 4.00 -0-0- -0-0- -0-0- -0-0- -0-0- -0-0- -0-0- -0-0- -0-0- -0-0- 14.00 1.00 14.00 1.00 -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- 15.00 15.00 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 6,031.21 6,028.21 6,048.71 E-56 FULL-TIME EQUIVALENT POSITIONS GENERAL PURPOSE FUNDS AND OTHER FUNDS FISCAL YEARS 2009 AND 2010 General Purpose Adopted Fiscal Year 2009 Other Total General Purpose Approved Fiscal Year 2010 Other Total Elected and Official Mayor and Council City Manager City Clerk City Attorney 51.50 48.00 38.50 102.00 -0-0-010.00 51.50 48.00 38.50 112.00 51.50 48.00 59.00 102.00 -0-0-010.00 51.50 48.00 59.00 112.00 Sub-Total 240.00 10.00 250.00 260.50 10.00 270.50 156.30 9.05 743.00 62.00 12.00 2.00 139.70 2.00 -0-0- 158.30 148.75 745.00 62.00 12.00 156.30 9.05 743.00 62.00 12.00 2.00 139.70 2.00 -0-0- 158.30 148.75 745.00 62.00 12.00 39.00 735.75 1,499.50 -0- -013.75 33.00 154.75 39.00 749.50 1,532.50 154.75 39.00 735.75 1,499.50 -0- -013.75 33.00 154.75 39.00 749.50 1,532.50 154.75 3,256.60 345.20 3,601.80 3,256.60 345.20 3,601.80 -0-028.00 -041.00 119.00 263.00 375.50 580.00 -0- 119.00 263.00 403.50 580.00 41.00 -0-028.00 -041.00 119.00 263.00 375.50 580.00 -0- 119.00 263.00 403.50 580.00 41.00 69.00 1,337.50 1,406.50 69.00 1,337.50 1,406.50 Neighborhood Services City Court Community Services Fire Neighborhood Resources Office of Equal Opportunity Programs and Independent Police Review Office of Public Defender Parks and Recreation Police Tucson City Golf Sub-Total Environment and Development Development Services Environmental Services Transportation Tucson Water Urban Planning and Design Sub-Total E-57 FULL-TIME EQUIVALENT POSITIONS GENERAL PURPOSE FUNDS AND OTHER FUNDS FISCAL YEARS 2009 AND 2010 General Purpose Strategic Initiatives Tucson Convention Center Adopted Fiscal Year 2009 Other Total General Purpose Approved Fiscal Year 2010 Other Total 63.75 -0- 63.75 63.75 -0- 63.75 63.75 -0- 63.75 63.75 -0- 63.75 18.00 132.00 109.00 32.00 100.16 63.00 -0-0232.00 -0-01.00 18.00 132.00 341.00 32.00 100.16 64.00 18.00 132.00 109.00 32.00 100.16 63.00 -0-0232.00 -0-01.00 18.00 132.00 341.00 32.00 100.16 64.00 454.16 233.00 687.16 454.16 233.00 687.16 Non-Departmental General Expense 4.00 -0- 4.00 4.00 -0- 4.00 Sub-Total 4.00 -0- 4.00 4.00 -0- 4.00 -0-0- 11.00 4.00 11.00 4.00 -0-0- 11.00 4.00 11.00 4.00 -0- 15.00 15.00 -0- 15.00 15.00 4,087.51 1,940.70 6,028.21 4,108.01 1,940.70 6,048.71 Sub-Total Support Services Budget and Research Finance General Services Human Resources Information Technology Procurement Sub-Total Internal Service and Fiduciary Funds Risk Management Internal Service Fund Tucson Supplemental Retirement System Fiduciary Fund Sub-Total Total E-58 City of Tucson Elected and Mayor/Council Appointed Officials (Unclassified) Class Code 0400 0401 0409 0430 0625 0629 0630 0633 0635 Class Title Annual Rate Effective Mayor Council Member City Clerk City Manager City Attorney Limited Special City Magistrate City Magistrate Presiding Magistrate Special Magistrate 42,000.00 24,000.00 117,500.00 211,820.00 147,056.00 62,995.00 104,990.00 115,489.00 $90/Session 6/18/2000 6/18/2000 7/14/2008 4/4/2008 6/1/2008 10/8/2007 10/8/2007 10/8/2007 7/1/1997 EXEMPT SCHEDULE EFFECTIVE: July 1, 2008 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 52,686.40 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-59 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 SCHEDULE Effective: July 1, 2008 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 SCHEDULE EFFECTIVE: July 1, 2008 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 EXEMPT SCHEDULE EFFECTIVE: July 1, 2008 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-60 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 EXEMPT SCHEDULE EFFECTIVE: July 1, 2008 Grade No. 610 611 612 613 614 615 616 617 618 619 Minimum Midpoint 34,548.80 38,001.60 41,870.40 58,822.40 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 67,579.20 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 EXEMPT SCHEDULE CLASSIFICATIONS WITH EXCEPTIONAL PAY COMPUTATIONS EFFECTIVE: July 1, 2008 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-61 Maximum 34,590.40 36,566.40 73,860.80 80,662.40 NON-EXEMPT SCHEDULE EFFECTIVE: July 1, 2008 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 E-62 POLICE NON-EXEMPT SCHEDULE Effective: July 1, 2008 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: July 1, 2008 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 E-63 HOURLY NON-PERMANENT CLASSIFICATIONS NON-EXEMPT SCHEDULE EFFECTIVE: July 1, 2008 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-64 Hourly Rate $11.73 $12.68 $6.92 $8.50 $8.50 $8.50 $6.89 $18.04 $11.26 $9.27 $6.90 $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 Adopted Biennial Budget Summary Fiscal Years 2009 and 2010 Section F Capital Budget Summary CAPITAL BUDGET SUMMARY This section summarizes the Five-Year Capital Improvement Program (CIP) for Fiscal Years 2009 through 2013. In general, only funded projects are reflected in the five-year CIP totals. Future utility revenue bonds are an exception; these are included so that the CIP matches the Environmental Services and Tucson Water multi-year financing plans. SUMMARY OF EXPENDITURES AND FUNDING SOURCES The following table summarizes the CIP expenditures by service area and by funding source. For more detailed summaries, see Tables I and II on pages F-5 and F-6. Adopted Year 1 FY 2009 ($000s) Service Area Expenditures Neighborhood Services Environment and Development Support Services Funding Sources General Purpose Funds Grants and Contributions City Bond Funds Enterprise Funds Other Local Funds Non-City Funds Approved Year 2 FY 2010 Projected Five-Year Total $ 84,206.6 160,701.0 550.3 $ 70,406.1 169,246.6 -0- $ 188,561.9 872,669.0 550.3 Total $ 245,457.9 $ 239,652.7 $ 1,061,781.2 $ $ $ 2,164.7 106,465.7 3,790.6 70,392.1 62,008.8 636.0 Total $ 245,457.9 485.0 122,778.8 5,414.7 65,828.1 45,146.1 -0- $ 239,652.7 6,249.7 529,314.1 9,205.3 392,921.2 123,454.9 636.0 $ 1,061,781.2 Changes from the Recommended Budget On April 22, 2008, the Proposed Five-Year Capital Improvement Program was submitted to the Mayor and Council. The recommended budget for Fiscal Year 2009 at that time was $244,907,600. Subsequently, the following change was made prior to adoption, which brought the total to $245,457,900: Department Information Technology Change ($000s) $ 550.3 Reason Carryforward of Fiscal Year 2008 funds F-1 DEPARTMENT PROGRAMS The following section summarizes the department programs within each service area. Further detail on department programs and specific projects is in the Approved Five-Year Capital Improvement Program, Volume III. Neighborhood Services The Neighborhood Services category, which accounts for 18% of the total five-year CIP, contains projects managed by Community Services, Fire, Neighborhood Resources, Parks and Recreation, and Police. Community Services. The Community Services five-year program of $4.1 million consists of two projects: construction of public housing amenities at a new Martin Luther King, Jr. apartment building and construction of rental units in the Mercado, a new mixed-used community. Funding is provided by Pima County bonds, federal HOPE VI funds, and other federal grants. Fire. Fire’s five-year program of $33.1 million contains four projects: a new central headquarters and fire station in the downtown area, planning and design of infrastructure improvements and additions at the Public Safety Training Academy, land acquisition for future fire stations, and support facility improvements. The Capital Improvement Fund, which is for certificates of participation, and general obligation bonds will fund these projects. Neighborhood Resources. This department’s five-year CIP of $18.4 million is for the Back to Basics Program. There is $4.5 million carried forward in Fiscal Year 2009 for the completion of prior year projects. New funding of $2.7 million will provide $386,780 annually for each ward and the mayor. Parks and Recreation. Park’s five-year CIP of $54 million contains 49 projects. These projects are funded primarily from county bonds of $34.8 million and city bonds of $3.4 million. Either a new city or county bond authorization is needed for $5.2 million. Funding from the Capital Improvement Fund, which is certificates of participation, is $4.2 million and RTA (Regional Transportation Authority) funds provide $1 million. Revenue from impact fees, restricted General Fund revenues, non-federal grants, and contributions provide for the remaining $5.4 million. These funds provide for a wide range of projects: improvements at regional parks, expansion of recreation centers, amenities at neighborhood parks, and the Reid Park Zoo Africa ExpansionElephant exhibit. Police. The Police Department’s five-year program of $78.9 million is for four projects: construction of a new Crime Lab and a new Evidence Facility, expansion of Police Headquarters, and acquisition of operational support equipment for the addition of a sixth field division. These projects are funded with certificates of participation in the Capital Improvement Fund. Environment and Development The Environment and Development category, which accounts for 82% of the total five-year CIP, contains projects managed by Environmental Services, Transportation, and Tucson Water. Environmental Services. The department’s five-year program of 15 projects totals $40.2 million. Funding for these projects is from Environmental Service bonds of $2.1 million, $3.9 million from Environmental Service revenues, $25.4 million from certificates of participation, and $8.8 million from a future Environmental Service revenue bond authorization. Projects that are funded with these future bond authorizations do not begin until Fiscal Year 2010. F-2 Transportation. The five-year Transportation program of $479.7 million includes five program areas: Drainage for $0.07 million, Public Transit for $189 million, Street Lighting for $1.3 million, Streets for $283.4 million, and Traffic Signals for $5.9 million. Because there are insufficient funds to meet all of Transportation’s needs, this CIP simply allocates available funding to the highest priority projects. The largest funding source for Transportation’s projects is the funding from the RTA, which totals $266.5 million. Federal funding provides another significant portion totaling $146.8 million: $90.9 million for transit projects and $55.9 million for street projects. Other major funding sources are Pima County bond funds of $25.2 million, regional Highway User Revenue Funds (HURF) of $20.6 million, city HURF of $5.5 million, impact fee revenue of $2.9 million, developer contributions of $6 million and bond funds of $0.2 million. The remaining $6 million is from the General Fund, which is used as the local match for federal transit grants. Tucson Water. The five-year Tucson Water CIP of $352.7 million includes $314.5 million of improvements to the potable water system and $38.2 million of improvements for the reclaimed water system. Tucson Water’s CIP is funded from operations and reserve funds of $165.7 million, 2005 revenue bonds of $50.7 million, $135.6 million from a future water revenue bond authorization, and $0.6 million from a federal grant. Projects that are funded with these future bond authorizations do not begin until Fiscal Year 2010. Support Services The Support Services category accounts for less that 1% of the total five-year CIP and contains one capital project managed by Information Technology. Information Technology. There is one project in the department’s five-year CIP of $550,300 carried forward from Fiscal Year 2008: completion of the Voice and Data Network and Component Upgrades. Funding for this project comes from the Capital Improvement Fund, which are certificates of participation. SUMMARY OF CIP IMPACT ON THE OPERATING BUDGET While the completion of a capital project provides improved service to the community, the completion of many capital projects is also the beginning of annual operating expenses for staff, maintenance, and routine operations. Operating and maintenance (O&M) impacts from projects in the five-year CIP total $6.9 million for Fiscal Year 2009, increasing to $9.3 million for Fiscal Year 2010, and to $60.9 million by Fiscal Year 2013. The O&M impacts in Fiscal Year 2009 are primarily for the Southern Avra Valley Storage and Recovery Project. Operating and staffing the Christopher Columbus Parks expansion is a significant component of the General Purpose Funds impact. Tucson Water’s Revenue and Operation Fund pays for most of the operating and maintenance impacts (90% in Fiscal Year 2009). The balance is funded from the General Fund, the city’s Highway User Revenue Fund (HURF), Regional Transportation Authority (RTA) fund, and Environmental Services Fund. The following table summarizes the operating budget impact of projects in this five-year CIP that were completed in Fiscal Year 2008 or will be completed in Fiscal Year 2009 and 2010. For a more detailed summary, see Table III on page F-7. F-3 ($000s) Service Area Expenditures Neighborhood Services Environment and Development Total Funding Sources General Purpose Funds Grants and Contributions Enterprise Funds Total Adopted Year 1 FY 2009 Approved Year 2 FY 2013 Projected Five-Year Total $ 625.0 6,255.1 $ 1,516.5 7,754.0 $ 12,954.1 48,001.6 $ 6,880.1 $ 9,270.5 $ 60,955.7 $ 625.0 -06,255.1 $ 1,516.5 168.5 7,585.5 $ 13,260.1 2,053.0 45,642.6 $ 6,880.1 $ 9,270.5 $ 60,955.7 For additional information on specific projects that have an impact on the operating budget, see the Approved Capital Improvement Program, Volume III. ATTACHED TABLES Table I. Table II. Table III. Five-Year Capital Improvement Program Summary by Department Five-Year Capital Improvement Program Summary by Funding Source Five-Year Capital Improvement Program Summary of CIP Impact on the Operating Budget F-4 Five-Year Capital Improvement Program Table I. Summary by Department ($000) Adopted Year 1 FY 2009 Neighborhood Services Community Services Fire Neighborhood Resources Parks and Recreation Police Approved Year 2 FY 2010 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 $ 2,038.1 $ 31,873.0 7,310.7 18,974.8 24,010.0 2,087.2 1,200.0 2,780.4 25,638.5 38,700.0 Sub-Total Environment and Development $ 84,206.6 $ 70,406.1 $ Environmental Services Transportation Tucson Water $ 9,742.1 $ 12,842.1 $ 90,308.9 103,418.5 60,650.0 52,986.0 Sub-Total Support Services $ 160,701.0 $ 169,246.6 $ 174,982.4 $ 205,045.5 $ 162,693.5 $ 872,669.0 Information Technology $ 550.3 $ -0- $ -0- $ -0- $ -0- $ 550.3 Sub-Total $ 550.3 $ -0- $ -0- $ -0- $ -0- $ 550.3 Total $ 245,457.9 $ 239,652.7 $ 200,370.8 $ 209,325.9 $ 166,973.9 $ 1,061,781.2 F-5 $ -0-02,780.4 6,408.0 16,200.0 $ 25,388.4 $ -0-02,780.4 1,500.0 -0- Five Year Total $ -0- $ -02,780.4 1,500.0 -0- 4,125.3 33,073.0 18,432.3 54,021.3 78,910.0 4,280.4 $ 4,280.4 $ 188,561.9 11,840.0 $ 4,595.0 $ 96,171.4 117,532.5 66,971.0 82,918.0 1,225.0 $ 40,244.2 72,316.5 479,747.8 89,152.0 352,677.0 Five-Year Capital Improvement Program Table II. Summary by Funding Source ($000) Adopted Year 1 FY 2009 Approved Year 2 FY 2010 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Five Year Total General Purpose Funds General Fund Mass Transit Fund: User Fees and General Fund Sub-Total $ 230.3 1,934.4 $ -0485.0 $ -01,200.0 $ -01,200.0 $ -01,200.0 $ 230.3 6,019.4 $ 2,164.7 $ 485.0 $ 1,200.0 $ 1,200.0 $ 1,200.0 $ 6,249.7 $ 3,672.0 12,530.7 $ 5,706.0 17,164.9 $ 4,750.0 12,445.3 $ 6,500.0 9,500.0 $ -0- $ 9,500.0 20,628.0 61,140.9 Grants and Contributions Capital Agreement Fund: PAG Capital Agreement Fund: Pima County Bonds 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 Regional Transportation Authority Fund State Infrastructure Bank Federal PassThrough Sub-Total 3,785.0 1,080.4 1,080.4 1,080.4 1,080.4 8,106.6 9,004.0 284.5 853.5 15,095.0 -01,750.0 8,278.0 -0-0- 7,525.0 -0-0- 5,000.0 -0-0- 44,902.0 284.5 2,603.5 4,648.0 200.0 2,556.4 200.0 2,912.0 200.0 2,559.0 200.0 3,009.0 200.0 15,684.4 1,000.0 1,000.0 29,724.4 316.0 35,442.6 5,005.0 1,000.0 18,718.3 250.0 53,262.8 5,995.0 1,000.0 16,954.2 -056,439.9 -0- 1,000.0 14,099.9 -078,148.6 -0- 1,000.0 11,377.5 -044,230.0 -0- 5,000.0 90,874.3 566.0 267,523.9 11,000.0 75,396.9 $ 529,314.1 $ 106,465.7 $ 122,778.8 $ 104,059.8 $ 120,612.9 $ $ $ City Bond Funds 2000 General Obligation Bond Funds 2000 General Obligation Bond Funds: Interest Future General Obligation Bonds Sub-Total 3,550.6 240.0 $ -0- 216.3 -05,198.4 -0-0- $ -0- -0-0- $ -0- -0- $ -0- 3,766.9 240.0 -0- 5,198.4 $ 3,790.6 $ 5,414.7 $ -0- $ -0- $ -0- $ 9,205.3 $ 2,115.7 40,773.0 1,626.4 6,000.0 -0- $ -09,939.0 2,312.1 9,150.0 1,380.0 $ -0-0-010,085.0 1,755.0 $ -0-0-0-04,595.0 $ -0- $ -0-0125.0 1,100.0 2,115.7 50,712.0 3,938.5 25,360.0 8,830.0 Enterprise Funds 2000 Environmental Service Bonds 2005 Water Revenue Bond Funds Environmental Services Fund Environmental Services Fund: COPs Future Environmental Services Revenue Bonds Future Water Revenue Bonds -0- 24,016.0 F-6 38,727.0 40,549.0 32,345.0 135,637.0 Five-Year Capital Improvement Program Table II. Summary by Funding Source ($000) Adopted Year 1 FY 2009 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Approved Year 2 FY 2010 Five Year Total Enterprise Funds (Continued) Tucson Water Fund: Federal Grants Tucson Water Revenue and Operations Fund Water Infrastructure Reserve Fund Sub-Total $ 542.0 14,335.0 $ 70.0 18,961.0 5,000.0 $ -0- -028,244.0 $ -0- -042,369.0 $ -0- $ 70,392.1 $ 65,828.1 $ 78,811.0 $ $ 56,417.3 $ 338.0 354.5 43,650.0 $ -0260.2 16,200.0 -0-0- -0- $ 612.0 56,807.0 $ 160,716.0 -0- 5,000.0 87,513.0 $ 90,377.0 $ 392,921.2 -0-0-0- $ -0-0-0- $ 116,267.3 338.0 614.7 Other Local Funds Capital Improvement Fund General Fund: Restricted Revenues 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 Sub-Total $ 1,260.2 345.5 100.0 -0- -0- 1,705.7 911.1 325.4 -0- -0- -0- 1,236.5 626.5 565.0 -0- -0- -0- 1,191.5 2,101.2 -0- -0- -0- -0- 2,101.2 $ 62,008.8 $ 45,146.1 $ 16,300.0 $ -0- $ -0- $ 123,454.9 $ 636.0 $ -0- $ -0- $ -0- $ -0- $ 636.0 Sub-Total $ 636.0 $ -0- $ -0- $ -0- $ -0- $ 636.0 Total $ 245,457.9 Non-City Funds Civic Contributions Fund $ 239,652.7 F-7 $ 200,370.8 $ 209,325.9 $ 166,973.9 $ 1,061,781.2 Five-Year Capital Improvement Program Table III. Summary of CIP Impact on the Operating Budget ($000) Year 1 FY 2009 Year 2 FY 2010 Year 3 FY 2011 Year 4 FY 2012 Year 5 FY 2013 Five Year Total $ -0525.0 100.0 $ $ $ $ $ $ 625.0 $ 1,516.5 $ 2,991.8 $ 4,069.6 $ 3,751.3 $ 12,954.1 $ 60.0 -06,195.1 $ $ $ $ $ 1,020.0 2,359.0 44,622.6 Neighborhood Services Fire Parks and Recreation Police Sub-Total 252.5 1,164.0 100.0 277.7 2,464.1 250.0 305.5 3,354.1 410.0 336.0 2,985.3 430.0 1,171.7 10,492.4 1,290.0 Environment and Development Environmental Services Transportation Tucson Water 60.0 168.5 7,525.5 260.0 630.5 9,061.0 260.0 718.5 10,891.0 380.0 841.5 10,950.0 Sub-Total $ 6,255.1 $ 7,754.0 $ 9,951.5 $ 11,869.5 $ 12,171.5 $ 48,001.6 Total $ 6,880.1 $ 9,270.5 $ 12,943.3 $ 15,939.0 $ 15,922.8 $ 60,955.7 $ 625.0 -0- $ 1,516.5 -0- $ 2,991.8 99.0 $ 4,069.6 102.0 $ 3,751.3 105.0 $ 12,954.1 306.0 $ 625.0 $ 1,516.5 $ 3,090.8 $ 4,171.6 $ 3,856.3 $ 13,260.1 $ -0- $ $ $ $ 682.5 $ 1,897.0 54.0 156.0 Source of Funds Summary General Purpose Funds General Fund Mass Transit Fund: User Fees and General Fund Sub-Total Grants and Contributions Highway User Revenue Fund Regional Transportation Authority Fund Sub-Total -0- 144.5 24.0 507.5 24.0 562.5 54.0 $ -0- $ 168.5 $ 531.5 $ 616.5 $ 736.5 $ 2,053.0 $ 60.0 6,195.1 $ 60.0 7,525.5 $ 260.0 9,061.0 $ 260.0 10,891.0 $ 380.0 10,950.0 $ 1,020.0 44,622.6 Enterprise Funds Environmental Services Fund Tucson Water Revenue and Operations Fund Sub-Total $ 6,255.1 $ 7,585.5 $ 9,321.0 $ 11,151.0 $ 11,330.0 $ 45,642.6 Total $ 6,880.1 $ 9,270.5 $ 12,943.3 $ 15,939.0 $ 15,922.8 $ 60,955.7 F-8 Five-Year Capital Improvement Program Community Services ($000) Adopted Year 1 FY 2009 Project Name Martin Luther King Public Housing Amenities Mercado District Rentals - El Portal Department Total Projected Requirements Approved Year 2 Year 3 Year 4 Year 5 FY 2010 FY 2011 FY 2012 FY 2013 Five Year Total $ 1,753.6 $ 2,087.2 $ 284.5 -0- -0- $ -0- -0- $ -0- -0- $ 3,840.8 -0284.5 $ 2,038.1 $ 2,087.2 $ -0- $ -0- $ -0- $ 4,125.3 337.2 $ -0-01,750.0 -0- $ -0-0-0- -0- $ -0-0-0- -0- $ 1,132.7 -0104.6 -0284.5 -02,603.5 $ -0- $ -0- $ -0- $ 4,125.3 Source of Funds Summary Capital Agreement Fund: Pima County Bonds Community Development Block Grant Fund H.O.M.E. Grants HOPE VI - Martin Luther King Revitalization Department Total $ $ 795.5 104.6 284.5 853.5 $ 2,038.1 $ 2,087.2 F-9 Five-Year Capital Improvement Program Environmental Services ($000) Project Name Adopted Year 1 FY 2009 Approved Year 2 FY 2010 Environmental Services - Facilities Landfill End-Use: Irvington $ $ -0- Landfill End-Use: Pantano Wash Landfill End-Use: Santa Cruz Los Reales 80-Acre Facilities Construction Los Reales Infrastructure Plan Los Reales Roadway Relocation Sub-Total Environmental Services - Landfill Closure Irvington Landfill Closure Los Reales Landfill Final Closure - Cell 3 Los Reales Landfill Final Closure - Cells 1 and 2 Los Reales Landfill Westside Closure Tumamoc Landfill Closure Sub-Total -0- 150.0 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 $ 150.0 $ 150.0 80.0 9,000.0 -0-0- 100.0 200.0 10,085.0 -0-0- $ 1,400.0 $ 9,380.0 $ 10,535.0 $ -02,995.0 $ -0-0571.9 705.0 0.2 757.1 75.0 1,000.0 $ 3,642.1 $ 2,462.1 $ -055.0 -0-0500.0 $ $ 555.0 $ 150.0 -0-0- $ -0- -0-0900.0 500.0 $ 100.0 $ $ -0- 100.0 100.0 -0-0-0300.0 -0- Five Year Total $ 400.0 100.0 -0-0-0- 350.0 480.0 19,085.0 900.0 500.0 100.0 $ 21,715.0 -0- $ -0- $ -0235.0 -0-0-0-01,000.0 1,000.0 $ 1,235.0 $ 1,000.0 $ 2,995.0 290.0 1,276.9 757.3 3,575.0 $ 875.0 4,000.0 3,160.0 8,894.2 Environmental Services - Landfill Construction Los Reales Landfill Buffer Improvements Los Reales Landfill Lined Cell 3 Los Reales Landfill Lined Cell 4 -0- $ 125.0 600.0 4,000.0 -0- $ $ 4,600.0 $ 150.0 $ 100.0 $ 3,060.0 $ 125.0 $ 8,035.0 $ 100.0 $ 850.0 $ 650.0 $ -0- $ -0- $ 1,600.0 Sub-Total $ 100.0 $ 850.0 $ 650.0 $ -0- $ -0- $ 1,600.0 Department Total $ 9,742.1 $ 11,840.0 $ 4,595.0 $ 1,225.0 $ 40,244.2 $ $ -0-0125.0 1,100.0 $ 2,115.7 3,938.5 25,360.0 8,830.0 $ 1,225.0 $ 40,244.2 Sub-Total Environmental Services - Remediations Silverbell Jail Annex Landfill Remediation $ 12,842.1 -0100.0 -03,060.0 -0-0- $ Source of Funds Summary 2000 Environmental Service Bonds Environmental Services Fund Environmental Services Fund: COPs Future Environmental Services Revenue Bonds Department Total $ 2,115.7 $ -01,626.4 2,312.1 6,000.0 9,150.0 -01,380.0 $ 9,742.1 F-10 $ 12,842.1 -0-010,085.0 1,755.0 $ -0-0-04,595.0 $ 11,840.0 $ 4,595.0 Five-Year Capital Improvement Program Fire ($000) Project Name Fire Central Land Acquistion for Future Stations Public Safety Training Academy Master Plan and Design Support Facility Improvements Department Total Adopted Year 1 FY 2009 Approved Year 2 FY 2010 $ 28,714.9 $ 940.0 1,700.0 1,200.0 -0-0- 518.1 $ 31,873.0 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 $ -0$ 1,200.0 -0-0-0- $ -0-0-0- $ Five Year Total -0- $ 29,914.9 -0940.0 -01,700.0 -0- -0- -0- 518.1 $ -0- $ -0- $ -0- $ 33,073.0 $ -0-0-0- -0-0-0- $ -0- $ 200.0 -0240.0 -0- 32,633.0 $ -0- $ -0- $ -0- $ 33,073.0 Source of Funds Summary 2000 General Obligation Bond Funds 2000 General Obligation Bond Funds: Interest Capital Improvement Fund Department Total $ 200.0 240.0 31,433.0 $ 31,873.0 $ -0-01,200.0 $ 1,200.0 F-11 $ Five-Year Capital Improvement Program Information Technology ($000) Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Five Year Total Project Name Adopted Year 1 FY 2009 Approved Year 2 FY 2010 Voice and Data Network and Component Upgrades $ 550.3 $ -0- $ -0- $ -0- $ -0- $ 550.3 $ 550.3 $ -0- $ -0- $ -0- $ -0- $ 550.3 Capital Improvement Fund $ 550.3 $ -0- $ -0- $ -0- $ -0- $ 550.3 Department Total $ 550.3 $ -0- $ -0- $ -0- $ -0- $ 550.3 Department Total Source of Funds Summary F-12 Five-Year Capital Improvement Program Neighborhood Resources ($000) Project Name Back to Basics Unallocated Department Total Adopted Year 1 FY 2009 $ Approved Year 2 FY 2010 7,310.7 $ 2,780.4 $ Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 2,780.4 $ 2,780.4 $ Five Year Total 2,780.4 $ 18,432.3 $ 7,310.7 $ 2,780.4 $ 2,780.4 $ 2,780.4 $ 2,780.4 $ 18,432.3 Source of Funds Summary Community Development Block Grant Fund General Fund Highway User Revenue Fund Department Total $ 3,680.4 $ 230.3 3,400.0 1,080.4 $ -01,700.0 1,080.4 $ -01,700.0 1,080.4 $ -01,700.0 1,080.4 $ 8,002.0 -0230.3 1,700.0 10,200.0 $ 7,310.7 $ 2,780.4 $ 2,780.4 $ 2,780.4 $ 2,780.4 F-13 $ 18,432.3 Five-Year Capital Improvement Program Parks and Recreation ($000) Project Name Parks and Recreation - Parks Development A Mountain Improvement Alamo Wash Trail Arcadia Park, Phase I Arroyo Chico Urban Path: Campbell/Parkway Arroyo Chico Urban Pathway Atterbury Wash Sanctuary Expansion Catalina Park Integrated Play Area Cherry Avenue Center Expansion, Phase I Christopher Columbus Park Expansion Clements Senior Center Recreation Facility Davidson School Park El Pueblo Center Expansion, Phase I Enchanted Hills Wash Trail General Instruments Site Improvements Grijalva School Park Herrera Quiroz (Oury) Park Jacinto Park Juhan Park Expansion Julian Wash Linear Park Lincoln Park Area Maintenance Compound Lincoln Park Expansion, Phase I Lincoln Park Sport Fields Mendoza Memorial Park Menlo Park Improvements Navajo Wash Trail New Comfort Stations Northside Recreation Center Ormsby Park Expansion Plan Pascua Neighborhood: Land Acquisition Performing Arts Center Pima County Bond Project Capacity Purple Heart Park Expansion Reid Park Expansion, Phase 1 Reuse of Landfill Areas Rio Vista Park Expansion Robb Wash Trail Santa Cruz River Sports Park Santa Rita Skate Park Silverlake Park Soccer Field Lighting Design South Central Community Park, Phase I Southeast Community Park Adopted Year 1 FY 2009 $ Approved Year 2 FY 2010 138.0 217.8 435.2 100.0 1,000.0 470.0 100.0 51.2 98.0 1,435.3 500.0 60.0 100.0 -0200.0 395.0 50.0 747.0 2,269.1 16.6 208.3 595.0 90.0 -0200.7 409.1 575.5 20.0 328.0 115.0 1,500.0 325.4 312.5 207.0 1,272.1 50.0 -0148.5 200.0 325.0 2,002.0 $ F-14 -0-0-0400.0 260.2 450.0 284.3 -0-0-0-0-0-0191.3 -0-0-0-0916.9 448.4 -02,782.5 -0260.0 -0-01,825.0 -0-0-01,500.0 325.4 -0-0-025.0 823.7 -0250.0 245.5 2,231.0 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 $ -0-0-0400.0 -0150.0 -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-02,762.0 -0-0-01,500.0 -0-0-0-0-0-0-0-0-01,596.0 $ -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-01,500.0 -0-0-0-0-0-0-0-0-0-0- $ -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-01,500.0 -0-0-0-0-0-0-0-0-0-0- Five Year Total $ 138.0 217.8 435.2 900.0 1,260.2 1,070.0 384.3 51.2 98.0 1,435.3 500.0 60.0 100.0 191.3 200.0 395.0 50.0 747.0 3,186.0 465.0 208.3 3,377.5 90.0 260.0 200.7 409.1 5,162.5 20.0 328.0 115.0 7,500.0 650.8 312.5 207.0 1,272.1 75.0 823.7 148.5 450.0 570.5 5,829.0 Five-Year Capital Improvement Program Parks and Recreation ($000) Project Name Adopted Year 1 FY 2009 Parks and Recreation - Parks Development (Continued) $ St. John's Park Trail System Master Plan Tucson Children's Museum Renovations Udall Park Sport Fields Valencia Corridor Facilities Plan Valencia Corridor Land Acquisition, Phase I Valencia and Alvernon Community Park, Phase I Sub-Total Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Approved Year 2 FY 2010 200.0 175.0 22.0 260.0 125.0 301.5 200.0 $ -0-01,229.3 2,125.0 -0565.0 -0- $ -0-0-0-0-0-0-0- $ -0-0-0-0-0-0-0- $ Five Year Total -0- $ 200.0 -0175.0 -01,251.3 -02,385.0 -0125.0 -0866.5 -0200.0 $ 18,550.8 $ 17,138.5 $ 6,408.0 $ 1,500.0 $ 1,500.0 $ 424.0 $ 8,500.0 $ -0- $ -0- $ -0- $ 8,924.0 Sub-Total $ 424.0 $ 8,500.0 $ -0- $ -0- $ -0- $ 8,924.0 Department Total $ 18,974.8 $ 25,638.5 $ 6,408.0 $ 1,500.0 $ 1,500.0 $ 54,021.3 $ $ $ Parks and Recreation - Zoo Improvements Reid Park Zoo Africa Expansion-Elephant Exhibit $ 45,097.3 Source of Funds Summary 2000 General Obligation Bond Funds Capital Agreement Fund: Pima County Bonds Capital Improvement Fund Civic Contributions Fund Future General Obligation Bonds General Fund: Restricted Revenues Miscellaneous Non-Federal Grants Regional Transportation Authority Fund Road & Park Impact Fee Fund: Central District Road & Park Impact Fee Fund: East District Road & Park Impact Fee Fund: Southeast District Road & Park Impact Fee Fund: Southlands District Road & Park Impact Fee Fund: West District Department Total $ 216.3 3,172.1 $ 10,535.2 14,827.7 424.0 3,750.0 -0636.0 -05,198.4 -0338.0 316.0 250.0 -01,000.0 354.5 260.2 510.2 245.5 661.1 325.4 565.0 626.5 -0401.2 $ 18,974.8 $ 25,638.5 F-15 -06,408.0 -0-0-0-0-0-0-0-0-0-0-0- $ 6,408.0 -01,500.0 -0-0-0-0-0-0-0-0-0-0-0- $ 1,500.0 -0- $ 3,388.4 1,500.0 34,770.9 -04,174.0 -0636.0 -05,198.4 -0338.0 -0566.0 -01,000.0 -0614.7 -0755.7 -0986.5 -01,191.5 -0401.2 $ 1,500.0 $ 54,021.3 Five-Year Capital Improvement Program Police ($000) Project Name Crime Lab and Investigative Division Renovation Evidence Facility Police Field Support Equipment Police Headquarters Expansion Department Total Adopted Year 1 FY 2009 Approved Year 2 FY 2010 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Five Year Total -0$ 14,500.0 $ 22,000.0 $ -0-0300.0 -0-01,110.0 8,100.0 16,700.0 16,200.0 $ -0-0-0-0- $ -0-0-0-0- $ 36,500.0 300.0 1,110.0 41,000.0 $ 24,010.0 $ 16,200.0 $ -0- $ -0- $ 78,910.0 $ 24,010.0 $ 38,700.0 $ 16,200.0 $ -0- $ -0- $ 78,910.0 $ 24,010.0 $ -0- -0- $ 78,910.0 $ 38,700.0 Source of Funds Summary Capital Improvement Fund Department Total F-16 $ 38,700.0 $ 16,200.0 $ Five-Year Capital Improvement Program Transportation ($000) Adopted Year 1 FY 2009 Project Name Transportation - Drainage Columbus Wash Drainage Relief, Phase II Park Avenue Detention Basin, Phase II Sub-Total Transportation - Public Transit ADA Transit Enhancements Compressed Natural Gas Facility Expansion Buses for Sun Tran Expansion Vans for Van Tran Greyhound Transit Center Houghton Park-and-Ride Modern Streetcar Modern Streetcar Planning Regional Seamless Fare System Replacement Buses for Sun Tran Replacement Vans for Van Tran Rita Ranch Park-and-Ride Ronstadt Transit Center Sun Tran Maintenance Facility Transit Centers Improvements Transit Enhancement Program Transit Headquarters Improvements Sub-Total Transportation - Street Lighting Amphi Neighborhood Lighting Ft. Lowell Road: Oracle to Country Club Julia Keen Neighborhood Lighting Meyers Neighborhood Lighting Midvale Park Neighborhood Lighting Sub-Total Transportation - Streets 22nd Street: I-10 to Tucson Boulevard 6th Avenue: 18th Street Intersection Alternate Modes Improvements Barraza-Aviation Downtown Links, Phase I Barraza-Aviation Parkway: 4th Avenue Underpass Broadway: Euclid to Campbell Broadway: Euclid to Country Club Cambio Grande Street Revitalization $ $ $ 50.0 $ 18.5 68.5 $ -0- $ -0-0- $ 120.0 $ 118.0 $ -0479.0 7,535.1 5,600.0 562.1 170.0 -01,000.0 1,000.0 1,500.0 1,950.0 8,248.5 -01,254.0 2,650.0 5,582.1 12,880.7 4,000.0 4,457.2 2,085.4 -01,700.0 400.0 2,000.0 19,192.2 13,935.4 162.5 637.5 -053.0 -0400.0 $ 55,340.8 $ Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Approved Year 2 FY 2010 $ 44,331.9 400.0 $ 50.0 500.0 300.0 60.0 -0- $ -0-0- $ 120.0 $ 120.0 $ -0-02,000.0 14,760.0 170.0 170.0 -0-0-0610.0 9,100.0 9,100.0 -0-0-0-07,200.0 8,610.0 3,441.2 2,941.2 -0-0-0352.6 5,822.3 822.3 -0-053.0 53.0 -0-0- -0- $ -0-0- $ 50.0 18.5 68.5 120.0 $ 598.0 -0479.0 5,740.0 35,635.1 170.0 1,242.1 -01,000.0 -03,110.0 7,100.0 35,498.5 -01,254.0 -08,232.1 6,150.0 38,840.7 3,761.2 16,686.2 -01,700.0 -02,752.6 822.3 40,594.5 -0800.0 53.0 212.0 -0400.0 $ 28,869.1 $ 36,576.5 $ 23,916.5 $ 189,034.8 -0- $ -0-0-0-0- -0- $ -0-0-0-0- -0- $ -0-0-0-0- -0-0-0-0-0- $ 400.0 50.0 500.0 300.0 60.0 -0- -0- $ 1,310.0 $ 1,310.0 $ -0- $ -0- $ $ 1,400.0 250.0 -0500.0 3,176.0 -0969.0 100.0 $ 3,700.0 -0529.0 3,348.0 1,370.0 -05,954.0 300.0 $ 6,500.0 -0-05,618.0 -0-04,902.0 -0- $ F-17 -0- $ -0-0- $ Five Year Total $ 8,500.0 $ 13,500.0 -0-0-0-0-01,544.0 -0-08,000.0 8,000.0 9,804.0 9,804.0 -0-0- $ 33,600.0 250.0 529.0 11,010.0 4,546.0 16,000.0 31,433.0 400.0 Five-Year Capital Improvement Program Transportation ($000) Adopted Year 1 FY 2009 Project Name Transportation - Streets (Continued) Camino Seco and Wrightstown Intersection Campbell Avenue Revitalization Department of Justice Sidewalk Improvements 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 Road Corridor Improvement Grant and Craycroft Intersection Improvement Harrison Road: Speedway to Old Spanish Trail Harrison and Wrightstown Curve Design 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 Irvington and Campbell Intersection Julian Wash Archaeological Improvements Kino Parkway Overpass at 22nd Street Kolb Road Extension 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 Road Resurfacing, Restoration, & Rehabilitation Santa Rita Park Pedestrian Enhancements Silverbell: Ina to Grant Road South 4th Avenue Streetscape Enhancement Speedway and Main Intersection Improvements Speedway: Camino Seco to Houghton Starr Pass and Mission Intersection Improvements Stone Ave: Drachman and Speedway Improvements Stone Avenue: Pedestrian Safety Improvements Tanque Verde and Dos Hombres Intersection Treat Avenue Pedestrian Bridge Tyndall Avenue Enhancements Wilmot at Park Place Intersection Improvements Sub-Total $ Approved Year 2 FY 2010 100.0 $ 100.0 500.0 146.0 1,400.0 -0250.0 100.0 -04,292.1 50.0 450.0 55.0 -0400.0 400.0 400.0 300.0 10.0 -0420.0 1,200.0 704.0 5,247.7 50.0 20.0 5,205.0 186.0 500.0 300.0 200.0 300.0 200.0 -0224.0 200.0 202.0 410.0 50.0 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 100.0 $ 100.0 300.0 350.0 -0-0-0-0-0-0-02,659.0 -0-0-01,538.0 733.0 17,932.0 -0-0-0-0-0-0-0-03,200.0 750.0 -02,250.0 -02,600.0 -03,056.9 -0-0-0-02,000.0 6,037.3 430.0 4,133.0 1,200.0 1,200.0 554.0 550.0 6,647.0 2,281.0 -0-0-0-08,372.4 4,285.0 -0-02,723.0 2,083.0 -0-0-0256.0 798.0 6,136.0 1,088.3 2,200.0 250.0 750.0 -0-0-0-0-0-0-0-01,110.0 245.0 $ 30,966.8 $ 57,066.6 $ 66,052.3 F-18 $ 2,500.0 $ -0-0-0-0-0-0-017,199.0 -0-0-0-0-0-0-0-0-0-0-05,133.0 1,200.0 550.0 -0-0-05,285.0 -08,580.0 -0-06,136.0 -06,500.0 -0-0-0-0-0- -0-0-0-0-0-0-0-09,611.0 -0-0-0-0-0-0-0-0-0-0-0-01,200.0 1,000.0 -0-0-05,285.0 -0-0-0-0-0-0-0-0-0-0-0-0- $ 80,931.0 $ 48,400.0 Five Year Total $ 2,800.0 750.0 500.0 146.0 1,400.0 2,659.0 250.0 1,638.0 45,475.0 4,292.1 50.0 450.0 55.0 3,950.0 2,650.0 3,000.0 3,456.9 300.0 10.0 8,037.3 10,116.0 6,000.0 3,358.0 14,175.7 50.0 20.0 28,432.4 186.0 13,886.0 300.0 456.0 13,370.0 3,488.3 7,500.0 224.0 200.0 202.0 410.0 1,405.0 $ 283,416.7 Five-Year Capital Improvement Program Transportation ($000) Adopted Year 1 FY 2009 Project Name Transportation - Traffic Signals Changeable Message Signs Communication System Improvements Control Center to South Tucson Connection Harrison/Golf Links Communication Project Intelligent Transportation System Improvements Intelligent Transportation System: ATLAS Living Transportation Laboratory Regional Transportation Data Network South 6th Avenue and 14th Street HAWK Stone Avenue and Cushing Street HAWK Traffic Signal Network Expansion Traffic Signal and Control Equipment Valencia Road Fiber Optic Cabling $ 61.0 $ 272.0 110.2 165.0 42.0 33.1 40.5 387.0 160.0 160.0 530.0 460.0 202.0 Sub-Total $ 2,622.8 Department Total $ 90,308.9 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Approved Year 2 FY 2010 $ Five Year Total -0- $ 250.0 -0-0-0-0-01,340.0 -0-0-0430.0 -0- -0- $ 250.0 -0-0-0-0-01,000.0 -0-0-0-0-0- -0- $ -0-0-0-0-0-025.0 -0-0-0-0-0- -0-0-0-0-0-0-0-0-0-0-0-0-0- $ 61.0 772.0 110.2 165.0 42.0 33.1 40.5 2,752.0 160.0 160.0 530.0 890.0 202.0 2,020.0 1,250.0 25.0 -0- $ 5,917.8 $ 103,418.5 $ $ 96,171.4 $ $ $ 117,532.5 $ 72,316.5 $ 479,747.8 Source of Funds Summary 2000 General Obligation Bond Funds Capital Agreement Fund: PAG Capital Agreement Fund: Pima County Bonds Federal Highway Administration Grants Highway User Revenue Fund Highway User Revenue Fund: Contributions Highway User Revenue Fund: In-Lieu Fees Mass Transit Fund: Federal Grants Mass Transit Fund: User Fees and General Fund Regional Transportation Authority Fund Road & Park Impact Fee Fund: East District Road & Park Impact Fee Fund: Southeast District Road & Park Impact Fee Fund: West District State Infrastructure Bank Federal Pass-Through Department Total $ -0- $ -0- $ -0- $ -0178.5 $ -03,672.0 5,706.0 4,750.0 6,500.0 1,200.0 2,000.0 6,037.3 8,000.0 8,000.0 9,004.0 15,095.0 8,278.0 7,525.0 5,000.0 1,248.0 856.4 1,212.0 859.0 1,309.0 200.0 200.0 200.0 200.0 200.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 29,724.4 18,718.3 16,954.2 14,099.9 11,377.5 1,934.4 485.0 1,200.0 1,200.0 1,200.0 34,442.6 53,262.8 56,439.9 78,148.6 44,230.0 -0-0750.0 100.0 100.0 -0-0-0-0250.0 -0-0-0-01,700.0 -0-0-05,005.0 5,995.0 $ 90,308.9 F-19 $ 103,418.5 $ 96,171.4 $ 178.5 20,628.0 25,237.3 44,902.0 5,484.4 1,000.0 5,000.0 90,874.3 6,019.4 266,523.9 950.0 250.0 1,700.0 11,000.0 $ 117,532.5 $ 72,316.5 $ 479,747.8 Five-Year Capital Improvement Program Tucson Water ($000) Project Name Tucson Water - Potable Source Development CAVSARP Well Pump Improvements Drill Production Wells Monitor Wells New Well Equipping Pressure Tank Replacement Production Well Sites Wellfield Upgrades Sub-Total Tucson Water - Recharge and Recovery Southern Avra Valley Storage & Recovery Project Sub-Total Tucson Water - Potable Storage Avra Valley Augmentation-Irvington Reservoir Disinfection Equipment Upgrades Martin Reservoir - Liner Replacement Rauscher Reservoir Liner Reservoir Roof Replacements Southeast G Zone Reservoir Southern Avra Valley Reservoir & Booster Station Thornydale/Tangerine C Zone Reservoir Valley View Reservoir Liner Sub-Total Tucson Water - Potable Pumping Plant Avra Valley D Zone Pressure Regulating Valves CAVSARP Booster Expansion CAVSARP/BKW Farms Raw Water Booster Diamond Bell Ranch G-I Zone Booster Modification I-1 Well and Booster Modifications Pumping Facility Modifications Rockcliff Booster Improvements Well I-002B Upgrades Sub-Total Adopted Year 1 FY 2009 $ Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Approved Year 2 FY 2010 600.0 $ 1,300.0 500.0 925.0 120.0 50.0 500.0 600.0 $ 1,300.0 257.0 3,425.0 160.0 50.0 1,000.0 600.0 $ 1,500.0 -02,600.0 160.0 50.0 1,000.0 600.0 $ 1,500.0 -03,400.0 250.0 50.0 1,000.0 Five Year Total 600.0 $ 3,000.0 1,500.0 7,100.0 309.0 1,066.0 2,600.0 12,950.0 250.0 940.0 75.0 275.0 1,000.0 4,500.0 $ 3,995.0 $ 6,792.0 $ 5,910.0 $ 6,800.0 $ 6,334.0 $ 3,667.0 $ -0- $ -0- $ -0- $ -0- $ 3,667.0 $ 3,667.0 $ -0- $ -0- $ -0- $ -0- 3,667.0 -0- $ 320.0 655.0 -0100.0 900.0 30.0 3,553.0 -0- 4,000.0 120.0 -060.0 -02,900.0 -0-0600.0 $ -0120.0 -0640.0 -0-05,750.0 -0-0- $ -0120.0 -0-0-0-08,500.0 -0-0- $ -0- $ 4,000.0 800.0 120.0 -0655.0 -0700.0 -0100.0 -03,800.0 -014,280.0 -03,553.0 -0600.0 $ 120.0 $ 28,488.0 $ $ 29,831.0 $ $ 5,558.0 $ 7,680.0 $ 6,510.0 $ 8,620.0 $ -01,500.0 -0120.0 50.0 310.0 90.0 73.0 $ -0-0-0-0-0310.0 -0-0- $ -0-0-0-0-0310.0 -0-0- $ -0- $ -0-0-0-0310.0 -0-0- 150.0 -0250.0 -0-0310.0 -0-0- $ 150.0 1,500.0 250.0 120.0 50.0 1,550.0 90.0 73.0 $ 2,143.0 $ 310.0 $ 310.0 $ 310.0 710.0 $ 3,783.0 F-20 $ Five-Year Capital Improvement Program Tucson Water ($000) Project Name Tucson Water - Potable Transmission Avra Valley Transmission Main Augmentation CAVSARP Raw Water Augmentation Cathodic Protection for Critical Pipelines Pipeline Protection: Acoustic Monitoring Rehabilitation of Critical Transmission Mains Santa Rita Bel Air G Zone Transmission Main South Avra Valley Raw Water Delivery Pipeline South Avra Valley Recovered Transmission Main Southeast E Zone Transmission Main Swan to Wilmot Transmission Main Transmission Main Projects - General Union Pacific Railroad Potable Casing Extensions Sub-Total Tucson Water - Potable Distribution Distribution Main Projects - General Emergency Main Replacement Extensions for New Services On-Call Valve Replacement Program Payments to Developers for Oversized Systems Quadrant Main Replacements Redington Road Main Improvements Review Developer-Financed Potable Projects Road Improvement Main Replacements SAVSARP Collector Pipelines, Ph. I and II Samos Main Replacement Tanque Verde Road Main Replacement Tucson Airport Authority Distribution Main Water System Acquisitions Sub-Total Tucson Water - Potable New Services Fire Services Water Services Sub-Total Adopted Year 1 FY 2009 $ 280.0 $ -0300.0 100.0 130.0 -03,550.0 2,054.0 -0-0-0500.0 $ 6,914.0 $ $ F-21 4,430.0 200.0 10.0 200.0 100.0 -0-0850.0 6,986.0 60.0 -0-0-0-0- $ 12,836.0 2,000.0 $ 1,060.0 $ 3,060.0 1,117.0 $ 835.0 -0-0300.0 300.0 100.0 100.0 135.0 140.0 -02,085.0 -0-03,000.0 22,684.0 -0-0-0-0-0-0-0-0- $ 6,737.0 500.0 $ 200.0 10.0 860.0 100.0 435.0 305.0 850.0 3,872.0 5.0 1,388.0 276.0 750.0 300.0 $ 9,851.0 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Approved Year 2 FY 2010 -0250.0 300.0 -0145.0 -0-032,316.0 50.0 784.0 -0-0- $ 24,059.0 $ 33,845.0 $ $ -0200.0 10.0 200.0 100.0 -0-0850.0 7,000.0 5,400.0 -0-0-0-0- 2,000.0 $ 1,210.0 $ 3,210.0 $ $ 91,305.0 19,468 $ 24,398.0 200.0 1,000.0 10.0 50.0 200.0 1,660.0 100.0 500.0 -0435.0 -0305.0 850.0 4,250.0 8,000.0 33,408.0 -09,765.0 -01,388.0 -0276.0 -0750.0 -0300.0 $ 28,828.0 2,000.0 $ 1,210.0 $ 3,210.0 -0- $ 2,232.0 1,000.0 1,250.0 300.0 1,500.0 -0300.0 150.0 700.0 -02,085.0 -03,550.0 -060,054.0 700.0 750.0 7,000.0 7,784.0 10,600.0 10,600.0 -0500.0 $ 19,750.0 -0- $ 200.0 10.0 200.0 100.0 -0-0850.0 7,550.0 4,300.0 -0-0-0-0- $ 13,760.0 $ 13,210.0 2,000.0 $ 1,110.0 $ 3,110.0 $ Five Year Total $ 78,485.0 2,000.0 1,210.0 $ 10,000.0 5,800.0 $ 3,210.0 $ 15,800.0 Five-Year Capital Improvement Program Tucson Water ($000) Project Name Tucson Water - Potable General Plant CAVSARP Security Grant Eastside Maintenance Facility Facility Safety and Security Infrastructure La Entrada HVAC Replacement Meter Upgrade and Replacement Program Miscellaneous Land and Right-of-Way Acquisitions Monitoring Equipment Grant Plant #1 Relocation Assessment Responsive Meter Replacement Source Meter Replacement Sub-Total Tucson Water - Potable Treatment Clearwater Chemical Feed System Upgrades Sub-Total Tucson Water - Potable Process Control Arc Flash Service Upgrades Control Panel Replacements: Potable Process Control Projects - Future Remote Control System Upgrades Sub-Total Tucson Water - Capitalized Expense Capitalized Expense Sub-Total Tucson Water - Reclaimed Source Development Equip Reclaimed Well EW-008 Equip Reclaimed Wells EW-009 & EW-010 Reclaimed Extraction Well Drilling Reclaimed Storage and Recovery Sweetwater Wetlands Lining Project Sweetwater Wetlands Recharge Facility Upgrades Sub-Total Adopted Year 1 FY 2009 $ 620.0 6,100.0 567.0 1,378.0 1,460.0 10.0 250.0 200.0 250.0 685.0 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Approved Year 2 FY 2010 $ -0-01,148.0 -01,140.0 10.0 70.0 -0250.0 685.0 $ -0-01,167.0 -01,000.0 10.0 -0-0250.0 -0- $ -0-01,390.0 -0878.0 10.0 -0-0250.0 -0- $ $ 11,520.0 $ 3,303.0 $ 2,427.0 $ 2,528.0 $ -0- $ -0- $ -0- $ -0- $ $ -0- $ -0- $ -0- $ -0- $ 3,000.0 $ 350.0 -0550.0 1,800.0 $ 250.0 1,000.0 500.0 1,000.0 -0-0500.0 $ 50.0 -0-0500.0 $ 1,500.0 $ 550.0 $ 3,900.0 $ $ 3,550.0 6,000.0 $ 6,000.0 $ 6,000.0 $ -0- $ -01,420.0 -0600.0 10.0 -0-0250.0 -0- $ 2,280.0 620.0 6,100.0 5,692.0 1,378.0 5,078.0 50.0 320.0 200.0 1,250.0 1,370.0 $ 22,058.0 1,000.0 $ 1,000.0 $ 1,000.0 $ 1,000.0 $ 50.0 $ -0-0500.0 5,900.0 600.0 1,000.0 2,550.0 $ 550.0 6,000.0 $ $ 10,050.0 6,000.0 $ 30,000.0 $ 6,000.0 $ 6,000.0 $ 6,000.0 $ 6,000.0 $ 6,000.0 $ 500.0 -0-0-0180.0 201.0 $ -050.0 788.0 -0-0-0- $ -0950.0 -0-0-0-0- $ -0-0450.0 500.0 -0-0- $ $ 881.0 $ 838.0 $ 950.0 $ 950.0 $ 5,000.0 F-22 Five Year Total $ 30,000.0 -0- $ -0-05,000.0 -0-0$ 500.0 1,000.0 1,238.0 5,500.0 180.0 201.0 8,619.0 Five-Year Capital Improvement Program Tucson Water ($000) Project Name Tucson Water - Reclaimed Storage Dove Mountain Reclaimed Reservoir Regional Reclaimed Facility: Ina Road Reservoir Sub-Total Tucson Water - Reclaimed Pumping Plant Regional Reclaimed Facility: Ina Road Booster Regional Reclaimed Facility: Ina Road Pumping Regional Reclaimed Facility: Roger Road Pumping Roger Road Plant Booster Expansion Sub-Total Tucson Water - Reclaimed Transmission Reclaimed Emergency Main Enhancements Regional Reclaimed Facility Piping Modifications Sweetwater Recharge Facility Pipeline, Ph. II Sweetwater Recharge Facility Pipeline, Ph.I Sub-Total Tucson Water - Reclaimed Distribution Developer-Financed Reclaimed Systems System Enhancements: Reclaimed Sub-Total Tucson Water - Reclaimed New Services New Metered Services Sub-Total Tucson Water - Reclaimed Treatment Chlorine System Improvements Sub-Total Tucson Water - Reclaimed Process Control Control Panels: Reclaimed System Adopted Year 1 FY 2009 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Approved Year 2 FY 2010 $ -0- $ -0- 1,250.0 $ -0- $ -0- $ -0100.0 50.0 1,973.0 $ -0- $ 100.0 100.0 60.0 250.0 $ 500.0 100.0 -0- $ 2,123.0 $ 260.0 $ 850.0 $ 50.0 -0-0544.0 $ 50.0 -0-0-0- $ 50.0 25.0 40.0 -0- $ $ 594.0 $ 50.0 $ 115.0 $ 20.0 184.0 $ 20.0 100.0 $ $ 204.0 $ 120.0 $ 50.0 $ 50.0 $ 50.0 $ $ 50.0 $ -0- $ -0- $ -0- $ 50.0 $ -0- $ -0- $ -0- $ 1,250.0 100.0 $ 1,000.0 $ 1,100.0 350.0 $ 3,000.0 $ 3,350.0 $ 17,700.0 1,625.0 $ 600.0 500.0 -0- 8,583.0 50.0 $ 150.0 450.0 -0- 100.0 $ 125.0 -0-0- 300.0 300.0 490.0 544.0 $ 650.0 $ 225.0 $ 1,634.0 20.0 100.0 $ 20.0 100.0 $ 20.0 100.0 $ 100.0 584.0 $ 120.0 $ 120.0 $ 120.0 $ 684.0 $ 50.0 $ 50.0 $ 50.0 $ 250.0 50.0 $ 50.0 $ 250.0 $ -0- $ 50.0 $ -0- $ 50.0 50.0 $ $ 2,725.0 3,500.0 1,800.0 1,250.0 2,033.0 $ 50.0 $ $ 2,625.0 6,000.0 $ 7,700.0 6,000.0 10,000.0 $ 12,000.0 1,625.0 $ 500.0 500.0 -0- Five Year Total $ 140.0 $ 100.0 $ 100.0 $ 100.0 $ 250.0 $ 690.0 Sub-Total $ 140.0 100.0 100.0 100.0 250.0 $ 690.0 Department Total $ 60,650.0 F-23 $ $ 52,986.0 $ $ 66,971.0 $ $ 82,918.0 $ $ 89,152.0 $ 352,677.0 Five-Year Capital Improvement Program Tucson Water ($000) Project Name Adopted Year 1 FY 2009 Approved Year 2 FY 2010 Projected Requirements Year 3 Year 4 Year 5 FY 2011 FY 2012 FY 2013 Five Year Total Source of Funds Summary 2005 Water Revenue Bond Funds Future Water Revenue Bonds Tucson Water Fund: Federal Grants Tucson Water Revenue and Operations Fund Water Infrastructure Reserve Fund Department Total $ 40,773.0 $ 9,939.0 -024,016.0 542.0 70.0 14,335.0 18,961.0 -05,000.0 $ $ 60,650.0 $ 66,971.0 F-24 $ 52,986.0 -038,727.0 -028,244.0 -0- $ -040,549.0 -042,369.0 -0- $ 82,918.0 $ -032,345.0 -056,807.0 -0- $ 50,712.0 135,637.0 612.0 160,716.0 5,000.0 $ 89,152.0 $ 352,677.0 Adopted Biennial Budget Summary Fiscal Years 2009 and 2010 Section G Glossary 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. G-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. G-2 GLOSSARY OF TERMS Term Definition CUSTOMER The recipient of a product or service provided by the city. Internal customers are city departments, employees, or officials who receive products or services provided by other city departments. External customers are citizens, neighborhoods, community organizations, businesses, or other public entities who receive products or services provided by a city department. DEBT SERVICE The amount required to retire the principal and pay the interest on outstanding debt. ENCUMBRANCES Obligations in the form of purchase orders, contracts, or other commitments that are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise extinguished. ENTERPRISE FUND An accounting entity established to account for the acquisition, operation, and maintenance of governmental facilities and services which are entirely or predominantly self-supporting. EQUIPMENT An item of machinery or furniture having a unit cost of more than $5,000 and an estimated useful life of more than one year. Heavy equipment and machinery that are capital improvements are included in the capital budget and are not considered equipment items in the operating budget. EXPENDITURE Any authorization made for the payment or disbursing of funds during the fiscal year. 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 Children, Families, and Seniors; Environment, Planning, and Resource Management; Neighborhoods, Public Safety, and Emergency Preparedness; Transportation; Economic and Workforce Development; and Rio Nuevo/Downtown, Arts, Culture, and History [See Section B, “Strategic Priorities”]. G-3 GLOSSARY OF TERMS Term Definition FULL-TIME EQUIVALENT POSITION (FTE) A full-time position, or part-time position converted to a decimal equivalent of a full-time position, based on 2,080 hours per year. For example, a summer lifeguard working for four months, or 690 hours, would be equivalent to .33 of a full-time position. FUND An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources, together with all related liabilities, for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations. GENERAL FUND A fund used to account for all general purpose transactions of the city that do not require a special type of fund. INTER ACTIVITY TRANSFERS Transactions between city organizations or funds that would be treated as revenues or expenditures if they involved parties external to the city. Transactions may be charged against other organizations or funds. 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. G-4 GLOSSARY OF TERMS Term Definition OUTCOME The result or community benefit derived from programs or services expressed as a measure and used to evaluate quality or effectiveness. Examples of outcomes are the number of traffic signals operating trouble-free on a daily basis and the percent of customers satisfied with park conditions. OUTPUT A quantitative measure of activities or efforts undertaken to provide a service or program. Examples of outputs are the number of responses to emergency 9-1-1 calls and the number of tons of recyclable materials collected. OUTSIDE AGENCIES A group of organizations which are neither associated with, nor allocated to, any particular city department. Economic Development, Cultural Enrichment, Community Health and Safety, Mayor and Council Appointed Commissions, Annual Community Events, and Tucson Community Cable Corporation (Access Tucson) are the major program groupings for outside agencies. PERFORMANCE MEASURE An annual indicator of achievement or measure of production for a program or a unit as defined in the organization of the budget. Measures may be expressed as a number count, fraction, or percent of achievement. Examples are the number of water meters read, number of customer calls received, or percent of customers rating the service as “good” or higher. PERSONAL SERVICES The costs of compensating employees of the City of Tucson, including salaries and employee benefit costs, such as health, dental, and life insurance, city contributions for retirement, social security, and workers’ compensation insurance. PRIMARY PROPERTY TAXES All ad valorem taxes, except the secondary property taxes, which can be used for any lawful purpose. PROGRAMS Desired output-oriented accomplishments which can be measured and achieved within a given time frame. Achievement of the programs advance the activity and organization toward fulfillment of a corresponding need. PROJECTS Unique assignments having a finite time span and a deliverable; normally associated with capital improvements such as roadways, neighborhood facilities, etc. RECURRING REVENUES Revenue sources available on a continuing basis to support operating and capital budgetary needs. 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. G-5 GLOSSARY OF TERMS Term Definition SECONDARY PROPERTY TAXES Ad valorem taxes or special property assessments used to pay the principal, interest, and redemption charges on any bonded indebtedness or other lawful long-term obligation issued or incurred for a specific purpose by a municipality, county, or taxing district; and assessments levied by or for assessment districts and for limited purpose districts other than school districts and community colleges pursuant to an election to temporarily exceed (up to one year) budget, expenditure, or tax limitations. SECONDARY TAX RATE The rate per one hundred dollars of assessed value employed in the levy of secondary property taxes. The assessed value derived from the current full cash value (market value) is the basis for computing taxes for budget overrides, bonds, and for sanitary, fire, and other special districts. SERVICES Costs which involve the performance of a specific service by an outside organization or other city organization. Examples of services include consultants, utilities, and vehicle maintenance. STREET AND HIGHWAY BONDS Revenue bonds which are secured by the city's Highway User Revenues and used for the construction of street, highway, and related capital projects. SUNSET CLAUSE A provision, inserted in a set of regulations, for the expiration of specified arrangements should certain conditions prevail or the initiative is not extended past the agreed upon time frame. TAX LEVY The total amount to be raised by general property taxes for purposes specified in the Tax Levy Ordinance. TAX RATE The amount of tax levied for each one hundred dollars of assessed valuation. G-6 ACRONYMS AND INITIALISMS Acronym/Initialism Definitions ADA ALS AMP APDM ARS ATLAS Americans with Disabilities Act Advanced Life Support Asset Management Project Alternative Procurement Delivery Method Arizona Revised Statutes Advanced Traffic and Logistics Algorithms and Software CAFR CAP CAVSARP CAWCD CDBG CHRPA CIFP CIP CNG COP CPI CWAC Comprehensive Annual Financial Report Central Arizona Project Central Avra Valley Storage and Recovery Project Central Arizona Water Conservation District Community Development Block Grant Community Home Repair Project of Arizona Capital Improvement Funded Program Capital Improvement Program Compressed Natural Gas Certificates of Participation Consumer Price Index Citizens’ Water Advisory Committee DNR DOT DSD DUI Department of Neighborhood Resources Department of Transportation Development Services Department Driving Under the Influence EOP and IPR EMS EPA Equal Opportunity Programs and Independent Police Auditor Emergency Medical Service Environmental Protection Agency FSP FSS FTA FY Financial Sustainability Plan Family Self-Sufficiency Federal Transit Administration Fiscal Year GIS Geographic Information Systems HAWK HazMat HHW HOPE HUD HURF HVAC-R High-Intensity Activity Crosswalk Hazardous Materials Household Hazardous Waste Housing Opportunities for People Everywhere Housing and Urban Development Highway User Revenue Fund Heating, Ventilation, Air Conditioning and Refrigeration System ICMA IFPP IGA I-NET ISF IT International City/County Management Association Impact Fee Project Plan Intergovernmental Agreement Institutional Network Internal Service Fund Information Technology G-7 ACRONYMS AND INITIALISMS Acronym/Initialism Definitions JFS Juvenile Fire Stopper LAN LTAF Local Area Network Local Transportation Assistance Fund MLK MRF Martin Luther King Materials Recovery Facility OSHA O&M Occupational Safety and Health Administration Operating and Maintenance PAG pCard PEG PSTA Pima Association of Governments Procurement Card Public, Educational, Government Operating Support Public Safety Training Academy RTA RTDN Regional Transportation Authority Regional Transportation Data Network SAVSARP SWAT South Avra Valley Storage and Recovery Project Special Weapons and Tactics TUSD TCC TCG TFD TPAC TPD TSRS TUSD Tucson Unified School District Tucson Convention Center Tucson City Golf Tucson Fire Department Tucson-Pima Arts Council Tucson Police Department Tucson Supplemental Retirement System Tucson Unified School District USACE UNIX United States Army Corps of Engineers Official Trademark for the Computer Operating System VANS VLT VOIP Vacant and Neglected Structures Vehicle License Tax Voice Over Internet Protocol WAN WEB Wide Area Network World Wide Web-Internet G-8 Adopted Biennial Budget Summary Fiscal Years 2009 and 2010 Section H Index INDEX Acronyms and Initialisms ...................................................................................................................................... Area and Population Growth Charts ................................................................................................................... G-7 D-1 Biennial Budget Calendar for Fiscal Years 2009 and 2010............................................................................... Budget Adoption Resolution No. 20960 ........................................................................................................... Budget Overview .................................................................................................................................................... iii C-9 A-9 Capital Budget Summary .......................................................................................................................................... Capital Projects Funds .............................................................................................................................................. City Manager’s Message, City of Tucson Adopted Fiscal Year 2009 Biennial Budget ................................... City of Tucson Annual Salary Scale - Elected and Mayor/Council Appointed Officials............................... City of Tucson Annual Salary Scale - Exempt Schedule ..................................................................................... City of Tucson Annual Salary Scale - Fire - Exempt Schedule........................................................................... City of Tucson Annual Salary Scale - Fire - Non-Exempt Schedule ................................................................. City of Tucson Annual Salary Scale - Golf - Exempt Schedule ......................................................................... City of Tucson Annual Salary Scale - Hourly Non-Permanent Classifications Non-Exempt Schedule..................................................................................................................................... City of Tucson Annual Salary Scale - Information Technology - Exempt Schedule ...................................... City of Tucson Annual Salary Scale - Legal - Exempt Schedule ........................................................................ City of Tucson Annual Salary Scale - Non-Exempt Schedule............................................................................ City of Tucson Annual Salary Scale - Police - Exempt Schedule....................................................................... City of Tucson Annual Salary Scale - Police - Non-Exempt Schedule ............................................................. City of Tucson Area and Population Growth Charts .......................................................................................... City of Tucson Components of the Total Financial Plan Fiscal Year 2009 ..................................................... City of Tucson Organization Chart Fiscal Year 2009 .......................................................................................... City of Tucson Officials and Directors .................................................................................................................. City of Tucson Property Tax Summary.................................................................................................................. City of Tucson Residential Property Owner Tax Valuation Fiscal Year 2008 Property Taxes..................... Community Profile .................................................................................................................................................... F-1 E-40 A-1 E-59 E-59 E-60 E-63 E-61 E-64 E-60 E-61 E-62 E-60 E-63 D-1 E-1 i ii C-7 C-8 D-4 Debt Service Funds ................................................................................................................................................... Department Projects Five Year Capital Improvement Program..................................................................... Distinguished Budget Presentation Award ......................................................................................................... E-36 F-8 vi Enterprise Funds........................................................................................................................................................ Explanation of City Funds ....................................................................................................................................... Expenditures - Fiscal Year 2009 Adopted Summary and Pie Chart.................................................................. Expenditures - Fiscal Year 2010 Approved Summary and Pie Chart ............................................................... E-33 E-9 E-3 E-5 Financial Policies and Practices ............................................................................................................................... Full-Time Equivalent Positions General Purpose Funds and Other Funds Fiscal Years 2009 and 2010............................................................................................................................. C-4 H-1 E-57 INDEX General Fund.............................................................................................................................................................. Glossary of Terms ..................................................................................................................................................... E-19 G-1 How to Use This Budget .......................................................................................................................................... iv Index .................................................................................................................................................................... Internal Service and Fiduciary Funds ..................................................................................................................... H-1 E-38 Legal Requirements Imposed by the State............................................................................................................. Legal Requirements Imposed by the City Charter................................................................................................ C-1 C-2 Number of City Employees per 1,000 Population Chart .................................................................................... D-2 Officials and Directors.............................................................................................................................................. Organization Chart Fiscal Year 2009...................................................................................................................... ii i Property Tax Summary ............................................................................................................................................. C-7 Residential Property Owner Tax Valuation Fiscal Year 2008 Property Tax .................................................... Revenue Descriptions ............................................................................................................................................... Revenue Detail - All Funds Summary .................................................................................................................... Revenues and Expenditures Comparisons ............................................................................................................ Revenues and Expenditures Comparisons and Fund Balance - General Fund ............................................... Revenues and Expenditures Comparisons and Fund Balance - Other Funds................................................. Revenues and Expenditures Summary-Adopted Fiscal Years 2009 and 2010 Biennial Budget ................... Revenues and Expenditures Summary Fiscal Year 2009 by Operating and Capital ....................................... Revenues and Expenditures Summary Fiscal Year 2010 by Operating and Capital ....................................... Revenues - Fiscal Year 2009 Adopted Sources and Pie Chart............................................................................ Revenues - Fiscal Year 2010 Approved Sources and Pie Chart ......................................................................... C-8 E-42 E-17 E-8 E-15 E-16 E-12 E-13 E-14 E-2 E-4 Selected Economic Indicators-Tucson Metro Area ............................................................................................. Special Revenue Funds.............................................................................................................................................. Statement Required by Arizona Revised Statutes §42-17102 ............................................................................. Strategic Priorities and Financial Sustainability ..................................................................................................... Summary of Expenditures by Department............................................................................................................ Summary by Character of Expenditures ................................................................................................................ D-3 E-26 C-6 B-1 E-6 E-7 Ten-Year Adopted City Staffing Comparison with Fiscal Years 2009 and 2010 ............................................ E-55 Use of General Purpose Funds Compared to Total Revenues .......................................................................... E-11 H-2