About the Cover Artist’s Rendition: Tempe Town Lake Pedestrian Bridge A new pedestrian bridge will be located atop the existing downstream dam at the west end of the Tempe Town Lake connecting the south and north shores near the western dam at the Tempe Center for the Arts. The bridge will connect existing bike and pedestrian multiuse paths on the north and south sides of the lake and provide a link to Tempe Center of the Arts, Scottsdale’s Indian Bend Wash path system, as well as the Mill Avenue District. Tempe Mayor & City Council i This page intentionally left blank. Annual Budget FY 2011/12 Charles W. Meyer City Manager Ken Jones Finance and Technology Director Cecilia Velasco-Robles Budget Manager Tom Mikesell Lead Budget and Finance Analyst Mark Day Budget and Finance Analyst Adam Williams Budget and Finance Analyst Anita Erspamer Executive Assistant iii This page intentionally left blank. Introduction Budget Award ............................................................................................................................................. ix City of Tempe Mission Statement ............................................................................................................... xi Organizational Chart ................................................................................................................................... xiii Budget Message ......................................................................................................................................... 1 Tempe Community Profile........................................................................................................................... 7 City Limits ................................................................................................................................................... 10 Demographics ............................................................................................................................................. 10 Budget Overview Budget Overview Contents ......................................................................................................................... Budget Policies ........................................................................................................................................... Fund Summary ........................................................................................................................................... Financial Program Summary....................................................................................................................... Financial Program Summary for Revenues and Expenditures/Expenses ................................................... Budget Process Flowchart .......................................................................................................................... Budget Process Summary .......................................................................................................................... Budget Calendar ......................................................................................................................................... Components of Total Financial Program ..................................................................................................... Governmental Funds: Ten Year Fund Balance Trends ............................................................................ Special Revenue Funds: Ten Year Fund Balance Trends ........................................................................ Enterprise Funds: Ten Year Fund Balance Trends ................................................................................... Operating Budget Overview ........................................................................................................................ Citywide Overview ...................................................................................................................................... Council Committees .................................................................................................................................... Program Budget at a Glance....................................................................................................................... Per Capita Expenditures by Program.......................................................................................................... Program by Fund Summary ........................................................................................................................ Program by Department Summary ............................................................................................................. Residential Cost of Service ......................................................................................................................... Personnel Summary: Ten Year History..................................................................................................... Comprehensive Financial Plan Comprehensive Financial Plan Contents .................................................................................................... Comprehensive Financial Plan Overview.................................................................................................... Forecast Methodology ................................................................................................................................ Major Revenue Assumptions ...................................................................................................................... Major Expenditure Assumptions ................................................................................................................. General Fund Forecast Discussion ............................................................................................................. Special Revenue Funds: Projected Revenues and Expenditures.............................................................. Transit Fund Forecast Discussion ........................................................................................................... Performing Arts Fund Forecast Discussion ............................................................................................. Transportation Fund Forecast Discussion ............................................................................................... Rio Salado and Community Facilities District (CFD) Funds Forecast Discussion ................................... Enterprise Funds: Projected Revenues and Expenditures.......................................................................... Water/Wastewater Fund Forecast Discussion......................................................................................... Solid Waste Fund Forecast Discussion ................................................................................................... Golf Fund Forecast Discussion ............................................................................................................... Cemetery Fund Forecast Discussion ...................................................................................................... Debt Service Fund Forecast Discussion.................................................................................................. Financial Action Plan .................................................................................................................................. Revenue Information Total Revenue Contents ............................................................................................................................. Total Revenue............................................................................................................................................. Total Revenue by Source............................................................................................................................ Components of Total Revenue ................................................................................................................... Comparative Operating Revenue by Major Source and Fund..................................................................... General Governmental Revenue: Ten Year Historical Trends .................................................................. City Sales Tax ......................................................................................................................................... Transient Lodging Tax ............................................................................................................................. v 13 14 18 19 20 21 22 24 26 27 28 29 30 38 39 40 41 42 43 44 45 47 48 49 50 52 53 55 55 57 59 61 63 63 65 67 69 71 73 75 76 77 78 79 82 82 83 City Property Tax ..................................................................................................................................... Salt River Project In-Lieu Tax .................................................................................................................. State Shared Sales Tax........................................................................................................................... State Shared Vehicle License Tax .......................................................................................................... State Shared Income Tax ........................................................................................................................ Charges for Services/Cultural and Recreational ...................................................................................... Charges for Services/Development Related............................................................................................ Fines and Forfeitures .............................................................................................................................. Special Revenue: Ten Year Historical Trends .......................................................................................... Transit Tax .............................................................................................................................................. Performing Arts Tax ................................................................................................................................ Highway User Tax ................................................................................................................................... Local Transportation Assistance Fund .................................................................................................... Community Development Block Grant/Section 8 Housing Grant ............................................................. Enterprise Revenue: Ten Year Historical Trends ...................................................................................... Water/Wastewater User Fees ................................................................................................................. Solid Waste Fees .................................................................................................................................... Golf Course Fees .................................................................................................................................... Performance Budget Performance Budget Contents .................................................................................................................... Performance Budget Summary ................................................................................................................... Per Capita Performance ............................................................................................................................. Performance Benchmarking........................................................................................................................ City Organizational Chart ............................................................................................................................ Mayor and Council ...................................................................................................................................... City Manager............................................................................................................................................... City Attorney ............................................................................................................................................... City Clerk .................................................................................................................................................... City Court .................................................................................................................................................... Community Development ............................................................................................................................ Administration/Economic Development ................................................................................................... Building Safety ........................................................................................................................................ Planning .................................................................................................................................................. Housing ................................................................................................................................................... Community Relations Office........................................................................................................................ Administration/Mayor and Council Staff .................................................................................................. Neighborhood Services ........................................................................................................................... Communication and Media Relations ...................................................................................................... Community Services ................................................................................................................................... Administration.......................................................................................................................................... Arts and Library ....................................................................................................................................... Recreation Centers and Programs .......................................................................................................... Social Services ........................................................................................................................................ Diversity Office ............................................................................................................................................ Finance and Technology ............................................................................................................................. Administration.......................................................................................................................................... Finance.................................................................................................................................................... Budget / Tax and License ........................................................................................................................ Information Technology ........................................................................................................................... Fire .............................................................................................................................................................. Administration/Fire Prevention ................................................................................................................ Emergency/Medical Services .................................................................................................................. Training/Professional Development ......................................................................................................... Homeland Security/Special Operations ................................................................................................... Support Services/Personnel Safety ......................................................................................................... Human Resources ...................................................................................................................................... Tempe Learning Center Office .................................................................................................................... Internal Audit Office .................................................................................................................................... Police .......................................................................................................................................................... Office of the Chief .................................................................................................................................... Operations ............................................................................................................................................... vi 84 85 86 87 88 89 90 91 92 92 93 94 95 96 97 97 98 99 101 102 103 104 105 106 108 110 112 114 116 118 119 120 122 124 125 126 127 128 129 130 132 133 136 138 139 140 142 144 146 147 148 149 150 151 152 154 156 158 159 161 Support Services ..................................................................................................................................... Organizational Services........................................................................................................................... Public Works ............................................................................................................................................... Administration.......................................................................................................................................... Engineering ............................................................................................................................................. Field Operations ...................................................................................................................................... Transportation ......................................................................................................................................... Water Utilities .......................................................................................................................................... Capital Improvements Budget Capital Improvements Program Contents ................................................................................................... Capital Improvements Program Overview................................................................................................... 2011-12 CIP Process .................................................................................................................................. Capital Budget Project Composition and FY 2011-12 Project Highlights .................................................... Capital Improvements Program Financing .................................................................................................. Capital Budget Impact on the Operating Budget ......................................................................................... Significant Nonrecurring Capital Project Expenditures by Major Program .................................................. Capital Improvements Project Map ............................................................................................................. 2011-12 Capital Improvements Program Summary .................................................................................... 2011-12 Capital Improvements Program Source of Funds ......................................................................... Capital Budget Strategic Focus................................................................................................................... Capital Budget, Debt and Property Tax Levy Policy Statements ................................................................ Legal Bonded Debt Limits ........................................................................................................................... Long-Term Debt Summary.......................................................................................................................... Capital Budget, Debt Service and Property Tax Rate: Ten Year Historical Trends ..................................... Capital Improvements Program Project Listing and Descriptions ............................................................... Enterprise Program ................................................................................................................................. 2011-12 CIP Projects - Water Program ............................................................................................... 2011-12 CIP Projects - Wastewater Program ...................................................................................... Special Purpose Program........................................................................................................................ 2011-12 CIP Projects - Transit Program .............................................................................................. 2011-12 CIP Projects - Rio Salado Program ....................................................................................... General Purpose Program....................................................................................................................... 2011-12 CIP Projects - Police Protection Program .............................................................................. 2011-12 CIP Projects - Fire Protection Program.................................................................................. 2011-12 CIP Projects - Storm Drains Program .................................................................................... 2011-12 CIP Projects - Park Improvements / Recreation Program ...................................................... 2011-12 CIP Projects - General Governmental Program ..................................................................... Transportation Program........................................................................................................................... 2011-12 CIP Projects - Transportation and Rights-of-Way Improvements Program ............................ 2011-12 CIP Projects - Traffic Signals and Street Lighting Program ................................................... Schedules and Summaries Schedules and Summaries Contents .......................................................................................................... Property Tax Ordinance .............................................................................................................................. Budget Resolution....................................................................................................................................... Budget Schedules ....................................................................................................................................... Schedule A Summary Schedule of Estimated Revenues and Expenditures/Expenses ....................... Schedule B Summary of Tax Levy and Tax Rate Information ............................................................. Schedule C Summary by Fund of Revenues Other Than Property Taxes ........................................... Schedule D Summary by Fund of Other Financing Sources and Interfund Transfers ......................... Schedule E Summary by Department of Expenditures / Expenses Within Each Fund ........................ Schedule F Summary by Department / Fund ....................................................................................... Budget Basis, Units and Changes .............................................................................................................. Financial Structure and Organization .......................................................................................................... Personnel Summary ................................................................................................................................... Personnel Changes for FY 2011-12............................................................................................................ Personnel Schedules .................................................................................................................................. Glossary of Terms....................................................................................................................................... Index ........................................................................................................................................................... Office of Management and Budget Staff ..................................................................................................... vii 162 163 164 166 167 168 171 174 177 178 179 180 181 184 187 188 189 190 191 192 194 195 196 197 197 198 207 211 212 215 217 218 221 224 226 231 236 237 243 249 250 251 252 252 253 254 256 257 258 260 261 262 263 264 305 313 317 This page intentionally left blank. The Government Finance Officers Association of the United States and Canada (GFOA) presented an Award for Distinguished Budget Presentation to the City of Tempe for its fiscal year beginning July 1, 2010. In order 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 communications medium. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. ix Assistant City M This page intentionally left blank. Purpose… Tempe creates outstanding value for those we serve through shared vision, superior service and sustainable practices. We Value… People We appreciate the talents of each person and encourage responsible decision making at the most appropriate level. We recognize the importance of personal and professional development. Creativity We encourage imaginative problem solving, innovation, resourcefulness and responsible risk taking. Quality We provide superior services and are committed to continuous improvement. We are attentive to the changing needs of the people we serve. Integrity We are honest, accountable and trustworthy. Openness We are accessible and work as a team by sharing information, ideas, resources and responsibility. Respect We welcome individual and professional differences and treat everyone with dignity, courtesy and sensitivity. Diversity We promote diversity in the workforce to meet the needs of a diverse community. We recognize that with diversity comes strength. xi Assistant City M This page intentionally left blank. City Organizational Chart Residents of Tempe Mayor and City Council City Clerk Brigitta Kuiper brigitta_kuiper@tempe.gov City Attorney City Manager andrew_ching@tempe.gov charlie_meyer@tempe.gov Charlie Meyer Andrew Ching Police City Court MaryAnne Majestic m_majestic@tempe.gov Assistant City Manager Chief of Police Tom Ryff Jeff Kulaga Jeff_Kulaga@tempe.gov tom_ryff@tempe.gov Community Relations Office Fire Fire Chief Mark Simmons mark_simmons@tempe.gov Community Relations Manager Shelley Hearn Finance and Technology Diversity Office ken_jones@tempe.gov rosa_inchausti@tempe.gov Community Development Internal Audit Office chris_anaradian@tempe.gov tom_duensing@tempe.gov shelley_hearn@tempe.gov Finance and Technology Director Ken Jones Community Development Director Chris Anaradian Public Works Diversity Manager Rosa Inchausti City Auditor Tom Duensing Tempe Learning Center Public Works Director Don Bessler Organizational Dev Administrator Gretchen Maynard don_bessler@tempe.gov gretchen_maynard@tempe.gov Community Services Community Services Director Kathy Berzins kathy_berzins@tempe.gov Human Resources Human Resources Director Renie Broderick renie_broderick@tempe.gov xiii Assistant City M This page intentionally left blank. August 29, 2011 To the Honorable Mayor and City Council: Transmitted herein is the City of Tempe’s (City) Fiscal Year (FY) 2011-12 financial program. While the City continues to face fiscal challenges due to the uncertain pace of the economic recovery, the FY 2011-12 adopted budget reflects only moderate expenditure reductions and targeted revenue increases while maintaining the levels of service anticipated by our residents. The financial program represents a reasonable approach to balancing the City’s budget and positioning the City for long-term financial stability. Addressing the Continued Challenge In May, 2010, Tempe voters approved a four-year increase to the city sales tax to avoid further cuts to the General Fund, including occupied Police and Fire positions. The additional 0.2% temporary tax went into effect July 1, 2010, increasing the sales tax rate from 1.8% to 2.0% on all taxable items except groceries. At the time of the increase, the City Council directed that the City plan for the June 30, 2014 expiration of the additional 0.2% sales tax component. In order to meet the goal, General Fund budget adjustments will be implemented in each of the next several fiscal years to avoid deficits when the temporary sales tax expires. Citywide, departments were asked to examine departmental reductions, efficiencies, and revenue enhancements. These adjustments for FY 2011-12 are consistent with the long-range plan to stabilize the General Fund and help maintain the fund balance within our current policy of 20% to 30% of annual revenues. That level of cash reserves provides economic stabilization during economic downturns. Aside from the General Fund, other operating funds have also suffered during the economic downturn. Budget balancing plans have been implemented for the Golf, Transit and Transportation (Highway User) funds. All City operating funds continue to be closely monitored. In addition to budget balancing measures for the operating funds, the City Council also adopted a new property tax stabilization policy that produces a predictable revenue stream and limits future increases in total City property tax collections to a CPI inflationary index, not to exceed 3.3% annually, plus taxes collected from new property added to the tax rolls. This policy was adopted to deal with the unpredictable nature of assessed property valuations that the City experienced over the last several years and to ensure payment of existing and future planned debt. Budget Overview The financial program for FY 2011-12 approximates $413 million and includes funding for both operating and capital purposes. This amount represents a $7.1 million or 1.7% decrease from the prior year and is due to a reduced operating budget. As shown in the following table, the operating budget is projected to decrease by $8.2 million or 2.2%, while the capital budget increased by $1.1 million or 2.2% in the upcoming year. The decrease in the Operating Budget is largely due to phased-in budget adjustments for the General Fund and planned budget balancing measures in other operating funds, including the elimination of 18.75 full-time equivalent positions for a savings of $1.4 million this fiscal year. The slight increase in the Capital Improvements Budget results from a sizable decrease in the Enterprise program, offset by restored funding in the Special, General, and Transportation programs. Total Financial Program FY 2010-11 Budget FY 2011-12 Budget Operating Budget Percent Change Capital Improvements Budget Percent Change $371,433,189 $363,257,449 (2.2%) $49,337,804 2.2% Total Financial Program Percent Change $419,697,944 $48,264,755 1 $412,595,253 (1.7%) FINANCIAL PROGRAM SUMMARY The graphs below illustrate the relative shares of operating and capital appropriations in FY 2010-11 and FY 2011-12. Total Financial Program FY 2010-11 $420 (in Millions) Operating Budget $371.4 / 88% FY 2011-12 $413 (in Millions) CIP Budget $48.3 / 12% Operating Budget $363.3 / 88% CIP Budget $49.3 / 12% OPERATING BUDGET The following table presents a summary breakdown of the operating budget by fund. Operating Budget Summary FY 2010-11 Budget General Fund FY 2011-12 Budget Percent Change 1.7% $156,701,101 $159,357,645 Special Revenue Funds Transportation Transit Performing Arts CDBG/Section 8 11,667,658 64,026,251 8,511,128 16,417,949 9,297,186 53,863,809 8,565,287 17,001,929 (20.3%) (15.9%) 0.6% 3.6% Debt Service Fund 22,111,500 21,548,322 (2.5%) Enterprise Funds Water/Wastewater Solid Waste Golf Cemetery 75,772,343 14,114,556 1,731,353 379,350 75,985,498 15,166,357 2,290,553 180,863 0.3% 7.5% 32.3% (52.3%) $371,433,189 $363,257,449 (2.2%) Total Operating Budget Operating Budget Highlights Following are the major policy decisions contained in the recommended budget: Continued freezes of employees’ compensation at FY 2008-09 levels resulting in an estimated $4.2 million savings Continued employee furloughs resulting in $5.0 million in savings Base budget reductions of $1.7 million Increased health care prescription co-pays resulting in approximately $240,000 in savings Additional revenues projected at $600,000 Final year of deferring the advanced funding of retiree defined-benefit health plans 2 The General Fund budget includes the following increases: Higher retiree health care premiums ($1.0 million) for increased benefit costs and additional retirees added to the plan Rio Salado Fund merged into the General Fund ($600,000) Fuel budget ($500,000) for higher gas and diesel costs Retirement System contributions ($300,000) Water, sewer, and refuse expenses ($230,000) Contractual increases to software costs ($216,000) After application of the policy changes, the General Fund reserve is projected to approximate 25% of revenues as of June 30, 2012. CAPITAL BUDGET The City’s five-year Capital Improvements Program (CIP) covering FY 2011-12 through FY 2015-16 totals $216.4 million. The first year of the five-year CIP, which is formally adopted by the City Council, totals $49.3 million for FY 2011-12. The City Council adopted a levy-based approach versus a rate driven approach to fund the five-year CIP. The property tax levy approach will develop a stable and predictable revenue stream to pay existing and future planned debt and stabilize the property tax levy. Capital Budget Highlights The Capital Budget for FY 2011-12 primarily consists of major projects that are already underway or that are ongoing in nature. Instances of new project funding will occur primarily in programs with a specialized funding source. The following are some highlights of the Capital Budget: Comparison of FY 2010-11 and FY 2011-12 Capital Budgets FY 2010-11 FY 2011-12 Capital Program Budget Budget Enterprise Water $31,046,338 $19,161,000 12,600,000 10,999,000 Transit 446,000 2,789,099 Rio Salado 327,000 4,000,000 Police 890,954 2,500,246 Fire 600,000 849,800 Wastewater Special Purpose General Purpose Storm Drains Park Improvements General Governmental 0 278,000 150,000 1,415,000 1,929,463 1,613,600 Transportation Transportation and R.O.W. 275,000 4,765,888 Continued bond funding for Water and Wastewater Traffic Signals/Street Lighting 0 966,171 projects($30.2 million) including: Total $48,264,755 $49,337,804 - Continued funding for improvements to the South Tempe Water Treatment Plan (STWTP) ($12.1 million) - Continued funding for improvements at the Johnny G. Martinez Water Treatment Plant ($4.1 million) st - Continued funding in the Wastewater program for ongoing modifications to the 91 Avenue Wastewater Treatment Plant ($7.5 million) Continued funding for transportation and rights-of way improvements ($4.8 million) New design and engineering for replacement of the Rio Salado Town Lake Downstream Dam ($4.0 million) INCOME/OUTGO The following pie charts represent the City’s income and outgo. Revenues are grouped by major category, while expenditures are shown by program area and by type of expenditure (such as personal services). Local taxes (e.g., city sales tax and property tax) continue to be the largest City revenue sources, representing 40% of the FY 2011-12 total revenue budget. Other major revenue sources include user charges (such as water service and solid waste fees), intergovernmental revenue, and bond proceeds. The Environmental and Public Safety programs represent the greatest areas of appropriation, accounting for 54% of the total financial program in 2011-12. 3 Where the Money Comes From by Source of Funds Intergovernmental, 17% User Charges, 25% Bonds, 10% Other, 8% Local Taxes, 40% Where the Money Goes by Type of Program Public Safety, 25% Environmental Health, 29% Transportation, 17% Development Services, 7% General Services, 12% Community Services, 10% Where the Money Goes by Line Item Category Supplies/ Services, 27% Debt Service, 16% Capital Projects/ Outlay, 13% Personal Services, 38% Other, 6% The final chart depicts appropriations by expenditure type. Personal Services (salaries, wages and benefits) and Supplies/Services represent the largest portions of the total financial program. 4 FINANCIAL ASSESSMENT Tempe has developed and maintained a strong financial position through conservative financial management and adherence to sound fiscal analysis and policies. Long-Range Financial Plan To provide a framework for gauging the financial sustainability of resource allocation decisions, five year financial plans are generated for each of the City’s operating funds on an annual basis. Each forecast is produced from a baseline perspective that portrays the projected operating margin for each fund assuming current service levels. Assumptions about future revenue and expenditure growth variables are researched from external and internal sources and incorporated into the forecast models. The resulting models provide a five-year projection of the ending balance for each fund, which in conjunction with the relevant fund balance policy, provides a starting point for operating budget development. Fund Balances One measure of a city’s financial strength is the level of its fund balances. The City’s unreserved fund balance in the General Fund is projected to be $35.4 million as of June 30, 2011, assuming departments spend all appropriated funds. The increase from 2010 to 2011 is due to a slowly improving local sales tax base, largely fueled by the 0.2% temporary increase in the sales tax rate. As shown by the line in the graph to the right, the projected balance represents 22.5% of FY 2010-11 General Fund revenue. Our adopted policy for General Fund unreserved fund balance coverage ranges between 20-30% of General Fund revenue. The City’s Water/Wastewater fund has an estimated fund balance of $27.5 million, while the remaining Enterprise funds (Golf, Solid Waste, and Cemetery programs) will have a combined fund balance of approximately $5.2 million as of June 30, 2011. Unreserved General Fund Balance ($Millions) 60.0 50.0 40.0 30.0 20.0 10.0 0.0 2007 2008 Fund Balance 2009 2010 2011 35% 30 25 20 15 10 5 0 Fund Balance Coverage Financial Reserves Another indicator of a city’s financial strength is the level of its financial reserves. The City has established financial reserves to absorb unforeseen liabilities. The City currently has self-insurance reserves totaling $8.8 million to protect the City against potential claims. Included in the Water/Wastewater Fund and financed from current revenues is $1.0 million of contingency funding for unanticipated emergencies. The General Fund’s contingency appropriation has been suspended due to the downturn in the economy. Debt Management Plan In addition to the management of existing debt and associated reserves, the City also forecasts future debt within a framework of policy priorities and financial capacity. Current and anticipated capital improvement objectives, available operating revenue, tax base fluctuations, and reserve levels are all evaluated on an ongoing basis to estimate the extent to which the City may issue additional tax supported debt. This active debt management aids in the development of a sustainable debt portfolio and is a key financial practice contributing to the maintenance of the City’s favorable bond ratings. Bond Ratings The City’s bond ratings are further evidence of its financial strength. Tempe’s general obligation bonds are currently rated AAA by Fitch, Aa1 by Moody’s, and AAA by Standard & Poor’s. Having Fitch AAA solid financial policies, prudent financial management practices and strong financial reserves are principle reasons for these excellent bond ratings. These Moody's Aa1 high ratings translate directly into lower interest rates on the City’s debt. Standard & Poor's AAA Development Activity Tempe is at the geographic center of the Phoenix-Mesa metropolitan area and very competitive when compared to neighboring cities in terms of overall economic development activity. The vacancy rate for Tempe industrial properties as of June 2011 was 9.4%, compared to a rate of 10.5% in second quarter 2010. Similarly, office vacancies as of June 2011 were 14.7%, compared to 17.0% in the second quarter of 2010. The vacancy rate for retail properties decreased by nearly 1.0% during the same period. In addition to the decreased vacancy rates, there were a number of private sector projects that were under construction or completed in the past fiscal year. These projects include, University of Phoenix at Fountainhead Corporate Center, housing at Fifth and Farmer, the opening of DataSphere Technologies and the location of iQor Inc. 5 During fiscal year 2010-11 city staff facilitated the retention, expansion and relocation of 13 businesses that employ over 1,900 people and are a vital part to the local economy. These projects generated more than fifteen million dollars in direct capital investment for the local economy. MAJOR POLICY CONSIDERATIONS Appropriation decisions, ultimately approved by the City Council, were developed within the context of strategic direction provided by the City’s Council Committees and long-range financial policy direction developed during City Council budget sessions. Council Committees The City Council committees prepare work plans designed to guide strategic issues, goals and objectives on an annual basis to provide more long-range focus to resource allocation choices. The city’s departmental performance goals and objectives are aligned to current Council strategic goals as follows: Education Partnerships Housing and Social Service Programs Neighborhood Quality of Life and Revitalization Sports, Tourism, Recreation, Arts and Cultural Development Technology, Economic and Community Development Transportation The overarching intention is to delineate long-range goals, formulate a cohesive strategy for each of the defined areas, and develop departmental action plans to advance the city toward those strategic goals. Council Budget Policy Direction The following budget policy direction is incorporated within the assumptions of the Comprehensive Financial Plan. Maintain existing service levels to the extent possible Manage financial reserves at sustainable levels Maximize organizational efficiencies Adjust fees to recover City costs CONCLUSION Though the economy continues to provide the City with financial challenges, we expect conditions to improve over the long-term. Through sound management of resources and continued focus on long-range financial planning, the City will adapt to the current situation and be on a strong foundation for the future. The following proposed budget is committed to the City Council’s policy of preserving Tempe’s quality of life and solid financial position by maintaining sufficient fund balances and reserves, achieving a balanced budget, and making decisions within the context of our long-range financial capacity study and debt management plan. With final budget adoption, I want to thank the Mayor and City Council, residents of Tempe and City staff for their time and effort throughout this budget process. Respectfully submitted, Charles W. Meyer City Manager 6 TEMPE COMMUNITY PROFILE Where is Tempe, Arizona? Date of Incorporation - November 26, 1894 Date Charter Adopted - October 19, 1964 Form of Government - Council - Manager A Brief History of Tempe Following the establishment of Fort McDowell on the eastern edge of central Arizona’s Salt River Valley in 1865, enterprising farmers moved into the area. They dug out the irrigation canals left by the prehistoric Hohokam people and built new ones to carry Salt River water to their fields. Valley farms soon supplied food to Arizona’s military posts and mining towns. The first settlers to move to the Tempe area, south of the Salt River and east of Phoenix, were Hispanic families from southern Arizona. They helped construct the first two irrigation canals, the Kirkland-McKinney Ditch and the San Francisco Canal, and started small farms to the east and west of a large butte (Tempe Butte). In 1872, some of these Mexican settlers founded a town called San Pablo east of Tempe Butte. Another settlement, known as Hayden’s Ferry, developed west of Tempe Butte. Charles Trumbull Hayden, owner of a mercantile and freighting business in Tucson, homesteaded this location in 1870. Within a few years, he had built a store and flourmill, warehouses and blacksmith shops, and a ferry. This community became the trade center for the south side of the Salt River Valley. Both settlements grew quickly and soon formed one community. The town was named Tempe in 1879. “Lord” Darrell Duppa, an Englishman who helped establish Phoenix, is credited with suggesting the name. The sight of the butte and the wide river, and the nearby expanse of green fields, reminded him of the Vale of Tempe in ancient Greece. As more farmers came to settle in the Valley and started raising alfalfa and grains for feeding livestock, the Tempe Irrigating Canal Company provided all of necessary water. With a network of canals that extended several miles south of the river, irrigation water was carried to more than 20,000 acres of prime farmland. Crops of wheat, barley, and oats ensured a steady business for the Hayden Mill. The milled flour was hauled to forts and other settlements throughout the territory. By the 1890s, some farmers started growing new cash crops such as dates and citrus fruits. In 1885, the Arizona legislature selected Tempe as the site for the Territorial Normal School, which trained teachers for Arizona’s schools. Soon, other changes in Tempe promoted the development of the small farming community. The Maricopa and Phoenix Railroad, built in 1887, crossed the Salt River at Tempe, linking the town to the nation’s growing transportation system. The Tempe Land and Improvement Company was formed to sell lots in the booming town. Tempe became one of the most important business and shipping centers for the surrounding agricultural area. The completion of Roosevelt Dam in 1911 guaranteed enough water to meet the growing needs of Valley farmers. On his way to dedicate the dam, former President Theodore Roosevelt applauded the accomplishments of the people of central Arizona and predicted that their towns would grow to become prosperous cities. Less than a year later, Arizona became the 48th state, and the Salt River Valley was well on its way to becoming the new population center of the Southwest. 7 Tempe was a small agricultural community through most of its history. After World War II, Tempe began growing at a rapid rate as veterans and others moved to the city. The last of the local farms quickly disappeared. Through annexation, the city reached its current boundaries by 1974. Tempe had grown into a modern city. The town’s small teachers college had also grown, and in 1958, the institution became Arizona State University. Tempe’s commercial center along Mill Avenue declined during these years. Prompted by Tempe’s centennial in 1971, Mill Avenue was revitalized into an entertainment and shopping district that attracts people from throughout the Valley. Currently, Tempe is the eighth largest city of the State, with a strong modern economy based on commerce, tourism, and electronics manufacturing. Government and Organization The City operates under a council-manager form of government. The Mayor is elected for four years and six council members are elected at large on a non-partisan ballot for staggered four-year terms. The City Council appoints the City Manager who has full responsibility for carrying out Council policies and administering City operations. The City Manager appoints City department heads as specified in the City’s Charter. Quality of Life Special Events More than 150 special events throughout the City annually Tempe Music Festival brings a weekend of worldrenowned acts to Tempe Town Lake Spring and Fall Festival of the Arts Juried outdoor art shows with more than 300 artists and 300,000 art lovers Insight Bowl and Block Party 150,000 people come for football and New Year’s Eve revelry New Times 10K State’s largest 10K with 12,000 running along Tempe Town Lake and Mill Avenue Fourth of July Largest celebration in the state; fireworks over Tempe Town Lake draw 100,000 plus Sports Tempe Diablo Stadium Spring Training Baseball home for Los Angeles Angels of Anaheim, Sun Devil Football and other Arizona State University sports Minutes away from Phoenix Suns Basketball, Diamondbacks Baseball, Phoenix Coyotes Hockey and Cardinals Football, Ironman Arizona, PF Chang Rock-N-Roll Marathon and many other pro-am sporting events Parks and Golf Courses 50 parks and sports complexes in 40 square miles,1,550 acres of park and open space Papago Park is one of the nation’s largest natural parks Town Lake offers five miles of water recreation and park land in Tempe’s downtown Four golf courses, including ASU Karsten, a Pete Dye championship course, and two municipal golf courses: Ken McDonald with 69,996 Rounds of Play and Rolling Hills with 56,513 Rounds of Play Entertainment and Culture Tempe Center for the Arts Concerts, plays, gallery shows and special events -Edna Vihel Cultural Center for community art classes -Tempe Improv for nationally known comedians Tempe Historical Museum, Arizona Historical Museum, Pederson House Museum Offer examples of life in Tempe and around the state 8 Private school opportunities exist with Tempe including Preparatory Academy and a variety of parochial and charter schools Nelson Fine Arts Center, Ceramics Research Center, Mars Space Flight Facility and Center for Meteorite Studies Among the 30 galleries and museums at ASU Marquee Theatre Popular concerts and new music ASU Gammage Offers Broadway shows and famous speakers Arizona State University Tempe is home to the main campus of Arizona State University. There are approximately 56,000 students and 10,336 employees. Bachelors, Masters and Ph.D. programs are available. Areas of specialty include: Barrett Honors Shopping Tempe Marketplace 175 shops and restaurants with free live music on weekends Mill Avenue District Historic Mill Avenue offers authentic urban experiences with shops and restaurants Arizona Mills Mall Indoor outlet mall with 175 stores and restaurants,including IMAX and Gameworks Emerald Center Shops and IKEA Home furnishings-based retail corridor Transportation Network Freeways Six freeways connect Tempe including Loop 202, Loop 101, Interstate 10, I-143, I-153 and US 60; More than 1.1 million cars use Tempe’s freeways daily according to the Maricopa Association of Governments Bus Service Lines run every day, with 15-minute, peak-period service Most routes run until 1 a.m. Monday through Saturday, and until 10 p.m.; Sunday bus service connects with routes in Mesa, Chandler, Scottsdale and Phoenix Free Orbit system uses mini buses to serve residential areas and connect them to shopping centers, major bus routes, schools and businesses Light Rail 20-mile line connects Tempe to downtown Phoenix and west Mesa Light rail bridge over Town Lake displays a colorful LCD light show when trains cross Nine Tempe stops include ASU, business districts, Mill Avenue District, Tempe Town Lake, Apache Boulevard and Papago Park Center Bus service connects to light rail stations and creates a seamless valley-wide transit system Bicycling Named a Bicycle Friendly Community by the League of American Bicyclists More than 150 miles of bike paths in Tempe College, College of Design, College of Education, Ira A. Fulton School of Engineering, College of Law, College of Liberal Arts and Sciences, College of Nursing, College of Public Programs, Division of Undergraduate Academic Services (DUAS), Herberger College of Fine Arts, and the W.P. Carey School of Business. Tempe Town Lake Tempe Town Lake is a vibrant destination located adjacent to the City’s downtown Mill Avenue District. The lake’s paths and parks make it a hub of recreation and leisure time in Tempe. More than 100 special events happen annually at the lake, ranging from small runs to major concerts and festivals. The lake has also had a significant economic impact to the City as businesses and hotels enjoy tourist traffic. Demographics of Tempe Population 161,719 With Bachelor’s Degree or higher 39% Median Age 29 Median Household Income $49,173 Median Home Value $264,000 Education Primary and Secondary Education 7 public high schools 4 public middle schools 18 public elementary schools Tempe schools have among the state’s best test scores 9 City Limits 1999 City Limits 1960 1893 - 1940 Sal t River Channel McKellips Rd Sal t River Channel Van Buren St S.P. R.R. Curry Rd Sal t River RedCha Mountain Freeway nnel Rio Salado Pkwy University Dr Apache Blvd Broadway Rd 1970 I-10 Southern Ave Sal 48th St Superstition Freeway 1950 t River Channel Baseline Rd Guadalupe Rd Sal t River Channel Price Rd Rural Rd Kyrene Rd Priest Dr I-10 Warner Rd McClintock Dr Western Canal Elliot Rd 1980 Ray Rd Sal t River Scale 0 1/2 1 mile YearYear Area Year 18931893 1.0 1.0 18941894 1.8 1.8 19001900 1.8 1.8 19101910 1.8 1.8 19201920 1.8 1.8 1930 1.8 1930 1.8 Year 1940 1950 1950 1955 1955 1960 1960 1965 1965 1970 1970 Year 1940 Area 1.8 2.62.6 4.54.5 17.5 17.5 21.7 21.7 25.3 25.3 Year 1.8 Year 1975 1980 1985 1990 1995 2000 Channel Year Year Area 197536.0 36.0 198036.0 36.0 198538.5 38.5 199039.3 39.3 199539.8 39.8 40.0 2006 40.1 Demographics Population by Ethnicity Population (Census) 2010 2005 2000 1995 1990 1985 1980 1970 1960 1950 U.S. Census Interim Census U.S. Census Interim Census U.S. Census Interim Census U.S. Census U.S. Census U.S. Census U.S. Census Hispanic or Latino Non Hispanic or Latino 161,719 165,796 158,625 153,821 142,165 132,942 106,743 63,550 24,897 7,906 Population by Race White African American Asian American Indian and Alaska Native Native Hawaiian and Pacific Islander Other Identified by two or more Population by Sex/Age Male Female Under 18 18 & over 20 - 24 25 - 34 35 - 49 50 - 64 65 & over 34,092 127,627 84,200 77,519 27,208 134,511 30,009 29,327 26,089 23,723 13,660 10 117,457 9,551 9,217 4,671 645 13,793 6,385 Building Permits (Calendar Year Data) Number Value ($000) 2010 778 172,684 2009 1,067 173,131 2008 1,249 426,439 2007 1,563 471,370 2006 1,744 545,435 2005 1,416 287,539 2004 1,183 253,451 2003 1,303 174,689 2002 1,321 128,924 2001 1,301 189,010 Major Employers Arizona State University Maricopa Community College Wells Fargo and Company Safeway Salt River Project Motorola Honeywell International Kyrene Elementary School District JP Morgan Chase US Airways City Sales Tax General Transit Performing Arts Total Land Use (2010) (%) Residential 46% Civic/ Educational 4% Private and Open Space/Recreation/ Water 12% Largest Property Taxpayers Arizona Mills LLC 1.56% Arizona Public Service Company 0.87% Qwest Corporation 0.76% Honeywell International, Inc. 0.66% Tempe Fountainhead Corporate LLC 0.56% State Farm Mutual Auto Insurance Company 0.54% Verizon Wireless 0.48% St. Paul Properties Inc. 0.45% Fly (CD) LLC/ AWHQ LLC 0.41% Elections (2010) Registered voters: Primary 84,629 General 77,439 Voter turnout: Primary 15,295 General 28,943 % Voting: Primary 18% General 37% School Registration Tempe Elementary District Tempe Union High School District ASU (Fall 2010) Tempe Campus Bond Rating Fitch Standard and Poor's Moody's Employment Trends Employment 2010 97,360 2009 96,916 2008 100,640 2007 100,809 2006 99,381 1.4% 0.5% 0.1% 2.0% Property Tax Rate Primary 0.6572 Secondary 1.1291 Total $1.7863 Mixed Use 11% Commercial/ Industrial 27% 10,089 4,703 4,236 3,996 3,331 3,000 3,000 2,559 2,377 1,898 Police Sworn Personnel Non-Sworn Personnel Total Avg. Emergency Response Time (min.) Crime Index (CY 2009) Part I Crime Per 1,000 Capita (CY 2009) 11,966 13,762 58,371 Fire Sworn Personnel Non-Sworn Personnel Total AAA AAA Aa1 341 150 491 5:19 9,303 58 153 29 182 Fire Stations 6 Avg. Emergency Response Time (min.) 4:18 Response to emergency medical incidents 16,260 Total number of calls 19,653 Unemployment Rate 8.0% 7.8% 4.5% 2.8% 3.0% Solid Waste Residential Accounts Serviced Commercial Accounts Serviced Solid Waste Collected (tons) Water/Wastewater Active Accounts Serviced Water Treated (billions of gallons) Sanitary Sewers (miles) 11 33,775 3,644 141,455 42,500 16.8 549 Community Comparisons Tempe is part of the greater Phoenix metropolitan area, which is the economic, political, and population center of the state. Popularly referred to as the Valley of the Sun, this area includes a number of adjacent communities with distinct municipal jurisdictions. The following section provides a perspective on the relative populations of the largest cities in the Valley as well as key comparative cost of service data. This information was obtained from city Budget Offices, as well as printed and online budget documents. Population (2010 Decade Census) Phoenix 1,445,632 Operating Budget (FY 2011-12) Million $ Phoenix 4,646.5 Mesa 439,041 Mesa 885.8 Chandler 236,123 Scottsdale 607.8 Glendale 226,721 Chandler 546.1 Scottsdale 217,385 Glendale 493.8 Gilbert 208,453 Peoria 460.0 Tempe 161,719 Gilbert 396.2 Peoria 154,065 Tempe 363.3 Property Tax (as of July 1, 2011) (per $100 assessed Value) Phoenix $1.82 Glendale Peoria Incorporated City Limits sq. miles Phoenix 515.0 1.60 Scottsdale 185.0 1.44 Peoria 170.5 Tempe 1.79 Mesa 136.9 Chandler 1.27 Chandler 63.3 Gilbert 1.15 Glendale 58.5 Scottsdale 1.09 Gilbert 68.0 Mesa 0.45 Tempe 40.1 Sales Tax (as of July 1, 2011) Glendale 2.20% Phoenix 2.00% Tempe 2.00% Peoria 1.80% Mesa 1.75% Scottsdale 1.65% Chandler 1.50% Gilbert 1.50% 12 City of Tempe 2011-12 Annual Budget Budget Overview Contents Budget Policies ........................................................................................................................................................................ 14 Fund Summary ......................................................................................................................................................................... 18 Financial Program Summary .................................................................................................................................................... 19 Financial Program Summary for Revenues and Expenditures/Expenses ................................................................................ 20 Budget Process Flowchart ....................................................................................................................................................... 21 Budget Process Summary........................................................................................................................................................ 22 Budget Calendar ...................................................................................................................................................................... 24 Components of Total Financial Program .................................................................................................................................. 26 Governmental Funds: Ten Year Fund Balance Trends ........................................................................................................... 27 Special Revenue Funds: Ten Year Fund Balance Trends ...................................................................................................... 28 Enterprise Funds: Ten Year Fund Balance Trends ................................................................................................................. 29 Operating Budget Overview ..................................................................................................................................................... 30 Citywide Overview .................................................................................................................................................................... 38 Council Committees ................................................................................................................................................................. 39 Program Budget at a Glance .................................................................................................................................................... 40 Per Capita Expenditures by Program ....................................................................................................................................... 41 Program by Fund Summary ..................................................................................................................................................... 42 Program by Department Summary ........................................................................................................................................... 43 Residential Cost of Service ...................................................................................................................................................... 44 Personnel Summary: Ten Year History ................................................................................................................................... 45 13 City of Tempe 2011-12 Annual Budget Budget Policies The budgetary policies specified below provide a general framework of goals and objectives for the operating budget, debt management, financial reserves, financial reporting and the capital budget. Strong policies provide a standard against which current budgetary performance can be measured and proposals for future programs evaluated. Operating Budget Policies Current revenue will be sufficient to support current operating expenditures. Status: FY 2011-12 estimated General Fund operating revenue ($160.1 million) to expenditures ($160.1 million) Ratio 1:1 Financial systems will be maintained to monitor expenditures, revenue and program performance on an ongoing basis. Status: Financial Services maintains ongoing monitoring systems with quarterly reviews including an automated payment and purchase requisition system Revenue and expenditures will be projected for the next five years and will be updated annually. Status: Projections completed in the Comprehensive Financial Plan (2011 Update) Debt Management Policies Long-term debt will not be issued to finance current operations. Status: None issued to finance current operations Debt Service Reserve will maintain a fund balance between 4% and 8% of total outstanding general purpose debt at the end of each fiscal year. Status: FY 2011-12 16.2%: Debt Service Reserve is scheduled to gradually spend down to policy levels within a ten year forecast horizon Capital projects financed through the issuance of bonds will be financed for a period not to exceed the expected useful life of the project. Status: The following debt issues are planned for FY 2011-12 with debt amortization terms ranging from 5 to 20 years: $5.9 million for police, fire, park improvement, and general governmental projects; $29.2 million for water and wastewater projects and $5.4 million for transportation projects Capital Budget Policies As required by City Charter, a five-year capital improvements program will be developed and updated annually, including anticipated funding sources. Status: FY 2011-12 Annual CIP budget of $49.3 million adopted representing the first year of a 5-year, $216.4 million CIP program The City will coordinate development of the capital improvements budget with development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts. Status: FY 2011-12 operating and maintenance impacts of new capital projects is estimated at $1,053,306: the estimated net operating and maintenance impacts of new capital projects between FYs 2012-13 and 2015-16 is $717,500 The City will maintain all its physical assets at a level adequate to protect its capital investment and to minimize future maintenance and replacement costs. Status: Capital maintenance program approved in Capital Improvements Program budget includes water and sewer line replacement and repair, beginning phases of replacement of the town lake dam, City radio system replacement, fire apparatus replacement ,City facilities rehabilitation, local and major street maintenance, and neighborhood park equipment replacements 14 City of Tempe 2011-12 Annual Budget The City will establish an appropriate mix of bonded debt and pay-as-you-go financing in the funding of capital projects. Status: Sources of Funds ($ Millions) FY 2011-12 Water / Wastewater Bonds $29.2 General Obligation Bonds 11 Outside Revenue 4.1 Fund Balances 4.2 Pay-As-You-Go Financing 0.8 Total Sources of Funds $49.3 Financial Reserve Policies The City will continue its healthy financial reserve position. Unreserved fund balance coverage for the General Fund will maintain a range of 20% to 30% of General Fund revenue. Status: Unreserved Fund Balance FYE 10* Revenue FY 2009-10 Unreserved Fund Balance Coverage $30.0 M $149.2 M 20.1% Estimated Unreserved Fund Balance FYE 11* Revenue FY 2010-11 Unreserved Fund Balance Coverage $35.4 M $157.2 M 22.5% Estimated Unreserved Fund Balance FYE 12 Revenue FY 2011-12 Unreserved Fund Balance Coverage $36.3 M $160.1 M 22.7% For comparative purposes, the amounts listed include the Rio Salado Fund as this fund was merged into the General Fund effective 2011-12. 15 City of Tempe 2011-12 Annual Budget The City will maintain an unreserved fund balance of no less than 12 months of anticipated revenue in the Water/Wastewater Fund, and a minimum of 10% and 15% of anticipated revenue in the Solid Waste and Golf funds, respectively. Status: Water/Wastewater Solid Waste Golf Water/Wastewater Solid Waste Golf Water/Wastewater Solid Waste Golf Unreserved Fund Balance FYE 10 Revenue FY 2009-10 Unreserved Fund Balance Coverage $34.4 M $62.3 M 55.2% 202 $5.6 M $15.4 M 36.3% 133 ($0.4) M $1.6 M (25.0%) 0 Days Coverage Estimated Unreserved Fund Balance FYE 11 Revenue FY 2010-11 $30.0 M $66.5 M 45.1% 165 $6.3 M $15.1 M 41.7% 152 ($0.7) M $1.4 M (50.0%) 0 Unreserved Fund Balance Coverage Days Coverage Estimated Unreserved Fund Balance FYE 12 Revenue FY 2011-12 $24.6 M $71.0 M 34.6% 126 $6.4 M $15.2 M 42.1% 154 ($0.7) M $2.3 M (30.4%) 0 Unreserved Fund Balance Coverage Days Coverage The Water/Wastewater Unrestricted Fund Balance is projected to fall below the policy goal due to a planned drawdown of retained earnings to partially support water/wastewater bond debt service payments which will facilitate the phasing in of new user rate increases which began in 2008. As new rates are phased in, the need to use retained earnings will be eliminated, and the fund balance will gradually build back to a level which will comply with financial policy. The Golf Fund is transitioning to a new business model involving the payment of a management fee to a private vendor for golf operations. Self-insurance reserves shall be maintained at a level which, together with purchased insurance policies, adequately indemnify the City's assets. Status: FY 2011-12 $8.8 million in self-insurance reserves which adequately indemnifies the City’s assets Financial Reporting Policies The City's accounting and financial reporting systems will be maintained in conformance with current accepted principles and standards of the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). Status: GFOA Certificate of Achievement for Excellence in Financial Reporting 16 City of Tempe 2011-12 Annual Budget Full disclosure will be provided in the general financial statements and bond presentations. Status: Notes to the financial statements and official bond statement provide full disclosure An annual audit will be performed by an independent public accounting firm with the subsequent issue of an official annual financial statement. Status: Unqualified independent audit report Property Tax Policy Annual property tax levy increase for existing property shall not exceed the lesser of inflation or 3.3%. Status: FY 2011-12 levy (0.8%) Financial Stability Several steps were taken to ensure our continued financial stability. These recommendations, listed under the Financial Action Plan in the Comprehensive Financial Plan, include the following steps: Prepared the Long-Range Forecast for all funds projecting revenue and expenditures over the next five years; semiannual forecast updates will commence in FY 2011-12. Developed Financial Policies for long-term financial stability; General Fund policy established minimum and maximum fund reserve levels to be maintained over the course of the five-year financial planning horizon; and debt policy provided a long-term planned strategy to predict revenue stream and stabilize property tax levy. Provide partial funding of the annual required contribution for Other Post Employment Benefits (OPEB). Building on the existing Benchmarking Program, developed a comprehensive citywide performance management system that executes, measures and tracks performance aligned with most important goals; system will assure constructive, two-way communication, continuous improvement and sustained productivity. Strategic Issues Program implemented to align purpose and provide strategic direction, leading to incorporation of recommended corresponding strategies and goals into the budget process. Continue Financial Policy Implementation and Monitoring. Expenditure Control will be directed at slowing growth by means of citywide line item reviews, modified base budget approach, and program sunsetting. Limit Midyear Adjustments which circumvent the normal budget process and pose a risk to careful long-range financial planning. Continue efforts in coalition with the League of Arizona Cities and Towns to help Protect State Shared Revenue from legislative changes at the state level. Review Benefits Program to explore such options as increasing deductibles, requiring greater participant contributions and/or modifying our benefits cafeteria programs. Provided City funded Health Reimbursement Accounts (HRA’s) for pre Medicare retirees rather than participating in the City’s self-insured health care plans. 17 City of Tempe 2011-12 Annual Budget Fund Summary Impact of budget decisions on the City’s financial position: The table below gives the estimated Operating and Capital Improvement unreserved fund balances for the 2011-12 fiscal year. Beginning balances approximate $135.2 million and the ending fund balances are estimated at $122.5 million. The decreases in fund balances reflect planned drawdowns to address projected budget shortfalls between revenues and expenditures resulting from the continued impact of the economic downturn. General Fund The fund balance in the General Fund will increase as continued long-term efforts are underway to maintain the fund balance to a range of 20% to 30% of General Fund revenue, per our current policy. Special Revenue Funds Fund balances in certain Special Revenue funds (Transit and Performing Arts) will be applied to assist the operating funds that have also been negatively impacted. The Transit Fund will continue to utilize fund balance to sustain operations pending planned adjustments to revenues and expenditures. The Performing Arts Fund will also continue to use fund balance to support operations until a significant amount of the fund’s debt obligations are retired in FY 2015-16. Debt Service The Debt Service fund is expected to increase by year end. The increasing fund balance coincides with a long-term planned strategy to develop a stable and predictable revenue stream by stabilizing the property tax levy, and minimizing the amount of taxpayer funds held in fund balance. In accordance with the City’s Debt management policies, the debt service fund will be utilized to pay down outstanding debt until the balance is maintained at an amount equal to between four and eight percent of outstanding property tax supported debt. Enterprise Funds Within the Enterprise Funds, the Cemetery and Golf funds have presented significant financial challenges, requiring special attention. The General Fund will cover the Cemetery’s debt service payments which reflect the only expenditures remaining in the fund. The new business model involving the payment of a management fee for golf operations and food and beverage services is expected to achieve financial sustainability for the Golf Fund. The drawdown of fund balance for the operation of the Water/Wastewater Program is consistent with the financial plan involving a period of steady increases to user charges to increase revenue to cover all operations and replenish the fund balance. Capital Improvements Fund Balances Capital Improvements fund balances account for dedicated residual revenue sources associated with completed projects, and newly received revenue sources for use toward specific project purposes. Balances are held in individual capital program funds for use toward the specific project purposes for which the original revenue sources were intended. With City Council approval, underutilized appropriations are re-appropriated for alternative or future capital projects coinciding with the purposes of each capital program fund. Currently the City does not maintain general purpose pay-as-you-go balances designated for the Capital Improvements Program. The City plans to accumulate reserves for pay-as-you-go capital financing as the economy recovers and sufficient revenues are generated. FY 2011-12 Estimated Fund General (inc Rio) Estimated Fund Total Balance Financial Budgeted Financial Expenditures Resources 06/30/2011 $35,412,168 Revenue Resources $160,081,122 $195,493,290 Adjusted $159,357,645 $36,135,645 Fund Interfund Transfer In (Out) $186,435 Balance 06/30/2012 $36,322,080 Special Revenue: HURF/LTAF 4,709,180 9,369,469 14,078,649 9,297,186 4,781,463 CDBG/Section 8 1,541,478 17,001,929 18,543,407 17,001,929 1,541,478 Performing Arts 4,022,423 6,776,100 10,798,523 8,565,287 2,233,236 Transit 8,376,126 47,324,887 55,701,013 53,863,809 1,837,204 Debt Service 42,672,352 22,282,656 64,955,008 21,548,322 43,406,686 (1,550,000) 3,231,463 1,541,478 2,233,236 1,550,000 (366,643) 1,470,561 (49,000) 44,907,686 Enterprise: Cemetery (626,542) 113,100 (513,442) 180,863 (694,305) Golf (698,627) 2,294,828 1,596,201 2,290,553 (694,352) (694,352) Solid Waste 6,345,175 15,231,809 21,576,984 15,166,357 6,410,627 6,410,627 30,045,580 71,017,104 101,062,684 75,985,498 25,077,186 131,799,313 351,493,004 483,292,317 363,257,449 120,034,868 Water Utilities TOTAL OPERATING Capital Improvements TOTAL FUNDS (694,305) 1,736,435 (429,600) 24,647,586 (2,395,243) $119,376,060 3,439,740 48,332,261 51,772,001 49,337,804 2,434,197 796,243 (137,435) 3,093,005 $135,239,053 $399,825,265 $535,064,318 $412,595,253 $122,469,065 $2,532,678 ($2,532,678) $122,469,065 18 City of Tempe 2011-12 Annual Budget Financial Program Summary The following table summarizes the revenues and expenditures for the City's Financial Program. FY 2011-12 Revenues Local Taxes, Licenses & Permits Intergovernmental Charges for Service Fines and Forfeitures Other Transit Highway User Revenue CDBG / Section 8 Housing Performing Arts Water / Wastewater Solid Waste Golf Cemetery Water / Wastewater G.O. Bonds Tax Supported G.O Bonds Outside Revenue Fund Balances Pay-As-You-Go Financing Total Revenues Expenditures Public Safety General Governmental Services Community Services Debt Service Development Services Transportation (Maintenance of Effort) Transit Highway User / Transportation Performing Arts Section 8 Housing CDBG Water / Wastewater Solid Waste Golf Cemetery Total Expenditures General Special Governmental Revenue Capital Enterprise Budget 125,049,607 31,231,933 10,257,097 8,427,007 7,398,134 47,324,887 9,369,469 17,001,929 6,776,100 71,017,104 15,231,809 2,294,828 113,100 $182,363,778 $80,472,385 $88,656,841 95,160,339 25,478,739 26,780,609 21,548,322 11,152,134 29,160,000 11,011,865 4,160,396 4,209,300 796,243 $49,337,804 3,350,046 1,891,600 1,415,000 785,824 125,049,607 31,231,933 10,257,097 8,427,007 7,398,134 47,324,887 9,369,469 17,001,929 6,776,100 71,017,104 15,231,809 2,294,828 113,100 29,160,000 11,011,865 4,160,396 4,209,300 796,243 $400,830,808 98,510,385 27,370,339 28,195,609 21,548,322 11,152,134 785,824 53,863,809 9,297,187 8,565,287 10,344,964 6,656,965 $180,905,967 Total Financial Program $88,728,212 19 2,789,099 5,732,059 75,985,498 15,166,357 2,290,553 180,863 $93,623,271 4,000,000 30,160,000 $49,337,804 56,652,908 15,029,246 8,565,287 10,344,964 6,656,965 79,985,498 45,326,357 2,290,553 180,863 $412,595,254 City of Tempe 2011-12 Annual Budget Financial Program Summary for Revenues and Expenditures/Expenses Total budgeted revenue in the FY 2011-12 Financial Program is approximately $401 million, reflecting an increase of approximate $14.4 million over the FY 2010-11 revenue budget. This increase is primarily attributable to projections for very modest improvement in local sales tax collections produced by the slowly recovering economy. Increased local sales tax collections impact the General Fund, and the Transit and Performing Arts Funds which fall under the Special Revenue Funds category below. Increases in user fee revenues generated by utility rate increases in the Water/Wastewater Fund produce the $5 million revenue increase in the Enterprise Fund shown below. Budgeted expenditures for FY 2011-12 total $412.6 million, representing a $7.1 million decrease from total budgeted expenditures in FY 2010-11. Total budgeted expenditures have decreased during this period largely due to significant economy related budget reductions in the Transit Fund, which is included under Special Revenue Funds below. On the other hand, the total budget reduction is partially offset by budget increases in the General Fund, and Water/Wastewater Fund which is included in the Enterprise Funds category. The differences between total revenue and total expenses where revenues are insufficient to pay for expenditures in the Special Revenue and Enterprise Funds represent drawdowns of fund balances. Revenues FY 2009-10 Actual FY 2010-11 Budget $149,173,440 $156,018,885 5% $157,246,687 1% $160,081,122 2% Special Revenue Funds 75,637,791 76,408,931 1% 79,354,749 4% 80,472,385 1% Enterprise Funds 79,334,900 83,554,952 5% 83,053,692 (1%) 88,656,841 6% Debt Service Fund 25,761,830 22,191,192 (13.9%) 22,030,533 (1%) 22,282,656 1% Capital Projects Fund 96,310,568 48,264,755 (50%) 48,264,755 0% 49,337,804 2% $426,218,529 $386,438,715 (9%) $389,950,416 1% $400,830,808 3% Revenues/Sources General Fund Total % Change FY 2010-11 Revised % Change FY 2011-12 Budget % Change Expenditures FY 2009-10 Actual FY 2010-11 Budget $174,749,469 $154,811,302 (11%) $151,531,573 (2%) $159,357,645 5% Special Revenue Funds 90,860,240 102,512,785 13% 89,708,422 (14%) 88,728,211 (1%) Enterprise Funds 85,798,161 91,997,602 7% 86,599,413 (6%) 93,623,271 8% Debt Service Fund 22,249,625 22,111,500 (1%) 20,443,097 (8%) 21,548,322 5% Capital Projects Fund 96,310,568 48,264,755 (50%) 48,264,755 0% 49,337,804 2% $469,968,063 $419,697,944 (11%) $396,547,260 (6%) $412,595,253 4% Expenditures/Uses General Fund Total % Change 20 FY 2010-11 Revised % Change FY 2011-12 Budget % Change City of Tempe 2011-12 Annual Budget Budget Process Flowchart The following flowchart depicts the City of Tempe’s Annual Budget process and timeline. Inform Stakeholders Obtain Input Review Operating Requests Advise Stakeholders of Outcome Solicit Feedback Submit Department Operating Requests Develop Annual Departmental Budgets Operating Budget Guidelines Work Study Session Prepare Long-range Forecast Models Adopt Tentative Operating Budget Public Hearing Adopt Final Budgets Operating Budget Guidelines Identify Strategic Issues Public Hearing, Levy Property Tax Adopt Tentative CIP Budget Prepare Debt Management Plan CIP Budget Guidelines Work Study Session Develop Annual Departmental CIP Budgets Submit CIP Requests Review CIP Requests … October November December Policy/Strategy Phase January February March April May June ... Review/Development Phase Financial Capacity Phase Budget Outreach Phase II Budget Outreach Outreach Phase Phase II Budget Needs Assessment Phase 21 Adoption/Implementation Phase City of Tempe 2011-12 Annual Budget Budget Process Summary Budget Process Overview Budget preparation allows departments the opportunity to reassess goals and objectives and the means for accomplishing them. Even though the budget is heard by the Mayor and Council in the spring and adopted by June 30, its preparation begins at least six months prior with projections of City reserves, revenue, expenditure limit requirements, and financial capacity. It is with this "groundwork" that departmental expenditure requests are made and subsequently reviewed. Policy/Strategy Phase The Council's goals and directives set the tone for the development of the budget. In fact, shortly after the budget is adopted, the Council meets to identify strategic priorities, issues, and projects impacting the next fiscal year’s budget. The Council identifies key strategic issues that will provide the direction and framework for the budget. It is within this general framework that departmental supplemental funding requests for additional funding are formulated. Aside from the Council's own objectives, the departments identify and discuss their own policy issues with the City Manager. Financial Capacity Phase Forecasting is an integral part of our decision-making process. Both long-range and short-range projections are prepared. The City's Comprehensive Financial Plan is updated annually to assess our current financial condition and future financial capacity, given our long-range plans and objectives. A five-year financial forecast is prepared for each major fund, projecting both expenditures and revenue. As a part of this phase, alternative scenarios are examined for their fiscal impact on each respective fund. Concurrent with the Comprehensive Financial Plan is the update of the Debt Management Plan, which provides a twenty year view of the City’s debt capacity. This planning process gauges the capacity to incur debt in the upcoming Capital Improvements Program given the City’s Financial Policy guidelines. Budget Outreach Phase Presentations by Budget Office staff at "budget kickoff" meetings include a discussion of citywide goals and objectives, budgeting guidelines for the operating and capital budgets, timelines, an overview of fiscal constraints, and resources available for allocation. The Budget Manual distributed at these meetings is designed to assist the departments in preparing all budget requests and forms. Needs Assessment Phase The departments have an opportunity to assess current conditions, programs, and needs. Examination of current departmental programs or positions for possible trade-offs, reduction, or elimination is strongly suggested. During this phase, departments are encouraged to thoroughly review all programs and services, assessing their value and priority to the residents of Tempe. Additionally, departments reassess service level standards and workload indicators. They then attempt to provide the "best fit" of resource allocation with service and workload estimates. From this process, they prepare preliminary departmental budgets. Review/Development Phase Within the framework of the City's financial capacity, Council and City Manager priorities and departmental needs assessments, budget requests are reviewed and a preliminary Citywide operating budget takes shape. The departments initially prepare and submit base budget worksheets reflecting allocation targets. The amount of the allocation is based on the department’s prior year budget. Supplemental requests are evaluated and the budget is presented at various levels: (1) base budget level, and (2) recommended level providing monies to implement new programs or expand existing City programs. 22 City of Tempe 2011-12 Annual Budget Adoption/Implementation Phase Prior to May 1, the City Manager submits to the Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. The property tax levy must be adopted by the third Monday in August. State law requires cities and towns with property taxes to adopt their tax rates annually. Management control of the budget is maintained by conducting monthly budget performance reviews throughout the fiscal year. They are aimed at examining expenditure patterns, and recommending corrective action to be taken during the year. Additionally, records are maintained to evaluate ongoing programs and services. Budget Roles and Responsibilities Every employee plays a role in budgeting, be it formulation, preparation, implementation, administration, or evaluation. Ultimately, of course, the department head, through the City Manager, is accountable to the City Council for the performance of departmental personnel in meeting specific objectives within resource allocation limits. Actual budget preparation responsibility can be identified more specifically: 1. The program cost center manager is responsible for (a) preparing cost estimates for the remainder of the current fiscal year; (b) projecting base budget requirements for the next year; and (c) developing other requests that change or revise the program so that it will be more effective, efficient, productive and economical. 2. The department manager and the division administrator are responsible for reviewing, modifying and assembling their cost center data into a departmental request package. Department heads should critically evaluate departmental objectives and prioritize requests. The preparation of budget requests, goals and objectives should coincide with the strategic issues set forth by the Council. 3. Internal Service Areas (Fleet and Information Technology Areas) will contact each department to coordinate the initial needs assessment, cost estimates, and recommendations. Replacement equipment (i.e., vehicles, hardware/software and communication equipment) will be submitted to the Budget Office by the Internal Service areas. Any new equipment required by the departments should reflect the cost estimates and recommendations from the Internal Service areas and be submitted by the departments to the Budget Office. Final review and recommendations for hardware/software and communication equipment will be the result of evaluating priorities within the departmental budget team process. 4. The Budget Manager and Analysts within the Finance and Technology Department are responsible for (a) preparing short and long-range revenue and expenditure forecasts, (b) assisting departments as requested in the preparation of supplemental requests, (c) analyzing supplemental requests and presenting that analysis to the Budget Team (Department Managers and the Financial and Technology Director), and (d) reviewing the linkage between budget requests and the City’s strategic issues. 5. The Budget Team is responsible for reviewing departmental operating requests within the context of a set of evaluation criteria and preparing a recommended budget for review by the City Manager. 6. The Capital Improvements Program Executive Committee reviews program scopes, cost estimates and funding sources of CIP requests and prepares a recommended CIP budget for review by the City Manager. 7. The City Council is responsible for the review of the City Manager's tentative budget and approval of a final budget. 8. Transfer of Appropriations; at any time during the fiscal year, the City Manager may transfer part or all of any unencumbered appropriation balance among programs within a department, office, or agency (Section 5.08, City of Tempe Charter). 9. Midyear Program/Personnel Adjustment Request; should the need arise for additional personnel or program enhancements during the fiscal year to meet some unforeseen need, a midyear program/personnel request is submitted to the Budget Office for a needs assessment and fiscal impact review. If, after evaluation, the request is approved and involves either additional personnel or the abolition of a position(s), the request is forwarded to either the relevant Council Committee or full Council with recommended action. 10. Budget Transfers; the department should process a budget transfer request form anytime a shortfall is anticipated in a departmental subtotal budget. Budget transfers are not necessary to address a shortfall within summary account groups as long as sufficient monies are available in the subtotal departmental budget. The subtotal budget includes salaries and wages, fringe benefits, materials and supplies, fees and services, travel and other expenses, contributions, and capital outlay, and excludes internal services. Only as a last resort are contingency monies used to fund a shortfall. Alternative courses of action should be sought before contingency monies will be considered. Purchase orders and requisitions will be held until the budget shortfall is addressed. 11. Permission to Exceed Budget; in the event of an emergency, the Council may seek permission from the State Board of Tax Appeals (previously State Tax Commission) to exceed the adopted budget (Section 5.09, City of Tempe Charter). 23 City of Tempe 2011-12 Annual Budget Budget Calendar Text in blue indicates CIP related items; black text indicates Operating Budget items. 2010 October 25 CIP Kickoff Meeting a. CIP calendar b. Review / discuss CIP process / changes c. Distribute Materials – Online at Budget intranet site October 25 - November 19 Departments / Finance and Technology Departments work with Engineering, Facilities, Fleet, Custodial, Community Development and Information Technology; Departments submit CIP Forms to Budget Office; Budget Staff review CIP sources of funds November 16 Budget Office/Departments Budget kick-off meeting with departments; review budget policies and calendar; budget forms made available on the intranet; distribute and explain allocation targets and budget manuals Group training session with departments; department training provided on entering base budget data, preparing supplemental requests, and program sunset forms November 19 Departments Final due date for CIP Forms to Budget Office November-December Budget Office Begin update of Comprehensive Financial Plan (CFP) of revenues and expenditures for all operating funds December 6 - January 7 Budget Office & Accounting Meet with Department Representatives Discuss individual department requests December 9 City Council/City Manager/Budget Office Hold budget workshop with City Council December 31 Budget Office Complete Preliminary Comprehensive Financial Plan 2011 January 7 Departments PeopleSoft base budget data entry completed; Supplemental request forms completed and transmitted to assigned budget analyst via e-mail; other required budget forms (Revenue, Consulting Fees, Contracted Services, Travel, and Training) completed and transmitted to Budget Office Week of January 17 CIP Discovery Meeting Review all requests with department representatives January 18 Budget Office Final CFP transmitted to City Clerk January 27 Budget Office Present Final Comprehensive Financial Plan to the Council at the Issue Review Session January – February Budget Office Complete payroll projections; meet with Departments to review payroll projections, base budget allocations, and other budget forms as necessary February 1 Budget Office Distribute all Department CIP requests to City Council and Staff February 10 IRS City Manager/Departments/Budget Office– IRS and Formal Council meetings City Manager’s Office / Budget Office / Department Representatives Review of proposed CIP requests with City Council Week of February 21 Final Review of Proposed CIP with Department Representatives Develop recommended program and sources of funds for 5-year CIP February – Week of March 14 City Manager/Departments/Budget Office Conduct meetings and develop recommendations; evaluate requests/proposals based on strategic priorities; finalize recommendations; begin preliminary work on City Manager’s recommended budget (Budget Review Session Book) Week of March 21 City Manager/Finance and Technology Director Review recommendations; finalize Budget Review Session Book March 15 Budget Office Finalize CIP for Council work session, transmit to City Clerk Distribute recommended CIP to City Council and Staff 24 City of Tempe 2011-12 Annual Budget March 24 - IRS City Council / Departments Per City Charter (Tempe City Charter, Section 5.06, Capital Program), submission to council not later than three (3) months prior to the close of the fiscal year. a. Conduct CIP Work Session March 29 Budget Office Budget Review Session Book complete and transmitted to City Clerk April 4 Budget Office Distribute benchmarking data request forms to departments. The data request forms will contain prior year Goal and Objective statements and will reflect benchmarks appearing in the next fiscal year’s budget book. April 7 Budget Office Special Budget Review Session (IRS) Conduct CIP follow up (if necessary) April 11 City Clerk/Community Relations Publish first Truth in Taxation hearing notice (must be published at least 14 days but not more than 20 days prior to April 28 hearing; may be combined with final budget adoption hearing notice as long as Truth in Taxation notice requirements are met); issue a press release with the same information that is included in the hearing notice April 19 City Clerk Publish second Truth in Taxation hearing notice (must be published at least 7 days but not more than 10 days prior to April 28 hearing April 28 City Council Special Budget Session Truth in Taxation Hearing (must occur on or before final budget adoption; hearings may be combined per A.R.S. §42-17104) but must have a roll call vote April 29 Budget Office Within three days of the hearing, mail a copy of the truth in taxation notice, a statement of its publication and the result of the Council's vote to the Property Tax Oversight Commission May 6 Departments Benchmark data forms completed and returned (hardcopy) to Budget Week of May 9 Budget Office / City Clerk Per City Charter (Tempe City Charter, Section 5.07a and b), publish summary of capital program in newspaper, and notice stating availability of copies for inspection by public, and the time and place, not less than fourteen (14) days nor more than thirty (30) days after such publication, for public hearing. May 10 Budget Office Tentative Budget Resolution and Schedules complete and transmitted to City Clerk May 19 City Council Adopt Tentative Operating Budget and Adopt Final CIP Budget City Clerk Publish for two consecutive weeks the adopted tentative budget per A.R.S. §42-17103; indicate in public notice the dates and places in which the budget documents will be available for public inspection May 24 Budget Office Final Budget Resolution and Schedules complete and transmitted to City Clerk Property tax ordinance and Staff Summary Report for introduction and first public hearing complete and transmitted to City Clerk June 2 - Formal Council City Council a. Public Hearing b. Final Adoption of the CIP June 2 City Council Final Budget adoption; property tax ordinance introduced and first public hearing held June 7 Budget Office Property tax ordinance and Staff Summary Report for final adoption complete and transmitted to City Clerk June 16 City Council Public hearing; convene special meeting for final adoption of property tax ordinance 25 City of Tempe 2011-12 Annual Budget Components of Total Financial Program FY 2011-12 Total Financial Program $412,595,253 Operating Budget Capital Budget $363,257,449 $49,337,804 General Governmental Enterprise Special Revenue General Purpose Enterprise Transportation Special Purpose $180,905,967 $93,623,271 $88,728,211 $6,656,646 $30,160,000 $5,732,059 $6,789,099 Public Safety Water/ Wastewater Transit Police Water Streets Rio Salado $95,160,339 $75,985,498 $53,863,809 ________________________ _______________________ ________________________ Community Services Solid Waste Section 8 Housing $26,780,609 $15,166,357 ________________________ _______________________ General Services Golf $25,478,739 $2,290,553 $10,344,964 ________________________ Highway User $9,297,186 $2,500,246 General Governmental Wastewater Signals Transit $1,613,600 $10,999,000 $966,171 $2,789,099 _______________________ Park Improvements $1,415,000 ________________________ _______________________ Debt Service Cemetery Performing Arts Fire $21,548,322 $180,863 $849,800 ________________________ ______________________ Development Services CDBG Storm Drains $11,152,134 $6,656,965 $278,000 ________________________ $4,000,000 _______________________ _______________________ $8,565, 287 $4,766,588 _______________________ ________________________ ________________________ $19,161,000 ________________________ _______________________ Transportation (Maintenance of Effort) $785,824 26 City of Tempe 2011-12 Annual Budget Governmental Funds: Ten Year Fund Balance Trends General Fund Unreserved Fund Balance Millions $60.0 $50.0 54.0 $40.0 $30.0 35.1 34.5 34.5 2002 2003 2004 37.8 40.9 43.3 44.6 30.0 $20.0 35.4 $10.0 $0.0 2005 2006 2007 2008 2009 Fiscal Year Ending June 30 2010 Over the ten year period, unreserved fund balances in the General Fund have exceeded the policy guideline of 20-30% of revenue. At FYE 2011, the General Fund unreserved fund balance is estimated at $35.4 million, which is within the 20-30% policy threshold. 2011 Debt Service Fund Balance Millions $60.0 $50.0 $40.0 $30.0 31.8 $20.0 $10.0 $0.0 12.1 13.5 13.4 2002 2003 2004 16.0 18.5 17.6 38.1 42.7 23.9 2005 2006 2007 2008 2009 Fiscal Year Ending June 30 27 2010 2011 The Debt Service fund balance has grown in recent years due to increased property tax collections from increased property values. There is a two-year lag between property valuations for tax purposes and collections. As such, the impact of the recent real estate recession has not yet been recorded in this fund. City of Tempe 2011-12 Annual Budget Special Revenue Funds: Ten Year Fund Balance Trends Performing Arts Fund Balance Millions $20.0 $15.0 14.3 $10.0 $5.0 $0.0 14.3 15.1 14.9 10.9 9.6 7.1 2002 8.3 5.9 2003 2004 2005 2006 2007 2008 2009 Fiscal Year Ending June 30 2010 4.0 2011 Highway User Revenue/ Local Transportation Assistance Fund Balances Millions $20.0 $15.0 $10.0 $5.0 $0.0 Since the fund’s inception in FY 2001-02, the fund balance steadily grew through FY 2005-06. Beginning in FY 2006-07, the fund has been tapped to cover differences between revenues and expenditures. Use of fund balance for operations during this period is consistent with the original financing plan; however the extent of the draw down exceeds the planned level. 8.9 2002 11.1 7.3 2003 8.0 2004 9.4 11.3 12.8 8.2 5.9 2005 2006 2007 2008 2009 Fiscal Year Ending June 30 2010 4.7 Planned draw downs used to fund street infrastructure projects have contributed to the inconsistent trend in fund balances. The primary revenue source for these funds, state shared revenue, has sharply declined in recent years, leading to a rapid decline in fund balance. 2011 Transit Fund Balance Millions $60.0 $50.0 $40.0 $30.0 54.2 49.0 42.1 40.9 41.8 29.6 $20.0 38.2 33.2 20.0 $10.0 $0.0 8.4 2002 2003 2004 2005 2006 2007 2008 2009 Fiscal Year Ending June 30 28 2010 2011 During the late 1990’s, the Transit Fund balance was built up in preparation for the construction and operation of the light rail transit system. Near term draw downs of fund balance have been partially offset by federal reimbursements for light rail construction costs. City of Tempe 2011-12 Annual Budget Enterprise Funds: Ten Year Fund Balance Trends Water/Wastewater Fund Unreserved Retained Earnings Millions $80.0 $70.0 $60.0 59.8 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 2002 65.2 2003 67.5 2004 60.8 65.6 55.6 50.6 42.9 2005 2006 2007 2008 2009 Fiscal Year Ending June 30 34.4 2010 30.0 In FY 2005-06 the City began drawing down retained earnings to finance capital improvements. Gradual planned increases to user rates are projected to build the fund balance back to the policy target level of an amount equal to one year of operating revenue. 2011 Solid Waste Fund Unreserved Retained Earnings Millions $7.0 $6.0 $5.0 $4.0 3.9 $3.0 $0.0 4.6 3.0 $2.0 $1.0 5.6 4.9 6.3 2.2 0.02 0.05 1.1 2002 2003 2004 2005 2006 2007 2008 2009 Fiscal Year Ending June 30 2010 2011 Golf Unreserved Retained Earnings Millions $900 $800 $700 792 $600 $500 $400 $300 $200 $100 $0 -$100 2002 680 605 540 469 264 2003 2004 217 0.4 2005 2006 2007 2008 2009 Fiscal Year Ending June 30 29 A planned drawdown of unreserved retained earnings began in FY 1999-00, which resulted in the reserve’s reduction to $20,000 in FY 2001-02. Since then, fee increases have been implemented to restore the fund balance to meet the new financial guideline of a minimum of 10% of anticipated revenue. -0.4 -0.7 2010 2011 Expense growth has outpaced revenue growth since FY 1999-00, leading to the decline in reserves. As a result of this ongoing trend, the fund has been posting negative retained earnings as of FYE 2010. A new business model involving the payment of a management fee by a private vendor for golf operations is expected to achieve financial sustainability. City of Tempe 2011-12 Annual Budget Operating Budget Overview The citywide operating budget for FY 2011-12 totals $363.3 million. This operating budget amount represents a decrease of 2.2% from the prior fiscal year. The number of full-time employees for FY 2011-12 totals 1,583 which represents a (1.2%) decrease from the prior year. General Fund Fund Structure Description The General Fund is the general operating fund of the City and is used to account for all financial activity not reflected in another fund. Revenue Structure Major revenue sources are: Local Sales Taxes, Intergovernmental Revenue, Charges for Services, Property Taxes, Fines and Forfeitures and All Other. Total budgeted revenue for FY 2011-12 is $160.3 million. The following table depicts the major revenue sources as a percentage of General Fund revenue. Local Sales Taxes and Intergovernmental revenue represent the two major revenue sources in the General Fund. Together they comprise 72.7% or $116.4 million of the total $160.3 million FY 2011-12 General Fund revenue. Local Taxes Local Taxes consist of both local sales taxes and transient lodging sales taxes. Combined Local Taxes contribute $85.1 million, or 53.1% of total General Fund revenue. Local sales tax revenue is estimated at $81.0 million in FY 2011-12. Local General Fund sales taxes are derived from a 1.4% City sales tax, while the overall tax rate is 2.0%. The remaining 0.6% is restricted to transit and performing arts purposes and is reflected in their respective funds. Over half of the sales tax revenue comes from retail sales, with the remainder collected primarily from rental payments, utility and telecommunication payments, restaurant and bar sales and contracting sales. Major Revenue Sources Local Taxes Intergovernmental Property Tax FY 2011-12 53.1% 19.6% 8.0% All Other 7.7% Charges for Service 6.0% Fines & Forfeitures 5.6% Tempe's single largest revenue source is highly responsive to changes in economic activity. As the national economy has slowly recovered from the national downturn, so too has the City’s economy. Also included in Local Taxes is the Transient Lodging Tax, or Bed Tax, which is set at 5% of hotel/motel lodging sales. This revenue source is estimated at $4.1 million in FY 2011-12. Intergovernmental Revenue This revenue category is derived from three sources of state revenue sharing: state sales tax, state income tax, and vehicle license taxes. Intergovernmental revenue represents $31.2 million or 19.6% of total General Fund revenue in FY 2011-12. The primary allocation basis for state revenue sharing is each city‘s or town’s relative share of the population of all incorporated cities and towns in Arizona. The allocations are based on the most recently completed United States Census. As of the 2010 Census, Tempe's share of total statewide incorporated population is 3.2%. State sales tax State sales tax distributions are estimated at $12.2 million in FY 2011-12. The size of the overall pool of funding available for distribution is based on state statute, which provides for the allocation of 8.9% of transaction privilege (sales) tax revenue to cities and towns. The total statewide sales tax pool is estimated to be $380.0 million. State income tax Total estimated state-shared income tax revenue to be distributed to Arizona cities and towns is estimated at $424.4 million. Tempe’s share in FY 2011-12 is estimated at $13.6 million. Vehicle license tax The remaining state-shared revenue of $5.3 million is from vehicle license taxes. Of the net revenue collected for the licensing of motor vehicles by a county, 25% is distributed to incorporated towns and cities within the county. Tempe’s share of the vehicle license tax collections is based on its population in relation to the total incorporated population of the county. 30 City of Tempe 2011-12 Annual Budget Property Tax Tempe’s property tax rate is $1.79 per $100 of assessed valuation, consisting of a primary tax rate of $0.66 per $100 of assessed valuation and a secondary tax rate of $1.13 per $100 of assessed valuation. Only the primary levy goes to the General Fund. While there is no restriction on its usage, the primary levy is limited by state law to a 2% annual increase plus any amount generated by new construction. The primary levy is estimated at $12.8 million in FY 2011-12. All Other Other General Fund revenue sources include Interest Income, Franchise Fees, Licenses and Permits, the Salt River Project Payment In-Lieu of Property Taxes, and other miscellaneous revenue. These sources contribute $12.3 million or 7.7% of General Fund revenue in FY 2011-12. Charges for Services Charges for services are budgeted at $10.3 million in FY 2011-12. Of this amount, recreation and social services programs contribute $5.7 million and development-related charges for building and trade permits, planning and zoning fees, and engineering fees account for $4.6 million. By Council policy, recreation and social service programs operate on a full or partial cost recovery basis. Fines and Forfeitures Fines and Forfeitures represent $8.4 million in FY 2011-12. Traffic Fines represent $2.2 million or 26% of total fines collected. Rounding out the fines and forfeiture revenue sources is defensive driving school fees, parking fines, and criminal fines, along with delinquent collections and default penalties. Expenditure Structure The General Fund operating budget for FY 2011-12 totals $159.4 million. Major expenditure categories are: Personal Services, Fees and Services, Materials and Supplies, Capital Outlay, and All Other. The table to the right depicts the major expenditure categories as a percentage of total appropriations. The General Fund consists of all City operations with the exception of Enterprise Fund operations (Water, Solid Waste, Cemetery and Golf), Transportation (LTAF and HURF), Transit, Performing Arts, Debt Service and CDBG/Section 8. Major Expenditure Categories Personal Services Fees and Services Materials and Supplies Capital Outlay/All Other FY 2011-12 78.8% 15.2% 4.8% 1.2% For FY 2011-12, Personal Services (salaries, wages and benefits) account for $125.5 million or 78.8% of the total General Fund operating budget. The remaining appropriations consist of $24.2 million or 15.2% for Fees and Services, $7.7 million or 4.8% for Materials and Supplies, and 1.2% for Capital Outlay and All Other. Personal Services Since the majority of City personnel, and major functions of city government, are supported by the General Fund, it is not surprising that Personal Services represent the largest proportion of total expenditures. Of the total amount budgeted for Personal Services in FY 2011-12, salaries and wages account for $90.4 million, or 72.1% and fringe benefits represent $35.1 million, or 27.9%. Fees and Services Fees and Services expenditures comprise 15.2% of the FY 2011-12 General Fund appropriation. The largest single portion of this expenditure category is for contracted services, accounting for 25.7% of total Fees and Services. Utilities (electricity, water, solid waste, and sewer) comprise the second largest share at 10.2% of total Fees and Services. Unlike most of the Fees and Services accounts, utility expenses are expected to increase somewhat higher than inflation. Other major Fees and Services expenditures for FY 2011-12 include software maintenance agreements, 10.2%, county jail costs, 8.8%, and equipment rental and repair, 3.9%. Materials and Supplies Totaling $7.7 million in FY 2011-12, expenditures for Materials and Supplies account for 4.9% of the General Fund operating budget. Of these expenditures, 41.9% is derived from motor vehicle parts, fuels, and lubricants. The remainder is for library books, clothing allowances, general office supplies, minor equipment, and miscellaneous supplies. Increases in Materials and Supplies over the next five years are expected to be driven largely by inflation. Capital Outlay/All Other Capital Outlay/Other expenditures account for $1.9 million or 1.2% of the total General Fund operating budget in FY 2011-12. Major items item of expenditure include vehicles, radios, turf maintenance equipment and computer equipment. Within the All Other category are amounts for contingencies, travel, contributions to community service organizations and the local convention and visitors’ bureau, and payment to Maricopa County for animal control services. Program Budget Summary The following section describes the allocation of the General Fund for the major functional, or program areas of Tempe city government. 31 City of Tempe 2011-12 Annual Budget Major Services The General Fund consists of the following major functions: General Services Development Services Public Safety Community Services Maintenance of Effort General Services Program The General Services Program provides for the overall policy-making, management, legal, financial and other technical advisory functions that benefit all other city programs. General Services operating appropriations account for 15.6% of the General Fund budget in FY 2011-12. Specific departments included in the budgeted appropriation include the Mayor and Council, City Manager, City Clerk, Human Resources, City Attorney, Fleet Services, Facilities, Finance and Technology, and other departments. Funding for General Services increased to $25.4 million in FY 2011-12, a 5.8% increase from FY 2010-11. Program FY 2011-12 Development Services Program The Development Services program Public Safety $95,160,339 provides for the planning, regulation, and engineering review of construction General Services 25,478,739 activities in the City. Approximately 7.0% of the General Fund operating appropriations are earmarked for Development Services. This program area Community Services 26,780,609 includes the Community Development department as well as the Public Works Development Services 11,152,134 Engineering Division. The FY 2011-12 budget represents a $195 thousand, or Transportation 785,824 1.8%, increase from FY 2010-11. Total $159,357,645 Public Safety Program The Public Safety program provides for enforcement and adjudication of law and fire protection in the city. Public Safety continues to represent the largest appropriations area, accounting for 59.7% or $95.2 million of the General Fund operating budget in FY 2010-12. It includes appropriations for Police and Fire Departments and the City Court. The FY 2011-12 budget represents no increase from the FY 2010-11 budgeted amount. Community Services The Community Services program provides for recreational, social, and cultural services in the city. The appropriations in the program provide for operations of the Community Services Department. Community Services represent 16.8% or $26.8 million of General Fund appropriations for FY 2011-12. Maintenance of Effort This transfer of local revenue funding fulfills a statutory requirement to maintain expenditures of locally generated revenue for streets. This obligation represents $785,824, or 1.2% of General Fund appropriations in FY 2011-12. Debt Service Fund Fund Structure Description A Debt Service Fund is maintained to receive dedicated revenue used to make principal and interest payments on the City’s general obligation debt. Debt service for Special Purpose and Enterprise Program projects is accounted for in the respective funds. Revenue Structure Debt Service Fund revenue is derived from the secondary property tax and interfund transfers. The property tax accounts for 91% of the fund’s revenue in FY 2011-12. Revenue from these sources can only be used to retire debt. Property Tax Debt Service revenue trends are a function of changes in assessed valuation and the City's secondary property tax rate. While changes in assessed valuation represent the effects of the marketplace and assessor methodology, the secondary rate is determined by City policy. The secondary property tax rate for FY 2011-12 is $1.13 per $100 of assessed valuation and is expected to generate $22.1 million. The City's property tax is levied each year on or before the third Monday in August based on the full cash value of property from the previous January 1 as determined by the Maricopa County Assessor. Additional Debt Service revenue includes $1.6 million transferred from the HURF fund to retire transportation related debt. Expenditure Structure Expenditures in this fund are confined to principal and interest payments on bonded indebtedness. To keep these costs in check, the staff employs a long-range debt management plan, which is updated annually based on interest assumptions, tax base growth, and current levels of debt principal. Projected outstanding long-term governmental general obligation bonds at June 30, 2011 totaled $166.7 million. 32 City of Tempe 2011-12 Annual Budget Special Revenue Funds Transit Fund Fund Structure Description The Transit Fund is a Special Revenue fund established to account for the receipt and expenditure of the City's transit tax and other transit related revenues. Major Services This fund provides the following transit related functions: Planning and Design Operations Procurement Debt Service Community Outreach and Marketing Revenue Structure Transit Fund revenue comes primarily from a one half (½) cent City sales tax to fund transit improvements and from various intergovernmental revenues. Transit Tax On September 10, 1996, the citizens of Tempe voted to approve Proposition 400, which provided for a ½ cent increase in the City sales tax to fund transit improvements. Proposition 400 limited the expenditure of the additional sales tax to improvements such as additional bus routes, alternative fuel buses, bus pullouts, and light rail. For FY 201112, the transit tax is expected to generate $29.1 million in revenue, or 61.4% of total Transit Fund revenue. Intergovernmental Revenue Intergovernmental revenue represents $13.5 million, or 28.4% of total Transit Fund revenues in FY 2011-12. Expenditure Structure The Transit Fund includes all personnel in Transit Administration, Transit Operations, Transit Store and Bus Stop Maintenance. Major expenditures in the Transit Fund include: Fees and Services, Internal Services, Capital Outlay/All Other, Personal Services and Contingency. The following table depicts the major expenditure categories as a percentage of the total transit budget. Major Expenditure FY 2011-12 Categories Fees and Services The largest expenditure in the Transit Fund is for Fees and Services, which provides funding for local and City of Phoenix transit Fees and Services 75.7% routes. In FY 2011-12, Fees and Services are estimated to account for Debt Service 9.3% $41.1 million or 75.7% of the Transit Fund operating budget. Capital Outlay/All Other 6.1% Debt Service Debt service represents 9.3% of the budget in FY 2011-12. As Personal Services 5.4% of June 30, 2011, there is $130 million of outstanding excise tax debt Internal Services 3.5% supported by Transit Tax revenues. Capital Outlay/All Other Within this category are budgeted amounts for capital outlay, travel and other contributions. These uses represent 6.1% of the Transit Fund budget in FY 2011-12. Internal Services Indirect cost allocations to the Transit Fund account for 3.5% of the FY 2011-12 budget. This amount represents the Transit Fund’s share of certain administrative costs funded by the General Fund. Personal Services Personal Services account for 5.4%, or $2.9 million of the total FY 2011-12 budget. Performing Arts Fund Fund Structure Description The Performing Arts Fund is a Special Revenue fund established to account for the receipt and expenditure of the City's Performing Arts tax. Major Services Operation and maintenance of the Tempe Center for the Arts Debt service Revenue Structure Performing Arts Fund revenue comes primarily from a one tenth (1/10) cent City sales tax to fund construction and operation of the Tempe Center for the Arts. The remainder is from various cultural and recreational revenues. 33 City of Tempe 2011-12 Annual Budget Performing Arts Tax In May 2000, the residents of Tempe approved a 1/10 cent increase in the City sales tax to build and operate a performing arts center. For FY 2011-12, the performing arts tax is expected to generate $6.1 million in revenue, or 90% of total Performing Arts Fund revenue. Cultural and Recreational Revenues The primary cultural and recreational revenues generated from the Tempe Center for the Arts are Facility Rental and Facility Commissions revenue, which combined represent 9.3% of total revenue to the fund. Expenditure Structure The Performing Arts Fund includes all personnel in Administration, Facility Management, and TCA Arts Park maintenance. Major expenditures in the Performing Arts Fund include: Debt Service, Personal Services, Fees and Services, Internal Services, and All Other. The table to the right depicts the major expenditure categories as a percentage of the total Performing Arts Fund budget. The total appropriation from the Performing Arts Fund is $8.6 million in FY 2011-12. Major Expenditure Categories FY 2011-12 Debt Service 70.4% Personal Services Supplies and Services 18.2% 8.3% Internal Services/All Other 3.1% Personal Services Personal Services account for 18.2%, or $1.6 million of the total FY 2011-12 budget. Personal services provide for the operation and maintenance of the Tempe Center for the Arts and the adjacent Arts Park. Debt Service Debt service represents $6 million or 70.4% of the budget in FY 2011-12. As of June 30, 2011, there is $35.7 million of outstanding excise tax debt supported by Performing Arts Tax revenues. Supplies and Services Supplies and Services are estimated to account for $710,040 or 8.3% of the Performing Arts Fund operating budget, with nearly half of that amount allocated for facility electricity expenditures. Internal Services/All Other The remaining budgeted amounts in the Performing Arts fund cover Internal Services allocations to reimburse services provided by the General Fund and a small amount for Travel and Training. Combined, these categories comprise 3.1% of the Performing Arts Fund operating budget. Transportation Fund Fund Structure Description The Highway User Revenue Fund (HURF) is a Special Revenue fund that is established to account for the receipt and expenditure of Tempe’s allocation of state-shared Highway User taxes. Major Services Street Maintenance Traffic Operations Street Lighting and Signal Systems Revenue Structure Transportation revenue is derived primarily from state-shared Highway User taxes, which provide 91.3% of revenue in FY 2010-11. A Maintenance of Effort transfer from the General Fund represents the remainder of the revenue. Highway User Tax State Highway User Tax revenue comes primarily (37.9%) from the $0.18 per gallon fuel tax levied by the state, with the remainder from vehicle license taxes (26.7%), motor carrier fees (3.0%), vehicle registration fees (13.0%), and other transportation-related fees (4.6%). Estimates for the total pool of HURF revenue to be shared by cities will be $275.9 million in FY 2011-12, with Tempe’s share at $8.1 million. HURF revenue is subject to state policy changes, fuel sales, and population growth, all factors beyond the City’s control. Maintenance of Effort Transportation derives its remaining revenue from a “Maintenance of Effort” transfer from the General Fund. This transfer of locally-generated funds fulfills the statutory requirement placed on Arizona cities to maintain the expenditure of local revenue for streets at a level computed as an average of local funds expended for any four of the fiscal years 1981-82 through 1985-86. This transfer requirement is budgeted at $785,824 for FY 2011-12. Expenditure Structure Transportation funds include all personnel in the Street Maintenance and Traffic Operations Divisions. Major budgeted expenditures for the Transportation funds include: Personal Services, Internal Services, Materials and Supplies, Fees and Services, Transfers, and All Other. 34 City of Tempe 2011-12 Annual Budget The table below right depicts the major expenditure categories as a percentage of the total budget. Personal Services The largest budgeted expenditure in the Transportation Fund is Personal Services, which accounts for 35.8% or $3.3 million in FY 2011-12 of the total Transportation budget. Fees and Services The second largest budgeted expenditure category in the Transportation Fund is Fees and Services, which accounts for 22.2% or $2.1 million in FY 2011-12 of the total Transportation budget. Internal Services Additional expenditure demands in the Transportation funds are for Internal Services. Internal Services costs (communications, information systems and vehicle maintenance) represent 17.6% or $1.6 million of the FY 2011-12 budget. Major Expenditure Categories Personal Services Transfers Fees and Services Internal Services Materials and Supplies All Other FY 2011-12 35.8% 16.7% 22.2% 17.6% 6.7% 1.0% The remaining expenditures are for Capital Outlay, Materials and Supplies and Contracted Services. These costs constitute the remaining 7.7% of FY 2011-12 budgeted expenditures. Community Development Block Grant/Section 8 Housing Funds Fund Structure Description The Community Development Block Grant Fund (CDBG) and the Section 8 Housing Fund are Special Revenue Funds, established to account for the receipt and expenditure of federal grant funding awarded to the city for redevelopment projects and rental subsidies for low income residents. Major Services Slum and blight removal (CDBG) Rehabilitation of owner-occupied housing (CDBG) Rent and utility subsidies (Section 8) Fiscal Year CDBG Section 8 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 $2,896,728 2,793,637 2,996,729 5,973,141 4,115,572 1,577,124 1,685,130 1,926,196 $7,227,924 8,364,970 8,577,743 7,869,697 8,543,758 8,784,219 10,056,730 8,994,784 2010-11 5,794,897 10,623,052 Revenue Structure Both grants are awarded directly to the City from the federal government based 2011-12 6,656,965 10,344,964 on a funding formula which reflects such local factors as the percentage of people living in poverty, unemployment, population, the age of existing housing, and the need for housing. The table above right displays funding awarded to Tempe over the past 10 years. Expenditure Structure Pursuant to federal requirements, most CDBG and Section 8 funding is expended on property rehabilitation and rental subsidies. These items represent 86.8% of the FY 2011-12 budget. Of the remaining budget, 6.7% is earmarked for salaries and benefits and 6.4% is allocated to contingencies and miscellaneous expenses. Enterprise Funds Water/Wastewater Fund Fund Structure Description The Water/Wastewater Fund is a self-supporting enterprise fund used to account for water and wastewater treatment operations, including debt service. It is financed and operated similarly to a private business and intended to recover costs through user charges. Revenue earned, expenses incurred, and/or net income is appropriated for capital maintenance, management control, accountability, or other purposes. Major Services This budget provides for: Water/Wastewater Administration Water Resource Management Water Conservation Water Quality Transmission & Collection Technical Services Wastewater Reclamation Environmental Services Utility Customer Services Irrigation 35 City of Tempe 2011-12 Annual Budget Revenue Structure Water, Irrigation, and Wastewater user fees account for 97.7% or $69.4 million of the $71.0 million in total fund revenue in FY 2011-12. The following table depicts the major revenue categories as a percentage of total revenue. Water and Irrigation User Fees Water and irrigation user (consumption) fees provide $39.5 million or 55.6% of the total Water/Wastewater Fund revenue in FY 2011-12. This revenue amount reflects an estimated 42,214 accounts for potable water and 847 irrigation water accounts. Major Revenue Categories FY 2011-12 Water and Irrigation User Fees Wastewater User Fees All Other Interest Income 55.6% 42.1% 1.6% 0.7% Wastewater User Fees Over 39,729 Wastewater Service accounts are estimated to produce $29.9 million or 42.1% of the total fund revenue in FY 2011-12. Residential wastewater charges are largely driven by water consumption in that monthly billings are based upon a three month winter average consumption. Interest Income/All Other Cash balances in the Water/Wastewater Fund are expected to generate $1.6 million in Interest Income and other revenues during FY 2011-12. This represents 2.3% of the fund’s total revenue. Besides interest earnings, this category includes land and building rental fees, delinquent payment charges, and miscellaneous fees and charges. Expenditure Structure Total estimated operating expenses for FY 2011-12 are $76.4 million. The table below shows the composition of fund expenses group by major category. Major Expense Debt Service Debt Service accounts for 44.0% of total estimated expenses for Categories FY 2011-12 FY 2011-12, indicative of the capital intensive nature of water/wastewater Debt Service 44.0% service provision. Personal Services 20.5% All Other 14.6% Personal Services Personal Services represent $15.6 million or 20.5% of Water/Wastewater operating expenses. WW Regional Expenses 7.5% Internal Services 7.0% All Other Other major budgeted expenses include chemical supplies, Electricity and Water 6.4% contingencies, water quality testing and contracted services. These expenses represent 14.6% of the budget for FY 2011-12. Wastewater Plant Regional Operating Expenses Tempe participates in an intergovernmental agreement for the st construction, operation, and maintenance of jointly used facilities, including the 91 Avenue Wastewater Treatment Plant in Phoenix, Salt River Outfall Sewer and the Southern Avenue Interceptor. The City pays for upgrades based on relative st sewage flows and strengths. Expenses associated with the 91 Avenue Plant alone represent $5.8 million or 7.5% of the FY 2011-12 total. This amount includes carry forward appropriations to cover prior year encumbrances. Internal Services Internal Services costs for information systems, communications, vehicle maintenance, and indirect charges account for $5.3 million or 7.0% of FY 2011-12 Water/Wastewater expenses. Electricity and Water Utilities comprise a major expense within this fund, as substantial electricity and water is required to provide these services. For FY 2011-12, electricity and water are budgeted at $5.0 million, or 6.4% of total expenses. Summary Water/Wastewater Fund estimated operating expenses for FY 2011-12 are $76.4 million, which represents an increase of 0.3% over FY 2011-12. After adjusting for the impact of $4.6 million of prior year carry forward encumbrances, the FY 201112 appropriation actually increased by 7%. Solid Waste Fund Fund Structure Description The Solid Waste Fund is a self-supporting enterprise fund intended to recover all operating, maintenance, and debt service costs to provide residential, commercial, recycling and roll-off solid waste services. Revenue Structure Revenue in the Solid Waste Fund derives almost exclusively from user fees for residential, recycling, commercial, roll-off, and uncontained solid waste service. These revenues are supplemented by a small amount of interest revenue. The collection and disposal of contained solid waste represents the City's second largest enterprise operation. Residential Solid Waste User Fees Residential solid waste user fee revenue is expected to generate $8.3 million in FY 2011-12, which equates to 54.8% of the total revenue for this fund. Residential customers pay an average of $19.98 per month and the number of active accounts totals 33,775. 36 City of Tempe 2011-12 Annual Budget Commercial Solid Waste User Fees Commercial solid waste fees are expected to generate $6.3 million in FY 2011-12 or 41.4% of the total fund revenue. Collection of commercial solid waste is provided by the City or a licensed collector. The number of active commercial accounts totals 3,644. Expense Structure Solid Waste estimated expenses for FY 2011-12 total $15.2 million. Personal Services As with many labor intensive operations, Personal Services represent a major expense in the Solid Waste Fund, accounting for $5.4 million or 35.5% of the $15.2 million budget in FY 2011-12. Major Expense Categories FY 2011-12 Personal Services 35.5% Landfill Usage Charges Internal Services 25.3% 27.1% Capital Outlay/All Other Landfill Usage Charges Landfill usage charges are estimated at $3.8 million, representing 25.3% of total expenses. Landfill tipping fees are projected to follow expected inflation rates, but environmental compliance requirements could impact these expenses beyond normal inflation. 12.1% Internal Services Internal Service charges represent 27.1% or $4.1 million of the FY 2011-12 budget. Internal Service charges consist of data processing, communications, vehicle maintenance and related Internal Services charges. As might be expected in Solid Waste operations, a majority, (54.7%), of total internal service costs derive from vehicle operating and maintenance expenses. Capital Outlay/All Other The Solid Waste budget reflects appropriations of $1.3 million for replacement of solid waste trucks and other equipment, and $513,754 for other miscellaneous operating expenses. Summary The Solid Waste Fund budget of $15.2 million represents a 7% increase from the FY 2010-11 budget. This is primarily due to a new $350,000 transfer to the Highway User Revenue Fund and a $393,000 increase in capital outlay costs. Golf Fund Fund Structure Description The Golf Fund is a self-supporting enterprise fund that provides for operation of two municipal golf courses, with costs recovered through user charges. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance and debt service. Revenue Structure Greens Fees Greens fees amount to $1.5 million in FY 2011-12, accounting for 64.4% of golf course revenue for the year. Revenue projections are traditionally conservative to reflect the volatility that can result from weather conditions or fee changes. Rental Charges Rental charges are anticipated to generate $635,000 in FY 2011-12. This amount constitutes 27.7% of revenue to the fund. Expenditure Structure Personal Services and Supplies and Services represent the major categories of Golf Fund expenditures. Together they account for 84.2% of total Golf Fund expenses in FY 2011-12. Personal Services Personal Services account for $757,909 or 33.1% of FY 2011-12 expenses. Supplies and Services Supplies and Services expenses account for 51.1% of expenses in FY 2011-12, and primarily fund irrigation water and electricity. Major Expense Categories FY 2011-12 Personal Services 33.1% Supplies and Services Internal Services 51.1% 9.1% Capital Outlay 6.7% Internal Services Golf operation internal service costs are primarily vehicle maintenance and fuel, and represent $207,491 or 9.1% of budgeted expenses in FY 2011-12. Summary Golf Fund appropriations for FY 2011-12 increased by $446,707 from FY 2010-11. The bulk of the increase is due to capital outlay expenses. 37 City of Tempe 2011-12 Annual Budget Citywide Overview Total Operating Budget and Debt Service Budget Data Operating Budget Cost Per Capita FY 2009-10 FY 2010-11 FY 2010-11 FY 2011-12 Actual Budget Revised Budget $350,219,093 $349,321,689 $328,886,068 $341,709,127 $2,170 $2,160 $2,033 $2,109 -0.4% -5.9% 3.7% $22,111,500 $20,443,097 $21,548,322 % Change (cost per capita) Property Tax-Supported Debt Service $19,188,131 Cost Per Capita $119 % Change (cost per capita) $137 $126 $133 1.5% -8.0% 5.5% Total Operating Revenue by Source Source General Fund FY 2009-10 FY 2010-11 FY 2010-11 FY 2011-12 Actual Budget Revised Budget $149,173,440 $156,018,885 $157,246,687 $160,081,122 Debt Service Fund 25,761,830 22,191,192 22,030,533 22,282,656 Transportation/Transit Funds 57,340,677 54,194,614 56,049,491 56,694,356 CDBG/Section 8 Funds 11,782,994 16,417,949 16,804,371 17,001,929 6,514,120 5,796,368 6,500,887 6,776,100 Solid Waste Fund 15,391,681 15,189,163 15,074,701 15,231,809 Water/Wastewater Fund 62,250,988 66,510,174 66,501,664 71,017,104 1,579,227 1,711,195 1,360,227 2,294,828 113,004 144,420 117,100 113,100 $329,907,961 $338,173,960 $341,685,661 $351,493,004 Performing Arts Fund Golf Fund Cemetery Fund Total Staffing Summaries Citywide: Full-Time Authorized Positions Source Total Personnel Employees/1,000 Population FY 2009-10 FY 2010-11 FY 2010-11 FY 2011-12 Actual Budget Revised Budget 1,756 1,602 1,596 1,583 10.9 9.9 9.9 9.8 (8.8%) 0.0% (1.0%) % Change (Employees/1,000 Population) 38 City of Tempe 2011-12 Annual Budget Council Committees The City Council identifies strategic direction setting the tone at the start of the budget process. The process allows a prioritization of emerging issues, yielding specific priorities and plans which have multiyear operational and budget implications. Education Partnerships Advance partnerships among the city, educational entities (Arizona State University, Maricopa Community College District, Tempe Union High School District, Tempe Elementary District, Kyrene District, and charter schools), and education nonprofits, in order to enhance the quality and delivery of education within Tempe. Housing and Social Service Programs Explore regulatory-based incentives for developing affordable housing and implementing inclusionary housing programs, developing an affordable housing strategy to guide the city’s overall efforts, creating new affordable housing programs and evaluating existing programs, and providing a forum for dialog with the community to understand the needs of affordable housing throughout the city. The committee also encourages additional funding and continued support of the HOPE program, and builds partnerships that increase access to permanent affordable housing for homeless individuals and families. Neighborhood Quality of Life and Revitalization Address park rehabilitation and maintenance efforts through a collaborative effort between citizen input and feedback and City staff responsible for oversight of park design and maintenance. Sports, Tourism, Recreation, Arts and Cultural Development Address opportunities for economic and cultural development, including programs and related capital projects associated with professional, youth and amateur sports and recreation, and arts and cultural opportunities. Technology, Economic and Community Development Address technology application and implementation in Tempe, economic development issues and opportunities, and community development and redevelopment strategies and efforts. Transportation Mitigate noise impacts on neighborhoods under the flight paths for Phoenix Sky Harbor International Airport, encourage the implementation of noise reduction measures for new developments in redevelopment areas around Town Lake, assure the safe and efficient movement of people and vehicles along the street system, and recognize and encourage pedestrian and bicycle travel as an important part of the transportation system 39 City of Tempe 2011-12 Annual Budget Program Budget at a Glance The City's Total Financial Program consists of six major areas: (1) General Services, (2) Development Services, (3) Public Safety, (4) Environmental Health, (5) Community Services, and (6) Transportation. For FY 2011-12, Environmental Health constitutes the largest share with 29% of total program expenditures. This reflects funding for plant capacity expansions at water and wastewater facilities. The recent past’s fast growing trend in Transportation allowed for the completion of the transit light rail project and continued funding for new fixed route and neighborhood circulator buses. Thousands $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 General Services Development Services Public Safety Environmental Health Community Services Transportation 2012 Program (Thousands) FYE 03 FYE 04 FYE 05 FYE 06 FYE 07 FYE 08 FYE 09 FYE 10 FYE 11 FYE 12 General Services $37,819 $44,547 $43,779 $40,785 $53,773 $54,462 $59,380 $54,785 $49,135 $50,002 Development Services 21,958 20,287 21,659 23,454 25,767 34,719 26,254 27,013 27,067 28,154 Public Safety 66,618 70,515 72,421 89,998 92,868 115,092 119,006 119,339 96,903 98,510 Environmental Health 127,686 76,678 110,865 124,395 125,421 133,574 154,684 133,658 133,082 120,861 Community Services 37,544 56,500 45,126 70,547 46,713 61,942 64,572 59,499 36,896 43,086 Transportation 67,055 62,389 65,461 116,090 166,302 168,204 140,576 106,441 76,615 71,982 $358,680 $330,916 $359,311 $465,269 $510,844 $567,993 $564,472 $500,735 $419,698 $412,595 Total 40 City of Tempe 2011-12 Annual Budget Per Capita Expenditures by Program In FY 2011-12, the total financial program per capita cost is $2,457, representing a 2% decrease from FY 2010-11. In this fiscal year, for every $1 of expenditure, 29¢ is earmarked for Environmental Health, 25¢ for Public Safety, 12¢ for General Services, and the remainder for Community Services, Development Services, and Transportation. In relation to the prior year, there is a sizable decrease in Transportation, primarily due to the completion of the transit light rail project and significant reductions to capital improvement funding. Per Capita Spending by Program as a Percent of Total Spending 35% 32% 29% 30% 25% 23% 25% 20% 15% 18% 12% 12% 10% 6% 9% 7% 17% 10% 5% 0% General Services Development Services Public Safety FY 2010-11 Environmental Health Community Services Transportation FY 2011-12 Per Capita Expenditures Program General Services FY 2010-11 $304 Development Services 167 Public Safety 599 Environmental Health 823 Community Services 228 Transportation 474 Total Per Capita Expenditures Percentage of Total 12% 6% 23% 32% 9% 18% $2,595 100% 41 FY 2011-12 $309 174 608 746 266 444 $2,547 Percentage of Total 12% 7% 25% 29% 10% 17% 100% City of Tempe 2011-12 Annual Budget Program by Fund Summary The majority of funding for the City’s three largest program areas, Environmental Health, Public Safety and Transportation, comes from enterprise, special, general and capital revenues. In terms of General Fund revenues, the Public Safety program receives the majority of funding, representing 60% of the General Fund budget. FY 2011-12 Fund General General Services $25,478,739 Development Services $11,152,134 Public Safety Environmental Health $95,160,339 HURF Transit Debt Service Performing Arts $159,357,645 9,265,216 9,297,186 53,409,357 53,863,809 447,413 761,102 8,117,874 8,565,287 2,290,553 2,290,553 15,166,357 15,166,357 75,224,396 75,985,498 17,001,929 17,001,929 180,863 $48,690,028 $28,154,063 1,312,000 $50,002,028 Total 21,548,322 Cemetery TOTAL PROGRAM $785,824 21,548,322 CDBG / Section 8 Housing Capital Improvements $26,780,609 454,452 Solid Waste Total Operating Transportation 31,970 Golf Water/Wastewater Community Services $28,154,063 180,863 $95,160,339 $90,422,723 $37,369,899 $63,460,397 $363,257,449 3,350,046 30,438,000 5,716,600 8,521,158 49,337,804 $98,510,385 $120,860,723 $43,086,499 $71,981,555 $412,595,253 42 City of Tempe 2011-12 Annual Budget Program by Department Summary FY 2011-12 Department Mayor and Council City Manager Community Relations City Clerk General Services Development Services Public Safety Environmental Health Community Services Transportation Total $322,621 $322,621 281,445 281,445 2,752,985 2,752,985 917,783 917,783 City Court 3,787,780 3,787,780 Human Resources 2,041,178 2,041,178 City Attorney 2,904,115 2,904,115 Finance and Technology 3,543,888 2,338,035 5,881,923 Diversity Program 449,752 449,752 Internal Audit 405,502 405,502 Tempe Learning Center 538,177 538,177 Community Development 26,506,531 932,870 27,439,401 Police 65,018,285 65,018,285 Fire 26,354,274 26,354,274 Community Services 20,290,204 Public Works 7,241,160 1,647,532 TOTAL DEPT 21,398,606 28,154,063 Non-Departmental Debt Service 95,160,339 10,871,044 56,671,703 129,915,472 55,822,068 31,161,248 57,604,573 289,300,897 785,824 6,528,924 5,070,000 66,427,628 33,600,655 Contingency 6,208,651 1,000,000 TOTAL OPERATING 48,690,028 Capital Improvements 1,312,000 TOTAL PROGRAM 53,484,033 5,743,100 21,548,322 20,290,204 $50,002,028 28,154,063 $28,154,063 1,000,000 95,160,339 90,422,723 37,369,899 63,460,397 363,257,449 3,350,046 30,438,000 5,716,600 8,521,158 49,337,804 $98,510,385 $120,860,723 $43,086,499 $71,981,555 $412,595,253 43 City of Tempe 2011-12 Annual Budget Residential Cost of Service The City maintains three utility services for water, wastewater, and solid waste. For FY 2011-12, no rate increase is planned for solid waste services. The most recent water and wastewater rate increase was effective November 1, 2010. In September 2011, the City Council will hold a public hearing to discuss proposed rate increases for both water and wastewater services that would take effect on November 1, 2011. Local Taxes Sales Tax Residents voted in favor of supporting a temporary four year increase in the sales tax rate, taking it from 1.8% to 2.0%. The additional two tenths of a percent increase is not applied to food for home consumption and construction contracting, and will expire June 30, 2014. Of the total tax, 1.4% is dedicated to the General Fund, 0.5% is dedicated to the Transit Fund, and 0.1% is devoted to the Visual and Performing Arts. Property Tax The property tax rate for FY 2011-12 will increase to 1.79/$100 assessed valuation. The primary tax rate is $0.66 and the secondary tax rate is $1.13. The primary levy is used to pay for General Fund services such as police, fire, parks, and libraries, while the secondary tax levy is restricted to repay debt on general obligation bonds. Utility Charges for Services Water/Wastewater Water and wastewater rates were last increased in November 2010. Residential water rates were increased by 12.5% and wastewater rates increased by 6.8%. The proposed rate increase effective November 1, 2011, pending Council approval, would increase residential water rates will increase by 9.9% and wastewater rates by 7.0%. Water and wastewater rates are reviewed annually to attain full cost recovery, as customer charges are based on operating and maintenance costs and financing of capital programs. Services provided include water conservation, water quality, transmission and collection, wastewater reclamation, environmental services, customer services and irrigation. Solid Waste Solid Waste rates were last increased in the fall of 2009. Although no increases are planned for FY 2011-12, solid waste rates are annually reviewed to fully recover all operating, maintenance and debt service costs to provide residential, commercial, recycling and roll-off refuse services. Local Taxes Average Utility Charges for Services (monthly) 1 Fiscal Year Sales Tax Property Tax Water Sewer Solid Waste 2010-11 2.0% $1.40 $30.29 $23.68 $19.98 2011-12 2.0% $1.79 $29.32 $23.51 $19.98 1 Charges reflect the water and wastewater rate increases effective November 1, 2009 and November 1, 2010. While rates have increased, the estimated average residential monthly water consumption decreased from 15,000 gallons per month to 12,000 gallons per month from FY 2010-2011 to FY 2011-12. For wastewater, the estimated average monthly inflow rates decreased from 10,400 gallons to 9,600 gallons from FY 2010-11 to FY 2011-12. 44 City of Tempe 2011-12 Annual Budget Personnel Summary: Ten Year History The number of full-time employees for FY 2011-12, excluding part-time and temporary employees, totals 1,583 a 1.2% decrease from FY 2010-11. Total employees per 1,000 population for FY 2011-12 is estimated at 9.77, a 1.4% decrease from the previous fiscal year. The decrease in the number of personnel is due to budget reductions that required a reduction in the number of employees in the General, Cemetery, HURF and Transit funds as well as reductions in the number of employees in the CDBG/Section 8 funded programs. 12 2,000 1,800 10 1,600 1,400 8 1,200 The total number of full-time employees has decreased from 1,692 to 1,583 from 2003 to 2012 for a 6.4% decrease. During that same period the number of employees per 1,000 population decreased by 8.1%. 1,000 800 6 4 600 400 2 200 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 Fiscal Year Full-Time Employees Per 1,000 Population Fiscal Year End Budgeted Full-Time Employees Employees Per 1,000 Population 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1,692 1,643 1,645 1,700 1,734 1,831 1,851 1,811 1,602 1,583 10.63 10.30 10.29 10.61 10.81 11.39 11.49 11.22 9.91 9.77 Note: The results of the 2010 decennial census conducted by the U.S. Census Bureau were released in early 2011. Prior to release of the census data, the City’s population was based on an estimate. The census results showed that Tempe’s population grew from 158,625 from the 2000 decennial census to 162,028 in 2010. The annual population figures used to calculate the employees per 1,000 population from 2003 to 2010 have been adjusted to reflect this gradual increase in population. 45 City of Tempe 2011-12 Annual Budget This page intentionally left blank. City of Tempe 2011-12 Annual Budget Comprehensive Financial Plan Contents Comprehensive Financial Plan Overview ................................................................................................................................. 48 Forecast Methodology .............................................................................................................................................................. 49 Major Revenue Assumptions ................................................................................................................................................... 50 Major Expenditure Assumptions ............................................................................................................................................... 52 General Fund Forecast Discussion .......................................................................................................................................... 53 Special Revenue Funds: Projected Revenues and Expenditures............................................................................................ 55 Transit Fund Forecast Discussion ........................................................................................................................................ 55 Performing Arts Fund Forecast Discussion .......................................................................................................................... 57 Transportation Fund Forecast Discussion ............................................................................................................................ 59 Rio Salado and Community Facilities District (CFD) Funds Forecast Discussion ................................................................ 61 Enterprise Funds: Projected Revenues and Expenditures ..................................................................................................... 63 Water/Wastewater Fund Forecast Discussion ...................................................................................................................... 63 Solid Waste Fund Forecast Discussion ................................................................................................................................ 65 Golf Fund Forecast Discussion............................................................................................................................................. 67 Cemetery Fund Forecast Discussion .................................................................................................................................... 69 Debt Service Fund Forecast Discussion ............................................................................................................................... 71 Financial Action Plan ................................................................................................................................................................ 73 47 City of Tempe 2011-12 Annual Budget Comprehensive Financial Plan Overview Introduction The Comprehensive Financial Plan, first published in March 1991, is a vital component of Tempe’s financial management strategy. Its purpose is to provide a five-year perspective on the financial condition of the City’s major appropriated funds. As a planning tool it provides a long-range context for the City Council to use in making budgetary decisions for the upcoming fiscal year. Financial forecast models are utilized to examine the City's appropriated operating funds and their underlying revenue and expenditure structures for the period of FY 2010-11 through FY 2014-15. These forecast models are presented along with trends, forecasts, and fund balances for each of the funds. It is important to note that the forecast models presented herein were presented to the City Council in January 2011 and provided five-year perspectives that were representative of the City’s projected financial position at that time, based on policies in place at that time prior to any budget adjustments; the FY 2011-12 operating budget was formulated using this forecast as a starting point. As such, the forecast provides the long-term context used as the foundation for budget development rather than a prospective look at the future impacts of current year budget choices. The Comprehensive Financial Plan covers all major operating funds, including: Governmental Funds Enterprise Funds General Fund Transit Fund Transportation Fund Performing Arts Fund Debt Service Fund Water/Wastewater Fund Solid Waste Fund Golf Fund Cemetery Fund The City’s finances are recovering from the deepest economic downturn since the Great Depression. Consequently, the City continues to deal with significant financial challenges. Nearly all operating funds have been negatively impacted by the economic downturn, with the most serious consequences experienced in the City’s tax-supported funds. In terms of specific funds as of January 2011, the General Fund was projected to experience a deficit of $1.9 million in FY 2011-12. Due largely to increasing public safety retirement system contribution rate increases, shortfalls in departmental revenues, and the expiration of the temporary sales tax increase, the deficit was projected to grow to $18 million by FY 201415. The Transit Fund was projected to experience annual deficits continuing through the forecast period. The annual deficit for FY 2011-12 was estimated at $12.2 million, declining to $9.2 million by FY 2014-15. The Performing Arts Fund had a projected operating deficit condition throughout the forecast period. The annual deficit for FY 2011-12 was estimated at $1.8 million, declining to $800 thousand by FY 2014-15. An increasing deficit was projected in the Transportation Fund through the end of the forecast. The deficit for this fund was estimated at $1.0 million in FY 2011-12 and it was projected to grow to $2.0 million by FY 2014-15. The complete drawdown of all available fund balances was projected by FY 2013-14. The Rio Salado/Community Facilities District (CFD) was projected to experience deficits ranging from $290 thousand to $629 thousand during the forecast period. The Water/Wastewater Fund was projected to experience operating deficits through FY 2010-11. Thereafter, operating surpluses were projected. These surpluses were largely the result of projected rate adjustments. The Solid Waste Fund was projected to experience a $325 thousand deficit in FY 2012-13, growing to $725 thousand by FY 2014-15. The Golf Fund has been experiencing an operating deficit for years, and given current operations, the forecast was that this trend will continue. The fund balance has been depleted and the fund receives intra-fund loans. The Cemetery Fund has experienced an operating deficit since its inception in FY 2005-06 and the forecast anticipated continuation of this trend absent corrective action. The fund balance has been depleted and the fund receives intra-fund loans. 48 City of Tempe 2011-12 Annual Budget Forecast Methodology Forecasting used in this report refers to the estimating of the future values of revenue and expenditures. It provides an estimate of how much revenue will be available and the resources required to meet current service levels and programs over the forecast period, along with an understanding of how the total financial program will be affected by the demographic and economic factors driving these forecasts. The value of forecasting lies in estimating whether or not, given assumptions about local financial policies and economic trends, the City will have sufficient resources to meet the requirements of ongoing, planned, or mandated programs. Forecast models also provide a planning tool for capital projects and/or determining whether or not bonded indebtedness will be required for capital funding. In short, forecasting provides an estimate of the financial flexibility of the City, as well as insight into tax, revenue, and service options the Council must address. Our forecasting methodology reflects a combination of internal analysis and locally generated consensus forecasts covering such factors as population growth, retail sales, and inflation. Specifically, for the revenue forecasts, we begin with models that include prior year actual collections and project the balance of the current fiscal year based on prior year patterns. For the remaining years of the revenue forecast, we look to external forecasts for guidance on economic trends, Principal among these external sources is participation as a sponsor of the Forecasting Project developed by the University of Arizona Eller College of Economic and Business Research Center. Another key external source is the State Finance Advisory Committee (FAC), which provides a forecast of major state revenue sources on a quarterly basis. Typically, these forecasts cover the state or the Phoenix metropolitan area as a whole, so adjustments to reflect unique conditions in Tempe are sometimes necessary. In general, we seek to match revenue sources with the economic and/or demographic variables that most directly affect year-to-year changes in those revenues. For example, revenue such as the City Sales Tax will reflect consensus forecasts related to disposable income growth. Other revenue, such as those from recreation services, are linked to Tempe’s expected population growth. By identifying and utilizing as many revenue-related variables as possible in our forecast, we hope to minimize the risks of overstating or understating revenue that could arise from using only a few variables to forecast all revenue sources. Expenditure growth is most closely linked to three major factors in our models: 1) inflation (including general inflation, fuel and utility inflation, market adjustments to salaries, and changes in benefits costs), 2) City financial policies related to the amount of new funding added each year for new programs and/or the expansion of existing programs as well as including new operational and debt service funding associated with Capital Improvements Program projects, and 3) employee pension contribution rates. As with our revenue forecasts, we consider consensus forecasts related to general inflation (particularly the trends projected). For certain expenditure categories (such as fuel and utilities), we apply inflation factors that reflect the historical rate of price inflation in these categories relative to overall inflation. Amounts for new programs and/or program expansions are assumed to be constant over the forecast period (the same amount is added to each year of the forecast). 49 City of Tempe 2011-12 Annual Budget Major Revenue Assumptions Our general approach to forecasting is to apply a conservative philosophy that does not overstate revenue nor understate expenditures. We recognize that economic forecasting is not an exact science and at times relies upon professional judgment to optimize the accuracy of revenues or expenditures. We attempt to identify as many factors as possible that may contribute to changes in revenue and expenditures. The City’s revenues are affected by many unique elements that respond to a variety of external factors such as population growth, development, inflation, and interest rates. The following provides our assumptions relating to major revenues and expenditures. Tempe Taxable Sales Taxable sales in Tempe rebounded rapidly in the time period following the 2001-02 national downturn in the economy. These increases were from both base growth as well as the addition of new businesses. As the graph below shows, taxable sales in FY 2006-07 were $7.1 billion, 42% higher than the level seen at the lowest point of the 2001-02 economic downturn. Tempe Taxable Sales 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 $ Billions 6.6 7.1 7.1 6.5 5.9 6.0 5.2 5.0 5.3 5.8 Beginning in FY 2007-08 it became evident that the rapid economic pace would not continue, and was in fact largely based on a speculative real estate bubble. Over the ensuing years, taxable sales dropped 16.9% in total, until stabilizing at $6 billion in FY 2010-11. This trend is shown in the graph at left. Taxable sales growth has an impact on many funds, as the General Fund, Transit Fund, Performing Arts Fund, and Rio Salado Fund each receive their primary revenue from this source. The primary categories of taxable sales (based on FY 2010-11 estimates) are retail (51%), real and personal rent (19%), utility and communications sales (9%), contracting (5%), and restaurant sales (8%). Overall taxable sales are expected to increase in FY 2011-12 and in the out-years as the economy recovers. Population Following the strong population growth period of the late 1970's (5.3%) and the 1980's (2.8%), Tempe has experienced steady but considerably slower growth. This trend is expected to continue, since the City is landlocked with other municipal jurisdictions on all four borders. Given this geographical limit on expansion, population in Tempe is assumed to increase by merely 0.2% per year over the forecast period. Population is important in the forecasting models for two main reasons. First, it is used to determine growth in revenues from recreation, social services, and criminal justice programs. Second, and of perhaps even greater importance, is the role that population plays in state shared revenue calculations. Statewide population growth is assumed to average 2.5% per year over the next five years. The disparity between growth in local and state populations is significant since several major revenue categories are dependent upon Tempe’s population as a percentage of the state. For example, if the populations of other municipalities in the state continue to grow at a faster rate than Tempe’s population, Tempe’s relative share of state shared revenue decreases. Every five years the sharing formula is recalculated and the differences in growth rates inevitably impacts Tempe’s share of the total revenue pool. This initial year of this impact in the forecast is FY 2011-12. State Revenues As the base for state shared revenues, state income and sales taxes are also important to City revenues. As with City revenues, State revenue growth in recent years has turned sharply negative. The forecast is for state sales tax revenue growth to rebound beginning in FY 2010-11 consistent with projections from the FAC. Since State Shared Income Tax distributions lag by two years, payments to the City will continue to decline until FY 2012-13. Also of importance are State laws related to revenue, including future rate cuts and changes to the revenue sharing formula. One significant change to revenue distributions was caused by the increase in the amount of State Highway User Revenue Fund appropriations to the state Department of Public Safety and the Department of Transportation. These increases resulted in a subsequent decrease in the amount available for revenue sharing with local governments from HURF in FY 2011-12. Tempe Population 200 Thousands 150 100 50 0 It is impossible to predict the actions of future Legislatures, and therefore the forecast assumes status quo with regard to future state shared revenue formulae. 50 City of Tempe 2011-12 Annual Budget Development/Redevelopment Despite being a landlocked city, new housing and commercial starts have recently been a strong driver of revenue activity in the Building and Trades category. While the regional single family housing market has been poor, construction in Tempe has been focused on condominium, commercial, and hotel activities. Construction has slowed considerably in the near-term as a constrained credit market coincides with a forecast of overcapacity in the regional commercial and residential sectors of the real estate market. This trend is expected to depress both building permitting revenue as well as sales taxes on contracting activity. The forecast assumes a severely reduced level of construction activity until FY 2012-13. Assessed Valuation Arizona public finance statutes provide for two different property tax bases, distinguished by both their allowable use as well as the extent to which they can grow in successive years. The first is the primary, which is the base used for financing current government operating expenditures in the General Fund, and to a lesser extent, the Rio Salado Fund. This portion of the property tax is limited in the extent to which the levy can grow each year to a level of 2% plus new construction. Building Permits 2,000 1,500 1,000 500 0 The other property tax base is the secondary, which is used to generate revenue to pay annual debt service for the City’s general governmental bonded debt. This tax base is statutorily unlimited in terms of annual growth. During the period from FY 1996-97 through FY 2006-07, Tempe’s secondary assessed value growth was 8% on average. Based on information from the Maricopa County Assessor’s Office, secondary valuations are projected to decrease by 35% overall through FY 2012-13. The decline in taxable value places strict limits on the City’s ability to support General Obligation bonds in the city’s Capital Budget, given a fixed property tax rate. Interest Rates/Cash Balances Interest revenue is expected to be minimal in most funds, the result of reduced invested funds balances and low short term interest rates. Economic Outlook Following the mild recession in 2001 to 2002, both the local and state economies enjoyed a prolonged robust period. The Phoenix metropolitan area was a national leader in population and job growth, factors that undoubtedly benefited Tempe. That trend reversed sharply in FY 2008-09 as the economic recession gripped the state and local economies. Adverse impacts on revenues have been substantial, and are expected to linger into FY 2010-11. Sustained, positive economic growth is not anticipated until FY 2011-12. 51 City of Tempe 2011-12 Annual Budget Major Expenditure Assumptions The following major expenditure assumptions drive the expenditure forecasts for all major operating funds, with the exception of the Debt Service Fund, which is only used for the repayment of bonded debt. Other fund-specific assumptions are detailed within the individual fund discussions. Salaries and Wages On the expenditure side, we have assumed a general freeze on salary and wage adjustments through FY 2011-12 for the purposes of balancing future expenditures with revenue expectations. The City’s normal salary structure allows for 5% annual salary growth within each position’s approved salary range, as well as an annual survey of the market to test the sufficiency of the salary ranges against peer municipalities. Resumption of the normal salary adjustment process is not expected to occur until FY 2012-13 in the forecast. Fringe Benefits Health insurance costs are forecasted to increase for the next five years. Market forces, the movement towards managed care, excellent claims history, and the un-blending of retiree and active employee premiums allowed the City’s active employee health care costs per employee to decline in FY 2010-11, however growth of approximately 10% per year is assumed thereafter. Retiree health care cost will continue to rise as our work force matures and greater percentages of employees retire. Due to recent changes in the retiree health care program, growth in this expenditure category is assumed to be 6% per year. Other Post Employment Benefits (OPEB) A recent decision by the Governmental Accounting Standards Board (GASB) requires government employers to disclose the cost of OPEB over the active life of the benefiting employees (GASB Statement No. 45). The City of Tempe’s liability arises from retiree healthcare subsidies. An actuarial study was commissioned and the findings were forwarded to a City Council committee for review and recommendations. As part of the approved financial balancing plans, the forecast assumes a suspension of advanced funding of OPEB costs until FY 2012-13. Retirement Contributions City of Tempe employees are covered by one of four public retirement systems, depending on job type. The annual employer’s portion of the contribution rates differ by retirement system. The four retirement systems and their anticipated rates are as follows: Arizona State Retirement System Public Safety Retirement - Fire Public Safety Retirement - Police Elected Officials Retirement FY 11/12 10.75% 27.21% 24.22% 32.9% FY 12/13 11.20% 31.32% 27.88% 32.9% FY 13/14 11.55% 36.06% 32.10% 32.9% FY 14/15 11.75% 41.51% 36.95% 32.9% These rates are grown during the forecast period based on information provided from the respective retirement system governing board, as each rate is dependent on the investment decisions of the relevant retirement system as well as the compensation and retirement policies for the system members. The respective systems only publish a formal rate for one year in advance; therefore these projections represent merely the best guess based on available information. Inflation General inflation is expected to fluctuate from 2.2% to 1.9% in the later years of the forecast. Electricity inflation is expected to increase by approximately 3.3% annually through the forecast period, and motor fuel inflation is expected to be higher in the near term (5.6% in FY 2011-12) and gradually slow in the out years (2.7% by FY 2014-15). Limits on Discretionary Budget Increases For this budget forecast, no new programs were authorized, as our focus is to maintain basic services. Capital Improvements Program Operating Budget Impacts An important aspect of the City’s Capital Improvements Program is the identification of operating budget impacts associated with capital projects. Since long-range planning takes place prior to the adoption of the Capital Budget, future impacts of new programs are not included. However, operating impacts for projects approved in prior years’ Capital Budgets are included in the out-years of the forecast. 52 City of Tempe 2011-12 Annual Budget General Fund Forecast Discussion At the beginning of the 2000’s, annual operating surpluses started to decline as revenue growth slowed resulting from a national downturn in the economy. In addition, Tempe’s share of locally distributed state income, sales and vehicle license tax revenue declined in FY 2001-02, due largely to state population growth outpacing that at the local level. This resulted in a brief period of operating deficit in the General Fund in FY 2002-03. From that time and up until FY 2007-08, both the state and local economies experienced robust growth, resulting in operating surpluses in the General Fund as revenue growth outpaced that of expenditures. Due to the state and national recession that began in FY 2007-08, the city’s General Fund experienced a sharp reversal of that trend. Local taxes, including sales taxes, bed taxes, and property taxes are the primary revenue source for the General Fund, constituting 61% of revenue in FY 2011-12. These revenue sources are highly susceptible to economic fluctuations. Projected General Fund local tax revenues for FY 2011-12 are at approximately the same level as the peak collections year of FY 2006-07. However, this is entirely due to voter-approved increases in the bed tax rate from 3% to 5% and a temporary four year increase in the General Fund sales tax rate from 1.2% to 1.4%. Adjusting for these factors, underlying economic activity is 16% below the peak in FY 2006-07. Recent collections and economic reports point to a stabilizing in the local economy, and support moderate growth over the next four years, which translates into commensurate growth in local tax collections. Beginning in FY 2014-15, the expiration of the temporary sales tax results in a projected $11.6 million revenue decline. The next largest source of General Fund revenues is intergovernmental, which is comprised of state sales, income, and vehicle license taxes. This category represents 19% of revenue in FY 2011-12. As with local sales taxes, each of these categories has been sharply negative due to the economic recession. Recovery of state sales and vehicle license taxes is projected to begin in FY 2010-11; however, state income tax distributions are not expected to recover until FY 2012-13 due to a two year lag between collection and distribution. Running counter to the positive near term trends in this category is the effect the 2010 Census will have on collections in FY 2011-12 and thereafter. This is due to the projected decline in Tempe’s share of the state’s urban population that is expected to occur based on the Census results. From an expenditure perspective, employee compensation and benefit costs have traditionally been the largest component of expenditures, representing 78% of the projected total in FY 2011-12. In prior years, the City’s compensation philosophy would adjust the City’s pay structure annually to a level equivalent to the 75th percentile of the regional municipal government sector, and would allow employee salary growth of up to 5% within the salary range structure. In light of the City’s financial situation, annual salary adjustments have been suspended until FY 2012-13 in the forecast, and resume at a 5% pace thereafter. Health care costs for employees are anticipated to decline by 1.6% in FY 2010-11 and grow by approximately 10% per year thereafter. Retiree health care costs are expected to grow by a consistent 6% growth rate during each year of the forecast, due to recent policy changes that cap growth. A series of budget reductions and revenue increases were implemented for FY 2009-10 and FY 2010-11 to address projected budget deficit for those years. In light of the ongoing deficits projected by this forecast, further budget measures will be necessary to achieve long-term balance between revenues and expenditures. Unreserved Fund Balance The General Fund's unreserved fund balance hit a high point of $54 million at FYE 2009. Due to a planned drawdown of fund balance to allow for a phase-in of budget reductions, the fund balance stands at $29 million at FYE 2010. Additional budget balancing discussions will be required to maintain the balance within the policy level in future years of the forecast. FYE 01 02 03 04 05 06 07 08 09 10 Unreserved Fund Balance $36,985,072 35,125,797 34,473,270 34,480,754 37,827,259 40,918,804 43,265,309 44,611,435 54,012,203 29,048,415 53 City of Tempe 2011-12 Annual Budget General Fund: Projected Revenues and Expenditures ($000) 250,000 200,000 150,000 100,000 50,000 0 06-07 Actual Actual 07-08 08-09 Projected Projected 09-10 10-11 Revenues 11-12 12-13 13-14 14-15 15-16 Expenditures 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected Local Taxes 86,570 95,863 93,057 84,375 79,640 92,113 95,749 102,290 107,562 101,267 Intergovernmental Revenues ($000) 40,946 41,453 45,225 44,048 39,134 33,545 30,252 31,830 33,870 35,880 Bldng & Trades/Plan & Zoning 5,506 5,969 6,479 5,681 4,633 3,853 4,151 4,395 4,610 4,827 Cultural and Recreation 4,961 5,294 6,157 6,244 5,441 5,623 5,676 5,822 5,978 6,138 Fines, Fees and Forfeitures 7,288 7,219 8,616 9,201 7,109 7,986 8,354 8,571 8,802 9,040 Business Licenses 1,202 1,331 1,333 1,546 1,538 1,393 1,425 1,462 1,501 1,542 Interest Income 4,794 7,437 9,839 4,932 1,820 1,100 1,090 1,500 1,500 1,500 Franchise Fees 1,867 2,693 3,425 3,981 3,560 3,336 3,570 3,570 3,666 3,765 Other Revenue Sources 5,418 4,462 4,011 4,991 4,895 5,731 5,189 5,189 5,189 5,189 158,553 171,722 178,143 164,998 147,768 154,681 155,455 164,628 172,678 169,147 109,416 120,972 137,189 147,244 144,082 122,231 123,517 136,278 144,006 150,349 7,866 8,783 9,180 8,646 7,907 7,083 7,269 7,461 7,633 7,812 21,576 21,721 23,598 24,124 21,302 24,796 25,415 26,176 27,372 27,796 Travel and Training 720 824 799 426 384 419 427 436 445 455 Non-Deprtmtl/Loan Repayment 1,760 2,412 2,653 2,888 2,537 2,780 2,593 2,648 2,706 2,766 Capital Outlay 3,116 4,670 2,721 4,012 2,071 1,443 1,600 1,600 1,600 1,600 0 1,035 955 786 761 786 786 786 786 786 1,892 2,019 2,007 1,802 1,500 2,000 2,036 2,079 2,124 2,171 (6,511) (6,224) (8,492) (7,034) (7,718) (6,085) (6,195) (6,325) (6,464) (6,606) 139,836 156,211 170,611 182,893 172,826 155,453 157,448 171,139 180,208 187,127 18,718 15,511 7,533 (17,895) (25,058) (772) (1,994) (6,511) (7,530) (17,980) Total Revenues Expenditures ($000) Personal Services Materials and Supplies Fees and Services Transportation Mtnce of Effort Tourism and Convention Bureau Internal Services/Adjustments Total Expenditures Net Operating Surplus/(Deficit) 54 City of Tempe 2011-12 Annual Budget Special Revenue Funds: Projected Revenues and Expenditures Transit Fund Forecast Discussion The primary revenue source to the Transit Fund is the Transit Tax, which makes up 63% of fund revenue in FY 2011-12. This specific tax, approved in September 1996 and effective January 1997, represents 0.5% of the City’s total 2.0% sales tax. As a component of overall City sales tax, the trend projected in General Fund sales tax revenue is mirrored in the Transit Fund. However, since the temporary sales tax increase is dedicated to the General Fund, there will be no impact on the Transit Fund from its expiration. The second largest revenue source to the Transit Fund is out of jurisdiction service payments, which contributes 20% of fund revenue in FY 2011-12. This revenue source represents payments from other cities to the Transit Fund for services provided on bus routes that extend outside of Tempe. The growth in this revenue source is projected to be 2.6% per year on average, based on estimates from the Transit division’s bus service model. The Transit Fund expenditure model is different from most other City funds in that the largest component of expenditures is not personal services. Due to the use of intergovernmental agreements and contractual arrangements for transit service provision, the largest expenditure category is fees and services, which makes up 72% of projected expenditures in FY 201112. The pattern of growth reflected in the expenditure estimates for fees and services relies on the 20-Year Transit Business Plan and the assumptions made in that plan regarding the expansion of routes, the acquisition of new buses, and the operation of the light rail system. Average growth in this category is projected to be 2.6% per year on average through the end of the four year forecast period. Given projected revenue growth and operating profile, the forecast is for the fund to be in a deficit condition through the end of the forecast. In light of this, a three-year phased in budget balancing effort is being employed, with cuts and additional revenue measures being proposed for FY 2010-11 through FY 2012-13. Unreserved Fund Balance The Transit Fund’s unreserved fund balance has grown from $29.3 million in FY 2000-01 to $72.2 million at the end of FY 2009-10. Receipt of federal reimbursements for prior year expenditures is the sole reason for balance growth in the near-term. Over the long-term, balances are forecast to decline absent corrective action, due to the structural operating deficit. FYE 01 Unreserved Fund Balance $29,318,960 02 40,943,760 03 48,999,032 04 42,109,647 05 29,567,749 06 41,826,902 07 38,184,626 08 33,240,056 09 54,247,682 10 72,170,247 55 City of Tempe 2011-12 Annual Budget Transit Fund: Projected Revenues and Expenditures ($000) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 05-06 Projected Actual 06-07 07-08 08-09 09-10 Revenues 10-11 11-12 12-13 13-14 14-15 Expenditures 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected Revenues ($000) Transit Tax 32,440 34,971 32,450 29,851 27,891 28,136 29,124 31,407 33,498 35,469 Lottery Transfer In 266 257 254 278 184 0 0 0 0 0 ASU-Flash Transit 496 529 581 603 721 891 920 950 980 1,010 Interest Income 1,320 1,142 960 180 404 212 210 67 0 0 Light-Rail Fares 0 0 0 964 2,603 2,662 2,410 2,490 2,560 2,640 6,536 7,897 8,674 11,298 10,473 8,846 9,120 9,390 9,520 9,820 0 0 0 2,305 2,241 2,476 2,675 2,756 2,838 2,923 1,462 888 641 3,376 1,891 1,575 1,580 1,588 1,596 1,604 42,521 45,684 43,561 48,854 46,408 44,798 46,040 48,647 50,992 53,466 Personal Services 2,294 2,543 3,292 3,841 4,027 3,345 3,380 3,600 3,780 3,910 Materials and Supplies 1,870 2,082 3,251 6,451 3,670 3,754 3,820 3,900 3,990 4,080 19,986 23,231 30,844 39,811 42,892 40,364 41,200 42,330 43,550 44,800 Out of Jurisdiction Svc Revenue PTF Funding Miscellaneous Revenue Total Revenues Expenditures ($000) Fees and Services Travel and Training 36 43 29 28 11 13 10 10 10 10 Capital Outlay 190 140 123 250 61 18 20 20 20 20 Debt Service 594 4,045 5,518 6,019 5,186 9,550 8,564 8,558 8,557 8,557 Internal Svc Chgs/Adjustments 314 310 317 531 751 387 390 400 410 420 0 0 0 0 0 0 187 192 197 202 696 847 808 650 656 633 640 650 660 670 Total Expenditures 25,979 33,241 44,183 57,581 57,255 58,064 58,210 59,659 61,174 62,669 Net Operating Surplus/(Deficit) 16,542 12,444 (622) (8,727) (10,847) (13,265) (12,171) (11,012) (10,182) (9,202) Contingency Indirect Cost Allocations 56 City of Tempe 2011-12 Annual Budget Performing Arts Fund Forecast Discussion The Performing Arts Fund receives its primary revenue from the Performing Arts Tax, which represents 91% of fund revenue in FY 2011-12. This specific tax, approved in May 2000 and effective January 2001, represents 0.1% of the City’s total 2.0% sales tax. Monies received from this tax are dedicated to the operating expenses of the Tempe Center for the Arts, and the debt service associated with the center’s original construction. Authorization for this tax expires in 2020. Since the Performing Arts Tax is a component of the overall City sales tax, the trend projected for General Fund sales tax revenue is mirrored in the Performing Arts Fund. However, since the temporary sales tax increase is dedicated to the General Fund, there will be no impact on the Performing Arts Fund from its expiration in FY 2013-14. The other main component of current revenue is facility revenues. Beginning in FY 2007-08 the fund began to receive revenue from programming at the facility. This revenue stream is projected to grow 3.25% on average through the end of the forecast period, and represents 9% of fund revenue. The historical expenditure growth pattern reflects the opening of the Tempe Center for the Arts (TCA) in September of 2007. In FY 2005-06, 19 new full-time positions and related capital equipment were added to prepare for the full-time operation of the TCA. These costs represent the operating impacts of this capital project as identified in prior years’ Capital Improvements Programs. An equally significant expenditure item is the annual cost of debt service to amortize the bonds issued to build TCA. As a result of the ongoing expenditure growth outpacing the sales tax base, the forecast is for ongoing operating deficits and for balances to be zero by FY 2013-14. In light of this, efforts will be necessary to adjust expenditures to ensure future fund solvency. Unreserved Fund Balance The Performing Arts Fund’s reserved balance grew steadily from the fund’s inception in FY 2001-02 until the middle of the decade. Given the new circumstances of the economic recession, the fund balance will be depleted absent corrective action. FYE 02 03 04 Unreserved Fund Balance $7,116,094 10,865,891 14,339,689 05 06 14,255,302 15,064,184 07 08 14,865,175 9,635,775 09 10 8,328,983 5,937,646 57 City of Tempe 2011-12 Annual Budget Performing Arts Fund: Projected Revenues and Expenditures ($000) 10,000 8,000 6,000 4,000 2,000 Actual 0 05-06 06-07 07-08 Projected 08-09 09-10 Revenues 10-11 11-12 12-13 13-14 14-15 Expenditures 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected 6,480 7,008 6,820 6,159 5,750 5,831 6,082 6,559 6,995 7,407 0 0 662 745 562 576 594 614 633 654 Interest Income 574 692 645 224 108 45 24 0 0 0 Total Revenues 7,054 7,700 8,127 7,128 6,420 6,452 6,700 7,172 7,629 8,061 Revenues ($000) Performing Arts Tax Facility Revenue Expenditures ($000) Personal Services 337 545 1,579 1,871 1,970 1,535 1,571 1,663 1,756 1,837 Materials and Supplies 65 853 797 99 78 126 129 131 134 137 Fees and Services 84 538 754 514 452 511 525 539 555 571 9 9 4 2 1 3 3 3 3 3 Travel and Other Capital Outlay 158 108 38 0 0 0 0 0 0 0 6,295 6,059 6,014 6,017 6,008 6,026 6,028 6,025 6,023 6,034 287 123 150 242 286 277 282 288 294 300 Total Expenditures 7,235 8,235 9,335 8,746 8,794 8,477 8,536 8,649 8,765 8,882 Net Operating Surplus/(Deficit) (180) (535) (1,208) (1,618) (2,374) (2,025) (1,836) (1,477) (1,136) (821) Debt Service Internal Service Charges 58 City of Tempe 2011-12 Annual Budget Transportation Fund Forecast Discussion The primary revenue source to this fund is the intergovernmental distribution from the state Highway User Revenue Fund. This funding source represents 88% of revenue in FY 2011-12. This fund derives the bulk of its monies from an 18¢ per gallon charge on gasoline consumption and from Vehicle License Taxes. Based on a statutory formula, each fiscal year 27.5% of this fund is distributed to local governments with less than 300,000 populations. Consistent with the impact of the recession on gasoline consumption, it is expected that gasoline sales will be moderate over the forecast period. As with other intergovernmental resources, this revenue is distributed based on relative population ratios. Tempe’s share is expected to decline due to our stable population relative to growth statewide. One recent change to the fund revenue structure is the abolishment of the transfer of State Lottery revenue into the fund for th local transportation assistance purposes. This transfer was abolished in Chapter 12, Laws 2010, 7 Special Session as part of legislative efforts to balance the state General Fund. This transfer had historically generated approximately $500 thousand for local transportation purposes. Personal Services and Debt Service expenditures make up the majority of fund expenditures, representing 30% and 24% of expenditures respectively. The debt service amounts are capped at $2.7 million for the remainder of the forecast period, and represent a contribution from the Transportation Fund to repay a portion of outstanding debt issued for Street, Signs and Signal construction. Any excess transportation-related General Obligation debt service requirements beyond this cap will be absorbed by the Debt Service Fund during the five-year period. In light of the structural deficit in this fund, budget balancing efforts will be necessary to bring future revenues and expenditures into balance. At the current pace the fund balance will be depleted by FY 2013-14. Unreserved Fund Balance Transportation Fund balances have recovered somewhat from the lows experienced a few years ago. While the unreserved fund balance reached its highest point at FYE 2008, the balance has declined drastically recently in light of the projected operating deficits. FYE 01 02 03 04 05 06 07 08 09 10 Unreserved Fund Balance $5,828,406 5,730,635 4,404,944 4,591,847 7,260,747 8,784,878 10,237,638 11,199,716 7,119,128 4,644,399 59 City of Tempe 2011-12 Annual Budget Transportation Funds: Projected Revenues and Expenditures ($000) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 05-06 Projected Actual 06-07 07-08 08-09 09-10 Revenues 10-11 11-12 12-13 13-14 14-15 Expenditures 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected 11,224 11,854 11,387 9,945 9,422 9,158 9,275 9,430 9,681 9,978 799 771 762 709 0 0 0 0 0 0 68 10 1 7 516 475 475 475 125 125 870 1,035 955 786 761 786 786 786 786 786 Revenues ($000) Highway User Revenue Tax State Lottery Proceeds Miscellaneous Maintenance of Effort Transfer Lottery Transfer to Transit Total Revenues (266) (257) (254) (278) 0 0 0 0 0 0 12,694 13,413 12,851 11,169 10,700 10,419 10,536 10,691 10,592 10,889 4,107 4,112 4,821 5,081 5,245 3,506 3,536 3,874 4,094 4,255 533 513 537 670 465 621 632 646 660 674 1,736 1,897 1,901 1,977 2,052 2,205 2,271 2,340 2,411 2,485 0 24 47 26 17 24 25 25 26 26 Expenditures ($000) Personal Services Materials and Supplies Fees and Services Travel and Training Capital Outlay 330 361 140 1,269 549 256 325 576 576 576 2,000 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 310 310 310 310 310 310 0 0 0 0 Internal Service Charges 1,036 1,226 1,212 1,354 1,035 1,122 1,142 1,166 1,191 1,218 Indirect Cost Allocations 619 1,025 813 692 927 854 869 888 907 927 10,670 12,237 12,551 14,147 13,369 11,668 11,570 12,283 12,634 12,931 2,024 1,176 300 (2,978) (2,670) (1,249) (1,034) (1,592) (2,042) (2,042) Debt Service Loan Repayment Total Expenditures Net Operating Surplus/(Deficit) 60 City of Tempe 2011-12 Annual Budget Rio Salado and Community Facilities District (CFD) Funds Forecast Discussion The Rio Salado Fund and the Community Facilities District are two separate fiscal entities with a common purpose: to provide a reliable funding source to pay for the cost of the annual operations and maintenance of the lake, and the debt service associated with its construction. The primary revenue source to the Rio Salado/Community Facilities District (CFD) Fund is the Sales Tax, which makes up 43% of fund revenue in FY 2011-12. The Rio Salado enterprise zone is a special district developed around the Tempe Town Lake project to account for all revenues and expenditures within the district. The trend projected in General Fund sales tax revenue is largely mirrored in the Rio Salado/CFD Fund with exceptions for particular differences between activity within the district and the city as a whole. Revenues generated by the temporary 0.2¢ sales tax that occur within the Rio Salado area are restricted to use for Rio Salado purposes. The other major component of revenue is Community Facilities District property tax assessment collections from property owners, which represents 29% of revenues. The largest expenditure category in the fund is for CFD operating and maintenance. This includes all administrative, project management, maintenance, and water quality activities in and around the Tempe Town Lake. This category represents 59% of fund expenditures in FY 2011-12. Unreserved Fund Balance The variation depicted in the unreserved fund balance is due to planned drawdowns to fund capital and land purchase costs. FYE 01 Unreserved Fund Balance $5,032,088 02 2,062,140 03 0 04 0 05 06 07 08 09 10 0 467,735 287,458 900,297 1,008,059 979,634 61 City of Tempe 2011-12 Annual Budget Rio Salado and Community Facilities District (CFD) Funds: Projected Revenues and Expenditures ($000) 5,000 4,000 3,000 2,000 1,000 Projected Actual 0 05-06 06-07 07-08 08-09 09-10 Revenues 10-11 11-12 12-13 13-14 14-15 Expenditures 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected 580 797 1,397 1,333 1,336 1,576 1,628 1,682 1,737 1,563 Revenues ($000) Sales Tax Property Tax 66 74 122 114 200 175 245 255 266 277 Transient Lodging Tax 219 240 275 247 267 471 486 499 514 530 Interest Revenue 171 200 204 101 80 95 130 130 130 130 Other Revenue 128 160 169 147 16 247 223 223 223 223 CFD Revenue Total Revenues 639 579 1,112 882 1,900 1,052 1,071 1,076 1,082 1,087 1,804 2,051 3,279 2,825 3,801 3,618 3,783 3,865 3,952 3,810 614 793 1,942 2,086 2,179 1,486 1,543 1,673 1,751 1,833 27 17 83 91 57 123 125 128 130 133 687 828 507 475 506 512 522 533 544 556 2 5 3 3 2 4 4 4 4 5 Expenditures ($000) Personal Services Materials and Supplies Fees and Services Travel and Training Capital Outlay 0 0 0 7 69 0 0 0 0 0 215 414 343 613 579 532 542 553 565 578 CFD Administrative Credit (419) (414) (1,263) (1,397) (1,468) (1,202) (1,224) (1,250) (1,277) (1,305) CFD Operating and Maintenance 2,118 2,042 2,602 2,737 2,340 2,537 2,562 2,588 2,614 2,640 Total Expenditures 3,244 3,686 4,216 4,615 4,263 3,992 4,073 4,229 4,331 4,439 (1,441) (1,635) (937) (1,790) (462) (374) (290) (364) (380) (629) Internal Service Charges Net Operating Surplus/(Deficit) 62 City of Tempe 2011-12 Annual Budget Enterprise Funds: Projected Revenues and Expenditures Water/Wastewater Fund Forecast Discussion Nearly all revenue to the Water/Wastewater Fund is from User Charges for water and sewer services, which account for 99% of fund revenue in FY 2011-12. Since the number of customer accounts grows at a very slow pace due to a stable population, the primary mechanism to enhance revenue for the enterprise fund is rate increases. The forecast assumes that rates will be increased in future years as necessary to bring revenues in line with expenses. The largest expense of the fund is for Debt Service, representing 46% of expenses in FY 2011-12. The growth pattern for this expense is due to current amortization schedules as well as projected new debt issuance in future years. These factors result in an average growth rate of 5.7% for this category. The Water/Wastewater Fund is projected to experience an operating surplus beginning in FY 2011-12; however this is due entirely to future planned rate increases. Unreserved Fund Balance In FY 2006-07 planned drawdowns of Water/Wastewater Fund balance were initiated to partially support water/wastewater bond debt service payments to facilitate the phasing in of new user rate increases which began in 2008. The fund balance stands at $34.4 million at FYE 10. FYE 01 02 03 04 05 06 07 08 09 10 Unreserved Fund Balance $55,717,922 59,841,408 58,958,188 58,790,163 60,752,643 65,560,342 55,628,214 50,599,282 42,899,644 34,402,741 63 City of Tempe 2011-12 Annual Budget Water/Wastewater Fund: Projected Revenues and Expenses ($000) 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 05-06 Actual 06-07 07-08 Projected 08-09 09-10 10-11 Revenues 11-12 12-13 13-14 14-15 Expenses 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected 26,367 26,714 28,146 29,071 32,813 34,361 38,445 42,779 45,512 47,364 18,025 19,462 20,933 23,330 27,512 30,360 35,380 37,494 39,734 41,357 1,609 2,485 3,355 1,523 789 672 500 564 667 790 Land and Facility Rental 519 520 520 536 520 520 536 542 548 554 Loan Repayment 114 97 79 60 543 543 0 0 0 0 Other Miscellaneous Revenue 241 666 254 178 114 55 55 55 55 56 46,875 49,943 53,287 54,698 62,292 66,510 74,915 81,434 86,517 90,121 12,451 13,265 15,454 15,901 17,849 15,041 15,036 16,165 16,916 17,690 Revenues ($000) Charges for Service-Water Charges for ServiceWastewater Interest Income Total Revenues Expenses ($000) Personal Services Materials and Supplies 2,811 3,565 3,870 4,111 4,233 5,654 5,710 5,830 5,958 6,066 14,334 12,441 12,559 13,072 13,304 15,230 14,254 14,473 14,702 14,938 124 215 173 148 131 136 138 141 144 147 13,200 16,747 22,413 25,867 28,940 31,157 33,327 34,540 37,130 38,738 Internal Service Charges 1,892 2,526 2,208 1,581 2,297 1,754 1,785 1,823 1,863 1,904 Indirect Cost Allocations 1,825 1,516 1,847 2,434 2,146 1,853 1,886 1,926 1,968 2,012 46,636 50,275 58,524 63,113 68,900 70,824 72,136 74,897 78,681 81,495 239 (331) (5,237) (8,415) (6,608) (4,314) 2,779 6,537 7,836 8,626 Fees and Services Travel and Training Debt Service Total Expenses Net Operating Surplus/(Deficit) 64 City of Tempe 2011-12 Annual Budget Solid Waste Fund Forecast Discussion Nearly all revenue to the Solid Waste Fund is from User Charges for solid waste services, which account for 99% of fund revenue in FY 2011-12. Since the number of customer accounts grows at a very slow pace due to a stable population, the primary mechanism to enhance revenue for the enterprise fund is rate increases. The forecast assumes no rate increase in the future years of the forecast. However, solid waste rates are subject to annual rate reviews to ensure that the fund remains fully self-sufficient and to smooth the effect of potential rate adjustments on the City’s residential and commercial customers. The primary drivers of fund expenses are personal services and fees and services, which represent 36% and 30% of FY 201112 expenses respectively. Since Tempe does not own its landfill, the primary component of fees and services, is landfill tipping charges which are expected to grow at the rate of inflation over the next four years. Unreserved Fund Balance There is a $5.6 million fund balance in the Solid Waste Fund at FYE 2010. With environmental mandates always present, this enterprise operation will require as much financial flexibility as possible for contingent compliance driven costs. FYE 01 02 03 04 05 06 07 08 09 10 Unreserved Fund Balance $451,358 20,065 469,027 1,138,305 2,226,136 3,019,582 4,895,596 3,888,080 4,634,470 5,589,167 65 City of Tempe 2011-12 Annual Budget Solid Waste Fund: Projected Revenues and Expenditures ($000) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 05-06 Actual 06-07 07-08 Projected 08-09 09-10 10-11 Revenues 11-12 12-13 13-14 14-15 Expenses 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Actual Actual Actual Actual Projected Projected Projected Projected Projected Projected 12,749 13,626 14,456 14,934 14,958 15,279 15,161 15,235 15,310 15,310 151 62 86 0 0 0 0 0 0 0 Revenues ($000) Charges for Services Sludge Disposal Interest Income 83 175 218 106 67 45 66 65 60 54 399 172 232 400 251 102 100 100 100 100 13,382 14,035 14,993 15,440 15,275 15,426 15,327 15,400 15,470 15,463 4,302 4,611 5,056 5,414 5,729 5,449 5,422 5,845 6,127 6,401 146 206 519 162 93 233 238 243 248 253 Fees and Services 3,414 3,548 3,633 3,697 3,319 4,288 4,380 4,475 4,224 4,317 Capital Outlay Internal Service/Adjustments 1,559 725 3,431 1,377 2,046 1,310 1,540 1,876 1,808 1,808 2,370 2,505 2,942 3,167 2,594 2,391 2,422 2,462 2,504 2,548 Other Revenue Sources Total Revenues Expenses ($000) Personal Services Materials and Supplies Indirect Cost Allocations Total Expenses Net Operating Surplus/(Deficit) 617 646 832 790 782 793 808 825 843 861 12,408 12,240 16,412 14,607 14,563 14,465 14,809 15,725 15,754 16,188 974 1,795 (1,419) 833 712 962 518 (325) (284) (725) 66 City of Tempe 2011-12 Annual Budget Golf Fund Forecast Discussion The largest component of Golf Fund revenue is Greens Fees, which contribute 81% of revenue in FY 2011-12. Over the forecast period we expect revenue growth to generally follow the historical patterns, although other unpredictable factors such as weather conditions and competition from other courses in the valley may improve or worsen usage of the municipal golf courses. As with the City’s other self-supporting Enterprise operations, annual rate reviews are conducted of the Golf Fund. In general, the fund is experiencing growing expenses and declining revenues. As with other funds, budget balancing planning will take place in the coming months to bring expenses in line with revenues. In addition, due to ongoing operating shortfalls, special attention has been given to operating cost reductions and review of contracts with Golf program vendors to ensure future fund viability. Unreserved Fund Balance As of FYE 2010, the Golf Fund has a deficit balance. This fund is currently relying on interfund loans to sustain operations. FYE 01 Unreserved Fund Balance $893,591 02 791,701 03 680,101 04 604,703 05 540,158 06 468,457 07 263,853 08 217,821 09 42,449 10 (107,509) 67 City of Tempe 2011-12 Annual Budget Golf Fund: Projected Revenues and Expenditures ($000) 2,500 2,000 1,500 1,000 500 Projected Actual 0 05-06 06-07 07-08 08-09 09-10 10-11 Revenues 11-12 12-13 13-14 14-15 Expenses 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected 1,750 1,689 1,653 1,562 1,370 1,145 1,106 1,069 1,032 997 221 223 331 252 204 105 255 280 280 280 Interest Income 16 19 14 5 1 0 0 0 0 0 Other Revenue Sources 55 51 65 66 3 0 0 0 0 0 2,041 1,983 2,064 1,885 1,578 1,250 1,362 1,349 1,312 1,277 Personal Services 988 1,005 1,098 1,225 1,115 785 819 903 941 980 Materials and Supplies 256 249 250 220 198 234 239 244 249 254 Fees and Services 456 307 367 379 448 451 483 519 545 568 Travel and Training 0 0 0 0 0 0 0 0 0 0 Depreciation 0 0 0 0 0 0 0 0 0 0 Debt Service Interest 0 0 0 0 0 0 0 0 0 0 Contingency 0 0 0 0 0 0 0 0 0 0 Capital Outlay 59 0 5 56 8 0 56 56 56 56 Debt Service 153 152 2 0 0 0 6 11 17 25 Internal Service Charges 141 148 187 157 132 125 127 130 133 136 Indirect Cost Allocations 188 195 170 139 126 129 131 134 137 140 Total Expenses 2,240 2,056 2,078 2,175 2,027 1,724 1,861 1,995 2,078 2,159 Net Operating Surplus/(Deficit) (199) (73) (15) (291) (449) (474) (499) (647) (766) (882) Revenues ($000) Greens Fees Pro Shop/Restaurant Total Revenues Expenses ($000) 68 City of Tempe 2011-12 Annual Budget Cemetery Fund Forecast Discussion The largest component of Cemetery fund revenue is lot sales and burial fees, which contribute 95% of revenue in FY 2011-12. Over the forecast period we expect revenue growth to generally follow the historical patterns. Most operating expenses and responsibilities were absorbed by the Public Works budget leaving debt service payments as the only remaining expenditure in this fund. At this point, the General Fund will cover the deficit. The Cemetery Fund was established to operate as a self-supporting fund that utilizes revenues from burial lot sales to finance all costs of operation. Since fund inception, sales have continued to fall short of expectations and have not been sufficient to pay for operations. As a result, the fund has not accumulated a balance and is projected to experience annual deficits through the forecast period. Debt service requirements associated with a FY 2004-05 renovation continue to be the fund’s largest annual expense. Unreserved Fund Balance Due to historical annual operating deficits, the Cemetery Fund has not accumulated a fund balance, and annual losses continue to be covered by the General Fund. FYE 06 Unreserved Fund Balance $0 07 0 08 0 09 0 10 0 69 City of Tempe 2011-12 Annual Budget Cemetery Fund: Projected Revenues and Expenditures ($000) 350 300 250 200 150 100 50 0 05-06 Projected Actual 06-07 07-08 08-09 09-10 Revenues 10-11 11-12 12-13 13-14 14-15 Expenses 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Actual Actual Actual Actual Projected Projected Projected Projected Projected Projected 10 12 225 91 107 136 142 148 153 160 9 6 7 7 9 8 8 8 8 8 87 109 248 98 117 144 150 156 161 168 23 66 106 90 97 0 0 0 0 0 Materials and Supplies 1 1 13 5 2 0 0 0 0 0 Fees and Services 0 1 7 8 7 0 0 0 0 0 Capital Outlay 0 19 0 0 0 0 0 0 0 0 202 180 177 181 186 184 186 188 188 188 Internal Service Charges 4 1 0 5 5 0 0 0 0 0 Indirect Cost Allocations 17 8 10 9 10 0 0 0 0 0 248 276 313 298 307 184 186 188 188 188 (161) (167) (65) (199) (191) (39) (36) (32) (27) (21) Revenues ($000) Lot Sales & Burial Lot Care Total Revenues Expenses ($000) Personal Services Debt Service Total Expenses Net Operating Surplus/(Deficit) 70 City of Tempe 2011-12 Annual Budget Debt Service Fund Forecast Discussion The primary revenue source to the Debt Service Fund is secondary property taxes, which are projected to represent 84% of fund revenue in FY 2011-12. Growth in this revenue stream is predicated on property valuation trends and City property tax policy decisions. Given declining property values coupled with an assumed stable tax rate, the projection is for a steep drop in collections in the near term, with smaller declines thereafter. The expenditures from the Debt Service fund are restricted to repayment of principal and interest cost associated with longterm debt. Based on current debt amortization schedules in the Debt Management Plan and projected new principal and interest associated with the five-year Capital Improvements Plan, future principal and interest costs are expected to be generally flat through the forecast period. At FYE 2010, the Debt Service Fund had a restricted balance of $38.1 million. Due to the projected deficit over the forecast period, it is anticipated that a drawdown of balance will be necessary as a sustainable debt financing model is pursued. FYE 01 Reserved Fund Balance $9,135,690 02 12,123,427 03 13,471,704 04 13,335,706 05 15,991,147 06 18,547,848 07 17,607,767 08 23,858,992 09 31,844,188 10 38,126,393 71 City of Tempe 2011-12 Annual Budget Debt Service Fund: Projected Revenues and Expenditures ($000) 30,000 25,000 20,000 15,000 10,000 5,000 0 05-06 Projected Actual 06-07 07-08 08-09 09-10 Revenues 10-11 11-12 12-13 13-14 14-15 Expenditures 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected 16,431 16,465 20,782 23,416 24,913 22,165 15,694 13,497 13,119 12,551 Revenues ($000) Secondary Property Tax Transfer from HURF 2,000 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 AZSTA Payment 143 28 273 263 0 103 182 658 678 1,111 SRP In -Lieu Payment 897 919 935 876 0 0 0 0 0 0 74 29 21 8 0 0 0 0 0 0 Interest Income Bond Proceeds Premium 288 634 0 599 756 0 0 0 0 0 Other Revenue 0 16 48 103 0 0 0 0 0 0 Total Revenues 19,833 20,860 24,828 28,035 28,439 25,038 18,646 16,925 16,567 16,432 11,180 12,705 13,090 14,061 16,318 17,836 17,847 17,030 17,183 17,311 Excise Tax Debt Service 1,668 1,745 1,733 1,733 2,254 2,259 2,247 2,248 2,258 2,265 Rio Salado Debt Service 3,087 3,047 3,063 3,058 3,058 3,050 3,055 3,056 3,055 3,051 0 0 638 463 288 463 463 463 463 463 377 396 54 735 333 75 75 75 75 75 0 3,907 0 0 0 0 0 0 0 0 16,311 21,800 18,577 20,050 22,250 23,681 23,687 22,871 23,033 23,164 3,521 (940) 6,251 7,985 6,189 1,357 (5,041) (5,946) (6,466) (6,732) Expenditures ($000) G.O. Debt Service America West Payment Fiscal Agent Fees Debt Service Reserve Transfer Total Expenditures Net Operating Surplus/(Deficit) 72 City of Tempe 2011-12 Annual Budget Financial Action Plan Recommended Plan of Action Several recommendations are offered as key elements of a financial action plan, which can be implemented to meet future operating and infrastructure fiscal challenges. Many recommendations are intended to adjust expenditure growth to keep the rate of expenditure growth in line with anticipated revenue growth. Budget Balancing Plans Continue to utilize a multi-year approach to bring all City operating funds into stable operating condition, using a combination of revenue and expenditure methods while minimizing impacts on residents to the extent possible.  Expenditure Control/Supplemental Limits Decreasing personnel growth has the advantage of providing both near-term benefits and long-term expenditure control for the City. The addition of personnel has a greater fiscal impact on a fund than any other type of budget appropriation. Any successful effort to control spending in the General Fund or any of our funds will need to be directed at slowing or decreasing the growth in personnel and associated costs.  We recommend a continued annual evaluation of an appropriate General Fund supplemental limit, with consideration given to our long-range revenue and expenditure forecasts and how various supplemental scenarios will affect our long-term financial condition.  Modified Base Budget Plan Continuation of a modified base budget review program is recommended. This entails a review of departmental base budgets, with the size of modifications linked directly to financial forecasts. Modified base budgets incorporate historical spending patterns, price adjustments, and long-range forecasts, thereby limiting budgetary growth within departments. Continue to Limit Midyear Adjustments Even as the City effectively manages supplemental additions through the normal budget process, there is a tendency to circumvent this process for additional midyear appropriations and personnel, often with little or no needs assessment, fiscal impact analysis or prioritization with other budgetary needs. The fiscal impact of these midyear adjustments poses a risk to careful long-range financial planning and should be discouraged except under unusual circumstances where an adjustment is warranted.  Adhere to Debt Management Plan Continued commitment to the Debt Management Plan is strongly recommended. Sizing the City's Capital Improvements Program budget to the Debt Management Plan will stabilize per capita outstanding tax-supported debt while lowering annual debt service costs. This will also help to preserve our sound financial standing and bond ratings. Adoption of the Debt Management Plan has been one of the most significant financial decisions over the last decade.  Comprehensive Financial Plan The Comprehensive Financial Plan, along with the Debt Management Plan, have served as the cornerstones of the long-term fiscal strength of the City. We recommend a continued update of this financial capacity study to provide a long-term perspective to the policy decisions of today.  Identify and Limit CIP Operating Budget Impacts In addition to establishing a viable supplemental limit, identifying the operating budget impact of Capital Improvements Program (CIP) projects is a significant factor in achieving control over expenditure growth. We recommend continued efforts to refine the process of identifying these impacts and ensuring that provisions are made in operating budgets for these impacts as CIP projects are approved.  Financial Policies  Continued adherence to our operating budget, debt service, capital expenditure and investment policies, while maintaining ample fund balances and reserves, is the best strategy the City has to ensure its sound fiscal position. These policies require periodic review to strengthen and update as necessary. The point here is to warn against "creative finance" solutions and the underlying impacts these solutions may have on the City in the longer term. Protect State Shared Revenue It is recommended that we continue our efforts in coalition with the League of Arizona Cities and Towns to protect state shared revenue. They are very likely to continue to be at risk over the next few years. A freeze of state shared revenue or a significant change in distribution methodologies could pose a costly financial risk to General Fund and Transportation Fund revenue.  73 City of Tempe 2011-12 Annual Budget Economic Development/Redevelopment A further recommendation is to continue improving our economic development and redevelopment efforts to increase property valuation, commercial growth and job growth in the City. Effective decision-making on economic development and redevelopment will require us to evaluate the relative merits of development projects, placing emphasis on those adding the greatest value for Tempe’s residents.  Review Benefits Program We recommend that the City explore employee benefit options to ensure that Tempe’s benefits package remains competitive with other valley cities. On the other hand, the City must also explore alternative means of minimizing expected increases in health care costs, both employee and retiree.  Transit Plan With voter approval of a dedicated funding source for transit and the expansion of transit services, the City has created a 20year Transit Business Plan. Also, Transit has developed an extensive benchmarking program in conjunction with the Transit Advisory Committee to evaluate services and assist in long-range planning. Both the Transit Plan and the benchmarking effort are valuable tools in the City’s continued provision of transit service and should be regularly updated.  Water/Wastewater Infrastructure Costs Careful financial planning will be required to address the increasing capital costs associated with water infrastructure and st sewage treatment, primarily at the regional 91 Avenue Plant. We recommend a financial plan that minimizes sudden spikes in rates and controls expenditure growth.  Regular Review of City Fees and Charges Incremental increases in City fees and charges maintain the City’s ability to keep pace with inflation. The City’s long-term revenue outlook should include regular review of all City fees to ensure cost recovery as allowed by Council policy.  Program Sunsetting We recommend that the City continue, through the budgetary process, the annual sunset review program. This program facilitates a review of all existing citywide programs, using evaluation criteria to serve as guides in considering the merits of sunsetting an existing program.  Strategic Issues Program The Strategic Issues Program provides a link between the City’s budget process (resource allocation) and the long-term goals of the City. The strategic issues are periodically updated and refined. Where relevant, departmental budget requests are linked to the City Council’s Strategic Issues. This gives direction to the budget process and a clearer rationale for resource allocation decisions. We recommend a continuation of this process and further reinforcement of the value in linking budget requests to strategic issues.  Benchmarking/Performance Management We recommend that the City continue its efforts in benchmarking and performance management. These activities will provide the City with opportunities to evaluate and improve service delivery while enhancing accountability to the residents.  74 City of Tempe 2011-12 Annual Budget Revenue Information Contents Total Revenue .......................................................................................................................................................................... 76 Total Revenue by Source ......................................................................................................................................................... 77 Components of Total Revenue ................................................................................................................................................. 78 Comparative Operating Revenue by Major Source and Fund .................................................................................................. 79 General Governmental Revenue: Ten Year Historical Trends ................................................................................................ 82 City Sales Tax ...................................................................................................................................................................... 82 Transient Lodging Tax .......................................................................................................................................................... 83 City Property Tax .................................................................................................................................................................. 84 Salt River Project In-Lieu Tax ............................................................................................................................................... 85 State Shared Sales Tax ........................................................................................................................................................ 86 State Shared Vehicle License Tax........................................................................................................................................ 87 State Shared Income Tax ..................................................................................................................................................... 88 Charges for Services/Cultural and Recreational ................................................................................................................... 89 Charges for Services/Development Related ......................................................................................................................... 90 Fines and Forfeitures ............................................................................................................................................................ 91 Special Revenue: Ten Year Historical Trends ......................................................................................................................... 92 Transit Tax............................................................................................................................................................................ 92 Performing Arts Tax ........................................................................................................................................................... 93 Highway User Tax ............................................................................................................................................................... 94 Local Transportation Assistance Fund ............................................................................................................................ 95 Community Development Block Grant/Section 8 Housing Grant .................................................................................. 96 Enterprise Revenue: Ten Year Historical Trends ............................................................................................................... 97 Water/Wastewater User Fees............................................................................................................................................. 97 Solid Waste Fees ................................................................................................................................................................ 98 Golf Course Fees ................................................................................................................................................................ 99 75 City of Tempe 2011-12 Annual Budget Total Revenue Total revenue for FY 2011-12 is $400.8 million reflecting $351.5 million in operating revenue and $49.3 million from bond proceeds, fund balances and other funding sources in the Capital Budget. The FY 2011-12 operating revenue total represents a 3.9% increase from FY 2010-11. The increase in operating revenue sources is primarily in the General Governmental and Transportation/Transit areas and consists largely of an increase in local tax collections. FY 2011-12 Other, 7% Transportation, 16% Bonds/ CIP Fund Balances 12% Enterprise, 25% Operating Revenue 88% General Governmental, 52% TOTAL REVENUE FY 2010-11 Budget FY 2011-12 Budget $111,990,632 $123,481,157 1,567,696 1,568,450 Intergovernmental 35,054,557 31,231,933 Charges for Services 11,200,441 10,257,097 Fees, Fines, and Forfeitures 10,322,095 8,427,007 Miscellaneous 8,074,656 7,398,134 Transportation/Transit 54,194,614 56,694,356 5,796,368 6,776,100 CDBG/Section 8 Housing 16,417,949 17,001,929 Enterprise 83,554,952 88,656,841 TOTAL OPERATING REVENUE $338,173,960 $351,493,004 Operating Revenue Per Capita $2,091 $2,173 38,252,292 40,171,865 1,739,500 4,160,396 Pay-as-you-go 436,463 796,243 Fund Balances 7,836,500 4,209,300 $386,438,715 $400,830,808 $2,390 $2,474 OPERATING REVENUE General Governmental Local Taxes Licenses and Permits Performing Arts Bond/Note Proceeds CIP Other Funding TOTAL REVENUE Total Revenue Per Capita 7676 City of Tempe 2011-12 Annual Budget Total Revenue by Source Comparative Revenue by Source FY 2010-11 Budget to FY 2011-12 Budget 45% 40% 37% 40% 35% 30% 24% 25% 24% 20% 20% 18% 12% 15% 7% 10% 12% 6% 5% 0% Local Taxes User Charges Intergovernmental All Other CIP Fiscal Year Ending June 30 Where the Money Comes From Revenue Source Local Taxes Local Sales Taxes Transit Tax Other Local Taxes Performing Arts User Charges Water/Wastewater Solid Waste Community Services Building/Trades & Planning/Zoning Intergovernmental State Shared Revenue HURF/LTAF CDBG/Section 8 Housing Transit State & Federal All Other Interest Revenue Miscellaneous Revenue Fines and Forfeitures Licenses and Permits Bonds/Note Proceeds CIP - Outside Revenue Other - Fund Balance Total Revenue FY 2009-10 Actual FY 2010-11 Budget FY 2010-11 Revised $67,369,738 27,891,084 42,546,426 5,749,649 $69,880,072 25,012,100 42,110,560 5,175,519 $77,900,797 28,136,095 42,032,698 5,831,000 $80,951,331 29,124,332 42,529,826 6,082,100 60,325,660 15,107,854 7,784,093 4,633,358 64,721,072 15,187,163 9,013,199 4,618,357 64,865,799 15,044,809 7,619,468 3,742,803 69,992,604 15,076,809 7,927,956 4,556,069 39,133,804 10,023,207 11,782,994 15,063,295 35,038,037 9,495,879 16,417,949 15,243,919 33,788,785 9,157,112 16,804,371 13,859,977 31,231,933 8,142,645 17,001,929 14,357,991 3,269,143 10,581,271 7,108,700 1,537,685 71,483,357 17,318,630 7,508,581 2,524,504 11,845,839 10,322,095 1,567,696 38,252,292 2,175,963 7,836,500 1,850,524 11,928,855 7,554,318 1,568,250 38,252,292 2,175,963 7,836,500 1,983,386 12,538,636 8,427,007 1,568,450 40,171,865 4,956,639 4,209,300 $426,218,529 $386,438,715 $389,950,416 $400,830,808 77 FY 2011-12 Budget City of Tempe 2011-12 Annual Budget Components of Total Revenue FY 2011-12 Total Revenue $400,830,808 Operating Budget Capital Budget $351,493,004 $49,337,804 General Governmental Special Revenue Enterprise Bond/Note Proceeds Outside Revenue/PAG Other – Fund Balances $182,363,778 $80,472,385 $88,656,841 $40,171,865 $4,956,639 $4,209,300 Local Taxes/ Licenses & Permits $125,049,607 Transit Water/Wastewater Water/Wastewater Bonds Federal Grants $47,324,887 $29,160,000 $71,017,104 $2,664,984 ________________________ _______________________ ________________________ _______________________ ________________________ Intergovernmental Highway User Revenue Solid Waste General Purpose Bonds Development Fees $31,231,933 ________________________ Charges for Services $10,257,097 $9,369,469 _______________________ CDBG/ Section 8 Housing $17,001,929 ________________________ Fines and Forfeitures Performing Arts Tax Cemetery $6,776,100 _______________________ $1,000,000 ________________________ RICO $495,412 $2,294,828 _______________________ $8,427,007 ________________________ Golf ________________________ ________________________ $11,011,865 $15,231,809 ________________________ ________________________ Pay As You Go $796,243 $113,100 ________________________ ________________________ Miscellaneous General Governmental is the largest operating revenue category. It supports basic functions of the City, which include Police, Fire, Community Services, and Community Development. $7,398,134 ________________________ 7878 City of Tempe 2011-12 Annual Budget Comparative Operating Revenue by Major Source and Fund Revenue Source General Fund FY 2009-10 Actual FY 2010-11 Budget FY 2010-11 Revised FY 2011-12 Budget Local Taxes City Sales Tax $67,369,738 $69,880,072 $77,900,797 $80,951,331 Primary Property Tax 11,560,902 12,238,972 12,238,972 12,751,029 Transient Lodging Tax 2,512,518 3,969,916 4,100,214 4,131,600 3,559,614 85,002,772 3,727,000 89,815,960 3,766,415 98,006,398 3,547,000 101,380,960 12,167,009 12,732,069 12,263,212 12,235,077 State Income Tax 21,406,004 16,139,804 16,137,402 13,649,749 Vehicle License Tax Total Intergovernmental 5,560,791 39,133,804 6,166,164 35,038,037 5,388,171 33,788,785 5,347,107 31,231,933 Building & Trades/Planning & Zoning 4,633,358 4,618,357 3,742,803 4,556,069 Cultural and Recreational Registration Fees Franchise Fees Total Local Taxes Intergovernmental Revenue State Sales Tax 4,306,089 5,317,493 4,266,009 4,427,826 Recreation Admission Charges 389,852 375,171 419,174 425,174 Library Fines and Fees 173,264 404,000 259,800 259,800 573,459 5,442,664 485,420 6,582,084 574,208 5,519,191 588,228 5,701,028 Traffic Fines 1,803,383 2,918,181 1,670,053 2,160,679 Criminal Fines 1,255,201 1,231,552 1,192,915 1,129,445 Other Cultural and Recreation Fees Total Cultural and Recreational Fines, Fees and Forfeitures Parking Fines 200,282 314,780 229,173 248,979 3,849,834 5,857,582 4,462,177 4,887,904 Total Fines, Fees and Forfeitures 7,108,700 10,322,095 7,554,318 8,427,007 Business/Non-Business Licenses 1,537,685 1,567,696 1,568,250 1,568,450 SRP Payment in Lieu of Taxes 1,481,741 1,376,393 1,502,400 1,502,400 Interest Income 1,900,195 1,595,000 998,201 1,159,000 Other Miscellaneous Revenue and Loan Other Fines, Fees and Forfeitures Other Revenue Sources 2,932,521 5,103,263 4,566,341 4,554,275 Total Other Revenue 6,314,457 8,074,656 7,066,942 7,215,675 Total General Fund $149,173,440 $156,018,885 $157,246,687 $160,081,122 $24,913,392 $22,174,672 $21,927,097 $22,100,197 Debt Service Fund Secondary Property Tax Other Miscellaneous Revenue 848,438 Intergovernmental Total Debt Service Fund $25,761,830 79 16,520 103,436 182,459 $22,191,192 $22,030,533 $22,282,656 City of Tempe 2011-12 Annual Budget Revenue Source FY 2009-10 Actual FY 2010-11 Budget FY 2010-11 Revised FY 2011-12 Budget Transit Fund Transit Tax $27,891,084 $25,012,100 $28,136,095 $29,124,332 Lottery Transfer In 184,119 ASU-Flash Transit 720,760 773,045 853,809 905,840 Interest Income 404,197 212,386 212,386 212,386 14,342,535 14,470,874 13,006,168 13,452,151 2,865,496 3,369,506 3,492,097 3,630,178 $46,408,191 $43,837,911 $45,700,555 $47,324,887 9,422,203 9,495,879 9,157,112 8,142,645 Maintenance of Effort 761,451 785,824 785,824 785,824 State Lottery Proceeds 416,885 Other Revenue 331,947 75,000 406,000 441,000 $10,932,486 $10,356,703 $10,348,936 $9,369,469 5,749,649 5,175,519 5,831,000 6,082,100 Interest Income 108,161 45,349 46,937 57,000 Fees and Admission and Miscellaneous 656,310 575,500 622,950 637,000 6,514,120 $5,796,368 $6,500,887 $6,776,100 $11,782,994 $16,417,949 $16,804,371 $17,001,929 Residential Service 8,306,913 8,473,903 8,342,352 8,342,352 Commercial Service 5,071,175 5,161,680 5,058,446 5,058,446 Roll-Off Service 1,310,494 1,221,580 1,254,011 1,264,011 419,272 330,000 390,000 412,000 25,000 55,000 Federal and State Funding Miscellaneous Revenue Total Transit Fund Transportation Funds Highway User Revenue Tax Total Transportation Funds Performing Arts Performing Arts Tax Total Performing Arts Total CDBG/Section 8 Housing Funds Solid Waste Fund Recycling Interest Income Miscellaneous Revenue Total Solid Waste Fund 66,507 217,320 2,000 4,892 100,000 $15,391,681 $15,189,163 $15,074,701 $15,231,809 8080 City of Tempe 2011-12 Annual Budget Revenue Source Water/Wastewater Fund FY 2009-10 Actual FY 2010-11 Budget FY 2010-11 Revised FY 2011-12 Budget Charges for Service-Water Water Consumption $22,862,725 $24,500,000 $24,825,060 $28,834,088 9,055,176 9,120,000 9,412,159 10,219,644 Irrigation 304,619 304,572 304,572 304,572 Other Water Charges 799,038 586,500 731,066 731,500 33,021,558 34,511,072 35,272,857 40,089,804 Sewer Usage 21,853,915 24,200,000 22,765,508 22,895,000 Sewer Service 4,922,099 6,000,000 6,811,888 6,994,800 528,088 10,000 15,546 13,000 27,304,102 30,210,000 29,592,942 29,902,800 Interest Income 788,962 671,769 568,000 500,000 Land and Facility Rental 520,000 520,000 520,000 520,000 Loan Repayment from General Fund 501,880 542,833 542,833 Other Miscellaneous Revenue 114,486 54,500 5,032 4,500 $62,250,988 $66,510,174 $66,501,664 $71,017,104 1,369,815 1,457,000 1,139,943 1,476,828 204,266 254,195 220,284 Water Service Total Charges for Service-Water Charges for Service-Wastewater Other Wastewater Charges Total Charges for Service-Wastewater Total Water/Wastewater Fund Golf Fund Greens Fees Pro Shop and Restaurant Revenue Interest Income 1,121 Other Revenue Sources 4,025 Total Golf Fund 818,000 1,579,227 $1,711,195 $1,360,227 $2,294,828 Cemetery Fund Lot & Burial Sales 113,004 144,420 117,100 113,100 Total Cemetery Fund $113,004 $144,420 $117,100 $113,100 $329,907,961 $338,173,960 $341,685,661 $351,493,004 Total Revenue - All Funds 81 City of Tempe 2011-12 Annual Budget General Governmental Revenue: Ten Year Historical Trends City Sales Tax Restrictions Current General Fund rate of 1.4% can be increased only by vote of electorate. Certain proceeds are pledged as security for bond payments due under various bond security agreements. Revenue from a voterapproved 0.5% portion is dedicated to transit purposes and 0.1% dedicated funding for Performing Arts. Fiscal Year Amount 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 est. 2011-12 est. $58,446,759 57,796,826 61,267,731 66,667,254 74,945,676 84,457,854 81,257,842 72,420,832 67,369,737 77,900,797 80,951,331 Percent Change (9.0) (1.0) 6.0 9.0 12.0 13.0 (4.0) (11.0) (7.0) 16.0 4.0 Assumptions The City sales tax, known formally as the transaction privilege tax, is derived from a 2.0% tax on a variety of financial transactions, including retail sales, rental payments, contracting sales, utility, telecommunications payments, and hotel/restaurant sales. In FY 1993-94, voters approved a 0.2% increase from 1.0% to 1.2%. In May of 2010 voters approved a temporary 0.2% increase in the sales tax. Sales of food for home consumption and contracting sales are exempted from the increase. The 0.2% temporary tax expires June 30, 2014. A strong recovery in the period immediately following the 2001-02 recession accounts for the double-digit growth in FY 200506 through FY 2006-07. Recent years have seen an unprecedented steep decline in revenues due largely to the effects of the regional housing market downturn and the national and regional recessions. The FY 2011-12 budgeted collection amount includes the voter approved tax rate increase and assumes a gradual economic recovery. Major Influences: Taxable Sales, Population, and Consumer Price Index City Sales Tax $ Millions 90.0 80.0 70.0 60.0 50.0 40.0 30.0 58.4 57.8 61.3 66.7 84.5 74.9 20.0 10.0 0.0 Fiscal Year 8282 81.3 72.4 67.4 77.9 81.0 City of Tempe 2011-12 Annual Budget Transient Lodging Tax Restrictions Fiscal Year Amount Percent Change Rate of 5% can be increased only by electorate. Of the total amount collected, a portion is pledged to the Tempe Convention and Visitors Bureau (TCVB). Excess unrestricted proceeds are deposited into the General Fund. 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 est. 2011-12 est. $1,544,024 2,034,972 2,413,099 2,784,826 3,201,772 3,439,069 3,534,640 2,811,364 2,512,518 4,100,214 4,131,600 (13.6) 31.8 18.6 15.4 15.0 7.4 2.8 (20.5) (10.6) 63.2 0.8 The tax originated in June of 1988 at 2% with half (or 1%) dedicated to TCVB. In FY 2001 voters approved an additional 1% for TCVB, increasing the tax from 2% to 3%. On May 2010 voters approved an increase in the tax rate from 3% to 5%. Beginning with FY 2010-11 the amount dedicated to TCVB is $2,000,000 with annual inflationary adjustments thereafter. Assumptions The tax is imposed on businesses who charge for lodging for any period of not more than 30 consecutive days. The steep drop in collections in FY 2009 through FY 2010 is due to the impact of the national and state recessions on local tourism. The large increase in revenue projected for FY 2011 is primarily reflective of a voter approved 2% increase rather than an increase in lodging structures or occupants. The FY 2011-12 budgeted amount includes the voter approved tax rate increase and assumes a gradual economic recovery Major Influences: Economy, Competition from Hotels Located in Neighboring Cities, and Consumer Price Index Transient Lodging Tax $ Millions 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 58.5%* 64.5%* 65.3%* 68.7%* 68.6%* 70.5%* 69.1%* 69.1%* 69.1%* 69.1%* 69.1%* 5,367 5,367 5,367 5,369 5,179 5,179 5,179 4,504 4,632 5,179 5,179 0.0 Fiscal Year Percent Occupied/Number of Rooms 83 City of Tempe 2011-12 Annual Budget City Property Tax Restrictions Primary Levy: Limited to annual increase of 2% plus amount generated by new construction. No restriction on usage. Secondary Levy: Restricted for debt service purposes only. No limit on rate. Fiscal Year 2001-02 2002-03 2003-04 Tax Rate/$100 Assessed Value 1.35 1.35 1.35 Primary Collections $7,169,353 7,563,180 8,313,398 Secondary Collections $11,695,227 12,675,695 13,059,814 Total Amount $18,864,580 20,238,875 21,373,212 Percent Change 6.8 7.3 5.6 2004-05 1.35 8,878,734 14,631,500 23,510,234 10.0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 est.* 2011-12 est.* 1.40 1.40 1.40 1.40 1.40 1.40 1.79 9,287,601 9,076,938 10,057,686 10,836,677 11,560,902 12,238,972 12,751,029 16,430,588 16,465,111 20,781,970 23,415,585 24,913,392 22,174,672 22,100,197 25,718,190 27,515,948 30,839,656 34,252,262 36,474,294 34,413,644 34,851,226 9.4 (0.7) 12.1 11.1 6.5 (5.6) 1.3 Assumptions The City’s property tax is based on the assessed value of the property as determined by the Maricopa County Assessor, whose office both bills and collects all property taxes. Historical changes in total revenue collected have been the result of state policy affecting assessed valuations and growth, new development, and appreciation of existing property. The combined primary and secondary property tax rate for FY 2011-12 will total $1.79 per $100 assessed valuation, consisting of $0.66 per $100 of the primary assessed valuation for operating and maintenance costs and $1.13 per $100 of secondary assessed valuation to fund principal and interest payments on bonded indebtedness. The primary levy goes to the General Fund and the secondary levy goes to the Debt Service Fund. Major Influences: Development, Assessor Appraisal Methodology, State Policy, Population Growth, and City Policy Regarding Property Tax Rates City Property Tax $ Millions 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 Secondary Tax Levy Primary Tax Levy 0.0 Fiscal Year Amounts reflect estimated receipts 8484 City of Tempe 2011-12 Annual Budget Salt River Project In-Lieu Tax Restrictions Fiscal Year No restrictions on usage. Amount Percent Change 2001-02 $1,041,291 7.7 2002-03 1,110,403 6.6 2003-04 1,093,665 (1.4) 2004-05 1,522,519 39.1 2005-06 1,431,678 (6.0) 2006-07 1,458,614 1.9 2007-08 1,471,815 0.9 2008-09 2009-10 1,373,964 1,481,741 (6.6) 7.8 2010-11 est. 1,502,400 1.4 2011-12 est. 1,502,400 0.0 Assumptions As a government-operated public utility, the Salt River Project pays no franchise or property taxes. In lieu of these taxes, an amount is received from the utility based on a computation involving property location and plant investment. Proceeds from this revenue source are received through Maricopa County in June and December. In past years, monies from this source were deposited into both the General Fund and Debt Service Fund in a manner similar to the property tax. Beginning in FY 2009-10, all proceeds are deposited into the General Fund. Major Influences: Real Property Value and State Statute (assessment ratio) Salt River Project In-Lieu Tax $ Millions 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 25.0%* 25.0%* 25.0%* 25.0%* 25.0%* 25.0%* 25.0%* 25.0%* 25.0%* 25.0%* 25.0%* 1.0 1.1 1.1 1.5 1.4 1.5 1.4 1.3 1.4 1.4 1.4% 0.0 Fiscal Year Percents represent the assessment ratio on SRP real property/in-lieu tax revenue 85 City of Tempe 2011-12 Annual Budget State Shared Sales Tax Restrictions Fiscal Year No restrictions on usage. Must be expended for a public purpose. Amount Percent Change 2001-02 $12,148,438 (12.9) 2002-03 12,405,713 2.1 2003-04 13,345,152 7.6 2004-05 14,695,069 10.1 2005-06 16,810,763 14.4 2006-07 15,758,491 (6.3) 2007-08 15,237,310 (3.3) 2008-09 13,191,255 (13.4) 2009-10 12,167,009 (7.8) 2010-11 est. 12,263,212 0.8 2011-12 est. 12,235,077 (0.2) Assumptions The state assesses a 6.6% sales tax, of which 0.6% is designated for educational purposes and 1.0% is excluded from revenue sharing as approved at a May 2010 General Election. Cities and towns share in 25% of the remaining collections on the basis of their population in relation to total state population. Prior to 2000, Tempe accounted for 4.5% of the state’s population, but with the 2000 Census Tempe’s share fell to 3.9%. This reduction explains much of the decline in Tempe’s state shared sales tax revenue in FY 2001-02. The share declined again to 3.4% with the 2005 mid-decade Census, but due to the robust state revenue growth the City did not experience a decrease in the subsequent year. The four year decreased revenue beginning in FY 2006-07 is reflective of the state recession. Based on the results of the 2010 Census, Tempe’s share of revenue is set at 3.2% for the next five fiscal years, beginning in FY 2011-12. The mixed impacts of improving state sales taxes and a reduced share of the pool results in a slight decline in revenue budgeted for FY 2011-12. Major Influences: Taxable Sales, Population (relative to state) and State Law State Shared Sales Tax $ Millions 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 311.7* 3.9% 316.4* 3.9% 340.5* 3.9% 376.2* 3.9% 439.1* 3.9% 461.0* 3.4% 447.0* 3.4% 0.0 Fiscal Year Total state shared sales tax revenue pool/ City’s share of pool 8686 385.7* 3.4% 352.2* 3.4% 360.7* 3.4% 380.0* 3.2% City of Tempe 2011-12 Annual Budget State Shared Vehicle License Tax Restrictions Fiscal Year No restrictions on usage. Must be expended for a public purpose. 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 est. 2011-12 est. Amount Percent Change $5,233,512 6,247,543 6,427,396 6,791,043 7,527,675 (7.1) 19.4 2.9 5.6 10.8 6,870,739 6,655,516 6,024,595 5,560,791 5,388,171 5,347,107 (8.7) (3.1) (9.5) (7.7) (3.1) (0.8) Assumptions Cities and towns receive 25% of the net revenue collected for vehicle licensing within their county. The respective shares are determined by the Cities’ share of population in relation to total incorporated population of the county. The remainder of the revenue collected is shared by schools, counties, and the state. Prior to 2000, Tempe accounted for 4.5% of the state’s population. Based on the 2010 Census, this figure declined to 3.2%. The six year decreased revenue from FY 2006-07 through FY 2010-11 is reflective of the state recession. For FY 2011-12, the decline is due to the reduced revenue sharing percentage. Major Influences: Population (relative to State), State Policy and Auto Sales State Shared Vehicle License Tax $ Millions 8.0 7.0 6.0 5.0 4.0 3.0 5.2 6.2 6.4 6.8 7.5 6.9 2.0 1.0 0.0 Fiscal Year 87 6.7 6.0 5.6 5.4 5.3 City of Tempe 2011-12 Annual Budget State Shared Income Tax Restrictions Fiscal Year No restrictions on usage. Must be expended for a public purpose. Amount Percent Change 2001-02 $16,544,791 (7.5) 2002-03 16,882,535 2.0 2003-04 14,303,004 (15.3) 2004-05 14,582,117 2.0 2005-06 16,607,943 13.9 2006-07 18,823,759 13.3 2007-08 23,332,475 24.0 2008-09 24,832,128 6.4 2009-10 21,406,004 (13.8) 2010-11 est. 16,137,402 (24.6) 2011-12 est. 13,649,749 (15.4) Assumptions The right to levy income taxes in Arizona is reserved for the state in statute. Amounts distributed are based on actual income tax collections from two years prior to the fiscal year in which the City receives the funds. Under current law, Arizona cities and towns receive 15.0% of the state’s income tax collections from two years prior. The state shared revenue pool is distributed among cities and towns based on the relation of their population to the total population of all incorporated cities and towns in the state. Prior to the 2005 Special Census, Tempe accounted for 3.9% of the state’s urban population, but this share fell to 3.4% for FY 2006-07. Based on the 2010 Census, the share will be 3.2% for FY 2011-12 to FY 2015-16. Due to a two year lag between the calculation and distribution of revenue sharing amounts, the estimated revenue for FY 2011-12 exhibits a steep decline. This is because the amount is based on the relatively slower economic activity during FY 2009-10 and due to the lower sharing percentage. Major Influences: Personal Income, Corporate Net Profits, Population (relative to State) and State Policy State Shared Income Tax $ Millions 30.0 25.0 20.0 15.0 10.0 5.0 15.8%* 421.9 15.8%* 15.0%* 15.0%* 15.0%* 15.0%* 15.0%* 15.0%* 15.0%* 15.0%* 430.6 551.0 727.5 365.0 373.1 425.2 685.3 628.6 473.3 15.0%* 424.4 0.0 Fiscal Year Percent of state income tax collections distributed to cities and towns/Total state shared tax revenue pool ($ in millions) 8888 City of Tempe 2011-12 Annual Budget Charges for Services/Cultural and Recreational Restrictions Fiscal Year No restrictions on usage, but intended to defray costs of recreation and social service programs. Amount Percent Change 2001-02 $4,465,985 4.6 2002-03 4,705,619 5.4 2003-04 5,125,630 8.9 2004-05 5,020,389 (2.1) 2005-06 4,971,934 (1.0) 2006-07 5,296,388 6.5 2007-08 6,158,859 16.3 2008-09 6,246,518 1.4 2009-10 5,442,664 (12.9) 2010-11 est. 5,519,191 1.4 2011-12 est. 5,701,028 3.3 Assumptions Revenue in this category is derived from a wide array of recreational activities (such as softball, swimming, and tennis) and social services programs (such as counseling services and after-school programs). By Council policy, many of these activities and services are partially or fully funded through user charges. Fees are based on a targeted percentage for cost recovery of direct program operating costs, including wages and supply costs but exclude facility costs, administration, and capital outlay. The percentage of recovery of direct program costs is classified by user groups as follows: adult programs, 100% cost recovery; youth programs 100% cost recovery, and senior programs, 50% cost recovery; and all Kiwanis Recreation Center classes/programs, 100% cost recovery. Major Influences: Population, Cost Recovery Policy and New Program Development Charges for Services/Recreation and Social Services $ Millions 7.0 6.0 5.0 4.0 3.0 2.0 4.5 4.7 5.1 5.0 5.3 5.0 1.0 0.0 Fiscal Year 89 6.2 6.2 5.4 5.5 5.7 City of Tempe 2011-12 Annual Budget Charges for Services/Development Related Restrictions Fiscal Year Intended to offset costs related to permitting and planning for residential and commercial development in the City, though there are no restrictions on usage. 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 est. 2011-12 est. Amount Percent Change $2,016,850 (24.9) 2,570,757 2,644,489 3,458,518 5,506,134 5,969,413 6,479,274 5,680,740 4,633,358 3,742,803 4,556,069 27.5 2.9 30.8 59.2 8.4 8.5 (12.3) (18.4) (19.2) 21.7 Assumptions The annual growth rates shown above reflect the extreme cyclical nature of development. Much of the increase in FY 200203 was due to a fee/rate increase. The impact of this increase was moderated in subsequent years in light of slow development activity associated with a landlocked community. This trend reversed itself sharply, as the attractiveness of the Tempe downtown area for development, as well as the construction of Tempe Marketplace shopping center, increased permitting activity. The FY 2008-09 decrease is largely the result of large projects working their way out of the construction queue. Activity for FY 2009-10 and FY 2010-11 dropped further due to a tight credit market and regional oversupply in commercial real estate suppressing the demand for new construction. The FY 2011-12 increase is due primarily to current and projected multifamily residential projects. Major Influences: Population, Tax Laws, Economy and Development Charges for Services/Development Related $ Millions 7.0 6.0 5.0 4.0 3.0 2.0 1.0 1,261* $121.2 1,313* $199.6 1,147* $210.3 1,243* $302.2 1,845* $453.6 1,442* $443.6 0.0 Fiscal Year Number of building permits/Valuation ($ in millions) 9090 1,374* $373.6 1,106* $377.0 976* $182.9 843* $103.9 1,000* $250.0 City of Tempe 2011-12 Annual Budget Fines and Forfeitures Restrictions Fiscal Year No restrictions on usage. Amount 2001-02 Percent Change 1.9 $4,577,091 5,510,476 5,831,134 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 est. 2011-12 est. 20.4 5.8 14.1 9.6 (0.9) 19.4 6.8 (22.7) 6.3 11.6 6,651,935 7,287,717 7,219,328 8,616,319 9,200,997 7,108,900 7,554,318 8,427,007 Assumptions The fines and forfeitures revenue to the City derive from fines related to parking, traffic, criminal, animal control, defensive driving school, adult diversion, domestic violence, and false alarms, plus revenue from public defender reimbursements, forfeitures, and boot fees. The FY 2009-10 decrease was primarily due to drop in Traffic Fines resulting from the maturation of the photo enforcement program. The increase in FY 2010-11 and FY 2011-12 is due to a number of new and revised fines and fees that were adopted as a result of the budget balancing effort. Major Influences: Population, Crime Rate and Internal Policy (Enforcement, Number of Police Officers) Fines and Forfeitures $ Millions 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 4.6 5.5 5.8 6.7 8.6 7.3 7.2 1.0 0.0 Fiscal Year 91 9.2 7.1 7.6 8.4 City of Tempe 2011-12 Annual Budget Special Revenue: Ten Year Historical Trends Transit Tax Restrictions Fiscal Year Represents a portion of the City sales tax dedicated by public vote to transit-related purposes, such as bus acquisition and maintenance, connecting bus routes to neighboring cities, bus stop construction, transit planning, and light rail construction. Amount Percent Change 2001-02 $25,229,927 (7.6) 2002-03 25,140,826 (0.2) 2003-04 26,740,623 6.2 2004-05 28,88,493 7.9 2005-06 32,440,081 12.4 2006-07 34,971,294 7.8 2007-08 32,449,710 (7.2) 2008-09 2009-10 29,850,942 27,891,084 (8.0) (6.6) 2010-11 est. 28,136,095 0.9 2011-12 est. 29,124,332 3.5 Assumptions The Transit Tax represents 1/2 cent of the 2.0% City Sales Tax. The tax for transit was approved by Tempe voters in September 1996 and became effective January 1, 1997. The FY 2011-12 growth rate reflects moderate improvement in the local economy. Major Influences: Taxable Sales, Population and Consumer Price Index Transit Tax $ Millions 40.0 35.0 30.0 25.0 20.0 15.0 10.0 25.2 25.1 26.7 28.8 35.0 32.4 5.0 0.0 Fiscal Year 9292 32.4 29.9 27.9 28.1 29.1 City of Tempe 2011-12 Annual Budget Performing Arts Tax Restrictions Represents a portion of the City sales tax dedicated by public vote for construction and operation of the Performing Arts Center. *Collections over a six month period Fiscal Year Amount 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 $5,006,344 5,010,393 5,279,580 5,768,058 6,480,218 7,007,790 6,820,193 6,158,761 5,749,649 92.0 0.1 5.4 9.3 12.3 8.1 (2.7) (9.7) (6.6) 5,831,000 6,082,100 1.4 4.3 2010-11 est. 2011-12 est. Percent Change Assumptions The Performing Arts Tax represents 1/10 cent of the 2.0% City Sales Tax. This tax was approved in May 2000 and became effective January 2001. The FY 2011-12 estimate reflects moderate improvement in the local economy. Major Influences: Taxable Sales, Population, and Consumer Price Index Performing Arts Tax $ Millions 8.0 7.0 6.0 5.0 4.0 3.0 2.0 5.0 5.0 5.3 5.8 7.0 6.5 1.0 0.0 Fiscal Year 93 6.8 6.2 5.7 5.8 6.1 City of Tempe 2011-12 Annual Budget Highway User Tax Restrictions Fiscal Year Proceeds can be used only for street and highway purposes including right-of-way acquisition, construction, reconstruction, maintenance, and payment of debt service on highway and street bonds. Amount Percent Change 2001-02 2002-03 2003-04 2004-05 2005-06 $9,853,831 10,285,028 10,981,726 12,492,819 11,222,223 (12.1) 4.4 6.8 13.8 (10.2) 2006-07 2007-08 2008-09 2009-10 2010-11 est. 2011-12 est. 11,854,088 11,387,320 9,945,310 9,422,203 9,157,112 8,142,645 5.6 (3.9) (12.7) (5.3) (2.8) (11.1) Assumptions Highway User Revenue Fund (HURF) revenue is comprised primarily of a share of the state-imposed tax on fuel (18 cents per gallon), but also includes a portion of vehicle license taxes and other motor carrier permits and fees. HURF revenues are a major source of funding to the state for highway construction, highway maintenance and improvements, and other highway-related expenditures. More than half of the revenue is used for these state purposes. Of the remaining HURF revenue, 27.5% is distributed to cities and towns. Half of this pool amount is distributed based on each city’s or town’s percentage share of the statewide total population of all incorporated cities and towns. The remaining one-half is divided into county pools based on each county’s share of statewide fuel sales. Within each county, cities and towns receive an allocation based on their percentage share of total incorporated population in the county. The large drop in FY 2011-12 is primarily due to an increase in the state budget allocation of HURF funds for the state Department of Public Safety, which reduces the amount available for other statutory distributions. Major Influences: Population, State Statute, Economy and Gasoline Sales Highway User Tax $ Millions 14.0 12.0 10.0 8.0 6.0 4.0 321.8* 344.5* 363.5* 386.1* 418.1* 409.7* 377.7* 364.1* 2.0 0.0 Fiscal Year Total State Shared Highway User Tax Revenue Pool distributed to Cities/Towns 9494 321.2* 342.9* 276.0* City of Tempe 2011-12 Annual Budget Local Transportation Assistance Fund Restrictions Proceeds can be used only for street and highway projects, for any construction or reconstruction in the public rights-ofway as well as transit programs. Fiscal Year Amount 2001-02 2002-03 2003-04 2004-05 2005-06 $900,415 870,471 845,814 820,811 798,826 (6.0) (3.3) (2.8) (3.0) (2.7) 771,039 761,513 709,867 416,885 0 0 (3.5) (1.2) (6.8) (41.3) (100.0) 0 2006-07 2007-08 2008-09 2009-10 2010-11 est. 2011-12 est. Percent Change Assumptions Revenue is derived from the state lottery game and the multi-state Powerball lottery game. By state statute, the state must distribute at least $20.5 million annually to cities and towns from state lottery revenue, up to a maximum total distribution pool of $23 million. Amounts distributed to cities and towns are based on their percentage share of statewide population as determined and updated annually by the state Department of Economic Security. Revenue derived from Powerball may be received only after the state first collects $31 million from Powerball sales. If this threshold is reached, the state will distribute up to a total of $18 million from Powerball revenue, dividing the pool into amounts based on each county’s share of lottery ticket sales. Amounts from these county pools distributed to cities and towns are based on each city’s or town’s share of incorporated population in the county. The lottery state shared pool is adjusted every year by population determined by the Department of Economic Security. Tempe’s declining share of statewide population accounts for the lottery revenue reduction over the past 10 years. State legislation passed in 2010 diverted current and future distributions of Lottery proceeds to the state General Fund. Major Influences: Population (relative to state) and Lottery Ticket Sales Local Transportation Assistance Fund $ Millions 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.90 0.87 0.85 0.82 0.80 0.77 0.3 0.76 0.71 0.42 0.2 0.1 0.00 0.0 Fiscal Year 95 0.00 City of Tempe 2011-12 Annual Budget Community Development Block Grant/Section 8 Housing Grant Restrictions Community Development Block Grant (CDBG) funds are awarded by the federal government and may be used only for the rehabilitation of owner-occupied housing and the removal of “slum and blight”. Section 8 Housing Grants, also federal funds, may be used only for rent and utility subsidies for low income persons. Community Development Block Grant Amount Percent Change Fiscal Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 est. 2011-12 est. $1,376,648 1,996,684 2,412,298 2,517,226 5,320,983 3,869,328 1,341,332 1,189,291 1,347,768 5,975,695 5,209,395 Section 8 Housing Grant Amount Percent Change (26.9) 45.0 20.8 4.3 111.4 (27.3) (65.3) (11.3) 13.3 343.4 (12.8) $6,061,965 7,227,890 8,359,523 8,562,338 7,840,074 8,508,012 8,722,976 10,041,342 9,674,069 10,164,454 10,334,964 17.5 19.2 15.7 2.4 (8.4) 8.5 2.5 15.1 (3.7) 5.1 1.7 Assumptions Funding levels in both programs are based on a federal formula which reflects local factors such as the percentage of people living in poverty, unemployment, population, age of existing housing, and the need for housing. Major Influences: Federal Policy, Poverty Levels and Population Community Development Block Grant/Section 8 Housing Grant $ Millions 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 2.0 2.4 2.5 8.4 8.6 5.3 3.9 7.8 8.5 1.3 1.2 1.3 10.0 9.7 6.0 5.2 10.2 10.3 1.4 6.1 7.2 0.0 Fiscal Year Section 8 Housing Grant Community Development Block Grant 9696 8.7 City of Tempe 2011-12 Annual Budget Enterprise Revenue: Ten Year Historical Trends Water/Wastewater User Fees Restrictions Fiscal Year Fees can only be used to support the Water/Wastewater enterprise. Amount 2001-02 2002-03 Percent Change (1.2) 3.0 39,716,017 40,903,968 41,081,389 2003-04 2004-05 0.4 (0.9) 40,696,171 44,396,334 2005-06 2006-07 9.1 4.0 46,180,573 49,083,207 2007-08 2008-09 6.3 6.8 52,407,237 60,330,191 2009-10 2010-11 est. 15.1 7.0 64,651,227 69,997,104 2011-12 est. 8.4 Assumptions Water/Wastewater revenue is derived from fees and service charges assessed to residential and commercial customers of the City’s water and wastewater systems. Revenue also includes charges to the City’s residential irrigation customers. Over the past few years, both water and sewer rates have been adjusted to address increased costs resulting from inflation, debt service on capital projects, and environmental regulation compliance. Major Influences: Population, Rate Policy, Water Consumption Patterns and Weather Water/Wastewater User Fees $ Millions 80.0 70.0 60.0 50.0 40.0 30.0 20.0 39.7 40.9 41.1 40.7 44.4 46.2 10.0 0.0 Fiscal Year 97 49.1 52.4 60.3 64.6 70.0 City of Tempe 2011-12 Annual Budget Solid Waste Fees Restrictions Fiscal Year Used to defray costs of providing solid waste collection and disposal service. Amount 2001-02 Percent Change 4.3 9,979,359 10,496,774 2002-03 2003-04 5.2 4.9 11,014,949 12,054,563 2004-05 2005-06 9.4 7.8 12,989,827 13,820,128 2006-07 2007-08 6.4 6.1 14,669,542 15,130,988 2008-09 2009-10 3.1 0.7 15,242,801 15,047,601 2010-11 est. 2011-12 est. (1.4) 0.2 15,076,809 Assumptions The collection and disposal of solid waste constitutes the City’s second largest enterprise operation. Revenue derives from user fees for residential, commercial, roll-off, and uncontained solid waste service. Major Influences: Population, Rate Policy, and Commercial Market/Competition Solid Waste Fees $ Millions 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 10.0 10.5 11.0 12.1 13.0 13.8 2.0 0.0 Fiscal Year 9898 14.7 15.1 15.2 15.0 15.1 City of Tempe 2011-12 Annual Budget Golf Course Fees Restrictions Revenue is used to defray costs of operating the Rolling Hills and Ken McDonald golf courses. Fiscal Year Rolling Hills Amount Percent Change 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 est. 2011-12 est. $767,285 765,776 739,705 720,663 737,699 712,171 694,389 668,736 545,788 414,799 563,293 Ken McDonald Amount Percent Change (6.7) (0.2) (3.4) (2.6) 2.4 (3.5) (2.5) (3.7) (18.4) (24.0) 35.8 $1,006,532 1,083,783 1,061,049 1,025,508 1,012,161 976,892 958,956 971,948 824,027 725,144 913,535 (0.9) 7.7 (2.1) (3.3) (1.3) (3.5) (1.8) 1.4 (15.2) (12.0) 26.0 Assumptions Revenue from greens fees account for nearly 87% of golf course revenue, with the rest coming from lease agreements with the pro shops and restaurant concessionaires. The FY 2011-12 projection assumes both a new rate structure and increased rounds of play resulting from a new golf management contract. Major Influences: Competition from Other Golf Courses, Weather, and City Fee Policy Golf Course Fees $ Millions 2.0 1.8 1.6 1.4 1.2 1.0 1.1 1.1 1.0 1.0 1.0 1.0 1.0 1.0 0.9 0.8 0.8 0.7 0.6 0.4 0.8 0.8 0.7 0.7 0.7 0.7 0.2 0.0 Fiscal Year Rolling Hills Ken McDonald 99 0.7 0.7 0.5 0.4 0.6 City of Tempe 2011-12 Annual Budget This page intentionally left blank. City of Tempe 2011-12 Annual Budget Performance Budget Contents Performance Budget Summary .............................................................................................................................................. 102 Per Capita Performance ......................................................................................................................................................... 103 Performance Benchmarking ................................................................................................................................................... 104 City Organizational Chart ....................................................................................................................................................... 105 Mayor and Council ................................................................................................................................................................. 106 City Manager .......................................................................................................................................................................... 108 City Attorney........................................................................................................................................................................... 110 City Clerk................................................................................................................................................................................ 112 City Court ............................................................................................................................................................................... 114 Community Development ....................................................................................................................................................... 116 Administration/Economic Development .............................................................................................................................. 118 Building Safety.................................................................................................................................................................... 119 Planning ............................................................................................................................................................................. 120 Housing .............................................................................................................................................................................. 122 Community Relations Office ................................................................................................................................................... 124 Administration/Mayor and Council Staff .............................................................................................................................. 125 Neighborhood Services ...................................................................................................................................................... 126 Communication and Media Relations ................................................................................................................................. 127 Community Services .............................................................................................................................................................. 128 Administration ..................................................................................................................................................................... 129 Arts and Library .................................................................................................................................................................. 130 Recreation Centers and Programs ..................................................................................................................................... 132 Social Services ................................................................................................................................................................... 133 Diversity Office ....................................................................................................................................................................... 136 Finance and Technology ........................................................................................................................................................ 138 Administration ..................................................................................................................................................................... 139 Finance ............................................................................................................................................................................... 140 Budget / Tax and License ................................................................................................................................................... 142 Information Technology ...................................................................................................................................................... 144 Fire ......................................................................................................................................................................................... 146 Administration/Fire Prevention............................................................................................................................................ 147 Emergency/Medical Services ............................................................................................................................................. 148 Training/Professional Development .................................................................................................................................... 149 Homeland Security/Special Operations .............................................................................................................................. 150 Support Services/Personnel Safety .................................................................................................................................... 151 Human Resources.................................................................................................................................................................. 152 Tempe Learning Center Office ............................................................................................................................................... 154 Internal Audit Office ................................................................................................................................................................ 156 Police ..................................................................................................................................................................................... 158 Office of the Chief ............................................................................................................................................................... 159 Operations .......................................................................................................................................................................... 161 Support Services ................................................................................................................................................................ 162 Organizational Services ...................................................................................................................................................... 163 Public Works .......................................................................................................................................................................... 164 Administration ..................................................................................................................................................................... 166 Engineering ........................................................................................................................................................................ 167 Field Operations ................................................................................................................................................................. 168 Transportation .................................................................................................................................................................... 171 Water Utilities ..................................................................................................................................................................... 174 101 City of Tempe 2011-12 Annual Budget Performance Budget Summary As expected from a service oriented organization, personal services or salaries, wages, and benefits comprise 54% or $155.8 million, the largest share of budgeted departmental expenditures. Total Department Mayor and Council Personal Supplies/Services/ Capital Internal FY 2011-12 Services Contributions Outlay Services Budget $374,539 $9,931 ($61,849) $322,621 City Manager 538,565 1,650 (258,770) 281,445 City Attorney 2,796,732 75,639 31,744 2,904,115 City Clerk 363,402 524,727 29,654 917,783 City Court 2,691,456 666,334 429,990 3,787,780 Community Development 7,516,284 16,900,473 3,016,344 27,439,401 Community Relations Office 1,957,616 582,624 212,745 2,752,985 13,929,105 3,378,787 2,982,312 20,290,204 340,818 78,374 30,560 449,752 Finance and Technology 12,148,183 11,445,672 85,500 (17,797,432) 5,881,923 Fire 22,488,233 2,454,858 93,400 1,317,783 26,354,274 2,127,830 270,668 (357,320) 2,041,178 380,471 5,540 19,491 405,502 Police 50,674,330 5,480,110 8,863,845 65,018,285 Public Works 36,888,487 84,807,904 4,701,933 129,915,472 600,182 70,563 (132,568) 538,177 $155,816,233 $126,753,854 $3,028,462 $289,300,897 Community Services Diversity Office Human Resources Internal Audit Office Tempe Learning Center Total Departmental Debt Service Non-Departmental 3,517,148 $3,702,348 66,427,628 936,256 Contingencies Total Operating Budget 6,300 66,427,628 4,709,884 882,784 1,000,000 $936,256 $72,137,512 1,000,000 $0 Capital Improvements Total Financial Program $156,752,489 $198,891,366 102 6,528,924 $3,702,348 $882,784 $73,956,552 $49,337,804 $49,337,804 $53,249,050 $412,595,253 City of Tempe 2011-12 Annual Budget Per Capita Performance The citywide budget for FY 2011-12 totals $412.6 million. This represents a per capita decline of 1.9% compared to the FY 2010-11 citywide budget. The City continues to prioritize the general areas of Public Works and Public Safety accounting for over 78% of the total departmental budgets. Department Mayor and Council FY 2009-10 FY 2010-11 FY 2010-11 FY 2011-12 Actual Budget Revised Budget $2.39 $1.97 $1.87 $1.99 City Manager 1.99 1.69 1.55 1.74 City Attorney 21.78 17.99 17.36 17.92 City Clerk 4.84 4.60 2.58 5.66 City Court 26.16 22.30 21.95 23.38 143.45 159.95 136.73 169.35 22.26 18.05 17.37 16.99 144.85 125.77 117.10 125.23 3.22 2.73 2.71 2.78 36.89 33.81 35.06 36.30 164.85 157.51 155.61 162.65 Human Resources 16.86 15.62 17.68 12.60 Internal Audit Office 3.18 2.57 2.27 2.50 Police 443.36 410.18 396.63 401.28 Public Works 834.84 848.46 779.18 801.81 0.00 0.00 2.93 3.32 $1,870.93 $1,823.20 $1,708.58 $1,785.50 368.65 431.63 410.88 409.98 49.05 35.77 40.63 40.30 0.00 6.18 0.00 6.17 $2,288.63 $2,296.78 $2,160.10 $2,241.94 $596.68 $298.45 $298.45 $304.50 Community Development Community Relations Office Community Services Diversity Office Finance and Technology Fire Tempe Learning Center Total Departmental Per Capita Debt Service Non-Departmental Contingencies Total Operating Per Capita Capital Improvements 103 City of Tempe 2011-12 Annual Budget Performance Benchmarking In the following Performance Budget Section, the reader will note a number of performance measures, or benchmarks related to each department's statement of its goals and objectives. These benchmarks are part of a benchmarking program throughout Tempe city government. Benchmark measures found in this section reflect a sampling of the more critical measures of department performance and service delivery. The City has tracked performance indicators for many years as a means of identifying service trends and communicating results to the public. The City made a commitment to develop a benchmarking program modeled after other successful private and public sector efforts. Taking advantage of much work already done on benchmarking nationally, we utilized consensus benchmarks established by several national programs addressing benchmarking, including the International City/County Management Association (ICMA), the Governmental Accounting Standards Board (GASB) Services Efforts and Accomplishments (SEA) program and the Innovation Group. Tempe’s benchmarking project began in 1984 with its participation in an experimental program coordinated by the Innovation Group, a nonprofit organization serving local government. Data for Innovation Group suggested benchmarks were gathered for a “test” group of City departments for possible comparisons with other local governments in the Innovation Group benchmark database. In addition, the City formally participated in ICMA’s Comparative Performance Measurement Program. The City continues to refine the benchmarks tracked to include benchmarks developed by national professional organizations, as well as those developed by individual departments. Efforts have focused on establishing a database of historical information on a wide array of benchmarks for most City departments. As a result of discussions with the City's management team and input from departments, we identified the most important 25-30 comparative benchmarks which are italicized and highlighted in blue in associated Departments’ Performance Budget sections. Concurrent with these efforts, a comparative benchmarking program was established with peer cities. The goal was to develop and maintain partnerships with cities having comparable demographic and financial characteristics (i.e., population and operating budget size). Further, our goal was to gather data from the benchmark cities to evaluate Tempe’s performance across critical operational areas. In 2007, a special effort and annual commitment was initiated to enhance the value of performance measurement. To support a renewed emphasis on tracking service outcomes, a consultant was retained to design and administer a resident satisfaction survey. This survey allows management to gauge outcomes by identifying resident preferences and satisfaction with city services. The survey also provides an opportunity to benchmark our performance with that of regional and national peers. The results of this survey are reflected in the Performance Budget section of this book. The survey questions were designed to assess the respondents’ ratings regarding their level of satisfaction for each particular service and their rating of relative importance. Improvements will be emphasized in those areas where levels of satisfaction were relatively low and the perceived importance of the service were relatively high. Also, to better understand how well services were delivered, home addresses of respondents were geocoded onto a map. These elements provided additional insight to enable departments to allocate limited resources to those areas residents deemed important. Most recently, efforts have been directed at the development of a comprehensive performance management system that focuses on execution and gaining results. Critical goals and performance are measured, tracked, and align with departmental priorities that close a performance gap to create opportunities. This renewed focus on outcomes and gaining results is indicative of the City’s long-term commitment to benchmarking and continuous improvement of our service delivery at the lowest possible cost to residents. 104 City of Tempe 2011-12 Annual Budget City Organizational Chart Residents of Tempe Mayor and City Council City Clerk Brigitta Kuiper brigitta_kuiper@tempe.gov City Attorney City Manager andrew_ching@tempe.gov charlie_meyer@tempe.gov Andrew Ching Charlie Meyer Police City Court MaryAnne Majestic m_majestic@tempe.gov Assistant City Manager Chief of Police Tom Ryff Jeff Kulaga Jeff_Kulaga@tempe.gov tom_ryff@tempe.gov Community Relations Office Fire Fire Chief Mark Simmons mark_simmons@tempe.gov Community Relations Manager Shelley Hearn Finance and Technology Diversity Office ken_jones@tempe.gov rosa_inchausti@tempe.gov Community Development Internal Audit Office chris_anaradian@tempe.gov tom_duensing@tempe.gov shelley_hearn@tempe.gov Finance and Technology Director Ken Jones Diversity Manager Rosa Inchausti Community Development Director Chris Anaradian Public Works City Auditor Tom Duensing Tempe Learning Center Public Works Director Don Bessler Organizational Dev Administrator Gretchen Maynard gretchen_maynard@tempe.gov don_bessler@tempe.gov Community Services Community Services Director Kathy Berzins kathy_berzins@tempe.gov Human Resources Human Resources Director Renie Broderick renie_broderick@tempe.gov 105 City of Tempe 2011-12 Annual Budget Mayor and Council Mayor and Council Purpose: To represent residents of the City of Tempe, formulate legislation, and establish City policy. Description: The Mayor and six City Council members are the elected representatives of the residents of Tempe. They are charged with the formulation of public policy to meet community needs. The City Council is responsible for appointing the City Clerk, City Court, City Manager and City Attorney, as well as Board and Commission members. FY 2011-12 Budget Highlights: The approved amount includes the following change: reduction of $2,000 in funding for miscellaneous supplies Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita Authorized Personnel Mayor and Council Total 2009-10 Actual 440,234 11,669 (66,035) $385,868 $2.39 2010-11 Budget $371,904 11,981 (65,972) $317,913 $1.97 2009-10 Actual Full Perm Temp Time FTE FTE 7 7 106 2010-11 Revised 360,135 10,435 (67,609) $302,961 $1.87 2010-11 Revised Full Perm Temp Time FTE FTE 7 7 2011-12 Budget 374,539 9,931 (61,849) $322,621 $1.99 2011-12 Budget Full Perm Temp Time FTE FTE 7 7 City of Tempe 2011-12 Annual Budget Related Strategic Issue: All Council Committees Goal: To enact policy decisions that maximize overall resident satisfaction with life in the City Objective: To align community investment priorities with the needs of residents by emphasizing improvements in service categories that are of the most benefit to residents, and by targeting limited resources toward services of the highest importance to residents and to those services where residents are least satisfied Measures* Resident satisfaction with the appearance of the City 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget 85% 85% 83% 83% Resident satisfaction with the image of the City 83% 85% 84% 84% Resident satisfaction with how well the City is planning growth 60% 61% 58% 58% Resident satisfaction with quality of life in the City 85% 86% 84% 84% Resident satisfaction with the feeling of safety in the City 71% 72% 69% 69% Resident satisfaction with the leadership of elected officials 63% 65% 61% 61% Resident satisfaction with the direction the City is heading 65% 66% 66% 66% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey Related Strategic Issue: All Council Committees Goal: To respond to all constituent forms of communication in a timely manner Objective: 1) To respond to 90% of phone calls within 24 hours of receipt; 2) respond to 90% of email inquiries within 72 hours of receipt; 3) respond to 90% of mail/letter inquiries within five working days; 4) respond to 90% of all Council emails within 24 hours of receipt; and 5) respond to 90% of all Council voicemails within 24 hours of receipt 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget 90% 95% 90% 90% Email inquiries responded to within 72 hours 90% 95% 90% 90% Mail/letter inquiries responded to within five working days 93% 97% 90% 90% Council Communicator emails responded to within 24 hours of receipt 93% 98% 90% 90% Council Communicator voicemails responded to within 24 hours of receipt 93% 98% 90% 90% Measures Calls responded to within 24 hours 107 City of Tempe 2011-12 Annual Budget City Manager City Manager Purpose: To professionally implement all City Council policy decisions, efficiently direct the City's operations, and create an organizational culture that results in the delivery of excellent municipal services to residents of Tempe. Description: Working with the City’s governing body, the community, and City staff, the City Manager’s Office is to professionally implement all City Council policy decisions and efficiently direct the City’s operations and activities in accordance with sound management principles. These efforts will create an organizational culture which results in the delivery of excellent municipal services to the residents of Tempe. FY 2011-12 Budget Highlights: The approved amount includes the following change: reduction of $5,400 in funding for contracted services budget 2009-10 Actual $590,258 748 (273,273) $321,832 $1.99 Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita Authorized Personnel City Manager Total 2010-11 Budget $545,281 1,650 (273,160) $273,771 $1.69 2009-10 Actual Full Perm Temp Time FTE FTE 3 3 2010-11 Revised $523,274 1,650 (273,852) $251,072 $1.55 2010-11 Revised Full Perm Temp Time FTE FTE 4 4 2011-12 Budget $538,565 1,650 (258,770) $281,445 $1.74 2011-12 Budget Full Perm Temp Time FTE FTE 4 4 Related Strategic Issue: All Council Committees Goal: To provide high quality City services to residents of Tempe Objective: To achieve a rating of 90% or greater in resident overall satisfaction with citywide services Measures Satisfaction with overall quality of City services* 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget 90% 90%+ 89% 90%+ *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 108 City of Tempe 2011-12 Annual Budget This page intentionally left blank. City of Tempe 2011-12 Annual Budget City Attorney City Attorney Purpose: To facilitate Tempe’s vision through high quality legal services. Description: The City Attorney, appointed by the Mayor and City Council under the City Charter, is legal advisor and attorney for the City. Activities include presentation and defense of the City’s legal interests and rights and prosecution for misdemeanor complaints. The City Attorney also is responsible for attending City Council meetings and serving as legal counsel during such meetings. Services are as follows: (1) support the legislative and administrative processes (ordinances, opinions, litigation, contracts, legal research, liens); (2) present and defend the City’s legal interests and rights before all courts, legislative and administrative tribunals; and (3) prosecute complaints (misdemeanor traffic and criminal, municipal and superior courts). FY 2011-12 Budget Highlights: The approved amount includes the following change: $25,000 reduction to salaries and benefits budget for two Assistant City Attorney positions Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita Authorized Personnel City Attorney Total 2009-10 Actual $3,301,142 98,736 116,096 $3,515,974 $21.78 2010-11 Budget $2,764,037 91,239 54,229 $2,909,505 $17.99 2009-10 Actual Full Perm Temp Time FTE FTE 24 1.75 24 1.75 110 2010-11 Revised $2,691,826 71,284 44,665 $2,807,775 $17.36 2010-11 Revised Full Perm Temp Time FTE FTE 23 1.75 23 1.75 2011-12 Budget $2,796,732 75,639 31,744 $2,904,115 $17.92 2011-12 Budget Full Perm Temp Time FTE FTE 23 1.75 23 1.75 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To provide prompt legal services Objective: To achieve a 98% satisfaction rating from departments responding to the Civil Client Satisfaction Survey 2009-10 Actual 95% Measures Departments indicating a positive response to promptness 2010-11 Budget 98% 2010-11 Revised 98% 2011-12 Budget 98% Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To provide excellent customer service Objective: To target 100% satisfaction rating from departments responding to the Civil Client Satisfaction Survey Measures Departments indicating a positive response to courteous and approachable services 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget 95% 100% 93% 100% 2010-11 Budget 100% 2010-11 Revised 100% 2011-12 Budget 100% 2010-11 Budget 85% 2010-11 Revised 80% 2011-12 Budget 85% Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To provide prompt disposal of DUI cases Objective: To dispose of 100% of DUI cases within 180 days 2009-10 Actual 100% Measures DUI cases disposed of within 180 days Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To increase victim’s rights satisfaction rating Objective: To achieve an 85% victim’s rights satisfaction rating 2009-10 Actual 80% Measures Victim’s rights satisfaction rating 111 City of Tempe 2011-12 Annual Budget City Clerk City Clerk Purpose: To accurately maintain the legal record of the actions of the City Council and all permanent City records, ensuring the preservation and accessibility of essential information, and to equitably conduct City elections to ensure the integrity of the democratic voting process. Description: The City Clerk, appointed by the Mayor and City Council pursuant to City Charter, serves as the legal custodian of the City’s official records; serves as the Chief Elections Officer of the City; administers Council meetings; and affixes the City Seal on all official documents. FY 2011-12 Budget Highlights: The approved amount includes the following change: reduction of $5,600 in funding for advertising Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita Authorized Personnel City Clerk Total 2009-10 Actual $580,793 154,786 44,840 $780,419 $4.84 2010-11 Budget $349,110 370,324 25,194 $744,628 $4.60 2009-10 Actual Full Perm Temp Time FTE FTE 4 0.58 4 0.58 2010-11 Revised $344,577 49,098 23,879 $417,554 $2.58 2010-11 Revised Full Perm Temp Time FTE FTE 4 0.58 4 0.58 2011-12 Budget $363,402 524,727 29,654 $917,783 $5.66 2011-12 Budget Full Perm Temp Time FTE FTE 4 0.58 4 0.58 Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To keep City staff and appointed officials informed and up-to-date on the legal requirements for public bodies Objective: To provide semi-annual training to Board and Commission appointees and City staff regarding Arizona’s Open Meeting Law, ethics and parliamentary procedure 2009-10 2010-11 2010-11 2011-12 Actual Budget Revised Budget Measures Number of training sessions N/A N/A N/A 2 Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To establish and maintain an active continuing program to comply with the Arizona public records laws Objective: To process all public records requests received within two business days and to provide training to designated City staff 2009-10 2010-11 2010-11 2011-12 Measures Actual Budget Revised Budget Public records requests processed within two business days N/A N/A N/A 95% Number of training sessions N/A N/A N/A 2 112 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To evaluate technological advances that would improve the efficiency and effectiveness of the City Clerk’s Office Objective: To research and implement improvements to processes in City Clerk operations for City Council agendas, public records requests, board and commission training, and records management 2009-10 2010-11 2010-11 2011-12 Measures Actual Budget Revised Budget Process improvements implemented N/A N/A N/A 4 113 City of Tempe 2011-12 Annual Budget City Court City Court Criminal Civil Purpose: To contribute to the quality of life in our community by fairly and impartially administering justice in the most effective, efficient, and professional manner possible. Description: The City Court is a municipal limited jurisdiction court that deals with criminal misdemeanor, civil traffic cases, code enforcement and zoning violations as well as Orders of Protection and Injunctions Against Harassment. The court includes all judicial, administrative, and staff functions necessary to accomplish the court’s purpose. This includes initial appearances, arraignments, pre-trial conferences, orders to show cause, subpoenas, arrest warrants, jury and non-jury trials, hearings, misdemeanor search warrants and financial services to enforce court orders by collecting fines, fees, surcharges and restitution. FY 2011-12 Budget Highlights: The approved amount includes the following change: miscellaneous efficiency reductions totaling $10,340 Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10 Actual $3,173,415 522,339 527,323 $4,223,077 $26.16 2010-11 Budget $2,586,178 583,594 436,078 $3,605,850 $22.29 2010-11 Revised $2,531,027 603,971 414,691 $3,549,689 $21.95 2011-12 Budget $2,691,456 666,334 429,990 $3,787,780 $23.38 Expenditures by Division City Court - Administration Criminal Civil Expenditure Total 2009-10 Actual $2,279,979 813,875 1,129,221 $4,223,077 2010-11 Budget $1,848,988 724,253 1,032,609 $3,605,850 2010-11 Revised $1,767,631 715,975 1,066,083 $3,549,689 2011-12 Budget $1,971,929 726,163 1,089,688 $3,787,780 Authorized Personnel City Court Total 2009-10 Actual Full Perm Temp Time FTE FTE 38 4.06 38 4.06 114 2010-11 Revised Full Perm Temp Time FTE FTE 38 4.06 38 4.06 2011-12 Budget Full Perm Temp Time FTE FTE 38 4.06 38 4.06 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To improve efficiency and effectiveness in the Tempe Municipal Court system’s adjudication process Objective: To achieve a 98% clearance rate of court filings Measures Total number of filings 2009-10 Actual 102,899 2010-11 Budget 103,000 2010-11 Revised 99,018 2011-12 Budget 103,000 Total number of dispositions 113,444 100,940 96,484 100,940 110% 98% 97% 98% Clearance ratio Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To improve efficiency and effectiveness in the Tempe Municipal Court system’s collection process Objective: To achieve an 85% collection rate of obligations imposed in a given fiscal year 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget $12,026,488 $12,500,000 $14,095,611 $12,316,727 $9,908,436 $10,625,000 $11,029,999 $10,469,218 82.38% 85% 78.25% 85% Measures Total obligations imposed Total payments processed* Collection rate *Payments processed include: -Restitution owed to victims -Surcharges to State of Arizona -Surcharges to Maricopa County -Revenue to City 115 City of Tempe 2011-12 Annual Budget Community Development Community Development Economic Development Building Safety Planning Housing Purpose: To serve the community and businesses with processes that are smooth, efficient, predictable, and transparent, and services that are both timely and accurate. Description: The Community Development Department serves the Tempe community by planning, marketing and managing land-use, transportation, housing and economic development opportunities. They work to create wealth and investment in the community by promoting a favorable business environment to attract private capital investment and higher-skill, higher-wage jobs, tax revenues and environmental benefits for the City. Also, they seek to provide a spectrum of housing opportunities for the residents of Tempe. 116 City of Tempe 2011-12 Annual Budget Expenditures by Type Personal Services Supplies and Services Contributions Capital Outlay Internal Services Expenditure Total Per Capita 2009-10 Actual $10,041,450 11,271,428 534,359 23,463 1,283,507 $23,154,207 $143.45 2010-11 Budget $7,811,821 16,177,902 825,038 19,500 1,032,766 $25,867,027 $159.95 930,647 $22,111,231 $136.73 2011-12 Budget $7,516,284 16,916,885 616,500 6,300 2,383,432 $27,439,401 $169.34 Expenditures by Division Administration/Economic Development Building Safety Planning Housing Expenditure Total 2009-10 Actual $1,918,805 2,974,531 6,802,838 11,458,033 $23,154,207 2010-11 Budget $1,248,712 2,517,026 5,683,340 16,417,949 $25,867,027 2010-11 Revised $1,502,531 2,435,324 5,409,979 12,763,397 $22,111,231 2011-12 Budget $3,798,158 2,525,781 4,113,533 17,001,929 $27,439,401 2009-10 Actual Authorized Personnel Administration/Economic Development Building Safety Planning Housing Total Full Time 10 28 40 17 95 Perm FTE 0.50 1.60 2.10 Temp FTE 1.00 0.66 7.35 9.01 117 2010-11 Revised $7,819,522 12,889,000 472,062 2010-11 Revised Full Time 7 24 33 18 82 Perm FTE 1.60 1.60 Temp FTE 0.66 3.35 4.01 2011-12 Budget Full Time 8 24 30 16 78 Perm FTE 1.60 1.60 Temp FTE 0.66 2.86 3.52 City of Tempe 2011-12 Annual Budget Community Development Administration/Economic Development The Administration Division is responsible for management of all divisions within the department, including Tempe Town Lake administration and oversight of the Community Facilities District. The Economic Development Division works with prospective businesses, coordinates regional and local entities in attracting quality companies, broadens the Tempe tax base, and encourages educational, cultural and recreational opportunities that make for a well-balanced city and contribute to the quality of life. FY 2011-12 Budget Highlights: The approved amount includes the following changes: reorganization of the Rio Salado administrative functions from the Planning division to Administration elimination of a Rio Salado Manager position elimination of a Development Services liaison position reduction of $15,000 in various base budget line items transfer of a Rio Salado Financial Analyst from the Planning Division Expenditures by Type Personal Services Supplies and Services Contributions Capital Outlay Internal Services Expenditure Total Per Capita 2009-10 Actual $1,475,897 66,006 163,914 39 212,949 $1,918,805 $11.89 2010-11 Budget $799,621 110,505 165,419 2010-11 Revised $1,085,987 89,766 165,419 173,167 $1,248,712 $7.72 161,359 $1,502,531 $9.29 2009-10 Actual Authorized Personnel Administration/Economic Development Total Full Time 10 10 Perm FTE 2010-11 Revised Temp FTE 1.00 1.00 Full Time 7 7 Perm FTE Temp FTE 2011-12 Budget $944,858 994,571 197,419 2,000 1,659,310 $3,798,158 $23.44 2011-12 Budget Full Time 8 8 Perm FTE Temp FTE Related Strategic Issue: Technology, Economic and Community Development Goal: To expand, diversify and drive investment in the Tempe economy Objective: To expand the tax base and job market in the community 2009-10 Actual Measures Opportunities to retain Tempe businesses 14 30 - (75%) 114% N/A 1,200 1,440 1,500 - 20% 4% N/A 12 10 12 - (17%) 20% N/A 12 5 10 - (58%) 100% Percent change Successful business retention and expansions Percent change 2011-12 Budget 55 Percent change New businesses brought to Tempe 2010-11 Revised N/A Percent change Jobs generated by new companies 2010-11 Budget * Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 118 City of Tempe 2011-12 Annual Budget Community Development Building Safety The Building Safety Division is responsible for helping all of their project partners succeed while protecting public health and safety. They promote sustainable building practices and energy conservation techniques. The division ensures the long term usefulness and safety of all existing and new buildings, thereby maintaining the value of Tempe’s built environment. FY 2011-12 Budget Highlights: No changes in staffing levels 2009-10 Actual $2,399,014 68,682 1,801 505,034 $2,974,531 $18.43 Expenditures by Type Personal Services Supplies and Services Capital Outlay Internal Services Expenditure Total Per Capita 2010-11 Budget $2,150,700 73,482 2010-11 Revised $2,085,939 71,170 2011-12 Budget $2,182,803 61,850 292,844 $2,517,026 $15.56 278,215 $2,435,324 $15.06 281,128 $2,525,781 $15.59 2009-10 Actual Authorized Personnel Building Safety Total Full Time 28 28 Perm FTE 2010-11 Revised Temp FTE 0.66 0.66 Full Time 24 24 Perm FTE 2011-12 Budget Temp FTE 0.66 0.66 Full Time 24 24 Perm FTE Temp FTE 0.66 0.66 Related Strategic Issue: Technology, Economic and Community Development Goal: To verify through formal plan check and permit processes that plans, specifications, and engineering calculations meet minimum requirements for adopted building codes, ADA, and planning and zoning ordinances Objective: 1) To complete 100% of building inspections within one day of request; 2) process 95% of plan reviews within agreed time frame; 3) complete 95% of preliminary site plan reviews by due date; 4) complete and submit 100% of all city clerk reports on time; 5) serve 100% of customers within five minutes of arrival; and 6) accurately perform front counter activities 95% of the time Measures Building inspections completed within one day of request Plan reviews processed within agreed time frame 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget 100% 100% 100% 100% 97% 95% 91% 95% Complete all preliminary site plan reviews by due date 100% 95% 100% 95% Complete and submit all reports to City Clerk on time 100% 100% 100% 100% Customers served within five minutes of arrival 99% 100% 99% 100% Accuracy of front counter activities 96% 95% 92% 95% 119 City of Tempe 2011-12 Annual Budget Community Development Planning The Planning Division is responsible for administering the development entitlement process, change or adoption of codes, ordinances and neighborhood plans, facilities and signs. This division is also responsible for historical preservation, transportation planning, project coordination and management for large private sector and City owned projects, and receiving and investigating complaints of all alleged City code violations. FY 2011-12 Budget Highlights: The approved amount includes the following changes: elimination of two full-time Senior Transportation Planners transfer Rio Salado Financial Analyst position to Administration transfer 10% funding of a Deputy Community Development Director from the General Fund to the CDBG/Section 8 programs transfer 50% funding of a Senior Planner from the General Fund to the CDBG program transfer 50% funding of a Senior Transportation Planner from the Transit Fund to the General Fund reduction of $10,000 in various base budget line items elimination of 0.49 FTE in wages Expenditures by Type Personal Services Supplies and Services Contributions Internal Services Capital Outlay Expenditure Total Per Capita 2009-10 Actual $5,037,673 1,137,700 188,001 21,418 418,046 $6,802,838 $42.15 2010-11 Budget $3,634,576 1,414,161 261,071 2010-11 Revised $3,435,197 1,317,046 261,071 373,532 $5,683,340 $35.14 396,665 $5,409,979 $33.45 2009-10 Actual Authorized Personnel Planning Total Full Time 40 40 Perm FTE 0.50 0.50 2010-11 Revised Temp FTE 7.35 7.35 Full Time 33 33 Perm FTE Temp FTE 3.35 3.35 2011-12 Budget $3,241,147 314,470 249,575 1,200 307,141 $4,113,533 $25.39 2011-12 Budget Full Time 30 30 Perm FTE Temp FTE 2.86 2.86 Related Strategic Issue: Technology, Economic and Community Development Goal: To obtain compliance with City codes that relate to nuisances, property enhancements, rental housing and zoning ordinance requirements Objective: 1) To resolve code issues within 40 days or less; 2) close 100% of code enforcement cases received; and 3) achieve a 99% voluntary compliance rate for property owners cited with a code violation 2009-10 Actual Measures Number of days to resolve code violations 2010-11 Budget 2010-11 Revised 2011-12 Budget 27 30 27 30 Code enforcement cases received 6,303 4,913 4,915 4,913 Code enforcement cases closed 6,709 4,810 4,800 4,810 93% 90% 91% 90% 48 68 65 68 97% 95% 95% 95% Percent closed Cases per inspector per month Code violation voluntary compliance rate 120 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Housing and Social Service Programs Goal: To maintain a desirable residential environment through proactive and reactive enforcement of residential property maintenance codes Objective: 1) To maintain a minimum 50/50 ratio between proactive and reactive code responses; 2) minimize the resident level of dissatisfaction with the maintenance of residential property in their neighborhood to less than 18%; and 3) minimize the resident level of dissatisfaction with the responsiveness of code enforcement complaints to less than 27% 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Ratio between proactive and reactive code responses 44/56 30/70 41/59 30/70 Resident dissatisfaction with the maintenance of private property in their neighborhood* 18% <18% 18% <18% Dissatisfaction of the code enforcement for property maintenance codes 29% <27% 28% <27% Measures *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 121 City of Tempe 2011-12 Annual Budget Community Development Housing The Housing Division is responsible for all activities funded from the federal Section 8, Community Development Block Grant (CDBG) and HOME funds. Services provided include: Section 8 rental assistance, Section 8 Homeownership program, Family Self-Sufficiency program, Homeownership Down Payment Assistance program, homeless resource coordination, Fair Housing activities and the Home Improvement Program. FY 2011-12 Budget Highlights: The approved amount includes the following changes: elimination of an Administrative Assistant position elimination of a Housing Supervisor position transfer 50% funding for one Principal Planner position from the CDBG program to the General Fund transfer 50% funding for one Senior Planner position from the General Fund to the CDBG program Expenditures by Type Personal Services Supplies and Services Contributions Capital Outlay Internal Services Expenditure Total Per Capita 2009-10 Actual $1,128,864 9,999,041 182,444 206 147,478 $11,458,033 $70.99 2010-11 Budget $1,226,924 14,609,263 462,548 19,500 99,714 $16,417,949 $101.52 2009-10 Actual Authorized Personnel Housing Total Full Time 17 17 Perm FTE 1.60 1.60 2010-11 Revised $1,212,399 11,347,018 109,572 2011-12 Budget $1,147,476 15,528,705 219,506 3,100 103,142 $17,001,929 $104.93 94,408 $12,763,397 $78.92 2010-11 Revised Temp FTE Full Time 18 18 Perm FTE 1.60 1.60 Temp FTE 2011-12 Budget Full Time 16 16 Perm FTE 1.60 1.60 Temp FTE Related Strategic Issue: Housing and Social Service Programs, Neighborhood Quality of Life and Revitalization Goal: To make responsible investments of time, money, and energy that produce a variety of housing opportunities for those most in need while simultaneously strengthening the social, economic, and social character of our neighborhoods Objective: 1) To invest in housing development that allows for maximum long-term affordability while providing alternatives for affordable housing units lost through redevelopment; and 2) increase community partnerships by 10% 2009-10 2010-11 2010-11 2011-12 Actual Budget Revised Budget Measures Decent and affordable owner occupied housing units made available 5 5 5 5 Decent and affordable owner rehabilitated occupied housing units made available 5 5 5 5 Related Strategic Issue: Housing and Social Service Programs, Neighborhood Quality of Life and Revitalization Goal: To ensure the City’s commitment to meet housing needs Objective: 1) To provide rental subsidies; 2) provide homeless support services across the entire spectrum of need, from homelessness to self-sufficiency, with the continued emphasis on homeless prevention; 3) increase the availability of affordable, quality housing stock; and 4) be aggressive and creative in finding ways to increase ongoing local funding resources for low income and special needs housing 2009-10 2010-11 2010-11 2011-12 Actual Budget Revised Budget Measures Rental subsidy assistance/Housing Choice Vouchers (HCV) Family Self-Sufficiency (FSS) program participation and initiatives Families graduated from FSS program Homeless services, resources and outreach Units of Supportive Housing Program (SHP) rental subsidy assistance Grants and programs for affordable housing (HVC grant, FSS grant, HPRP grant, Indian Gaming grant, HOPE funding, PBV program) 122 100% 56 100% 23 99.8% 56 100% 23 6 250 5 250 6 378 6 378 20 35 44 35 5 5 5 6 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Housing and Social Service Programs, Neighborhood Quality of Life and Revitalization Goal: To increase homeownership within the City, revitalize and preserve neighborhoods, and help low and moderate income families build wealth through their investment in homeownership Objective: To ensure homebuyers have the information, education, and counseling services through partnerships with local nonprofit organizations and financial institutions 2009-10 2010-11 2010-11 2011-12 Actual Budget Revised Budget Measures Households becoming homeowners with HOME funding Families receiving U.S. Department of Housing and Urban Development (HUD) housing counseling 123 8 14 14 12 120 150 113 120 City of Tempe 2011-12 Annual Budget Community Relations Office Community Relations Office Mayor and Council Staff Communication and Media Relations Neighborhood Services Purpose: To serve the community, elected officials and city departments by delivering Tempe’s message and information to the public. Description: The Community Relations Office is comprised of the Mayor and Council’s Office Staff, Neighborhood Services Division, and Communication and Media Relations Division. Expenditures by Type Personal Services Supplies and Services Contributions Internal Services Expenditure Total Per Capita Expenditures by Division Community Relations-Administration/ Mayor and Council Staff Neighborhood Services Communication and Media Relations Expenditure Total 2009-10 Actual $2,337,363 914,872 111,942 229,410 $3,593,587 $22.26 2010-11 Budget $1,968,449 622,404 122,343 206,628 $2,919,824 $18.05 2010-11 Revised $1,945,262 553,327 112,343 197,843 $2,808,775 $17.37 2011-12 Budget $1,957,616 458,842 123,782 212,745 $2,752,985 $16.99 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget $1,376,387 267,234 1,949,965 $3,593,587 $1,050,753 226,364 1,642,707 $2,919,824 $938,859 335,655 1,534,261 $2,808,775 $1,036,155 354,027 1,362,803 $2,752,985 2009-10 Actual Authorized Personnel Community Relations-Administration/ Mayor and Council Staff Neighborhood Services Communication and Media Relations Total Full Time 9 2 14 25 Perm FTE 2010-11 Revised Temp FTE Full Time 0.98 6 7 11 24 0.85 1.83 124 Perm FTE Temp FTE 0.49 0.85 1.34 2011-12 Budget Full Time 7 8 10 25 Perm FTE Temp FTE 0.49 0.85 1.34 City of Tempe 2011-12 Annual Budget Community Relations Office Administration/Mayor and Council Staff The Administration Division coordinates the operations of the Community Relations Department. The Mayor and Council Staff facilitate communication among the public, city staff, other elected entities and the Mayor and Council. Staff support is also provided for Council committees. FY 2011-12 Budget Highlights: The approved amount includes the following changes: $3,000 reduction in wages budget miscellaneous fees and services budget reductions of $14,000 addition of one new full time Government Relations Coordinator position Expenditures by Type Personal Services Supplies and Services Contributions Internal Services Expenditure Total Per Capita 2009-10 Actual $991,083 187,800 104,135 93,369 $1,376,387 $8.53 2010-11 Budget $735,071 141,189 106,930 67,563 $1,050,753 $6.50 2009-10 Actual Authorized Personnel Community Relations-Administration/ Mayor and Council Staff Total Full Time 9 9 Perm FTE 2011-12 Budget $781,972 69,796 114,119 70,268 $1,036,155 $6.39 2010-11 Revised Temp FTE Full Time 0.98 0.98 6 6 125 2010-11 Revised $698,990 76,831 98,930 64,108 $938,859 $5.81 Perm FTE 2011-12 Budget Temp FTE Full Time 0.49 0.49 7 7 Perm FTE Temp FTE 0.49 0.49 City of Tempe 2011-12 Annual Budget Community Relations Office Neighborhood Services The Neighborhood Services Division is designed to help preserve the integrity of Tempe’s residential areas and to promote a sense of community. It provides technical and informational services to 67 neighborhood associations, more than 100 homeowner associations and 5 affiliate groups. It also supplies clerical support to neighborhood associations. The Neighborhood Services Division’s key job is to maintain clear communication lines between neighborhood groups and City government, focusing on identifying, resolving and preventing neighborhood problems. FY 2011-12 Budget Highlights: The approved amount includes the following change: transfer of one Community Outreach/Marketing Coordinator position from Media Relations Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10 Actual $242,522 9,202 15,510 $267,234 $1.66 2010-11 Budget $204,271 8,700 13,393 $226,364 $1.40 2009-10 Actual Authorized Personnel Neighborhood Services Total Full Time 2 2 Perm FTE 2010-11 Revised $311,951 10,981 12,723 $335,655 $2.08 2010-11 Revised Temp FTE Full Time 7 7 Perm FTE Temp FTE 2011-12 Budget $326,055 10,981 16,991 $354,027 $2.18 2011-12 Budget Full Time 8 8 Perm FTE Temp FTE Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To preserve and improve neighborhoods by engaging residents in civic life and making government accessible and responsive Objective: 1) To increase participating households by 1%; 2) strengthen a sense of community by collaborating with neighborhood and homeowners’ associations on neighborhood initiated projects, neighborhood association mailings, a listserv and 95% attendance at neighborhood association meetings; 3) return resident contacts within 24 hours, 95% of the time; and 4) provide an 80% single point of call resolution from Tempe 311 Measures 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Participating households 37,044 37,000 38,104 38,485 1.0% 1.3% 2.9% 1.0% Percent change Grant applications received 48 35 19 25 40,760 40,000 37,000 40,000 Neighborhood association meetings attended (percent of total) 95% 95% 97% 95% Resident contact returned in 24 hours 98% 95% 98% 95% N/A 80% 72% 80% Neighborhood association mailings Tempe 311 single point of contact resolution 126 City of Tempe 2011-12 Annual Budget Community Relations Office Communication and Media Relations The Communication and Media Relations Division handles all public information and media relations for the City and manages Tempe cable channel 11. It is responsible for keeping the community informed about programs and activities within the City as well as working on Tempe’s image locally, regionally and nationally. Services provided by the division include media relations, graphic design, public relations, audio-visual and government access cable channel coordination. FY 2011-12 Budget Highlights: The approved amount includes the following change: transfer of one Community Outreach/Marketing Coordinator position to Neighborhood Services Expenditures by Type Personal Services Supplies and Services Contributions Internal Services Expenditure Total Per Capita 2009-10 Actual $1,103,758 717,870 7,807 120,530 $1,949,965 $12.08 2010-11 Budget $1,029,107 472,515 15,413 125,672 $1,642,707 $10.16 2009-10 Actual Authorized Personnel Communication and Media Relations Total Full Time 14 14 Perm FTE 2010-11 Revised $934,321 465,515 13,413 121,012 $1,534,261 $9.49 2010-11 Revised Temp FTE 0.85 0.85 Full Time 11 11 Perm FTE Temp FTE 0.85 0.85 2011-12 Budget $849,589 378,065 9,663 125,486 $1,362,803 $8.41 2011-12 Budget Full Time 10 10 Perm FTE Temp FTE 0.85 0.85 Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: 1) To keep Tempe residents, the general public, City employees and the media informed about City issues, programs, community events and organizational changes; and 2) position the City positively locally, regionally and nationally Objective: 1) To attain 70% resident satisfaction with the availability of information about City programs and services; 2) provide information to the community through newsletters, brochures, press releases and advertising; 3) design and produce high quality informational publications, promotional items and visual graphics for all City departments that reflect the image of Tempe; and 4) provide the City with high quality audio/visual, media production and Tempe 11 television programming services 2009-10 Actual Measures Resident satisfaction with the availability of information about City programs and services* Informational pieces provided Tempe 11 electronic program guide accuracy and playback reliability Tempe 11 produced video packages Video-on-Demand access of public meetings within one working day 2010-11 Budget 2010-11 Revised 2011-12 Budget 70% 70% 70% 70% 130 115 130 115 99% 98% 98% 98% N/A 90 108 90 98% 98% 98% 98% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 127 City of Tempe 2011-12 Annual Budget Community Services Community Services Recreation Centers and Programs Arts and Library Social Services Purpose: To provide quality cultural, recreational, and social services to our residents. Description: The Department’s responsibilities include a full range of public library services, historical/cultural enrichment to Tempe residents, and recreational and social service programs. Expenditures by Type Personal Services Supplies and Services Contributions Internal Services Expenditure Total Per Capita 2009-10 Actual $16,698,043 3,207,940 36,010 3,438,029 $23,380,022 $144.85 2010-11 Budget $14,151,252 3,307,839 10,390 2,869,186 $20,338,667 $125.77 2010-11 Revised $13,214,869 2,981,859 10,390 2,729,784 $18,936,902 $117.10 2011-12 Budget $13,929,105 3,366,897 11,890 2,982,312 $20,290,204 $125.23 Expenditures by Division Administration Arts and Library Recreation Centers and Programs Social Services Expenditure Total 2009-10 Actual $551,720 7,577,322 8,274,132 6,976,848 $23,380,022 2010-11 Budget $279,963 6,490,691 6,837,946 6,730,067 $20,338,667 2010-11 Revised $379,696 6,216,389 6,178,690 6,162,127 $18,936,902 2011-12 Budget $434,854 6,689,159 6,472,237 6,693,954 $20,290,204 2009-10 Actual Authorized Personnel Administration Arts and Library Recreation Centers and Programs Social Services Total Full Time 3 51 38 43 135 Perm FTE 2.50 0.75 2.40 5.65 Temp FTE 0.52 28.68 65.73 70.76 165.69 128 2010-11 Revised Full Time 2 44 31 40 117 Perm FTE 2.00 1.75 2.25 6.00 Temp FTE 0.52 28.68 65.73 70.76 165.69 2011-12 Budget Full Time 2 43 31 40 116 Perm FTE 2.50 1.75 2.25 6.50 Temp FTE 0.52 28.68 65.73 70.76 165.69 City of Tempe 2011-12 Annual Budget Community Services Administration Community Services Administration is responsible for overall management of the City’s library, cultural, and social services resources. In this role, Administration manages services provided at the Tempe Public Library, the Tempe Historical Museum, the Vihel Cultural Center, and at community events throughout the City. FY 2011-12 Budget Highlights: The approved amount includes the following change: miscellaneous fees and services budget reductions of $7,000 Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10 Actual $305,966 62,151 183,603 $551,720 $3.42 2010-11 Budget $120,100 63,503 96,360 $279,963 $1.73 2009-10 Actual Authorized Personnel Administration Total Full Time 3 3 Perm FTE Temp FTE 0.52 0.52 129 2010-11 Revised $239,938 46,935 92,823 $379,696 $2.35 2010-11 Revised Full Time 2 2 Perm FTE Temp FTE 0.52 0.52 2011-12 Budget $247,901 56,253 130,700 $434,854 $2.68 2011-12 Budget Full Time 2 2 Perm FTE Temp FTE 0.52 0.52 City of Tempe 2011-12 Annual Budget Community Services Arts and Library The Arts and Library Division’s mission is to be the premier information portal for the Tempe community. In keeping with this mission, the library provides materials, programs, and services that (1) address popular cultural and social trends and residents’ recreational needs; (2) assist residents in developing their ability to find, evaluate, and use information effectively; (3) assist community members in understanding their own cultural heritage and the cultural heritage of others; (4) address the community’s desire for self-directed personal growth and development opportunities; and (5) address the need to be able to read and perform essential daily tasks. In pursuing these goals, the division provides operations and management of several city facilities, including: the Tempe Historical Museum, the Tempe Center for the Arts, the Peterson House Museum, the Elias Rodriquez House, and the Vihel Center for the Arts. FY 2011-12 Budget Highlights: The approved amount includes the following changes: $56,000 reduction to salaries and benefits budget due to the conversion of a full time Library Manager position to a half time Librarian position $13,000 reduction of miscellaneous supplies and services budget items Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10 Actual $5,014,678 1,254,971 1,307,673 $7,577,322 $46.94 2010-11 Budget $4,013,140 1,226,067 1,251,484 $6,490,691 $40.14 2009-10 Actual Authorized Personnel Arts and Library Total Full Time 51 51 Perm FTE 2.50 2.50 Temp FTE 28.68 28.68 130 2010-11 Revised $3,934,739 1,086,410 1,195,240 $6,216,389 $38.44 2010-11 Revised Full Time 44 44 Perm FTE 2.00 2.00 Temp FTE 28.68 28.68 2011-12 Budget $4,197,866 1,283,133 1,208,160 $6,689,159 $41.28 2011-12 Budget Full Time 43 43 Perm FTE 2.50 2.50 Temp FTE 28.68 28.68 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Sports, Tourism, Recreation, Arts and Cultural Development Goal: To provide access to excellent library resources and services that will help community residents of all ages obtain information that meets their educational, professional, and recreational needs Objective: 1) To obtain a 90% or greater satisfaction with the overall quality of library services; and 2) maximize community usage of the library’s collection and electronic research resources 2009-10 2010-11 2010-11 2011-12 Measures (Comparative Benchmark) Actual Budget Revised Budget Satisfaction with quality of library services* 84% 90%+ 84% 90% Library visitors (door count) 1,123,188 Percent change Registered borrowers 149,752 Percent change Circulation 1,102,045 Percent change Public Computer Usage 223,667 Percent change 960,000 819,320 (15%) (15%) 819,320 0% 140,600 145,764 145,764 (6%) 4% 0% 937,500 1,001,310 1,001,310 (15%) 7% 0% 166,800 217,893 217,893 (25%) 31% 0% Library FTE per 1,000 population 0.25 0.22 0.22 0.22 Circulation per capita 6.83 5.80 6.19 6.18 *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey Note: For FY 2010-11 Library hours were cut 20% from 70.5 to 56 per week. The Library materials budget was reduced 25% and Library staff reduced 19.3% (5.5 FTE’s and 2.75 temporary wage positions). Related Strategic Issue: Sports, Tourism, Recreation, Arts and Cultural Development Goal: To provide visitors and volunteers with a quality experience that meets the mission of the Tempe Historical Museum Objective: To attain 90% or greater level of satisfaction by visitors and volunteers with their museum experience 2009-10 Actual Measures Quantified levels of satisfaction reported by visitors and volunteers on evaluation forms 2010-11 Budget 90% Objects catalogued Visitors to Historical Museum and Peterson House 90% 2010-11 Revised 2011-12 Budget 90% 90% 2,211 1,000 2,297 2,200 11,203* 14,000 20,000 22,000 *Reduction in amounts due to museum renovation occurring between 2008 and 2010; Peterson House will be closed for regular tours beginning June 28, 2010 Related Strategic Issue: Sports, Tourism, Recreation, Arts and Cultural Development Goal: 1) To provide quality arts programming to the community; 2) facilitate the effective use of arts facilities; and 3) provide a diverse array of arts opportunities Objective: 1) To achieve a 90% or greater level of satisfaction by attendees; 2) increase current program enrollment levels by 9%; and 3) support arts programming through grants funding of arts organizations and schools Measures Satisfaction reported by attendees and participants on evaluation form Program enrollment 2009-10 Actual 2010-11 Budget 89% 90%+ 88% 90% 3,900 4,000 3,674 4,000 3% (8%) 9% $150,000 $145,000 $150,000 Percent change Grants provided to art organizations and schools $151,500 131 2010-11 Revised 2011-12 Budget City of Tempe 2011-12 Annual Budget Community Services Department Recreation Centers and Programs The Recreation Centers and Programs Division provides for Aquatics, the Kiwanis Recreation Center, Special Events, Special Interest and Boating, Youth and Adult Sports, and Adapted Recreation. Services provided by the Recreation Centers and Programs Division are as follows: (1) facilities coordination and scheduling; (2) general recreation; (3) special recreation for retired residents; (4) adapted recreation for special populations; (5) instructional programs; (6) community special events; (7) aquatics maintenance and programming; and (8) youth and adult sports. FY 2011-12 Budget Highlights: The approved amount includes the following changes: $82,000 reduction in wages budgets Expenditures by Type Personal Services Supplies and Services Contributions Internal Services Expenditure Total Per Capita 2009-10 Actual $5,651,324 1,432,890 36,010 1,183,908 $8,274,132 $51.26 2010-11 Budget $4,799,241 1,348,184 10,390 680,131 $6,837,946 $42.28 2009-10 Actual Authorized Personnel Recreation Centers and Programs Total Full Time 38 38 Perm FTE 0.75 0.75 2010-11 Revised $4,164,611 1,362,247 10,390 641,442 $6,178,690 $38.21 2010-11 Revised Temp FTE 65.73 65.73 Full Time 31 31 Perm FTE 1.75 1.75 2011-12 Budget $4,297,566 1,380,746 11,890 782,035 $6,472,237 $39.95 2011-12 Budget Temp FTE 65.73 65.73 Full Time 31 31 Perm FTE 1.75 1.75 Temp FTE 65.73 65.73 Related Strategic Issue: Sports, Tourism, Recreation, Arts and Cultural Development Goal: To provide quality recreation services to coordinate the effective use of community parks and recreation resources Objective: 1) To achieve a minimum 85% overall resident satisfaction with the quality of City recreation centers; 2) achieve a minimum 75% overall resident satisfaction with City swimming pools and programs; 3) achieve a minimum 75% with the quality of recreation programs for youth; 4) achieve a minimum 75% with the quality of recreation programs for adults; 5) collect fees for programs and services at a level based on a percentage of the total budgeted expenditures for parks and recreation; and 6) maintain and operate recreation programs and facilities at a cost and staffing level, on a per capita basis, that meets the needs of residents 2009-10 Actual Measures (Comparative Benchmark) 2010-11 Budget 2010-11 Revised 2011-12 Budget Quality of City recreation centers* 83% 85% 76% 85% Quality of City swimming pools and programs* 74% 75% 62% 75% Quality of City recreation programs for youth* 75% 75% 70% 75% Quality of City recreation programs for adults* 75% 75% 70% 75% $51.26 $42.28 $38.21 $39.95 Operating and Maintenance Cost per capita Recreation Services full-time staff per capita (10,000) Parks and Recreation revenue Program fees as a percent of expenditures 2.42 2.17 1.98 1.98 $2,654,781 $2,899,443 $2,813,878 $2,936,093 32% 42% 46% 45% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 132 City of Tempe 2011-12 Annual Budget Community Services Department Social Services The Social Services Division provides a wide array of services for Tempe youth and families. Activities and services are offered to all age groups to promote positive and healthy lifestyles. Services for youth include preschool programs at the Escalante and West Side Multigenerational Centers, Kid Zone before and after school enrichment program, Teen Zone which encourages youth involvement in positive activities and services, and the Youth Employment Program which promotes strong work values and assists youth in exploring career opportunities. Residents of all ages may participate in State Licensed Counseling and/or Crisis Intervention Services. The Diversion/Probation Program provides a constructive program of case management, assessment, counseling and community service to individuals referred from Tempe City Court. FY 2011-12 Budget Highlights: The approved amount includes the following changes: reduction of $10,000 in funding for wages for the partnerships program reduction of $71,000 in funding for wages for the Kid Zone program $23,000 reduction to miscellaneous supplies and services budget items Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10 Actual $5,726,071 487,939 762,838 $6,976,848 $43.22 2010-11 Budget $5,218,771 670,085 841,211 $6,730,067 $41.62 2009-10 Actual Authorized Personnel Social Services Total Full Time 43 43 Perm FTE 2.40 2.40 Temp FTE 70.76 70.76 133 2010-11 Revised $4,875,581 486,267 800,279 $6,162,127 $38.10 2010-11 Revised Full Time 40 40 Perm FTE 2.25 2.25 Temp FTE 70.76 70.76 2011-12 Budget $5,185,772 646,765 861,417 $6,693,954 $41.31 2011-12 Budget Full Time 40 40 Perm FTE 2.25 2.25 Temp FTE 70.76 70.76 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Neighborhood Quality of Life and Revitalization, Sports, Tourism, Recreation, Arts and Cultural Development , Education Partnerships Goal: To provide quality programs that enhance the quality of life of Tempe residents Objective: 1) To achieve a 95% approval rating from customers participating in the Early Education Program; and 2) achieve a 90% approval rating from customers participating in the Summer Camp Program 2009-10 2010-11 2010-11 2011-12 Actual Budget Revised Budget Measures Overall customer approval rating for the Escalante Early Education Program 95% 95% 95% 90% Overall customer approval rating for the Escalante Summer Camp Program 93% 90% 93% 90% Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: 1) To provide the residents of Tempe with quality crisis intervention services, support and referral; and 2) provide comprehensive services to victims of crimes occurring in Tempe Objective: To ensure that a minimum of 90% of the clients served respond favorably to the services provided by Care 7 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Victims satisfied with services 95% 90% 95% 90% Care 7 clients reporting satisfaction with services 94% 90% 95% 90% Measures Related Strategic Issue: Neighborhood Quality of Life and Revitalization, Technology, Economic and Community Development, Education Partnerships Goal: To continue to provide the highest quality of out of school time, enrichment program to the residents of Tempe through the Kid Zone Enrichment Program Objective: 1) To target a 90% approval rating from customers and the school community who utilize Kid Zone services; and 2) maintain at least an 80% approval rating on the national accreditation evaluation 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Parent evaluation survey results measures indicate “very satisfied” with the Kid Zone Enrichment Program 91% 90% 94% 90% National accreditation evaluation survey results of “very satisfied” with the Kid Zone Enrichment Program 91% 80% 92% 80% Measures Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To redirect offenders into positive community activities by providing assessment, counseling, referral and educational programs Objective: To attain a successful program completion rate of 80% 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget New program participants 4,661 4,661 3,570 4,000 Successful program completion 80% 80% 80% 80% Measures 134 City of Tempe 2011-12 Annual Budget This page intentionally left blank. City of Tempe 2011-12 Annual Budget Diversity Office Diversity Office Purpose: To promote a fair, equitable and accessible work environment for City employees, and provide administrative support to the Human Relations Commission. Description: The Diversity Office coordinates the City’s response to the Diversity Audit, functions as an ombudsman for City employees, provides administrative support to the Human Resources Commission, Tardeada Advisory Board, the Mayor’s Commission on Disability Concerns, and organizes community special events. FY 2011-12 Budget Highlights: The approved amount includes the following change: miscellaneous fees and services budget reduction of $1,000 Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10 Actual $373,556 108,585 38,381 $520,522 $3.22 2010-11 Budget $330,220 79,374 31,757 $441,351 $2.73 2009-10 Actual Authorized Personnel Diversity Total Full Time 3 3 Perm FTE 0.50 0.50 Temp FTE 136 2010-11 Revised $327,755 79,324 30,565 $437,644 $2.71 2010-11 Revised Full Time 2 2 Perm FTE 1.25 1.25 Temp FTE 2011-12 Budget $340,818 78,374 30,560 $449,752 $2.78 2011-12 Budget Full Time 2 2 Perm FTE 1.25 1.25 Temp FTE City of Tempe 2011-12 Annual Budget Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To create a fair and equitable work environment for City of Tempe employees while creating an inclusive community environment through the promotion of diversity Objective: 1) To attain 70% resident satisfaction with overall efforts to promote diversity in the community; 2) minimize the number of EEOC complaints to less than 3 per year; 3) successfully remediate employee safe havens/consultations at least 80% of the time; and 4) successfully remediate community concerns/consultations for diversity related community issues at least 85% of the time 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Residents’ satisfaction with overall efforts to promote diversity* EEOC complaints 72% 3 72% <3 65% 2 70% <3 Successfully remediate employee safe havens/consultations 80% 70% 90% 80% Measures Successfully remediate community concerns/consultations 80% 80% 90% 85% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To educate through programming and celebrate through events Tempe’s rich diversity Objective: To attain 95% attendant satisfaction (a rating of above average or higher) with community diversity celebrations Measures Attendants rating events above average or higher 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget 95% 95% 95% 95% Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To promote an accessible environment for the City of Tempe workforce and community Objective: 1) To implement one additional program promoting accessibility in the community; and 2) remediate internal and external ADA complaints at least 80% of the time 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Number of new ADA programs (1) 90% 90% 85% 90% Successfully remediate community concerns/consultations 90% 80% 85% 80% Measures 137 City of Tempe 2011-12 Annual Budget Finance and Technology Finance and Technology Finance Budget/ Tax and License Information Technology Purpose: To provide excellent financial management and information technology services with integrity, accountability, superior customer service, and low cost. Description: The Finance and Technology Department provides financial management, technology and operational support to the Mayor and City Council, the City Manager, and City departments. Services provided by the Finance division include accounting, cash management, purchasing, payroll, utility billing and collection, and risk management. The Budget/Tax and License division provides budgeting, long-range financial planning, sales tax collection and auditing, and business licensing. The Technology division coordinates all of the City's information and telecommunications systems. Expenditures by Type Personal Services Supplies and Services Capital Outlay Internal Services Expenditure Total Per Capita Expenditures by Division Administration Finance Budget/Tax and License Information Technology Expenditure Total 2009-10 Actual $14,282,746 11,786,683 10,013 (20,124,883) $5,954,559 $36.89 2010-11 Budget $12,281,451 11,260,241 37,800 (18,111,865) $ 5,467,627 $33.81 2009-10 Actual $226,282 3,922,293 1,805,984 * $5,954,559 2010-11 Budget $113,482 3,691,644 1,662,501 * $5,467,627 2010-11 Revised $11,801,553 11,232,621 36,789 (17,401,061) $5,669,902 $35.06 2011-12 Budget $12,148,183 11,445,672 85,500 (17,797,432) $5,881,923 $36.30 2010-11 Revised $85,498 3,978,335 1,606,069 * $5,669,902 2011-12 Budget $139,583 4,073,926 1,668,414 * $5,881,923 *Information Technology costs are fully reimbursed though interactivity credit 2009-10 Actual Authorized Personnel Administration Finance Budget/Tax and License Information Technology Total Full Time 2 46 20 70 138 Perm FTE Temp FTE 0.50 0.63 0.50 0.63 138 2010-11 Revised Full Time 2 44 20 65 131 Perm FTE 0.50 0.50 Temp FTE 2011-12 Budget Full Time 2 44 20 65 131 Perm FTE 0.50 0.50 Temp FTE City of Tempe 2011-12 Annual Budget Finance and Technology Administration Administration is responsible for the overall management of the department. FY 2011-12 Budget Highlights: The approved amount includes the following change: reduction of $1,000 in various base budget items Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10 Actual $329,989 51,089 (154,796) $226,282 $1.41 2010-11 Budget $288,964 59,027 (234,509) $113,482 $0.70 2009-10 Actual Authorized Personnel Administration Total Full Time 2 2 Perm FTE 2010-11 Revised $277,496 43,036 (235,034) $85,498 $0.53 2010-11 Revised Temp FTE Full Time 2 2 Perm FTE 2011-12 Budget $289,794 79,835 (230,046) $139,583 $0.86 2011-12 Budget Temp FTE Full Time 2 2 Perm FTE Temp FTE Related Strategic Issue: Technology, Economic and Community Development Goal: To ensure the long-term financial success of the City through sound financial management practices Objective: To adhere to a financial management strategy that produces financial results that compare favorably with our peer cities as measured by generally accepted financial indicators 2009-10 2010-11 2010-11 2011-12 Measures (Comparative Benchmark) Actual Budget Revised Budget Administration Fund balance coverage - General Fund General obligation bond rating (Standard & Poor's/Moody’s/Fitch) 20% AA+/Aa1/AAA 139 >20% AA+/Aa1/AAA 20% AA+/Aa1/AAA >20% AA+/Aa1/AAA City of Tempe 2011-12 Annual Budget Finance and Technology Finance The Finance division is comprised of Accounting, Risk Management, Procurement, and Customer Services. Operational functions include all finance, accounting, purchasing, loss control and customer service billing operations. Though the main funding source for Financial Services is the General Fund, funding is also provided from the Water/Wastewater and Risk Management Funds. FY 2011-12 Budget Highlights: The approved amount includes the following changes: reduction of $1,000 in overtime expense reduction of $48,600 in various base budget items additional revenue of $50,000 consisting of procurement card rebates 2009-10 Actual $4,102,092 5,178,714 3,788 (5292,252) $3,922,293 $24.75 Expenditures by Type Personal Services Supplies and Services Capital Outlay Internal Services Expenditure Total Per Capita 2010-11 Budget $3,641,701 5,361,565 33,000 (5,344,622) $3,691,644 $22.83 2009-10 Actual Authorized Personnel Finance Total Full Time 46 46 Perm FTE 0.50 0.50 2010-11 Revised $3,798,236 5,410,365 36,789 (5,267,055) $3,978,335 $24.60 2010-11 Revised Temp FTE 0.63 0.63 Full Time 44 44 Perm FTE 0.50 0.50 Temp FTE 2011-12 Budget $3,759,566 5,473,997 85,500 (5,245,137) $4,073,926 $25.14 2011-12 Budget Full Time 44 44 Perm FTE 0.50 0.50 Temp FTE Related Strategic Issue: Technology, Economic and Community Development Goal: 1) To effectively perform accounts payable, payroll, and other accounting functions for City departments; 2) maintain adequate internal controls; 3) adhere to generally accepted accounting principles; and 4) ensure the safety of City investments Objective: To receive positive independent certifications of financial reports 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Unqualified opinion from independent auditor Yes Yes Yes Yes GFOA Certificate of Excellence Yes Yes Yes Yes Measures Related Strategic Issue: Technology, Economic and Community Development Goal: To pay invoices in a timely manner Objective: To enter vouchers for payment within two weeks of the purchase order dispatch date at least 90% of the time 2009-10 Actual 87% Measures Compare the purchase order dispatch date/invoice date 140 2010-11 Budget 92% 2010-11 Revised 90% 2011-12 Budget 90% City of Tempe 2011-12 Annual Budget Related Strategic Issue: Technology, Economic and Community Development Goal: To partner with all City departments in the detection, elimination, and control of potential loss exposures to the City Objective: 1) To investigate all Indemnity claims within 7 days; and 2) maximize annual subrogation recovery Measures Claims investigated within 7 days Workers’ Compensation claims 2009-10 Actual 100% 2010-11 Budget 100% 2010-11 Revised 100% 2011-12 Budget 100% $1,940,403 $1,000,000 $715,371 $1,000,000 (48%) (28%) 40% $200,000 $221,504 $200,000 2% 11% (10%) Percent change Subrogation recovery totals $196,088 Percent change Related Strategic Issue: Technology, Economic and Community Development Goal: To procure low cost, quality goods and services for City departments, while ensuring that purchases are made in a timely and ethical manner Objective: 1) To procure at least 85% of lower cost items through annual contracts; and 2) maintain 100% compliance with the American Bar Association Model Procurement Code 2009-10 2010-11 2010-11 2011-12 Actual Budget Revised Budget Measures Lower cost purchases made through annual contracts Conformity to American Bar Association Model Procurement Code 92% 60% 85% 85% 100% 100% 100% 100% Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To answer all incoming calls within the industry standard based on American Water Works Association (AWWA) Benchmarking Water Utility Customer Relations Best Practices (AWWA Research Foundation, 2006) Objective: 1) To answer customer calls under the AWWA industry standard of 58 seconds; and 2) maintain the abandoned call rate below the AWWA industry standard of 5.8% 2009-10 Actual Measures Monthly call center reports (average speed answered) Monthly call center reports (abandoned call rate) 141 2010-11 Budget 2010-11 Revised 2011-12 Budget 44 sec. 58 sec. 50 sec. 58 sec. 5.5% <5.8% 5.8% <5.8% City of Tempe 2011-12 Annual Budget Finance and Technology Budget / Tax and License Budget Office responsibilities include preparation of budget documents, comprehensive financial planning, forecasting, capital improvements program, budget monitoring, benchmarking, and special financial studies. Tax and License receives all City sales tax and licensing revenue and is responsible for issuing sales tax licenses and auditing license holders. FY 2011-12 Budget Highlights: The approved amount includes the following change: reduction of $7,250 in various base budget items Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10 Actual $1,799,607 79,923 (73,546) $1,805,984 $11.19 2010-11 Budget $1,715,108 69,850 (122,457) $1,662,501 $10.28 2009-10 Actual Authorized Personnel Budget/Tax and License Total Full Time 20 20 Perm FTE 2010-11 Revised $1,664,753 69,850 (128,534) $1,606,069 $9.93 2011-12 Budget $1,733,022 50,600 (115,208) $1,668,414 $10.29 2010-11 Revised Temp FTE Full Time 20 20 Perm FTE Temp FTE 2011-12 Budget Full Time 20 20 Perm FTE Temp FTE Related Strategic Issue: Technology, Economic and Community Development Goal: To provide quality customer service to all citywide user departments Objective: To achieve a 95% or higher satisfaction with overall service provided by the Budget Office 2009-10 2010-11 2010-11 Actual Budget Revised Measures Overall satisfaction with service 97% 95% 95% 2011-12 Budget 95% Related Strategic Issue: Technology, Economic and Community Development Goal: To encourage taxpayer compliance by conducting cost-effective audits, reviews and investigations with a customer friendly, professional staff that treats member of the business community fairly and equitably by administering the City Code Objective: 1) To achieve an annual sales tax audit cost recovery ration (audit collections divided by audit costs) of 2.0; 2) to have at least 95% of all audit assessments accepted by taxpayers without protest and prevail in at least 90% of all protests; and 3) to achieve tax audit customer service ratings in the annual Taxpayer Problem Resolution Officer customer surveys of at least 4.5 on a scale of 5, where 4.5 is “good” and 5 is “excellent” 2009-10 Actual Measures 2010-11 Budget 2010-11 Revised 2011-12 Budget Recovery ratio 2.35 2.29 3.14 2.00 Non-protested tax audit findings 99% 95% 100% 95% Protested findings upheld 75% 90% 100% 90% Overall customer service rating 4.50 4.50 4.63 4.50 142 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Technology, Economic and Community Development Goal: To produce accurate and timely reports of aggregate privilege tax information Objective: To issue sales tax revenue statistical reports within 4 working days of the close of monthly tax return entry Measures Percent of reports issued within four working days 2009-10 Actual 2010-11 Budget 92% 92% 2010-11 Revised 100% 2011-12 Budget 100% Related Strategic Issue: Technology, Economic and Community Development Goal: To post all sales tax returns, payments and applications in a cost effective manner Objective: To enter all sales tax returns received by the monthly deadline (typically the last day of the month) into the sales tax system within three business days of the deadline Measures Percent of returns entered within three business days 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget N/A N/A 59% 100% Related Strategic Issue: Technology, Economic and Community Development Goal: To manage delinquent sales tax accounts through cost-effective collection policies and procedures Objective: 1) To not exceed the 75th percentile of other identified benchmark cities when comparing the cost of Tempe’s sales tax collections program as a percentage of collection; 2) ensure that the accounts receivable balances accurately reflect sales taxes due by maintaining non-filing (NFIL) cases below 5% of total returns due; 3) maintain the average 90 to 120 day unpaid (UNPY) receivable balance cases below 1% of taxes due for that period; 4) maintain the 150 to 360 receivable balances below .5% of taxes due for that period, and; 5) not write-off receivables totaling more than .1% of revenues for any reporting period 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Percent of License staff to benchmark cities N/A N/A N/A <75% Percent of average monthly non-filer N/A N/A N/A <5% 90 to 120 receivables N/A N/A N/A <1% 150 to 360 receivables N/A N/A N/A <.5% Write-offs as a percent of tax revenue N/A N/A N/A .1% Measures Related Strategic Issue: Technology, Economic and Community Development Goal: To provide consistent, high quality customer service to businesses that are subject to Tempe privilege taxes Objective: To achieve license and collection customer service ratings in the annual Taxpayer Problem Resolution Officer customer surveys of at least 4.5 on a scale of 5, where 4.5 is “good” and 5 is “excellent” Measures Overall customer service rating 143 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget 4.55 4.50 4.55 4.50 City of Tempe 2011-12 Annual Budget Finance and Technology Information Technology Information Technology (IT) is responsible for fostering a partnership with City Departments and optimizing the productivity of the office environment by empowering our employees with state-of-the-art tools and leveraging the City’s investment in information technology. IT provides services that include: shared resources, systems, software, and information processing. FY 2011-12 Budget Highlights: The approved budget includes the following changes: reclassification of a Webmaster position to a Senior Programmer reclassification of a Network Engineer position to a Network Technician reduction in salary/benefits for a Business Analyst position reduction of $154,500 for various base budget items Expenditures by Type Personal Services Supplies and Services Capital Outlay Internal Services Expenditure Total Per Capita 2009-10 Actual $8,051,057 6,476,955 6,224 (14,534,236) $0 $90.05 2010-11 Budget $6,635,677 5,769,800 4,800 (12,410,277) $0 $76.74 2010-11 Revised $6,061,068 5,709,370 2011-12 Budget $6,365,801 5,841,240 (11,770,438) $0 $72.78 (12,207,041) $0 $75.34 *Based on Internal Services expenditure amounts and displayed for informational purposes 2009-10 Actual Authorized Personnel Information Technology Total Full Time 70 70 Perm FTE Temp FTE 144 2010-11 Revised Full Time 65 65 Perm FTE Temp FTE 2011-12 Budget Full Time 65 65 Perm FTE Temp FTE City of Tempe 2011-12 Annual Budget Related Strategic Issue: Technology, Economic and Community Development Goal: To provide prompt response to computer system problems Objective: 1) To resolve 87% of incoming calls to the Helpdesk within 30 minutes; 2) settle 10% of calls routed to second level support personnel within 4 hours; and 3) resolve 3% of the calls requiring 4 hours or longer to resolve 2009-10 Actual 2010-11 Budget 2010-11 Revised 85% 87% 88% 88% Second level calls resolved within 4 hours 9% 10% 12% 12% Calls requiring longer than 4 hours to resolve 4% 3% 2% 2% Measures Calls resolved within 30 minutes 2011-12 Budget Related Strategic Issue: Technology, Economic and Community Development Goal: To minimize system downtime Objective: To average less than 30 milliseconds for PC to server response time during peak traffic load 2009-10 2010-11 2010-11 Measures Actual Budget Revised PC to server response time during peak traffic load (milliseconds) 27 28 35 2011-12 Budget 35 Related Strategic Issue: Technology, Economic and Community Development Goal: To provide prompt computer response time Objective: To target 99.93% network access availability for voice and data Measures Network access availability for voice and data 145 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget 99.93% 99.93% 99.95% 99.95% City of Tempe 2011-12 Annual Budget Fire Fire Chief Administration/ Fire Prevention Training/ Professional Development Emergency/ Medical Services Homeland Security/Special Operations Support Services/ Personnel Safety Purpose: To provide for the safety and welfare of the public through preservation of life, property, and the environment. Description: The Fire Department consists of Administration/Fire Prevention, Emergency/Medical Services, Training/Professional Development, Homeland Security/Special Operations, and Support Services/Personnel Safety divisions. The Department’s operational areas include administrative services, fire suppression, emergency management, emergency medical services, hazardous materials control, technical rescue, communications, equipment and facilities maintenance, training, fire prevention and inspection, and public safety education. Expenditures by Type Personal Services Supplies and Services Contributions Capital Outlay Internal Services Expenditure Total Per Capita (Comparative Benchmark) 2009-10 Actual $22,274,426 2,427,335 36,250 152,327 1,718,012 $26,608,350 $164.85 2010-11 Budget $21,057,970 2,716,475 37,500 310,700 1,348,977 $25,471,622 $157.51 2010-11 Revised $21,256,439 2,286,680 41,500 310,700 1,269,088 $25,164,407 $155.61 Expenditures by Division Administration/Fire Prevention Emergency/Medical Services Training/Professional Development Homeland Security/Special Operations Support Services/Personnel Safety Total 2009-10 Actual $3,664,336 19,413,610 487,441 469,223 2,573,740 $26,608,350 2010-11 Budget $3,506,766 18,709,266 482,595 410,459 2,362,536 $25,471,622 2010-11 Revised $3,298,055 18,731,204 478,952 390,277 2,265,919 $25,164,407 2009-10 Actual Authorized Personnel Administration/Fire Prevention Emergency/Medical Services Training/Professional Development Homeland Security/Special Operations Support Services/Personnel Safety Total Full Time 20 153 3 3 5 184 Perm FTE Temp FTE 1.00 1.00 146 2010-11 Revised Full Time 20 150 3 3 5 181 Perm FTE 1.00 1.00 Temp FTE 2011-12 Budget $22,488,233 2,418,358 36,500 93,400 1,317,783 $26,354,274 $162.65 2011-12 Budget $3,536,964 19,579,095 513,655 527,903 2,196,657 $26,354,274 2011-12 Budget Full Time 20 150 3 3 5 181 Perm FTE 1.00 1.00 Temp FTE City of Tempe 2011-12 Annual Budget Fire Administration/Fire Prevention Administration is responsible for general policy and direction of the department, as delineated in the Five-Year Strategic Plan and Operational Guide, by providing management and leadership for the operating divisions within the Fire Department. Development and administration of the budget, recruitment, member safety and wellness program management are also basic responsibilities of Administration. The goal of Fire Prevention is to prevent loss of life, injury and property loss to fire through the creation, implementation, and management of comprehensive and effective building and fire codes, education programs and fire inspections. Services include: (1) inspection of commercial and industrial properties; (2) response to resident fire hazard complaints; (3) approval of plans for and inspections of new construction; (4) determination of cause and origin of fires; (5) public information office; (6) volunteer program; and (7) public safety education programs. FY 2011-12 Budget Highlights: No change in staffing levels Expenditures by Type Personal Services Supplies and Services Capital Outlay Internal Services Expenditure Total Per Capita 2009-10 Actual $2,533,261 309,777 1,822 819,476 $3,664,336 $22.70 2010-11 Budget $2,309,052 392,961 2010-11 Revised $2,164,550 381,146 2011-12 Budget $2,360,120 454,428 804,753 $3,506,766 $21.68 752,359 $3,298,055 $20.39 722,416 $3,536,964 $21.83 2009-10 Actual Authorized Personnel Administration/Fire Prevention Total Full Time 20 20 Perm FTE 2010-11 Revised Temp FTE Full Time 20 20 Perm FTE Temp FTE 2011-12 Budget Full Time 20 20 Perm FTE Temp FTE Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To provide high quality cost efficient fire services Objective: 1) To efficiently manage resources to meet the needs of residents with 9.45 sworn firefighter full-time equivalents (FTE) per 10,000 capita, 1.79 non-firefighter FTE per 10,000 capita, and .15 fire stations per square mile; 2) attain 92% resident satisfaction with the quality of local fire services; and 3) maintain daily minimum firefighter staff level at 42 2009-10 2010-11 2010-11 2011-12 Measures (Comparative Benchmark) Actual Budget Revised Budget Firefighters per capita (10,000) 9.61 9.46 9.46 9.45 Non-Firefighters per capita (10,000) 1.86 1.80 1.80 1.79 Fire Stations per square mile 0.15 0.15 0.15 0.15 Resident satisfaction with the quality of local fire service* 90% 92% 92% 92% 42 42 42 42 Daily minimum firefighter staffing level *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 147 City of Tempe 2011-12 Annual Budget Fire Emergency/Medical Services The goal of Emergency Services is to deliver rapid effective service when fire, medical and other hazardous emergencies occur. These services are extended through the use of seven engine companies and two ladder trucks located at six fire stations throughout the City. Services provided by this division are as follows: (1) respond to and extinguish fires; (2) deliver effective medical and rescue services for injuries, illnesses, and accidents; (3) respond to and control hazardous materials emergencies; (4) conduct company fire prevention inspections; and (5) provide technical rescue services. Also, under the auspices of this section is the dispatch liaison function with the City of Phoenix Fire Dispatch Center. This includes helping to draft and implement policy and coordination of the technical aspect relevant to Tempe. FY 2011-12 Budget Highlights: The approved amount included the following changes: reduction of $32,000 in various base budget items addition of $57,600 in revenue for building facility rentals Expenditures by Type Personal Services Supplies and Services Contributions Capital Outlay Expenditure Total Per Capita 2009-10 Actual $18,364,520 924,297 27,250 97,543 $19,413,610 $120.28 2010-11 Budget $17,443,937 1,145,329 26,600 93,400 $18,709,266 $115.69 2009-10 Actual Authorized Personnel Emergency/Medical Services Total Full Time 153 153 Perm FTE 2010-11 Revised $17,822,265 783,039 32,500 93,400 $18,731,204 $115.83 2011-12 Budget $18,634,446 824,649 26,600 93,400 $19,579,095 $120.84 2010-11 Revised Temp FTE Full Time 150 150 Perm FTE Temp FTE 2011-12 Budget Full Time 150 150 Perm FTE Temp FTE Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To provide efficient response to fire, medical, hazardous materials, and rescue emergencies Objective: 1) To respond to safe emergency responses under 4:30 minutes; and 2) target 87% resident satisfaction with the quality of local paramedic service 2009-10 Actual Measures (Comparative Benchmark) 2010-11 Budget 2010-11 Revised 2011-12 Budget Average emergency response time in minutes (from call receipt to arrival)* 4:20 4:20 4:18 4:20 Percent of emergency responses taking 5.0 minutes or less 74% 74% 74% 74% 122 130 130 130 7% 0% 0% Calls per capita (1,000) Percent change *Calls do not include alarm processing time 148 City of Tempe 2011-12 Annual Budget Fire Training/Professional Development Training/Professional Development incorporates all categories of departmental training including recruit training, officer development, driver training, and minimum company standards. Incident analysis is another method used to improve the quality of our service by reviewing emergency incidents and applying lessons learned. All promotional and assignment tests are administered through this section. This section also provides oversight and maintenance of Department personnel certifications. FY 2011-12 Budget Highlights: The approved amount included the following change: reduction of $10,000 in various base budget items Expenditures by Type Personal Services Supplies and Services Expenditure Total Per Capita 2009-10 Actual $435,241 52,200 $487,441 $3.02 2010-11 Budget $401,085 81,510 $482,595 $2.98 2009-10 Actual Authorized Personnel Training/Professional Development Total Full Time 3 3 Perm FTE 2010-11 Revised $419,472 59,210 $478,952 $2.96 2010-11 Revised Temp FTE Full Time 3 3 Perm FTE Temp FTE 2011-12 Budget $443,445 70,210 $513,655 $3.17 2011-12 Budget Full Time 3 3 Perm FTE Temp FTE Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To provide training and evaluation standards for all phases of emergency services Objective: 1) To evaluate all Emergency Services Division personnel quarterly for compliance with Tempe Fire Department standards relating to fireground, EMS and special operations procedures while maintaining 100% of completion; and 2) maintain at 20% or less the annual percentage of firefighter injuries 2009-10 2010-11 2010-11 2011-12 Measures Actual Budget Revised Budget Companies completing minimum company standards evaluations 100% 100% 100% 100% Annual percentage of firefighter injuries 16% 149 22% 20% 20% City of Tempe 2011-12 Annual Budget Fire Homeland Security/Special Operations Homeland Security/Special Operations involves oversight of development, training, and certification of all special type emergency procedures including hazardous materials and technical rescue (high angle, confined space, swift water, etc.). The Fire Department is charged with management of the City’s emergency preparedness plan for disaster type issues. This includes development and maintenance of the plan, conducting disaster drills, and coordination of disaster preparedness with the County. Also under the auspices of this section is oversight for matters relating to Homeland Security. This includes response to chemical, biological, radiological, nuclear and explosive incidents. FY 2011-12 Budget Highlights: The approved amount included the following change: reduction of $1,000 in various base budget items Expenditures by Type Personal Services Supplies and Services Contributions Expenditure Total Per Capita 2009-10 Actual $370,864 89,360 8,999 $469,223 $2.91 2010-11 Budget $353,262 46,297 10,900 $410,459 $2.54 2009-10 Actual Authorized Personnel Homeland Security/Special Ops Total Full Time 3 3 Perm FTE Temp FTE 150 2010-11 Revised $336,580 44,697 9,000 $390,277 $2.41 2010-11 Revised Full Time 3 3 Perm FTE Temp FTE 2011-12 Budget $473,006 44,997 9,900 $527,903 $3.26 2011-12 Budget Full Time 3 3 Perm FTE Temp FTE City of Tempe 2011-12 Annual Budget Fire Support Services/Personnel Safety Primary responsibilities of Support Services/Personnel Safety include apparatus maintenance, equipment maintenance and repair, apparatus acquisition management, facilities maintenance, maintaining the Department’s communications systems, and writing equipment bid specifications. In addition, the division orders and distributes firefighting supplies to the City’s six fire stations. This division is also responsible for physical training and wellness, safety, recruitment and employment, special events, and promotional testing. FY 2011-12 Budget Highlights: No change in staffing levels FY 2011-12 Capital Budget Operating Impacts: The department also received additional funding in the amount of $50,000 to cover wireless cards and software associated with the replacement of ruggedized laptop computers. Expenditures by Type Personal Services Supplies and Services Capital Outlay Internal Services Expenditure Total Per Capita 2009-10 Actual $570,540 1,051,702 52,961 898,537 $2,573,740 $15.95 2010-11 Budget $550,634 1,050,378 217,300 544,224 $2,362,536 $14.61 2009-10 Actual Authorized Personnel Support Services/Personnel Safety Total Full Time 5 5 Perm FTE 1.00 1.00 2010-11 Revised $513,302 1,018,588 217,300 516,729 $2,265,919 $14.01 2010-11 Revised Temp FTE Full Time 5 5 Perm FTE 1.00 1.00 Temp FTE 2011-12 Budget $577,216 1,024,074 595,367 $2,196,657 $13.56 2011-12 Budget Full Time 5 5 Perm FTE 1.00 1.00 Temp FTE Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To conduct progressive maintenance, inspections, service work, and major and minor repairs of all fire apparatus Objective: 1) To maintain preventive maintenance inspections; and 2) target 100% maintenance completion within the preventive maintenance (PM) schedule 2009-10 Actual Measures Preventive maintenance inspections Percent completed within PM schedule 151 2010-11 Budget 2010-11 Revised 2011-12 Budget 276 276 276 276 82% 100% 84% 100% City of Tempe 2011-12 Annual Budget Human Resources Human Resources Purpose: To attract, train and retain a diverse workforce that is better able to serve our community and mirrors the community in which we serve. Description: The Human Resources Department is responsible for Administration, Classification/Compensation and Recruitment/Testing, and Employee Benefits and Services. The department directly and indirectly serves all City departments and their respective employees by attracting and retaining a qualified and diverse work force; administering local, state and federal employment laws; wage and salaries; employee and retiree healthcare benefits; and the deferred compensation program to improve organizational productivity and effectiveness while effectively communicating to employees their rights, responsibilities, benefits, and training opportunities; investigating complaints and grievances; assisting with employee relations issues; and providing mediation services. FY 2011-12 Budget Highlights: The approved amount includes the following change: miscellaneous fees and services budget reduction of $5,000 Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10* Actual $3,328,395 281,869 (425,508) $3,184,756 $19.73 2010-11* Budget $2,202,918 925,103 (601,285) $2,526,736 $15.62 2010-11 Revised $2,062,152 222,865 (472,791) $1,812,226 $11.21 2011-12 Budget $2,127,830 270,668 (357,320) $2,041,178 $12.60 Figures for the FY 2009-10 Actual and FY 2010-11 Budget include expenditures for the Tempe Learning Center, which was a part of the Human Resources Department during that time period. 2009-10 Actual Authorized Personnel Human Resources Total Full Time 20 20 Perm FTE Temp FTE 152 2010-11 Revised Full Time 17 17 Perm FTE Temp FTE 2011-12 Budget Full Time 17 17 Perm FTE Temp FTE City of Tempe 2011-12 Annual Budget Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To strive to retain a stable workforce Objective: To maintain an annual turnover rate of less than 10% Measures (Comparative Benchmark) Employee turnover rate 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget 7.6% 2.5% 5.6% 7.5% Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To strive to retain a diverse workforce Objective: To develop and maintain fair and equitable employment practices reflected by the percentage of unsubstantiated allegations and Equal Employment Opportunity Commission (EEOC) complaints filed and grievances brought forth 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget EEOC complaints 3 0 4 0 Formal grievances 1 0 1 0 Measures 153 City of Tempe 2011-12 Annual Budget Tempe Learning Center Office Internal Audit Tempe Learning Center Office Description: The Tempe Learning Center (TLC) supports the City’s mission, values and strategic initiatives through employee training and development. Working closely with the Diversity Steering Committee, the City’s six-sided employee partnership and guided by the Tempe Learning Center Board, TLC ensures that services are inclusive and meet organizational objectives. In order to prepare Tempe employees for the future and to create a learning organization, TLC provides education and career counseling and administers the tuition reimbursement program. TLC also develops and manages a mandatory skills training series for managers and supervisors, educational partnerships for academic degree and vocational/technical certifications, and workshops targeting specific training needs. FY 2011-12 Budget Highlights: The approved amount includes the following change: miscellaneous fees and services budget reduction of $14,700 2009-10* Actual $0 0 0 $0 $0.00 Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2010-11* Budget $0 0 0 $0 $0.00 2010-11 Revised $542,693 70,563 (138,743) $474,513 $2.93 2011-12 Budget $600,182 70,563 (132,568) $538,177 $3.32 Expenditures for the FY 2009-10 Actual and FY 2010-11 Budget are displayed in the Human Resources Department Budget. 2009-10 Actual Authorized Personnel Tempe Learning Center Total Full Time 0 0 Perm FTE 2010-11 Revised Temp FTE Full Time 3 3 Perm FTE Temp FTE 2011-12 Budget Full Time 3 3 Perm FTE Temp FTE Related Strategic Issue: Education Partnerships Goal: To utilize learning to support the City’s mission, values, strategic initiatives and develop a stable, capable workforce Objective: 1) To maintain an 85% knowledge, skills improvement rate among participants; and 2) obtain a 95% successful completion rate for all courses with each education partnership degree program 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Participants who rated improved knowledge, skills and competence as a result of TLC training and development programming 84% 90% 85% 85% Education partnership participants who successfully completed assigned classes 92% 95% 85% 90% Measures 154 City of Tempe 2011-12 Annual Budget This page intentionally left blank. City of Tempe 2011-12 Annual Budget Internal Audit Office Internal Audit Office Purpose: To support management in its efforts to uphold the City’s values and achieve the City’s mission by evaluating operations and encouraging the use of cost-effective internal controls to promote efficient utilization of available resources. Description: Internal Audit is responsible for enhancing the quality of City government, products and services, and providing independent, timely and relevant information concerning the City's programs, activities, and functions. This is accomplished by responding to requests to conduct objective evaluations of departments, divisions, and systems or units thereof. Internal Audit's work is vital in maintaining the general public's trust and confidence that City resources are used effectively and efficiently. Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10 Actual $485,065 4,509 24,069 $513,643 $3.18 2010-11 Budget $390,087 5,540 19,293 $414,920 $2.57 2009-10 Actual Authorized Personnel Internal Audit Total Full Time 4 4 Perm FTE 2010-11 Revised $343,952 5,540 18,301 $367,793 $2.27 2010-11 Revised Temp FTE Full Time 3 3 Perm FTE Temp FTE 0.45 0.45 2011-12 Budget $380,471 5,540 19,491 $405,502 $2.50 2011-12 Budget Full Time 3 3 Perm FTE Temp FTE 0.45 0.45 Related Strategic Issue: Technology, Economic and Community Development Goal: To achieve the City’s mission by evaluating operations and encouraging the use of cost-effective internal controls Objective: 1) To obtain management acceptance and support for 95% of recommendations; 2) respond to 100% of management’s requests for analytical and investigative assistance; and 3) record all non-procurement contracts in the City’s centralized database within 15 working days from City Council approval of the contract, 95% of the time 2009-10 Actual 100% 2010-11 Budget 95% 2010-11 Revised 100% 2011-12 Budget 95% Response to management’s requests 100% 100% 100% 100% Maintenance of the contract database 100% 95% 100% 95% Measures Support of recommendations 156 City of Tempe 2011-12 Annual Budget This page intentionally left blank. City of Tempe 2011-12 Annual Budget Police Police Office of the Chief Support Services Operations Organizational Services Purpose: To partner with the residents of Tempe to improve the quality of life in our City by identifying and resolving public safety concerns. Description: The Police Department consists of the following divisions: Office of the Chief, Operations, Support Services, and Organizational Services. The department’s responsibilities include effective and efficient police protection through investigations of criminal offenses, enforcement of state laws and City ordinances, response to resident requests for services, and maintenance of support services. Expenditures by Type Personal Services Supplies and Services Internal Services Capital Outlay Expenditure Total Per Capita (Comparative Benchmark) 2009-10 Actual $57,877,533 4,360,416 9,317,008 7,821 $71,562,779 $443.36 2010-11 Budget $50,945,295 6,210,987 9,178,083 2011-12 Budget $50,674,330 5,480,110 8,863,845 $66,334,365 $410.18 2010-11 Revised $50,521,652 4,723,847 8,893,202 4,207 $64,412,908 $396.63 Expenditures by Division Office of the Chief Operations Support Services Organizational Services Total 2009-10 Actual $2,987,833 52,458,510 8,546,986 7,569,450 $71,562,779 2010-11 Budget $2,709,117 47,760,650 8,230,997 7,633,601 $66,334,365 2010-11 Revised $2,443,350 46,818,966 8,007,901 6,872,691 $64,142,908 2011-12 Budget $2,426,101 46,796,941 8,289,327 7,508,916 $65,018,285 2009-10 Actual Authorized Personnel Office of the Chief Operations Support Services Organizational Services Total Full Time 7 396 104 55 562 Perm FTE Temp FTE 4.55 1.00 0.70 6.25 158 2010-11 Revised Full Time 4 345 96 48 493 Perm FTE Temp FTE 4.55 1.00 0.70 6.25 $65,018,285 $401.28 2011-12 Budget Full Time 4 343 96 48 491 Perm FTE Temp FTE 4.55 1.00 0.70 6.25 City of Tempe 2011-12 Annual Budget Police Office of the Chief The Police Chief is responsible for the administration and general supervision of all police operations. This office also is charged with the coordination of all investigations and procedures. Services provided by this division are as follows: (1) provide leadership, management and administration for the Police Department; and (2) continually builds partnerships with the residents and the business community. Expenditures by Type Personal Services Supplies and Services Internal Services Expenditure Total Per Capita 2009-10 Actual $980,110 8,228 1,999,495 $2,987,833 $18.51 2010-11 Budget $915,287 3,428 1,790,402 $2,709,117 $15.84 2009-10 Actual Authorized Personnel Office of the Chief Total Full Time 7 7 Perm FTE 2010-11 Revised $690,202 7,661 1,745,487 $2,443,350 $15.11 2010-11 Revised Temp FTE Full Time 4 4 Perm FTE Temp FTE 2011-12 Budget $712,450 7,568 1,703,083 $2,426,101 $14.95 2011-12 Budget Full Time 4 4 Perm FTE Temp FTE Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To provide quality police services to the Tempe community Objective: To maintain a minimum of 80% of resident satisfaction with the overall quality of local police services 2009-10 2010-11 2010-11 Actual Budget Revised Measures Overall quality of local police services* 81% 80% 2011-12 Budget 81% 80% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To suppress crime and promote the safety of the Tempe community Objective: 1) To maintain a minimum of 70% of resident satisfaction with city efforts to prevent crime; and 2) reduce overall Part I crime by 7% 2009-10 2010-11 2010-11 2011-12 Actual Budget Revised Budget Measures City efforts to prevent crime* Part I Crime Percent change ** 70% 64% 70% 9,476 9,002 9,192 8,552 (5%) 2% (7%) *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey **Measure added to the Community Attitude Survey in 2010 159 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To ensure Tempe residents feel safe Objective: 1) To maintain a minimum of 70% of resident satisfaction with feelings of neighborhood safety; and 2) maintain a minimum of 70% of resident satisfaction with feelings of city safety 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Feelings of neighborhood safety* 71% 70% 70% 70% Feelings of city safety* 71% 70% 69% 70% Measures *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 160 City of Tempe 2011-12 Annual Budget Police Operations The Operations Division is comprised of North Patrol, South Patrol, Central City, Traffic, Criminal Investigations, and Special Investigations. Services provided by this division are as follows: (1) respond to requests for service; (2) perform preliminary investigative work at crime scenes; (3) work with the community to address public safety concerns; (4) conduct vehicle patrol to provide visibility in neighborhoods; (5) provide police resources for special or unscheduled events that require additional staffing; (6) provide crime prevention and community education programs to the public, (7) investigate and report incidents of crime; (8) investigate and report motor vehicle accidents; (9) investigate and clear Part 1 and Part II crimes against persons and property; (10) investigate and prevent traffic accidents; (11) develop selective enforcement programs against special or increasing crime problems; and (12) provide specialty services including Mounted and K-9 functions. FY 2011-12 Budget Highlights: The approved amount includes the following changes: efficiency savings in the photo radar vendor payment totaling $550,000 the elimination of two park Ranger positions from the Rio Salado area the shift of three Police Officer positions to non-appropriated funds Expenditures by Type Personal Services Supplies and Services Internal Services Capital Outlay Expenditure Total Per Capita 2009-10 Actual $44,758,709 1,563,553 6,160,604 2,644 $52,458,510 $325.00 2010-11 Budget $38,695,174 2,634,400 6,292,495 2010-11 Revised $38,569,499 2,158,822 6,090,645 2011-12 Budget $38,562,967 2,121,075 6,112,899 $47,760,650 $295.20 $46,818,966 $289.51 $46,796,941 $288.82 2009-10 Actual Authorized Personnel Operations Total Full Time 396 396 Perm FTE 2010-11 Revised Temp FTE 4.55 4.55 Full Time 345 345 Perm FTE Temp FTE 4.55 4.55 2011-12 Budget Full Time 343 343 Perm FTE Temp FTE 4.55 4.55 Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To effectively investigate and clear criminal cases Objective: 1) To maintain a violent crime clearance rate above 41.1% (the clearance rate for the state); and 2) maintain a property crime clearance rate above 17.6% (the clearance rate for the state) 2009-10 2010-11 2010-11 2011-12 Actual Budget Revised Budget Measures Violent crime clearance rate 46.0% 42.0% 46.2% 42.0% Property crime clearance rate 20.4% 18.0% 19.2% 19.0% Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To effectively manage our police resources to meet the needs of the community Objective: To efficiently manage resources to meet the needs of Tempe residents with 2.1 sworn FTEs and 0.93 non-sworn FTEs per capita (1,000) 2009-10 2010-11 2010-11 2011-12 Measures (Comparative Benchmark) Actual Budget Revised Budget Sworn FTE’s per Capita (1,000) 2.2 2.1 2.1 2.1 Non-Sworn FTE’s per Capita (1,000) 1.28 0.94 0.94 0.93 161 City of Tempe 2011-12 Annual Budget Police Support Services The Support Services Division is comprised of Communications, Records, Identification, Property, and the Office of Management, Budget and Research. Support Services is responsible for providing comprehensive support services to the entire Police Department. Services provided by this division are as follows: (1) answer all incoming calls and provide 24-hour dispatch service; (2) provide radio communications between the police station and all patrol field units; (3) provide full service police records management services; (4) provide planning and research information; (5) administer departmental operating and capital improvement budgets; (6) gather and report intelligence information; and (7) serve as the central tactical crime analysis and intelligence entity within the department. FY 2011-12 Budget Highlights: The approved amount includes the following change: reduction in the County Jail cost totaling $110,000 2009-10 Actual $7,432,779 493,538 615,963 4,706 $8,546,986 $52.95 Expenditures by Type Personal Services Supplies and Services Internal Services Capital Outlay Expenditure Total Per Capita 2010-11 Budget $6,833,570 886,751 510,676 $8,230,997 $50.87 2009-10 Actual Authorized Personnel Support Services Total Full Time 104 104 Perm FTE 2010-11 Revised $6,900,914 616,820 485,960 4,207 $8,007,901 $49.52 2011-12 Budget $6,941,163 848,684 499,480 $8,289,327 $51.16 2010-11 Revised Temp FTE 1.00 1.00 Full Time 96 96 Perm FTE Temp FTE 1.00 1.00 2011-12 Budget Full Time 96 96 Perm FTE Temp FTE 1.00 1.00 Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To effectively respond to requests for Police service Objective: To respond to the highest priority emergency citizen calls for police service within an average of 5 minutes or less 2009-10 2010-11 2010-11 2011-12 Measures (Comparative Benchmark) Actual Budget Revised Budget Average response time to emergency calls (minutes) 5:17 162 5:00 5:19 5:00 City of Tempe 2011-12 Annual Budget Police Organizational Services The Organizational Services Division is comprised of Personnel Services, Detention, and Volunteers in Policing Program. Services provided by this division are as follows: (1) respond to media requests for information; (2) recruit, test, and hire sworn police officers and civilian personnel; (3) provide in-service training programs; (4) investigate internal complaints and serve as liaison with the Tempe Citizens’ Panel for Review of Police Complaints and Use of Force; (5) provide jail and booking service and transport all prisoners to the City Court; (6) audit and compliance; and (7) update and implement organizational policy and procedure. Expenditures by Type Personal Services Supplies and Services Internal Services Capital Outlay Expenditure Total Per Capita Authorized Personnel Organizational Services Total 2009-10 Actual $4,705,935 2,322,097 540,946 472 $7,569,450 $46.90 2009-10 Actual Full Perm Temp Time FTE FTE 55 0.70 55 0.70 163 2010-11 Budget $4,362,683 2,686,408 584,510 2010-11 Revised $4,361,037 1,940,544 571,110 2011-12 Budget $4,457,750 2,502,783 548,383 $7,633,601 $47.18 $6,872,691 $42.50 $7,508,916 $46.34 2010-11 Revised Full Perm Temp Time FTE FTE 48 0.70 48 0.70 2011-12 Budget Full Perm Temp Time FTE FTE 48 0.70 48 0.70 City of Tempe 2011-12 Annual Budget Public Works Public Works Engineering Field Operations Transportation Water Utilities Purpose: To build and maintain the City’s infrastructure, and deliver services that are created with and entrusted to us by our community. Description: The Public Works Department consists of Engineering, Field Operations, Transportation and Water Utilities. The Engineering division provides CIP project implementation, utility management, property addressing, right-of-way permitting, project design, and construction management. The Field Operations division is responsible for residential and commercial trash collection and disposal, maintenance and repair service to all City owned buildings, interior cleaning of all City owned buildings and park restrooms, maintaining the City fleet of vehicles and fuel dispensing, chemical spill clean-up, operation of the Household Products Collection Center, maintain all parks, special facilities and golf courses, and operation of the City golf courses. The Transportation division is responsible for transit services, traffic engineering, pavement marking and striping, traffic signal maintenance and construction, street lighting, alley maintenance, street sweeping, pavement management and street repair and construction. The Water Utilities Department is responsible for providing clean, safe drinking water, wastewater treatment and administering a water conservation program. 164 City of Tempe 2011-12 Annual Budget Expenditures by Type Personal Services Supplies and Services Contributions Capital Outlay Internal Services Expenditure Total Per Capita 2009-10 Actual $44,422,773 78,931,706 100,000 5,436,671 5,859,757 $134,750,907 $834.84 2010-11 Budget $36,679,137 91,028,953 106,484 3,712,242 5,685,343 $137,212,159 $848.46 2010-11 Revised $34,628,459 81,553,655 100,866 3,770,343 5,955,206 $126,008,529 $779.18 2011-12 Budget $36,888,487 84,701,420 106,484 3,517,148 4,701,933 $129,915,472 $801.81 Expenditures by Division Administration Engineering Field Operations Transportation Water Utilities Expenditure Total 2009-10 Actual $523,267 2,025,684 32,921,769 63,749,373 35,530,814 $134,750,907 2010-11 Budget $223,055 1,580,892 30,786,447 64,706,186 39,915,579 $137,212,159 2010-11 Revised $118,957 1,191,802 30,307,853 58,264,205 36,125,712 $126,008,529 2011-12 Budget $279,256 1,812,532 32,834,305 56,947,194 38,042,185 $129,915,472 Authorized Personnel Administration Engineering Field Operations Transportation Water Utilities Total 2009-10 Actual Full Perm Temp Time FTE FTE 3 0.49 32 245 1.00 15.22 95 1.00 1.00 139 1.00 0.49 514 3.00 17.20 165 2010-11 Revised Full Perm Temp Time FTE FTE 2 0.49 31 214 0.50 18.22 72 1.00 1.00 148 0.49 467 1.50 20.20 2011-12 Budget Full Perm Temp Time FTE FTE 5 0.50 0.49 30 212 0.50 22.12 67 0.50 1.00 146 0.49 460 1.50 24.10 City of Tempe 2011-12 Annual Budget Public Works Administration The Public Works Director has overall responsibility for providing the leadership, management, and administrative support for the Public Works Department. The department is responsible for providing high quality community services necessary to build and maintain the infrastructure of the City of Tempe. These services include engineering, refuse collection, hazardous waste and environmental compliance, park and golf course maintenance, facilities maintenance, custodial, fleet, streets maintenance, transportation and water utilities. FY 2011-12 Budget Highlights: The approved amount included the following changes: transfer 50% funding of a Deputy Public Works Director from the HURF Fund to the General Fund, position transferred to Administration reduction of $21,780 in various base budget items transfer of a Water Utility Administration Manager position and a Public Works Training Coordinator position from Water Utilities Expenditures by Type Personal Services Supplies and Services Contributions Capital Outlay Internal Services Expenditure Total Per Capita Authorized Personnel Administration Total 2009-10 Actual $586,365 23,819 50,000 71 (136,988) $523,267 $3.24 2010-11 Budget $351,931 103,713 5,618 (238,207) $223,055 $1.38 2009-10 Actual Full Perm Temp Time FTE FTE 3 0.49 3 0.49 166 2010-11 Revised $315,716 41,636 1,053 (239,448) $118,957 $0.73 2010-11 Revised Full Perm Temp Time FTE FTE 2 0.49 2 0.49 2011-12 Budget $465,919 66,933 5,618 (259,214) $279,256 $1.72 2011-12 Budget Full Perm Temp Time FTE FTE 5 0.50 0.49 5 0.50 0.49 City of Tempe 2011-12 Annual Budget Public Works Engineering The Engineering Division has the primary responsibility of providing engineering, surveying, inspection, testing and contractual services for all improvements constructed within the public rights-of-way. FY 2011-12 Budget Highlights: The approved amount includes the following changes: transfer 50% funding of a Deputy Public Works Director from the Solid Waste Fund to the General Fund elimination of an Engineering Permit Inspection Supervisor position addition of $165,000 in line item expenses for the Service Line Program reduction of $2,000 in various base budget items 2009-10 Actual $3,053,966 165,392 304 (1,193,978) $2,025,684 $12.55 Expenditures by Type Personal Services Supplies and Services Capital Outlay Internal Services Expenditure Total Per Capita Authorized Personnel Engineering Total 2010-11 Budget $2,310,786 235,293 2010-11 Revised $1,991,606 182,942 2011-12 Budget $2,368,462 412,864 (965,187) $1,580,892 $9.78 (982,746) $1,191,802 $7.37 (968,794) $1,812,532 $11.19 2009-10 Actual Full Perm Temp Time FTE FTE 32 32 2010-11 Revised Full Perm Temp Time FTE FTE 31 31 2011-12 Budget Full Perm Temp Time FTE FTE 30 30 Related Strategic Issue: Neighborhood Quality of Life and Revitalization, Technology, Economic and Community Development Goal: To efficiently implement the Capital Improvement Program by strategic planning, budgeting, design and construction of capital improvement projects which address recreational, City facilities, public utilities, transportation, and public safety needs Objective: 1) To execute the construction and/or professional service contracts within approved and appropriated budget, 100% of the time; and 2) complete the project on-time 95% of the time for the Capital Improvements Program 2009-10 Actual 67 Measures Number of active CIP construction contracts 2010-11 Budget 35 2010-11 Revised 38 2011-12 Budget 38 Number of active CIP professional service contracts 184 100 105 100 Percentage of design contracts within budget N/A N/A N/A 100% Percentage of construction contracts within budget N/A N/A N/A 100% Percentage of CIP Projects completed on-time N/A N/A N/A 95% Related Strategic Issue: Technology, Economic and Community Development Goal: 1) To ensure that the construction of private developments and related utility work is coordinated with the City’s infrastructure, transportation plan, and quality standards; and 2) ensure compliance with applicable codes and ordinances Objective: 1) To complete civil plan reviews within the scheduled time allotment 90% of the time; and 2) complete utility plan reviews within the scheduled time allotment, 90% of the time 2009-10 2010-11 2010-11 2011-12 Measures Actual Budget Revised Budget Number of civil plan sheets reviewed N/A N/A N/A 250 Percent of civil plan reviews performed within the scheduled time allotment 97% 90% 100% 90% Number of utility plan sheets reviewed Percent of utility plan reviews performed within the scheduled time allotment Off-site private development permits issued Utility permits issued 167 N/A N/A N/A 1,400 90% 294 90% 200 90% 171 90% 185 1,641 1,500 1,475 1,450 City of Tempe 2011-12 Annual Budget Public Works Field Operations The Field Operations Division is comprised of Facilities and Custodial, Fleet Maintenance, Parks Services and Solid Waste Services, including hazardous material management. The Facilities and Custodial section provides maintenance, repair service and cleaning for all City owned buildings. The Fleet Maintenance section is responsible for maintaining the City’s motor vehicle and construction equipment. The Parks Services section is responsible for managing and maintaining all of the City’s public parks, sports complexes, golf courses, rights-of-way landscaping, and multi-modal paths. Also, this section is responsible for maintenance of the City owned cemetery. The Solid Waste Services section is responsible for the collection and disposal of solid waste generated from all residential and selected commercial facilities within the City, the City’s recycling efforts, and hazardous materials management. Additionally, the Field Operations Division is responsible for environmental safety and compliance. FY 2011-12 Budget Highlights: The approved amount includes the following changes: transfer 100% of funding for two Street Maintenance Equipment Operation I/II positions from Solid Waste to the HURF fund addition of 4.0 temporary FTEs Groundskeeper positions in the General Fund elimination of a Fleet Supervisor position elimination of two Custodial supervisors, replaced with two Custodial team leads addition of $30,000 in wages for Fleet Maintenance reduction of $79,500 in various base budget items transfer Parks/Golf Supervisor position to Transportation Division The approval of additional recurring supplemental funding was also added to the General Fund as follows: $30,000 for mold, asbestos and lead paint abatement for City facilities Expenditures by Type Personal Services Supplies and Services Contributions Capital Outlay Internal Services Expenditure Total Per Capita Authorized Personnel Field Operations Total 2009-10 Actual $17,928,611 14,471,537 2010-11 Budget $15,198,957 15,708,088 17,866 2,654,500 (2,792,964) $30,786,447 $190.37 4,037,182 (3,515,561) $32,921,769 $203.96 2009-10 Actual Full Perm Temp Time FTE FTE 245 1.00 15.22 245 1.00 15.22 168 2010-11 Revised $15,016,454 14,947,855 17,866 2,709,878 (2,384,200) $30,307,853 $187.41 2010-11 Revised Full Perm Temp Time FTE FTE 214 0.50 18.22 214 0.50 18.22 2011-12 Budget $15,238,885 16,899,622 17,866 2,710,428 (2,032,496) $32,834,305 $202.65 2011-12 Budget Full Perm Temp Time FTE FTE 212 0.50 22.12 212 0.50 22.12 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Technology, Economic and Community Development Goal: To collect and dispose of all contained solid waste generated by residential customers Objective: 1) To provide excellent service to residential customers by effectively and efficiently managing solid waste collected; 2) maintain the diversion rate of residential recycling waste stream at 34%; and 3) attain resident satisfaction rates that exceed the national average for residential trash collection services, bulk item pick up/removal services, recycling services, and for alley conditions 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Residential contained/recycling cost per ton $122 $112 $108 $108 Residential recycling diversion rate 35% 29% 36% 34% 276 272 271 279 Resident satisfaction with residential trash collection services* 92% 94% 90% 90% Resident satisfaction with bulk item pick up/removal services* 82% 86% 85% 85% Resident satisfaction with recycling services* 87% 90% 88% 89% Resident satisfaction with condition of alleys* 46% 54% 53% 54% Measures (Comparative Benchmark) Residential contained solid waste tons per capita (1,000) *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey Related Strategic Issue: Technology, Economic and Community Development Goal: To collect and dispose of solid waste from our commercial customers and multi-family housing units Objective: 1) To provide an efficient and competitive solid waste operation and minimize collection cost per ton; and 2) increase number of comingled recycling customers (apartments and businesses) by 8% 2009-10 Actual Measures Commercial collection cost per ton $80 Percent increase in comingled recycling customers 2010-11 Budget 2010-11 Revised 2011-12 Budget $73 $72 $78 (9%) (1%) 8% Related Strategic Issue: Technology, Economic and Community Development Goal: To maintain the City’s fleet at the lowest cost and highest quality of service and vehicle condition Objective: To contain the growth in maintenance and repair, fuel, and capital costs as measured by cost per mile 2009-10 2010-11 2010-11 Measures (Comparative Benchmark) Actual Budget Revised 2011-12 Budget Cost per mile (maintenance and repair, fuel and capital cost): Police patrol sedans $0.51 $0.81 $0.63 $0.78 Light duty trucks $0.47 $0.70 $0.48 $0.60 Solid Waste trucks $2.65 $4.97 $3.06 $3.82 Related Strategic Issue: Technology, Economic and Community Development Goal: To utilize personnel resources in an efficient and effective manner Objective: To maximize utilization of fleet mechanic time at a target of 70% productivity (industry standard) 2009-10 2010-11 2010-11 Actual Budget Revised Measures Mechanic utilization rate 70% 169 77% 70% 2011-12 Budget 72% City of Tempe 2011-12 Annual Budget Related Strategic Issue: Technology, Economic and Community Development Goal: To maintain a high level of maintenance and service to ensure that facilities are physically safe and in good condition Objective: 1) To achieve an O&M cost per square foot that is below published industry standards; 2) achieve a 20% reduction in energy usage in buildings participating in the Arizona Public Service - Energy Service audit; and 3) complete 80% of scheduled preventative maintenance with 14 days 2009-10 Actual $3.04 2010-11 Budget $2.17** 2010-11 Revised $3.12 2011-12 Budget $3.28 Reduction in energy usage N/A N/A N/A 20% Scheduled preventative maintenance completed within 14 days N/A N/A N/A 80% Measures Operating and Maintenance cost per square foot maintained* *Excludes personnel and facilities budgeted in the Performing Arts and Transit Funds **Reflects corrected square footage Related Strategic Issue: Technology, Economic and Community Development Goal: To maintain a high level of cleanliness and maintain a sanitary environment for City facilities in an efficient and cost effective manner Objective: To achieve an O&M cost per square foot that is below published industry standards 2009-10 2010-11 Measures Actual Budget Operating and Maintenance cost per square foot cleaned* $1.84 $1.82 2010-11 Revised $1.73 2011-12 Budget $1.70 *Excludes personnel and facilities budgeted in the Performing Arts and Transit Funds Related Strategic Issue: Neighborhood Quality of Life and Revitalization, Technology, Economic and Community Development Goal: To provide golf, parks and recreational facilities for leisure opportunities that are accessible, clean, safe and friendly Objective: 1) To achieve 80% overall resident satisfaction with the quality of parks, athletic fields, and golf courses; 2) achieve staffing levels that are below published industry standards; 3) achieve full cost recovery for the Golf Enterprise Fund; and 4) achieve volunteer staffing levels per 10,000 capita that exceed published industry standards 2009-10 Actual 91% Measures (Comparative Benchmark) Resident satisfaction with the quality of City parks* 2010-11 Budget 80% 2010-11 Revised 88% 2011-12 Budget 80% Resident satisfaction with the quality of neighborhood parks* 78% 70% 79% 80% Resident satisfaction with the City’s golf courses* 71% 60% 62% 80% Resident satisfaction with the City’s outdoor athletic fields* Resident satisfaction with the quality of City recreation centers* Acres of developed park lands maintained per FTE Percent of O&M cost recovered through revenue (Golf Fund) Volunteer hours per capita (10,000) per ICMA standards 80% 83% N/A N/A N/A 70% 70% N/A N/A N/A 73% 76% N/A N/A N/A 80% 80% 43 100% 7,000 *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 170 City of Tempe 2011-12 Annual Budget Public Works Transportation The Transportation Division is responsible for all transportation activities throughout the City. The Transit section provides the following services: (1) sight restriction abatements; (2) traffic engineering studies, designs and plan approvals, (3) plan, coordinate, benchmark and provide transit services; (4) plan and administer bicycle facilities; and (5) maintenance and operation of the light rail transit system. The Streets and Traffic Operations section is responsible for the following work programs: (1) pavement marking and striping; (2) traffic signal maintenance and construction; (3) street lighting; (4) street sign fabrication, installation, and maintenance; (5) bus shelter maintenance; (6) alley reconstruction and maintenance; (7) street sweeping; (8) pavement management; (9) CIP project management/contract administration of annual street maintenance programs, including major and local street renovation and minor concrete improvements; (10) street repair; and (11) rights-of-way maintenance, including graffiti removal and tree trimming. FY 2011-12 Budget Highlights: The approved budget also includes the following reorganizations: transfer 50% funding of a Deputy Public Works Director from the HURF Fund to the General Fund, position transferred to Administration transfer 100% of funding for two Street Maintenance Equipment Operation I/II positions from Solid Waste to the HURF fund reduction of $1,220,000 in debt service payment from the HURF operating fund elimination of a Deputy Public Works Director – Transportation position transfer 50% funding for a Community Outreach/Marketing Coordinator position to the Water/WastewaterFund transfer 25% funding for a Community Outreach Marketing Supervisor position to the Solid Waste Fund and 25% to the General Fund reduction of $622,650 in various Transit Fund base budget items elimination of three Custodial positions elimination of a Traffic Signal Supervisor position transfer of a Parks/Golf/Supervisor position from Field Operations Expenditures by Type Personal Services Supplies and Services Contributions Capital Outlay Internal Services Expenditure Total Per Capita Authorized Personnel Transportation Total 2009-10 Actual $8,196,854 48,545,437 50,000 608,663 6,348,419 $63,749,373 $394.95 2010-11 Budget $6,019,781 52,327,411 83,000 273,000 6,002,994 $64,706,186 $400.11 2009-10 Actual Full Perm Temp Time FTE FTE 95 1.00 1.00 95 1.00 1.00 2010-11 Revised $5,307,656 46,652,734 83,000 273,000 5,947,815 $58,264,205 $360.28 2010-11 Revised Full Perm Temp Time FTE FTE 72 1.00 1.00 72 1.00 1.00 2011-12 Budget $5,652,108 47,162,478 83,000 45,000 4,004,608 $56,947,194 $351.47 2011-12 Budget Full Perm Temp Time FTE FTE 67 0.50 1.00 67 0.50 1.00 Related Strategic Issue: Transportation Goal: To provide reliable, safe, and professional transit services Objective: 1) To develop system schedules, manage operations and deploy quality assurance methods to achieve at least 94% on-time performance and complaints below 30 per 100,000 boardings; and 2) manage fleet procurement, maintenance, and oversight processes to ensure preventative maintenance inspections are at least 98% on-time and average miles between in-service failures is less than 20,000 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget On-time performance 92% 90% 93% 94% Complaint rate (complaints per 100,000 boardings) 41.6 40.0 33.0 30.0 Preventative maintenance inspection schedule compliance 98% 98% 99% 98% 19,075 19,000 16,453 20,000 Measures Miles between in-service failures 171 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Transportation Goal: To plan and operate multi-modal transit service in an efficient and cost effective manner Objective: 1) To plan an efficient and productive transit system by maximizing boardings per mile; and 2) minimize subsidy per boarding through effective transit planning, appropriate fare policies, and operations/financial management 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Subsidy per boarding – Bus $3.56 $3.39 $3.10 $3.31 Subsidy per boarding – Metro Light Rail $3.02 $2.78 $1.93 $2.90 Subsidy per boarding – Dial-A-Ride Measures $9.20 $10.03 $10.12 $10.29 Boardings per mile – Local Bus (> 2.0) 1.3 1.5 1.6 2.0 Boardings per mile – Circulator Bus (> 2.2) 2.0 2.1 2.1 2.2 Boardings per mile – Express Bus (> 1.0) 0.6 0.7 0.7 1.0 Boardings per mile – Metro Light Rail (> 4.5) 4.4 4.5 5.3 4.5 Boardings per hour – Dial-A-Ride (> 1.7) 1.6 1.6 1.6 1.7 Related Strategic Issue: Transportation Goal: To increase satisfaction and use of alternative modes including transit, bicycling, and walking Objective: 1) To retain Tempe’s valley leadership position by maintaining boardings per capita at 70 or higher and exceed 12 million total annual transit boardings; and 2) plan and operate alternative modes of transportation such that resident satisfaction with the quality of local transit services meets or exceeds 80% and satisfaction with the quality of walking and biking paths meets or exceeds 80% as indicated in the annual Community Attitude Survey 2009-10 Actual Measures Boardings per capita Total Ridership Local Bus Boardings 2010-11 Budget 2010-11 Revised 2011-12 Budget 73 74 72 75 11,829,313 4,567,446 12,162,500 11,634,235 12,692,000 3,662,591 4,600,000 4,774,609 4,800,000 3,670,000 3,143,824 3,800,000 3,506,062 58,000 51,347 60,000 3,800,000 3,664,455 4,000,000 Circulator Bus Boardings 58,007 Express Bus Boardings Metro Light Rail Boardings 35,207 34,500 34,279 32,000 Resident satisfaction with the quality of local transit service* Dial-A-Ride Boardings 76% 75% 76% 80% Resident satisfaction with the quality of walking and biking paths* 72% 75% 78% 80% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 172 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Transportation Goal: To provide adequate illumination of City streets Objective: 1) To respond to a street light outage within three working days 94% of the time; and 2) attain 70% resident satisfaction regarding the adequacy of City street lighting 2009-10 2010-11 2010-11 2011-12 Actual Budget Revised Budget Measures Street light outage calls repaired within three working days 96% 96% 92% 94% Resident satisfaction with the adequacy of City street lighting* 70% 65% 70% 70% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey Related Strategic Issue: Transportation Goal: To improve and ensure the safety and efficiency of the traffic signal system Objective: To respond to emergency signal service calls within 30 minutes, 98% of the time 2009-10 2010-11 Actual Budget Measures Emergency signal service calls responded to within 30 minutes Preventative maintenance of traffic signal control cabinets (annually) 2010-11 Revised 2011-12 Budget 98% 98% 98% 98% 100% 100% 100% 100% Related Strategic Issue: Transportation Goal: To meet environmental, storm water, and air quality requirements Objective: 1) To keep a minimum of 15,652 streets clean and free of dust and debris; and 2) attain an 80% resident satisfaction rate regarding the cleanliness of City streets Measures (Comparative Benchmark) 2009-10 Actual Curb miles swept 15,652 15,652 80% 77% Resident satisfaction with cleanliness of City streets* 2010-11 Budget 2010-11 Revised 2011-12 Budget 15,652 15,652 79% 80% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey Related Strategic Issue: Transportation Goal: To perform preventive roadway maintenance to extend the life of City streets Objective: 1) To maintain and repair 320,000 yards of street surface which includes crack routing, crack sealing, and edge milling; 2) attain an 80% resident satisfaction rate regarding the condition of neighborhood streets; and 3) attain an 80% resident satisfaction rate regarding the overall condition of City streets 2009-10 Actual Measures Square yards repaired 2010-11 Budget 2010-11 Revised 2011-12 Budget 1,325,000 46,000** 64,665 320,200 Resident satisfaction with the condition of neighborhood streets* 82% 80% 80% 80% Resident satisfaction with overall condition of City streets* 81% 80% 76% 80% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey **Due to significant reductions in capital improvement program funding Related Strategic Issue: Transportation Goal: To provide well-maintained and visible street signs Objective: To attain an 83% resident satisfaction rate regarding the condition and clarity of street signs 2009-10 2010-11 2010-11 Actual Budget Revised Measures Resident satisfaction with overall condition and clarity of street signs* 83% 83% 80% 2011-12 Budget 83% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 173 City of Tempe 2011-12 Annual Budget Public Works Water Utilities The Water Utilities Department is responsible for: 1) water quality testing and compliance with all environmental regulation; 2) water conservation efforts; 3) Tempe Town Lake operations and hydrology services; 4) water and wastewater treatment; 5) infrastructure maintenance; and 6) Citywide GIS mapping. FY 2011-12 Budget Highlights: The approved amount includes the following: transfer 50% funding for a Community Outreach/Marketing Coordinator position to the Water/Wastewater Fund transfer of a Water Utility Administrator position and a Public Works Training Coordinator position to Administration The approval of additional recurring supplemental funding was also added to the Water/Wastewater Fund as follows: $222,390 for environmental fees and regulatory requirements $59,178 for water GIS reimplementation $201,000 for electronic drinking water regulatory compliance database $300,000 for Rio Salado pumps $95,000 for Johnny G. Martinez Water Treatment Plant sludge bin truck $65,000 for backflow testing, repair, replacement of City owned facilities FY 2010-11 Capital Budget Operating Impacts: The department also received additional recurring funding for Capital Budget Operating Impacts as follows: $190,000 for Johnny G. Martinez Water Treatment Plant water quality upgrades $21,320 for Ken McDonald Golf Course well recharge project $745,000 for South Tempe Water Treatment Plan improvements Expenditures by Type Personal Services Supplies and Services Capital Outlay Internal Services Expenditure Total Per Capita Authorized Personnel Water Utilities Total 2009-10 Actual $14,656,978 15,725,523 790,450 4,357,863 $35,530,814 $220.13 2010-11 Budget $12,797,682 22,654,448 784,742 3,678,707 $39,915,579 $246.82 2009-10 Actual Full Perm Temp Time FTE FTE 139 1.00 0.49 139 1.00 0.49 2010-11 Revised $11,997,027 19,728,488 786,412 3,613,785 $36,125,712 $223.39 2010-11 Revised Full Perm Temp Time FTE FTE 148 0.49 148 0.49 2011-12 Budget $13,163,113 20,159,523 761,720 3,957,829 $38,042,185 $234.79 2011-12 Budget Full Perm Temp Time FTE FTE 146 0.49 146 0.49 Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To provide a safe and adequate domestic water supply to all residents, while at the same time minimizing cost Objective: 1) To monitor increases in water treatment costs for the Johnny G. Martinez and South Tempe Water Treatment Plants; and 2) maintain an Operating and Maintenance Cost per 1,000 gallons treated under 35 cents 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget $8,122,185 $9,460,826 $7,403,251 $5,711,570 Number of customer accounts 43,300 43,500 42,500 42,500 Total gallons treated (Million Gallons) 17,900 17,900 16,400 16,800 Measures (Comparative Benchmark) Total Water Treatment Operating and Maintenance Cost Operating and Maintenance Cost per 1,000 gallons treated Operating and Maintenance Cost per customer account 174 $0.45 $0.53 $0.45 $0.34 $187.58 $217.49 $174.19 $134.39 City of Tempe 2011-12 Annual Budget Related Strategic Issue: Neighborhood Quality of Life and Revitalization Goal: To provide water of the highest quality to all residents Objective: 1) To target 85% overall resident satisfaction with water service; 2) minimize the number of resident complaints related to water quality to 1% of total customer base in Tempe (1%=420 complaints); and 3) respond to water quality complaints within 24 hours, 100% of the time Measures Overall resident satisfaction with water service* Taste and odor complaints Hardness complaints Other complaints Response within 24 hours of water quality complaint 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget 85% 90% 85% 85% 15 <420 (1%) 13 <420 (1%) 7 <420 (1%) 8 <420 (1%) 22 <2100 (5%) 22 <2100 (5%) 100% 100% 100% 100% *Measured by the percent of residents that responded with “Very Satisfied” or “Satisfied” in the annual Community Attitude Survey 175 City of Tempe 2011-12 Annual Budget This page intentionally left blank. City of Tempe 2011-12 Annual Budget Capital Improvements Budget Contents Capital Improvements Program Overview .............................................................................................................................. 178 2011-12 CIP Process ............................................................................................................................................................. 179 Capital Budget Project Composition and FY 2011-12 Project Highlights ............................................................................... 180 Capital Improvements Program Financing ............................................................................................................................. 181 Capital Budget Impact on the Operating Budget .................................................................................................................... 184 Significant Nonrecurring Capital Project Expenditures by Major Program .............................................................................. 187 Capital Improvements Project Map ........................................................................................................................................ 188 2011-12 Capital Improvements Program Summary ............................................................................................................... 189 2011-12 Capital Improvements Program Source of Funds .................................................................................................... 190 Capital Budget Strategic Focus .............................................................................................................................................. 191 Capital Budget, Debt and Property Tax Levy Policy Statements ............................................................................................ 192 Legal Bonded Debt Limits ...................................................................................................................................................... 194 Long-Term Debt Summary ..................................................................................................................................................... 195 Capital Budget, Debt Service and Property Tax Rate: Ten Year Historical Trends ................................................................ 196 Capital Improvements Program Project Listing and Descriptions ........................................................................................... 197 Enterprise Program ............................................................................................................................................................ 197 2011-12 CIP Projects - Water Program ............................................................................................................................ 198 2011-12 CIP Projects - Wastewater Program ................................................................................................................... 207 Special Purpose Program ................................................................................................................................................... 211 2011-12 CIP Projects - Transit Program ........................................................................................................................... 212 2011-12 CIP Projects - Rio Salado Program .................................................................................................................... 215 General Purpose Program .................................................................................................................................................. 217 2011-12 CIP Projects - Police Protection Program ........................................................................................................... 218 2011-12 CIP Projects - Fire Protection Program ............................................................................................................... 221 2011-12 CIP Projects - Storm Drains Program ................................................................................................................. 224 2011-12 CIP Projects - Park Improvements / Recreation Program ................................................................................... 226 2011-12 CIP Projects - General Governmental Program .................................................................................................. 231 Transportation Program ...................................................................................................................................................... 236 2011-12 CIP Projects - Transportation and Rights-of-Way Improvements Program ......................................................... 237 2011-12 CIP Projects - Traffic Signals and Street Lighting Program ................................................................................ 243 177 City of Tempe 2011-12 Annual Budget Capital Improvements Program Overview Pursuant to the Tempe City Charter, the City Manager prepares and submits a Capital Improvements Program (CIP) annually to the Council. The CIP is a five-year financial plan for the acquisition, construction, expansion, or rehabilitation of infrastructure and capital assets. Capital Projects typically have one or more of the following characteristics: (1) expenditures which take place over two or more years, requiring continuing appropriations beyond a single fiscal year; (2) funding with debt because of significant costs to be shared by current and future beneficiaries; (3) creation or revitalization of a fixed asset with a minimum useful life of five years; (4) systematic asset acquisition over an extended period of time; and (5) scheduled replacement or maintenance of specific elements of physical assets. The following are some examples of items that are included within the definition of capital expenditures: Construction of new facilities Remodeling or expansion of existing facilities Purchase, improvement, or development of land Operating equipment and machinery for new and expanded facilities Planning and engineering costs related to specific capital improvements Street resurfacing, renovation, or reconstruction Emergency vehicles Information Technology infrastructure Although capital projects are scheduled throughout the five-year plan, only those projects during the first year of the plan are adopted as part of the City's annual budget. The first year of the CIP constitutes the Capital Budget. The remaining years within the CIP serve as a guide for future planning and are subject to annual review and modification in subsequent years. As shown in the charts below, the City of Tempe’s total Financial Program for fiscal year (FY) 2011-12 totals $413 million, and of this amount, approximately $49 million is for projects included in the Capital Budget. The Capital Budget consists of the following program areas: Enterprise, Special Purpose, General Purpose, and Transportation projects. The Enterprise program totals $30.2 million and includes Water and Wastewater projects which account for 61% of the total Capital Budget in FY 2011-12. The Special Purpose program includes Transit and Rio Salado projects, and represents $6.8 million, or 14%, of funded projects in FY 2011-12. The General Purpose program includes Police, Fire, Parks and General Governmental projects and totals $6.6 million. The Transportation program includes lighting and traffic signal projects, and street and sidewalk renovation and construction projects. Transportation program funding totals $5.7 million, representing 12% of the Capital Budget. Although the total size of the Capital Budget increased only two percent from year to year, the most significant change is the resurgence of General Obligation (G.O.) bond funding for the General Purpose and Transportation programs. The Enterprise program continues to be funded by user charges for water and wastewater service. Funding sources for each 2011-12 program are discussed further under the CIP Financing Section of this message. Comparison of FY 2010-11 and FY 2011-12 Capital Budgets Capital Program Enterprise Water Wastewater Special Purpose Transit Rio Salado General Purpose Police Fire Storm Drains Park Improvements General Governmental Transportation Transportation and R.O.W Traffic Signals/Street Lighting Total FY 2010-11 Budget FY 2011-12 Budget $31,046,338 12,600,000 $19,161,000 10,999,000 446,000 327,000 2,789,099 4,000,000 890,954 600,000 0 150,000 1,929,463 2,500,246 849,800 278,000 1,415,000 1,613,600 275,000 0 4,765,888 966,171 $48,264,755 $49,337,804 178 FY 2011-12 Total Financial Program Operating Budget $363.3 Capital Budget $ 49.3 Total ($ millions) Operating Budget 88% $412.6 Capital Budget 12% City of Tempe 2011-12 Annual Budget 2011-12 CIP Process The 2011-12 CIP process began in October 2010 with a staff meeting held to review the Capital Budget timeline, capital project request forms, and availability of funds. The meeting consisted of City department heads, departmental capital project managers, and Financial Services staff. Because G.O. bond funding projects had been nearly eliminated from the prior year’s (2010-11) CIP due to dismal secondary property tax revenue projections, the meeting carried a tone of uncertainty regarding the eligibility of requests for these projects in the coming year. Ultimately, the establishment of an ongoing process to assess the replacement and maintenance requirements of the City’s capital assets and infrastructure was determined to be increasingly important despite future economic uncertainty; consequently, departments were asked to submit all essential capital project requests. Because top project priorities were identified as described above rather than based on known funding availability, and because the City’s capacity to issue G.O. debt was forecast to be critically diminished at the time, specific funding sources for top priority projects were not identified. Staff recognized that an approach of establishing CIP project priorities through an asset management and public health and safety prioritization process would entail broadened funding strategies and perhaps policy adjustments for City Council consideration. 5 4 Street Repair, Reconstruction & Public Safety Communications Equipment Park Equipment & Traffic Signal Replacement Residential Streets Park Renovation New & Enhanced Recreation Facilities 2 Low Not surprisingly, the majority of the projects identified as top priorities fell into the General Purpose and Transportation programs as these programs fund most of the City’s basic streets, facilities, and capital asset replacement and maintenance efforts. New Fire Station 3 As a result, the top priority projects identified by staff were those that would replace or renovate capital assets that have exceeded their useful lives or those that would extend the life of City owned assets and infrastructure through scheduled preventative maintenance. These were projects staff felt would be irresponsible to not complete. New Fire Trucks Light Poles & City Facilities Maintenance Parks & Recreation Facilities & Infrastructure Maintenance Lake Dam Replacement Pool Renovation 1 Since project requests far exceeded estimated funding resources, the pool of submitted projects was prioritized and ranked to identify the City’s most critical capital requirements. Specifically, projects were graded based on the degree to which they contributed to the preservation of City assets, and the degree to which they addressed public health and safety concerns (depicted in the diagram to the right). High After all project submissions were received, a series of follow-up meetings were held over the ensuing months with department directors and other key department representatives to discuss changes to previously approved projects and to review new project requests. Over the same period of time, Financial Services staff integrated the latest forecast estimates for property valuation into long range debt management models to project the City’s capacity to enter into additional General Obligation debt to fund capital projects, and worked to identify all other potential project funding sources. 1 Low 2 3 4 5 High The diagram above shows how types of projects requested in the FY 2011-12 CIP process were scored and prioritized based on the degree to which they contribute to the preservation of City assets, and the degree to which they address public health and safety concerns. Projects in green categories are included in the 2011-12 adopted five year CIP; projects in yellow categories were closely considered for inclusion but ultimately excluded; projects in red categories were considered low priorities and were also excluded. During two City Council Issue Review Sessions (IRS) in February 2011, the City Council reviewed all submitted capital projects including complete descriptions of each project. City staff discussed the current condition of the City’s infrastructure, and strategies implemented by staff members to prioritize necessary projects. 179 City of Tempe 2011-12 Annual Budget In March 2011, the City Manager and Financial Services staff members worked, at the City Council’s direction, to identify a predictable revenue stream to pay existing tax-supported debt and take on new voter-approved debt to maintain the City’s existing infrastructure. Staff was also directed to reduce the amount of property tax funds held in reserve in the Debt Service Fund, once a predictable revenue stream was identified. These efforts resulted in the development of a draft property tax stabilization policy aimed at producing annual revenues sufficient to support the City’s infrastructure maintenance requirements. In April 2011, the City Manager and Financial Services staff held two public forums to solicit input from Tempe residents regarding the City’s current capacity to pay for infrastructure maintenance, the City’s prioritization of projects to be included in the 2011-12 CIP, and the proposed new funding strategies including the new property tax stabilization policy under consideration. The City Manager and Financial Services staff returned to the City Council with a formalized tax stabilization policy for further discussion in May 2011, and subsequent adoption, along with the 2011-12 CIP, on June 2, 2011. The new property tax stabilization policy is discussed in more detail under the CIP Financing section below and is included along with Capital Budget and Debt policies on page 192. Capital Budget Project Composition and FY 2011-12 Project Highlights The total five year CIP provides for 65 projects within the four major program areas discussed in the CIP Overview. Out of the 65 projects, 11 projects totaling $87,706,023 are considered to be significant and nonrecurring. Seven of 48 Projects Account for 50% of the FY 2011-12 Capital Budget $140,000 $120,000 Significant Nonrecurring Projects These major projects and associated funding sources are listed separately on page 187 for reference in the Operating Impacts section of this document, and are also described under their respective program area in the complete CIP project listings and descriptions section. All Other Projects $100,000 $80,000 $60,000 The City considers projects requiring significant nonrecurring capital expenditures to be projects that are typically “one time” in nature and involve the construction or expansion of new facilities or City infrastructure, or extensive renovation of existing facilities. $40,000 $20,000 $0 ($000) The adopted FY 2011-12 Capital Budget provides appropriations for 48 of the total 65 projects; seven of which are considered significant and nonrecurring and total $24,681,643. The four other major projects are planned for construction in the out years of the five year CIP. 2011-12 Capital Budget 5 Year CIP All other projects included in the CIP provide for periodic, ongoing or recurring expenditures to maintain and repair City’s facilities, water infrastructure, streets, and parks; and for the gradual replacement of various capital assets. Enterprise Program Project Highlights City Water system projects ($19.2 million) including: Continued water / wastewater bond funding for required water quality improvements to meet current and future water quality regulations at the Johnny G. Martinez Water Treatment Plant ($4.1 million) Continued water / wastewater bond funding for required water quality improvements to meet current and future water quality regulations at the South Tempe Water Treatment Plants ($12.1 million) City Wastewater system projects ($11 million) including: st Continued bond funding for 91 Avenue Wastewater Treatment Plant capacity expansion ($7.5 million) Special Purpose Program Project Highlights Funding for the Transit program ($2.8 million) including: New federal grant funding for design and construction improvements along Hardy Drive between Broadway road and University Drive ($1.4 million) 180 City of Tempe 2011-12 Annual Budget New federal grant funding for design and construction of a shared use path under Loop 202 at the 202 and Loop 101 traffic interchange ($1 million) Funding for the Rio Salado Program ($4 million) including: New funding for the initial design and engineering phases of the planned construction of a new Tempe Town Lake Dam ($4 million). General Purpose Program Project Highlights Funding for the City’s Police and Fire Protection Programs ($3.4 million) including: Continued bond funding for the Police / City Radio System Replacement ($1.9 million) Continued bond funding for new Fire Department Fire Truck Replacement ($600 thousand) Park Improvements / Recreation Program ($1.4 million) including: New bond funding for replacement and repair of Athletic Field Light Poles ($1 million) General Governmental Program ($1.6 million) including: Continued pay-as-you go funding for the Municipal Arts Program ($300 thousand) New bond funding for the repair, replacement and maintenance of various City facilities ($1.3 million) Transportation Program Project Highlights Funding for Transportation and Right-of-Way, and Traffic Signals and Street Lighting Improvements ($5.7 million) including: Bond funding for intersection reconstruction, and for the resurfacing, reconstruction and repair of both major City and neighborhood streets ($4.3 million) Bond funding for street light pole replacement, and various technological improvements to traffic signals ($966 thousand) Capital Improvements Program Financing As shown in the chart below, Tempe's capital program has historically been funded through a combination of bonds and other sources, including pay-as-you-go financing, outside revenues, grants and capital project fund balances. Because FY 2008-09 included the final phase of large appropriations of City transit tax and federal grants as the main funding sources for the completion of the City’s share of the metropolitan Light Rail system, CIP funding sources other than bonds saw a sharp decline between FY 2008-09 and 2009-10. Bond appropriations between the same two years decreased as a result of project progress and completion in the Enterprise Program which translated into declining funding requirements. Between FY 2009-10 and 2010-11 the Capital Budget decreased in size by 50%; not due to reduced capital needs, but solely because of the steep decline in local property values resulting from the economic downturn. Between tax year 2009-10 and 2011-12 Tempe property values fell 31% and are projected to fall by another ten percent over the next two years. 181 City of Tempe 2011-12 Annual Budget FY 2011-12 Sources of Funds $ Millions % of Total Water / Wastewater Bonds General Obligation Bonds Outside Revenue Fund Balances Pay-as-You-Go Financing $29.2 11 4.1 4.2 .8 Total $49.3 59% 22% 8% 9% 2% Since the majority of property tax revenue the City collects is restricted to the payment of debt service on bonds, the City’s ability to bond finance new projects under the General Governmental and Transportation Programs in FY 2010-11 was decimated. As a result, the City elected to severely limit planned bond-financed projects in the adopted 2010-11 CIP, and to formulate funding strategies in preparation for the 2011-12 CIP. As mentioned in the CIP Process Section above, the City Council ultimately adopted a property tax stabilization policy in June 2011 that would effectively enable the City to continue to issue bonds to maintain its basic infrastructure under the General Purpose and Transportation project programs. Prior to the adoption of this policy, annual secondary property tax collections were projected to decline from $25 million in FY 2009-10 to $14.5 million in 2011-12; declining further to $11.2 million by FY 2014-15 before property value recovery would begin to have a positive impact on tax collections in 2015-16. Not only did this scenario paint a picture wherein the City would soon not be able to pay for its currently outstanding G.O. debt, but the City would exhaust its debt service reserve within six years. Without a change to its property tax policies, the City would have had no capacity to issue new tax-supported debt for approximately another ten (10) years. From an asset preservation and public health and safety perspective, this scenario was not feasible for a responsible municipal government. The new property tax stabilization policy established the secondary property taxes to be collected in FY 2011-12, based on property values from 2005-06 (prior to the housing “bubble” and subsequent collapse), adjusted for inflation based on the Western States Consumer Price Index. The policy also limits future increases in total City property tax collections to the same CPI inflationary index, not to exceed 3.3% annually, plus taxes collected from new property added to the tax rolls. The policy also prescribed a range for the City’s debt service reserve of between 4% and 8% of the outstanding principal balance of all property tax supported debt at any time within a 20 year horizon. This policy not only provides a predictable revenue source to pay existing debt and allows for the issuance of responsible amounts of new G.O. debt, but it redirects the annual development of the CIP toward the City’s highest project priorities. The G.O. bond funded projects in the adopted 2011-12 CIP are aimed at maintaining the City’s basic infrastructure under the General Purpose and Transportation programs; there are no new system expansions or quality of life enhancing projects included. The City’s capacity to issue bonds to finance ongoing and new projects under the Enterprise Program has not faltered because the funding source used to pay debt service on these bonds is revenue collected from user fees for water and wastewater services; not property tax revenue. The Water and Wastewater capital programs, in general, saw about a $10 million decline from 2010-11 due to major projects nearing completion in the Water program, and a $5 million dollar per year st decline in budgeted payments in support of the 91 Avenue Wastewater Treatment Plant. FY 2011-12 capital budget funding sources other than bonds total $10 million which is consistent with the total amount appropriated in FY 2010-11. Federal grants received for transit and transportation related projects, and development fees associated with water / wastewater projects make up the bulk of the outside revenue budgeted. Due to considerable economy-related operating budget problems faced over the last three years, pay-as-you-go financing is limited to minor uses of Transit Fund and Water Wastewater Fund balances. The FY 2011-12 funding sources are identified in further detail in the Capital Improvements Program Source of Funds table in the Schedules and Summaries section, as well as in the individual project descriptions. DEBT MANAGEMENT PLAN In addition to the management of existing debt and associated reserves, the City also forecasts future debt within a framework of policy priorities and financial capacity. Current and anticipated capital improvement objectives, available operating revenue, tax base fluctuations, and reserve levels are all evaluated on an ongoing basis to estimate the extent to which the City may issue additional tax supported debt. Fitch AAA Moody’s Aa1 Standard & Poor’s AAA This active debt management ensures the City can efficiently analyze information such as declining revenues and assess the long-term implications for our debt portfolio in order to make proactive decisions about how much new debt capacity is available today. 182 City of Tempe 2011-12 Annual Budget Additionally, in support of the City’s new property tax stabilization policy, debt management economic models will continue to be updated annually and employed to monitor how annual secondary property tax levy amounts will impact the City’s Debt Service Reserve in future years. Debt management is also a key financial practice contributing to the maintenance of the City’s favorable bond ratings. Tempe’s current G.O. bond ratings are shown on the previous page. 183 City of Tempe 2011-12 Annual Budget Capital Budget Impact on the Operating Budget Although the City of Tempe prepares a Capital Budget separate from the Operating Budget, the two budgets are linked. These links include ongoing operating, maintenance and repair costs associated with new or renovated facilities and infrastructure, debt service payments for new debt financed projects. CIP projects also often necessitate the addition of new personnel / positions required to staff or maintain new buildings or outdoor recreational areas. On the other hand, CIP projects may produce new revenue streams in the form of fees paid for the use of new or expanded facilities, or new operating revenue generated from infrastructure enhancements that promote new economic development and activity within the City. As shown in the diagram and table below, these incremental impacts total $4.2 million in FY 2011-12. Incremental Impact of Capital Budget on 2011-12 Operating Budget New Debt Service FY 2011-12 Enterprise $2,539,413 Transportation 146,078 General Purpose New Operations and Maintenance 485,330 General Fund Operating Budget $363.3 M CIP Impact $4.2 M Capital Budget $49.3 M 97,006 Water / Wastewater Fund 956,300 Total $4,224,127 New FY 2011-12 debt service associated with the Enterprise program shown in the table above is solely attributable to new water / wastewater bonds issued in FY 2010-11. Since many of those bonds carry 20 year maturities, the associated debt service will also remain as operating budget impacts for 20 years. As is mentioned earlier in the CIP Financing Section, bonds used to finance water and wastewater capital projects, are repaid from the Water / Wastewater fund with user fees collected for water and wastewater services provided by the City. Because the Water Utilities Division updates its long range water and wastewater rate study annually, any increases to operating and debt service costs that are not offset by similar cost reductions, are factored into and paid for with future utility rate increases. New debt service associated with projects financed with General Obligation (G.O.) bonds under the Transportation and General Purpose programs will be paid out of the Debt Service Fund with secondary property tax revenue. As discussed earlier, the impact of this new debt service is factored into and will influence long range projections for new project prioritization and the City’s capacity to issue future G.O. bonds within parameters established by the City’s new property tax stabilization policy. The table below lists the projects with identified FY 2011-12 operating budget impacts by major CIP Program area. As the table shows, the major City funds with additional 2011-12 operating budget appropriations are the Water Wastewater Fund (W/WW) and the General Fund. As the table also shows, there are no new FY 2011-12 revenues or operating budget savings associated with any projects funded in 2011-12. The nature of the operating expense associated with each project is discussed on the following page. FY 2011-12 Operating and Maintenance Budget Impacts by CIP Project Program and Project Name Enterprise JGMWTP Water Quality Upgrades* Ken MacDonald Golf Course Recharge Project* Fund Total Cost W / WW $190,000 Cost Category(s) New Revenue Expenditure Reductions Fees and Services - - Net Fiscal Effect $190,000 FTE - W / WW 21,300 Fees and Services - - 21,300 STWTP Improvements* General Purpose City Regional Radio System Maintenance and Replacement W / WW 745,000 Supplies and Services - - 745,000 - General 42,000 Fees and Services - - 42,000 - Fire Laptop Replacement General 50,006 Fees and Services - - 50,006 - Technology Integrated Police Systems (TIPS) General 5,000 Fees and Services - - 5,000 - Total Operating Impacts *Indicates significant nonrecurring project $1,053,306 184 $0 $0 $1,053,306 0 City of Tempe 2011-12 Annual Budget As the Johnny G. Martinez (JGMWTP) and South Tempe Water Treatment Plant (STWTP) expansion projects progress toward completion, new operating budget appropriations are added to cover increasing costs associated with plant improvements required to meet current and future water quality regulations. The increase in the STWTP operating budget primarily addresses increased chemical expenses. The JGMWTP increase is solely for increased electricity costs. The bulk of new operating appropriations for the Ken MacDonald Golf Course Recharge project will cover land lease expenses paid to the Ken MacDonald Golf Course for a well located on the property. The radio system, laptops, and TIPs projects listed under the general purpose category above are all public safety information technology related projects. New operating appropriations for these projects are provided to cover annual hardware and software maintenance costs associated with the projects. It is important to note that all of the budgeted CIP operating impacts listed above are anticipated to become permanent annual expenditures. Because the City continues to engage in ongoing General Fund operating budget balancing efforts, Staff and the City Council weighed the importance and approval of the above General Purpose program projects against other General Fund funding requirements and budget reduction plans. Additional projected operating budget impacts associated with these projects are also discussed below in the Future Operating Impacts section along with all other capital projects that are anticipated to have impacts on future operating budgets FUTURE OPERATING BUDGET IMPACTS In addition to current year operating budget impacts, future operating costs, savings, and new revenue associated with current and planned projects are identified in the Capital Budget process to aid in long-range planning. Since the City Council only formally adopts Operating and Capital Budgets on an annual basis, the ‘out-year’ impacts represent a forecast based on the current scope of the project and inflation assumptions. As such, they will be subject to revision in future years based on changes in inflation, the scope of the project and Council and community priorities. Capital Improvements Plan Net Operating Impact Forecast: FY 2012-13 to FY 2015-16 Program and Project Name Fund Cost Category(s) Environmental Laboratory Facility* W / WW Fees and Services JGMWTP Water Quality Upgrades* W / WW STWTP Water Quality Improvement* 2012-13 2013-14 2014-15 2015-16 Total - (285,000) - - (285,000) Fees and Services 200,000 575,000 - - 775,000 W / WW Fees and Services 180,000 - - - 180,000 Tempe Rio Salado Underpass under 202 at 101* General Materials and Supplies 2,500 - - - 2,500 General Purpose Intercept Project General Fees and Services $0 $0 Enterprise Special Purpose Total Operating Impacts *Indicates significant nonrecurring project. 45,000 $427,500 $290,000 45,000 $717,500 As shown in the table above, a total of five CIP projects are projected to produce $717,500 in operating budget impacts between FY 2012-13 and FY 2015-16. The operating budget impacts listed, and also described below, represent new incremental expenditure increases, or savings in the case of the Environmental Laboratory, which are anticipated to go into effect on a permanent annual basis in the year shown. Among the five projects, four are considered significant nonrecurring projects and are projected to produce 94% or $672,500 of the estimated future operating budget impacts. Please see page 187 for a list of all significant nonrecurring projects and associated funding sources, and the complete CIP Project Listings and Descriptions section for additional project detail. As reflected in the table above, the operating budget impacts associated with the construction of the new Environmental Laboratory Facility are estimated to generate a net savings to the Water / Wastewater Fund. Although the current laboratory operating budget will transfer to the new lab once it is complete, water utilities staff estimate annual replacement costs for lab supplies will increase by $15,000 over and above annual costs at the current facility. On the other hand, water utilities staff predict new technology and equipment at the new facility will allow the department to save approximately $300,000 annually because more water testing will be performed “in house” rather than by outside laboratories. As a result, the combined operating impacts associated with the project are expected to decrease the annual operating budget by $285,000. 185 City of Tempe 2011-12 Annual Budget The water quality enhancement projects at the JGMWTP and STWTP are the primary drivers of the future operating budget impacts shown above. The projected operating budget increases will provide for anticipated future requirements for additional chemicals, increasing electricity costs, and additional waste disposal costs all to support the plants’ expanded water treatment operations. Under the Special Purpose capital program, public works operations staff identified the need for a marginal increase to the annual landscape maintenance budget to address additional anticipated maintenance requirements of a new 1200 foot shared use path which will pass under the intersection of the Loop 101 and 202 freeways (Tempe Rio Salado Underpass). The Intercept Project in the General Purpose capital program will update and improve the Police Department’s technological equipment used in the collection and analysis of criminal activity information. As shown above, the new equipment will require the addition of $45,000 to the department’s annual information technology operating budget for hardware maintenance. CAPITAL BUDGET EXPENDITURES IMPACT ON CITY SERVICES Inherent within the CIP is the fundamental intention to maintain and improve the City’s infrastructure and assets to create a positive and livable community environment, and to enhance the City’s organizational ability to deliver services to residents. Ongoing recurring projects such as waterline and street repair, park renovation, and facilities maintenance are basic examples of capital projects that perpetuate the livability of the City. Service impacts associated with significant nonrecurring capital projects included in the 5 year CIP are discussed below under their respective major program area. Enterprise Program The Environmental Laboratory project and Johnny G. Martinez and South Tempe Water Treatment Plant projects will ensure the City’s water quality is treated and tested in compliance with current and future environmental regulation under the U.S. Safe Drinking Water Act. According to the City’s 2010 Community Attitude Survey, the City’s ability to supply reliable, high quality domestic water to its residents resulted in an 85% resident satisfaction rating which is 7% above the national average of 78%. Special Purpose Program Hardy Drive Street Improvement - The design and scope of this project are the products of extensive community dialogue, and will greatly improve a one mile segment of arterial street fronted by residential homes. Improvements will focus on the safety and aesthetics of the area to better accommodate the high volume of pedestrian and bicycle traffic due to the proximity to Arizona State University. Tempe Rio Salado Underpass under 202 at 101 - The project will construct a shared use path underneath the Loop 202 Freeway at the Loop 202 and Loop 101 Freeway traffic interchange, effectively connecting the Cities of Tempe and Mesa along the south bank of the Salt River. The project involves a 12-foot wide concrete path with lighting and safety railings underneath the freeway and will link to existing and planned pathways in Tempe and Mesa. Not only will the project provide pedestrians and bicycle riders with a safe, new link to Tempe Town Lake, downtown Tempe, Arizona State University, and Metro Light Rail, but it also provides new non-motorized access between 2 major retail centers, Tempe Marketplace and Mesa Riverview. Finally, the project is located in a Tempe Enterprise Zone which supports Tempe City Council's efforts to revitalize areas that serve low income neighborhoods. Town Lake Downstream Dam Replacement - Tempe Town Lake is a major element of the City’s identity, and residents enjoy the many activities and events that take place around the lake throughout the year. Replacement of the lake’s dam(s) represents a major investment in the sustainability of this important attraction and ensures the lake will remain a pleasant and safe leisure opportunity destination for residents into the future. 186 City of Tempe 2011-12 Annual Budget Significant Nonrecurring Capital Project Expenditures by Major Program Project Name 2011-12 Funded Program Funding Source Additional Projected Needs 2012-13 2013-14 2011-12 Total 5-Year Program 2014-15 Enterprise Program Environmental Laboratory Facility Water / Wastewater Bonds 540,000 - - - - 540,000 JGMWTP Water Quality Upgrades Water / Wastewater Bonds 4,055,000 2,325,000 - - - 6,380,000 Scottsdale Road Water Transmission Main (Curry Rd. to Rio Salado Parkway) Water / Wastewater Bonds - - - - 6,253,000 6,253,000 South Tempe Water Treatment Plant Improvements Water / Wastewater Bonds 12,100,000 - - - - 12,100,000 Undergrounding of the Water Aqueduct at the JGMWTP Water / Wastewater Bonds - - - - 2,511,000 2,511,000 Ken McDonald Golf Course Recharge Project Water / Wastewater Bonds 1,649,000 1,351,000 - - - 3,000,000 Sewer Replacement / Upsize (5th Street from Price Road to Smith Road) Water / Wastewater Bonds - - - 2,576,000 - 2,576,000 Sewer Replacement / Upsize Smith Rd (Apache to University) Water / Wastewater Bonds - - - - 2,599,000 2,599,000 - 2,576,000 11,363,000 Total Enterprise Program 18,344,000 3,676,000 Special Purpose Program Hardy Drive Street Improvement Tempe Rio Salado Underpass under 202 at 101 Town Lake Downstream Dam Replacement Federal Grants - CMAQ Transit Tax 1,194,000 139,643 - - - - 1,194,000 139,643 Project Total 1,333,643 - - - - 1,333,643 943,000 - - - - 943,000 61,000 - - - - 61,000 Project Total 1,004,000 - - - - 1,004,000 Rio Salado Fund Balance 4,000,000 - - - - 4,000,000 - 1,379,780 424,000 43,605,600 - 45,409,380 4,000,000 1,379,780 424,000 43,605,600 - 49,409,380 6,337,643 1,379,780 424,000 43,605,600 - 51,747,023 424,000 46,181,600 11,363,000 Federal Grants - CMAQ Transit Tax G.O. Bonds Project Total Total Special Purpose Program Total All Programs 35,959,000 24,681,643 5,055,780 87,706,023 The eleven significant nonrecurring projects above account for 41% of the City’s total $216 million five year Capital Improvements Program. Because major nonrecurring projects often translate into an increase in services required to support new or expanded facilities, or new or expanded City programs, they often translate into increased operations and maintenance costs which impact the City’s Operating Budget. As discussed earlier, the operations and maintenance budgets in the City’s General Fund and Water / Wastewater Fund are estimated to permanently increase by a combined $1.8 million over the next five years as a result of nine of the above projects. 187 City of Tempe 2011-12 Annual Budget Capital Improvements Project Map 2 6 5 4 10 9 7 8 Location 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 3 11 1 Project Description South Tempe Water Treatment Plant Improvements Johnny G. Martinez Water Treatment Plant Improvements Ken MacDonald Golf Course Recharge Project Hardy Drive Street Improvement Tempe Rio Salado Underpass – Under 202 at 101 Town Lake Downstream Dam Replacement City Facilities Rehabilitation Asphalt Mill and Overlay Neighborhood Street Rehabilitation Intersection Reconstruction Residential Street Surface Treatments 188 City of Tempe 2011-12 Annual Budget 2011-12 Capital Improvements Program Summary Program 2011-12 Capital Budget 2012-13 Additional Projected Needs 2013-14 2014-15 Total 5-Year Program 2015-16 Enterprise Program Water 19,161,000 5,630,000 6,681,000 6,706,000 15,470,000 53,648,000 Wastewater 10,999,000 10,851,000 7,000,000 9,576,000 9,599,000 48,025,000 30,160,000 16,481,000 13,681,000 16,282,000 25,069,000 101,673,000 Transit 2,789,099 - - - - 2,789,099 Rio Salado 4,000,000 1,379,780 424,000 43,605,600 - 49,409,380 6,789,099 1,379,780 424,000 43,605,600 - 52,198,479 2,500,246 1,175,848 5,589,362 1,522,777 1,582,764 12,370,996 Fire Protection 849,800 530,000 1,267,000 580,000 - 3,226,800 Storm Drains 278,000 300,000 350,000 350,000 350,000 1,628,000 Park Improvements 1,415,000 975,000 1,335,000 2,035,000 2,125,000 7,885,000 General Governmental 1,613,600 2,015,810 1,972,110 1,642,820 1,730,690 8,975,030 Total General Purpose 6,656,646 4,996,658 10,513,472 6,130,597 5,788,454 34,085,826 4,765,888 4,558,823 6,240,555 4,374,553 3,767,035 23,706,854 966,171 1,375,000 1,152,619 605,000 605,000 4,703,790 5,732,059 5,933,823 7,393,174 4,979,553 4,372,035 28,410,644 49,337,804 28,791,261 32,011,646 70,997,750 35,229,489 216,367,950 Total Enterprise Special Purpose Program Total Special Purpose General Purpose Program Police Protection Transportation Transportation and R.O.W. Traffic Signals / Street Lighting Total Transportation TOTAL PROGRAM 189 City of Tempe 2011-12 Annual Budget 2011-12 Capital Improvements Program Source of Funds Program 2011-12 Capital Budget 2012-13 29,160,000 15,481,000 12,681,000 15,282,000 24,069,000 96,673,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 30,160,000 16,481,000 13,681,000 16,282,000 25,069,000 101,673,000 2,422,456 - - - - 2,422,456 366,643 - - - - 366,643 2,789,099 - - - - 2,789,099 Additional Projected Needs 2013-14 2014-15 Total 5-Year Program 2015-16 Enterprise Supported Water / Wastewater Bonds Development Fees Total Enterprise Supported Special Purpose Transit Federal Grants Transit Fund Total Transit Rio Salado Rio Salado Fund Balance 4,000,000 - - - - 4,000,000 Unauthorized G.O. Bonds - 1,379,780 424,000 43,605,600 - 45,409,380 Total Rio Salado 4,000,000 1,379,780 424,000 43,605,600 - 49,409,380 Total Special Purpose 6,789,099 1,379,780 424,000 43,605,600 - 52,198,479 General Obligation Bonds 4,419,634 2,980,848 7,126,312 2,965,000 2,475,000 19,966,794 Unauthorized G.O. Bonds 1,312,000 1,851,000 3,250,350 3,002,777 3,062,764 12,478,891 Water / Wastewater Fund 429,600 164,810 136,810 162,820 250,690 1,144,730 Racketeer Influenced and Corrupt Organizations Act (RICO) Funds 495,412 - - - - 495,412 6,656,646 4,996,658 10,513,472 6,130,597 5,788,454 34,085,826 5,280,231 5,394,823 5,517,638 4,979,553 4,372,035 25,544,280 Federal Grants 242,528 539,000 1,875,536 - - 2,657,064 Capital Projects Fund Balance 209,300 - - - - 209,300 General Purpose Total General Purpose Transportation General Obligation Bonds Total Transportation TOTAL PROGRAM 5,732,059 5,933,823 7,393,174 4,979,553 4,372,035 28,410,644 49,337,804 28,791,261 32,011,646 70,997,750 35,229,489 216,367,950 190 City of Tempe 2011-12 Annual Budget Capital Budget Strategic Focus The City establishes strategic issues, goals, and objectives to provide long range focus for resource allocation choices. The strategic issues, goals, and objectives are aligned to Council and community committees as follows: Education Partnerships Housing and Social Services Neighborhood Quality of Life and Revitalization Sports, Tourism, Recreation, Arts and Cultural Development Technology, Economic and Community Development Transportation The objective of each strategic committee is to delineate long-range goals, formulate a cohesive strategy for each of the defined areas, and develop action plans to advance the City towards those strategic goals. Detailed descriptions of each committee and their respective strategic focus are presented on page 39. The FY 2011-12 Capital Program organized by strategic issue is shown in the chart below. Neighborhood Quality of Life and Revitalization 14% Sports, Tourism, Recreation, Arts and Cultural Development 3% Technology, Economic and Community Development 75% Transportation 8% Water and wastewater projects comprise 61% of the total FY 2011-12 CIP and fall under the strategic area of Technology, Economic and Community Development. This is representative of the City’s continuing reinvestment in water and sewer infrastructure to support new and existing development. The initial year of funding for the replacement of the Tempe Town lake dam also falls under this strategic area because of the major contribution it lends to the City’s economic development engine. Also represented under this strategic area are the four Information Technology projects which make up the entire Police Protection program. The Neighborhood Quality of Life and Revitalization strategic area is represented by projects under the Fire Protection, Park Improvement, General Governmental and Transportation and Right-of-Way programs. Projects under these program areas support the Fire Department’s ability to respond to residents, address the maintenance and appearance of City facilities and park equipment, and provide for the maintenance of neighborhood streets. Continued capital investment in the Traffic Signals and Street Lighting, and Transit programs contribute to the Transportation strategic area; and continued funding for the Municipal Arts program and City sports facilities support the City’s focus on Sports, Tourism, Recreation, Arts and Cultural Development. 191 City of Tempe 2011-12 Annual Budget Capital Budget, Debt and Property Tax Levy Policy Statements Capital Budget Policy  Estimated costs, potential revenue and funding sources shall be identified prior to any project being submitted for Council approval. A department which anticipates a capital project exceeding its adopted budget shall submit a plan to Council addressing the issue for its prior approval.  A five-year capital improvements program, as required by City Charter, will be developed and updated annually including anticipated funding sources. In addition, a prior year capital project status report shall be presented to the Council for information purposes when the capital improvement budget is considered.  The annual operating budget will provide for the adequate maintenance and the orderly replacement of the capital plant and equipment from current revenue where possible.  Capital improvement operating budget impacts will be coordinated with the development of the Operating Budget. Future operating, maintenance, and replacement costs will be forecast as part of the City's annual long-range financial capacity study.  The City may provide for internal, pay-as-you go financing for its capital improvement program. Funding may come from fund balance reserves or any other acceptable means of funding. Debt Policy  Debt will only be used to finance long term capital improvements and not be used to finance recurring operating expenses.  In accordance with state law, the total value of General Obligation bonds issued for the purposes of water, wastewater, artificial light, open space preserves, parks, playgrounds, and recreational facilities, public safety, law enforcement, fire and emergency services facilities, and streets and transportation facilities cannot exceed 20% of assessed valuation. The total value of General Obligation bonds issued for all other purposes other than those listed above cannot exceed 6% of assessed valuation.  Debt term should match the useful life of the capital project funded.  Debt service schedules will be based upon level annual principal and interest payments.  Overlapping debt issuances shall be included in the City’s financial reports.  Authorized debt shall be limited as follows unless authorization is obtained from the City council to exceed these limits  - General obligation bonds shall follow the guidelines established in the Debt Management Plan - Excise tax bonds shall maintain revenue coverage limits of at least 3 times debt service - Improvement District bonds shall not exceed 5% of the City’s secondary assessed valuation - Short-term borrowing or lease / purchase contracts must be budgeted within the Operating Budget Benchmark ratios of per capita debt, debt service to operating revenue, and outstanding debt as a percent of full cash value will be updated regularly and incorporated into the Debt Management Plan. Property Tax Levy Policy 1) The total annual secondary tax levy shall only be used to make debt service payments on bonds issued to fund capital projects approved by the City Council in the CIP and shall not exceed an amount calculated as follows: a. For existing property, which is defined as property subject to property tax in the prior year, establish a maximum total property tax levy equal to the previous year’s total primary and secondary tax levy, adjusted by the Western States Consumer Price Index (CPI) for the last completed calendar year, not to exceed a 3.3% increase in any year. b. The primary levy on existing property shall be established first, within the limits provided in paragraph 1)a, and within limits provided in state statute. After establishing the primary levy on existing property, the secondary levy on existing property shall be established at a level that, when combined with the primary levy on existing 192 City of Tempe 2011-12 Annual Budget property, does not increase the total levy on existing property by more than CPI, and in no case by more than 3.3% of the total city property tax levy in the prior year. c. For newly-taxable property, collect a levy by applying, to the net assessed values of new properties, the same primary and secondary tax rates used to establish the levies on existing taxable property in paragraph 1)b. 2) Secondary property tax levies shall be deposited into the Debt Service Fund, from which general purpose bonded debt payments are made. The Debt Service Fund shall be maintained in accordance with generally accepted accounting principles and shall have a fund balance between 4% and 8% of outstanding general purpose debt at the end of each fiscal year. 3) Projections of revenues and debt service payments shall be used to create an annual long-range forecast, of at least 20 years, for the Debt Service Fund. Projected debt service payments associated with the approved CIP shall not cause the projected Debt Service Fund balance to drop below 4% in any year of the forecast, applying levy projections that comply with this policy for each year of the forecast. 193 City of Tempe 2011-12 Annual Budget Legal Bonded Debt Limits Under Article 9, Section 8 of the Arizona State Constitution, cities may issue general obligation bonds for purposes of water, wastewater, artificial light, open space preserves, parks, playgrounds and recreational facilities, public safety, law enforcement, fire and emergency services facilities and streets and transportation facilities up to an amount not exceeding 20% of secondary assessed property value within the City. Cities may also issue general obligation bonds for any purposes up to an amount not exceeding 6% of the secondary assessed value. All bonds issued pursuant to Article 9, Section 8 are subject to authorization by a majority vote at a city bond election. Although annual property valuation estimates are not finalized until August of each year, the City is projected to exceed its 20% debt limit in 2011-12, as shown in the table below. This projected condition will not have occurred as the result of the City issuing general obligation debt in excess of its debt limits at any time of issuance. This projection results solely from an estimated 22% decline in the City’s secondary assessed property valuation between FY 2010-11 and 2011-12; from $2.5 to $1.96 billion respectively. The value decline will in effect cause the City’s currently outstanding debt issued under the 20% limit to exceed 20% of its secondary assessed value. Even though the City’s debt issued under the 20% debt limit is projected to exceed the limit as a result of events out of the City’s control, the City may / will not incur additional debt against the 20% debt limit until such time as a combination of retiring principal associated with that debt, and rising property values produce a positive debt to value ratio. While the City may continue to issue debt within the 6% debt limit, doing so must be done with extreme vigilance in light of continued year to year property valuation uncertainty. FY 2011-12 General Obligation Bonded Debt Limits July 1, 2011 FY 2011-12 6% Projected Bond Limit (1) Outstanding G.O. Bonded Debt-Previously Issued 20% $117,439,717 $391,465,722 (8,025,000) (446,276,092) G.O. Proposed Bonds to be Sold in FY 2011-12 Storm Drains 150,000 Park Improvements 1,415,000 Public Safety / Law Enforcement 2,004,834 Fire and Emergency Services 849,800 Transportation 5,280,231 General Governmental 1,312,000 Debt Margin Available $98,402,852 (1) ($54,810,370) The FY 2011-12 Bond Limit is based upon an estimated secondary assessed value of $1,957,328,610 compared to the FY 2010-11 secondary assessed value of $2,512,995,468. 194 City of Tempe 2011-12 Annual Budget Long-Term Debt Summary Remaining General Obligation Bond Authorizations Original Authorization 2008 Voter Authorization Water / Wastewater Prior Issues 2011-12 Issue Remaining Authorization 113,300,000 52,025,302 - Police Protection 10,900,000 8,745,000 2,004,834 150,166 Fire Protection 21,110,000 250,000 849,800 20,010,200 Community Services / Park Improvements / Library 51,800,000 15,025,000 1,415,000 35,360,000 Streets / Transportation / Storm Drains 44,200,000 1,080,000 5,430,231 37,689,769 241,310,000 77,125,302 9,699,865 154,484,833 TOTAL 61,274,698 Long-Term Outstanding Debt Summary July 1 2008 2009 2010 2011 282,520,000 285,735,000 305,177,545 287,621,092 General Obligation Bonds Water / Wastewater Police Protection 32,085,000 43,675,000 49,120,000 49,720,000 Fire Protection 8,695,000 11,010,000 10,785,000 11,155,000 Storm Drains 3,775,000 3,600,000 3,495,000 2,705,000 27,575,000 32,960,000 36,688,500 34,515,000 Park Improvements Library/Museum Streets/Transportation Total G.O. Debt Outstanding 1,395,000 4,940,000 11,721,500 11,410,000 51,550,000 60,080,000 60,855,000 57,175,000 407,595,000 442,000,000 477,842,545 454,301,092 625,000 - - - 625,000 - - - - 16,720,000 16,175,000 46,930,000 Tempe Sports Authority Corp. Bonds / COP Certificates of Participation (COP) Total Tempe Sports Authority Corp. Bonds/COP Excise Tax Bonds Water / Wastewater Performing Arts 47,340,000 43,640,000 39,780,000 35,730,000 138,065,000 135,480,000 132,745,000 129,905,000 Rio Salado 32,320,000 30,760,000 29,130,000 27,435,000 General Governmental 23,400,000 29,680,000 28,815,000 35,700,000 2,050,000 1,965,000 1,875,000 1,785,000 Transit Cemetery Enterprise Total Long-Term Outstanding Debt $651,395,000 $700,245,000 $726,362,545 $731,786,092 195 City of Tempe 2011-12 Annual Budget Capital Budget, Debt Service and Property Tax Rate: Ten Year Historical Trends Budgeted Fiscal Year Net % Change Property Capital Outstanding Debt Service Secondary in Secondary Tax Rate ($) Improvements Program Principal FY End Requirements P&I Assessed Value Assessed Valuation Primary Secondary Total 2001-02 85,541,430 205,950,000 26,675,235 1,456,361,617 7.4 .53 .82 1.35 2002-03 95,318,794 252,480,000 23,996,164 1,556,492,294 6.9 .52 .83 1.35 2003-04 117,968,707 280,525,000 27,243,978 1,688,452,415 8.5 .55 .80 1.35 2004-05 177,118,222 362,225,000 27,696,707 1,768,877,385 4.8 .53 .82 1.35 2005-06 189,971,703 452,490,000 35,620,916 1,904,426,188 7.7 .52 .88 1.40 2006-07 196,728,491 581,595,000 44,105,855 2,006,703,332 5.4 .52 .88 1.40 2007-08 212,706,469 651,395,000 52,988,091 2,401,898,465 19.7 .51 .89 1.40 2008-09 168,033,325 700,245,000 59,795,499 2,656,948,194 10.6 .51 .89 1.40 2009-10 96,310,568 726,362,545 68,975,861 2,767,488,865 4.2 .49 .91 1.40 2010-11 48,264,755 731,786,092 69,753,500 2,512,995,468 (9.2) .52 .88 1.40 2011-12 49,337,804 731,845,476 66,378,628 1,957,328,610 (22.1) .66 1.13 1.79 The budgeted CIP reached a historical peak in FY 2007-08 primarily due to increased spending in the Transit Program to fund the City's portion of design and construction of the metropolitan area light rail transit system. The FY 2008-09 CIP included the City's final contribution to light rail funding as the project was completed in December 2008. While the reduction in the FY 2009-10 CIP is largely due to the decreased spending in the Transit Program, bond appropriations between FYs 2008-09 and 2009-10 also decreased as a result of project progress in the Enterprise program which reduced funding requirements. Severe local property value declines caused by the economic downturn are the principal reason the FY 2010-11 CIP was 50% less than the 2009-10 CIP. The City elected to severely limit planned G.O bond financed projects in the adopted 2010-11 CIP, and to formulate funding strategies in preparation for the 2011-12 CIP. As mentioned in the CIP Message, the City Council adopted a property tax stabilization policy in June 2011 that would effectively enable the City to continue to issue G.O bonds to maintain its basic infrastructure under the General Purpose and Transportation project programs starting again in 2011-12. The newly adopted property tax stabilization policy established the estimated amount of secondary property taxes collected in FY 201011 ($22.1 million) as a base year to which future annual levies would be tied. Prior to the adoption of this policy, annual secondary property tax collections were projected to decline to $14.5 million in 2011-12, and decline further to $11.2 million in FY 2014-15 before property value recovery would begin to have a positive impact on tax collections in 2015-16. Between FY / tax year 2009-10 and 2011-12 Tempe property values fell 31% and are expected to fall at least another ten percent over the next two years. As shown above, to collect the same amount of secondary property tax in 2011-12 as is estimated to be collected in 2010-11, with much lower total property values, a property tax rate increase of 39 cents is required. Outstanding Principal includes all forms of City debt, including general obligation, excise tax revenue, and enterprise revenue supported debt. Total budgeted debt service in FY 2011-12 declined as the result of refunding bond issuances which occurred in FY 2010-11 as well as additional planned refunding issuances. Debt Service Appropriations by Fund FY 2011-12 Debt Service Fund Transit Fund Water/Wastewater Fund Performing Arts Fund Cemetery Fund Total Principal $12,859,902 1,640,000 18,667,508 4,240,000 95,000 $37,502,410 Interest Fiscal Agent Fees $8,324,420 $315,000 3,230,000 200,000 14,583,147 350,000 1,777,788 10,000 84,863 1,000 $28,000,218 $876,000 196 Total $21,499,322 5,070,000 33,600,655 6,027,788 180,863 $66,378,628 City of Tempe 2011-12 Annual Budget Capital Improvements Program Project Listing and Descriptions Enterprise Program Water and Wastewater projects total $30.2 million in FY 2011-12 and account for 61% of the total 2011-12 appropriated CIP budget The Enterprise component of the Capital Improvements Program consists of the Water and Wastewater programs. Combined, they constitute $30.2 million of the $49.3 million Capital Improvements Program for FY 2011-12. The City's Capital Budget for this area is driven largely by federal and state compliance requirements and associated plant capacity expansions. A total of $29.2 million of Water / Wastewater Bonds will be sold to fund these projects in FY 2011-12. These bonds are repaid by user charges for service delivery in both programs. The remaining program funding will come from development fees. Major Water Program projects in FY 2011-12 include continued upgrades at the Johnny G. Martinez and South Tempe Water Treatment Plants, the final construction phase of a new Environmental Laboratory Facility, and numerous waterline improvements. Two projects, the Ken MacDonald Golf Course Recharge project and continued funding for expansion at the 91st Avenue Wastewater Treatment Plant, account for 83% of the 2011-12 Wastewater program. The program also includes funding for ongoing sewer line replacement and repair. 197 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - Water Program 2011-12 Capital Budget Additional Projected Needs Funding Source Distribution System Fittings: 3299999 Water / Wastewater Bonds 230,000 230,000 230,000 230,000 230,000 1,150,000 Environmental Laboratory Facility: 3203499 Water / Wastewater Bonds 540,000 - - - - 540,000 JGMWTP Capital Equipment Replacement: 3200089 Water / Wastewater Bonds 250,000 250,000 250,000 250,000 250,000 1,250,000 JGMWTP Water Quality Upgrades: 3201099 Water / Wastewater Bonds 4,055,000 2,325,000 - - - 6,380,000 New Production Wells: 3200019 Water / Wastewater Bonds 100,000 1,500,000 1,500,000 1,500,000 1,500,000 6,100,000 SCADA Master Plan and Implementation: 3204400 Water / Wastewater Bonds 250,000 250,000 - - - 500,000 Scottsdale Road Water Transmission Main (Curry Rd. to Rio Salado Parkway): NA Water / Wastewater Bonds - - - - 6,253,000 6,253,000 Small Meter Replacement Program 2" and under: 3209319 Water / Wastewater Bonds 175,000 175,000 175,000 200,000 200,000 925,000 South Tempe Water Treatment Plant Improvements: 3203219 Water / Wastewater Bonds 12,100,000 - - - - 12,100,000 STWTP Capital Equipment Replacement: 3200079 Water / Wastewater Bonds 250,000 250,000 250,000 250,000 250,000 1,250,000 Undergrounding of Water Aqueduct at the JGMWTP: NA Water / Wastewater Bonds - - - - 2,511,000 2,511,000 Water Line Replacement and Repair: 3299989 Development Fees 500,000 500,000 500,000 500,000 500,000 2,500,000 Waterline Replacements of High Frequency Break Areas: NA Water / Wastewater Bonds - - 3,626,000 3,626,000 3,626,000 10,878,000 Well #9 Pump to Waste Line: 3204410 Water / Wastewater Bonds 561,000 - - - - 561,000 Well Rehabilitation: 3203549 Water / Wastewater Bonds 150,000 150,000 150,000 150,000 150,000 750,000 6,681,000 6,706,000 15,470,000 Program Total 2012-13 19,161,000 198 2013-14 5,630,000 2014-15 Total 5-Year Program Project Name & Number 2015-16 53,648,000 Distribution System Fittings Project Description Estimated Project Costs This Project provides for the acquisition, assembly and installation of water works infrastructure including meters, valves, fire hydrants and water lines. This project assures that all water distribution appurtenances are maintained and replaced in accordance with all State, Federal and Industry Standards. This will make certain our residents’ health and wellbeing is protected and that we are realizing all possible revenue from our meters. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Water / Wastewater Bonds $230,000 $1,150,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,150,000 Project Number: 3299999 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $230,000 $230,000 2013-14 2014-15 2015-16 Total 5 Year $230,000 $230,000 $230,000 $1,150,000 Environmental Laboratory Facility Project Description Estimated Project Costs This is the final year of funding for this project to complete the design and construction of a Leadership in Energy and Environmental Design (LEED) certified environmental laboratory facility necessary to continue to analyze the quality of drinking water and reclaimed water supplies as required under federal and state environmental laws, and to ensure the safest possible water supply. Rapidly emerging regulations governing drinking water and reclaimed water supplies have created a nearly 5-fold increase in the last 8 years in the number of analyses that Tempe must conduct to ensure compliance with Clean Water Act and Safe Drinking Water Act requirements. Technological changes necessary to detect pollutants at much lower concentrations have also increased our laboratory footprint. $0 Land Acquisition $0 $15,000 Permit Fees Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment In FY 2013-14, a recurring operating budget decrease of $300,000 is anticipated as a result of more water testing performed in house rather than by outside laboratories. The annual operating budget for lab supplies is anticipated to increase by $15,000, for a net operating budget decrease of $285,000. 2011-12 Source of Funds Water / Wastewater Bonds Legal / Administration $540,000 $525,000 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $540,000 Project Number: 3203499 Estimated Start Date: Estimated Completion Date: 07/01/09 06/30/12 New Appropriations by Fiscal Year 2011-12 $540,000 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $540,000 199 JGMWTP Capital Equipment Replacement Project Description Estimated Project Costs This project provides for annual capital equipment replacement requirements at the Johnny G. Martinez Water Treatment Plant. Every year there are unexpected failures of pumps, valves, and other operating equipment due to fatigue, wear, structural failure and many other reasons. These failures cannot always be predicted even though the Water Utilities division is developing comprehensive preventive and predictive maintenance programs and procedures. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Water / Wastewater Bonds $250,000 $1,250,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,250,000 Project Number: 3200089 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $250,000 $250,000 2013-14 2014-15 2015-16 Total 5 Year $250,000 $250,000 $250,000 $1,250,000 JGMWTP Water Quality Upgrades Project Description Estimated Project Costs This project includes planning, design, permitting and construction of facilities to improve water quality at the Jonny G. Martinez Water Treatment Plant (JGMWTP). Additional improvements are required to meet water quality regulations. This project includes installation of enhanced coagulation treatment facilities, groundwater treatment and blending system, modifications to finished water reservoir and miscellaneous other plant improvements. Legal / Administration In FY 2011-12 this project entails a permanent operating budget increase of $190,000 for increased electricity costs to support the plant's expanded water treatment operations. An additional $200,000 and $575,000 in permanent operating costs are anticipated in Fys 2012-13 and 2013-14 respectively for chemicals, increasing electricity costs, and waste disposal. Survey / Staking $20,000 Construction Management $50,000 $0 Permit Fees $875,000 Design and Engineering $200,000 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Water / Wastewater Bonds $100,000 Land Acquisition $4,055,000 $5,135,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $6,380,000 Project Number: 3201099 Estimated Start Date: Estimated Completion Date: Ongoing 03/31/13 New Appropriations by Fiscal Year 2011-12 $4,055,000 2012-13 $2,325,000 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $6,380,000 200 New Production Wells Project Description Estimated Project Costs This project will connect three Salt River Project (SRP) wells located along the Western Canal, and drill and outfit one new City of Tempe well. Connection of the three SRP wells will be complete in FY 2011-12. The new Tempe well will be permitted during FY 2012-13 and constructed during FYs 2013-14 and 2014-15. These additional wells provide groundwater as a backup supply during drought or plant shut down and for blending to improve water quality. Legal / Administration $101,000 Land Acquisition $0 $351,000 Permit Fees Design and Engineering $1,193,000 Survey / Staking $101,000 Construction Management $698,000 Furnishings / Equipment $0 Construction / Improvement $9,955,000 Geotech / Material Testing 2011-12 Source of Funds Water / Wastewater Bonds $100,000 $101,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $6,100,000 Project Number: 3200019 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 $100,000 2012-13 $1,500,000 2013-14 $1,500,000 2014-15 2015-16 Total 5 Year $1,500,000 $1,500,000 $6,100,000 SCADA Master Plan and Implementation Project Description Estimated Project Costs SCADA (Supervisory Control and Data Acquisition) systems allows remote monitoring and operation of critical equipment. This allows efficient operation of water and wastewater facilities. The use of SCADA helps alert staff to issues such as main breaks, pump breakdowns or other equipment failures, which can have adverse environmental impacts. Over the past 10 years, the current SCADA system has evolved, become increasingly complex and equipment has been added at each of the City of Tempe Water facilities. Data provided from the current system is used to forecast future design needs, and to meet both regulatory and record retention requirements. The primary objectives of the Master Plan will be to review the current SCADA systems’ functionality, life cycle costs, and technical needs for the next ten year period and establish a business-based vision of SCADA performance and support. The final product will identify gaps in the existing SCADA system, make recommendations for standardization of equipment and technology (both hardware and software) and provide an estimate of future SCADA related costs for budgeting purposes. Legal / Administration $0 Permit Fees $14,000 Design and Engineering $52,000 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Water / Wastewater Bonds $4,000 Land Acquisition $250,000 $430,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $500,000 Project Number: 3204400 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $250,000 $250,000 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $500,000 201 Scottsdale Rd. Water Transmission Main (Curry Rd. to Rio Salado Parkway) Project Description Estimated Project Costs This project will install a redundant 30-inch water transmission main from Curry Road to Rio Salado Parkway on Scottsdale Road. This project will provide the additional hydraulic capacity needed to move water from the Johnny G. Martinez Water Treatment Plant (JGMWTP) to the downtown area and areas further to the south, as well as, improve pressures in the area north of the Salt River when moving water to the north from the South Tempe Water Treatment Plant during the annual JGMWTP shutdown. This project will also provide redundant capacity under the Salt River / Town Lake should there be a need to remove one of the existing river crossings from service for maintenance or should a pipeline failure occur. Legal / Administration $50,000 Land Acquisition $0 Permit Fees $176,000 Design and Engineering $598,000 Survey / Staking $50,000 Construction Management $349,000 Furnishings / Equipment $0 Construction / Improvement $4,980,000 Geotech / Material Testing 2011-12 Source of Funds NA $50,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $6,253,000 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/01/15 12/30/16 New Appropriations by Fiscal Year 2011-12 2012-13 $0 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $6,253,000 $6,253,000 Small Meter Replacement Program - 2" and under Project Description Estimated Project Costs This Project provides for the replacement of revenue generating water meters that are 15 years or older. This will help increase water conservation through accurate metering. By replacing these meters the City will realize increased revenue and accurate water accounting from meters that have reached the end of their useful life. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Water / Wastewater Bonds $175,000 $925,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $925,000 Project Number: 3209319 Estimated Start Date: Estimated Completion Date: 07/01/08 Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $175,000 $175,000 2013-14 2014-15 2015-16 Total 5 Year $175,000 $200,000 $200,000 $925,000 202 South Tempe Water Treatment Plant Improvements Project Description Estimated Project Costs This project includes planning, design, permitting and construction of additional treatment facilities and the repair / replacement of aging equipment at the South Tempe Water Treatment Plant. Legal / Administration Improvements are required to meet current and future water quality regulations. This project included a comprehensive study of treatment alternatives. Improvements include enhanced coagulation, new powdered activated carbon system, improved coagulant dosing, reservoir chlorine dosing system, additional sludge drying facilities, well water discharge structures, reservoir drains and replacement of the finished water pump station. Permit Fees $0 $216,652 Design and Engineering $0 Survey / Staking $108,326 Construction Management $758,281 Furnishings / Equipment In FY 2011-12 this project entails an operating budget increase of $745,000 primarily for new chemical costs to support the plant's expanded water treatment operations. An additional $180,000 in permanent operating costs beginning in FY 2012-13 is anticipated for chemicals, increasing electricity costs, and waste disposal. $0 Construction / Improvement $10,832,587 Geotech / Material Testing 2011-12 Source of Funds Water / Wastewater Bonds $108,326 Land Acquisition $12,100,000 $75,828 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $12,100,000 Project Number: 3203219 Estimated Start Date: Estimated Completion Date: Ongoing 12/31/11 New Appropriations by Fiscal Year 2011-12 2012-13 $12,100,000 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $12,100,000 STWTP Capital Equipment Replacement Project Description Estimated Project Costs This project provides for annual capital equipment replacement requirements at the South Tempe Water Treatment Plant. Every year there are unexpected failures of pumps, valves, and other operating equipment due to fatigue, wear, structural failure and many other reasons. These failures cannot be predicted even though the Water Utilities Division is developing comprehensive and predictive maintenance programs and procedures. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Water / Wastewater Bonds $250,000 $1,250,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,250,000 Project Number: 3200079 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $250,000 $250,000 2013-14 2014-15 2015-16 Total 5 Year $250,000 $250,000 $250,000 $1,250,000 203 Undergrounding of Water Aqueduct at the JGMWTP Project Description Estimated Project Costs This project provides for the replacement of the water aqueduct or flume that supplies raw water to the Jonny G. Martinez Water Treatment Plant (JGMWTP) with an underground pipe. The vulnerability assessment of the Water Utilities Division indicated that this piece of infrastructure needed addressing. Recently extensive repairs to the leaking joints in the flume have been performed and the expected life of these repairs is 7-10 years. Project necessity will be assessed within this parameter. Legal / Administration $20,000 Land Acquisition $0 $71,000 Permit Fees Design and Engineering $240,000 Survey / Staking $20,000 Construction Management $140,000 Furnishings / Equipment $0 Construction / Improvement $2,000,000 Geotech / Material Testing 2011-12 Source of Funds NA $20,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,511,000 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/15/15 03/31/17 New Appropriations by Fiscal Year 2011-12 $0 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $2,511,000 $2,511,000 Water Line Replacement and Repair Project Description Estimated Project Costs This project provides a recurring funding source to replace water lines that break during normal operation or that have reached the end of their useful life. The Water Utilities Division Integrated Master Plan identifies most of the specific waterlines that need to be replaced to meet increasing demands. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Development Fees $500,000 $2,500,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,500,000 Project Number: 3299989 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $500,000 $500,000 2013-14 2014-15 2015-16 Total 5 Year $500,000 $500,000 $500,000 $2,500,000 204 Waterline Replacements of High Frequency Break Areas Project Description Estimated Project Costs This project will be the beginning of a program to replace pipelines that are on the Water Utilities Division high frequency water break list. These pipelines are primarily located north of the US-60 in the older sections of the City and are mostly Cast Iron Pipe (CIP). Based on historical waterline break history the following areas have been identified as areas that require replacement: Legal / Administration $145,000 Land Acquisition $0 $510,000 Permit Fees Design and Engineering Stadem Drive - Miller Road to Curry Road; Farmer Avenue - 1st Street to Broadway Road; Neighborhood bordered by Southern Avenue, US-60, Mill Avenue and McAllister Road; 17th Street, 18th Street and 19th Street Hardy to Roosevelt; Dorsey Drive - University to 8th Street; Terrace Road - Broadway to Southern; Margo Drive - University Drive to 12th Place; Pebble Beach Drive and La Corta Drive from Laguna to McAllister; Geneva Drive - Priest Drive to Albert Avenue; Taylor / Papago / Van Ness west of Scottsdale Road; Lemon Street, Una Ave from Dorsey to Orange Street and Hall St. to Lemon Street. $1,735,000 Survey / Staking $145,000 Construction Management $1,010,000 Furnishings / Equipment $0 Construction / Improvement $14,440,000 Geotech / Material Testing 2011-12 Source of Funds NA $145,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $10,878,000 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/01/11 Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $0 $0 2013-14 $3,626,000 2014-15 2015-16 Total 5 Year $3,626,000 $3,626,000 $10,878,000 Well #9 Pump to Waste Line Project Description Estimated Project Costs This project will install a pump to a waste line from Well #9 to a Salt River Project irrigation box located in McClintock Drive. Well #9 is one of the City's most important ground water assets, when the South Tempe Water Treatment Plant is down for annual maintenance, this well provides water for the residents in South Tempe, and maintains system pressure in the area. Before the Well is placed into service for public consumption, the water is sent to waste until it meets drinking water standards. Currently the water is sent to a private irrigation system that is maintained by residents surrounding the well. During times of irrigation, or other seasonal events, it creates a significant constraint on the ability to run the Well as operationally necessary. Legal / Administration $5,000 Land Acquisition $0 $16,000 Permit Fees Design and Engineering $0 Survey / Staking $0 Construction Management $35,000 Furnishings / Equipment $0 Construction / Improvement $500,000 Geotech / Material Testing 2011-12 Source of Funds Water / Wastewater Bonds $561,000 $5,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $561,000 Project Number: 3204410 Estimated Start Date: Estimated Completion Date: 07/01/11 12/31/12 New Appropriations by Fiscal Year 2011-12 $561,000 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $561,000 205 Well Rehabilitation Project Description Estimated Project Costs This project involves rehabilitation and major structural repair of City supply wells. Two wells will be selected each year to be inspected by video camera, brushed and redeveloped. This will be on-going, with the goal of rehabilitating each well once every four years. Legal / Administration $5,000 Land Acquisition $0 $10,000 Permit Fees Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Water / Wastewater Bonds $150,000 $735,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $750,000 Project Number: 3203549 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $150,000 $150,000 2013-14 2014-15 2015-16 Total 5 Year $150,000 $150,000 $150,000 $750,000 206 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - Wastewater Program Project Name & Number Funding Source 2011-12 Capital Budget 91st Avenue WWTP: 3200129 Water / Wastewater Bonds 7,500,000 7,500,000 5,000,000 Ken McDonald Golf Course Recharge Project : 3209309 Water / Wastewater Bonds 1,649,000 1,351,000 Sewer Line Replacement and Repair: 3299969 Water / Wastewater Bonds Development Fees 1,000,000 500,000 Project Total Additional Projected Needs 2013-14 2014-15 2015-16 Total 5-Year Program 5,000,000 5,000,000 30,000,000 - - - 3,000,000 1,500,000 500,000 1,500,000 500,000 1,500,000 500,000 1,500,000 500,000 7,000,000 2,500,000 1,500,000 2,000,000 2,000,000 2,000,000 2,000,000 9,500,000 2012-13 Sewer Replacement / Upsize (5th Street from Price Road to Smith Road): NA Water / Wastewater Bonds - - - 2,576,000 - 2,576,000 Sewer Replacement / Upsize Smith Rd (Apache to University): 3209389 Water / Wastewater Bonds - - - - 2,599,000 2,599,000 Unlined Concrete Sewer Evaluation Study: 3204390 Water / Wastewater Bonds 350,000 - - - - 350,000 7,000,000 9,576,000 9,599,000 48,025,000 Program Total 10,999,000 207 10,851,000 91st Avenue Wastewater Treatment Plant Project Description Estimated Project Costs The 91st Avenue Wastewater Treatment Plant (WWTP) is a regional facility that is jointly owned by five valley cities and is operated by the City of Phoenix. The 91st Avenue WWTP provides wastewater treatment and transmission capacities sufficient to treat and convey the majority of Tempe's wastewater flows, including solids discharge from our Kyrene Water Reclamation Plant. This project represents Tempe's share of all capital activities at 91st Avenue WWTP including treatment capacity expansion projects, capital equipment replacement, modifications and additions to meet regulatory requirements, process enhancements and also capacity expansion of the jointly owned trunk sewer lines that convey wastewater flows to the plant. 2011-12 Source of Funds Water / Wastewater Bonds Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $7,500,000 $0 Other Project Costs $30,000,000 Total $30,000,000 Project Number: 3200129 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 $7,500,000 2012-13 $7,500,000 2013-14 $5,000,000 2014-15 2015-16 Total 5 Year $5,000,000 $5,000,000 $30,000,000 Ken McDonald Golf Course Recharge Project Project Description Estimated Project Costs This is a continuation of a project funded in fiscal year 2009/10. The project will provide the balance of funding to drill and outfit up to three aquifer storage and recovery wells at the Ken McDonald Golf Course. Legal / Administration The primary purpose of the Ken McDonald Golf Course (KMGC) Recharge Project is to fully utilize Tempe's renewable reclaimed water supplies and add to the City's Assured Water Supply Portfolio. The Project is permitted by the Arizona Department of Water Resources to store 3,400 acre-feet per year, and this volume of annual reclaimed water storage is included in Tempe's 100-year Assured Water Designation. Permit Fees In FY 2011-12 this project entails a permanent operating budget increase of $21,300 primarily for land lease expenses paid to the Ken MacDonald Golf Course for a well located on the property. Furnishings / Equipment $24,000 Land Acquisition $0 $84,000 Design and Engineering $290,000 Survey / Staking $0 Construction Management $168,000 $0 Construction / Improvement $2,410,000 Geotech / Material Testing 2011-12 Source of Funds Water / Wastewater Bonds $1,649,000 $24,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $3,000,000 Project Number: 3209309 Estimated Start Date: Estimated Completion Date: Ongoing 12/30/12 New Appropriations by Fiscal Year 2011-12 $1,649,000 2012-13 $1,351,000 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $3,000,000 208 Sewer Line Replacement and Repair Project Description Estimated Project Costs This project provides a recurring funding source to replace sewer lines that break during normal operation. The Water Utilities Division Integrated Master Plan (IMP) identified most of the specific sewer lines that need to be replaced to meet increasing wastewater flows. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Water / Wastewater Bonds $1,000,000 Development Fees $500,000 $9,500,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $9,500,000 Project Number: 3299969 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 $1,500,000 2012-13 $2,000,000 2013-14 $2,000,000 2014-15 2015-16 Total 5 Year $2,000,000 $2,000,000 $9,500,000 Sewer Replacement / Upsize (5th Street from Price Road to Smith Road) Project Description Estimated Project Costs This project will replace and upsize an estimated 2,650 feet of existing 15 inch sanitary sewer due to insufficient capacity. The new sewer will be 18 inches in diameter. The project will alleviate high flow conditions and facilitate Apache Blvd redevelopment. Legal / Administration $19,000 Land Acquisition $0 $68,000 Permit Fees Design and Engineering $231,000 Survey / Staking $19,000 Construction Management $135,000 Furnishings / Equipment $0 Construction / Improvement $1,925,000 Geotech / Material Testing 2011-12 Source of Funds NA $19,000 Utility Relocation Fees $160,000 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,576,000 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/01/14 09/30/15 New Appropriations by Fiscal Year 2011-12 $0 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $2,576,000 $0 $2,576,000 209 Sewer Replacement / Upsize Smith Road (Apache to University) Project Description Estimated Project Costs This project will replace and upsize an estimated 2,670 feet of existing 12 to 15 inch sanitary sewer due to insufficient capacity. The new sewer will be 18 inches in diameter. The project will alleviate high flow conditions and facilitate Apache Blvd redevelopment. Legal / Administration $21,000 Land Acquisition $0 $73,000 Permit Fees Design and Engineering $248,000 Survey / Staking $21,000 Construction Management $145,000 Furnishings / Equipment $0 Construction / Improvement $2,070,000 Geotech / Material Testing 2011-12 Source of Funds NA $21,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,599,000 Project Number: 3209389 Estimated Start Date: Estimated Completion Date: 07/01/15 09/30/16 New Appropriations by Fiscal Year 2011-12 2012-13 $0 $0 2013-14 2014-15 2015-16 Total 5 Year $0 $2,599,000 $2,599,000 $0 Unlined Concrete Sewer Evaluation Study Project Description Estimated Project Costs This project will evaluate approximately 2-miles of existing 27 and 36-inch unlined concrete sewer originally installed in the early 1970's. It is located on Scottsdale Road from Gilbert Drive to Rio Salado Parkway, on Rio Salado Parkway from Scottsdale Road to Perry Lane, and on Perry Lane from Rio Salado Parkway to 5th Street. The evaluation will determine the condition of the unlined concrete sewer and make recommendations for rehabilitation of the sewer as needed. Legal / Administration $0 Land Acquisition $0 The purpose of this study is to determine the scope, schedule and cost of rehabilitating this unlined sewer. Unlined sewers are vulnerable to hydrogen sulfide (H2S) that is common in sanitary sewers which typically causes the crown (top) of the pipe to slowly erode and if not rehabilitated can eventually fail. Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Design and Engineering 2011-12 Source of Funds Water / Wastewater Bonds $10,000 Permit Fees $350,000 $340,000 Total $350,000 Project Number: 3204390 Estimated Start Date: Estimated Completion Date: 07/01/11 03/30/12 New Appropriations by Fiscal Year 2011-12 $350,000 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $350,000 210 City of Tempe 2011-12 Annual Budget Special Purpose Program Transit and Rio Salado projects total $6.8 million in FY 2011-12 and account for 14% of the total 2011-12 appropriated CIP budget The Special Purpose component of the Capital Improvements Program includes the Transit and Rio Salado capital programs. Combined, they account for $6.8 million of the $48.3 million Capital Budget for FY 2011-12. Federal grants are the primary funding source for the Transit Program in FY 2011-12. Federal Congestion Mitigation and Air Quality grants will be used to construct pedestrian and bicycle improvements along a 1 mile section of Hardy Road, and to construct a pedestrian and bicycle path underneath the intersection of the Loop 202 and 101 Freeways. The 2011-12 Rio Salado capital program consists of a single, important project: $4 million in Rio Salado fund balance is appropriated for the initial design and engineering phase of the multi-year project to replace the Tempe Town lake downstream dam (pictured above). 211 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - Transit Program 2011-12 Capital Budget Additional Projected Needs Funding Source CCTV Monitoring Stations - LRT Signal Intersections: 6004360 Federal Grant - CMAQ 285,456 - - - - 285,456 Transit Fund Project Total 139,643 425,099 - - - - 139,643 425,099 Hardy Drive Street Improvement: 6004370 Federal Grant - CMAQ 1,194,000 - - - - 1,194,000 166,000 - - - - 166,000 1,360,000 - - - - 1,360,000 943,000 - - - - 943,000 61,000 1,004,000 - - - - 61,000 1,004,000 2,789,099 - - - - 2,789,099 Transit Fund Project Total Tempe Rio Salado Underpass under 202 at 101: 6004310 Program Total Federal Grant - CMAQ Transit Fund Project Total 212 2012-13 2013-14 2014-15 Total 5-Year Program Project Name & Number 2015-16 CCTV Monitoring Stations - LRT Signal Intersections Project Description Estimated Project Costs This project will purchase 25 Closed Circuit Television (CCTV) cameras to install at Light Rail traffic signals. At the end of this project each of the light rail traffic signals (total 30) will be equipped with a CCTV camera. The video monitoring stations will provide direct and immediate access to local traffic conditions. Accident and incident management will be enhanced by this additional monitoring capability while simultaneously allowing the transportation management staff the ability to monitor private and public transportation vehicles throughout the Tempe segment of this regionally significant transportation facility, maximizing multi-modal coordination and safety operations. Data gathered locally from this CCTV network can be shared between agencies and across jurisdictions including MAG, Valley Metro Rail as well as the cities of Phoenix and Mesa. This project promotes multi-jurisdictional congestion relief goals by providing a platform to better coordinate LRT traffic signals as well as to respond to accidents / incidents in a more cooperative and efficient process. $285,456 Transit Fund $139,643 $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment 2011-12 Source of Funds Federal Grants - CMAQ Legal / Administration $425,099 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $425,099 Project Number: 6004360 Estimated Start Date: Estimated Completion Date: 07/01/11 06/30/12 New Appropriations by Fiscal Year 2011-12 2012-13 $425,099 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $425,099 Hardy Drive Street Improvement Project Description Estimated Project Costs The Hardy Road Pedestrian and Bicycle Improvement Project is approximately 1 mile in length between Broadway Road and University Drive. The project consists of pedestrian and bicycle facility improvements along a collector street fronted primarily by single family residential units. The proposed project area has a high volume of pedestrian and bicycle travel due to its proximity to ASU, Downtown Tempe, Rio Salado, and the high industrial and office employment area south of the project. Area residents are advocating retaining the neighborhood character of the street to reflect the residential uses which differ drastically from the area just south of the project. Project elements will include geometric changes to the street including striping for bike lanes, widening of sidewalks, reduction of existing travel lane widths, construction of planted medians, protection from intrusion of commercial truck traffic, improved pedestrian safety, reduction of speed limits, construction of mid-block crossings and providing transit, bicycle and pedestrian amenities. Legal / Administration $34,000 Design and Engineering $114,000 Survey / Staking $10,000 Construction Management $67,000 Furnishings / Equipment $0 Construction / Improvement $950,000 Geotech / Material Testing $10,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $1,194,000 Transit Fund $0 Permit Fees 2011-12 Source of Funds Federal Grants - CMAQ $10,000 Land Acquisition $0 Other Project Costs $166,000 $165,000 Total $1,360,000 Project Number: 6004370 Estimated Start Date: Estimated Completion Date: 07/01/11 12/31/12 New Appropriations by Fiscal Year 2011-12 $1,360,000 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $1,360,000 213 Tempe Rio Salado Underpass under Loop 202 at Loop 101 Project Description Estimated Project Costs The project will construct approximately 1,200 feet of a shared use path underneath Loop 202 at the 202 and Loop 101 Traffic Interchange connecting Tempe and Mesa along the south bank of the Salt River. The project involves a 12-foot wide concrete path with lighting and safety railings underneath the freeway and would link to existing and planned pathway in Tempe and Mesa. Legal / Administration The project provides a non-motorized link along a regionally significant riparian corridor between two major commercial retail centers, Tempe Marketplace and Mesa Riverview. Additionally, the project will eliminate the main obstruction connecting Tempe to Mesa and will link to the Scottsdale Indian Bend Wash, Rio Salado, Downtown Tempe, Arizona State University, and Metro Light Rail. Finally the project is located in a Tempe Enterprise Zone which supports Tempe City Council's efforts to revitalize areas that serve low income neighborhoods. Permit Fees $28,000 Design and Engineering $96,000 $8,000 Construction Management $56,000 Furnishings / Equipment $0 Construction / Improvement $800,000 Geotech / Material Testing 2011-12 Source of Funds $943,000 Transit Fund $0 Survey / Staking Beginning in FY 2012-13 this project entails a permanent operating budget increase of $2,500 for annual landscape maintenance. Federal Grants - CMAQ $8,000 Land Acquisition $61,000 $8,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,004,000 Project Number: 6004310 Estimated Start Date: Estimated Completion Date: 07/01/11 12/31/12 New Appropriations by Fiscal Year 2011-12 $1,004,000 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $1,004,000 214 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - Rio Salado Program Project Name & Number Funding Source 2011-12 Capital Budget Town Lake Downstream Dam Replacement: 6503069 Rio Salado Fund Balance 4,000,000 - - - - 4,000,000 Unauthorized G.O. Bonds Project Total 4,000,000 1,379,780 1,379,780 424,000 424,000 43,605,600 43,605,600 - 45,409,380 49,409,380 4,000,000 1,379,780 424,000 43,605,600 - 49,409,380 Program Total 215 Additional Projected Needs 2012-13 2013-14 2014-15 Total 5-Year Program 2015-16 Town Lake Downstream Dam Replacement Project Description Estimated Project Costs This project will replace the existing Tempe Town Lake Dam. Newly proposed (pending City Council approval) hybrid technology will allow the use of the existing piers and foundation to replace approximately 840 lineal feet of dam, but may require changes to the mechanical systems. Construction drawings should begin no later than 2011 to allow enough time for permits and approvals of the new dam. Legal / Administration $720,000 Land Acquisition $0 Permit Fees $1,317,380 Design and Engineering $4,000,000 Survey / Staking $300,000 Construction Management $2,000,000 Furnishings / Equipment $0 Construction / Improvement $40,000,000 Geotech / Material Testing 2011-12 Source of Funds Rio Salado Fund Balance $720,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $4,000,000 $0 Other Project Costs $352,000 Total $49,409,380 Project Number: 6503069 Estimated Start Date: Estimated Completion Date: 07/01/11 12/31/15 New Appropriations by Fiscal Year 2011-12 $4,000,000 2012-13 $1,379,780 2013-14 $424,000 2014-15 2015-16 Total 5 Year $43,605,600 $0 $49,409,380 216 City of Tempe 2011-12 Annual Budget General Purpose Program General Purpose projects total $6.7 million in FY 2011-12 and account for 13% of the 2011-12 appropriated CIP budget The General Purpose component of the Capital Improvements Program includes Police Protection, Fire Protection, Storm Drains, Park Improvements, and General Governmental programs. Combined, they constitute $6.7 million of the $49.3 million Capital Improvements Budget for FY 2011-12. A total of $5.7 million in General Obligation bonds will be sold to fund projects across the five program areas. The balance will come from the Water / Wastewater fund, and from Racketeer Influenced and Corrupt Organizations Act (RICO) funds. Major projects in FY 2011-12 include continued improvements to the City’s Regional Radio System, New Fire Apparatus (trucks), repair and replacement of aging lighting poles at the City’s athletic facilities, and numerous ongoing facilities and capital asset repair and replacement projects. 217 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - Police Protection Program Funding Source 2011-12 Capital Budget 2012-13 2013-14 2014-15 2015-16 General Obligation Bonds Unauthorized G.O. Bonds 1,914,834 - 1,125,848 - 1,526,824 - 1,472,777 1,532,764 4,567,506 3,005,541 Project Total 1,914,834 1,125,848 1,526,824 1,472,777 1,532,764 7,573,046 Racketeer Influenced and Corrupt Organizations Act (RICO) Funds 495,412 - - - - 495,412 PD Mobile Communication & Laptops: 5509189 General Obligation Bonds - - 2,647,488 - - 2,647,488 Unauthorized G.O. Bonds Project Total - - 1,265,050 3,912,538 - - 1,265,050 3,912,538 Technology Integrated Police Systems (TIPS): 556680 General Obligation Bonds 90,000 50,000 - - - 140,000 Unauthorized G.O. Bonds Project Total 90,000 50,000 150,000 150,000 50,000 50,000 50,000 50,000 250,000 390,000 2,500,246 1,175,848 5,589,362 1,522,777 1,582,764 12,370,996 Project Name & Number City Regional Radio System Maintenance and Replacement: 5501989 Intercept Project: 5504330 Program Total 218 Additional Projected Needs Total 5-Year Program City Regional Radio System Maintenance and Replacement Project Description Estimated Project Costs This ongoing project provides for the replacement of outdated radio equipment for the Police Department and other City radio users, allowing Tempe to participate in the establishment of long-term public safety interoperability in the Phoenix metro area. The Police / City Radio System is an 800Mhz digital trunk system that allows day-to-day, real time communication over a single radio system in partnership with thirteen other agencies. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 In FY 2011-12 this project entails a permanent operating budget increase of $42,000 to pay for annual hardware and software maintenance costs associated with the project. Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 2011-12 Source of Funds General Obligation Bonds ITD / Telecommunications $1,914,834 $7,573,046 Other Project Costs $0 Total $7,573,046 Project Number: 5501989 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 $1,914,834 2012-13 $1,125,848 2013-14 $1,526,824 2014-15 2015-16 Total 5 Year $1,472,777 $1,532,764 $7,573,046 Intercept Project Project Description Estimated Project Costs This project will update technology to allow the Tempe Police Department to access investigative techniques that effectively help in controlling, reducing, and preventing criminal activities. Technical solutions are available that will improve the use of currently owned equipment and provide automated collection, management, analysis and dissemination of data. With improved data investigators are able to enhance their ability to investigate crimes and formulate action plans to further reduce criminal activity and its associated drug-related crimes and violence. An effective tool in fighting criminal organizations and solving complex crimes is communication and association analysis. The ability to trace a particular communication to its source will provide investigative leads, suspects and likely locations for solving crimes, capturing criminals, and effectively prosecuting cases. Beginning in FY 2012-13 this project entails a permanent operating budget increase of $45,000 to pay for annual hardware maintenance costs associated with the project. 2011-12 Source of Funds RICO Funds Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $495,412 $495,412 Other Project Costs $0 Total $495,412 Project Number: 5504330 Estimated Start Date: Estimated Completion Date: 07/01/11 06/30/12 New Appropriations by Fiscal Year 2011-12 $495,412 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $495,412 219 PD Mobile Communication and Laptops Project Description Estimated Project Costs This project replaces the Police Department ruggedized laptops and mounts that support laptops in vehicles used in day to day operations. Replacement will ensure laptop functionality and limit failure in the field which can result in delayed response to citizen calls for service, and increase departmental and City liability due to officer reliance on laptops to communicate with dispatch, other officers and supervisors, write and submit their reports; and access necessary information sources to perform their daily job functions. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment 2011-12 Source of Funds NA $3,912,538 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $3,912,538 Project Number: 5509189 Estimated Start Date: Estimated Completion Date: 07/01/13 06/30/14 New Appropriations by Fiscal Year 2011-12 2012-13 $0 $0 2013-14 $3,912,538 2014-15 2015-16 Total 5 Year $0 $0 $3,912,538 Technology Integrated Police Systems (TIPS) Project Description Estimated Project Costs The Technology Integrated Police Systems (TIPS) project provides the necessary resources to incorporate new technology in the Police Department, as well as resources to upgrade and interface existing automated systems. Planned projects include the continued development of the wireless infrastructure to accommodate additional small factor wireless devices, two factor authentication for wireless devices to meet future DPS-FBI security mandates, new hardware for increased data exchange and storage needs such as an upgrade to the PDWeb Server (COP), and an upgrade to our Digital Darkroom (photo evidence) system. Additional new technology and upgrades include the addition of a Scene Diagram Laser machine for Traffic Investigations, new hardware associated with the relocation of SIB to the Police HQ building, new hardware and software to support the establishment of the Criminal and Intelligence Center at the Police HQ station, replacement of printers and other specialty hardware, and upgrades to software. In FY 2011-12 this project entails a permanent operating budget increase of $5,000 to pay for annual hardware and software maintenance costs associated with the 2011-12 Source of Funds General Obligation Bonds $90,000 Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $390,000 Other Project Costs $0 Total $390,000 Project Number: 556680 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 $90,000 2012-13 2013-14 2014-15 2015-16 Total 5 Year $50,000 $150,000 $50,000 $50,000 $390,000 220 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - Fire Protection Program 2011-12 Capital Budget Additional Projected Needs Funding Source Fire Apparatus Replacement: 5603619 General Obligation Bonds 590,000 500,000 500,000 500,000 - 2,090,000 Fire Laptop Replacement: 5603629 General Obligation Bonds 159,800 30,000 30,000 30,000 - 249,800 Fire Station #2: 5603609 General Obligation Bonds 100,000 - - - - 100,000 Replace Burn Room at Fire Training Center: NA General Obligation Bonds - - 737,000 50,000 - 787,000 849,800 530,000 1,267,000 580,000 - 3,226,800 Program Total 221 2012-13 2013-14 2014-15 Total 5-Year Program Project Name & Number 2015-16 Fire Apparatus Replacement Project Description Estimated Project Costs This project addresses public and firefighter safety through scheduled replacement of fire apparatus (trucks). Fire apparatus are evaluated for replacement after 10 years or when mileage exceeds 120,000. The Department now has five apparatus that are 11 to 13 years old and six apparatus that exceed 145,000 miles each. Older apparatus require increased repair and maintenance, which presents delays in response times. This delay in response time is a serious concern, as firefighters are the first responders to citizens with emergency medical problems, fires and various other service calls. The Fire Department is currently leasing (for one year) and evaluating a new “Concept Pumper” for a period of one year. While the Department is still in the evaluation process, early results indicate there are several aspects of the Concept Pumper that will be incorporated into the future purchase of new apparatus. $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment 2011-12 Source of Funds General Obligation Bonds Legal / Administration $590,000 $2,090,000 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,090,000 Project Number: 5603619 Estimated Start Date: Estimated Completion Date: 07/01/11 12/30/16 New Appropriations by Fiscal Year 2011-12 2012-13 $590,000 $500,000 2013-14 2014-15 2015-16 Total 5 Year $500,000 $500,000 $0 $2,090,000 Fire Laptop Replacement Project Description Estimated Project Costs This project will provide for the replacement of ruggedized laptop computers used by Fire personnel in the field for electronic patient care (ePCR), and development of a wireless fire apparatus infrastructure to accommodate small devices (cell phones), laptops and heart monitors. This will enhance the wireless transfer of critical patient information from both the laptop units and heart monitors while en-route to the hospital. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 The unique advantage of using mobile computers is it allows the Fire paramedic to stay focused on providing patient care rather than filling out paperwork. The Fire Department is using 18 ruggedized laptops and plans to expand this to 22 laptops. These ruggedized laptops are used daily on over 13,000 annual EMS calls. Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Recurring operating budget costs of $50,006 associated with this project include monthly costs for the wireless phone cards and software maintenance for new software. Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 2011-12 Source of Funds General Obligation Bonds ITD / Telecommunications $159,800 $249,800 Other Project Costs $0 Total $249,800 Project Number: 5603629 Estimated Start Date: Estimated Completion Date: Ongoing 06/30/15 New Appropriations by Fiscal Year 2011-12 2012-13 2013-14 2014-15 2015-16 Total 5 Year $159,800 $30,000 $30,000 $30,000 $0 $249,800 222 Fire Station #2 Project Description Estimated Project Costs Fire Station 2 has multiple identified functional and structural deficiencies which compromise the station's safe and reliable operation. Funding for this project will be utilized for required repair and renovations to Fire Station 2 including: roof renovation, repair and renovation of wall and floor finishes, upgrades to the exhaust ventilation system, repair and replacement of equipment and furnishings, and HVAC maintenance. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Within the next fiscal year the Fire Department plans to procure a space needs study to assess the station's overall operational requirements and capital condition. Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds General Obligation Bonds $100,000 $100,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $100,000 Project Number: 5603609 Estimated Start Date: Estimated Completion Date: 07/01/11 06/30/12 New Appropriations by Fiscal Year 2011-12 $100,000 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $100,000 Replace Burn Room at Fire Training Center Project Description Estimated Project Costs This project will renovate and modernize the existing fire training burn room and training tower at the Fire Training Center, which was built in 1993. Modern burn room facilities are conducive to firefighters’ learning by preparing them for real life situations they will encounter. Given the critical nature of this training for firefighter safety, it is essential that the burn room be kept in a functioning state. Legal / Administration $6,000 Land Acquisition $0 Permit Fees $0 Design and Engineering The extensive use of this facility and the significant benefits derived from firefighters' training, which directly impacts the delivery of service to the community, has exceeded expectations. $72,000 Survey / Staking $6,000 Construction Management $42,000 Furnishings / Equipment $0 Construction / Improvement $600,000 Geotech / Material Testing 2011-12 Source of Funds $6,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $55,000 Total $787,000 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/01/13 06/30/15 New Appropriations by Fiscal Year 2011-12 $0 2012-13 $0 2013-14 2014-15 2015-16 Total 5 Year $737,000 $50,000 $0 $787,000 223 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - Storm Drains Program 2011-12 Capital Budget Additional Projected Needs 2013-14 2014-15 Funding Source Storm Drain Improvements: 5899971 General Obligation Bonds 150,000 300,000 350,000 350,000 350,000 1,500,000 Storm Water Monitoring Upgrades: 5804340 Water / Wastewater Fund 128,000 - - - - 128,000 278,000 300,000 350,000 350,000 350,000 1,628,000 Program Total 224 2012-13 Total 5-Year Program Project Name & Number 2015-16 Storm Drain Improvements Project Description Estimated Project Costs The City of Tempe maintains over 80 major storm drain retention basins with over 103 miles of storm drain pipes and over 1,600 catch basins, storm drain manholes and other structures. This project provides for the construction of minor storm drain extensions and improvements. The purpose is to relieve localized problems for replacement and / or upgrades associated with street storm drain systems as well as various storm water retention facilities. The locations become determined during and after major water events. Legal / Administration $31,694 Land Acquisition $0 Permit Fees $11,885 Design and Engineering $79,235 Survey / Staking $66,027 Construction Management $0 Furnishings / Equipment $1,187,804 Construction / Improvement 2011-12 Source of Funds General Obligation Bonds $150,000 $95,079 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,500,000 Project Number: 5899971 Estimated Start Date: Estimated Completion Date: 07/01/11 Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $150,000 $300,000 2013-14 2014-15 2015-16 Total 5 Year $350,000 $350,000 $350,000 $1,500,000 Storm Water Monitoring Upgrades Project Description Estimated Project Costs This project will install a new storm water sampling location and upgrades to four existing sampling locations pursuant to public noticed City of Tempe Arizona Pollutant Discharge Elimination System (AZPDES) Storm water Permit. The new site (TD-01) requires installation of a concrete slab, sampling cabinet, electrical service, rain gauge, communication equipment, and conduit for rain gauge wiring, electrical, and sampling equipment. The new site will also require sampling equipment and flow metering equipment. All other sites, (SR-08, SR-04, TD-03, and KP-01) will require upgrades to sampling equipment and flow metering equipment. Legal / Administration 2011-12 Source of Funds Water / Wastewater Fund $1,000 Land Acquisition $128,000 $0 Permit Fees $2,000 Design and Engineering $8,000 Survey / Staking $1,000 Construction Management $5,000 Furnishings / Equipment $40,000 Construction / Improvement $70,000 Geotech / Material Testing $1,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $128,000 Project Number: 5804340 Estimated Start Date: Estimated Completion Date: 07/01/11 01/01/12 New Appropriations by Fiscal Year 2011-12 $128,000 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $128,000 225 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - Park Improvements / Recreation Program Project Name & Number Funding Source 2011-12 Capital Budget Athletic Field Lighting Replacement: 6303089 General Obligation Bonds 1,015,000 515,000 515,000 515,000 515,000 3,075,000 Cox Splash Playground Renovation: NA General Obligation Bonds - - 120,000 1,010,000 - 1,130,000 Escalante Pool Equipment Replacement: NA General Obligation Bonds - - - - 300,000 300,000 Kiwanis Park Batting Range: NA General Obligation Bonds - - 190,000 - - 190,000 KRC Complex Infrastructure & Equipment Replacements: NA General Obligation Bonds - - - - 750,000 750,000 Park Infrastructure / Equipment Replacement: 6399829 General Obligation Bonds 400,000 400,000 450,000 450,000 500,000 2,200,000 Sports Facility Relamping: 636938 General Obligation Bonds - 60,000 60,000 60,000 60,000 240,000 1,415,000 975,000 1,335,000 2,035,000 2,125,000 7,885,000 Program Total 226 Additional Projected Needs 2013-14 2014-15 2012-13 Total 5-Year Program 2015-16 Athletic Field Lighting Replacement Project Description Estimated Project Costs The purpose of this project is to repair deteriorated sports light poles and aging electrical service sections at City athletic facilities, and to upgrade the lighting levels at all baseball, softball and multi-purpose athletic fields so they are in compliance with Illuminating Engineering Society (I.E.S.) recommendations. Legal / Administration The sports light poles at many City athletic facilities are 30+ years old and in turf which receives regular sprinkler irrigation causing the poles to deteriorate with time and exposure. In the last four years fourteen (14) sports light poles have failed/fallen or had to be taken down. Design and Engineering $5,000 Land Acquisition $0 $55,000 Permit Fees $260,000 Survey / Staking $45,000 Construction Management $150,000 Furnishings / Equipment $90,000 Construction / Improvement $1,750,000 Geotech / Material Testing 2011-12 Source of Funds General Obligation Bonds $45,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $1,015,000 $0 Other Project Costs $675,000 Total $3,075,000 Project Number: 6303089 Estimated Start Date: Estimated Completion Date: 07/01/08 06/30/17 New Appropriations by Fiscal Year 2011-12 2012-13 $1,015,000 $515,000 2013-14 2014-15 2015-16 Total 5 Year $515,000 $515,000 $515,000 $3,075,000 Cox Splash Playground Renovation Project Description Estimated Project Costs This project provides funding for the renovation of the Valley's 1st splash playground, The Tempe Cox Splash Playground in Tempe Beach Park. Funding will replace worn features, equipment, correct design problems and update this extremely popular facility. Legal / Administration The Cox Splash Playground opened in 2002 and was engineered to entertain and accommodate 20-25,000 participants per year. Eight years later participation numbers are at 60 - 70,000 visitors a year, which has resulted in extensive wear and tear on the physical structures. Design and Engineering $5,000 Land Acquisition $0 $20,000 Permit Fees 2011-12 Source of Funds $120,000 Survey / Staking $20,000 Construction Management $65,000 Furnishings / Equipment $300,000 Construction / Improvement $500,000 Geotech / Material Testing $20,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $80,000 Total $1,130,000 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/01/13 03/30/15 New Appropriations by Fiscal Year 2011-12 $0 2012-13 $0 2013-14 $120,000 2014-15 2015-16 Total 5 Year $1,010,000 $0 $1,130,000 227 Escalante Pool Equipment Replacement Project Description Estimated Project Costs The project includes replacement of the Escalante pool filters, circulation system, and electrical infrastructure, and adds more shade. Legal / Administration The filters, electrical and circulation systems are original construction which was back in the 70's. These large ticket items are 35+ years of age. The addition of shade will enhance the use of the pool and protect swimmers from UV rays. Permit Fees $2,000 Land Acquisition $0 $3,000 Design and Engineering $10,000 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $210,000 Construction / Improvement 2011-12 Source of Funds NA $75,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $300,000 Project Number: NA Estimated Start Date: Estimated Completion Date: 08/15/15 04/30/16 New Appropriations by Fiscal Year 2011-12 $0 2012-13 2013-14 $0 $0 2014-15 2015-16 Total 5 Year $0 $300,000 $300,000 Kiwanis Park Batting Range Project Description Estimated Project Costs This project involves the replacement and upgrading of the aging equipment in this 20 year old facility. Items addressed by this project will include the pitching machines and electronics, the netting, the public address system, and the video security system. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Replacing this outdated equipment with current industry standards will allow for less down time of machines, reduced maintenance costs, increased citizen participation, and provide high quality services and facilities in a fun, friendly and safe environment. Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $160,000 Construction / Improvement 2011-12 Source of Funds $20,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $10,000 Total $190,000 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/01/13 10/01/13 New Appropriations by Fiscal Year 2011-12 $0 2012-13 $0 2013-14 $190,000 2014-15 2015-16 Total 5 Year $0 $0 $190,000 228 KRC Complex Infrastructure & Equipment Replacements Project Description Estimated Project Costs This project provides funding for the replacement of infrastructure and equipment throughout the Kiwanis Recreation Center Complex. Much of the infrastructure and equipment within the KRC Complex has reached or exceeded its life cycle. The fitness equipment will need to be replaced in 4 - 5 years, the tennis courts will need to be UV sealed; the tennis classroom flooring needs replacement; and the tennis restroom building (30+ years old) needs to be renovated or replaced. The electrical service sections, panels and other electrical components throughout the complex will require replacement. Funding will also upgrade and / or replace flooring in the concessions area, the fitness center, and the center lobby. New concrete picnic benches and landscaping upgrades will also be provided. 2011-12 Source of Funds Legal / Administration $2,000 Land Acquisition $0 $3,000 Permit Fees Design and Engineering $20,000 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $450,000 Construction / Improvement $250,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $25,000 Total $750,000 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/01/15 06/30/17 New Appropriations by Fiscal Year 2011-12 2012-13 $0 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $750,000 $750,000 Park Infrastructure / Equipment Replacement Project Description Estimated Project Costs This ongoing project provides for the replacement of playground equipment, picnic equipment, fencing, signage, concrete, sand, rubber playground surfacing, electrical / lighting, etc. in the various neighborhood parks. This project helps ensure the appearance, appeal, and safety of City parks is maintained. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds General Obligation Bonds $400,000 $2,200,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,200,000 Project Number: 6399829 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $400,000 $400,000 2013-14 2014-15 2015-16 Total 5 Year $450,000 $450,000 $500,000 $2,200,000 229 Sports Facility Relamping Project Description Estimated Project Costs This project includes an established plan for a regular cycle of relamping and cleaning of light fixtures at all softball / baseball fields, soccer fields, tennis / racquetball courts, and park basketball / volleyball courts. Without this project the light levels at these sports facilities will decline, and expose the City to unnecessary risk. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds NA $240,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $240,000 Project Number: 636938 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 $0 2012-13 $60,000 2013-14 $60,000 2014-15 2015-16 Total 5 Year $60,000 $60,000 $240,000 230 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - General Governmental Program Project Name & Number Funding Source 2011-12 Capital Budget 2012-13 Additional Projected Needs 2013-14 2014-15 Total 5-Year Program 2015-16 City Court Court Improvement Project: NA Unauthorized G.O. Bonds - 171,000 55,300 - - 226,300 Water / Wastewater Fund 301,600 164,810 136,810 162,820 250,690 1,016,730 Unauthorized G.O. Bonds 70,000 270,000 370,000 70,000 70,000 850,000 Community Services Municipal Arts Program: 6699799 Finance and Technology Enterprise Network File Storage and Archival: 6709239 Public Works - City Facilities Rehabilitation: 6799779 Unauthorized G.O. Bonds 572,000 510,000 510,000 510,000 510,000 2,612,000 Downtown Infrastructure Improvements: 6704320 Unauthorized G.O. Bonds 25,000 100,000 100,000 100,000 100,000 425,000 HVAC Replacements: 676873 Unauthorized G.O. Bonds 100,000 400,000 400,000 400,000 400,000 1,700,000 Roof Maintenance Program: 6702519 Unauthorized G.O. Bonds 545,000 400,000 400,000 400,000 400,000 2,145,000 1,613,600 2,015,810 1,972,110 1,642,820 1,730,690 8,975,030 Program Total 231 Court Improvement Project Project Description Estimated Project Costs This project encompasses several smaller projects that will benefit the public, City and Court. These smaller projects include: replacing the carpet in the staff areas on the first and second floors; expanding the security station located in the PD / Court lobby; replacing current staff chairs with ergonomic task chairs; replacing the attorney / witness chairs in each of the five courtrooms, as well as the judge's chairs in two of the courtrooms; replacing the existing chairs in the second floor conference room; replacing the existing cloth-covered benches in the first and second floor lobbies with metal 'airport style' bench seating that will be easier to maintain, and clean, thus lessening the potential for contagions; replacing the existing file shelving in the criminal division file room, which is at risk for potential collapse that could result in staff injury; place lighted emergency exit signage at exits in public areas, including courtrooms and the jury assembly room, to bring the exits into code compliance; constructing a door in the existing glass wall of the first floor break room that will connect with the outdoor patio area outside the PD/ Court area. Legal / Administration $0 Land Acquisition $0 Permit Fees $1,500 Design and Engineering $1,500 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $173,300 Construction / Improvement 2011-12 Source of Funds NA $55,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $226,300 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/01/11 07/30/11 New Appropriations by Fiscal Year 2011-12 $0 2012-13 $171,000 2013-14 $55,300 2014-15 2015-16 Total 5 Year $0 $0 $226,300 Municipal Arts Program Project Description Estimated Project Costs This project provides funding for various Municipal Arts projects as determined by the Municipal Arts Commission and the City Council. The Municipal Arts Program serves to advise the Mayor and City Council on all art and cultural development, encourages arts organizations and artists in their continuing search for artistic excellence in Tempe, and encourages and supports the contribution of cultural diversity to the richness of the community’s artistic life. 2011-12 Source of Funds Water / Wastewater Fund $301,600 Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $1,062,775 Total $1,016,730 Project Number: 6699799 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $301,600 $164,810 2013-14 2014-15 2015-16 Total 5 Year $136,810 $162,820 $250,690 $1,016,730 232 Enterprise Network File Storage and Archival Project Description Estimated Project Costs The Information Technology division’s existing Storage Area Networking (SAN) infrastructure is at its physical limitation for space. This project will implement recent technology developments in mid-tier storage for virtualization that provide a solution to extend the life of the existing infrastructure at a much reduced cost. Project components include the following: • Replacing existing SAN hard drives to increase space and extend the life of the existing SAN • Upgraded hardware for the data fiber switches • Implementation of a mid-tier SAN for non-mission critical storage and archival • Distribute virtual storage to the Library and Water Utilities division to move resources next to the business users • Upgrade Water Utilities division computer room environmental to support enterprise class computing 2011-12 Source of Funds Unauthorized G.O. Bonds $70,000 Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $850,000 Total $850,000 Project Number: 6709239 Estimated Start Date: Estimated Completion Date: 07/01/08 06/30/14 New Appropriations by Fiscal Year 2011-12 $70,000 2012-13 $270,000 2013-14 2014-15 2015-16 Total 5 Year $370,000 $70,000 $70,000 $850,000 City Facilities Rehabilitation Project Description Estimated Project Costs Tempe maintains 96 buildings covering 1.6 million square feet. This project is used to fund a preventive maintenance, repair and rehabilitation program to extend the useful life of our facilities. Building systems covered by this project include fire alarm systems, floor covering, painting, building automation systems, ice machine replacements and general building repairs as needed. In addition, this project covers emergency repairs such as flooding. Some of the anticipated projects for 2011-12 include floor coverings at the following locations: Fire Station #3, Kiwanis Recreation Center, Fire Station #5, and Kiwanis Sports Facility. This project also includes $57,000 for standpipe replacement at the Priest Yard to abate periodic sewer odors in the dayroom and assembly hall area. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Unauthorized G.O. Bonds $572,000 $2,612,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,612,000 Project Number: 6799779 Estimated Start Date: Estimated Completion Date: 07/01/11 06/30/12 New Appropriations by Fiscal Year 2011-12 2012-13 $572,000 $510,000 2013-14 2014-15 2015-16 Total 5 Year $510,000 $510,000 $510,000 $2,612,000 233 Downtown Infrastructure Improvements Project Description Estimated Project Costs This project maintains and repairs infrastructure in downtown Tempe. This may include improvements and refurbishing of brick sidewalks, street furniture, electrical lighting receptacles, and small enhancements identified in the Project for Public Spaces (PPS) analysis. Specific improvements in excess of $50,000 would be presented to Mayor and Council for approval, prior to implementation. Legal / Administration $3,616 Land Acquisition $0 $9,135 Permit Fees Design and Engineering The project purpose is to help ensure pedestrian safety in the downtown area. The combination of the day-to-day use of the pedestrian right-of-way as well as all of the special events held on Mill Avenue, necessitate the need to replace and repair the improvements. Those improvements have been in place approximately 25 years. In addition, this project will help maintain Mill Avenue as one of the 10 Great Streets of 2008 as recognized by the American Planning Association through their Great Places in America program. $43,395 Survey / Staking $3,616 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $361,622 Geotech / Material Testing 2011-12 Source of Funds Unauthorized G.O. Bonds $25,000 $3,616 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $425,000 Project Number: 6704320 Estimated Start Date: Estimated Completion Date: 07/01/11 Ongoing New Appropriations by Fiscal Year 2011-12 $25,000 2012-13 $100,000 2013-14 2014-15 2015-16 Total 5 Year $100,000 $100,000 $100,000 $425,000 HVAC Replacements Project Description Estimated Project Costs Tempe maintains nearly 400 air conditioning, heat pump and split system units with an expected useful life of 12 years. This project is intended to annually replace 8% of the units, or approximately 30-33 units per year. HVAC systems account for approximately 30% of the City’s electric bill. By replacing older and inefficient units with more efficient units, the City saves on electricity expenditures, reduces time and labor for repair needs, and reduces the City’s carbon footprint. In 2011-12, the following locations have a total of 27 units that need to be replaced: Kiwanis Recreation Center, Rolling Hills Golf Course, Traffic Maintenance, McClintock Sports Facility, Ken McDonald Golf Course, Household Products Facility and the Library. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Unauthorized G.O. Bonds $100,000 $1,700,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,700,000 Project Number: 676873 Estimated Start Date: Estimated Completion Date: 07/01/11 06/30/12 New Appropriations by Fiscal Year 2011-12 2012-13 $100,000 $400,000 2013-14 2014-15 2015-16 Total 5 Year $400,000 $400,000 $400,000 $1,700,000 234 Roof Maintenance Program Project Description Estimated Project Costs Tempe maintains 96 buildings with roofing systems that have an expected useful life of 15-20 years. This project is intended to annually patch and / or replace 4-6% of our roofs, approximately 4 per year based on need and condition. As City facilities age, it becomes more important than ever to maintain building roofs to reduce damage to the under roof envelope. A comprehensive list of facilities has been identified with roofing systems beyond their expected life cycle. In 2011-12, the following roof replacement projects are recommended: Library, South PD (half already done), Escalante Community Center, Rolling Hills Golf Course, Ken McDonald Golf Course, Fire Station # 2, and the Kiwanis Recreation Center. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds Unauthorized G.O. Bonds $545,000 $2,145,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,145,000 Project Number: 6702519 Estimated Start Date: Estimated Completion Date: 07/01/11 06/30/12 New Appropriations by Fiscal Year 2011-12 2012-13 $545,000 $400,000 2013-14 2014-15 2015-16 Total 5 Year $400,000 $400,000 $400,000 $2,145,000 235 City of Tempe 2011-12 Annual Budget Transportation Program Transportation projects total $5.7 million in FY 2011-12 and account for 12% of the 2011-12 appropriated CIP budget The Transportation element of the Capital Improvements Program includes all new and ongoing improvements put into service under the City's Transportation and Right-of-Way, and Traffic Signal and Street Lighting programs. Combined, the two programs represent $5.7 million of the $49.3 million Capital Improvements Budget for FY 2011-12. The primary funding source for the two programs in 2011-12 will be $5.3 in General Obligation bonds. The Transportation and Right-ofWay program will utilize the bulk of those bonds with $4.6 million sold for the program. The Transportation and Right-of-Way program is also partially funded with $200,000 from capital projects fund balance, and the Traffic Signal and Street Lighting program is scheduled to receive approximately $240,000 in federal grants. In FY 2011-12 the Transportation and Right-of-Way program is scheduled to complete a variety of arterial and residential street maintenance, resurfacing, and reconstruction projects. The Traffic Signal and Street Lighting program is primarily focused on technological maintenance and repair projects for the City’s lighting system, as well as on street light pole replacement. 236 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - Transportation and Rights-of-Way Improvements Program Project Name & Number Funding Source 2011-12 Capital Budget Arterial Asphalt Mill and Overlay: 5499741 General Obligation Bonds 1,754,664 1,775,300 1,431,885 1,503,479 1,438,710 7,904,038 Bridge Maintenance: 5499891 General Obligation Bonds 300,000 300,000 300,000 300,000 300,000 1,500,000 Holdeman Alley Improvement Project: NA Federal Grants - CMAQ General Obligation Bonds Project Total - - 531,098 32,102 563,200 - - 531,098 32,102 563,200 General Obligation Bonds 762,156 425,250 464,776 - - 1,652,182 Capital Projects Fund Balance General Obligation Bonds Project Total 209,300 209,300 209,300 209,300 209,300 209,300 209,300 209,300 209,300 209,300 209,300 837,200 1,046,500 General Obligation Bonds 626,400 626,400 626,400 626,400 626,400 3,132,000 Federal Grants - CMAQ General Obligation Bonds Project Total - - 961,105 58,095 1,019,200 - - 961,105 58,095 1,019,200 Residential Street Surface Treatments: 5499951 General Obligation Bonds 551,725 554,448 556,794 559,474 524,500 2,746,941 Street Reconstruction and Improvements: 5499711 General Obligation Bonds 561,643 668,125 1,069,000 1,175,900 668,125 4,142,793 4,765,888 4,558,823 6,240,555 4,374,553 3,767,035 23,706,854 Intersection Reconstruction: 5499731 Minor Concrete Improvements: 5404380 Neighborhood Street Rehabilitation Cape / Smooth Seal: 5499941 North Tempe Alley Improvement Project: NA Program Total 237 2012-13 Additional Projected Needs 2013-14 2014-15 Total 5-Year Program 2015-16 Arterial Asphalt Mill and Overlay Project Description Estimated Project Costs This project provides for the resurfacing and localized reconstruction of the arterial street system in the City. The amount and type of traffic is approaching or has exceeded the design limit of some arterial streets. This project replaces the top layer of older, brittle pavement and sections of moderately distressed asphalt with new pavement. The type of asphaltic concrete for this pavement uses recycled tires reducing the amount sent to the landfill each year. This project will allow for the annual improvement of approximately 11% of the arterial streets which equates to the completion of 10 of the City's 88 miles of streets per year. The arterials to be improved for the fiscal year 2011-2012 will be Rural from Alameda to Salt River Bridge and Elliot from Interstate 10 to Kyrene. For the fiscal year of 2012-2013 the arterials will be University from Mill to the Hohokam Expressway. Legal / Administration Resurfacing and rehabilitating arterial streets increases the strength and the durability of the roadway, while maintenance costs for the next 10 years will decrease. This project is an important component of the City’s strategic plan to maintain / preserve streets in good condition. Construction / Improvement $0 $143,328 Permit Fees Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 $7,543,578 Geotech / Material Testing 2011-12 Source of Funds General Obligation Bonds $75,436 Land Acquisition $1,754,664 $141,697 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $7,904,038 Project Number: 5499741 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 $1,754,664 2012-13 $1,775,300 2013-14 $1,431,885 2014-15 2015-16 Total 5 Year $1,503,479 $1,438,710 $7,904,038 Bridge Maintenance Project Description Estimated Project Costs Federal law mandates the inspection of all bridges in the country every two (2) years. The Arizona Department of Transportation (ADOT) has been inspecting Tempe's bridges for many years and submitted a report to the City for required repairs and maintenance. Repairs are prioritized based upon the sufficiency rating produced by ADOT which varies from each inspection year. The next scheduled inspection will be conducted in the fall of 2011. Legal / Administration The scope of work for this project includes replacement of damaged bridge joints, joint seals and diaphragms, cleaning debris out of the joints to allow them to function properly, posting of vertical clearance signs, repair of damaged structural members and guard, replacement of missing bolts and nuts from railings, correction of settlement and subsidence at abutments and miscellaneous other items. This is done to assure that the bridges are safe and in good repair. Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 $11,700 Land Acquisition $0 Permit Fees $0 Design and Engineering $187,200 Construction / Improvement $1,110,000 Geotech / Material Testing 2011-12 Source of Funds General Obligation Bonds $300,000 $191,100 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,500,000 Project Number: 5499891 Estimated Start Date: Estimated Completion Date: 07/01/11 Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $300,000 $300,000 2013-14 2014-15 2015-16 Total 5 Year $300,000 $300,000 $300,000 $1,500,000 238 Holdeman Alley Improvement Project Project Description Estimated Project Costs The city of Tempe has an ongoing alley reconstruction / stabilization program which includes removing soil fines and old soil material and replacing with recycled asphalt (RAP) from wall to wall in alleys. This project would stabilize approximately 4.25 of the City's 165 miles of alleys in the area from University to Broadway, Priest to Hardy. The primary environmental benefit derived from the project is a reduction in dust emissions due to activity in the alley. Legal / Administration The Holdeman Neighborhood area was identified in the City's Congestion Mitigation Air Quality (CMAQ) funding request through the Maricopa Association of Governments (MAG) in the Paving Unpaved Road Projects category for its regional proximity to Phoenix and to County air quality monitoring stations in South Scottsdale and near the intersection of College Ave. and Apache Blvd. Additionally, traffic counts in the northern segment of the area yielded higher than average number of trips per day for alley use. Survey / Staking $5,000 Land Acquisition $0 $9,000 Permit Fees Design and Engineering $54,000 $5,000 Construction Management $32,000 Furnishings / Equipment $0 Construction / Improvement $450,000 Geotech / Material Testing 2011-12 Source of Funds $5,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $3,200 Total $563,200 Project Number: NA Estimated Start Date: Estimated Completion Date: 08/01/13 11/01/13 New Appropriations by Fiscal Year 2011-12 2012-13 $0 $0 2013-14 $563,200 2014-15 2015-16 Total 5 Year $0 $0 $563,200 Intersection Reconstruction Project Description Estimated Project Costs This project provides for the reconstruction, resurfacing, and rehabilitation of intersections throughout the city that have been determined to be unsafe for both pedestrian and vehicular traffic. The hot temperatures and the dynamic forces applied by the accelerating and decelerating traffic cause the asphalt intersection to rut and shove. This project will explore additional pavement alternatives such as Portland cement concrete and other additives that will improve the structural integrity of the intersections. Funding for this project will allow for the reconstruction of 1 of the City's 41 major arterial intersections per year. The intersections to be completed in the fiscal year of 2011-12 will be Mill and Southern, and in 2012-13 Mill and Baseline. The intersection to be completed in the fiscal year of 2013-14 will be McClintock and Southern. Legal / Administration $14,786 Land Acquisition $0 Permit Fees $28,094 Design and Engineering $93,736 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $1,478,600 Geotech / Material Testing 2011-12 Source of Funds General Obligation Bonds $762,156 $36,966 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,652,182 Project Number: 5499731 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $762,156 $425,250 2013-14 $464,776 2014-15 2015-16 Total 5 Year $0 $0 $1,652,182 239 Minor Concrete Improvements Project Description Estimated Project Costs This project will provide for the emergency replacement of broken curbs, gutters, and sidewalks throughout the city. Other uses include the new construction of curbs, gutters, sidewalks and ADA accessible ramps to improve the continuity of the infrastructure and to improve accessibility and mobility for pedestrians in various areas. This project is also used in emergency call out situations, e.g. water main breaks, as needed. Funds for the project will allow for approximately 18,000 square yards of minor concrete repair per year. Legal / Administration $10,000 Land Acquisition $0 $19,000 Permit Fees Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $1,000,000 Geotech / Material Testing 2011-12 Source of Funds Capital Projects Fund Balance $209,300 $17,500 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,046,500 Project Number: 5404380 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $209,300 $209,300 2013-14 2014-15 2015-16 Total 5 Year $209,300 $209,300 $209,300 $1,046,500 Neighborhood Street Rehabilitation - Cape / Smooth Seal Project Description Estimated Project Costs The City's preventive maintenance efforts over the years have preserved our streets and kept them in very good condition. Cape and Smooth Seals are economically feasible alternatives used in extending the life of asphalt pavements. On average, this program allows for the rehabilitation of approximately 2% of our residential streets per year which is approximately 6 of the 308 miles of the city's residential streets. The first neighborhood to be resurfaced using the fiscal year 2011-12 and 2012-13 requested funds will be bounded by US 60 and Southern and Rural and McClintock. For the fiscal year of 2013-14 the neighborhood bounded by Southern and US 60 and Mill to Rural will be resurfaced. The type of asphaltic concrete for this pavement uses recycled tires reducing the amount sent to the landfill each year. Legal / Administration $30,000 Land Acquisition $0 $57,000 Permit Fees Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $3,000,000 Geotech / Material Testing 2011-12 Source of Funds General Obligation Bonds $626,400 $45,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $3,132,000 Project Number: 5499941 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $626,400 $626,400 2013-14 2014-15 2015-16 Total 5 Year $626,400 $626,400 $626,400 $3,132,000 240 North Tempe Alley Improvement Project Project Description Estimated Project Costs The city of Tempe has an ongoing alley reconstruction / stabilization program which includes removing soil fines and old soil material and replacing with recycled asphalt (RAP) from wall to wall in alleys. This project would stabilize approximately 6% of the city's alleys which equates to the completion of approximately 10.5 of the 165 miles of alleys in the City. The improvement will include the areas from Miller Rd. to Crosscut Canal, and Curry Rd. to Continental Dr. The primary environmental benefit derived from the project is a reduction in dust emissions due to activity in the alley. Legal / Administration $8,000 Land Acquisition $0 Permit Fees $15,000 Design and Engineering $96,000 Survey / Staking The North Tempe Neighborhood area was identified in the City's Congestion Mitigation Air Quality (CMAQ) funding request through the Maricopa Association of Governments (MAG) in the Paving Unpaved Road Projects category for its regional proximity to Phoenix and Scottsdale, and due to the fact that it is very close approximately 2 miles - to the County's PM-10 air quality monitoring station in South Scottsdale. $8,000 Construction Management $56,000 Furnishings / Equipment $0 Construction / Improvement $800,000 Geotech / Material Testing 2011-12 Source of Funds $8,000 Utility Relocation Fees $25 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $28,175 Total $1,019,200 Project Number: NA Estimated Start Date: Estimated Completion Date: 08/01/13 11/30/13 New Appropriations by Fiscal Year 2011-12 2012-13 $0 $0 2013-14 $1,019,200 2014-15 2015-16 Total 5 Year $0 $0 $1,019,200 Residental Street Surface Treatments Project Description Estimated Project Costs This project will provide the ongoing preventative maintenance of local / residential streets throughout the City in accordance with the City's pavement management program. Examples of the various types of treatments include; slurry seal, cape seal, smooth seal, seal coat and crack seal. Allocating funds and effort now will prevent future reconstruction costs that can be 10 times higher than routine maintenance costs. The project will allow for the annual surface treatment of approximately 13% of the city's streets which equates to the completion of approximately 40 of the 308 miles of streets per year. The streets to be maintained in the fiscal year of 2011-12 are bounded by All American Way to McClintock and Baseline to Guadalupe, Guadalupe to the Western Canal, Rural to Price, and Guadalupe to Elliot and Kyrene to Rural. Legal / Administration $25,000 Land Acquisition $0 $47,500 Permit Fees Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $2,500,000 Geotech / Material Testing 2011-12 Source of Funds General Obligation Bonds $551,725 $174,441 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,746,941 Project Number: 5499951 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $551,725 $554,448 2013-14 2014-15 2015-16 Total 5 Year $556,794 $559,474 $524,500 $2,746,941 241 Street Reconstruction and Improvements Project Description Estimated Project Costs This project provides for the reconstruction, resurfacing, and rehabilitation of streets or street segments that have exceeded their design life or need significant repair. Streets and/or public rights of way in this category include streets that were acquired through annexation processes throughout the years, streets/rights of way that have never been constructed to city standards, and street segments that have failed or need repair or construction beyond preventive maintenance. Improvements are necessary in areas to ensure accessibility and safety for residents and businesses adjacent to these areas, pedestrians, bicyclists, and vehicular traffic. The project will allow for the annual improvement of approximately 0.5% of the streets which equates to the completion of 2 of the City's 472 miles of streets per year. Remaining funds from 2010-11 will be combined with 2011-12 funds to reconstruct Hardy Drive between Southern Avenue and Broadway Rd, and Priest between Grove Parkway and Carmen. The work will include pulverizing and recycling the existing asphalt and base course in place, and repaving. 2011-12 Source of Funds General Obligation Bonds $561,643 Legal / Administration $38,754 Land Acquisition $0 $73,632 Permit Fees Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $3,875,391 Geotech / Material Testing $155,016 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $4,142,793 Project Number: 5499711 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $561,643 $668,125 2013-14 $1,069,000 2014-15 2015-16 Total 5 Year $1,175,900 $668,125 $4,142,793 242 City of Tempe 2011-12 Annual Budget 2011-12 CIP Projects - Traffic Signals and Street Lighting Program 2011-12 Capital Budget Additional Projected Needs 2013-14 2014-15 Funding Source Communication Conduit: 696950 Federal Grants - CMAQ 242,528 - - - - 242,528 General Obligation Bonds Project Total 118,643 361,171 - - - - 118,643 361,171 Federal Grants - CMAQ General Obligation Bonds Project Total - - 383,333 164,286 547,619 - - 383,333 164,286 547,619 New Signals / Safety Upgrades: 6999879 General Obligation Bonds 180,000 180,000 180,000 180,000 180,000 900,000 Pedestrian ITS Devices: 6904350 General Obligation Bonds 25,000 25,000 25,000 25,000 25,000 125,000 Street Light Pole Structural Replacement: 6999849 General Obligation Bonds 300,000 300,000 300,000 300,000 300,000 1,500,000 Federal Grants - CMAQ General Obligation Bonds Project Total - 539,000 231,000 770,000 - - - 539,000 231,000 770,000 General Obligation Bonds 100,000 100,000 100,000 100,000 100,000 500,000 966,171 1,375,000 1,152,619 605,000 605,000 4,703,790 Elliot, Guadalupe and Warner ITS Improvements: NA Traffic Control Cabinets and Hardware Replacement: NA Traffic Signal L.E.D. Replacement: 696696 Program Total 243 2012-13 Total 5-Year Program Project Name & Number 2015-16 Communication Conduit Project Description Estimated Project Costs Tempe currently uses leased phone lines to facilitate traffic signal operations. This project will install fiber optic communications media to each signalized intersection along University Dr. from Mill to McClintock utilizing existing fiber conduits resulting in 9 more signals being on city-owned infrastructure and reducing the leased phone line costs. The fiber run will tie into the ADOT Freeway Management System Fiber optic infrastructure as the backbone to bring data back to the Transportation Management Center at the Transportation Center. After completion of this project, one-quarter of the signal system (58 signals) will be on fiber. The project will also increase bandwidth to allow for installation of real-time video detection (data gathering) and CCTV monitoring. Traffic efficiency improvements and/or traffic management strategies can be coordinated with real-time data sharing to better manage accidents and/or incidents on the street or freeway network. The city will be able to monitor traffic conditions and adjust traffic signal timing through centralized command and control strategies designed to help Tempe and ADOT relieve or minimize congestion. $242,528 General Obligation Bonds $118,643 $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment 2011-12 Source of Funds Federal Grants - CMAQ Legal / Administration $361,171 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $361,171 Project Number: 696950 Estimated Start Date: Estimated Completion Date: 07/01/11 06/30/12 New Appropriations by Fiscal Year 2011-12 $361,171 2012-13 $0 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $361,171 Elliot, Guadalupe and Warner ITS Improvements Project Description Estimated Project Costs This project will use an existing conduit along Elliot for fiber optic communication to the signals. Wireless radios will be used to provide communication to signals along Guadalupe and Warner. Upon completion of this project, 30 more signals will be eliminated from leased phone line service bringing the total signal count on cityowned communication infrastructure to 118 (50%). Thirteen CCTVs will be placed at the major intersections for traffic monitoring, bringing the city's total to over 50 intersection cameras. As a result, the city will be able to monitor traffic conditions and adjust signal timing through centralized command & control strategies designed to help Tempe relieve or minimize congestion and to improve traffic flow along the corridors of Elliot Rd, Guadalupe Rd, and Warner Rd. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment 2011-12 Source of Funds NA $547,619 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $547,619 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/01/13 06/30/14 New Appropriations by Fiscal Year 2011-12 $0 2012-13 $0 2013-14 $547,619 2014-15 2015-16 Total 5 Year $0 $0 $547,619 244 New Signals / Safety Upgrades Project Description Estimated Project Costs This project provides for the installation of new traffic signals based on traffic engineering studies. It will also allow for replacement of existing outdated signals and address all safety updates to meet state and federal regulations. A modular intersection will cost an average of $180,000 depending on the size of intersection, which takes into account two modular poles at each corner. This will allow the city to upgrade approximately one of the city's 220 intersections per year and/or add one new traffic signal based on traffic engineering warrants. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment 2011-12 Source of Funds General Obligation Bonds $180,000 $900,000 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $900,000 Project Number: 6999879 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $180,000 $180,000 2013-14 2014-15 2015-16 Total 5 Year $180,000 $180,000 $180,000 $900,000 Pedestrian ITS Devices Project Description Estimated Project Costs The purpose of this project is to convert existing and/or install new accessible pedestrian devices at traffic signal controlled intersections. This project is a step toward complying with the American with Disabilities Act (ADA) and provides an essential public service for Tempe citizens. Examples of these devices include, but are not limited to, pedestrian push buttons, pedestrian countdown signal heads, audible pedestrian technologies and machine vision detections. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 The project will install an average of 5 audible, vibro-tactile devices and convert existing pedestrian devices to countdown pedestrians at 10 intersections totaling 80 countdown devices. These conversions improve pedestrian safety and allow for continued conversion of 1/3 of our existing signals in the downtown. Survey / Staking $0 Construction Management $0 2011-12 Source of Funds General Obligation Bonds $25,000 Furnishings / Equipment $125,000 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $125,000 Project Number: 6904350 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 $25,000 2012-13 2013-14 2014-15 2015-16 Total 5 Year $25,000 $25,000 $25,000 $25,000 $125,000 245 Street Light Pole Structural Replacement Project Description Estimated Project Costs The project will fund the replacement of existing rusted streetlight poles that are direct buried and provide funding to replace all direct buried street light poles to meet our current street light pole foundation standards. There are approximately 3,955 direct buried street light poles left in City inventory and of that approximately 1,705 that need to be replaced at a rate of 100-150 per year (based on their corrosion factor). Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2011-12 Source of Funds General Obligation Bonds $300,000 $1,500,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,500,000 Project Number: 6999849 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $300,000 $300,000 2013-14 2014-15 2015-16 Total 5 Year $300,000 $300,000 $300,000 $1,500,000 Traffic Control Cabinets and Hardware Replacement Project Description Estimated Project Costs Current traffic signal control cabinets were installed in 1995 through 1998 and will be approaching the typical product life cycle in the year 2013. As part of a continuing transportation management program, this project will procure equipment needed to upgrade and rehabilitate 70 (one-third) of the city's traffic signal control cabinets. As a practical matter, the inventory is aging and must eventually be replaced to minimize maintenance calls and to foster a high quality preventative maintenance program. This project will reduce maintenance costs in the long term and improve the reliability and safety of the traffic signal control operation, thus minimizing City liability. The new traffic signal cabinets will provide the city’s signal technicians with enhanced diagnostic tools to troubleshoot intersection malfunctions. These enhanced capabilities will facilitate increased intersection reliability and ultimately provide for safer traffic control operations. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment 2011-12 Source of Funds NA $770,000 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $770,000 Project Number: NA Estimated Start Date: Estimated Completion Date: 07/01/12 06/30/13 New Appropriations by Fiscal Year 2011-12 $0 2012-13 $770,000 2013-14 $0 2014-15 2015-16 Total 5 Year $0 $0 $770,000 246 Traffic Signal L.E.D. Replacement Project Description Estimated Project Costs The LED (Light Emitting Diodes) program has provided significant energy savings and has reduced maintenance costs since retrofitting all of the incandescent lamps in the City’s traffic signals. The LEDs have reduced transportation maintenance costs by $120,000 a year in off-hour call out costs, replacement bulbs and energy savings. LED modules have a life span of seven years and were first installed in 2002. This ongoing project will allow us to change out 2700 green LED lamps to newer LED's, which would result in an average conversion rate of approximately 44 intersections per year. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment 2011-12 Source of Funds General Obligation Bonds $100,000 $500,000 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $500,000 Project Number: 696696 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2011-12 2012-13 $100,000 $100,000 2013-14 2014-15 2015-16 Total 5 Year $100,000 $100,000 $100,000 $500,000 247 City of Tempe 2011-12 Annual Budget This page intentionally left blank. City of Tempe 2011-12 Annual Budget Schedules and Summaries Contents Property Tax Ordinance ......................................................................................................................................................... 250 Budget Resolution .................................................................................................................................................................. 251 Budget Schedules .................................................................................................................................................................. 252 Schedule A Summary Schedule of Estimated Revenues and Expenditures/Expenses.................................................... 252 Schedule B Summary of Tax Levy and Tax Rate Information .......................................................................................... 253 Schedule C Summary by Fund of Revenues Other Than Property Taxes ....................................................................... 254 Schedule D Summary by Fund of Other Financing Sources and Interfund Transfers ...................................................... 256 Schedule E Summary by Department of Expenditures / Expenses Within Each Fund ..................................................... 257 Schedule F Summary by Department / Fund.................................................................................................................... 258 Budget Basis, Units and Changes .......................................................................................................................................... 260 Financial Structure and Organization ..................................................................................................................................... 261 Personnel Summary ............................................................................................................................................................... 262 Personnel Changes for FY 2011-12 ....................................................................................................................................... 263 Personnel Schedules ............................................................................................................................................................. 264 Glossary of Terms .................................................................................................................................................................. 305 Index ...................................................................................................................................................................................... 313 Office of Management and Budget Staff ................................................................................................................................ 317 249 City of Tempe 2011-12 Annual Budget Property Tax Ordinance ORDINANCE NO. 2011.13 AN ORDINANCE LEVYING SEPARATE AMOUNTS TO BE RAISED FOR PRIMARY AND SECONDARY PROPERTY TAX LEVIES UPON EACH ONE HUNDRED DOLLARS ($100.00) OF THE ASSESSED VALUATION OF PROPERTY SUBJECT TO TAXATION WITHIN THE CITY OF TEMPE FOR THE FISCAL YEAR ENDING JUNE 30, 2012. PURSUANT to A.R.S. §42-17151, the ordinance levying taxes for Fiscal Year 2011-2012 is required to be adopted on or before the third Monday in August. WHEREAS, the County of Maricopa is the assessing and collecting authority for the City of Tempe. WHEREAS, Tempe City Charter Section 5.11 allows an ordinance necessary in connection with the adoption of the annual budget to be adopted and go into effect upon adoption. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF TEMPE, ARIZONA, as follows: Section 1: There is hereby levied on each One Hundred Dollars ($100.00) of the limited assessed value of all property, both real and personal, within the corporate limits of the City of Tempe, except such property as may be by law exempt from taxation, a primary property tax rate, for general and administrative expenses of the City of Tempe. The City of Tempe intends to adopt a primary property tax levy of $12,751,029, resulting in a primary tax rate of $0.6572 per $100 of assessed value. The primary tax levy amount is equal to the maximum allowable levy limit as determined by Maricopa County pursuant to the laws of the state of Arizona. Section 2: In addition to the rate set in Section 1 hereof, there is hereby levied on each One Hundred Dollars ($100.00) of unlimited assessed valuation of all property, both real and personal, within the corporate limits of the City of Tempe, except such property as may be by law exempt from taxation, a secondary property tax rate of $1.1291 per $100 of assessed value. Section 3: The combined tax rate as set forth in Sections 1 and 2 shall equal $1.7863 per one hundred dollars ($100.00) of assessed valuation of all property, real and personal, within the corporate limits of the City of Tempe, except such property as may be by law exempt from taxation. Section 4: Failure by the county officials of Maricopa County, Arizona, to properly return the delinquent list, any irregularity in assessments or omissions in the same, or any irregularity in any proceedings shall not invalidate such proceedings or invalidate any title conveyed by any tax deed; failure or neglect of any officer or officers to timely perform any of the duties assigned to him or them shall not invalidate any proceedings or any deed or sale pursuant thereto, the validity of the assessment or levy of taxes or of the judgment of sale by which the collection of the same may be enforced shall not affect the lien of the City of Tempe upon such property for the delinquent taxes unpaid thereon; overcharge as to part of the taxes or of costs shall not invalidate any proceedings for the collection of taxes or the foreclosure of the lien therefore or a sale of the property under such foreclosure; and all acts of officers de facto shall be valid as if performed by officers de jure. Section 5: All ordinances and parts of ordinances in conflict herewith are hereby repealed. Section 6: This ordinance shall become effective upon adoption. Section 7: The Clerk of the City is directed to transmit a certified copy of this ordinance to the County Assessor and Board of Supervisors of Maricopa County. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF TEMPE, ARIZONA, this 16th day of June, 2011. 250 City of Tempe 2011-12 Annual Budget Budget Resolution RESOLUTION 2011.36 A RESOLUTION DETERMINING AND ADOPTING FINAL ESTIMATES OF PROPOSED EXPENDITURES BY THE CITY OF TEMPE FOR THE FISCAL YEAR BEGINNING JULY 1, 2011, AND ENDING JUNE 30, 2012. DECLARING THAT SUCH SHALL CONSTITUTE THE BUDGET FOR THE CITY OF TEMPE FOR SUCH FISCAL YEAR. WHEREAS, in accordance with the provisions of Title 42, Sections 17101-17104 inclusive, Arizona Revised Statutes, the City Council did, on May 19, 2011, make an estimate of the amounts required to meet the public expenses for the ensuing year, also an estimate of revenues from sources other than direct taxation, and the amount to be raised by taxation upon real and personal property within the City of Tempe, Arizona, and WHEREAS, in accordance with said sections of said Title, and following due public notice, the Council met on May 19, 2011, at which meeting any taxpayer was entitled to appear and be heard in favor of or against any of the proposed expenditures, and WHEREAS, publication has been duly made as required by law, of said estimates together with a notice that the City Council set a property tax public hearing for June 2, 2011 and set an adoption date of June 16, 2011, to adopt the property tax rate, and WHEREAS, the sums to be raised by primary taxation, as specified therein, do not in the aggregate amount exceed that amount as computed in Title 42, Section 17051, A.R.S., therefore be it RESOLVED, that the said estimates of revenues and expenditures shown on the accompanying schedules as now increased, reduced or changed by the same are hereby adopted as the budget of the City of Tempe, Arizona, for the fiscal year 2011-2012. PASSED BY THE CITY COUNCIL OF TEMPE, ARIZONA, this 2nd day of June, 2011. 251 City of Tempe 2011-12 Annual Budget Budget Schedules Schedule A Summary Schedule of Estimated Revenues and Expenditures/Expenses Fund Adopted Unaudited Estimated Budgeted Estimated Unreserved Direct Expenditures/ Expenditures/ Fund Property Expenses Expenses Balance Tax Revenues FY 2010-11 FY 2010-11 7-1-2011 FY 2011-12 General $156,701,101 $151,531,573 $35,412,168 100,622,986 89,708,422 18,649,207 Debt Service 22,111,500 20,443,097 42,672,352 Capital Projects 48,264,755 48,264,755 3,439,740 Enterprise 91,997,602 86,599,413 35,065,586 $419,697,944 $396,547,260 $135,239,053 Special Revenue TOTAL $12,751,029 22,100,197 $34,851,226 Budgeted Revenues Proceeds From Total Other than Other Financial Budgeted Property Financing Interfund Transfers Resources Expenditures/ Taxes Sources FY 2011-12 Available Expenses Fund FY 2011-12 FY 2011-12 FY 2011-12 FY 2011-12 General $147,330,093 $195,679,725 $159,357,645 (1,916,643) 97,204,949 88,728,211 1,550,000 (49,000) 66,456,008 21,548,322 796,243 (137,435) 4,098,548 49,337,804 (429,600) 123,292,827 93,623,271 ($2,532,678) $486,732,057 $412,595,253 Special Revenue 182,459 Capital Projects 48,541,561 Enterprise 88,656,841 716,420 $316,641,778 $49,334,752 (Out) $186,435 80,472,385 Debt Service TOTAL $76,771 In $2,532,678 Expenditure Limitation Comparison 1. Budgeted Expenditures/Expenses 2. Budgeted Expenditures/Expenses Adjusted for Reconciling Items FY 2010-11 FY 2011-12 $419,697,944 $412,595,253 3. Less: Estimated Exclusions 4. Total Estimated Expenditures/Expenses Subject to Expenditure Limitation (243,985,622) (153,134,828) 5. Expenditure Limitation $305,391,699 252 175,712,322 259,460,425 $285,189,183 City of Tempe 2011-12 Annual Budget Schedule B Summary of Tax Levy and Tax Rate Information Estimated FY 2010-11* 1. Maximum Allowable Primary Property Tax Levy $12,751,029 (A.R.S. 42-17051(A)) 2. FY 2011-12 Amount Received from Primary Property Taxation in the 2010-11 Fiscal Year in Excess of the Sum of that Year's Maximum Allowable Primary Property Tax Levy (A.R.S. 42-17102(A)(18)) 3. 4. Property Tax Levy Amounts A. Primary Property Taxes 12,238,972 12,751,029 B. Secondary Property Taxes 22,174,672 22,100,197 C. Total Property Tax Levy Amounts $34,413,644 $34,851,226 Property Taxes Collected A. Primary Property Taxes 1. 2010-11 Levy 11,979,120 2. Prior Years' Levies 123,207 3. Total Primary Property Taxes B. $12,102,327 Secondary Property Taxes 1. 2010-11 Levy 21,703,870 2. Prior Years' Levies C. 5. 223,227 3. Total Secondary Property Taxes $21,927,097 Total Property Taxes Collected $34,029,424 Property Tax Rates A. City Tax Rate 1. Primary Property Tax Rate 0.5176 0.6572 2. Secondary Property Tax Rate 0.8824 1.1291 $1.4000 $1.7863 3. Total City Tax Rate * Includes actual property taxes collected as of the date the proposed budget was prepared plus estimated property tax collected for the remainder of the fiscal year. 253 City of Tempe 2011-12 Annual Budget Schedule C Summary by Fund of Revenues Other Than Property Taxes Budgeted Estimated Budgeted Revenues Revenues Revenues FY 2010-11 FY 2010-11* FY 2011-12 GENERAL FUND Local Taxes City Sales Tax $69,880,072 $77,900,797 $80,951,331 Transient Lodging Tax 3,969,916 4,100,214 4,131,600 Franchise Fees 3,727,000 3,766,415 3,547,000 28,871,873 28,400,614 25,884,826 6,166,164 5,388,171 5,347,107 Charges for Service 11,200,441 9,261,994 10,257,097 Fines, Fees and Forfeitures 10,322,095 7,554,318 8,427,007 1,567,696 1,568,250 1,568,450 Intergovernmental Revenue State-shared Vehicle License Tax Licenses and Permits Business/Non-Business Licenses Voluntary Contributions 1,376,393 1,502,400 1,502,400 Interest Income SRP Payment in Lieu of Taxes 1,595,000 998,201 1,159,000 Other Miscellaneous Revenue 5,103,263 4,566,341 4,554,275 143,779,913 145,007,715 147,330,093 25,012,100 28,136,095 29,124,332 ASU-Flash Transit 773,045 853,809 905,840 Interest Income 212,386 212,386 212,386 14,470,874 13,006,168 13,452,151 3,369,506 3,492,097 3,630,178 43,837,911 45,700,555 47,324,887 9,495,879 9,157,112 8,142,645 1,000 1,000 75,000 55,000 90,000 785,824 785,824 785,824 350,000 350,000 10,356,703 10,348,936 9,369,469 5,175,519 5,831,000 6,082,100 575,500 617,200 631,000 5,750 6,000 45,349 46,937 57,000 5,796,368 6,500,887 6,776,100 Total General Fund SPECIAL REVENUE Transit Fund Transit Tax Federal and State Funding Miscellaneous Revenue Total Transit Fund Highway User Revenue Fund Highway User Revenue Tax Miscellaneous Revenue Barricading Fees Maintenance of Effort Transfer Solid Waste Fund Transfer Total Highway User Revenue Fund Performing Arts Fund Performing Arts Tax Fees and Admissions Miscellaneous Revenue Interest Income Total Performing Arts Fund 254 City of Tempe 2011-12 Annual Budget CDBG/Section 8 Housing Funds Community Development Block Grant Budgeted Estimated Budgeted Revenues Revenues Revenues FY 2010-11 FY 2010-11* FY 2011-12 5,794,897 6,634,865 6,656,965 Section 8 Housing 10,623,052 10,169,506 10,344,964 Total CDBG/Sec 8 Funds 16,417,949 16,804,371 17,001,929 76,408,931 79,354,749 80,472,385 Total Special Revenue Funds DEBT SERVICE FUND Intergovernmental 16,520 Other Miscellaneous Revenue 103,436 182,459 16,520 103,436 182,459 Water/Wastewater Fund 66,510,174 66,501,664 71,017,104 Solid Waste Fund 15,189,163 15,074,701 15,231,809 1,711,195 1,360,227 2,294,828 Total Debt Service Fund ENTERPRISE FUNDS Golf Fund Cemetery Fund Total Enterprise Funds Total All Funds 144,420 117,100 113,100 83,554,952 83,053,692 88,656,841 $303,760,316 $307,519,592 $316,641,778 Includes actual revenues recognized on the modified accrual basis as of the date the proposed budget was prepared plus estimated revenues for the remainder of the fiscal year. 255 City of Tempe 2011-12 Annual Budget Schedule D Summary by Fund of Other Financing Sources and Interfund Transfers Proceeds From Other Fund Financing Interfund Transfers Sources FY 2011-12 FY 2011-12 GENERAL FUND In $76,771 (Out) $186,435 SPECIAL REVENUE FUNDS HURF/LTAF (1,550,000) Transit (366,643) Total Special Revenue Funds $0 DEBT SERVICE FUND CAPITAL PROJECTS FUNDS Bond/Note Proceeds CIP - Other Funding $0 ($1,916,643) 1,550,000 (49,000) (137,435) 796,243 40,171,865 4,160,396 CIP - Fund Balance Applied 4,209,300 Total Capital Projects Funds $48,541,561 $796,243 ($137,435) ENTERPRISE FUNDS Water/Wastewater Fund 716,420 TOTAL ALL FUNDS $49,334,752 256 (429,600) $2,532,678 ($2,532,678) City of Tempe 2011-12 Annual Budget Schedule E Summary by Department of Expenditures / Expenses Within Each Fund Expenditure/ Budgeted Expense Estimated Budgeted Expenditures/ Adjustments Expenditures/ Expenditures/ Fund/ Expenses Approved Expenses Expenses Department FY 2010-11 FY 2010-11 FY 2010-11* FY 2011-12 GENERAL FUND Mayor and Council City Manager Community Relations Diversity Program Internal Audit City Clerk City Court Human Resources Tempe Learning Center City Attorney Finance and Technology Community Development Police Fire Community Services Public Works - General Non-Departmental Contingencies Total General Fund $317,913 273,771 2,365,004 441,351 414,920 744,628 3,605,850 2,006,752 519,984 2,532,363 3,144,364 8,309,816 66,334,365 25,471,622 18,727,492 15,706,182 5,784,724 0 $156,701,101 ($500) (7,181) 29,139 16,130 (31,728) (292,597) (80,891) (190,200) (8,500) (24,340) (117,552) (82,600) (859,026) 174,226 81,951 (473,836) 756,754 0 ($1,110,751) $302,961 251,072 2,259,490 437,644 367,793 417,554 3,549,689 1,812,226 474,513 2,480,225 2,975,027 8,157,333 64,142,908 25,164,407 17,076,626 15,090,966 6,571,139 0 $151,531,573 $322,621 281,445 2,298,533 449,752 405,502 917,783 3,787,780 2,041,178 538,177 2,524,064 3,162,837 9,504,602 65,018,285 26,354,274 18,285,198 16,936,690 6,528,924 0 $159,357,645 11,667,658 64,026,251 5,794,897 10,623,052 8,511,128 100,622,986 (10,107) 0 0 0 0 (10,107) 11,207,196 57,321,719 2,593,891 10,169,506 8,416,110 89,708,422 9,297,186 53,863,809 6,656,965 10,344,964 8,565,287 88,728,211 22,111,500 22,111,500 0 0 20,443,097 20,443,097 21,548,322 21,548,322 48,264,755 48,264,755 0 0 48,264,755 48,264,755 49,337,804 49,337,804 75,772,343 1,731,353 379,350 14,114,556 91,997,602 (3,213,684) 0 (198,350) 0 (3,412,034) 70,422,362 1,681,345 179,013 14,316,693 86,599,413 75,985,498 2,290,553 180,863 15,166,357 93,623,271 $419,697,944 ($4,532,892) $396,547,260 $412,595,253 SPECIAL REVENUE FUNDS Highway User Revenue Transit CDBG Section 8 Housing Performing Arts Total Special Revenue Funds DEBT SERVICE FUND Debt Service Total Debt Service Fund CAPITAL PROJECTS FUNDS All Capital Projects Total Capital Projects Funds ENTERPRISE FUNDS Water/Wastewater Golf Cemetery Solid Waste Total Enterprise Funds TOTAL ALL FUNDS Includes actual expenditures/expenses recognized on the modified accrual basis as of the date the proposed budget was prepared plus estimated expenditures/expenses for the remainder of the fiscal year. 257 City of Tempe 2011-12 Annual Budget Schedule F Summary by Department / Fund Expenditure/ Department / Fund Mayor and Council Department: General Fund Budgeted Expense Estimated Budgeted Expenditures/ Adjustments Expenditures/ Expenditures/ Expenses Approved Expenses Expenses FY 2010-11 FY 2010-11 FY 2010-11* FY 2011-12 $317,913 ($500) $302,961 $322,621 273,771 (7,181) 251,072 281,445 2,365,004 554,820 2,919,824 29,139 0 29,139 2,259,490 549,285 2,808,775 2,298,533 454,452 2,752,985 City Clerk General Fund 744,628 (292,597) 417,554 917,783 Tempe Learning Center Office: General Fund 519,984 (8,500) 474,513 538,177 Diversity Office: General Fund 441,351 16,130 437,644 449,752 Internal Audit Office: General Fund 414,920 (31,728) 367,793 405,502 City Court Department: General Fund 3,605,850 (80,891) 3,549,689 3,787,780 Human Resources Department: General Fund 2,006,752 (190,200) 1,812,226 2,041,178 City Attorney Department: General Fund Water Fund City Attorney Total 2,532,363 377,142 2,909,505 (24,340) 0 (24,340) 2,480,225 327,550 2,807,775 2,524,064 380,051 2,904,115 Finance and Technology Department: General Fund Water Fund Finance and Technology Total 3,144,364 2,323,263 5,467,627 (117,552) 0 (117,552) 2,975,027 2,694,875 5,669,902 3,162,837 2,719,086 5,881,923 City Manager Department: General Fund Community Relations Office: General Fund Transit Fund Community Relations Total 258 City of Tempe 2011-12 Annual Budget Expenditure/ Department / Fund Police Department: General Fund Budgeted Expense Estimated Budgeted Expenditures/ Adjustments Expenditures/ Expenditures/ Expenses Approved Expenses Expenses FY 2010-11 FY 2010-11 FY 2010-11* FY 2011-12 66,334,365 (859,026) 64,142,908 65,018,285 Fire Department: General Fund 25,471,622 174,226 25,164,407 26,354,274 Community Services Department: General Fund Performing Arts Fund Community Services Total 18,727,492 8,000,155 26,727,647 81,951 0 81,951 17,076,626 7,886,502 24,963,128 18,285,198 8,032,794 26,317,992 Community Development Department: General Fund Transit Fund Section 8 Grants Fund Comm Dev Block Grant Fund Community Development Total 8,309,816 1,139,262 10,623,052 5,794,897 25,867,027 (82,600) 0 0 0 (82,600) 8,157,333 1,190,501 10,169,506 2,593,891 22,111,231 9,504,602 932,870 10,344,964 6,656,965 27,439,401 15,706,182 1,731,353 379,350 510,973 14,114,556 11,667,658 62,332,169 72,071,938 178,514,179 (473,836) 0 (198,350) 0 0 (10,107) 0 (3,213,684) (3,895,977) 15,090,966 1,681,345 179,013 529,608 14,316,693 11,207,196 55,581,933 67,399,937 165,986,691 16,936,690 2,290,553 180,863 532,493 15,166,357 9,297,186 52,476,487 71,886,361 168,766,990 5,784,724 756,754 6,571,139 6,528,924 22,111,500 0 20,443,097 21,548,322 1,000,000 0 0 1,000,000 48,264,755 0 48,264,755 49,337,804 $419,697,944 ($4,532,892) $396,547,260 $412,595,253 Public Works Department: General Fund Golf Fund Cemetery Fund Performing Arts Fund Solid Waste Fund Highway User Revenue Fund Transit Fund Water Fund Public Works Total Non Departmental: General Fund Debt Service: Debt Service Fund Contingency: Water Fund Capital Projects: Capital Projects Funds TOTAL Includes actual expenditures/expenses recognized on the modified accrual basis as of the date the proposed budget was prepared plus estimated expenditures/expenses for the remainder of the fiscal year. 259 City of Tempe 2011-12 Annual Budget Budget Basis, Units and Changes Accounting/Budgetary Basis The City of Tempe’s operating budget is legally adopted by Council resolution each fiscal year on a modified accrual basis, which is consistent with Generally Accepted Accounting Principles (GAAP). With modified accrual basis, revenue is recognized when it becomes available and measurable and expenditures as they are made. By contrast, Government-wide financial statements in the Comprehensive Annual Financial Report (CAFR) must be recorded on a full accrual basis. This is where revenue is recognized as soon as it is earned and expenses are recognized as soon as a liability is incurred, regardless of the timing of related cash inflows and outflows. Fund Statements, in the CAFR, are modified accrual basis for the General Fund, Debt Service Fund, Special Revenue Funds, and Capital Project Funds and accrual basis for Proprietary Funds. Budget Units Funds (Fund Accounting) The City's Operating Budget is organized by funds in conformity with GAAP with guidelines established by the Governmental Accounting Standards Board (GASB). The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts. With this account structure, the revenue and expenditures/expenses are budgeted and approved prior to the beginning of each fiscal year by a resolution passed by the City Council. The various funds are grouped by two types, governmental and proprietary. Governmental funds are those through which most governmental functions of the City are financed and include the General Fund, Debt Service Fund, Special Revenue Funds, and Capital Project Funds. Proprietary funds are used to account for the City's organizations and activities which are similar to those often found in the private sector. The Proprietary (Enterprise) Funds include the Water/Wastewater, Solid Waste, Golf and Cemetery Funds. The Comprehensive Annual Financial Report includes the combined financial statements of all funds. Programs Presentation of the operating budget is also structured by programs which delineate budget expenditures in terms of broad goals and objectives. Major programs include 1) General Services, 2) Development Services, 3) Public Safety, 4) Environmental Health, 5) Community Services, and 6) Transportation. Programs may transcend specific fund or departmental boundaries in that a program encompasses all associated activities, regardless of fund or department, directed toward the attainment of a general goal or objective. The relationship between programs and funds is presented in summary form in the Budget Summaries section as is their relation to the Departments and Divisions engaged in the pursuit of the respective goals and objectives. Departments Finally, the Performance Budget section of the operating budget illustrates the distribution of budget appropriations along the major organization units of City departments and their divisions. Changes to the Budget Mid-Year Program/Personnel Adjustment Request Should the need arise for additional personnel or program enhancements during the fiscal year to meet some unforeseen need, a mid-year program/personnel request is submitted to the Budget Office for a needs assessment and fiscal impact review. If after evaluation, the request is approved and involves either additional personnel or the abolition of a position(s), the request is forwarded to either the relevant Council Committee or full Council with recommended action. Budget Transfers The department should process a budget transfer request form anytime a shortfall is anticipated in a departmental subtotal budget. Budget transfers are no longer necessary to address a shortfall within summary account groups as long as sufficient monies are available in the subtotal departmental budget. The subtotal budget includes salaries and wages, fringe benefits, materials and supplies, fees and services, travel and other expenses, contributions, and capital outlay, and excludes internal services. Only as a last resort are contingency monies used to fund a shortfall. Alternative courses of action should be sought before contingency monies will be considered. Purchase orders and requisitions will be held until the budget shortfall is addressed. Transfer of Appropriation At any time during the fiscal year, the City Manager may transfer part or all of any unencumbered appropriation balance among programs within a department, office, or agency. Upon written request by the City Manager, the Council may by ordinance transfer part or all of any unencumbered appropriation balance from one department, office, or agency to another (Section 5.08, City of Tempe Charter). Permission to Exceed Budget In the event of an emergency, the Council may seek permission from the State Board of Tax Appeals (previously State Tax Commission) to exceed the adopted budget (Section 5.09, City of Tempe Charter). 260 City of Tempe 2011-12 Annual Budget Financial Structure and Organization Types of Budgeting Two separate budgets are adopted at the aggregate level for both the Operating and Capital Improvements Program and are then presented in program budget, performance and line-item form. The program budget portrays total and per capita expenditures along six broad programs or functions, including General Services, Development Services, Public Safety, Environmental Health, Community Services, and Transportation. This budget information is presented in the Budget Summaries section of the Annual Budget. The performance budget focuses on departmental and divisional goals and objectives. Benchmark and other workload data are collected to assess the effectiveness and efficiency of services. This information is published in the performance budget section of our Annual Budget. Finally, the line-item budget lists dollar amounts budgeted for each cost center and expenditure category and is published separately. Level of Revenue and Expenditure Detail Revenue is presented at several levels within the revenue information section of the Annual Budget. Revenue is given by fund type (General Governmental, Special Revenue, and Enterprise), by revenue category, and by major source. Additionally, all key revenue is addressed in terms of a ten year history, underlying assumptions, and major influences with graphic illustration of the trends to facilitate review of the revenue patterns. Summary schedules of estimated revenue is also presented in the Schedules and Summaries section of the Annual Budget. Expenditures are presented at several levels of detail including information by line-item, organizational unit performance, program, and fund. Line-item detail of expenditures is given in the Annual Line-Item Budget. Performance, program, and fund level expenditure data are presented in the Annual Budget. Relationship Between Budgeting and Accounting This budget is adopted on a basis consistent with GAAP, except for certain items which are adjusted on the City's accounting system at fiscal year-end. During the year, the City's accounting system is maintained on the same basis as the adopted budget. This enables departmental budgets to be easily monitored via accounting system reports on a monthly basis. The major differences between this adopted budget and GAAP for governmental funds are: a) encumbrances are recorded as the equivalent of expenditures (budget) as opposed to a reservation of fund balance (GAAP); b) certain revenue and expenditures, not recognized for budgetary purposes are accrued (GAAP); and c) supply inventory and self-insurance contributions are recognized as expenditures for budgetary purposes only. Enterprise Fund differences consist of the following: a) encumbrances are recorded as the equivalent of expenses (budget basis) as opposed to an expense of the following accounting period (GAAP); b) certain items, e.g., principal expense and capital outlay, are recorded as expenditures for budgetary purposes as opposed to adjustments of the appropriate balance sheet accounts (GAAP); and c) depreciation is recorded as an expense (GAAP) and not recognized for budgetary purposes. Fund Structure Governmental Funds Capital Projects Funds: Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). Debt Service Fund: Debt Service Funds are set up to receive dedicated revenue used to make principal and interest payments on City debt. They are used to account for the accumulation of resources and the payment of general obligation and special assessment debt principal, interest and related costs, except the debt service accounted for in the Special Revenue Funds and Enterprise Funds. General Fund: The General Fund is the general operating fund of the City. It is used to account for all activities of the City not accounted for in some other fund. Special Revenue Funds: Special Revenue Funds are established to account for legally restricted funding. Our Special Revenue Funds include: Performing Arts, Highway User Revenue, Local Transportation Assistance, Rio Salado, Community Facilities District, Transit, Community Development Block Grant and Housing Assistance. Proprietary Funds Enterprise Funds: Enterprise Funds are used to account for operations including debt service that are: (a) financed and operated in a manner similar to private businesses, where the intent of the government body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges; or (b) where the governing body has determined that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Our Enterprise Funds include: Water and Wastewater, Solid Waste, Cemetery and Golf. 261 City of Tempe 2011-12 Annual Budget Personnel Summary The number of full-time employees for FY 2011-12 totals 1,803.09 full-time equivalents (FTE), including 1,583 full-time, 14.10 permanent full-time equivalents, and 205.99 temporary full-time equivalent employees. This total translates to a 0.84% decrease over the 1,818.43 full-time equivalents budgeted in FY 2010-11. Department 2009-10 Actual 2010-11 Budget 2010-11 Revised Full Perm Temp Full Perm Temp Full Perm Temp Full Time FTE Time FTE Time Time FTE FTE FTE FTE 2011-12 Budget Mayor and Council 7 7 7 7 City Manager 3 4 4 4 City Attorney 24 1.75 23 1.75 23 1.75 23 Perm Temp FTE FTE 1.75 City Clerk 4 0.58 4 0.58 4 0.58 4 0.58 City Court 38 4.06 38 4.06 38 4.06 38 4.06 Community Development 95 2.10 9.01 84 4.01 82 4.01 78 Community Relations 25 1.83 22 1.34 24 1.34 25 1.34 Community Services 135 5.65 165.69 120 5.50 165.69 117 6.00 165.69 116 6.50 165.69 Diversity Program 3 0.50 Finance and Technology 138 0.50 Fire 184 1.00 Human Resources Internal Audit 2 1.00 2 1.25 2 1.25 132 0.50 131 0.50 131 0.50 181 1.00 181 1.00 181 1.00 3 0.45 3 0.45 3 0.45 6.25 493 6.25 493 6.25 491 6.25 17.20 469 20.20 467 20.20 460 514 3.00 0 17 3.52 4 Public Works Total Personnel 1.60 20 562 Sub Total 1.60 20 Police Tempe Learning Center 0.63 1.60 2.50 0 17 1.50 3 1.50 24.10 3 1,756 14.50 205.25 1,602 13.85 202.58 1,596 13.60 202.58 1,583 14.10 205.99 1,975.75 1,818.43 262 1,812.18 1,803.09 City of Tempe 2011-12 Annual Budget Personnel Changes for FY 2011-12 Position Reductions Department Community Development Position Rio Salado Manager Development Services Liaison Sr Transp Planner Sr Transp Planner Administrative Assistant Housing Services Supervisor Assistant Rec Coordinator Administrative Assistant Park Ranger Park Ranger Groundskeeper I Executive Assistant Executive Assistant Dep PW Dir - Transportation Custodian Custodian Custodian Eng Permit Inspection Supervisor Fleet Supervisor Traffic Signal Supervisor PCN 55 1955 1691 1727 1742 1678 1764 1899 1218 1219 1806 1748 1749 827 1829 1830 1914 526 680 814 FTE (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (0.5) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (19.5) Action Summary Rio Salado Budget Balancing Plan Rio Salado Budget Balancing Plan Transit Budget Balancing Plan Transit Budget Balancing Plan CDBG/Sec 8 Action Plan CDBG/Sec 8 Action Plan Rio Salado Budget Balancing Plan Rio Salado Budget Balancing Plan Rio Salado Budget Balancing Plan Rio Salado Budget Balancing Plan Cemetery Budget Balancing Plan Cemetery Budget Balancing Plan Cemetery Budget Balancing Plan Transit Budget Balancing Plan Transit Budget Balancing Plan Transit Budget Balancing Plan Transit Budget Balancing Plan Gen Fund Reduction Plan Gen Fund Reduction Plan HURF Budget Balancing Plan Position Government Relations Coordinator PCN 1970 FTE 1.0 Action Summary Budget Supplemental Department Community Relations Position Admin Asst PCN 572 FTE 0.50 Community Services Sr Rec Coord 1458 (0.50) Community Services Library Mgr/Librarian I/II 1524 (0.50) Diversity ADA Compliance Specialist 1713 0.25 Action Summary Increase from PT to FT, reclass from Sr Mgmt Asst to Admin Asst – General Fund Reduction Plan Reduce from FT to PT – Rio Salado Budget Balancing Plan Reduce from FT to PT, from Library Mgr to Librarian I/II – General Fund Reduction Plan Increase from ½ to ¾ time – Council Approval Community Services Police Public Works Total Reductions Position Additions Department Community Relations Position Status Changes Total Changes (0.25) Summary – Authorized Positions (Full and Part-Time FTE) FY 2010-11 Budget 1,615.85 Position Reductions (19.50) Position Additions Position FTE Changes FY 2011-12 Budget 1.00 (0.25) 1,597.10 263 City of Tempe 2011-12 Annual Budget Personnel Schedules Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget 1110 MAYOR & COUNCIL Mayor Vice Mayor Council Member Mayor & Council Total Full-Time 2010-11 Revised 2011-12 Budget Gen 1 1 1 1 Gen 1 1 1 1 Gen 5 5 5 5 7 7 7 7 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 3 3 3 3 0 1 1 1 0 1 1 1 3 4 4 4 Gen 1 1 1 1 Gen 2 2 2 2 Gen 1 1 1 1 Gen 1 1 1 1 Gen 8 8 8 8 Gen 1 1 1 2 Gen 1 0 0 0 Gen 1 1 1 1 Gen 60% Grants 40% 1 1 1 1 Gen 1 1 1 0 Gen Gen 3 0 3 0 3 0 3 0.75 Gen 0.75 0.75 0.75 0.00 Gen 1.00 1.00 1.00 1.00 21 20 20 20 1.75 1.75 1.75 1.75 CITY MANAGER 1210 Administration City Mgr Asst City Mgr Sr Exec Asst City Admin+ Total Full-Time 1231 EECBG Energy & Grants Project Mgr (Position funded through 6-30-12) Grant Total Full-Time City Manager Total Full-Time CITY ATTORNEY 1710 Legal Services City Attorney Dep City Attorney Sr Asst City Attorney Police Legal Advisor Asst City Attorney Paralegal II+ Sr Exec Asst City Admin+ Administrative Support Supvr Paralegal I+ Legal Specialist II+ Legal Assistant Legal Specialist II+** Paralegal** Assistant City Attorney** Total Full-Time Total Perm FTE** 264 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget City Attorney/Water 3115 Sr Asst City Attorney Asst City Attorney Legal Specialist II+ Legal Secretary** Total Full-Time 2011-12 Budget W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 1 1 1 1 3 3 3 3 24 23 23 23 1.75 1.75 1.75 1.75 Gen 1 1 1 1 Gen 1 1 1 1 Total Perm FTE** City Attorney Total Full-Time City Attorney Total Perm FTE** 1310 2010-11 Revised CITY CLERK City Clerk Dep City Clerk Executive Assistant COE * City Clerk Total Full-Time Gen 2 2 2 2 Gen 0.58 0.58 0.58 0.58 4 4 4 4 0.58 0.58 0.58 0.58 Gen 1 1 1 1 Gen 1 1 1 1 Gen 2 2 2 2 Gen 2 2 2 2 Gen 2 1 1 1 Gen 1 1 1 1 9 8 8 8 Gen 1 1 1 1 Gen 0 1 1 1 City Clerk Total Temp FTE* CITY COURT 1410 Administration/Judicial Division Presiding City Judge Court Admin City Judge Court Commissioner Dep Court Admin Court Svcs Supvr Total Full-Time 1411 Criminal Division Court Svcs Supvr Lead Court Svcs Spec Court Svcs Spec II+ COE* Total Full-Time Gen 9 8 8 8 Gen 1.96 1.96 1.96 1.96 10 10 10 10 1.96 1.96 1.96 1.96 1 2 2 2 Total Temp FTE* 1412 Civil Division Court Svcs Supvr Lead Court Svcs Spec Court Svcs Spec II+ COE* Total Full-Time Gen Gen 1 0 0 0 Gen 13 13 13 13 Gen 2.10 2.10 2.10 2.10 15 15 15 15 2.10 2.10 2.10 2.10 Total Temp FTE* 265 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Court Enhancement Fund 4710 Deputy Court Admin Dsg Fund 0 1 Total Full-Time 0 1 4720 4730 2010-11 Revised 2011-12 Budget 1 1 1 1 Fill the Gap Fund Court Interpreter Total Full-Time Grant 1 1 1 1 1 1 1 1 Local JCEF Court Svcs Supvr Court Svcs Spec II+ Court Training Coord Total Full-Time Grant Grant Grant 1 1 1 3 0 2 1 3 0 2 1 3 0 2 1 3 38 38 38 38 4.06 4.06 4.06 4.06 Gen 95% Grants 5% 0 0 0 1 Gen 67% Grants 33% Gen Gen 0 1 0 1 0 0 1 0 0 0 0 1 Gen Gen 0 0 0 0 0 0 1 1 Gen Gen 0 0 0 0 0 0 1 1 Gen 1 0 0 0 Gen 1 1 1 1 Gen 0 0 0 1 3 2 2 8 City Court Total Full-Time City Court Total Temp FTE* COMMUNITY DEVELOPMENT Economic Development 2710 Administration/Economic Development Community Development Dir Community Development Dir Community Development Dir Business Development Officer Economic Development Spec Rio Salado Financial Analyst St Planner Tech Development Spec Management Assistant II+ Executive Assistant Administrative Assistant Total Full-Time 266 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Economic Development Admin 2810 Community Development Mgr Principal Architect Sr Architect+ Technology Development Spec Economic Development Spec Administrative Assistant II+ COE* Total Full-Time 2010-11 Revised 2011-12 Budget Gen 67% Grants 33% 1 0 0 0 Gen 1 1 1 0 Gen 1 1 1 0 Gen 1 1 1 0 Gen 1 1 1 0 Gen 2 1 1 0 Gen 1.00 0.00 0.00 0.00 7 5 5 0 1.00 0.00 0.00 0.00 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 6 6 6 5 Gen 1 1 1 1 Gen 1 0 0 0 Gen Gen 1 0 1 0 1 0 1 1 Gen 7 5 5 5 Gen 4 4 4 4 Total Temp FTE* Building Safety 2721 Building Safety Inspections and Permits Dep Com Dev Dir - Bldg/Permits Plan Review Mgr Bldg Inspection Mgr Development Project Coord Sr Plan Check Engineer+ Sr Bldg Inspector Bldg Code Complaint Invest Permit Center Supervisor Project Mgmt Coord Bldg Inspector II+ Development Svcs Spec II+ Administrative Assistant II+ Building Inspector I/II+ * Total Full-Time Gen 4 3 3 3 Gen 0.66 0.66 0.66 0.66 28 24 24 24 0.66 0.66 0.66 0.66 Gen 1 1 1 1 Gen 5 3 3 3 Total Temp FTE* Planning 2727 Code Compliance Sr Code Inspector Spec Code Inspector II+ Administrative Assistant II+ Unclassified Temporary* Total Full-Time Gen 0 0 0 1 Gen 5.00 1.00 1.00 1.00 6 4 4 5 5.00 1.00 1.00 1.00 0 1 1 1 0 1 1 1 Total Temp FTE* 2736 EECBG - IED Code Im Bldg Inspector II+ (Position is funded through 6-30-12) Grant Total Full-Time 267 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 2010-11 Position Source Actual Budget Revised Planning 2731 Dep Com Dev Dir - Planning Dep Com Dev Dir - Planning Code Enforcement Mgr Principal Architect Sr Architect+ Principal Planner Development Svcs Liaison Sr Planner Sr Planner Sr Transportation Planner Planner II+ Planner II+** Tech Planner Sr Code Inspector Spec Code Inspector II+ Administrative Assistant II+ COE* Total Full-Time Gen 1 1 1 0 Gen 90% Grants 10% 0 0 0 1 Gen 1 1 1 1 Gen 0 0 0 1 Gen 0 0 0 1 Gen 1 1 1 2 Gen 1 1 0 0 Gen 4 4 4 6 Gen 50% Grants 50% 0 0 0 1 Gen 0 1 1 1 Gen Gen Gen 3 0.50 0 0 0.00 1 0 0.00 1 0 0.00 1 Gen 1 1 1 1 Gen 3 2 2 2 Gen 2 2 2 2 Gen 1.86 1.86 1.86 1.86 17 15 14 20 0.50 0.00 0.00 0.00 1.86 1.86 1.86 1.86 Gen 1 1 1 0 Gen 3 3 3 0 Gen 1 0 0 0 5 4 4 0 Transit 1 0 0 0 Gen 67% Transit 33% 0 1 1 1 Transit 2 2 2 2 Transit 3 3 3 0 Transit 50%, Gen 50% 0 0 0 1 Transit 1 0 0 0 7 6 6 4 Total Perm FTE** Total Temp FTE* 2812 Redevelopment/Special Projects Principal Planner Sr Planner Planner II+ Total Full-Time 3923 2011-12 Budget Planning & Project Review Dep PW Mgr - Light Rail Div Development Project Officer Principal Planner Sr Transportation Planner+ Sr Transportation Planner+ Management Assistant II+ Total Full-Time 268 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Community Dev Rio Salado Administration 4410 Dep Comm Dev Mgr - Econ Dev Rio Salado Mgr Rio Salado Financial Analyst Sr Planner Administrative Assistant II+ COE* Total Full-Time 2010-11 Revised 2011-12 Budget Rio 1 1 1 0 Rio 1 1 0 0 Rio 1 1 1 0 Rio 1 1 1 0 Rio 1 1 1 0 Rio 0.49 0.49 0.49 0.00 5 5 4 0 0.49 0.49 0.49 0.00 1.60 1.60 1.60 1.60 1.60 1.60 1.60 1.60 Total Temp FTE * Housing 2814 Neighborhood Enhancement Homeless Outreach Coordinator** Total Perm FTE** 27712779 Section 8 Housing Housing Svcs Mgr Housing Svcs Supvr Family Self Sufficiency Spec Housing Services Spec II+ Administrative Assistant II+ Total Full-Time 28512872 CDBG/Home Housing Services Supvr Neighborhood Revital Coord Housing Svcs Mgmt Accountant Homeless Coordinator Affordable Housing Spec Principal Planner Principal Planner Administrative Assistant II+ Total Full-Time Gen Grant 1 1 1 1 Grant 1 1 1 0 Grant 2 2 2 2 Grant 6 6 6 6 Grant 1 1 1 1 11 11 11 10 Grant 1 1 1 0 Grant 0 0 0 1 Grant 1 1 1 1 Grant 1 1 1 1 Grant Grant 2 0 2 1 2 1 2 0 Gen 50% Grants 50% 0 0 0 1 1 6 1 7 1 7 0 6 95.00 84.00 82.00 78.00 2.10 1.60 1.60 1.60 9.01 4.01 4.01 3.52 Grant Community Development Total Full-Time Community Development Total Perm FTE* Community Development Total Temp FTE* 269 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget COMMUNITY RELATIONS 2010-11 Revised 2011-12 Budget Administration 1219 Administration Community Relations Mgr Mayor's Chief of Staff Asst to the Mayor Sr Exec Asst City Admin+ Sr Mayoral/City Council Aide+ Asst to the City Council Executive Assistant Administrative Assistant I+ Administrative Intern* COE* Total Full-Time Gen 1 1 1 1 Gen 1 0 0 0 Gen 0 1 1 1 Gen 1 0 0 0 Gen 3 2 2 2 Gen 0 1 1 1 Gen 0 1 1 1 Gen 2 0 0 0 Gen 0.49 0.00 0.00 0.00 Gen 0.49 0.49 0.49 0.49 8 6 6 6 0.98 0.49 0.49 0.49 Gen 0 0 0 1 Gen 1 0 0 0 1 0 0 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 2 Gen 2 2 2 2 Arts 1 0 0 0 W/WW 1 0 0 0 Gen 2 1 1 1 CIP 0 1 1 1 Gen 1 0 0 0 Gen 0.19 0.19 0.19 0.19 Gen 0.66 0.66 0.66 0.66 Total Temp FTE* 1216 Government Relations Government Relations Coord Government Relations Dir Total Full-Time Communication/Media Relations 1214 Communication & Media Relations Comm and Media Relations Dir Media Svcs Admin Community Outreach Mktg Coord II+ Community Relations Coord Management Assistant II Management Assistant II Media Svcs Producer II+ Media Svcs Producer II+ (Position funded through 6-30-12) Call Center Supervisor Media Services Assistant * Media Services Intern* Total Full-Time Total Temp FTE* 270 10 7 7 8 0.85 0.85 0.85 0.85 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Marketing and Public Information 3916 Community Outreach Mktg Supvr Community Outreach Mktg Supvr Comm Outreach/Mktg Coord II+ Total Full-Time 4418 2010-11 Revised 2011-12 Budget Transit 1 1 1 0 Gen 25%, Solid Waste 25%, Transit 50% 0 0 0 1 Transit 2 2 2 1 3 3 3 2 1 1 1 0 1 1 1 0 Gen 1 1 1 1 Gen 1 1 1 1 Transit 50%, W/WW 50% 0 0 0 1 2 2 2 3 Gen 0 1 1 1 Gen 0 1 1 1 SW 0 0 1 1 HURF 0 0 1 1 W/WW 0 1 1 1 0 3 5 5 25 22 24 25 1.83 1.34 1.34 1.34 Rio Salado Marketing Community Relations Coord Total Full-Time Rio Neighborhood Program 1215 Neighborhood Program Neighbor Program Dir Neighborhood Svcs Spec Comm Outreach/Mktg Coord II+ Total Full-Time 1220 Customer Relations Center Customer Relations Supvr Administrative Assistant II Administrative Assistant II Administrative Assistant II Administrative Assistant II Total Full-Time Community Relations Total Full-Time Community Relations Total Temp FTE* 271 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget COMMUNITY SERVICES 2010-11 Revised 2011-12 Budget Administration 2410 Administration Community Svcs Dir Sr Social Svcs Coord+ Management Assistant II+ Executive Assistant Unclassified Temporary* Total Full-Time Gen 85% Arts 15% 1 1 1 1 Gen 1 1 0 0 Gen Gen 1 0 0 0 0 1 0 1 Gen 0.52 0.52 0.52 0.52 3 2 2 2 0.52 0.52 0.52 0.52 Gen 1 0 0 0 Gen 3 3 3 2 Total Temp FTE* Arts and Library 2440 Library Dep Comm Svcs Mgr-Library Library Supvr Sr Social Svcs Coord+ Librarian I/II+ Library Ops Supvr Circulation Svcs Coord Library Spec II+ Administrative Assistant II+ Library Asst Librarian I/II+** Library Assistant** Unclassified Temp - Office* Total Full-Time Gen 1 1 1 1 Gen 11 11 11 11 Gen 1 1 1 1 Gen 1 1 1 1 Gen 7 5 5 5 Gen 1 0 0 0 Gen 4 4 4 4 Gen 0.50 0.00 0.00 0.50 Gen 2.00 2.00 2.00 2.00 Gen 7.44 7.44 7.44 7.44 30 26 26 25 2.50 2.00 2.00 2.50 7.44 7.44 7.44 7.44 Gen 50% Arts 50% Gen Gen 1 0 1 1 0 1 1 1 1 1 1 1 Perfor Arts 1 1 1 1 Gen 80% Perfor Arts 20% 1 1 1 1 Gen 0.95 0.95 0.95 0.95 Gen 0.36 0.36 0.36 0.36 Gen 6.01 6.01 6.01 6.01 Total Perm FTE** Total Temp FTE* 2481 Cultural Services - Administration Dep Com Svcs Dir- Lbry/Cultrl Sr Social Svcs Coord+ Arts Coord Arts Coord Administrative Assistant II+ Recreation Leader III* Recreation Leader IV* Unclassified Temporary* Total Full-Time Total Temp FTE* 272 4 4 5 5 7.32 7.32 7.32 7.32 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Historical Museum 2484 Museum Administrator Sr Museum Curator+ Museum Registrar Administrative Assistant II+ Unclassified Temp - Office* Total Full-Time 2011-12 Budget Gen 1 1 1 1 Gen 3 3 3 3 Gen 1 0 0 0 Gen 1 0 0 0 Gen 0.65 0.65 0.65 0.65 6 4 4 4 0.65 0.65 0.65 0.65 Arts 1 1 1 1 Arts 0 1 1 1 Arts 4 4 4 4 Arts 4 3 3 3 Arts 1 0 0 0 Total Temp FTE* 3610 2010-11 Revised Performing Arts - Administration Cultural Facilities Admin Management Assistant II+ Arts Coordinator Arts Specialist Administrative Assistant II+ Box Office Assistant Unclassified Temp* Total Full-Time Arts 1 0 0 0 Arts 13.27 13.27 13.27 13.27 11 9 9 9 13.27 13.27 13.27 13.27 Gen 2 2 2 2 Gen 1 1 1 1 3 3 3 3 Gen 0 1 1 1 Gen 3 3 3 3 Gen 0.65 0.00 0.00 0.00 Gen 0.43 0.43 0.43 0.43 Total Temp FTE* Social Services 2415 Social Services/North Side Multigenl Center Sr Social Svcs Coord+ Administrative Assistant II+ Total Full-Time 2451 Social Services/Diversion Social Svcs Supvr Social Svcs Counselor II+ Social Services Counselor** Administrative Assistant+* Total Full-Time 3 4 4 4 0.65 0.00 0.00 0.00 0.43 0.43 0.43 0.43 Gen Gen 1 1 1 1 1 1 1 1 Gen 4 4 4 4 Gen 5 5 5 5 Total Perm FTE** Total Temp FTE* 2457 Social Services/KID ZONE Kid Zone Prog Admin Community Svcs Supvr Sr Social Svcs Coord+ Social Services Specialist Asst Recreation Coord Unclassified Temporary* Total Full-Time Gen 7 6 6 6 Gen 58.60 58.60 58.60 58.60 Total Temp FTE* 273 18 17 17 17 58.60 58.60 58.60 58.60 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 2010-11 Position Source Actual Budget Revised Social Services/Partnerships 2485 Social Svcs Supvr Sr Social Svcs Coord+ Social Svcs Counselor II+ Crisis Intervention Spec Unclassified Temporary * Total Full-Time Gen 2 1 1 1 Gen 2 2 2 2 Gen 1 1 1 1 Gen 3 3 3 3 Gen 3.60 3.60 3.60 3.60 8 7 7 7 3.60 3.60 3.60 3.60 Gen 1 1 1 1 Gen 1 1 1 1 Gen 3 2 2 2 Gen 1.00 1.50 1.50 1.50 Gen 0.85 0.85 0.85 0.85 5 4 4 4 1.00 1.50 1.50 1.50 0.85 0.85 0.85 0.85 Gen 1 1 1 1 Gen 4 3 4 4 Gen 1 1 0 0 Gen 0.75 0.75 0.75 0.75 Gen 7.28 7.28 7.28 7.28 Total Temp FTE* 2486 Social Services/Administration Dep Com Svcs Dir - Social Svcs Community Svcs Supvr Administrative Assistant II+ Administrative Assistant II+** Unclassified Temporary* Total Full-Time Total Perm FTE** Total Temp FTE* 2487 2011-12 Budget Social Services/Escalante Social Svcs Administrator Sr Social Svcs Coord+ Administrative Assistant II+ Social Services Coordinator** Unclassified Temporary* Total Full-Time 6 5 5 5 0.75 0.75 0.75 0.75 7.28 7.28 7.28 7.28 Gen 1 0 0 0 Gen 1 1 1 1 CIP 1 1 1 1 Gen 1 1 0 0 Gen 1 1 1 1 Gen 2 1 1 1 Gen 1.22 1.22 1.22 1.22 7 5 4 4 1.22 1.22 1.22 1.22 Total Perm FTE** Total Temp FTE* Recreation Centers and Programs 2521 Recreation - Administration Parks & Rec Mgr Dep Com Svcs Dir - Recreation Sr Recreation Coord+ Executive Assistant Asst Recreation Coord Administrative Assistant II+ Unclassified Temporary* Total Full-Time Total Temp FTE* 274 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 2010-11 Position Source Actual Budget Revised Special Events 2522 Parks & Rec Admin Sr Recreation Coord+ Assistant Recreation Coordinator Recreation Leader* Unclassified Temporary* Total Full-Time Gen 1 1 0 0 Gen 2 2 2 2 Gen 0 0 1 1 Gen 1.00 1.00 1.00 1.00 Gen 1.18 1.18 1.18 1.18 3 3 3 3 2.18 2.18 2.18 2.18 Gen 2 2 1 1 Gen 1 1 1 1 Gen Gen 1 0 1 0 1 0.50 1 0.50 Gen 2.87 2.87 2.87 2.87 4 0 4 0 3 0.50 3 0.50 2.87 2.87 2.87 2.87 Gen 1 1 1 1 Gen 2 0 2 0 2 0 2 0 Gen 1.93 1.93 1.93 1.93 Gen 4.72 4.72 4.72 4.72 3 3 3 3 6.65 6.65 6.65 6.65 Total Temp FTE* 2523 Senior Adults Sr Recreation Coord+ Asst Recreation Coord Administrative Assistant II Sr Recreation Coord+** Unclassified Temporary* Total Full-Time Total Perm FTE** Total Temp FTE* 2524 Special Interest and Boating Parks & Rec Admin Sr Recreation Coord+ Administrative Clerk II+ Recreation Leader III* Unclassified Temporary* Total Full-Time Total Temp FTE* 2525 Adult Sports Sr Recreation Coord+ Unclassified Temporary* Total Full-Time Gen 1 1 1 1 Gen 3.84 3.84 3.84 3.84 1 1 1 1 3.84 3.84 3.84 3.84 1 1 1 1 Total Temp FTE* 2526 2011-12 Budget Youth Sports Parks & Rec Admin Sr Recreation Coord+ Unclassified Temporary* Total Full-Time Gen Gen 2 2 2 2 Gen 3.89 3.89 3.89 3.89 3 3 3 3 3.89 3.89 3.89 3.89 Total Temp FTE* 275 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Diablo Stadium 2529 Sr Recreation Coord+ Unclassified Temporary* Total Full-Time 1 1 1 1 Gen 2.41 2.41 2.41 2.41 1 1 1 1 2.41 2.41 2.41 2.41 Gen 1 1 1 1 Gen 2 2 2 2 Kiwanis Recreation Center Parks & Rec Admin Sr Recreation Coord+ Administrative Assistant II+ Administrative Assistant II+** Recreation Leader I* Recreation Worker* Unclassified Temporary* Total Full-Time Gen 2 1 1 1 Gen 0.75 1.25 1.25 1.25 Gen 0.75 0.75 0.75 0.75 Gen 0.50 0.50 0.50 0.50 Gen 20.29 20.29 20.29 20.29 5 4 4 4 0.75 1.25 1.25 1.25 21.54 21.54 21.54 21.54 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 Gen 1 1 1 1 Gen 1 1 1 1 Total Perm FTE** Total Temp FTE* 2532 Kiwanis Concessions Unclassified Temporary* Total Temp FTE* 2533 Gen Aquatics Sr Recreation Coord+ Swimming Pool Maint Mechanic Swimming Pool Maint Tech Unclassified Temporary* Total Full-Time Gen 1 1 1 1 Gen 16.73 16.73 16.73 16.73 3 3 3 3 16.73 16.73 16.73 16.73 1 1 1 1 1 1 1 1 Total Temp FTE* 2534 Adapted Recreation Sr Recreation Coord+ Total Full-Time 2535 2011-12 Budget Gen Total Temp FTE* 2531 2010-11 Revised Gen Kiwanis Batting Cage Sr Recreation Coord+ Unclassified Temp* Total Full-Time Gen 1 1 1 1 Gen 2.41 2.41 2.41 2.41 1 1 1 1 2.41 2.41 2.41 2.41 Total Temp FTE* 276 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Boating Programs 2536 Sr Recreation Coord+ Total Full-Time 2537 Recreation Mgr Total Full-Time Administrative Assistant II+ Asst Recreation Coord 1 1 1 1 1 1 Gen 0 1 1 1 Gen 0 0 1 1 0 1 2 2 0 0 1 1 0 0 1 1 1 1 0 0 1 1 0 0 1 1 0 0 1 1 0 0 Rio 1 0 0 0 Rio 2 2 0 0 3 2 0 0 135 120 117 116 5.65 5.50 6.00 6.50 165.69 165.69 165.69 165.69 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 0 0 0 Gen 0.00 0.50 0.50 0.50 Gen 0.50 0.50 0.75 0.75 3 2 2 2 0.50 1.00 1.25 1.25 Gen Rio Rio Salado Events Marketing Asst Recreation Coord Total Full-Time 4413 1 Rio Salado Special Events Total Full-Time 4412 1 Rio Salado Administration Total Full-Time 4411 Community Development - Rio Salado Ops Administrative Project Coordinator Administrative Assistant II+ Total Full-Time Rio Community Services Total Full-Time Community Services Total Perm FTE** Community Services Total Temp FTE* 1212 2011-12 Budget Community Outreach/Marketing Asst Recreation Coord 2541 Gen 2010-11 Revised DIVERSITY Diversity Admin Sr Diversity Spec Administrative Assistant II Administrative Assistant II** ADA Compliance Specialist** Diversity Total Full-Time Diversity Total Perm FTE** 277 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget FINANCE AND INFORMATION TECHNOLOGY Financial Services 1810 Finance & Tech Dir Total Full-Time Gen 1 1 1 1 Gen 1 1 1 1 2 2 2 2 Gen 1 1 1 1 Gen 1 1 1 1 Gen 2 2 2 2 4 4 4 4 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Transit 1 1 0 0 Gen 1 1 1 1 Budget Budget Mgr Lead Budget & Finance Analyst Sr Budget & Finance Analyst+ Total Full-Time 1831 Accounting Controller Accounting Supvr Financial Mgmt Accountant Payroll Supervisor Accountant Transportation Financial Analyst Payroll Specialist Financial Svcs Tech II+ Accounting Assistant* Total Full-Time Gen 4 4 4 4 Gen 0.63 0.00 0 0 11 11 10 10 0.63 0.00 0.00 0.00 Gen 1 1 1 1 Gen 1 1 1 1 Gen Gen 5 1 6 1 6 1 6 1 Gen 1 0 0 0 Gen 1 1 1 1 Gen 3 3 3 3 Gen 3 3 3 3 16 16 16 16 Total Temp FTE* 1832 2011-12 Budget Administration Executive Assistant 1812 2010-11 Revised Tax and Licensing License & Collections Supvr Tax Audit Supvr Tax Auditor II+ Rental Property Spec Specialty Licenses Coord Tax Analyst Revenue Compliance Officer II+ Financial Svcs Tech II+ Total Full-Time 278 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Customer Services 1841 Dep Fin & Tech Dir - Finance Customer Svcs Mgr Customer Svcs Office Supvr Customer Svcs Field Supvr Sr Financial Svcs Tech Financial Svcs Tech II+ Water Meter Reader II+ Water Meter Reader I+ Total Full-Time 1851 Central Svcs Mgr Financial Svcs Tech II+ Total Full-Time W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 8 8 8 8 W/WW 7 7 7 7 W/WW 1 1 1 1 21 21 21 21 Gen 1 1 1 1 Gen 3 3 3 3 Gen 3 3 3 3 7 7 7 7 W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 2 1 1 1 W/WW 0 0.50 0.50 0.50 4 3 3 3 0 0.50 0.50 0.50 Risk 1 1 1 1 Risk 1 1 1 1 Risk 1 1 1 1 Risk 0.50 0 0 0 Safety & Training Safety & Risk Coord Industrial Hygienist Safety & Training Spec II Safety & Training Spec II** Total Full-Time Total Perm FTE** 2621 2011-12 Budget Central Services/Purchasing Procurement Officer 2613 2010-11 Revised Risk Management Risk Mgr Risk Mgmt Claims Adjuster Risk Mgmt Spec Administrative Assistant II** Total Full-Time 3 3 3 3 0.50 0 0 0 Gen 1 0 0 0 Gen 2 1 1 1 Gen 1 1 1 1 Gen 0 0 0 1 Gen 0 1 1 1 Gen 1 0 0 0 Gen 0 1 1 1 5 4 4 5 Total Perm FTE** Information Technology 1991 Administration IT Mgr Dep Fin & Tech Dir - IT Sr Mgmt Asst IT Project Mgr Sr Tech Support Analyst Executive Assistant Administrative Assistant II+ Total Full-Time 279 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Data Center + Helpdesk 1992 IT Mgr IT Project Mgr Business Analyst Business Analyst Sr Programmer Analyst Sr Programmer Analyst Sr Data Center Support Spec Data Center & Net Ops Supvr Data Center Support Spec IT Support Analyst Total Full-Time 1993 2011-12 Budget Gen 0 1 1 0 Gen 0 1 1 0 Gen 0 3 3 0 W/WW 0 1 1 0 Gen 0 5 5 0 W/WW 0 2 2 0 Gen 0 0 0 1 Gen 0 0 0 1 Gen 0 0 0 3 Gen 0 0 0 3 0 13 13 8 Gen 0 1 1 1 Gen 1 0 0 0 Gen 2 2 2 2 Gen 5 5 5 5 Gen 1 1 1 1 Gen 1 1 1 1 10 10 10 10 Gen 0 1 1 1 Gen 1 0 0 1 Gen 7 2 2 7 W/WW 1 0 0 1 Gen 2 1 1 0 Gen 3 3 3 3 Gen 2 2 2 1 Gen 9 4 4 10 W/WW 2 0 0 2 Gen 1 0 0 0 Gen 1 0 0 0 29 13 13 26 Network Engineering IT Mgr Network Ops Supvr Sr Enterprise Network Eng Enterprise Network Eng II+ Enterprise Network Tech II+ Lead Enterprise Network Tech Total Full-Time 1994 2010-11 Revised Enterprise Applications IT Mgr Applications Supvr Business Analyst Business Analyst IT Project Mgr Database Administrator Webmaster Sr Programmer Analyst Sr Programmer Analyst IT Trng Coord Eng GIS Supvr Total Full-Time 280 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget System Administration 1995 Systems Admin Supvr Sr Technical Support Analyst Sr PC Svcs Conslt PC Svcs Consultant II+ Sr Data Center Support Spec Data Center & Net Ops Supvr Data Center Support Spec Technical Support Analyst II+ Total Full-Time 1996 Sr Data Center Support Spec Production Control Coord Data Center & Net Ops Supvr IT Trng Coord Reprographics Supvr Reprographics Oper Distribution Clerk Total Full-Time Customer Support IT Support Analyst Supvr IT Support Analyst II+ Sr PC Svcs Conslt PC Svcs Consultant II+ Total Full-Time 1852 2011-12 Budget Gen 1 1 1 1 Gen 1 0 0 0 Gen 1 1 1 2 Gen 0 0 0 4 Gen 0 1 1 0 Gen 0 1 1 0 Gen 0 3 3 0 Gen 4 4 4 4 7 11 11 11 Gen 1 0 0 0 Gen 3 0 0 0 Gen 0 0 0 0 Gen 1 0 0 0 Gen 0 1 1 1 Gen 0 2 2 2 Gen 0 1 1 1 Gen 0 1 1 1 5 5 5 5 Gen 1 1 1 0 Gen 3 3 3 0 Gen 1 1 1 0 Gen 5 4 4 0 10 9 9 0 Gen 2 0 0 0 Gen 1 0 0 0 Gen 1 0 0 0 4 0 0 0 138 132 131 131 0.50 0.50 0.50 0.50 0.63 0.00 0.00 0.00 Training and Automation Data Center Support Spec 1997 2010-11 Revised Central Services/Duplicating & Supplies Reprographics Supvr Reprographics Operator Distribution Clerk Total Full-Time Finance and Information Technology Total Full-Time Finance and Information Technology Total Perm FTE** Finance and Information Technology Total Temp FTE* 281 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget FIRE 2010-11 Revised 2011-12 Budget Administration/Fire Prevention 2310 Administration Fire Chief Asst Fire Chief Fire Deputy Chief Fire Budget / Finance Supvr Executive Assistant Administrative Assistant I/II+ Total Full-Time 2330 Asst Fire Chief Fire Education Spec Administrative Assistant II+ Total Full-Time 1 1 1 2 2 2 2 Gen 3 3 3 3 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 9 9 9 9 Gen 1 1 1 1 Gen 6 6 6 6 Gen 2 2 2 2 Gen 1 1 1 1 10 10 10 10 1 1 1 1 1 1 1 1 Gen 33 33 33 33 Gen 36 36 36 36 72 72 72 143 141 141 141 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 3 3 3 3 Contract 1 0 0 0 Contract 6 6 6 6 7 6 6 6 Tempe County Island Fire District Fire Inspector II+ Total Full-Time 2340 1 Gen Fire Prevention Fire Inspector II+ 2332 Gen Fire District Emergency Medical Services Fire Emergency Services Fire Captain Fire Eng Firefighter+ Gen 74 (66 Firefighter, Engineer or Captain positions are paramedic assignment) Total Full-Time 2370 Medical Services Fire Deputy Chief Fire Captain Paramedic-Assign EMS Coord Total Full-Time 2374 Ambulance Operations Medical Transp Contract Coord Paramedic Total Full-Time 282 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Support Services/Personnel Safety 2361 2011-12 Budget Support Services - Administration Fire Deputy Chief Fire Svcs Inventory Tech Service Aide ** Total Full-Time Gen 1 1 1 1 Gen 2 2 2 2 Gen 0.50 0.50 0.50 0.50 3 3 3 3 0.50 0.50 0.50 0.50 Gen 1 1 1 1 Gen 1 1 1 1 Gen 0.50 0.50 0.50 0.50 2 2 2 2 0.50 0.50 0.50 0.50 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 3 3 3 3 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Total Perm FTE** 2363 2010-11 Revised Fire Apparatus Maintenance Sr Fire Mechanic Fire Mechanic Fire Svcs Inventory Tech** Total Full-Time Total Perm FTE** Homeland Security/Special Operations 2380 Special Operations Fire Deputy Chief Hazardous Material Prog Spec Fire Captain Paramedic-Assign Total Full-Time Training/Professional Development 2350 Training/Professional Development Fire Deputy Chief Fire Captain Paramedic-Assign Administrative Assistant II+ Total Full-Time Fire Department Total Full-Time Fire Department Total Perm FTE** 283 3 3 3 3 184 181 181 181 1.00 1.00 1.00 1.00 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Position HUMAN RESOURCES 1911 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 5 5 5 5 Gen 10% Health 90% 1 1 1 1 Gen 3 3 3 3 Gen 1 0 0 0 Gen Gen 3 0 3 1 3 1 3 1 17 17 17 17 Gen 1 1 0 0 Gen 1 1 0 0 Gen 1 1 0 0 3 3 0 0 Human Resources -Administration HR Dir Dep HR Dir Employment Services Mgr employee Benefits Mgr Sr HR Analyst+ Benefits Prog Coord HR Spec Executive Assistant HR Tech II+ Administrative Assistant II+ Total Full-Time 1920 Funding Source Tempe Learning Center Org Development Administrator Performance Mgmt Designer Sr Learning & Org Dev Assoc Total Full-Time Human Resources Department Total Full-Time 1213 20 20 17 17 Gen 1 1 1 1 Gen 2 2 2 2 Gen Gen 1 0.00 0 0.45 0 0.45 0 0.45 INTERNAL AUDIT City Auditor Internal Auditor Contract Administrator Contract Administrator* Internal Audit Total Full-Time 4 3 3 3 0.00 0.45 0.45 0.45 Gen 1 1 1 1 Gen Gen Gen Gen 1 1 1 1 1 0 1 1 1 0 1 0 1 0 1 0 Gen 1 1 1 1 Gen 1 0 0 0 7 5 4 4 Internal Audit Total Temp FTE* POLICE 2210 Office of the Chief Police Chief Assistant Police Chief Sergeant Community Affairs Spec Police Officer Executive Assistant Administrative Assistant II+ Total Full-Time 284 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Organizational Services Detention Bureau 2231 Detention Admin Detention Section Admin Detention Supervisor Detention Officer+ Total Full-Time 2251 2010-11 Revised 2011-12 Budget Gen 1 1 1 1 Gen 1 0 0 0 Gen 5 6 6 6 Gen 24 21 21 21 31 28 28 28 Gen Gen 1 1 1 1 1 1 1 1 Gen 9 6 6 6 Gen 2 1 1 1 Gen 1 1 1 1 Gen 7 7 7 7 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 0.70 0.70 0.70 0.70 24 20 20 20 0.70 0.70 0.70 0.70 1 1 1 1 Professional Dev Bureau Assistant Police Chief Lieutenant Sergeant Polygraph Examiner II+ Management Assistant II+ Police Officer Community Affairs Specialist Volunteer Coordinator Police Support Svcs Spec COE* Total Full-Time Total Temp FTE* Support Services 2232 Communications Bureau Communications Mgr Communications Supervisor Communications Dispatcher II Administrative Assistant II+ Total Full-Time 2233 Gen Gen 7 6 6 6 Gen 37 37 37 37 Gen 1 1 1 1 46 45 45 45 Gen 1 1 1 1 Gen 1 0 0 0 Gen 3 3 3 3 Records Bureau Tech Svcs Bureau Mgr Police Records Section Admin Police Records Supvr Administrative Assistant II+ Records Clerk II Records Clerk I COE* Total Full-Time Gen 1 2 2 2 Gen 15 15 15 15 Gen 8 4 4 4 Gen 1.00 1.00 1.00 1.00 29 25 25 25 1.00 1.00 1.00 1.00 Total Temp FTE* 285 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Identification Unit 2235 Identification Supervisor Identification Technician Fingerprint Technician Total Full-Time 2246 Police Officer Gen 1 1 1 1 Gen 5 5 5 5 Gen 2 1 1 1 8 7 7 7 1 1 1 1 1 1 1 1 Gen 1 1 1 1 Gen 5 5 5 5 6 6 6 6 Gen 1 1 1 1 Gen 0 1 1 1 Gen 1 1 1 1 Gen 1 0 0 0 Gen 0 1 1 1 Gen 2 0 0 0 Gen 5 5 5 5 Gen 1 1 1 1 Gen 1 0 0 0 Desig Property Unit Property Supervisor Property Technician Total Full-Time 2259 2011-12 Budget HIDTA Total Full-Time 2257 2010-11 Revised Office of Mgmt/Budget/Research Fiscal/Research Mgr Sr Budget & Finance Analyst Police Plan & Research Supvr Tactical Crim Intel Analyst Suprv Police Officer Management Assistant II+ Police Analyst II+ Alarm Coord Crime Analysis Tech Administrative Assistant II+ Total Full-Time Gen 2 2 2 2 14 12 12 12 Gen 3 3 3 3 Gen 2 0 0 0 Gen 1 0 0 0 6 3 3 3 1 0 0 0 1 0 0 0 Operations 2236 Crime Prevention Unit Police Officer Crime Prevention Spec Administrative Assistant II+ Total Full-Time 2239 Homeland Security Unit Commander Total Full-Time Gen 286 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Criminal Investigations Bureau 2241 Assistant Police Chief Commander Lieutenant Sergeant Police Officer Administrative Support Supvr Community Service Officer Investigative Assistant Administrative Assistant II+ COE* Total Full-Time 1 1 1 1 Gen Gen 1 2 1 1 1 1 1 1 Gen 8 8 8 8 Gen 47 47 47 47 Gen 1 0 0 0 Gen 2 0 0 0 Gen 2 2 2 2 Gen 2 1 1 1 Gen 1.26 1.26 1.26 1.26 66 61 61 61 1.26 1.26 1.26 1.26 1 1 1 1 Traffic Investigations Bureau Lieutenant Gen Sergeant Police Officer Administrative Assistant II+ Traffic Enforcement Aide Total Full-Time 2243 Gen 5 5 5 5 Gen 22 21 21 21 Gen 2 1 1 1 Gen 5 2 2 2 35 30 30 30 1 1 1 1 Special Investigations Bureau Lieutenant Sergeant Gen Police Officer Gen 6 5 5 5 Gen 26 25 26 24 Gen 1 1 1 1 Gen 1 1 1 1 35 33 34 32 Gen 1 1 1 1 Gen 2 1 1 1 Investigative Assistant Administrative Assistant II+ Total Full-Time 2248 2011-12 Budget Gen Total Temp FTE* 2242 2010-11 Revised Central City Bureau Commander Lieutenant Sergeant Police Officer Licensing Spec Administrative Assistant II+ Total Full-Time Gen 3 2 2 2 Gen 15 14 14 16 Gen 1 1 1 1 Gen 1 0 0 0 23 19 19 21 287 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget 2271 Assistant Police Chief Lieutenant Police Officer Administrative Assistant II+ Police Reserves* Service Aide* COE* Total Full-Time Gen 1 0 0 0 Gen 1 3 3 3 Gen 2 2 2 2 Gen 1 1 1 1 Gen 4 3 3 3 Gen 0.16 0.16 0.16 0.16 Gen 2.50 2.50 2.5 2.5 Gen 0.63 0.63 0.63 0.63 9 9 9 9 3.29 3.29 3.29 3.29 Gen 3 2 2 2 Gen 24 24 24 24 Gen 4 4 4 4 Gen 142 141 141 141 Gen 10 0 0 0 183 171 171 171 2 0 0 0 2 0 0 0 7 0 0 0 7 0 0 0 1 1 1 1 1 1 1 1 Desg 1 2 2 2 Desg 2 2 2 2 Desg 1 1 1 1 Desg 1 1 1 1 5 6 6 6 Total Temp FTE* Patrol North Operations Commander Sergeant Lieutenant Police Officer Community Service Officer Total Full-Time 2273 City Security Team Park Ranger Total Full-Time 2274 Police Officer Gen AZ Post Commander Total Full-Time 2209 Gen Recruits Total Full-Time 2201 2011-12 Budget Patrol Administration/South Ops Sergeant 2272 2010-11 Revised Desg Vehicle Impound Police Officer Vehicle Impound Specialist Records Clerk II Administrative Assistant I/II+ Total Full-Time 288 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget RICO 2222 Police Officer - CIB Detective Police Officer Total Full-Time 2279 Sergeant Total Full-Time Sergeant Total Full-Time 1 1 1 1 Desg Fund 0 0 0 2 1 1 1 3 CFD 0 0 0 1 CFD 0 0 0 4 0 0 0 5 Transit 1 1 1 1 Transit 7 0 0 0 8 1 1 1 5 2 2 0 5 2 2 0 Rio 1 1 1 0 Rio 8 6 6 0 9 7 7 0 Rio Salado - Sworn Police Officer Total Full-Time 4417 Desg Fund PD - Security Transportation Center Security Officer 4416 2011-12 Budget Rio Salado - Park Rangers Park Ranger 3913 2010-11 Revised Rio Rio Salado - Park Rangers Sergeant Park Ranger Total Full-Time Police Department Total Full-Time 562 493 493 491 6.25 6.25 6.25 6.25 Gen Gen 50%, SW 50% 1 1 1 1 0 0 0 1 Gen W/WW W/WW 1 0 0 1 0 0 1 0 0 1 1 1 Gen Gen 1 0.00 0 0.50 0 0.50 0 0.50 Gen 0.49 0.49 0.49 0.49 Police Department Total Temp FTE* PUBLIC WORKS 3210 Administration PW Mgr Dep Pub Wks Dir - Field Oper Sr Mgmt Asst Water Util Admin Mgr Public Works Trng Coord Executive Assistant Executive Assistant** COE* Total Full-Time Total Perm FTE** Total Temp FTE* 289 3 2 2 5 0.00 0.50 0.50 0.50 0.49 0.49 0.49 0.49 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Engineering 3221 Dep Pub Wks Dir - Engineering Eng Services Mgr Contract Administrator Eng Contract Svcs Spec II+ Total Full-Time Principal Civil Engineer Eng Permit Inspection Supvr Sr Eng Associate+ Eng Tech II+ Total Full-Time 1 1 1 1 Transit 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 2 2 2 2 6 6 6 6 Gen 50% W/WW 50% 0 0 0 1 Gen 2 2 2 1 Gen 1 1 1 0 Gen 5 5 5 5 Gen 1 1 1 1 9 9 9 8 Gen 2 1 1 0 Transit 1 1 1 1 Gen 50% W/WW 50% 0 1 1 0 Gen 0 0 0 1 Gen 1 1 1 2 W/WW 1 1 1 1 Transit 1 1 1 1 W/WW 1 1 1 1 Gen 3 3 3 4 10 10 10 11 Gen 1 1 1 1 Gen 1 0 0 0 Gen 1 2 2 1 Gen 1 0 0 0 Gen 2 2 2 2 Gen 1 1 1 1 7 6 6 5 Engineering/Capital Improvements Principal Civil Engineer Principal Civil Engineer Principal Civil Engineer CIP Design & Construction Mgr Sr Civil Engineer+ Sr Civil Engineer+ Sr Civil Engineer+ Sr Construction Project Mgr Sr Eng Associate+ Total Full-Time 3225 Gen Engineering/Private Development and Utility Sr Civil Engineer+ 3223 2011-12 Budget Engineering/Admin. Support/Contract Admin. Eng Contract Compl Auditor 3222 2010-11 Revised Engineering/Information & Technical Services Right of Way Mgmt Coord GIS Coord Sr Eng Associate+ GIS Analyst+ Eng Tech II+ Survey Tech II+ Total Full-Time 290 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Field Operations 3241 Facility Maint Mgr Fac Automation Technician Bldg Equip Tech II+ Fac Electrician Administrative Assistant II+ Total Full-Time Gen 1 1 1 1 Gen 2 2 2 2 Gen Gen 1 12 1 11 1 11 1 11 Gen 1 1 1 1 Gen 1 1 1 1 18 17 17 17 Gen 1 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 3 3 3 3 Gen 0.50 0.50 0.50 0.50 6 6 6 6 0.50 0.50 0.50 0.50 Gen 3 3 3 2 Gen 3 3 3 3 Gen 13 13 13 13 1 1 1 1 4 4 4 4 24 24 24 23 Gen 1 1 1 0 Gen 2 2 2 1 Gen 1 0 0 0 Gen 4 2 2 4 Gen 28 24 24 24 SW 0 1 1 1 36 30 30 30 Fleet Services/Fleet Management Fleet Mgr Fleet Analyst Auto Parts Supvr Fleet Parts Spec Parts Messenger* Total Full-Time Total Temp FTE* 3262 Fleet Services/Fleet Maintenance Fleet Supvr Sr Fleet Equip Mechanic Equip Mechanic Equip Mechanic SW (position funded by Solid Waste starting January 2010) Equip Svcs Wkr II Total Full-Time 3271 2011-12 Budget Field Operations/Facility Maintenance Administration Fac Maint Supvr 3261 2010-11 Revised Gen Field Services/Custodial 1 Custodial Svcs Supt Custodial Supvr Administrative Assistant II+ Custodial Team Leader Custodian Custodian Total Full-Time 291 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget TCA Facility Management 3612 Fac Automation Technician Bldg Equip Tech II+ TCA Maint Supvr TCA Maint Supvr TCA Maint Worker Total Full-Time 3720 Environmental Hlth & Sfty Supv HPCC Interns* Total Full-Time Arts 1 0 0 0 Arts Arts 1 1 1 0 1 0 1 0 Arts 50% Transit 50% 0 1 1 1 Arts 6 5 5 5 9 7 7 7 1 0 0 0 W/WW W/WW 1 0 0 0 W/WW 0.98 0.00 0.00 0.00 2 0 0 0 0.98 0.00 0.00 0.00 SW 0 1 1 1 SW 0 1 1 1 SW 0.00 0.98 0.98 0.98 0 2 2 2 0.00 0.98 0.98 0.98 Golf 1 1 1 1 Golf 1 0 0 0 Golf 1 1 1 1 Golf 1 0 0 0 Golf 4 0 0 0 Golf 1 0 0 0 Golf 1.07 4.07 4.07 4.07 9 2 2 2 1.07 4.07 4.07 4.07 Total Temp FTE* Hazardous Material Safety Environmental Hlth & Sfty Supv Hazardous Material Safety Spec HPCC Interns* Total Full-Time Total Temp FTE* 2511 2011-12 Budget Hazardous Material Safety Hazardous Material Safety Spec 3721 2010-11 Revised Field Services/Rolling Hills Golf P & G Course Maint Coord P & G Mechanic Sprinkler Systems Maint. Worker/II+ Equipment Operator II Groundskeeper I/II+ Equipment Operator I Groundskeeper I/II+* Total Full-Time Total Temp FTE* 292 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Field Services/Ken McDonald Golf 2512 P &G Course Supervisor P &G Course Supervisor P & G Course Maint Coord P & G Mechanic Sprinkler System Maint. Worker I/II+ Equipment Operator II Groundskeeper I/II+ Equipment Operator I Groundskeeper I/II+* Total Full-Time 1 0 0 0 Gen 50% Golf 50% 0 1 1 1 Golf 1 1 1 1 Golf 1 1 1 1 Golf 1 1 1 1 Golf 1 0 0 0 Golf 6 4 4 4 Golf 1 1 1 1 Golf 1.35 1.35 1.35 1.35 12 9 9 9 1.35 1.35 1.35 1.35 Gen 2 2 2 2 Gen 4.10 4.10 4.10 4.10 2 2 2 2 4.10 4.10 4.10 4.10 Gen 1 0 0 0 Gen 2 0 0 0 3 0 0 0 Gen 1 0 0 1 Gen 1 1 1 1 2 1 1 2 Gen 1 0 0 1 Gen 1 1 1 0 Gen 1 0 0 0 Gen 1 1 1 1 Gen 5 6 6 6 Gen 0.56 0.56 0.56 0.56 9 8 8 8 0.56 0.56 0.56 0.56 Facility Resources Sr Recreation Coord+ Unclassified Temporary* Total Full-Time Total Temp FTE* 2551 Sports Complex Maintenance Sr Groundskeeper Groundskeeper I/II+ Total Full-Time 2552 Parks Maintenance Parks Mgr Sr Mgmt Asst Total Full-Time 2553 2011-12 Budget Golf Total Temp FTE* 2527 2010-11 Revised Diablo Stadium Maintenance Parks/Golf Course Supvr P&G Course Maint Coord Sr Groundskeeper Sprinkler Sys Maint Wkr II+ Groundskeeper I/II+ Groundskeeper* Total Full-Time Total Temp FTE* 293 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Rio Salado Maintenance 2554 Administrative Project Coord Groundskeeper I/II+ Groundskeeper I/II+* Total Full-Time Gen 0 P&G Course Supvr Parks/Golf Course Supvr Parks Fac Maint Wkr II+ P&G Mechanic Sprinkler Sys Maint Wkr II+ Equip Operator II Sr Groundskeeper Groundskeeper I/II+ Groundskeeper I/II+ Equip Operator I Groundskeeper* Unclassified Temporary* Total Full-Time 0 0 0 2 Gen 0.00 0.00 0.00 2.00 0 0 0 3 0.00 0.00 0.00 2.00 1 0 0 1 0 1 0 0 1 1 1 0 Gen 2 2 2 1 Gen 2 1 1 1 Gen 1 1 1 1 Gen 1 1 1 1 Gen 3 3 3 2 Gen 2 3 3 4 Gen 1 0 0 0 Gen 2 3 3 3 SW 0 1 1 1 Gen 0 0 0 0 Gen 1.75 1.75 1.75 1.75 Gen 1.67 1.67 1.67 1.67 14 15 15 14 3.42 3.42 3.42 3.42 0 0 0 1 Gen HURF Total Temp FTE* Rio Salado Maintenance - CFD Parks/Golf Maint Coord Sprinkler Sys Maint Coord Groundskeeper I/II+* Total Full-Time CFD CFD 0 0 0 1 CFD 0.00 0.00 0.00 2.00 0 0 0 2 0.00 0.00 0.00 2.00 1 0 0 0 1 0 0 0 Total Temp FTE* 2558 1 North Parks P&G Course Maint Coord 2557 0 Landscape Maintenance P& G Course Supvr Total Full-Time 2556 2011-12 Budget Gen Total Temp FTE* 2555 0 2010-11 Revised Cemetery Maintenance Groundskeeper II+ Total Full-Time Gen 294 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget South Parks 2559 Parks/Golf Course Supvr Parks Fac Maint Wkr II+ P&G Course Maint Coord Sr Groundskeeper Equip Operator II Sprinkler Sys Maint Wkr II+ Pest Control Technician Groundskeeper I/II+ Groundskeeper* Unclassified Temporary* Total Full-Time 1 1 1 1 Gen 1 1 1 1 Gen 3 2 2 2 Gen 1 1 1 1 Gen 4 3 3 3 Gen 3 3 3 3 Gen 2 0 0 0 Gen 5 4 4 4 Gen 0.87 0.87 0.87 0.87 Gen 0.83 0.83 0.83 0.83 20 15 15 15 1.70 1.70 1.70 1.70 Cemetery 1 1 0 0 Cemetery 1 1 0 0 Cemetery 0.50 0.50 0.00 0.00 2 2 0 0 0.50 0.50 0.00 0.00 Arts 1 0 0 0 Arts 1 1 1 1 Arts 1.44 1.44 1.44 1.44 2 1 1 1 1.44 1.44 1.44 1.44 1 1 1 0 Cemetery Administration Executive Assistant Groundskeeper I+ Executive Assistant** Total Full-Time Total Perm FTE** 3611 Tempe Arts Park Sr Groundskeeper Groundskeeper II+ Unclassified Temporary* Total Full-Time Total Temp FTE* 4414 Rio Salado Maintenance P&G Course Maint Coord Groundskeeper II+ Groundskeeper* Total Full-Time Rio Rio 1 1 1 0 Rio 0.10 0.10 0.10 0.00 2 2 2 0 0.10 0.10 0.10 0.00 Rio 0 1 1 0 Rio 2 2 2 0 2 3 3 0 Total Temp FTE* 4415 2011-12 Budget Gen Total Temp FTE* 3310 2010-11 Revised Rio Salado - Ent. Zone Administrative Project Coord Groundskeeper I/II+ Total Full-Time 295 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Field Services/Solid Waste Support Services 3712 Solid Waste Svcs Mgr Solid Waste/Recycling Supvr Solid Waste Inspector Administrative Assistant II+ Sr Mgmt Asst** Total Full-Time 1 1 1 1 SW 1 0 0 0 SW 3 3 3 3 SW 2 2 2 2 SW 0.00 0.50 0.00 0.00 7 6 6 6 0.00 0.50 0.00 0.00 SW 1 1 1 1 SW 19 19 19 19 20 20 20 20 1 2 2 2 Field Services/Solid Waste Residential Refuse Solid Waste/Recycling Supvr Solid Waste Equip Oper II+ Total Full-Time 3714 Field Services/Solid Waste Commercial Refuse Solid Waste/Recycling Supvr Sr Equip Operator Solid Waste Equip Oper II+ Total Full-Time 3715 SW SW 3 3 3 3 SW 14 14 14 14 18 19 19 19 3 3 3 3 3 3 3 3 Field Services/Roll Off Tilt Frame Solid Waste Equip Oper II+ Total Full-Time 3716 SW Field Services/Solid Waste Support Services Solid Waste Equip Spec Wash Bay Attendant** Total Full-Time SW 4 4 4 4 SW 0.50 0.50 0.50 0.50 4 4 4 4 0.50 0.50 0.50 0.50 1 1 1 1 1 1 1 1 Total Perm FTE** 3717 Solid Waste Ed & Community Outreach Sr Mgmt Asst Total Full-Time 3718 2011-12 Budget SW Total Perm FTE** 3713 2010-11 Revised SW Field Services/Solid Waste Uncontained Refuse Solid Waste/Recycling Supvr Solid Waste Equip Oper II+ Total Full-Time SW 1 1 1 1 SW 15 15 15 15 16 16 16 16 296 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Transportation Streets & Traffic Ops/Street Maintenance 3813 Street Maintenance Supt Sr Civil Engineer+ Sr Eng Associate+ Streets Supervisor Streets Maint Team Leader Street Maint Equip Operator II Street Maint Equip Operator II Equip Operator I Administrative Assistant II+ Total Full-Time 3821 Dep PW Mgr - Field Ops Dep Pub Wks Dir - Field Ops Total Full-Time Traffic Eng Sr Civil Engineer+ Traffic Control Barricade Supvr Traffic Engineering Analyst Sr Traffic Eng Tech+ Administrative Assistant II+ Total Full-Time 1 0 0 0 HURF 1 1 1 1 HURF 1 0 0 0 HURF 1 1 1 1 HURF 4 3 3 3 HURF 13 8 8 10 SW 2 4 4 2 W/WW 4 4 4 4 HURF 1 1 0 0 28 22 21 21 HURF 1 0 0 0 HURF 50%, SW 50% 0 1 1 0 HURF 1 0 0 0 2 1 1 0 HURF 1 1 1 1 HURF 1 0 0 0 HURF 3 2 2 2 HURF 1 0 0 0 HURF 2 1 1 1 HURF 2 2 2 2 HURF 1 0 0 0 11 6 6 6 HURF 1 1 1 1 HURF 1 0 0 0 HURF 2 1 1 1 HURF 1 1 1 1 HURF 1 1 1 1 HURF 4 3 3 3 10 7 7 7 HURF 1 1 1 1 HURF 1 1 1 1 2 2 2 2 Streets & Traffic Operations/Operations Traffic Maint Mgr Sr Sign Tech Traffic Operations Crew Leader Traffic Operations Support Spec Sign Tech Transportation Wkr II+ Total Full-Time 3824 HURF Transportation/Studies & Design Intelligent Trans System Coord 3823 2011-12 Budget Streets & Traffic Operations/Administration Dep PW Mgr - Admin & Cust Svcs 3822 2010-11 Revised Streets & Traffic Operations/Street Lighting Management Assistant II+ Lighting Systems Coord Total Full-Time 297 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Streets and Traffic Operations/Signal System 3825 Traffic Signal Supervisor Traffic Signal Svcs Crew Lead Traffic Signal Tech II+ Traffic Signal Tech II+ Traffic Signal Tech Crew Lead Traffic Signal Svcs Wkr II+ Underground Util Coord Parks/Golf Course Supvr Total Full-Time 3911 Dep PW Mgr-Transit & Transport Sr Mgmt Asst Transportation Financial Anlst Management Assistant II+ Transportation Support Spec Administrative Assistant II+ Administrative Assistant I/II+ * Total Full-Time HURF 1 1 1 0 HURF 1 0 0 0 HURF 3 3 3 3 Transit 1 1 1 1 HURF 1 1 1 1 HURF 4 2 2 2 HURF 1 0 0 0 HURF 0 0 0 1 12 8 8 8 Transit 1 0 0 0 Transit 50% HURF 50% Transit 0 0 1 1 1 1 0 1 Transit 0 0 1 1 Transit 1 0 0 0 Transit 1 1 1 1 Transit 1 1 1 1 Transit 1.00 1.00 1.00 1.00 4 4 5 4 1.00 1.00 1.00 1.00 Transit 1 1 1 1 Transit 1 1 1 1 Transit 1 0 0 0 Transit 1 1 1 1 Transit 2 2 2 2 Transit 2 1 1 1 Transit 3 3 3 0 11 9 9 6 Transit 1 2 2 2 Transit 1 1 1 1 Transit 1 1 1 1 Transit 1 0 0 0 Transit 2 2 2 2 Transit 1.00 0.50 0.50 0.50 Total Temp FTE* Transit Operations Transit MGr Transportation Fac Supvr Sr Transportation Planner Sr Transit Operations Coord Transit Operations Coord II+ Bldg Equip Tech II+ Custodian Total Full-Time 3915 2011-12 Budget Transportation/Transit Dep PW Mgr-Transit & Transport 3914 2010-11 Revised Transportation/Transit Store Bldg Equip Tech II+ Lead Transit Store Tech Financial Svcs Tech II+ Custodial Supervisor Custodian Financial Svcs Tech I/II+** Total Full-Time Total Perm FTE** 298 6 6 6 6 1.00 0.50 0.50 0.50 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Transportation/Bus Stop Maintenance 3917 Transportation Wkr II+ Groundskeeper II+ Total Full-Time 3921 2011-12 Budget Transit 5 3 3 3 Transit 0 2 2 2 5 5 5 5 Transit 1 0 0 0 Transit 1 1 1 1 2 1 1 1 Transit 1 1 1 1 Transit 1 0 0 0 2 1 1 1 W/WW 1 0 0 0 W/WW 2 1 1 1 W/WW 1 0 0 0 W/WW 1 1 1 0 W/WW 1 1 1 1 W/WW 0 1 1 0 W/WW 0 0 0 1 W/WW 0 1 1 1 W/WW 1 0 0 0 W/WW 1 1 1 1 W/WW 0 2 2 2 W/WW 3 2 2 2 W/WW 0.50 0.00 0.00 0.00 0.49 0.49 0.49 0.49 CP/EV Light Rail Project Sr Mgmt Asst Sr Traffic Eng Tech+ Total Full-Time 3922 2010-11 Revised Transportation Systems Sr Civil Engineer+ ITS Network Engineer Total Full-Time Water Utilities 3002 Water Utilities - Administration Water Utilities Mgr Dep Pub Wks Dir - Water Util Principal WUD Planning Eng Water Util Administrator Planning & Research Analyst^ WUD Safety & Training Coord Plant Supvr (SBP) Management Assistant II+ Eng Tech II+ Executive Assistant Custodian Administrative Assistant II+ Administrative Assistant II+** COE* Total Full-Time 11 10 10 9 0.50 0.00 0.00 0.00 0.49 0.49 0.49 0.49 W/WW 1 1 1 1 W/WW 1 1 1 1 2 2 2 2 Total Perm FTE** Total Temp FTE* 3003 Water Utilities Warehouse Warehouse Supvr Water Inventory Svcs Spec Total Full-Time 299 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Water Utilities Security 3004 Water Util Div Security Supvr WUD Security Officer Water Utility Security Guard** Total Full-Time W/WW 1 1 1 W/WW 3 5 5 5 W/WW 0.50 0 0 0 4 6 6 6 0.50 0.00 0.00 0.00 1 1 1 1 1 1 1 1 W/WW 1 1 1 1 W/WW 1 1 1 0 W/WW W/WW 4 0 4 1 4 1 4 0 6 7 7 5 W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 2 1 1 1 W/WW W/WW 7 1 7 1 7 1 7 1 13 12 12 12 W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 2 2 2 2 W/WW W/WW 5 1 5 1 5 1 5 1 11 11 11 11 W/WW 1 1 1 1 W/WW 0 4 4 4 W/WW 0 1 1 1 1 6 6 6 Water Quality - Administration Plant Ops Mgr Total Full-Time 3012 Control Center Supvr Control Center Operator Plant Mechanic+ (SBP) Total Full-Time Johnny G. Martinez Water Plant Plant Supvr Instrument & Cntrl Tech (SBP) Plant Electrician (SBP) Plant Mechanic+ (SBP) Plant Operator I/II+ (SBP) Plant Ops & Maint Trainee+ Total Full-Time 3014 South Tempe Water Plant Plant Supvr (SBP) Instrument & Cntrl Tech (SBP) Plant Electrician (SBP) Plant Mechanic+ (SBP) Plant Operator I/II+ (SBP) Plant Ops & Maint Trainee+ Total Full-Time 3021 W/WW Control Center Operations Instrument & Cntrl Tech (SBP) 3013 2011-12 Budget 1 Total Perm FTE** 3011 2010-11 Revised Distribution System Services - Admin Water Distribute & Collect Mgr CMMS Tech II+ Administrative Assistant II+ Total Full-Time 300 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Distribution System Maintenance 3022 Util Svcs Supvr Util Svcs Tech Supvr (SBP) 0 1 4 4 4 18 3 18 3 19 3 1 0 0 0 13 26 26 26 W/WW 1 1 1 1 W/WW 7 7 7 7 8 8 8 8 W/WW 0 1 1 1 W/WW 0 1 1 1 W/WW 1 2 2 2 W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 4 0 0 0 W/WW 2 2 2 2 W/WW 2 2 2 2 Irrigation Irrigation Supvr Technical Support Team Principal Civil Eng Management Assistant II+ GIS Analyst GIS Coord GIS Tech+ CMMS Tech II+ TV Truck Tech Underground Util Coord Administrative Assistant II+ Total Full-Time W/WW 1 1 1 1 12 11 11 11 W/WW 0 1 1 1 W/WW 0 1 1 1 W/WW 0 2 2 2 0 4 4 4 W/WW 1 0 0 0 W/WW 1 1 1 1 W/WW 4 4 4 4 W/WW 1 0 0 0 W/WW 1 0 0 0 W/WW 1 0 0 0 9 5 5 5 Environmental Administration Environmental Svcs Mgr Water Qual Process/Plan Coord Administrative Assistant II+ Total Full-Time 3027 1 10 0 Total Full-Time 3026 1 W/WW Util Svcs Tech I+ CIP (positions funded through June 30, 2012) Administrative Assistant II+ W/WW Total Full-Time Irrigator 3025 1 2011-12 Budget W/WW Util Svcs Tech II+ (SBP) 3024 W/WW 2010-11 Revised Environmental Services Environmental Serv Admin Environmental Program Supvr Environment Quality Spec Water Quality Specialist Cross Connec Control Supvr Cross Connec Control Inspector Total Full-Time 301 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 Funding 2009-10 2010-11 Position Source Actual Budget Environmental Wastewater 3028 Environmental Compliance Supvr Cross Connec Control Inspector Environmental Compl Insp II+ Environmental Compl Insp I+ Environmental Tech II+ Administrative Assistant II+ Total Full-Time 3031 Sub Regional Oper Grp Prog Mgr Util Svcs Team Leader Total Full-Time Plant Team Leader Instrument & Cntrl Tech (SBP) Plant Electrician (SBP) Plant Mechanic+ (SBP) Plant Operator+ (SBP) Total Full-Time 1 1 1 W/WW 0 1 1 0 W/WW 7 5 5 7 W/WW 0 1 1 0 W/WW 4 0 0 0 W/WW 2 0 0 0 14 8 8 8 1 1 1 1 1 1 1 1 W/WW 3 0 0 0 W/WW 8 0 0 0 11 0 0 0 W/WW 1 2 2 0 W/WW 0 0 0 1 W/WW 1 1 1 1 W/WW 1 0 0 0 W/WW 2 2 2 2 W/WW 2 3 3 3 7 8 8 7 W/WW 1 0 0 0 0 1 0 0 1 0 1 1 W/WW 2 2 2 3 3 3 3 5 W/WW 1 1 1 1 W/WW 6 6 6 6 W/WW 0 1 1 5 W/WW 0 1 1 1 W/WW 0 4 4 0 W/WW 1 0 0 0 8 13 13 13 W/WW Field Facilities - Wastewater Plant Team Leader Instrument & Cntrl Tech (SBP) Plant Electrician (SBP) Plant Mechanic+ (SBP) Total Full-Time 3041 1 Kyrene Water Reclamation Plant Plant Supvr 3035 W/WW Wastewater Utility Services Util Svcs Tech II+ (SBP) 3034 2011-12 Budget Wastewater Services - Administration Total Full-Time 3033 2010-11 Revised W/WW W/WW Laboratory Services - Administration Laboratory Supervisor Chemist II+ Water Quality Specialist Environmental Compl Insp II+ Environmental Tech II+ Administrative Assistant II+ Total Full-Time 302 City of Tempe 2011-12 Annual Budget Reflects all personnel changes/reductions approved by City Council through 6/30/2011 3051 Position Water Resources - Administration Water Resources Mgr Water Resources Hydrologist Total Full-Time 3052 Funding Source 2009-10 Actual 2010-11 Budget 2010-11 Revised 2011-12 Budget W/WW 1 1 1 1 W/WW 1 1 1 1 2 2 2 2 W/WW 1 1 1 1 W/WW 1 1 1 1 W/WW 0 1 1 1 W/WW 0 1 1 1 2 4 4 4 514 469 467 460 Water Conservation Water Conservation Coord Water Conservation Spec Sr Groundskeeper Groundskeeper I+ Total Full-Time Public Works Total Full-Time Public Works Total Perm FTE** 3.00 2.50 1.50 1.50 17.20 20.20 20.20 24.10 Gen 0 0 1 1 Gen 0 0 1 1 Gen 0 0 1 1 0 0 3 3 1,756 1,602 1,596 1,583 Public Works Total Temp FTE* 1920 Tempe Learning Center Org Development Administrator Performance Mgmt Designer Sr Learning & Org Dev Assoc Tempe Learning Center Total Full-Time Grand Total Full-Time Grand Total Perm FTE** Grand Total Temp FTE* **Permanent Full-Time Equivalent *Temporary Full-Time Equivalent 303 14.50 13.85 13.60 14.10 205.25 202.58 202.58 205.99 City of Tempe 2011-12 Annual Budget Grant Funded Personnel - Permanent FTE positions (Included in above totals) City Attorney City Court City Court City Manager Community Development Community Development Community Development Grand Total Funding Source Victims Rights Grant Fill the GAP Fund Local JCEF EECBG Section 8 CDBG/Home EECBG Personnel by Fund Permanent FTE positions (Full and Part-Time) 2009-10 Actual 304 2010-11 Revised 2011-12 Budget 0.40 0.40 0.40 0.40 1.00 3.00 0.00 12.00 5.33 0.00 21.73 1.00 3.00 1.00 12.00 6.33 1.00 24.73 1.00 3.00 1.00 12.00 6.33 1.00 24.73 1.00 3.00 1.00 11.00 5.15 1.00 22.55 2009-10 Actual General Fund Enterprise Funds Golf Cemetery Solid Waste Water/Wastewater Special Revenue Funds Health Fund HURF Performing Arts Rio Salado/CFD Risk Management Fund Transit Grants/Designated Funds Ambulance Provider AZ Post Capital Improvement Program CDBG/Section 8 Community Facilities District (CFD) Court Enhancement Fund EECBG Fill the Gap Fund HIDTA Local JCEF Percent for the Arts RICO Tempe County Island Fire District Vehicle Impound Victims Rights Grant Grand Total 2010-11 Budget 2010-11 Budget 2010-11 Revised 2011-12 Budget 1,285.52 1,168.54 1,169.29 1,177.22 21.00 2.50 72.50 180.00 10.50 2.50 79.50 183.00 10.50 0.00 80.00 183.00 10.50 0.00 78.25 183.50 0.90 58.00 23.65 29.00 3.50 54.00 0.90 38.00 17.15 24.00 3.00 40.83 0.90 38.00 17.15 19.00 3.00 40.83 0.90 38.00 17.15 0.00 3.00 33.83 7.00 1.00 1.00 17.33 0.00 0.00 0.00 1.00 1.00 3.00 1.20 1.00 1.00 5.00 0.40 1,770.50 6.00 1.00 5.00 18.33 0.00 1.00 2.00 1.00 1.00 3.00 1.20 1.00 1.00 6.00 0.40 1,615.85 6.00 1.00 5.00 18.33 0.00 1.00 2.00 1.00 1.00 3.00 1.20 1.00 1.00 6.00 0.40 1,609.60 6.00 1.00 5.00 16.15 7.00 1.00 2.00 1.00 1.00 3.00 1.20 3.00 1.00 6.00 0.40 1,597.10 City of Tempe 2011-12 Annual Budget Glossary of Terms Accrual Basis - A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. Adopted Budget - The financial plan of revenue and expenditures for a fiscal year as approved by the governing entity. Annexation - The legal merging of some territory into another. A city might annex unincorporated areas or a county might annex other disputed territories. Also used to refer to mergers of countries. Appropriation - An authorization made by the City Council which permits the City to incur obligations to make expenditures for specific purposes. Assessed Valuation - A value that is established for real and personal property for use as a basis for levying property taxes (note: Property values are established by the County). Asset - Resources owned or held by a government which have monetary value. Available (Undesignated) Fund Balance - Refers to the funds remaining from the prior year which are available for appropriation and expenditure in the current year. Balance Sheet - A financial statement showing the assets, liabilities, and net worth of an entity as of a specific date. Balanced Budget - A balanced budget arises when the government entity estimates the same amount of money from revenue collection as it is appropriating for expenditures. Benchmarking - The process of comparing an entity’s performance against the practices of other leading entities, in or outside of an industry, for the purpose of improving performance. Entities also benchmark internally by tracking and comparing past performance. Bond - A written promise to pay a sum of money on a specific date at a specified interest rate. The interest payments and the repayment of the principal are detailed in a bond ordinance. The most common types of bonds are general obligation, revenue bonds, and special improvement district bonds. These are most frequently used to finance capital projects. Bond Rating - Is the measure of the quality and safety of a bond. It indicates the likelihood that a debt issuer will be able to meet scheduled repayments, and dictates the interest rate paid. Bond Refinancing - The payoff and re-issuance of bonds, to obtain better interest rates and/or bond conditions. Budget - A plan of financial operation for a specified period of time (fiscal year). The annual Budget authorizes, and provides the basis for control of, financial operations during the fiscal year. Capital Budget - A Capital Budget is a separate budget from the operating budget. Items in the CIP are usually construction or renovation projects designed to improve the value of the government assets. Examples of capital improvement projects include new roads, sewer lines, buildings, recreational facilities and large scale remodeling. The City Council receives a separate document that details the CIP costs for the upcoming fiscal year. Line Item Budget - A budget that lists each expenditure category (salary, materials, telephone service, travel, etc.) separately, along with the dollar amount budgeted for each specified category. Operating Budget - The portion of the budget that pertains to daily operations that provide basic governmental services. The operating budget contains appropriations for such expenditures as personnel, supplies, utilities, materials, travel, and fuel. Performance Budget - A budget that focuses upon departmental goals and objectives rather than line items, programs, or funds. Workload and unit cost data are collected in order to assess the effectiveness and efficiency of services. Typical measures collected might include average emergency response time for fire or cost per man-hour of garbage collection. Program Budget - A budget that focuses upon broad functions or activities of an agency or jurisdiction rather than upon its organizational budget units or object classes of expenditure. The City's programs: (1) General Services; (2) Development Services; (3) Public Safety; (4) Environmental Health; (5) Community Services; and (6) Public Transportation. 305 City of Tempe 2011-12 Annual Budget Budget Adjustment - A procedure to revise a budget appropriation either by City Council approval through the adoption of a supplemental appropriation ordinance for any interdepartmental or interfund adjustments or by City Manager authorization to adjust appropriations within a departmental budget. Budget Calendar - The schedule of key dates or milestones which the City follows in the preparation, adoption, and administration of the budget. Budget Document - The instrument used by the budget-making authority to present a comprehensive financial program to the City Council. Budget Group - A fun group of hard working employees responsible for budget preparation, benchmarking, forecasting, and financial analysis. Budget Message - The opening section of the budget which provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, and recommendations regarding the financial policy for the upcoming period. Budgetary Basis - This refers to the form of accounting utilized throughout the budget process. These generally take one of three forms: GAAP, Cash, Modified Accrual or some type of statutory form budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that (a) encumbrances are considered to be an expenditure chargeable to appropriations, (b) no depreciation is budgeted for in enterprise funds, (c) investments in supply inventories and assets restricted for self-insurance purposes are not considered to be appropriable, (d) revenue accruing to sinking funds are not appropriable, and (e) contributions into sinking funds are budgeted, whereas disbursements from sinking funds are not budgeted. Unencumbered appropriations lapse at the close of the fiscal year. Budgetary Control - The control or management of a governmental unit or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of authorized appropriations and available revenue. Capital Budget - The appropriation of bonds or other revenue for improvements to facilities and other infrastructure. Capital Expenditures - Expenditures approved in the Capital Budget related to the acquisition, expansion or rehabilitation of an element of the government's physical plant. Capital Improvements - The acquisition, expansion or rehabilitation of an element of the government's physical plant; sometimes referred to as infrastructure. Capital Improvements Program - A plan for capital expenditures to provide long-lasting physical improvements to be incurred over a period of several future years. Tempe's City Charter requires annual submission of a five-year capital program for City Council approval. Capital Outlay - Expenditures which result in the acquisition of or addition to fixed assets. Cash Basis - A basis of accounting in which transactions are recognized only when cash is increased or decreased. Community Development Block Grant (CDBG) - Program authorized by the Housing and Community Development Act of 1974 in place of several community development categorical grant programs. CDBG provides eligible metropolitan cities and urban counties (called "entitlement communities") with annual direct grants that they can use to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services, principally to benefit low and moderate income persons. Contingency - A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Cost Center - An organizational budget/operating unit within each City division or department, i.e., Radio Maintenance is a cost center within the Communications Division. Debt Management (Capacity) Plan - The City's basis to evaluate upcoming and future debt financing in relation to the impact the borrowing will have on the City's debt ratios and related to the City's credit position as determined by the major rating agencies. Debt Ratios - Ratios which provide measure of assessing debt load and ability to repay debt which play a part in the determination of credit ratings. They are also used to evaluate the City's debt position over time and against its own standards and policies. The four major debt ratios used by the City are (1) Debt Per Capita; (2) Debt to Full Value; (3) Debt to Personal Income; and (4) Debt Services to Revenue. 306 City of Tempe 2011-12 Annual Budget Debt Service - The amount of interest and principal that a City must pay each year on net direct long-term debt plus the interest it must pay on direct short-term debt. Direct Debt - The sum of the total bonded debt and any unfunded debt (e.g. short-term notes) of the City for which the City has pledged its "full faith and credit." It does not include the debt of overlapping jurisdictions. Self-Supporting Debt - Debt for which the City has pledged a repayment source separate from its general tax revenue (e.g. water bond repaid from water utility income/special assessment bonds). Outstanding Tax Supported Debt - Direct debt minus self-supporting debt. Debt for which the City has pledged a repayment from its secondary property taxes. Overall Net Debt - Net direct debt plus overlapping debt. Overlapping Debt - The City's proportionate share of the debt of other local overlapping governmental jurisdictions. The debt is generally apportioned based on relative assessed value. Debt Service Fund Requirements - The amounts of revenue which must be provided for a Debt Service Fund so that all principal and interest payments can be made in full on schedule. Deficit - The excess of an entity’s liabilities over its assets or the excess of expenditures over revenue during a single accounting period. Department - A major administrative division of the City which indicates overall management responsibility for an operation or a group of related operations within a functional area. Department Goal - Specific intended result of a strategy; used interchangeably with objective. The term "goal" is used in a wide variety of ways in planning; e.g. as a strategic result or outcome; an objective, a measure, a target, etc. Depreciation - Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy, or obsolescence. Distinguished Budget Presentation Awards Program - A voluntary awards program administered by the Government Finance Officers Association to encourage governments to prepare effective budget documents. Division - A group of homogeneous cost centers within a department, i.e., all traffic engineering, traffic operations and transit cost centers make up the Transportation Division within the Public Works Department. Effective Measure - Degree to which an activity or initiative is successful in achieving a specified goal. Also, the degree to which activities of a unit achieve the unit's mission or goal. Efficiency Measure - Degree of capability or productivity of a process, such as the number of cases closed per year or tasks accomplished per unit cost. Encumbrance - The legal commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a future expenditure. Energy Efficiency and Conservation Block Grants (EECBG) - This program supports projects to develop, promote, implement, and manage energy efficiency and conservation projects and programs designed to: reduce fossil fuel emissions; reduce the total energy use of the eligible entities; improve energy efficiency in the transportation, building, and other appropriate sectors; and create and retain jobs. Estimated Revenue - The amount of projected revenue to be collected during the fiscal year. Expenditure/Expense - This term refers to the outflow of funds paid for an asset obtained or goods and services obtained. Fiscal Year - The time period designated by the City signifying the beginning and ending period for recording financial transactions. The City of Tempe has specified July 1 to June 30 as its fiscal year. Fixed Assets - Assets of long-term character which are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment. 307 City of Tempe 2011-12 Annual Budget Franchise Fees - Annual fees paid by utilities (electricity, telephone, cable TV, natural gas) for the use of the city's public rights-of-way, or that are granted a service monopoly that is regulated by the city (garbage collection). The franchise fee is typically a set percentage of gross revenue within the city. Full Faith and Credit - A pledge of a government’s taxing power to repay debt obligations. Full-Time Equivalent (FTE) - There are three types of classifications: (1) Full-time - works 40 hours/week (full-time) and is benefitted; (2) Permanent FTE - works more than 19.5 hours per week and less than 40 hours/week, is not seasonal, is not of specific limited duration, and is not for educational training; and (3) Temporary FTE - works less than 40 hours/week, is seasonal, and is of specific limited duration, or is for educational training. Fund - A set of inter-related accounts to record revenue and expenditures associated with a specific purpose. Fund structure consists of Governmental Funds (e.g., General Fund, Special Revenue Fund, Debt Service Fund), Proprietary Funds, and Fiduciary Funds (See previous section on "Financial Structure and Operations" for complete description of funds). Governmental Funds Capital Projects Fund - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). Debt Service Fund - Debt Service Funds are set up to receive dedicated revenue used to make principal and interest payments on City debt. They are used to account for the accumulation of resources for, and the payment of, general obligation and special assessment debt principal, interest and related costs, except the debt service accounted for in the Special Revenue Funds, and Enterprise Funds. General Fund - The General Fund is the general operating fund of the City. It is used to account for all activities of the City not accounted for in some other fund. Special Revenue Fund - Special Revenue Funds are set up as accounts for Federal or State grants legally restricted to expenditures for specific purposes. Our Special Revenue Funds include the Highway User Fund, the Local Transportation Assistance Fund, the Performing Arts Fund, the Community Development Fund, and the Housing Assistance Fund. Proprietary Funds Enterprise Funds - Enterprise Funds are used to account for operations including debt service (a) that are financed and operated in a manner similar to private businesses - where the intent of the government body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis is financed or recovered primarily through user charges; or (b) where the governing body has determined that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control accountability, or other purposes. Our Enterprise Funds include the Water and Wastewater Fund, the Solid Waste Fund, the Cemetery Fund and the Golf Course Fund. Fund Balance - The difference between revenue and expenditures. The beginning fund balance represents the residual funds brought forward from the previous year (ending balance). Furlough - Mandatory time off work with no pay. Used as an alternative to a layoff, employee furloughs can occur when revenue or projected revenue fails to match expenses. General Governmental Revenue - The revenue of a government other than those derived from and retained in an enterprise fund. General Governmental revenue include those from the General, Debt Service, and Special Revenue Funds. General Obligation Bonds - Bonds that finance a variety of public projects such as streets, buildings, and improvements; the repayment of these bonds is usually made from secondary property taxes, and these bonds are backed by the "full faith and credit" of the issuing government. Generally Accepted Accounting Principles (GAAP) - Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles. Goal - A long-term, attainable target for an organization–its vision of the future. Governmental Accounting Standards Board (GASB) - An accounting standards board formed in 1984 by the Financial Accounting Foundation (FAF) to develop accounting standards for state and local governmental entities. Grant - A contribution by the State or Federal government or other organization to support a particular function. Grants may be classified as either categorical or block depending upon the amount of discretion allowed the grantee. 308 City of Tempe 2011-12 Annual Budget Highway User Revenue Fund (HURF) - Special revenue fund to account for the receipts and expenditures of highway user monies. Arizona cities/towns are entitled to receive a portion of the highway user revenue collected by the state. The highway user revenue consist of the gasoline and diesel fuel taxes as well as other transportation related fees. One half of the money is distributed on the basis of the population of an incorporated city/town as a percentage of the total of all incorporated cities/towns in the state. The remaining half of the money is distributed based on the level of gasoline sales in the county in which the municipality is located and the population of each city or town in the county. Highway user revenue funds may only be used for street and highway purposes. HOME - The largest federal block grant to State and local governments designed exclusively to create affordable housing for low income households. Indirect Cost - A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned, such as administrative support, facility maintenance or custodial services. Infrastructure - The basic facilities, services, and installations needed for the functioning of a community or society, such as transportation and communications systems, water and power lines, and public institutions including schools, post offices, and prisons. Interfund Transfer - The movement of monies between funds of the same governmental entity. Intergovernmental Revenue - Funds received from federal, state and other local government sources in the form of grants, shared revenue, and payments in lieu of taxes. Internal Services Charges - The charges to user departments for internal services provided by another government agency, such as data processing, fleet services and communications. Liability - Amounts owed for items received, services rendered, expenses incurred, assets acquired, construction performed, and amounts received but not as yet earned. Local Transportation Assistance Fund (LTAF) - Special revenue fund to account for the receipts and expenditures associated with LTAF monies. This state shared revenue is generated by the state lottery. Distribution is based upon the population of the city/town in relation to the total population of all cities/towns. Each city/town is entitled to receive a minimum of $10,000. A maximum of $23 million (if that amount is generated by the lottery) is distributed each year to cities/towns. The principal use of these funds is for transportation purposes. Levy - To impose taxes for the support of government activities. Line Item Budget - A budget prepared along departmental lines that focuses on what is to be bought. Long-Term Debt - Debt with a maturity of more than one year after the date of issuance. Maintenance of Effort - A transfer of General Fund dollars to Transportation to fulfill the statutory requirement placed on cities to maintain the expenditure of local revenue for streets at a level computed as an average of local funds expended for any four of the FY 1981-82 through FY 1985-86. Mandate - A binding obligation issued from an inter-governmental organization. For example, the state to a county which is bound to follow the instructions of the organization. Modified Accrual Basis - Refers to the accrual basis of accounting, which recognizes increases and decreases in financial resources only to the extent that they reflect near-term inflows or outflows of cash. Thus, under modified accrual basis of accounting, then, amounts are recognized as revenue when earned, only so long as they are collectible within the period or soon enough afterwards to be used to pay liabilities of the current period. Municipality - An urban district having corporate status and powers of self-government. Objective - A specific measurable and observable result of an organization's activity which advances the organization toward its goal. Operating Expenses - The cost for personnel, materials and equipment required for a department to function. Operating Revenue - Funds that the government receives as income to pay for ongoing operations, including such items as taxes, user fees, interest earnings, and grant revenue. Operating revenue is used to pay for day-to-day services. 309 City of Tempe 2011-12 Annual Budget Other Post-Employment Benefits - in addition to salary, an employee may earn benefits over their years of service that will not be received until after their employment ends. Post-employment benefits other than pensions generally take the form of health insurance and dental, vision, prescription or life insurance benefits provided to eligible retirees. As a group, these are referred to as Other Post-employment Benefits, or OPEB. Pay-As-You-Go Financing - A term used to describe a financial policy by which the capital program is financed from current revenue rather than through borrowing. Per Capita - Applies to a unit of population or a person and shows how much each would have if a commodity/expense was divided equally. Performance Budget - A budget wherein expenditures are based primarily upon measurable performance of activities and work programs. Performance Indicators - Specific quantitative and qualitative measure of work performed as an objective of the department. Performing Arts Fund - Used to account for the receipts and expenditures of Performing Arts monies. This tax is for the construction and operation of the performing and visual arts center. Personal Services - Expenditures for salaries, wages, and fringe benefits of a government's employees. Policy - A plan, course of action or guiding principle, designed to set parameters for decisions and actions. Prior Year Encumbrances - Obligations from previous years in the form of purchase orders or contracts which are chargeable to an appropriation, and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise terminated. Program Budget - A budget which allocates money to the functions or activities of a government rather than to specific items of cost or to specific departments. The City’s program budget is divided into six major programs: (1) General Services consists of: Mayor and Council; City Manager; Internal Audit; Diversity Program; Community Relations; City Clerk; Human Resources; City Attorney; Financial Services; Public Works; Information Technology; and Other Programs. (2) Development Services consists of: Development Services, Community Development, and Public Works – Design/Construction/Landscape maintenance. (3) Public Safety consists of: City Court; Police; and Fire. (4) Environmental Health consists of: Water Utilities; Public Works – Solid Waste; and Development Services – Code Enforcement. (5) Community Services consists of: Community Services – Recreation/Library/Social Services; Public Works – Park Maintenance; and Cemetery. (6) Transportation consists of: Public Works – Transit/Street Maintenance. Property Tax - A levy upon the assessed valuation of the property within the City of Tempe upon each $100 of valuation. Property taxes in Arizona consist of both primary and secondary levies. Primary Property Tax - A statutory limited tax levy which may be imposed for any purpose. Secondary Property Tax - An unlimited tax levy which may be used only to retire the principal and interest or redemption charges on bond indebtedness. Public Forums - A public meeting involving audience discussion. Purpose - A broad statement, in terms of meeting public service needs, that a department is organized to meet. Rainy Day Reserve - A long-term reserve in the event of a significant unforeseen event, economic downturn or liability. Reserve - An account used to indicate that a portion of a fund's assets are restricted for a specific purpose and is, therefore, not available for general appropriation. Resolution - A special or temporary order of a legislative body requiring less legal formality than an ordinance or statute. 310 City of Tempe 2011-12 Annual Budget Resources - Total amounts available for appropriation including estimated revenue, fund transfers, and beginning balances. Retained Earnings - An equity account reflecting the accumulated earnings of an enterprise or internal service fund. Revenue - Funds that the government receives as income. It includes such items as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenue and interest income. Revenue Bonds - Bonds usually sold for constructing a project that will produce revenue for the government. That revenue is pledged to pay the principal and interest of the bond. Revised Budget - A revised budget is a revision of the adopted budget previously submitted and authorized by a governing board. Right-of-Way - The land used by a public utility, road, or railroad. Rio Salado - Spanish for Salt River was a project to re-introduce water into a dry riverbed. In 1999, Tempe Town Lake was filled and it extends about 5.5 miles in length and one mile in width. Rio Salado Community Facilities District Fund - Special revenue fund established in 1987, under the laws of the State of Arizona. The purpose is to account for the receipts and expenditures associated with Tempe Town Lake. Rio Salado Fund - Special revenue fund to account for the receipts and expenditures of miscellaneous monies used to foster the development of Rio Salado. Risk Management - An organization goal to protect a government's assets against accidental loss in the most economical method. R.O.W. - Abbreviated form, see Right-of-Way. Significant Non-Routine Capital Expenditures - Expenditures for major projects that are typically “one time” in nature and involve the construction or expansion of new City facilities or City infrastructure, extensive renovation of existing facilities, the purchase of important capital assets, or the acquisition of new technology which will enhance service delivery. Source of Revenue - Revenue are classified according to their source or point of origin. Surplus - An excess of receipts over disbursements. Tax Levy - The resultant product when the tax rate per one hundred dollars is multiplied by the tax base. Taxes - Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments. Transfers In/Out - Amounts transferred from one fund to another to assist in financing the services for the recipient fund. Unauthorized General Obligation (G.O.) Bonds - General Obligation Bonds that have not been approved by residents via an election, but that are anticipated to be approved by residents via an election prior to their use as a capital project funding source. Unencumbered Balance - The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future purposes. Unreserved Fund Balance - The portion of a fund's balance that is not restricted for a specific purpose and is available for general appropriation. User Charges - The payment of a fee for direct receipt of a public service by the party who benefits from the service. Workload Indicator - A unit of work to be done (e.g., number of permit applications received, the number of households receiving refuse collection service, or the number of burglaries to be investigated). 311 City of Tempe 2011-12 Annual Budget Acronyms HUD-Housing and Urban Development HURF-Highway User Revenue Fund HVAC-Heating, Ventilation, and Air Conditioning ICMA-International City Management Association IMP-Integrated Master Plan ITS-Intelligent Transportation Systems ITD-Information Technology Department JCEF-Judicial Court Enhancement Fund JGMWTP-Johnny G. Martinez Water Treatment Plant KWRF-Kyrene Water Reclamation Facility LEED-Leadership in Energy and Environmental Design LRT-Light Rail Transit LTAF-Local Transportation Assistance Fund MAG-Maricopa Association of Governments MGD-Million Gallons per Day MMU-Malfunction Management Unit N/A-Not Applicable O&M-Operation and Maintenance OPEB-Other Post Employment Benefits OSHA-Occupational Safety & Health Administration PBV-Project Based Voucher PCN-Position Control Number PTF-Priority Transportation Fund RICO-Racketeer Influenced and Corrupt Organizations RMS-Records Management System ROW-Right-of-Way RPTA-Regional Public Transportation Authority SAFER-Staffing for Adequate Fire and Emergency Response SAI-Southern Avenue Interceptor SCADA-Supervisory Control and Data Acquisition SBP-Skill Based Pay SHP-Supportive Housing Program SROG-Sub Regional Operating Group SRP-Salt River Project STWTP-South Tempe Water Treatment Plant TCA-Tempe Center for the Arts WUD-Water Utilities Department ADA-American with Disabilities Act ADDI-American Dream Down Payment Initiative ADOT-Arizona Department of Transportation ADWR-Arizona Department of Water Resources APS-Arizona Public Service ARC-Annual Retiree Contribution A.R.S.-Arizona Revised Statutes AWA-America West Airlines AWWA-American Water Works Association ASU-Arizona State University CAD-Computer Assisted Dispatch CAFR-Comprehensive Annual Financial Report CAP-Central Arizona Project CAWCD-Central Arizona Water Conservation District CCTV-Closed Circuit Television CDBG-Community Development Block Grant CFD-Community Facilities District CIP-Capital Improvement Plan CMAQ-Congestion Mitigation and Air Quality CMMS-Computer Maintenance Management System COE-Cooperative Office Education COPS-Community Oriented Policing System CP/EV-Central Phoenix/East Valley DUI-Driving Under the Influence EECBG-Energy Efficiency and Conservation Block Grant EEOC-Equal Employment Opportunity Commission FAC-Finance Advisory Committee FEVA-Finance, Economy, and Veterans Affairs FTE-Full Time Equivalent FRWS-Field Report Writing System FSS-Family Self Sufficiency FTA-Federal Transportation Administration FY-Fiscal Year FYE-Fiscal Year Ending GAAP-Generally Accepted Accounting Principles GASB-Governmental Accounting Standards Board GIS-Geographical Information System G.O.-General Obligation HBN-High Tech, Nanotech, Biotech HOME-Home Ownership Made Easier HOPE-Homeowners Preserving Equity HPCC-Household Products Collection Center HPRP-Homelessness Prevention and Rapid Re-housig Program 312 City of Tempe 2011-12 Annual Budget Index A Building Safety....................................................... 119 Housing ................................................................. 122 Performance Budget.............................................. 117 Planning ................................................................ 120 Community Development Block Grant Revenue ......... 96 Community Profile ......................................................... 7 Community Relations Office ...................................... 124 Administration ........................................................ 125 Communication and Media Relations .................... 133 Neighborhood Services ......................................... 132 Performance Budget.............................................. 124 Community Services ................................................. 128 Administration ....................................................... 129 Arts and Library ..................................................... 130 Performance Budget.............................................. 128 Recreation Centers and Programs ........................ 132 Social Services ...................................................... 133 Comparative Operating Revenue by Source ............... 79 Comprehensive Financial Plan Assumptions ...................................................... 50, 52 Economic Outlook ................................................... 51 Enterprise Funds ..................................................... 62 Financial Action Plan ............................................... 73 Financial Plan Overview .......................................... 48 General Fund........................................................... 53 Methodology ............................................................ 49 Overview ................................................................. 48 Performing Arts........................................................ 57 Rio Salado/Community Facilities District Funds ...... 61 Transit Fund ............................................................ 55 Transportation Funds .............................................. 59 Cost of Services (Residential) ..................................... 44 Council Committees .................................................... 39 Acronyms .................................................................. 312 Arts and Library Performance Budget ....................... 130 Assessed Valuation (Secondary): Ten Year Historical Trends .................................... 196 B Bed Tax (Transient Lodging Tax) ................................ 83 Benchmarking, Performance ..................................... 104 Bonded Debt Limits Summary ................................... 194 Budget Basis, Budgetary Units, and Changes to Budget ................................................ 260 Budget Calendar ......................................................... 24 Budget Message ........................................................... 1 Budget Per Capita ............................................... 45, 103 Budget Policies ........................................................... 14 Budget Process Flowchart .......................................... 21 Budget Process Summary........................................... 22 Budget Resolution ..................................................... 251 Budget Schedules Estimated Revenue and Expenditures Summary .. 252 Expenditures Within Each Fund Summary ............ 257 Other Financing Sources and Interfund Transfers Summary............................................ 256 Revenue Other Than Property Taxes .................... 254 Summary by Department and Fund ....................... 258 Tax Levy and Tax Rate Information ....................... 253 C Calendar, Budget ........................................................ 24 Capital Improvements Program Capital Budget Policy........................................ 14,192 Financing ............................................................... 181 Impact on the Operating Budget ............................ 184 Overview............................................................ 3, 178 Process.................................................................. 179 Project Highlights ................................................... 180 Project Listing ........................................................ 197 Project Map ........................................................... 188 Significant Nonrecurring Project Expenditures ...... 187 Source of Funds .................................................... 190 Strategic Focus ...................................................... 191 Summary ............................................................... 189 Ten Year Historical Trends .................................... 196 Charges for Services Cultural and Recreational ........................................ 89 Development Related .............................................. 90 City Attorney Performance Budget ............................ 110 City Clerk Performance Budget ................................. 112 City Court Performance Budget ................................ 114 City Limits.................................................................... 10 City Manager Performance Budget ........................... 108 Citywide Overview of Operating Budget Debt Service, Revenue and Staffing ........................ 38 Community Development .......................................... 116 Administration/Economic Development ................. 118 D Debt Limits, Legal Bonded ........................................ 194 Debt Management Plan ............................................ 182 Debt Policy .......................................................... 14, 192 Debt Service Fund Balance, Unreserved .............. 27, 71 Debt Service Requirements ...................................... 196 Debt Service Ten Year Historical Trends .................. 196 Debt Summary .......................................................... 195 Department Expenditures, Summary by Fund .......... 258 Department Expenditures, Summary Within Each Fund ............................................................. 257 Departmental, Per Capita Performance Budget ........ 103 Departments, Performance Budget City Attorney .......................................................... 110 City Clerk ............................................................... 112 City Court............................................................... 114 City Manager ......................................................... 108 Community Development ...................................... 116 Community Relations Office .................................. 124 Community Services.............................................. 128 Diversity Office ...................................................... 136 Finance and Technology ....................................... 138 Fire ........................................................................ 146 Human Resources ................................................. 152 Internal Audit Office ............................................... 156 313 City of Tempe 2011-12 Annual Budget Fines and Forfeitures............................................... 91 Salt River Project In-Lieu Tax .................................. 85 State Shared Income Tax .......................................................... 88 Sales Tax ............................................................. 86 Vehicle License Tax ............................................. 87 Transient Lodging Tax ............................................. 83 Glossary of Terms ..................................................... 305 Golf Fund Comprehensive Financial Plan ................................ 68 Retained Earnings, Unreserved..............16, 18, 29, 67 Revenue .................................................................. 99 Grant Funded Personnel ........................................... 304 Mayor and Council ................................................. 106 Police ..................................................................... 158 Public Works .......................................................... 164 Tempe Learning Center ......................................... 154 E Engineering Performance Budget ............................. 167 Enterprise Funds, Comprehensive Financial Plans ..... 62 Enterprise Funds Revenue Golf Course Fees..................................................... 99 Solid Waste Fees..................................................... 98 Water/Wastewater User Fees .................................. 97 Estimated Revenues and Expenditures .................... 252 H Highway User Tax Fund (HURF) Fund Balances, Unreserved ................................... 28 Revenue .................................................................. 94 Housing Performance Budget ................................... 122 Human Resources Performance Budget ................... 152 F Financial Action Plan ................................................... 73 Financial Program Components .................................. 26 Financial Program Summary ....................................... 19 Financial Reporting Policies ........................................ 16 Finance and Technology ........................................... 138 Administration ........................................................ 139 Budget/Tax and License ........................................ 142 Finance .................................................................. 140 Information Technology ......................................... 144 Performance Budget .............................................. 138 Financial Structure and Organization Fund Structure ....................................................... 261 Level of Revenue and Expenditure Detail .............. 261 Relationship Between Budgeting and Accounting . 261 Types of Budgeting ................................................ 261 Fines and Forfeitures .................................................. 91 Fire ............................................................................ 146 Administration/Fire Prevention .............................. 147 Emergency/Medical Services ................................ 148 Homeland Security/Special Operations ................. 150 Performance Budget .............................................. 146 Support Services/Personnel Safety ....................... 151 Training/Professional Development ....................... 149 Fund Balances, Unreserved General Fund ..................................................... 27, 53 Performing Arts Fund......................................... 28, 57 Rio Salado and Community Facilities District Fund....................................................... 61 Transit Fund ...................................................... 28, 55 Transportation Fund .......................................... 28, 59 Fund Structure .......................................................... 261 Fund Summary ............................................................ 18 I Information Technology Performance Budget ........... 144 Internal Audit Performance Budget ........................... 156 L Local (City Sales Tax) ................................................. 82 Local Transportation Assistance Fund (LTAF) Fund Balances, Unreserved (10 Years) .................. 28 Revenue .................................................................. 95 M Mayor and Council Performance Budget .................. 106 Mission Statement......................................................... ix N Needs Assessment Phase .......................................... 22 Neighborhood Services Performance Budget ........... 126 O Operating Budget Overview ........................................ 30 Debt Service Fund ................................................... 32 General Fund........................................................... 30 Golf Fund ................................................................. 37 Performing Arts Fund .............................................. 33 Solid Waste Fund .................................................... 36 Transit Fund ............................................................ 33 Transportation Fund ................................................ 34 Water/Wastewater Fund .......................................... 35 Operating Budget Policies ........................................... 14 Operating Revenue ..................................................... 79 Organization Chart .............................................. xiii, 105 Other Financing Sources and Interfund Transfers .... 256 G General Fund Comprehensive Financial Plan ................................ 53 Fund Balances, Unreserved ............................. 27, 53 General Governmental Revenue Charges for Services Cultural and Recreational ..................................... 89 Development Related........................................... 90 City Property Tax ..................................................... 84 City Sales Tax ......................................................... 82 314 City of Tempe 2011-12 Annual Budget P Revenue By Source ................................................................ 77 Charges for Service Cultural and Recreational..................................... 89 Development Related .......................................... 90 City Property Tax ..................................................... 84 City Sales Tax ......................................................... 82 Community Development Block Grant ..................... 96 Comparative Revenue by Source ............................ 79 Fines and Forfeitures............................................... 91 Golf Course Fees .................................................... 99 Highway User Tax ................................................... 94 Local Transportation Assistance Fund .................... 95 Performing Arts Tax................................................. 93 Salt River Project In-Lieu Tax .................................. 85 Section 8 Housing Grant ......................................... 96 Solid Waste Fees .................................................... 98 State Shared Income Tax ........................................ 88 State Shared Sales Tax ........................................... 86 State Shared Vehicle License Tax........................... 87 Summary by Fund, Other than Property Tax ......... 254 Total Revenue ......................................................... 76 Transient Lodging Tax (Bed Tax) ............................ 83 Transit Tax............................................................... 92 Water/Wastewater User Fees.................................. 97 Rio Salado and Community Facilities District, Comprehensive Financial Plan ................................ 61 Per Capita Expenditures by Program .......................... 41 Per Capita Performance Budget ............................... 103 Performance Benchmarking ...................................... 104 Performance Budget Summary ................................. 102 Performance Budget, Departmental Per Capita ........ 103 Performing Arts Comprehensive Financial Plan ................................ 58 Fund Balances, Unreserved ............................. 28, 57 Personnel Changes for FY 2011-12 ....................................... 263 Grant Funded ........................................................ 304 Summary by Department ....................................... 262 Summary by Fund ................................................. 304 Ten-Year History...................................................... 45 Police ........................................................................ 158 Office of the Chief .................................................. 159 Operations ............................................................. 161 Organizational Services ......................................... 163 Performance Budget .............................................. 158 Support Services ................................................... 162 Projected Revenue and Expenditures Cemetery Fund ........................................................ 70 Debt Service Fund ................................................... 72 General Fund ........................................................... 54 Golf Fund ................................................................. 68 Performing Arts Fund............................................... 58 Rio Salado and Community Facilities District Funds ..................................... 62 Solid Waste Fund .................................................... 66 Transit Fund ............................................................ 56 Transportation Fund ................................................ 60 Water/Wastewater Fund .......................................... 64 Program Budget At a Glance .............................................................. 40 Department Summary.............................................. 43 Fund Summary ........................................................ 42 Per Capita ................................................................ 41 Property Tax Levy and Rate ....................................................... 253 Levy Policy ...................................................... 17, 192 Ordinance .............................................................. 250 Revenue .................................................................. 84 Public Works ............................................................. 164 Administration ........................................................ 166 Engineering ........................................................... 167 Field Operations .................................................... 168 Performance Budget .............................................. 165 Transportation ....................................................... 171 Water Utilities ........................................................ 174 S Sales Tax, City ............................................................ 82 Salt River Project In-Lieu Tax...................................... 85 Solid Waste Fund Comprehensive Financial Plan ................................ 66 Retained Earnings, Unreserved .............16, 18, 29, 65 Revenue .................................................................. 98 Schedule A ................................................................ 252 Schedule B ................................................................ 253 Schedule C ............................................................... 254 Schedule D ............................................................... 256 Schedule E ................................................................ 257 Schedule F ................................................................ 258 Section 8 Housing Revenue Trends............................ 96 Social Services Performance Budget ........................ 133 Special Revenue Community Development Block Grant ..................... 96 Highway User Tax ................................................... 94 Local Transportation Assistance Fund .................... 95 Performing Arts Tax................................................. 93 Section 8 Housing Grant ......................................... 96 Transit Tax............................................................... 92 State Shared Revenue Income Tax .............................................................. 88 Sales Tax................................................................. 86 Vehicle License Tax ................................................ 87 R Recreation Centers and Programs Performance Budget .............................................. 132 Relationship Between Operating and Capital Budgets ..................................................... 184 Reserve Policies ......................................................... 15 Retained Earnings, Unreserved Golf Fund ............................................... 16, 18, 29, 67 Solid Waste Fund .................................. 16, 18, 29, 65 Water and Wastewater Fund ................. 16, 18, 29, 63 315 City of Tempe 2011-12 Annual Budget T Transient Lodging Tax (Bed Tax) ................................ 83 Transit Fund Comprehensive Financial Plan ................................ 55 Fund Balances, Unreserved .............................. 28, 55 Revenue .................................................................. 92 Transportation Comprehensive Financial Plan ................................ 59 Fund Balances, Unreserved .................................... 59 Performance Budget .............................................. 171 Revenue Highway User Tax ................................................ 94 Local Transportation Assistance Fund ................. 95 W Water Utilities Performance Budget .......................... 174 Water/Wastewater Fund Comprehensive Financial Plan ................................ 63 Retained Earnings, Unreserved ........................................ 16, 18, 29, 63 Revenue .................................................................. 97 316 City of Tempe 2011-12 Annual Budget Office of Management and Budget Staff Even though the budget is heard by the Mayor and Council in March and April, its preparation begins months prior, with projections of City funding sources, remaining bond authorization, reserves, revenue, and expenditures. It continues through numerous phases and culminates with adoption in June. We recognize and appreciate that budgeting is an ongoing process of planning, monitoring, problem solving, and customer service throughout the fiscal year. Each year, every effort is made to improve both the budget process and the usefulness of budget documents. Cecilia Velasco-Robles Budget Manager Tom Mikesell Lead Budget and Finance Analyst Mark Day Senior Budget and Finance Analyst Adam Williams Senior Budget and Finance Analyst Anita Erspamer Executive Assistant The City of Tempe’s budget documents are available online at: www.tempe.gov/budget If you have any questions, call us at (480) 350-8350 Our mailing address is: City of Tempe Finance and Technology/Budget P.O. Box 5002 Tempe, Arizona 85280 317