TABLE OF CONTENTS City of Tucson Vision and Values Statement..................................................................................... City of Tucson Organization Chart Fiscal Year 2004 ....................................................................... City of Tucson Officials and Directors ............................................................................................... Budget Calendar for Fiscal Year 2004 ................................................................................................. How to Use This Budget ....................................................................................................................... i ii iii iv v SECTION A CITY MANAGER'S MESSAGE City Manager’s Message, City of Tucson Fiscal Year 2004 Adopted Budget .............................................. Budget Overview.................................................................................................................................................... A-1 A-6 SECTION B ADOPTED CHANGES Adopted Changes ................................................................................................................................................... Revenue Adjustments to the Fiscal Year 2004 Budget.................................................................................... Expenditure Adjustments to the Fiscal Year 2004 Budget ............................................................................. Elected and Official Mayor and Council........................................................................................................................................ City Manager .................................................................................................................................................. City Clerk ........................................................................................................................................................ City Attorney.................................................................................................................................................. Neighborhood Services City Court ....................................................................................................................................................... Community Services ..................................................................................................................................... Fire ................................................................................................................................................................... Library ............................................................................................................................................................. Neighborhood Resources ............................................................................................................................ Parks and Recreation .................................................................................................................................... Tucson City Golf........................................................................................................................................... Police ............................................................................................................................................................... Independent Police Auditor ........................................................................................................................ Office of the Public Defender .................................................................................................................... Environment and Development Development Services .................................................................................................................................. Comprehensive Planning Task Force ........................................................................................................ Solid Waste Management ............................................................................................................................. Transportation ............................................................................................................................................... Tucson Water................................................................................................................................................. Environmental Management ....................................................................................................................... B-1 B-2 B-5 B-7 B-8 B-9 B-10 B-11 B-13 B-15 B-17 B-19 B-21 B-23 B-24 B-26 B-27 B-28 B-29 B-30 B-32 B-34 B-35 TABLE OF CONTENTS ADOPTED CHANGES (Continued) Historic Preservation Office........................................................................................................................ Zoning Examiner .......................................................................................................................................... Strategic Initiatives Tucson Convention Center ......................................................................................................................... Office of Economic Development............................................................................................................. Intergovernmental Relations ....................................................................................................................... Tucson-Mexico Trade Office...................................................................................................................... Support Services Budget and Research..................................................................................................................................... Finance ............................................................................................................................................................ Human Resources ......................................................................................................................................... Information Technology .............................................................................................................................. Operations ...................................................................................................................................................... Procurement................................................................................................................................................... Equal Opportunity Office............................................................................................................................ Non-Departmental................................................................................................................................................. Position Changes to the Fiscal Year 2004 Budget ............................................................................................ B-36 B-37 B-38 B-39 B-41 B-42 B-43 B-44 B-45 B-46 B-48 B-50 B-51 B-52 B-55 SECTION C LEGAL AUTHORIZATION Legal Requirements Legal Requirements Imposed by the State................................................................................................ Legal Requirements Imposed by the City Charter................................................................................... The City’s Budget Process ........................................................................................................................... Statement Required by Arizona Revised Statutes 42-17102 ........................................................................... City of Tucson Property Tax Summary.............................................................................................................. City of Tucson Residential Property Owner Tax Valuation Fiscal Year 2003 Property Taxes ............................................................................................................... Budget Adoption Resolution No. 19568............................................................................................................ C-1 C-2 C-3 C-5 C-6 C-7 C-8 SECTION D COMMUNITY STATISTICAL PROFILE Area and Population Growth Charts .................................................................................................................. Number of City Employees Per 1,000 Population Chart................................................................................ Selected Economic Indicators – Tucson Metro Area ...................................................................................... Community Profile................................................................................................................................................. Benchmarking Project ........................................................................................................................................... D-1 D-2 D-3 D-4 D-9 TABLE OF CONTENTS COMMUNITY STATISTICAL PROFILE (Continued) Benchmark Metropolitan Cities and 2000 Population..................................................................................... Economic Benchmarks ......................................................................................................................................... Demographic Benchmarks ................................................................................................................................... D-10 D-11 D-16 SECTION E SUMMARY INFORMATION Components of the Total Financial Plan ........................................................................................................... Revenues-Adopted Fiscal Year 2004 Sources and Pie Chart.......................................................................... Appropriations-Adopted Fiscal Year 2004 Summary and Pie Chart............................................................. Comparison of General Purpose Revenues and Total Revenues .................................................................. Revenues and Appropriations Summary Fiscal Year 2004 Adopted............................................................. Revenues and Expenditures Comparisons......................................................................................................... Summary of Expenditures by Department........................................................................................................ Summary by Character of Expenditures ............................................................................................................ Revenue Detail - All Funds Summary ................................................................................................................ General Fund .......................................................................................................................................................... Special Revenue Funds.......................................................................................................................................... Enterprise Funds.................................................................................................................................................... Debt Service Funds................................................................................................................................................ Capital Projects Funds........................................................................................................................................... Revenue Descriptions............................................................................................................................................ Impact of Capital Projects on the Operating Budget....................................................................................... Ten-Year Adopted Comparison - Total City Staffing ..................................................................................... Ten-Year Adopted Comparison - Total City Staffing with Fiscal Years 2003 and 2004 ........................... Full-Time Equivalent Positions Permanent and Non-Permanent Fiscal Years 2003 and 2004......................................................................................................................... Full-Time Equivalent Positions General Purpose Funds and Other Funds Fiscal Years 2003 and 2004.......................................................................................................................... Fiscal Year 2004 City of Tucson Annual Salary Scale - Exempt ................................................................... Fiscal Year 2004 City of Tucson Annual Salary Scale Police - Exempt ....................................................... Fiscal Year 2004 City of Tucson Annual Salary Scale Fire - Exempt ........................................................... Fiscal Year 2004 City of Tucson Annual Salary Scale Legal - Exempt ........................................................ Fiscal Year 2004 City of Tucson Annual Salary Scale Information Technology - Exempt....................... Fiscal Year 2004 City of Tucson Annual Salary Scale Golf and Ranch - Exempt ..................................... Fiscal Year 2004 City of Tucson Classified Annual Salary Scale - Non-Exempt Schedule ....................... Fiscal Year 2004 City of Tucson Classified Annual Salary Scale Police - Non-Exempt ........................... Fiscal Year 2004 City of Tucson Classified Annual Salary Scale Fire - Non-Exempt ............................... Fiscal Year 2004 City of Tucson Classified Annual Salary Scale Hourly (Seasonal or Intermittent) Schedule - Non-Exempt................................................................................ E-1 E-2 E-3 E-4 E-5 E-6 E-7 E-8 E-9 E-11 E-17 E-22 E-24 E-25 E-26 E-38 E-39 E-41 E-43 E-45 E-47 E-47 E-48 E-48 E-49 E-49 E-50 E-51 E-51 E-52 TABLE OF CONTENTS SECTION F CAPITAL BUDGET SUMMARY Capital Budget Summary....................................................................................................................................... Capital Budget Summary by Department - Table I.......................................................................................... Capital Budget Summary by Funding Source - Table II.................................................................................. Capital Budget Summary of Operating Budget Impacts - Table III ............................................................. City Court (Capital)................................................................................................................................................ Community Services (Capital).............................................................................................................................. Fire (Capital)............................................................................................................................................................ Library (Capital)...................................................................................................................................................... Neighborhood Resources (Capital)..................................................................................................................... Parks and Recreation (Capital)............................................................................................................................. Tucson City Golf (Capital) ..................................................................................................................................... Police (Capital).......................................................................................................................................................... Solid Waste Management (Capital)........................................................................................................................ Transportation (Capital).......................................................................................................................................... Tucson Water (Capital) ........................................................................................................................................... Environmental Management (Capital).................................................................................................................. Operations (Capital)................................................................................................................................................. General Expense ..................................................................................................................................................... F-1 F-4 F-5 F-7 F-8 F-9 F-10 F-11 F-12 F-13 F-15 F-16 F-17 F-18 F-22 F-26 F-27 F-28 SECTION G CITY STRATEGIC PLAN City Strategic Plan .................................................................................................................................................. City Strategic Plan Focus Areas and Strategies ................................................................................................. Livable Tucson Goals............................................................................................................................................ G-1 G-4 G-5 SECTION H RIO NUEVO Rio Nuevo Project ................................................................................................................................................. H-1 SECTION I GLOSSARY Glossary of Terms.................................................................................................................................................. Summary of Significant Accounting Policies..................................................................................................... Investment Policy................................................................................................................................................... Acronyms................................................................................................................................................................. I-1 I-8 I-10 I-11 TABLE OF CONTENTS SECTION J INDEX Index ................................................................................................................................................................ J-1 CITY OF TUCSON ORGANIZATION CHART FISCAL YEAR 2004 Mayor and Council C ity Clerk Assistant City Manager City Attorney City Manager Assistant City Manager Assistant City Manager Deputy City Manager Neighborhood Services Environment and Development Strategic Initiatives City Court Development Services Tucson Convention Center Budget and Research Economic Development Finance Community Services Comprehensive Planning Task Force Support Services Fire Solid Waste Management Intergovernmental Relations Human Resources Library Transportation Tucson-Mexico Trade Office Information Technology** Neighborhood Resources Tucson Water Parks and Recreation* Environmental Management Operations Police Zoning Examiner Agenda*** Rio Nuevo Project Procurement Independent Police Auditor Equal Opportunity Office Public Defender Organizational Development*** ii Chief Information Officer** * Includes Tucson City Golf ** The Chief Information Officer is also the Information Technology Director ***Budgeted under the City Manager CITY OF TUCSON OFFICIALS AND DIRECTORS OFFICIALS STRATEGIC INITIATIVES City Manager, James Keene Economic Development, Kendall Bert Deputy City Manager, Mike Letcher Intergovernmental Relations, C. Mary Okoye Assistant City Manager, Liz R. Miller Rio Nuevo Project, Karen Thoreson, Acting Assistant City Manager, Benny J. Young Tucson Convention Center, Richard Singer Assistant City Manager, Karen Thoreson Tucson-Mexico Trade Office, Augustine Garcia Chief Information Officer, Todd Sander SUPPORT SERVICES City Attorney, Michael House Agenda, Joan Stauch City Clerk, Kathleen S. Detrick Budget and Research, Ned Zolman NEIGHBORHOOD SERVICES Equal Opportunity Office, Liana Perez, Acting City Court, Antonio Riojas Finance, J. Scott Douthitt Community Services, M. Emily Nottingham Human Resources, Suzanne Machain, Acting Fire, Dan Newburn Information Technology, Todd Sander Independent Police Auditor, Liana Perez Operations, Todd Sander, Acting Library, Betsy Stunz-Hall, Acting Neighborhood Resources, Paul Swift Organizational Development, Julie Edmonds-Mares Parks and Recreation, Bob Martin, Acting Procurement, Wayne A. Casper Police, Richard Miranda Public Defender, Charles Davies ENVIRONMENT AND DEVELOPMENT Comprehensive Planning Task Force, Albert Elias Development Services, Ernest Duarte Environmental Management, Karen Masbruch Solid Waste Management, Eliseo Garza Transportation, James W. Glock Tucson Water, David Modeer Zoning Examiner, Peter Gavin iii BUDGET CALENDAR FISCAL YEAR 2004 Sequence of events in the budget-setting process for Fiscal Year 2004. October 7, 2002 Mayor and Council Discussion of Fiscal Years 2003 and 2004 Budgets November 8, 2002 Mayor and Council Fiscal Year 2004 Budget Workshop November 11, 2002 City Manager begins review of the Fiscal Year 2004 budget deficit and budget balancing strategies November 22, 2002 Five-year capital improvement program requests submitted by departments to Budget and Research November 25, 2002 Second Mayor and Council Fiscal Year 2004 Budget Workshop December 2, 2002 City Manager presents budget reduction options to Mayor and Council February 10, 2003 Mayor and Council study session on the Citizens Bond Project Oversight Committee Report March 3, 2003 Submission of the City Manager's Recommended Update to the Fiscal Year 2004 Budget to Mayor and Council March 17, 2003 Mayor and Council study session on Discussion of Revenue Options March 17, 2003 Public Hearing on the Recommended Budget March 24, 2003 Mayor and Council study session for the purpose of discussing budget reductions April 7, 2003 Mayor and Council study session for the purpose of discussing budget reductions April 14, 2003 Mayor and Council budget wrap-up study session April 21, 2003 Fiscal Year 2004 Tentative Budget adoption April 28, 2003 Truth in Taxation public hearing on primary property tax levy for Fiscal Year 2004 April 28, 2003 Public Hearing on Fiscal Year 2004 tentative budget April 28, 2003 Special Mayor and Council meeting for purpose of final budget adoption May 5, 2003 Adoption of Fiscal Year 2004 property tax levies iv HOW TO USE THIS BUDGET This document guide outlines the City of Tucson’s Fiscal Years 2003 and 2004 Biennial Budget Adopted Update for Fiscal Year 2004. Copies of the budget are available at all branches of the Tucson-Pima Public Library, the University of Arizona Main Library, Pima Community College branch libraries, the City Clerk’s Office, and the Department of Budget and Research. Information may be obtained by calling the Department of Budget and Research at (520) 791-4551 or emailing the department at budget&research@ci.tucson.az.us. that compares Tucson to comparable cities in the region. Summary Information - Schedules contained in this section provide summary level information on the consolidated (operating and capital) city budget. Expenditures and revenue information, descriptions of funds, debt service information, staffing histories, and pay scales are summarized here. This section is particularly helpful if the reader is interested in an overview of the city budget. Capital Budget Summary - This section provides a summary of the first year, Fiscal Year 2004, of the Five-Year Capital Improvement Program. For Fiscal Year 2004 only one volume is used to present the adopted changes to the biennial budget. This document may be used with the adopted biennial budget document for Fiscal Years 2003 and 2004. The adopted update is organized as follows. City Strategic Plan - This section summarizes the strategic plan for the city including focus areas and the 17 Livable Tucson Goals that emerged from community discussions. City Manager’s Message - This section includes the letter from the city manager transmitting the biennial budget update to the Mayor and Council and an overview of the budget. In the transmittal letter, the city manager highlights the key policy issues and programs in the biennial budget. The overview includes the following: • General Purpose Funds Budget • All Funds Budget • Staffing • Citizen Impacts Rio Nuevo - This is a summary of the Rio Nuevo district budget. Rio Nuevo is not part of the city budget and is included for information purposes. Glossary - The glossary defines terms and acronyms used in the budget. Index - The index provides an alphabetical listing of the contents of the budget. Adopted Changes - This section summarizes the changes from the approved Fiscal Year 2004 budget to the adopted budget for both revenues and expenditures. Major changes are highlighted for each department including reductions adopted to balance the budget. Legal Authorization - State and local legal provisions are presented, including the process for budget adoption and setting the property tax, public hearings, and a property tax summary. The Mayor and Council resolution adopting the budget is also included in this section. Community Statistical Profile - This section of the summary provides the reader with demographic information on Tucson and benchmark information v DISTINGUISHED BUDGET PRESENTATION AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented an Award for Distinguished Budget Presentation to the City of Tucson for its Biennial Budget for the Fiscal Year beginning July 1, 2002 through June 30, 2004. 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 communication device. 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. vi OFFICE OF THE CITY MANAGER July 1, 2003 Honorable Mayor and Council Members: On April 28, 2003, the Mayor and Council adopted the $957.8 million Fiscal Year 2004 budget. This is the second year of the Fiscal Years 2003 and Year 2004 Biennial Budget approved by the Mayor and Council in June of 2002. This has been the most difficult budget year of my career. I am not alone. City managers, mayors and councils, and governors across the nation are dealing with the worst fiscal environment in 50 years. The budget is balanced, but it is not a budget that pleases me. It is a result of the reality of our difficult times. As you know, we used a different process and schedule this year, necessitated by the dire fiscal situation of the city and the state. At Council’s direction, we began work sessions with Mayor and Council last fall. These sessions covered our emerging revenue and expenditure situation in some detail. We also presented “trial budgets” of the revenue and expenditure options we would consider, and sought Council direction and feedback. As a result, both Mayor and Council and the community were uniquely informed and involved this year in a complex task that is one of the City Manager’s prime responsibilities under the Charter—preparing a recommended budget for the Council. This early involvement and option sharing in a public setting allowed me to present a recommended budget that had no surprises or unfamiliar budget balancing ideas, despite the magnitude of our problems. The deficit between revenue and expenditures in the General Fund for Fiscal Year 2004 was $43.6 million. This was the gap that we had to close either through expenditure cuts, revenue increases, or a combination of the two. The General Fund budget that you adopted did close that gap and was balanced at $388.2 million. This was a reduction of 3.9% and $15.7 million from the Mayor and Council Approved Fiscal Year 2004 Budget and a reduction of $2.1 million from the Fiscal Year 2003 budget. In order to balance the General Funds budget, 138.5 positions were eliminated. Ten other positions in Police were not eliminated but were not funded for the year. The position reductions to balance the budget were offset by the addition of 12 positions during Fiscal Year 2003, and 3 positions added for the Tucson Clean Program. The All Funds Budget for the city was adopted at $957.8 million, a 9% increase over the approved Fiscal Year 2004 budget. Although the operating budget was reduced by $5.6 million to $696.1 million, the capital budget was increased, primarily due to carry forward from Fiscal Year 2003. The All Funds Budget is 2.4% higher than Fiscal Year 2003. A-1 Consistent with the decrease in operating funds, the size of our government continues to shrink. The number of employees per capita is down to 11.2 per 1,000 compared to 12.3 per 1,000 just three years ago. This is a decline of 9%. If we look back further, our number of employees per capita is at its lowest point in at least ten years. FY 2004 General Purpose Funds Budget Fire 13% Transit 12% Parks and Recreation 9% Police 28% Judicial 5% Solid Waste Management 6% Library 2% Other Services 14% The fiscal crisis facing the city is most dramatically affecting General Purpose Funds, which provide for the following core services of the city: Police, Fire, Judicial Services, Parks and Recreation, Libraries, Solid Waste, and Transit. Approximately 74% of the General Purpose Funds go to fund these key services. Additionally, 14% of the General Fund provides funding for such Other Services as Mayor and Council, Comprehensive Planning Task Force, Development Services, Tucson Convention Center, and Neighborhood Resources. Conclusion: when we add in significant Information Technology costs and Operations costs for fleet and building maintenance (included within the General Support area) that support Police and Fire, almost 50% of the General Fund goes to Public Safety. General Support 12% As we sought to minimize cuts to public safety when we balanced the budget, it was difficult to cut $43.6 million out of the remainder of the General Fund. If Public Safety was not cut at all, other services would have to absorb cuts of 20% to balance the budget. This means Parks and Recreation, Libraries, Solid Waste, and Transit--all services directly connected to quality of life in our city--would have been cut dramatically. Budget Balancing Strategy After careful and continuous review of those implications, the Mayor & Council settled on a series of recommendations that balanced the Fiscal Year 2004 Budget using three strategies. First, the city did not fund any pay raises for employees in Fiscal Year 2004. This includes cost-of-labor pay raises and merit pay increases for performance. This provided $8.1 million of the needed $43.6 million. Second, program and service cuts totaling $20.6 million were approved. These cuts include direct service reductions and reorganizations, consolidations, and streamlining for efficiency. Finally, the budget includes $16.7 million in revenue increases through fee and tax increases to reduce the impact of further reductions on key city services. (The revenue increase nets out to $14.9 million due to increased program spending of $1.8 million, as a condition of two of the revenue increases.) During the numerous citizen town halls sponsored by the Mayor with each Council Member and through the budget comment line and on-line discussions, it became clear that most of those citizens who spoke out on our budget problem would prefer paying for some services the city provides, rather than having the service cut. Therefore, the adopted budget includes revenues that allow us to maintain some of these direct services without serious reductions. These services are concentrated in those areas that especially affect community quality and youth, in particular. A-2 I believe that this budget takes an even-handed approach to resolving our very difficult fiscal problems for the upcoming year. At the same time it preserves our commitment to the city strategic plan. The recommendations were designed to minimize future damage, share the burden of the cuts among employees and the community, and across a broad array of service areas. The budget requires a significant internal focus on efficiency changes and consolidations to continue to provide service to our citizens. Most of the revenue increases are charges associated with maintaining a particular service. At the same time, this budget does not advance us towards a permanent resolution of the city’s systemic, structural fiscal problem. We will continue to have structural deficits in the next few years that will require more severe cuts unless we expand our revenue base. Nature of the Budget Problem Across the nation, states and local governments are suffering through the worst financial crisis since World War II. While recent national media attention focuses on the plight of states and governors, all the problems of the states filter down to local governments and combine with our own concurrent revenue problems to create a very difficult situation. After all, cities are where people live and where their quality of life suffers when key city services and investments decline. Arizona is one of the most financially troubled states in the nation. Tucson is one the most financially at-risk cities in the state. All medium to large cities in our state are having problems due to the economic downturn. We also have a structural deficit driven by unique local factors. We’ve discussed those problems before: the city-county fragmentation issue, the pattern of regional growth, the growing socio-economic divide between the city and the unincorporated county, our undiversified revenue system, our backlog of infrastructure and service needs stretching back many years, and demanding and challenging demographics. We’re the 29th largest city in the nation, and we fund ourselves primarily with a single local revenue source, the sales tax, in tough economic times. The Fiscal Year 2004 Budget adopted by Mayor and Council is balanced. But we are not out of the woods. Far from it. We will face the need to cut another $26 million from the General Fund in Fiscal Year 2005, followed by another $12 million in Fiscal Year 2006. Details Expenditure Reductions We are cutting internal city operations and some direct services and programs to the public totaling $20.6 million. This includes about $7.4 million in one-time cuts, such as deferring purchase of new fire equipment, delays in opening new libraries and fire stations, deferral of the Mountain Avenue road project in order to fund Sun Tran, reduced landfill operations and maintenance, and deferrals of vehicle purchases. Other reductions vary from requiring self-check out of books at libraries to eliminating a range of service positions in Budget, Finance, City Manager’s Office, and Human Resources, to cutbacks in Fleet Services, to reduced leisure class programs in Parks and Recreation, to cuts in economic development. Outside agency funding has been reduced by 10% except that human services funding has not been cut. In all, 138.5 FTEs were eliminated. Another ten positions in Police are not funded. Most of these positions were vacant due to a hiring freeze in place since the fall of 2002. For those that were occupied, we developed an employee transition process to transfer employees into vacant positions to avoid layoffs. This was one key reason for presenting the budget to the Council in March, with an end of April adoption date, so that we A-3 could ensure adequate time to reassign employees as much as possible and avoid layoffs of civil service employees. Employee Pay Freeze The adopted budget cuts funding for all employee raises for Fiscal Year 2004. However, the city will pick up all of the pension and employee health care cost increases. This avoids a drop in take-home pay for city employees in a very challenging budget year. Revenue Increases The adopted budget includes a number of fee increases and tax adjustments. First, the Mayor and Council approved a use tax that will yield $4 million. The bed tax was increased 2%, with a guaranteed portion of the revenue going to fund the Metropolitan Tucson Convention and Visitors Bureau (MTCVB), and their removal from the outside agency funding process. (Yield $2.4 million with a net of $1.5 million). The adoption of a $2 per month environmental service fee for all residential households will yield $2 million for the Tucson Clean Program. These revenues will maintain the brush and bulky program in Solid Waste and enhanced neighborhood clean-ups throughout the year. In place of the across-the-board Parks and Recreation fee increases, we have targeted fee increases totaling $1 million. These place greater burdens on adult sports programs, non-resident charges, and attempt to keep youth charges low. Where there are some fees on youth activities, such as in the aquatics area, slight increases were adopted as an alternative to closing swimming pools. We will maintain the region's most wide-reaching and affordable after-school care and summer care program for children, KIDCO, by increasing registration fees. We have developed a plan to ensure that the most needy families continue to have access to KIDCO and to face only very modest increases through a sliding scale. Recreation center hours have not been cut. Parks and Recreation staff will also more aggressively market the use of some of our facilities to the private sector to generate additional revenues. Also, a miscellaneous array of fee increases in courts, development services, and other miscellaneous services have been approved. (Yield $5.7 million). Finally, the budget presumes Pima County would fund an additional $700,000 in libraries through either a Library District Tax increase of about 1.5 cents, or provide the funding from the District’s fund balance. This avoids further library job reductions and cutting back library hours. With these revenue increases, the increase for a typical homeowner’s bill for city services will increase $2.30 per month, from $56.56 to $58.86. The Budget Overview starting on page A-6 provides a summary of changes made to the budget that was approved in June 2002 in order to adopt a balanced budget. Where Do We Go From Here? It is becoming increasingly difficult to believe we can continue to reduce our budgets and our services and feel that we are moving the city forward. You and I can't be happy with the prospects for our future if we continue on this path. Now that the Fiscal Year 2004 Budget is balanced, we need to turn our attention to the years that follow. There are needed services and investments that we have avoided for a long time which we must make. We must ensure that we have a competent, well-trained work force that is competitively compensated. And we must add, once and for all, some of the revenue options used by other cities in our state to ensure a more livable city. A-4 I want to thank the Mayor and Council for their efforts in working through the difficult decisions required to adopt a balanced budget for Fiscal Year 2004. I also want to thank Ned Zolman and the Budget office staff for all their work, along with Kay Gray and Scott Douthitt of Finance, and the entire Executive Leadership Team, which has worked hard all year on putting together these recommendations. Finally, I want to thank all city employees, who have also been important to this process, our recommendations, and upon whom we’ll all depend in the future to help transform our city into a Top Ten City. We have a huge task ahead of us which requires leadership, vision, reality, ethics, and courage. I look forward to working with Mayor and Council to prepare for our future. Respectfully Submitted, James Keene City Manager A-5 BUDGET OVERVIEW The Tucson City Charter requires that the City Manager submit a recommended budget to the Mayor and Council on or before the first Monday in May for the following fiscal year. The Mayor and Council review the City Manager’s recommended budget and are required by the State of Arizona to adopt a balanced budget on or before the third Monday in August. For Fiscal Year 2004, the recommended budget was submitted to the Mayor and Council on March 3. The Mayor and Council adopted the budget on April 28. The Fiscal Year 2004 budget is the second year of the biennial budget for Fiscal Years 2003 and 2004. The adopted budget for Fiscal Year 2004 totals $957.8 million: $388.2 million from General Purpose Funds, $144.3 million from Enterprise Funds (Golf and Tucson Water), and $425.3 million in other restricted Fiscal Year 2004 funds. $957.8 million General Purpose Funds $388.2 Enterprise Funds $144.3 Other Restricted Funds $425.3 This Budget Overview, which summarizes changes from the approved budget to the adopted budget for Fiscal Year 2004, is organized into four sections: General Purpose Funds Budget All Funds Budget Staffing Citizen Impacts GENERAL PURPOSE FUNDS BUDGET The city's total budget is the sum of the General Purpose Funds Budget and the Restricted Funds Budget (Enterprise Funds + Other Restricted Funds). The General Purpose Funds Budget contains the funds that the Mayor and Council have full discretion to allocate. It is used for basic city services, such as police and fire protection, mass transit service, solid waste collection and recycling, parks, and libraries. For Fiscal Year 2004, the adopted General Purpose Funds Budget totals $388.2 million. That is a decrease of $15.7 million from the approved Fiscal Year 2004 budget, and a decrease of $2.1 million from the Fiscal Year 2003 Adopted Budget. $ millions General Purpose Funds Budget $390.3* FY 2003 Adopted $403.9* FY 2004 Approved $388.2 FY 2004 Adopted * Excludes $2 million now restricted Like many state and local governments, the city is experiencing a significant decline in general purpose revenues. Significant expenditure reductions in the Fiscal Year 2004 General Purpose Funds Budget were necessary to bring it into balance. Projected Budget Deficits The budget process for Fiscal Year 2004 began with the development of the Fiscal Years 2003 and 2004 Biennial Budget. When Mayor and Council adopted the Fiscal Year 2003 Budget in June 2002, a Fiscal Year 2004 Budget was also approved. At that time, the Fiscal Year 2004 Approved Budget was not balanced; it had a deficit of $10 million in the General Purpose Funds Budget. A-6 Projected Deficit of $43.6 million for FY 2004: Millions $ (10.0) (13.8) (8.4) (6.4) (3.2) (1.2) (0.6) $ (43.6) Deficit from FY 2004 Approved Budget Decreased state sales tax and income tax Increased pension and medical costs Decreased city sales tax collection Decreased parks-related revenues Decreased bed tax receipts Other expenditure and revenue changes Projected FY 2004 Deficit Projected Deficits Over 3 Years $ millions FY 2004 FY 2005 Fiscal Year 2004 Deficit. As revenue and expenditure projections were revised in preparation for a recommended Fiscal Year 2004 budget, the $10 million deficit grew to $43.6 million. Most of the deficit increase was due to revised revenue projections for city sales tax and stateshared sales and income taxes. The national economy has suffered a downturn, which impacts directly on income earnings and consumer spending, which translates to reduced sales and income tax receipts. Pension and medical costs have also risen consistent with national trends. Three Year Problem. The city was not just facing a $43.6 million deficit in Fiscal Year 2004. Due to inflation and other commitments, an $81 million shortfall was projected over the next three years. FY 2006 -$12 The deficit projections for Fiscal Years 2005 and 2006 assumed that most changes made to balance the Fiscal Year 2004 budget would be permanent and ongoing. -$26 -$43 Balancing the Recommended FY 2004 Budget To develop a balanced budget recommendation for Fiscal Year 2004, expenditure reductions and revenue increase options were presented to Mayor and Council at two budget workshops. The presented options Balancing the Recommended FY 2004 Budget ranged from employee compensation adjustments Millions to reductions in public services. Opening Deficit Expenditure Solutions: Defer employee pay increases One-time reductions Internal service reductions Program reductions Organization and process change cuts Other miscellaneous reductions Revenue Solutions: Primary property tax raised to maximum New Tucson Clean Program fee 2% bed tax increase Solid Waste fee increases City Court revenue increase Parks fee increases Development fee and revenue increases Pima County contribution increase Other miscellaneous changes Closing Deficit $ (43.6) 8.1 7.4 5.3 4.6 3.0 0.8 29.2 4.6 2.0 1.5 1.5 1.5 1.0 0.7 0.7 0.9 14.4 $ -0- A-7 To bring the opening deficit of $43.6 million down to zero, a mix of expenditure and revenue solutions were included in the Fiscal Year 2004 Recommended Budget of $382.4 million. Expenditure Solutions: Cuts totaling $29.2 million were recommended in department expenditures: $8.1 million saved by deferring employee pay increases for a year, $13.7 million reduced through permanent cuts, and $7.4 million from one-time cuts. In balancing the recommended budget, every effort was made to limit the impact on the public services. As a result, $8.3 million in reductions were through internal organization and process changes ($3.0 million) and reductions in internal services ($5.3 million). Program reductions that would directly impact the public totaled $4.6 million including cuts to Parks and Recreation programs, consumer affairs services, and Back to Basics funding. One-time reductions included delayed projects such as new library branches and a new fire station, as well as deferred vehicle and equipment replacement. Revenue Solutions: Most of the recommended revenue increases came from taxes and fees. These revenue increases were projected to generate $16.2 million in additional revenues; however, $1.8 million in related expenditures resulted in a net of $14.4 million. Revenues were looked at only after it became apparent that continuing to balance the budget through service reductions would seriously impact the community. The following tax and fee changes were recommended: raising the primary property tax by 15¢ to the maximum for $4.6 million, increasing the bed tax by 2% for $1.5 million, and a new environmental service fee for $2 million. Other fee increases and fee structure changes are in parks fees, landfill tipping fees, commercial refuse collection fees, and zoning fees. The Pima County contribution increase came from the city's request for an increase of 1.5¢ (per $100 of assessed valuation) to the county's Library District property tax rate. Changes from the Recommended Budget to the Adopted Budget The General Purpose Funds Budget was adopted at $388.2 million, an increase of $5.8 million over the recommended budget of $382.4 million. Following is a brief discussion of the expenditure and revenue changes made by Mayor and Council. For more detail, see Section B. Changes from Recommended to Adopted Recommended Budget Adopted Budget Increase Expenditure Changes: Funds carried forward Restoration of program service cuts New debt service Other miscellaneous changes Millions $ 382.4 _388.2 $ 5.8 $ $ 4.8 0.5 0.4 0.1 5.8 Expenditure Changes: Most of the increase is attributable to funds of $4.8 million carried forward for acquisitions and projects that will not be completed in Fiscal Year 2003. The restoration of program service cuts added $0.5 million: $0.2 million for youth employment, $0.2 million for civic events, and $0.1 million for workforce development. An increase of $0.4 million was included for debt service on certificates of participation for construction of a police substation (covered by rental revenue). The remaining $0.1 million is in miscellaneous other changes. Revenue Changes: The primary property tax was left at its current rate of $0.2089 per $100 of $ (3.6) assessed valuation, which reduced revenues by $3.6 (1.2) million. A proposed change to landfill tipping fees 4.8 4.0 was also rejected, reducing revenues by another 1.8 $1.2 million. These reductions were primarily offset by Mayor and Council approval of a use tax $ 5.8 with estimated receipts of $4 million. Funds carried forward of $4.8 million provide for acquisitions and projects that will not be completed in Fiscal Year 2003. Increases to miscellaneous fees and income, such as court administration fees, interest earnings, rental income, and fund balance total $1.8 million. Revenue Changes: Primary property tax left at current rate Eliminated proposed change to landfill fees Funds carried forward Implement use tax Miscellaneous fees, income and use of fund balance A-8 General Purpose Funds Budget – Where the Money Comes From Funding that can be used for general purposes comes either from city-generated revenue or state-shared revenue. In total, adopted General Purpose Funds Budget revenues decreased by $5.7 million from the approved budget for Fiscal Year 2004. That decline, added to the $10 million deficit in the approved budget, brings the total General Purpose Funds Budget decrease to $15.7 million. Fiscal Year 2004 General Purpose Funds - Revenues $388.2 million State-Shared Sales Tax 10% City Sales Tax 44% State-Shared Other 6% State-Shared Income Tax 11% City Primary Property Tax 1% Brought Forward 2% Miscellaneous City Revenues 26% General Purpose Funds Budget – Revenues ($ millions) State-Shared Revenues: Income Tax Sales Tax Other State-Shared Sub-Total Adopted FY 2003 Approved FY 2004 $ 52.4 39.5 21.2 113.1 $ 54.6 41.4 21.7 117.7 $ 43.4 38.8 23.0 105.2 $ (11.2) (2.6) 1.3 (12.5) 166.3 4.6 91.0 261.9 174.6 3.9 96.1 274.6 168.2 4.9 100.9 274.0 (6.4) 1.0 4.8 (0.6) City Revenues: Sales Tax Primary Property Tax Other * City Sub-Total Brought Forward Total Deficit Adopted FY 2004 FY 2004 Changes 15.3 1.6 9.0 7.4 $ 390.3 $ 393.9 $ 388.2 $ (5.7) $ $ 10.0 $ $ (10.0) -0- -0- *TEAM (Transportation Enterprise Area Management) parking revenues of $2 million have been recategorized from General Purpose Funds to Restricted Funds. A-9 Revenue Changes – General Purpose Funds Budget Following are brief explanations of the revenue differences between the Fiscal Year 2004 Adopted Budget and the Fiscal Year 2004 Approved Budget. For more detail, see Section E. State-Shared Revenues. Annually, the State of Arizona distributes a portion of its revenue receipts to cities and counties. The state-shared revenues that are used by the city for general purposes are state income tax, state sales tax, state auto lieu tax, and lottery proceeds. These revenues account for 27% of the General Purpose Funds Budget. General Purpose Funds State-Shared Revenues $55 $ millions $52 $43 $39 $41 $40 $23 $22 $21 For the Fiscal Year 2004 Adopted Budget, stateshared revenues are projected at $105.2 million. State Income Tax State Sales Tax State Other The decrease of $12.5 million is 11% less than in the approved budget for Fiscal Year 2004. The most significant component of that decrease is a loss of $11.2 million in state-shared income taxes. State-shared income taxes are based on state income tax revenue from two years earlier, which was during the most severe period of the economic downturn. State-shared sales taxes are projected to be $2.6 million less than in the Fiscal Year 2004 Approved Budget, offset by an increase of $1.3 million in other state-shared revenues (auto lieu tax and lottery proceeds). FY 2003 Adopted FY 2004 Approved FY 2004 Adopted The state-shared revenue estimates for Fiscal Year 2004 assume that there will be no changes to the state’s distribution formulas. No changes have been proposed to date, but the city will continue to monitor the state’s budget balancing process. City Revenues. City-generated revenues account for 71% of the General Purpose Funds Budget. The total of $274 million for the Fiscal Year 2004 Adopted Budget is a decrease of $0.6 million. General Purpose Funds Budget City Revenues $175 $ millions $166 $168 $101 $96 $91 $5 $4 $5 FY 2003 Adopted FY 2004 Approved FY 2004 Adopted City Sales Tax City Other City Primary Property Tax Most of the city-generated revenue for the General Purpose Funds Budget comes from the city’s sales tax (business privilege tax). For Fiscal Year 2004, these receipts are estimated at $168.2 million. Due to the economic slowdown, that amount is $6.4 million less than in the Fiscal Year 2004 Approved Budget. To make up for most of that shortfall, it was recommended that the primary property tax be raised to the maximum. However, the Mayor and Council decided to leave the primary property tax at its 2003 rate, bringing in only $1 million more. To make up the remaining difference, the Mayor and Council approved a use tax with anticipated receipts of $4 million and an environmental service fee with anticipated receipts of $2.9 million. Brought Forward. This category accounts for 2% of the General Purpose Funds Budget and includes funds carried forward from Fiscal Year 2003 or use of fund balance. For Fiscal Year 2004, the Brought Forward total of $9 million is an increase of $7.4 million from the approved budget. A total of $6.4 million is being carried forward for acquisitions and projects that will not be completed as planned and $1 million is from prior years. Deficit. The approved budget for Fiscal Year 2004 was short $10 million in revenues. For the adopted budget, that amount was brought down to zero. A-10 General Purpose Funds Budget – Where the Money Goes The General Purpose Funds Budget primarily pays for the operating expenses of basic municipal services. As noted earlier, the General Purpose Funds Budget has decreased by $15.7 million from the approved budget for Fiscal Year 2004 and $2.1 million from the Fiscal Year 2003 Adopted Budget. Fiscal Year 2004 General Purpose Funds - Expenditures $388.2 million Police 28% Capital 2% Transportation 11% Solid Waste Management 6% Fire 12% Library 2% Judicial 5% Parks and Recreation 9% Community Services 1% Other Debt Service 10% 2% General Support 12% General Purpose Funds Budget – Expenditures ($ millions) Police Fire Judicial Public Safety Sub-Total Transportation Community Services Parks and Recreation Solid Waste Management Library General Support Debt Service Other Operating Budget Capital Budget Total Adopted FY 2003 $ 101.3 47.0 18.3 166.6 41.7 3.0 38.0 25.5 9.7 50.6 7.0 40.6 382.7 7.6 $ 390.3 % Change Approved FY 2004 $ 106.7 49.9 19.0 175.6 43.5 4.0 39.2 24.9 10.2 51.8 8.1 41.3 398.6 5.3 $ 403.9 3% A-11 Adopted FY 2004 $ 106.2 47.4 17.8 171.4 44.0 3.7 36.4 24.3 8.9 48.2 6.5 37.9 381.3 6.9 $ 388.2 (4%) FY 2004 Changes $ (0.5) (2.5) (1.2) (4.2) 0.5 (0.3) (2.8) (0.6) (1.3) (3.6) (1.6) (3.4) (17.3) 1.6 $ (15.7) Expenditure Changes – General Purpose Funds Budget Changes by department or department category, from the Fiscal Year 2004 Approved Budget to the Fiscal Year 2004 Adopted Budget, are briefly noted below. Generally, department changes are a combination of reductions to balance the budget and deferral of employee pay increases in Fiscal Year 2004, which are offset by increased pension and health insurance costs. For more detail, see the individual department pages in Section B. Operating Budget Changes Police. The department's reduction of $0.5 million includes $1.3 million in cuts to balance the budget. The deferral of employee pay increases further reduced the budget by $3 million. Reductions in charges from support departments contributed $1 million. These reductions were offset by $3.6 million in increased pension and health insurance costs, an additional $1 million for jail board costs, and $0.2 million in funds carried forward. Fire. Fire's reduction of $2.5 million is partially due to cuts to balance the budget of $1.8 million, primarily due to delayed opening of a new fire station and deferring fire apparatus replacement. The remaining $0.7 million reduction is net of adjustments in employee pay and increased pension and health insurance costs. Judicial. This category includes City Court, City Attorney, and Office of the Public Defender. The reduction of $1.2 million is primarily due to reductions of $0.9 million to balance the budget, which included the elimination of the Consumer Affairs Division. The remaining $0.3 million reduction is net of adjustments in employee pay and increased pension and health insurance costs. Transportation. The department's increase of $0.5 million from the approved Fiscal Year 2004 budget is due to several components. Budget balancing cuts total $3 million and position transfers to other departments contributed another $0.4 million. These decreases are offset by additional funds of $1.5 million for enhanced Van Tran service, $1.3 million in funds carried forward, and $1.1 million transferred from the capital budget for accounting purposes. Community Services. Community Services' reduction of $0.3 million is primarily due to budget balancing cuts of $0.2 million. The remaining $0.1 million reduction is net of adjustments in employee pay and increased pension and health insurance costs. Parks and Recreation. The department's reduction of $2.8 million is due to cuts of $1.9 million to balance the budget, which includes $1.3 million in services such as leisure classes and maintenance of parks and equipment used by the public. The remaining $0.9 million reduction is net of adjustments in employee pay and increased pension and health insurance costs. Solid Waste Management. Solid Waste's reduction of $0.6 million is primarily due to cuts to balance the budget. An increase of $0.9 million for the Tucson Clean Program is offset by a net reduction from deferring employee pay adjustments and increasing pension and health insurance costs. The increase in the Tucson Clean Program will fund enhanced services such as more neighborhood and homeless camp cleanups. Library. The department's reduction of $1.3 million is due to cuts to balance the budget of $0.4 million, mostly due to delayed opening of new libraries, and the transfer of $0.7 million to county funding. The remaining $0.2 million reduction is primarily net of deferring employee pay adjustments and increased pension and health insurance costs. General Support. This category includes the City Manager's Office, City Clerk, and support services departments: Budget, Finance, Human Resources, Information Technology, Operations, and Procurement. This category has a budget decrease of $3.6 million. Cuts to balance the budget total $6.7 million. The deferral of employee pay adjustments, partially offset by increased pension and health insurance costs, reduced the budget an additional $0.7 million. These reductions are offset by increases totaling $3.8 million: fewer charge-outs to line departments (+$2.2 million), funds carried forward (+$1.2 million), and miscellaneous other changes (+$0.4 million). A-12 Debt Service. The debt service reduction of $1.6 million is due to cuts to balance the budget of $0.6 million and the rescheduling of capital projects based on project schedules for $1 million. Other. All remaining departments and offices are included in this category: Mayor and Council, Development Services, Environmental Management, Comprehensive Planning Task Force, Neighborhood Resources, Economic Development, Tucson Convention Center, Tucson City Golf, Independent Police Auditor, Zoning Examiner, Tucson-Mexico Trade Office, Intergovernmental Relations, and Non-Departmental. This category's budget decreased by $3.4 million. Budget balancing cuts account for $2.6 million of the decrease. The deferral of employee pay adjustments, partially offset by increased pension and health insurance costs, further reduced the budget by $3 million. These reductions are offset by an additional $0.9 million for the Metropolitan Tucson Convention and Visitors Bureau, $1 million due to the transfer of positions to the Comprehensive Planning Task Force from other departments, and $0.3 million in other miscellaneous changes. Capital Budget Changes There is an increase of $1.6 million for capital projects, which is primarily due to $3.3 million in funds carried forward for projects that will not be completed in Fiscal Year 2003. That increase is offset by reductions to Back to Basics (-$0.5 million), the transfer of funds to the operating budget for accounting purposes (-$0.6 million), and the completion and rescheduling of projects (-$0.6 million). ALL FUNDS BUDGET The All Funds Budget includes all funding sources: general purpose funds and restricted funds. The All Funds Budget adopted for Fiscal Year 2004 totals $957.8 million, an increase of $77.9 million over the approved budget: $5.6 million decrease in the operating budget and $83.5 million increase in the capital budget due primarily to funds carried forward for projects from Fiscal Year 2003. All Funds Budget Appropriation and Funding Source Comparisons Total Adopted FY 2003 $ 676.9 258.6 $ 935.5 Approved FY 2004 $ 701.7 178.2 $ 879.9 Adopted FY 2004 $ 696.1 261.7 $ 957.8 FY 2004 Changes $ (5.6) 83.5 $ 77.9 Restricted General Purpose Total $ 545.2 390.3 $ 935.5 $ 476.0 403.9 $ 879.9 $ 569.6 388.2 $ 957.8 $ 93.6 (15.7) $ 77.9 $ millions Operating Capital A-13 As discussed earlier in this overview, the General Purpose Funds Budget has decreased by $15.7 million from the approved budget. Therefore, the $77.9 million increase in the All Funds Budget is from the Restricted Funds Budget, which has increased by $93.6 million. That increase is primarily due to restricted funds carried forward for capital projects that will not be completed as planned. All Funds Budget – Where the Money Comes From The city’s budget has three sources of funding: (1) revenues generated by the city, (2) grants and contributions from state and other local agencies, and (3) federal grants. All federal revenues are restricted. City and state/other revenues are a mix of restricted funds and general purposes funds. City funds account for 64% of revenues. State funds account for 21% of revenues. Federal funds account for the remaining 15% of revenues. Fiscal Year 2004 All Funds - Revenues $957.8 million Federal 15% State/Other 21% City 64% All Funds Budget – Sources of Revenues Adopted Approved Adopted ($ millions) FY 2003 FY 2004 FY 2004 City $ 582.6 $ 539.7 $ 611.2 State/Other 216.6 206.7 201.1 Federal 136.3 123.5 145.5 Total $ 935.5 $ 869.9 $ 957.8 Deficit -010.0 -0- FY 2004 Changes $ 71.5 (5.6) 22.0 $ 87.9 (10.0) Revenue Changes – All Funds Budget Following are brief explanations of the revenue differences between the Fiscal Year 2004 Adopted Budget and the Fiscal Year 2004 Approved Budget. For more detail, see Sections B and E. A-14 City Revenues. Most of the increase in the Fiscal Year 2004 Adopted Budget comes from city-generated revenues, which total $611.2 million or an increase of $71.5 million over the approved budget. $ millions All Funds Budget City Revenues $277 $306 FY 2003 Adopted $276 $283 $264 FY 2004 Approved $328 FY 2004 Adopted Most of that increase is from a $64.5 million increase in city-generated restricted funds, which is primarily due to carryforward of $57.8 million from bond funds, enterprise funds, non-bond debt funds, and reserves for capital projects that will not be completed as planned in the approved budget. The approved increase in Tucson Water connection fees added another $6.5 million. The remaining $0.2 million is from miscellaneous other restricted sources. City-generated general purpose funds increased by $6.9 million. An anticipated reduction in city sales tax of $6.4 million is offset by an increase in primary property tax revenues of $1 million and new revenues including $2 million from a new environmental fee, $4 million from a new use tax, and $7.3 million in brought forward funds. Other city revenues had a net decrease of $1 million. General Purpose Funds Restricted Funds State/Other Revenues. Revenues from the state and other local agencies total $201.1 million for Fiscal Year 2004 or a decrease of $5.6 million from the approved budget. That decrease is primarily due to a decrease of $12.5 million in general purpose funds. Stateshared income tax receipts are expected to decline by $11.2 million and state-shared sales tax receipts by $2.6 million. Those reductions are offset by increases from state-shared auto lieu taxes and lottery proceeds totaling $1.3 million. $ millions All Funds Budget State/Other Revenues $113 $104 FY 2003 Adopted $118 $89 FY 2004 Approved General Purpose Funds $105 $96 FY 2004 Adopted Restricted Funds There is an increase of $6.9 million in restricted funds from state and other local agencies, primarily from funds carried forward. Federal Revenues. All federal funds are restricted. Federal revenues total $145.5 million in the adopted budget for Fiscal Year 2004 or an increase of $22 million over the approved budget. The increase is primarily due to carryforward of $18.1 million for capital projects that will not be completed as planned in the approved budget. The remaining $3.9 million increase results from the rescheduling of federal grant-funded projects. A-15 All Funds Budget – Where the Money Goes The All Funds Budget contains funding for all operating budget and capital budget expenditures (except for noncity funds in improvement district projects). The $77.9 million increase in the All Funds Budget is primarily attributable to capital budget expenditures, which increased by $83.5 million. The operating budget decreased $5.6 million. Fiscal Year 2004 All Funds - Expenditures $957.8 million Community Services 7% Police 12% Fire 5% Judicial 2% Transportation 9% Tucson Water 12% Solid Waste Management 3% General Support 5% Library 2% Other 6% Parks and Recreation 4% Capital 27% Debt Service 6% All Funds Budget – Expenditures ($ millions) Police Fire Judicial Public Safety Sub-Total Tucson Water Transportation Community Services Parks and Recreation Solid Waste Management Library General Support Debt Service Other Operating Budget Capital Budget Total % Change Adopted FY 2003 $ 113.9 47.8 19.5 181.2 103.3 75.5 67.8 39.4 25.9 20.4 53.2 51.3 58.9 676.9 258.6 $ 935.5 A-16 Approved FY 2004 $ 118.9 50.4 20.3 189.6 109.3 77.9 66.9 40.6 25.3 21.3 55.4 56.4 59.0 701.7 178.2 $ 879.9 (6%) Adopted FY 2004 $ 118.7 47.9 19.2 185.8 111.3 91.4 66.6 38.5 24.7 19.8 52.0 52.8 53.2 696.1 261.7 $ 957.8 9% FY 2004 Changes $ (0.2) (2.5) (1.1) (3.8) 2.0 13.5 (0.3) (2.1) (0.6) (1.5) (3.4) (3.6) (5.8) (5.6) 83.5 $ 77.9 Expenditure Changes – All Funds Budget Following are brief explanations of the expenditure differences between the Fiscal Year 2004 Adopted Budget and the Fiscal Year 2004 Approved Budget. All department budget changes include reductions due to deferring employee salary increases, which are partially offset by increased pension costs. For more detail, see the individual department pages in Section B. Operating Budget Changes Police. This department's budget decreased by $0.2 million. The deferral of employee pay increases reduced the budget by $2.9 million. Budget balancing cuts further decreased the budget by $1.3 million. An additional decrease of $0.8 million resulted from reduced charges from support departments. These decreases are offset by increased pension and health insurance costs of $3.6 million, additional jail boarding costs of $1 million, and funds carried forward of $0.2 million. Fire. The department's decrease of $2.5 million is due to $1.8 million in budget balancing cuts, $2.1 million savings in employee salary adjustments, and the addition of $1.4 million for increased pension and health insurance costs. Judicial. This category includes City Court, City Attorney, and Office of the Public Defender. The reduction of $1.1 million is primarily due to reductions of $0.9 million to balance the budget, which includes the elimination of the Consumer Affairs Division. The remaining $0.2 million reduction is net of adjustments in employee pay and increased pension and health insurance costs. Tucson Water. The increase of $2 million in Tucson Water's budget is primarily due to the transfer of $2.6 million from the capital budget for accounting purposes. Increased health insurance and pension costs added another $0.4 million. Both these increases are offset by a savings of $1 million for employee salary adjustments. Transportation. This department's increase of $13.5 million has several components. Since all of Transportation's reductions to balance the budget ($3 million) were transfers from the General Purpose Funds Budget to the Restricted Funds Budget, they have no net impact on the All Funds Budget. Funds carried forward increased the budget by $7 million. Costs transferred from the capital budget for accounting purposes added $5.6 million. Increased service hours for Van Tran added another $1.5 million. The deferral of employee pay adjustments and other miscellaneous changes offset those increases by $0.6 million. Community Services. Community Services' decrease of $0.3 million is primarily due to budget balancing cuts of $0.2 million. The remaining $0.1 million reduction is net of adjustments in employee pay and increased pension and health insurance costs. Parks and Recreation. Most of Parks and Recreation's decrease of $2.1 million is due to budget balancing cuts of $1.9 million. The deferral of employee pay increases reduced the budget an additional $1 million. Revised charges from support departments further reduced the budget by $0.5 million. These decreases are offset by increased pension and health insurance costs of $0.5 million, the transfer of grant capacity of $0.7 million from the capital budget for accounting purposes, and funds carried forward of $0.1 million. Solid Waste Management. Solid Waste's reduction of $0.6 million is primarily due to cuts to balance the budget. An increase of $0.9 million for the Tucson Clean Program is offset by a net reduction from deferring employee pay adjustments and increasing pension and health insurance costs. The increase in the Tucson Clean Program will fund enhanced services such as more neighborhood and homeless camp cleanups. Library. This department's budget decreased by $1.5 million. Reductions to balance the budget include $0.4 million of city general purpose funds and a matching $0.4 million in county funds. The deferral of employee pay increases and miscellaneous adjustments reduced the budget an additional $1.1 million. Increases totaling $0.4 million from pension and health insurance costs and the addition of 4 positions during Fiscal Year 2003 offset these reductions. A-17 General Support. This category includes the City Manager's Office, City Clerk, and the support services departments: Budget, Finance, Human Resources, Information Technology, Operations, and Procurement. This category has a budget decrease of $3.4 million. Cuts to balance the budget total $6.7 million. The deferral of employee pay increases reduced the budget an additional $1.5 million. These reductions are offset by increases totaling $4.8 million: fewer charge-outs to line departments (+$2.2 million), funds carried forward (+$1.2 million), increased pension and health insurance costs (+0.8 million), and miscellaneous other changes (+$0.6 million). Debt Service. The Debt Service budget includes those debt payments made by the general taxpayer; debt repayment for utilities (Tucson Water and Tucson City Golf) is excluded because service users pay it. The Debt Service budget decrease of $3.6 million is due to $0.6 million from budget cuts and $3 million in savings from the refunding of existing bond debt and the rescheduling of debt financing for capital projects. Other. All remaining departments and offices are included in this category: Mayor and Council, Development Services, Environmental Management, Comprehensive Planning Task Force, Neighborhood Resources, Economic Development, Tucson Convention Center, Tucson City Golf, Independent Police Auditor, Zoning Examiner, Tucson-Mexico Trade Office, Intergovernmental Relations, and Non-Departmental. This category's budget decreased by $5.8 million. Budget balancing cuts account for $2.6 million of the decrease, and the deferral of employee pay increases and other miscellaneous changes further reduced the budget by $3.4 million. Miscellaneous budget capacity was reduced by $2 million. These reductions are offset by increased pension costs of $0.3 million, an additional $0.9 million for the Metropolitan Tucson Convention and Visitors Bureau, and $1 million due to the transfer of positions to the Comprehensive Planning Task Force. Capital Budget Changes The capital budget increase of $83.5 million is primarily due to funds carried forward from Fiscal Year 2003 for projects that will not be completed (+$87.1 million). An offsetting decrease of $3.6 million is primarily due to the transfer of budget capacity to the operating budget and the completion and rescheduling of projects. State-Set Expenditure Limit Tucson, like all Arizona cities, is subject to a spending limit imposed by the state constitution. For revenues that are subject to the limitation, the Mayor and Council’s adopted budget cannot exceed the expenditure limitation regardless of how much money may be available. Excluded from the limitation are funding sources such as bond proceeds and related debt service, interest earnings, and federal grants. State-Set Expenditure Limit for the City of Tucson Each year the spending limit is set by the state’s Adopted Adopted Economic Estimates Commission (EEC), which FY 2004 ($ millions) FY 2003 takes into consideration annual population Budgeted Expenditures $ 935.5 $ 957.8 growth and inflation. (443.0) Less Exclusions (431.5) Subject to Spending Limit $ 504.0 $ 514.8 EEC Official Limit EEC Adjusted Limit $ 501.0 $ 535.11 $ 516.0 N/A Under/(Over) Official Limit Under/(Over) Adjusted Limit $ (3.0) $ 31.1 $ 1.2 N/A 1For Fiscal Year 2003, the state granted a one-time adjustment to all cities. If the city expends over the official but under the adjusted limit, the penalty will be $100. A-18 Cities are allowed to override the EEC spending limit only with prior approval of the voters. In 1987, the voters of Tucson authorized an override of $46.9 million for public safety, recreation, and transportation services. With this override, the city has been able to stay under the state-set spending limit. For Fiscal Year 2004, the adopted budget is under the state’s official spending limit by $1.2 million. STAFFING The number of city employees in the adopted budget for Fiscal Year 2004 totals 5,757.96, a decrease of 123.5 fulltime equivalent (FTE) positions from the approved budget. The reduction in positions is primarily due to 138.5 positions eliminated to balance the budget. The position reductions to balance the budget are offset by 12 positions that were added during Fiscal Year 2003 and 3 positions added to Fiscal Year 2004 for customer support of the Tucson Clean Program. Fiscal Year 2004 All Funds - Staffing 5,757.96 FTEs Police 23% Other 8% Fire 10% Judicial 5% General Support 14% Tucson Water 10% Solid Waste Management 4% Library Parks and Recreation 5% 11% Transportation 7% Community Services 3% All Funds - Staffing Police Fire Judicial Public Safety Sub-Total Adopted FY 2003 FTEs 1,356.00 572.00 283.80 2,211.80 Approved FY 2004 FTEs 1,354.50 593.00 283.80 2,231.30 Adopted FY 2004 FTEs 1,352.50 572.00 275.80 2,200.30 FY 2004 Changes (2.00) (21.00) (8.00) (31.00) Tucson Water Transportation Community Services Parks and Recreation Solid Waste Management Library General Support Other 590.00 399.50 157.00 665.00 236.00 287.75 801.91 480.50 590.00 399.50 155.00 665.00 236.00 302.75 821.41 480.50 589.00 393.50 153.00 633.75 237.00 286.75 784.91 479.75 (1.00) (6.00) (2.00) (31.25) 1.00 (16.00) (36.50) (0.75) 5,829.46 5,881.46 1% 5,757.96 (2%) (123.50) Total % Change A-19 Positions Eliminated to Balance the Budget During the budget balancing process, the goals were to make permanent cuts and to keep public service reductions to a minimum. Seventy-three percent (73%) of the positions eliminated are from permanent cuts, and only 19% of the total are in public service cuts. The following table groups the nature of the position cuts for each department or department category. Employees in the eliminated positions were transferred to other vacant positions to avoid layoffs. Summary of Positions Eliminated to Balance the Budget Program Reductions Police Fire Judicial Community Services Parks Library Solid Waste General Support Other Total One-time Internal Service Org & Process 2.00 Other 6.00 6.75 5.00 Total 2.00 21.00 8.00 2.00 31.25 20.00 2.00 40.50 11.75 24.75 5.00 138.50 21.00 7.00 2.00 27.25 1.00 4.00 5.00 15.00 2.00 34.50 36.25 38.00 34.50 Staffing Changes – All Funds Budget The changes in positions by department or department category, from the Fiscal Year 2004 Approved Budget to the Fiscal Year 2004 Adopted Budget, are briefly noted below. For more detail, see the individual department pages in Section B. Police. Two positions were eliminated as part of the budget balancing process: a personnel manager and a graphic arts specialist. Ten administrative commissioned officer positions remain authorized, but are unfunded. Fire. Twenty-one positions to staff a new fire station have been delayed until Fiscal Year 2005, when the facility is now scheduled to open. Judicial. This category includes City Attorney, City Court, and the Office of the Public Defender. Due to the elimination of the Consumer Affairs Division as a budget balancing cut, the City Attorney's staff is reduced by seven positions. One administrative assistant position in City Court has also been eliminated. Tucson Water. One position in Tucson Water was transferred to the Comprehensive Planning Task Force during Fiscal Year 2003. Transportation. Six positions were transferred out of Transportation during Fiscal Year 2003: two positions to Development Services and four positions to the Comprehensive Planning Task Force. Community Services. Two positions, which provide support for grant-funded programs, were eliminated as part of the budget balancing process. Parks and Recreation. Of the total 31.25 positions eliminated to balance the budget, 16.50 are permanent positions and 14.75 are non-permanent, seasonal positions. Positions providing direct service to the public account for 19.25 of the total positions eliminated. Solid Waste Management. This department has a net increase of one position. Two positions were eliminated to balance the budget: one landfill operator and one recycling educator. Three positions were added for customer support of the Tucson Clean Program. A-20 Library. Twenty positions were eliminated during the budget balancing process. Fifteen of those positions have been delayed until Fiscal Year 2005, when the Midtown and the Quincie Douglas Libraries are now scheduled to open. Five other positions were reduced due to the use of patron self-checkout equipment. These reductions are offset by four positions that were added during Fiscal Year 2003. General Support. This category includes the City Manager's Office, City Clerk, and support services departments: Budget, Finance, Human Resources, Information Technology, Operations, and Procurement. Of the 36.5 position reduction in the General Support category, 40.5 positions were eliminated to balance the budget. These reductions are offset by four positions added during Fiscal Year 2003. Other. All remaining departments and offices are included in this category: Mayor and Council, Development Services, Environmental Management, Comprehensive Planning Task Force, Neighborhood Resources, Economic Development, Tucson Convention Center, Tucson City Golf, Independent Police Auditor, Zoning Examiner, Tucson-Mexico Trade Office, Intergovernmental Relations, and Non-Departmental. The net reduction for this category is 0.75 positions: 11 positions added during Fiscal Year 2003 (transferred from other departments) and 11.75 positions eliminated to balance the budget. CITIZEN IMPACTS Changes to the City's “Bill for Services” The cost impact to the typical homeowner from the Fiscal Year 2004 Adopted Budget will be approximately $2.30 per month. Most of the increase comes from the approved $2.00 per month environmental service fee that will fund the Tucson Clean Program. The remaining $0.30 is for an increase in the secondary property tax for repayment of general obligation bonds authorized by the voters. City “Bill for Services” for the Typical Homeowner1 City Property Taxes1 City Sales Tax2 Environmental Fee Tucson Water3 Annual Total Per Month FY 2003 $ 112.02 349.80 -0216.84 $ 678.66 $ 56.56 FY 2004 $ 115.69 349.80 24.00 216.84 $ 706.33 $ 58.86 Changes $ 3.67 -024.00 -0$ 27.67 $ 2.30 1Typical Homeowner Definition: Owner-occupied residence with an assessed value of $100,000. 2Assumes an average income of $36,000 with approximately 53% of net income (after federal and state income taxes) spent on taxable purchases based on U.S. Department of Labor Consumer Expenditure Survey. 3The water bill figures assume a single-family residence with 12 Ccf usage per month. Because the Mayor and Council approved the System Equity Fee, there will be no water commodity rate increases for Fiscal Year 2004. City Property Taxes. The city imposes two taxes on the assessed value of property within the city limits: (1) a primary property tax for general purposes and (2) a secondary property tax to pay off general obligation bond debt. A-21 Primary Property Tax: The estimated primary property tax rate for the Fiscal Year 2004 Adopted Budget is $0.2089 per $100 of assessed valuation, the same rate as Fiscal Year 2003. Secondary Property Tax: The estimated secondary property tax rate for the Fiscal Year 2004 Adopted Budget is $0.9480 per $100 of assessed valuation, an increase of $0.0367. This increase is due to the estimated debt service payments on a new general obligation bond sale for the bond authorization approved by the voters in May 2000. City of Tucson Property Tax Comparisons Rate Changes Primary Secondary Total Tax Bill Changes* Primary Property Tax Secondary Property Tax Total % Change Actual FY 2003 Estimated FY 2004 $ 0.2089 0.9113 $ 1.1202 $ 0.2089 0.9480 $ 1.1569 $ $ 20.89 91.13 $ 112.02 $ 20.89 94.80 $ 115.69 3% $ Changes -00.0367 $ 0.0367 $ -03.67 3.67 *Owner-occupied home with an assessed valuation of $100,000. City Sales Tax. The Tucson City Charter authorizes a sales tax on many business transactions within the city. However, certain transactions, such as food purchased for home consumption and rent collected on residential units, are exempted from the city sales tax. City sales tax collections can be used for any general purpose. There is no change to the current city sales tax rate of 2% in the adopted budget for Fiscal Year 2004. Charges for Services. There are several charges for services that were approved for an increase. However, not all of them directly impact the general public; e.g., zoning, court administration, and parks fee increases. For example, parks fee increases impact only citizens who use the Parks and Recreation Department's programs and services. The charges for service that affect the majority of Tucson residents are briefly noted below: environmental service fee and water commodity rates. Environmental Service Fee: $2.00 per month This new fee will be assessed against all residential households, including multiple-dwellings up to four-plexes and mobile homes. The fee will appear on the Tucson Water bill of these residential households. Projected revenues from this fee total $2.9 million. The revenue from the fee will support the Department of Solid Waste Management's Tucson Clean Program. Service level enhancements will include increasing the maximum setout per household from 5 cubic yards to 10 cubic yards and improving responsiveness to neighborhood cleanups, illegal dump cleanups, and homeless camp cleanups. Water Commodity Rates: no change Tucson Water's Financial Plan for Fiscal Year 2004 includes revenues from the System Equity Fee for new connections to the water system. Because the Mayor and Council approved the fee, there will be no increases to the current water commodity rates for Fiscal Year 2004. A-22 Section B - Adopted Changes This section of the budget identifies the changes to the Fiscal Year 2004 budget for the original approved amounts. The changes are organized as follows: Revenue Adjustments to the Fiscal Year 2004 Budget..................................... Expenditure Adjustment to the Fiscal Year 2004 Budget ................................ Position Changes to the Fiscal Year 2004 Budget............................................ B-2 B-5 B-55 Within each part of this section, revenue, expenditure, and position, the changes are grouped by adjustments to balance the budget and other changes to the budget. B-1 Revenue Adjustments to the Fiscal Year 2004 Budget FY 2004 Approved Primary Property Tax Secondary Property Tax Business Privilege Tax (City Sales Tax) Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property State Income Tax (State Revenue Sharing) State Sales Tax Highway User Revenue Funds Other Shared Taxes and Grants Federal Grants Charges for Services Non-Revenue Receipts Enterprise Funds Golf Water Capital Funds (Bonds) Certificates of Participation Brought Forward and Use of Fund Balance Total $ $ FY 2004 Adopted FY 2004 Change 3,864,260 $ 22,907,710 174,644,500 18,526,990 16,461,710 8,347,600 7,764,710 54,601,440 41,457,200 47,203,130 61,008,170 123,453,670 49,638,520 10,992,480 4,904,190 $ 23,055,320 168,200,000 23,776,380 16,161,260 10,458,200 5,505,200 43,388,700 38,833,000 47,203,130 62,480,230 145,544,370 50,792,960 8,731,980 1,039,930 147,610 (6,444,500) 5,249,390 (300,450) 2,110,600 (2,259,510) (11,212,740) (2,624,200) -01,472,060 22,090,700 1,154,440 (2,260,500) 10,710,220 125,666,000 73,458,000 12,222,000 6,953,830 12,109,530 132,166,320 101,852,000 23,723,800 38,906,450 1,399,310 6,500,320 28,394,000 11,501,800 31,952,620 869,882,140 $ 957,793,020 $ 87,910,880 Discussion of Major Revenue Adjustments Change Revenue Increases to Balance the Budget Primary Property Tax The primary property tax remains at the FY 2003 rate of 20.89 cents. Projected revenues will increase from the approved FY 2004 amount, because the original FY 2004 rate was assumed to be lower than FY 2003. $ 1,039,930 Other Local Taxes A use tax has been added for FY 2004 with a projected revenue of $4,000,000 and an increase in the transient occupancy tax from 4% to 6% provides $2,368,200. An increase in the liquor license fee adds $75,880. 6,444,080 Fines, Forfeitures, and Penalties A combination of improved collection rates and higher fines, including a new administrative fee, are anticipated to increase revenues. 2,200,000 B-2 Revenue Adjustments to the Fiscal Year 2004 Budget Revenue Increases to Balance the Budget (Continued) Other Shared Taxes and Grants An increase in the Pima County library tax rate is included to avoid service reductions in Library. Change $ Charges for Services Increases in Solid Waste Management fees include a Tucson Clean Program fee of $2.00 a month ($2,916,000) and increases in commercial collection charges ($300,000). Development review and inspection and zoning fees have been increased to improve cost recovery. An increase in Parks and Recreation fees was adopted. This is significantly less than the amount required to reach 30% cost recovery in five years. These revenues result in a cost recovery rate consistent with Fiscal Year 2003. Other increases include Tucson Convention Center (TCC) space rental, Sun Tran bus wrap advertising, and Tucson-Mexico Trade Office fees. 3,216,000 714,000 978,900 530,000 Brought Forward and Use of Fund Balance The sale of the A-7 Ranch is anticipated to fund debt service requirements until the city can pay off debt. Total Revenue Increases to Balance the Budget 736,490 285,730 $ 16,145,130 $ 147,610 Other Revenues Changes Secondary Property Tax The secondary property tax is adjusted based on general obligation bond sales. Business Privilege Tax (City Sales Tax) Projected revenues have been reduced based on the extended economic recession in Arizona and the economic uncertainties at the national level. (6,444,500) Other Local Taxes Projected tourism revenues have been reduced based on economic uncertainties. This change is prior to the adopted transient occupancy tax increase. (1,194,690) Licenses and Permits Miscellaneous revenue reductions. (300,450) Fines, Forfeitures, and Penalties Miscellaneous parking revenue reductions. (89,400) Use of Money and Property Most of this decrease is the result of continued low investment income ($2,190,000) as well as lower parking and other rental income. B-3 (2,259,510) Revenue Adjustments to the Fiscal Year 2004 Budget Other Revenues Changes (Continued) Change State Income Tax (State Revenue Sharing) As with the city sales tax, projected revenues have been reduced based on the extended economic recession in Arizona. $ State Sales Tax As with the city sales tax, projected revenues have been reduced based on the extended economic recession in Arizona. (11,212,740) (2,624,200) Other Shared Taxes and Grants The auto-lieu tax and state grants are projected to increase. 735,570 Federal Grants Grants used to fund capital projects will increase based on the implementation of those projects. 22,090,700 Charges for Services Revised projections of revenues from users of city services prior to any fee increases were lower in the Fire Department's emergency medical transport, Parks and Recreation, and Solid Waste Management. (4,284,460) Non-Revenue Receipts One-time recovered expenditures are projected to be lower. (2,260,500) Enterprise Funds - Golf One-time funding for Trini Alvarez Golf Course renovations of $1,610,000 less miscellaneous revenue reductions. 1,399,310 Enterprise Funds - Water A new connection fee has been approved in place of a rate increase. 6,500,320 Capital Funds (Bonds) Implementation of the 2000 bond authorization will result in an increase in the use of general obligation and street and highway bonds. 28,394,000 Certificates of Participation (COPs) Implementation of capital improvements such as the Emergency Communication System and Facility will result in an increase in the use of COPs. 11,501,800 Brought Forward and Use of Fund Balance The increase in these funds is primarily due to the carryforward of capital projects and the use of the environmental mandate reserve on one-time capital projects. 31,666,890 Total Other Revenue Changes $ 71,765,750 Total Revenue Changes $ 87,910,880 B-4 Expenditure Adjustments to the Fiscal Year 2004 Budget FY 2004 Approved FY 2004 Adopted FY 2004 Change Operating Elected and Official Mayor and Council City Manager City Clerk City Attorney $ Sub-Total Neighborhood Services City Court Community Services Fire Library Neighborhood Resources Parks and Recreation Tucson City Golf Police Independent Police Auditor Office of the Public Defender Sub-Total Environment and Development Development Services Comprehensive Planning Task Force Solid Waste Management Transportation Tucson Water Environmental Management Historic Preservation Office Zoning Examiner Sub-Total Strategic Initiatives Tucson Convention Center Office of Economic Development Intergovernmental Relations Tucson-Mexico Trade Office Sub-Total B-5 2,862,120 $ 2,279,200 4,767,010 7,613,780 2,745,000 $ 2,040,770 4,694,190 7,082,050 (117,120) (238,430) (72,820) (531,730) - 17,522,110 16,562,010 (960,100) 10,275,780 66,909,020 50,443,740 21,313,100 2,642,710 40,641,150 10,118,220 118,870,200 154,440 2,361,320 9,753,570 66,653,980 47,943,140 19,783,980 2,401,930 38,549,650 10,060,630 118,688,740 155,350 2,333,440 (522,210) (255,040) (2,500,600) (1,529,120) (240,780) (2,091,500) (57,590) (181,460) 910 (27,880) - 323,729,680 316,324,410 (7,405,270) 8,277,560 2,970,680 25,265,630 77,902,420 109,347,000 2,408,370 344,410 165,070 8,246,110 3,972,240 24,714,780 91,434,360 111,343,320 2,331,410 167,500 226,681,140 242,209,720 (31,450) 1,001,560 (550,850) 13,531,940 1,996,320 (76,960) (344,410) 2,430 15,528,580 - 11,528,230 2,115,620 541,910 599,120 10,880,110 1,748,100 538,190 485,630 (648,120) (367,520) (3,720) (113,490) - 14,784,880 13,652,030 (1,132,850) Expenditure Adjustments to the Fiscal Year 2004 Budget FY 2004 Approved FY 2004 Adopted FY 2004 Change Operating (Continued) Support Services Budget and Research Finance Human Resources Information Technology Operations Procurement Equal Opportunity Office $ Sub-Total Non-Departmental Outside Agencies General Expense Debt Service Contingency Fund Sub-Total Total Operating $ Capital Total Budget 2,039,810 $ 7,596,200 3,028,400 11,491,580 19,988,410 3,486,340 713,170 2,023,890 7,937,630 2,523,140 11,066,070 17,937,140 3,190,160 583,420 48,343,910 45,261,450 (3,082,460) 7,005,690 7,123,200 56,356,500 175,000 7,553,340 1,742,820 52,751,470 46,970 547,650 (5,380,380) (3,605,030) (128,030) - 70,660,390 62,094,600 (8,565,790) 701,722,110 $ 178,219,000 $ B-6 879,941,110 696,104,220 $ $ 261,688,800 $ 957,793,020 (15,920) 341,430 (505,260) (425,510) (2,051,270) (296,180) (129,750) - (5,617,890) 83,469,800 $ 77,851,910 Change from Fiscal Year 2004 Approved to Adopted Budget Mayor and Council FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Total FY 2004 Adopted FY 2004 Change $ 2,862,120 $ 2,745,000 $ (117,120) $ 2,862,120 2,745,000 (117,120) $ $ Staffing Summary Permanent 53.00 53.00 -0- Total Staffing 53.00 53.00 -0- Adopted Change Staffing Budget General Changes Reduction in merit and other salary adjustments Increase in pension rate from 9.57% to 11.17% Increase in employee health insurance benefit costs Miscellaneous charges from support departments Total Changes -0- B-7 $ (168,040) 23,820 33,430 (6,330) $ (117,120) Change from Fiscal Year 2004 Approved to Adopted Budget City Manager FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funding $ Department Total FY 2004 Adopted 2,279,200 $ -0- $ 2,279,200 $ FY 2004 Change 2,033,270 $ 7,500 (245,930) 7,500 2,040,770 (238,430) $ Staffing Summary Permanent 22.25 19.25 (3.00) Total Staffing 22.25 19.25 (3.00) Adopted Change Staffing Budget Reductions to Balance the Budget Administrative Staff Support staff for City Manager functions and other city departments will be reduced. (3.00) $ (275,000) Permanent FTE (3.00) Other Reductions Eliminate Management Development Training Program Total Reductions to Balance the Budget (22,420) (3.00) $ (297,420) $ (74,010) (4,850) 7,500 18,320 29,030 83,000 $ 58,990 Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Carryforward of grant funds Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Reorganization of staff including transfers to and from other departments Total General Changes -0- Total Changes (3.00) $ B-8 (238,430) Change from Fiscal Year 2004 Approved to Adopted Budget City Clerk FY 2004 Approved FY 2004 Adopted FY 2004 Change Financial Summary Operating Budget General Purpose Funds $ 4,767,010 $ 4,694,190 $ (72,820) Department Total $ 4,767,010 4,694,190 $ (72,820) $ Staffing Summary Permanent Non-permanent 38.50 23.00 35.50 23.00 (3.00) -0- Total Staffing 61.50 58.50 (3.00) Adopted Change Staffing Budget Reductions to Balance the Budget Mayor and Council Comment Line Automation Automation of the comment line allows for a reduction of support staff. (2.00) $ (59,270) (1.00) (29,630) (3.00) $ (88,900) $ (26,190) (8,390) 24,380 26,280 $ 16,080 Permanent FTE (2.00) Reorganization of Clerical Staff A secretary position has been eliminated by reorganization. Permanent FTE (1.00) Total Reductions to Balance the Budget Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in pension rate from 9.57% to 11.17% Increase in employee health insurance benefit costs Total Other General Changes -0- Total Changes (3.00) $ B-9 (72,820) Change from Fiscal Year 2004 Approved to Adopted Budget City Attorney FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Federal Funding Other Restricted Funding Department Total FY 2004 Adopted FY 2004 Change $ 6,863,210 $ 380,220 370,350 6,354,670 $ 383,980 343,400 (508,540) 3,760 (26,950) $ 7,613,780 7,082,050 (531,730) $ $ Staffing Summary Permanent 112.00 105.00 (7.00) Total Staffing 112.00 105.00 (7.00) Adopted Change Staffing Budget Reductions to Balance the Budget Eliminate the Consumer Affairs Division The city will no longer provide services to consumers including information, referral, mediation of consumer complaints, and investigation of consumer fraud. Permanent FTE Total Reductions to Balance the Budget (7.00) $ (510,540) (7.00) $ (510,540) $ (153,100) (9,340) 61,960 90,620 (11,330) $ (21,190) (7.00) $ (531,730) (7.00) Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Miscellaneous adjustments Total Other General Changes -0- Total Changes B-10 Change from Fiscal Year 2004 Approved to Adopted Budget City Court FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funding Total Operating Budget Capital Budget Other Restricted Funding Total Capital Budget FY 2004 Adopted $ 9,735,700 $ 540,080 $ 10,275,780 $ $ $ Department Total -0-0- FY 2004 Change 9,144,510 $ 609,060 9,753,570 $ (591,190) 68,980 (522,210) 250,000 $ 250,000 $ 250,000 250,000 $ $ $ 10,275,780 $ 10,003,570 $ (272,210) Staffing Summary Permanent 138.30 137.30 (1.00) Total Staffing 138.30 137.30 (1.00) Adopted Change Staffing Budget Reductions to Balance the Budget Funding for Pre-Trial Services Individuals arrested and booked in Pima County jail on charges over which Tucson City Court has jurisdiction will no longer be screened by contracted Pima County Pre-Trial Services staff to prepare a pre-trial report. Tucson Police Department reports will provide a majority of the information previously provided by pre-trial services. Possible impacts include increased jail costs and increased caseload for the Public Defender. $ Consolidate Drug and Mental Health Courts A single magistrate will hear both types of cases with the cost of the sessions charged to the Court's drug grant. (286,000) (50,000) Eliminate an Administrative Assistant Position Duties will be absorbed by other administrative staff. (1.00) Permanent FTE B-11 (1.00) (35,230) Change from Fiscal Year 2004 Approved to Adopted Budget City Court Adopted Change Staffing Budget Reductions to Balance the Budget (Continued) Other Reductions Process server fee funding transferred to Police Department. (50,000) Total Reductions to Balance the Budget (1.00) $ (421,230) $ (341,110) 75,000 80,200 95,840 (10,910) $ (100,980) $ 250,000 $ 250,000 Other General Changes Reduction in merit and other salary adjustments Local Judicial Collection Enhancement Fund capacity Increase in pension rate from 9.57% to 11.17% Increase in employee health insurance benefit costs Miscellaneous adjustments Total Other General Changes -0- Capital Budget Changes Design funds for demolition of court garage and reinforcing of remaining structure Total Capital Budget Changes Total Changes (1.00) $ B-12 (272,210) Change from Fiscal Year 2004 Approved to Adopted Budget Community Services FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Federal Funding Other Restricted Funding $ FY 2004 Adopted FY 2004 Change 3,986,230 $ 3,731,190 $ 60,868,510 60,868,510 2,054,280 2,054,280 Total Operating Budget Capital Budget Other Restricted Funding $ 66,909,020 $ 66,653,980 $ 3,445,000 $ Total Capital Budget $ 3,445,000 Department Total (255,040) -0-0- $ (255,040) 2,290,100 $ (1,154,900) 2,290,100 $ (1,154,900) $ 70,354,020 $ 68,944,080 $ (1,409,940) Staffing Summary Permanent 155.00 153.00 (2.00) Total Staffing 155.00 153.00 (2.00) $ Adopted Change Staffing Budget Reductions to Balance the Budget Program Support Funding General purpose funds that support grant-funded programs have been reduced. Permanent FTE (2.00) $ Homeless Services Funding Funding assistance to relocate the homeless and related services has been reduced. (96,000) (25,000) Other Reductions Eliminate unallocated Human Services Contingency funding. Total Reductions to Balance the Budget (34,000) (2.00) $ (155,000) $ (187,250) 106,000 6,020 (24,810) $ (100,040) Other General Changes Reduction in merit and other salary adjustments Increase in pension rate from 9.57% to 11.17% Increase in employee health insurance benefit costs Miscellaneous adjustments Total Other General Changes -0- B-13 Change from Fiscal Year 2004 Approved to Adopted Budget Community Services Adopted Change Staffing Budget Capital Budget Changes Carryforward from Fiscal Year 2003 Adjustments based on project schedules $ Total Capital Budget Changes -0- Total Changes 23,200 (1,178,100) $ (1,154,900) (2.00) $ (1,409,940) B-14 Change from Fiscal Year 2004 Approved to Adopted Budget Fire FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funding FY 2004 Adopted $ 49,933,740 $ 510,000 Total Operating Budget Capital Budget General Obligation Bonds Other Restricted Funding Total Capital Budget FY 2004 Change 47,433,140 $ (2,500,600) 510,000 -0- $ 50,443,740 $ 47,943,140 $ (2,500,600) $ 5,998,000 -0- $ 7,645,700 1,543,800 $ 1,647,700 1,543,800 $ 5,998,000 $ 9,189,500 $ 3,191,500 $ 690,900 Department Total $ 56,441,740 $ 57,132,640 Staffing Summary Permanent 593.00 572.00 (21.00) Total Staffing 593.00 572.00 (21.00) Adopted Change Staffing Budget Reductions to Balance the Budget Defer Fire Apparatus Acquisition (one-time) Some apparatus will remain in service beyond its normal replacement, resulting in increased downtime and maintenance costs. $ Delay Opening of New Fire Station 20 (one-time) Fire and medical responses in the area to be served by Station 20 will continue to be handled by Stations 5 and 8. This station will not be ready for operation until Fiscal Year 2005 based on anticipated completion of construction. (21.00) Permanent FTE Eliminate Funds for Annual Recruit Class Retirement and other attrition will result in vacancies that cannot be filled. As a result, overtime costs are likely to increase. (803,000) (697,390) (21.00) (171,150) B-15 Change from Fiscal Year 2004 Approved to Adopted Budget Fire Adopted Change Staffing Budget Reductions to Balance the Budget (Continued) Planned Maintenance (one-time) Delaying preventive maintenance at fire stations and the Public Safety Academy could result in higher costs in the long run and adversely affect the health and safety of personnel. $ Other Reductions Purchase of air compressor (one-time) Phone services Purchase of safety clothing (70,000) (37,000) (10,000) (5,500) Total Reductions to Balance the Budget (21.00) $ (1,794,040) Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Operations and maintenance savings due to Aircraft Rescue and Firefighting Facility project cancellation Increase in pension rate from 9.57% to 11.17% Carryforward to Fiscal Year 2004 Increase in employee health insurance benefit costs Increase in fire pension rate from 5.03% to 9.29% Miscellaneous adjustments $ (2,031,630) (138,600) (33,820) 26,960 41,300 479,210 1,000,170 (50,150) Total Other General Changes -0- $ (706,560) $ (1,066,500) 4,258,000 $ 3,191,500 (21.00) $ 690,900 Capital Budget Changes Adjustments based on project schedules Carryforward from Fiscal Year 2003 Total Capital Budget Changes -0- Total Changes B-16 Change from Fiscal Year 2004 Approved to Adopted Budget Library FY 2004 Approved FY 2004 Adopted FY 2004 Change Financial Summary Operating Budget General Purpose Funds Other Restricted Funding Total Operating Budget Capital Budget General Obligation Bonds Total Capital Budget $ $ Department Total $ 22,133,100 $ 22,247,980 Staffing Summary Permanent Non-Permanent 247.50 55.25 233.50 53.25 (14.00) (2.00) Total Staffing 302.75 286.75 (16.00) $ 10,156,550 $ 8,944,670 $ (1,211,880) 11,156,550 10,839,310 (317,240) $ 21,313,100 $ 19,783,980 $ (1,529,120) 820,000 $ 820,000 $ 2,464,000 $ 2,464,000 $ $ 1,644,000 1,644,000 114,880 Adopted Change Staffing Budget Reductions to Balance the Budget (City Funds) Delay opening the Midtown Library Twelve month delay in opening this new library, which will not be ready for operation until Fiscal Year 2005 based on anticipated completion of construction. (5.00) $ Permanent FTE Non-Permanent FTE Delay opening the Quincie Douglas Library Six month delay in opening this new library, which will not be ready for operation until Fiscal Year 2005 based on anticipated completion of construction. Automated Check-Out System Savings The use of new patron self-check equipment has shown that front counter staffing can be reduced. Several systems have been implemented and additional systems are funded for Fiscal Year 2004. Eliminate a Contracted Technology Service Funding for a contracted technology service no longer used by the Library will be eliminated with no impact on public service. (142,540) (4.00) (1.00) Permanent FTE Non-Permanent FTE (8.00) (2.00) Permanent FTE (5.00) (10.00) (140,010) (5.00) (72,460) (26,500) B-17 Change from Fiscal Year 2004 Approved to Adopted Budget Library Adopted Change Staffing Budget Reductions to Balance the Budget (City Funds) Library District Tax Increase Pima County will be requested to raise the Library District tax rate of 21.24 cents (per $100 of assessed value) by about 1.47 cents to generate enough funding to avoid an additional $736,490 in reductions required to balance the budget. Total Reductions to Balance the Budget (City Funds) (20.00) $ (381,510) Pima County Share of Reductions to Balance the Budget $ (381,510) $ (1,040,920) (68,600) 12,000 72,500 147,260 Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Carryforward from FY 2003 Increase in pension rate from 9.57% to 11.17% Southwest Library Staffing When opened, the Southwest Library branch was initially staffed with employees from other branches. This increase provides for the appropriate authorized staffing levels. Increase in employee health insurance benefit costs Miscellaneous adjustments Total Other General Changes 4.00 Permanent FTE Non-Permanent FTE 3.00 1.00 155,220 (43,560) 4.00 $ (766,100) $ 1,644,000 $ 1,644,000 (16.00) $ 114,880 Capital Budget Changes Carryforward from Fiscal Year 2003 Total Capital Budget Changes -0- Total Changes B-18 Change from Fiscal Year 2004 Approved to Adopted Budget Neighborhood Resources FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Federal Funding Other Restricted Funding FY 2004 Adopted FY 2004 Change $ 2,180,310 $ 370,000 92,400 1,939,530 370,000 92,400 $ (240,780) -0-0- 2,401,930 $ (240,780) 3,700,000 $ 2,820,000 4,260,000 1,075,000 1,545,000 2,560,000 Total Operating Budget Capital Budget General Purpose Funds Federal Funding Other Restricted Funding $ 2,642,710 $ $ 2,625,000 $ 1,275,000 1,700,000 Total Capital Budget $ 5,600,000 $ 10,780,000 $ 5,180,000 Department Total $ 8,242,710 $ 13,181,930 $ 4,939,220 Staffing Summary Permanent 21.00 19.00 (2.00) Total Staffing 21.00 19.00 (2.00) Adopted Change Staffing Budget Reductions to Balance the Budget Back to Basics Funding (Capital Budget) Funding for future rounds of neighborhood/downtown infrastructure improvements has been limited to Community Develoment Block Grant and Highway User Revenue Funds. This resulted in a decrease to General Purpose funds. Administrative Staff Citizen and neighborhood services administrator positions have been eliminated. $ (2.00) (525,000) (170,000) Permanent FTE (2.00) Youth Employment Programs The ability to administer the programs in-house has resulted in a decrease of required funds. (53,650) Other Reductions Miscellaneous operating costs (34,000) Total Reductions to Balance the Budget (2.00) $ B-19 (782,650) Change from Fiscal Year 2004 Approved to Adopted Budget Neighborhood Resources Adopted Change Staffing Budget Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Miscellaneous adjustments Total Other General Changes $ (24,600) (3,760) 13,150 15,380 16,700 $ 16,870 $ 5,705,000 $ 5,705,000 (2.00) $ 4,939,220 -0- Capital Budget Changes Carryforward from Fiscal Year 2003 Total Capital Budget Changes -0- Total Changes B-20 Change from Fiscal Year 2004 Approved to Adopted Budget Parks and Recreation FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Federal Funding Other Restricted Funding FY 2004 Adopted FY 2004 Change $ 39,192,640 $ 36,443,160 $ (2,749,480) 671,550 619,560 (51,990) 776,960 1,486,930 709,970 Total Operating Budget $ 40,641,150 Capital Budget General Obligation Bonds Other Restricted Funding $ $ 38,549,650 $ (2,091,500) 9,348,000 $ 19,928,900 $ 10,580,900 5,514,000 11,416,900 5,902,900 Total Capital Budget $ 14,862,000 $ 31,345,800 $ 16,483,800 Department Total $ 55,503,150 $ 69,895,450 $ 14,392,300 Staffing Summary Permanent Non-Permanent 400.50 264.50 384.00 249.75 (16.50) (14.75) Total Staffing 665.00 633.75 (31.25) Adopted Change Staffing Budget Reductions to Balance the Budget Leisure Class Program Reductions in fall, winter, and spring classes will focus on the least popular programs. The net savings after anticipated reductions in revenues is $163,330. (14.50) $ Permanent FTE Non-Permanent FTE (438,330) (2.00) (12.50) Water Savings The agreement between the City of Tucson and Pima County for the reconstruction of the treatment facility at Reid Park will provide reclaimed water for irrigation. (434,000) Maintenance of Parks Park users will see reduced levels of maintenance, including less frequent mowing, delayed trash and litter pick-up, reduced maintenance of playground surfaces, delayed graffiti removal, less frequent cleaning of comfort stations, more weeds due to reduced spraying and delayed storm damage clean-up. B-21 (5.00) Permanent FTE (5.00) (398,920) Change from Fiscal Year 2004 Approved to Adopted Budget Parks and Recreation Adopted Change Staffing Budget Reductions to Balance the Budget (Continued) Civic Events Support Reduce civic events support by approximately onethird and eliminate rental of some equipment. (3.00) $ Permanent FTE Aquatics Programs Aquatics supervision will be reduced and Catalina wading pool will be closed. Total Reductions to Balance the Budget (3.00) (1.25) (36,630) Permanent FTE Permanent FTE Permanent FTE (3.00) (1.00) (0.50) (126,190) (98,660) (36,650) (35,000) Non-Permanent FTE Non-Permanent FTE (1.00) (1.00) Permanent FTE (1.00) (34,340) (17,420) (17,000) (10,100) Permanent FTE Non-Permanent FTE Other Reductions Reduce administrative support staff Eliminate the Center of Downtown Program Reduce concerts and theater events Reduce YMCA support and the Sacred Heart program Eliminate support for arts and crafts and antique fairs Eliminate the monitor at the Randolph Skate Park Delay class reservation software system expansion Reduce painting maintenance of park facilities (189,380) (1.00) (0.25) (31.25) $ (1,872,620) Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Carryforward from Fiscal Year 2003 Increase in pension rate from 9.57% to 11.17% Increase in employee health insurance benefit costs Transfer from the capital budget based on new accounting standards Miscellaneous adjustments $ (1,048,990) (476,880) 133,400 214,730 299,800 700,000 (40,940) Total Other General Changes -0- Capital Budget Changes Adjustments based on project schedules Transfer to the operating budget based on new accounting standards Carryforward from Fiscal Year 2003 Total Capital Budget Changes (218,880) $ (1,988,300) (700,000) 19,172,100 -0- Total Changes $ $ 16,483,800 (31.25) $ 14,392,300 B-22 Change from Fiscal Year 2004 Approved to Adopted Budget Tucson City Golf FY 2004 Approved Financial Summary Operating Budget Other Restricted Funding Total Operating Budget Capital Budget Other Restricted Funding Total Capital Budget FY 2004 Change $ 10,118,220 $ 10,060,630 $ (57,590) $ 10,118,220 (57,590) $ $ Department Total FY 2004 Adopted $ 10,060,630 $ 592,000 $ 592,000 $ 2,048,900 $ 2,048,900 $ $ 1,456,900 1,456,900 $ 10,710,220 $ 12,109,530 1,399,310 Staffing Summary Permanent Non-Permanent 43.00 110.75 43.00 110.75 -0-0- Total Staffing 153.75 153.75 -0- Adopted Change Staffing Budget General Changes Reduction in merit and other salary adjustments Increase in pension rate from 9.57% to 11.17% Miscellaneous adjustments Total General Changes -0- Capital Budget Changes Adjustments based on project schedules Carryforward from Fiscal Year 2003 Trini Alvarez-First Tee Improvements $ (85,360) 26,640 1,130 $ (57,590) $ (592,000) 438,900 1,610,000 Total Capital Budget Changes -0- $ 1,456,900 Total Changes -0- $ 1,399,310 B-23 Change from Fiscal Year 2004 Approved to Adopted Budget Police FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Federal Funding Other Restricted Funding FY 2004 Adopted FY 2004 Change $ 106,660,330 $ 106,175,590 $ 5,904,580 6,250,450 6,305,290 6,262,700 (484,740) 345,870 (42,590) $ 118,870,200 (181,460) Total Operating Budget Capital Budget General Obligation Bonds $ 118,688,740 $ 6,092,000 $ 3,971,200 $ (2,120,800) Total Capital Budget $ 6,092,000 3,971,200 $ (2,120,800) Department Total $ 124,962,200 $ 122,659,940 $ (2,302,260) Staffing Summary Permanent Non-permanent 1,348.50 6.00 1,346.50 6.00 (2.00) -0- Total Staffing 1,354.50 1,352.50 (2.00) $ $ Adopted Change Staffing Budget Reductions to Balance the Budget Administrative Commissioned Officers Funding for nine vacant commissioned staff has been eliminated. Reductions will occur in several administrative areas throughout the department. $ Savings from Revised Jail Booking Policies The department will book arrestees with multiple charges on felony for prosecution by the Superior Court, rather than misdemeanor charge(s). (510,000) (300,000) Personnel Office A vacant personnel officer position has been eliminated. Less time will be devoted to developing the department's personnel policies. (1.00) Permanent FTE Helicopter Flight Hours Flight hours will be reduced on weekends between 5:30 p.m. and 7:00 p.m. to minimize the impact on public safety. (90,000) (1.00) (55,000) B-24 Change from Fiscal Year 2004 Approved to Adopted Budget Police Adopted Change Staffing Budget Reductions to Balance the Budget (Continued) Graphic Arts The department will increase the use of technological resources to illustrate crime scenes by eliminating one graphic arts specialist. (1.00) $ Permanent FTE (52,580) (1.00) Decentralize Crime Prevention Funding for one vacant commissioned staff has been eliminated as the department decentralizes the Crime Prevention Unit. Some crime prevention duties will be a service cut. (50,100) Other Reductions Telephone budget Uniforms and equipment Reduce funding of contracted services Advertising for recruits Miscellaneous adjustments (70,000) (41,100) (25,820) (20,000) (85,900) Total Reductions to Balance the Budget (2.00) $ (1,300,500) Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in pension rate from 9.57% to 11.17% for noncommissioned staff Increase due to carryforward from Fiscal Year 2003 Increase in funding for jailboard Increase in employee health insurance benefit costs Increase in commissioned pension rate from 5.46% to 9.84% Total Other General Changes $ (2,982,840) (794,180) 210,170 225,000 1,000,000 1,018,060 2,442,830 -0- Capital Budget Changes Adjustments to Police Substation project funding based on project schedule. Carryforward from Fiscal Year 2003 $ 1,119,040 $ (2,769,400) 648,600 Total Capital Budget Changes -0- Total Changes $ (2,120,800) (2.00) $ (2,302,260) B-25 Change from Fiscal Year 2004 Approved to Adopted Budget Independent Police Auditor FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Total FY 2004 Adopted FY 2004 Change $ 154,440 $ 155,350 $ 910 $ 154,440 $ 155,350 910 $ Staffing Summary Permanent 2.00 2.00 -0- Total Staffing 2.00 2.00 -0- Adopted Change Staffing General Changes Reduction in merit and other salary adjustments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Budget $ Total Changes -0- B-26 $ (2,080) 1,160 1,830 910 Change from Fiscal Year 2004 Approved to Adopted Budget Office of the Public Defender FY 2004 Approved FY 2004 Adopted FY 2004 Change Financial Summary Operating Budget General Purpose Funds $ 2,361,320 $ 2,333,440 $ (27,880) Department Total $ 2,361,320 2,333,440 $ (27,880) $ Staffing Summary Permanent 33.50 33.50 -0- Total Staffing 33.50 33.50 -0- Adopted Change Staffing Budget General Changes Reduction in merit and other salary adjustments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Miscellaneous adjustments Total Changes -0- B-27 $ (77,190) 24,100 25,310 (100) $ (27,880) Change from Fiscal Year 2004 Approved to Adopted Budget Development Services FY 2004 Approved FY 2004 Adopted FY 2004 Change Financial Summary Operating Budget General Purpose Funds $ 8,277,560 $ 8,246,110 $ (31,450) Department Total $ 8,277,560 $ 8,246,110 (31,450) $ Staffing Summary Permanent Non-permanent 110.00 1.00 112.00 1.00 2.00 -0- Total Staffing 111.00 113.00 2.00 Adopted Change Staffing Budget Reductions to Balance the Budget Plan reviews and inspection fees will be increased by $414,000 to avoid budget and service reductions. $ Zoning fees will be increased by $300,000 to avoid budget and service reductions. -0-0- Total Reductions to Balance the Budget -0- Other General Changes Reduction in merit and other salary adjustments Due to new Federal Stormwater Quality Regulations two environmental inspectors were transferred from Transportation to better service the development community. Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Carryforward from Fiscal Year 2003 Miscellaneous adjustments $ $ Permanent FTE 2.00 -0(380,920) 109,610 86,680 80,070 30,000 43,110 Total Other General Changes 2.00 $ (31,450) Total Changes 2.00 $ (31,450) B-28 Change from Fiscal Year 2004 Approved to Adopted Budget Comprehensive Planning Task Force FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Federal Funding Other Restricted Funding Department Total FY 2004 Adopted FY 2004 Change $ 2,890,680 $ 80,000 -0- 3,551,990 $ 290,000 130,250 $ 2,970,680 3,972,240 $ $ 661,310 210,000 130,250 1,001,560 Staffing Summary Permanent 29.50 38.50 9.00 Total Staffing 29.50 38.50 9.00 Adopted Change Staffing Budget Reductions to Balance the Budget Consultant Services Funding Second year consultant funding for the Community Planning Program, specifically Rio Nuevo and Southland has been reduced. Total Reductions to Balance the Budget -0- Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Transfers from other departments As part of consolidating comprehensive planning functions, nine positions were transferred from Transportation, Historic Preservation, Water, and Annexation. $ (72,000) $ (72,000) $ (27,450) (5,590) 29,610 36,320 1,040,670 9.00 Permanent FTE 9.00 Total Other General Changes 9.00 $ 1,073,560 Total Changes 9.00 $ 1,001,560 B-29 Change from Fiscal Year 2004 Approved to Adopted Budget Solid Waste Management FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funding Total Operating Budget Capital Budget General Obligation Bonds Other Restricted Funding FY 2004 Adopted $ 24,855,630 410,000 $ $ 25,265,630 $ 24,714,780 FY 2004 Change 24,304,780 $ 410,000 (550,850) -0- $ (550,850) 4,624,600 $ 7,208,700 2,914,600 3,977,700 $ 1,710,000 $ 3,231,000 Total Capital Budget $ 4,941,000 $ 11,833,300 $ 6,892,300 Department Total $ 30,206,630 $ 36,548,080 $ Staffing Summary Permanent 236.00 237.00 1.00 Total Staffing 236.00 237.00 1.00 6,341,450 Adopted Change Staffing Budget Reductions to Balance the Budget Recycling Education Program The introduction of the new recycling program in Fiscal Year 2003 required a major educational campaign. Fiscal Year 2004 and future years will not require the same level of funding. This reduction includes one public information specialist ($42,770). (1.00) $ (262,770) (1.00) (219,770) Permanent FTE (1.00) Landfill Maintenance and Monitoring The reduction in landfill maintenance funding, including one landfill operator ($42,770), will impact daily operation and equipment maintenance. Permanent FTE (1.00) Transfer Household Hazardous Waste Program Funding This program is funded by both the City of Tucson and Pima County. The Fire Department will contribute a part of city's share of the program so no actual reduction will be realized by the program. B-30 (45,000) Change from Fiscal Year 2004 Approved to Adopted Budget Solid Waste Management Adopted Change Staffing Budget Reductions to Balance the Budget (Continued) Other Reductions Material Recovery Facility contingency funds Reduction to garbage container replacement program Reduce funding for Beat the Heap Program Miscellaneous adjustments Total Reductions to Balance the Budget Other General Changes Miscellaneous charges from support departments Reduction in merit and other salary adjustments Increase in pension rate from 9.57% to 11.17% Increase in employee health insurance benefit costs Tucson Clean Program The new fee for the Tucson Clean Program will provide for improved services in city neighborhoods and expenses to administer the fee. Includes the addition of three positions, one environmental inspector and two customer service representatives. Total Other General Changes $ (38,000) (37,000) (20,000) (46,000) (2.00) $ (668,540) $ (647,710) (482,320) 137,540 196,420 3.00 913,760 Permanent FTE 3.00 3.00 Capital Budget Changes Carryforward from Fiscal Year 2003 Adjustments based on project schedules $ 117,690 $ 8,876,300 (1,984,000) Total Capital Budget Changes -0- $ 6,892,300 Total Changes 1.00 $ 6,341,450 B-31 Change from Fiscal Year 2004 Approved to Adopted Budget Transportation FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Federal Funding Other Restricted Funding Total Operating Budget Capital Budget General Purpose Funds Federal Funding General Obligation Bonds Street and Highway Bonds Other Restricted Funding Total Capital Budget $ $ $ $ Department Total FY 2004 Adopted 43,509,910 $ 2,791,700 31,600,810 77,902,420 $ FY 2004 Change 43,981,060 $ 14,829,210 32,624,090 91,434,360 $ 471,150 12,037,510 1,023,280 13,531,940 2,696,000 $ 2,250,000 $ (446,000) 46,026,000 54,549,400 8,523,400 8,937,000 16,357,000 7,420,000 5,717,000 11,189,200 5,472,200 7,806,000 17,781,900 9,975,900 71,182,000 $ 102,127,500 $ 30,945,500 $ 149,084,420 $ 193,561,860 $ 44,477,440 Staffing Summary Permanent Non-Permanent 398.00 1.50 392.00 1.50 (6.00) -0- Total Staffing 399.50 393.50 (6.00) Adopted Change Staffing Budget Reductions to Balance the Budget Defer Mountain Avenue: Ft. Lowell Road to Roger Road (Capital Budget) This project will be deferred to provide a one-time source of federal funding for public transit in place of general purpose funds. $ Transfer of Highway User Revenue Funds (HURF) Eligible Budget Real Estate general purpose fund expenses that are directly related to rights-of-way will be fully charged to HURF ($250,000). Eligible stormwater project management and environmental inspection expenses will be charged to HURF ($123,320). (2,579,320) (373,320) Total Reductions to Balance the Budget -0- B-32 $ (2,952,640) Change from Fiscal Year 2004 Approved to Adopted Budget Transportation Adopted Change Staffing Budget Other General Changes Positions transferred to other departments As part of consolidating city functions such as comprehensive planning and development review, four positions have been transferred to the Comprehensive Planning Task Force ($427,030) and two positions to Development Services ($109,450). Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Transfer to HURF funding from General Purpose funds Increase service for Van Tran Transfer to federal funding from General Purpose Funds Transferred from capital budget based on new accounting standards Carryforward to Fiscal Year 2004 Miscellaneous adjustments Total Other General Changes (6.00) $ Permanent FTE (536,480) (6.00) (140,050) (75,230) 154,100 253,390 373,320 1,500,000 2,579,320 5,554,600 6,857,000 (35,390) (6.00) $ Capital Budget Changes Transferred to operating budget based on new accounting standards Carryforward to Fiscal Year 2004 New funding from federal, state, and other sources Adjustments based on project schedules Carryforward from Fiscal Year 2003 $ 16,484,580 (5,554,600) 715,000 2,818,680 4,891,600 28,074,820 Total Capital Budget Changes -0- Total Changes B-33 $ 30,945,500 (6.00) $ 44,477,440 Change from Fiscal Year 2004 Approved to Adopted Budget Tucson Water FY 2004 Approved Financial Summary Operating Budget Water Revenue and Operations Fund Miscellaneous Non-Federal Grants FY 2004 Adopted FY 2004 Change $ 109,197,000 $ 111,193,320 $ 150,000 150,000 Total Operating Budget Capital Budget Water Revenue and Operations Fund Other Restricted Funding $ 109,347,000 $ 111,343,320 1,996,320 -0- $ 1,996,320 $ 16,319,000 $ 31,992,000 20,823,000 $ 31,206,000 Total Capital Budget $ 48,311,000 52,029,000 $ 3,718,000 Department Total $ 157,658,000 $ 163,372,320 $ 5,714,320 Staffing Summary Permanent 590.00 589.00 (1.00) Total Staffing 590.00 589.00 (1.00) $ 4,504,000 (786,000) Adopted Change Staffing Budget General Changes Reduction in merit and other salary adjustments Increase in pension rate from 9.57% to 11.17% Transfer to Comprehensive Planning Task Force As part of consolidating comprehensive planning functions, one position was transferred; however, funding remains in Water. Transferred from capital budget based on new accounting standards $ (1,024,500) 393,820 (1.00) -0Permanent FTE (1.00) 2,627,000 Total General Changes (1.00) $ Capital Budget Changes Transferred to operating budget based on new accounting standards Adjustments based on project schedules Carryforward from Fiscal Year 2003 1,996,320 $ (2,627,000) 440,000 5,905,000 Total Capital Budget Changes -0- Total Changes B-34 $ 3,718,000 (1.00) $ 5,714,320 Change from Fiscal Year 2004 Approved to Adopted Budget Environmental Management FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funding $ Total Operating Budget Capital Budget General Obligation Bonds Other Restricted Funding FY 2004 Adopted 2,088,370 $ 320,000 $ 2,408,370 $ FY 2004 Change 2,011,410 320,000 $ (76,960) -0- 2,331,410 $ (76,960) 1,853,900 2,722,900 $ 2,844,000 $ 1,310,000 4,697,900 $ 4,032,900 Total Capital Budget $ 4,154,000 8,730,800 $ 4,576,800 Department Total $ 6,562,370 $ 11,062,210 $ 4,499,840 Staffing Summary Permanent 15.00 15.00 -0- Total Staffing 15.00 15.00 -0- $ Adopted Change Staffing Budget Reductions to Balance the Budget Landfill Operating and Maintenance Costs Reduce electrical costs required for removal of volatile organic compounds at landfill sites. $ Other Reductions Miscellaneous adjustments including increased staff charges to Rio Nuevo Project. (40,000) (20,120) Total Reductions to Balance the Budget -0- Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Total Other General Changes -0- Capital Budget Changes Carryforward from Fiscal Year 2003 $ (60,120) $ (37,860) (3,320) 11,430 12,910 $ (16,840) $ 4,576,800 Total Capital Budget Changes -0- $ 4,576,800 Total Changes -0- $ 4,499,840 B-35 Change from Fiscal Year 2004 Approved to Adopted Budget Historic Preservation Office FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funding Total FY 2004 Adopted FY 2004 Change $ 134,410 $ 210,000 -0- $ -0- (134,410) (210,000) $ 344,410 -0- (344,410) $ $ Staffing Summary Permanent 2.00 -0- (2.00) Total Staffing 2.00 -0- (2.00) Adopted Change Staffing Budget General Changes Transferred to Comprehensive Planning Task Force All Historic Preservation Office functions have been included in the Comprehensive Planning Task Force. Total General Changes B-36 (2.00) $ (344,410) (2.00) $ (344,410) Permanent FTE (2.00) Change from Fiscal Year 2004 Approved to Adopted Budget Zoning Examiner FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Total FY 2004 Adopted FY 2004 Change $ 165,070 $ 167,500 $ 2,430 $ 165,070 $ 167,500 2,430 $ Staffing Summary Permanent 2.00 2.00 -0- Total Staffing 2.00 2.00 -0- Adopted Change Staffing Budget General Changes Reduction in merit and other salary adjustments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Total Changes -0- B-37 $ (1,020) 1,480 1,970 $ 2,430 Change from Fiscal Year 2004 Approved to Adopted Budget Tucson Convention Center FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funding FY 2004 Adopted FY 2004 Change $ 10,628,230 $ 10,130,110 $ 900,000 750,000 (498,120) (150,000) $ 11,528,230 $ 10,880,110 (648,120) Staffing Summary Permanent Non-Permanent 46.00 14.00 43.00 13.25 (3.00) (0.75) Total Staffing 60.00 56.25 (3.75) Department Total $ Adopted Change Staffing Budget Reductions to Balance the Budget Reductions in Positions Three vacant permanent positions and a non-permanent position have been eliminated through realignment of responsibilities. (3.75) $ Permanent FTE Non-Permanent FTE (221,430) (3.00) (0.75) Maintenance of Grounds and Buildings Maintenance of Tucson Convention Center grounds and buildings will be reduced. The likely result will be deterioration of facilities making them less attractive and more difficult to market. (90,000) Other Reductions Miscellaneous operating costs (37,660) Total Reductions to Balance the Budget (3.75) $ (349,090) $ (158,960) (150,000) Other General Changes Reduction in merit and other salary adjustments Decrease in restricted funding based on approved formula for parking revenues Miscellaneous charges from support departments Increase in pension rate from 9.57% to 11.17% Increase in employee health insurance benefit costs Miscellaneous adjustments (104,450) 26,960 45,280 42,140 Total Other General Changes -0- Total Changes B-38 $ (299,030) (3.75) $ (648,120) Change from Fiscal Year 2004 Approved to Adopted Budget Office of Economic Development FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Federal Funding Department Total FY 2004 Adopted FY 2004 Change $ 1,490,620 $ 625,000 1,081,050 $ 667,050 (409,570) 42,050 $ 2,115,620 1,748,100 (367,520) $ $ Staffing Summary Permanent Non-Permanent 14.00 3.50 11.00 3.50 (3.00) -0- Total Staffing 17.50 14.50 (3.00) Adopted Change Staffing Budget Reductions to Balance the Budget Tucson Film Office Transfer to Metropolitan Tucson Convention and Visitors Bureau (MTCVB) The MTCVB will take over the Tucson Film Office, including three permanent positions. Reduce or Eliminate Funding for Technology and Workforce Development Agencies Funding of Tucson Technology Incubator and Southern Arizona Institute of Advanced Technology has been eliminated for a savings of $50,000 and $130,500 respectively. Funding for the City Workforce Development Program has been reduced 30% for a savings of $24,500. Mayor and Council added back $100,000 for Workforce Development related programs. Shift staff from General Purpose to Federal Funding One position will be funded with CDBG funds, saving $58,000 in General Purpose Funds. (3.00) $ (196,430) Permanent FTE (3.00) (105,000) (58,000) B-39 Change from Fiscal Year 2004 Approved to Adopted Budget Office of Economic Development Adopted Change Staffing Budget Reductions to Balance the Budget (Continued) Other Reductions Eliminate rent expenses due to move to City Hall Reduce funding for miscellaneous items Reduce funding of Foreign Trade Zone Reduce funding of Tucson Small Business Commission Total Reductions to Balance the Budget $ (37,650) (7,000) (2,000) (500) (3.00) $ (406,580) $ (24,040) (1,750) 6,010 12,960 45,880 $ 39,060 Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Increase in grant funding Total Other General Changes -0- Total Changes (3.00) $ B-40 (367,520) Change from Fiscal Year 2004 Approved to Adopted Budget Intergovernmental Relations FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Total FY 2004 Adopted FY 2004 Change $ 541,910 $ 538,190 $ (3,720) $ 541,910 $ 538,190 $ (3,720) Staffing Summary Permanent 2.00 2.00 -0- Total Staffing 2.00 2.00 -0- Adopted Change Staffing Budget General Changes Reduction in merit and other salary adjustments Increase in pension rate from 9.57% to 11.17% Increase in employee health insurance benefit costs Total Changes -0- B-41 $ (6,670) 1,440 1,510 $ (3,720) Change from Fiscal Year 2004 Approved to Adopted Budget Tucson-Mexico Trade Office FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Total FY 2004 Adopted FY 2004 Change $ 599,120 $ 485,630 $ (113,490) $ 599,120 485,630 (113,490) $ $ Staffing Summary Permanent 6.00 6.00 -0- Total Staffing 6.00 6.00 -0- Adopted Change Staffing Budget Reductions to Balance the Budget Lease requirements Lease expenses have been eliminated due to staff relocation to City Hall. $ Travel and marketing programs Travel and marketing budgets have been reduced 75% and 50% respectively. (86,000) (30,000) Total Reductions to Balance the Budget -0- Other General Changes Reduction in merit and other salary adjustments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% $ (116,000) $ (4,590) 2,480 4,620 2,510 Total Other General Changes -0- $ Total Changes -0- $ B-42 (113,490) Change from Fiscal Year 2004 Approved to Adopted Budget Budget and Research FY 2004 Approved Financial Summary Operating Budget General Purpose Funds $ FY 2004 Adopted 2,023,890 $ (15,920) $ 2,039,810 $ 2,023,890 $ (15,920) Staffing Summary Permanent 24.00 22.00 (2.00) Total Staffing 24.00 22.00 (2.00) Department Total 2,039,810 $ FY 2004 Change Adopted Change Staffing Budget Reductions to Balance the Budget Budget Management and Performance Management Programs General support on budget issues and performance system provided to other city departments and Mayor and Council will be reduced. (2.00) $ (113,800) Permanent FTE (2.00) Other Reductions Advertising Travel and training (10,000) (8,800) Total Reductions to Balance the Budget (2.00) $ (132,600) $ (38,980) 17,470 18,140 122,500 (2,450) $ 116,680 Other General Changes Reduction in merit and other salary adjustments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Carryforward for budget and position control software systems Miscellaneous adjustments Total Other General Changes -0- Total Changes (2.00) $ B-43 (15,920) Change from Fiscal Year 2004 Approved to Adopted Budget Finance FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funding $ Department Total FY 2004 Adopted 7,596,200 $ -0- $ 7,596,200 $ FY 2004 Change 7,837,630 $ 100,000 241,430 100,000 7,937,630 341,430 $ Staffing Summary Permanent 145.00 146.00 1.00 Total Staffing 145.00 146.00 1.00 Adopted Change Staffing Budget Reductions to Balance the Budget Savings in Risk Management/Safety Programs Employee safety training and other functions will be performed in-house by city staff. (1.00) $ (450,000) Permanent FTE (1.00) Savings in Pension Investment Management Fees Management fees have decreased due to lower valuation of pension investment assets. (145,000) Total Reductions to Balance the Budget Other General Changes Reduction in merit and other salary adjustments Increase in pension rate from 9.57% to 11.17% Increase in employee health insurance benefit costs Addition of capacity for Certificates of Participation funds for remodeling requirements. Change in accounting procedures to reflect bank fee expenditures which are offset by interest income Transfer Employee Benefits function from the Human Resources Department including two insurance clerk positions Adjustments in charges to other departments (1.00) $ (595,000) $ (332,230) 84,100 90,360 100,000 200,000 2.00 210,360 Permanent FTE 2.00 583,840 Total Other General Changes 2.00 $ 936,430 Total Changes 1.00 $ 341,430 B-44 Change from Fiscal Year 2004 Approved to Adopted Budget Human Resources FY 2004 Approved Financial Summary Operating Budget General Purpose Funds $ Department Total FY 2004 Adopted FY 2004 Change 3,028,400 $ 2,523,140 $ (505,260) $ 3,028,400 $ 2,523,140 (505,260) $ Staffing Summary Permanent 29.00 25.00 (4.00) Total Staffing 29.00 25.00 (4.00) Adopted Change Staffing Budget Reductions to Balance the Budget Human Resources Reorganization A reorganization of Human Resources functions provides opportunities for savings in staff and other costs, including rent expenses. (2.00) $ Permanent FTE (2.00) Employee Training Programs General training provided by the department to city employees has been reduced. Departments have training budgets to provide for the specific needs of their employees. (66,540) Other Reductions Miscellaneous adjustments Medical costs associated with pre-employment services (24,480) (9,000) Total Reductions to Balance the Budget Other General Changes Transfer Employee Benefits function to the Finance Department including two insurance clerk positions. Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Carryforward from Fiscal Year 2003 (194,000) (2.00) $ (294,020) (2.00) $ (210,360) Permanent FTE 2.00 (91,090) (4,140) 21,550 22,800 50,000 Total Other General Changes (2.00) $ (211,240) Total Changes (4.00) $ (505,260) B-45 Change from Fiscal Year 2004 Approved to Adopted Budget Information Technology FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Other Restricted Funding FY 2004 Adopted FY 2004 Change $ 10,892,080 599,500 $ $ 11,491,580 $ 11,066,070 Staffing Summary Permanent Non-Permanent 82.50 2.16 79.50 1.66 (3.00) (0.50) Total Staffing 84.66 81.16 (3.50) Department Total 10,551,380 $ 514,690 $ (340,700) (84,810) (425,510) Adopted Change Staffing Budget Reductions to Balance the Budget Reduce Funding for the Citywide Computer Replacement Program This cut will reduce the replacement of old personal computers (PCs) by approximately 200 units in Fiscal Year 2004. This will result in extending the replacement periods for all city personal computers. Older equipment is slower and may not support newer software or technology. Reduction of Vacant Positions Two information technology managers and one computer operator vacancies will be eliminated. $ (3.00) (200,000) (192,000) Permanent FTE (3.00) Eliminate Weekly CityPage Since August 1995, CityPage has provided the public with information on City of Tucson services, programs, events, participation opportunities, etc. This will affect community members who use CityPage as an information source and city staff trying to inform the public. Eliminate a Part-Time Technological Intern Position The Citywide Computer Replacement program relies in part upon this part-time position for the timely completion of tasks associated with ordering, receiving, inventorying, configuring, and delivering the computers. B-46 (47,580) (0.50) Non-Permanent FTE (0.50) (13,160) Change from Fiscal Year 2004 Approved to Adopted Budget Information Technology Adopted Change Staffing Budget Reductions to Balance the Budget (Continued) Other Reductions Computer hardware and software upgrades Cable inspections and I-Net expansion (one time) Data wiring improvements and alterations (one time) Technical training and other miscellaneous costs Total Reductions to Balance the Budget $ (84,590) (60,650) (35,000) (28,240) (3.50) $ (661,220) $ (265,000) (252,420) (15,030) 55,340 71,840 675,190 (34,210) $ 235,710 Other General Changes Eliminate capacity for restricted funding no longer available Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Carryforward from Fiscal Year 2003 Miscellaneous adjustments Total Other General Changes -0- Total Changes (3.50) $ B-47 (425,510) Change from Fiscal Year 2004 Approved to Adopted Budget Operations FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Federal Funding Other Restricted Funding FY 2004 Adopted FY 2004 Change $ 16,988,410 $ 14,838,370 $ (2,150,040) 1,500,000 1,500,000 -01,500,000 1,598,770 98,770 Total Operating Budget Capital Budget General Purpose Funds Other Restricted Funding $ 19,988,410 $ 17,937,140 $ (2,051,270) $ -0- $ 8,222,000 931,200 $ 931,200 4,997,200 (3,224,800) Total Capital Budget $ 8,222,000 5,928,400 Department Total $ 28,210,410 $ $ (2,293,600) $ 23,865,540 $ (4,344,870) Staffing Summary Permanent Non-Permanent 367.00 2.00 348.00 2.00 (19.00) -0- Total Staffing 369.00 350.00 (19.00) Adopted Change Staffing Budget Reductions to Balance the Budget Building Maintenance Management Funding for maintenance of buildings will be reduced through changes in contracting and management of building maintenance. $ (1,000,000) Vehicle Replacement Savings will be generated by reducing the number of vehicles purchased and through changes in vehicle management. (765,150) Custodial Services Savings will be generated through changes in custodial services contracting and management. (400,000) Facilities Management Staff Decrease in support staff for building maintenance functions due to changes in maintenance management. (6.00) Permanent FTE (6.00) B-48 (362,050) Change from Fiscal Year 2004 Approved to Adopted Budget Operations Adopted Change Staffing Budget Reductions to Balance the Budget (Continued) Architectural and Engineering Staff Support staff for facility design project management and associated miscellaneous operating costs have been reduced. (3.00) $ (295,000) Permanent FTE (3.00) Fleet Services Staff Decrease in support staff for fleet services functions. (11.00) (285,270) Permanent FTE (11.00) Telephone Usage Savings will be generated through changes in telephone usage. (213,730) Administrative Staff Positions have been eliminated based on process improvement recommendation. (3.00) (160,200) Permanent FTE (3.00) Midtown Multi-Service Center Reduce operating expenses based on a January 2004 expected project completion date. (100,000) Other Reductions Defer building component replacement projects Miscellaneous adjustments Reduction of energy star building program projects Reduce funding for I-Net support equipment Reduce funding for computer-aided dispatch (165,090) (140,360) (116,820) (55,150) (54,000) Total Reductions to Balance the Budget (23.00) $ (4,112,820) Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Operating carryforward from Fiscal Year 2003 Adjustments in charges to other departments Added positions funded from other agencies Permanent FTE Total Other General Changes Capital Budget Changes Carryforward from Fiscal Year 2003 Adjustments based on project schedules -0- Total Changes (624,410) (412,440) 130,110 233,370 470,770 2,264,150 -0- $ 2,061,550 $ 806,800 (3,100,400) 4.00 4.00 Total Capital Budget Changes $ $ (2,293,600) (19.00) $ (4,344,870) B-49 Change from Fiscal Year 2004 Approved to Adopted Budget Procurement FY 2004 Approved Financial Summary Operating Budget General Purpose Funds $ Department Total FY 2004 Adopted FY 2004 Change 3,486,340 $ 3,190,160 $ (296,180) $ 3,486,340 $ 3,190,160 (296,180) $ Staffing Summary Permanent 77.00 75.00 (2.00) Total Staffing 77.00 75.00 (2.00) Adopted Change Staffing Budget Reductions to Balance the Budget Increase Fleet Chargebacks Stores services for auto parts and other services is being fully charged to the Department of Operations Fleet Services fund. City Stores Operations One of five warehouses has been closed to provide savings in staff and other operating costs. $ (211,640) (1.00) (100,280) (1.00) (65,000) Permanent FTE (1.00) Other Staff Reductions A vacant position in Reprographics has been eliminated and an administrative position in the Architectural and Engineering Division is being charged to the Departments of Transportation and Water. Permanent FTE (1.00) Other Reductions Miscellaneous operating expenses (25,820) Total Reductions to Balance the Budget (2.00) $ (402,740) $ (126,210) (13,380) 36,380 52,210 157,560 $ 106,560 Other General Changes Reduction in merit and other salary adjustments Miscellaneous charges from support departments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Carryforward from Fiscal Year 2003 for Online Procurement Information System (OPIS) Total Other General Changes -0- Total Changes (2.00) $ B-50 (296,180) Change from Fiscal Year 2004 Approved to Adopted Budget Equal Opportunity Office FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Total FY 2004 Adopted FY 2004 Change $ 713,170 $ 583,420 $ (129,750) $ 713,170 583,420 (129,750) $ $ Staffing Summary Permanent 9.00 8.00 (1.00) Total Staffing 9.00 8.00 (1.00) Adopted Change Staffing Budget Reductions to Balance the Budget Equal Opportunity Office Reorganization This reorganization transfers responsibility for the internal discrimination complaint program ($69,000, one FTE) to the Human Resources Department and the Minority and Women Owned Business Enterprise function ($55,000) is now federally-funded by the Department of Transportation. Total Reductions to Balance the Budget (1.00) $ (124,000) (1.00) $ (124,000) $ (18,490) 5,340 7,400 $ (5,750) (1.00) $ (129,750) Permanent FTE (1.00) Other General Changes Reduction in merit and other salary adjustments Increase in employee health insurance benefit costs Increase in pension rate from 9.57% to 11.17% Total Other General Changes -0- Total Changes B-51 Change from Fiscal Year 2004 Approved to Adopted Budget Non-Departmental FY 2004 Approved Financial Summary Operating Budget General Purpose Funds Federal Funding Other Restricted Funding Total Operating Budget Capital Budget General Fund General Fund: Certificates of Participation General Fund: Restricted General Fund: Restricted Trust Reserves Total Capital Budget FY 2004 Adopted FY 2004 Change $ 17,488,840 $ 12,321,690 $ (5,167,150) 166,110 966,110 800,000 53,005,440 48,806,800 (4,198,640) $ 70,660,390 $ 62,094,600 $ (8,565,790) $ $ Department Total -0- $ 850,000 $ 850,000 4,000,000 10,200,300 6,200,300 -01,000,000 1,000,000 -06,650,000 6,650,000 4,000,000 $ 18,700,300 $ 14,700,300 $ 74,660,390 $ 80,794,900 $ 6,134,510 Staffing Summary Permanent 5.75 4.75 (1.00) Total Staffing 5.75 4.75 (1.00) Adopted Change Staffing Budget Reductions to Balance the Budget Postpone Issuance of Certificates of Participation Debt service payments for certificates of participation will not be required as originally planned based on project schedules. $ Reduce Outside Agency Funding by 10% Outside Agency budgets will be reduced 10% with the exception of Tucson Downtown Alliance (which operates under a five-year Enhanced Services Agreement), Pima Animal Control, and the Metropolitan Tucson Convention and Visitors Bureau (MTCVB). Operating Savings from the Sale of the A-7 Ranch The cost of operating and maintaining the A-7 Ranch will not be required when it is sold. Debt service of $285,730 annually will be paid from the sale proceeds. B-52 (585,140) (326,100) (3.00) Permanent FTE (3.00) (276,290) Change from Fiscal Year 2004 Approved to Adopted Budget Non-Departmental Adopted Change Staffing Budget Reductions to Balance the Budget (Continued) Eliminate Contingency Fund Mayor and Council funds for contingency requests for community events have been eliminated. $ Other Reductions Reduce General Expense funds Miscellaneous reductions Retiree medical premium savings Reduce funding for Geographic Information System Eliminate Youth Travel Funding (175,000) (348,000) (165,580) (99,950) (84,000) (16,910) Total Reductions to Balance the Budget (3.00) $ (2,076,970) Other General Changes Reduction in unallocated funding for merit and other salary adjustments Rescheduling, additions, or elimination of debt financing Reduction of budget capacity in Other General Expense Reduction of A-7 Ranch grant funds Rio Nuevo Project support staff All staff costs in support of Rio Nuevo are charged to the Rio Nuevo fund. Increase MTCVB funding The city worked with MTCVB to increase the Transient Occupancy Tax, which will be used to in combination with General Fund to increase the the city's contribution to MTCVB to $3 million annually. Carryforward for Tucson Convention Center Switchgear ($900,000) and contingency fund ($46,970) Miscellaneous adjustments Total Other General Changes $ 2.00 (3,019,890) (2,000,000) (282,500) -0- Permanent FTE (2.00) 873,750 946,970 20,210 2.00 B-53 (3,027,360) $ (6,488,820) Change from Fiscal Year 2004 Approved to Adopted Budget Non-Departmental Adopted Change Staffing Budget Capital Budget Changes Adjustments based on project schedules Funding for upgrade of financial and human resources software systems Funding for the City Hall Annex Parking Garage Carryforward from Fiscal Year 2003 $ (1,042,600) 850,000 4,000,000 10,892,900 Total Capital Budget Changes -0- Total Changes $ 14,700,300 (1.00) $ B-54 6,134,510 Position Changes to the Fiscal Year 2004 Budget FY 2004 Approved Elected and Official Neighborhood Services Environment and Development Strategic Planning Support Services Non-Departmental Total FY 2004 Adopted FY 2004 Change 248.75 3,418.80 1,385.00 85.50 737.66 5.75 235.75 3,343.55 1,388.00 78.75 707.16 4.75 (13.00) (75.25) 3.00 (6.75) (30.50) (1.00) 5,881.46 5,757.96 (123.50) Position Change Detail Permanent Non-Permanent Total Change Reductions to Balance the Budget Elected and Official City Manager Assistant to the City Manager Community Relations Administrator Special Projects Coordinator - City Manager's Office Sub-Total City Clerk Secretary Sub-Total City Attorney Principal Assistant City Attorney Assignment: Deputy City Attorney Senior Legal Investigator Legal Investigator Legal Secretary Secretary Sub-Total Total Elected and Official Neighborhood Services City Court Administrative Assistant Sub-Total B-55 (1.00) (1.00) (1.00) -0-0-0- (1.00) (1.00) (1.00) (3.00) -0- (3.00) (3.00) -0- (3.00) (3.00) -0- (3.00) (1.00) -0- (1.00) (2.00) (2.00) (1.00) (1.00) -0-0-0-0- (2.00) (2.00) (1.00) (1.00) (7.00) -0- (7.00) (13.00) -0- (13.00) (1.00) -0- (1.00) (1.00) -0- (1.00) Position Changes to the Fiscal Year 2004 Budget Permanent Reductions to Balance the Budget Neighborhood Services (Continued) Community Services Housing Technician Secretary Non-Permanent Total Change (1.00) (1.00) -0-0- (1.00) (1.00) Sub-Total (2.00) -0- (2.00) Fire Captain Fire Engineer Paramedic Fire Fighter (4.00) (3.00) (7.00) (7.00) -0-0-0-0- (4.00) (3.00) (7.00) (7.00) Sub-Total (21.00) -0- (21.00) (1.00) (1.00) (3.00) (2.00) (1.00) (9.00) -0-0- -0-0-0-0-0-0(0.50) (2.50) (1.00) (1.00) (3.00) (2.00) (1.00) (9.00) (0.50) (2.50) (17.00) (3.00) (20.00) (2.00) -0- (2.00) (2.00) -0- (2.00) (1.00) (1.00) (2.00) (1.00) (3.00) (2.00) (1.00) (1.00) (1.00) (0.50) (3.00) -0- -0-0-0-0-0-0-0-0-0-0-0(0.25) (1.00) (1.00) (2.00) (1.00) (3.00) (2.00) (1.00) (1.00) (1.00) (0.50) (3.00) (0.25) Fire Library Managing Librarian Senior Librarian Librarian Library Associate Senior Library Technical Assistant Customer Service Clerk Library Program Instructor Library Page Sub-Total Neighborhood Resources Citizen and Neighborhood Services Administrator Sub-Total Parks and Recreation Community Events Manager Management Analyst Parks and Golf Area Supervisor Aquatics Coordinator Recreation Program Coordinator Trade Specialist Painter Administrative Assistant Senior Account Clerk Recreation Assistant Groundskeeper Seasonal Swimming Pool Supervisor B-56 Position Changes to the Fiscal Year 2004 Budget Permanent Reductions to Balance the Budget Neighborhood Services (Continued) Parks and Recreation (Continued) Seasonal Senior Recreation Worker Seasonal Class Instructor Seasonal Recreation Worker Non-Permanent Total Change -0-0-0- (1.25) (12.50) (0.75) (1.25) (12.50) (0.75) (16.50) (14.75) (31.25) (1.00) (1.00) -0-0- (1.00) (1.00) (2.00) -0- (2.00) Total Neighborhood Services (61.50) (17.75) (79.25) Environment and Development Solid Waste Management Equipment Operation Specialist Public Information Specialist (1.00) (1.00) -0-0- (1.00) (1.00) (2.00) -0- (2.00) (2.00) -0- (2.00) (1.00) (1.00) (1.00) -0- -0-0-0(0.75) (1.00) (1.00) (1.00) (0.75) (3.00) (0.75) (3.75) (1.00) (1.00) (1.00) -0-0-0- (1.00) (1.00) (1.00) (3.00) -0- (3.00) (6.00) (0.75) (6.75) (1.00) (1.00) -0-0- (1.00) (1.00) (2.00) -0- (2.00) Sub-Total Police Police Personnel Manager Graphic Arts Specialist Sub-Total Sub-Total Total Environment and Development Strategic Initiatives Tucson Convention Center Management Coordinator Convention Center Stage Manager Building Maintenance Worker Cashier Sub-Total Office of Economic Development Motion Picture Coordinator Administrative Assistant Secretary Sub-Total Total Strategic Initiatives Support Services Budget and Research Special Projects Coordinator - City Manager's Office Budget Analyst Sub-Total B-57 Position Changes to the Fiscal Year 2004 Budget Permanent Reductions to Balance the Budget Support Services (Continued) Finance Risk Management Coordinator Sub-Total Human Resources Senior Human Resources Analyst Secretary Sub-Total Information Technology Information Technology Manager Computer Operator Technological Intern Sub-Total Operations Architect Electrical Engineer Facilities Management Superintendent Facilities Management Supervisor Fleet Services Superintendent Senior Electronics Technician Electrician Facilities Project Coordinator HVAC-R Mechanic Automotive Mechanic Senior Heavy Equipment Mechanic Accountant Administrative Assistant Senior Fleet Service Technician Data Control Clerk Sub-Total Procurement Senior Reprographics Technician Senior Storekeeper Sub-Total B-58 Non-Permanent Total Change (1.00) -0- (1.00) (1.00) -0- (1.00) (1.00) (1.00) -0-0- (1.00) (1.00) (2.00) -0- (2.00) (2.00) (1.00) -0- -0-0(0.50) (2.00) (1.00) (0.50) (3.00) (0.50) (3.50) (1.00) (1.00) (1.00) (1.00) (1.00) (1.00) (1.00) (1.00) (2.00) (3.00) (2.00) (1.00) (1.00) (5.00) (1.00) -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0- (1.00) (1.00) (1.00) (1.00) (1.00) (1.00) (1.00) (1.00) (2.00) (3.00) (2.00) (1.00) (1.00) (5.00) (1.00) (23.00) -0- (23.00) (1.00) (1.00) -0-0- (1.00) (1.00) (2.00) -0- (2.00) Position Changes to the Fiscal Year 2004 Budget Permanent Reductions to Balance the Budget Support Services (Continued) Equal Opportunity Office Equal Opportunity Specialist Non-Permanent Total Change (1.00) -0- (1.00) (1.00) -0- (1.00) (34.00) (0.50) (34.50) Non-Departmental General Expense Lead Ranch Worker Ranch Worker (1.00) (2.00) -0--0- (1.00) (2.00) Sub-Total (3.00) -0- (3.00) (3.00) -0- (3.00) Sub-Total Total Support Services Total Non-Departmental Total Reductions to Balance the Budget (119.50) (19.00) (138.50) 1.00 1.00 (1.00) (1.00) (1.00) 1.00 -0-0-0-0-0-0- 1.00 1.00 (1.00) (1.00) (1.00) 1.00 -0- -0- -0- -0- -0- -0- 1.00 1.50 0.50 -0-0- -0-0-00.50 0.50 1.00 1.50 0.50 0.50 0.50 3.00 1.00 4.00 3.00 1.00 4.00 Other General Changes Elected and Official City Manager Assistant City Manager Assistant to the City Manager Special Projects Coordinator - City Manager's Office Management Coordinator Annexation Coordinator Executive Assistant - City Manager or Mayor Sub-Total Total Elected and Official Neighborhood Services Library Librarian Library Associate Customer Service Clerk Library Page Library Program Instructor Sub-Total Total Neighborhood Services B-59 Position Changes to the Fiscal Year 2004 Budget Permanent Other General Changes (Continued) Environment and Development Development Services Environmental Inspector Sub-Total Comprehensive Planning Task Force Historic Preservation Program Manager Transportation Administrator Annexation Coordinator Project Manager Public Information Specialist Executive Assistant Administrative Assistant Sub-Total Solid Waste Management Environmental Inspector Customer Service Representative Sub-Total Transportation Transportation Administrator Environmental Inspector Project Manager Sub-Total Tucson Water Public Information Specialist Sub-Total Historic Preservation Office Historic Preservation Program Manager Administrative Assistant Sub-Total Total Environment and Development B-60 Non-Permanent Total Change 2.00 -0- 2.00 2.00 -0- 2.00 1.00 2.00 1.00 2.00 1.00 1.00 1.00 -0-0-0-0-0-0-0- 1.00 2.00 1.00 2.00 1.00 1.00 1.00 9.00 -0- 9.00 1.00 2.00 -0-0- 1.00 2.00 3.00 -0- 3.00 (2.00) (2.00) (2.00) -0-0-0- (2.00) (2.00) (2.00) (6.00) -0- (6.00) (1.00) -0- (1.00) (1.00) -0- (1.00) (1.00) (1.00) -0-0- (1.00) (1.00) (2.00) -0- (2.00) 5.00 -0- 5.00 Position Changes to the Fiscal Year 2004 Budget Permanent Non-Permanent Total Change Other General Changes Support Services Finance Insurance Clerk 2.00 -0- 2.00 Sub-Total 2.00 -0- 2.00 (2.00) -0- (2.00) (2.00) -0- (2.00) 4.00 -0- 4.00 4.00 -0- 4.00 4.00 -0- 4.00 1.00 1.00 -0-0- 1.00 1.00 2.00 -0- 2.00 2.00 -0- 2.00 Human Resources Insurance Clerk Sub-Total Operations Public Safety Dispatcher Sub-Total Total Support Services Non-Departmental General Expense Project Manager Staff Assistant Sub-Total Total Non-Departmental Total Other General Changes Total Position Changes B-61 14.00 1.00 15.00 (105.50) (18.00) (123.50) B-62 LEGAL REQUIREMENTS Primary Property Tax Levy: There is a strict limitation on how much the city can levy as a primary property tax. This primary property tax levy is limited to an increase of 2% over the previous year's maximum allowable primary levy, plus an increased dollar amount due to a net gain in property not taxed the previous year (ARS §42-17051). Even if the city does not adopt the maximum allowable levy from year to year, the 2% allowable increase will be based on the prior year's "maximum allowable levy.” The "net new property" factor is included in the calculation to take into account all new construction and any additional property added to a community due to an annexation. The 2% increase applies to all taxable property. The city’s budget is subject to requirements set by the State of Arizona's Constitution and statutes, and the Tucson City Charter. LEGAL REQUIREMENTS IMPOSED BY THE STATE State Spending Limitation Tucson, like all cities in the State of Arizona, is subject to numerous budgetary and related legal requirements. Article IX, Section 20(1) of the Arizona Constitution sets out limits on the city's legal budget capacity. In general, the Mayor and Council cannot authorize expenditures of local revenues in excess of the expenditure limitation determined annually by the State of Arizona's Economic Estimates Commission (EEC). This limitation is based on the city's actual expenditures incurred during Fiscal Year 1980, adjusted to reflect subsequent inflation and population growth. Not subject to this limit are items such as bond proceeds, related debt service, interest earnings, certain highway user revenue funds, federal funds, monies received pursuant to intergovernmental agreements, and state grants which are to be used for specific purposes. Each year the EEC recalculates expenditure limitations for population growth and inflation, using the federal Gross Domestic Product (GDP) index to account for inflationary increases. Secondary Property Tax Levy: The secondary property tax allows the city to levy a property tax for the purpose of retiring the principal and paying interest on general obligation bonds. This levy is referred to as the "unlimited" levy because this property tax may be levied in an amount to make necessary interest payments on, and for the retirement of, general obligation bonds issued by the city. Not only is the dollar amount of the secondary property tax levy "unlimited," the actual full cash value of property that is used in determining the tax rate will be increased by changes in market value without a cap (Article 9, Section 18 and 19, Arizona Constitution). Unlike the primary tax system which uses a controlled assessment system to determine the tax rate, state laws allow the city to levy the amount of secondary property tax necessary to pay off its general obligation bonds. On November 3, 1987, in accordance with state statutes, the voters of Tucson passed a $46.9 million increase in the expenditure base used to calculate the city's expenditure limitation. The effect is a permanent increase in the city's expenditure limitation, which the city has used for purposes of improved police, recreational, water, transportation, and fire protection services. Budget Adoption State law (ARS §42-17101) requires that on or before the third Monday in July of each fiscal year, the Mayor and Council must adopt a tentative budget. Once this tentative budget has been adopted, the expenditures may not be increased upon final adoption. In effect, with the adoption of the tentative budget, the council has set its maximum "limits" for expenditure, but these limits may be reduced upon final adoption. Property Tax Levy Limitation The Arizona Constitution and Arizona Revised Statutes (ARS) specify a property tax levy limitation system. This system consists of two levies, a limited levy known as the primary property tax levy and an unlimited levy referred to as the secondary property tax levy. The primary levy may be imposed for all purposes, while the secondary levy may only be used to retire the principal and interest or redemption charges on general obligation bonded indebtedness. Once the tentative budget has been adopted, it must be published once a week for at least two consecutive weeks. The tentative budget must be fully itemized in accordance with forms supplied by the auditor general and included in the council meeting minutes. C-1 State law (ARS §42-17104, §42-17105) specifies that seven or more days prior to the date the property tax levy is adopted, the city or town council must adopt the final budget for the fiscal year by roll call vote at a special meeting called for that purpose. State law requires adoption of the tax levy on or before the third Monday in August. The adopted budget then becomes the amount proposed for expenditure in the upcoming fiscal year and shall not exceed the total amount proposed for expenditure in the published estimates (ARS §42-17106). Once adopted, no expenditures shall be made for a purpose not included in the budget and no expenditures shall be made in excess of the amounts specified for each purpose in the budget, except as provided by law. This restriction applies whether or not the city has at any time received, or has on hand, funds or revenue in excess of those required to meet expenditures incurred under the budget. Federal and bond funds are not subject to this requirement. 1) Elected and Official 2) Neighborhood Services 3) Environment and Development 4) Strategic Initiatives 5) Support Services 6) Non-Departmental The departments within a given program category are held accountable for their budget. Each department and the Budget and Research Department continuously monitor expenditures. If budget changes are needed, city departments prepare budget change requests that identify the areas to be increased and decreased. The Director of Budget and Research approves these budget change requests; under special circumstances the City Manager or his designee also approves the change requests. If there are major policy or program implications associated with a change, the City Manager may submit it to the Mayor and Council for approval. Once approved, the revised appropriation is entered into the city’s financial management system. Adoption Of Tax Levy State law (ARS §42-17107) governing truth in taxation notice and hearing requires that on or before July 1st, the county assessor shall transmit to the city an estimate of the total net assessed valuation of the city, including an estimate of new property that has been added to the tax roll since the previous levy of property taxes in the city. If the proposed primary property tax levy, excluding amounts that are attributable to new construction, is greater than the amount levied by the city in the preceding year, the governing body shall publish a notice of tax increase. The truth in taxation hearing must be held prior to the adoption of the property tax levy. ARS §42-17106 permits the Mayor and Council, on the affirmation of a majority of the members at a duly noticed public meeting, to authorize the transfer of funds between program categories if the funds are available so long as the transfer does not violate the state set spending limitations. LEGAL REQUIREMENTS IMPOSED BY THE CITY CHARTER Certain legal requirements of the City Charter– property tax limitation and scheduling of budget adoption–are more restrictive than state law. The tax levy for the city must be adopted on or before the third Monday in August (ARS §42-17151). The tax levy must be specified in an ordinance adopted by the Mayor and Council. The levy is for both the primary and secondary tax. Property Tax Levy Limitation Chapter IV, Section 2 of the Tucson Charter sets an upper property tax limit of $1.75 per $100 assessed value. Therefore, state laws notwithstanding, the city cannot levy a combined primary and secondary property tax that exceeds $1.75. Budget Revisions ARS §42-17106 requires that no expenditures be made for a purpose not included in the adopted budget in any fiscal year in excess of the amount specified for each purpose in the budget. The City of Tucson in its annual Budget Adoption Resolution defines “purpose” as a series of departments and offices organized into the following six program categories: Fiscal Year The fiscal year of the city begins the first day of July of each year. (Tucson City Charter, Chapter XIII, Section 1) C-2 Submission of the Recommended Budget City Ordinance Setting the Tax Rate The City Charter requires that the City Manager prepare a written estimate of the funds required to conduct the business and affairs of the city for the next fiscal year. This estimate, which is the recommended budget, is due on or before the first Monday in May of each year, or on such date in each year as shall be fixed by the Mayor and Council. (Tucson City Charter, Chapter XIII, Section 3) On the day set for making tax levies, and not later than the third Monday in August, the Mayor and Council must meet and adopt an ordinance that levies upon assessed valuation of property within the city a rate of taxation sufficient to raise the amounts estimated to be required in the annual budget. (Tucson City Charter, Chapter XVIII, Section 7 and Ordinance Number 1142, effective 6-23-48) Budget Approval THE CITY’S BUDGET PROCESS On or before the first Monday in June of each year, or on such date in each year as shall be fixed by the Mayor and Council, the City Manager is required to submit to the Mayor and Council an estimate of the probable expenditures for the coming fiscal year, stating the amount in detail required to meet all expenditures necessary for city purposes, including interest and sinking funds, and outstanding indebtedness. Also required is an estimate of the amount of income expected from all sources and the probable amount required to be raised by taxation to cover expenditures, interest, and sinking funds. (Tucson City Charter, Chapter XVIII, Section 4) While state and city legal requirements dictate certain facets of the budget process, the budget evolves though a number of steps: (1) identification of priorities, (2) a five-year forecast of revenues and expenditures, (3) department requests and the city manager’s recommendation, and (4) Mayor and Council adoption. A significant change to the budget process in Fiscal Year 2003 was the inclusion of a second year. Fiscal Year 2004 is the second year of the biennial budget. Step 1: Identification of Priorities Budget Publication and Hearings In October 1996 the Mayor and Council adopted the “Strategic Cycle for Budget Development and Planning,” a process for allocating resources based on identified community values and priorities. The Fiscal Year 2003 budget is the fifth budget to go through all phases of that process, which involved the community in identifying shared values, setting city service priorities, allocating resources to programs and projects, and evaluating the success of programs and projects. The budget has to be prepared in detail sufficient to show the aggregate sum and the specific items allowed for each and every purpose. The budget and a notice that the Mayor and Council will meet for the purpose of making tax levies must be published in the official newspaper of the city once a week for at least two consecutive weeks following the tentative adoption of such budget. (Tucson City Charter, Chapter XVIII, Section 5) To identify the community’s values and priorities, public forums were conducted during the spring and summer of 1997 as part of the Livable Tucson Vision Program. Over 1,200 community members, business people, and city employees participated. Seventeen goals for strengthening the community emerged from these forums. These goals are used by departments and city management to assess programs and projects during the preparation of the budget. Adoption of the Budget and Tax Levy The Mayor and Council are required to hold a public hearing at least one week prior to the day on which tax levies are made, so that taxpayers may be heard in favor of or against any proposed tax levy. After the hearing has been concluded, the Mayor and Council adopt the budget as finally determined upon. All taxes are to be levied or voted upon in specific sums and cannot exceed the sum specified in the published estimate. (Tucson City Charter, Chapter XVIII, Section 6 and Ordinance Number 1142, effective 6-23-48) The City Strategic Plan was developed to further guide resources towards priority areas and to focus attention on the results to be achieved. In December 2001, the Mayor and Council adopted six focus areas for Fiscal Years 2003 and 2004: Transportation, Downtown, Growth, Neighborhoods, Economic Development, and Good Government. Within each C-3 Citizens Advisory Committees: The Mayor and Council have also established two citizen advisory committees for budget oversight: the Budget Advisory Committee (BAC) and the Bond Project Oversight Committee (BPOC). The BAC reviews the budget and financial policies of the city to ensure the Mayor and Council’s intentions are carried out. The BPOC tracks the city’s use of bond funds through regular committee meetings and attendance at project management reviews. focus area, a set of strategies and priority projects were approved. Taken collectively, these projects set the workplan for the city during Fiscal Years 2003 and 2004. Step 2: Five-Year Forecast of Revenues and Expenditures Each summer a five-year financial forecast–the proforma–is prepared for all sources of funds. This financial forecast takes into consideration economic factors and strategic plans implemented by the city. All departments participate by projecting their expenditures, which are reviewed and modified by the Budget and Research Department. The Finance Department projects revenues. The expenditure and revenue forecasts are collated by the Budget and Research Department and presented to the city manager. The proforma then serves as a baseline from which to develop a balanced budget for the coming year. Mayor and Council Review and Adoption: Within the framework of the identified community priorities and the policy initiatives, the Mayor and Council review the city manager’s recommended budget during several study sessions. Department directors are available to respond to questions. Following these reviews and public hearings to obtain taxpayer comments, the Mayor and Council adopt the budget and property tax levy. Step 3: Department Requests and the City Manager’s Recommendation In the fall, department directors are asked to submit budget requests. Following a review by the Budget and Research Department and the Operating Budget Review Committee, each department’s requested budget is reviewed by the City Manager. The city manager, acting upon citywide priorities, will revise department requested budgets and prepare a balanced budget for Mayor and Council consideration. Step 4: Mayor and Council Adoption As noted earlier, this step in the process is governed by both state and city legal requirements and provides for citizen comment. Public Hearings: Citizens are provided three public hearings to express to the Mayor and Council their opinions and concerns about the recommended budget and property tax levy. The first public hearing is held prior to the Mayor and Council’s study session reviews of the recommended budget. The second public hearing is held subsequent to those reviews and the Mayor and Council’s tentative adoption of the budget. The third public hearing is a truth in-taxation hearing regarding the primary property tax levy. C-4 STATEMENT REQUIRED BY ARIZONA REVISED STATUTES 42-17102 RELATIVE TO PROPERTY TAXATION PRIMARY AND SECONDARY TAX LEVIES FISCAL YEARS 2003 AND 2004 FY 2003 Levy Property Tax Primary $ Secondary Total FY 2003 Revised (Estimated) $ 4,601,930 $ 2 3 4 4,601,930 $ 4,904,190 20,674,970 23,055,320 25,276,900 $ 25,276,900 $ 27,959,510 Primary Secondary 1 FY 2004 Levy 20,674,970 Actual FY 2003 Rate Property Tax FY 2004 Maximum Levy Amount $ 3 0.2089 0.9113 $ 0.2089 0.9480 Total $ 1.1202 $ 1.1569 1 $ 23,055,320 $ 31,532,650 Amount Rate Increase/ (Decrease) Estimated FY 2004 4 Rate $ 8,477,330 Amount of Levy Increase/ (Decrease) $ $ Percentage Levy Increase/ (Decrease) 302,260 6.6% 2,380,350 11.5% 2,682,610 10.6% 2 Percentage Rate Increase/ (Decrease) 0.0000 0.0367 0.0% 4.0% 0.0367 3.3% The primary property tax levy is shown at the estimated maximum possible amount. The actual maximum amount may be less. The primary property tax levy is limited to an increase of two percent over the previous year's maximum allowable primary levy plus an increased dollar amount due to a net gain in property not taxed in the previous year. The net new property factor is included in the calculation to take into account all new construction and property annexed in the last year. A sale of $25 million in general obligation bonds is assumed for 2003. Both of these rates may differ depending upon the final actual assessed valuations. C-5 CITY OF TUCSON PROPERTY TAX SUMMARY Taxing Jurisdiction FY 1994 State of Arizona FY 1996 FY 1997 FY 1998 5.28 5.24 5.34 5.41 5.74 5.72 5.68 5.60 5.80 6.16 6.29 6.99 6.46 6.26 6.03 6.05 5.86 5.74 Pima Community College 1.06 1.10 1.22 1.24 1.18 1.19 1.37 1.56 1.55 1.53 Flood Control District 0.54 0.46 0.36 0.36 0.33 0.32 0.30 0.30 0.35 0.35 Fire District 0.06 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.04 Central Arizona Project (CAP) Conservation District 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.13 0.13 0.13 City of Tucson Total3 Percent increase/(decrease) from prior year -0- $ FY 2003 5.27 Sub-Total without the City of Tucson -0- $ FY 2002 5.34 Tucson Unified School District -0- $ FY 2001 0.47 $ 2 -0- $ FY 2000 0.47 $ 1 -0- $ FY 1999 0.47 $ Pima County $ FY 1995 -0- $ -0- $ 13.41 $ 13.65 $ 13.81 $ 14.02 $ 13.50 $ 13.37 $ 13.63 $ 13.81 $ 13.62 $ 13.39 1.09 1.16 1.15 1.15 0.99 0.96 1.02 1.13 1.12 1.12 $ 14.50 $ 14.81 $ 14.96 $ 15.17 $ 14.49 $ 14.33 $ 14.65 $ 14.94 $ 14.74 $ 14.51 6.9% 2.1% 1.0% 1.4% (4.5%) (1.1%) 2.2% 2.0% (1.3%) (1.6%) Assessed Valuation 1 2 3 Primary (in billions) $ 1.471 $ 1.498 $ 1.530 $ 1.582 $ 1.727 $ 1.830 $ 1.887 $ 1.999 $ 2.088 $ 2.203 Secondary (in billions) $ 1.487 $ 1.547 $ 1.569 $ 1.599 $ 1.819 $ 1.904 $ 1.945 $ 2.049 $ 2.138 $ 2.269 Includes the Education Assistance rate ($0.49 in Fiscal Year 2003). Tucson Unified School District tax levy reflects State Aid to Education reduction ($3.53 in Fiscal Year 2003). Does not include any special assessment districts. C-6 City of Tucson Residential Property Owner Tax Valuation Fiscal Year 2003 Property Taxes Owner-Occupied Home with Assessed Valuation of $100,000 Pima County1 $ 599 City of Tucson $ 112 CAP Conservation District $ 13 Tucson Unified School District2 $ 574 Pima Community College $ 153 Tax Rate Per $1,000 Pima County1 Tucson Unified School District $ 2 Pima Community College Central Arizona Project (CAP) Conservation District Sub-Total City of Tucson Total 5.99 Total Tax 3 Amount $ 599.00 41.3% 5.74 574.00 39.6% 1.53 0.13 153.00 13.00 10.5% 0.9% $ 13.39 1.12 $ 1,339.00 112.00 92.3% 7.7% $ 14.51 $ 1,451.00 100.0% 1 Includes Flood Control and Fire District tax rates. 2 Tucson Unified School District actual levy after decreased for State Aid to Education. 3 The tax amount is calculated on 10% of the assessed value for tax purposes. C-7 Percent of Total SCHEDULE A TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY SCHEDULE OF ESTIMATED REVENUES AND EXPENDITURES FISCAL YEAR 2004 FUND UNRESERVED DIRECT ESTIMATED PROCEEDS ADOPTED FUND PROPERTY REVENUES FROM TOTAL BUDGETED ACTUAL BALANCE AT TAX OTHER THAN OTHER INTERFUNDFINANCIAL BUDGETED EXPENDITURES EXPENDITURES BEGINNING REVENUES PROPERTY FUNDING TRANSFERSRESOURCES EXPENDITURES FY 2003 (A) FY 2003 FY 2004 FY 2004 TAXES SOURCES IN OUT AVAILABLE FY 2004 1) General Fund Primary $ 4,904,190 $ 338,248,240 $ 303,705,520 $ 10,320,130 2) Special Revenue Funds 320,469,580 311,360,060 28,586,320 3) Debt Service Funds 4) Less: Designation for Future Years 36,791,630 34,309,070 5) Total Debt Service Funds 36,791,630 34,309,070 -0- 6) Capital Project Funds 67,774,200 74,494,110 -0- -0- 172,256,220 167,780,660 -0- -0- 7) Enterprise Funds -0- -0- -0Secondary -023,055,320 -0- -023,055,320 $ 297,014,580 $ 23,723,800 -0- -0- $ 335,962,700 $ 335,962,700 307,766,280 -0- -0- -0- 336,352,600 336,352,600 16,294,550 -0- -0- -0- 39,349,870 39,349,870 -0- -0- -0- -0- -0- -0- 39,349,870 39,349,870 70,646,000 -0- -0- 70,646,000 70,646,000 31,544,900 -0- -0- 175,481,850 175,481,850 -016,294,550 -0143,936,950 -0- -0- 8) Expendable Trust Fund -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- 9) Nonexpendable Trust Fund -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- TOTAL ALL FUNDS $ 935,539,870 $ 891,649,420 $ 38,906,450 $ 27,959,510 $ 125,914,700 $ 957,793,020 PREVIOUS CURRENT FISCAL YEAR FISCAL YEAR EXPENDITURE LIMITATION COMPARISON 1. 2. 3. 4. 5. 6. $ 765,012,360 Budgeted Expenditures Add/Subtract estimated net reconciling items Budgeted Expenditures Adjusted for Reconciling Items Less: Estimated Exclusions Amount Subject to Expenditure Limitation Economics Estimates Commission Official Expenditure Limitation $ 935,539,870 $ 957,793,020 -0-0935,539,870 957,793,020 (431,539,590) (442,982,090) 504,000,280 514,810,930 $ 501,030,598 $ 516,031,479 NOTES: (A) Includes actual expenditures as of the date the proposed budget was prepared and expenditures expected to be made for the remainder of the fiscal year. C-11 $ 957,793,020 SCHEDULE B TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY OF TAX LEVY AND TAX RATE INFORMATION FISCAL YEAR 2004 1. 2. 3. Maximum Allowable Primary Property Tax Levy (ARS §42-17051.A.) ESTIMATED 2004 FISCAL YEAR $ 8,146,101 $ 8,477,330 Amount Received from Primary Property Taxation in the 2002-03 Fiscal Year in Excess of the Sum of that Year's Maximum Allowable Primary Property Tax Levy (ARS §42-17102.A.18.) -0- Property Tax Levy Amounts A. Primary Property Taxes B. Secondary Property Taxes Total Property Tax Levy Amounts 4. 2003 FISCAL YEAR $ 4,612,960 20,756,360 $ 25,369,320 $ 4,904,190 23,055,320 $ 27,959,510 Property Taxes Collected* A. Primary Property Taxes 1. 2. 2002-03 Levy Prior Years' Levies Total Primary Property Taxes $ 4,601,930 -0$ 4,601,930 B. Secondary Property Taxes 1. 2. 2002-03 Levy Prior Years' Levies Total Secondary Property Taxes $ 20,674,970 -0$ 20,674,970 C. Total Property Taxes Collected 5. $ 25,276,900 Property Tax Rates A. City Tax Rate 1. Primary Property Tax Rate 2. Secondary Property Tax Rate Total City Tax Rate $ $ 0.2089 0.9113 1.1202 $ $ 0.2089 0.9480 1.1569 B. Special Assessment District Tax Rates Secondary Property Tax Rates - As of the date the proposed budget was prepared, the city was operating no special assessment districts for which secondary property taxes are levied. * Includes actual property taxes collected as of the date the proposed budget was prepared and the property taxes expected to be collected for the remainder of the fiscal year. C-12 SCHEDULE C TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY BY FUND OF REVENUES OTHER THAN PROPERTY TAXES SOURCE OF REVENUES ADOPTED REVENUES 2003 GENERAL FUND Local Taxes Business Privilege Tax $ 104,096,980 Public Utility Tax 7,499,440 Transient Occupancy Tax 7,508,800 Occupational Taxes 2,100,170 Liquor Taxes 731,300 Use Tax -0Licenses and Permits 15,953,740 Fines, Forfeitures, and Penalties 7,963,120 Use of Money and Property 6,065,670 Intergovernmental Revenues Shared State Taxes 58,013,060 State Grants-In-Aid 2,529,560 State Revenue Sharing 52,388,880 Charges for Services 20,220,760 Non-Revenue Receipts 10,581,690 TOTAL GENERAL FUND $ 295,653,170 SPECIAL REVENUE FUNDS Solid Waste Management Fund Business Privilege Tax $ 14,627,120 Licenses and Permits 10,000 Charges for Services 11,141,360 Total Solid Waste Fund 25,778,480 Library Fund Business Privilege Tax 9,047,850 Local Grants-In-Aid 10,676,980 Charges for Services 629,200 Total Library Fund 20,354,030 Public Safety Academy Fund Business Privilege Tax 3,821,750 Charges for Services 836,020 Total Public Safety Academy Fund 4,657,770 Transportation Enterprise Area Management Fund Licenses and Permits -0Fines and Forfeitures -0Use of Money and Property -0Total Transportation Enterprise -0Area Management Fund C-13 ACTUAL REVENUES 2003 ESTIMATED REVENUES 2004 $ 99,953,840 7,795,600 6,456,200 1,980,000 760,600 -015,953,740 8,363,120 3,420,980 $ 110,207,030 7,951,500 8,953,600 2,019,600 851,680 4,000,000 15,803,260 9,795,200 2,732,280 57,058,960 2,376,920 51,808,070 18,783,150 10,581,690 $ 285,292,870 59,026,000 2,637,830 43,388,700 20,915,920 8,731,980 $ 297,014,580 $ 15,816,080 10,000 10,077,000 25,903,080 $ 10,632,120 10,000 14,000,100 24,642,220 8,191,530 9,676,080 629,200 18,496,810 8,278,300 10,339,310 654,370 19,271,980 3,128,330 836,020 3,964,350 3,850,820 854,280 4,705,100 -0-0-0-0- 348,000 663,000 1,170,060 2,181,060 SCHEDULE C TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY BY FUND OF REVENUES OTHER THAN PROPERTY TAXES ADOPTED REVENUES 2003 ACTUAL REVENUES 2003 ESTIMATED REVENUES 2004 $ 7,557,770 3,929,520 11,487,290 $ 7,786,270 3,063,140 10,849,410 $ 7,127,040 3,753,070 10,880,110 13,296,400 9,396,400 19,030,100 Total Capital Agreements Fund Highway User Fund State Grants-In-Aid Interest Earnings 13,296,400 9,396,400 19,030,100 30,385,530 1,553,160 29,000,530 1,553,160 30,908,580 1,602,860 Total Highway User Fund Mass Transit Fund Business Privilege Tax State Grants-In-Aid Charges for Services Federal Grants 31,938,690 30,553,690 32,511,440 27,176,630 3,342,950 10,200,000 26,057,930 26,900,350 3,402,950 10,211,000 26,059,090 28,104,690 2,767,000 10,615,220 45,724,150 Total Mass Transit Fund Intermodal Surface Transportation Efficiency Act Fund Federal Grant 66,777,510 66,573,390 87,211,060 34,250,780 42,656,420 24,454,460 Total Intermodal Surface Transportation Efficiency Act Fund Community Development Block Grant Fund Federal Grant 34,250,780 42,656,420 24,454,460 13,093,870 14,061,690 14,312,970 Total Community Development Block Grant Fund Housing Assistance Fund Federal Grant Charges for Services 13,093,870 14,061,690 14,312,970 49,276,030 2,027,660 53,862,850 2,027,660 48,282,280 2,027,660 Total Housing Assistance Fund Federal Grants Fund Other Grants Fund 51,303,690 11,603,620 7,709,010 55,890,510 10,764,800 5,946,260 50,309,940 10,742,850 7,512,990 $ 292,251,140 $ 295,056,810 $ 307,766,280 SOURCE OF REVENUES SPECIAL REVENUE FUNDS (Continued) Convention Center Fund Business Privilege Tax Charges for Services Total Convention Center Fund Capital Agreements Fund Local Grants-In-Aid TOTAL SPECIAL REVENUE FUNDS C-14 SCHEDULE C TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY BY FUND OF REVENUES OTHER THAN PROPERTY TAXES ADOPTED REVENUES 2003 ACTUAL REVENUES 2003 ESTIMATED REVENUES 2004 $ 16,035,270 $ 14,987,200 $ 16,294,550 $ 16,035,270 $ 14,987,200 $ 16,294,550 $ 117,279,000 $ 113,387,860 $ 132,166,320 10,712,220 9,820,800 11,770,630 TOTAL ENTERPRISE FUNDS $ 127,991,220 $ 123,208,660 $ 143,936,950 TOTAL $ 731,930,800 $ 718,545,540 $ 765,012,360 SOURCE OF REVENUES DEBT SERVICE FUNDS Street and Highway Debt State Grants-In-Aid TOTAL DEBT SERVICE FUNDS ENTERPRISE FUNDS Water Utility Water Revenues Golf Course Fund Golf Revenues C-15 SCHEDULE D TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY BY FUND OF BOND PROCEEDS AND INTERFUND TRANSFERS FISCAL YEAR 2004 FUND PROCEEDS FROM OTHER FINANCING SOURCES INTERFUND TRANSFERS IN (OUT) GENERAL FUND Certificates of Participation: Fire Department Police Department Finance Department Operations Department General Expense $ 1,543,800 232,500 100,000 4,997,200 16,850,300 -0-0-0-0-0- -0-0-0-0-0- $ 23,723,800 -0- -0- General Obligation Bond Funds Street and Highway Project Funds $ 59,456,800 11,189,200 -0-0- -0-0- Total Capital Projects Funds $ 70,646,000 -0- -0- 338,900 31,206,000 -0-0- -0-0- $ 31,544,900 $ 125,914,700 -0-0- -0-0- Total General Fund SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS ENTERPRISE FUNDS Certificates of Participation Golf Water Revenue Bond Funds $ Total Enterprise Funds TOTAL ALL FUNDS C-16 SCHEDULE E TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY BY DEPARTMENT OF EXPENDITURES WITHIN EACH FUND FISCAL YEAR 2004 FUND/DEPARTMENT GENERAL FUND Mayor and Council City Manager City Clerk City Attorney City Court Community Services Fire Neighborhood Resources Parks and Recreation Police Independent Police Auditor Public Defender Development Services Comprehensive Planning Task Force Transportation Environmental Management Historic Preservation Office Zoning Examiner Economic Development Intergovernmental Relations Tucson-Mexico Trade Office Budget and Research Finance Human Resources Information Technology Operations Procurement Equal Opportunity Office Outside Agencies General Expense Debt Service Contingency Fund TOTAL GENERAL FUND ADOPTED BUDGETED ACTUAL BUDGETED EXPENDITURES EXPENDITURES EXPENDITURES 2003 2003 2004 $ 2,731,960 2,194,810 2,681,980 6,787,190 9,609,740 6,371,090 46,762,960 4,537,370 38,406,170 104,015,470 147,440 2,262,620 7,950,940 2,913,180 6,171,040 3,660,260 130,770 157,730 1,520,350 534,090 580,830 2,137,100 7,321,740 2,977,290 11,830,050 23,836,700 3,520,360 702,410 6,650,320 22,130,540 6,812,830 200,910 $ 338,248,240 C-17 $ 2,731,960 2,122,060 2,400,750 6,349,370 9,170,590 6,336,090 45,819,140 4,381,150 36,901,790 104,942,600 146,060 2,172,230 7,557,510 3,257,270 4,865,720 3,411,130 -0155,120 1,295,240 507,800 561,650 2,071,940 7,126,680 2,959,500 11,149,520 17,941,810 3,499,090 701,830 6,645,930 1,905,990 4,524,830 93,170 $ 303,705,520 $ 2,745,000 2,040,770 4,944,190 6,564,680 9,394,510 5,785,470 47,155,860 5,639,530 36,851,750 109,147,580 155,350 2,333,440 8,246,110 3,551,990 2,500,290 4,499,410 -0167,500 1,081,050 538,190 485,630 2,023,890 7,937,630 2,523,140 11,066,070 20,865,540 3,190,160 583,420 7,452,760 20,281,930 6,162,890 46,970 $ 335,962,700 SCHEDULE E TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY BY DEPARTMENT OF EXPENDITURES WITHIN EACH FUND FISCAL YEAR 2004 FUND/DEPARTMENT SPECIAL REVENUE FUNDS Solid Waste Management Fund Solid Waste Management Debt Service ADOPTED BUDGETED ACTUAL BUDGETED EXPENDITURES EXPENDITURES EXPENDITURES 2003 2003 2004 $ 30,223,620 303,560 $ 29,786,210 509,870 $ 31,513,480 337,440 Total Solid Waste Management Fund Library Fund Library General Expense 30,527,180 30,296,080 31,850,920 19,854,030 500,000 17,996,810 500,000 19,283,980 -0- Total Library Fund Public Safety Academy Fund Fire Police Debt Service 20,354,030 18,496,810 19,283,980 1,946,350 2,455,200 256,220 1,270,540 2,437,590 256,220 1,981,080 2,470,010 254,010 4,657,770 3,964,350 4,705,100 -0-0- -0-0- 2,630,760 102,080 -0- -0- 2,732,840 11,595,290 10,957,410 10,880,110 Total Tucson Convention Center Fund Capital Agreements Fund Parks and Recreation Transportation Environmental Management Debt Service 11,595,290 10,957,410 10,880,110 7,648,500 10,234,800 2,600,000 4,800,000 808,200 8,702,900 2,100,000 800,000 11,225,900 10,920,900 1,864,900 4,400,000 Total Capital Agreements Fund Highway User Fund Neighborhood Resources Comprehensive Planning Task Force Transportation 25,283,300 12,411,100 28,411,700 1,792,400 -037,976,860 1,792,400 108,880 35,025,090 4,352,400 130,250 35,776,390 Total Public Safety Academy Fund Transportation Enterprise Area Management Fund Transportation Debt Service Total Transportation Enterprise Area Management Fund Tucson Convention Center Fund Tucson Convention Center C-18 SCHEDULE E TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY BY DEPARTMENT OF EXPENDITURES WITHIN EACH FUND FISCAL YEAR 2004 FUND/DEPARTMENT ADOPTED BUDGETED ACTUAL BUDGETED EXPENDITURES EXPENDITURES EXPENDITURES 2003 2003 2004 SPECIAL REVENUE FUNDS (Continued) Outside Agencies General Expense Debt Service $ 101,650 158,590 2,136,830 $ 101,650 158,590 1,936,830 $ 100,580 161,190 1,179,070 Total Highway User Fund Mass Transit Fund Transportation Intermodal Surface Transportation Efficiency Act Fund Transportation Debt Service 42,166,330 39,123,440 41,699,880 67,924,710 66,791,190 89,454,860 34,250,780 -0- 42,656,420 -0- 23,654,460 800,000 Total Intermodal Surface Transportation Efficiency Act Fund Community Development Block Grant Fund Community Services Neighborhood Resources Economic Development Debt Service 34,250,780 42,656,420 24,454,460 11,277,360 1,645,000 125,000 46,510 12,045,130 1,845,050 125,000 46,510 10,960,010 3,190,000 125,000 37,960 13,093,870 14,061,690 14,312,970 51,154,480 149,210 55,741,300 149,210 50,181,790 128,150 51,303,690 55,890,510 50,309,940 357,950 1,651,400 300,000 -0664,240 6,330,030 196,480 1,651,400 389,580 58,380 597,690 5,651,390 383,980 1,366,810 -0-0619,560 6,250,450 Total Community Development Block Grant Fund Housing Assistance Funds Community Services Debt Service Total Housing Assistance Funds Federal Grants Fund City Attorney Community Services Fire Library Parks and Recreation Police C-19 SCHEDULE E TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY BY DEPARTMENT OF EXPENDITURES WITHIN EACH FUND FISCAL YEAR 2004 FUND/DEPARTMENT ADOPTED BUDGETED ACTUAL BUDGETED EXPENDITURES EXPENDITURES EXPENDITURES 2003 2003 2004 SPECIAL REVENUE FUNDS (Continued) Comprehensive Planning Task Force Environmental Management Historic Preservation Office Economic Development Operations $ Total Federal Grants Fund Other Grants Fund City Attorney City Court Community Services Fire Library Parks and Recreation Police Comprehensive Planning Task Force Solid Waste Management Transportation Economic Development Operations General Expense 80,000 200,000 20,000 500,000 1,500,000 $ 20,000 200,000 -0499,880 1,500,000 $ 80,000 -0-0542,050 1,500,000 11,603,620 10,764,800 10,742,850 155,010 362,000 500,000 350,000 650,000 1,075,430 1,098,390 210,000 410,000 1,078,000 34,560 1,500,000 285,620 110,260 143,770 500,000 -0650,000 1,071,720 932,070 210,000 410,000 350,000 34,560 1,398,260 135,620 133,390 359,060 650,000 350,000 500,000 1,269,340 1,053,200 210,000 410,000 1,078,000 -01,500,000 -0- 7,709,010 5,946,260 7,512,990 TOTAL SPECIAL REVENUE FUNDS $ 320,469,580 DEBT SERVICE FUNDS General Obligation Debt Service Fund Debt Service $ 20,756,360 Street and Highway Debt Service Fund Debt Service 16,035,270 $ 311,360,060 $ 336,352,600 $ $ Total Other Grants Fund TOTAL DEBT SERVICE FUNDS CAPITAL PROJECTS FUNDS Fire Library Parks and Recreation 19,321,870 14,987,200 23,055,320 16,294,550 $ 36,791,630 $ 34,309,070 $ 39,349,870 $ 6,315,100 1,500,000 18,012,600 $ 7,903,570 2,827,860 8,223,400 $ 7,645,700 2,464,000 19,928,900 C-20 SCHEDULE E TO RESOLUTION NO. 19568 CITY OF TUCSON SUMMARY BY DEPARTMENT OF EXPENDITURES WITHIN EACH FUND FISCAL YEAR 2004 FUND/DEPARTMENT ADOPTED BUDGETED ACTUAL BUDGETED EXPENDITURES EXPENDITURES EXPENDITURES 2003 2003 2004 CAPITAL PROJECTS FUNDS (Continued) Police $ Solid Waste Management Transportation Environmental Management Operations General Expense TOTAL CAPITAL PROJECTS FUNDS ENTERPRISE FUNDS Tucson Water Tucson City Golf TOTAL ENTERPRISE FUNDS TOTAL CITY FUNDS $ 1,345,000 1,952,400 33,695,000 4,239,800 -0714,300 67,774,200 $ $ 732,900 1,757,080 44,435,260 7,150,680 476,020 987,340 $ 3,738,700 4,624,600 27,546,200 4,697,900 -0-0- 74,494,110 $ 70,646,000 $ 161,544,000 10,712,220 $ 157,959,860 9,820,800 $ 163,372,320 12,109,530 $ 172,256,220 $ 167,780,660 $ 175,481,850 $ 935,539,870 $ 891,649,420 $ 957,793,020 C-21 EXHIBIT I TO RESOLUTION NO. 19568 Final 2004 Budget Purpose of Expenditure Elected and Official Mayor and Council City Manager City Clerk City Attorney $ Elected and Official Sub-Total Neighborhood Services City Court Community Services Fire Library Neighborhood Resources Parks and Recreation Tucson City Golf Police Independent Police Auditor Public Defender Neighborhood Services Sub-Total Environment and Development Development Services Comprehensive Planning Task Force Solid Waste Management Transportation Tucson Water Environmental Management Zoning Examiner Environment and Development Sub-Total Strategic Initiatives Tucson Convention Center Economic Development Intergovernmental Relations Tucson-Mexico Trade Office Strategic Initiatives Sub-total Support Services Budget and Research Finance Human Resources Information Technology Operations Procurement Equal Opportunity Office Support Services Sub-Total Non-Departmental Outside Agencies General Expense Debt Service Contingency Fund Non-Departmental TOTAL $ C-22 2,745,000 2,040,770 4,694,190 7,082,050 Final 2004 Budget Subject to State Budget Law $ 2,745,000 2,040,770 4,694,190 6,698,070 16,562,010 16,178,030 10,003,570 68,944,080 57,132,640 22,247,980 13,181,930 69,895,450 12,109,530 122,659,940 155,350 2,333,440 378,663,910 10,003,570 8,463,130 49,486,940 19,783,980 9,991,930 49,346,990 12,109,530 112,670,790 155,350 2,333,440 274,345,650 8,246,110 3,972,240 36,548,080 193,561,860 163,372,320 11,062,210 167,500 8,246,110 3,892,240 31,923,480 96,637,050 132,166,320 6,364,310 167,500 416,930,320 279,397,010 10,880,110 1,748,100 538,190 485,630 13,652,030 10,880,110 1,081,050 538,190 485,630 12,984,980 2,023,890 7,937,630 2,523,140 11,066,070 23,865,540 3,190,160 583,420 51,189,850 2,023,890 7,937,630 2,523,140 11,066,070 22,365,540 3,190,160 583,420 49,689,850 7,553,340 20,443,120 52,751,470 46,970 7,553,340 20,443,120 51,785,360 46,970 80,794,900 79,828,790 957,793,020 $ 712,424,310 C-26 NUMBER OF CITY EMPLOYEES PER 1,000 POPULATION 11.6 0.5 11.6 0.4 Recurring Revenues Commissioned Public Safety Personnel Utilities (Golf and Water) Grant-Funded Positions 11.7 0.5 1.5 11.9 0.5 1.5 1.6 1.6 2.8 2.9 6.7 6.7 6.8 7.0 1995 1996 1997 1998 2.9 2.9 12.3 11.9 11.8 0.5 0.5 0.5 1.4 1.5 1.6 11.9 0.4 11.5 0.5 1.5 1.5 3.0 2.9 3.1 7.0 1999 2000 D-2 7.1 2001 0.5 1.4 3.1 3.0 6.9 11.2 6.9 2002 3.0 6.5 6.3 2003 2004 SELECTED ECONOMIC INDICATORS Tucson Metro Area Description 2002 Calendar Year 2003 2004 2005 Personal Income (Billions of Dollars) Percentage Change Over Prior Year $ 21.812 3.8 $ 22.738 4.2 $ 24.081 5.9 $ 25.465 5.7 Retail Sales Without Food (Billions of Dollars)* Percentage Change Over Prior Year $ 7.044 $ 7.202 $ 7.614 $ 7.957 1.1 2.2 5.7 4.5 Residential Building Permits (Units) Percentage Change Over Prior Year 7,999 (1.9) 6,999 (12.5) 7,619 8.9 7,660 .5 Population (000)** Percentage Change Over Prior Year 890.5 2.3 908.9 2.1 931.4 2.5 952.4 2.3 Wage and Salary Employment (000) Percentage Change Over Prior Year 349.7 (.2) 353.6 1.1 367.1 3.8 378.3 3.1 .393 .389 .394 .397 Real Per Capita Disposable Income (2002) Dollars Percentage Change Over Prior Year $ 21,546 $ 21,794 $ 22,417 $ 22,722 1.6 1.2 2.9 1.4 Annual Earnings Per Worker Percentage Change Over Prior Year $ 31,071 3.0 $ 32,103 3.3 $ 32,958 2.7 $ 33,818 2.6 Consumer Price Index (CPI) Western Region (Percentage Change) 1.9 2.3 1.6 1.9 Personal Consumption Deflator (Percentage Change) 1.4 1.9 1.5 1.9 Gross Domestic Product (GDP) Implicit Price Deflator (Percentage Change) 1.1 1.6 1.8 1.8 406.5 3.7 423.5 4.2 448.0 5.8 463.6 3.5 Employment/Population Ratio Gasoline Sales (Millions of Gallons) Percentage Change Over Prior Year Source: Economic Outlook, May 2003, Economics and Business Research Program, Eller College of Business and Public Administration, The University of Arizona. *Calculated by combining expenditures for retail sales less food with restaurant and bar sales. **Population projections were made prior to Census 2000 using different base data than population data on page D-6. D-3 COMMUNITY PROFILE TUCSON - Combining a Rich History with a Bright Future Permanent settlements were built in Tucson nearly 2,000 years ago by people of the Hohokam culture. A Long History of Many Cultures The Hohokam culture thrived in this region until it suddenly declined during the fourteenth century. Native American cultures believed to be probable descendants of the Hohokam were joined by new arrivals from Spain, Mexico, and the eastern United States. Mission San Xavier del Bac, the “White Dove of the Desert,” was established by the Franciscan Order in the late 1600s and still serves the Tohono O’Odham Native American community. The mission was recently restored, with the cleaning of interior frescoes done by European artists who trained local Tohono O’Odham tribal members in the craft. More than 300 years after Tucson’s founding as a mission site, the “Old Pueblo” continues to grow and celebrate its diverse cultural influences. An Interesting Place to Live Located in the Sonoran Desert, Tucson is surrounded by mountain ranges and lush desert valleys. Tucsonans enjoy over 300 days of sunshine each year and an average temperature of 82 degrees. In Money Magazine’s 1998 ranking of 300 cities, Tucson was selected as the fifth “Best Place to Live” for medium-size cities in the West. Leisure activities are boundless. The Tucson area has more than 27,000 acres of park lands. In the nearby mountains and deserts, there are many places to camp, hike, and fish; the southern Arizona region is ranked one of the five best areas in the United States for bird watching. Golfing is available year-round on over 30 public and private golf courses, and the Tucson area annually hosts a Professional Golfers’ Association (PGA) and a Ladies Professional Golf Association (LPGA) golf tournament. In the winter, skiing is only a one-hour drive from Tucson. The University of Arizona provides a full range of intercollegiate athletic events. The women’s softball team has won repeated National Collegiate Athletic Association (NCAA) championships. The men’s basketball team won the NCAA championship in 1997 and were runners up in the championship in 2001. Tucson is the spring training home for three major league baseball teams: Arizona Diamondbacks, Chicago White Sox, and Colorado Rockies. In addition, the Tucson Sidewinders, a AAA affiliate of the Arizona Diamondbacks, offers a full schedule of summer baseball. D-4 Tucson provides opportunities to stimulate the mind as well as the body. The University of Arizona offers undergraduate, graduate, and doctoral degree programs and has an extension program open to the public. Pima Community College is the fifth largest multi-campus community college in the nation and offers courses in 64 program areas. There are over 215 arts groups and over 35 art galleries in Tucson. Tucson’s downtown arts district hosts over 800 arts and cultural events annually, with many other events and fairs available throughout Tucson. Many museums and other attractions are located in the Tucson area. Included are the Tucson Museum of Art, the Arizona Historical Society Museum, the Arizona State Museum, the Center for Creative Photography, the Tucson Children’s Museum, the Fort Lowell Museum, the Pima Air and Space Museum, Biosphere 2, the Tucson Botanical Gardens, the Reid Park Zoo, the Flandrau Planetarium, the Kitt Peak National Observatory, the San Xavier del Bac Mission, and the Arizona-Sonora Desert Museum (rated as one of America’s top ten zoos by Parade Magazine). We Mean Business Tucson’s business environment is as agreeable as its natural climate. Tourism, which accounted for over $1.8 billion in the past year, will continue to be a major contributor to the region’s economic base. Not just the service sector is booming: manufacturing employment in metropolitan Tucson has more than doubled in the past ten years. Tucson is home to a premier research institution– the University of Arizona–and is recognized as one of the megatrend cities for the 21st century with its emerging presence as a center for optics, astronomy, and health services. Balancing Growth and Preservation The City of Tucson, incorporated in 1877, is the second largest city in the State of Arizona. Tucson is forecast to have a population of over 510,000 in 2003. As with many communities in the West, growth has occurred at the edges of the urban area. City leaders are committed to ensuring that growth will complement existing neighborhoods. To ensure that areas in the central city remain attractive places to live and work, the City of Tucson works with neighborhoods through the Department of Neighborhood Resources and has initiated a Back to Basics program that directs financial resources to targeted areas. The aim of Back to Basics is to maintain and improve neighborhoods by collaborating with residents, businesses, and schools. Neighborhood residents are able to choose from a menu of options to determine for themselves how the financial resources are applied. Because “downtown is everyone’s neighborhood,” a special program has also been established to enhance downtown as a business, cultural, and residential area. D-5 COMMUNITY PROFILE Key Statistics City Government Tucson is the county seat for Pima County. Pima County is the second largest in population in Arizona. By charter from the State of Arizona, the City of Tucson is governed by a Mayor and Council. Council members are nominated by each of the six wards, but are elected in citywide elections. The Mayor is nominated and elected citywide. The Mayor and Council set policy and appoint a city manager to provide the general supervision and direction for city government operations. Demographics Tucson is growing: 45th largest city in 1980, 34th largest in 1990, and the 30th largest in 2000. Population 1990 2000 2001 2002 2003 2004* Land Area 1990 1996 1997 1998 1999 2000 2001 2002 2003* Tucson 405,390 486,699 498,305 507,085 514,350 530,361 158.30 191.88 193.99 194.15 194.36 196.32 223.36 225.99 226.09 Pima County 666,880 847,600 870,610 890,545 911,200 933,600 square miles square miles square miles square miles square miles square miles square miles square miles square miles Racial/Ethnic Composition, 2000 White, Non-Hispanic 54.2% Hispanic 35.7% Black 4.1% Native American 1.6% Asian/Pacific Islander 2.5% Other 1.9% Land Use, 1990 Undeveloped Residential Commercial Government Industrial Open Space Agricultural Other Median Age 1970 1980 1990 2000 38.72% 30.70% 5.83% 4.48% 4.11% 4.02% 1.04% 11.10% 25.7 years 28.3 years 30.8 years 32.1 years *Projected figures from the City of Tucson Comprehensive Planning Task Force assuming normal annexation rates. D-6 Economy For the next five years, Tucson is projected to be the 13th most rapidly growing metropolitan area in the United States for employment. Major Employers - Southern Arizona, 2002* (Based on number of full-time equivalent positions) U.S. Army Fort Huachuca University of Arizona Raytheon Systems Company Davis-Monthan Air Force Base State of Arizona Tucson Unified School District Pima County City of Tucson Wal-Mart Tohono O’Odham Nation Phelps Dodge Mining Company Carondelet Health Network University Medical Center Tucson Medical Center (TMC) HealthCare Pima Community College Basha's, Inc. Sunnyside Unified School District Total Employment (Pima County) 1990 1999 2000 2001 2002 2003 321,900 429,332 447,106 450,137 433,550 445,570 11,580 11,335 10,100 9,947 9,732 8,234 7,135 6,168** 4,000 3,375 3,348 2,905 2,566 2,436 2,274 2,250 2,070 Unemployment Rates (Pima County) 1990 1999 2000 2001 2002 2003 4.6% 2.9% 2.8% 3.2% 4.6% 4.2% Commercial 238 302 236 140 191 Industrial 34 7 17 8 17 Annual Rate of Earnings (Per worker in current dollars) 1990 $20,015 1998 $26,311 1999 $27,453 2000 $29,439 2001 $30,570 2002 $31,628 Building Permits Issued Residential 1998 2,359 1999 2,740 2000 2,689 2001 2,712 2002 2,719 *Source: “Star/Two/Hundred,” The Arizona Daily Star, March 9, 2003. **The City of Tucson’s Fiscal Year 2004 Adopted Budget includes 5,757.96 fulltime equivalent positions. D-7 City Services The City of Tucson is committed to providing appropriate and equitable levels of service to all of its citizens. Some examples are listed below. Neighborhood Resources Parks (District, Neighborhood, School, Regional, and Open Space) Recreation Centers Neighborhood/Senior Centers Regional Centers After-School Program Sites Senior Citizen Program Sites Municipal Swimming Pools Municipal Golf Courses Tennis Court Sites Playfields Libraries Bookmobiles Solid Waste Management Tons of Waste Collected Tons of Material Recycled Number of Christmas Trees Mulched or Composted Transportation Number of Street Miles Maintained Miles of Bikeways Miles of Drainageway Number of Street Lights Annual Miles of Fixed-Route Bus Service Annual Miles of Paratransit Service Traffic Signals Tucson Water Miles of Water Lines Number of Water Connections Million of gallons of potable water storage capacity Billion of gallons of potable water delivered annually Public Safety Number of Authorized Commissioned Law Enforcement Personnel Average Police Emergency Response Time (in minutes) Average Police Response Time for All Emergency, Critical, Urgent, and General Response Calls (in minutes) Number of Commissioned Fire Personnel Annual Number of Structural Fire Runs Annual Number of Other Fire Runs Number of Paramedics Annual Number of Paramedic Runs D-8 127 7 8 2 34 13 26 5 18 195 23 2 366,000 35,000 30,600 1,812 350 1,141 17,592 7,972,000 2,727,240 455 4,300 205,377 287 36 995.5 4.08 32.05 526 541 34,935 108 31,576 BENCHMARKING PROJECT In recent years, the City of Tucson has used performance goals and project management to increase its accountability and assess effectiveness. Another way to measure municipal performance is to benchmark with other cities. This is commonly done in the private sector, particularly in health care and education, to compare effectiveness of organizations in the same business. For example, universities are often ranked on the quality of their freshman classes and how well students do over their four years. As undergraduates, measures such as Scholastic Aptitude Test/American College Test scores, faculty to student ratios, educational expenses per student, graduation rates, and alumni giving rates are widely used. Municipalities are just beginning to use the benchmarking technique. Included in this section are benchmarks comparing the City of Tucson’s metropolitan area with ten other metropolitan areas (see map on page D-10). These metropolitan areas, some larger and some smaller than Tucson, were chosen because of their western geography and governance, their ethnic distribution and economic variety, and their cultural and historical traditions—a combination similar enough to allow the comparison of some urban elements, yet sufficiently disparate to allow the contrast of others. The other metropolitan areas used are Albuquerque, Austin, Colorado Springs, Denver, El Paso, Las Vegas, Phoenix-Mesa, Salt Lake City, San Antonio, and San Diego. The Tucson metro area was compared with these other areas to determine how it compares economically and demographically. The benchmarks included in this section, comprised of ten economic benchmarks and six demographic benchmarks, are listed below and displayed in a series of graphs on the pages that follow. Economic Benchmarks • Metro Area 2000 Average Annual Wage, page D-11 • Metro Area 1999 Wage and Salary Employment, Number of Jobs Per 1,000 Population, page D-11 • Metro Area 2000 Population Below Poverty Level, page D-12 • Metro Area 2001 Cost of Living Index (adjusted for Tucson’s cost of living), page D-12 • Metro Area 2001 Cost of Groceries Index (adjusted for Tucson’s cost of groceries), page D-13 • Metro Area 2001 Cost of Housing Index (adjusted for Tucson’s cost of housing), page D-13 • Metro Area 2001 Cost of Transportation Index (adjusted for Tucson’s cost of transportation), page D-14 • Metro Area 2001 Cost of Health Care Index (adjusted for Tucson’s cost of health care), page D-14 • Percentage of Households That Use a Personal Computer, page D-15 • Metro Area 1990 Mean Travel Time to Work, In Minutes, page D-15 Demographic Benchmarks • Percent of 2000 Metro Population Less Than 18 Years Old, page D-16 • Percent of 2000 Metro Population Greater Than 64 Years Old, page D-16 • Number of Persons Per Household, page D-17 • 2000 Infant Death Rate Per 1,000 Population, page D-17 • High School Diploma, Percent of Population 25 Years Old and Older, page D-18 • Bachelor Degree, Percent of Population 25 Years Old and Older, page D-18 D-9 Benchmark Metropolitan Cities and 2000 Populations • Salt Lake City 1,333,914 Denver 2,581,506 • Colorado • Springs Las Vegas 1,563,282 • 516,929 Albuquerque 712,738 • San Diego 2,813,833 • Phoenix 3,251,876 • Tucson 843,746 « El Paso 679,672 • ! Austin 1,249,763 • San Antonio 1,592,383 • D-10 ECONOMIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson METRO AREA 2000 AVERAGE ANNUAL WAGE Denver $41,413 Austin $41,012 $37,516 San Diego Phoenix $34,915 Colorado Springs $33,035 Las Vegas $31,663 $30,960 Salt Lake City $30,397 Albuquerque San Antonio $29,678 $29,204 *** TUCSON *** $25,067 El Paso $0 $10,000 $20,000 $30,000 $40,000 $50,000 Source: Bureau of Labor Statistics, 2001 METRO AREA 1999 WAGE AND SALARY EMPLOYMENT Number of Jobs Per 1,000 Population Denver 587 566 Salt Lake City Austin 557 535 Las Vegas Albuquerque 532 Colorado Springs 528 Phoenix-Mesa 514 San Antonio 487 San Diego 457 *** TUCSON *** 425 El Paso 380 300 350 400 450 500 Source: U. S. Bureau of Commerce, Bureau of Economic Analysis, May 1999 D-11 550 600 650 ECONOMIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson METRO AREA 2000 POPULATION BELOW POVERTY LEVEL Salt Lake City 8.9% Denver 9.0% 9.5% Colorado Springs Austin 11.1% Las Vegas 11.8% Phoenix 13.1% San Diego 14.2% Albuquerque 14.7% *** TUCSON *** 16.2% San Antonio 17.9% El Paso 27.8% 0% 5% 10% 15% 20% 25% 30% Source: City County Data Book, 2001 METRO AREA 2001 COST OF LIVING INDEX Tucson = 100 San Antonio 91.2 Austin 95.0 El Paso 96.4 *** TUCSON *** 100.0 Salt Lake City 101.5 Colorado Springs 101.8 Phoenix 102.8 Albuquerque 104.8 Las Vegas 109.1 Denver 110.7 San Diego 130.0 0 20 40 60 80 100 Source: American Chamber of Commerce Research Association, 3rd Quarter 2000 Source: American Chamber of Commerce Resource Association, 3rd Quarter 2001 D-12 120 140 ECONOMIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson METRO AREA 2001 COST OF GROCERIES INDEX Tucson = 100 Austin 81.0 San Antonio 83.0 Phoenix 98.6 99.6 Albuquerque Colorado Springs 100.0 *** TUCSON *** 100.0 El Paso 102.4 Salt Lake City 105.5 Denver 109.3 Las Vegas 115.0 San Diego 124.8 0 20 40 of Commerce60Research Association, 80 100 2000 Source: American Chamber 3rd Quarter 120 140 Source: American Chamber of Commerce Resource Association, 3rd Quarter 2001 METRO AREA 2001 COST OF HOUSING INDEX Tucson = 100 El Paso 85.2 San Antonio 91.5 Austin 92.5 99.3 Las Vegas *** TUCSON *** 100.0 Phoenix 104.1 Salt Lake City 106.0 Colorado Springs 114.0 Albuquerque 116.7 Denver 131.7 162.8 San Diego 0 Source: American 20 40 60 80 100 140 Chamber of Commerce Research Association, 3rd 120 Quarter 2000 Source: American Chamber of Commerce Research Association, 3rd Quarter 2001 D-13 160 180 ECONOMIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson METRO AREA 2001 COST OF TRANSPORTATION INDEX Tucson = 100 San Antonio 86.7 Albuquerque 90.3 Austin 94.4 Colorado Springs 96.0 Salt Lake City 98.0 El Paso 98.8 *** TUCSON *** 100.0 Phoenix 106.2 Denver 106.3 Las Vegas 116.3 San Diego 116.5 0 20 40 60 80 100 Source: American Chamber of Commerce Research Association, 3rd Quarter 2000 Source: American Chamber of Commerce Research Association, 3rd Quarter 2001 120 140 METRO AREA 2001 COST OF HEALTH CARE INDEX Tucson = 100 75.9 San Antonio El Paso 84.6 Austin 85.1 Salt Lake City 87.8 *** TUCSON *** 100.0 101.0 Albuquerque 106.1 Colorado Springs Phoenix 110.1 Denver 118.3 119.8 San Diego 121.8 Las Vegas 0 20 40 60 80 100 Source: American Chamber of Commerce Research Association, 3rd Quarter 2001 D-14 120 140 ECONOMIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson PERCENTAGE OF HOUSEHOLDS THAT USE A PERSONAL COMPUTER Austin 64.7% Denver 63.3% Salt Lake City 63.0% San Diego 61.5% Colorado Springs 60.1% *** TUCSON *** 58.2% Phoenix 57.0% Las Vegas 56.2% Albuquerque 54.6% San Antonio 53.8% El Paso 53.5% 0% 10% 20% 30% Source: The Lifestyle Market Analyst, 1999 Source: The Life Style Market Analyst, 2001 40% 50% 60% 70% METRO AREA 1990 MEAN TRAVEL TIME TO WORK In Minutes Albuquerque 19.3 Austin 19.4 Colorado Springs 19.9 El Paso 20.0 Salt Lake City 20.1 Las Vegas 20.3 *** TUCSON *** 20.6 San Antonio 21.5 San Diego 21.9 Phoenix/Mesa 22.9 Denver 23.5 19 20 21 Source: U. S. Census 1990 D-15 22 23 24 DEMOGRAPHIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson PERCENT OF 2000 METRO POPULATION LESS THAN 18 YEARS OLD San Diego 25.7% *** TUCSON *** 26.1% Denver 26.2% Albuquerque 26.4% Las Vegas 26.6% Austin 26.7% Colorado Springs 27.4% Phoenix 27.9% San Antonio 29.2% El Paso 32.4% Salt Lake City 32.5% 0% 5% 10% 15% 20% 25% 30% 35% Source: City County Data Book, 2001 PERCENT OF 2000 METRO POPULATION GREATER THAN 64 YEARS OLD Austin 7.5% Salt Lake City 8.5% Colorado Springs 8.8% El Paso 9.5% Denver 9.6% San Antonio 10.9% 11.3% Albuquerque San Diego 11.5% 12.2% Phoenix Las Vegas 12.5% 14.4% *** TUCSON *** 0% 2% 4% 6% 8% Source: City County Data Book, 2001 D-16 10% 12% 14% 16% DEMOGRAPHIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson NUMBER OF PERSONS PER HOUSEHOLD 2.17 Denver Austin 2.33 Salt Lake City 2.33 2.42 *** TUCSON *** 2.46 Albuquerque Colorado Springs 2.49 2.55 Las Vegas San Diego 2.61 Phoenix 2.62 2.65 Mesa San Antonio 2.80 El Paso 3.17 2.00 2.30 Source: U. S. Census, 1990 2.60 2.90 3.20 3.50 2000 INFANT DEATH RATE PER 1,000 POPULATION El Paso 5.1 San Diego 5.4 5.7 Austin Salt Lake City 6.1 Albuquerque 6.2 *** TUCSON *** 6.4 Denver 6.6 Las Vegas 6.7 San Antonio 7.3 Phoenix 7.5 Colorado Springs 7.6 0 1 2 3 4 Source: City County Data Book, 2001 D-17 5 6 7 8 DEMOGRAPHIC BENCHMARKS Selected Regional Cities Benchmarked With Tucson HIGH SCHOOL DIPLOMA Percent of Population 25 Years Old and Older Mesa 84.8% Albuquerque 83.9% Salt Lake City 83.0% Austin 82.3% San Diego 82.3% Denver 79.2% Phoenix 78.7% *** TUCSON *** 78.6% 76.3% Las Vegas San Antonio 69.1% El Paso 65.3% Colorado Springs 57.8% 55% 60% 65% Source: U. S. Census, 1990 70% 75% 80% 85% 90% BACHELOR DEGREE Percent of Population 25 Years Old and Older Austin 34.4% Salt Lake City 30.4% 29.8% San Diego Denver 29.0% Albuquerque 28.4% 27.5% Colorado Springs Mesa 21.0% *** TUCSON *** 20.7% 19.9% Phoenix San Antonio 17.8% 16.2% El Paso Las Vegas 13.4% 10% 15% 20% 25% Source: U. S. Census, 1990 D-18 30% 35% 40% CITY OF TUCSON Components of the Total Financial Plan Fiscal Year 2004 Total Budget $ 957,793,020 Operating Budget $ 696,104,220 Capital Budget $ 261,688,800 Mayor and Council $ 2,745,000 Public Defender $ 2,333,440 Budget and Research $ 2,023,890 City Court $ 250,000 City Manager $ 2,040,770 Development Services $ 8,246,110 Finance $ 7,937,630 Community Services $ 2,290,100 City Clerk $ 4,694,190 Comprehensive Planning Task Force $ 3,972,240 Human Resources $ 2,523,140 Fire $ 9,189,500 City Attorney $ 7,082,050 Solid Waste Management $ 24,714,780 Information Technology $ 11,066,070 Library $ 2,464,000 City Court $ 9,753,570 Transportation $ 91,434,360 Operations $ 17,937,140 Neighborhood Resources $ 10,780,000 Community Services $ 66,653,980 Tucson Water $ 111,343,320 Procurement $ 3,190,160 Parks and Recreation $ 31,345,800 Fire $ 47,943,140 Environmental Management $ 2,331,410 Equal Opportunity Office $ 583,420 Tucson City Golf $ 2,048,900 Library $ 19,783,980 Zoning Examiner $ 167,500 Outside Agencies $ 7,553,340 Police $ 3,971,200 Neighborhood Resources $ 2,401,930 Tucson Convention Center $ 10,880,110 General Expense $ 1,742,820 Solid Waste Management $ 11,833,300 Parks and Recreation $ 38,549,650 Office of Economic Development $ 1,748,100 Debt Service $ 52,751,470 Transportation $ 102,127,500 Tucson City Golf $ 10,060,630 Intergovernmental Relations $ 538,190 Contingency Fund $ 46,970 Tucson Water $ 52,029,000 Police $ 118,688,740 Tucson-Mexico Trade Office $ 485,630 Environmental Management $ 8,730,800 Independent Police Auditor $ 155,350 Operations $ 5,928,400 General Expense $ 18,700,300 E-1 REVENUES ADOPTED FISCAL YEAR 2004 Brought Forward 4% Bond Proceeds 11% Other Federal Revenues 4% Business Privilege Tax 18% Water 14% Non-Recurring Federal Grants 6% Charges for Current Services 5% Public Housing 5% State Revenue Sharing 5% Miscellaneous 12% Grants and Shared Taxes 16% Annual Budget Total Funds Available Percent of Total Other Local Taxes 2% Licenses and Permits 2% Certificates of Participation 2% Secondary Property Tax 2% Fines, Forfeitures, and Penalties 1% Use of Money and Property 1% Non-Revenue Receipts 1% Golf 1% Primary Property Taxes <1% Estimated Revenues Operating Capital Budget Budget Primary Property Tax Secondary Property Tax Business Privilege Tax Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Public Housing Other Federal Revenues $ 4,904,190 23,055,320 168,200,000 23,776,380 16,161,260 10,458,200 5,505,200 148,516,360 43,388,700 50,792,960 8,731,980 50,309,940 40,685,030 <1% $ 2% 18% 2% 2% 1% 1% 16% 5% 5% 1% 5% 4% 4,904,190 23,055,320 163,805,000 23,776,380 16,161,260 10,458,200 5,505,200 129,088,260 43,388,700 50,792,960 7,731,980 48,043,040 37,841,830 $ -0-04,395,000 -0-0-0-019,428,100 -0-01,000,000 2,266,900 2,843,200 Total Recurring Revenues (Without Utilities) $ 594,485,520 62% $ 564,552,320 $ 29,933,200 12,109,530 132,166,320 1% 14% 10,060,630 111,343,320 738,761,370 77% $ 685,956,270 54,549,400 101,852,000 23,723,800 38,906,450 6% 11% 2% 4% Golf Water Total Recurring Revenues $ Non-Recurring Federal Grants Bond Proceeds Certificates of Participation Brought Forward Total Funds Available $ 957,793,020 E-2 100% $ 2,048,900 20,823,000 $ -0-0100,000 10,047,950 696,104,220 52,805,100 54,549,400 101,852,000 23,623,800 28,858,500 $ 261,688,800 APPROPRIATIONS ADOPTED FISCAL YEAR 2004 Neighborhood Services 40% Elected and Official 2% Non-Departmental 8% Support Services 5% Environment and Development 44% Strategic Initiatives 1% Outside Agencies <1% General Expense 2% Debt Service 6% Contingency 0% Annual Budget Total Purpose Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental Outside Agencies General Expense Debt Service Contingency Total All Organizations $ 16,562,010 378,663,910 416,930,320 13,652,030 51,189,850 7,553,340 20,443,120 52,751,470 46,970 $ 957,793,020 E-3 Percent of Total 2% $ 40% 44% 1% 5% <1% 2% 6% 0% 100% $ Budgeted Expenditures Operating Capital Budget Budget 16,562,010 316,324,410 242,209,720 13,652,030 45,261,450 $ 7,553,340 1,742,820 52,751,470 46,970 696,104,220 -062,339,500 174,720,600 -05,928,400 -018,700,300 -0-0- $ 261,688,800 COMPARISON OF GENERAL PURPOSE REVENUES AND TOTAL REVENUES ($000s) $1,000,000 $957,793 $935,540 $900,000 $774,183 $800,000 $742,723 $706,496 $700,000 $652,265 $600,000 $500,000 $400,000 $392,262 $378,089 $370,924 $362,972 $388,226 $321,610 $300,000 $200,000 $100,000 $-01999 Actual 2000 Actual 2001 Actual 2002 Actual General Purpose Revenues Total Revenues E-4 2003 Adopted 2004 Adopted REVENUES AND APPROPRIATIONS SUMMARY FISCAL YEAR 2004 ADOPTED CLASSIFICATION FUNDS AVAILABLE Recurring Revenues Primary Property Tax Secondary Property Tax Business Privilege Tax Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Public Housing Other Federal Revenues Total Recurring Revenues (Without Utilities) 4,904,190 23,055,320 168,200,000 23,776,380 16,161,260 10,458,200 5,505,200 148,516,360 43,388,700 50,792,960 8,731,980 50,309,940 40,685,030 $ 4,904,190 -0168,200,000 23,776,380 15,118,760 9,795,200 1,928,060 61,793,000 43,388,700 49,188,680 1,161,980 -0-0- $ 4,904,190 -0163,805,000 23,776,380 15,118,760 9,795,200 1,928,060 61,793,000 43,388,700 49,188,680 1,161,980 -0-0- $ -0-04,395,000 -0-0-0-0-0-0-0-0-0-0- $ -023,055,320 -0-01,042,500 663,000 3,577,140 86,723,360 -01,604,280 7,570,000 50,309,940 40,685,030 $ -023,055,320 -0-01,042,500 663,000 3,577,140 67,295,260 -01,604,280 6,570,000 48,043,040 37,841,830 $ -0-0-0-0-0-0-019,428,100 -0-01,000,000 2,266,900 2,843,200 $ 594,485,520 $ 379,254,950 $ 374,859,950 $ 4,395,000 $ 215,230,570 $ 189,692,370 $ 25,538,200 12,109,530 132,166,320 $ Non-Recurring Federal Grants Bond Proceeds Certificates of Participation Brought Forward TOTAL FUNDS AVAILABLE RESTRICTED FUNDS TOTAL OPERATING CAPITAL RESTRICTED BUDGET BUDGET $ Golf Water Total Recurring Revenues GENERAL PURPOSE FUNDS TOTAL OPERATING CAPITAL RECURRING BUDGET BUDGET TOTAL BUDGET 738,761,370 -0-0$ 54,549,400 101,852,000 23,723,800 38,906,450 379,254,950 -0-0$ -0-0-08,971,470 374,859,950 -0-0$ -0-0-05,635,270 4,395,000 12,109,530 132,166,320 $ -0-0-03,336,200 359,506,420 10,060,630 111,343,320 $ 54,549,400 101,852,000 23,723,800 29,934,980 311,096,320 2,048,900 20,823,000 $ -0-0100,000 4,412,680 48,410,100 54,549,400 101,852,000 23,623,800 25,522,300 $ 957,793,020 $ 388,226,420 $ 380,495,220 $ 7,731,200 $ 569,566,600 $ 315,609,000 $ 253,957,600 $ 16,562,010 378,663,910 416,930,320 13,652,030 51,189,850 80,794,900 $ 15,827,130 220,000,580 84,512,850 12,234,980 42,479,190 13,171,690 $ 15,827,130 216,300,580 82,262,850 12,234,980 41,547,990 12,321,690 $ -03,700,000 2,250,000 -0931,200 850,000 $ 734,880 158,663,330 332,417,470 1,417,050 8,710,660 67,623,210 $ 734,880 100,023,830 159,946,870 1,417,050 3,713,460 49,772,910 $ -058,639,500 172,470,600 -04,997,200 17,850,300 TOTAL ALL ORGANIZATIONS $ 957,793,020 $ 388,226,420 $ 380,495,220 $ 7,731,200 $ 569,566,600 $ 315,609,000 $ 253,957,600 APPROPRIATIONS Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental E-5 REVENUES AND EXPENDITURES COMPARISONS Actual FY 2002 CLASSIFICATION Funds Available Primary Property Tax Secondary Property Tax Business Privilege Tax Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Public Housing Other Federal Revenues Golf Water Non-Recurring* Brought Forward Total Funds Available Expenditures Elected and Official Neighborhood Services Environment and Development Strategic Initiatives Support Services Non-Departmental Total All Organizations $ $ $ $ 3,494,674 20,817,632 158,139,465 16,879,672 16,099,202 7,950,845 4,697,171 133,727,216 50,933,526 41,060,374 4,131,256 40,320,542 20,325,159 9,851,778 111,111,638 83,689,146 50,953,251 774,182,547 16,381,278 286,708,986 303,416,441 8,567,135 44,125,652 59,739,300 718,938,792 Adopted FY 2003 $ $ $ $ 4,612,960 20,756,360 166,328,100 17,839,710 15,963,740 7,963,120 7,618,830 141,988,760 52,388,880 46,956,860 10,581,690 51,303,690 27,479,700 10,712,220 117,279,000 185,368,600 50,397,650 935,539,870 14,908,900 360,752,590 407,623,890 14,890,120 55,325,650 82,038,720 935,539,870 Estimated FY 2003 $ $ $ $ 4,601,930 20,674,970 161,776,400 16,992,400 15,963,740 8,363,120 4,974,140 131,745,300 51,808,070 43,599,510 10,581,690 55,890,510 28,065,340 9,820,800 113,387,860 200,345,670 52,938,760 931,530,210 13,910,880 344,961,200 416,910,320 13,981,540 48,824,650 53,060,830 891,649,420 Approved FY 2004 $ $ $ $ 3,864,260 22,907,710 174,644,500 18,526,990 16,461,710 8,347,600 7,764,710 149,668,500 54,601,440 49,638,520 10,992,480 51,488,040 25,939,630 10,710,220 125,666,000 131,706,000 6,953,830 869,882,140 $ 17,522,110 361,138,680 355,269,140 14,784,880 56,565,910 74,660,390 879,941,110 $ *Note: This revenue category consists of non-recurring federal funds, bond proceeds, and certificates of participation. E-6 Adopted FY 2004 $ $ 4,904,190 23,055,320 168,200,000 23,776,380 16,161,260 10,458,200 5,505,200 148,516,360 43,388,700 50,792,960 8,731,980 50,309,940 40,685,030 12,109,530 132,166,320 180,125,200 38,906,450 957,793,020 16,562,010 378,663,910 416,930,320 13,652,030 51,189,850 80,794,900 957,793,020 SUMMARY OF EXPENDITURES BY DEPARTMENT Actual FY 2002 Elected and Official Mayor and Council City Manager City Clerk City Attorney Sub-Total Neighborhood Services City Court Community Services Fire Library Neighborhood Resources Parks and Recreation Tucson City Golf Police Independent Police Auditor Office of the Public Defender Sub-Total Environment and Development Development Services Comprehensive Planning Task Force Solid Waste Management Transportation Tucson Water Environmental Management Historic Preservation Office Zoning Examiner Sub-Total Strategic Initiatives Tucson Convention Center Office of Economic Development Intergovernmental Relations Tucson-Mexico Trade Office Sub-Total $ 2,418,358 3,862,775 3,585,540 6,514,605 Adopted FY 2003 $ 2,731,960 2,194,810 2,681,980 7,300,150 Estimated FY 2003 $ 2,731,960 2,122,060 2,400,750 6,656,110 Approved FY 2004 $ 2,862,120 2,279,200 4,767,010 7,613,780 Adopted FY 2004 $ 2,745,000 2,040,770 4,694,190 7,082,050 16,381,278 14,908,900 13,910,880 17,522,110 16,562,010 9,669,255 54,279,074 44,027,475 19,592,017 3,704,755 40,423,054 9,851,778 102,983,213 143,053 2,035,312 9,971,740 70,954,330 55,674,410 22,004,030 7,974,770 65,806,940 10,712,220 115,244,090 147,440 2,262,620 9,314,360 76,273,920 55,382,830 21,533,050 8,018,600 47,602,800 9,820,800 114,696,550 146,060 2,172,230 10,275,780 70,354,020 56,441,740 22,133,100 8,242,710 55,503,150 10,710,220 124,962,200 154,440 2,361,320 10,003,570 68,944,080 57,132,640 22,247,980 13,181,930 69,895,450 12,109,530 122,659,940 155,350 2,333,440 286,708,986 360,752,590 344,961,200 361,138,680 378,663,910 6,338,472 3,162,743 29,674,746 126,474,991 132,500,269 4,914,111 202,320 148,789 7,950,940 2,993,180 32,586,020 191,331,190 161,544,000 10,700,060 360,770 157,730 7,557,510 3,596,150 31,953,290 202,826,580 157,959,860 12,861,810 -0155,120 8,277,560 2,970,680 30,206,630 149,084,420 157,658,000 6,562,370 344,410 165,070 8,246,110 3,972,240 36,548,080 193,561,860 163,372,320 11,062,210 -0167,500 303,416,441 407,623,890 416,910,320 355,269,140 416,930,320 5,967,587 1,593,101 523,343 483,104 11,595,290 2,179,910 534,090 580,830 10,957,410 1,954,680 507,800 561,650 11,528,230 2,115,620 541,910 599,120 10,880,110 1,748,100 538,190 485,630 8,567,135 14,890,120 13,981,540 14,784,880 13,652,030 E-7 Summary of Expenditures by Department (Continued) Actual FY 2002 Support Services Budget and Research Finance Human Resources Information Technology Operations Procurement Community Relations Equal Opportunity Office Grants Office Sub-Total Non-Departmental Outside Agencies General Expense Debt Service Contingency Fund Sub-Total Total All Departments $ 2,262,545 6,956,452 2,811,607 9,409,078 17,207,882 3,237,690 1,395,539 689,843 155,016 Adopted FY 2003 $ 2,137,100 7,321,740 2,977,290 11,830,050 26,836,700 3,520,360 -0702,410 -0- Estimated FY 2003 $ 2,071,940 7,126,680 2,959,500 11,149,520 21,316,090 3,499,090 -0701,830 -0- $ Approved FY 2004 Adopted FY 2004 2,039,810 7,596,200 3,028,400 11,491,580 28,210,410 3,486,340 -0713,170 -0- 2,023,890 7,937,630 2,523,140 11,066,070 23,865,540 3,190,160 -0583,420 -0- 44,125,652 55,325,650 48,824,650 56,565,910 51,189,850 7,063,845 5,720,554 46,954,901 -0- 6,751,970 23,789,050 51,296,790 200,910 6,747,580 3,687,540 42,532,540 93,170 7,005,690 11,123,200 56,356,500 175,000 7,553,340 20,443,120 52,751,470 46,970 59,739,300 82,038,720 53,060,830 74,660,390 80,794,900 $ 718,938,792 $ 935,539,870 $ 891,649,420 $ 879,941,110 $ 957,793,020 SUMMARY BY CHARACTER OF EXPENDITURES Actual FY 2002 Personal Services Services Commodities Equipment Debt Service Other Inter-Activity Transfers Operating Total Capital Improvements Total All Expenditures Adopted FY 2003 Estimated FY 2003 Approved FY 2004 Adopted FY 2004 $ 298,656,811 $ 324,236,770 $ 317,950,340 $ 341,519,970 $ 329,272,780 174,184,665 194,953,780 191,810,840 195,922,110 192,636,720 51,174,912 53,575,410 57,124,350 52,846,570 58,105,310 16,426,913 17,194,150 17,965,060 16,690,910 23,333,630 74,601,368 80,023,330 71,543,950 87,163,560 83,693,560 46,539,491 46,136,220 27,608,680 48,331,850 33,766,490 (62,518,845) (39,207,190) (27,050,340) (40,752,860) (24,704,270) 599,065,315 119,873,477 676,912,470 258,627,400 656,952,880 234,696,540 701,722,110 178,219,000 696,104,220 261,688,800 $ 718,938,792 $ 935,539,870 $ 891,649,420 $ 879,941,110 $ 957,793,020 E-8 REVENUE DETAIL All Funds Summary Actual FY 2002 FINANCIAL SUMMARY Adopted FY 2003 Estimated FY 2003 Approved FY 2004 Adopted FY 2004 GENERAL FUND SPECIAL REVENUE FUNDS ENTERPRISE FUNDS DEBT SERVICE FUNDS CAPITAL PROJECTS FUNDS $ 312,184,231 $ 338,248,240 $ 328,486,910 $ 330,730,350 $ 335,962,700 252,574,174 320,469,580 325,106,360 290,115,310 336,352,600 120,963,416 127,991,220 123,208,660 136,376,220 144,275,850 36,365,913 36,791,630 35,662,170 39,202,260 39,349,870 52,094,813 112,039,200 119,066,110 73,458,000 101,852,000 TOTAL ALL FUNDS $ 774,182,547 $ 935,539,870 $ 931,530,210 $ 869,882,140 $ 957,793,020 General Fund Primary Property Tax Business Privilege Tax Other Local Taxes Licenses and Permits Fines, Forfeitures, and Penalties Use of Money and Property Grants and Shared Taxes State Revenue Sharing Charges for Current Services Non-Revenue Receipts Certificates of Participation Brought Forward Use of Fund Balance Total General Fund Special Revenue Funds Business Privilege Tax Licenses and Permits Fines and Forfeitures Use of Money and Property Grants and Shared Taxes Charges for Current Services Public Housing Local Revenue Federal Grants Non-Revenue Receipts Certificates of Participation Brought Forward Use of Fund Balance Total Special Revenue Funds $ 3,494,674 $ 4,612,960 $ 101,410,652 104,096,980 16,879,672 17,839,710 16,087,702 15,953,740 7,950,845 7,963,120 3,217,779 6,065,670 56,728,152 60,542,620 50,933,526 52,388,880 16,828,705 20,220,760 3,599,660 10,581,690 10,565,590 15,802,900 10,231,394 6,061,710 14,255,880 16,117,500 4,601,930 $ 3,864,260 $ 4,904,190 99,953,840 111,708,430 110,207,030 16,992,400 18,526,990 23,776,380 15,953,740 16,451,710 15,803,260 8,363,120 8,347,600 9,795,200 3,420,980 6,161,850 2,732,280 59,435,880 62,963,620 61,663,830 51,808,070 54,601,440 43,388,700 18,783,150 22,014,150 20,915,920 10,581,690 10,992,480 8,731,980 15,802,900 12,222,000 23,723,800 6,061,710 517,700 4,899,690 16,727,500 2,358,120 5,420,440 $ 312,184,231 $ 338,248,240 $ 328,486,910 $ 330,730,350 $ 335,962,700 $ 56,728,813 $ 62,231,120 $ 61,822,560 $ 62,936,070 $ 57,992,970 11,500 10,000 10,000 10,000 358,000 -0-0-0-0663,000 1,479,392 1,553,160 1,553,160 1,602,860 2,772,920 61,450,783 65,410,870 57,322,220 70,410,330 70,557,980 24,231,669 26,736,100 24,816,360 27,624,370 29,877,040 2,027,660 2,027,660 2,027,660 2,027,660 2,027,660 79,325,284 134,282,230 147,404,850 121,426,010 143,516,710 531,596 -0-0-0-0321,500 -0-0-0-014,817,897 17,132,400 17,062,400 3,752,310 18,421,400 11,648,080 11,086,040 13,087,150 325,700 10,164,920 $ 252,574,174 $ 320,469,580 $ 325,106,360 $ 290,115,310 $ 336,352,600 E-9 All Funds Summary (Continued) Actual FY 2002 FINANCIAL SUMMARY Enterprise Funds Golf Course Water Utility Total Enterprise Funds Debt Service Funds Secondary Property Tax State Shared Taxes Total Debt Service Funds Capital Projects Funds Bond Funds Proceeds Total Capital Projects Funds $ Adopted FY 2003 Estimated FY 2003 Approved FY 2004 Adopted FY 2004 9,851,778 $ 10,712,220 $ 9,820,800 $ 10,710,220 $ 12,109,530 111,111,638 117,279,000 113,387,860 125,666,000 132,166,320 $ 120,963,416 $ 127,991,220 $ 123,208,660 $ 136,376,220 $ 144,275,850 $ 20,817,632 $ 20,756,360 $ 20,674,970 $ 22,907,710 $ 23,055,320 15,548,281 16,035,270 14,987,200 16,294,550 16,294,550 $ 36,365,913 $ 36,791,630 $ 35,662,170 $ 39,202,260 $ 39,349,870 $ 52,094,813 $ 112,039,200 $ 119,066,110 $ 73,458,000 $ 101,852,000 $ 52,094,813 $ 112,039,200 $ 119,066,110 $ 73,458,000 $ 101,852,000 E-10 GENERAL FUND The General Fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in other funds. These services include Elected and Official, Neighborhood Services, Environment and Development, Strategic Initiatives, Support Services, and NonDepartmental program categories. Actual FY 2002 FINANCIAL SUMMARY Adopted FY 2003 Business Privilege Tax $ 101,410,652 $ 104,096,980 $ 99,953,840 $ 111,708,430 $ 110,207,030 Total Licenses and Permits Sign Permits Parking Meter Collections Hooded Meter Fees Vehicle Permits Developer In Lieu Fees Cable Television Licenses MCI Settlement Telecommunications Applications Fee Telecommunications Licenses and Franchise Fees Utility Franchise Fees Total Fines, Forfeitures, and Penalties Civil Traffic Diversion Program Prosecutor's Diversion Program Civil Traffic Violations Criminal Traffic Violations Non-Moving Traffic Violations Criminal Misdemeanor Driving Under the Influence Filing Fees-Domestic Violence Probation Fees City Court Miscellaneous Time Payment Fees Sub-Total 7,853,433 $ 4,562,251 1,777,182 1,941,135 745,671 -0- 7,499,440 $ 5,486,000 2,022,800 2,100,170 731,300 -0- 4,601,930 $ 7,795,600 $ 4,643,500 1,812,700 1,980,000 760,600 -0- 3,864,260 $ Adopted FY 2004 $ $ 4,612,960 $ Approved FY 2004 Primary Property Tax Other Local Taxes Public Utility Tax Transient Occupancy Tax Room Tax Occupational Taxes Liquor Taxes Use Tax 3,494,674 $ Estimated FY 2003 7,799,420 $ 5,707,440 2,103,710 2,163,180 753,240 -0- 4,904,190 7,951,500 7,104,600 1,849,000 2,019,600 851,680 4,000,000 $ 16,879,672 $ 17,839,710 $ 16,992,400 $ 18,526,990 $ 23,776,380 $ 326,742 $ 701,835 29,112 50,973 221,376 2,956,561 -07,500 263,680 $ 563,410 32,960 50,985 -03,568,535 231,750 7,730 263,680 $ 563,410 32,960 50,985 -03,568,535 231,750 7,730 271,590 $ 580,320 33,950 52,520 -03,675,580 238,700 7,970 280,000 304,720 24,260 50,700 -04,370,580 -05,000 591,604 1,106,220 1,106,220 1,139,410 437,000 11,201,999 10,128,470 10,128,470 10,451,670 10,331,000 $ 16,087,702 $ 15,953,740 $ 15,953,740 $ 16,451,710 $ 15,803,260 $ 1,816,337 $ 127,020 465,080 4,033,966 -0-063,041 42,668 263,146 244,298 184,310 1,600,000 $ 147,200 350,000 3,750,000 2,100 100 57,740 45,000 315,000 150,000 150,000 1,800,000 $ 147,200 350,000 3,950,000 2,100 100 57,740 45,000 315,000 150,000 150,000 1,650,000 $ 154,570 375,000 3,800,000 2,210 100 60,640 49,610 330,750 301,060 165,270 2,324,000 149,400 472,100 4,910,600 -0-058,300 43,100 321,000 948,900 187,800 7,239,866 6,567,140 6,967,140 6,889,210 9,415,200 E-11 General Fund (Continued) Actual FY 2002 FINANCIAL SUMMARY Other Fines/Forfeitures Parking Violations Zoning Code Violations Fire Code Violations Building Code Violations Other Fines/Forfeitures False Alarm Violations Offroad Vehicle Violations Dishonored Check $ Sub-Total Total Use of Money and Property City Parking Facilities Rentals Tenant Rent El Presidio Garage Telephone Pay Booths Residential Parking Permit Non-Residential Parking Permit Interest Earnings Total Grants and Shared Taxes Shared State Taxes Auto Lieu Taxes State Sales Tax Sub-Total State and Local Grants City Manager's Office City Attorney Grants City Court Grants Police Grants Parks and Recreation Grants Sub-Total Total State Revenue Sharing Adopted FY 2003 Estimated FY 2003 Approved FY 2004 Adopted FY 2004 541,115 $ 27,913 400 11,651 106,558 8,510 3,954 10,878 1,269,600 $ 21,000 2,100 3,000 2,100 21,000 6,300 70,880 1,269,600 $ 21,000 2,100 3,000 2,100 21,000 6,300 70,880 1,325,680 $ 22,050 2,210 3,150 2,210 22,050 6,620 74,420 332,400 21,200 500 2,500 2,400 5,000 5,000 11,000 710,979 1,395,980 1,395,980 1,458,390 380,000 $ 7,950,845 $ 7,963,120 $ 8,363,120 $ 8,347,600 $ 9,795,200 $ 804,273 $ 339,290 597,096 168,762 17,720 12,936 126,747 1,150,955 1,373,830 $ 495,360 748,750 175,440 25,800 20,020 76,470 3,150,000 874,140 $ 454,360 748,750 175,440 25,800 20,020 76,470 1,046,000 1,389,100 $ 511,210 804,280 181,050 26,630 20,660 78,920 3,150,000 41,460 708,540 804,280 -018,000 -0-01,160,000 $ 3,217,779 $ 6,065,670 $ 3,420,980 $ 6,161,850 $ 2,732,280 $ 19,057,762 $ 18,530,060 $ 18,855,000 $ 18,957,640 $ 20,193,000 37,533,053 39,483,000 38,203,960 41,457,200 38,833,000 56,590,815 58,013,060 57,058,960 60,414,840 59,026,000 3,412 67,808 11,083 14,796 40,238 -0207,810 175,000 1,756,430 390,320 -087,840 141,570 1,756,430 391,080 -0210,010 175,000 1,769,230 394,540 -0210,010 250,000 1,769,230 408,590 137,337 2,529,560 2,376,920 2,548,780 2,637,830 $ 56,728,152 $ 60,542,620 $ 59,435,880 $ 62,963,620 $ 61,663,830 $ 50,933,526 $ 52,388,880 $ 51,808,070 $ 54,601,440 $ 43,388,700 E-12 General Fund (Continued) FINANCIAL SUMMARY Charges for Current Services General Government Zoning Adjustments $ Mutual Aid Communication System Dispatch IGA Sale of Codes, Regulations, and Maps Other Sub-Total Public Safety University of Arizona Fire Services Emergency Medical Transport Police Charges Police Protection Sub-Total Development Services Charges Permit Inspection Fee Review Fees Other Sub-Total Recreation Fee Classes Facility Reservations Permits Civic Events Equipment General Recreation Programs Sports Programs Udall Center Programs Randolph Center Programs Tennis Centers Swimming Pool Admissions El Pueblo Center Programs Zoo Concessions Baseball Revenues El Rio Center Programs Quincie Douglas Center Actual FY 2002 Adopted FY 2003 231,476 $ 26,000 392,830 23,913 Estimated FY 2003 Approved FY 2004 Adopted FY 2004 491,200 $ 27,040 380,120 29,700 491,200 $ 27,040 380,120 29,700 502,850 $ 28,120 395,330 30,890 803,000 26,000 419,580 25,000 15,634 5,200 5,200 5,410 92,150 689,853 933,260 933,260 962,600 1,365,730 100,000 104,000 104,000 108,160 108,160 4,001,433 64,139 1,044 5,800,000 54,500 6,450 4,901,000 54,500 6,450 6,032,080 56,680 6,710 5,000,000 65,200 1,010 4,166,616 5,964,950 5,065,950 6,203,630 5,174,370 7,436,933 1,221,496 33,490 7,328,450 1,248,770 20,800 7,328,450 1,248,770 288,800 7,475,020 1,273,750 21,630 7,743,020 1,476,750 294,630 8,691,919 8,598,020 8,866,020 8,770,400 9,514,400 1,066,038 224,397 73,280 50,871 32,841 155,194 160,529 25,473 42,683 143,625 128,844 797,599 310,870 2,654 14,804 1,351,190 257,920 94,140 124,590 140,430 238,900 199,080 38,530 69,360 249,550 141,280 1,434,670 329,190 7,710 3,210 904,000 233,160 85,100 112,630 126,950 215,970 179,970 34,830 62,700 225,590 127,720 1,219,370 297,590 6,970 2,900 1,740,900 330,970 120,570 160,210 180,640 307,200 256,510 49,550 89,190 320,900 181,680 1,843,570 424,130 9,870 4,100 997,600 388,960 109,100 90,000 533,000 240,000 242,500 31,710 57,080 304,000 170,800 1,271,070 190,000 11,100 20,000 E-13 General Fund (Continued) Actual FY 2002 FINANCIAL SUMMARY Charges for Current Services Recreation (Continued) Clements Center Rodeo Grounds Miscellaneous $ Sub-Total Total Non-Revenue Receipts Sale of Property Real Property Vehicles Scrap Material Unclaimed Property Other Adopted FY 2003 15,365 $ 35,250 -03,280,317 19,260 $ 25,520 -04,724,530 Estimated FY 2003 17,400 $ 23,070 42,000 3,917,920 Approved FY 2004 24,650 $ 32,880 -06,077,520 Adopted FY 2004 19,500 20,000 165,000 4,861,420 $ 16,828,705 $ 20,220,760 $ 18,783,150 $ 22,014,150 $ 20,915,920 $ -0- $ 54,973 175,199 8,869 59,798 408,000 $ 71,400 17,140 28,560 32,640 408,000 $ 71,400 17,140 28,560 32,640 416,160 $ 72,830 17,480 29,130 33,290 416,160 72,830 17,480 29,130 33,290 298,839 557,740 557,740 568,890 568,890 234,793 134,373 2,273 446,083 71,400 112,200 2,040 1,047,360 71,400 112,200 2,040 1,047,360 72,830 114,440 2,080 1,861,890 72,830 114,440 2,080 597,390 817,522 1,233,000 1,233,000 2,051,240 786,740 66,797 71,400 71,400 72,830 72,830 8,776 238,877 5,100 43,450 5,100 43,450 5,200 44,320 5,200 44,320 314,450 119,950 119,950 122,350 122,350 Other General Revenues -0- 4,000,000 4,000,000 4,000,000 2,000,000 Off Duty Police Program 1,962,872 3,000,000 3,000,000 3,000,000 3,000,000 205,977 1,671,000 1,671,000 1,250,000 2,254,000 Sub-Total Recovered Expenditures Uninsured Damages Industrial Insurance Payroll Deductions Charges Other Sub-Total Sundry Income Reimbursement Court Attorney Fees Employee Fees Other Sub-Total Other Funding Sources Total $ 3,599,660 $ 10,581,690 $ 10,581,690 $ 10,992,480 $ 8,731,980 Certificates of Participation $ 10,565,590 $ 15,802,900 $ 15,802,900 $ 12,222,000 $ 23,723,800 Brought Forward $ 10,231,394 $ 6,061,710 $ 517,700 $ 4,899,690 Use of Fund Balance $ 14,255,880 $ 16,117,500 $ 16,727,500 $ 2,358,120 $ 5,420,440 Total General Fund 6,061,710 $ $ 312,184,231 $ 338,248,240 $ 328,486,910 $ 330,730,350 $ 335,962,700 E-14 General Fund (Continued) HIGHLIGHTS Primary Property Tax The city's Fiscal Year 2004 adopted revenue is $291,230 higher than the Fiscal Year 2003 Adopted Budget. Although the primary rate was not increased from $0.2089 per $100 assessed valuation, the property assessments for new development, annexations, and inflation are anticipated to increase. The increase from the Fiscal Year 2004 approved estimate is $1,039,930 based on the original planned reduction of $748,700 to offset an increase in the secondary property tax rate used for debt service on the voter approved 2000 Bond Authorization. Business Privilege Tax Revenue from the business privilege tax is a funding source for the general fund and various special revenue funds. For Fiscal Year 2004 the total projected sales tax collections are $168,200,000, a 1.1% increase over the Fiscal Year 2003 adopted amount. This increase is the result of a 2.7% decrease in Fiscal Year 2003 estimated revenues and a 4% projected increase for Fiscal Year 2004 over the Fiscal Year 2003 estimate. Of the Fiscal Year 2004 total, $110,207,030 is allocated to the general fund and $57,992,970 to special revenue funds. The Fiscal Year 2004 adopted is $6,444,500 less than originally projected. Other Local Taxes Other local taxes revenues for Fiscal Year 2004 are projected to increase $5,936,670 over the adopted Fiscal Year 2003, primarily due to a new Use Tax expected to generate $4,000,000, and an increase in the transient occupancy tax rate from 4% to 6%. No rate increases are assumed for other taxes. Licenses and Permits This revenue source decreased by $150,480 from adopted Fiscal Year 2003 revenues. The continued growth of cable television licenses of $802,045 were offset by decreases in various telecommunication sources. In addition the share of parking meter collections allocated to Transportation Enterprise Area Management (TEAM) are now shown in Special Revenues. Fines, Forfeitures, and Penalties Total revenues from all fines, forfeitures, and penalties are forecast to increase $1,832,080 from Fiscal Year 2003 adopted revenues. This was mostly due to increased collection rates of court fines and institution of an administration fee in city court. Fiscal Year 2004 revenues were originally projected to increase only $384,480. Use of Money and Property A decrease of $3,333,390 for Fiscal Year 2004 from Fiscal Year 2003 adopted revenues is projected for these revenue sources primarily due to a $1,990,000 decrease in interest earnings and the transfer of parking garage revenues to TEAM in Special Revenues. Grants and Shared Taxes State shared taxes and other state and local grant funds increased $1,121,210 for Fiscal Year 2004 over Fiscal Year 2003 adopted revenues. State sales tax collections are projected to be $650,000 lower than Fiscal Year 2003 adopted and $2,624,200 less than Fiscal Year 2004 approved estimates. This decrease is offset by increases in the auto lieu tax and other grants. State Revenue Sharing A decrease in state income taxes of $9,000,180 is forecast for Fiscal Year 2004 compared to the Fiscal Year 2003 Adopted Budget primarily due to reduced corporate income and investment tax receipts. This is an $11,212,740 decrease from the original Fiscal Year 2004 estimates. Because of the lag in distribution of income taxes to local governments, the impact of the Fiscal Year 2002 recession is reflected in Fiscal Year 2004. E-15 General Fund (Continued) Charges for Current Services Total charges for current services for Fiscal Year 2004 are projected to increase $695,160 over Fiscal Year 2003 adopted revenues. The following major increases are included: ♦ Zoning adjustments increased $311,800, primarily due to rate increases of $300,000. ♦ Emergency medical transport is decreased $800,000 due to lower medicare payments. ♦ Development Services charges increased $916,380 due to a combination of increased rates and development activity. ♦ Parks and Recreation increased $136,890. Although a $1,253,900 rate increase is adopted in Fiscal Year 2004, actual revenues have been lower than approved in prior years, resulting in a much smaller revenue increase for Fiscal Year 2004. Budget reductions will result in a loss of $275,000. Parks and Recreation fees will take longer than the planned five years to reach a 30% cost recovery rate. Fiscal Year 2004 revenues are $1,098,230 lower than projected in the approved Fiscal Year 2004 budget. Non-Revenue Receipts These sources are projected to decrease $1,849,710 for Fiscal Year 2004 primarily due to a reduction in recovered expenditures and other funding sources. The proposed allotment of other general revenues reflects capacity for additional revenues that will be utilized to meet unexpected service demands or opportunities contingent upon the availability of funds. In no event will revenues be expended from this source without Mayor and Council review and approval. Certificates of Participation Certificates of participation increased $7,920,900 based on financing requirements. This increase is primarily due to construction of the Emergency Communication System and Facility. Brought Forward Brought forward funding will decrease $1,162,020 from the Fiscal Year 2003 adopted amount based on carryforward requirements. Use of Fund Balance Use of fund balance is budgeted $10,697,060 lower than Fiscal Year 2003 based on the reduced availability of funding from prior years. E-16 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by statute, charter provision, local ordinance, or federal grant regulation to record particular operating or capital functions of the city. Actual FY 2002 FINANCIAL SUMMARY Business Privilege Tax Solid Waste Management Fund Library Fund Public Safety Academy Fund Tucson Convention Center Fund Mass Transit Fund Total Licenses and Permits Solid Waste Management Fund Refuse Hauling Fees Transportation Enterprise Area Management (TEAM) Parking Meter Collections Total Fines, Forfeitures, and Penalties TEAM Parking Violations Total Use of Money and Property Interest Earnings Solid Waste Management Fund Public Safety Fund Convention Center Fund TEAM Highway User Revenue Fund Total Grants and Shared Taxes Shared State Taxes Highway User Revenue Fund Local Transit Assistance Fund Sub-Total Adopted FY 2003 Estimated FY 2003 Approved FY 2004 Adopted FY 2004 $ 15,461,330 8,539,560 2,258,425 6,524,550 23,944,948 $ 14,627,120 $ 15,816,080 $ 13,161,740 $ 10,632,120 9,047,850 8,191,530 9,502,230 8,278,300 3,821,750 3,128,330 3,975,850 3,850,820 7,557,770 7,786,270 7,477,530 7,127,040 27,176,630 26,900,350 28,818,720 28,104,690 $ 56,728,813 $ 62,231,120 $ 61,822,560 $ 62,936,070 $ 57,992,970 $ $ 11,500 -0- 10,000 $ 10,000 $ 10,000 $ 10,000 -0- -0- -0- 348,000 $ 11,500 $ 10,000 $ 10,000 $ 10,000 $ 358,000 $ -0- $ -0- $ -0- $ -0- $ 663,000 $ -0- $ -0- $ -0- $ -0- $ 663,000 $ 13,625 8,497 36,289 -01,420,981 $ -0- $ -0-0-01,553,160 -0- $ -0-0-01,553,160 -0- $ -0-0-01,602,860 -0-0-01,170,060 1,602,860 $ 1,479,392 $ 1,553,160 $ 1,553,160 $ 1,602,860 $ 2,772,920 $ 26,969,767 2,762,686 $ 30,385,530 $ 29,000,530 $ 30,908,580 $ 30,908,580 2,707,000 2,767,000 2,707,000 2,767,000 29,732,453 33,092,530 E-17 31,767,530 33,615,580 33,675,580 Special Revenue Funds (Continued) Actual FY 2002 FINANCIAL SUMMARY Grants and Shared Taxes (Continued) State and Local Grants City Attorney Grants City Court Grants Community Services Grants Fire Grants Pima County Library Support State/Local Library Grants Parks and Recreation Grants Police Grants Solid Waste Management Grants Transportation Grants Environmental Management Comprehensive Planning Operations Grants Economic Development General Expense Debt Service $ Sub-Total Total Charges for Current Services Public Safety Public Safety Academy Sanitation Commercial Refuse Services Landfill Services Charges Tucson Clean Program Self Haul Fee Refuse Penalties Recycling Sub-Total Library Charges Public Transportation Adult Fares Special Reduced Rates Shuttle Service Advertising Revenue County/Other Local Operating Assistance Special Needs Other Sub-Total Adopted FY 2003 80,295 $ 155,010 $ 135,520 362,000 57,190 500,000 6,720 350,000 9,040,000 10,176,980 2,474,375 1,150,000 4,647,723 3,530,830 821,871 1,098,390 18,248 410,000 9,079,987 7,754,950 4,100,000 -056,429 210,000 239,501 1,500,000 20,887 34,560 139,584 285,620 800,000 4,800,000 31,718,330 32,318,340 Estimated FY 2003 Approved FY 2004 Adopted FY 2004 110,260 $ 160,340 $ 133,390 143,770 365,080 359,060 500,000 650,000 650,000 -0350,000 350,000 9,676,080 10,656,500 10,339,310 650,000 500,000 500,000 3,527,120 5,896,420 5,495,540 932,070 1,095,790 1,053,200 410,000 410,000 410,000 7,026,950 6,915,000 10,117,000 -0-01,364,900 210,000 210,000 210,000 1,398,260 1,500,000 1,500,000 34,560 -0-0135,620 285,620 -0800,000 7,800,000 4,400,000 25,554,690 36,794,750 36,882,400 $ 61,450,783 $ 65,410,870 $ 57,322,220 $ 70,410,330 $ 70,557,980 $ 1,153,032 $ 836,020 $ 836,020 $ 854,280 $ 854,280 5,153,587 3,754,615 -0642,543 104,087 70,807 5,782,880 4,345,120 -0580,320 135,200 297,840 5,025,520 4,095,120 -0580,320 135,200 240,840 6,002,200 4,518,930 -0603,530 140,610 549,750 5,780,000 4,022,780 2,916,000 651,020 128,380 501,920 9,725,639 11,141,360 10,077,000 11,815,020 14,000,100 548,150 629,200 629,200 654,370 654,370 5,336,360 1,346,112 36,791 53,992 2,734,488 5,459,630 1,508,720 215,620 70,000 2,578,770 5,459,630 1,508,720 215,620 70,000 2,578,770 5,509,630 1,508,720 215,620 70,000 2,578,770 5,599,000 1,532,860 219,070 271,120 2,620,030 281,832 234,343 262,260 105,000 262,260 116,000 262,260 105,000 266,460 106,680 10,023,918 10,200,000 10,211,000 10,250,000 10,615,220 E-18 Special Revenue Funds (Continued) Actual FY 2002 FINANCIAL SUMMARY Charges for Current Services (Continued) Tucson Convention Center Room and Space Rental $ Box Office Fees Parking Recovered Expenditures Catering and Concessions Program Sales Commission Revenues Facility User Fees Miscellaneous Sub-Total Total Public Housing Local Revenue Federal Grants Public Housing Federal Revenue Conventional/Development Fund HOME Fund Section 8 Fund Comprehensive Housing Fund Miscellaneous Federal Housing Funds HOPE VI Fund Sub-Total Other Federal Revenue Community Development Block Grant Entitlement City Attorney Grants Community Services Grants Fire Grants Parks and Recreation Grants Library Grants Police Grants Planning Grants Solid Waste Management Grants Mass Transit Grants Transportation Grants Environmental Management Economic Development Operations Grant Adopted FY 2003 938,617 $ 173,279 738,572 46,364 423,499 40,572 88,356 333,102 (1,431) 2,780,930 Estimated FY 2003 1,560,000 $ 200,000 728,000 46,800 572,000 72,800 49,920 700,000 -0- 1,210,000 200,000 575,000 46,800 500,000 72,800 49,920 408,620 -0- 3,929,520 3,063,140 Approved FY 2004 $ Adopted FY 2004 1,622,400 $ 200,000 757,120 48,670 594,880 75,710 51,920 700,000 -0- 1,409,930 169,000 822,500 41,130 502,670 63,970 43,870 700,000 -0- 4,050,700 3,753,070 $ 24,231,669 $ 26,736,100 $ 24,816,360 $ 27,624,370 $ 29,877,040 $ 2,027,660 $ 2,027,660 $ 2,027,660 $ 2,027,660 $ 2,027,660 $ 4,013,700 $ 4,013,700 $ 3,990,200 $ 3,990,200 3,736,290 $ 5,036,965 23,181,835 2,450,183 2,148,469 7,435,000 23,965,200 3,516,100 4,995,170 7,435,000 23,965,200 3,516,100 4,995,170 7,535,000 23,861,110 3,319,050 5,981,020 7,535,000 23,861,110 3,340,450 5,841,020 3,535,783 5,350,860 9,937,680 4,774,000 3,714,500 40,089,525 49,276,030 53,862,850 49,460,380 48,282,280 7,733,884 13,093,870 14,061,690 12,744,770 14,312,970 268,303 802,228 305,495 367,429 95,361 6,286,264 5,346 2,503 357,950 1,651,400 300,000 664,240 -06,330,030 100,000 -0- 196,480 1,651,400 389,580 597,690 58,380 5,651,390 20,000 -0- 380,220 1,366,810 -0671,550 -05,904,580 80,000 -0- 383,980 1,366,810 -0619,560 -06,250,450 80,000 -0- 15,441,065 7,612,863 38,466 169,651 99,698 23,948,500 36,360,210 200,000 500,000 1,500,000 26,059,090 42,656,420 200,000 499,880 1,500,000 24,494,000 24,323,700 -0500,000 1,500,000 45,724,150 23,654,460 -0542,050 1,500,000 E-19 Special Revenue Funds (Continued) Actual FY 2002 FINANCIAL SUMMARY Federal Grants - Other Federal Revenue (Continued) General Expense $ Debt Service Sub-Total Total Non-Revenue Receipts Sale of Property Highway User Revenue Fund Mass Transit Fund $ Brought Forward Solid Waste Management Fund Library Fund TEAM Tucson Convention Center Fund Capital Contribution Agreements Highway User Revenue Fund Mass Transit Fund Total Use of Fund Balance Solid Waste Management Fund Highway User Revenue Fund Tucson Convention Center Fund TEAM 85,006,200 -0- $ -093,542,000 Approved FY 2004 -0- $ -071,965,630 Adopted FY 2004 -0800,000 95,234,430 313,019 $ 69,757 -0- $ -0- -0- $ -0- -0- $ -0- -0-0- 382,776 -0- -0- -0- -0- 4,671 1,398 42,751 100,000 -0-0-0-0- -0-0-0-0- -0-0-0-0- -0-0-0-0- 148,820 -0- -0- -0- -0- $ 531,596 $ -0- $ -0- $ -0- $ -0- $ 321,500 $ -0- $ -0- $ -0- $ -0- $ 321,500 $ -0- $ -0- $ -0- $ -0- 1,744,726 $ -0- $ -0- $ -0-0-0-0-0-0-0108,000 38,000 7,331,700 11,986,900 11,986,900 3,577,000 3,890,300 3,890,300 2,164,471 1,147,200 1,147,200 3,231,000 $ -0-0-0-0521,310 -0- -012,000 270,000 -09,381,600 6,514,000 2,243,800 Sub-Total Total -0- $ -0- Estimated FY 2003 $ 79,325,284 $ 134,282,230 $ 147,404,850 $ 121,426,010 $ 143,516,710 Recovered Expenditures Solid Waste Fund Library Fund Highway User Revenue Fund Mass Transit Fund Certificates of Participation Public Safety Academy Fund 7,203 $ -039,235,759 Sub-Total Total Adopted FY 2003 $ $ 14,817,897 $ 17,132,400 $ 17,062,400 $ $ 1,654,800 $ 9,993,280 -0-0- 3,752,310 $ 18,421,400 4,748,700 $ 6,337,340 -0-0- 4,748,700 $ 8,268,450 70,000 -0- -0- $ 325,700 -0-0- Total $ 11,648,080 $ 11,086,040 $ 3,087,150 $ 325,700 $ 10,164,920 Total Special Revenue Funds $ 252,574,174 $ 320,469,580 $ 325,106,360 $ 290,115,310 $ 336,352,600 E-20 7,208,700 2,674,440 -0281,780 Special Revenue Funds (Continued) HIGHLIGHTS Business Privilege Tax Changes from Fiscal Year 2003 reflect increases and decreases necessary to offset the expenditures for these funds based on their projected budgets and revenues. Because funding from other sources increased in Solid Waste Management, Library, and Tucson Convention Center, and reductions were made in expenditure budgets, the need to use business privilege taxes decreased $4,238,150. Licenses and Permits Parking meter revenues allocated to TEAM are transferred from General Fund. Use of Money and Property Revenues from parking garages allocated to TEAM are transferred from General Fund. In addition interest earnings are projected to increase $49,700 in Fiscal Year 2004. Grants and Shared Taxes For Fiscal Year 2004 state shared taxes and other state and local grants increased $5,147,110 from Fiscal Year 2003 adopted budgets based on implementation of funded programs and projects. Major changes include the following: ♦ Grant capacity for parks and recreation programs increased $1,964,710. ♦ Grant funding for transportation purposes increased $2,362,050 for street projects. ♦ Environmental Management grants increased $1,364,900 for landfill projects. Charges for Current Services Charges for current services are forecast to increase $3,140,940 for Fiscal Year 2004 primarily in sanitation due to a new Tucson Clean Program fee ($2,916,000). Public Housing Local Revenue Local revenues restricted to public housing are anticipated to be at the same level for both Fiscal Years 2003 and 2004. Federal Grants Federal funding is anticipated to be $9,234,480 higher for Fiscal Year 2004. Major changes are as follows: ♦ Public Housing funds decreased $993,750 based on completion of federally funded projects. ♦ Community Development Block Grant (CDBG) funding increased $1,219,100. ♦ Mass Transit and other transportation grants increased $9,069,900 for capital projects. Brought Forward Brought forward funding increased $1,289,000 from Fiscal Year 2003 based on carryforward requirements. Use of Fund Balance Use of fund balances decreased $921,120 for Fiscal Year 2004 based on requirements for the use of reserves. E-21 ENTERPRISE FUNDS Enterprise Funds are established to account for operations that are financed and operated in a manner similar to private business enterprises and where periodic determination of net income is desired. Expenses, including depreciation, of goods or services to the general public are recovered primarily through user charges. Actual FY 2002 FINANCIAL SUMMARY Golf Course Fund Green Fees Cart Rentals Pro Shop Operations Driving Range Club House Operations Other Certificates of Participation Total Water Utility Operating Water Revenue Potable Water Sales Central Arizona Project Reserve Fund Connection Fees Miscellaneous Revenue Pima County - Sewer Billing Services Reclaimed Water Sales Sales Tax Sub-Total Non-Operating Water Revenue Interest Earnings-Operating Fund Tucson Airport Remediation Project Reimbursement Metropolitan Water Company Reserve Account Area Development Fees Use of Working Capital Miscellaneous Grants Sub-Total Adopted FY 2003 Estimated FY 2003 Approved FY 2004 5,408,000 $ 2,200,000 580,000 545,000 1,380,000 597,220 -0- Adopted FY 2004 $ 5,236,000 $ 1,692,000 543,000 525,000 1,285,000 444,182 126,596 5,307,770 $ 1,850,000 570,000 535,000 1,290,000 702,650 456,800 4,554,360 1,850,000 570,000 535,000 1,290,000 702,650 318,790 $ 5,208,000 2,000,000 580,000 545,000 1,130,410 2,307,220 338,900 $ 9,851,778 $ 10,712,220 $ 9,820,800 $ 10,710,220 $ 12,109,530 $ 91,916,000 $ 94,256,000 $ 95,842,000 953,000 956,000 1,255,000 $ 100,517,000 $ 100,107,000 977,000 1,498,000 3,151,000 2,213,000 1,419,000 3,123,000 2,586,000 1,448,000 3,168,000 2,840,000 1,446,000 3,123,000 2,599,000 1,477,000 3,168,000 2,589,000 1,475,000 5,567,000 -0- 5,044,000 7,123,000 5,323,000 7,904,000 5,504,000 7,595,000 5,397,000 8,252,000 105,219,000 114,536,000 117,778,000 121,792,000 122,486,000 1,498,000 1,008,000 810,000 993,000 795,000 667,000 777,000 777,000 783,000 783,000 2,239,638 370,000 370,000 494,000 494,000 1,488,000 -0-0- 1,004,000 (781,000) 365,000 860,000 (7,572,140) 365,000 1,004,000 450,000 150,000 8,587,000 (1,128,680) 150,000 5,892,638 2,743,000 (4,390,140) 3,874,000 9,680,320 Total $ 111,111,638 $ 117,279,000 $ 113,387,860 $ 125,666,000 $ 132,166,320 Total Enterprise Funds $ 120,963,416 $ 127,991,220 $ 123,208,660 $ 136,376,220 $ 144,275,850 E-22 Enterprise Funds (Continued) HIGHLIGHTS Golf Course Fund Golf revenues projected for Fiscal Year 2004 reflect an increase of $1,397,310 from Fiscal Year 2003 adopted revenues. Water Utility The adopted revenue for Fiscal Year 2004 reflects an increase of $14,887,320 over the Fiscal Year 2003 adopted amount. This includes a new area development connection fee as well as growth in service demand. E-23 DEBT SERVICE FUNDS Debt Service Funds are created to account for the payment of principal and interest on long-term bonded debt other than that issued for and serviced primarily by an enterprise fund. FINANCIAL SUMMARY General Obligation Debt Service Secondary Property Tax Total Street and Highway Debt Service State Shared Taxes Actual FY 2002 Adopted FY 2003 Estimated FY 2003 Approved FY 2004 Adopted FY 2004 $ 20,817,632 $ 20,756,360 $ 20,674,970 $ 22,907,710 $ 23,055,320 $ 20,817,632 $ 20,756,360 $ 20,674,970 $ 22,907,710 $ 23,055,320 $ 15,548,281 $ 16,035,270 $ 14,987,200 $ 16,294,550 $ 16,294,550 Total $ 15,548,281 $ 16,035,270 $ 14,987,200 $ 16,294,550 $ 16,294,550 Total Debt Service Funds $ 36,365,913 $ 36,791,630 $ 35,662,170 $ 39,202,260 $ 39,349,870 HIGHLIGHTS General Obligation Debt Service General obligation debt service is primarily funded from the secondary property tax, which increased $2,298,960 for Fiscal Year 2004 based on anticipated bond sales. Street and Highway Debt Service Street and highway debt service is financed entirely from the state-shared gasoline taxes and highway user fees and charges. The debt service increased $259,280 for Fiscal Year 2004. E-24 CAPITAL PROJECTS FUNDS Funds for capital projects are created to account for the purchase or construction of major capital facilities which are not financed by General, Special Revenue, or Enterprise Funds. FINANCIAL SUMMARY General Obligation Bond Funds Proceeds Street and Highway Revenue Bond Funds Proceeds Water Revenue Bond Funds Proceeds Total Capital Projects Funds Actual FY 2002 Adopted FY 2003 Estimated FY 2003 Approved FY 2004 Adopted FY 2004 $ 19,750,117 $ 54,349,400 $ 54,669,470 $ 35,749,000 $ 59,456,800 10,956,065 13,424,800 19,824,640 5,717,000 11,189,200 21,388,631 44,265,000 44,572,000 31,992,000 31,206,000 $ 52,094,813 $ 112,039,200 $ 119,066,110 $ 73,458,000 $ 101,852,000 HIGHLIGHTS General Obligation Bonds General obligation bonds are used to finance capital projects other than street and water projects. Fiscal Year 2004 increased $5,107,400 based on project implementation. Street and Highway Revenue Bonds Street and highway revenue bonds are used to finance Transportation street and right of way capital projects. Fiscal Year 2004 decreased $2,235,600 based on project implementation. Water Revenue Bonds Water revenue bonds used to finance water capital projects decreased $13,059,000 in Fiscal Year 2004 due to completion of major capital improvements. E-25 REVENUE DESCRIPTIONS PRIMARY PROPERTY TAX The city imposes a primary property tax on real and personal property located within the city limits. Revenues from the primary property tax can be used to pay any expense legally chargeable to the General Fund. The Arizona State Constitution limits the amount of ad valorem taxes levied by the city to an amount not to exceed two percent greater than the maximum permissible levy in the preceding year. This levy limitation permits additional taxes to be levied on new or annexed property. New or annexed property may be taxed at the allowable rate computed for property taxed in the preceding year. Property annexed by November 1 will be taxable in the following year. The city is required, under the Truth in Taxation law, to notify taxpayers of its intention to increase primary property taxes over the previous year’s levy, unless the amount increased is solely attributable to new construction and annexations. The estimated primary property tax for Fiscal Year 2004 is $4,904,190 or $302,260 more than last year's estimated levy of $4,601,930. The tax rate was not changed from $0.2089 per $100 of assessed valuation. Fiscal Year 2004 revenues are also impacted by a 6.6% increase in assessed valuation. The adopted budget for Fiscal Year 2003 was $4,612,960. The following table shows the primary assessed valuations, levies, and rates since Fiscal Year 1999. PRIMARY PROPERTY TAX ($000s) Fiscal Year Primary Assessed Valuation 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) $ 1,809,220 1,817,930 1,999,070 2,089,090 2,202,934 2,347,641 Percent Change Primary Tax Levy* Increase (Decrease) Percent Change Rate per $100 Assessed Valuation 4.7% 0.5% 10.0% 4.5% 5.5% 6.6% $ 2,584 2,596 2,810 2,931 4,602 4,904 $118 12 214 121 1,671 302 4.8% 0.5% 8.2% 4.3% 57.0% 6.6% $ 0.1428 0.1428 0.1406 0.1403 0.2089 0.2089 Maximum Allowable Tax Levy: 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) $ 6,805 7,117 7,436 7,775 8,146 8,477 *Primary property tax levy set by Mayor and Council. E-26 SECONDARY PROPERTY TAX The city imposes a secondary property tax on real property located within the city limits. The secondary property tax is used solely to pay the principal and interest on general obligation bonds approved by the voters. The secondary assessed valuation is based on the full cash value of real property. Full cash value is synonymous with the market value as determined by standard appraisal methods. There is no limitation on the annual increase to the full cash value as it applies to the computation of the secondary property tax. The Fiscal Year 2004 secondary assessed valuation is estimated to be $2,431,984,410, a 7.2% increase over last year's valuation. The city's total estimated debt service requirement on general obligation bonds for Fiscal Year 2004 is $23,055,320. The secondary property tax rate for Fiscal Year 2004 is estimated at $0.9480 per $100 of assessed valuation, an increase of $0.0367. The adopted budget for Fiscal Year 2003 was $20,756,360. The following table and graph show secondary assessed valuations, levies, and rates since Fiscal Year 1999. SECONDARY PROPERTY TAX ($000s) Fiscal Year Secondary Assessed Valuation 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) $ 1,875,875 1,945,160 2,048,620 2,138,461 2,268,733 2,431,984 Percent Change Secondary Tax Levy* Increase (Decrease) 3.1% 3.7% 5.3% 4.4% 6.1% 7.2% $ 15,332 17,137 20,207 20,954 20,675 23,055 $ (107) 1,805 3,070 747 (279) 2,380 Percent Change (0.7%) 11.8% 17.9% 3.7% (1.3%) 11.5% SECONDARY PROPERTY TAX LEVY ($000s) $25,000 $23,055 $20,954 $20,207 $20,000 $15,332 $20,675 $17,137 $15,000 $10,000 1999 2000 2001 2002 *Secondary property tax levy set by Mayor and Council. E-27 2003 2004 Rate per $100 Assessed Valuation $ 0.8173 0.8810 0.9864 0.9799 0.9113 0.9480 CITY BUSINESS PRIVILEGE (SALES) TAX The Tucson City Charter authorizes a 2% tax on taxable business activity transacted within the city. The tax is imposed on 15 separate business activities. The charter exempts food purchased for home consumption, but allows the taxation of food consumed in restaurants or carried out. The charter further provides that as long as the city sales tax is imposed, no ad valorem tax shall be imposed on real or personal property within the city in excess of $1.75 per $100 of assessed valuation. The city sales tax can be used to pay any expense legally chargeable to the General Fund. Mayor and Council policy allocates a portion of the city sales tax collected to finance part of mass transit, solid waste management, public library, convention center, and public housing operations. The city sales tax estimate of $168,200,000 for Fiscal Year 2004 is an increase of $6,423,600, a 4% increase over the prior year revised estimate of $161,776,400. The adopted budget for Fiscal Year 2003 was $166,328,100. Although the growth in Tucson's economy slowed significantly in Fiscal Years 2002 and 2003, the rate of growth is expected to increase for Fiscal Year 2004. This will affect tax receipts on retail sales, restaurants, and bars which represent approximately 70% of the city sales tax revenues. The following table and graph show city business privilege tax collections since Fiscal Year 1999. CITY BUSINESS PRIVILEGE (SALES) TAX ($000s) Fiscal Year Revenues Increase (Decrease) 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) $ 136,199 147,230 157,335 158,139 161,776 168,200 $ 7,759 11,031 10,105 804 3,637 6,424 Percent Change 6.0% 8.1% 6.9% 0.5% 2.3% 4.0% CITY BUSINESS PRIVILEGE (SALES) TAX Revenues ($000s) $180,000 $161,776 $150,000 $157,335 $158,139 2001 2002 $168,200 $147,230 $136,199 $120,000 1999 2000 E-28 2003 2004 PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES The Tucson City Charter authorizes a tax on the gross sales by public utilities to consumers within the city limits. By ordinance, the tax rate is set at 2% and is imposed in addition to the 2% city sales tax. Under the terms of voter-approved franchises granted to Tucson Electric Power and Southwest Gas for use of public rights-of-way, the city collects 2.25% on gross sales of electricity and 2.5% on natural gas consumed within the city. However, franchise fee payments received from Tucson Electric Power and Southwest Gas reduce the public utility tax due from these two utilities. Monies received from public utility taxes and utility franchise fees can be used to pay any expense legally chargeable to the General Fund. Estimated revenues from public utility taxes and utility franchise fees for Fiscal Year 2004 total $18,282,500, a 2% increase over last year's revised estimate of $17,924,070. The adopted budget for Fiscal Year 2003 was $17,627,910. The following table and graph show revenues from public utility tax and utility franchise fees since Fiscal Year 1999. PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES ($000s) Fiscal Year Public Utility Tax Utility Franchise Fees 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) $ 5,768 6,768 6,539 7,853 7,796 7,952 $ 8,500 8,440 10,608 11,202 10,128 10,331 Combined Revenues Increase (Decrease) Percent Change $ 14,268 15,208 17,147 19,055 17,924 18,283 $ 1,194 940 1,939 1,908 (1,131) 359 9.1% 6.6% 12.7% 11.1% (5.9%) 2.0% PUBLIC UTILITY TAX AND UTILITY FRANCHISE FEES Revenues ($000s) $21,000 $19,055 $17,924 $17,147 $18,000 $14,268 $18,283 $15,208 $15,000 $12,000 1999 2000 2001 2002 E-29 2003 2004 TRANSIENT OCCUPANCY AND ROOM TAXES The Tucson City Code authorizes a 6% transient occupancy tax on rooms rented for 30 days or less. This rate is increased from 4% prior to Fiscal Year 2004, generating an additional $2,368,200 which by statute must be dedicated to tourism. In Fiscal Year 1989, an additional daily hotel/motel surtax of $1.00 per rented room was authorized. Estimated transient occupancy taxes for Fiscal Year 2004 total $8,953,600, a 38.7% increase over the estimate for the prior year of $6,456,200, primarily due to the tax increase. The Fiscal Year 2004 estimate is comprised of $7,104,600 in revenues from the 6% tax and $1,849,000 from the $1.00 surtax. The adopted budget for Fiscal Year 2003 was $7,508,800. The following table and graph show Transient Occupancy and Room Tax collections since Fiscal Year 1999. TRANSIENT OCCUPANCY AND ROOM TAXES ($000s) Fiscal Year Increase (Decrease) Revenues 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) $ 6,676 6,820 6,993 6,339 6,456 8,954 Percent Change $ 267 144 173 (654) 117 2,498 4.2% 2.2% 2.5% (9.4%) 1.8% 38.7% TRANSIENT OCCUPANCY AND ROOM TAXES Revenues ($000s) $10,000 $8,954 $8,500 $6,676 $7,000 $6,820 $6,993 $6,339 $6,456 $5,500 1999 2000 2001 2002 2003 2004 LICENSES AND PERMITS Revenues from licenses and permits include sign and street work permits, parking meter collections, utility franchises, cable television, refuse hauling permits, and telecommunications licenses and franchise fees. Although utility franchises are accounted for and reported within this revenue category in the city’s Comprehensive Annual Financial Report, the discussion on estimated revenues from utility franchises granted to Tucson Electric Power and Southwest Gas is presented separately in the Public Utility Tax and Utility Franchise Fees section of the Revenue Descriptions in this document (see page E-29). E-30 Licenses and Permits (Continued) Revenues from licenses and permits in Fiscal Year 2004, excluding utility franchise fees, is estimated to total $5,830,260, which is less than 0.1% lower than the prior year's estimate of $5,835,270. The adopted budget for Fiscal Year 2003 was also $5,835,270. The following table and graph show revenues from licenses and permits since Fiscal Year 1999. LICENSES AND PERMITS ($000s) Fiscal Year Revenues 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) Increase (Decrease) Percent Change $ 556 1,259 (439) 930 938 (5) 21.5% 40.0% (10.0%) 23.4% 19.2% (<0.1%) $ 3,147 4,406 3,967 4,897 5,835 5,830 LICENSES AND PERMITS Revenues ($000s) $8,000 $5,835 $6,000 $4,406 $4,000 $3,147 $5,830 $4,897 $3,967 $2,000 1999 2000 2001 2002 2003 2004 FINES, FORFEITURES, AND PENALTIES The source of this revenue is derived from fines for violations of state statutes and the Tucson City Code, including driving under the influence, criminal misdemeanors, civil traffic violations, and parking violations. Fine revenues can be used by the city to pay any expense legally chargeable to the General Fund. The Fiscal Year 2004 estimate of $10,458,200 is 25.1% more than the $8,363,120 revised estimate for Fiscal Year 2003. This increase includes $700,000 from a new City Court administrative fee. The adopted budget for Fiscal Year 2003 was $7,963,120. The following table and graph show revenues from fines, forfeitures, and penalties since Fiscal Year 1999. E-31 Fines, Forfeitures, and Penalties (Continued) FINES, FORFEITURES, AND PENALTIES ($000s) Fiscal Year Revenues 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) Increase (Decrease) Percent Change $ (195) (817) 540 1,609 412 2,095 (2.9%) (12.3%) 9.3% 25.4% 5.2% 25.1% $ 6,619 5,802 6,342 7,951 8,363 10,458 FINES, FORFEITURES, AND PENALTIES Revenues ($000s) $10,458 $11,000 $8,363 $9,000 $7,951 $6,619 $6,342 $7,000 $5,802 $5,000 1999 2000 2001 2002 2003 2004 VEHICLE LICENSE (AUTO LIEU) TAX This tax is imposed by the Arizona Constitution as an “in-lieu” tax for all ad valorem property taxes assessed on motor vehicles. The Arizona Constitution requires that vehicle license tax (VLT) revenues be distributed to the state, counties, and cities. Additionally, the Arizona Constitution requires that a portion of the state’s distribution go to fund education. The vehicle license tax is based on each $100 of a vehicle’s value. The valuation base for the first year is 60% of the manufacturer's base retail price and the annual depreciation rate for each succeeding year is 16.25%. The statute sets specific rates for each vehicle license to be charged for each distribution recipient. The rate for incorporated cities and towns is sixty-nine cents ($0.69) for a new vehicle and seventy-one cents ($0.71) for a vehicle older than one year. Current law provides that 41.37% of vehicle license taxes collected be retained by the state in the Highway User Revenue Fund (HURF). The statute establishes distributions that include 22.62% to the county treasurer to be distributed to the incorporated cities and towns of the county apportioned in proportion to the population of each as shown in the most recent United States census. The City of Tucson's vehicle license tax distributions for Fiscal Year 2004 is estimated to be $20,193,000, which is an increase of 7.1% from the revised estimate of $18,855,000 for Fiscal Year 2003. The adopted budget for Fiscal Year 2003 was $18,530,060. Vehicle license tax revenues received by the city can be used to pay any expense legally chargeable to the General Fund. E-32 Vehicle License (Auto Lieu) Tax (Continued) The following table and graph show total annual distributions to cities and towns within Pima County, the City of Tucson’s share since Fiscal Year 1999, and estimates for Fiscal Years 2003 and 2004. VEHICLE LICENSE TAX ($000s) Fiscal Year All Incorporated Cities' Share of Pima County Distribution 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) City of Tucson’s Distribution Percent Amount $ 16,627 18,428 19,524 20,470 20,252 21,690 93.1% 93.1% 93.1% 93.1% 93.1% 93.1% Increase (Decrease) $ 15,484 17,161 18,181 19,058 18,855 20,193 $ 3,093 1,677 1,020 877 (203) 1,338 Percent Change 25.0% 10.8% 5.9% 4.8% (1.1%) 7.1% VEHICLE LICENSE TAX Revenues ($000s) $22,000 $20,193 $19,058 $20,000 $18,181 $18,855 $17,161 $18,000 $15,484 $16,000 $14,000 1999 2000 2001 2002 2003 2004 STATE SALES TAX The state sales tax is assessed on the taxable income of business activities within the State of Arizona. The state taxes approximately 20 separate business activities using various rates ranging from 3.1% to 5.6%. Shared sales taxes can be used to pay any expense legally chargeable to the General Fund. Approximately 78% of the state sales tax is retained by the state’s general fund with 14% set aside for distribution to counties, and 8% to incorporated cities and towns. Each city’s share is allocated in proportion to its population compared to the total population of the state. The City of Tucson's share of state sales tax for Fiscal Year 2004 is estimated to be $38,833,000, a 1.6% increase from the revised estimate of $38,203,960 for Fiscal Year 2003. The adopted budget for Fiscal Year 2003 was $39,483,000. The following table and graph show the state sales tax allocations to the City of Tucson since Fiscal Year 1999. E-33 State Sales Tax (Continued) STATE SALES TAX ($000s) Fiscal Year Total Distribution To Cities Percent Change $ 272,402 299,387 312,676 310,190 317,500 323,610 5.3% 9.9% 4.4% (0.8%) 2.4% 1.9% 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) City of Tucson's Share Percent Amount 12.9% 12.9% 13.0% 12.1% 12.0% 12.0% $ 35,239 38,645 40,649 37,533 38,204 38,833 Increase (Decrease) Percent Change $ 2,348 3,406 2,004 (3,116) 671 629 7.1% 9.7% 5.2% (7.7%) 1.8% 1.6% STATE SALES TAX City of Tucson's Share ($000s) $45,000 $40,649 $38,645 $40,000 $37,533 $38,204 2002 2003 $38,833 $35,239 $35,000 $30,000 1999 2000 2001 2004 HIGHWAY USER REVENUE FUND (HURF) ALLOCATION State of Arizona gasoline tax and highway user fees and charges are deposited in the state’s Highway User Revenue Fund (HURF). Current statutes provide for distributions from HURF for Fiscal Year 2000, and annually thereafter, of $10,000,000* to the Arizona Department of Public Safety to fund highway patrol costs and $1,000,000* to the Arizona Economic Strength Fund. HURF monies remaining after these distributions are then shared with counties and cities. The current distribution formula provides that 50.5% be retained in the state highway fund, 19% be distributed to counties, 27.5% be distributed to all incorporated cities and towns, and a final 3% be distributed to cities with a population greater than 300,000. The 27.5% share earmarked for distribution to all incorporated cities and towns is often referred to as “regular HURF”, and the Arizona Constitution requires that these funds be used solely for highway and street purposes which includes payment of principal and interest on street and highway bonds. These funds are allocated to individual cities and towns using a two-tier distribution formula. One-half of the “regular HURF” is apportioned to each city or town based on the population each bears to the population of all cities and towns in the state. The remaining half is then apportioned to counties based on each county’s proportion of motor vehicle fuel sales within the state and is then distributed to each city or town within each county on the basis the population each bears to the population of all cities and towns within the county. *There was an exemption to this amount for Fiscal Years 2002 and 2003. E-34 Highway User Revenue Fund (HURF) Allocation (Continued) The 3% allocation distributable to cities and towns with a population greater than 300,000, sometimes referred to as “restricted HURF”, is also required to be used solely for highway and street purposes. However, these funds are further restricted to the acquisition of right-of-way or construction of streets or highways other than controlledaccess highways. Phoenix, Tucson, and Mesa are the only cities currently sharing in this distribution, and the funds are distributed based on the 2000 decennial census. The city’s share of HURF distributions from the state is estimated to be $47,203,130 for Fiscal Year 2004, which is a 7.3% increase from the revised estimate of $43,987,730 for Fiscal Year 2003. The adopted budget for Fiscal Year 2003 was $46,420,800. The following table and graph show the HURF allocations to the City of Tucson since Fiscal Year 1999. HIGHWAY USER REVENUE FUND ALLOCATION ($000s) Fiscal Year 27.5% Share 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) 3% Share $ 36,314 38,614 39,503 36,102 37,350 40,080 Total $ 6,605 6,933 7,020 6,416 6,638 7,123 Increase (Decrease) Percent Change $ 2,430 2,628 976 (4,005) 1,470 3,215 6.0% 6.1% 2.1% (8.6%) 3.5% 7.3% $ 42,919 45,547 46,523 42,518 43,988 47,203 HIGHWAY USER REVENUE FUND ALLOCATION ($000s) $50,000 $47,203 $46,523 $45,547 $45,000 $43,988 $42,919 $40,000 1999 $42,518 2000 2001 2002 E-35 2003 2004 LOCAL TRANSPORTATION ASSISTANCE FUND (LTAF) In November 1980, an initiative established a state lottery in Arizona. In July 1981, the state legislature established the Local Transportation Assistance Fund (LTAF) consisting of monies deposited initially from the state lottery fund to be distributed to Arizona cities and towns. Current law provides that the Arizona Legislature must appropriate whatever amount is necessary to ensure that a minimum of $20,500,000 annually is deposited in the LTAF. Revenues from the state lottery have historically exceeded the minimum, and the state has not been required to subsidize the fund. Current law places an annual ceiling of $23,000,000 on funds deposited from the state lottery fund into the LTAF for distribution to cities and towns. The maximum is expected to be available for distribution to cities and towns for Fiscal Years 2003 and 2004, and the city is expected to receive $2,767,000. The adopted budget for Fiscal Year 2003 was $2,707,000. Tucson, having a population of more than 300,000, is required to use these LTAF monies for public transportation operating expenses and related capital purposes. Statutes provide that cities may adopt resolutions authorizing the use of up to 10% annually of the LTAF monies for cultural, educational, historical, recreational, or scientific facilities or programs, or for certain non-residential outpatient local programs or services. However, the monies used in this manner must be matched equally with non-public monies spent for the same purposes. In recent years, the LTAF has also been used as the depository for Arizona’s share of revenues from the multi-state lottery (Powerball). The statutes place a ceiling of $18,000,000 on multi-state lottery proceeds available for distribution to the cities and towns. State lottery ticket sales started declining after the introduction of Powerball; to compensate for the loss of state general fund revenues from the state lottery, the state appropriated monies received from the multi-state lottery to the state’s general fund. Statutory annual minimum appropriations to the state’s general fund were enacted by the Arizona Legislature before receipts from multi-state lottery sales were available for distribution to cities and towns. The following table shows the LTAF distribution to the City of Tucson since Fiscal Year 1999. LOCAL TRANSPORTATION ASSISTANCE FUND ($000s) Fiscal Year Tucson's Share Increase (Decrease) Percent Change 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) $ 3,028 2,511 2,811 2,763 2,767 2,767 $ (35) (517) 300 (48) 4 -0- (1.1%) (17.1%) 11.9% (1.7%) 0.1% 0.0% E-36 STATE REVENUE SHARING Incorporated cities and towns are prohibited from imposing local income taxes, but they do receive a share of net individual and corporate income taxes collected by the state which can be used to pay any expense legally chargeable to the General Fund. Distributions are actually made to cities and towns two fiscal years following the fiscal year in which the state collects the income taxes. The portion (of net income taxes collected two years earlier) currently distributable to incorporated cities and towns was set by statute at 15%. The city's portion of State Revenue Sharing distributions is estimated to be $43,388,700 for Fiscal Year 2004, which is a 16.3% decrease from the revised estimate of $51,808,070 for Fiscal Year 2003. The adopted budget for Fiscal Year 2003 was $52,388,880. The following table and graph show the state income tax distributions to the City of Tucson since Fiscal Year 1999. STATE REVENUE SHARING ($000s) Fiscal Year Total Distribution To Cities Percent Change $ 340,311 377,711 396,453 420,934 430,559 361,575 16.8% 11.0% 5.0% 6.2% 2.3% (16.0%) 1999 2000 2001 2002 2003 (Estimate) 2004 (Estimate) Tucson's Share Percent Amount 13.0% 13.0% 13.0% 12.1% 12.0% 12.0% $ 44,347 49,154 51,619 50,933 51,808 43,389 Increase (Decrease) $ 6,443 4,807 2,465 (686) 875 (8,419) STATE REVENUE SHARING City of Tucson's Share ($000s) $60,000 $51,619 $50,933 $51,808 $49,154 $50,000 $44,347 $43,389 $40,000 1999 2000 2001 2002 E-37 2003 2004 Percent Change 17.0% 10.8% 5.0% (1.3%) 1.7% (16.3%) IMPACT OF CAPITAL PROJECTS ON THE OPERATING BUDGET The completion of many capital improvements is the beginning of annual operating expenses for staffing, repairs, maintenance, and other routine operations. The cost of future operating and maintenance (O&M) for new capital projects are estimated by departments based on their budgetary experience with existing projects. The Fiscal Year 2004 Adopted Budget includes a total of $12.2 million in O&M costs for projects either completed in Fiscal Year 2003 or scheduled for completion during Fiscal Year 2004. The following table summarizes those additions to operating expenses. OPERATING COST IMPACTS FOR FISCAL YEAR 2004 Service Area/Department/Project Neighborhood Services Fire Fire Station 6 and other facilities Parks and Recreation Various parks projects Environment and Development Tucson Water Clearwater Renewable Resource Facility Environmental Management Various landfill remediations and investigations Non-Departmental General Expense Midtown Multipurpose Facility Type of Expense Amount Staffing (14 FTEs) and building/equipment maintenance $ 999,200 Building/equipment maintenance 143,000 Electricity, Central Arizona Project commodity charges, and supplies 9,979,900 Equipment maintenance 890,000 Building maintenance 170,000 TOTAL $ 12,182,100 E-38 TEN-YEAR ADOPTED COMPARISON TOTAL CITY STAFFING DEPARTMENTS Elected and Official Mayor Council City Manager(a) City Clerk City Attorney Sub-Total Neighborhood Services City Court Community Services Fire Library Neighborhood Resources Parks and Recreation Tucson City Golf Police Independent Police Auditor Office of the Public Defender Sub-Total Environment and Development Development Services Comprehensive Planning Task Force Solid Waste Management Transportation Tucson Water Environmental Management Historic Preservation Office Zoning Examiner Sub-Total Strategic Initiatives Tucson Convention Center Office of Economic Development Intergovernmental Relations Tucson - Mexico Trade Office Sub-Total FY 1993 FY 1996 FY 1997 7.00 29.00 19.80 (5) 39.50 (5) 100.00 7.00 29.00 19.20 40.50 107.00 7.50 32.50 23.00 40.50 108.00 8.00 35.50 22.00 73.00 (9) 108.00 8.00 35.50 21.00 44.50 108.00 8.00 36.50 22.00 69.50 (9) 112.00 9.50 43.50 23.75 43.00 113.00 9.50 43.50 24.25 (24) 63.50 (9) 114.00 9.50 43.50 22.25 41.00 112.00 9.50 43.50 19.25 58.50 (9) 105.00 190.00 195.30 202.70 211.50 246.50 217.00 248.00 232.75 254.75 228.25 235.75 117.80 148.60 470.00 239.25 5.00 453.00 103.00 1,029.00 -031.50 127.80 (1) 153.20 459.50 238.75 5.00 508.75 (2) 102.00 1,043.00 (3) -032.50 133.80 158.90 459.50 241.75 5.00 580.00 (6) 104.00 1,048.00 -032.50 138.80 158.25 516.50 243.75 5.00 577.00 103.00 1,102.00 -033.00 138.80 159.25 519.50 253.00 5.00 596.00 103.00 1,146.00 (8) -031.00 141.30 169.00 569.00 (10) 253.00 7.00 631.50 103.00 1,154.00 (11) 2.00 31.00 145.30 167.00 528.00 265.50 7.00 685.75 (12) 103.50 1,191.50 (13) 2.00 31.00 141.80 160.00 539.00 265.50 11.00 720.25 (14), (15) 96.50 1,266.50 (16) 2.00 32.50 143.80 157.00 570.00 299.50 11.00 718.75 (20) 163.25 (21) 1,355.00 (22) 2.00 32.50 143.80 155.00 571.00 287.25 (25) 11.00 677.50 (26) 169.00 1,362.00 (27), (28) 2.00 33.50 138.30 157.00 572.00 287.75 21.00 (29), (30) 665.00 153.75 1,356.00 2.00 33.50 137.30 153.00 572.00 286.75 (33) 19.00 633.75 153.75 1,352.50 2.00 33.50 2,597.15 2,670.50 2,763.45 2,877.30 2,951.55 3,060.80 3,126.55 3,235.05 3,452.80 3,412.05 3,386.30 3,343.55 64.00 46.50 -0212.00 579.00 4.00 -02.00 62.50 46.50 -0220.50 577.00 8.00 -02.00 64.00 45.50 223.00 376.50 584.00 9.00 -02.00 64.00 46.50 225.00 378.50 588.00 9.00 -02.00 66.00 46.50 225.00 384.00 589.00 10.75 -02.00 66.00 48.50 235.00 386.50 588.00 11.75 1.00 2.00 907.50 916.50 1,290.00 1,304.00 1,313.00 1,323.25 1,338.75 53.00 9.33 2.00 -0- 55.00 12.00 2.25 -0- 55.00 16.00 2.25 -0- 58.00 18.00 2.75 -0- 58.00 18.10 2.75 -0- 62.00 22.10 2.00 -0- 61.00 23.75 2.00 -0- 64.33 69.25 73.25 78.75 78.85 86.10 86.75 5.50 28.50 20.50 40.50 102.50 197.50 FY 1994 7.00 29.00 15.50 (1) 40.50 98.00 FY 1995 64.00 (5) 46.50 224.00 (7) 366.50 (7) 577.00 10.00 -02.00 FY 1998 E-39 FY 1999 FY 2000 72.00 49.50 240.00 401.50 (15), (17) 588.00 13.60 1.00 2.00 1,367.60 FY 2001 100.00 (20) 45.50 (20) 243.00 395.50 (20) 588.00 15.85 2.00 2.00 FY 2002 101.00 47.50 (24) 244.00 399.50 590.00 15.00 2.00 2.00 FY 2003 111.00 (30), (31), (32) 29.50 (32) 236.00 399.50 590.00 15.00 2.00 2.00 FY 2004 113.00 (34) 38.50 (33) 237.00 393.50 (34) 589.00 (33) 15.00 -0- (33) 2.00 1,391.85 1,401.00 1,385.00 1,388.00 61.00 14.00 (18) 2.00 5.00 (18) 63.50 15.50 2.00 5.00 63.00 15.50 2.00 5.00 60.00 17.50 2.00 6.00 56.25 14.50 2.00 6.00 82.00 86.00 85.50 85.50 78.75 TEN-YEAR ADOPTED COMPARISON TOTAL CITY STAFFING DEPARTMENTS FY 1993 Support Services Budget and Research Finance Human Resources Information Technology(a) Operations Procurement Equal Opportunity Office 28.00 134.00 24.00 74.00 685.00 73.00 4.00 Sub-Total Non-Departmental General Expense Sub-Total Total FY 1994 28.00 130.00 (4) 28.00 (4) 77.50 685.00 72.00 8.00 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 28.00 134.00 29.00 (5) 78.00 332.00 (7) 72.00 8.00 28.00 133.00 29.00 79.50 335.00 72.00 9.00 27.00 139.00 28.00 82.42 337.00 75.00 9.00 26.00 138.00 32.00 (11) 82.42 341.00 75.00 9.00 26.00 143.00 32.00 92.12 350.00 76.00 9.00 26.00 146.00 32.00 94.12 365.00 (19) 77.00 9.00 26.00 150.25 34.00 88.12 377.00 81.00 10.00 24.00 (24) 151.25 31.00 (24), (27) 91.12 377.00 82.00 10.50 24.00 145.00 29.00 84.66 (31) 370.00 77.00 9.00 22.00 146.00 25.00 81.16 350.00 75.00 8.00 766.37 766.87 738.66 707.16 1,022.00 1,028.50 681.00 685.50 697.42 703.42 728.12 749.12 -0- -0- -0- -0- -0- -0- -0- -0- 3.00 (23) 5.50 (24) 5.75 4.75 -0- -0- -0- -0- -0- -0- -0- -0- 3.00 5.50 5.75 4.75 4,788.48 4,874.75 5,003.00 5,148.25 5,252.32 5,420.07 5,497.17 5,681.77 5,932.77 5,925.67 5,829.46 5,757.96 E-40 TEN-YEAR ADOPTED COMPARISON TOTAL CITY STAFFING WITH FISCAL YEARS 2003 AND 2004 (a) In Fiscal Year 2002, the offices of the City Manager were reflected in various service teams based on the functions of each office. In Fiscal Year 2003, additional changes were made to the location of the Grants Office, which moved back into City Manager, and Community Relations, which became part of Information Technology. For comparative purposes, staff are shown for all years in the new locations. (1) In Fiscal Year 1994, the Hearing Office was transferred from City Manager to City Court (8 positions). (2) In Fiscal Year 1994, the conversion of fee class instructors in the Parks and Recreation Department to employee status by agreement with the Internal Revenue Service resulted in a net increase of 25 positions. Five positions were deleted from Hi-Corbett Field operations concessions organization due to the Colorado Rockies assuming responsibility for spring training operations. (3) In Fiscal Year 1994, the Tucson Police Department added 10 commissioned officers for the gang unit. (4) In Fiscal Year 1994, Employee Benefits was transferred from the Finance Department to the Human Resources Department (3 positions). (5) In Fiscal Year 1995, 3 positions were transferred from City Manager to Development Services and 1 position from the City Manager to Human Resources. Additionally, 2 positions were transferred from Human Resources and 1 position from City Clerk to City Manager. (6) In Fiscal Year 1995, the Parks and Recreation Department added 38.25 recreation positions for youth-related programs and 33 positions for the new El Pueblo pool and increased hours at other pools. (7) In Fiscal Year 1994, at the direction of Mayor and Council, the Department of Solid Waste Management was created with 220 positions. These positions were transferred from the Department of Operations. In addition, the Streets Division was transferred to the Transportation Department from the Department of Operations with 139 positions. (8) In Fiscal Year 1997, the Tucson Police Department added 24 community service officers for the new Community Service Officer Program. (9) Beginning in Fiscal Year 1998, non-permanent positions for city elections are added every other year to the City Clerk’s Office as follows: 29.5 in Fiscal Year 1998, 25 in Fiscal Year 2000, and 20.5 in Fiscal Years 2002 and 2004. (10) In Fiscal Year 1998, the Fire Department added 49.5 positions: 34 positions for annexations, 7 positions for a new paramedic unit, and 8.5 positions for a second vehicle maintenance shift and for the public safety academy. (11) In Fiscal Year 1998, 3 positions were transferred from the Tucson Police Department to the Human Resources Department. (12) In Fiscal Year 1999, the Parks and Recreation Department added 54.25 positions: 32.50 positions for the Clements Center and Pool, 3.50 positions for the Quincie Douglas Center, 14.50 maintenance workers for other new or expanded facilities and parks, and 3.75 positions for expanded programs. (13) In Fiscal Year 1999, at the direction of the City Manager, 31 positions were added to the Tucson Police Department to support community policing. (14) In Fiscal Year 2000, the Parks and Recreation Department added 27 positions for new grants. (15) In Fiscal Year 2000, the Parks and Recreation Department transferred 9 Highway User Revenue Fund (HURF) funded positions to the Transportation Department for median island maintenance, and Transportation transferred 1 position to Parks and Recreation for sports field lighting maintenance. (16) In Fiscal Year 2000, the Tucson Police Department added 50 positions for the Universal Cops Hiring Grant. (17) In Fiscal Year 2000, Van Tran’s Americans with Disabilities Act Compliance organization was transferred to the new Transit Division, with the existing 4 positions being converted to city employees. E-41 TEN-YEAR ADOPTED COMPARISON TOTAL CITY STAFFING WITH FISCAL YEARS 2003 AND 2004 (18) In Fiscal Year 2000, 4 positions were transferred from Economic Development to the Tucson-México Project and 1 position was added. (19) In Fiscal Year 2000, the Department of Operations added 5 positions for maintenance of new facilities and 3 positions for maintenance of the growing vehicle fleet. (20) In Fiscal Year 2001, 17 positions were transferred to Development Services for the consolidation of Plans Review: 2 from the Parks and Recreation Department, 6 from the Comprehensive Planning Task Force, and 9 from the Transportation Department. (21) In Fiscal Year 2001, Tucson City Golf added 66.75 positions for the Mayor and Council approved Tucson City Golf Business Plan. (22) In Fiscal Year 2001, the Tucson Police Department added 56 positions for the Universal Cops Hiring Grant. (23) In Fiscal Year 2001, 3 grant-funded positions were added to the General Expense budget for water conservation projects at the A-7 Ranch. (24) In Fiscal Year 2002, 3.5 positions were transferred from the City Manager’s Office: 2.5 to the Non-Departmental budget to support Rio Nuevo and 1 project manager to the Comprehensive Planning Department. Additionally, 2 positions were transferred from Budget and Research and 1 from the Human Resources Department to the City Manager’s Office. (25) In Fiscal Year 2002, the Library eliminated 12.25 positions: 10.75 due to the elimination of Sunday library services at Woods, Mission, Miller-Golf Links, and Green Valley branches, 1.5 due to revised implementation of programs. (26) In Fiscal Year 2002, the Parks and Recreation Department eliminated 49.25 positions: 11 due to the completion of grants, 9 from the privatization of zoo concessions, and 29.25 from reductions in HICO/MIDCO, KIDCO, fee classes and summer aquatics programs. The department also added 8 positions: 4 for grounds maintenance, 2 for capital project management, and 2 for a new KIDCO site. (27) In Fiscal Year 2002, 2 positions were transferred from the Human Resources Department to the Tucson Police Department. (28) In Fiscal Year 2002, the Tucson Police Department added 2 grant-funded positions. (29) During Fiscal Year 2002 Neighborhood Resources, which was previously Citizen and Neighborhood Services, was established as a department. This reorganization resulted in a net reduction of one position including the transfer of a project manager position (reclassified to an administrator position) from the Comprehensive Planning Task Force. (30) The code enforcement and slum abatement and blight enforcement response staff were transferred in to Neighborhood Resources from Development Service Department. (31) In Fiscal Year 2002, 3 positions in Information Technology were transferred to Development Services. (32) As part of a citywide reorganization, Zoning Administration was formed in Development Services from staff transferred in from the Comprehensive Planning Task Force. (33) In Fiscal Year 2003, 9 positions were transferred to the Comprehensive Planning Task Force as part of consolidating comprehensive planning functions: Transportation 4; Historic Preservation 2; Water 1; and Annexation 2. (34) Two positions transferred from Transportation to Development Services as part of consolidating development review. Note: For Fiscal Year 2004, 139.50 positions have been eliminated due to budget reductions. Please see section B, page B-53 for this and other adjustments to Fiscal Year 2004. E-42 FULL-TIME EQUIVALENT POSITIONS PERMANENT AND NON-PERMANENT FISCAL YEARS 2003 AND 2004 Fiscal Year 2003 NonPermanent Permanent ELECTED AND OFFICIAL Mayor and Council City Manager City Clerk City Attorney Sub-Total NEIGHBORHOOD SERVICES City Court Community Services Fire Library Neighborhood Resources Parks and Recreation Tucson City Golf Police Independent Police Auditor Public Defender Sub-Total ENVIRONMENT AND DEVELOPMENT Development Services Comprehensive Planning Task Force Solid Waste Management Transportation Tucson Water Environmental Management Historic Preservation Office Zoning Examiner Sub-Total Total Fiscal Year 2004 NonPermanent Permanent Total 53.00 22.25 38.50 112.00 -0-02.50 -0- 53.00 22.25 41.00 112.00 53.00 19.25 35.50 105.00 -0-023.00 -0- 53.00 19.25 58.50 105.00 225.75 2.50 228.25 212.75 23.00 235.75 138.30 157.00 572.00 235.50 21.00 400.50 43.00 1,350.00 2.00 33.50 -0-0-052.25 -0264.50 110.75 6.00 -0-0- 138.30 157.00 572.00 287.75 21.00 665.00 153.75 1,356.00 2.00 33.50 137.30 153.00 572.00 233.50 19.00 384.00 43.00 1,346.50 2.00 33.50 -0-0-053.25 -0249.75 110.75 6.00 -0-0- 137.30 153.00 572.00 286.75 19.00 633.75 153.75 1,352.50 2.00 33.50 2,952.80 433.50 3,386.30 2,923.80 419.75 3,343.55 110.00 29.50 236.00 398.00 590.00 15.00 2.00 2.00 1.00 -0-01.50 -0-0-0-0- 111.00 29.50 236.00 399.50 590.00 15.00 2.00 2.00 112.00 38.50 237.00 392.00 589.00 15.00 -02.00 1.00 -0-01.50 -0-0-0-0- 113.00 38.50 237.00 393.50 589.00 15.00 -02.00 1,382.50 2.50 1,385.00 1,385.50 2.50 1,388.00 E-43 FULL-TIME EQUIVALENT POSITIONS PERMANENT AND NON-PERMANENT FISCAL YEARS 2003 AND 2004 Fiscal Year 2003 NonPermanent Permanent STRATEGIC INITIATIVES Tucson Convention Center Economic Development Intergovernmental Relations Tucson-Mexico Trade Office Sub-Total SUPPORT SERVICES Budget and Research Finance Human Resources Information Technology Operations Procurement Equal Opportunity Office Sub-Total NON-DEPARTMENTAL General Expense Sub-Total Total Total Fiscal Year 2004 NonPermanent Permanent Total 46.00 14.00 2.00 6.00 14.00 3.50 -0-0- 60.00 17.50 2.00 6.00 43.00 11.00 2.00 6.00 13.25 3.50 -0-0- 56.25 14.50 2.00 6.00 68.00 17.50 85.50 62.00 16.75 78.75 24.00 144.00 29.00 82.50 368.00 77.00 9.00 -01.00 -02.16 2.00 -0-0- 24.00 145.00 29.00 84.66 370.00 77.00 9.00 22.00 145.00 25.00 79.50 348.00 75.00 8.00 -01.00 -01.66 2.00 -0-0- 22.00 146.00 25.00 81.16 350.00 75.00 8.00 733.50 5.16 738.66 702.50 4.66 707.16 5.75 -0- 5.75 4.75 -0- 4.75 5.75 -0- 5.75 4.75 -0- 4.75 5,368.30 461.16 5,829.46 5,291.30 466.66 5,757.96 E-44 FULL-TIME EQUIVALENT POSITIONS GENERAL PURPOSE FUNDS AND OTHER FUNDS FISCAL YEARS 2003 AND 2004 Fiscal Year 2003 ELECTED AND OFFICIAL Mayor and Council City Manager City Clerk City Attorney Sub-Total NEIGHBORHOOD SERVICES City Court Community Services Fire Library Neighborhood Resources Parks and Recreation Tucson City Golf Police Independent Police Auditor Public Defender Sub-Total ENVIRONMENT AND DEVELOPMENT Development Services Comprehensive Planning Task Force Solid Waste Management Transportation Tucson Water Environmental Management Historic Preservation Office Zoning Examiner Sub-Total General Purpose Other 53.00 22.25 41.00 101.00 Fiscal Year 2004 Total General Purpose Other Total -0-0-011.00 53.00 22.25 41.00 112.00 53.00 19.25 58.50 94.00 -0-0-011.00 53.00 19.25 58.50 105.00 217.25 11.00 228.25 224.75 11.00 235.75 136.80 9.79 570.00 143.88 18.00 623.75 -01,319.50 2.00 33.50 1.50 147.21 2.00 143.87 3.00 41.25 153.75 36.50 -0-0- 138.30 157.00 572.00 287.75 21.00 665.00 153.75 1,356.00 2.00 33.50 135.80 8.15 570.00 143.38 16.00 592.50 -01,317.50 2.00 33.50 1.50 144.85 2.00 143.37 3.00 41.25 153.75 35.00 -0-0- 137.30 153.00 572.00 286.75 19.00 633.75 153.75 1,352.50 2.00 33.50 2,857.22 529.08 3,386.30 2,818.83 524.72 3,343.55 111.00 29.50 236.00 86.00 -015.00 2.00 2.00 -0-0-0313.50 590.00 -0-0-0- 111.00 29.50 236.00 399.50 590.00 15.00 2.00 2.00 113.00 38.50 237.00 63.00 -015.00 -02.00 -0-0-0330.50 589.00 -0-0-0- 113.00 38.50 237.00 393.50 589.00 15.00 -02.00 481.50 903.50 1,385.00 468.50 919.50 1,388.00 E-45 FULL-TIME EQUIVALENT POSITIONS GENERAL PURPOSE FUNDS AND OTHER FUNDS FISCAL YEARS 2003 AND 2004 Fiscal Year 2003 STRATEGIC INITIATIVES Tucson Convention Center Economic Development Intergovernmental Relations Tucson-Mexico Trade Office Sub-Total SUPPORT SERVICES Budget and Research Finance Human Resources Information Technology Operations Procurement Equal Opportunity Office Sub-Total NON-DEPARTMENTAL General Expense Sub-Total Total General Purpose Other 60.00 14.00 2.00 6.00 Fiscal Year 2004 Total General Purpose Other -03.50 -0-0- 60.00 17.50 2.00 6.00 56.25 11.00 2.00 6.00 -03.50 -0-0- 56.25 14.50 2.00 6.00 82.00 3.50 85.50 75.25 3.50 78.75 24.00 131.00 29.00 84.66 263.00 77.00 9.00 -014.00 -0-0107.00 -0-0- 24.00 145.00 29.00 84.66 370.00 77.00 9.00 22.00 133.00 25.00 81.16 255.00 75.00 8.00 -013.00 -0-095.00 -0-0- 22.00 146.00 25.00 81.16 350.00 75.00 8.00 617.66 121.00 738.66 599.16 108.00 707.16 -0- 5.75 5.75 -0- 4.75 4.75 -0- 5.75 5.75 -0- 4.75 4.75 4,255.63 1,573.83 5,829.46 4,186.49 1,571.47 5,757.96 E-46 Total Fiscal Year 2004 City of Tucson Annual Salary Scale Exempt Schedule 822 821 820 819 818 817 816 815 814 813 812 811 810 Minimum Midpoint Maximum 91,677 81,182 72,228 64,566 57,991 52,335 47,459 43,244 39,594 36,429 33,682 31,294 29,220 122,847 108,784 96,786 86,518 77,708 70,129 63,594 57,946 53,056 48,816 45,134 41,935 39,155 154,018 136,387 121,344 108,471 97,425 87,923 79,730 72,649 66,518 61,202 56,586 52,575 49,090 Police Exempt Schedule 323 322 321 320 Minimum Midpoint Maximum 117,450 77,937 70,649 70,194 135,257 94,939 84,259 76,932 153,065 111,941 97,868 83,671 E-47 Fiscal Year 2004 City of Tucson Annual Salary Scale Fire Exempt Schedule 423 422 421 420 Minimum Midpoint Maximum 117,450 78,418 71,085 71,719 135,257 95,525 84,778 77,953 153,065 112,632 98,472 84,186 Legal Exempt Schedule 619 618 617 616 615 614 613 612 611 610 Minimum Midpoint Maximum 79,548 71,023 63,555 56,998 51,234 46,156 41,675 37,715 34,208 31,098 105,401 94,106 84,210 75,523 67,885 61,157 55,220 49,972 45,325 41,205 131,254 117,189 104,865 94,048 84,536 76,158 68,764 62,229 56,443 51,311 E-48 Fiscal Year 2004 City of Tucson Annual Salary Scale Information Technology Exempt Schedule 719 718 717 716 715 714 713 712 Minimum Midpoint Maximum 77,559 68,485 60,473 53,399 47,678 43,051 39,316 36,320 102,765 90,743 80,127 70,754 63,174 57,042 52,094 48,124 127,971 113,000 99,782 88,108 78,670 71,034 64,871 59,928 Minimum Midpoint Maximum 43,244 39,594 26,133 22,559 21,182 20,031 57,947 53,056 33,386 28,820 27,060 25,589 72,649 66,518 40,638 35,081 32,938 31,147 Golf and Ranch Exempt Schedule 515 514 505 503 502 501 Range 501 and 502 receive 50% earnings from golf lesson revenue. Range 503 and 505 receive $300 in-kind pay per year. Range 514 receive 100% earnings from golf lesson revenue up to $12,000 per year. Range 515 receive 100% earnings from golf lesson revenue up to $5,000 per year. E-49 Fiscal Year 2004 City of Tucson Annual Salary Scale Non-Exempt Schedule Range No. Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 Step 12 Step 13 Step 14 910 911 912 913 914 915 916 917 918 919 920 19,076 20,031 21,182 22,559 24,196 26,133 28,421 31,123 34,315 38,091 42,569 20,031 21,032 22,240 23,687 25,406 27,440 29,842 32,679 36,031 39,997 44,698 21,032 22,084 23,353 24,872 26,677 28,812 31,334 34,313 37,832 41,996 46,933 22,084 23,188 24,520 26,115 28,010 30,253 32,901 36,029 39,724 44,096 49,279 23,188 24,347 25,746 27,421 29,410 31,766 34,547 37,831 41,710 46,300 51,743 24,347 25,564 27,033 28,792 30,881 33,353 36,274 39,722 43,795 48,616 54,330 24,956 26,202 27,710 29,512 31,653 34,188 37,180 40,715 44,890 49,830 55,689 25,579 26,857 28,403 30,250 32,444 35,042 38,110 41,733 46,012 51,077 57,081 26,218 27,528 29,112 31,006 33,255 35,918 39,063 42,776 47,163 52,354 58,508 E-50 26,874 28,217 29,840 31,781 34,087 36,816 40,040 43,845 48,342 53,663 59,971 27,546 28,922 30,586 32,575 34,939 37,736 41,040 44,941 49,550 55,003 61,470 28,235 29,646 31,351 33,389 35,812 38,680 42,066 46,065 50,789 56,379 63,007 28,941 30,387 32,135 34,225 36,708 39,647 43,118 47,217 52,059 57,788 64,582 29,664 31,147 32,938 35,081 37,626 40,638 44,196 48,397 53,361 59,234 66,196 Fiscal Year 2004 City of Tucson Annual Salary Scale Police Non-Exempt Schedule Range No. Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 31,993 37,225 39,086 41,040 43,092 33,592 39,086 41,040 43,092 45,248 35,272 41,040 43,092 45,248 47,510 37,036 43,092 45,248 47,510 49,885 38,887 45,248 47,510 49,885 52,380 54,998 57,748 40,832 47,510 49,885 52,380 54,998 57,748 60,635 42,874 49,885 52,380 54,998 57,748 60,635 63,667 45,018 52,380 54,998 57,748 60,635 63,667 66,851 Step 7 Step 8 Step 9 Step 10 34,788 36,512 38,368 40,283 42,299 43,365 44,416 36,513 38,368 40,282 42,299 44,416 45,527 46,623 36,875 38,599 40,456 42,370 44,385 45,453 46,504 47,807 48,961 49,894 51,048 55,332 56,690 57,419 58,778 61,971 63,493 45,527 47,807 47,614 50,174 52,261 58,093 60,180 65,064 351 302 303 304 305 306 307 Fire Non-Exempt Schedule Range No. 401 402 403 404 405 406 407 408 Step 1 Step 2 Step 3 Step 4 Step 5 E-51 Step 6 46,623 48,961 48,710 51,402 53,489 59,509 61,597 66,651 47,807 50,174 49,894 52,687 54,774 60,985 63,072 68,304 Fiscal Year 2004 City of Tucson Classified Annual Salary Scale Hourly (Seasonal or Intermittent) Schedule Non-Exempt Code 0201 0202 0203 1001 1403 2256 3005 3021 3201 3302 3303 3304 3306 3311 3313 3316 3323 3401 7012 Class Title Hourly Rate Election Technician Senior Election Technician Election Specialist City Youth Worker General Maintenance Trainee/Worker Camera Operator Concession Worker Short Order Cook Golf Host Lifeguard Water Safety Instructor/Senior Lifeguard Seasonal Swimming Pool Supervisor Seasonal Aquatics Program Supervisor Seasonal Recreation Worker Seasonal Senior Recreation Worker Seasonal Class Instructor Seasonal Program Coordinator Seasonal Center Attendant Library Program Instructor E-52 $10.14 11.14 16.25 5.88 8.35 11.42 5.74 7.73 9.89 8.12 8.57 9.23 10.56 7.03 7.84 7.47 9.92 6.23 13.28 - $13.93 15.30 22.33 - 9.66 17.14 7.09 10.00 - 17.27 - 17.80 CAPITAL BUDGET SUMMARY Capital improvement projects are assigned to city departments to ensure proper project management. The following two tables summarize the Fiscal Year 2004 capital budget by service area and by funding type. For a breakout by individual departments and funding sources, see Tables I and II on pages F-4 and F-5. Fiscal Year 2004 Capital Budget Summary of Expenditures ($000s) Neighborhood Services Environment and Development Support Services Non-Departmental Total Carryforward $ 30,521.7 44,918.7 806.8 10,892.9 New Funding $ 31,817.8 130,939.9 5,121.6 7,807.4 Total $ 62,339.5 175,858.6 5,928.4 18,700.3 $ 87,140.1 $ 175,686.7 $ 262,826.8 Fiscal Year 2004 Capital Budget Summary of Funding Sources ($000s) General Purpose Funds Grants and Contributions City Bond Funds Enterprise Funds Other Local Funds Non-City Funds Total Carryforward $ 3,336.2 31,009.4 27,895.2 6,343.9 18,026.4 529.0 New Funding $ 4,395.0 63,973.8 42,750.8 47,734.0 16,224.1 609.0 $ 87,140.1 $ 175,686.7 $ Total 7,731.2 94,983.2 70,646.0 54,077.9 34,250.5 1,138.0 $ 262,826.8 DEPARTMENT PROGRAMS The following section summarizes the Fiscal Year 2004 department programs within each service area. Project listings for each department begin on page F-8. Neighborhood Services Projects in the Neighborhood Services category include those managed by City Court, Community Services, Fire, Library, Neighborhood Resources, Parks and Recreation, Tucson City Golf, and Police. City Court. Initial work on structural improvements is funded in City Court's capital budget of $0.3 million. The project will include partial demolition of the adjacent parking garage and structural reinforcement of the area housing mechanical systems for the court facility. F-1 Community Services. Three projects, totaling $2.3 million, are funded in Community Services' capital budget: South Park HOPE VI - Acquisition, Robert F. Kennedy Homes Revitalization, and completion of the Pascua Neighborhood Center Senior/Youth Building. Fire. Fire's $9.2 million budget includes the following: work on three fire stations (completion of Station 6, construction of Station 20, and design of Station 21), improvements to support facilities, and purchase of upgraded mobile data terminals for fire vehicles. Library. Four projects will be completed with the $2.5 million budget: George Miller-Golf Links Library Expansion, Main Library Plaza Improvements, Midtown Library and Learning Center, and Quincie Douglas Library. Neighborhood Resources. Back to Basics projects continue with $10.8 million. Parks and Recreation. Park's capital budget of $31.3 million contains 37 park improvement projects, ranging from the construction of new facilities to the replacement of playground equipment. The five largest projects for Fiscal Year 2004 are the Adaptive Recreation Center, Lincoln Park/William Clements Center Expansion, Quincie Douglas Center Pool Facility, Reid Park Renovation, and El Pueblo Center Expansion. Tucson City Golf. Two projects are funded for a total of $2 million. Improvements to the Fred Enke Golf Course will be completed for $0.3 million. Renovations at the Trini Alvarez Golf Course will be constructed for $1.7 million in support of the city's First Tee program for junior golfers. Police. Two projects, totaling $4 million, are included in Police's capital budget: Land acquisition and facilities improvements, and initial work on a new police substation. Environment and Development The Environment and Development category contains projects managed by the following departments and office: Solid Waste Management, Transportation, Tucson Water, and Environmental Management. Solid Waste Management. The department's budget of $11.8 million provides funding for ten projects. Five of those projects fund closure and monitoring of closed landfills, principally Mullins Landfill. The other five projects are at Los Reales Landfill, the city's only operating disposal facility. Transportation: This department's capital budget totals $103.3 million in five program areas: Streets, Drainage, Street Lighting, Traffic Signals, and Public Transit. The two largest program areas are Streets at $42.8 million and Public Transit at $34.9 million. The five largest Street project budgets are for the 4th Avenue Underpass, road resurfacing and rehabilitation, the Stone/Speedway gateway, intersection improvements, and 6th Avenue Improvement. The five largest Public Transit project budgets are for the Downtown Intermodal Center, replacement buses, the new Sun Tran Bus Storage and Maintenance Facility, the Transit alternatives analysis, and improvements to Transit Headquarters. Tucson Water. Tucson Water's budget totals $52 million: $40.7 million for the Potable Water System and $11.3 million for the Reclaimed Water System. The five largest Potable Water System project budgets are for the Old Nogales Highway Transmission Main, main replacements during road improvement projects, Clearwater Renewable Resource Facility, Hayden-Udall Plant Rehabilitation, and control panel replacements. The five largest Reclaimed Water System project budgets are for reclaimed transmission mains in 18th Street/10th Avenue, Campbell/Drexel, and Golf Links/Craycroft; chlorine system improvements; and construction of a reclaimed well and recovery pipeline along the Santa Cruz River. Environmental Management. Ten projects totaling $8.7 million are included in the Environmental Management capital budget for investigations and remediations at landfill sites. The three largest project budgets are for remediations at the Broadway-Pantano site, the Price Service Center, and the Tumamoc Landfill Soil/Groundwater Assessment. F-2 Support Services The Support Services category contains projects managed by the Department of Operations. Operations. Two projects are funded in Operations' $5.9 million capital budget: initial work on the Emergency Communications System and Facility, and completion of Americans with Disabilities Act (ADA) modifications at Parks and Recreation facilities. Non-Departmental The Non-Departmental category contains projects budgeted as part of General Expense, because they aren't associated with a specific department. General Expense. This budget of $18.7 million provides for four projects: completion of the Midtown Multipurpose Facility, acquisition of the Starr Pass Parking Garage, construction of the City Hall Annex Garage, and purchase of new web-based financial and human resources systems. ATTACHED TABLES Table I Table II Table III Capital Budget Summary by Department Capital Budget Summary by Funding Source Capital Budget Summary of Operating Budget Impacts F-3 TABLE I CAPITAL BUDGET SUMMARY BY DEPARTMENT Adopted Fiscal Year 2004 Carry New Forward Funding Total Service Area/Department Neighborhood Services City Court Community Services Fire Library Neighborhood Resources Parks and Recreation Tucson City Golf Police Sub-Total $ Environment and Development Solid Waste Management Transportation Tucson Water Environmental Management Sub-Total Support Services Operations Sub-Total Non-Departmental General Expense Sub-Total Total F-4 -0- $ 250,000 23,200 2,266,900 2,434,800 6,754,700 2,464,000 -05,705,000 5,075,000 19,172,100 12,173,700 438,900 1,610,000 283,700 3,687,500 30,521,700 31,817,800 $ 250,000 2,290,100 9,189,500 2,464,000 10,780,000 31,345,800 2,048,900 3,971,200 62,339,500 8,876,300 26,210,500 5,905,000 3,926,900 44,918,700 2,957,000 77,055,000 46,124,000 4,803,900 130,939,900 11,833,300 103,265,500 52,029,000 8,730,800 175,858,600 806,800 806,800 5,121,600 5,121,600 5,928,400 5,928,400 10,892,900 10,892,900 7,807,400 7,807,400 18,700,300 18,700,300 $ 87,140,100 $ 175,686,700 $ 262,826,800 TABLE II CAPITAL BUDGET SUMMARY BY FUNDING SOURCE Adopted Fiscal Year 2004 Carry New Forward Funding Total Fund Category/Fund General Purpose Funds General Fund Mass Transit Fund: General Fund Transfer Sub- Total $ 2,406,800 $ 929,400 3,336,200 3,074,400 1,320,600 4,395,000 Grants and Contributions Capital Agreement Fund Capital Agreement Fund: ADOT Capital Agreement Fund: PAG Capital Agreement Fund: Pima County Bonds Capital Agreement Fund: Pima County Contribution Community Development Block Grant Fund Comprehensive Housing Grants Federal Highway Administration Grants HOPE VI Grants Highway User Revenue Fund Mass Transit Fund: Federal Grants Miscellaneous Non-Federal Grants Sub- Total 1,984,000 -01,191,900 5,999,700 206,000 1,568,200 -0-0-06,514,000 13,545,600 -031,009,400 4,848,200 500,000 5,812,000 3,426,200 43,700 1,275,000 21,400 22,978,000 2,245,500 3,879,000 18,025,800 919,000 63,973,800 6,832,200 500,000 7,003,900 9,425,900 249,700 2,843,200 21,400 22,978,000 2,245,500 10,393,000 31,571,400 919,000 94,983,200 City Bond Funds 1994 General Obligation Bond Funds 1994 General Obligation Bond Funds - Interest 1994 Street and Highway Revenue Bond Funds 2000 General Obligation Bond Funds 2000 Street and Highway Revenue Bond Funds Sub- Total 1,118,500 649,900 192,700 23,360,100 2,574,000 27,895,200 171,800 -0-034,156,500 8,422,500 42,750,800 1,290,300 649,900 192,700 57,516,600 10,996,500 70,646,000 Enterprise Funds 2000 Water Revenue Bond Funds Central Arizona Project Reserve Fund Golf Course Fund Golf Course Fund: Certificates of Participation Tucson Water Revenue and Operations Fund Sub- Total 5,905,000 -0100,000 338,900 -06,343,900 25,301,000 10,000 1,610,000 -020,813,000 47,734,000 31,206,000 10,000 1,710,000 338,900 20,813,000 54,077,900 F-5 $ 5,481,200 2,250,000 7,731,200 TABLE II CAPITAL BUDGET SUMMARY BY FUNDING SOURCE Adopted Fiscal Year 2004 Carry New Forward Funding Total Fund Category/Fund Other Local Funds General Fund: Certificates of Participation General Fund: Mandate Reserves General Fund: Restricted General Fund: Restricted Trust Reserves Solid Waste Management Fund: Mandate Reserves Sub- Total $ 5,786,700 858,000 -06,650,000 4,731,700 18,026,400 Non-City Funds Special Assessments Construction Fund Sub- Total Total F-6 $ 11,187,100 $ 16,973,800 1,310,000 2,168,000 1,250,000 1,250,000 -06,650,000 2,477,000 7,208,700 16,224,100 34,250,500 529,000 529,000 609,000 609,000 1,138,000 1,138,000 $ 87,140,100 $ 175,686,700 $ 262,826,800 TABLE III CAPITAL BUDGET SUMMARY OF OPERATING BUDGET IMPACTS Service Area/Department Projected FY 2005 FY 2004 Neighborhood Services Fire Library Parks and Recreation Police Sub-Total $ Environment and Development Transportation Tucson Water Environmental Management Sub-Total 4,728,800 1,205,000 3,077,500 -09,011,300 -09,979,900 890,000 10,869,900 1,491,000 10,471,100 1,140,000 13,102,100 170,000 170,000 351,000 351,000 $ 12,152,100 $ 22,464,400 Non-Departmental General Expense Sub-Total Total 969,200 $ -0143,000 -01,112,200 Source of Funds Summary General Purpose Funds General Fund Library Fund: General Fund Transfer Mass Transit Fund: General Fund Transfer Sub-Total $ Grants and Contributions Highway User Revenue Fund Library Fund: Pima County Contribution Sub-Total Enterprise Funds Tucson Water Revenue and Operations Fund Sub-Total Total F-7 2,172,200 $ 9,297,300 -0602,500 -01,434,100 2,172,200 11,333,900 -0-0-0- 56,900 602,500 659,400 9,979,900 9,979,900 10,471,100 10,471,100 $ 12,152,100 $ 22,464,400 City Court Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name City Court Structural Improvements Total Source of Funds Summary General Fund: Restricted Total F-8 $ -0- $ 250,000 $ 250,000 $ -0- 250,000 $ 250,000 $ -0- $ 250,000 $ 250,000 $ -0- 250,000 $ 250,000 $ $ Community Services Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Pascua Neighborhood Center Senior/Youth Building Robert F. Kennedy Homes Revitalization South Park HOPE VI - Acquisition Total Source of Funds Summary Community Development Block Grant Fund Comprehensive Housing Grants HOPE VI Grants Total F-9 $ 23,200 -0-0- $ -0- $ 23,200 92,400 92,400 2,174,500 2,174,500 $ 23,200 $ 2,266,900 $ 23,200 -0-0- $ $ 23,200 $ 2,266,900 $ 2,290,100 -0- $ 23,200 21,400 21,400 2,245,500 2,245,500 $ 2,290,100 Fire Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Fire Station 6 Mobile Data Terminal Upgrades New Fire Stations - Annexations and Infill Support Facility Improvements $ Total 693,800 850,000 -0891,000 $ 2,434,800 Source of Funds Summary 2000 General Obligation Bond Funds General Fund: Certificates of Participation $ Total -0- $ 693,800 -0850,000 5,589,700 5,589,700 1,165,000 2,056,000 $ 6,754,700 $ 9,189,500 891,000 $ 6,754,700 $ 7,645,700 1,543,800 -01,543,800 $ 2,434,800 F-10 $ $ 6,754,700 $ 9,189,500 Library Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name George Miller-Golf Links Library Expansion Main Library Plaza Improvements Midtown Library and Learning Center Quincie Douglas Library $ Total 820,000 $ 600,000 400,000 644,000 -0-0-0-0- $ $ -0- $ 2,464,000 600,000 $ 1,864,000 -0-0- $ -0- $ 2,464,000 $ 2,464,000 Source of Funds Summary 1994 General Obligation Bond Funds - Interest 2000 General Obligation Bond Funds $ Total $ 2,464,000 F-11 $ 820,000 600,000 400,000 644,000 600,000 1,864,000 Neighborhood Resources Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Back to Basics $ 5,705,000 $ 5,075,000 $ 10,780,000 Total $ 5,705,000 Source of Funds Summary General Fund Community Development Block Grant Fund Highway User Revenue Fund $ 5,075,000 $ 10,780,000 $ 1,600,000 $ 2,100,000 $ 3,700,000 1,545,000 1,275,000 2,820,000 2,560,000 1,700,000 4,260,000 Total $ 5,705,000 F-12 $ 5,075,000 $ 10,780,000 Parks and Recreation Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Adaptive Recreation Center Case Natural Resource Park Expansion Catalina High School Track and Field Lighting Christopher Columbus Park Desert Vista/Southwest District Park Eastside Senior Center Recreation Facility El Cortez Heights El Pueblo Center Expansion Freedom Park Center General Instruments Site Improvements Golf Links Sports Center Parking Improvements Greenway and Natural Resource Area Acquisition Himmel Park Irrigation Replacement Iron Horse Neighborhood Improvements Jacobs Park Pool Replacement La Pilita Lincoln Park/William Clements Center Expansion Mansfield Park Irrigation Replacement Mansfield Park Upgrade Miramonte Natural Resource Park Miscellaneous Parks Development/Renovations New Comfort Stations North Central Natural Resource Park Northwest Neighborhood Center Oury and Ormsby Centers Playground Equipment Replacement Quincie Douglas Center Pool Facility Reid Park Renovation Reuse of Landfill Areas Rillito Park at Columbus Boulevard District Park Rita Ranch Park Expansion Rodeo Grounds Improvements Santa Cruz River Sports Park Tucson Diversion Channel Soccer Field Udall Park Facility Improvements Udall Park Play Field Improvements Udall Park and Center Expansion $ 3,355,700 $ 1,064,000 $ 4,419,700 170,100 -0170,100 267,900 -0267,900 812,900 985,000 1,797,900 -0500,000 500,000 844,600 230,000 1,074,600 139,400 -0139,400 1,343,200 609,000 1,952,200 1,030,000 235,000 1,265,000 200,000 -0200,000 -0210,000 210,000 198,100 335,500 533,600 20,000 153,000 173,000 10,000 -010,000 583,300 997,000 1,580,300 10,000 130,000 140,000 1,731,200 2,373,000 4,104,200 195,000 -0195,000 174,400 75,000 249,400 55,000 -055,000 37,700 235,000 272,700 177,000 219,000 396,000 132,500 191,000 323,500 1,324,600 500,000 1,824,600 50,000 -050,000 30,000 60,000 90,000 2,638,800 138,000 2,776,800 1,040,000 1,000,000 2,040,000 -0207,000 207,000 322,500 -0322,500 312,900 462,000 774,900 75,000 240,000 315,000 806,100 -0806,100 62,100 425,200 487,300 360,000 -0360,000 262,100 -0262,100 400,000 600,000 1,000,000 Total $ 19,172,100 F-13 $ 12,173,700 $ 31,345,800 Parks and Recreation Adopted Fiscal Year 2004 Carry New Forward Funding Total Source of Funds Summary 1994 General Obligation Bond Funds - Interest 2000 General Obligation Bond Funds Capital Agreement Fund Capital Agreement Fund: Pima County Bonds Miscellaneous Non-Federal Grants $ Total 11,800 12,160,600 1,000,000 5,999,700 -0- $ 19,172,100 F-14 $ -07,756,500 800,000 3,426,200 191,000 $ 12,173,700 $ 11,800 19,917,100 1,800,000 9,425,900 191,000 $ 31,345,800 Tucson City Golf Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Fred Enke Golf Course Improvements Trini Alvarez First Tee Renovations Total Source of Funds Summary Golf Course Fund Golf Course Fund: Certificates of Participation Total F-15 $ 338,900 100,000 $ -01,610,000 $ 438,900 $ 1,610,000 $ 100,000 $ 1,610,000 $ 1,710,000 338,900 -0338,900 $ 438,900 $ 1,610,000 $ 338,900 1,710,000 $ 2,048,900 $ 2,048,900 Police Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Land Acquisition and Facilities Improvement Police Substation Total Source of Funds Summary 2000 General Obligation Bond Funds General Fund: Certificates of Participation Total F-16 $ 283,700 -0- $ -03,687,500 $ 283,700 $ 3,687,500 $ 283,700 $ 3,455,000 $ 3,738,700 -0232,500 232,500 $ 283,700 $ 3,687,500 $ 283,700 3,687,500 $ 3,971,200 $ 3,971,200 Solid Waste Management Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Closed Landfill Gas Mitigation Closed Landfill Improvements Los Reales Drainage Improvements Los Reales Facilities Los Reales Future Cells Los Reales Intermediate Closure Los Reales Westside Closure Mullins Gas Mitigation Mullins Landfill Closure Mullins Landfill Stormwater Controls $ Total Source of Funds Summary 1994 General Obligation Bond Funds 1994 General Obligation Bond Funds - Interest 2000 General Obligation Bonds Funds Solid Waste Management Fund: Mandate Reserves Total 103,800 153,000 250,000 -02,300,000 70,000 510,000 440,000 5,049,500 -0- -0-0-0120,000 150,000 210,000 340,000 618,000 969,000 550,000 $ 103,800 153,000 250,000 120,000 2,450,000 280,000 850,000 1,058,000 6,018,500 550,000 $ 8,876,300 $ 2,957,000 $ 11,833,300 $ $ $ 366,600 38,100 3,739,900 4,731,700 $ 8,876,300 F-17 $ -0-0480,000 2,477,000 $ 2,957,000 366,600 38,100 4,219,900 7,208,700 $ 11,833,300 Transportation Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Transportation - Streets Alternate Modes Improvements Anklam Road Traffic Safety Improvements Barraza-Aviation Parkway: 4th Avenue Underpass Barraza-Aviation Parkway: 6th Avenue Improvement Barraza-Aviation Parkway: Downtown Segment Barraza-Aviation Parkway: Neighborhood Traffic Barraza-Aviation Parkway: St. Mary's/6th Street Barrio Anita Enhancements Broadway Boulevard Right-Turn and Transit Lane Bus-Related Roadway Improvements Downtown Pedestrian Improvements Golf Links and Craycroft Intersection Improvements Golf Links and Kolb Intersection Improvements Grant and Campbell Intersection Improvement Harrison Road: Speedway to Old Spanish Trail Highland Avenue Bike and Pedestrian Improvements Intersection Operational Improvements Irvington Road: Kolb Road to Camino Seco Miscellaneous Developer-Funded Improvements Miscellaneous On-Call Street Improvements Old Nogales Highway Pedestrian Overpass Park Avenue/Euclid Avenue Multiple Use Bridge Pedestrian Improvements Road Resurfacing, Restoration, & Rehabilitation South 10th Avenue Bike & Pedestrian Improvements South 10th Avenue Revitalization South 4th Avenue Streetscape Enhancement South Yard Drill Track Improvements Speedway and Stone Avenue Gateway Improvements Starr Pass Boulevard Improvements Stone and Limberlost Intersection Improvements Stone Avenue: Ft. Lowell Road to Wetmore Road Stone Avenue: Speedway to Ft. Lowell Road Transportation Enhancements Sub-Total $ Transportation - Drainage Alamo Wash Drainage Improvements Arroyo Chico Drainage Improvements Arroyo Chico Greenbelt Extension -0- $ 458,000 250,000 450,000 -06,000,000 209,900 1,800,000 600,000 -0-050,000 -0800,000 15,000 471,000 70,000 1,050,000 400,000 1,000,000 200,000 400,000 -01,500,000 -01,075,000 -01,000,000 -01,500,000 310,000 940,000 -02,133,500 -0142,000 -0600,000 -0409,000 150,000 -0100,000 1,000,000 450,000 666,000 500,000 5,285,000 -01,237,000 -0484,000 -0509,000 100,000 131,000 -04,000,000 2,000,000 -0-0260,000 -0250,000 280,000 1,000,000 -0550,000 5,634,900 37,150,500 -0200,000 162,000 F-18 300,000 825,000 -0- $ 458,000 700,000 6,000,000 2,009,900 600,000 50,000 800,000 486,000 1,120,000 1,400,000 600,000 1,500,000 1,075,000 1,000,000 1,500,000 1,250,000 2,133,500 142,000 600,000 409,000 150,000 1,100,000 1,116,000 5,785,000 1,237,000 484,000 509,000 231,000 4,000,000 2,000,000 260,000 250,000 1,280,000 550,000 42,785,400 300,000 1,025,000 162,000 Transportation Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Citation Wash Drainage Improvements Columbus Wash Drainage Relief, Phase II El Vado Wash Drainage Improvements Jefferson Park Drainage Improvements Miscellaneous Drainage Improvement Program Pantano Wash: Broadway Bank Improvement Park Avenue Detention Basin Rillito Creek Habitat Restoration Santa Cruz River Park Extension Stormwater Quality Program Wyoming Wash Drainage Improvements Sub-Total $ Transportation - Street Lighting 12th Avenue: Veterans Boulevard to Ajo Way 1st Avenue: Prince Road to River Road Benson Highway: 44th Street to Park Avenue Campbell Avenue: Roger Road to River Road Country Club Road: Broadway to 22nd Street Euclid Avenue Lighting: Broadway to Speedway Life Extensions and Electrical Upgrades Neighborhood District Lighting Improvements Nogales Highway: Drexel to Irvington Pantano Road: Speedway to 22nd Street Park Avenue Lighting: Valencia to Irvington Sub-Total Transportation - Traffic Signals Americans with Disabilities Act Improvements Campbell at Adelaide Pedestrian Crossing Computerized Traffic System Improvements Emergency Preemption System Expansion Freeway Management System Glenn: Oracle to Craycroft Bike Detection Greasewood and Ironwood Hills Traffic Signal Houghton and Escalante Traffic Signal Intelligent Transportation System Improvements Intelligent Transportation System: ER Link Living Transportation Laboratory Machine Vision Video Detection System Upgrades Midvale and Irvington Traffic Signal F-19 65,900 -0-0-0-0-0150,000 -0-0-0-0577,900 $ -05,400,000 1,492,300 1,689,000 1,214,700 250,000 -0695,500 1,232,000 360,000 200,000 13,658,500 $ 65,900 5,400,000 1,492,300 1,689,000 1,214,700 250,000 150,000 695,500 1,232,000 360,000 200,000 14,236,400 63,000 120,000 32,000 220,000 300,000 300,000 -0-0320,000 200,000 500,000 2,055,000 -0280,000 -0-0250,000 600,000 341,000 496,000 -0442,600 -02,409,600 63,000 400,000 32,000 220,000 550,000 900,000 341,000 496,000 320,000 642,600 500,000 4,464,600 50,000 -0192,700 -0-0-0-0-0161,800 -070,000 255,000 -0- 75,000 70,000 135,000 18,000 445,000 20,000 200,000 212,000 175,000 500,000 8,000 948,000 150,000 125,000 70,000 327,700 18,000 445,000 20,000 200,000 212,000 336,800 500,000 78,000 1,203,000 150,000 Transportation Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Miscellaneous Traffic Improvements Rita Road and Nexis Traffic Signal Roger Road and Fairview Avenue Traffic Signal School Flasher Construction School Flashers: Grande at Fresno Tanque Verde/Pima and Wilmot Intersection Traffic Flasher Construction Traffic Signal and Control Equipment Upgrades Traffic Signal Construction Traffic Signal Conversions Traffic Signal Upgrades Turn Signal Modifications and Geometrics Sub-Total $ Transportation - Public Transit ADA Pedestrian Access Improvements Automated Vehicle Location System Kiosks Broadway Boulevard Transit Improvements Compressed Natural Gas Facility Improvements Downtown Intermodal Center/Union Pacific Depot Expansion Vans for Van Tran Pima Community College Transit Projects Replacement Buses Replacement Vans Sun Tran Bus Storage and Maintenance Facility Transit Alternatives Analysis Transit Enhancements Transit Headquarters Improvements Udall Center Transit Facility Sub-Total Total Source of Funds Summary 1994 General Obligation Bond Funds 1994 Street and Highway Revenue Bond Funds 2000 General Obligation Bond Funds 2000 Street and Highway Revenue Bond Funds Capital Agreement Fund Capital Agreement Fund: ADOT Capital Agreement Fund: PAG $ 21,000 220,000 -0230,000 64,000 -080,000 155,000 68,000 501,000 164,000 21,000 4,480,000 $ 110,000 220,000 435,100 405,000 64,000 300,000 120,000 155,000 308,000 751,000 164,000 151,100 6,868,700 50,000 248,900 125,000 78,000 4,965,100 -0564,000 3,684,000 -02,617,000 2,000,000 100,000 872,000 250,000 15,554,000 50,000 175,000 -0500,000 4,000,000 780,000 700,000 4,906,400 1,560,000 5,660,000 -0103,000 822,000 100,000 19,356,400 100,000 423,900 125,000 578,000 8,965,100 780,000 1,264,000 8,590,400 1,560,000 8,277,000 2,000,000 203,000 1,694,000 350,000 34,910,400 $ 26,210,500 $ 77,055,000 $ 103,265,500 $ F-20 89,000 -0435,100 175,000 -0300,000 40,000 -0240,000 250,000 -0130,100 2,388,700 500,000 $ 171,800 192,700 -02,103,900 13,581,300 2,574,000 8,422,500 484,000 2,727,000 -0500,000 1,191,900 5,812,000 $ 671,800 192,700 15,685,200 10,996,500 3,211,000 500,000 7,003,900 Transportation Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Source of Funds Summary (Continued) Capital Agreement Fund: Pima County Contribution Federal Highway Administration Grants Highway User Revenue Fund Mass Transit Fund: Federal Grants Mass Transit Fund: General Fund Transfer Miscellaneous Non-Federal Grants Special Assessments Construction Fund $ Total 206,000 -03,954,000 13,545,600 929,400 -0529,000 $ 26,210,500 F-21 $ -022,978,000 2,179,000 18,025,800 1,320,600 728,000 609,000 $ 77,055,000 $ 206,000 22,978,000 6,133,000 31,571,400 2,250,000 728,000 1,138,000 $ 103,265,500 Tucson Water Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Tucson Water - Potable Water System: Tucson Water - Potable Source Development Drill Production Wells New Well Equipping Pressure Tank Replacement Production Well Sites Well Field Upgrades Sub-Total $ Tucson Water - Recharge and Recovery Clearwater Renewable Resource Facility South Avra Valley Storage & Recovery Project Sub-Total Tucson Water - Potable Storage 22nd Street Reservoir Modifications (Vault) Diamond Bell F Zone Reservoir Diamond Bell I Zone Reservoir and Booster Disinfection System Upgrades Murphy Reservoir Piping Modifications Plant 9 Storage Tank Project Potable Storage - Future Reservoir Roof Replacements Southeast C Zone Reservoir Southeast E Zone Storage Wilmot D Zone Reservoir and Booster Sub-Total Tucson Water - Potable Pumping Plant Anklam A-B Zone Booster Station Clearwell Pressure Regulating Valve Stations Diamond Bell G-I Zone Booster Modifications Fireflow Booster Upgrades Ironwood Hills A-B Booster Station Modifications Las Palomas B-C Booster Station Modifications Mark Road Booster Station Modifications Potable Pumping Plant - Future Pressure Regulating Valve Stations Modifications Pumping Facility Modifications Speedway B-C Zone Booster Station Modifications Variable Speed Boosters Sub-Total F-22 -0- $ -0-0-0-0-0- 600,000 600,000 450,000 75,000 388,000 2,113,000 $ 600,000 600,000 450,000 75,000 388,000 2,113,000 2,270,000 -02,270,000 -0255,000 255,000 2,270,000 255,000 2,525,000 90,000 -0-0-0-0-0-0-0-0-0-090,000 -0120,000 17,000 870,000 500,000 220,000 55,000 204,000 16,000 500,000 782,000 3,284,000 90,000 120,000 17,000 870,000 500,000 220,000 55,000 204,000 16,000 500,000 782,000 3,374,000 250,000 -0-0-0160,000 -0-0-0-0-080,000 -0490,000 -0400,000 20,000 50,000 -0364,000 200,000 55,000 100,000 300,000 -080,000 1,569,000 250,000 400,000 20,000 50,000 160,000 364,000 200,000 55,000 100,000 300,000 80,000 80,000 2,059,000 Tucson Water Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Tucson Water - Potable Transmission Alvernon/Grant B Zone Transmission Main Avra Valley Transmission Main, Phase I Cathodic Corrosion Protection Installation Corrosion Evaluation and Repair Diamond Bell I Zone Transmission Main Diamond Bell J Zone Transmission Main Excavated Corrosion Investigation Old Nogales Highway Transmission Main Plumer/Broadway B Zone Transmission Main Southeast E Zone Transmission Main Southside Gravity Main Replacement Southwest C Zone Transmission Main Transmission Main Projects - Future Upgrade Corrosion Test Stations Well AV-26 Discharge Transmission Main Sub-Total $ Tucson Water - Potable Distribution Chip Seal Main Replacements Distribution Main Projects - Future Emergency Main Replacement Extensions for New Services Midvale Farms Reimbursements On-Call Valve Replacement Program Payments to Developers for Oversized Systems Peppertree Settlement Review of Developer-Financed Potable Projects Road Improvement Main Replacements Routine Main Replacements Shannon-Ironwood Hills Fire Protection Skyline Country Club System Modifications Taylor Lane System Improvements Ventana Canyon Reimbursements Sub-Total Tucson Water - Potable New Services Fire Services Water Services Sub-Total F-23 180,000 -0-0-0-0-0-0-0-0-0-0-0-0-0-0180,000 500,000 35,000 250,000 250,000 11,000 7,000 125,000 4,658,000 500,000 150,000 450,000 450,000 500,000 20,000 160,000 8,066,000 $ 680,000 35,000 250,000 250,000 11,000 7,000 125,000 4,658,000 500,000 150,000 450,000 450,000 500,000 20,000 160,000 8,246,000 -0-0230,000 -0-0-0-0-0-01,380,000 -0-0-0-0-01,610,000 25,000 550,000 100,000 10,000 170,000 200,000 100,000 300,000 850,000 2,600,000 550,000 450,000 13,000 158,000 50,000 6,126,000 25,000 550,000 330,000 10,000 170,000 200,000 100,000 300,000 850,000 3,980,000 550,000 450,000 13,000 158,000 50,000 7,736,000 -0-0-0- 1,000,000 1,210,000 2,210,000 1,000,000 1,210,000 2,210,000 Tucson Water Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Tucson Water - Potable General Plant Facility Improvements - Future Facility Safety and Security Geographic Information System Maintenance Management Program Microwave Radio Replacements Miscellaneous Land and Right-of-Way Acquisitions Tucson Water Document Management Sub-Total $ Tucson Water - Potable Treatment Hayden-Udall Plant Rehabilitation Technical Drive Improvements Treatment Improvements - Future Sub-Total -080,000 90,000 200,000 150,000 -0-0520,000 $ 18,000 $ 18,000 548,000 628,000 891,000 981,000 1,034,000 1,234,000 -0150,000 10,000 10,000 50,000 50,000 2,551,000 3,071,000 225,000 -0-0225,000 1,000,000 400,000 1,250,000 2,650,000 1,225,000 400,000 1,250,000 2,875,000 Tucson Water - Portable Process Control Control Panel Replacements Photovoltaic Monitoring Control Sub-Total -0-0-0- 1,420,000 60,000 1,480,000 1,420,000 60,000 1,480,000 Tucson Water - Capitalized Expense Capitalized Expense Sub-Total -0-0- 5,000,000 5,000,000 5,000,000 5,000,000 Potable Water System Sub-Total 5,385,000 35,304,000 40,689,000 Tucson Water - Reclaimed Water System: Tucson Water - Reclaimed Source Development Reclaimed Storage and Recovery Sub-Total -0-0- 1,500,000 1,500,000 1,500,000 1,500,000 Tucson Water - Reclaimed Storage Reclaimed Storage Projects - Future Sub-Total -0-0- 30,000 30,000 30,000 30,000 Tucson Water - Reclaimed Pumping Plant Mission Manor Park Booster Northwest In-Line Booster Reclaimed Pressure Regulating Valve Project Reclaimed Pumping Plant - Future Reid Park Boosters Expansion Sub-Total -0-0-0-0-0-0- 400,000 550,000 50,000 55,000 480,000 1,535,000 400,000 550,000 50,000 55,000 480,000 1,535,000 F-24 Tucson Water Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Tucson Water - Reclaimed Transmission 18th St/10th Ave Reclaimed Transmission Main Campbell/Drexel Reclaimed Main Golf Links/Craycroft Reclaimed Transmission Main Reclaimed Transmission Mains - Future Sub-Total $ Tucson Water - Reclaimed Distribution City of Tucson Parks Main Extensions Review of Developer-Financed Reclaimed Projects Starr Pass Improvements - Reclaimed System Sunnyside School District Main Extensions System Enhancements: Reclaimed Tucson Unified School District Main Extensions Sub-Total -0- $ 2,705,000 $ 2,705,000 -01,890,000 1,890,000 390,000 500,000 890,000 -0555,000 555,000 390,000 5,650,000 6,040,000 -0-0-0-0100,000 30,000 130,000 55,000 60,000 600,000 55,000 100,000 55,000 925,000 55,000 60,000 600,000 55,000 200,000 85,000 1,055,000 Tucson Water - Reclaimed New Services New Metered Services Sub-Total -0-0- 50,000 50,000 50,000 50,000 Tucson Water - Reclaimed Treatment Chlorine System Improvements Roger Road Reclaimed Water Treatment Plant Miscellaneous Sub-Total -0-0-0- 1,000,000 100,000 1,100,000 1,000,000 100,000 1,100,000 Tucson Water - Reclaimed Process Control Microwave Radio Replacements: Reclaimed Sub-Total -0-0- 30,000 30,000 30,000 30,000 520,000 10,820,000 11,340,000 $ 5,905,000 $ 46,124,000 $ 52,029,000 Reclaimed Water System Sub-Total Total Source of Funds Summary 2000 Water Revenue Bond Funds Central Arizona Project Reserve Fund Tucson Water Revenue and Operations Fund $ 5,905,000 $ 25,301,000 $ 31,206,000 -010,000 10,000 -020,813,000 20,813,000 Total $ 5,905,000 F-25 $ 46,124,000 $ 52,029,000 Environmental Management Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Broadway-Pantano Remediation Site City Landfill Groundwater Investigations Cottonwood Landfill Project Harrison Landfill Groundwater Remediation Los Reales Landfill Groundwater Remediation Los Reales Landfill Southwest Remediation Price Service Center Remediation Prudence Landfill Vadose Zone Remediation Silverbell Jail Annex Landfill Tumamoc Landfill Soil/Groundwater Assessment $ Total Source of Funds Summary 1994 General Obligation Bond Funds 2000 General Obligation Bond Funds Capital Agreement Fund Capital Agreement Fund: Pima County Contribution General Fund: Mandate Reserves Total -0- $ 1,953,900 $ 1,953,900 242,000 290,000 532,000 270,000 200,000 470,000 117,000 40,000 157,000 200,000 250,000 450,000 450,000 150,000 600,000 1,121,900 400,000 1,521,900 860,000 -0860,000 500,000 500,000 1,000,000 166,000 1,020,000 1,186,000 $ 3,926,900 $ 4,803,900 $ 8,730,800 $ $ 251,900 2,317,000 500,000 -0858,000 $ 3,926,900 F-26 -02,129,000 1,321,200 43,700 1,310,000 $ 4,803,900 $ 251,900 4,446,000 1,821,200 43,700 2,168,000 $ 8,730,800 Operations Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name Operations - Buildings and Equipment Emergency Communications System and Facility Sub-Total $ Operations - Americans with Disabilities Act ADA Modifications to Parks Sub-Total Total Source of Funds Summary General Fund General Fund Debt Financing Total F-27 670,000 $ 5,121,600 $ 5,791,600 670,000 5,121,600 5,791,600 136,800 136,800 -0-0- 136,800 136,800 $ 806,800 $ 5,121,600 $ 5,928,400 $ 806,800 $ 124,400 -04,997,200 $ $ 806,800 $ 5,928,400 $ 5,121,600 931,200 4,997,200 General Expense Adopted Fiscal Year 2004 Carry New Forward Funding Total Project Name City Hall Annex Parking Garage Midtown Multipurpose Facility Starr Pass Parking Garage Web-Based Financial and Human Resources Systems $ Total -0- $ 4,000,000 $ 4,000,000 9,892,900 957,400 10,850,300 1,000,000 2,000,000 3,000,000 -0850,000 850,000 $ 10,892,900 Source of Funds Summary General Fund General Fund: Certificates of Participation General Fund: Restricted General Fund: Restricted Trust Reserves $ Total $ 18,700,300 -0- $ 850,000 $ 850,000 4,242,900 5,957,400 10,200,300 -01,000,000 1,000,000 6,650,000 -06,650,000 $ 10,892,900 F-28 $ 7,807,400 $ 7,807,400 $ 18,700,300 CITY STRATEGIC PLAN The City of Tucson continues to move forward in its effort to become a more strategic, results-oriented organization. The process began in the mid-1990s with the introduction of performance measurement and the Livable Tucson program, and continues in Fiscal Year 2004 with a focus on the City Strategic Plan. To be more efficient and effective in delivering quality services to residents, the City of Tucson follows a fourstep strategic approach: • Use Mayor and Council strategic priorities to guide City of Tucson priorities, • Align the city organization to effectively carry out these priorities, • Fund programs and projects which further these priorities, and • Measure the results of our work and use the information to improve services. Performance Measurement: The Journey Begins In the mid-1990s, the city began measuring its performance by developing numerous “Recurring Performance Measures” for each division of the organization. These measures were reported on a quarterly basis and were included in the annual budget document. In the late 1990s, the city’s performance measurement effort was refined by distinguishing between outputs and outcomes, and reducing the number of measures by identifying only the most important, or key, measures of performance. The Livable Tucson Program In October 1996, the Mayor and Council adopted the Strategic Approach for Budget Development and Planning — a process for allocating resources based on community-identified values and priorities. To identify initial community priorities, the Livable Tucson Vision Program was initiated with public forums conducted during the spring and summer of 1997. Over 1,200 community members, business people, and city employees participated. As a result of the community process, 17 community goals were identified. The goals are presented on the following pages. A Results-Oriented Organization: The Ultimate Goal Performance measurement and the Livable Tucson program were starting points for the City of Tucson in adopting a more results-oriented, strategic approach to providing services to residents. While the City Strategic Plan has allowed the city to move forward, additional steps still need to be taken. To better equip the organization to effectively carry out priorities, departments and offices are aligned into four service areas: • Support Services • Neighborhood Services • Environment and Development • Strategic Initiatives A Results-Oriented Organization and A Livable Tucson These groupings facilitate departments and offices working in partnership to achieve city priorities. The alignment also allows the organization to function with a more meaningful performance measurement system, one that connects across departments, and helps measure results at all levels of the organization — from divisions down to employees. G-1 City Strategic Plan (Continued) In a properly aligned organization, all efforts lead upward towards Mayor and Council priorities and community values and interests. Citizen Survey Livable Tucson provided an initial foundation for community values and interests. Our community is ever changing, however, and additional sources of data are needed to ensure that our priorities are reflective of the community. One source of community data came from a citizen survey the City of Tucson conducted during 2001 in partnership with the International City/County Management Association (ICMA). Tucson was selected by ICMA as one of five jurisdictions to pilot a citizen survey that will eventually be used to benchmark survey results nationally among cities. Results from the survey are being used by the city council and the city organization to assess current practices and help set future priorities. Focus Areas and the Strategic Planning Process On December 17, 2001, as part of a strategic planning process, the Mayor and Council adopted six focus areas to guide improvements and development efforts within this current budget cycle. The focus areas are: Transportation, Downtown, Growth, Neighborhoods, Economic Development, and Good Government. These focus areas will be reviewed and further defined in subsequent budget cycles. Prioritizing areas for more concentrated effort is common in the private sector and more recently in the public sector with the City of Charlotte being the most notable example. Focus areas allow government units to concentrate management initiatives, projects, and strategies, direct training of employees, and use resources effectively. The six focus areas and their relationship to the Livable Tucson Goals are shown in the following table: CORRESPONDENCE BETWEEN LIVABLE TUCSON GOALS AND FOCUS AREAS 1. Better Alternatives to Automobile Transportation 2. Engaged Community and Responsive Government 3. Safe Neighborhoods 4. Caring, Healthy Families and Youth 5. Excellent Public Education 6. Infill and Reinvestment, Not Urban Sprawl 7. Abundant Urban Green Space and Recreation Areas 8. Protected Natural Desert Environment 9. Better Paying Jobs 10. Clean Air and Quality Water 11. People-Oriented Neighborhoods 12. Respected Historic and Cultural Resources 13. Quality Job Training 14. Reduced Poverty and Greater Equality of Opportunity 15. Strong Local Businesses 16. Efficient Use of Natural Resources 17. Successful Downtown G-2 Good Government Economic Development Neighborhoods Growth LIVABLE TUCSON GOALS Downtown Transportation Six Focus Areas x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x City Strategic Plan (Continued) During special strategic planning sessions held during early 2002, the Mayor and Council discussed each of the focus areas in greater depth. These working sessions were an important prelude to the Fiscal Years 2003 and 2004 biennial budget preparation. In light of the difficult budget years ahead, having a set of priorities for the city is of particular importance and enables city resources to be organized more effectively to accomplish Council priorities. Setting focus areas and identifying priority projects not only helps direct limited resources in the Fiscal Year 2004 budget, but also clarifies for staff the results that Mayor and Council believe are important to achieve. Within each focus area, the Mayor and Council have adopted a set of strategies and priority projects. Taken collectively, the focus area projects set the workplan for the organization. Performance measures, which are included in this document, set specific indicators of progress for each focus area. City staff will report periodically to Mayor and Council on the performance measures and provide updates on the projects listed in this document. The City Strategic Plan directs the city’s limited resources so that they further the Mayor and Council’s agenda and have practical results in the short-term, as well as significant, long-term impact on the community. The City Strategic Plan can be found on the city’s Website (www.cityoftucson.org), in the City Government Section. G-3 CITY STRATEGIC PLAN FOCUS AREAS AND STRATEGIES Transportation 1. Seek and obtain resources necessary to improve the transportation system. 2. Provide leadership within the region to address transportation system needs. 3. Develop some alternative land use patterns to promote a more effective transportation system. 4. Deploy Community Character and Design policies in transportation projects. Downtown 1. Aggressively manage downtown’s redevelopment through partnering efforts with public and private organizations and individuals active in the downtown. 2. Provide a highly "amenitized" urban center focused on the proposed entertainment experience area on Congress Street from Church Street to 4th Avenue, linked with the Tucson Convention Center and its adjoining proposed Civic Plaza. 3. Leverage private leadership and investment in downtown through targeted public investment. Growth Overarching Strategy: Elevate long range comprehensive planning to the highest level priority for the City of Tucson. 1. Ensure the balanced growth of the community. 2. Build effective relationships with regional partners. 3. Implement the General Plan’s cost of development strategy. 4. Improve service delivery to address the demands of a growing community. Neighborhoods 1. The Human Environment - Maintain and strengthen human connections within neighborhoods, encourage inclusive participation, foster safety, strengthen neighborhood leadership, and encourage a greater sense of community stewardship. 2. The Built Environment - Invest public funding and encourage private investment and public/private partnerships in Tucson’s neighborhoods and enhance their appearance and livability. 3. The Natural Environment - Respect and preserve our natural environment. Economic Development Overarching Strategy: Recognize that every public policy decision has an economic component. Investment in public infrastructure and services, transportation, downtown, neighborhoods, and how we plan for and manage growth are key components of a healthy economy. 1. Foster a strong, diversified economy by creating, attracting, and retaining businesses that provide knowledge-based, high-quality employment opportunities. 2. Support the development of a prepared and successful workforce. 3. Improve community infrastructure to support and encourage economic expansion and opportunity in a global marketplace. Good Government 1. Improved Customer Service - Position the city to provide the highest level of customer service to city residents and the community at large. 2. Prepared Workforce - Enable and support the development of a prepared and successful employee workforce that is aligned with organizational priorities. 3. Fiscal Responsibility - Optimize and streamline organizational processes to ensure quality services and fiscal responsibility. 4. Expanded Use of Technology - Capitalize on technology to improve service and increase efficiency, ensure public and employee safety, exercise appropriate environmental stewardship, and provide greater information access. 5. Strengthen Partnerships - Build a strategic network of partnerships that aim at bettering community life, eliminating redundant services, and stretching the value of the taxpayer’s dollar. G-4 LIVABLE TUCSON GOALS Following are the 17 Livable Tucson Goals as identified and prioritized during the Livable Tucson Vision Program. Better Alternatives to Automobile Transportation Definition: An improved public transportation system; bicycle- and pedestrian-friendly streets; improved roadways with landscaping, street lighting, sidewalks, and bus stops; the promotion of alternatives to automobile transportation. Engaged Community and Responsive Government Definition: Involvement by citizens in volunteering and neighborhood participation; government responsiveness to citizen input; connection between government and the people. Safe Neighborhoods Definition: People feel safe in their neighborhoods; positive perceptions about crime-levels and policing. Caring, Healthy Families and Youth Definition: Opportunities, services, and conditions that support families and youth. Excellent Public Education Definition: Quality education at all levels; availability of vocational, lifeskills, cultural, and civic training. Infill and Reinvestment, Not Urban Sprawl Definition: Well-planned growth; management of urban sprawl; development in the city’s core, rather than the periphery. Abundant Urban Green Space and Recreation Areas Definition: Recreation and green space within the city including neighborhood and regional parks; common space and community gardens; bicycle and pedestrian paths; trees and urban landscaping. Protected Natural Desert Environment Definition: Protection of the Sonoran Desert eco-system and protection of washes, hillsides, open space, and wildlife. G-5 Livable Tucson Goals (Continued) Better Paying Jobs Definition: More jobs with good wages; job quality and diversity; an improved standard of living. Clean Air and Quality Water Definition: Reduced air pollution; provision of clean, potable water. People-Oriented Neighborhoods Definition: Design of new neighborhoods and investment in old neighborhoods that promotes a mix of commercial and residential uses; neighborhoods with a pedestrian focus, landscaping, and interaction among residents. Respected Historic and Cultural Resources Definition: Preservation and celebration of local landmarks, buildings, neighborhoods, archeological treasures, open spaces, cultures, and traditions. Quality Job Training Definition: Education, training, and skill development that will lead to high quality, living wage jobs. Reduced Poverty and Greater Equality of Opportunity Definition: The fair distribution of resources, creating opportunities to overcome poverty and social and economic inequalities. Strong Local Businesses Definition: Support for the local economy, particularly small locally owned businesses. Efficient Use of Natural Resources Definition: Conservation of natural resources and use of sustainable energy sources. Successful Downtown Definition: Promotion and development of the cultural and commercial aspects of the city center. G-6 INTEGRATION WITH CITY STRATEGIC PLAN The implementation of the Rio Nuevo Master Plan and the initiation of the tax increment financing mechanism for the Rio Nuevo Multipurpose Facilities District were two important steps toward realizing the vision of a vibrant downtown Tucson. In order to keep this vision alive, the downtown revitalization effort must be a focused endeavor, accomplished through the implementation of prioritized projects. The City Strategic Plan sets forth a set of priorities for the City of Tucson and provides a framework for strategic planning, which will help guide city resources and focus attention on results. The Mayor and Council have adopted a set of strategies and priority projects for the downtown that set the workplan for the organization. Strategic Policy Statements: 1. Aggressively manage downtown's redevelopment through partnering efforts with public and private organizations and individuals active in the downtown. 2. Provide a highly "amenitized" urban center focused on the proposed entertainment experience area on Congress Street from Church Avenue to 4th Avenue, linked with the Tucson Convention Center and its adjoining new Civic Plaza. 3. Leverage private leadership and investments in downtown through targeted public investment. FINANCING PLAN Fiscal Year 2004 $16.4 million Debt/Improvement District Financing $ 7 million Rio Nuevo Multipurpose District* $ 9.3 million Miscellaneous Federal Housing Grants $ .1 million *Comprised of $4.8 million in rental income from the Tucson Convention Center used to pay debt service and an anticipated $4.5 million in tax increment financing (TIF) funds. H-1 RIO NUEVO PROJECT OVERVIEW In 1999, Tucson and South Tucson voters approved the Rio Nuevo Multipurpose Facilities District (RNMFD) and established a tax increment financing (TIF) mechanism to fund economic development downtown. The vision for Rio Nuevo is to create a vital city center that expresses Tucson's unique natural landscape, cultural heritage, and community values. The Rio Nuevo Project will create a solid foundation in which both residents and visitors can experience the cultural riches of our community’s heritage. Its residential and commercial development opportunities will re-create a vibrant core of new life in the heart and future of Tucson. Financing for the Rio Nuevo Project is made up of the incremental portion of state sales tax revenues generated within the district’s geographical boundaries, city funding equaling a match of this state sales tax revenue, and private investment funding. It is projected that $60 million of state sales tax will be made available to the Rio Nuevo Project and that the city match portion will provide another $60 million. State sales tax funds will be collected from the Arizona Department of Revenue over a ten-year period that was initiated on October 1, 2002. Supplemental private investment dollars over a 20-year timeframe could generate a total Rio Nuevo Project development investment of over $750 million. The level of ultimate funding will be dependent upon the amount of private investment leveraged over time by the District’s $120 million of public investment. FISCAL YEAR 2004 BUDGET For Information Purposes Only. Rio Nuevo is not part of the city’s budget. The Fiscal Year 2004 budget totals $16.4 million: $9.3 million in district funding, $7 million in debt and improvement district financing of capital projects, and $.1 million from a federal grant. The $9.3 million in district funding includes $4.8 million of rental income revenue from the City of Tucson’s use of the Tucson Convention Center that is used for payment of debt service on the facility. It is anticipated that the district’s remaining $4.5 million of funds will come from the tax increment financing mechanism. Additional public/private funding is anticipated for capital projects within the District that could total $12.1 million. The staff of 4.75 full-time equivalent positions is supplemented by assistance provided by city department staff temporarily assigned and charged to the Rio Nuevo Project. The District’s Board of Directors adopted the annual budget in June 2003. HIGHLIGHTS The RNMFD acquired the Tucson Convention Center (TCC) and its parking facility through a lease payment financing. This fulfilled the Arizona statute requirement that a multipurpose facilities district must include a primary component that is used to accommodate sporting events and entertainment, cultural, civic, meeting, trade show, or convention events or activities. Renovations to the TCC Box Office, which included relocation and expansion for better service and accessibility, were completed in May 2003. In December 2002, the Rio Nuevo District Board and the Mayor and Council approved a development and lease with the Tucson Fox Theatre Foundation. The development agreement provides for the use of $3.5 million of TIF funds for the $10 million Fox Theatre Restoration Project. The theatre restoration should be complete by the end of 2004 and will result in a 1,300-seat theatre to be used to host live performances and exhibit films. The Tucson Origins archeological investigation and historical research has been completed. A consultant firm will conduct a study on the reconstruction and interpretation of the Mission San Agustin as it was in the 17th century and the Presidio of Tucson, the city’s first neighborhood. In January 2003, five development corporations responded to the Thrifty Block Request for Qualifications. This will be a mixed-use project utilizing the downtown site on Congress Street that the District purchased from the federal General Services Administration. Site development proposals will be reviewed in the fall by the Rio Nuevo District Board and the Mayor and Council. H-2 RIO NUEVO PROJECT RESOURCE SUMMARY Actual FY 2002 Adopted* FY 2003 Estimated FY 2003 Projected** FY 2004 Revised** FY 2004 POSITION SUMMARY PERMANENT Rio Nuevo Project 2.50 5.25 3.75 5.25 4.75 Total 2.50 5.25 3.75 5.25 4.75 $ 5,525,876 $ 7,226,130 $ 6,325,130 $ 6,181,180 $ 7,665,080 5,525,876 274,117 7,226,130 11,781,250 6,325,130 3,495,980 6,181,180 13,900,000 7,665,080 8,750,000 $ 5,799,993 $ 19,007,380 $ 9,821,110 $ 20,081,180 $ 16,415,080 $ 261,021 1,993,648 25,600 6,217 3,239,390 $ $ $ $ FINANCIAL SUMMARY Rio Nuevo Operating Total*** Capital Improvements Total CHARACTER OF EXPENDITURES Personal Services Services Commodities Equipment Debt Service*** Operating Total Capital Improvements Total 370,000 1,133,100 72,500 11,750 5,638,780 370,000 1,133,100 72,500 11,750 4,737,780 384,800 943,100 72,500 43,000 4,737,780 543,700 536,100 40,500 7,000 6,537,780 5,525,876 274,117 7,226,130 11,781,250 6,325,130 3,495,980 6,181,180 13,900,000 7,665,080 8,750,000 $ 5,799,993 $ 19,007,380 $ 9,821,110 $ 20,081,180 $ 16,415,080 $ $ $ -04,737,780 1,587,350 $ 1,443,400 4,737,780 -0- $ 2,927,300 4,737,780 -0- $ 6,325,130 $ 6,181,180 $ 7,665,080 SOURCE OF FUNDS OPERATING FUNDS Rio Nuevo Multipurpose District Rent from Tucson Convention Center Loan from City of Tucson Operating Funds Total -03,304,180 2,221,696 $ 5,525,876 -0-07,226,130 $ 7,226,130 *The Rio Nuevo Multipurpose Facilities District Board of Directors adopts the Rio Nuevo Project budget for each fiscal year; the City of Tucson Mayor and Council do not adopt it. **The Projected Fiscal Year 2004 column includes the budget that was published for informational purposes in the City of Tucson Fiscal Years 2003 and 2004 Biennial Budget. The Revised Fiscal Year 2004 column reflects the budget presented to the District Board for adoption in June 2003. ***For Fiscal Year 2004, the Operating Total includes a $4.8 million debt service payment on the financing of the Tucson Convention Center (TCC), a $.9 million debt service on capital improvements, and a $.9 million loan repayment to South Tucson and federal funds. H-3 RIO NUEVO PROJECT Resource Summary (Continued) Actual FY 2002 Adopted* FY 2003 Estimated FY 2003 Projected** FY 2004 Revised** FY 2004 Source of Funds (Continued) CAPITAL FUNDS Rio Nuevo Multipurpose District Loan from City of Tucson Debt/Improvement District Financing Miscellaneous Federal Housing Grants $ -0274,117 -0-0- $ 11,781,250 -0-0-0- $ -02,595,980 -0900,000 $ 13,900,000 -0-0-0- $ 1,600,000 -07,050,000 100,000 Capital Funds Total $ 274,117 $ 11,781,250 $ 3,495,980 $ 13,900,000 $ 8,750,000 Total $ 5,799,993 $ 19,007,380 $ 9,821,110 $ 20,081,180 $ 16,415,080 *The Rio Nuevo Multipurpose Facilities District Board of Directors adopts the Rio Nuevo Project budget for each fiscal year; the City of Tucson Mayor and Council do not adopt it. **The Projected Fiscal Year 2004 column includes the budget that was published for informational purposes in the City of Tucson Fiscal Years 2003 and 2004 Biennial Budget. The Revised Fiscal Year 2004 column reflects the budget presented to the District Board for adoption in June 2003. CAPITAL IMPROVEMENT PROJECTS Capital Improvement Projects that have been identified as being underway or in the detailed planning stages during Fiscal Year 2004 include: Project • • • • • • Projected Completion Date Fox Theatre Restoration Mission Site Land Acquisition Mission Site and Origins Cultural Park Presidio Stabilization and Heritage Park Sentinel Peak Park University of Arizona Science Center/Arizona Sonora Desert Museum H-4 FY 2005 FY 2004 FY 2010 FY 2005 FY 2010 FY 2007 GLOSSARY OF TERMS Term Definition ACCOUNTABILITY The state of being obliged to explain actions to justify what was done. Accountability requires justification for the raising of public funds and the purposes for which they are used. ACTIVITY A group of related functions performed by one or more organizational units for the purpose of satisfying a need for which the city is responsible. ALLOCATION Assigning one or more items of cost or revenue to one or more segments of an organization according to benefits received, responsibilities, or other logical measures of use. ANALYSIS A process that separates the whole into its parts to determine their nature, proportion, function, and relationship. ANNUALIZED COSTS Operating costs incurred at annual rates for a portion of the prior fiscal year that must be incurred at similar rates for the entire 12 months of the succeeding fiscal year. APPROPRIATION An authorization granted by the Mayor and Council to make expenditures and to incur obligations for purposes specified in the appropriation resolution. ASSESSED VALUATION A valuation set upon real estate or other property by the county assessor and the state as a basis for levying taxes. BENCHMARKING The ongoing search for best practices and processes that produce superior performance when adopted and implemented in an organization. For the purpose of bench-marking, only that which you can measure exists. BENCHMARKS Measurements used to gauge the city’s efforts, both as a community and as an organizational entity, in accomplishing predefined and measurable desired outcomes that have been developed with participation from decision-makers, management, staff, and customers. Benchmark selection requires that you first know what it is you wish to improve, and then the metrics (a means to measure) that will be used. I-1 GLOSSARY OF TERMS Term Definition BIENNIAL BUDGET A form of multi-year budgeting that covers a two-year period, rather than the one-year period of an annual budget. Each year within the biennial period is budgeted and shown separately within a single budget document published at the start of the first year. At the start of each fiscal year, the Mayor and Council formally adopt each budget within the two-year period in compliance with state budget law. Second year budgets can be adjusted as necessary with the Mayor and Council budgetary policies. BOND A written promise to pay a specified sum of money (called the face value or principal amount) at a specified date or dates in the future (called the maturity date), together with periodic interest at a specific rate. BOND FUNDS Funds used for the purchase or construction of major capital facilities which are not financed by other funds. The use of bond funds is limited to ensure that bond proceeds are spent only in the amounts and for the purposes authorized. BOND PROCEEDS Funds derived from the sale of bonds for the purpose of constructing major capital facilities. BONDS - GENERAL OBLIGATION Limited tax bonds which are secured by the city's secondary property tax. BUDGET A financial plan consisting of an estimate of proposed expenditures and their purposes for a given period and the proposed means of financing them. CAPITAL BUDGET A financial plan of proposed capital expenditures and the means of financing them. CAPITAL CARRYFORWARD Capital funds unspent and brought forward from prior years. CAPITAL IMPROVEMENT PROGRAM A plan separate from the annual budget that identifies: (1) all capital improvements which are proposed to be undertaken during a five fiscal year period, (2) the cost estimate for each improvement, (3) the method of financing each improvement, and (4) the planned implementation schedule for each project. I-2 GLOSSARY OF TERMS Term Definition CAPITAL PROJECT Any project having assets of significant value and a useful life of five years or more. Capital projects include the purchase of land, design, engineering, and construction of buildings and infrastructure items such as streets, bridges, drainage, street lighting, water system, etc. Capital improvements are permanent attachments intended to remain on the land. Capital projects may include the acquisition of heavy equipment and machinery or specialized vehicles using capital funding sources. CARRYFORWARD CAPITAL IMPROVEMENT PROJECT Any capital project that has been previously approved by the Mayor and Council, but for various reasons has not been implemented on schedule. Under state law and Generally Accepted Accounting Principles, only those costs relating to work actually done on or before the last day of the fiscal year can be reflected on the financial statements of that fiscal year. To avoid having to charge the project costs estimated to be incurred in a subsequent fiscal year as an unbudgeted item for that year and, therefore, violate state budget law, such a project and the associated projected costs are included in the subsequent fiscal year's budget. CARRYFORWARD OPERATING FUND BALANCES Operating funds unspent and brought forward from prior fiscal years. CERTIFICATES OF PARTICIPATION A debt financing tool which is used to enable the city to purchase large equipment and improve or construct city facilities. Interest is paid and principal repaid through annual payments made from funds appropriated each fiscal year by the Mayor and Council. COMMODITIES Expendable items used by operating departments. Examples include office supplies, repair and replacement parts for equipment, books, and gasoline. CUSTOMER The recipient of a product or service provided by the city. Internal customers are city departments, employees, or officials who receive products or services provided by other city departments. External customers are citizens, neighborhoods, community organizations, businesses, or other public entities who receive products or services provided by a city department. DEBT SERVICE The amount required to retire the principal and pay the interest on outstanding debt. ENCUMBRANCES Obligations in the form of purchase orders, contracts, or other commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise extinguished. I-3 GLOSSARY OF TERMS Term Definition ENTERPRISE FUND An accounting entity established to account for the acquisition, operation, and maintenance of governmental facilities and services which are entirely or predominantly self-supporting. EQUIPMENT An item of machinery or furniture having a unit cost of more than $5,000 and an estimated useful life of more than one year. Heavy equipment and machinery that are capital improvements are included in the capital budget and are not considered equipment items in the operating budget. EXPENDITURE Any authorization made for the payment or disbursing of funds during the fiscal year. FISCAL YEAR A 12-month period of time to which the annual budget applies and at the end of which a governmental unit determines its financial position and the results of its operations. Fiscal Year 2004, for the City of Tucson, refers to the period July 1, 2003 through June 30, 2004. FOCUS AREA Areas selected by the Mayor and Council as part of a strategic planning process that guide city improvement and development efforts for the budget year. For Fiscal Year 2003, the focus areas are Downtown, Transportation, Growth, Neighborhoods, Good Government, and Economic Development (see Vol. 1, “City Strategic Plan” for details). FULL-TIME EQUIVALENT POSITION (FTE) A full-time position, or part-time position converted to a decimal equivalent of a full-time position, based on 2,080 hours per year. For example, a summer lifeguard working for four months, or 690 hours, would be equivalent to .33 of a full-time position. FUND An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources, together with all related liabilities, for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations. GENERAL FUND A fund used to account for all general purpose transactions of the city that do not require a special type of fund. INTER-ACTIVITY TRANSFERS Transactions between city organizations or funds that would be treated as revenues or expenditures if they involved parties external to the city. Transactions may be charged against other organizations or funds. MISSION A succinct description of the scope and purpose of a city department. It specifies the business activities of a department. I-4 GLOSSARY OF TERMS Term Definition NON-PERSONAL SERVICES Costs related to expendable services, such as supplies, materials, utilities, printing, rent, and contracted and professional services. NON-RECURRING REVENUE Proceeds of general obligation bonds, revenue bonds, and other restricted revenue. OPERATING BUDGET A financial plan which applies to all proposed expenditures other than for capital improvements. OPERATING FUNDS Resources derived from recurring revenue sources used to finance operating expenditures and pay-as-you-go capital expenditures. ORGANIZATION The smallest unit of budgetary accountability and control which encompasses specific and distinguishable lines of work performed for the purpose of accomplishing a function for which the city is responsible. OTHER COSTS This classification of costs includes Sun Tran expenditures, contributions to outside agencies, and specific federal fund expenditures. OUTCOME The result or community benefit derived from programs or services expressed as a measure and used to evaluate quality or effectiveness. Examples of outcomes are the number of traffic signals operating trouble-free on a daily basis and the percent of library customers satisfied with the book collection. OUTPUT A quantitative measure of activities or efforts undertaken to provide a service or program. Examples of outputs are the number of responses to emergency 9-1-1 calls and the number of tons of recyclable materials collected. OUTSIDE AGENCIES A group of organizations which are neither associated with, nor allocated to, any particular city department. Payments to Other Governments, Economic Development, Cultural Enrichment, Community Health and Safety, Mayor and Council Appointed Commissions, Annual Community Events, and Tucson Community Cable Corporation (Access Tucson) are the major program groupings for outside agencies. PERFORMANCE MEASURE An annual indicator of achievement or measure of production for a program or a unit as defined in the organization of the budget. Measures may be expressed as a number count, fraction, or percent of achievement. Examples are the number of water meters read, number of customer calls received, or percent of customers rating the service as “good” or higher. I-5 GLOSSARY OF TERMS Term Definition PERSONAL SERVICES The costs of compensating employees of the City of Tucson, including salaries and employee benefit costs, such as health, dental, and life insurance, city contributions for retirement, social security, and workers’ compensation insurance. PRIMARY PROPERTY TAXES All ad valorem taxes, except the secondary property taxes, which can be used for any lawful purpose. PROGRAMS Desired output-oriented accomplishments which can be measured and achieved within a given time frame. Achievement of the programs advance the activity and organization toward fulfillment of a corresponding need. PROJECTS Unique assignments having a finite time span and a deliverable; normally associated with capital improvements such as roadway, neighborhood facilities, etc. RECURRING REVENUES Revenue sources available on a continuing basis to support operating and capital budgetary needs. RESTRICTED REVENUES Revenues which are legally restricted for a specific purpose by the federal, state, or local governments. REVENUES Income from taxes and other sources during the fiscal year. SECONDARY PROPERTY TAXES Ad valorem taxes or special property assessments used to pay the principal, interest, and redemption charges on any bonded indebtedness or other lawful long-term obligation issued or incurred for a specific purpose by a municipality, county, or taxing district; and assessments levied by or for assessment districts and for limited purpose districts other than school districts and community colleges pursuant to an election to temporarily exceed (up to one year) budget, expenditure, or tax limitations. SECONDARY TAX RATE The rate per one hundred dollars of assessed value employed in the levy of secondary property taxes. The assessed value derived from the current full cash value (market value) is the basis for computing taxes for budget overrides, bonds, and for sanitary, fire, and other special districts. SERVICES Costs which involve the performance of a specific service by an outside organization or other city organization. Examples of services include consultants, utilities, and vehicle maintenance. I-6 GLOSSARY OF TERMS Term Definition SIGNIFICANT CHANGES Explanations of financial differences between the current fiscal year adopted and the future fiscal year recommended or adopted budget amounts. The City of Tucson's biennial budget also includes explanations of the differences between the first and second year budgets. STREET AND HIGHWAY BONDS Revenue bonds which are secured by the city's Highway User Revenues and used for the construction of street, highway, and related capital projects. TAX LEVY The total amount to be raised by general property taxes for purposes specified in the Tax Levy Ordinance. TAX RATE The amount of tax levied for each one hundred dollars of assessed valuation. I-7 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING In Fiscal Year 2002, the City of Tucson implemented a major change in its financial statement presentation in compliance with Governmental Accounting Standards Board (GASB) Statement 34. The new rules changed the way state and local governmental financial information is communicated to citizens, the media, creditors, bond raters, and legislative oversight bodies. In addition to changes to the specific financial statements, a narrative analysis of the fiscal year’s financial activities is also presented. The basic financial statements now include both government-wide financial statements, which focus on the city as a whole, and fund financial statements, which focus on major individual funds. Both of these sets of statements categorize primary activities of the city as either governmental or business type. The government-wide Statement of Net Assets uses a full accrual, economic resources basis of accounting, which reflects all long-term debt and assets and incorporates depreciation of capital assets. This statement presents both governmental and business-type activities on a consolidated basis by column. Current year activity is displayed by functional category (e.g., Support Services, Neighborhood Services) and shows the gross cost of each function, the amount that gross costs are offset by program-related revenues (charges for services and grants), and the amount that is supported by general government revenues (e.g., taxes). In contrast, the fund financial statements use an accounting treatment similar to previous years. In the major fund statements within the fund financial statements, business-type activities are presented in the same manner as within the government-wide statements, i.e. full accrual basis. Governmental funds are presented on a current financial resource and modified accrual basis of accounting. This presentation is considered appropriate to demonstrate both legal compliance and how the city’s actual experience conforms to the budget. The primary difference between the fund financial statements and the previous Generally Accepted Accounting Principles (GAAP) presentation is that the emphasis is now on the major funds in either the governmental or business-type categories, with non-major funds summarized into a single column. The previous accounting model grouped funds by types, such as special revenue, capital projects, etc. BASIS OF ACCOUNTING FOR BUDGETARY PURPOSES In the “Required Supplementary Information” section, the city presents budgetary comparisons for the General Fund and any major special revenue funds; both the adopted and revised budgets are compared with actual figures on a GAAP basis. In the “Other Supplementary Information” section, the revised budgets for the non-major and enterprise funds are compared to actual GAAP figures. The city’s budget basis of accounting differs from GAAP requirements in the following ways: • Grant revenues are budgeted on a modified cash basis rather than a modified accrual basis. • Fund balances reserved for inventories are not recognized in the budget. • Certain expenditures (e.g., depreciation in proprietary funds) and revenues accrued under GAAP are not recognized on a budgetary basis. • Certain funds (e.g., internal service, trust, and agency funds) that must be reported under GAAP are not included in the budget. I-8 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting for Budgetary Purposes (Continued) Additional differences between budget and GAAP presentations are in how encumbrances and compensated absences are treated, as addressed below. ENCUMBRANCES The City of Tucson integrates encumbrance accounting into its budgetary methods for most governmental and proprietary fund types. Following GAAP, encumbrance accounting records purchase orders, contracts, and other commitments for the expenditure of monies as reservations of fund balance in the fund financial statements of governmental-type funds. Encumbrances outstanding at year-end are not recognized as expenditures for budgetary purposes. Funds appropriated for these commitments can be carried forward and rebudgeted the following fiscal year. COMPENSATED ABSENCES In the fund financial statements, the cost of employee vacation leave, sick leave, accumulated compensatory time, and any salary-related amounts are accrued in the proprietary funds as earned. I-9 INVESTMENT POLICY The City Charter and state statutes authorize the city to invest in obligations of the U.S. Government, its agencies and instrumentalities, money market funds consisting of the above, repurchase agreements, bank certificates of deposit, commercial paper rated A-1/P-1, corporate bonds and notes rated AAA or AA, and the State of Arizona Local Government Investment Pool. Investment maturities are scheduled so that maturing principal and interest, plus ongoing, non-investment, cash flow is sufficient to cover projected payroll, operating, and capital expenses as these become payable. Funds available for the day-to-day operation of the city may be invested in authorized investments with a final maturity not exceeding three years from the date of the investment. Monies not related to the day-to-day operation of the city, such as bond proceeds, may also be invested for a maximum of three years with maturities based upon anticipated needs. I-10 ACRONYMS Acronym Description ADA ADOT ARS AZ Americans with Disabilities Act Arizona Department of Transportation Arizona Revised Statutes Arizona BAC BPOC Budget Advisory Committee Bond Project Oversight Committee CDBG CIP COPs CPI Community Development Block Grant Capital Improvement Program Certificates of Participation Consumer Price Index EEC Economic Estimates Commission FTE FY Full-Time Equivalent Fiscal Year GAAP GASB GDP GIS Generally Accepted Accounting Principles Governmental Accounting Standards Board Gross Domestic Product Geographic Information System HURF Highway User Revenue Fund ICMA I-Net International City/County Management Association Institutional Network LTAF Local Transportation Assistance Fund MTCVB Metropolitan Tucson Convention and Visitors Bureau NCAA National Collegiate Athletic Association O&M Operating and Maintenance PC Personal Computer RNMFD Rio Nuevo Multipurpose Facilities District TCC TEAM TIF Tucson Convention Center Transportation Enterprise Area Management Tax Increment Financing VLT Vehicle License Tax YMCA Young Men’s Christian Association I-11 I-12 INDEX Acronyms................................................................................................................................................................... Adopted Changes ..................................................................................................................................................... Appropriations - Adopted Fiscal Year 2004 Summary and Pie Chart ............................................................ Area and Population Growth Charts .................................................................................................................... Benchmark Metropolitan Cities and 2000 Populations ..................................................................................... Benchmarking Project ............................................................................................................................................. Budget Adoption Resolution No. 19568.............................................................................................................. Budget Calendar for Fiscal Year 2004 .................................................................................................................. Budget and Research ............................................................................................................................................... Budget Overview...................................................................................................................................................... Capital Budget Summary......................................................................................................................................... Capital Budget Summary by Department - Table I............................................................................................ Capital Budget Summary by Funding Source - Table II.................................................................................... Capital Budget Summary of Operating Budget Impacts - Table III ............................................................... Capital Projects Funds............................................................................................................................................. City Attorney............................................................................................................................................................. City Clerk ................................................................................................................................................................... City Court .................................................................................................................................................................. City Court (Capital) .................................................................................................................................................. City Manager ............................................................................................................................................................. City Manager’s Message, City of Tucson 2004 Adopted Budget ..................................................................... City of Tucson Area and Population Growth Charts ........................................................................................ City of Tucson Components of the Total Financial Plan ................................................................................. City of Tucson Organization Chart Fiscal Year 2004 ........................................................................................ City of Tucson Officials and Directors ................................................................................................................ City of Tucson Residential Property Owner Tax Valuation - Fiscal Year 2003 Property Taxes................ City of Tucson Property Tax Summary................................................................................................................ City of Tucson Vision and Values Statement...................................................................................................... City Strategic Plan .................................................................................................................................................... City Strategic Plan Focus Areas and Strategies.................................................................................................... Classified Annual Salary Scales............................................................................................................................... Community Profile................................................................................................................................................... Community Services ................................................................................................................................................ Community Services (Capital) ................................................................................................................................ Comparison of General Purpose Revenues and Total Revenues .................................................................... Components of the Total Financial Plan ............................................................................................................. Comprehensive Planning Task Force ................................................................................................................... Debt Service Funds.................................................................................................................................................. Demographic Benchmarks ..................................................................................................................................... Development Services ............................................................................................................................................. Economic Benchmarks ........................................................................................................................................... Enterprise Funds...................................................................................................................................................... Environmental Management .................................................................................................................................. Environmental Management (Capital).................................................................................................................. Equal Opportunity Office ...................................................................................................................................... J-1 I-11 B-1 E-3 D-1 D-10 D-9 C-8 iv B-43 A-6 F-1 F-4 F-5 F-7 E-25 B-10 B-9 B-11 F-8 B-8 A-1 D-1 E-1 ii iii C-7 C-6 i G-1 G-4 E-47 D-4 B-13 F-9 E-4 E-1 B-29 E-24 D-16 B-28 D-11 E-22 B-35 F-26 B-51 INDEX Expenditure Adjustments to the Fiscal Year 2004 Budget ............................................................................... Finance ....................................................................................................................................................................... Fire ............................................................................................................................................................................ Fire (Capital) ............................................................................................................................................................. Fiscal Year 2004 City of Tucson Annual Salary Scale - Exempt ..................................................................... Fiscal Year 2004 City of Tucson Annual Salary Scale Police - Exempt ......................................................... Fiscal Year 2004 City of Tucson Annual Salary Scale Fire - Exempt ............................................................. Fiscal Year 2004 City of Tucson Annual Salary Scale Legal - Exempt .......................................................... Fiscal Year 2004 City of Tucson Annual Salary Scale Information Technology - Exempt..................................................................................................................................... Fiscal Year 2004 City of Tucson Annual Salary Scale - Non-Exempt Schedule ........................................... Fiscal Year 2004 City of Tucson Annual Salary Scale Police - Non-Exempt ............................................... Fiscal Year 2004 City of Tucson Annual Salary Scale Fire - Non-Exempt ................................................... Fiscal Year 2004 City of Tucson Annual Salary Scale Hourly (Seasonal or Intermittent) Schedule - Non-Exempt................................................................................................... Full-Time Equivalent Positions General Purpose Funds and Other Funds Fiscal Years 2003 and 2004 ........................................................................................................................... Full-Time Equivalent Positions Permanent and Non-Permanent Fiscal Years 2003 and 2004 ........................................................................................................................... General Expense (Capital) ...................................................................................................................................... General Fund ............................................................................................................................................................ Glossary of Terms.................................................................................................................................................... Historic Preservation Office................................................................................................................................... How to Use This Budget ........................................................................................................................................ Human Resources .................................................................................................................................................... Impact of Capital Projects on the Operating Budget......................................................................................... Independent Police Auditor ................................................................................................................................... Index........................................................................................................................................................................... Information Technology......................................................................................................................................... Intergovernmental Relations .................................................................................................................................. Investment Policy..................................................................................................................................................... Legal Requirements.................................................................................................................................................. Library ........................................................................................................................................................................ Library (Capital)........................................................................................................................................................ Livable Tucson Goals.............................................................................................................................................. Mayor and Council................................................................................................................................................... Neighborhood Resources ....................................................................................................................................... Neighborhood Resources (Capital)....................................................................................................................... Non-Departmental................................................................................................................................................... Number of City Employees per 1,000 Population Chart .................................................................................. Office of Economic Development ....................................................................................................................... Office of the Public Defender ............................................................................................................................... Officials and Directors ............................................................................................................................................ Operations................................................................................................................................................................. J-2 B-5 B-44 B-15 F-10 E-47 E-47 E-48 E-48 E-49 E-50 E-51 E-51 E-52 E-45 E-43 F-28 E-11 I-1 B-36 v B-45 E-38 B-26 J-1 B-46 B-41 I-10 C-1 B-17 F-11 G-5 B-7 B-19 F-12 B-52 D-2 B-39 B-27 iii B-48 INDEX Operations (Capital)................................................................................................................................................. Organization Chart Fiscal Year 2004 .................................................................................................................... Parks and Recreation ............................................................................................................................................... Parks and Recreation (Capital) ............................................................................................................................... Police .......................................................................................................................................................................... Police (Capital).......................................................................................................................................................... Position Changes to the Fiscal Year 2004 Budget .............................................................................................. Procurement.............................................................................................................................................................. Property Tax Summary............................................................................................................................................ Residential Property Owner Tax Valuation - Fiscal Year 2003 Property Taxes............................................ Revenue Adjustments to the Fiscal Year 2004 Budget...................................................................................... Revenue Descriptions.............................................................................................................................................. Revenue Detail - All Funds Summary .................................................................................................................. Revenues and Appropriations Summary - Fiscal Year 2004 Adopted............................................................ Revenues and Expenditures Comparisons........................................................................................................... Revenues - Adopted Fiscal Year 2004 Sources and Pie Chart.......................................................................... Rio Nuevo Project.................................................................................................................................................... Selected Economic Indicators - Tucson Metro Area......................................................................................... Solid Waste Management........................................................................................................................................ Solid Waste Management (Capital)........................................................................................................................ Special Revenue Funds............................................................................................................................................ Statement Required by Arizona Revised Statutes 42-17102 Relative to Property Taxation........................ Summary by Character of Expenditures .............................................................................................................. Summary of Expenditures by Department.......................................................................................................... Summary of Significant Accounting Policies....................................................................................................... Ten-Year Adopted Comparison - Total City Staffing........................................................................................ Ten-Year Adopted Comparison - Total City Staffing with Fiscal Years 2003 and 2004 ............................. Transportation .......................................................................................................................................................... Transportation (Capital).......................................................................................................................................... Tucson City Golf...................................................................................................................................................... Tucson City Golf (Capital) ..................................................................................................................................... Tucson Convention Center .................................................................................................................................... Tucson Water............................................................................................................................................................ Tucson Water (Capital)............................................................................................................................................ Tucson-Mexico Trade Office................................................................................................................................. Vision and Values Statement.................................................................................................................................. Zoning Examiner ..................................................................................................................................................... J-3 F-27 ii B-21 F-13 B-24 F-16 B-55 B-50 C-6 C-7 B-2 E-26 E-9 E-5 E-6 E-2 H-1 D-3 B-30 F-17 E-17 C-5 E-8 E-7 I-8 E-39 E-41 B-32 F-18 B-23 F-15 B-38 B-34 F-22 B-42 i B-37