VOLUME ONE BUDGET SUMMARY City of Scottsdale FY 2021/22 Budget Adopted FY 2021/22 Budget City of Scottsdale, Arizona Volume One Budget Summary City Council David D. Ortega, Mayor Betty Janik, Vice Mayor Tammy Caputi Tom Durham Kathy Littlefield Linda Milhaven Solange Whitehead Administrative Staff Jim Thompson, City Manager Amy Foster, Systems Integrator Sonia Andrews, City Treasurer Alan Lothson, Sys. Integration Supervisor Bill Murphy, Assistant City Manager Brent Stockwell, Assistant City Manager Judy Doyle, Budget Director Sylvia Dlott, CIP Budget Manager Megan Lynn, Sr. Budget Analyst Keith Marquis, Sr. Budget Analyst Rennie Melarkey, Budget Analyst Ana Lia Johnson, Operating Budget Manager Adam Samuels, Sr. Budget Analyst TABLE OF CONTENTS FY 2021/22 Adopted Budget – Volume One Budget Summary About Scottsdale Report to our Community ................................................................................................................................ 1 City Organization ............................................................................................................................................. 5 Scottsdale City Council ................................................................................................................................... 6 Charter Officers ............................................................................................................................................... 8 Community Profile .......................................................................................................................................... 9 Demographics ............................................................................................................................................... 13 Assets and Facilities .................................................................................................................................... 17 Capital Improvement Plan ............................................................................................................................ 21 COVID-19 Report .......................................................................................................................................... 25 Overview Executive Summary ....................................................................................................................................... 29 Final Budget Transmittal ............................................................................................................................... 41 Proposed Budget Transmittal ....................................................................................................................... 43 Distinguished Budget Presentation Award ................................................................................................... 53 What Works Cities Certification .................................................................................................................... 54 Budget Development Process ....................................................................................................................... 55 Budget Calendar ............................................................................................................................................ 64 Adopted Comprehensive Financial Policies and Governing Guidance .......................................................... 65 Fund Accounting - Fund Types...................................................................................................................... 70 Budget by Fund Total Budget Overview .................................................................................................................................. 71 Total Appropriation ....................................................................................................................................... 74 General Fund ................................................................................................................................................. 79 Special Revenue Funds ............................................................................................................................... 113 Transportation Fund ....................................................................................................................... 115 Preservation Fund ........................................................................................................................... 131 Tourism Development Fund ........................................................................................................... 139 Special Programs Fund................................................................................................................... 149 Debt Service Fund ....................................................................................................................................... 165 City of Scottsdale FY 2020/21 Adopted Budget - Volume One TABLE OF CONTENTS Debt Service Expense .................................................................................................................... 176 Long-Term Debt Outstanding ......................................................................................................... 179 Property Tax Supported Debt ......................................................................................................... 183 Legal Debt Margins ......................................................................................................................... 184 Bond Rating .................................................................................................................................... 187 Enterprise Funds ......................................................................................................................................... 189 Water and Water Reclamation Funds ............................................................................................. 191 Solid Waste Fund ............................................................................................................................ 209 Aviation Fund .................................................................................................................................. 221 Internal Service Funds ................................................................................................................................. 233 Healthcare Self Insurance Fund ..................................................................................................... 235 Fleet Management Fund ................................................................................................................. 245 Risk Management Fund .................................................................................................................. 257 PC Replacement Fund .................................................................................................................... 267 Grants & Special Districts Funds Grant Funds .................................................................................................................................... 273 Special Districts Fund ..................................................................................................................... 283 Capital Improvement Plan Funds ................................................................................................................ 289 City of Scottsdale FY 2020/21 Adopted Budget - Volume One Bennie Gonzales with Model of Civic Center Courtesy of the Scottsdale Historical Society and Scottsdale Public Library Table of Contents REPORT TO OUR COMMUNITY for Fiscal Year 2020/21 Celebrating 70 Years of Simply Better Service for a World-Class Community A lot has changed in 70 years, but one thing remains the same: Scottsdale’s commitment to Simply Better Service for a World Class Community. Scottsdale’s mayor and six council members govern the city. Along with 2,549 employees, 2,154 volunteers and 159 board and commission members, they serve more than 240,000 residents. This annual report provides an overview of the City of Scottsdale’s priorities, strategic initiatives, and performance measures. It is organized around the six strategic goals the city uses to achieve its mission. If you have comments or suggestions on how we can improve this document, please contact the City Manager’s Office: 480-312-2800 | citymanager@ScottsdaleAZ.gov Value Scottsdale’s Unique Lifestyle and Character Scottsdale honors the past while embracing the future Scottsdale residents continue to enjoy a high quality of life. Overall Quality of Life 97% Percent rating positively (excellent/good) Source: 2020 Scottsdale Community Survey Learn more at ScottsdaleAZ.gov, search “survey” Old Town Scottsdale Aerial View | 1959 Highlighted Accomplishments • Scottsdale’s Tourism and Events Department created micro-events in partnership with local Old Town businesses as part of Scottsdazzle and Western Week programming. This was to keep attendance under the 50-person pandemic threshold, while still delivering the western charm. The micro-events proved to be so successful that staff will continue providing these offerings into the future. Looking Forward • The Scottsdale General Plan 2035 will be on the November 2021 ballot for a public vote. The City Council unanimously adopted the plan in June 2021, which was developed working with a citizen review committee, city boards and commissions, city-wide public outreach with residents, and public hearings. Scottsdale Timeline 1951 Scottsdale incorporated 1955 Spring training comes to Scottsdale 1968 City Hall and Civic Center Library open Historical photos on cover and in this section are courtesy of Scottsdale Public Library, Scottsdale Charros and Scottsdale Historical Society. 1969 World’s first automated garbage pickup with a truck named “Godzilla” 1 Table of Contents Seek Sustainability Scottsdale strives to conserve and sustain our desert community Highlighted Accomplishments • The Scottsdale Fire Department created a new inspection program to reduce wildland fires related to new construction. • Scottsdale diverted 27 percent of recyclables collected from residential curbside recycling program from landfills through public outreach, educational programs, and technology. Residents can find more information by searching “Know Before you Throw” at ScottsdaleAZ.gov to ensure proper disposal of recyclables. Looking Forward • Scottsdale is partnering with Arizona State University to engage the public and develop a Sustainability Plan to be adopted by the City Council by the end of 2022. Godzilla Automated Garbage Truck | 1969 • The Scottsdale Water Resources Division plans to expand the Residential Outdoor Efficiency Checks program and integrate it into the customer WaterSmart portal to facilitate better customer water management and efficiency. The typical Scottsdale household pays less for monthly water, wastewater, trash and recycling service than the average rates for other Valley cities. $70 Actual bills may vary based on actual usage and size of property. Source: City of Tempe 2021 Chandler $92 Scottsdale $94 Average $132 Mesa Preserve Meaningful Open Space Scottsdale values our desert and green spaces Highlighted Accomplishments • The Scottsdale Parks and Recreation Department replaced playgrounds, resurfaced with wood fiber wood chips, and added shade structures at Rio Montana, Comanche, Shoshone, and Zuni Parks. • Scottsdale, along with the Preserve Commission, are gathering public input to develop and refine recommendations for the City Council regarding land acquisition, trailhead and trail master plans, and other projects impacting preserve operations. Mcdowell Sonoran Preserve established | 1994 Looking Forward • Construction of the Pima Dynamite Trailhead will be completed in Fall 2021, which will include a community celebration event. 1971 Indian Bend Wash project begins 2 1975 McCormick-Stillman Railroad Park opens 1985 Learn more at ScottsdaleAZ.gov, search “preserve” Fire sprinkler ordinance enacted 1995 Citizens approve first sales tax to acquire land for McDowell Sonoran Preserve Table of Contents Advance Transportation Scottsdale provides and maintains an outstanding transportation system Highlighted Accomplishments • 2,632,878 square yards of pavement on our city streets were treated, resulting in extended lifespan and deferred maintenance costs. This was coordinated with pavement maintenance projects to install 7.8 new bike lane miles, 7.4 buffered bike lane miles and 3.4 wider bike lane miles to improve rider comfort though greater separation from vehicles and to increase on-street active transportation options. Looking Forward • The Scottsdale Transportation and Streets Department is planning a comprehensive evaluation of the city’s transit system to help in achieving ridership goals, on-time performance and improve efficiencies through potential route changes. McDowell Road construction grading | 1970 Reporting Issues is EZ, ScottsdaleEZ Residents made 36,899 requests using ScottsdaleEZ. The number one request? Residential container repair. Have a broken recycling container or other issues? Report it at ScottsdaleAZ.gov, search “EZ.” Enhance Neighborhoods 5:24 minutes average police response time Scottsdale commits to create thriving present and future neighborhoods 5:29 minutes average fire response time Highlighted Accomplishments • The city leveraged new CARES Act and other funding sources to approve nearly $3.9 million in emergency rent and mortgage assistance through Vista del Camino’s Community Action Program (CAP) office. Fire Department public education and outreach connected with 15,264 people • Scottsdale Library launched a virtual branch called Pegasus for digital resource access and Pony Express @ Appaloosa to allow patrons to use the Appaloosa Library without library staff. Scottsdale libraries welcomed more than 285,000 visitors 12 volunteers with Vista del Camino & Paiute Neighborhood Centers • Scottsdale had an impressive 86 percent voter turnout for the 2020 General Election, with 76 percent of Scottsdale residents being registered to vote. 16,706 food boxes provided at senior and community centers Looking Forward • Construction of the Bell Road Sports Complex will be completed in time for a “soft opening” in December 2021, prior to the Barrett-Jackson Collector Car Auction and the Waste Management Phoenix Open in 2022. 2005 Scottsdale Fire Department created (prior fire service contracted) 2008 SkySong, the ASU Scottsdale Innovation Center opens Note: Reduced library and community center service due to COVID-19. 2013 Tony Nelson Equestrian Center opens at WestWorld 2021 David D. Ortega takes office as Scottsdale’s 12th mayor 3 Table of Contents Support Economic Vitality Scottsdale prioritizes economic and fiscal health Highlighted Accomplishments • The City of Scottsdale launched a small business training program for Scottsdale businesses impacted by the COVID-19 pandemic, which included 14 small business training sessions and one-on-one assistance. This is in addition to the over 20,000 virtual sessions offered on the ChooseScottsdale.com website. Looking Forward • The Scottsdale Airport will complete the runway rehabilitation project, which will remove and replace existing asphalt pavement for the full length, reconstruct the runway shoulders and blast pads, and relocate edge lighting to meet Federal Aviation Administration standards. Scottsdale Airport Aerial View | 1970 Resources and Expenses Scottsdale is required by law to adopt a budget each year and cannot spend more than that total amount. This includes all city funds for the fiscal year ending June 30. These numbers were adopted by the City Council in June 2021. The city’s financial statements are audited annually by an independent auditor. The most recent audit for 2020 received a clean opinion. The FY 2020/21 budget was designed to weather the financial difficulties brought on by the COVID-19 pandemic. However, the city has emerged on solid financial footing. While continuing to be conservative, the focus of the FY 2021/22 budget is to make progress in returning the city’s economy to its pre-COVID-19 levels. Resources (in millions of dollars) 2021 BUDGET 2022 Expenses (in millions of dollars) 2021 BUDGET BUDGET 2022 BUDGET $702.0 Fund Balances consist of accumulated surpluses from prior years held in contingency and reserve. $557.2 $251.0 $255.3 Contingency & Reserves are set aside for emergency use. $821.2 $536.8 Capital anticipated for designated purposes and not to be spent by year-end. $439.2 $822.8 $1,819.1 $690.9 $892.9 $2,131.7 $713.1 Taxes & Service Charges are collected to support city services and pay for debt service. $594.2 Total Resources Available $1,540.4 Learn more at ScottsdaleAZ.gov, search “budget” 4 Capital Budget is used to construct major facilities including buildings and roads. $1,785.3 Operating Budget pays for city services and the employees that provide those services. Maximum Expenditure Limit Some numbers may not add correctly due to rounding. Table of Contents CITY ORGANIZATION An Introduction to Our Leadership Scottsdale celebrated its 70th anniversary in 2021. The voter-approved City Charter established the Council Manager form of government, which combines the strong political leadership of elected officials with the professional experience of an appointed local government manager. People of Scottsdale Mayor & City Council Learn more at ScottsdaleAZ.gov, search “about” Citizen Advisory Groups COMMISSIONS Airport Environmental Historic Preservation Human Relations Human Services McDowell Sonoran Preserve Neighborhood Parks and Recreation Planning Tourism Development Transportation Veterans BOARDS Adjustment Building Appeals Development Review Judicial Appointments Library Loss Trust Fund Personnel Public Safety Personnel Retirement - Fire Local Public Safety Personnel Retirement - Police Local CITY MANAGER’S OFFICE Communications • Citizen Service • Diversity & Inclusion Government Relations ADMINISTRATIVE SERVICES Human Resources Information Technology COMMUNITY & City ECONOMIC Manager DEVELOPMENT Aviation Planning & Development Services • Economic Development • Tourism & Events COMMUNITY SERVICES Human Services Libraries Parks & Recreation Planning & Administration Preserve WestWorld PUBLIC WORKS Capital Projects Facilities Fleet Solid Waste Street Operations Transportation WATER Water Quality Reclamation Services Planning & Engineering Technology & Administration Water Services Pipeline & Treatment Agreements Accounting Budget Business Services Finance Purchasing City Attorney Presiding Judge City Court City Treasurer Charter Officers City Manager City Auditor City Clerk Assistant Police Chief Executive Leadership Assistant City Manager Civil Prosecution Risk Management Victim Services Fire Chief POLICE Office of the Police Chief Uniformed Services Investigative Services Operational Services FIRE Office of the Fire Chief Emergency Services Professional Services 5 Table of Contents Scottsdale City Council The City Council consists of the mayor and six council members who are elected to represent the city at large and serve overlapping, four-year terms. These seven citizens oversee city government as they set policy, approve programs, appropriate funds, enact laws, select charter officers, and appoint residents to serve on advisory boards. The mayor is the chair of the Scottsdale City Council and presides over its meetings, which are typically held on Tuesdays in the City Hall Kiva Forum located at 3939 N. Drinkwater Blvd. in Old Town Scottsdale. Mayor David D. Ortega Mayor David D. Ortega began his term of office in January 2021. He is focused on safeguarding public health and safety; maintaining Scottsdale’s family-friendly neighborhoods; protecting the McDowell Sonoran Preserve and strengthening Scottsdale’s world-renowned reputation. As mayor, he is committed to equal rights for all, responsive city government and adoption of citizen-driven General Plan 2035 to support economic vitality. Mayor Ortega is a registered Arizona architect and designed many landmark buildings in Old Town Scottsdale. He is a graduate of the University of Arizona and was an apprentice architect to Bennie Gonzales FAIA, the award-winning designer of Scottsdale City Hall, Civic Center Library and Scottsdale Center for the Performing Arts. Throughout his life, Mayor Ortega has served on numerous city, county and state commissions, and on many civic and nonprofit organizations including serving as a Scottsdale City Councilman from 2000 to 2004, on the Scottsdale Downtown Architectural Guidelines Committee, Scottsdale Development Review Board, the State of Arizona School Facilities Board and the Governor’s Latino Advisory Council. He is a member of the American Institute of Architects, Scottsdale Leadership and Friends of the Scottsdale Library. He is a past president of the Scottsdale Sunrise Rotary Club. Mayor Ortega and his wife, Rosemary Gannon, have been married for 40 years. They live in the Park Scottsdale neighborhood near Saguaro High School where they raised their children Alexandra and Luke. DOrtega@ScottsdaleAZ.gov • 480-312-2433 Councilwoman Janik began her first term on the Scottsdale City Council in January 2021. She was born and raised in Chicago and earned a Bachelor of Science in Chemistry from the University of Illinois Chicago. After college, she was employed by GD Searle, where her primary Councilwoman research concentrated Betty Janik on dissolving blood clots – an endeavor which was awarded in international publication. Thereafter she took time off to start a family. She taught math and science for nearly 10 years at both the middle school and high school levels in the Denver area. After relocating to Scottsdale, she has served in many volunteer roles including as the past treasurer of Protect Our Preserve and past president of the Board of the Coalition for Greater Scottsdale. She and her husband, Joe, a pediatric surgeon (now retired), have been married for 48 years. They have three grown children, all physicians, and eight delightful grandchildren. Linda Milhaven began serving on the Scottsdale City Council in January 2011 and was re-elected to a third term that began in January 2019. She has served in numerous volunteer capacities including Chair of the Board of Trustees of the Scottsdale Cultural Council, Councilmember Chair of the Board of the Linda Milhaven Scottsdale Area Chamber of Commerce and Chair of the Board of the Better Business Bureau. She was a member of Class VIII of Scottsdale Leadership and in 2009 earned their Frank B. Hodges Alumni Achievement Award. As part of her 30 year banking career, she was a community bank president in Scottsdale from 1993 to 2005. Councilwoman Milhaven graduated from Paradise Valley High School. She holds a Bachelor of Arts degree in Psychology from Wellesley College in Wellesley, Massachusetts, and a Masters in Business Administration from Columbia University in New York. BJanik@ScottsdaleAZ.gov • 480-312-2374 LMilhaven@ScottsdaleAZ.gov • 480-312-7454 6 Table of Contents Councilmember Durham began his first term on the Scottsdale City Council in January 2021. He grew up in a small town in Iowa and attended Cornell College in Mt. Vernon, Iowa, where he graduated Phi Beta Kappa and magna cum laude in 1977, with majors in philosophy and Councilmember history. After graduating Tom Durham from Cornell College, he attended New York University Law School. He then joined international law firm Mayer Brown, where he specialized in tax controversy, representing the firm’s clients in audits, trials, and appeals of local, state, and federal tax cases. During his time at Mayer Brown, he was recognized by Chambers USA as one of the top 25 tax controversy lawyers in the nation. Councilmember Durham retired from Mayer Brown in April 2015 and soon thereafter became a full-time resident of the city of Scottsdale. He served as treasurer of the Protect Our Preserve political action committee and has also volunteered as a mock trial coach at a local high school, teaching trial skills, teamwork, and the rules of evidence. His wife Martha serves as an Episcopal Deacon at a local church and they have two sons. TDurham@ScottsdaleAZ.gov • 480-312-7456 Kathy Littlefield began her second term on the Scottsdale City Council in January 2019. She has 25 years of financial and management experience. She co-founded (with her husband Bob Littlefield, who served three terms on the Scottsdale City Council from 2002 to Councilwoman 2015) and continues to Kathy Littlefield manage a successful Scottsdale-based computer company, NetXpert Systems, Inc. Her previous professional experience includes working in the Budget Office of the City of Plano, Texas, as an office manager for a local greetings company, and as the finance director for Girls Ranch, a nonprofit organization formerly in Scottsdale. She served as president of her Civitan Club (an organization that helps developmentally disabled and underprivileged children), where she was chosen “Civitan of the Year” for her efforts. Councilwoman Littlefield is a Scottsdale native. She attended the Scottsdale Unified Schools Ingleside Elementary and Arcadia High and graduated with distinction from Arizona State University in 1970 with a bachelor’s degree in business education. KLittlefield@ScottsdaleAZ.gov • 480-312-7412 Councilwoman Caputi began her first term on the Scottsdale City Council in January 2021. She has lived and worked in Scottsdale for over 20 years. She is the president and owner of Yale Electric West, Inc, a company she founded in Scottsdale in 2001. Councilwoman Caputi holds Councilwoman a Bachelor of Arts degree in Tammy Caputi Economics from Wellesley College in Wellesley, Massachusetts and a Master of Business Administration from Simmons University in Boston. Councilwoman Caputi is a Fellow with the Flinn-Brown Arizona Center for Civic Leadership and Leading for Change and current chair of the Scottsdale Coalition of Today and Tomorrow (SCOTT), an organization dedicated to promoting, enhancing, and improving Scottsdale’s quality of life and economic vitality through community education and involvement in public policy issues. Councilwoman Caputi along with her husband, Steve, enjoys many outdoor activities and physical pursuits. They have three young daughters who attend local public schools. Councilwoman Whitehead began her first term on the Scottsdale City Council in January 2019. She came to Scottsdale in 1996 from San Diego for ‘just six months’, fell in love with everything Arizona and never went back. Councilwoman Whitehead graduated Councilwoman from the University of Solange Whitehead Florida where she earned a degree in electrical engineering. She is an accomplished businesswoman, currently working in the real estate field. She served 10 years as executive director of the Environmental Fund for Arizona and in that capacity was named Arizona Wildlife Federation’s “Arizona Conservationist of the Year” in 2009. Councilwoman Whitehead is a former Scottsdale McDowell Sonoran Preserve Commissioner, proudly helped lead the monumental effort to pass Proposition 420 in November 2018 and provided funding for the initial 3D Printer Lab at Scottsdale Community College. She and her husband Mike have three grown children and spend a lot of time outdoors. TCaputi@ScottsdaleAZ.gov • 480-312-7402 SWhitehead@ScottsdaleAZ.gov • 480-312-7423 7 Table of Contents Charter Officers Highlighted Recognition The City Council hires six officers to advise them on policy issues and run day-to-day operations. They are collectively known as the charter officers because their positions are spelled out in the City Charter, a voter-approved document which describes the organization and authority of the city government in Scottsdale. These positions are the city attorney, city auditor, city clerk, city manager, city treasurer, and presiding city judge. The city manager is the chief executive officer and is responsible for about 90 percent of the city’s work force. Scottsdale Water awarded $1.5 million sustainability grant. Scottsdale Water – the city’s municipal water and sewer utility – has been awarded a $1.5 million grant from the U.S. Bureau of Reclamation to support the city’s long-term water supply sustainability program. The highly competitive WaterSMART Water and Energy Efficiency Grant provides funding for projects that “result in quantifiable and sustained water savings, increase the production of hydropower or support broader water reliability benefits.” Scottsdale was awarded the grant to support construction of its Aquifer Storage and Recovery (ASR) Well Field Project, which will enable the city to recharge a portion of its Colorado River surface water allocation received through the Central Arizona Project (CAP) into aquifers within the city’s service area. Neighborhood Advisory Commission recognizes the people that embody the Spirit of Scottsdale. Jim Thompson City Manager JThompson@ScottsdaleAZ.gov 480-312-2800 Sherry R. Scott City Attorney SScott@ScottsdaleAZ.gov 480-312-2405 The Spirit of Scottsdale awards, sponsored by the city’s Neighborhood Advisory Commission, recognize people and places that embody the spirit of our community by preserving, improving, and strengthening neighborhoods. The 2020 Group/Organization Winner was the small group of dedicated volunteers that form the Parada del Sol Committee, who work hundreds of hours each year to ensure this tradition continues. The 2020 Individual Winner honored Dana Close, whose efforts led to the City Council prioritizing the redevelopment of the McDowell Road Corridor. To showcase the improved neighborhood, Dana created the annual Scottsdale Home Tour events. Scottsdale celebrates staff through Employee Awards. The City of Scottsdale recognizes outstanding Sharron Walker City Auditor Ben Lane City Clerk Sonia Andrews City Treasurer Joseph Olcavage Presiding Judge SWalker@ScottsdaleAZ.gov 480-312-7756 SAndrews@ScottsdaleAZ.gov 480-312-2364 8 BLane@ScottsdaleAZ.gov 480-312-2412 JOlcavage@ScottsdaleAZ.gov 480-312-2442 performance and commitment in the annual Employee Awards Program. The winners were among 531 employees nominated in several categories. The Thanks to You award, which recognizes employees for providing such excellent service that residents contacted the city to say thank you, went to Denise Plug. Denise responded quickly to residents’ concerns of a destroyed monument. Vincent Durazo took home the Showing Caring and Compassion for Others award. Vincent went above and beyond to ensure a truck-loving young resident always got to see his weekly recycling pick up. It comes as no surprise that The People’s Choice Award went to the COVID-19 IT Response team, who ensured the city’s 2500+ employees were quickly set up and supported with technology allowing them to work remotely in just a few weeks. These highlight just a few of the 53 employees and group of volunteers honored this year. Find more recognitions and rankings at ScottsdaleAZ.gov, search “recognition” Table of Contents COMMUNITY PROFILE Welcome to Scottsdale, Arizona A World-Class Community Located in the beautiful Sonoran Desert, Scottsdale is nestled at the foot of the McDowell Mountains in the Valley of the Sun. Scottsdale is a premier community known for a high quality of life with attractive residential, working and shopping areas. It is an internationally recognized visitor destination and a thriving location for businesses of all kinds. Scottsdale consistently ranks among the nation’s best places to live, with top-rated schools, award-winning parks, low crime rates and a vibrant economy. Old Town Scottsdale is home to many restaurants, retail shops, art galleries and resort hotels. Scottsdale’s McDowell Sonoran Preserve is a permanently protected Sonoran Desert habitat encompassing nearly 48 square miles. There are recreational opportunities for everyone with many golf courses, tennis courts, parks, pools, bike paths and trails. Scottsdale was founded by Army Chaplain Winfield Scott in 1888 but was not incorporated until 1951 when Scottsdale was a small community of 2,021 residents situated on about two square miles of land. Today, Scottsdale has more than 240,000 residents enjoying the rich diversity of experiences offered within the city’s 185 square miles. Lunch program at Granite Reef Senior Center Scottsdale Civic Center Scottsdale Leadership 35th Anniversary Exhibit Paddle board yoga at McDowell Mountain Ranch Aquatic Center Hiking on the Gateway Loop Trail 9 Table of Contents One Civic Center Scottsdale Airport Work Hard, Play Hard Business Scottsdale is one of the state’s leading job centers with a robust economy anchored by bio-life science companies, high-tech innovation, financial services, tourism and corporate headquarters. More than 25,000 companies do business in Scottsdale, supplying roughly 200,000 jobs. SkySong, the ASU Scottsdale Innovation Center, is designed to help companies grow through a unique partnership with Arizona State University. Scottsdale’s downtown, Old Town Scottsdale, is an emerging center for high-tech businesses. To the north, the Scottsdale Airpark is the city’s largest employment area, and the Scottsdale Cure Corridor is a partnership of premier health care providers and biomedical companies. Tourism With great weather, fantastic scenery and a calendar full of special events, Scottsdale is a popular tourist destination in Arizona that welcomes millions of visitors annually. The city boasts many hotels and resorts, restaurants and spas. That activity adds up to big business. The annual economic impact of Scottsdale visitors is estimated at $3.3 billion dollars. Visitors generate more than $55 million dollars of annual tax revenue— representing about one in every five city tax dollars. Special Events Every January through March, Scottsdale captures the national spotlight with an eclectic mix of sport and cultural events that draw hundreds of thousands of spectators and millions of television viewers. Scottsdale resorts annually host Fiesta Bowl teams and Old Town becomes a focal point for pep rallies and fan parties. The Barrett-Jackson Collector Car Auction headlines a week of automotive attractions and becomes the star of more than 40 hours of live television coverage. The Waste Management Phoenix Open unfolds at Tournament Players Club Scottsdale, featuring more national TV coverage and the largest, loudest galleries in golf. The Scottsdale Arabian Horse Show — among the largest horse shows in the nation — and Scottsdale’s festive Parada del Sol Parade and Rodeo follow later. In March, Major League Baseball takes center stage. Old Town Scottsdale serves as the spring home of the San Francisco Giants and makes the city a home base for visiting fans and media from across the nation. Summer Solstice Celebration 10 Memorial Day Table of Contents Scottsdale Top Attractions 1. Pinnacle Peak Park 2. Preserve Gateway and Scottsdale’s McDowell Sonoran Preserve 3. TPC Scottsdale 5. Scottsdale Airport/Airpark 4. WestWorld 1 6. McCormick-Stillman Railroad Park 7. Indian Bend Wash Greenbelt 2 3 4 8. Scottsdale Fashion Square 9. Old Town Scottsdale 5 6 10. Scottsdale Historical Museum 7 11. Scottsdale’s Museum of the West 8 11 9 10 12 13 12. Scottsdale Stadium 13. SkySong 11 Table of Contents WestWorld Gallops Ahead of the Rest WestWorld captured the 2020 Facility of the Year Award in a national contest sponsored by The League of Agricultural & Equine Centers. This award recognizes not only one of the best event facilities in the nation, but it also demonstrates a commitment to safety and community service that makes Scottsdale a world-class community. WestWorld is nestled on 386 acres of pristine desert at the base of the McDowell Mountains. It encompasses more than 300,000 square feet of exhibition space that offers unlimited possibilities for event producers and planners. The facility hosts horse shows, auto auctions, expos, concerts and more. Annual major events hosted at WestWorld included the Barrett-Jackson Collector Car Auction, Scottsdale Arabian Horse Show, International Motorcycle Show, Good Guys Car Show and International Sportsmen’s Expo. With such a flexible space, WestWorld often hosts multiple events at once and boasts 531 days of special events last year alone! What all can you do at WestWorld? Run with the herd at a horse show. Prepare your needles for the Quilt, Craft, and Sewing Festival. Find treasures at the Junk in the Trunk Vintage Market. You can even spend the night in WestWorld’s RV park. Congratulations to WestWorld for standing out in a class of its own; you could call this facility “WestWorld-Class!” Learn more at WestWorldAZ.com 12 Table of Contents DEMOGRAPHICS Scottsdale by the Numbers: A Demographic Summary 1951 1960 2,021 1970 10,026 67,841 Source: U.S. Census (2020) 1980 1990 88,364 130,069 2000 2020 217,365 241,361 Nearly 5,000 people directly serve the residents of Scottsdale. Source: U.S. Census (2020) and City of Scottsdale Scottsdale is the 45th largest city in the U.S. by area. 6 Council Members Source: U.S. Census and City of Scottsdale (2010) 159 Board & Commission Members 1 Mayor Scottsdale’s Municipal Land Area History CAVE CREEK RD. 2010 202,705 Source: City of Scottsdale long range planning services SCOTTSDALE’S 241,361 CITIZENS 2,549 Employees ARE SERVED BY Annexation Year DYNAMITE BLVD. 2,154 Volunteers 31 miles long SCOTTSDALE RD. 2000 – Current 1990 – 1999 1985 – 1989 1980 – 1984 Scottsdale’s elevation rises by nearly 4,000 feet from south to north. Source: City of Scottsdale and Scottsdale Airport Weather Station (2020-21) 1975 – 1979 HAYDEN RD. 101 184.5 square miles FRANK LLOYD WRIGHT BLVD. SCOTTSDALE RD. SHEA BLVD. 1970 – 1974 1965 – 1969 1960 – 1964 1951 DE-ANNEXATION 85° 59° 91° 64° 108° 83° 4,877 ft Highest Point (Butte Peak) 1,510 ft 1952 – 1959 THOMAS RD. 68° 44° 1,150 ft Lowest point Scottsdale Airport Change in Elevation 11.4 miles wide 13 Table of Contents Scottsdale Residents Scottsdale’s median age of 47.7 is almost 10 years older than the U.S. median age of 38.1. Source: U.S. Census (2015-2019 ACS) Median Age: 47.7 Age Under 5 9,477 5–19 32,712 Nearly 4 out of 7 Scottsdale adults have earned a bachelor’s degree or higher. 20–24 13,166 25–54 96,472 55–74 71,685 75+ 27,090 One in five Scottsdale residents is a person of color. Source: U.S. Census (2015-2019 ACS) Source: U.S. Census (2015-2019 ACS) Hispanic or Latino: 10% Asian: 5% 58.4% (114,045) Two or more races: 2% Bachelor’s Degree or higher African-American: 2% Native-American: 1% White: 80% There are slightly more women than men in Scottsdale. Source: U.S. Census (2015-2019 ACS) 25.7% (50,081) Associate Degree/Some College 50.7% 49.3% (127,064) (123,538) Female 12.6% (24,689) High School Graduate 3.3% (6,432) Less than High School Graduate 195,247 Population 25 years & older 14 Male Table of Contents Scottsdale has the highest median housing price of any of the large Valley cities. Source: U.S. Census (2015-2019 ACS) Glendale $214,700 Mesa $226,500 Phoenix $235,400 Peoria $264,500 Tempe $272,900 Chandler $300,800 Gilbert $328,700 Scottsdale $475,300 More than 40 percent of Scottsdale households make more than $100,000 a year. Source: U.S. Census (2015-2019 ACS) 44.8% 28.7% less than $49,999 (33,120) $100,000 or more (51,700) $132,835 26.6% Mean Household Income $50,000-$99,999 (30,697) $88,213 Median Household Income The majority of housing units in Scottsdale are owner occupied. Source: U.S. Census (2015-2019 ACS) 138,809 total housing units 83% occupied housing (115,401) 66% owner occupied (76,438) 2.1% homeowner vacancy rate 17% seasonal & vacant units (23,408) 34% renter occupied (38,963) 7.3% rental vacancy rate 15 Table of Contents Health care, finance and technology firms lead the list of large employers.* 7,251 employees Source: Economic Development Department communications with employers, Summer 2020 2,800 employees 2,800 2,549 employees employees 2,544 employees 2,108 employees 1,915 employees 1,600 employees 1,474 employees 900 employees * Excludes grocers, convenience stores and traditional retail stores. Most Scottsdale residents work in management or office jobs. More people come to work in Scottsdale each day than leave to work in other communities. Source: U.S. Census (2015-2019 ACS) Source: U.S. Census Inflow/Outflow Analysis 2018 54% management, business, science, and arts 33,510 work/live in Scottsdale (70,838) 166,549 workers enter 25% sales and office 13% Scottsdale has 200,059 jobs (32,436) service (16,358) 3% natural resources, construction, and maintenance (3,892) 5% production, transportation, and material moving (6,730) 76,094 work elsewhere 130,254 civilian employed population (16 years & over) To view additional demographic information, visit ScottsdaleAZ.gov and search “about” Note: Total population is determined by the Decennial Census. Demographic numbers are based on five-year estimates. 16 Table of Contents Scottsdale employees provide Simply Better Service that help keep the community clean and healthy. Learn more at ScottsdaleAZ.gov, search “about” 8 WATER FACILITIES 74 MILLION GALLONS OF DRINKING WATER DELIVERED DAILY WASTE 52 SOLID TRUCKS 1,513 MILES OF SANITARY SEWERS 2,143 MILES OF WATER MAINS 17 Table of Contents Scottsdale employees provide Simply Better Service that help keep our World-Class Community safe. 4 POLICE STATIONS 344 POLICE VEHICLES 15 FIRE STATIONS RESPONSE 40 FIRE VEHICLES 311 TRAFFIC SIGNALS F ROADS O S E L I M ANE 2,852 L 11,480 FIRE HYDRANTS 18 Table of Contents Scottsdale employees provide Simply Better Service that enhance the quality of life of residents and visitors. 30,500 43 ACRES OF PRESERVE LAND 11 TRAILHEADS AND 232 MILES OF NON-MOTORIZED TRAILS IN THE PRESERVE 5 975 TOTAL ACRES 37 PLAYGROUNDS 68 ATHLETIC FIELDS 35 VOLLEYBALL COURTS 49 TENNIS COURTS 2 TENNIS CENTERS 1 RAILROAD PARK 39 BASKETBALL COURTS 3 OFF-LEASH AREAS PICKLEBALL & 27 RACQUETBALL COURTS 3 EQUESTRIAN FACILITIES FACILITIES 4 AQUATIC 5 SPRAY FEATURES 2 SKATE PARKS 1 BASEBALL STADIUM ED PATHWAYS, 151 U 129 MILES OF PAV NPAVED 2 SENIOR CENTERS 4 6 COMMUNITY CENTERS PUBLIC LIBRARIES 19 Table of Contents Scottsdale has a vibrant business community and is a destination for arts, dining and tourism. 52 HOTELS 9,164 ROOMS 1 AIRPORT DOING BUSINESS IN SCOTTSDALE 25,000 COMPANIES 7 MUSEUMS 107 ART GALLERIES & ART DEALERS 37 PUBLIC SCHOOLS 25,800 ENROLLMENT 868 RESTAURANTS ROUTES Y E L L O R T E E R 4 F 51 GOLF COURSES 531 DAYS OF SPECIAL EVENTS AT WESTWORLD 20 11 BUS ROUTES Table of Contents CAPITAL IMPROVEMENT PLAN The Capital Improvement Plan consists of the projects the city needs to build, repair, expand or maintain to serve the community. A five-year CIP is developed and updated annually, including anticipated funding sources. $821 million has been approved for capital improvements, with an estimated $284 million to be spent in the upcoming fiscal year 2021/22 based on the projected pace of project completion. These projects address City Council priorities and critical capital infrastructure needs in a variety of areas and are supported by different funding sources, including many directly funded by the city’s voters through a recent bond election. Notable capital improvement projects completed during FY 2020/21 and planned for the upcoming FY 2021/22 are highlighted below. Transportation Transportation programs focus on providing for the safe, efficient, and affordable movement of people and goods. This program meets this goal by attempting to offer real transportation choices in a way that meets the needs of the community. In 1989, voters authorized a 0.2 percent privilege tax to fund transportation operations and improvements. In 2004, voters approved a 20-year extension of a half-cent transportation sales tax in Maricopa County that was first approved in 1985 to fund freeway construction. This program looks for the best use of these funding sources and addresses the multi-modal concept. In 2018, voters approved a 0.1 percent privilege tax for a period of ten years for transportation improvement projects. Highlighted Accomplishment • Transportation completed several small projects in FY 2020/21 including turn lane improvements, roadway safety improvements and bike lane improvements. Looking Forward • Construction will begin on several large projects including on Raintree Drive from Scottsdale Road to Hayden Road, Pima Road from Pinnacle Peak Road to Happy Valley Road and on Happy Valley Road from Pima Road to Alma School Road. Bicyclists on multiuse path Service Facilities Service Facilities focus on coordinating land use and infrastructure planning within the context of financial demands and available resources. These programs achieve this goal through the renovation of current facilities and technology needs necessary for the efficient and effective operations of the city. Highlighted Accomplishment • The construction of building retrofits to the vehicle service bays at the North Corporation Yard was completed to allow for the inside servicing of vehicles powered by compressed natural gas. These retrofits keep the building and its occupants safe in the event of a CNG leak from one of the vehicles while it is being serviced. Looking Forward • The first phase of an Energy Savings Performance Contract will be started. This contract will assess city facilities and make recommendations for energy efficiency measures to be made within these facilities. 21 Table of Contents Public Safety Public Safety programs focus on enhancing and protecting a diverse, family-oriented community where neighborhoods are safe. This goal is met by providing fire and police stations, training facilities and automation systems related to fire and police operations. Highlighted Accomplishment • Fire Stations 603 and 616 were relocated to better serve the community and improve emergency response times. Fire Station 603 serves the communities and resorts in the northern area of Indian Bend Wash. Fire Station 616 provides emergency response coverage to nearly 19 square miles in the far northern section of Scottsdale. Looking Forward • Design will continue to advance on three projects renovating and reconstructing a large portion of the existing Tom Hontz Public Safety Training Facility. Fire Station 603 Fire Station 616 Drainage / Flood Control Drainage / Flood Control focuses on protecting a diverse, family-oriented community where neighborhoods are safe and well maintained by preventing property damage from flooding. This program achieves these goals through flood plain mapping, meeting regulatory requirements, and identifying and correcting hazards to reduce future flood damage potential. This is accomplished through the use of detention basins, culvert and channel projects, and a program of neighborhood drainage improvements. Highlighted Accomplishment • Construction was completed on a new trapezoidal channel, energy dissipating structure and large diameter storm drains to help collect and convey storm water runoff from north of the 101 Freeway in the vicinity of Hayden Road around the City of Scottsdale Water Campus and south to the Bureau of Reclamation retention basins within the TPC Golf Course. These improvements provide significant protection for the CrossRoads East area and surrounding lands. Looking Forward • The Reata Wash flood control project will continue through the design phase by completing 30 percent of the design plans and a Conditional Letter of Map Revision submittal to the Federal Emergency Management Agency (FEMA) for review. Once approved, the project will begin to move toward a 100% design and public outreach. 22 Table of Contents Preservation Preservation focuses on preserving the character and environment of Scottsdale. This goal is met by land acquisition activities for the McDowell Sonoran Preserve for the purpose of maintaining scenic views, preserving native plants and wildlife, and providing public access to the McDowell Mountains and Sonoran Desert. The 1998 election expanded the recommended study boundary from the original 12,876 acres to about 30,500 acres. The 2004 election provided an additional revenue stream (0.15 percent sales tax rate increase) as well as the bonding capacity ($500 million) that continues to provide authority to carry on preservation efforts. Highlighted Accomplishment • Construction was completed on small trail segments throughout the Preserve along with access control measures in several locations. Looking Forward • Construction will be completed for the new PimaDynamite Trailhead located on the northeast corner of Pima Road and Dynamite Road. Pima-Dynamite Trailhead renderings Water Management Water Management focuses on coordinating land use and infrastructure planning within the context of financial demands and available resources. The program achieves this goal by delivering safe, reliable water and providing water reclamation services. This program also reflects the city’s commitment to federal and state regulations. Highlighted Accomplishment • The Thomas Groundwater Treatment Facility was put into service. This facility is a reverse osmosis facility that treats a side stream of water from the adjacent Central Groundwater Treatment Facility. The added RO treatment will eliminate complex water blending plans, enhance groundwater availability and reduce the hardness in the water. Looking Forward • Water Resources will continue to monitor its system and identify and complete maintenance activities including both water and wastewater treatment plan upgrades and enhancements, water storage reservoir inspections and repairs and the inspection and repair of its sewer systems. Thomas Groundwater Treatment Facility rendering Thomas Groundwater Treatment Facility 23 Table of Contents Community Facilities Community Facilities programs focus on enhancing and protecting a diverse, family-oriented community where neighborhoods are safe and well maintained. These recreational needs are met by providing recreation facilities, parks, park improvements, multiuse paths, neighborhood enhancements, youth sports lighting, aquatic centers, library facilities and senior centers. Indian School Park tennis courts Highlighted Accomplishment • Bond 2019 – Project 10 – Replace Tennis Court Surfaces at Indian School Park and Scottsdale Tennis Center. This project reconstructed 23-year old asphalt tennis courts with new post-tensioned concrete courts. This upgrade will save an estimated $3 to $4 million in maintenance and repair costs over the 30-year life of the new courts. Scottsdale Ranch Park tennis courts Looking Forward • Bond 2019 – Project 1 – Replace Aging Infrastructure and Improve Public and Event Space on Civic Center Plaza. This project will design and reconstruct the Scottsdale Civic Center Plaza as the community’s signature special event and public gathering space while maintaining the park-like environment that residents enjoy year-round. Plans include an “event ready” venue with an iconic stage structure and construction is anticipated to begin late this fall. Master plan of Scottsdale Civic Center FY 2021/22 Adopted Capital Improvement Plan $821.2 Budgeted Program Expenditures (in millions of dollars)* $326.9 Learn more at ScottsdaleAZ.gov, search “budget” $258.6 *Excludes Capital Contingency appropriation of $28.3 million. Some numbers may not add correctly due to rounding. $104.8 $19.4 Drainage/ Flood Control 2.4% 24 $28.9 Public Safety 3.5% $40.1 $42.5 Service Facilities Preservation 4.9% 5.2% Community Facilities 12.7% Water Transportation Management 31.5% 39.8% Table of Contents COVID-19 REPORT COVID-19 Changed Everything: How did Scottsdale Respond? Scottsdale city staff have remained on the frontlines throughout this ongoing public health emergency. With a thoughtful and coordinated response, Scottsdale has confronted this crisis and continues to work through constantly changing circumstances and challenges. The city is fortunate to have received one-time federal resources through the CARES Act, meaning many of the highlighted pandemic services did not come from the general fund. This report is a short summary of the way the City of Scottsdale reacted, responded and is rebuilding as we remain in the grip of the COVID-19 pandemic. Regardless of how it evolves in the months ahead, the city is ready to handle it with the flexibility and strength we have developed since March 2020. Caring for Vulnerable Citizens The pandemic affected everyone – but the public health crisis rapidly created severe personal and family impacts in the form of job loss and housing uncertainty for many in the community. Scottsdale’s Human Services team, assisted by other city departments and partner organizations, stepped in to care for people in our community. Here are just a few of their efforts: • In Fiscal Year 2020/21, the team at Scottsdale’s Vista del Camino Community Center managed six COVID-19 rent and mortgage programs, qualifying more than 500 households for over $3.8 million in emergency assistance. over 500 households • The team also managed six utility assistance programs, through which residents who fell behind on utility payments received nearly $790,000 throughout the fiscal year • In addition, they provided a full array of assistance programs, including help finding jobs for those who lost work as businesses closed. After coming to the center feeling stressed and frustrated, this resident got the help he needed through the Vista Career Center – afterward, he left this voicemail: $3.8 million “Just got hired for a really good job. I wanted to call and say thank you for all your help and support and everyone that works in that building has been great. I cannot thank you enough.” • Senior citizens in Scottsdale were among those most affected – with higher levels of vulnerability to COVID-19, many rapidly became isolated and lost access to vital services. Senior Center staff quickly worked to provide meals and home wellness visits and went even further, creating ways for seniors to connect with others through group phone calls, virtual programs and daily exercise videos to keep seniors active. 25 Table of Contents Supporting the Business and Social Infrastructure of the Community Lockdowns and restrictions, while necessary to control the pandemic, were immediately and especially impactful on small restaurants and shops which comprise most of the 16,000 businesses registered in Scottsdale. The city created a handful of different programs in partnership with other organizations to promote and assist small businesses and arts organizations so they could weather the storm and continue to serve their vital roles in the community. Here are some highlights: over 1,000 hours over 400 businesses Scottsdale launched the Small Business Assistance Center on April 7, 2020. This virtual “one stop shop” for businesses seeking support programs and resources was created and administered by Economic Development and additionally staffed by five employees redeployed from other departments. The center is still operating and has provided more than 1,000 hours of assistance to more than 400 businesses. 200 businesses & organizations over 625K dollars Scottsdale also created a Small Business Reimbursement Program through which businesses can be reimbursed for supplies and equipment required to safely operate – nearly 200 businesses and organizations received more than $625,000 in reimbursements and assistance. 150 free banners to businesses Scottsdale Good to Go! During the initial stages of the pandemic, the Economic Development department partnered with the Scottsdale Area Chamber of Commerce to provide free banners to 150 businesses, providing immediate high visibility for those able to remain open to serve the community. over $1.1 million A variety of different arts and culture non-profit organizations serving Scottsdale were awarded grants totaling more than $1.1 million to support safely reopening to provide programs and services for the community. 26 Table of Contents Serving on the Frontlines Throughout the Pandemic This report proudly highlights many ways the City of Scottsdale served the community during the pandemic. In dozens of areas city staff pivoted to serve in new ways – the situation demanded creativity and flexibility. As important as it is to recognize these accomplishments, the bulk of the city organization simply continued to serve 24/7 on the frontlines without much fanfare. Scottsdale Fire and Police, Water, Solid Waste, Parks, Building Safety and many other city operations did not change what they did – they simply continued to do it, day after day, despite the danger and fear that COVID-19 brought. There are few specific statistics or accomplishments that illustrate this work, but these city leaders offered these thoughts about the unwavering commitment of city employees: “Throughout the pandemic, the Scottsdale Police Department continued to serve the community with excellence and compassion. I am profoundly grateful to our tireless and committed sworn and professional staff for their efforts during this unprecedented time in our history. We were creative and innovative in providing personnel safety through technology where possible, and by making sure protective equipment was there for those working face-to-face with the public. It was far from easy - the pandemic brought increased stress on the community and our staff - but we persevered through the professionalism and commitment of our team.” Jeff Walther, Police Chief “While many city operations were able to shift to telework, Scottsdale Water continued to serve the community with more than 200 frontline workers, treatment operators, lab technicians and support staff. These professionals treated, tested and delivered an average of over 71 million gallons a day of clean, safe drinking water and collected, treated, and recycled over 23 million gallons a day of sewage. This frontline service allowed residents and customers to shelter and work from home without a worry about their water and wastewater systems.” Brian Biesemeyer, Scottsdale Water Executive Director “The reality is you can’t perform maintenance on a fire truck, pick up the garbage, fix potholes or repair traffic signals by telecommuting – we’ve got well over 200 field employees in Public Works, including Solid Waste, Fleet, Facilities, and the field crews in Transportation and Streets, who came into work every day from day one of the pandemic. Despite all the challenges - the team never missed a beat. Demand for many of our services increased but we continued to provide the great service our customers have come to expect.” Dan Worth, Public Works Executive Director “I am immensely proud of the men and women of the Scottsdale Fire Department for continuing to care for our citizens and visitors with the highest degree of professionalism despite the threat of exposure and illness to themselves by this dreaded disease. Scores of our staff have contracted the virus in the course of their duties – and we all remain vigilant to maintain our capabilities in serving the community.” Tom Shannon, Fire Chief 27 Table of Contents Supporting a Healthy Scottsdale as We Build a More Resilient Community Even as we remain fully committed to confronting the ever-changing threats and challenges brought by COVID-19, we are equally committed to taking immediate lessons learned to building a stronger and more resilient city organization so that we can continue to provide Simply Better Service for a World-Class Community. Here are some of the ways we are doing it. • Scottsdale’s Emergency Management team has coordinated the city’s comprehensive COVID-19 response since March 2020. Managing resources and people from across the city, Scottsdale’s Emergency Manager and his cross-departmental team tackled early supply chain challenges, ensured efficient access to vaccines for essential employees and continues to manage logistics, operations and planning to mitigate the consequences of the virus within the community and on city operations. This comprehensive “all-hazards” emergency management strategy ensures the community remains safe and resilient as we continue managing through the pandemic. • A healthy Scottsdale starts with you. From the earliest days of the pandemic, the city’s flagship communication campaign encouraged safe practices to prevent the spread of COVID-19. Among the most visible efforts were hand sanitizer kiosks that were placed throughout Scottsdale Fashion Square during the 2020 holiday shopping season. • Information Technology was a crucial city operation as hundreds of employees and business processes had to be reimagined and redeployed – quickly. Working remotely was required of many staff and made possible through rapid redeployment of resources and technology. Within a week’s time, IT expanded the backend solutions needed to support 1,000 additional remote workers, including the city’s call center and 911 services. IT also launched widespread adoption of remote work and collaboration software to enable teams to stay connected and move the city forward as a substantial amount of work transitioned from onsite to remote. • The city is investing to make its public buildings safer. Many city facilities are being equipped with a combination of ultraviolet and ionization technology systems that can kill airborne viruses and improve indoor air quality. This advanced technology is already at work in major public venues like WestWorld’s Tony Nelssen Equestrian Center and the Scottsdale Center for the Performing Arts, and systems are planned for many other public facilities. • The City Clerk’s Office developed innovative ways to ensure civic engagement continued, safely. By quickly shifting to a virtual environment with electronic and telephonic public participation, the required City Council meetings were able to continue in a pandemic safe environment. New processes were also developed, tested, and implemented to create a hands-free depositing of legal documents and candidate nomination petitions with the City Clerk’s Office. An Ongoing Battle City emergency plans had always included contingencies for a global pandemic, but with no recent experience to tap, nothing anticipated the true magnitude of the situation. COVID-19 is first and foremost a public health emergency, but it quickly also became a logistical emergency, and a deeply impactful socioeconomic and political crisis. It touched every part of the community and changed every facet of city operations. 28 Table of Contents Scottsdale Stadium with Boston Red Sox Players and Sheriff’s Posse Courtesy of the Scottsdale Historical Society and Scottsdale Public Library Table of Contents OVERVIEW | Executive Summary Executive Summary The City of Scottsdale’s three budget volumes provide a comprehensive picture of the city’s financial plan for FY 2021/22. This Executive Summary complements that information highlighting items, issues and trends that shaped the budget. Current Year City Outlook As mentioned in the Final Budget Transmittal Letter, the city is emerging from a very challenging year but due to conservative budgeting practices that were taken in FY 2020/21, designed to weather the financial difficulties, it has emerged on solid financial footing. Most City facilities and services remained open for business throughout the pandemic, a few remaining facilities plan to reopen fully by the fall. In addition, the key Travel and Tourism sectors are heading in the right direction. While continuing to be conservative, the focus of the FY 2021/22 budget was to make progress in returning the city’s economy to its pre-COVID-19 levels. Current Year City Council Policy Decisions The following are the major policy items included in the city’s adopted FY 2021/22 budget. Each of these items were discussed during City Council’s public budget review sessions: • $40 million one-time payment ($35.0 million Police and $5.0 million Fire) and $3.5 million net increase in ongoing funding for pension related costs. • $15 million in anticipated funding from the American Rescue Plan Act (ARPA) to provide relief for the economic situation resulting from the COVID-19 pandemic. • 2.0 percent market adjustment of $4.0 million General Fund ($5.0 million all funds). • $3.7 million General Fund ($4.8 million all funds) for the citywide pay for performance program through which employees may receive salary increases based on performance (up to the maximum in their salary range). • $3.0 million General Fund ($3.7 million all funds) to address any employees whose salaries may have fallen below market comparisons. • $1.6 million in funding from FY 2020/21 in the Fleet Management Fund for vehicle replacements that were delayed due to the COVID-19 pandemic. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 29 Table of Contents OVERVIEW | Executive Summary • No Healthcare premium rate increases and one premium holiday for both the city and employees to be funded by a one-time drawdown of the Healthcare Self Insurance Fund of $1.4 million ($1.0 million city contribution and $0.3 million employee contribution). • $0.5 million in restored funding in the General Fund that was reduced in FY 2020/21 due to the COVID-19 pandemic. • $0.7 million to cover Public Safety – Police holiday overtime as a result of a change to pay for overtime which occurs in both actual and observed holidays, and to support the addition of Veteran’s Day as a city paid holiday added in FY 2018/19 but for which funding was not previously added. • $1.7 million from additional primary property tax collections ($674,000 due to the allowable 2 percent statutory adjustment and $652,000 for the statutory reach back for FY 2020/21, and $375,000 due to new construction on the tax rolls). Staffing Changes Staffing Changes – The city’s total FTE count for FY 2021/22 is 2,555.53 which is a net increase of 16.55 FTE from the prior year adopted budget. The positions that were added in FY 2021/22 were spread across divisions where needs had been identified. For example: • The addition of a Plumber (1.00 FTE) in the Public Works Division to meet increased demand. • The addition of two new Solid Waste Equipment Operators III’s (2.00 FTE) and a Solid Waste Equipment Operator II (1.00 FTE) to meet an increase in residential and brush and bulk removal demand. • The addition of a Traffic Engineering Technician (1.00 FTE) to assist with increased activity in the street right of way and complying with the Right of Way Management Program (RWMP). • The addition of an Asset Manager (1.00 FTE) in the Water Resources Division to begin an Asset Management program to oversee Water’s capital assets. • The addition of a Water Conservation Specialist (1.00 FTE) in the Water Resources Division due to expanded needs to process conservation rebates, additional staff workload for additional residential efficiency checks, an increased number of high-water use evaluations and higher demand for landscape water reduction programs. • The addition of a Stormwater Engineer (1.00 FTE) and Field Inspector I (1.00 FTE) in the Planning and Development Services Department to keep up with sustained workload. These staffing changes are summarized in the following schedule, using full-time equivalent positions (FTEs). 30 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Executive Summary Additionally, many divisions intentionally held some of their positions vacant in FY 2020/21 to assist in the effort to address budget concerns caused by the COVD-19 pandemic. This funding was restored in the FY 2021/22 budget. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 31 Table of Contents OVERVIEW | Executive Summary How the adopted budget will affect citizens’ property tax rates The FY 2021/22 primary property tax levy will be used to support General Fund activities such as police and fire protection, operation and maintenance of parks and libraries, and other general governmental functions. The primary property tax levy also includes a repayment to the Risk Management Fund reserve of $290,000 for tort liability claim payments made during calendar year 2021. For FY 2021/22, the city’s total primary property tax levy is $35.1 million and is an increase of $0.2 million over the FY 2020/21 levy of $34.9 million. The increase is due primarily to a 2 percent statutory adjustment for FY 2021/22, the 2 percent statutory adjustment that was foregone for FY 2020/21 but was taken in FY 2021/22 and new construction. The increase would have been greater but is being partially offset by a decrease in the tort liability claim payment for FY 2021/22. The FY 2021/22 primary property tax rate is $0.5039 per $100 of assessed valuation, which is a decrease of $0.0234 from the FY 2020/21 rate of $0.5273 per $100 of assessed valuation. The FY 2021/22 secondary property tax levy is set at $35.1 million, which is an increase of $1.7 million from the FY 2020/21 levy due to an increase in debt service payments as a net result of paying off prior general obligation debt and completing the first issuances related to the Bond 2019 program. However, due to increased property values, the secondary tax rate decreased by $0.0001 to $0.5042 per $100 of assessed valuation in FY 2021/22. The combined tax levy is the aggregate of the primary and secondary levies. For FY 2021/22, the city’s total combined property tax levy is $70.1 million, which is an increase of $1.9 million from FY 2020/21. In FY 2021/22, citizen tax bills will reflect an estimated combined property tax rate of $1.0081, which is $0.0235 less than the FY 2020/21 combined rate of $1.0316. The management of the combined property tax rate is included in the city’s adopted financial policies for debt management, which states that the combined tax rate will not exceed $1.50 per $100 of assessed value. Based on this combined rate, an owner of a home with a County Assessor’s real property value of $100,000 will pay approximately $100.81 in city property taxes, applying the combined property tax rate. The Maricopa County Assessor’s Office, not the City of Scottsdale, determines real property values used to calculate property tax bills. Changes from Proposed Budget to Adopted Budget The budget development process is an ever changing one. This is true not only in the ramp up to establish the Proposed Budget, but also in the period between the Proposed Budget and when the Final Adopted Budget is presented. Some of the most significant operating changes between the Proposed Budget and Adopted Budget publications include carrying forward the budget for vehicle purchases to FY 2021/22 due to delays in deliveries due to the COVID-19 pandemic; adding the FY 2021/22 budget for the American Rescue Plan (ARPA) funding once it was known; adding an unfunded contingency to possibly be used for affordable housing; and carrying forward unused Scottsdale AZCares funding into FY 2021/22. Changes also include those to CIP projects. Some of the more significant include moving up the timetable of Bond 2019 program funding to improve Pinnacle Peak Park and to renovate the Via Linda Police Station; and adjust funding to align the Crossroads East Waterline Project with the Infrastructure Improvement Plan (IIP). Fund Highlights The remainder of this Executive Summary highlights the key elements of each fund in the FY 2021/22 budget. The General Fund is presented first and in more detail because of its size and importance. 32 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Executive Summary General Fund - Sources The General Fund supports core services and is the largest fund with the greatest potential for revenue fluctuations. Forecasted General Fund sources for FY 2021/22 are $335.5 million, approximately $29.1 million (9.5 percent) more than the FY 2020/21 Adopted budget. The following bar graph summarizes the major sources. Note: Rounding difference may occur That total projected increase comes from a net of several different sources: • $21.6 million from a projected increase in general fund sales tax, including $1.9 million for the portion dedicated to Public Safety. • $7.1 million from a projected increase in the city's proportionate slice of state shared sales tax and vehicle license fees. • $1.7 million from additional primary property tax collections ($674,000 due to the allowable 2 percent statutory adjustment and $652,000 for the statutory reach back for FY 2020/21, and $375,000 due to new construction on the tax rolls). • $1.6 million from additional recreation fees as the city anticipates an increase in occupancy of recreation facilities and increased participation in recreation lessons and activities due to the lifting of COVID-19 restrictions and higher vaccination rates. • $0.8 million from a higher transfer from the Tourism Development Fund resulting from higher revenue anticipated and in accordance to Financial Policy 21A. • $0.7 million from Building Permits Fees & Charges due to an increase in anticipated construction activity in FY 2021/22 resulting in a higher demand for real estate permits. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 33 Table of Contents OVERVIEW | Executive Summary • $0.6 million from higher anticipated Water & Water Reclamation fund franchise fee revenue due to expected greater water deliveries compared to the four-year running average due to the lack of rain and excessive temperatures Scottsdale faced in FY 2020/21 and Sewer User Charge assumptions. • $0.4 million from miscellaneous revenue mostly related to a contract to provide Deputy Fire Chief services to Cave Creek and the recognition of new leases of vehicles as capital leases per Governmental Accounting Standards Board (GASB) requirements. However, this is truly a net $0 impact due to an equal increase to expense costs. The favorable amount would have been greater but is partially offset by: • ($3.4 million) decrease in the city's proportionate share of state income tax collections. • ($1.5 million) less interest earnings projected by the city's investment advisor using macroeconomic trends, all of which would have been transferred to the ClP. • ($0.5 million) decrease from Electric & Gas Franchise Fee revenue related to the Tax Cuts and Jobs Act of 2017, which allowed Arizona Public Service (APS) to pass corporate tax cuts on to customers as savings. General Fund - Uses The adopted FY 2021/22 General Fund uses budget is projected to be approximately $377.6 million (not including $87.7 million in contingency, reserve and designation), approximately $92.2 million (24.4 percent) more than the FY 2020/21 Adopted budget. The following bar graph provides a summary of the General Fund uses. Note: Rounding difference may occur The FY 2021/22 General Fund Uses increase when compared to the FY 2020/21 Adopted budget, after being adjusted for state and federal funding received for the COVID-19 pandemic, is primarily related to: • $40.0 million one-time paydown towards the city’s unfunded pension liability ($35.0 million Police and $5.0 million Fire) and $3.5 million net increase in ongoing funding for pension related costs. 34 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Executive Summary • $8.0 million transfer to CIP to fund two energy savings projects that will result in long term savings to the city. • $4.6 million from the food tax. As per Financial Policy No. 17, 2/3rds of the 1.10 percent sales tax collected on food for home consumption is to be transferred to the CIP fund. However, as per council’s direction, the FY 2020/21 adopted budget did not include the food tax portion as a transfer to CIP, because it was transferred to the operating contingency so funds could be available for unforeseen expenses related to the COVID-19 pandemic. The council has directed that this transfer to the CIP resume for FY 2021/22. • $4.0 million for a 2.0 percent market adjustment for all employees. • $3.7 million General Fund for the citywide pay for performance program through which employees may receive salary increases based on performance (up to the maximum in their salary range. • $3.0 million General Fund to address any employees whose salaries may have fallen below market comparisons. General Fund Ending Balance The FY 2021/22 budget includes the following: Operating Contingency – Operating Contingency includes $3.0 million of budget authorization in the event that unforeseen expenses occur during the fiscal year. Contingency funds are utilized only after all budget options have been considered and require City Council approval. Operating Reserve – The Operating Reserve complies with Reserve Management Financial Policy No. 36. The policy states the General Fund will maintain a stabilization reserve of ten percent of the annual General Fund operating expenditures which is to only be used for unforeseen emergencies or catastrophic impacts to the city. Maintaining a sufficient General Fund Reserve level is financially prudent. Based on the operating budget expenditure estimate, the ending FY 2021/22 General Fund Operating Reserve is $34.7 million. PSPRS Pension Liabilities – Public Safety Personnel Retirement System (PSPRS) is an Arizona pension system for public safety personnel. The FY 2021/22 PSPRS Pension Liabilities adopted budget is $28.1 million, which is a decrease of $55.2 million from the FY 2020/21 forecast mostly as a result of a one-time investment to pay down the unfunded liability of the Public Safety pensions. Cavasson Infrastructure Reimbursement – Designation created in FY 2019/20 for the Cavasson Development Project and the eligible infrastructure reimbursements associated with milestones achieved in phases one, two and three of the development agreement. The FY 2021/22 adopted budget is $21.9 million. Undesignated, Unreserved Fund Balance – Undesignated, Unreserved Fund Balance accounts for any funds remaining after the designation of all other reserves/uses. The FY 2021/22 ending undesignated, unreserved fund balance is $0.5 million. Under prudent fiscal management practices, this balance should most appropriately be used for one-time expenditures, not to fund new or to expand programs with ongoing operating expenses. Special Revenue Funds The city accounts for sources dedicated for specific purposes – by law or city policy – through Special Revenue Funds. There are four Special Revenue Funds – Transportation Fund, Preservation Fund, Special Programs Fund, and the Tourism Development Fund. The Transportation Fund accounts for Highway User Revenue Fund (HURF) dollars shared with cities from state gas taxes. However, the majority of the fund’s funding comes from the 1990 (0.20 percent) voter-approved sales tax and the state’s Local Transportation Assistance Fund, which is funded from lottery proceeds, and it is distributed to cities and towns through an annual application process. Total sources are expected to be about $42.5 million. Uses total about $48.0 million of which $27.5 million represents operating expenses. The operating expenses are those necessary to operate and maintain the city’s transportation system. The largest expenses include transit contracts, trolley maintenance, medians and rights-of-way maintenance and the street overlay program. Of the Transfers Out, $12.3 million is dedicated for transportation City of Scottsdale FY 2021/22 Adopted Budget - Volume One 35 Table of Contents OVERVIEW | Executive Summary capital projects per Financial Policy No. 26 (50 percent of the 1990 (0.2 percent) transportation sales tax revenue) and $8.0 million are for additional pay-as-you-go transfers above the 50 percent level authorized by the City Council. The Preservation Fund is used to account for sources and uses related to the acquisition of land for the Scottsdale McDowell Sonoran Preserve. Funding comes from the 1995 (0.20 percent) and 2004 (0.15 percent) voter-approved sales tax. Under the sales tax ballot language, the preservation sales tax revenues are to be used only for preserve acquisition, preserve related construction and trailheads. These sales tax revenues are forecasted to be $45.2 million. Approximately $31.5 million of this amount will be required for debt service payments for debt already issued for land purchases. The ending fund balance on June 30, 2022, is expected to be $62.3 million. The timing and amount of any future preservation bond issuances depends on revenue and the availability and price for state lands. The Special Programs Fund is a collection of smaller restricted sources dedicated to specific uses. The services included in these various programs are intended to be self-supporting and not subsidized by the General Fund. Examples of these funds include Public Safety - Police Racketeering Influenced Corrupt Organization (RICO) funds, the City Court’s Court Enhancement Funds (CEF), and the McCormick-Stillman Railroad Park funds. The Tourism Development Fund is a special revenue fund created to account for transient occupancy (bed) tax revenues and Fairmont Scottsdale Princess Hotel Lease payments which are to be used for tourism related activities and General Fund support. The fund currently has annual sources of $23.2 million, annual uses of $23.8 million (includes authorized carryovers from prior fiscal years) and a projected June 30, 2022 ending fund balance of $5.9 million. Debt Service Fund The Debt Service Fund is designated for payment of long-term debt. Total sources are $88.6 million for FY 2021/22. The $88.6 million budget for debt service payments in FY 2021/22 is approximately $1.1 million more than the FY 2020/21 Adopted Budget primarily due to the level of anticipated principal and interest payments that are expected to be due in FY 2021/22. Enterprise Funds Enterprise Funds account for the city’s water and water reclamation, solid waste and aviation services, which operate as standalone businesses. User fees are assessed to cover cost of services. Water Fund – Revenue requirements for the Water Fund are impacted by increasing actions required for asset and system replacement, drought preparedness, rising costs of raw water, increasing maintenance of aging infrastructure, and the increasing cost of technology required to operate the city’s sophisticated water systems. Other factors affecting the Water Fund revenue requirements over the five-year planning period include: • Operating cost increases for raw water and treatment chemicals • New groundwater treatment operating costs to improve the reliability and water quality of south Scottsdale wells • Additional staff to support system expansion, capital improvement program development, and water conservation • Operating cost increases for personnel services and benefits Increases to base fees were adopted to better reflect the recovery of fixed operating costs and adjusted to capture the demand availability designed into the system. Adopted volumetric rate changes for residential customers include an increase in tiers three through five and commercial customers include an increase in tiers three and four. To address cost recovery, increases to water miscellaneous charges were adopted effective July 1, 2021, to meet the city’s financial policy that requires all direct and indirect costs of service to be recovered. Miscellaneous charges are assessed to specific users of the service so that general rate payers do not bear the burden. 36 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Executive Summary Overall, the water base fee and rate adjustments are forecasted to generate an annual revenue increase of approximately $2.9 million, or 2.7 percent, and are effective November 1, 2021. Water Reclamation Fund – Revenue requirements for the Water Reclamation Fund are impacted by asset and system replacement, capital costs for wastewater treatment and collection systems improvements to address aging infrastructure, and the increasing cost of technology required to operate the city’s sophisticated wastewater systems. Other factors affecting the Water Reclamation Fund revenue requirements over the five-year planning period include: • Maintenance cost increases to maintain service levels for sewer system cleaning • Maintenance cost increases of system infrastructure due to increased system demand • Operating cost increases for personnel services and benefits Increases to base fees were adopted to better reflect the recovery of fixed operating costs and adjusted to capture the demand availability designed into the system. Volumetric rate increases were adopted to generate sufficient revenues to maintain the Water Reclamation fund as a self-sustaining enterprise. Overall, the sewer base fee and volumetric rate changes are forecasted to generate an annual revenue increase of approximately $1.0 million, or 2.4 percent, and are effective July 1, 2021. Solid Waste Fund – The Solid Waste Fund accounts for the transactions related to the city’s commercial and residential refuse, recycling, brush and bulk collections business activities. To maintain the revenue requirements of the Solid Waste Fund, modifications to the residential and commercial solid waste rates were implemented effective July 1, 2021 and are expected to generate approximately $1.2 million in additional revenue. Revenue requirements for the Solid Waste Fund for FY 2021/22 were primarily impacted by landfill disposal costs, recycling processing costs, vehicle replacement costs, vehicle loss, COVID-19 challenges and costs related to a four-year process to convert containerized alley collection to curbside collection. Total Solid Waste Fund sources are expected to be about $26.4 million, annual uses are expected to be $27.1 million, and ending fund balance is projected to be $6.5 million by June 30, 2022. Aviation Fund – The Aviation Fund accounts for the transactions related to the city’s aviation business activity at the Scottsdale Airport. Total Aviation Fund sources are expected to be about $6.3 million, annual uses are expected to be $5.8 million, and ending fund balance is projected to be $5.2 million by June 30, 2022. Internal Service Funds Internal Service Funds account for services and equipment provided to all city divisions by centralized functions. There are four Internal Service Funds – Fleet Management, PC Replacement, Risk Management and Healthcare Self Insurance. The Fleet Management Fund accounts for the costs of operating, maintaining, and acquiring all of the city’s vehicles, equipment and other rolling stock. User divisions are assessed maintenance and operation costs ($9.0 million), acquisition costs ($10.0 million), and fuel costs ($3.6 million). Fleet Management establishes, collects, and manages funds to provide acquisition and/or replacement of approved fleet assets based on life cycle cost analysis performed on each equipment class. Fleet Management, in cooperation with the corresponding division, calculates an annual rate for each individual asset based on condition, suitability for service, the state of the current economy, the repair history, the actual utilization rate of each asset and other applicable factors. The fund balance of about $3.4 million estimated on June 30, 2022, represents funds previously collected for maintenance, operations and vehicle/equipment acquisitions that will be expended in future years. FY 2021/22 budget includes the carry-over of funding for vehicle and equipment acquisitions from FY 2020/21 that were delayed due to the COVID-19 pandemic. The PC Replacement Fund accounts for the uses associated with purchasing computers, monitors and printers. Acquisition of computers, monitors and printers is charged to the city divisions as an internal operating charge based on the quantity and type of hardware used. For FY 2021/22, user divisions are assessed estimated costs of $0.8 million, leaving an estimated ending fund City of Scottsdale FY 2021/22 Adopted Budget - Volume One 37 Table of Contents OVERVIEW | Executive Summary balance of $1.3 million on June 30, 2022. User fees were reduced for FY 2021/22 due to efforts to utilize undesignated, unreserved fund balance. The Risk Management Fund accounts for the activity related to the city’s property, liability, and workers compensation programs. User divisions are assessed estimated costs of $11.0 million. The estimated ending fund balance on June 30, 2022, of about $26.1 million is within the actuarial estimate of the reserves required to ensure the long-term sustainability of the fund and complies with the governing body’s (Loss Trust Fund Board) requirement to maintain an 85 percent confidence level in the actuarial assessment. The Healthcare Self Insurance Fund accounts for the activity related to employee healthcare programs (medical and dental). The estimated $36.3 million in healthcare costs is shared by the city, its employees and public safety disabled retirees. For FY 2021/22, there was a $0.4 million increase in uses compared to the FY 2020/21 adopted budget. With the benefits plan, employees and applicable spouses/partners can earn an incentive payment of up to $240 by completing a wellness exam and health risk assessment to help offset the increase in premiums. Additionally, employees and spouses/partners can receive an additional $20 per month incentive if, through their doctors, they report blood pressure results within certain approved ranges. Finally, there is a tobacco surcharge of $20 per month for employees and/or family members who self-report the use of tobacco products. The Healthcare Self Insurance Fund also includes no premium rate increases this year as well as one premium holiday for both the city and employees. The premium holiday will result in drawing down the Healthcare Self Insurance Fund ending fund balance by $1.4 million. The estimated ending fund balance on June 30, 2022 of $14.3 million includes: 1) a reserve for large claims beyond what was anticipated and for incurred but not reported claims; 2) an operating contingency used only for unforeseen emergencies; 3) a premium stabilization reserve to ensure revenue from premiums exceed medical and dental claims and administrative expenses paid by the healthcare plan; and 4) an undesignated, unreserved fund balance which accounts for any remaining funds after the designation of all other reserves/uses. Under prudent fiscal management practices, the undesignated, unreserved fund balance should most appropriately be used for one-time uses, not to fund new or to expand programs with ongoing operating expenses. Grants and Special Districts Funds Each year the city receives Grant Funds from a variety of federal, state, regional and local agencies. Within the $27.6 million total grants are three larger grants – American Rescue Plan Act funding of $14.6 million, Housing Choice Voucher Program at $6.4 million and the Community Development Block Grant (CDBG) at $1.5 million (plus $0.8 million for the Rehab Revolving Loan). In addition to numerous identified smaller grants, the city includes $9.3 million in the grant budget for anticipated and/or unidentified future grants. This gives the City Council the budget authority to accept and spend grant funds that are not specifically known at the time the budget is adopted. This practice also allows the city to comply with state budget laws regarding annual expenditure limits. The ending fund balance of the individual grants is carried forward to future periods, re-budgeted, and is available to be spent solely for the intended purposes. A Special Districts Fund is used to account for the proceeds received from property owners in the city’s 355 streetlight districts. The intention is that only the amount needed to provide the service is assessed to the customer. Sources are estimated at $0.5 million and uses are estimated at $0.6 million for FY 2021/22. If an ending fund balance of the Special Districts Fund exists, it is carried forward to future periods and is available to be re-budgeted but must be spent solely for the intended purposes. Capital Improvement Plan A separate, key component of the city’s annual financial plan is the five-year Capital Improvement Plan (CIP) for infrastructure and public facilities – including roads, water and water reclamation improvements, parks, buildings and information technology. Projects listed in the capital budget are funded by a combination of funding sources and typically take multiple years to complete. Some of the funding sources include the city’s transportation sales tax; voter approved general obligation bonds (including Bond 2019), user fees, grants, Proposition 400 Regional Transportation Sales Tax, voter-approved Preservation Sales Tax, development impact fees and General Fund transfers. The city established a fund for each funding source to track the diverse resources used to pay the acquisition or construction of major capital projects. Below is a summary of the $821.2 million capital budget highlights by program, along with some notable examples in each capital program area: 38 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Executive Summary Community Facilities ($104.8 million) – focuses on providing library improvements, parks, park improvements, multiuse paths, neighborhood enhancements, youth sports lighting, aquatic centers, library facilities and senior centers. Approximately 12.7 percent of the CIP addresses the needs of this program. Significant Community Facilities projects include the continuation and initiation of various Bond 2019 program projects. Some examples are the 1 - Replace Aging Infrastructure and Improve Public and Event Spaces on Civic Center Plaza; the 23 - Repair Lakes and Irrigation at Vista del Camino Park in the Indian Bend Wash and; the 53Build Multi-Use Sport Fields in the area of Bell Road. Preservation ($42.5 million) – addresses the goal of preserving the character and environment of Scottsdale. This goal is met by land acquisition activities for the Scottsdale McDowell Sonoran Preserve for maintaining scenic views, preserving native plants and wildlife, and providing public access to the McDowell Mountains and Sonoran Desert. Approximately 5.2 percent of the CIP addresses this program. Significant preserve projects include the restoration of habitat; invasive plant, wildland fire prevention and safety improvements; and the construction of the Pima/Dynamite Trailhead. Drainage and Flood Control ($19.4 million) – addresses flood plain mapping, meeting regulatory requirements, and identifying and correcting hazards to reduce future flood damage potential. This is accomplished using detention basins, culvert and channel projects, and a program of neighborhood drainage improvements. Approximately 2.4 percent of the CIP addresses the drainage and flood control needs of the city. Major Drainage and Flood Control projects the continuation of construction for the Granite Reef Watershed Phase 1 improvements between south of Indian School Road to the Salt River; and the reduction in the size of the Reata Wash Floodplain. Public Safety ($28.9 million) – addresses the construction, acquisition, and purchase of capital assets for the Police and Fire Departments, such as fire and police stations, training facilities and automation systems related to fire and police operations. Approximately 3.5 percent of the CIP addresses the public safety needs of the city. The Public Safety budget includes key projects such as acquiring land for fire station 612 and the initiation of various Bond 2019 program projects. Some examples are the 38Build a New Fire Department Training Facility and the 33-Renovate the Via Linda Police Station to Increase Efficiency projects. Service Facilities ($40.1 million) – addresses the goal of coordinating land use and infrastructure planning. These programs achieve this goal through the renovation of current facilities and technology necessary for the efficient and effective operations of the city. Approximately 4.9 percent of the CIP addresses this program. Service Facilities projects include Facilities Upgrade and Replacement Program, Network and Server Infrastructure Replacement Program; energy performance projects; and the initiation of various Bond 2019 program projects. Some examples are the 63-Build Parking Structures in Old Town Scottsdale; the 9-Install Fiber Optic Infrastructure to Reduce Operating Costs and solar system installation and upgrade projects. Transportation ($258.6 million) – addresses multi-modal transportation needs. Approximately 31.5 percent of the CIP addresses the transportation needs of the city. Significant Transportation projects include Runway 03/21 rehabilitation and reconstruction; the construction of the extension of Raintree Drive west of Hayden Road; the construction of Pima Road from Pinnacle Peak Road to Happy Valley Road; the construction of Happy Valley Road from Pima Road to Alma School Road; the continuation of the pavement overlay program; and transit stop improvements. Water Management ($326.9 million) – focuses on the capital needs required to deliver safe, reliable water and to provide water reclamation services. This program also addresses the requirement to achieve federal and state regulations. Approximately 39.8 percent of the CIP addresses the water and water reclamation needs of the city. Significant projects include the design and construction of multiple projects to keep water treatment facilities functioning properly. The five-year CIP uses conservative financial forecasts and reflects only those high priority projects expected to be started and often completed during the next five years. This approach helps the city manage operating costs for new facilities and avoids raising expectations for projects that are not well defined. The budget continues the practice of leveraging one-time elastic revenue from the General Fund (e.g., construction sales tax and development fees) to help pay for capital projects. The municipal bond rating agencies view this as a sound fiscal practice. In FY 2021/22, the budget assumes the General Fund will transfer a total of $16.9 million to the CIP. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 39 Table of Contents OVERVIEW | Executive Summary Conclusion The goal of this summary is to provide the reader with the key highlights most likely of interest to readers. For readers requiring greater levels of detail and information, they are encouraged to review the rest of Volume One (Budget Summary), Volume Two (Division Operating Budget), and Volume Three (Capital Improvement Plan). 40 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents City of Scottsdale FY 2021/22 Adopted Budget - Volume One 41 Table of Contents 42 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents City Manager’s Office Jim Thompson, City Manager 3939 N. Drinkwater Blvd. Scottsdale, AZ 85252 PHONE 480-312-2850 FAX 480-312-9055 WEB www.ScottsdaleAZ.gov Fiscal Year 2021/22 Proposed Budget Transmittal Honorable Mayor and City Council: With a historic year behind us, I am pleased to present the proposed Fiscal Year 2021/22 budget for your consideration. The city is on solid financial footing and over the coming fiscal year, we expect to emerge from the COVID-19 global pandemic and once again return focus to a number of citywide priorities. The current fiscal year budget was developed amidst incredible uncertainty, with the global pandemic touching every element of the city's economy, finances and services. When creating that budget, we curtailed revenue projections and took steps necessary to manage the city's finances, including eliminating contract positions and freezing most hiring across the city. Those actions had the intended effect - Scottsdale recalibrated its budget to weather the financial difficulties, and we are now positioned to move forward in the new fiscal year. Despite the continuing negative effects of the pandemic on our key travel and tourism sectors, revenue growth is projected to rebound substantially next fiscal year. Our spending will remain cautious, but projected growth will allow us to continue investing in our high-performance employees. Staff is analyzing the American Rescue Plan Act funds recently approved by the U.S. Congress that we are to account for in FY 2021/22 and 2022/23, and will be prepared to discuss proposed uses with the City Council prior to tentative budget adoption in May. The most substantial new spending allocation comes in the form of a $40.0 million pay down toward our unfunded public safety pension liability - the first significant payment from the General Fund PSPRS reserve designation that was established several years ago. I am pleased to present a balanced budget proposal where ongoing sources exceed ongoing uses and is conservative in approach while being optimistic about continued growth in the year ahead. Sources General Fund sources are estimated to increase $28.9 million from the adopted FY 2020/21 budget. That total projected increase comes from several different sources. Below highlights the sources contributing significantly to the change: City of Scottsdale FY 2021/22 Adopted Budget - Volume One 43 Table of Contents • $21.6 million from a projected increase in general fund sales tax, including $1.9 million for the portion dedicated to Public Safety. • $7.1 million from a projected increase in the city's proportionate slice of state shared sales tax and vehicle license fees; however, this estimate is subject to change as the state may update estimates later in the budget process. • $1.7 million from additional primary property tax collections ($674,000 due to the allowable 2 percent statutory adjustment and $652,000 for the statutory reach back for FY 2020/21, and $375,000 due to new construction on the tax rolls). • $1.6 million from additional recreation fees as the city anticipates an increase in occupancy of recreation facilities and increased participation in recreation lessons and activities. • $0.8 million from a higher transfer from the Tourism Development Fund resulting from higher revenue anticipated and in accordance to Financial Policy 21A. • $0.6 million from miscellaneous revenue mostly related to a contract to provide Deputy Fire Chief services to Cave Creek and the recognition of new leases of vehicles as capital leases per Governmental Accounting Standards Board (GASB) requirements. • $0.7 million from Building Permit Fees & Charges due to an increase in anticipated construction activity in FY 2021/22, resulting in higher demand for real estate permits. • $0.4 million from higher enterprise franchise fee revenue anticipated from the Water &Water Reclamation Funds. • $0.3 million in the indirect cost allocation to cover increased costs of providing internal services (e.g. human resources and information technology to the Enterprise Funds). The increase would have been greater but is being offset by: • ($3.4 million) decrease in the city's proportionate share of state income tax collections. • ($1.5 million) less interest earnings projected by the city's investment advisor using macroeconomic trends, all of which would have been transferred to the CIP. • ($0.5 million) from Electric & Gas Franchise Fee revenue related to the Tax Cuts and Jobs Act of 2017, which allowed APS to pass corporate tax cuts on to customers as savings. • ($0.3 million) in Photo Radar based on an anticipated decrease in filings resulting from the COVID-19 pandemic, which may continue into FY 2021/22. The secondary property tax levy will increase $1.7 million next fiscal year to $35.1 million as a net result of 44 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents paying off prior general obligation debt and completing the first issuance related to the Bond 2019 program. Despite the increase to the levy, there was a minor secondary decrease from 0.5043 to 0.5042 due to expected increases in property values. Uses After adjusting for state and federal funding received for the COVID-19 pandemic, a large PSPRS paydown towards the city's unfunded pension liability, FY 2020/21 mid-year merit and market adjustments, and two significant transfers to the CIP, the proposed General Fund operating budget for next fiscal year increases spending by $30.1 million from the FY 2020/21 adopted budget to address increasing costs and priority programs in a variety of areas. The proposed FY 2021/22 operating budget includes funding to reflect the City Council's continuing commitment to invest in our high-performance organization and employees: • A 2.0 percent market adjustment of $4.0 million General Fund ($5.0 million all funds). The proposed FY 2021/22 budget also includes $3.0 million General Fund ($3.7 million all funds) to address any employees whose salaries may have fallen below market comparisons. • $3.7 million General Fund ($4.8 million all funds) for the citywide pay for performance program, through which employees may receive salary increases based on performance (up to the maximum in their salary range). Addressing Pension Expenses As mentioned earlier in the letter, the General Fund budget includes a $40.0 million one-time payment ($35.0 million Police and $5.0 million Fire), and a $3.5 million net increase in ongoing funding for pension related costs. Of this: • $2.4 million for increased Public Safety Personnel Retirement System (PSPRS) (for sworn police and • fire employees) contribution rates. $1.1 million for increased Arizona State Retirement System (ASRS) employer contributionrates. CIP Transfers The total FY 2021/22 CIP transfer from the General Fund operating budget is $16.9 million and ensures compliance with Financial Policy No. 17. Worth noting when comparing the FY 2021/22 CIP Transfers Out to the FY 2020/21 Adopted CIP Transfers Out: City of Scottsdale FY 2021/22 Adopted Budget - Volume One 45 Table of Contents • $8.0 million to fund two energy savings projects that will result in long term savings to the city. • $4.6 million from the food tax. The FY 2020/21 adopted budget did not include the food tax portion as a transfer to CIP, because it was transferred to the operating contingency so funds could be available for unforeseen expenses related to the COVID-19 pandemic. Other General Fund Expenses The proposed budget also includes $0.7 million to add a net of 8.74 General Fund (14.74 all funds)fulltime equivalent employees (FTEs). These additional employees in several divisions will provide more frontline customer service support, improve the city's cybersecurity program and address increased workloads in several maintenance, inspection and administrative areas. Additionally, there was a change in methodology of how part-time positions are reported from being truncated after the second decimal in previous years to being rounded to the second decimal starting in FY 2021/22. The impact for this change to the General Fund is 1.82 FTE (2.06 FTE all funds). In addition, the General Fund budget includes money for these priority items: City Attorney • $0.1 million for outside counsel expenses to address rising litigation costs. City Clerk: • $0.3 million one-time funding for 2021 Special Election costs. City Treasurer • $0.4 million for maintenance costs related to the new enterprise resource management system. Administrative Services • $0.3 million one-time funding to address operating impacts of two Bond 2019 program projects '11-Replace Document Management System to Improve Public Access to Information' and '8-Replace Website Management Software'. • $0.2 million for increase in software and lease costs. 46 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Community & Economic Development: • $0.3 million to restore FY 2020/21 one-time budget reductions due to COVID-19. • $0.2 million to eliminate the staffing allocation to the CIP as stormwater capital projects are managed by the Public Works division. • $0.1 million annual increase per agreement with Scottsdale Arts Community Services • $0.3 million to address operating impacts of Bond 2019 program project '53-Build Multi-Use Sports Fields in the area of Bell Road'. • $0.2 million one-time funding for contract labor costs for WestWorld event support. • $0.1 million for maintenance costs related to baseball facilities at Indian School Park moving under City of Scottsdale management. Public Safety - Fire: • $0.6 million one-time funding to upgrade an aging fire truck to extend its service life and reduce maintenance costs. • $0.3 million for increased contract costs. • $0.2 million to cover the cost of 6 firefighter positions previously funded by the 2017 SAFER grant which will expire in November 2021, and an increase of matching funds required for the 2018 SAFER grant that currently covers the cost of another 6 firefighter positions. • $0.2 million to properly address attrition through training. • $0.2 million to reclassify positions to meet staffing needs. Public Safety - Police: • $0.7 million to cover holiday overtime as a result of a change to pay for overtime which occurs in both actual and observed holidays, and to support the addition of Veteran's Day as a city paid holiday added in FY 2018/19 but for which funding was not previously added. • $0.3 million for municipal security contract increased costs. Public Works: City of Scottsdale FY 2021/22 Adopted Budget - Volume One 47 Table of Contents • $0.4 million to implement Americans with Disabilities Act (ADA) updates and modification to public facilities per the city's ADA transition plan. • $0.2 million one-time funding for citywide pole lighting retrofit and replacement. • $0.2 million one-time funding for citywide flooring replacement. Capital Improvement Program An estimated $284 million will be spent on capital improvements in the upcoming fiscal year. These projects address City Council priorities and critical capital infrastructure needs in a variety of areas and are supported by different funding sources, including many directly supported by the city's voters through recent bond elections. Some notable capital improvement projects proceeding next fiscal year are highlighted below. 1-Replace Aging Infrastructure and Improve Public and Event Spaces on Civic Center Plaza- (FY2021/22: $27.0 million) This project will rebuild the Scottsdale Civic Center Plaza as the community's signature special event and public gathering space while maintaining the park-like environment that residents enjoy year-round. Design would create an "event ready" venue that includes an iconic stage structure. With few regional competitors for large events in an outdoor setting, the new public space would place Scottsdale in a competitive position to attract large-scale events, such as Super Bowl Live, a multi-day event leading up to Super Bowl 2023. Funding sources: Bond 2019, General Fund 53-Build Multi-Use Sports Fields in the area of Bell Road (FY 2021/22: $37.7 million) This project will build up to 13 full sized multi-use sports fields at two locations: 94th Street and Bell Road and Thompson Peak Parkway and McDowell Mountain Ranch Road. The fields are needed to meet the increased demand for lighted sports fields in the community and will create the ability for Scottsdale to host larger tournaments and increase revenue. The fields will be used as parking for special events for a few weeks each year to replace temporary parking lots on Arizona State Land that will become unavailable as the land is sold. Funding sources: Bond 2019, General Fund 48 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents 23-Repair Lakes and Irrigation at Vista de! Camino Park at the Indian Bend Wash (FY 2021/22: $11.0 million. $23.5 total remaining budget) This project will repair failing lakes and irrigation from McKellips Road to Thomas Road in the Indian Bend Wash. The lake system is showing signs of aging and failure due to punctures in the lake liner, erosion of the lake edges and leaks in the spillway system. The irrigation systems are outdated, undersized and perform inadequately. Updating materials and technologies will lower annual operating cost, enhance water conservation and quality, resolve lake edge erosion and allow more effective use of park open space areas. Funding sources: Bond 2019 38-Build a new Fire Department Training Facility (FY 2021/22: $3.6 million. $18.2 million total remaining budget) This project will build a modern fire department training facility to ensure Scottsdale Fire personnel are best prepared to handle the full range of medical and emergency response needs in the community. The current training complex, located on the grounds of the Tom Hontz Training Facility, is a hodgepodge of various buildings and resources including a prefabricated training tower and building, converted mobile storage units and a portable classroom building that is at the end of its useful life. This project will remove these outdated elements, design and build a new training complex on the current site to provide Scottsdale's fire and emergency medical responders with a learning and training environment worthy of our staff and the community. Funding Sources: Bond 2019 7-Replace Outdated 9-1-1 Computer Aided Dispatch and Records Management to Improve Efficiency (FY 2021/22: $2.1 million) This project will replace the outdated Police Department Computer Aided Dispatch (CAD) and records management system which will interface with new applications and improve reporting and analytics capabilities. The upgrade will enhance mapping and radio capabilities, improve vehicle dispatching, upgrade text-to-9-1-1 capabilities, increase efficiency in report writing and provide better case management. Funding Sources: Bond 2019, RICO, General Fund 63-Build Parking Structures in Old Town (FY 2021/22: $4.4 million. $21.0 million total remaining budget) City of Scottsdale FY 2021/22 Adopted Budget - Volume One 49 Table of Contents This project will increase the effective parking supply of parking for residents, visitors, and businesses in Old Town Scottsdale. Funding Sources: Bond 2019 Runway 03/21 Rehabilitation/Reconstruction (FY 2021/22: $11.0 million) The runway at Scottsdale Airport will be rebuilt to better serve customers and allow the airport to continue its role as a substantial economic engine for the city. Funding sources: Aviation Funds, Grants Raintree Drive: Scottsdale Road to Hayden Road (FY 2021/22: $30.4 million) This project will design and rebuild a portion of Thunderbird/Redfield Road, 76th Place, Acoma Drive and 78th Way to create the extension of Raintree Drive west of Hayden Road. Funding sources: Regional Sales Tax -Arterial Life Cycle Program, Transportation Sales Tax 0.1%, Transportation Sales Tax 0.2%, Downtown Cultural Trust, Bond 2000 Pima Road: Pinnacle Peak Road to Happy Valley Road (FY 2021/22: $36.4 million) This section of Pima Road will be expanded to a six-lane roadway that includes landscaped median, turn lanes, bike lanes, sidewalks, curb and gutter, roadway drainage and Intelligent Transportation Systems facilities. Funding sources: Regional Sales Tax -Arterial Life Cycle Program, Transportation Sales Tax 0.1%, Transportation Sales Tax 0.2%, CIP Stormwater Fee Happy Valley Road: Pima Road to Alma School Road (FY 2021/22: $22.7 million) Happy Valley Road from Pima Road to Alma School Road will be widened to two-lanes-per- direction with a raised median, bicycle lanes, sidewalk and trail to improve safety, capacity and accessibility safety for motor vehicles, bicycles, and pedestrians. Roundabouts at the Alma School Road and Golf Club Drive intersections are included. This segment of roadway is currently one lane in each direction with no center median. Funding sources: Regional Sales Tax -Arterial Life Cycle Program, Transportation Sales Tax 0.1%, Transportation 0.2% Sales Tax, In Lieu Fees - Transportation SROG Regional Wastewater Facilities (FY 2021/22: $26.7 million, $58.8 million total remaining budget) 50 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents This project will expand and improve the regional wastewater conveyance facilities and the 91st Avenue Wastewater Treatment Plant (located in Phoenix) according to existing intergovernmental agreements with the Sub-Regional Operating Group (SROG). Funding sources: Sewer Rates ___________________________________________________________ f Water Treatment Facility Improvements (FY 2021/22: $11.5 million, $40.5 million total remaining budget) This project will include minor design, maintenance and construction modifications to various water treatment plant infrastructure which is aging. In addition, design and replacement of pump stations and storage tanks will be conducted as identified in the Asset Management Program. Funding sources: Water Rates Conclusion We learned many lessons during the COVID-19 pandemic which will continue to benefit our organization and our community: leveraging new technology to serve in different ways, upgrading facilities to improve public health, and adjusting policies and procedures within rapidly revolving circumstances. The Fiscal Year 2021/22 budget proposal supports continuing many of those efforts and provides the basis to build upon them so Scottsdale can grow even stronger as we return to normalcy. Sincerely, Jim Thompson, City Manager City of Scottsdale FY 2021/22 Adopted Budget - Volume One 51 Table of Contents 52 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Scottsdale Arizona For the Fiscal Year Beginning July 01, 2020 Executive Director Budget Award for Fiscal Year 2020/21 Budget The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation award to the City of Scottsdale, Arizona for its annual budget for fiscal year beginning July 1, 2020. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operating guide, and as a communications device. This award is valid for a period of one year only. The current budget continues to conform to program requirements and will be submitted to the GFOA to determine its eligibility for another award. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 53 Table of Contents Bloomberg Philanthropies’ What Works Cities recognized Scottsdale as a Silver Certified City. What Works Cities Certification is the national standard of excellence for well-managed, data-driven local government. Certification helps cities benchmark their progress and develop a roadmap for using data and evidence to deliver results for residents. By recognizing local governments excelling in this work, the program provides models others can learn from. Scottsdale is one of 40 cities nationally that have been certified in the first four years of the program, the first in Arizona, and the smallest city to be certified when Scottsdale received recognition first in 2019. 54 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Budget Development Process City of Scottsdale’s Budget Development Process Recommended Budget Practices The City of Scottsdale’s budget process incorporates the recommended practices from the National Advisory Council on State and Local Budgeting (NACSLB).1 The NACSLB was created to provide tools for governments to improve their budgeting processes and to promote their use. In fulfilling that role, the NACSLB set forth a framework that has provided the context for the development of a set of budget practices for state and local governments. These practices represent a cooperative effort by several organizations with diverse interests to examine and agree on key aspects of good budgeting. The NACSLB was founded by eight organizations representing elected officials, government administrators and finance professionals at both the state and local government level. The NACSLB’s work focused on long-term financial planning and encourages governments to consider the longer consequences of actions to ensure that impacts of budget decisions are understood over a multi-year planning horizon and to assess whether program and service levels can be sustained. Practices encourage the development of organizational goals, establishment of policies and plans to achieve these goals and allocation of resources through the budget process that are consistent with goals, policies and plans. There is also a focus on measuring performance to determine what has been accomplished with limited government resources. The following are excerpts of the NACSLB’s guiding principles and budget practice recommendations: Budget Process Definition The budget process consists of activities that encompass the development, implementation and evaluation of a plan for the provision of services and capital assets. A good budget process is characterized by several essential features: • • • • • Incorporates a long-term perspective Establishes linkages to broad organizational goals Focuses budget decisions on results and outcomes Involves and promotes effective communication with stakeholders Provides incentives to government management and employees These key characteristics make clear that the budget process is not simply an exercise in balancing revenues and expenditures one year at a time, but is strategic in nature, encompassing a multi-year financial and operating plan that allocates resources based on identified goals. A good budget process moves beyond the traditional concept of line-item expenditure control, to providing incentives and flexibility to managers that can lead to improved program efficiency and effectiveness. Mission of the Budget Process The mission of the budget process is to help decision-makers make informed choices about the provision of services and capital assets and to promote stakeholder participation in the process. The term stakeholder refers to anyone affected by or who has a stake in government. This term includes, but is not limited to residents, customers, elected officials, management, employees, businesses, vendors, other governments and the media. The budget process should accomplish the following: • • • • • Involve stakeholders Identify stakeholder issues and concerns Obtain stakeholder support for the overall budgeting process Achieve stakeholder acceptance of decisions related to goals, services and resource utilization Report to stakeholders on services and resource utilization and serve generally to enhance the stakeholders’ view of government The importance of the mission of the budget process cannot be overstated. Regular and frequent reporting is necessary to provide accountability and educate and inform stakeholders. Communication and involvement are essential components of every aspect of the budget process. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 55 Table of Contents OVERVIEW | Budget Development Process Principles/Elements of the Budget Process The budget process consists of four broad principles that stem from the definition and mission previously described. These principles encompass many functions that spread across a governmental organization. They reflect the fact that development of a balanced budget is a political and managerial process that also has financial and technical dimensions. Each of the principles incorporates components or elements that represent achievable results. These elements help translate the guiding principles into action components. 1. Establish Broad Goals to Guide Government Decision Making • Assess community needs, priorities, challenges and opportunities • Identify opportunities and challenges for government services, capital assets and management • Develop and disseminate broad goals 2. Develop Approaches to Achieve Goals • Adopt financial policies • Develop programmatic, operating, capital policies and plans • Develop programs and services that are consistent with policies and plans • Develop management strategies 3. Develop a Budget Consistent with Approaches to Achieve Goals • Develop a process for preparing and adopting a budget • Develop and evaluate financial options • Make choices necessary to adopt a budget 4. Evaluate Performance and Make Adjustments • Monitor, measure and evaluate performance • Make adjustments, as needed The NACSLB’s work goes on to identify 59 practices to achieve the higher-level activities identified in the principles and elements of budgeting. Scottsdale’s budget process attempts to incorporate all the NACSLB’s recommended practices. Budget Roles and Responsibilities Every Scottsdale employee plays a role in the city’s budget — whether in its formulation, preparation, implementation, administration or evaluation. Ultimately, each division director, through the city manager and the charter officers, is accountable to the City Council for the performance of program personnel in meeting the City Council’s broad goals and specific work plan objectives within allocated resource limits. The actual budget responsibilities of the employees are identified more specifically below: The program managers in city divisions are responsible for preparing an estimate of cost requirements and revenues, if applicable, for the current fiscal year, projecting the base budget requirements for the next fiscal year and developing other requests that change or revise the program so that it will be more effective, efficient, productive and economical. The city divisions have budget liaisons that coordinate the day-to-day budget management within their respective divisions along with the budget staff. The budget liaisons serve as the vital communication link between their city division and the Budget Department on matters related to their specific operating budget. Budget liaisons are responsible for revenue and expenditure forecasts, monthly expenditure and revenue variance analysis, calculating user fees, monitoring the budget, support to the Accounting Department in the Comprehensive Annual Financial Report preparation and preparing budget review materials for the city treasurer, other charter officers, division directors, city manager, City Council, media and residents. The capital improvement plan (CIP) liaisons essentially serve the same role as the budget liaisons; however, their focus is on the coordination of capital projects, multi-year capital planning and identifying capital project operating impacts with the budget staff. In some cases, the same individual serves as both the divisional budget liaison and CIP liaison. The CIP technology review team, CIP construction review team and CIP transportation review team are comprised of individuals from various city divisions. These cross-divisional teams are responsible for the initial review of all the city’s capital project requests. Their reviews are focused on ensuring that projects are scoped properly, infrastructure components are coordinated, long-term operating impacts are included, timeframes are realistic, projects are coordinated geographically, and project costs are adequate. 56 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Budget Development Process They also consider if the request is congruent with city objectives and priorities using a set of predetermined criteria. The review group recommendations are forwarded to the capital management review committee. The capital management review committee (CMRC) is formed by division directors and key staff. They provide an organizationalwide view for collaboration and prioritization, serve as advisors for policies and technologies, balance projects against Council objectives and refine the initial prioritization of overall city goals and objectives. The committee forwards its funding recommendations to the City Council for final approval. The division directors and charter officers are responsible for reviewing historical performance, anticipating future problems and opportunities, considering alternative solutions and modifying and assembling their program data into a cohesive budget information package. Each division director and charter officer are responsible for evaluating, reviewing, justifying and prioritizing all operating and capital budget requests for their division. Only those requests that division directors and charter officers believe support the City Council’s broad goals, the city’s general plan, city manager’s work plan, administrative direction and program objectives are to be submitted to the budget department. The budget department team is comprised of the budget director, CIP budget manager, operating budget manager and budget analysts. The team is responsible for preparing the multi-fund short-range and long-range revenue and expenditure forecasts, coordinating with budget liaisons in calculating user fees, calculating the indirect cost rate, developing the process and related forms for preparing and monitoring the budget, coordinating the compilation of budget data, analyzing operating and capital budget requests, evaluating and summarizing budget requests from divisions and preparing budget review materials for the city treasurer, other charter officers, division directors, city manager, City Council, media and residents. The city treasurer, other city charter officers and division directors collaborate in developing programmatic, operating and capital policies and financial plans that help define how Scottsdale will achieve its long-term goals. They are responsible for reviewing the program operating budget and capital budget requests and for working with program managers to develop service recommendations that are consistent with the City Council’s broad goals, management strategies and the city’s adopted comprehensive financial policies. The city manager is responsible for reviewing the multi-year, multi-fund financial plan and submitting a balanced citywide proposed budget to the Mayor and City Council, which supports their broad goals. From December through May, the city manager holds biweekly meetings with the budget director and city treasurer to ensure staff are preparing a proposed budget that addresses the City Council’s priorities and to provide guidance on key policy issues related to the budget development. The Mayor and City Council set the direction for staff related to the forthcoming budget by establishing broad goals for the organization to serve as a basis for decision-making. The City Council reviews key aspects of the city manager’s proposed budget such as the city’s multi-year financial plan including an examination of the revenue forecast and related assumptions, employee compensation including healthcare and retirement costs, changes to rates and fees, comprehensive financial policies, debt schedules, property tax rate and the capital budget. The budget development process culminates in the spring with the Mayor and City Council holding public budget hearings. The Mayor and City Council are ultimately responsible for the review of the city manager’s proposed budget, tentative budget adoption (mid-May) and final adoption of the budget (early June). All City Council budget discussions are open to the public for comment and are broadcast on CityCable 11 and the city’s web page. Budget Phases Needs Assessment and Financial Capacity Phase In this phase, which begins in the late summer and continues up to the final budget adoption, staff compile and update on an ongoing basis the city’s multi-fund, multi-year revenue forecast. The first year of the revenue estimates is the most critical in the process as that will ultimately define the expenditure limitations for the forthcoming budget year. The multi-year revenue perspective further refines the city’s planning for current and future period expenditures — with the goal of not adding service areas, services or staff which do not have a ‘sustainable’ funding source over the five-year planning time frame. The preliminary assumptions are used to forecast the city’s fiscal capacity and provide the financial framework within which the proposed division budget service levels, capital budget and operating impacts. Policy/Strategy Development and Prioritization Phase In the fall and winter, the City Council typically reviews citizen input, citizen board and commission feedback, financial policies, citizen survey results and the most current financial forecast. They discuss broad organizational goals, priorities, constituents’ suggestions and expectations for Scottsdale. From this, the City Council establishes broad goals and strategic directives, which are the cornerstone for budget development. These broad goals provide the overall direction for Scottsdale and serve as a basis for City of Scottsdale FY 2021/22 Adopted Budget - Volume One 57 Table of Contents OVERVIEW | Budget Development Process decision-making. The division directors and senior management staff update city financial policies, plans, programs and management strategies to define how the city will achieve the goals. It is within this framework that the city staff formulates the proposed operating and capital budgets. Budget Development and Prioritization Phase The CIP development begins in the early fall in conjunction with the city’s multi-year financial forecasts. Initial divisional capital project requests and changes to existing capital projects are reviewed by cross-divisional teams for accurate costing, congruence with city objectives and are prioritized using a set of pre-determined criteria. Financing sources are then sought for the highestranking projects. The teams involved in this process include the CIP technology review team, the CIP construction review team and the CIP transportation review team. When developing their division operating budget plans, staff closely consider the ongoing operating impacts of current and proposed capital projects. Staff also consider the City Council’s broad goals and strategic directives as they develop program objectives and work plans for the budget period. Later in the fall after the CIP development is underway, city staff update their proposed performance measurements. These are developed to assess results and ensure accountability, which enable managers and policy makers to evaluate progress towards stated goals and objectives. Staff also prepare the proposed program operating budgets at this time by using a modified zero-based budget approach. This requires that the budget be prepared solely at the existing service operating levels – no modifications are permitted at this stage of the budget development process. The divisional staff are also asked to evaluate their programs and/or positions for possible trade-offs, reductions, eliminations or service level changes to offset inflation, contractual, compensation and benefit cost increases. Under the city’s modified zero-based budget approach, any proposed changes in service levels, new programs, population/service growth, additional staff and program trade-offs resulting in service level reductions/increases must be submitted to the Budget Department in a decision package. The division’s requests include extensive analysis and justification and are reviewed by the city manager, city treasurer and budget director during the prioritization process. In the later stages of the city’s budget development process, decision packages are considered and balanced among numerous competing demands within the city’s available ongoing resources. When funding needs exceed the city’s funding limits, remedies may include the identification of new revenues, the employment of process management tools and/or formation of partnerships with other city programs or non-profit organizations. City Management Review and Modification Phase In the early winter the divisions submit their proposed operating budget requests to the Budget Department. The initial multi-faceted review focuses on ascertaining the division’s needs with the Budget Department’s budget instructions, reviewing the mathematical accuracy and logic of the divisional base budget and decision packages. The review also includes a broader assessment of whether the divisional budget proposals address the City Council’s broad goals, strategic directives and service needs while maintaining a citywide perspective ensuring the fiscal integrity of the city (not exceeding forecasted resources/limits). The city manager, division directors, city treasurer and budget staff collaborate on the development of a recommended five-year financial plan and proposed budget for each fund and then submit the plans to the City Council for review and adoption. The City Council also reviews the proposed multi-year revenue forecasts for reasonableness and the expenditure budgets for efficiencies and alignment with community needs and expectations. City Council Budget Review and Adoption Phase In the winter and spring, funding recommendations are discussed at public meetings. Staff present an overview of the proposed operating and capital budgets to the City Council and residents for consideration and further public input. The budget is also communicated to the public through televised public meetings and/or via the city’s website. The City Council holds public meetings to review key operating and capital budget policy items. The discussions focus on the city’s five-year financial plans and how the divisions’ operating and capital budgets address residents’ priorities and the City Council’s broad goals. Additionally, the City Council holds meetings to review rates and fees, financial policies and compensation, including benefits. Next, a series of required public budget hearings are held and the City Council adopts the budget and property tax levy consistent with the City Charter and state law. Per the City Charter, the City Council must have tentative adoption of the proposed budget on or before the second regular City Council meeting in May each year (Article 6, Sec. 3. Submission of Recommendations and Estimates to Council). This meeting is usually held in mid-May (Note: State law requires the City Council adopted the tentative budget on or before the third Monday in July of each fiscal year.) Tentative adoption sets the legal maximum expenditure limit (i.e., appropriation) for the coming fiscal year budget. 58 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Budget Development Process Under the City Charter (Article 6, Sec. 5. Public Hearing and Adoption of Budget), final adoption of the budget must occur at the first regular City Council meeting in June (Note: There is no specific date set by state law for adoption of the final budget. However, for jurisdictions with a property tax, such as Scottsdale, the recommended deadline for adoption of the property tax levy is the third Monday in August. Since state law requires a period of at least 14 days between adoption of the final budget and adoption of the property tax levy, the budget should be adopted by the first Monday in August of each year). Arizona state law requires a “balanced” budget” (Title 42, Arizona Revised Statutes) and requires the City Council to annually adopt a balanced budget by purpose of public expense. State law defines that as the primary property tax levy, when added together with all other available resources, must equal expenditures. Arizona state law also requires an “expenditure limitation.” This requirement was imposed by the Arizona Constitution and approved by the voters in 1980 (Article 9, Section 20).2 Under Arizona state law, “expenditure limitation” means if an item is not budgeted (i.e., does not have an appropriation), it cannot legally be spent during the fiscal year. Therefore, the budget must include enough appropriation and contingency provisions for expenditures related to revenues (e.g., possible future grants) that cannot be accurately determined or even anticipated when the budget is adopted in June. This budgetary flexibility allows the city to comply with the Arizona state law and to proactively pursue emerging revenue sources as the budget year unfolds. Expenditures (i.e., appropriations) associated with items such as possible future grants/revenues may not be spent without the City Council’s prior approval at a public meeting. Arizona Revised Statutes (A.R.S.) only requires communities to prepare budgets for two funds — the General Fund (A.R.S. 42-17101) and the Highway User Revenue Fund (A.R.S. 28-6533) (see the Transportation Fund). In addition to these two funds, the city prepares budgets and requests legal appropriation for the following funds: Special Revenue, Debt Service, Enterprise, Internal Service, Grants, Special Districts and Capital Funds. The ordinance adopting the annual budget requires City Council authorization for expenditures from the funds, which in the aggregate constitutes the city’s total operating, capital budget and contingency/reserves for purposes of complying with the state’s balanced budget and legal maximum appropriation requirements. Implementing, Monitoring and Amending the Budget Phase In July, city staff implement the operating budget and the capital improvement plan and are accountable for budgetary control throughout the fiscal year. Sources and uses patterns are examined compared to budget plans and corrective action is taken if necessary. The budget team and divisional budget liaisons review current demographic, economic and financial trends every month which may impact the city and also discuss strategies to ensure the city’s fiscal integrity. City management and the City Council are also provided quarterly operating budget financial updates and reports disclosing actual revenue, expenditure and fund balance performance, as well as quarterly CIP budget updates. Scottsdale’s programs and services are periodically reviewed to determine if they are achieving the City Council’s broad goals, accomplishing strategic objectives and making efficient use of limited resources. Two employee values, “plan and innovate for the future” and “focus on quality customer service,” along with city manager directed studies of several programs during the next budget year help communicate this expectation. The City Treasurer’s staff, other charter officers, division directors, and the internal audit staff all aid in the review of programs. City staff from all programs are expected to conduct self-assessments and develop cost and quality measures of efficiency and effectiveness. Internal performance measurements are developed, reviewed and reported on quarterly. Scottsdale’s culture and the employee value of “listen, communicate and take action” stress the importance of open communication and stakeholder involvement in determining satisfaction with programs. Ongoing monitoring of the city’s financial performance is required monthly by the City Charter. Written budget to actual expenditure variance reports must be submitted monthly by all city divisions explaining any significant variances (where previous months recorded sources and uses are above or below the budget) and provide a solution for corrective action. Additionally, the divisions must be able to explain in writing to the Budget Department the projected year-end budget savings and/or fund balances. The City of Scottsdale’s operating budget is adopted at a division level and the capital improvement plan is adopted at a project level. All midyear amendments to the budget that require a budget transfer from the Contingency/Reserve Funds require the City Council’s prior approval at a public meeting. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 59 Table of Contents OVERVIEW | Budget Development Process NEEDS ASSESSMENT and FINANCIAL CAPACITY August – June Involve Public and Gather Input Forecast Multi-Year Revenues Identify and Evaluate Infrastructure Needs Create Fiscal Forecasting Assumptions Develop Financial Trends Review Quarterly Financial Updates POLICY/STRATEGY DEVELOPMENT and PRIORITIZATION PROCESS September – January Establish City Council’s Broad Goals and Strategic Directives Update Financial Policies, Plans, Programs, Management Strategies Present Key Issues BUDGET DEVELOPMENT and PRIORITIZATION PROCESS PHASE September – January Capital Improvement Plan Five Year Financial Plan Operating Budget CITY MANAGEMENT REVIEW and MODIFICATION December – March Capital Improvement Plan Five Year Financial Plan Operating Budget CITY COUNCIL BUDGET REVIEW and ADOPTION April – June Present Proposed Operating Budget and Capital Improvement Plan Hold Public Budget Forums and Hearings Address City Council’s Broad Goals Strategic Directives Maintain Citywide Perspective Ensure Fiscal Integrity of the City IMPLEMENTING, MONITORING and AMENDING THE BUDGET July – June Implement Adopted Budget Monitor Citywide Financial Performance 60 Budget Process Review & Adjustment City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Budget Development Process Use of Contingency/Reserve Funds Contingency/Reserve Funds are strictly defined in the city’s financial policies adopted by the City Council annually and are used in the following instances: when additional funds are necessary to offset unexpected expenditure increases, so that service measures can be maintained; when unanticipated grants are received; and when unanticipated and/or inadequately budgeted events threaten the public health or safety. Use of Contingency/Reserve Funds is to be utilized only after all alternative budget funding sources and other options have been fully considered. All Contingency/Reserve Fund requests require a written justification and an explanation of the fiscal impact, which is reviewed and approved in writing by the city treasurer, budget director, the applicable city charter officer, division director and city manager before being presented to the City Council for consideration in a public meeting. Budgetary and Accounting Basis Scottsdale’s budget is prepared on a basis consistent with Generally Accepted Accounting Principles (GAAP). The city’s governmental funds consist of the General Fund, Special Revenue Funds, Debt Service Funds, Permanent (Grant) Funds and Capital Project Funds. Governmental fund type budgets are developed using the modified accrual basis of accounting. Under the modified accrual basis, revenues are accrued if they are earned and will be collected within the 31-days after the fiscal year-end. Principal and interest on general long-term debt is budgeted as expenditures when due, whereas other expenditures are budgeted based on the timing of the receipt of the good or service. Proprietary fund budgets – Water, Water Reclamation, Solid Waste, Aviation and Internal Service Funds – are adopted using the full accrual basis of accounting, whereby revenue projections are developed recognizing revenues earned in the period. Expenditure estimates are developed for all expenses incurred during the fiscal year. The major differences between the budget and the Comprehensive Annual Financial Report are: • • • • • • Certain revenues, expenditures and transfers are not included in the budget, but are accrued and reported in the Comprehensive Annual Financial Report. For example, increases or decreases in compensated absences, payroll accruals and changes in fair market value are not included for budget purposes, but are presented in the Comprehensive Annual Financial Report. Franchise fees charged to the Enterprise Funds are accounted for as transfers-in or transfers-out in the budget, but are recorded as revenues and expenses in the Comprehensive Annual Financial Report. Capital outlays in the Enterprise Funds are presented as expenses in the budget, but are recorded as assets along with associated depreciation expenses in the Comprehensive Annual Financial Report. Debt service principal payments in the Enterprise Funds are expenses in the budget, but reported as reduction of long-term debt liability in the Comprehensive Annual Financial Report. Certain debt service principal and interest payments are accounted for as operating expenditures in the General Fund for the budget, but are reported as debt service expenditures in the Comprehensive Annual Financial Report. For budget purposes the Risk Management Fund presents claim expenditures on a short-term basis while in the Comprehensive Annual Financial Report, the claim expenditures also include a long-term accrual for “incurred, but not reported” (IBNR) claims. All actual amounts in the budget document are shown on the budgetary basis to facilitate meaningful comparisons. Budgeted funds include the General, Special Revenue, Debt Service, Enterprise, Permanent (Grant), Internal Service, Grants and the Capital Improvement Plan. Operating and Capital Budget Relationship The City of Scottsdale’s Budget for FY 2021/22 is comprised of three volumes: Volume One – Budget Summary includes the City Council’s mission statement and broad goals, the city manager’s transmittal letters, executive summary and adopted financial policies. Volume One also contains a budget by fund section, which includes fiveyear financial forecasts that cover the period FY 2021/22 through FY 2025/26. This section also provides five-year historical summaries for sources and uses by fund. Volume Two – Division Operating Budget contains descriptions of services provided by each division, staffing summaries, operating budgets by expenditure category and the applicable funding sources, current fiscal year objectives, as well as prior year City of Scottsdale FY 2021/22 Adopted Budget - Volume One 61 Table of Contents OVERVIEW | Budget Development Process achievements, significant changes and performance measures. In addition, division operating budgets and their relationship with the broad goals and the general plan are included. Volume Three - Capital Improvement Plan includes the Capital Project Budget and Five-Year Capital Improvement Plan with detailed information for each project. Capital Project Budget funding sources are matched with budgeted expenditures. Future year projected operating impacts are also included. Finally, there is an appendix which includes the signed budget adoption and property tax levy ordinances, final state forms, list of acronyms and a glossary. Governmental accounting procedures and state law require expenditures for the five-year capital improvement plan to be budgeted at an amount sufficient to pay for an entire contract, meaning the legal authority is available and appropriated in the period in which a contract is entered by the city. Therefore, capital expenditures are presented on a budget basis reflecting the total appropriated amount as opposed to a cash flow basis, which may take several fiscal years to be paid out. For example, a 180-day construction contract entered in May of fiscal year one would have cash expenditures from May of fiscal year one through October of fiscal year two. However, the entire budget for this contract must be appropriated in fiscal year one, the year in which the contract was entered; any unspent funds at the end of fiscal year one would be carried forward and re-budgeted in fiscal year two. Funding sources for the five-year capital improvement plan are presented on a budget basis, except for cash transfers from the operating budget, which are presented on a purely cash basis. These resources are presented in the period that the cash funding will be transferred to provide continuity between the operating budget and the Capital Improvement Plan. As a result of presenting the cash transfers in on a purely cash basis, the funding sources may not equal the budgeted expenditures in each period, creating a fund balance as cash accumulates each year for planned larger capital expenditures in later fiscal years. For further information regarding capital project funding sources and uses, refer to Volume Three. Five-Year Financial Plan The city’s five-year financial planning process used to develop the proposed budget is a year-round process. The budget process begins in the early fall with the Budget Department’s initial update of the five-year financial plan for each of the city’s major funds. Staff review the five-year financial plans for the following funds that appear in the budget – General, Transportation, Preservation, Special Programs, Tourism Development, Special Districts, Debt Service, Water and Water Reclamation, Solid Waste, Aviation, Fleet, PC Replacement, Risk Management, Healthcare Self Insurance and Capital Funds. Using the latest fiscal, operational and legislative information, staff work collaboratively with city divisions to update the forecast for the current fiscal year and to create a forecast for the coming budget year. The forecast serves as the basis for the development of the city’s proposed five-year financial plan. In April, the city manager provides the City Council with the updated proposed five-year financial plans for their review and consideration. Staff work with the City Council to review the underlying assumptions and reasonableness of the plans. The proposed plans include the budget for the coming year (i.e., the first year of the plan) and subsequent years of the five-year financial forecast period. This time is also used to identify future service and financial issues requiring attention during the budget planning process. The five-year financial plans provide the City Council, city management, residents and municipal bond rating agencies with the benefits of a long-term financial perspective of revenues, expenditures, cash transfers in/out, fund balances and capital financing options. They also serve as the basis to test the potential impacts of proposed policy and operational modifications and pending legislative changes all intended to avoid subjecting residents to wide or irregular fluctuations in rates/fees and service levels. Proposed future operating impacts of capital projects are also included in the forecast, which facilitates the planning, integration and timing of the capital projects into the city’s five-year financial plans. The City Council and city management use the plans to assess the impact of their proposed decisions in a long-range financial context. These decisions may include the proposed addition of new staff, new debt issuances and debt refunding, tax rate changes, the desire to create, modify or eliminate rates/fees, new or expanded services and state legislation changes. Based on the fiscal impact of these decisions, the City Council has an opportunity to modify the proposed plans. As noted above, the development and update of the five-year financial plans is a year-round process. Staff monitor the budget monthly and adjust the estimated annual revenues and expenditures based on the latest economic information, legislative changes and City Council priorities. Per the City Charter, the revenue and expenditure variances, estimated ending fund balances and the status of the current year contingency usage are reported quarterly to the City Council, city management and other stakeholders via the operating budget Financial Update and Financial Report. The CIP budget status is also shared quarterly. Staff monitor and 62 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Budget Development Process identify changes in the financial and economic climates and considers solutions to negative trends, thereby preserving the financial health of Scottsdale. Revenue Forecasting The City of Scottsdale uses both qualitative and quantitative methods for forecasting revenues by blending various techniques to develop conservative and prudent revenue projections. Qualitative revenue forecasting methods used by staff to develop multi-year financial plans include consensus, judgmental and expert forecasting, while trend analysis is used as a quantitative technique. This balanced approach to revenue forecasting is aligned with the Government Finance Officers Association (GFOA) recommendation since research shows that forecasting accuracy is improved by combining qualitative and quantitative techniques. According to the GFOA, each method by itself has inherent weaknesses: qualitative methods can be too subjective at times and may be dependent on wishful thinking and selective perception on behalf of the forecasters; quantitative methods may fail to consider changing conditions inside and outside a jurisdiction and tend to discount important historical events. By combining both methods, forecasters integrate judgmental assumptions within the forecasting framework to produce more realistic revenue projections. To enhance the revenue forecasting process and gain a broader input into the planning process, the Budget Department staff work collaboratively with city divisions throughout the year to prepare the revenue estimates. This multi-disciplinary approach and continual reassessment promotes collaboration between the central Budget Department staff and the division field staff, which reduces the likelihood of miscommunications in formulating the revenue estimates. The field staff’s participation in the revenue estimate forecasts also increases their ownership and accountability for achieving the proposed plan. Expenditure and Year-End Savings Forecasting Each month throughout the fiscal year, the Budget Department staff works with city divisions to monitor year-to-date actual expenditures against the year-to-date approved budget and prior year actual expenditures. Each division is also required to forecast their year-end expenditures and related savings. All significant actual or forecasted variances are researched and a reason for the likely variance as well as possible ways to resolve the variance are considered by staff. Proactive management of the budget to actual/forecasted expenditures allows staff the opportunity to promptly notify city management and the City Council of potential budget concerns. 1 Recommended budget practices: A framework for improved state and local government budgeting national advisory council on state and local budgeting government finance officers association. (1999). https://gfoaorg.cdn.prismic.io/gfoaorg/e4534548-fa06-47ad-9cc85f37e6e2f21e_RecommendedBudgetPractices.pdf 2 Office of the Arizona Auditor General. (2021). FAQs—Cities and Towns. Arizona Auditor General. https://www.azauditor.gov/reports-publications/citiesand-towns/faqs City of Scottsdale FY 2021/22 Adopted Budget - Volume One 63 Table of Contents OVERVIEW | Budget Calendar BUDGET PLANNING AND DEVELOPMENT FISCAL YEAR 2021/22 CALENDAR Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Strategic Planning Process Collect Citizen Input Develop Broad Goals & Strategic Directives Conduct Needs Assessment Develop Financial Trends & Forecasting Assumptions Forecast Multi-Year Revenues Update Financial Policies Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Capital Improvement Plan Budget Process Update Budget Planning Guide CIP Kick-off Division Preparation & Submittal Peer Construction & Technology Reviews Capital Management Review Committee Operating Impacts Review Proposed/Tentative/Final Budget Public Hearings Final Adoption Implement Adopted Budget Monitor Citywide Financial Performance Budget Process Review & Adjustment Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Operating Budget Process Update Budget Planning Guide Budget Liaison Update Meetings Budget Application User Training Operating Budget Kick-Off Internal Service Rates Finalized Division Budget Development Division Budget Request Submission Update Performance Measurements Line Item Analytical Review City Management Budget Review New Rates & Fees Proposed Finalize Proposed Five-Year Financial Plans City Council Review Proposed/Tentative/Final Budget Public Hearings Final Budget Adoption Implement Adopted Budget Monitor Citywide Financial Performance Budget Process Review & Adjustment 64 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance Adopted Comprehensive Financial Policies & Governing Guidance Annually, these policies are analyzed to ensure compliance. The annual analysis revealed that of the 46 total financial policies, all policies are in compliance with the exception of two, where the City Council determined that it was in the best interest of the city to waive the self-imposed limitations. Below, policies that are in compliance appear in black text, and policies that are not appear in orange text. See the footnotes for additional details on these two policies. Operating Management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“effectiveness criteria”) and provide value in terms of dollars allocated (“efficiency criteria”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demonstrate the city’s ability to adapt to forecast changes in the economy, service demands, and capital improvements.  )RXIVTVMWI ;EXIV ;EXIV 6IGPEQEXMSR7SPMH;EWXI1EREKIQIRXERH %ZMEXMSR  YWIV JIIW ERH GLEVKIW [MPP FI I\EQMRIH ERRYEPP]XSIRWYVIXLEXXLI]VIGSZIVEPPHMVIGXERHMRHMVIGXGSWXWSJWIVZMGIHIFXWIVZMGITVSZMHIEHIUYEXIJYRHMRKJSVJYXYVI GETMXEPRIIHWERHFIETTVSZIHF]XLI'MX]'SYRGMP%R]YRJEZSVEFPIFEPERGIWMRGSWXVIGSZIV][MPPFILMKLPMKLXIHMRFYHKIX HSGYQIRXW6EXIEHNYWXQIRXWJSVIRXIVTVMWISTIVEXMSRW[MPPFIHIZIPSTIHTYVWYERXXSEQYPXM]IEVJMRERGMEPTPERXLEXPIZIPW XLIMQTEGXSJYWIVVEXIGLERKIW  %PPSXLIVYWIVJIIWERHGLEVKIW[MPPFII\EQMRIHTIVMSHMGEPP]XSHIXIVQMRIXLIHMVIGXERHMRHMVIGXGSWXSJWIVZMGIVIGSZIV] VEXII\GPYHMRKZSXIVETTVSZIHHIFXWIVZMGI8LIEGGITXEFPIVIGSZIV]VEXIERHER]EWWSGMEXIHGLERKIWXSYWIVJIIWERH GLEVKIW[MPPFIETTVSZIHF]XLI'MX]'SYRGMP  (IZIPSTQIRXMQTEGXJIIWEWTIVQMXXIHF]WXEXIPE[JSVGETMXEPI\TIRWIWEXXVMFYXEFPIXSRI[HIZIPSTQIRX[MPPFIVIZMI[IH TIVMSHMGEPP][MXLERIRKMRIIVMRKEWWIWWQIRXXSIRWYVIXLEXJIIWVIGSZIVEPPHMVIGXHIZIPSTQIRXVIPEXIHI\TIRWIWERHFI ETTVSZIHF]'MX]'SYRGMP%R]YRJEZSVEFPIFEPERGIWMRGSWXVIGSZIV][MPPFILMKLPMKLXIHMRFYHKIXSVJMRERGMEPHSGYQIRXW  8LIYWISVVITPEGIQIRXSJ*PIIXERH-RJSVQEXMSR8IGLRSPSK] 4'TLSRIWERHGSTMIVW]WXIQW [MPPFIEGGSYRXIHJSVXLVSYKL the use of a direct or a “rental” rate structure. The rates will be revised annually to ensure that charges to operating diviWMSRW EVI WYJJMGMIRX JSV STIVEXMSR ERH VITPEGIQIRX SJ ZILMGPIW ERH SXLIV IUYMTQIRX 6ITPEGIQIRX GSWXW [MPP FI FEWIH YTSR IUYMTQIRXPMJIG]GPIJMRERGMEPEREP]WMW City of Scottsdale FY 2021/22 Adopted Budget - Volume One 65 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance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will be performed on a reasonably periodic or on an “opportunity” basis.  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Council may also approve the legally allowable maximum over the previous year’s primary levy. % TIVGIRXSJXLIXVERWMIRXPSHKMRK FIH XE\IWVIGIMZIHF]XLIGMX]WLEPPFIHITSWMXIHMRXSXLI7TIGMEP6IZIRYI*YRHJSV 8SYVMWQ(IZIPSTQIRX 8SYVMWQ(IZIPSTQIRX*YRH %HHMXMSREPP]XLI8SYVMWQ(IZIPSTQIRX*YRHWLEPPVIGIMZITIVGIRX SJ4VMRGIWW,SXIPPIEWIVIZIRYIW 8LIXVERWMIRXPSHKMRK FIH XE\VIZIRYIW[MPPFIEPPSGEXIHERRYEPP]EWJSPPS[W • TIVGIRXJSVHIWXMREXMSRQEVOIXMRKEWETTVSZIHF]XLIZSXIVW • TIVGIRXJSVXLI+IRIVEP*YRH • RMRITIVGIRXJSVXSYVMWQVIPEXIHIZIRXWERHIZIRXHIZIPSTQIRX • JSYVTIVGIRXJSVXSYVMWQVIPEXIHEHQMRMWXVEXMSRERHVIWIEVGL • TIVGIRXTPYWXLIPIEWITE]QIRXWSRXLI4VMRGIWW6IWSVXSVXLIFEPERGISJXLIVIQEMRMRK8SYVMWQ(IZIPSTQIRX *YRH VIZIRYIW JSV XSYVMWQVIPEXIH STIVEXMRK I\TIRWIW GETMXEP TVSNIGXW ERHSV STIVEXMRK MQTEGXW XLEX EVI HMVIGXP] EWWSGMEXIH [MXL XSYVMWQVIPEXIH GETMXEP TVSNIGXW MR XLI JSVQ SJ SRIXMQI GSQQMXQIRXW SV QYPXM]IEV ERRYEP GSQQMXQIRXWRSXXSI\GIIHTIVGSQQMXQIRXYRPIWWSXLIV[MWIETTVSZIHF]'MX]'SYRGMP %XXLIIRHSJIEGLJMWGEP]IEVER]YRYWIHJYRHWMRXLI8SYVMWQ(IZIPSTQIRX*YRH[MPPFIEZEMPEFPI JSVYWIMRJSPPS[MRK]IEVWJSVER]SJXLIRSRQEVOIXMRKXSYVMWQGEXIKSVMIW I\GITXXLIKIRIVEPJYRH 66 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance GEXIKSV] ERHQE]FIEPPSGEXIH[MXLSYXPMQMXEXMSRWI\GITXXLEXXLI]QE]RSXFIPIZIVEKIHJSVQYPXM ]IEVERRYEPGSQQMXQIRXWWYGLEWHIFXWIVZMGITE]QIRXW -RXLIIZIRXSJEHIGVIEWIMR8SYVMWQ(IZIPSTQIRX*YRHVIZIRYIWHIFXWIVZMGIMWXLITVMSVMX]ERH [MPPFIQIXJMVWX  %R]]IEVIRH8VERWTSVXEXMSR*YRHSTIVEXMRKWYVTPYWIWRSXRIIHIHXSVIWXSVIGSRXMRKIRG]VIWIVZIWSV GSZIV YRJSVIWIIR WLSVXJEPPW MR XLI FYHKIX [MPP FI XVERWJIVVIH XS XLI 8VERWTSVXEXMSR *YRH 'ETMXEP -QTVSZIQIRX4VSKVEQMRXLIJSPPS[MRKJMWGEP]IEVYRPIWWSXLIV[MWIHMVIGXIHF]'MX]'SYRGMP Capital Management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consistency with the City’s General Plan and City Council’s goals and objectives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ebt Management  General Obligation debt, which is supported by property tax revenues and grows in proportion to the city’s assessed valuation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ity’s current or future annual operating revenue in order to control fixed costs and ensure expenditure JPI\MFMPMX]8LIJSPPS[MRKGSRWMHIVEXMSRW[MPPFIQEHIXSXLIUYIWXMSRSJTPIHKMRKSJTVSNIGX JEGMPMX] VIZIRYIWXS[EVHWHIFX WIVZMGIVIUYMVIQIRXW City of Scottsdale FY 2021/22 Adopted Budget - Volume One 67 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance E 8LITVSNIGXVIUYMVIWQSRMIWRSXEZEMPEFPIJVSQSXLIVWSYVGIW F 1EXGLMRKJYRHQSRMIWEVIEZEMPEFPI[LMGLQE]FIPSWXMJRSXETTPMIHJSVMREXMQIP]QERRIV G 'EXEWXVSTLMGGSRHMXMSRW H 8LIGMX]WLEPPRSXKMZISVPSERMXWGVIHMXMREMHSJRSVQEOIER] HSREXMSRKVERXSVTE]QIRXSJER]TYFPMGJYRHWF] WYFWMH]SVSXLIV[MWIXSER]MRHMZMHYEPEWWSGMEXMSRSVGSVTSVEXMSRI\GITX[LIVIXLIVIMWEGPIEVP]MHIRXMJMIHTYFPMG TYVTSWI ERH XLI GMX] IMXLIV VIGIMZIW HMVIGX GSRWMHIVEXMSR WYFWXERXMEPP] IUYEP XS MXW I\TIRHMXYVI SV TVSZMHIW HMVIGX EWWMWXERGIXSXLSWIMRRIIH  1G(S[IPP7SRSVER4VIWIVZEXMSRHIFXWIVZMGI[MPPFIJYRHIHF]XLIHIHMGEXIHTIVGIRXprivilege tax. The city’s privilege XE\IWXSVIZIRYIFSRHHIFXWIVZMGIKSEP[MPPFIEXPIEWXJSVWIRMor lien debt to ensure the city’s ability to pay for preserve HIFXJVSQXLMWIPEWXMGVIZIRYIWSYVGI  -QTVSZIQIRX(MWXVMGX -( ERH'SQQYRMX]*EGMPMX](MWXVMGX '*( &SRHWWLEPPFITIVQMXXIHSRP][LIRXLIVIMWEKIRIVEPGMX] FIRIJMX-(ERH'*(FSRHW[MPPFIYXMPM^IHSRP][LIRMXMWI\TIGXIHXLEXXLI][MPPFIMWWYIHJSVXLIMVJYPPXIVQ-XMWMRXIRHIH XLEX-(ERH'*(FSRHW[MPPFITVMQEVMP]MWWYIHJSVI\MWXMRKRIMKLFSVLSSHWHIWMVMRKMQTVSZIQIRXWXSXLIMVTVSTIVX]WYGLEW VSEHW[EXIVPMRIWWI[IVPMRIWWXVIIXPMKLXWERHHVEMREKI E Improvement District debt will be permitted only when the full cash value of the property, as reported by the Assessor’s 3JJMGIXSHIFXVEXMS TVMSVXSMQTVSZIQIRXWFIMRKMRWXEPPIH MWEQMRMQYQSJTVMSVXSMWWYERGISJHIFXERHSV LMKLIV EJXIV GSRWXVYGXMSR SJ MQTVSZIQIRXW 7LSYPH XLI JYPP GEWL ZEPYI XS HIFX VEXMS RSX QIIX XLI QMRMQYQ VIUYMVIQIRXWTVSTIVX]ZEPYIQE]FIHIXIVQMRIHF]ERETTVEMWEPTEMHJSVF]XLIETTPMGERXERHEHQMRMWXIVIHF]XLI city. In addition, the city’WGYQYPEXMZIMQTVSZIQIRXHMWXVMGXHIFX[MPPRSXI\GIIHJMZIpercent of the city’sRIXEWWIWWIH PMQMXIHTVSTIVX]ZEPYEXMSR&SRHWMWWYIHXSJMRERGIMQTVSZIQIRXHMWXVMGXTVSNIGXW[MPPRSXLEZIQEXYVMXMIWPSRKIVXLER XIR]IEVW F 'SQQYRMX]*EGMPMX](MWXVMGXHIFX[MPPFITIVQMXXIHSRP][LIRXLIJYPPGEWLZEPYISJXLITVSTIVX]EWVITSVXIHF]XLI Assessor’s Office, to debt ratio (prior to improvements being installed) is a minimum of 3TVMSVXSMWWYERGISJHIFX ERHSVLMKLIVEJXIVGSRWXVYGXMSRSJimprovements. In addition, the city’s cumulative facility district debt will not I\GIIH JMZI percent of the city’s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eserve Management  %PPJYRHHIWMKREXMSRWERHVIWIVZIW[MPPFIIZEPYEXIHERRYEPP]JSVPSRKXIVQEHIUYEG]ERHYWIVIUYMVIQIRXWMRGSRNYRGXMSR with development of the city’s balanced five]IEVJMRERGMEPTPER  8LIJSPPS[MRKWXEFMPM^EXMSRVIWIVZIW[MPPFIQEMRXEMRIHJSVYRJSVIWIIRIQIVKIRGMIWSVGEXEWXVSTLMGMQTEGXWXSXLIGMX] E +IRIVEP*YRH7XEFMPM^EXMSR6IWIVZISJTIVGIRXSJERRYEP+IRIVEP*YRHSTIVEXMRKI\TIRHMXYVIW F 8VERWTSVXEXMSR*YRH7XEFMPM^EXMSR6IWIVZISJTIVGIRXSJERRYEP8VERWTSVXEXMSR*YRHSTIVEXMRKI\TIRHMXYVIW G %R)\GMWI8E\7XEFMPM^EXMSR6IWIVZI[MPPFIJYRHIHEXRSPIWWXLERQMPPMSRXSFIXIQTSVEVMP]YWIHJSVHIFXWIVZMGI MRXLIIZIRXXLIVIEVIYRJSVIWIIRIQIVKIRGMIWSVGEXEWXVSTLMGMQTEGXWXSXLIGMX]  (IFX7IVZMGI6IWIVZI[MPPFIJYRHIH[MXLWIGSRHEV]TVSTIVX]XE\IWPIZMIHF]'MX]'SYRGMPERH[MPPRSXI\GIIHTIVGIRXSJ the amount needed to pay the following year’s bonded indebtedness for General Obligation bond principal and interest I\GPYHMRK4VIWIVZI+IRIVEP3FPMKEXMSRFSRHW %HIFXWIVZMGIWMROMRKJYRH[MPPFIQEMRXEMRIHXSEGGSYRXJSVXLIWIVIWXVMGXIH VIZIRYIWERHHIFXTE]QIRXWEW[IPPEWER]EHHMXMSREPHIFXEQSYRXWHIIQIHXSFIEHZMWEFPIERHRIGIWWEV]JSVER]TYFPMG SVQYRMGMTEPTYVTSWIW  'SRXMRKIRG] 6IWIVZIW JSV IEGL JYRH XS FI IWXEFPMWLIH ERRYEPP] [MPP FI QEMRXEMRIH XS SJJWIX YRI\TIGXIH I\TIRHMXYVI MRGVIEWIW'SRXMRKIRG]VIWIVZIWQE]EPWSFIYWIHJSVYRERXMGMTEXIHERHSVMREHIUYEXIP]FYHKIXIHIZIRXWXLVIEXIRMRKXLI 68 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance  TYFPMGLIEPXLSVWEJIX]9WISJGSRXMRKIRG]JYRHWWLSYPHFIYXMPM^IHSRP]EJXIVEPPFYHKIXWSYVGIWLEZIFIIRI\EQMRIHJSV EZEMPEFPIJYRHWERHWYFNIGXXS'MX]'SYRGMPETTVSZEP  Separate Operating Fund Reserves will be maintained for the city’s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nsurance Reserves will be maintained at a level that will adequately fund the city’s financial obligations for the payment of property, workers’ compensation, liability, and health benefit losses. A qualified actuarial firm shall be retaMRIH SR ER annual basis to project and develop losses in order to recommend appropriate reserve levels. The Loss Trust Fund Board’s XEVKIXMWXSQEMRXEMRE6MWO1EREKIQIRXVIWIVZIJYRHFEPERGIIUYMZEPIRXXSXLIEGXYEVy’sTIVGIRXGSRJMHIRGIMRXIVZEPSJ TVSNIGXIHXSXEPSYXWXERHMRKGPEMQWPMEFMPMX]  8LI*PIIX*YRHERH4'6ITPEGIQIRX*YRH[MPPFIQEMRXEMRIHXSIRWYVIEHIUYEXIJYRHMRKJSVW]WXIQEXMGVITPEGIQIRXERH STIVEXMSREPRIIHW  %R]MRXIRXMSREPHVE[HS[RSJJYRHVIWIVZIWVIUYMVIW'MX]'SYRGMPETTVSZEP Financial Reporting  The city’s accounting and financial reporting systems will be maintained in conformance with all state and federal laws, KIRIVEPP]EGGITXIHEGGSYRXMRKTVMRGMTPIW +%%4 ERHWXERHEVHWSJXLI+SZIVRQIRXEP%GGSYRXMRK7XERHEVHW&SEVH +%7&  8LI'MX]8VIEWYVIVWLEPPMWWYIXMQIP]QSRXLP]JMRERGMEPVITSVXWXS'MX]'SYRGMP  %GGSYRXMRKQIXLSHW[MPPMRGPYHIIWWIRXMEPTSPMGMIWTVSGIHYVIWERHMRXIVREPGSRXVSPWXSQSRMXSVEPPKIRIVEPPIHKIVEGXMZMX]SR ERSRKSMRKFEWMW  4VMSVXSXLIIRHSJIEGLJMWGEP]IEVXLI'SYRGMPWLEPPHIWMKREXIGIVXMJMIHTYFPMGEGGSYRXERXW[LSWLEPPTIVJSVQERMRHITIRHIRX audit of the city’s annual financial statements in accordance with generally accepted government auditing standards. The GIVXMJMIHTYFPMGEGGSYRXERXWWLEPPFIMRHITIRHIRXSJXLIGMX]KSZIVRQIRXLEZMRKRSTIVWSREPMRXIVIWXHMVIGXSVMRHMVIGXMR XLIJMWGEPEJJEMVWSJGMX]KSZIVRQIRXSVER]SJMXWSJJMGIVW8LIGIVXMJMIHTYFPMGEGGSYRXERXWWLEPPWYFQMXXLIMVVITSVXWXS XLI 'SYRGMP%PPWYGLEYHMXVITSVXWWLEPPFIEQEXXIVSJTYFPMGVIGSVH    8LI'MX]'SYRGMPMRXIRXMSREPP][EMZIHSTIVEXMRKQEREKIQIRXTSPMG]%[LMGLVIPEXIWXSXLI8SYVMWQ(IZIPSTQIRX*YRHERHWXEXIWSRIXMQI GSQQMXQIRXWSVQYPXM]IEVERRYEPGSQQMXQIRXWWYGLEWERRYEPHIFXWIVZMGI[MPPRSXI\GIIHTIVGSQQMXQIRXYRPIWWSXLIV[MWIETTVSZIHF] 'MX]'SYRGMP8LMWPMQMXEXMSR[EW[EMZIH[LIRETTVSZMRKXLI8SR]2IPWWSR)UYIWXVMER'IRXIV 82)' 1YWIYQSJXLI;IWX8SYVREQIRX4PE]IVW'PYF 84' VIRSZEXMSRWERH7GSXXWHEPI7XEHMYQVIRSZEXMSRW *MRERGMEP4SPMG]WE]WRSRZSXIVETTVSZIHHIFX[MPPFIYXMPM^IHSRP][LIREHIHMGEXIHVIZIRYIWSYVGIGERFIMHIRXMJMIHXSTE]SVVIMQFYVWIXLIGMX] JSVTE]MRKHIFXWIVZMGII\TIRWIW8LI'MX]'SYRGMPMRXIRXMSREPP][EMZIHXLMWTSPMG][LIRETTVSZMRKXLI82)'  City of Scottsdale FY 2021/22 Adopted Budget - Volume One 69 Table of Contents OVERVIEW | Fund Accounting - Fund Types Fund accounting segregates functions and activities into separate self-balancing funds that are created and maintained for specific purposes. This approach is unique to the government sector. To ensure legal compliance and financial management for the various restricted revenues and program expenditures, the city’s accounting and budget structure is segregated into various funds. A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The city, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. General Fund is the primary operating fund of the city. It exists to account for the resources devoted to finance the services traditionally associated with local government. Included in these services are police and fire, parks and recreation, planning and economic development, general administration of the city, and any other activity for which a special fund has not been created. Internal Service Funds are used to account for the financing, on a cost-reimbursement basis, of commodities or services provided by one program for the benefit of other programs within the city. The city maintains Internal Service Funds to account for Fleet Management, PC Replacement and Self Insurance activities. Grant Funds are used to leverage city funds to Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The city maintains the following four Special Revenue Funds: Transportation, Tourism Development, Preservation, and Special Programs. Debt Service Fund is used to account for the accumulation of resources and for the payment of general long-term debt principal and interest. It does not include contractual obligations accounted for in the individual funds. address priority program and service needs. Special Districts Fund is used to account for the city’s streetlight districts. Capital Improvement Plan Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. The city maintains several Capital Improvement Plan Funds to ensure legal compliance and financial management for various restricted and unrestricted revenues. Enterprise Funds are used to account for operations, including debt service, which are financed and operated similarly to private businesses, where the intent is that the service is self-sufficient, with all costs supported predominantly by user charges. The city maintains three Enterprise Funds to account for Water and Water Reclamation, Solid Waste, and Aviation activities. 70 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Magma Arizona Railroad Steam Engine at McCormick-Stillman Railroad Park Courtesy of Scottsdale Public Library Table of Contents BUDGET BY FUND | Total Budget Overview Adopted Budget $1,785.3 Million (a) Operating Budgets $685.0M (a) (a) (b) Grants & Special Districts $28.1M Capital Improvement Plan $821.2M Contingencies / Reserves $251.0M General Fund $346.6M Grant Funds $27.5M Community Facilities $104.8M General Fund $65.8M Special Revenue Funds $71.4M Special Districts Fund $0.6M Drainage / Flood Control $19.4M Special Revenue Funds $20.6M Debt Service Fund $88.6M Preservation $42.5M Debt Service Fund $8.4M Enterprise Funds $159.2M Public Safety $28.9M Enterprise Funds $83.8M Internal Service Funds $19.2M (a) $79.1M (b) Service Facilities $40.1M Internal Service Funds $34.8M Transportation $258.6M Grant Funds $9.3M Water Management $326.9M Capital Improvement $28.3M Adopted Budget and Operating Budgets include Internal Service Funds offsets (reductions) of $60.0M Internal Service Funds Budget prior to Internal Service Funds offsets of $60.0M Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 71 Table of Contents BUDGET BY FUND | Total Budget Overview The total Scottsdale FY 2021/22 adopted budget consists of $1,420.4 million in revenue, including $536.8 million in prior year Capital Improvement Plan (CIP) unexpended revenue, $70.1 million in property taxes, $75.0 million in bond proceeds, and $738.5 million in other operating and capital revenues. A complete detail of revenues can be found on the Total Appropriation schedule. Below is the revenue breakdown by fund type. The total Scottsdale FY 2021/22 adopted budget appropriation is $1,785.3 million, which includes $251.0 million in contingencies/reserves. The Capital Improvement accounts for the largest portion of the annual budget appropriation at $849.5 million. Rounding differences may occur. 72 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Total Budget Overview The largest expense category in the FY 2021/22 budget is Capital Outlay at 47 percent, or $842.1 million. Expenses for Personnel Services, Contractual, and Commodities together account for $622.4 million, or approximately 35 percent of the total authorized budget. Rounding differences may occur. Sources Uses Beginning Balance Revenue 130,296,640 324,086,370 11,381,324 - Transportation Preservation Special Programs Tourism Development 23,427,558 53,154,610 39,795,720 6,401,184 42,488,901 45,623,254 12,905,387 23,249,230 110,000 - - Debt Service Fund 8,384,936 35,078,990 53,530,541 - 72,396,949 7,182,702 4,691,769 179,286,375 26,420,997 6,321,453 9,938,339 - - 25,646,773 8,962,026 1,536,743 63,451,801 14,788,182 2,908,088 9,850,219 1,765,822 26,243,871 15,816,101 982,384 1,195,000 9,189,593 100,000 - 5,011,537 1,289,350 301,992 51,390 27,601,635 530,438 - 17,051,229 - 302,492,206 685,454,442 96,028,664 7 0 1 ,9 5 1 ,6 7 9 1 ,4 2 0 ,4 1 4 ,4 4 9 1 7 1 ,0 8 8 ,8 6 8 General Fund Special Revenue Funds Enterprise Funds Water & Water Reclamation Solid Waste Aviation Internal Service Funds Fleet Management PC Replacement Risk Management Healthcare Self-Insurance Grants,Endowments & Special Districts Grants Special Districts Capital Improvement Total All Funds Transfers In Other* 9,339,309 9 ,3 3 9 ,3 0 9 Personnel Services Contractual & Debt Service Commodities 268,578,217 67,801,566 8,510,995 3,319,135 560,429 17,382,964 20,180,743 15,232,428 - 88,609,531 Other* 8,854,988 1,366,920 65,809,238 30,953,405 22,400,000 1,283,285 3,268,762 6,870 345,380 1,298,586 - 3,252,262 11,500,000 5,855,946 20,518,890 36,526,664 6,288,757 7,994,741 14,622,683 62,251,200 6,955,125 - Ending Balance 8,384,936 31,955,941 724,606 58,650 196,000 848,268 46,000 80,527,562 5,571,866 5,787,185 59,843,586 554,409 638,303 2,154,342 38,253 1,963,931 10,957,357 36,031,646 6,749,400 84,200 5,200 15,553,870 1,186,447 - (22,657,428) (650,000) 15,086,551 (16,914,462) 856,064 21,413 - 3,355,229 1,229,375 5,681,318 10,423,752 581,828 40,940 - 9,339,309 - 85,714 - 821,237,038 28,250,000 6,806,922 227,681,352 8 4 2 ,0 7 8 ,5 0 9 1 9 9 ,1 4 2 ,9 6 5 1 7 1 ,0 8 8 ,8 6 8 3 4 6 ,3 6 8 ,8 7 8 T ot a l B u dge t A ppr opr i a t i on * * 1 ,7 8 5 ,3 3 6 ,5 5 9 - - 3 5 0 ,3 1 3 ,8 1 7 *Other includes Operating Contingency, Reserve Appropriations, Internal Service Offsets, Anticipated Grants and Indirect Costs. - Transfers Out - 3 4 0 ,7 6 8 ,4 2 6 Capital Outlay 5 3 ,0 3 2 ,8 4 2 - - - - **Total Budget Appropriation excludes Transfers Out and assumes the use of reserve appropriations. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 73 Table of Contents BUDGET BY FUND | Total Appropriation General Fund 130, 296, 640 Description Beginning Fund Balance Revenues Taxes - Local Sales Tax Sales Tax - Public Safety (0.10%) Transient Occupancy Tax Electric & Gas Franchise Stormwater Fee - CIP Cable TV License Fee Stormwater Fee Salt River Project In Lieu Utilities & Enterprises Water Service Charges Water Reclamation Service Charges Refuse/Recycling Non-Potable Water Service Charges Airport Fees State Shared Revenues State Shared Income Tax State Shared Sales Tax Auto Lieu Tax Other Financing Sources Bond Proceeds Property Tax Property Tax Other Revenue CIP Unexpended Year End Grants Property Rental Special Districts Reimbursements from Outside Sources Charges For Service/Other Intergovernmental Property Rental Westworld Equestrian Facility Fees Miscellaneous Contributions & Donations Taxes- From Other Agencies Highway User Tax Local Transportation Assistance Fund Building Permit Fees & Charges Building Permit Fees & Charges License Permits & Fees Recreation Fees Fire Charges For Services Business & Liquor Licenses Internal Service Charges Self Insurance Fleet Management PC Replacement Less Internal Service Funds Offset Fines Fees & Forfeitures Court Fines Photo Radar Parking Fines Jail Dormitory Library Police Fees Indirect/Direct Cost Allocations Indirect Costs Direct Cost Allocation (Fire) Interest Earnings Interest Earnings 131,319,371 12,920,190 8,148,680 4,000,000 942,896 234,671 Special Revenue Funds 122, 779, 074 De b t Service Fund 8, 384, 936 69,782,182 E n t er p r i s e Funds 84, 271, 420 Internal S er v i c e Funds 53, 676, 013 G r an t s & Special Di s t r i c t s Funds 51, 390 150,000 Capi t al Improvement Funds 302, 492, 206 12,920,190 21,637,230 240,000 4,320,100 337,600 113,533,563 47,523,116 26,372,061 15,241,405 5,935,079 2,250,000 2,400,000 1,500,000 33,671,804 30,301,260 11,967,636 34,767,021 75,000,000 35,078,990 172,000 - - 290,000 - 1,336,437 2,634,937 - 526,881 1,000,952 - 26,094,448 1,089,500 374,148 834,657 5,500 1,085,938 530,438 536,806,260 30,892,260 - 62,674 21,832,300 1,444,513 2,010 - 17,222,793 16,040 4,460,597 1,916,804 1,782,860 2,491,712 65,000 56,000 17,303,833 5,644,162 2,343,564 290,392 182,250 103,668 95,400 95,400 876,665 74 27,580,986 6,330,616 5,152,517 3,993,940 2,450,965 45,470,012 22,657,428 750,000 (59,975,901) 1,660,724 473,723 124, 266, 772 536,806,260 56,986,708 172,000 530,438 1,089,500 6,952,309 1,916,804 1,838,860 6,793,734 424,874 1,939,790 324, 086, 370 75,000,000 17,167,454 655,000 45,470,012 22,657,428 750,000 (59,975,901) Subtotal 115,783,563 49,923,116 26,372,061 16,741,405 5,935,079 70,136,011 17,167,454 655,000 3,983,438 2,343,564 290,392 182,250 103,668 214,171,743 12,920,190 21,637,230 8,388,680 4,320,100 4,000,000 1,280,496 234,671 33,671,804 30,301,260 11,967,636 - 4,412,249 3,258,857 5,152,517 1,544,454 - Total 701, 951, 679 35, 078, 990 845,031 212, 028, 825 7,670,399 424,874 11, 366, 977 28, 132, 073 1,786,422 685, 454, 442 5,044,966 1, 420, 414, 449 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Total Appropriation General Fund Description Other Activity Grant Anticipated Grant Contingency Transfers In From Aviation Fund From AWT From CIP From Debt Service From Debt Svc GO Bonds From Debt Svc MPC Bonds From Debt Svc SPA Bonds From Enterprise Franchise Fees From Fleet Fund From General Fund From Grants Fund From Operating From Preservation Sales Tax Fund From Risk Management Fund From RWDS From Solid Waste Fund From Special Programs Fund From Special Revenue Funds From Stormwater Fee Fund From Transportation Sales Tax (0.20%) Fund From Water & Water Reclamation Funds Subtotal Subtotal Sources Total - - Special Revenue Funds - De b t Service Fund - 100,000 31,527,342 20,583,199 1,420,000 8,668,113 E n t er p r i s e Funds 3,231,417 5,806,922 Internal S er v i c e Funds G r an t s & Special Di s t r i c t s Funds - 7,339,309 2,000,000 9, 339, 309 Capi t al Improvement Funds Total - 7,339,309 2,000,000 9, 339, 309 638,303 - - - 10,000 856,064 16,880,314 85,714 100,000 3,579,322 21,413 900,000 2,713,211 - 11, 381, 324 335, 467, 694 110, 000 124, 376, 772 554,409 1,296,579 - 53, 530, 541 88, 609, 531 9, 938, 339 221, 967, 164 100, 000 11, 466, 977 37, 471, 382 3,653,600 20,518,890 47,944,056 96, 028, 664 781, 483, 106 City of Scottsdale FY 2021/22 Adopted Budget - Volume One 638,303 3,231,417 100,000 5,806,922 31,527,342 20,583,199 1,420,000 8,668,113 856,064 16,880,314 85,714 110,000 3,579,322 21,413 900,000 554,409 1,296,579 2,713,211 3,653,600 20,518,890 47,944,056 171, 088, 868 1, 600, 842, 626 75 Table of Contents BUDGET BY FUND | Total Appropriation Description Expenditures Mayor and City Council City Clerk City Attorney City Auditor City Court City Manager Public Works Community and Economic Development Public Safety - Fire Public Safety - Police City Treasurer Community Services Administrative Services Az Cares American Rescue Plan Act Water Resources Citywide Direct Cost Allocation Citywide Indirect Cost Allocation Department Indirect Cost Leave Accrual Payments Savings from Vacant Positions Utilities Less Internal Service Funds Offset Special Districts Debt Service CIP Sewer Revenue Bonds Contracts Payable GO Debt Service - Non Preserve GO Debt Service - Preserve MPC Bonds Debt Service-Sewer MPC Bonds Debt Service-Water MPC Excise Debt SPA Debt Service Capi t al Community Facilities Drainage / Flood Control Preservation Public Safety Service Facilities Transportation Water Management General Fund 1,004,604 1,215,160 7,782,103 1,230,066 5,040,341 4,391,723 24,093,069 22,315,079 57,931,010 152,109,133 11,459,281 44,132,297 17,677,356 Subtotal Special Revenue Funds De b t Service Fund 28,000 2,002,170 26,106,243 19,306,439 2,500 3,080,056 66,409 6,143,964 18,800 14,942,903 - 2,174,483 (6,350,000) - 32,093 (340,000) - 346, 205, 705 71, 389, 577 24,578,488 2,850,985 469,336 87,551,839 424,874 6,793,734 876,665 524,214 (1,532,100) 331,100 - 35,078,990 Subtotal - - - 76 29,421,793 3,593,202 31,527,342 395, 986 G r an t s & Special Di s t r i c t s Funds Capi t al Improvement Funds Total - 1,032,604 1,215,160 20,163,010 1,230,066 7,042,511 4,962,166 104,199,593 44,472,503 58,254,993 155,877,134 15,118,892 61,489,905 55,740,777 14,942,903 14,622,406 87,551,839 424,874 6,793,734 876,665 2,757,735 (8,392,100) 331,100 (59,975,901) 581,828 591, 314, 397 12,280,907 395,986 Subtotal E n t er p r i s e Funds Internal S er v i c e Funds 20,583,199 1,420,000 88, 609, 531 - 126, 462, 337 37,575,285 100,000 570,443 321,483 687,945 11,213,644 14,622,406 26,945 (170,000) (59,975,901) 19, 159, 029 581,828 28, 097, 749 4,592,700 1,724,244 4,592,700 2,120,230 35,078,990 - - 31,527,342 6,208,406 20,230,664 20,583,199 1,420,000 121, 761, 531 - 104,798,562 19,404,292 42,543,999 28,927,181 40,113,769 258,597,420 326,851,815 821, 237, 038 104,798,562 19,404,292 42,543,999 28,927,181 40,113,769 258,597,420 326,851,815 821, 237, 038 6,208,406 20,230,664 32, 756, 014 - - - City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Total Appropriation Description Other Activity Aviation Funds Contingency CIP Stormwater Utility Bill Fee Contingency General Fund Contingency Grant Anticipated Grant Contingency Greater Airpark Special Improvements Contingency Old Town Special Improvements Contingency Sewer Rates Contingency Transportation 0.2% Sales Tax Contingency Water Rates Contingency Appropriation Contingency Debt Stabilization Reserve Fleet Replacement Reserve GO Debt Service Reserve - Non Preserve IBNR Reserve Operating Contingency Operating Reserve Premium Stabilization Reserve PSPRS Pension Liabilities Repair/Replacement Reserve Reserve - Administration and Research Reserve - Events and Event Development Revenue Bond Debt Service Reserve Special Contractual Fund Balance Water Drought Reserve Subtotal TOTAL BUDGET Transfers Out To AWT To CIP To CIP 25% Construction Sales Tax To CIP Excess Interest To CIP Food Tax To CIP Stormwater To CIP Technology To Debt Svc GO Bonds To Debt Svc MPC Bonds To Franchise Fees To In Lieu Fees Fund To Operating To Trnsfrs Out-Debt Svc SPA Bonds To Water & Water Reclamation Funds (b) De b t Service Fund E n t er p r i s e Funds Internal S er v i c e Funds G r an t s & Special Di s t r i c t s Funds Capi t al Improvement Funds 450,000 1,000,000 5,000,000 7,339,309 2,000,000 11,500,000 3,200,000 2,000,000 3,000,000 3,000,000 5,055,080 3,329,856 3,000,000 34,660,169 8,600,000 2,000,000 3,000,000 2,752,262 1,196,500 1,073,100 25,062,210 28,149,069 450,000 1,000,000 5,000,000 7,339,309 10,600,000 2,000,000 34, 840, 562 9, 339, 309 28, 250, 000 3,200,000 2,000,000 3,000,000 3,000,000 11,500,000 5,055,080 1,196,500 4,402,956 2,633,492 11,587,053 86,099,062 2,995,596 28,149,069 48,009,507 963,340 2,392,606 4,604,688 845,335 3,000,000 251, 023, 593 849, 487, 038 1, 785, 336, 559 2,633,492 5,587,053 23,624,421 2,995,596 48,009,507 963,340 2,392,606 Total 65, 809, 238 20, 608, 208 8, 384, 936 4,604,688 845,335 3,000,000 83, 791, 340 412, 410, 929 91, 997, 785 96, 994, 467 243, 009, 691 53, 999, 591 37, 437, 058 8,352,999 3,011,975 939,790 4,575,550 - 25,156,659 - 3,231,417 48,313,734 780,000 57,786 823,034 97,477 27,928 110,000 2,713,211 1,420,000 Subtotal 30, 953, 405 71, 329, 052 - 61, 036, 298 877, 477 85, 714 6,706,922 6, 806, 922 3,231,417 82,661,178 3,011,975 939,790 4,575,550 3,653,600 1,186,571 31,527,342 20,583,199 8,668,113 100,000 2,823,211 1,420,000 6,706,922 171, 088, 868 Uses Total 443, 364, 334 163, 326, 837 96, 994, 467 304, 045, 989 54, 877, 068 37, 522, 772 856, 293, 960 1, 956, 425, 427 Sources Over/(Under) Uses (a) ( 107, 896, 640) ( 38, 950, 065) ( 8, 384, 936) ( 82, 078, 825) ( 43, 410, 091) ( 51, 390) ( 74, 810, 854) ( 355, 582, 801) 22, 400, 000 88, 209, 238 83, 829, 009 104, 437, 217 8, 384, 936 2, 192, 595 85, 983, 935 10, 265, 922 45, 106, 484 9, 339, 309 227, 681, 352 255, 931, 352 346, 368, 878 597, 392, 471 13,963,091 Ending Fund Balance (a) Ending Fund Balance (b) (a) General Fund Special Revenue Funds 3,653,600 238,132 31,527,342 6,620,108 - 8,668,113 100,000 - Includes use of reserve appropriations. Does not include use of reserve appropriations. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 77 Table of Contents 78 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Scottsdale City Hall Courtesy of Scottsdale Public Library Table of Contents BUDGET BY FUND | General Fund BUDGET BY FUND | General Fund Overview *YRH4YVTSWI 8LI+IRIVEP*YRHI\MWXWXSEGGSYRXJSVXLIEGXMZMX]EWWSGMEXIH[MXLXVEHMXMSREPPSGEPKSZIVRQIRXWIVZMGIWWYGLEWTSPMGIJMVI TEVOWERHVIGVIEXMSRTPERRMRKERHIGSRSQMGHIZIPSTQIRXERHKIRIVEPGMX]EHQMRMWXVEXMSR9RHIV%VM^SRE7XEXIPE[IEGL GMX]ERHXS[RQYWXQEMRXEMRE+IRIVEP*YRH8LI+IRIVEP*YRHMWXLIPEVKIWXSTIVEXMRKJYRHMRGPYHIWXLIQSWXHMZIVWI STIVEXMSRWERHFIGEYWIMXWYWIMWYRVIWXVMGXIHMWX]TMGEPP]XLIJYRHSJQSWXMRXIVIWXERHWMKRMJMGERGIXSGMXM^IRW +IRIVEP*YRH7SYVGIW XS8SXEP  1MPPMSR +IRIVEP*YRH9WIW XS8SXEP 1MPPMSR Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 79 Table of Contents BUDGET BY FUND | General Fund Summary Actual 2019/20 Adopted 2020/21 F o r e c a st 2020/21 Adopted 2021/22 3,000,000 26,847,880 55,868,543 500,000 3,000,000 26,642,583 49,465,296 17,238,644 14,300,000 500,000 3,000,000 26,385,271 57,555,598 17,238,644 14,300,000 500,000 3,000,000 26,234,116 85,962,524 14,600,000 500,000 8 6 ,2 1 6 ,4 2 3 1 1 1 ,1 4 6 ,5 2 3 1 1 8 ,9 7 9 ,5 1 3 1 3 0 ,2 9 6 ,6 4 0 122,922,662 12,094,543 7,994,247 5,444,841 946,912 216,044 3,230,136 111,660,529 10,971,211 8,660,966 4,206,063 942,896 232,348 - 126,357,535 12,422,815 8,104,476 4,206,063 942,896 232,348 - 131,319,371 12,920,190 8,148,680 4,000,000 942,896 234,671 - 33,015,280 26,394,906 10,837,560 37,081,460 24,525,227 10,595,315 36,881,665 27,133,963 11,831,446 33,671,804 30,301,260 11,967,636 32,158,797 33,064,709 33,064,709 34,767,021 18,517,907 16,518,181 16,615,181 17,222,793 4,384,561 4,394,695 2,808,191 3,153,769 1,000 5,046,027 4,094,331 3,326,396 1,101,286 - 5,165,894 4,201,797 3,599,332 1,720,371 - 5,152,517 4,412,249 3,258,857 1,544,454 - 3,184,050 1,892,482 1,813,878 2,829,658 1,767,150 1,791,200 3,079,658 1,759,522 1,791,200 4,460,597 1,916,804 1,782,860 6,826,759 356,641 6,522,218 444,281 6,522,218 444,281 6,793,734 424,874 4,091,475 2,683,090 256,999 313,030 4,003,074 2,656,115 282,030 342,000 252,175 3,873,074 2,336,115 282,030 31,750 132,175 3,983,438 2,343,564 290,392 182,250 103,668 Subtotal 4,724,400 314, 658, 854 3,464,832 296, 381, 678 3,464,832 316, 197, 346 1,939,790 324, 086, 370 Subtotal 321,091 8,432,562 2,593,398 11, 347, 052 8,111,171 1,919,171 10, 030, 342 1,113,104 8,476,171 2,062,352 11, 651, 627 8,668,113 2,713,211 11, 381, 324 3 2 6 ,0 0 5 ,9 0 6 3 0 6 ,4 1 2 ,0 2 0 3 2 7 ,8 4 8 ,9 7 3 3 3 5 ,4 6 7 ,6 9 4 Beginning Fund Balance Operating Contingency Operating Reserve PSPRS Pension Liabilities (a) AZCares Funding Cavasson Infrastructure Reimbursement Undesignated, Unreserved Fund Balance Total Beginning Fund Balance ( b) Revenues Taxes - Local Sales Tax Sales Tax - Public Safety (0.10%) Electric & Gas Franchise Cable TV License Fee Stormwater Fee Salt River Project In Lieu Stormwater Fee - CIP (c) State Shared Revenues State Shared Income Tax State Shared Sales Tax Auto Lieu Tax Pr op er ty T a x Property Tax Building Permit Fees & Charges Building Permit Fees & Charges Charges For Service/Other Westworld Equestrian Facility Fees Intergovernmental Property Rental Miscellaneous Contributions & Donations License Permits & Fees Recreation Fees Fire Charges For Services Business & Liquor Licenses Indirect/Direct Cost Allocations Indirect Costs Direct Cost Allocation (Fire) Fines Fees & Forfeitures Court Fines Photo Radar Parking Fines Jail Dormitory Library Interest Earnings Interest Earnings Transfers In CIP Debt Service Enterprise Franchise Fees Special Revenue Funds Total Sources (a) Scottsdale was awarded $29.6 million of the AZCares Fund, which was created as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Public Safety - Fire and Police payroll expenditures were transferred to the AZCares Fund (grant) in FY 2019/20 ($17.2 million) and in FY 2020/21 ($12.4 million); thereby freeing up General Fund dollars. The $29.6 million was transferred from the General Fund to the Special Programs Fund in Forecast 2020/21 to ensure governmental accounting standards are being met and the funding is being used for the specific purposes directed by City Council. (b) Excludes accrued liabilities of $15.1 million in FY 2019/20 and unknown accrued liabilities in current and future years. (c) The Stormwater Fee is no longer recorded in the General Fund and does not require a Transfer Out to CIP. 80 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | General Fund Summary Actual 2019/20 Adopted 2020/21 F o r e c a st 2020/21 Adopted 2021/22 Subtotal 766,056 6,950,885 1,044,347 1,158,641 4,901,490 3,945,347 9,559,141 14,929,991 20,418,092 39,913,537 39,881,582 97,165,263 20,310,482 260, 944, 854 845,429 6,554,365 1,102,587 1,194,128 4,550,341 3,910,285 9,991,747 15,560,742 20,076,695 39,235,504 41,000,603 100,425,800 22,970,050 1,941,424 (4,039,824) 265, 319, 876 847,205 6,525,198 909,613 1,373,244 4,578,166 2,863,537 9,535,449 14,819,397 19,774,162 38,235,540 40,644,217 99,937,555 19,210,128 1,339,490 3,295,746 (1,924,614) 261, 964, 033 1,004,604 7,782,103 1,230,066 1,215,160 5,040,341 4,391,723 11,459,281 17,677,356 22,315,079 44,132,297 57,931,010 152,109,133 24,093,069 2,174,483 (6,350,000) 346, 205, 705 S u b t ot a l 2,548,680 359,171 2, 907, 851 377,130 377, 130 377,130 377, 130 395,986 395, 986 263,852,705 265,697,006 262,341,163 346,601,691 1,218,514 2,650,959 3,724,400 5,688,397 3,230,136 12,780,274 97,430 29, 390, 111 2,223,164 2,464,832 14,810,781 175,700 19, 674, 477 4,761,008 2,923,604 2,464,832 14,237,525 29,803,714 54, 190, 683 8,352,999 3,011,975 939,790 4,575,550 13,963,091 110,000 30, 953, 405 T o t a l U se s 2 9 3 ,2 4 2 ,8 1 6 2 8 5 ,3 7 1 ,4 8 3 3 1 6 ,5 3 1 ,8 4 6 3 7 7 ,5 5 5 ,0 9 6 Sources Over/(Under) Uses 3 2 ,7 6 3 ,0 9 0 2 1 ,0 4 0 ,5 3 7 1 1 ,3 1 7 ,1 2 7 (4 2 ,0 8 7 ,4 0 2 ) 2,116,660 26,385,271 58,438,938 17,238,644 14,300,000 500,000 8,985,014 26,569,701 52,204,331 29,628,014 14,300,000 500,000 5,572,272 26,234,116 83,390,252 14,600,000 500,000 3,000,000 34,660,169 28,149,069 21,900,000 500,000 1 1 8 ,9 7 9 ,5 1 3 1 3 2 ,1 8 7 ,0 6 0 1 3 0 ,2 9 6 ,6 4 0 8 8 ,2 0 9 ,2 3 8 Expenditures Mayor and City Council City Attorney City Auditor City Clerk City Court City Manager City Treasurer Administrative Services Community and Economic Development Community Services (a)(b) Public Safety - Fire (a)(b) Public Safety - Police Public Works Cavasson Infra Reimb Ph1 Milestone Fuel and Maint and Repair Operating Impacts (c) Utilities (c) Leave Accrual Payments Savings from Vacant Positions D e b t S e r v ic e Certificates of Participation Contracts Payable (d) TOTAL OPERATING BUDGET Transfers Out CIP CIP 25% Construction Sales Tax CIP Excess Interest (e) CIP Food Tax CIP Stormwater (f) Debt Svc MPC Bonds Operating (a) S u b t ot a l Ending Fund Balance Operating Contingency (e) Operating Reserve (g) PSPRS Pension Liabilities (a) AZCares Funding (h) Cavasson Infrastructure Reimbursement Undesignated, Unreserved Fund Balance Total Ending Fund Balance (i) (a) Scottsdale was awarded $29.6 million of the AZCares Fund, which was created as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Public Safety - Fire and Police payroll expenditures were transferred to the AZCares Fund (grant) in FY 2019/20 ($17.2 million) and in FY 2020/21 ($12.4 million); thereby freeing up General Fund dollars. The $29.6 million was transferred from the General Fund to the Special Programs Fund in Forecast 2020/21 to ensure governmental accounting standards are being met and the funding is being used for the specific purposes directed by City Council. (b) FY 2021/22 includes a $5.0 million payment to PSPRS for Public Safety - Fire and a $35.0 million payment to PSPRS for Public Safety - Police to pay down the unfunded liability. (c) Initially budgeted at the division level. At the start of the fiscal year the budget will move to a macro level and then will be transferred back to the divisions monthly as expenses occur. (d) City issued $20.0 million of Certificates of Participation debt for a public safety radio system, which ended in FY 2019/20. (e) In FY 2020/21, two-thirds of the sales tax on food for home consumption ($6.0 million) was transferred to operating contingency so funds could be available for unforeseen expenses related to the COVID-19 pandemic. (f) The Stormwater Fee is no longer recorded in the General Fund and does not require a Transfer Out to CIP. (g) Designation is to address the Public Safety Personnel Retirement System (PSPRS) unfunded liability. FY 2019/20 PSPRS Net Pension Liabilities are $20.6 million for Public Safety - Fire and $195.6 million for Public Safety - Police. FY 2021/22 includes a $5.0 million payment to PSPRS for Public Safety - Fire and a $35.0 million payment to PSPRS for Public Safety - Police to pay down the unfunded liability. (h) Designation created in FY 2019/20 for the Cavasson Development Project and the eligible infrastructure reimbursements associated with milestones achieved in phases one, two and three of the development agreement. (i) Excludes accrued liabilities of $15.1 million in FY 2019/20 and unknown accrued liabilities in current and future years. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 81 Table of Contents BUDGET BY FUND | General Fund Five-Year Financial Forecast Adopted 2021/22 F o r e c a st 2022/23 F o r e c a st 2023/24 F o r e c a st 2024/25 F o r e c a st 2025/26 3,000,000 26,234,116 85,962,524 14,600,000 500,000 3,000,000 34,660,169 28,149,069 21,900,000 500,000 3,000,000 31,955,810 36,003,728 21,900,000 500,000 3,000,000 33,779,030 38,431,708 14,600,000 500,000 1 3 0 ,2 9 6 ,6 4 0 8 8 ,2 0 9 ,2 3 8 9 3 ,3 5 9 ,5 3 8 9 0 ,3 1 0 ,7 3 8 3,000,000 34,341,910 40,265,528 14,600,000 500,000 9 2 ,7 0 7 ,4 3 8 131,319,371 12,920,190 8,148,680 4,000,000 942,896 234,671 - 134,942,500 13,280,400 8,220,700 4,000,000 942,900 237,000 - 138,365,700 13,620,600 8,220,700 4,000,000 942,900 239,400 - 142,540,600 14,035,900 8,220,700 4,000,000 942,900 241,800 - 146,836,300 14,463,400 8,220,700 4,000,000 942,900 244,200 - 33,671,804 30,301,260 11,967,636 34,614,600 31,149,700 12,087,300 35,964,600 32,021,900 12,208,200 36,971,600 32,982,500 12,452,300 37,895,900 33,972,000 12,701,400 34,767,021 35,806,300 36,876,600 37,978,800 39,114,100 17,222,793 17,394,000 17,572,200 17,659,400 17,747,200 5,152,517 4,412,249 3,258,857 1,544,454 - 5,333,200 4,362,600 3,274,900 1,554,500 - 5,415,900 4,414,500 3,206,600 1,479,900 - 5,500,000 4,457,100 3,228,600 1,499,500 - 5,585,600 4,500,600 3,241,300 1,522,200 - 4,460,597 1,916,804 1,782,860 4,717,100 1,917,100 1,788,500 4,812,000 1,917,500 1,794,100 4,909,800 1,917,900 1,799,800 4,801,500 1,918,300 1,805,600 6,793,734 424,874 7,133,400 446,100 7,490,100 468,400 7,864,600 491,800 8,257,800 516,400 3,983,438 2,343,564 290,392 182,250 103,668 4,154,200 2,348,500 293,300 508,800 104,400 4,393,800 2,388,300 297,700 775,000 105,100 4,677,700 2,471,300 303,800 1,010,500 105,900 5,006,100 2,601,500 311,400 1,079,500 106,600 Subtotal 1,939,790 324, 086, 370 1,168,800 331, 780, 800 1,364,800 340, 356, 500 1,757,700 350, 022, 500 2,519,700 359, 912, 200 Subtotal 8,668,113 2,713,211 11, 381, 324 8,752,800 2,861,600 11, 614, 400 9,009,800 2,848,100 11, 857, 900 9,274,000 2,930,600 12, 204, 600 9,482,700 3,015,300 12, 498, 000 3 3 5 ,4 6 7 ,6 9 4 3 4 3 ,3 9 5 ,2 0 0 3 5 2 ,2 1 4 ,4 0 0 3 6 2 ,2 2 7 ,1 0 0 3 7 2 ,4 1 0 ,2 0 0 Beginning Fund Balance Operating Contingency Operating Reserve PSPRS Pension Liabilities AZCares Funding Cavasson Infrastructure Reimbursement Undesignated, Unreserved Fund Balance Total Beginning Fund Balance (a) Revenues Taxes - Local Sales Tax Sales Tax - Public Safety (0.10%) Electric & Gas Franchise Cable TV License Fee Stormwater Fee Salt River Project In Lieu Stormwater Fee - CIP State Shared Revenues State Shared Income Tax State Shared Sales Tax Auto Lieu Tax Pr op er ty T a x Property Tax Building Permit Fees & Charges Building Permit Fees & Charges Charges For Service/Other Westworld Equestrian Facility Fees Intergovernmental Property Rental Miscellaneous Contributions & Donations License Permits & Fees Recreation Fees Fire Charges For Services Business & Liquor Licenses Indirect/Direct Cost Allocations Indirect Costs Direct Cost Allocation (Fire) Fines Fees & Forfeitures Court Fines Photo Radar Parking Fines Jail Dormitory Library Interest Earnings Interest Earnings Transfers In CIP Debt Service Enterprise Franchise Fees Special Revenue Funds Total Sources (a) Excludes accrued liabilities of $15.1 million in FY 2019/20 and unknown accrued liabilities in current and future years. 82 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | General Fund Five-Year Financial Forecast Adopted 2021/22 F o r e c a st 2022/23 F o r e c a st 2023/24 F o r e c a st 2024/25 F o r e c a st 2025/26 Subtotal 1,004,604 7,782,103 1,230,066 1,215,160 5,040,341 4,391,723 11,459,281 17,677,356 22,315,079 44,132,297 57,931,010 152,109,133 24,093,069 2,174,483 (6,350,000) 346, 205, 705 1,074,400 8,048,100 1,283,200 1,250,500 5,264,600 4,559,500 11,885,400 18,830,300 23,034,400 45,643,000 55,077,500 123,431,500 24,046,600 25,000 2,228,800 (6,540,500) 319, 142, 300 1,139,600 8,300,500 1,332,200 972,700 5,469,200 4,720,900 12,297,300 19,427,100 23,681,800 47,304,600 57,000,500 127,656,100 24,749,600 7,300,000 453,700 2,284,600 (6,736,700) 337, 353, 700 1,176,800 8,558,800 1,378,700 1,339,500 5,667,400 4,862,000 12,718,300 20,005,800 24,215,200 49,067,700 58,717,300 132,073,500 25,515,800 2,261,000 2,341,700 (6,938,800) 342, 960, 700 1,210,400 8,809,600 1,414,200 1,063,600 5,858,800 5,008,500 13,132,100 20,565,900 24,786,100 50,813,000 60,399,800 136,374,700 26,276,100 2,386,800 2,400,300 (7,147,000) 353, 352, 900 Subtotal 395,986 395, 986 415,800 415, 800 436,600 436, 600 458,400 458, 400 481,400 481, 400 346,601,691 319,558,100 337,790,300 343,419,100 353,834,300 8,352,999 3,011,975 939,790 4,575,550 13,963,091 110,000 30, 953, 405 3,049,600 168,800 3,111,400 12,242,000 115,000 18, 686, 800 3,066,400 364,800 1,586,800 12,334,600 120,300 17, 472, 900 3,066,400 757,700 12,461,400 125,800 16, 411, 300 3,066,400 1,519,700 12,580,300 131,600 17, 298, 000 T o t a l U se s 3 7 7 ,5 5 5 ,0 9 6 3 3 8 ,2 4 4 ,9 0 0 3 5 5 ,2 6 3 ,2 0 0 3 5 9 ,8 3 0 ,4 0 0 3 7 1 ,1 3 2 ,3 0 0 Sources Over/(Under) Uses (4 2 ,0 8 7 ,4 0 2 ) 5 ,1 5 0 ,3 0 0 (3 ,0 4 8 ,8 0 0 ) 2 ,3 9 6 ,7 0 0 1 ,2 7 7 ,9 0 0 3,000,000 34,660,169 28,149,069 21,900,000 500,000 3,000,000 31,955,810 36,003,728 21,900,000 500,000 3,000,000 33,779,030 38,431,708 14,600,000 500,000 3,000,000 34,341,910 40,265,528 14,600,000 500,000 8 8 ,2 0 9 ,2 3 8 9 3 ,3 5 9 ,5 3 8 9 0 ,3 1 0 ,7 3 8 9 2 ,7 0 7 ,4 3 8 3,000,000 35,383,430 40,501,908 14,600,000 500,000 9 3 ,9 8 5 ,3 3 8 Expenditures Mayor and City Council City Attorney City Auditor City Clerk City Court City Manager City Treasurer Administrative Services Community and Economic Development Community Services (a) Public Safety - Fire (a) Public Safety - Police Public Works Cavasson Infra Reimb Ph1 Milestone Fuel and Maint and Repair Operating Impacts Utilities Leave Accrual Payments Savings from Vacant Positions D e b t S e r v ic e Certificates of Participation Contracts Payable TOTAL OPERATING BUDGET Transfers Out CIP CIP 25% Construction Sales Tax CIP Excess Interest CIP Food Tax CIP Stormwater Debt Svc MPC Bonds Operating Subtotal Ending Fund Balance Operating Contingency Operating Reserve PSPRS Pension Liabilities (b) AZCares Funding Cavasson Infrastructure Reimbursement (c) Undesignated, Unreserved Fund Balance Total Ending Fund Balance (d) (a) FY 2021/22 includes a $5.0 million payment to PSPRS for Public Safety - Fire and a $35.0 million payment to PSPRS for Public Safety - Police to pay down the unfunded liability. Designation is to address the Public Safety Personnel Retirement System (PSPRS) unfunded liability. FY 2019/20 PSPRS Net Pension Liabilities are $20.6 million for Public Safety Fire and $195.6 million for Public Safety - Police. FY 2021/22 includes a $5.0 million payment to PSPRS for Public Safety - Fire and a $35.0 million payment to PSPRS for Public Safety Police to pay down the unfunded liability. (c) Designation created in FY 2019/20 for the Cavasson Development Project and the eligible infrastructure reimbursements associated with milestones achieved in phases one, two and three of the development agreement. (d) Excludes accrued liabilities of $15.1 million in FY 2019/20 and unknown accrued liabilities in current and future years. (b) City of Scottsdale FY 2021/22 Adopted Budget - Volume One 83 Table of Contents BUDGET BY FUND | General Fund General Fund Sources General Fund sources include both revenues and transfers in from other funds such as the Special Programs, Tourism and Development and Water and Water Reclamation funds. For FY 2021/22 estimated General Fund revenues and transfers in equal $335.5 million, an increase of approximately $29.1 million, or 9.5 percent, from the FY 2020/21 adopted budget of $306.4 million. The increase is primarily related to the positive signs of economic recovery from the COVID-19 pandemic reflected mostly in Sales Tax revenue and State Shared Sales Tax. The increase would have been greater, but it is partly offset by a decrease in the State Shared Income Tax, which is $3.4 million lower than the FY 2020/21 adopted budget due to a two-year lag between the time citizens report income to the state and when the state remits shared income tax revenues to cities and towns. The General Fund Sources that are used for operating budget and debt service; and that contribute to the Capital Improvement Plan are identified in this section. 84 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Sales Tax (1.00%) BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Sales Tax (1.00%) represents the 1.00 percent General Fund share of the city’s total 1.75 percent Sales Tax that is available for any municipal purpose. This revenue also includes sales tax application and penalty fees. It is the General Fund’s largest revenue source, which is used to pay for general governmental operations as well as the repayment of Municipal Property Corporation (MPC) Bonds. For FY 2021/22, the anticipated revenue budget is $131.3 million, which is approximately $19.7 million, or 17.6 percent higher than the FY 2020/21 adopted budget of $111.7 million due to the positive signs of economic recovery from the COVID-19 pandemic. Staff forecast the Sales Tax collections by business category to arrive at more precise projections.The revenue forecasts for each business category use various assumptions that combine historical elements as well as emerging fiscal, economic and legal considerations. Historically, a portion of the Food Sales Tax collections is transferred to the CIP to fund various capital projects. However, the Transfers Out to the CIP was not approved for FY 2020/21. Instead, the funds were moved to the Operating Contingency so they would be available for unforeseen expenses related to the COVID-19 pandemic. The 1.00 percent five-year Sales Tax forecast is shown in detail in the following table by major business category. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 85 Table of Contents Sales Tax - Public Safety (0.10%) BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Sales Tax - Public Safety (0.10%) represents the 0.10 percent of the total 1.75 percent sales tax rate and is dedicated exclusively to public safety. The Sales Tax - Public Safety (0.10%) revenue budget for FY 2021/22 is $12.9 million, which is a $1.9 million increase from the FY 2020/21 adopted budget of $11.0 million as a result of the positive signs of economic recovery from the COVID-19 pandemic. This designated sales tax covers 6.2 percent of the FY 2021/22 Public Safety Police and Fire General Fund budgets combined. The 0.10 percent five-year Sales Tax - Public Safety forecast is shown in detail in the following table by major business category. 86 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Electric & Gas Franchise BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Electric & Gas Franchise includes franchise taxes charged on revenues from utility companies to use city right-of-ways and in-lieu property tax for municipal utilities. The FY 2021/22 budget for Electric & Gas Franchise totals $8.1 million, which is a decrease of $0.5 million from the FY 2020/21 adopted budget largely due to the savings to Arizona Public Service (APS) from the Tax Cuts and Jobs Act of 2017 being passed on to customers, which resulted in a lower revenue collection to the city. Cable TV License Fee FY 2017/18 to FY 2023/24 (in millions) Cable TV License Fee is a franchise tax charged on revenues from cable companies for use of city right-of-ways. The FY 2021/22 budget is $4.0 million, which is a decrease of $0.2 million from the FY 2020/21 adopted budget, mostly due to the anticipated decrease in the number of cable TV customers as more people resume normal activity after being homebound in FY 2020/21 due to the COVID-19 pandemic. The increase in revenue in FY 2019/20 is due to receiving the last FY 2018/19 quarterly payment in FY 2019/20. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 87 Table of Contents Stormwater Fee BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Stormwater Fee is a monthly charge to customers to help pay a portion of the city’s Stormwater Management program costs. These costs are driven by unfunded federal mandates that require the city to operate under a National Pollution Discharge Elimination System (NPDES) permit and to address the quality of stormwater runoff. The FY 2021/22 revenue budget of $0.9 million has remained consistent over the past years. Salt River Project In Lieu FY 2017/18 to FY 2023/24 (in millions) Salt River Project In Lieu is franchise taxes charged to Salt River Project (SRP), a local utility provider, for the use of city right-of-ways and in-lieu property tax for municipal utilities. Revenues have been consistent in prior years and both the adopted FY 2021/22 revenue and the FY 2020/21 adopted revenue total $0.2 million. Stormwater Fee - CIP FY 2017/18 to FY 2023/24 (in millions) Stormwater Fee - CIP (Capital Improvement Plan) is a user fee to protect the health, safety and welfare of the public from the impacts of flooding and is dedicated to fund/partially fund stormwater related capital projects. Beginning in FY 2018/19, a $2.00 monthly stormwater fee was approved by Council to support stormwater related capital improvements. In FY 2019/20, an increase of $0.95 was authorized by Council, followed by the addition of another $1.00 in FY 2021/22, which increased the stormwater fee to $3.95 to further fund stormwater related capital improvement projects. In FY 2020/21, the Stormwater Fee - CIP was directly recorded in the CIP instead of in the General Fund; therefore, the corresponding Transfers Out to the CIP is no longer applicable. Beginning in FY 2021/22, the Stormwater Fee - CIP is directly recorded in a Special Program Fund. 88 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents State Shared Income Tax BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) The formula for distribution of the State Shared Income Tax is based upon the relation of the city's population to the total incorporated state population according to the decennial census or population estimates of the U.S. Census Bureau. Cities and towns in Arizona are prohibited by law from levying a local income tax; however, 15 percent of the state income tax collections are shared with the cities and towns. There is a two-year lag between the time citizens report income to the state and when the state remits shared income tax revenues to cities and towns. Revenue from State Shared Income Tax is budgeted at $33.7 million for FY 2021/22, a decrease of $3.4 million from the FY 2020/21 adopted budget of $37.1 million. State Shared Sales Tax FY 2017/18 to FY 2023/24 (in millions) The formula for distribution of State Shared Sales Tax is based upon the relation of the city's population to the total incorporated state population according to the decennial census or population estimates of the U.S. Census Bureau. Cities and towns share in a portion of the 5.60 percent sales tax collected by the State. The distribution base (shared portion) varies by category. For example, retail sales is 40.00 percent shared and 60.00 percent non-shared (retained by the State). Of the shared portion, 25.00 percent is returned to incorporated cities and towns, 40.51 percent is returned to counties, and 34.49 percent is returned to the State General Fund. The FY 2021/22 revenue budget is $30.3 million, an increase of 5.8 million over the FY 2020/21 adopted budget of $24.5 million, mostly explained by the positive signs of economic recovery from the COVID-19 pandemic. Auto Lieu Tax FY 2017/18 to FY 2023/24 (in millions) Auto Lieu Tax, also known as Vehicle License Tax, is part of the vehicle license fees collected by Maricopa County, but it is actually a state revenue source. Approximately 20 percent of the net revenues collected for the licensing of motor vehicles by the county are distributed back to incorporated cities and towns based on population in relation to the total incorporated population of the county. The only stipulation on the use of this revenue is that it must be spent on a public purpose. The revenue budget for FY 2021/22 is $12.0 million as provided by the League of Arizona Cities and Towns, which is $1.4 million higher than the FY 2020/21 adopted budget of $10.6 million. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 89 Table of Contents Property Tax BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Property Tax represents the primary portion of the Property Tax which is levied on the assessed value of all property within the city to help pay for general governmental operation costs. By Arizona State Statute, the primary property levy is limited to a two percent increase per year, plus an allowance for annexations and new construction. Primary property tax accounts for approximately 10.4 percent of the total adopted FY 2021/22 General Fund sources. The FY 2021/22 revenue budget of $34.8 million represents an increase of $1.7 million from the FY 2020/21 adopted budget of $33.1 million due to the two percent statutory allowable increase, reach-back for the two percent statutory allowable increase not included in the FY 2020/21 adopted budget, and new construction. The adopted primary property tax rate of 0.5039 cents per $100 of assessed valuation represents a 0.0234 cent decrease from the FY 2020/21 rate. Building Permit Fees & Charges FY 2017/18 to FY 2023/24 (in millions) Building Permit Fees & Charges includes fees assessed to developers/builders that recover the cost of four primary functions: 1) reviewing/processing development applications; 2) plan review of construction documents; 3) the issuance of building, electrical, mechanical and plumbing permits; and 4) the inspection of buildings/structures in the construction phase. The FY 2021/22 revenue budget of $17.2 million is $0.7 million higher than than the FY 2020/21 adopted budget mostly due to higher anticipated revenues from large development projects. The increase would have been higher, but it is offset in part by the Right-of-Way Fees budget being decreased to align with prior years' actuals. 90 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents WestWorld Equestrian Facility Fees BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) WestWorld Equestrian Facility Fees includes revenue (general facility rental, concessions, parking fees, etc.) from events such as horse shows, auto auctions and car shows, consumer and home shows, as well as recreational vehicle (RV) space rental income at WestWorld. The FY 2021/22 revenue budget is mostly based on future confirmed bookings, and it is estimated to be $5.2 million, which is an increase of $0.1 million from the FY 2020/21 adopted budget. Intergovernmental FY 2017/18 to FY 2023/24 (in millions) Intergovernmental revenue sources include payments for School Resource Officers (SRO) from the Public Safety - Police Division to service local area schools, a Salt River PimaMaricopa Indian Community agreement for providing crime laboratory services, and revenue received from the Maricopa County Library District for reciprocal interlibrary use. FY 2021/22 revenues are budgeted at $4.4 million, which is an increase of $0.3 million from the FY 2020/21 adopted budget primarily due to funding for an agreement with the Scottsdale Unified School District for one-time audit services, an increase to the SRO annually renewed agreement, and a slight increase in the estimated Fire Insurance Premium credit. Beginning in FY 2018/19 a change in an accounting reporting requirement by the Governmental Accounting Standards Board (GASB) was adopted to recognize the Fire Insurance Premium credit as a revenue and expense for the Public Safety Personnel Retirement System (PSPRS) where previously only the net was recorded as an expense. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 91 Table of Contents Property Rental BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Property Rental revenues are rental fees on facilities such as the Scottsdale Stadium, as well as funding received from the Tournament Players Club (TPC) for a percent of revenue on gross sales agreements. The FY 2021/22 adopted revenue is estimated to be $3.3 million, which is relatively flat when compared to the FY 2020/21 adopted budget due to new revenue anticipated from the use of baseball fields at Indian School Park resulting from the completion of the Bond 2019 capital project 30 - Indian School Park Field 1 Lighting, which is offset by lower anticipated revenue from the TPC. Miscellaneous FY 2017/18 to FY 2023/24 (in millions) Miscellaneous revenue includes various revenues the city receives during any given year that are not attributable to one of the specific revenue categories noted previously, such as Other Sale of Property, Passport Fees, Copies of Materials, etc. The FY 2021/22 adopted revenue is $1.5 million, which is $0.4 million higher than the FY 2020/21 adopted budget of $1.1 million. The increase is mostly due to a change in an accounting reporting requirement by the Governmental Accounting Standards Board (GASB) that was adopted to recognize leases as revenue and expense, where previously only the net was recorded as an expense. Actual revenue being higher than the adopted amount from FY 2017/18 to FY 2019/20 is related to unbudgeted revenues collected from: the San Francisco (SF) Giants for stadium usage, prosecution material requests, and mobile integrated health services. In FY 2019/20, the Regional Wireless Cooperative revenue was moved to the Intergovernmental revenue category and the SF Giants stadium usage revenue was moved to the Special Programs Fund. 92 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Contributions & Donations BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 There is no FY 2021/22 Contributions & Donations budget. The FY 2019/20 actual revenue is a one-time contribution from CIGNA Healthcare for the Annual Employee Picnic. Recreation Fees FY 2017/18 to FY 2023/24 (in millions) Recreation Fees includes revenue from various recreational programs, classes and entry fees. In accordance with the city’s adopted financial policies, recreation fees are reviewed and adjusted annually as needed to meet cost recovery targets as approved by City Council. The FY 2021/22 budget of $4.5 million is $1.6 million higher than the FY 2020/21 adopted budget of $2.8 million due the lessening of COVID-19 restrictions that are increasing participation in recreational programs and the use of city facilities. Fire Charges for Services FY 2017/18 to FY 2023/24 (in millions) Fire Charges for Services includes fees for the cost recovery of fire and medical standbys at special events, after-hours inspections, ambulance staffing, and medical enhancement costs associated with the ambulance agreement. In addition, the Public Safety - Fire Division collects fees for Cardiopulmonary Resuscitation (CPR) classes, permits and incident reports. The FY 2021/22 revenues are budgeted at $1.9 million, which is slightly higher than the FY 2020/21 adopted budget of $1.8 million mostly due to reimbursement allowed in the ambulance contract for clinical improvements. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 93 Table of Contents Business & Liquor Licenses BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Business & Liquor Licenses includes the licensing of business activity and associated fees for the licensure and regulation of specific activities. Revenues of $1.8 million are budgeted for FY 2021/22, which is flat when compared to the FY 2020/21 adopted budget. Indirect Costs FY 2017/18 to FY 2023/24 (in millions) Indirect Costs is payments for services provided by the General Fund to other operating areas within the city. These services include Accounting, Human Resources, Information Technology, etc. Indirect Costs are budgeted at $6.8 million for FY 2021/22, which is an increase of $0.3 million from the FY 2020/21 adopted budget. Although overall Direct Costs used in the Indirect Costs calculation are higher, the Indirect Costs rate decreased from 8.10 percent in FY 2020/21 to 6.89 percent in FY 2021/22. Direct Cost Allocation (Fire) FY 2017/18 to FY 2023/24 (in millions) Direct Cost Allocation (Fire) is the direct cost of fire services at the Scottsdale Airport. The FY 2021/22 revenue of $0.4 million, which remains flat when compared to the FY 2020/21 adopted budget, is received from the Aviation Fund. The direct cost allocation is anticipated to increase gradually as related costs such as personnel and material expenses increase. 94 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Court Fines BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Court Fines is the General Fund portion of penalties or fees assessed by State Statute, City Ordinance or the Presiding Judge. Examples include: fines, a portion of the registration fee to attend Defensive Driving School, bonds forfeited to the city, and default fees. The other portions of the fines are included in the Special Programs Fund for Court Enhancement and the Judicial Collections Enhancement or remitted to the State of Arizona. Revenues of $4.0 million are budgeted for FY 2021/22, which is in line with the FY 2020/21 adopted budget. Photo Radar FY 2017/18 to FY 2023/24 (in millions) Photo Radar is the General Fund's portion of photo enforcement penalties as assessed by the Presiding Judge. Examples include: red light and speeding fines and a portion of the registration fee to attend Defensive Driving School. The other portions of the fines are included in the Special Programs Fund for Court Enhancement and Judicial Collections Enhancement or remitted to the State of Arizona. Revenues are budgeted at $2.3 million for FY 2021/22, which is a decrease of $0.3 million when compared to the FY 2020/21 adopted budget due to less drivers out on the roads, delays and failure in completing payments, and a decline in filings resulting from the COVID-19 pandemic. Photo Radar revenue is offset by the costs to run the program. The use of photo radar by the Public Safety - Police Division is designed as a deterrent to unsafe driving and to modify driving habits, not as a revenue producer. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 95 Table of Contents Parking Fines BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Parking Fines are the General Fund portion of parking fees assessed per City Ordinance and are budgeted at $0.3 million for FY 2021/22, which is in line with the FY 2020/21 adopted budget. The other portions of the fines are included in the Special Programs Fund for Court Enhancement and Judicial Collections Enhancement. .EMP(SVQMXSV] FY 2017/18 to FY 2023/24 (in millions) 8LINEMPHSVQMXSV]TVSKVEQ[LMGLEPPS[WSJJIRHIVW EHNYHMGEXIHSYXWMHISJ7GSXXWHEPIXLISTTSVXYRMX]XSWIVZI XLIMVWIRXIRGIMRXLIGMX]’WNEMPWXEVXIHSTIVEXMSRWMR*= [MXLERMKLXP]JIISJ8LIJIIMWGSQTEVEFPIXS XLIEZIVEKISJX[SJIIWWIXF]XLI1EVMGSTE'SYRX]7LIVMJJ W 3JJMGI8LI*=EHSTXIHVIZIRYIMWQMPPMSRE HIGVIEWISJQMPPMSR[LIRGSQTEVIHXSXLI*= EHSTXIHFYHKIXHYIXSZIV]JI[SJJIRHIVWFIMRKLSYWIHHYIXS '3:-(GSRGIVRW8LMWVIZIRYIMWI\TIGXIHXSMRGVIEWIEW '3:-(VIWXVMGXMSRWPIWWIR Library FY 2017/18 to FY 2023/24 (in millions) Library fees are monies collected when library materials are lost, and/or are damaged. Late fees were eliminated in FY 2020/21 resulting in the FY 2021/22 budget of $0.1 million being $0.1 million lower than the FY 2020/21 adopted budget. 96 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Interest Earnings BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Interest Earnings are generated on idle General Fund cash balances throughout the year. This revenue is a function of the relationship between the city’s available cash balance and the interest rate. The city earns interest on funds through various investment vehicles in accordance with Arizona Revised Statutes and City Ordinance. The city’s investment policy stresses safety above yield. Interest earnings applicable to bond proceeds and the Capital Improvement Plan (CIP) accrue to the CIP budget and are not included in General Fund revenues. Interest Earnings revenue is budgeted at $1.9 million in FY 2021/22, a decrease of $1.5 million when compared to the FY 2020/21 adopted budget of $3.5 million due to presumption of interest rates trending lower through FY 2022/23. Per Financial Policy No.17, 100 percent of net interest income in excess of $1.0 million will be transferred to the General Fund CIP. Transfers In Transfers In is the authorized movement of cash or other resources from other funds. The FY 2021/22 General Fund adopted budget includes $11.4 million in Transfers In. 8VERWJIVW-R FY 2017/18 to FY 2023/24 (in millions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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 97 Table of Contents BUDGET BY FUND | General Fund General Fund Uses The General Fund uses are presented by the following divisions, additional non-divisional operating categories, debt service and transfers out. The increase in FY 2021/22 is mainly due to a one-time $40 million payment to the Public Safety Personnel Retirement System (PSPRS) to pay down the unfunded liability, and to increases in Personnel Services cost that included: 1) a FY 2020/21 midyear increase for pay for performance and market adjustment to eligible employees which was originally not in the adopted budget 2) a pay for performance and market adjustment to eligible employees for FY 2021/22; and 3) increases in retirement rates. Mayor and City Council FY 2017/18 to FY 2023/24 (in millions) Mayor and City Council includes the voter elected mayor, six Council members and operational support staff. The FY 2021/22 is $1.0 million, which is $0.2 million greater than the FY 2020/21 adopted budget of $0.8 million. The increase is due to increases in Personnel Services costs including salaries and benefits, and in Property Liability and Workers Compensation funding due to a change in methodology to calculate the Risk Management Internal Rates. City Attorney FY 2017/18 to FY 2023/24 (in millions) The City Attorney is the city’s chief legal advisor and includes Civil, Prosecution, Risk Management and Victim Services Departments. The FY 2021/22 adopted budget of $7.8 million is $1.2 million greater than the FY 2020/21 adopted budget of $6.6 million, mainly due to: 1) proceeding with the filling of positions that were kept vacant in FY 2020/21 due to economic uncertainty caused by the COVID-19 pandemic; 2) increases in Personnel Services costs including salaries and benefits; and 3) an increase in legal services for outside counsel. 98 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents City Auditor BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) The City Auditor conducts audits to independently evaluate the operational efficiency and effectiveness, compliance and accountability of the city. The FY 2021/22 budget is $1.2 million, which is an increase of $0.1 million compared to the FY 2020/21 adopted budget due to the increase of 0.25 FTE to the Executive Assistant to the City Auditor position and a pay for performance and market adjustment to eligible employees, City Clerk FY 2017/18 to FY 2023/24 (in millions) The City Clerk conducts all local elections, gives notice of all City Council meetings, keeps the records of Council proceedings, administers the city's records management program, authenticates ordinances and resolutions, and provides administrative support to the Council. The Clerk's expenses fluctuate from year to year due to the cycle of elections. The City Clerk conducts and oversees the election process for municipal elections, referendums and initiatives within the city resulting in increased costs when these activities occur. At times elections are known, such as when Council seats are up for election. Other times, the elections may not be known such as new General Obligation Bond proposals being taken to the voters. Therefore, some differences between budget to actuals may reflect this as was the case in FY 2019/20. The FY 2021/22 budget of $1.2 million is flat when compared to the FY 2020/21 adopted budget as costs associated with the general election that occurred in FY 2020/21 are being almost entirely offset by costs related to a special election to be held during FY 2021/22. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 99 Table of Contents City Court BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) The City Court is part of the integrated judicial system for Arizona and is the judicial branch for the city efficiently resolving civil traffic and misdemeanor violations, petty offenses, City Ordinance and code violations, and issuance of protective orders. There is a total of $5.0 million budgeted for FY 2021/22, which is an increase of $0.5 million when compared to the FY 2020/21 adopted budget due to increases in Personnel Services costs including salaries and benefits. City Manager FY 2017/18 to FY 2023/24 (in millions) The City Manager Division provides the organizational leadership necessary to successfully implement the policy direction of the City Council, communicates that direction to the organization, ensures the efficient, effective and economical delivery of services to citizens, builds relationships with other governments, and fosters diversity. The FY 2021/22 adopted budget of $4.4 million, an increase of $0.5 million from the FY 2020/21 adopted budget, is related to the addition of an Administrative Assistant position and increases in Personnel Services costs including salaries and benefits. City Treasurer FY 2017/18 to FY 2023/24 (in millions) The City Treasurer, the city's chief financial officer, is responsible for providing City Council and management with timely financial reports as well as oversight of the Accounting, Budget, Finance, Business Services and Purchasing Departments. The FY 2021/22 budget of $11.5 million is $1.5 million higher when compared to the FY 2020/21 adopted budget. The increased costs are primarily related to higher software license and maintenance fees and new annual licensing and support fees for the new Enterprise Resource Management System and to increases in Personnel Services costs including salaries and benefits. 100 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Administrative Services BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Administrative Services is comprised of the Human Resources and the Information Technology Departments. These departments are responsible for a wide breadth of activities including the sharing of information; training, recruiting and hiring employees as well as benefits and compensation; and the design, support and maintenance of a variety of citywide systems and hardware. The FY 2021/22 Administrative Services budget of $17.7 million is $2.1 million higher than the FY 2020/21 adopted budget. The increase is due to: 1) the addition of 2.50 FTE; 2) the reclassification of a Software Engineer Senior into a Software Architect; 3) increase in Personnel Services costs including salaries and benefits; 4) higher overall software and lease costs; and 5) annual maintenance expense for a new Document Management System that was previously approved as part of Bond 2019. Community and Economic Development FY 2017/18 to FY 2023/24 (in millions) Community and Economic Development works to preserve Scottsdale as a great community, offering value-added programs to stimulate the economy, sustain, revitalize, and build upon the community's unique lifestyle and character. The departments with General Fund budgets include Economic Development, Planning and Development Services, and Tourism and Events. The FY 2021/22 budget is $22.3 million, which is an increase of $2.2 million from the FY 2020/21 adopted budget of $20.1 million primarily due to increases in Personnel Services including the filling of positions that were kept vacant in FY 2020/21 due to economic uncertainty caused by the COVID-19 pandemic, and the increase in Personnel Services costs including salaries and benefits. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 101 Table of Contents Community Services BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Community Services is comprised of six departments: Human Services, Library Systems, Parks & Recreation, Planning and Administration, Preserve Management and WestWorld. Each of these departments work to improve the quality of life of Scottsdale residents and visitors. The FY 2021/22 adopted budget of $44.1 million is a $4.9 million increase from the FY 2020/21 adopted budget of $39.2 million. This increase is primarily related to: 1) the addition of 0.74 FTE; 2) the reallocation of part-time hours for a Recreation Leader I and a Recreation Leader II positions at Scottsdale Sports Complex; 3) the movement and reclassification of a vacant Human Services Recreation Leader II to a Maintenance Tech Aquatics position to allow for apprentice training of critical aquatics technology operations related to public safety; 4) proceeding with the filling of positions that were kept vacant in FY 2020/21 due to the economic uncertainty caused by the COVID-19 pandemic; 5) annual one-time contract labor costs to assist with custodial needs related to WestWorld events; 6) an increase in Personnel Services costs including salaries and benefits; 7) new maintenance and upkeep contract and supply costs related to the midyear opening of the Bell Road Sports Complex; 8) maintenance and upkeep contract costs associated with the baseball facilities at Indian School Park moving under City of Scottsdale control; 9) greater quantities of chemicals purchased to prepare for higher expected summer use of pool facilities; and 10) the acquisition of lights for two fields at the Scottsdale Sports Complex. 102 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Public Safety - Fire BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Public Safety - Fire responds to emergencies through timely, skilled and compassionate service including; fire, emergency medical, chemical, biological, nuclear and radiologic, wildland and technical rescue. The FY 2021/22 adopted budget of $57.9 million is $16.9 million higher than the FY 2020/21 adopted budget of $41.0 million. The increase is due to: 1) contract worker services needed to complete a one-year contract to assist with research, development and implementation of effective and proactive wildfire strategies, which eliminate or reduce the wildfire threats in and adjacent to the McDowell Mountain Sonoran Preserve; 2) a $5.0 million payment to the Public Safety Retirement System (PSPRS) to pay down the unfunded liability; 3) higher overtime costs related to a citywide change for vacation accruals for employees. Vacation accruals are being modified to better align with the market; 4) proceeding with the filling of positions that were kept vacant in FY 2020/21 due to economic uncertainty caused by the COVID-19 pandemic; 5) an increase in Personnel Services costs including salaries and benefits; 6) the conclusion of AZCares grant funding totaling $5.2 million received in FY 2020/21 from the state to assist with public safety personnel costs as a result of the economic uncertainty caused by the COVID-19 pandemic; 7) increased contract costs across the division including Computer Aided Dispatch and technology contracts, amongst others; 8) increased training efforts associated with impending attrition issues throughout the division; 9) higher than expected fleet maintenance, repair and replacement costs related to major repairs to older vehicles as a result of not receiving replacement vehicles at the expected rate due to the COVID-19 pandemic and the up-fitting of vehicles; 10) higher specialty line communication contract costs; 11) the need to purchase additional personal protective clothing, technical rescue equipment and hazardous materials gear bags to help train up staff in light of pending attrition levels; and 12) the one-time costs associated with a scheduled replacement of a pumper truck in FY 2021/22 to an upgraded model. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 103 Table of Contents Public Safety - Police BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Public Safety - Police provides efficient and effective police services to the community including: confronting crime, responding to citizens and visitors' concerns, and seeking citizen involvement and partnerships. The operating areas include Police Uniformed Services, Investigative Services, Operational Services and Office of the Police Chief. The FY 2021/22 adopted budget of $152.1 million is $51.7 million higher than the FY 2020/21 adopted budget of $100.4 million. The increase is primarily related to: 1) a one-time $35.0 million payment to the Public Safety Personnel Retirement System (PSPRS) to pay down the unfunded liability; 2) an increase in Personnel Services costs including salaries and benefit; 3) the conclusion of AZCares grant funding totaling $7.2 million received in FY 2020/21 from the state to assist with public safety personnel costs as a result of the economic uncertainty caused by the COVID-19 pandemic; and 4) fleet replacement costs as a result of not receiving replacement vehicles at the expected rate due to the COVID-19 pandemic. Public Works FY 2017/18 to FY 2023/24 (in millions) Public Works General Fund includes Capital Project Management (CPM) which oversees the design and construction of capital improvement projects (also includes the city's real estate services area), and Facilities Management which includes the repair and maintenance of nearly three million square feet of city-owned facilities, as well as strategic space planning and contract administration. The FY 2021/22 adopted budget of $24.1 million is an increase of $1.1 million when compared to the FY 2020/21 adopted budget of $23.0 million. The increase is related to: 1) increased maintenance costs to city facilities including flooring replacement, roof recoating, and lighting improvements; 2) Americans with Disabilities Act (ADA) upgrades and modifications at various locations; 3) the increase of 3.00 FTE, which consists of the addition of two Citizen Services Representatives and a Plumber; and 4) an increase in Personnel Services costs including salaries and benefits. The increase would have greater but is offset by the reallocation of Public Works Administrative salaries to various funds reflective of their job functions. 104 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | General Fund Non-Divisional Uses Non-Divisional Uses are items that were budgeted in citywide macro level holding accounts. As expenditures occur in the applicable divisions, budget transfers are completed to move the needed budget from the macro level holding accounts to the respective divisions. Therefore, the FY 2020/21 year-end forecast and prior years’ budget and actuals that are displayed in the graphs are for comparison purposes only as the expenditures are actually recorded and reported as part of the applicable division’s uses. Beginning in FY 2020/21 due to an administrative change, most non-divisional uses are initially placed into the divisions instead of at a macro level; then moving the budget to a macro level holding account at the beginning of the fiscal year, and completing budget transfers to move the needed budget back to the applicable divisions as expenditures occur. The administrative change is in an effort to have more meaningful year-over-year comparisons. Fuel and Maint and Repair FY 2017/18 to FY 2023/24 (in millions) Fuel and Maint and Repair are budgeted at the division level and then at the beginning of the fiscal year are moved to a macro account. Budgeting on a macro level is a tool used by the budget department to more accurately track how expenses are occurring by each division. Fuel and Maint and Repair includes expenses related to vehicle and equipment repairs and fuel usage. The adopted FY 2021/22 Fuel and Maint and Repair is budgeted at $4.9 million at the division level. Leave Accrual Payments FY 2017/18 to FY 2023/24 (in millions) Leave Accrual Payments includes accumulated medical and/or vacation leave paid out at the time of retirement or separation from the city. The total FY 2021/22 Leave Accrual Payments budget is $2.2 million, which includes $1.3 million budgeted for medical leave accrual payouts and $0.9 million budgeted for vacation accrual payouts. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 105 Table of Contents Operating Impacts BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Operating Impacts is additional future costs associated with Capital Improvement Plan (CIP) projects that impact operating budget such as positions, facilities maintenance, utilities, and annual software maintenance. In FY 2021/22 and years prior, operating impacts have been included at the division level. FY 2022/23 thru FY 2023/24 are forecasted based on the adopted CIP Five Year Plan. Utilities FY 2017/18 to FY 2023/24 (in millions) Utilities are budgeted at the division level and then at the beginning of the year are moved to a macro account. Budgeting on a macro level is a tool used by the Budget Department to more accurately track how expenses are occurring by each division. Utilities include city expenses on water, electric, sewer, gas, solid waste and recycling services. The FY 2021/22 Utilities budget is $8.6 million which remains flat when compared to the FY 2020/21 adopted budget. Savings from Vacant Positions FY 2017/18 to FY 2023/24 (in millions) The amount of savings achieved from vacant positions for FY 2021/22 is estimated at ($6.4) million. The FY 2020/21 savings from vacant positions budget accounted for the citywide effort to delay filling of vacant positions until January 2021. 106 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | General Fund Debt Service and Transfers Out Debt Service is the payment of principal, interest and related service charges on obligations resulting from the issuance of bonds. Transfers Out are the authorized movement of cash to other funds and/or capital projects. Certificates of Participation FY 2017/18 to FY 2023/24 (in millions) Certificates of Participation (COPs) are instruments whereby the city enters into a lease-purchase agreement for the acquisition, operation and/or maintenance of a project. COPs are secured by a budgeted appropriation made each year by the city. At the completion of the lease period, the city owns the project. In FY 2010/11 the city issued $20.0 million of COPs for a public safety radio system. The final payment was was made in FY 2019/20. Contracts Payable FY 2017/18 to FY 2023/24 (in millions) Contracts Payable is primarily contractual debt related to sales tax development agreements and will vary based on the actual sales tax collections at each developed site. The FY 2021/22 Contracts Payable budget is $0.4 million. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 107 Table of Contents CIP BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Transfers Out to the Capital Improvement Plan (CIP) in FY 2021/22 is $16.9 million, which ensures compliance with Financial Policy No.17 ($3.0 million or 25 percent of the construction sales tax, $0.9 million or 100 percent of net interest income in excess of $1.0 million, and $4.6 million or two-thirds of the sales tax collected on food for home consumption); and provides funding for various CIP projects that do not have a dedicated funding source. Beginning in FY 2021/22, the portion of the Stormwater Fee paid by utility customers that is dedicated to funding stormwater related capital projects is recorded in a Special Programs Fund. Debt Svc MPC Bonds FY 2017/18 to FY 2023/24 (in millions) Debt Service Municipal Property Corporation (MPC) bonds includes transfers to the Debt Service Fund for the annual debt service payments for MPC bonds issued that use sales tax as dedicated revenue source to service the debt. The MPC bonds issued include SkySong, WestWorld land acquisitions, Tournament Players Club (TPC) improvements, the Tony Nelssen Equestrian Center (TNEC) and the Scottsdale Fashion Square parking garage. In FY 2021/22 a total of $14.0 million will be transferred to the Debt Service Fund for MPC bonds issued. Operating FY 2017/18 to FY 2023/24 (in millions) The FY 2021/22 Operating Transfers Out budget of $0.1 million is to the Healthcare Self Insurance Fund to subsidize the costs of providing disabled public safety retiree healthcare benefits, per City Council direction. FY 2020/21 includes a City Council approved administrative correction to move the savings in the General Fund generated by the AZCares Grant Program to a Special Revenue Fund to ensure governmental accounting standards are being met. FY 2017/18 included a transfer of approximately $0.8 million, approved by City Council, to the Downtown Cultural Trust for downtown development. 108 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | General Fund General Fund Ending Balance Fund balance/reserves protect the city’s financial condition and provide for unexpected economic challenges. The specific make-up of the city’s General Fund ending balance is noted in the following: Operating Contingency FY 2017/18 to FY 2023/24 (in millions) Operating Contingency includes $3.0 million of budget authorization in the event that unforeseen expenses occur during the fiscal year. In FY 2020/21, an additional $6.0 million of budget authorization was also included and represented two-thirds of the sales tax collected on food for home consumption set aside by Council's direction to be used in the event of unforeseen expenses related to the COVID-19 pandemic. Contingency funds are utilized only after all budget options have been considered and require City Council approval. Operating Reserve FY 2017/18 to FY 2023/24 (in millions) The Operating Reserve complies with Reserve Management Financial Policy No. 36. The policy states the General Fund will maintain a stabilization reserve of ten percent of the annual General Fund operating expenditures which is to only be used for unforeseen emergencies or catastrophic impacts to the city. Maintaining a sufficient General Fund Reserve level is financially prudent. Based on the operating budget expenditure estimate, the ending FY 2021/22 General Fund Operating Reserve is $34.7 million. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 109 Table of Contents PSPRS Pension Liabilities BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Public Safety Personnel Retirement System (PSPRS) is an Arizona pension system for public safety personnel. Beginning in FY 2018/19 a 'PSPRS Pension Liabilities' designation was created. This begins to address the unfunded liability in this area and will shore-up the city's portion of the pension program for public safety personnel. In prior years, funds were held in the Undesignated, Unreserved Fund Balance. The FY 2021/22 PSPRS Pension Liabilities fund balance designation is $28.1 million, which is a decrease of $24.1 million from the FY 2020/21 adopted budget. The decrease is the net effect of a $40.0 million payment to the PSPRS to pay down the unfunded liability and anticipated greater sources than uses. AZCares Funding FY 2017/18 to FY 2023/24 (in millions) In late FY 2019/20, the city received an AZCares Grant of $29.6 million, which could only be used to cover Public Safety Personnel Services expenses incurred from March 1, 2020 through June 30, 2020, and forecasted through December 30, 2020. The public safety's related budget and expenses, which span over FY 2019/20 and FY 2020/21, were moved to the Grant Funds from the General Fund. Moving the budget and expenses resulted in an equal amount of funding available within the General Fund. The newly available amount of $29.6 million in the General Fund was then designated (AZCares Funding) in the fund balance to be used to supplement existing programs, create new programs, execute contracts and expend funds as may be necessary to mitigate the effects of and aid in recovery from the COVID-19 pandemic. City Council approved Resolution No. 11883 on August 25, 2020 to complete an administrative correction and to move the funding to a Special Revenue Fund to ensure governmental accounting standards are being met. 110 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Cavasson Infrastructure Reimbursement BUDGET BY FUND | General Fund FY 2017/18 to FY 2023/24 (in millions) Designation created in FY 2019/20 for the Cavasson Development Project and the eligible infrastructure reimbursements associated with milestones achieved in phases one, two and three of the development agreement. The FY 2021/22 fund balance designation is $21.9 million. Undesignated, Unreserved Fund Balance FY 2017/18 to FY 2023/24 (in millions) Undesignated, Unreserved Fund Balance accounts for any funds remaining after the designation of all other reserves/uses. The FY 2021/22 ending undesignated, unreserved fund balance is $0.5 million. Under prudent fiscal management practices, this balance may be used for one-time expenditures, not to fund new or to expand programs with ongoing operating expenses. FY 2017/18 adopted and actual amounts include funds that were moved to PSPRS Pension Liabilities to address the unfunded liability for public safety personnel. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 111 Table of Contents 112 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Scottsdale Stadium Aerial View Courtesy of the Scottsdale Charros and Scottsdale Public Library Table of Contents BUDGETBUDGET BY FUND | Special Revenue Funds Overview BY FUND | Special Revenue Funds Overview 7TIGMEP6IZIRYI*YRHW(IWGVMTXMSR 7TIGMEP6IZIRYI*YRHWEVIYWIHXSEGGSYRXJSVXLITVSGIIHWSJWTIGMJMGVIZIRYIWSYVGIWXLEXEVIPIKEPP]VIWXVMGXIHXS I\TIRHMXYVIWJSVWTIGMJMIHTYVTSWIW)\EQTPIWSJVIWXVMGXIHVIZIRYIWXLEXQYWXFIWTIRXSRWTIGMJMGTYVTSWIWEVI7EPIW8E\  8VERWTSVXEXMSR 2 7EPIW8E\4VIWIVZEXMSR  ,MKL[E]9WIV8E\8VERWMIRX3GGYTERG]8E\ERHWTIGMEP TVSKVEQWWYGLEWXLI4SPMGI(E]8S[TVSKVEQ8LIWIGXMSRWXSJSPPS[HMWGYWWIEGLSJXLIJYRHWMRQSVIHIXEMP 7TIGMEP6IZIRYI*YRHW7SYVGIW XS8SXEP  1MPPMSR 7TIGMEP6IZIRYI*YRHW9WIW XS8SXEP 1MPPMSR Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 113 Table of Contents 114 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET FUND | Transportation Fund BUDGET BY BY FUND | Transportation Fund Overview *YRH4YVTSWI 8LI7XEXISJ%VM^SREVIUYMVIWXLIGMX]XSIWXEFPMWLERHQEMRXEMREREGGSYRXMRKJSV,MKL[E]9WIV8E\VIZIRYI8LI8VERWTSVXEXMSR *YRHVIGIMZIWERHI\TIRHWXLIGMX]’WEPPSGEXMSRSJXLI%VM^SRE,MKL[E]9WIV8E\[LMGLMWEPPSGEXIHFEWIHSRXLISJJMGMEP97'IRWYW &YVIEYTSTYPEXMSRIWXMQEXIEWHMVIGXIHF]7XEXYXI8LIWIQSRMIWQYWXFIYWIHJSVWXVIIXGSRWXVYGXMSRVIGSRWXVYGXMSRSV QEMRXIRERGI8LIJYRHEPWSEGGSYRXWJSVSXLIVXVERWTSVXEXMSRVIPEXIHVIZIRYIWEW[IPPEWJSVXLIZSXIVETTVSZIH7EPIW8E\ 8VERWTSVXEXMSRSJTIVGIRX[LMGLMWHIHMGEXIHJYRHMRKJSVXVERWTSVXEXMSRMQTVSZIQIRXWERHSTIVEXMSRW 2SXI&IKMRRMRK3GXSFIVXLIZSXIVETTVSZIH7EPIW8E\– 8VERWTSVXEXMSRSJTIVGIRXSJXLIGMX]’WWEPIWXE\HIHMGEXIH WSPIP]XSXLI%VXIVMEP0MJI']GPI4VSKVEQXVERWTSVXEXMSRGETMXEPTVSNIGXMWFIMRKVIGSVHIHHMVIGXP]MRXLI'ETMXEP-QTVSZIQIRX4PER ZIVWYWE8VERWJIV3YXXS'-4JVSQXLI8VERWTSVXEXMSR*YRH 8VERWTSVXEXMSR*YRH7SYVGIW XS8SXEP  1MPPMSR Transportation Fund Uses (% to Total) $48.0 Million Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 115 Table of Contents BUDGET BY FUND | Transportation Fund Summary A ctu al 2019/20 A d op t ed 2020/21 F or ec a s t 2020/21 A d op t ed 2021/22 500,000 2,722,738 9,910,823 13,133,561 500,000 2,795,890 10,868,729 14,164,619 500,000 2,443,038 13,117,287 16,060,325 500,000 2,534,726 20,392,832 23,427,558 23,075,805 2,683,200 16,869,912 641,606 199,967 21,043 431,095 7,125 - 21,153,915 17,999,622 655,000 120,000 6,000 453,514 - 23,638,767 17,885,271 655,000 120,000 6,000 453,514 7,913 24,561,517 17,167,454 655,000 100,000 4,930 - 43,929,754 40,388,051 42,766,465 42,488,901 1,200,000 300,000 - 1,817,639 - - 1,500,000 - 1,817,639 - 45,429,754 40,388,051 44,584,104 42,488,901 22,599,198 58,874 1,772,311 - 23,923,731 59,737 1,897,945 18,800 104,100 (197,696) - 22,062,165 61,095 1,897,945 18,800 626,667 72,664 607,922 25,725,443 66,409 2,019,879 18,800 32,093 (340,000) - 24,430,383 25,806,617 25,347,258 27,522,624 24,430,383 25,806,617 25,347,258 27,522,624 14,137,903 3,879,645 55,059 10,576,957 50,230 11,819,383 50,230 20,280,758 238,132 18,072,607 10,627,187 11,869,613 20,518,890 T ot a l U s es 42,502,990 36,433,804 37,216,871 48,041,514 Sources Over/(Under) Uses 2,926,764 3,954,247 7,367,233 (5 , 5 5 2 , 6 1 3 ) E n d i n g Fu n d B a l a n c e Operating Contingency Operating Reserve Undesignated, Unreserved Fund Balance T ot a l E n d i n g F u n d B a l a n c e 500,000 2,443,038 13,117,287 16,060,325 500,000 2,580,662 15,038,204 18,118,866 371,111 2,534,726 20,521,721 23,427,558 500,000 2,752,262 14,622,683 17,874,945 B eg i n n i n g F u n d B a l a n c e Operating Contingency Operating Reserve Undesignated, Unreserved Fund Balance T ot a l B eg i n n i n g F u n d B a l a n c e R ev en u es Sales Tax - Transportation (0.20%) Sales Tax - Transportation (0.10%) (a) Highway User Tax Local Transportation Assistance Fund Intergovernmental Miscellaneous Indirect/Direct Cost Allocations (b) Property Rental Reimbursements from Outside Sources Subtotal T r a n s f er s I n CIP Operating (c) Subtotal T ot a l S ou r c es E x p en d i t u r es Public Works City Treasurer Community Services Administrative Services Fuel and Maint and Repair (d) Leave Accrual Payments Operating Impacts Savings from Vacant Positions Utilities (d) Subtotal TOTAL OPERATING BUDGET Transfers Out CIP CIP 0.1% Sales Tax CIP Technology Subtotal (a) Beginning October 2019, Sales Tax – Transportation (0.10%) is recorded directly in the Capital Improvement Plan (CIP) revenue versus a Transfer Out to the CIP. (b) Beginning in FY 2021/22, the Citywide Direct Cost Allocation from the Solid Waste Fund to the Transportation Fund will be eliminated. Alley Maintenance performed by the Transportation and Street Department is no longer needed as residential collections will no longer occur in alleyways. (c) Beginning in FY 2020/21, the downtown trolley will no longer be funded from the Tourism Development Fund. (d) Initially budgeted at the division level. At the start of the fiscal year the budget will move to a macro level and then be transferred back to the divisions monthly as expenses occur. 116 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Transportation Fund Five-Year Financial Forecast A d op t ed 2021/22 F or ec a s t 2022/23 F or ec a s t 2023/24 F or ec a s t 2024/25 F or ec a s t 2025/26 B eg i n n i n g F u n d B a l a n c e Operating Contingency Operating Reserve Undesignated, Unreserved Fund Balance T ot a l B eg i n n i n g F u n d B a l a n c e 500,000 2,534,726 20,392,832 23,427,558 500,000 2,752,262 14,622,683 17,874,945 500,000 2,804,250 17,310,495 20,614,745 500,000 2,916,770 19,360,575 22,777,345 500,000 3,031,620 21,082,825 24,614,445 R ev en u es Sales Tax - Transportation (0.20%) Sales Tax - Transportation (0.10%) Highway User Tax Local Transportation Assistance Fund Intergovernmental Miscellaneous Indirect/Direct Cost Allocations Property Rental Reimbursements from Outside Sources 24,561,517 17,167,454 655,000 100,000 4,930 - 25,236,500 17,467,900 655,000 120,000 4,900 - 25,871,700 17,773,600 655,000 150,000 4,900 - 26,649,600 18,084,600 655,000 160,000 4,900 - 27,448,800 18,401,100 655,000 200,000 4,900 - 42,488,901 43,484,300 44,455,200 45,554,100 46,709,800 - - - - - - - - - - T ot a l S ou r c es 42,488,901 43,484,300 44,455,200 45,554,100 46,709,800 E x p en d i t u r es Public Works City Treasurer Community Services Administrative Services Fuel and Maint and Repair Leave Accrual Payments Operating Impacts Savings from Vacant Positions Utilities 25,725,443 66,409 2,019,879 18,800 32,093 (340,000) - 26,475,900 69,700 1,723,700 18,800 32,700 68,500 (346,800) - 27,345,300 71,300 1,758,200 19,700 33,400 293,500 (353,700) - 28,304,600 72,900 1,802,200 20,700 34,200 444,100 (362,500) - 29,576,000 74,600 1,847,300 21,800 35,100 630,900 (371,600) - 27,522,624 28,042,500 29,167,700 30,316,200 31,814,100 27,522,624 28,042,500 29,167,700 30,316,200 31,814,100 20,280,758 238,132 12,618,300 83,700 12,935,900 189,000 13,324,800 76,000 13,724,500 39,900 20,518,890 12,702,000 13,124,900 13,400,800 13,764,400 T ot a l U s es 48,041,514 40,744,500 42,292,600 43,717,000 45,578,500 Sources Over/(Under) Uses (5 , 5 5 2 , 6 1 3 ) 2,739,800 2,162,600 1,837,100 1,131,300 E n d i n g Fu n d B a l a n c e Operating Contingency Operating Reserve Undesignated, Unreserved Fund Balance T ot a l E n d i n g F u n d B a l a n c e 500,000 2,752,262 14,622,683 17,874,945 500,000 2,804,250 17,310,495 20,614,745 500,000 2,916,770 19,360,575 22,777,345 500,000 3,031,620 21,082,825 24,614,445 500,000 3,181,410 22,064,335 25,745,745 Subtotal T r a n s f er s I n CIP Operating Subtotal Subtotal TOTAL OPERATING BUDGET Transfers Out CIP CIP 0.1% Sales Tax CIP Technology Subtotal City of Scottsdale FY 2021/22 Adopted Budget - Volume One 117 Table of Contents BUDGET BY FUND | Transportation Fund 8VERWTSVXEXMSR*YRH7SYVGIW 8VERWTSVXEXMSR*YRHWSYVGIWJSV*=IUYEPQMPPMSR[LMGLMWEMRGVIEWISJQMPPMSRJVSQXLI*=EHSTXIH FYHKIXTVMQEVMP]VIPEXIHXSXLITSWMXMZIWMKRWSJIGSRSQMGVIGSZIV]JVSQXLI'3:-(TERHIQMGVIJPIGXIH7EPIW8E\ 8VERWTSVXEXMSR  VIZIRYI8LIWEQIQIXLSHSPSK]JSVHIZIPSTMRKXLI7EPIW8E\FYHKIXIHMRXLI+IRIVEP*YRHMWEPWSYWIHJSV XLI8VERWTSVXEXMSR*YRH 7EPIW8E\8VERWTSVXEXMSR  ) *=XS*= MRQMPPMSRW 7EPIW8E\8VERWTSVXEXMSR  VITVIWIRXWXLITIVGIRX SJXLIGMX]’WWEPIWXE\HIHMGEXIHWSPIP]XSXVERWTSVXEXMSR 4PIEWIRSXIXLEX[LMPIXLIVEXIMWXLIWEQIJSVXLI TVERWTSVXEXMSRERHPVIWIVZEXMSRSEPIW TE\XLIVIMWE HMJJIVIRGIFIX[IIRXLIVIZIRYIEQSYRXW[LMGLMWEXXVMFYXEFPI XSHMJJIVIRGIWMRXLIXE\MRKTVSZMWMSRWJSVIEGLSJXLI VIZIRYIW8LIEHSTXIH*=FYHKIXSJQMPPMSR VITVIWIRXWERMRGVIEWISJQMPPMSRSVTIVGIRXSZIV XLI*=EHSTXIHFYHKIXHYIXSXLITSWMXMZIWMKRWSJ IGSRSQMGVIGSZIV]JVSQXLI'3:-(TERHIQMG8LI JSPPS[MRKXEFPIMWEJMZI]IEVJSVIGEWXF]FYWMRIWWGEXIKSV]JSV XLIXVERWTSVXEXMSRWEPIWXE\ 118 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents 7EPIW8E\8VERWTSVXEXMSR  BUDGET BY FUND | Transportation Fund *=XS*= MRQMPPMSRW 7EPIW8E\8VERWTSVXEXMSR  VITVIWIRXWXLITIVGIRX SJXLIGMX]’WWEPIWXE\HIHMGEXIHWSPIP]XSXLI%VXIVMEP0MJI']GPI 4VSKVEQXVERWTSVXEXMSRGETMXEPTVSNIGXW7XEVXMRKMR3GXSFIV VIZIRYIFIKERFIMRKVIGSVHIHHMVIGXP][MXLMRXLI'-4 8VERWTSVXEXMSR7EPIW8E\ *YRHVEXLIVXLERFIMRK VIGSVHIHMRXLI3TIVEXMRK8VERWTSVXEXMSR7EPIW8E\ ERH XLIRXVERWJIVVIHXS'-48LIJSPPS[MRKXEFPIMWEJMZI]IEV JSVIGEWXF]FYWMRIWWGEXIKSV]JSVXLIXVERWTSVXEXMSRWEPIWXE\ City of Scottsdale FY 2021/22 Adopted Budget - Volume One 119 Table of Contents ,MKL[E]9WIV8E\ BUDGET BY FUND | Transportation Fund *=XS*= MRQMPPMSRW ,MKL[E]9WIV8E\EPWSORS[REWXLIKEWXE\SVXLI,MKL[E] 9WIV6IZIRYI*YRH ,96* MWHMWXVMFYXIHF]XLI7XEXISJ %VM^SRE8LIs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for XLMWTVSKVEQGSQIWJVSQPSXXIV]TVSGIIHWERHMXMW HMWXVMFYXIHXSGMXMIWERHXS[RWXLVSYKLERERRYEPETTPMGEXMSR TVSGIWW8LIEQSYRXWEZEMPEFPIXSGMXMIWERHXS[RWEVI GETTIHFEWIHSRTSTYPEXMSR8LI*=FYHKIXJSVXLMW VIZIRYIMWQMPPMSR[LMGLVITVIWIRXWXLIIRXMVI EPPSGEXMSREZEMPEFPIXSXLIGMX] -RXIVKSZIVRQIRXEP *=XS*= MRQMPPMSRW -RXIVKSZIVRQIRXEPVITVIWIRXWXLIGMX]’WEPPSGEXMSRSJXLILEPJ GIRXWEPIWXE\JSVXVERWTSVXEXMSRMQTVSZIQIRXWETTVSZIHMR 4VSTSWMXMSRF]1EVMGSTE'SYRX]ZSXIVWMR2SZIQFIV 8LMWVIZIRYIXLVSYKLXLI8VERWTSVXEXMSR*YRH,JYRHW XLI%QIVMGER W[MXL(MWEFMPMXMIW%GX %(% 'EF'SRRIGXMSR 6MHIWTVSKVEQ[LMGLEHHVIWWIWXLIXVERWTSVXEXMSRRIIHWSJ TISTPI[MXLHMWEFMPMXMIW[MXLMRXLIGMX]8LI*=FYHKIX MWQMPPMSR[LMGLMWWPMKLXP]PIWWXLERXLI*= EHSTXIHFYHKIXERHMWVIPEXIHXSEVIHYGXMSRMRTEVXMGMTEXMSRMR XLITEWXJI[]IEVWXLEXLEWWXEFMPM^IH 120 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents 1MWGIPPERISYW BUDGET BY FUND | Transportation Fund *=XS*= MRQMPPMSRW Miscellaneous includes various revenues the city receives in the Transportation Fund during any given year that are not attributable to one of the specific revenue categories previously noted. The FY 2021/22 budget of $4,930 represents a slight decrease from the FY 2020/21 adopted budget and is due to the reimbursement from the Valley Metro Regional Public Transportation Authority (RPTA) and City of Phoenix which is expected to be significantly less for the foreseeable future when compared to prior fiscal years. -RHMVIGX(MVIGX'SWX%PPSGEXMSRW *=XS*= MRQMPPMSRW Indirect/Direct Cost Allocations represents direct charges to the Solid Waste Fund to cover the costs associated with alley maintenance performed by the Transportation and Street Operations Department for the benefit of Solid Waste operations. Beginning in FY 2021/22, the Citywide Direct Cost Allocation in the Transportation Fund will be eliminated. Alley Maintenance performed by the Transportation and Streets Department is no longer needed by Solid Waste Management as residential collections will no longer occur in the alleyways. 4VSTIVX]6IRXEP *=XS*= Property Rental represents one-time revenue received from RTW Management for one-time building use at the South Corporation Yard. The adopted FY 2021/22 budget for Property Rental is $0.0 million as rent revenue is uncommon. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 121 Table of Contents 6IMQFYVWIQIRXWJVSQ3YXWMHI7SYVGIW BUDGET BY FUND | Transportation Fund *=XS*= 6IMQFYVWIQIRXWJVSQ3YXWMHI7IVZMGIWVITVIWIRXER MRWYVERGIVIGSZIV]JSVTVSTIVX]HEQEKIEXXLI2SVXL 'SVTSVEXMSR=EVH8LIEHSTXIH*=FYHKIXJSV 6IMQFYVWIQIRXWJVSQ3YXWMHI7IVZMGIWMWQMPPMSREWXLMW VIZIRYIWSYVGIMWYRGSQQSR 8VERWJIVW-R 8VERWJIVW-RMWXLIEYXLSVM^IHQSZIQIRXSJGEWLSVSXLIVVIWSYVGIWJVSQSXLIVJYRHWERHSVGETMXEPTVSNIGXW8LIXSXEPEQSYRXSJ 8VERWJIVW-RJSV*=MWQMPPMSR1SVIWTIGMJMGMRJSVQEXMSRMWHIXEMPIHFIPS[ '-4 *=XS*= MRQMPPMSRW *SV*='MX]'SYRGMPEYXLSVM^IHETVERWJIVIR totaling QMPPMSRVIPEXIHXSXLI'VSWWVSEHW)EWX(IZIPSTQIRX EKVIIQIRXJSVEVSEH[E]WIKQIRX8LIWIJYRHWEVIXSFI YWIHXS[EVHWXLIJYXYVIVIMQFYVWIQIRXSJTYFPMG MRJVEWXVYGXYVIGSWXW *SV*='MX]'SYRGMPEYXLSVM^IH ETVERWJIVIRtotaling QMPPMSRXSVIMQFYVWIXLI 8VERWTSVXEXMSR*YRHJSVMXWGSRXVMFYXMSRXSXLI(VMRO[EXIV &VMHKI7XVYGXYVEP6ITEMVWGETMXEPTVSNIGX8LI1EVMGSTE %WWSGMEXMSRSJ+SZIVRQIRXW 1%+ VIMQFYVWIHXLIGETMXEP TVSNIGX[MXL4VSTSWMXMSRJYRHMRKWSXLIGSRXVMFYXMSRJVSQ XLI8VERWTSVXEXMSR*YRHwasRSPSRKIVRIIHIH 122 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents 3TIVEXMRK BUDGET BY FUND | Transportation Fund *=XS*= MRQMPPMSRW &IKMRRMRKMR*=XLIHS[RXS[RXVSPPI][MPPRSPSRKIV FIJYRHIHJVSQXLI8SYVMWQ(IZIPSTQIRX*YRHEWMRTVIZMSYW ]IEVW)\TIRWIWJSVXLMWWIVZMGI[MPPIRXMVIP]FIEFWSVFIHF] XLI8VERWTSVXEXMSR*YRH 8VERWTSVXEXMSR*YRH9WIW 8LI8VERWTSVXEXMSR*YRHYWIWEVITVIWIRXIHF]HMZMWMSRTPYWEHHMXMSREPRSRHMZMWMSREPSTIVEXMRKGEXIKSVMIW 4YFPMG;SVOW *=XS*= MRQMPPMSRW 8he expenditures for Public Works include alley maintenance, streets cleaning, lighting maintenance, and traffic signal maintenance. The adopted FY 2021/22 Public Works budget of $25.7 million is an increase of $1.8 million from the FY 2020/21 adopted budget of $23.9 million mainly due to the hiring of street maintenance staff, the purchase of equipment related to the newly hired positions, and street light maintenance material cost increases. Additional increases are due to higher utilities, landfill disposal costs, and custodial contracts. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 123 Table of Contents 'MX]8VIEWYVIV BUDGET BY FUND | Transportation Fund *=XS*= 8LMWFYHKIXMWYWIHXSTEVXMEPP]JYRHXLI7V&YHKIX%REP]WX TSWMXMSR[MXLMRXLI'MX]8VIEWYVIV(MZMWMSR8LITSWMXMSRMW TVMQEVMP]HIHMGEXIHXSWYTTSVXMRKXLIGSQTPI\STIVEXMRKERH GETMXEPJMRERGMEPRIIHW[MXLMRXLI8VERWTSVXEXMSR*YRH8LI*= EHSTXIHFYHKIXMW 'SQQYRMX]7IVZMGIW *=XS*= MRQMPPMSRW 8LMWFYHKIXMWYWIHJSVXLIGSRXVEGXIHPERHWGETMRKSJQIHMERW and right-of-ways. The FY 2021/22 adopted budget of $2.0 QMPPMSRMWVIPEXMZIP]JPEX[LIRGSQTEVIHXSXLI*= EHSTXIHFYHKIX %HQMRMWXVEXMZI7IVZMGIW *=XS*= 8LMWFYHKIXMWYWIHJSVWSJX[EVIsupportedF]XLI 8VERWTSVXEXMSR*YRH[LMGLMWEHQMRMWXIVIHF]XLI-RJSVQEXMSR 8IGLRSPSK] -8 DITEVXQIRX8LI*=EHSTXIHFYHKIX MW 124 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Transportation Fund 2SR(MZMWMSREP9WIW Non-Divisional Uses are items budgeted in citywide macro level holding accounts. As expenditures occur in the applicable divisions, budget transfers are completed to move the needed budget from the macro level holding accounts to the respective divisions. Therefore, the FY 2020/21 year-end forecast and prior years’ budget and actuals that are displayed in the graphs are for comparison purposes only as the expenditures are actually recorded and reported as part of the applicable division’s uses. Beginning in FY2020/21 due to an administrative change, most non-divisional uses are initially placed into the divisions instead of at a macro level. Then moving the budget to a macro level holding account at the beginning of the fiscal year and completing budget transfers to move the needed budget back to the applicable divisions as expenditures occur. The administrative change is in an effort to have more meaningful year-over-year comparisons going forward. *YIPERH1EMRXERH6ITEMV *=XS*= MRQMPPMSRW &IKMRRMRKMR*=*YIPERH1EMRXIRERGIERH6ITEMVMW FYHKIXIHEXXLIHMZMWMSRPIZIPERHXLIREXXLIFIKMRRMRKSJXLI JMWGEP]IEVMWQSZIHXSEQEGVSEGGSYRX&YHKIXMRKSRE QEGVSPIZIPMWEXSSPYWIHF]XLIFYHKIXHITEVXQIRXXSQSVI EGGYVEXIP]XVEGOLS[I\TIRWIWEVISGGYVVMRKF]IEGLHMZMWMSR *YIPERH1EMRXIRERGIERH6ITEMVMRGPYHIWI\TIRWIWVIPEXIHXS ZILMGPIERHIUYMTQIRXVITEMVWERHJYIPYWEKI8LIEHSTXIH*= *YIPERH1EMRXIRERGIERH6ITEMVMWFYHKIXIHEX QMPPMSREXXLIHMZMWMSRPIZIP 0IEZI%GGVYEP4E]QIRXW *=XS*= 8LIWITE]QIRXWMRGPYHIEGGYQYPEXIHQIHMGEPERHSVZEGEXMSR PIEZITEMHSYXEXXLIXMQISJVIXMVIQIRXSVWITEVEXMSRJVSQXLI GMX]*=PIEZIEGGVYEPTE]QIRXWFYHKIXMW [LMGLMRGPYHIW1FYHKIXIHJSVQIHMGEPPIEZIEGGVYEP TE]SYXWERHFYHKIXIHJSVZEGEXMSRPIEZIEGGVYEP TE]SYXW8LI*=]IEVIRHJSVIGEWXERH*= *=EGXYEPWHMWTPE]IHEVIVIGSVHIHERHVITSVXIHEW TEVXSJXLIHMZMWMSR WI\TIRHMXYVIW City of Scottsdale FY 2021/22 Adopted Budget - Volume One 125 Table of Contents 3TIVEXMRK-QTEGXW BUDGET BY FUND | Transportation Fund *=XS*= MRQMPPMSRW Operating Impacts are additional costs associated with future Capital Improvement Plan (CIP) projects that impact the operating budget such as positions, facilities maintenance, utilities, and annual software maintenance. FY 2022/23 and FY 2023/24 are forecasted at $0.4 million based on the current approved CIP projects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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Transportation Fund 8VERWJIVW3YX 8VERWJIVW3YXEVIXLIEYXLSVM^IHQSZIQIRXSJGEWLXSSXLIVJYRHWERHSVGETMXEPTVSNIGXW '-4 *=XS*= MRQMPPMSRW 8LI*=FYHKIXMRGPYHIWEQMPPMSRXVERWJIVSJXLI 7EPIW8E\8VERWTSVXEXMSR  VIZIRYI[LMGLMW TIVGIRXSJXLIVIZIRYIGSPPIGXIHTIV*MRERGMEP4SPMG]2SXS XLI'ETMXEP-QTVSZIQIRX4PER '-4  '-4 7EPIW8E\ *=XS*= MRQMPPMSRW The Sales Tax - Transportation (0.10%) includes 100 percent of the revenue collected per Financial Policy No. 26A, which was previously transferred to the Capital Improvement Plan (CIP). Starting in October 2019, revenue is now recorded directly in the CIP. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 127 Table of Contents '-48IGLRSPSK] BUDGET BY FUND | Transportation Fund *=XS*= CIP Technology is the authorized transfer to CIP to fund technology related capital projects. The FY 2021/22 adopted budget is $238,132. The large budgeted amount represents the Transportation Fund's proportionate share of funding for the Enterprise Resource Planning (ERP) System implementation project. 8VERWTSVXEXMSR*YRH)RHMRK&EPERGI *YRHFEPERGIGSRXMRKIRG]VIWIVZIWTVSXIGXXLIGMX]’WJMRERGMEPGSRHMXMSRERHTVSZMHIJSVYRI\TIGXIHIGSRSQMGGLEPPIRKIW8LI WTIGMJMGQEOIYTSJXLIGMX]’W8VERWTSVXEXMSR*YRH)RHMRK&EPERGIMWRSXIHMRXLIJSPPS[MRK 3TIVEXMRK'SRXMRKIRG] *=XS*= MRQMPPMSRW 3TIVEXMRK'SRXMRKIRG]MRGPYHIWQMPPMSRSJFYHKIX EYXLSVM^EXMSRMRXLIIZIRXXLEXYRJSVIWIIRI\TIRWIWSGGYV HYVMRKXLIJMWGEP]IEV'SRXMRKIRG]JYRHWEVIYXMPM^IHSRP]EJXIV EPPFYHKIXSTXMSRWLEZIFIIRGSRWMHIVIHERHVIUYMVI'MX] 'SYRGMPETTVSZEP 128 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents 3TIVEXMRK6IWIVZI BUDGET BY FUND | Transportation Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 129 Table of Contents 130 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Preservation Fund BUDGET BY FUND | Preservation Fund Overview *YRH4YVTSWI 8LI4VIWIVZEXMSR*YRHEGGSYRXWJSVXLITSVXMSRSJXLIGMX]’W7EPIW8E\– 4VIWIVZEXMSR TIVGIRX HIHMGEXIHXSXLITYVGLEWISJ EFSYXEGVIWSJPERH[MXLMRXLI1G(S[IPP7SRSVER4VIWIVZI-RZSXIVWETTVSZIHMRGVIEWMRKXLIGMX]’WWEPIWXE\VEXIF] TIVGIRXJSVXLITYVGLEWISJPERH[MXLMRXLI1G(S[IPP7SRSVER4VIWIVZI-R1E]ZSXIVWETTVSZIHEREHHMXMSREP TIVGIRXMRXLIGMX]’WWEPIWXE\VEXIHIHMGEXIHXSXLI1G(S[IPP7SRSVER4VIWIVZIPERHEGUYMWMXMSR(MJJIVMRKJVSQXLIXE\XLI XE\EPWSEPPS[WJSVXLIGSRWXVYGXMSRSJIWWIRXMEPTVIWIVZIVIPEXIHRIGIWWMXMIWWYGLEWTVSTSWIHXVEMPLIEHW8LI7EPIW8E\ – 4VIWIVZEXMSRSJTIVGIRXMWHYIXSWYRWIXMRERHXLI7EPIW8E\– 4VIWIVZEXMSRSJMWHYIXSWYRWIXMR 6IZIRYIGSPPIGXMSRWERHGSRXVEGXYEPHIFXEWWSGMEXIH[MXLTYVGLEWIHPERHEVIEGGSYRXIHJSVMRXLMWJYRH%8VERWJIV3YXMWQEHIXS XLI(IFX7IVZMGI*YRHERH'ETMXEP-QTVSZIQIRX4PER '-4 XSTE]HIFXWIVZMGITE]QIRXWEWWSGMEXIH[MXLFSRHWMWWYIHJSVPERH TYVGLEWIWERHGETMXEPTVIWIVZITVSNIGXW 4VIWIVZEXMSR*YRH7SYVGIW XS8SXEP  1MPPMSR 4VIWIVZEXMSR*YRH9WIW XS8SXEP 1MPPMSR Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 131 Table of Contents BUDGET BY FUND | Preservation Fund Summary Actual 2019/20 Adopted 2020/21 Forecast 2020/21 Adopted 2021/22 36,650,145 36, 650, 145 43,925,267 43, 925, 267 46,228,317 46, 228, 317 53,154,610 53, 154, 610 24,184,607 18,141,869 1,024,448 21,942,413 16,456,812 745,318 24,845,651 18,634,251 745,318 25,840,380 19,380,285 402,589 43, 350, 924 39, 144, 543 44, 225, 220 45, 623, 254 43, 350, 924 39, 144, 543 44, 225, 220 45, 623, 254 1,038,463 27,599,380 5,134,909 5,750,035 31,867,424 1,414,000 4,360,330 31,524,597 1,414,000 3,579,322 31,527,342 1,420,000 33, 772, 752 39, 031, 459 37, 298, 927 36, 526, 664 Total Uses 33, 772, 752 39, 031, 459 37, 298, 927 36, 526, 664 Sources Over/(Under) Uses 9, 578, 172 113, 084 6, 926, 293 9, 096, 590 Ending Fund Balance Debt Service Liabilities Total Ending Fund Balance 46,228,317 46, 228, 317 44,038,351 44, 038, 351 53,154,610 53, 154, 610 62,251,200 62, 251, 200 Beginning Fund Balance Debt Service Liabilities Total Beginning Fund Balance Revenues Sales Tax - Preservation (0.20%)(a) Sales Tax - Preservation (0.15%) Interest Earnings Subtotal Total Sources Transfers Out CIP Debt Svc GO Bonds Trnsfrs Out-Debt Svc SPA Bonds(b) Subtotal (a) The 1995 voter approved 0.20 percent of the city's sales tax dedicated to the purchase of land within the McDowell Sonoran Preserve will sunset in 2025. (b) The Trnsfrs Out-Debt Svc SPA Bonds is for the repayment of Scottsdale Preserve Authority Bonds with the final payment due in FY 2021/22. 132 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Preservation Fund Five-Year Financial Forecast Adopted 2021/22 Forecast 2022/23 Forecast 2023/24 Forecast 2024/25 Forecast 2025/26 53,154,610 53, 154, 610 62,251,200 62, 251, 200 74,822,100 74, 822, 100 86,872,400 86, 872, 400 96,970,200 96, 970, 200 25,840,380 19,380,285 402,589 26,560,800 19,920,600 242,500 27,241,100 20,430,800 283,600 28,071,800 21,053,800 365,600 2,950,000 21,695,000 381,000 45, 623, 254 46, 723, 900 47, 955, 500 49, 491, 200 25, 026, 000 45, 623, 254 46, 723, 900 47, 955, 500 49, 491, 200 25, 026, 000 3,579,322 31,527,342 1,420,000 713,100 33,439,900 - 550,000 35,355,200 - 543,600 38,849,800 - 1,874,500 24,670,800 - 36, 526, 664 34, 153, 000 35, 905, 200 39, 393, 400 26, 545, 300 Total Uses 36, 526, 664 34, 153, 000 35, 905, 200 39, 393, 400 26, 545, 300 Sources Over/(Under) Uses 9, 096, 590 12, 570, 900 12, 050, 300 10, 097, 800 ( 1, 519, 300) Ending Fund Balance Debt Service Liabilities Total Ending Fund Balance 62,251,200 62, 251, 200 74,822,100 74, 822, 100 86,872,400 86, 872, 400 96,970,200 96, 970, 200 95,450,900 95, 450, 900 Beginning Fund Balance Debt Service Liabilities Total Beginning Fund Balance Revenues Sales Tax - Preservation (0.20%)(a) Sales Tax - Preservation (0.15%) Interest Earnings Subtotal Total Sources Transfers Out CIP Debt Svc GO Bonds Trnsfrs Out-Debt Svc SPA Bonds(b) (a) (b) Subtotal The 1995 voter approved 0.20 percent of the city's sales tax dedicated to the purchase of land within the McDowell Sonoran Preserve will sunset in 2025. The Trnsfrs Out-Debt Svc SPA Bonds is for the repayment of Scottsdale Preserve Authority Bonds with the final payment due in FY 2021/22. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 133 Table of Contents BUDGET BY FUND | Preservation Fund 4VIWIVZEXMSR*YRH7SYVGIW 8LI4VIWIVZEXMSR*YRHWSYVGIWJSV*=EVIFYHKIXIHEXQMPPMSRERMRGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIX8LIWEQIQIXLSHSPSK]JSVHIZIPSTMRKXLIWEPIWXE\JSVIGEWXMRXLI+IRIVEP*YRHMWEPWSYWIHJSVXLI4VIWIVZEXMSR *YRH 7EPIW8E\4VIWIVZEXMSR  *=XS*= MRQMPPMSRW 7EPIW8E\4VIWIVZEXMSR  VITVIWIRXWXLIZSXIV ETTVSZIHTIVGIRXSJXLIGMX]’WWEPIWXE\HIHMGEXIHXSXLI TYVGLEWISJPERH[MXLMRXLI1G(S[IPP7SRSVER4VIWIVZISJ [LMGL[MPPWYRWIXMRXLI]IEV8LI*=EHSTXIH FYHKIXSJQMPPMSRVITVIWIRXWERMRGVIEWISJQMPPMSR SVTIVGIRXJVSQXLI*=EHSTXIHFYHKIX8LI JSPPS[MRKXEFPIMWEJMZI]IEVJSVIGEWXF]FYWMRIWWGEXIKSV]JSV XLITVIWIVZEXMSRWEPIWXE\ 134 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents 7EPIW8E\4VIWIVZEXMSR  BUDGET BY FUND | Preservation Fund *=XS*= MRQMPPMSRW 7EPIW8E\4VIWIVZEXMSR  VITVIWIRXWXLIZSXIV ETTVSZIHTIVGIRXSJXLIGMX]’WWEPIWXE\HIHMGEXIHXSXLI TYVGLEWISJPERH[MXLMRXLI1G(S[IPP7SRSVER4VIWIVZITPYW GSRWXVYGXMSRSJIWWIRXMEPTVIWIVZIVIPEXIHRIGIWWMXMIWWYGLEW TVSTSWIHXVEMPLIEHW8LIWIJYRHWEVIHYIXSWYRWIXMRXLI]IEV 8LI*=EHSTXIHFYHKIXSJQMPPMSR VITVIWIRXWERMRGVIEWISJQMPPMSRSVTIVGIRXSZIVXLI *=EHSTXIHFYHKIX8LIJSPPS[MRKXEFPIMWEJMZI]IEV JSVIGEWXF]FYWMRIWWGEXIKSV]JSVXLITIVGIRX TVIWIVZEXMSRWEPIWXE\ City of Scottsdale FY 2021/22 Adopted Budget - Volume One 135 Table of Contents -RXIVIWX)EVRMRKW BUDGET BY FUND | Preservation Fund *=XS*= MRQMPPMSRW -RXIVIWX)EVRMRKWMWEJYRGXMSRSJXLIVIPEXMSRWLMTFIX[IIRXLI EZEMPEFPIGEWLFEPERGIERHMRXIVIWXVEXI8LIGMX]IEVRW MRXIVIWXSRJYRHWXLVSYKLZEVMSYWMRZIWXQIRXWMREGGSVHERGI [MXL%VM^SRE6IZMWIH7XEXYXIWERH'MX]3VHMRERGI8LIGMX]’W MRZIWXQIRXTSPMG]WXVIWWIWWEJIX]EFSZI]MIPH8LI*= EHSTXIHFYHKIXSJQMPPMSRMWEHIGVIEWISJQMPPMSR JVSQXLI*=EHSTXIHFYHKIXHYIXSXLITVIWYQTXMSR SJMRXIVIWXVEXIWXVIRHMRKPS[IVXLVSYKL*= 8VERWJIVW3YX 8VERWJIVW3YXMWXLIEYXLSVM^IHQSZIQIRXSJGEWLSVSXLIVVIWSYVGIWXSSXLIVJYRHWERHSVGETMXEPTVSNIGXW8VERWJIVW3YXMR*= MWQMPPMSR[LMGLMWEHIGVIEWISJQMPPMSRJVSQXLI*=EHSTXIHFYHKIXERHMWTVSZMHIHMRJYVXLIVHIXEMP FIPS[ '-4 *=XS*= MRQMPPMSRW 8VERWJIVWSYXXSXLI'ETMXEP-QTVSZIQIRX4PER '-4 JSVGETMXEP TVIWIVZITVSNIGXW8LI'-4TVSNIGXWGLIHYPIMWFVSOIRMRXSXVEMP GSRWXVYGXMSRXVEMPLIEHQEMRXIRERGIERHLEFMXEXERHWEJIX] MQTVSZIQIRXW8LI*=EHSTXIHFYHKIXMW QMPPMSREHIGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIX8LIHIGVIEWIMWVIPEXIHXSXLITEGISJ GSRWXVYGXMSRSJTVSNIGXWWYGLEWXLI'IRXVEP%VIE8VEMP 'SRWXVYGXMSR2SVXLERH'IRXVEP%GGIWW'SRXVSPERH 7XEFMPM^EXMSRERHXLI7SYXL%VIE%GGIWW'SRXVSP 136 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents (IFX7ZG+3&SRHW BUDGET BY FUND | Preservation Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 137 Table of Contents BUDGET BY FUND | Preservation Fund Preservation Fund Ending Balance 4VIWIVZEXMSR*YRH)RHMRK&EPERGIMWXLIEGGYQYPEXMSRSJWSYVGIWVIGIMZIHJVSQ4VIWIVZEXMSR7EPIW8E\  ERH ERH MRXIVIWXIEVRMRKW+VS[XLSJXLIJYRHFEPERGISGGYVW[LIRWSYVGIWI\GIIHYWIW (IFX7IVZMGI0MEFMPMXMIW *=XS*= MRQMPPMSRW (IFX7IVZMGI0MEFMPMXMIWEGGSYRXWJSVER]JYRHWVIQEMRMRKEJXIV XLIHIWMKREXMSRSJEPPSXLIVVIWIVZIWYWIW8LI*= EHSTXIHFYHKIX(IFX7IVZMGI0MEFMPMXMIWFEPERGIMW QMPPMSRVITVIWIRXWERMRGVIEWISJQMPPMSRSZIVXLI*= EHSTXIHFYHKIX[LMGLVITVIWIRXWXLIGYQYPEXMZI 4VIWIVZEXMSRWSYVGIWPIWWYWIW8LIWIHIWMKREXIHJYRHW[MPP FIYWIHXSTE]JYXYVIHIFXWIVZMGITE]QIRXW 138 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Tourism Development Fund BUDGET BY FUND | Tourism Development Fund Overview *YRH4YVTSWI 8LI8SYVMWQ(IZIPSTQIRX*YRHMWEWTIGMEPVIZIRYIJYRHGVIEXIHXSEGGSYRXJSV8VERWMIRX3GGYTERG]8E\VIZIRYIW 4VSTIVX]6IRXEPJVSQ*EMVQSRX7GSXXWHEPI4VMRGIWW,SXIPPIEWITE]QIRXWERHSXLIVVIPEXIHQMWGIPPERISYWVIZIRYIW%PP 8SYVMWQ(IZIPSTQIRX*YRHVIZIRYIWQYWXFIYWIHJSVXSYVMWQVIPEXIHEGXMZMXMIW3VHMRERGI2SETTVSZIHF] 7GSXXWHEPI'MX]'SYRGMPMR1EVGLMHIRXMJMIWXLIEYXLSVM^IHI\TIRHMXYVIWXSFIQEHIJVSQXLMWJYRH 8SYVMWQ(IZIPSTQIRX*YRH7SYVGIW XS8SXEP  1MPPMSR 8SYVMWQ(IZIPSTQIRX*YRH9WIW XS8SXEP 1MPPMSR Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 139 Table of Contents Tourism Development Fund BUDGET BY FUND | Tourism Development Fund Summary Actual 2 0 1 9 /2 0 Adopted 2 0 2 0 /2 1 Forecast 2 0 2 0 /2 1 Adopted 2 0 2 1 /2 2 2,500,000 861,589 1,706,578 1,224,510 6,292,677 2,500,000 861,589 1,706,578 1,330,482 6,398,649 2,500,000 796,672 1,849,895 979,808 6,126,375 2,193,495 963,340 2,488,932 755,417 6,401,184 Subtotal 18,792,501 2,048,445 1,531 20, 842, 477 15,020,374 1,500,000 16, 520, 374 17,379,301 1,500,000 12,019 18, 891, 320 21,637,230 1,602,000 10,000 23, 249, 230 Subtotal 412 412 - 34,053 34, 053 - 20,842,889 16,520,374 18,925,373 23,249,230 750,000 9,507,203 1,548,008 1,113,422 716,617 13, 635, 250 550,000 7,510,187 775,000 751,750 442,000 10, 028, 937 550,000 8,603,068 925,100 826,650 412,133 11, 316, 951 750,000 10,818,615 1,947,366 1,535,000 748,746 15, 799, 727 13,635,250 10,028,937 11,316,951 15,799,727 4,578,951 2,794,990 7, 373, 941 5,271,616 1,918,816 7, 190, 432 5,271,616 2,061,997 7, 333, 613 5,281,530 2,713,211 7, 994, 741 Total Uses 21,009,191 17,219,369 18,650,564 23,794,468 Sources Over/(Under) Uses (1 6 6 , 3 0 2 ) (6 9 8 , 9 9 5 ) 274,809 (5 4 5 , 2 3 8 ) Ending Fund Balance Operating Contingency Reserve - Administration and Research Reserve - Events and Event Development Undesignated, Unreserved Fund Balance Total Ending Fund Balance 2,500,000 796,672 1,849,895 979,808 6,126,375 2,500,000 1,066,552 2,133,102 5,699,654 2,193,495 963,340 2,488,932 755,417 6,401,184 2,500,000 963,340 2,392,606 5,855,946 Beginning Fund Balance Operating Contingency Reserve - Administration and Research Reserve - Events and Event Development Undesignated, Unreserved Fund Balance Total Beginning Fund Balance Revenues Transient Occupancy Tax Property Rental Miscellaneous Transfers In CIP Total Sources Expenditures Canal Convergence Events Destination Marketing Contract Event Retention and Development Other Commitments Administration and Research Subtotal TOTAL OPERATING BUDGET Transfers Out Debt Svc MPC Bonds Operating Subtotal 140 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Tourism Development Fund BUDGET BY FUND | Tourism Development Fund Five-Year Financial Forecast Adopted 2 0 2 1 /2 2 Forecast 2 0 2 2 /2 3 Forecast 2 0 2 3 /2 4 Forecast 2 0 2 4 /2 5 Forecast 2 0 2 5 /2 6 2,193,495 963,340 2,488,932 755,417 6,401,184 2,500,000 963,340 2,392,606 5,855,946 2,500,000 963,264 2,392,560 303,022 6,158,846 2,500,000 963,312 2,392,518 724,716 6,580,546 2,500,000 963,268 2,392,519 1,742,659 7,598,446 Subtotal 21,637,230 1,602,000 10,000 23, 249, 230 22,870,600 1,618,000 10,000 24, 498, 600 22,756,200 1,634,200 10,000 24, 400, 400 23,438,900 1,650,500 10,000 25, 099, 400 24,142,100 1,667,000 10,000 25, 819, 100 Subtotal - - - - - 23,249,230 24,498,600 24,400,400 25,099,400 25,819,100 750,000 10,818,615 1,947,366 1,535,000 748,746 15, 799, 727 750,000 11,435,300 2,058,400 1,175,000 797,800 16, 216, 500 750,000 11,378,100 2,048,100 1,175,000 792,800 16, 144, 000 750,000 11,719,400 2,109,500 775,000 819,700 16, 173, 600 750,000 12,071,000 2,172,800 775,000 847,400 16, 616, 200 15,799,727 16,216,500 16,144,000 16,173,600 16,616,200 5,281,530 2,713,211 7, 994, 741 5,117,600 2,861,600 7, 979, 200 4,986,600 2,848,100 7, 834, 700 4,977,300 2,930,600 7, 907, 900 4,987,900 3,015,300 8, 003, 200 Total Uses 23,794,468 24,195,700 23,978,700 24,081,500 24,619,400 Sources Over/(Under) Uses (5 4 5 , 2 3 8 ) 302,900 421,700 1,017,900 1,199,700 Ending Fund Balance Operating Contingency Reserve - Administration and Research Reserve - Events and Event Development Undesignated, Unreserved Fund Balance Total Ending Fund Balance 2,500,000 963,340 2,392,606 5,855,946 2,500,000 963,264 2,392,560 303,022 6,158,846 2,500,000 963,312 2,392,518 724,716 6,580,546 2,500,000 963,268 2,392,519 1,742,659 7,598,446 2,500,000 963,252 2,380,300 2,954,594 8,798,146 Beginning Fund Balance Operating Contingency Reserve - Administration and Research Reserve - Events and Event Development Undesignated, Unreserved Fund Balance Total Beginning Fund Balance Revenues Transient Occupancy Tax Property Rental Miscellaneous Transfers In CIP Total Sources Expenditures Canal Convergence Events Destination Marketing Contract Event Retention and Development Other Commitments Administration and Research Subtotal TOTAL OPERATING BUDGET Transfers Out Debt Svc MPC Bonds Operating Subtotal City of Scottsdale FY 2021/22 Adopted Budget - Volume One 141 Table of Contents BUDGET BY FUND | Tourism Development Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Tourism Development Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 143 Table of Contents BUDGET BY FUND | Tourism Development Fund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tSYVMWQ iRHYWXV]7MRGIXLIRXLIEZEMPEFMPMX]SJZEGGMRIWERHXLIPMJXSJ '3:-(VIPEXIHVIWXVMGXMSRWVIWYPXIHMRERMRGVIEWIMR XSYVMWQEGXMZMX] 144 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Tourism Development Fund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tSYVMWQ iRHYWXV]7MRGIXLIRXLIEZEMPEFMPMX]SJZEGGMRIWERHXLIPMJXSJ '3:-(VIPEXIHVIWXVMGXMSRWVIWYPXIHMRERMRGVIEWIMR XSYVMWQEGXMZMX]3XLIV'SQQMXQIRXWMRGPYHIWQMPPMSRJSV EHZIVXMWMRKERHTVSQSXMSRSJ3PH8S[R Scottsdale QMPPMSRJSVGMX]WTSRWSVIHIZIRXWQMPPMSRSJQEXGLMRK TE]QIRXWJSVXLI1YWIYQSJXLI;IWXESRIXMQIQMPPMSR I\TIRWIJSVEHHMXMSREPQEXGLMRKJYRHWJSVXLI1YWIYQSJXLI ;IWXERHQMPPMSRSJSRIXMQIJYRHMRKJSVGSRXVEGX[SVOIV LSYVWVIPEXIHXSWLSVXXIVQVIRXEPTVSKVEQQEREKIQIRX %HQMRMWXVEXMSRERH6IWIEVGL *=XS*= MRQMPPMSRW *MRERGMEP4SPMG]2S%EPPS[WJSVJSYVTIVGIRXSJXLI 8VERWMIRX3GGYTERG]8E\VIZIRYIWXSFIEPPSGEXIHJSVXSYVMWQ VIPEXIHEHQMRMWXVEXMSRERHVIWIEVGLI\TIRWIW8LI*= EHSTXIHFYHKIXSJQMPPMSRMWQMPPMSRLMKLIV XLERXLI*=EHSTXIHFYHKIX[LMGLVIJPIGXIHXLI ERXMGMTEXIHMQTEGXSJXLI'3:-(TERHIQMGSRXLItSYVMWQ iRHYWXV]7MRGIXLIRXLIEZEMPEFMPMX]SJZEGGMRIWERHXLIPMJXSJ '3:-(VIPEXIHVIWXVMGXMSRWVIWYPXIHMRERMRGVIEWIMR XSYVMWQEGXMZMX] City of Scottsdale FY 2021/22 Adopted Budget - Volume One 145 Table of Contents BUDGET BY FUND | Tourism Development Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Tourism Development Fund 8SYVMWQ(IZIPSTQIRX*YRH)RHMRK&EPERGI *YRHFEPERGITVSXIGXWXLIGMX]’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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 147 Table of Contents 148 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Special Programs Fund Fund Purpose In accordance with the Governmental Accounting Standards Board, this fund is used to account for dedicated funding sources and donations earmarked for specific purposes pursuant to constraints imposed by formal action of the City Council or restricted by an outside source. All revenue not expended in the current fiscal year are carried over to the next fiscal year to continue funding the intended purpose. Special Programs Fund Sources (% to Total) $13.0 Million Special Programs Fund Uses (% to Total) $34.4 Million Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 149 Table of Contents BUDGET BY FUND | Special Programs Fund Summary Actual 2019/20 A d op t e d 2020/21 Forecast 2020/21 A d op t e d 2021/22 Reserve - Community Services (c) Reserve - Mayor and City Council Reserve - Public Safety - Fire Reserve - Public Safety - Police Reserve - Public Works T o t a l B e g i n n i n g F u n d B a l a n ce 1,500,000 7,977,184 3,938,951 1,961,207 5,789 8,828 678,414 341,222 14, 911, 595 1,500,000 8,777,535 4,283,763 2,504,119 5,788 28 3,077,139 317,275 18, 965, 647 1,500,000 9,264,619 4,369,304 4,048,744 3,032 1,524 970,801 343,834 19, 001, 858 11,500,000 14,892,903 9,089,275 3,976,311 6,788,212 3,832 1,724 4,739,512 303,951 39, 795, 720 R e ve n u e s City Court Community and Economic Development (d) Community Services (c) Mayor and City Council Public Safety - Fire Public Safety - Police Public Works 1,987,457 846,317 7,682,210 7,000 4,908 1,440,397 275,406 2,045,580 215,000 8,271,342 28,800 500 597,737 286,917 2,045,580 215,000 7,962,786 28,800 500 5,387,566 286,917 1,601,091 4,511,820 4,968,129 28,800 1,000 1,532,827 261,720 12,243,695 11,445,876 15,927,149 12,905,387 1,016,308 10,000 10,000 132,443 29,638,014 100,000 10,000 1,026,308 10,000 29,770,457 110,000 13, 270, 003 11, 455, 876 45, 697, 606 13, 015, 387 B e g i n n i n g F u n d B a l a n ce Appropriation Contingency (a) AZCares Funding (b) Reserve - City Court Reserve - Community and Economic Development Subtotal T ran sf ers I n CIP Operating (b) Subtotal Total Sources (a) The Appropriation Contingency for the Special Programs Fund is an unfunded contingency that allows for the expenditure of unanticipated revenues from a dedicated funding source and is not included in the beginning or ending fund balance. In FY 2021/22, City Council approved a $10.0 million Affordable Housing Contingency. Any use of this contingency requires City Council's approval. (b) Scottsdale’s allocation of $29.6 million of the AZCares Fund (created as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)), was transferred from the General Fund to the Special Programs Fund in Forecast 2020/21 to ensure governmental accounting standards are being met and the funding is being used for the specific purposes directed by City Council. (c) Activity and history for the Rassner Endowment Distribution are included in the Special Programs Fund. (d) Beginning in FY 2021/22, the Stormwater Fee for Projects was added to the Special Programs Fund to ensure governmental accounting standards are being met. In prior years, the Stormwater Fee for Projects was recorded in General Fund and in CIP. 150 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Special Programs Fund Summary Actual 2019/20 A d op t e d 2020/21 Forecast 2020/21 A d op t e d 2021/22 1,040,773 275,964 2,672,406 9,757 12,212 1,108,010 174,386 1,869,822 3,671,699 3,469,071 28,000 300 1,662,132 363,800 14,285,111 1,892,849 221,830 3,292,987 28,000 300 1,625,828 326,800 14,942,903 2,002,170 3,506,712 4,124,085 28,000 2,500 3,080,056 380,800 5,293,507 11,064,824 21,673,705 28,067,226 5,293,507 11,064,824 21,673,705 28,067,226 3,172,000 615,825 98,408 2,035,696 777,825 355 2,531,859 697,825 355 1,296,579 3,653,600 1,338,578 - 3,886,233 2,813,876 3,230,039 6,288,757 T o t a l Us e s 9, 179, 740 13, 878, 700 24, 903, 744 34, 355, 983 S o u r ce s O v e r / ( Un d e r ) Us e s 4, 090, 263 (2, 422, 824) 20, 793, 862 (21, 340, 596) 1,191,376 9,264,619 4,369,304 4,048,744 3,032 1,524 970,801 343,834 19, 001, 858 1,500,000 8,617,597 837,064 5,228,565 6,588 228 1,612,389 240,392 16, 542, 823 1,394,443 14,892,903 9,089,275 3,976,311 6,788,212 3,832 1,724 4,739,512 303,951 39, 795, 720 11,500,000 7,945,282 721,319 6,891,194 4,632 224 2,707,602 184,871 18, 455, 124 E x p e n di t u r e s AZCares (a) City Court Community and Economic Development Community Services (b) Mayor and City Council Public Safety - Fire Public Safety - Police Public Works Subtotal TOTAL OPERATING BUDGET T r an sf e r s Ou t CIP CIP Stormwater Debt Svc MPC Bonds Operating Subtotal E n d i n g F u n d B a l a n ce Appropriation Contingency (c) AZCares Funding (a) Reserve - City Court Reserve - Community and Economic Development Reserve - Community Services Reserve - Mayor and City Council Reserve - Public Safety - Fire Reserve - Public Safety - Police Reserve - Public Works T o t a l E n d i n g F u n d B a l a n ce (a) Scottsdale’s allocation of $29.6 million of the AZCares Fund (created as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)), was transferred from the General Fund to the Special Programs Fund in Forecast 2020/21 to ensure governmental accounting standards are being met and the funding is being used for the specific purposes directed by City Council. (b) Activity and history for the Rassner Endowment Distribution are included in the Special Programs Fund. (c) The Appropriation Contingency for the Special Programs Fund is an unfunded contingency that allows for the expenditure of unanticipated revenues from a dedicated funding source and is not included in the beginning or ending fund balance. In FY 2021/22, City Council approved a $10.0 million Affordable Housing Contingency. Any use of this contingency requires City Council's approval. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 151 Table of Contents BUDGET BY FUND | Special Programs Fund Five-Year Financial Forecast A d op t e d 2021/22 Forecast 2022/23 Forecast 2023/24 Forecast 2024/25 Forecast 2025/26 Reserve - Community Services (c) Reserve - Mayor and City Council Reserve - Public Safety - Fire Reserve - Public Safety - Police Reserve - Public Works T o t a l B e g i n n i n g F u n d B a l a n ce 11,500,000 14,892,903 9,089,275 3,976,311 6,788,212 3,832 1,724 4,739,512 303,951 39, 795, 720 1,500,000 7,945,282 721,319 6,891,194 4,632 224 2,707,602 184,871 18, 455, 124 1,500,000 7,562,482 563,019 7,307,894 5,432 624 2,040,402 198,271 17, 678, 124 1,500,000 7,198,382 453,719 7,687,594 6,232 1,024 1,604,702 221,471 17, 173, 124 1,500,000 6,855,682 378,519 8,142,394 7,032 1,424 1,884,402 244,671 17, 514, 124 R e ve n u e s City Court Community and Economic Development (d) Community Services (c) Mayor and City Council Public Safety - Fire Public Safety - Police Public Works 1,601,091 4,511,820 4,968,129 28,800 1,000 1,532,827 261,720 1,690,200 4,519,300 4,848,400 28,800 1,000 1,533,500 269,200 1,772,900 4,529,100 5,098,300 28,800 1,000 1,534,000 279,000 1,866,600 4,529,100 5,281,600 28,800 1,000 1,534,600 279,000 1,976,400 4,529,100 5,369,300 28,800 1,000 1,535,300 279,000 12,905,387 12,890,400 13,243,100 13,520,700 13,718,900 100,000 10,000 10,000 10,000 10,000 10,000 110,000 10,000 10,000 10,000 10,000 13, 015, 387 12, 900, 400 13, 253, 100 13, 530, 700 13, 728, 900 B e g i n n i n g F u n d B a l a n ce Appropriation Contingency (a) AZCares Funding (b) Reserve - City Court Reserve - Community and Economic Development Subtotal T ran sf ers I n CIP Operating Subtotal Total Sources (a) The Appropriation Contingency for the Special Programs Fund is an unfunded contingency that allows for the expenditure of unanticipated revenues from a dedicated funding source and is not included in the beginning or ending fund balance. In FY 2021/22, City Council approved a $10.0 million Affordable Housing Contingency. Any use of this contingency requires City Council's approval. (b) Scottsdale’s allocation of $29.6 million of the AZCares Fund (created as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)), was transferred from the General Fund to the Special Programs Fund in Forecast 2020/21 to ensure governmental accounting standards are being met and the funding is being used for the specific purposes directed by City Council. (c) Activity and history for the Rassner Endowment Distribution are included in the Special Programs Fund. (d) Beginning in FY 2021/22, the Stormwater Fee for Projects was added to the Special Programs Fund to ensure governmental accounting standards are being met. In prior years, the Stormwater Fee for Projects was recorded in General Fund and in CIP. 152 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Special Programs Fund Five-Year Financial Forecast A d op t e d 2021/22 Forecast 2022/23 Forecast 2023/24 Forecast 2024/25 Forecast 2025/26 14,942,903 2,002,170 3,506,712 4,124,085 28,000 2,500 3,080,056 380,800 2,073,000 367,500 3,828,100 28,000 600 2,160,700 255,800 2,137,000 328,300 3,958,500 28,000 600 1,949,700 255,800 2,209,300 294,200 4,082,000 28,000 600 1,214,900 255,800 2,285,900 308,900 4,208,100 28,000 600 1,138,700 255,800 28,067,226 8,713,700 8,657,900 8,084,800 8,226,000 28,067,226 8,713,700 8,657,900 8,084,800 8,226,000 1,296,579 3,653,600 1,338,578 - 40,000 3,654,800 1,268,900 - 20,000 3,651,800 1,428,400 - 40,000 3,649,800 1,415,100 - 20,000 3,653,800 1,420,600 - 6,288,757 4,963,700 5,100,200 5,104,900 5,094,400 T o t a l Us e s 34, 355, 983 13, 677, 400 13, 758, 100 13, 189, 700 13, 320, 400 S o u r ce s O v e r / ( Un d e r ) Us e s (21, 340, 596) (777, 000) (505, 000) 341, 000 408, 500 11,500,000 7,945,282 721,319 6,891,194 4,632 224 2,707,602 184,871 18, 455, 124 1,500,000 7,562,482 563,019 7,307,894 5,432 624 2,040,402 198,271 17, 678, 124 1,500,000 7,198,382 453,719 7,687,594 6,232 1,024 1,604,702 221,471 17, 173, 124 1,500,000 6,855,682 378,519 8,142,394 7,032 1,424 1,884,402 244,671 17, 514, 124 1,500,000 6,546,182 288,619 8,549,294 7,832 1,824 2,261,002 267,871 17, 922, 624 E x p e n di t u r e s AZCares (a) City Court Community and Economic Development Community Services (b) Mayor and City Council Public Safety - Fire Public Safety - Police Public Works Subtotal TOTAL OPERATING BUDGET T r an sf e r s Ou t CIP CIP Stormwater Debt Svc MPC Bonds Operating Subtotal E n d i n g F u n d B a l a n ce Appropriation Contingency (c) AZCares Funding (a) Reserve - City Court Reserve - Community and Economic Development Reserve - Community Services Reserve - Mayor and City Council Reserve - Public Safety - Fire Reserve - Public Safety - Police Reserve - Public Works T o t a l E n d i n g F u n d B a l a n ce (a) Scottsdale’s allocation of $29.6 million of the AZCares Fund (created as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)), was transferred from the General Fund to the Special Programs Fund in Forecast 2020/21 to ensure governmental accounting standards are being met and the funding is being used for the specific purposes directed by City Council. (b) Activity and history for the Rassner Endowment Distribution are included in the Special Programs Fund. (c) The Appropriation Contingency for the Special Programs Fund is an unfunded contingency that allows for the expenditure of unanticipated revenues from a dedicated funding source and is not included in the beginning or ending fund balance. In FY 2021/22, City Council approved a $10.0 million Affordable Housing Contingency on 5/18/2021. Any use of this contingency requires City Council's approval. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 153 Table of Contents BUDGET BY FUND | Special Programs Fund 7TIGMEP4VSKVEQW7SYVGIW Sources received in the Special Programs Fund include revenue generated from Fines, Fees, Forfeitures and Permits, Racketeering Influenced Corrupt Organization (RICO), Contributions/Donations, and Other Revenues. The Sources also include Transfers In. The Sources are detailed by divisions in the following sections. 'MX]'SYVX *=XS*= MRQMPPMSRW 'MX]'SYVXVIZIRYISVMKMREXIWJVSQJSYVWSYVGIW'SYVX )RLERGIQIRX*YRH ')* .YHMGMEP'SPPIGXMSRW)RLERGIQIRX *YRH .')* *MPPXLI+ET *8+ ERH.YV]*II(SREXMSRW')*MW IWXEFPMWLIHF]7GSXXWHEPI'MX]3VHMRERGI2SWIGXMSR ERHTVSZMHIWJYRHMRKXSIRLERGIXLIXIGLRSPSKMGEP STIVEXMSREPERHWIGYVMX]JEGMPMXMIWSJXLI'SYVX.')*ERH*8+ [IVIIWXEFPMWLIHF]%VM^SRE6IZMWIH7XEXYXIW %67  % & ERH7IREXI&MPP 7& [LMGLTVSZMHIJYRHMRKJSV QEMRXEMRMRKERHIRLERGMRKXLI'SYVX’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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Special Programs Fund 'SQQYRMX]7IVZMGIW *=XS*= MRQMPPMSRW Community Services special programs revenue includes donations, contributions, lease agreements, revenue from the Bureau of Reclamation, gross sales from the McDowell Mountain Golf Course and user fees and charges that are restricted to specific uses per the revenue source. Restricted uses of special revenue include those for library and human services, after-school and summer programs, enhancing parks, youth sports field and pool sponsored team allocations, Silverado Golf Surcharge, Charros/San Francisco (SF) Giants contributions to capital improvements to the Scottsdale Stadium, providing memorials, special events, funding community support agencies (Scottsdale Cares), and operating the McCormick-Stillman Railroad Park. The estimated Community Services special program revenue for FY 2021/22 is $5.0 million, which is $3.3 million lower than the FY 2020/21 adopted budget due to the removal of a onetime reimbursement from the Tournament Players Club for a Midway Grill Improvements capital project and a FY 2020/21 budget forecast for contributions received from the SF Giants per agreement to maintain the stadium. The decrease would have been greater but is being offset by increased revenues expected from the McCormick-Stillman Railroad Park due to the lifting of COVID-19 related restrictions. 1E]SVERH'MX]'SYRGMP *=XS*= 1E]SVERH'MX]'SYRGMPVIGIMZIGSRXVMFYXMSRWERHHSREXMSRWXS JYRHXLI]IEVP]1E]SV W'SRWXMXYXMSRIZIRX%GSRWIVZEXMZI FYHKIXJSVXLMWJYRH[EWIWXEFPMWLIHMR*=FEWIHSR LMWXSVMGEPGSPPIGXMSRW8LI*=IWXMQEXIHWTIGMEP VIZIRYISJMWJPEXGSQTEVIHXSXLI*= EHSTXIHFYHKIX[LMGLMRGPYHIWEHHMXMSREPJYRHMRKXSWYTTSVX XLIERRYEP1E]SVERH'SYRGMP&VIEOJEWXIZIRX City of Scottsdale FY 2021/22 Adopted Budget - Volume One 155 Table of Contents BUDGET BY FUND | Special Programs Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Special Programs Fund 4YFPMG;SVOW *=XS*= MRQMPPMSRW The city receives annual payments from Southwest Gas for a Gas Franchise Agreement allowing for the use of and maintenance for city right-of-ways. The FY 2021/22 estimated revenue of $0.3 million is flat compared to the FY 2020/21 adopted budget. 8VERWJIVW-R 8VERWJIVW-RMWXLIEYXLSVM^IHQSZIQIRXSJGEWLSVSXLIVVIWSYVGIWJVSQSXLIVJYRHWERHSVGETMXEPTVSNIGXW8LI*= EHSTXIHFYHKIXMRGPYHIWMR8VERWJIVW-R '-4 *=XS*= MRQMPPMSRW Transfers In to the Special Programs Fund Operating for FY 2021/22 is $100,000 transferred from CIP Stormwater In-lieu fees which is designated for a floodplain management study. The FY 2019/20 actuals represent a decision to move $0.7 million of San Francisco (SF) Giants ticket sales revenue from the CIP to the Stadium Facility Fund within the Special Programs Fund as well as savings in the amount of $0.3 million from the City Court Customer Service Counters and Lobby Remodel capital project and being returned to the Court Enhancement Fund within the Special Programs Fund. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 157 Table of Contents BUDGET BY FUND | Special Programs Fund 3TIVEXMRK *=XS*= MRQMPPMSRW Operating Transfers In to the Special Programs Fund for FY 2021/22 includes a City Council authorized $10,000 used to assist in the preservation and upkeep of properties on Scottsdale's Historic Register. In addition in FY 2020/21, Operating included a budget transfer in the amount of $29.6 million in AZCares funding from the General Fund to the Special Programs Fund to ensure governmental accounting standards are being met, which was approved by City Council approved Resolution No. 11883. 7TIGMEP4VSKVEQW*YRH9WIW 8LI7TIGMEP4VSKVEQW*YRHYWIWEVIHIXEMPIHEWJSPPS[IHF]HMZMWMSR and8VERWJIVW3YX %>'EVIW *=XS*= MRQMPPMSRW -RPEXI*=XLIGMX]VIGIMZIHER%>'EVIW+VERXSJ QMPPMSR[LMGLGSYPHSRP]FIYWIHXSGSZIV4YFPMG7EJIX] 4IVWSRRIP7IVZMGIWI\TIRWIWMRGYVVIHJVSQ1EVGL XLVSYKL.YRIERHJSVIGEWXIHXLVSYKL(IGIQFIV 8LITYFPMGWEJIX] WVIPEXIHFYHKIXERHI\TIRWIW[LMGL WTERSZIV*=ERH*=[IVIQSZIHXSXLI +VERX*YRHWJVSQXLI+IRIVEP*YRH1SZMRKXLIFYHKIXERH I\TIRWIWVIWYPXIHMRERIUYEPEQSYRXSJJYRHMRKEZEMPEFPI [MXLMRXLI+IRIVEP*YRH8LIRI[P]EZEMPEFPIEQSYRXSJ QMPPMSRMRXLI+IRIVEP*YRH[EWXLIRXVERWJIVVIHXSthe STIGMEPPVSKVEQWFYRHXSFIYWIHXSWYTTPIQIRXI\MWXMRK TVSKVEQWGVIEXIRI[TVSKVEQWI\IGYXIGSRXVEGXWERH I\TIRHJYRHWEWRIGIWWEV]XSQMXMKEXIXLIIJJIGXWSJERHEMH MRVIGSZIV]JVSQXLI'3:-(TERHIQMG8LIGEVV]SZIVSJ JYRHWJSV*=MWQMPPMSR 158 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Special Programs Fund 'MX]'SYVX *=XS*= MRQMPPMSRW City Court adopted budget for FY 2021/22 is $2.0 million and includes the following specific uses: 1) enhancements to the Court’s technological, operational, and security facilities, as allowed under the Court Enhancement Fund (CEF) established by Scottsdale City Ordinance No. 2570 section 9-7.2; 2) additional expenditures, as allowed by Judicial Collections Enhancement Fund (JCEF) and Fill-the-Gap (FTG) established by Arizona Revised Statutes (ARS) 12-116 (A) (B) and Senate Bill (SB) 1013, for the maintenance and enhancement of the Court’s ability to collect and manage monies; and 3) services to enhance the experience of citizens serving on juries using jury fee donations. The FY 2021/22 adopted budget is an increase of $0.1 million when compared to the FY 2020/21 adopted budget due to the pay for performance and market adjustments to eligible employees. 'SQQYRMX]ERH)GSRSQMG(IZIPSTQIRX *=XS*= MRQMPPMSRW The expenditures related to Community and Economic Development are used to further downtown cultural and community arts events, preserve and maintain properties on Scottsdale's Historic Register, and support Art in Public Places. The adopted budget for FY 2021/22 is $3.5 million, which is $0.2 million lower than the FY 2020/21 adopted budget. The decrease is mainly related to available cash in the Downtown Cultural Trust and Airpark Cultural Trust for the acquisition and installation of public art. FY 2018/19 adopted budget assumed the use of the Downtown Cultural Trust available cash that did not happen. 'SQQYRMX]7IVZMGIW *=XS*= MRQMPPMSRW Community Services expenditures include youth sports field and pool maintenance, capital outlays improvements, Silverado Golf Course maintenance/improvements, special events, providing memorials, funding community support agencies (Scottsdale Cares), afterschool programs, summer programs, library programs and operations, and maintaining the facilities at the McCormick-Stillman Railroad Park and San Francisco (SF) Giants Stadium. The FY 2021/22 budget is $4.1 million, which is $0.7 million greater than the FY 2020/21 adopted budget. The increase is related to an increase in salaries for staff at McCormick-Stillman Railroad Park and the one-time purchase of seat replacements at the stadium. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 159 Table of Contents BUDGET BY FUND | Special Programs Fund 1E]SVERH'MX]'SYRGMP *=XS*= Mayor and City Council expenditures are for the annual Mayor's Constitution event. The FY 2021/22 adopted budget of $28,000 is flat compared to the FY 2020/21 adopted budget, which includes additional funding to support the annual Mayor and Council Breakfast event. 4YFPMG7EJIX]*MVI *=XS*= Public Safety - Fire expenditures support public education, equipment acquisition and fire station enhancements. The FY 2021/22 adopted budget is $2,500, which is an increase of $2,200 when compared to the FY 2020/21 adopted budget, to allow for budget authority to expend a greater amount of donation funds received. 4YFPMG7EJIX]4SPMGI *=XS*= MRQMPPMSRW 4YFPMG7EJIX]4SPMGII\TIRHMXYVIWMRGPYHI PE[IRJSVGIQIRX IRLERGIQIRXWYWMRK6EGOIXIIV-RJPYIRGIHERH'SVVYTX 3VKERM^EXMSRW 6-'3 JYRHW XLITVSZMWMSRSJ'VMQI 0EFSVEXSV]7IVZMGIW ZIXIVMREV]GSWXWWTIGMJMGXVEMRMRK IHYGEXMSRERHWYTTPMIWJSVXLI1SYRXIH9RMXERH'ERMRI9RMX  7GLSSP6IWSYVGI7IVZMGIWMRGPYHMRKXLI'EHIX4VSKVEQ *EQMP]%HZSGEG]'IRXIV EHQMRMWXVEXMZIGSWXWJSVXLI(E] Tow Program that enforces ARS §28-3511; 7) equipment that IRLERGIWSJJMGIV’WWEJIX][LMPISRHYX]ERH GSWXVIGSZIV] JSVEHQMRMWXVEXMSRERHIRJSVGIQIRXSJ'MX]3VHMRERGI2S  7IGSRH,ERHERH4E[R8VERWEGXMSR*IIW 8LI*= EHSTXIHFYHKIXMWQMPPMSR[LMGLMW4QMPPMSR LMKLIVXLERXLI*=EHSTXIHFYHKIXHYIXSHMZMWMSR RIIHWEPMKRMRK[MXL6-'3WTIRHMRKGVMXIVME 160 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Special Programs Fund 4YFPMG;SVOW *=XS*= MRQMPPMSRW 4YFPMG;SVOWI\TIRHMXYVIWEVIYWIHXSQEMRXEMRZEVMSYWVMKLX SJ[E]WSRFILEPJSJ7SYXL[IWX+EWZMEE*VERGLMWI %KVIIQIRX8LII\TIRHMXYVIWEVIElsoYWIHXS[EVHWXLI 0SPSQE7GLSSPPIEWIEKVIIQIRXJSVQEMRXIRERGI8LI*= FYHKIXMWQMPPMSR[LMGLMWJPEXJVSQXLI*= EHSTXIHFYHKIX 8VERWJIVW3YX 8VERWJIVW3YXEVIXLIEYXLSVM^IHQSZIQIRXSJGEWLXSSXLIVJYRHWERHSVGETMXEPTVSNIGXW8LI*=EHSTXIHFYHKIXMRGPYHIW QMPPMSRMR8VERWJIVW3YX '-4 *=XS*= MRQMPPMSRW Capital Improvement Plan (CIP) Transfers Out are the authorized movement of cash or other resources to fund capital projects. The FY 2021/22 budget of $1.3 million for transfers out is a decrease of $0.7 million from the FY 2020/21 adopted budget. The decrease is due to onetime funding included in FY 2020/21 that is no longer needed in FY 2021/22 for the following capital projects: 1) the Sky Room at Civic Center Library; 2) the DNA Evidence Storage Facility; 3) Crime Laboratory Equipment Replacement; 4) the Uninterruptible Power Supply; and 5) the Replace Outdated 9-1-1 Computer Aided Dispatch and Records Management to Improve Efficiency. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 161 Table of Contents BUDGET BY FUND | Special Programs Fund CIP 7XSVQ[EXIV *=XS*= MRQMPPMSRW CIP Stormwater is the $3.95 monthly stormwater fee paid by utility customers and is transferred to the CIP to be used for drainage and flood control capital projects. The FY 2021/22 budget is $3.7 million. (IFX7IVZMGI14'&SRHW *=XS*= MRQMPPMSRW The adopted FY 2021/22 budget of $1.3 million is a transfer out to the Debt Service Fund for the Municipal Property Corporation (MPC) Bonds issued for the McDowell Mountain Golf Course, the San Francisco (SF) Giants Stadium Renovations, and Stormwater Fee for Projects. The increase of $0.6 million over the FY 2020/21 adopted budget is due to the transfer from the Stormwater Fee for Projects Fund to the Debt Service Fund for the Crossroads East Flood Control CIP project. 3TIVEXMRK *=XS*= MRQMPPMSRW The FY 2021/22 Operating Transfers Out is $0. The year-overyear decrease is due to reduced revenues in the 30-Day Tow Program in recent years, which reimburses the city for Police Officer time spent working on the program. 162 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Special Programs Fund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ares Funding is the designation created FY2020/21 in the fund balance for remaining AZCares funding. The remaining funding will carry-forward to FY 2021/22 to be used to supplement existing programs, create new programs, execute contracts and expend funds as may be necessary to mitigate the effects of and aid in recovery from the COVID-19 pandemic. It is estimated that there will be no fund balance by the end of FY 2021/22. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 163 Table of Contents BUDGET BY FUND | Special Programs Fund 7TIGMEP4VSKVEQW)RHMRK*YRH&EPERGI *=XS*= MRQMPPMSRW 7TIGMEP4VSKVEQW*YRHIRHMRKFEPERGISJQMPPMSRJSV*= 22VITVIWIRXWXLIJSPPS[MRKMRHMZMHYEPIRHMRKJYRH FEPERGIWQMPPMSRJSV'MX]'SYVXQMPPMSRJSV 'SQQYRMX]ERH)GSRSQMG(IZIPSTQIRXQMPPMSRJSV 'SQQYRMX]7IVZMGIWJSV1E]SVERH'MX]'SYRGMP JSV4YFPMG7EJIX]*MVIQMPPMSRJSV4YFPMG7EJIX]4SPMGI ERHQMPPMSRJSV4YFPMG;SVOW%R]VIQEMRMRKJYRHFEPERGI MWEZEMPEFPIMRJYXYVI]IEVWERHGERSRP]FIYWIHJSVMXW HIHMGEXIHTYVTSWIERHMJFYHKIXEYXLSVMX]MWMRGPYHIH 164 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Indian Bend Wash Dedication Ceremony Courtesy of Scottsdale Public Library Table of Contents BUDGET BY FUND | Debt Service Fund BUDGET BY FUND | Debt Service Fund Overview Fund Purpose This fund accounts for the accumulation of resources for, and the payment of, long-term debt principal and interest that are not serviced by the General, Enterprise or Special Revenue Funds. Contracts Payable and certificates of participation for contractual debt such as sales tax development agreements, are serviced by the General Fund and will vary based on the actual sales tax collections at each development site. The applicable sources, uses and ending fund balance of the Debt Service Fund are described in further detail in the following sections. Debt Service Fund Sources (% to Total) $88.6 Million Debt Service Fund Uses (% to Total) $88.6 Million Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 165 Table of Contents BUDGET BY FUND | Debt Service Fund Summary Actual 2019/20 Adopted 2020/21 Forecast 2020/21 Adopted 2021/22 6,804,720 1,393,953 8,198,673 6,164,760 1,490,397 7,655,157 5,055,080 1,042,307 6,097,387 5,055,080 3,329,856 8,384,936 Subtotal 32,556,445 404,535 957 5,881,373 38,843,311 33,372,880 33,372,880 33,372,880 130,306 239,774,634 273,277,820 35,078,990 35,078,990 Subtotal 34,637,971 25,285,015 5,134,909 65,057,895 31,867,424 20,860,222 1,414,000 54,141,646 31,524,597 20,206,966 1,414,000 53,145,563 31,527,342 20,583,199 1,420,000 53,530,541 103,901,206 87,514,526 326,423,383 88,609,531 39,946,682 27,599,380 25,690,486 5,134,909 98,371,456 33,372,830 31,867,474 20,860,222 1,414,000 87,514,526 198,757,455 32,432,413 91,531,966 1,414,000 324,135,834 35,078,990 31,527,342 20,583,199 1,420,000 88,609,531 98,371,456 87,514,526 324,135,834 88,609,531 7,309,965 321,070 7,631,035 - - - Total Uses 106,002,491 87,514,526 324,135,834 88,609,531 Sources Over/(Under) Uses (2,101,286) - 2,287,549 - Ending Fund Balance Debt Stabilization Reserve GO Debt Service Reserve - Non Preserve Total Ending Fund Balance 5,055,080 1,042,307 6,097,387 6,164,760 1,490,397 7,655,157 5,055,080 3,329,856 8,384,936 5,055,080 3,329,856 8,384,936 Beginning Fund Balance Debt Stabilization Reserve GO Debt Service Reserve - Non Preserve Total Beginning Fund Balance Revenues Property Tax Bond Premium Bond Proceeds (a) Interest Income Non-pooled Other Governmental Units Share (b) Transfers In Debt Svc GO Bonds Debt Svc MPC Bonds Debt Svc SPA Bonds Total Sources Debt Service GO Debt Service - Non Preserve (c) GO Debt Service - Preserve MPC Excise Debt SPA Debt Service (d) Subtotal TOTAL OPERATING BUDGET Transfers Out Debt Svc MPC Bonds (e) Debt Svc Stabilization Subtotal (a) Forecast amount includes proceeds related to GO Refunding Bonds, MPC Refinancing Bonds, and new GO Bond issuance. Final contributions from Maricopa County Stadium District (MCSD) and Arizona Sports and Tourism Authority (AZSTA) made to the city to pay debt service associated with the Cactus League spring training facilities (San Francisco Giants professional baseball practice facility). (c) Forecast amount includes payments to the refunding escrow agent and costs of issuance in connection with the defeasement of GO and MPC Debt. (d) The final payment for the repayment of the Scottsdale Preserve Authority Bonds is due in FY 2021/22. (e) Transfer set up to cover the difference in the MCSD and AZSTA revenue contribution for the Cactus League spring training facilities Debt Service payment. (b) 166 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Debt Service Fund Five-Year Financial Forecast Adopted 2021/22 Forecast 2022/23 Forecast 2023/24 Forecast 2024/25 Forecast 2025/26 5,055,080 3,329,856 8,384,936 5,055,080 3,329,856 8,384,936 5,055,080 3,329,856 8,384,936 5,055,080 3,329,856 8,384,936 5,055,080 3,329,856 8,384,936 Subtotal 35,078,990 35,078,990 36,494,700 36,494,700 37,952,100 37,952,100 35,731,700 35,731,700 37,191,600 37,191,600 Subtotal 31,527,342 20,583,199 1,420,000 53,530,541 33,439,900 18,628,500 52,068,400 35,355,200 18,749,600 54,104,800 38,849,800 18,853,800 57,703,600 24,670,800 18,988,800 43,659,600 88,609,531 88,563,100 92,056,900 93,435,300 80,851,200 35,078,990 31,527,342 20,583,199 1,420,000 88,609,531 36,494,700 33,439,900 18,628,500 88,563,100 37,952,100 35,355,200 18,749,600 92,056,900 35,731,700 38,849,800 18,853,800 93,435,300 37,191,600 24,670,800 18,988,800 80,851,200 88,609,531 88,563,100 92,056,900 93,435,300 80,851,200 - - - - - 88,609,531 88,563,100 92,056,900 93,435,300 80,851,200 - - - - - 5,055,080 3,329,856 8,384,936 5,055,080 3,329,856 8,384,936 5,055,080 3,329,856 8,384,936 5,055,080 3,329,856 8,384,936 5,055,080 3,329,856 8,384,936 Beginning Fund Balance Debt Stabilization Reserve GO Debt Service Reserve - Non Preserve Total Beginning Fund Balance Revenues Property Tax Bond Premium Bond Proceeds Interest Income Non-pooled Other Governmental Units Share Transfers In Debt Svc GO Bonds Debt Svc MPC Bonds Debt Svc SPA Bonds Total Sources Debt Service GO Debt Service - Non Preserve GO Debt Service - Preserve MPC Excise Debt SPA Debt Service (a) Subtotal TOTAL OPERATING BUDGET Transfers Out Debt Svc MPC Bonds Debt Svc Stabilization Subtotal Total Uses Sources Over/(Under) Uses Ending Fund Balance Debt Stabilization Reserve GO Debt Service Reserve - Non Preserve Total Ending Fund Balance (a) The final payment for the repayment of the Scottsdale Preserve Authority Bonds is due in FY 2021/22. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 167 Table of Contents BUDGET BY FUND | Debt Service Fund (IFX7IVZMGI*YRH7SYVGIW (IFX7IVZMGI*YRHWSYVGIWJSV*=IUYEPQMPPMSR7SYVGIWLEZILMWXSVMGEPP]MRGPYHIH4VSTIVX]8E\&SRH4VIQMYQ &SRH4VSGIIHW-RXIVIWX-RGSQI2SR4SSPIH3XLIV+SZIVRQIRXEP9RMXW7LEVIERH8VERWJIVW-R 4VSTIVX]8E\ *=XS*= MRQMPPMSRW 4VSTIVX]8E\VITVIWIRXWXLIWIGSRHEV]TSVXMSRSJXLITVSTIVX] XE\XLEXMWPMQMXIHERHPIZMIHXSTE]HIFXWIVZMGI8LIGMX]’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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents &SRH4VSGIIHW BUDGET BY FUND | Debt Service Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 169 Table of Contents BUDGET BY FUND | Debt Service Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents (IFX7ZG74%&SRHW BUDGET BY FUND | Debt Service Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 171 Table of Contents +3(IFX7IVZMGI4VIWIVZI BUDGET BY FUND | Debt Service Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents 74%(IFX7IVZMGI BUDGET BY FUND | Debt Service Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 173 Table of Contents (IFX7ZG7XEFMPM^EXMSR BUDGET BY FUND | Debt Service Fund *=XS*= MRQMPPMSRW 4SVXMSRSJXLI(IFX7ZG7XEFMPM^EXMSR8VERWJIVGPEWWMJMIHEWXLI WXERHF]EQSYRX7IITVIZMSYWIRXV](IFX7ZG14'&SRHW 8VERWJIV3YXJSVQSVIFEGOKVSYRH (IFX7IVZMGI*YRH)RHMRK&EPERGI )RHMRKJYRHFEPERGIMRGPYHIWVIWIVZIW[LMGLTVSXIGXXLIGMX]’WJMRERGMEPGSRHMXMSRERHTVSZMHIJSVYRI\TIGXIHIGSRSQMGGLEPPIRKIW 8LI(IFX7IVZMGI*YRHIRHMRKFEPERGIZEVMIWTVMQEVMP]HYIXSXLIXMQMRKSJHIFXMWWYERGIWERHVIPEXIHVITE]QIRXWGLIHYPIW +VS[XLSJJYRHFEPERGISGGYVW[LIRWSYVGIWI\GIIHYWIW8LIWTIGMJMGQEOIYTSJXLIGMX]’W(IFX7IVZMGI*YRHIRHMRKFEPERGIMW RSXIHMRXLIJSPPS[MRK (IFX7XEFMPM^EXMSR6IWIVZI *=XS*= MRQMPPMSRW (IFX7XEFMPM^EXMSR6IWIVZISJQMPPMSRMWTVSNIGXIHJSV*= 8LI(IFX7XEFMPM^EXMSR6IWIVZIFEPERGIZEVMIW TVMQEVMP]HYIXSXLIXMQMRKSJHIFXMWWYERGIWERHVIPEXIH VITE]QIRXWGLIHYPIWEWWSGMEXIH[MXLXLI14')\GMWI(IFX ;LMPIXLIVIMWRSPIKEPVIUYMVIQIRXXSLSPHXLMWVIWIVZIEXE GIVXEMRPIZIPXLI'MX]'SYRGMPLEWMRHMGEXIHXLEXMXWLSYPHFI QEMRXEMRIHXSTVSXIGXXLIGMX]JVSQYRI\TIGXIHJMRERGMEP GLEPPIRKIW 174 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents +3(IFX7IVZMGI6IWIVZI2SR4VIWIVZI BUDGET BY FUND | Debt Service Fund *=XS*= MRQMPPMSRW +3(IFX7IVZMGI6IWIVZI– 2SR4VIWIVZIVIWIVZIMWTVSNIGXIH EXQMPPMSRJSV*=8LI+3(IFX7IVZMGI6IWIVZI– 2SR4VIWIVZIFEPERGIZEVMIWTVMQEVMP]HYIXSXLIXMQMRKSJ HIFXMWWYERGIWERHVIPEXIHVITE]QIRXWGLIHYPIWEWWSGMEXIH [MXL+3(IFX7IVZMGI8LMWVIWIVZIMWMRGSQTPMERGI[MXL,ouse &ill2011 (Chapter 212, Laws 2017), which amended A.R.S § 35-XSGPEVMJ]XLEXXLIWIGSRHEV]TVSTIVX]XE\PIZ]WLEPPFI RIXSJEPPGEWLMRI\GIWWSJTIVGIRXSJXLIERRYEPTE]QIRXW SJTVMRGMTEPERHMRXIVIWXMRXLIGYVVIRXJMWGEP]IEVJVSQXLI previous remaining in the fund or funds prescribed by A.R.S. §  & 8LIPEVKIHIGVIEWIJVSQ*=XS*= [EWXSGSQTP][MXL,ouse &ill City of Scottsdale FY 2021/22 Adopted Budget - Volume One 175 Table of Contents BUDGET BY FUND | Debt Service Expense Forecast 2020/21 Adopted 2021/22 Forecast 2022/23 Forecast 2023/24 Forecast 2024/25 Forecast 2025/26 4,440,145 11,396,985 8,905,895 1,233,579 2,631,500 320,091 1,763,506 478,504 2,905 31,173,110 10,958,893 9,451,145 3,613,580 2,828,000 2,007,100 1,217,174 5,000,000 3,098 35,078,990 11,022,300 9,349,300 3,818,300 2,620,000 2,006,700 1,217,100 4,145,000 2,312,500 3,498 36,494,698 20,304,200 3,911,900 2,417,000 2,004,500 1,221,300 4,085,000 1,705,000 2,300,000 3,230 37,952,130 9,335,700 4,040,000 2,934,000 2,005,500 1,219,600 7,525,000 2,675,000 4,160,000 1,833,300 3,630 35,731,730 9,590,200 4,126,300 2,635,300 2,004,500 1,221,300 6,860,000 2,615,000 3,040,000 2,470,000 2,625,000 4,030 37,191,630 2021 2023 2028 2029 2027 2021 2040 2040 2040 2042 2042 2044 2045 946,400 3,507,000 1,560,000 1,889,855 1,790,000 746,325 1,544,915 8,896,105 820,600 4,434,750 562,185 4,733,139 5,545 31,436,819 3,745,250 2,230,000 748,025 1,561,757 8,865,505 820,600 4,459,250 562,185 8,530,368 4,402 31,527,342 3,369,600 2,650,000 747,800 1,574,600 12,879,100 820,600 6,048,800 1,463,400 3,881,600 4,402 33,439,902 5,531,100 2,550,000 744,900 12,785,300 820,600 6,079,500 1,494,600 5,344,900 4,320 35,355,220 747,900 946,300 820,600 1,481,000 34,851,500 2,520 38,849,820 746,800 961,800 820,600 1,449,700 20,689,900 2,020 24,670,820 2021 2021 2021 2024 2024 2026 2023 2028 2034 2024 2034 2034 1,411,500 2,500 1,414,000 1,417,500 2,500 1,420,000 - - - - 2022 Municipal Property Corp. (MPC) Bonds - Excise Tax 2006 MPC Refunding SkySong (GF/ST) 2015 MPC Refunding Spring Training Charros (Contribution) 2015 MPC Refunding Spring Training (GF/ST) 2006 MPC Refunding WW/TPC Land Acquisition 80-acres (GF/ST) 2015 MPC Refunding WW/TPC Land Acquisition 80-acres (GF/ST) 2015 MPC Refunding WW/TPC Land Acquisition 80-acres (TDF) 2021B MPC Taxable Refunding WW/TPC Land Acquisition 80-acres (GF/ST) 2021B MPC Taxable Refunding WW/TPC Land Acquisition 80-acres (TDF) 2014 MPC Refunding TPC ($4.2M) (GF/ST) 2015 MPC Refunding TPC (GF/ST) 2021B MPC Taxable Refunding TPC (GF/ST) 2014 MPC Refunding WW/TPC Land Acq 52- and 17-acres ($16.0M) (GF/ST) 2015 MPC Refunding WW/TPC Land Acq 52- and 17-acres (GF/ST) 2021B MPC Taxable Refunding WW/TPC Land Acq 52- and 17-acres (GF/ST) 2013A MPC SFS Garage Payoff ($31M) (GF/ST) 2021B MPC Taxable Refunding SFS Garage Payoff (GF/ST) 2013B MPC McDowell Golf ($1.6M) (SPF) 2021B MPC Taxable Refunding MPC McDowell Golf (SPF) 2013C MPC TNEC ($41.9M) (GF/ST) 2013C MPC TNEC (TDF) 2021B MPC Taxable Refunding MPC TNEC (GF/ST) 2021B MPC Taxable Refunding TNEC (TDF) 2015A MPC Revenue Museum (TDF) 2021B MPC Taxable Refunding Museum (TDF) 2021B MPC Taxable Refunding Museum (GF/ST) 2015A MPC Revenue Taxable TPC (TDF) 2015A MPC Revenue Taxable TPC Golf Surcharge (GF/ST) 2019A MPC Revenue Crossroads Flood Control (SF) 2019B MPC Revenue Taxable Stadium Improvements (TDF) 2019B MPC Bonds - Stadium Improvements Giants Funded (Contribution) 2019B MPC Bonds - Stadium Improvements Charros Funded (Contribution) Fiscal Agent Fees 2,814,250 80,000 1,769,806 2,524,000 334,175 172,221 518,655 48,442 25,025 1,948,057 191,696 99,165 2,208,700 107,366 91,413 8,146 1,026,063 1,200,000 229,802 872,338 7,132 900,000 162,912 665,500 1,679,653 375,000 135,000 12,450 2,817,000 2,544,000 393,399 600,000 518,313 163,270 1,988,400 646,143 2,016,000 612,925 71,750 90,328 602,500 1,200,000 1,396,976 859,613 40,387 92,753 900,000 163,712 665,000 1,679,030 375,000 135,000 11,700 2,821,000 2,564,300 456,700 518,300 74,200 1,986,900 293,800 2,094,800 336,800 73,500 20,100 600,800 1,200,000 779,500 857,600 22,900 900,000 163,900 663,800 1,677,900 375,000 135,000 11,700 2,816,000 2,579,500 471,200 518,600 77,200 2,010,400 305,200 2,576,200 100,100 1,283,100 1,200,000 859,400 22,800 900,000 161,700 666,800 1,530,700 525,000 135,000 10,700 2,817,300 2,584,800 470,300 518,800 81,000 2,032,700 320,600 2,646,500 84,800 1,289,500 1,200,000 854,600 22,800 900,000 163,500 668,800 1,527,100 525,000 135,000 10,700 2,819,300 2,640,300 469,000 516,600 78,700 2,020,900 311,400 2,731,200 94,300 1,291,300 1,200,000 858,600 27,700 900,000 164,100 664,800 1,530,100 525,000 135,000 10,450 2034 2021 2021 2030 2021 2021 2035 2035 2027 2021 2031 2027 2021 2031 2023 2028 2023 2033 2023 2023 2033 2033 2034 2027 2022 2034 2034 2039 2039 2039 2038 Subtotal by Funding Source: General Fund/Excise Tax (GF/ST) General Fund/Stormwater Fee (SF) Special Revenue/Stormwater Fee (SF) Tourism Development Fund Special Program (McDowell Golf) (SPF) SFG/Charros (Contributions) Total Municipal Property Corp. Bonds 13,681,389 667,000 5,169,019 99,559 590,000 20,206,966 13,964,091 666,500 5,280,530 162,078 510,000 20,583,199 12,241,000 665,300 5,118,600 93,600 510,000 18,628,500 12,333,600 668,300 4,987,600 100,100 660,000 18,749,600 12,460,400 670,300 4,978,300 84,800 660,000 18,853,800 12,579,500 666,300 4,988,650 94,300 660,000 18,988,750 84,230,895 $ 88,609,531 $ 88,563,100 $ 92,056,950 $ 93,435,350 $ 80,851,200 Debt Service Funds General Obligation (G.O.) Bonds - Property Tax (Secondary) 2012 G.O. Refunding Bonds ($38.5M Jul 2012) 2014 G.O. Refunding Bonds ($73.8M May 2014) 2015 G.O. Refunding Bonds ($86.4M Apr 2015) 2017 G.O. Refunding Bonds ($26.8M May 2017) 2017C G.O. Various Purpose ($25.5M Dec 2017) 2020 G.O. Taxable Refunding Bonds ($0.3M Dec 2020) 2021 G.O. Various Purpose (Tax-Exempt) ($31.4M Feb 2021) 2021 G.O. Various Purpose (Taxable) ($19.8M Feb 2021) Future G.O. Bond: $75.0M issue Nov, 2021 Future G.O. Bond: $25.0M issue June, 2022 Future G.O. Bond: $30.0M issue June, 2023 Future G.O. Bond: $25.0M issue June, 2024 Future G.O. Bond: $30.0M issue June, 2025 Fiscal Agent Fees and Arbitrage Fees Preserve General Obligation Bonds - Preserve Sales Tax 2011 G.O. Bonds Preserve ($22.5M Feb 2011) 2011 G.O. Refunding Bonds Preserve ($34.5M Apr 2011) 2012 G.O. Bonds Preserve ($50M Feb 2012) 2012 G.O. Refunding Bonds Preserve ($44.5M Jul 2012) 2013 G.O. Bonds Preserve ($75M Feb 2013) 2014 G.O. Bonds Preserve ($14M May 2014) 2014 G.O. Refunding Bonds Preserve ($9.4M May 2014) 2015 G.O. Refunding Bonds Preserve ($74.0M Apr 2015) 2017A G.O. Preserve Bonds ($17.4M Mar 2017) 2017B G.O. Preserve Acquisition Refinancing Bonds ($18.5M May 2017) 2017 G.O. Refunding Bonds Preserve ($13.2M May 2017) 2020 G.O. Taxable Refunding Bonds Preserve ($167.9M Dec 2020) Fiscal Agent Fees Scottsdale Preserve Authority Bonds - Preserve Sales Tax 2011 Scottsdale Preserve Revenue Refunding Bonds Fiscal Agent Fees Total Debt Service Funds $ 176 Final Payment Date City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Debt Service Expense Forecast 2020/21 General Fund Service Concession Arrangements BOR Administration/Westworld BOR Administration/TPC Total General Fund Adopted 2021/22 Forecast 2022/23 Forecast 2023/24 Forecast 2024/25 Forecast 2025/26 Final Payment Date 188,565 188,565 377,130 197,993 197,993 395,986 207,900 207,900 415,800 218,300 218,300 436,600 229,200 229,200 458,400 240,700 240,700 481,400 377,130 $ 395,986 $ 415,800 $ 436,600 $ 458,400 $ 481,400 4,583,625 400 4,584,025 4,592,300 400 4,592,700 4,604,700 400 4,605,100 - - - 2023 11,136,015 1,326,985 456,438 1,556,962 1,323,613 4,427,477 1,370,404 1,102,480 1,631,845 2,087,569 737,287 33,419 113,981 513,717 633,478 12,050 28,463,720 11,086,424 1,321,076 1,298,913 4,170,796 1,290,954 729,500 1,079,775 2,086,460 736,896 89,782 306,218 1,326,161 907,065 9,050 26,439,070 11,041,700 1,315,800 1,298,200 4,167,700 1,290,000 1,541,900 2,282,300 2,090,200 738,200 89,800 306,200 1,327,300 908,000 9,100 28,406,400 10,987,500 1,309,300 1,300,400 4,175,800 1,292,500 1,618,400 2,395,500 2,087,200 737,200 89,800 306,200 1,328,100 908,500 9,100 28,545,500 5,865,800 699,000 1,295,400 4,159,500 1,287,500 1,694,700 2,508,500 2,088,900 737,700 89,800 306,200 1,328,000 908,400 9,100 22,978,500 5,838,300 695,700 1,298,400 4,169,500 1,290,500 1,774,500 2,626,500 2,087,400 737,200 89,800 306,200 1,326,300 907,100 9,300 23,156,700 2030 2030 2021 2021 2034 2026 2026 2034 2034 2037 2037 2030 2030 2036 2036 $ 33,047,745 $ 31,031,770 $ 33,011,500 $ 28,545,500 $ 22,978,500 $ 23,156,700 $ 1,720,494 1,500 1,721,994 $ 1,722,744 1,500 1,724,244 $ 1,717,700 1,500 1,719,200 $ 1,720,700 1,500 1,722,200 $ 1,721,200 1,500 1,722,700 $ 1,719,200 1,500 1,720,700 $ 2032 2035 Water and Sewer Funds Water Sewer Revenue Bonds 2008 Water Sewer Revenue Refunding Bonds-Water Reclamation Fiscal Agent Fees Municipal Property Corp. (MPC) Bonds 2006 MPC Refunding Bonds-Water 2006 MPC Refunding Bonds-Sewer 2010 MPC Bonds-Water 2010 MPC Bonds-Sewer 2015A MPC-Sewer 2015 MPC Refunding Bonds-Water 2015 MPC Refunding Bonds-Sewer 2017 MPC Refunding Bonds-Water 2017 MPC Refunding Bonds-Sewer 2017A MPC Bonds-Water (Rate) 2017A MPC Bonds-Water Reclamation (Developer-Fee) 2021A MPC Refunding Bonds-Water 2021A MPC Refunding Bonds-Sewer 2021B MPC Taxable Refunding Bonds-Water 2021B MPC Taxable Refunding Bonds-Sewer Fiscal Agent Fees Total Water and Sewer Funds Aviation Fund Aviation MPC Bonds 2017B MPC Bonds Fiscal Agent Fees Total Aviation Funds TOTAL DEBT SERVICE EXPENSE - ALL FUNDS 2037 $ 119,377,764 $ 121,761,531 $ 123,709,600 $ 122,761,250 $ 118,594,950 $ 106,210,000 City of Scottsdale FY 2021/22 Adopted Budget - Volume One 177 Table of Contents BUDGET BY FUND | Debt Service Expense Debt Service Expense FY 2020/21 vs. FY 2021/22 Type of Bond General Obligation Bonds Preserve General Obligation Bonds Scottsdale Preserve Authority Bonds Municipal Property Corporation (MPC) Bonds Service Concession Arrangements Water and Sewer Revenue Bonds MPC Bonds - Water and Sewer Aviation MPC Bonds Total Forecast FY 2 0 2 0 / 2 1 31,173,110 31,436,819 1,414,000 20,206,966 377,130 4,584,025 28,463,720 1,721,994 119, 377, 764 Adopted FY 2 0 2 1 / 2 2 35,078,990 31,527,342 1,420,000 20,583,199 395,986 4,592,700 26,439,070 1,724,244 121, 761, 531 (iin millions) $35.1 $31.2 $31.4 $31.5 $28.5 $26.4 $20.2 $20.6 $4.6 $1.4 $1.4 General Obligation Bonds Preserve General Obligation Bonds Scottsdale Preserve Authority Bonds $4.6 $1.7 $0.4 $0.4 Municipal Property Corporation (MPC) Bonds Forecast FY 2020/21 178 Service Concession Arrangements Water and Sewer Revenue Bonds MPC Bonds - Water and Sewer $1.7 Aviation MPC Bonds Adopted FY 2021/22 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Long-Term Debt Outstanding Final Payment Date Balance at 6 /3 0 /2 1 Balance at 6 /3 0 /2 2 Balance at 6 /3 0 /2 3 Balance at 6 /3 0 /2 4 Balance at 6 /3 0 /2 5 20,832,541 67,590,000 26,826,110 13,360,000 29,990,000 19,445,000 178,043,651 10,701,250 60,530,000 24,446,110 11,200,000 28,855,000 18,610,000 71,500,000 225,842,360 53,360,000 21,742,360 9,140,000 27,675,000 17,750,000 93,000,000 222,667,360 35,020,000 18,809,860 7,180,000 26,450,000 16,860,000 119,000,000 223,319,860 27,005,000 15,602,660 4,605,000 25,175,000 15,945,000 132,750,000 221,082,660 2023 2028 2029 2027 2040 2040 2044 Preserve General Obligation Bonds - Preserve Sales Tax Supported 2012 G.O. Refunding Bonds-Preserve 11,835,000 2013 G.O. Bonds-Preserve 7,000,000 2014 G.O. Bonds-Preserve 3,390,000 2014 G.O. Refunding Bonds-Preserve 2,972,459 2015 G.O. Refunding Bonds-Preserve 35,385,000 2017A G.O. Bonds-Preserve 17,410,000 2017B G.O. Preserve Acquistion Refinancing Bonds 14,985,000 2017 G.O. Refunding Bonds-Preserve 13,158,890 2020 G.O. Taxable Refunding Bonds-Preserve 164,045,000 Total Preserve General Obligation Bonds 270,181,349 8,485,000 5,000,000 2,760,000 1,528,750 27,670,000 17,410,000 11,275,000 13,158,890 157,255,000 244,542,640 5,370,000 2,500,000 2,105,000 15,710,000 17,410,000 5,790,000 12,257,640 155,100,000 216,242,640 1,430,000 3,485,000 17,410,000 11,280,140 151,475,000 185,080,140 725,000 2,670,000 17,410,000 10,267,340 118,325,000 149,397,340 2024 2024 2026 2023 2028 2034 2024 2034 2034 Scottsdale Preserve Authority Bonds - Preserve Sales Tax Supported 2011 Scottsdale Preserve Revenue Refunding Bonds 1,350,000 Total Scottsdale Preserve Authority Bonds 1,350,000 - - - - Debt Service Funds General Obligation Bonds - Property Tax (Secondary) Supported 2014 G.O. Refunding Bonds 2015 G.O. Refunding Bonds 2017 G.O. Refunding Bonds 2017C G.O. Various Purpose Bonds 2021 G.O. Various Purpose Bonds 2021 G.O. Taxable Various Purpose Bonds Future G.O. Bonds Total General Obligation Bonds 2022 Municipal Property Corp. (MPC) Bonds - Excise Tax Supported 2006 MPC Refunding SkySong 2006 MPC Refunding WW/TPC 80-acres 2014 MPC Refunding TPC 2014 MPC Refunding WW/TPC 52- and 17-acres 2013A MPC Garage 2013B MPC McDowell Mnt 2013C MPC TNEC 2015A MPC Museum 2015A Taxable TPC 2019A MPC Revenue Crossroads Flood Control 2019B MPC Revenue Taxable Stadium Improvements 2021B MPC Refunding Taxable Bonds Garage 2021B MPC Refunding Taxable Bonds McDowell Mnt 2021B MPC Refunding Taxable Bonds TNEC 2021B MPC Refunding Taxable Bonds Museum 2021B MPC Refunding Taxable Bonds WW/TPC 80-acres 2021B MPC Refunding Taxable Bonds TPC 2021B MPC Refunding Taxable Bonds WW/TPC 52- and 17-acres Total Municipal Property Corp. Bonds 25,940,000 18,980,000 2,707,643 10,522,357 3,820,000 135,000 3,350,000 8,495,000 10,735,000 8,760,000 30,950,000 14,010,000 935,000 25,645,000 885,000 16,360,000 2,654,300 10,505,700 195,390,000 24,420,000 17,385,000 2,307,521 8,992,479 1,995,000 70,000 1,715,000 7,955,000 10,075,000 8,435,000 29,540,000 13,510,000 855,000 24,545,000 760,000 15,625,000 2,525,200 9,994,800 180,705,000 22,820,000 15,690,000 1,887,416 7,387,584 7,390,000 9,395,000 8,095,000 28,105,000 13,285,000 845,000 24,060,000 745,000 15,425,000 2,484,900 9,835,100 167,450,000 21,145,000 13,895,000 1,446,025 5,678,975 6,795,000 8,690,000 7,735,000 26,640,000 10,820,000 755,000 21,870,000 730,000 15,210,000 2,441,500 9,663,500 153,515,000 19,385,000 12,005,000 982,377 3,862,623 6,175,000 7,955,000 7,355,000 25,150,000 8,275,000 680,000 19,665,000 715,000 14,995,000 2,394,100 9,475,900 139,070,000 Total Debt Service Funds 644,965,000 651,090,000 606,360,000 561,915,000 509,550,000 City of Scottsdale FY 2021/22 Adopted Budget - Volume One 2034 2030 2027 2027 2023 2023 2023 2034 2034 2039 2039 2028 2033 2033 2027 2035 2031 2031 179 Table of Contents BUDGET BY FUND | Long-Term Debt Outstanding Final Payment Date Balance at 6 /3 0 /2 1 Balance at 6 /3 0 /2 2 Balance at 6 /3 0 /2 3 Balance at 6 /3 0 /2 4 Balance at 6 /3 0 /2 5 879,564 1,034,292 1,913,856 799,603 960,414 1,760,017 719,643 886,536 1,606,179 639,683 812,658 1,452,341 559,722 738,780 1,298,502 1,913,856 1,760,017 1,606,179 1,452,341 1,298,502 8,520,000 8,520,000 4,375,000 4,375,000 - - - 2023 62,150,000 12,865,000 23,635,000 41,620,000 33,890,000 7,920,000 63,055,000 245,135,000 52,850,000 12,050,000 19,355,000 41,620,000 32,390,000 7,920,000 61,740,000 227,925,000 43,135,000 11,195,000 14,865,000 39,605,000 30,810,000 7,920,000 60,420,000 207,950,000 32,995,000 10,295,000 10,140,000 37,340,000 29,155,000 7,920,000 59,095,000 186,940,000 28,080,000 9,355,000 5,200,000 34,795,000 27,415,000 7,920,000 57,765,000 170,530,000 2030 2034 2026 2034 2037 2030 2036 253,655,000 232,300,000 207,950,000 186,940,000 170,530,000 20,430,000 19,530,000 18,590,000 17,600,000 16,560,000 T o t a l A v i at i o n F u n d 20,430,000 19,530,000 18,590,000 17,600,000 16,560,000 Total Debt Service Funds 920,963,856 904,680,017 834,506,179 767,907,341 697,938,502 General Fund Service Concession Arrangements BOR Administration/Westworld BOR Administration/TPC Total General Fund Contracts Payable Total General Fund Water and Sewer Funds Water Sewer Revenue Bonds 2008 Water Sewer Revenue Refunding Bonds Total Water Sewer Revenue Bonds Municipal Property Corp. (MPC) Bonds 2006 Refunding Water & Sewer MPC Bonds 2015A Water & Sewer MPC Bonds 2015 Refunding Water & Sewer MPC Bonds 2017 Refunding Water & Sewer MPC Bonds 2017A Water & Sewer MPC Bonds 2021A MPC Refunding Bonds 2021B MPC Refunding Taxable Bonds Total MPC Bonds - Water and Sewer Supported Total Water and Sewer Funds Aviation Fund Municipal Property Corp. (MPC) Bonds 2017 MPC Bonds - Airport Supported 180 2032 2035 2037 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Long-Term Debt Outstanding 03) General Obligation Bonds - Property Tax Matures 2044 $178,043,651 General Obligation Bonds - Preserve Matures 2034 $270,181,349 Scottsdale Preserve Authority Bonds Matures 2022 Aviation - MPC Bonds Matures 2037 $67,500 $195,390,000 $1,913,856 $42,097,581 $4,779,386 Water and Sewer Revenue Bonds Matures 2023 Water and Sewer MPC Bonds Matures 2037 $33,266,699 $1,350,000 Municipal Property Corporation (MPC) Bonds - Matures 2039 Service Concession Arrangments Matures 2035 $31,333,457 $8,520,000 $245,135,000 $20,430,000 Principal $676,988 $59,857,827 $7,078,388 Interest City of Scottsdale FY 2021/22 Adopted Budget - Volume One 181 Table of Contents BUDGET BY FUND | Long-Term Debt Outstanding Outstanding Bonds By Type Forecast at June 30, 2021 Type of Issuance General Obligation Bonds (Combined) 6% Capacity 20% Capacity Total General Obligation Bonds Principal Bond Amount % Total 4,284,170 457,079,430 Scottsdale Preserve Authority Bonds Municipal Property Corporation (MPC) Bonds Service Concession Arrangements Water and Sewer Revenue Bonds Water and Sewer MPC Bonds Aviation MPC Bonds Total 461,363,600 (a) 1% 99% 49% 1,350,000 195,390,000 1,913,856 8,520,000 245,135,000 20,430,000 934,102,456 0% 21% 0% 1% 26% 2% 100% (a) Amount includes $12,713,000 of excess premium which counts agains the 20 percent threshhold but is not considered GO Bond Debt and $425,600 of excess premium which counts against the 6 percent threshhold but is not considered GO Bond Debt Aviation MPC Bonds 2% Water and Sewer MPC Bonds 26% Total General Obligation Bonds 50% Water and Sewer Revenue Bonds 1% Service Concession Arrangements 0% Municipal Property Corporation (MPC) Bonds 21% Scottsdale Preserve Authority Bonds 0% 182 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Property Tax Supported Debt General Obligation Bonds Property Tax (Secondary) Supported FY 2021/22 $31,173,110 FY 2022/23 $35,078,990 FY 2023/24 $36,494,698 FY 2024/25 $37,952,130 FY 2025/26 $37,191,630 (in millions) $40 $35 $35.1 $36.5 $38.0 $37.2 $30 $25 $31.2 $20 $15 $10 $5 $FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 City of Scottsdale FY 2021/22 Adopted Budget - Volume One FY 2025/26 183 Table of Contents BUDGET BY FUND | Legal Debt Margins COMPUTATION OF LEGAL DEBT MARGINS Forecast June 30, 2021 Net Assessed Valuation Forecasted as of June 30, 2021 $ Debt Limit Equal to 20% of Assessed Valuation 8 ,1 5 4 ,7 0 1 ,2 7 2 State Regulation 1 ,6 3 0 ,9 4 0 ,2 5 4 General Obligation Bonded Debt Subject to 20% Debt Limit (net of amounts available in Debt Service Funds forecasted for payment on July 1, 2021): 2012 G.O. Preserve / Non-Preserve Refunding Bonds 2013 G.O. Preserve Bonds 2014 G.O. Preserve Bonds 2014 G.O. Preserve / Non-Preserve Refunding Bonds 2015 G.O. Preserve / Non-Preserve Refunding Bonds 2017A G.O. Preserve Bonds 2017B G.O. Preserve Refinancing Bonds 2017 G.O. Preserve / Non-Preserve Refunding Bonds 2017C G.O. Various Purpose Bonds 2020 G.O. Taxable Preserve / Non-Preserve Refunding Bonds 2021 G.O. Various Purpose Bonds 2021 G.O. Taxable Various Purpose Bonds The Arizona Constitution (Article 9, Section 8), provides that the general obligation bonded indebtedness for a 1 1 ,8 3 5 ,0 0 0 7 ,0 0 0 ,0 0 0 3 ,3 9 0 ,0 0 0 2 3 ,8 0 5 ,0 0 0 1 0 2 ,9 7 5 ,0 0 0 1 7 ,4 1 0 ,0 0 0 1 4 ,9 8 5 ,0 0 0 3 9 ,9 8 5 ,0 0 0 1 3 ,3 6 0 ,0 0 0 1 6 4 ,0 4 5 ,0 0 0 2 6 ,1 3 1 ,4 3 0 1 9 ,4 4 5 ,0 0 0 Net Outstanding Forecasted Bonded Debt Subject to 20% Limit Net Outstanding Forecasted Excess Premium Subject to 20% Limit Forecasted Legal 20% Debt Margin (Available Borrowing Capacity) Debt Limit Equal to 6% of Assessed Valuation city for general municipal purposes may not exceed 6% of the assessed valuation of the taxable property in that city. In addition to the 6% limitation for general municipal purpose bonds, cities may issue general obligation bonds up to an additional 20% of the assessed valuation for supplying such city with water, artificial light, or sewers, for the acquisition and development of land for open space preserves, parks, playgrounds and recreational facilities, 4 4 4 ,3 6 6 ,4 3 0 1 2 ,7 1 3 ,0 0 0 4 5 7 ,0 7 9 ,4 3 0 (A) 1 ,1 7 3 ,8 6 0 ,8 2 4 (C) public safety, law enforcement, fire and emergency services facilities and streets and transportation facilities. 4 8 9 ,2 8 2 ,0 7 6 General Obligation Bonded Debt Subject to 6% Debt Limit (net of amounts available in Debt Service Funds forecasted for payment on July 1, 2021): 2021 G.O. Various Purpose Bonds 3 ,8 5 8 ,5 7 0 Net Outstanding Forecasted Bonded Debt Subject to 6% Limit Net Outstanding Forecasted Excess Premium Subject to 6% Limit Forecasted Legal 6% Debt Margin (Available Borrowing Capacity) 3 ,8 5 8 ,5 7 0 4 2 5 ,6 0 0 4 ,2 8 4 ,1 7 0 (B ) 4 8 4 ,9 9 7 ,9 0 6 (D ) CITY OF SCOTTSDALE COMPLIANCE WITH STATE REGULATION This schedule indicates the assessed valuation of property tax within the City of Scottsdale allows a maximum legal bonding capacity of $1,630,940,254 for projects subject to the 20% limitation and $489,282,076 for projects subject to the 6% limitation. Legal Debt Capacity Used Based on the City's current outstanding general obligation debt, it is forecasted as of June 30, 2021, the City has used (borrowed) the following legal debt capacity, including excess premium, by percentage limitation: 2 0 % l i m i t a t i o n ( A) $ 4 5 7 , 0 7 9 , 4 3 0 o r 2 8 % 6 % l i mi t a t i o n ( B ) $ 4 , 2 8 4 , 1 7 0 o r 1 % Legal Capacity Available Based on the City's current outstanding general obligation debt, it is forecasted as of June 30, 2021, the City has available (for borrowing) the following legal debt capacity by percentage limitation: 2 0 % l i m i t a t i o n ( C) $ 1 , 1 7 3 , 8 6 0 , 8 2 4 o r 7 2 % 6 % l i mi t a t i o n ( D ) $ 4 8 4 , 9 9 7 , 9 0 6 o r 9 9 % 184 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Legal Debt Margins General Obligation Bond Capacity Available as of June 30, 2021 Under Arizona Constitution Article IX, section 8 (amended by Proposition 104 in 2006), cities may issue General Obligation Bonds for streets and transportation facilities, public safety, law enforcement, fire and emergency services facilities, water, water reclamation, artificial light, acquisition and development of land for open space preserves, parks, playgrounds and recreation facilities up to an amount not exceeding 20 percent of secondary assessed value. Cities may also issue General Obligation Bonds for all other general purposes not included in the 20 percent debt margin category up to an amount not exceeding six percent of the secondary assessed value. Outstanding General Obligation Bonds Subject to 20 Percent Limit as of June 30, 2021 Maturity Date FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 FY 2035/36 FY 2036/37 FY 2037/38 FY 2038/39 FY 2039/40 Total Principal Payable 49,193,970 52,823,180 56,352,390 51,505,960 38,229,520 33,332,450 32,055,370 22,748,290 18,500,570 17,781,570 18,128,850 18,449,990 18,605,480 2,650,980 2,700,840 2,746,330 2,796,830 2,856,680 2,907,180 444,366,430 (a) Interest Payable 12,146,626 10,387,834 8,599,551 6,618,040 5,758,950 4,796,210 3,774,841 2,847,784 2,294,223 1,887,832 1,482,802 1,090,461 714,724 319,966 271,676 221,339 169,011 114,455 58,144 63, 554, 468 Fiscal Total 61,340,596 63,211,014 64,951,941 58,124,000 43,988,470 38,128,660 35,830,211 25,596,074 20,794,793 19,669,402 19,611,652 19,540,451 19,320,204 2,970,946 2,972,516 2,967,669 2,965,841 2,971,135 2,965,324 507, 920, 898 (a) Amount does not include $12,713,000 of excess premium which counts against the 20 percent threshold but is not considered GO Bond Debt. (in millions) $60 $50 $40 $30 49.2 52.8 56.4 51.5 $20 38.2 33.3 32.1 22.7 $10 12.1 10.4 $‐ 8.6 6.6 5.8 4.8 3.8 2.8 Principal Payable $522,577,163 $1,173,860,824 18.5 17.8 18.1 18.4 18.6 2.3 1.9 1.5 1.1 0.7 2.7 0.3 2.7 0.3 2.7 0.2 2.8 0.2 2.9 0.1 2.9 0.1 Interest Payable $457,079,430 Available Borrowing Capacity $1,173,860,824 Bonded Debt $457,079,430 City of Scottsdale FY 2021/22 Adopted Budget - Volume One 185 Table of Contents BUDGET BY FUND | Legal Debt Margins Outstanding General Obligation Bonds Subject to 6 Percent Limit as of June 30, 2021 Principal Payable Maturity Date FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 FY 2035/36 FY 2036/37 FY 2037/38 FY 2038/39 FY 2039/40 T ot a l 146,030 151,820 157,610 164,040 170,480 177,550 184,630 191,710 199,430 208,430 216,150 220,010 224,520 229,020 234,160 238,670 243,170 248,320 252,820 3,858,570 Interest Payable (a) Fiscal Total 112,206 106,365 100,292 93,988 87,426 80,607 73,505 66,120 58,451 50,474 42,137 37,814 33,414 28,923 24,343 19,660 14,886 10,023 5,056 1,045,688 258,236 258,185 257,902 258,028 257,906 258,157 258,135 257,830 257,881 258,904 258,287 257,824 257,934 257,943 258,503 258,330 258,056 258,343 257,876 4,904,258 (a) Amount does not include $425,600 of excess premium which counts against the 6 percent threshold but is not considered GO Bond Debt. (in millions) $0.3 $0.3 $0.2 $0.2 $0.2 $0.2 $0.2 $ 0 . 2 $0.1 $0.2 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $0.2 $0.2 $0.1 $0.1 $0.2 $0.1 $0.2 $0.2 $0.2 $0.2 $0.2 $ 0 . 2 $0.2 $0.2 $0.2 $0.1 $0.0 $0.0 $- $0.0 $0.0 $0.0 $0.0 $0.3 $0.0 $0.0 $0.0 Available Borrowing Principal Payable Interest Payable Bonded Debt $14,418,837 Capacity $327,505,441 Bonded Debt $4,284,170 Available Borrowing Capacity, $327,505,441 186 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Bond Rating Scottsdale’s Bond Ratings Scottsdale General Obligation bonds continue to maintain the highest possible rating from the three major national bond rating agencies, Standard & Poor’s, Fitch Ratings and Moody’s Investors Services, reaffirming their confidence in the city’s financial management and its economic outlook. Scottsdale is one of a select number of municipalities achieving top ratings from all three. High bond ratings mean the city is able to sell General Obligation bonds to finance voter-approved capital projects, including new parks, libraries, pools and roads, at lower interest rates. The ratings also increase the value of existing General Obligation bonds for investors. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 187 Table of Contents 188 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Scottsdale Airpark Courtesy of Scottsdale Public Library Table of Contents BUDGET BY FUND | Enterprise Funds Overview BUDGET BY FUND | Enterprise Funds Overview )RXIVTVMWI*YRHW(IWGVMTXMSR 7GSXXWHEPIYWIWWITEVEXI)RXIVTVMWI*YRHWXSEGGSYRXJSVXLIEGXMZMX]SJXLITVSTVMIXEV]JYRHW8LIMRHMZMHYEPJYRHWEVI ;EXIVERH;EXIV6IGPEQEXMSR7SPMH;EWXIERH%ZMEXMSR-REKKVIKEXIXLI)RXIVTVMWI*YRHWEVIXLIGMX]’WWIGSRHPEVKIWX WSYVGISJVIZIRYIW[LMGLEVIHIVMZIHJVSQYWIVJIIWERHGLEVKIW9WIVJIIWERHGLEVKIWEVIIWXEFPMWLIHXSTVSQSXI IJJMGMIRG]F]WLMJXMRKGSWXWXSWTIGMJMGYWIVWSJWIVZMGIWERHEZSMHMRKKIRIVEPXE\EXMSR8LIETTPMGEFPIVIZIRYIWSJXLI MRHMZMHYEPJYRHWEPSRK[MXLIEGLJYRH’WTYVTSWIEVIHIWGVMFIHMRXLIWIGXMSRWXLEXJSPPS[ )RXIVTVMWI*YRHW7SYVGIW XS8SXEP  1MPPMSR )RXIVTVMWI*YRHW9WIW XS8SXEP 1MPPMSR Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 189 Table of Contents 190 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds BUDGET BY FUND | Water & Water Reclamation Funds Overview Fund Purpose These funds account for the transactions related to the city’s water and water reclamation business activities, including operating sources, uses and debt service payments. Capital uses are accounted for in various Capital Improvement Plan funds. Water & Water Reclamation Funds Sources (% to Total) $189.2 Million Water & Water Reclamation Funds Uses (% to Total) $187.4 Million Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 191 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds Summary Actual 2019/20 Adopted 2020/21 Forecast 2020/21 Adopted 2021/22 17,602,285 41,302,123 4,604,688 845,335 1,500,000 65,854,431 16,287,724 42,644,246 4,604,688 845,335 3,000,000 100,000 67,481,993 14,887,724 42,644,246 4,604,688 845,335 3,000,000 2,664,392 68,646,385 18,717,979 44,429,555 4,604,688 845,335 3,000,000 799,392 72,396,949 Subtotal 105,647,247 41,350,423 14,918,504 833,883 3,966,639 1,647,061 328,518 269,472 5,500 168,967,247 106,066,120 42,529,800 17,113,400 850,500 787,700 926,153 336,000 283,900 5,500 168,899,073 106,066,120 42,529,800 17,113,400 850,500 787,700 926,153 336,000 283,900 5,500 168,899,073 113,533,563 47,523,116 15,241,405 876,665 834,657 737,069 337,600 196,800 5,500 179,286,375 Subtotal 2,883,481 4,283,290 900,000 8,066,771 2,863,545 6,356,385 900,000 10,119,930 2,863,545 6,356,385 900,000 10,119,930 3,231,417 5,806,922 900,000 9,938,339 177,034,019 179,019,003 179,019,003 189,224,714 Subtotal 2,108,317 70,537,485 5,384,333 833,883 13,692,323 92,556,341 2,557,210 375,398 69,337,805 5,108,148 850,500 466,001 (1,099,426) 16,604,946 94,200,582 2,549,161 411,611 68,758,077 5,108,148 850,500 382,615 413,699 (488,821) 16,604,946 94,589,936 2,562,368 461,336 71,691,018 5,393,197 876,665 489,202 (1,177,100) 16,191,921 96,488,607 Subtotal 4,574,588 7,919,948 20,660,772 33,155,308 4,584,025 8,024,922 20,588,390 33,197,337 4,584,025 8,024,922 20,588,390 33,197,337 4,592,700 6,208,406 20,230,664 31,031,770 125,711,649 127,397,919 127,787,273 127,520,377 2,883,481 33,261,110 151,904 3,801,358 8,432,562 48,530,415 2,863,545 35,993,625 147,825 8,111,171 47,116,166 2,863,545 35,993,625 147,825 8,476,171 47,481,166 3,231,417 47,243,247 700,809 8,668,113 59,843,586 174,242,065 174,514,085 175,268,439 187,363,963 Sources Over/(Under) Uses 2,791,954 4,504,918 3,750,564 1,860,751 Ending Fund Balance Operating Reserve Repair/Replacement Reserve Revenue Bond Debt Service Reserve Special Contractual Fund Balance Water Drought Reserve Undesignated, Unreserved Fund Balance Total Ending Fund Balance 14,887,724 42,644,246 4,604,688 845,335 3,000,000 2,664,392 68,646,385 19,107,333 44,429,555 4,604,688 845,335 3,000,000 71,986,911 18,717,979 44,429,555 4,604,688 845,335 3,000,000 799,392 72,396,949 19,567,970 46,239,707 4,604,688 845,335 3,000,000 74,257,700 Beginning Fund Balance Operating Reserve Repair/Replacement Reserve Revenue Bond Debt Service Reserve Special Contractual Fund Balance Water Drought Reserve Undesignated, Unreserved Fund Balance Total Beginning Fund Balance Revenues Water Service Charges Water Reclamation Service Charges Non-Potable Water Service Charges Indirect Costs Miscellaneous Interest Earnings Stormwater Fee Property Rental Contributions & Donations Transfers In AWT Debt Service RWDS Total Sources Expenditures City Treasurer Administrative Services Water Resources Citywide Indirect Cost Allocation Department Indirect Cost Fuel and Maint and Repair (a) Leave Accrual Payments Savings from Vacant Positions Utilities Debt Service CIP Sewer Revenue Bonds MPC Bonds Debt Service-Sewer MPC Bonds Debt Service-Water TOTAL OPERATING BUDGET Transfers Out AWT CIP CIP Technology Debt Service Fund (b) Franchise Fees Subtotal Total Uses (a) Initially budgeted at the division level. At the start of the fiscal year the budget will move to a macro level and then be transferred back to the division monthly as expenses occur. (b) Beginning in FY 2020/21, a procedural change was implemented in the recording of debt service for water and sewer bonds. The procedural change was done for efficiency and has no impact on the cost of debt service or fund balance. 192 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds Five-Year Financial Forecast Adopted 2021/22 Forecast 2022/23 Forecast 2023/24 Forecast 2024/25 Forecast 2025/26 18,717,979 44,429,555 4,604,688 845,335 3,000,000 799,392 72,396,949 19,567,970 46,239,707 4,604,688 845,335 3,000,000 74,257,700 23,517,910 47,348,167 4,604,688 845,335 3,000,000 79,316,100 26,037,284 48,458,593 4,604,688 845,335 3,000,000 82,945,900 30,000,304 49,577,761 845,335 3,000,000 83,423,400 Subtotal 113,533,563 47,523,116 15,241,405 876,665 834,657 737,069 337,600 196,800 5,500 179,286,375 116,898,200 45,497,700 15,599,000 894,200 869,000 443,200 341,000 204,600 5,600 180,752,500 120,362,800 46,817,100 15,966,000 912,100 893,400 518,600 344,400 212,800 5,600 186,032,800 123,931,700 48,175,300 16,340,900 930,300 915,500 669,300 347,800 221,400 5,700 191,537,900 127,606,800 49,574,200 15,457,000 949,000 942,000 961,100 351,300 230,300 5,700 196,077,400 Subtotal 3,231,417 5,806,922 900,000 9,938,339 3,333,600 5,271,700 900,000 9,505,300 3,439,100 4,715,000 900,000 9,054,100 3,549,300 4,336,300 900,000 8,785,600 3,680,700 3,946,300 900,000 8,527,000 189,224,714 190,257,800 195,086,900 200,323,500 204,604,400 Subtotal 2,562,368 461,336 71,691,018 5,393,197 876,665 489,202 (1,177,100) 16,191,921 96,488,607 2,596,300 481,700 74,796,300 5,662,900 894,200 498,900 (1,200,600) 16,683,000 100,412,700 2,687,500 503,800 78,482,200 5,946,000 912,200 509,100 (1,224,700) 17,180,000 104,996,100 2,785,400 523,400 81,456,500 6,243,300 930,200 521,600 (1,255,200) 17,693,300 108,898,500 2,878,800 543,000 83,737,900 6,555,500 948,900 534,500 (1,286,700) 18,569,100 112,481,000 Subtotal 4,592,700 6,208,406 20,230,664 31,031,770 4,605,100 7,405,000 21,001,400 33,011,500 7,516,700 21,028,600 28,545,300 7,009,300 15,969,200 22,978,500 7,129,100 16,027,700 23,156,800 127,520,377 133,424,200 133,541,400 131,877,000 135,637,800 3,231,417 47,243,247 700,809 8,668,113 59,843,586 3,333,600 34,500,600 5,188,200 8,752,800 51,775,200 3,439,100 44,924,400 542,400 9,009,800 57,915,700 3,549,300 54,906,600 239,100 9,274,000 67,969,000 3,680,700 51,991,500 131,200 9,482,700 65,286,100 187,363,963 185,199,400 191,457,100 199,846,000 200,923,900 Sources Over/(Under) Uses 1,860,751 5,058,400 3,629,800 477,500 3,680,500 Ending Fund Balance Operating Reserve Repair/Replacement Reserve Revenue Bond Debt Service Reserve Special Contractual Fund Balance Water Drought Reserve Undesignated, Unreserved Fund Balance Total Ending Fund Balance 19,567,970 46,239,707 4,604,688 845,335 3,000,000 74,257,700 23,517,910 47,348,167 4,604,688 845,335 3,000,000 79,316,100 26,037,284 48,458,593 4,604,688 845,335 3,000,000 82,945,900 30,000,304 49,577,761 845,335 3,000,000 83,423,400 30,981,442 52,277,123 845,335 3,000,000 87,103,900 Beginning Fund Balance Operating Reserve Repair/Replacement Reserve Revenue Bond Debt Service Reserve Special Contractual Fund Balance Water Drought Reserve Undesignated, Unreserved Fund Balance Total Beginning Fund Balance Revenues Water Service Charges Water Reclamation Service Charges Non-Potable Water Service Charges Indirect Costs Miscellaneous Interest Earnings Stormwater Fee Property Rental Contributions & Donations Transfers In AWT Debt Service RWDS Total Sources Expenditures City Treasurer Administrative Services Water Resources Citywide Indirect Cost Allocation Department Indirect Cost Fuel and Maint and Repair (a) Leave Accrual Payments Savings from Vacant Positions Utilities Debt Service CIP Sewer Revenue Bonds MPC Bonds Debt Service-Sewer MPC Bonds Debt Service-Water TOTAL OPERATING BUDGET Transfers Out AWT CIP CIP Technology Debt Service Fund (b) Franchise Fees Subtotal Total Uses (a) Initially budgeted at the division level. At the start of the fiscal year the budget will move to a macro level and then be transferred back to the division monthly as expenses occur. Beginning in FY 2020/21, a procedural change was implemented in the recording of debt service for water and sewer bonds. The procedural change was done for efficiency and has no impact on the cost of debt service or fund balance. (b) City of Scottsdale FY 2021/22 Adopted Budget - Volume One 193 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds 2SR4SXEFPI;EXIV7IVZMGI'LEVKIW *=XS*= MRQMPPMSRW 2SR4SXEFPI;EXIV7IVZMGI'LEVKIWVIZIRYIMRGPYHIW EHZERGIH[EXIVXVIEXQIRXERHIJJPYIRXWEPIWVIPEXIHXS[EXIV XVIEXIHXSMVVMKEXMSRWXERHEVHWEXXLIGMX]’W;EXIV6IGPEQEXMSR 4PERXJSVKSPJGSYVWIWMRRSVXL7GSXXWHEPIXLEXEVITEVXSJ XLI6IGPEMQIH;EXIV(MWXVMFYXMSR7]WXIQ 6;(7 ERHXLI GMX]’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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 195 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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’WMRZIWXQIRXTSPMG] WXVIWWIWWEJIX]EFSZI]MIPHERHEPPS[WMRZIWXQIRXWMR97 8VIEWYV]ERH%KIRG]SFPMKEXMSRWGIVXMJMGEXIWSJHITSWMX GSQQIVGMEPTETIVFEROIVW’ EGGITXERGIWVITYVGLEWI EKVIIQIRXWQSRI]QEVOIXJYRHWERHXLI7XEXISJ%VM^SRE’W 0SGEP+SZIVRQIRX-RZIWXQIRX4SSP 7XSVQ[EXIV*II *=XS*= MRQMPPMSRW 7XSVQ[EXIV*IIVIZIRYIJSV*=XSXEPWQMPPMSR 8LMWMWJPEX[LIRGSQTEVIHXSXLI*=EHSTXIHFYHKIX 8LMWVIZIRYIMWGSPPIGXIHXSWYTTSVX2EXMSREP4SPPYXERX (MWGLEVKI)PMQMREXMSR7]WXIQ 24()7 TIVQMXGSQTPMERGI GSWXW 196 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 197 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 199 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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’WMRHMVIGXGSWXWEVIEPPSGEXIHXSXLI)RXIVTVMWI*YRHW FEWIHYTSREGSQFMREXMSRSJVIPEXMZIFIRIJMXWVIGIMZIHERHXLI TVSTSVXMSRSJXLISZIVEPPSTIVEXMRKFYHKIXWJSVHMVIGXWIVZMGI TVSZMHIVW 200 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds (ITEVXQIRX-RHMVIGX'SWX *=XS*= MRQMPPMSRW 8LI*=EHSTXIHFYHKIXJSV(ITEVXQIRX-RHMVIGX'SWX MWQMPPMSR[LMGLMWJPEX[LIRGSQTEVIHXSXLI*= EHSTXIHFYHKIX8LMWFYHKIXQMVVSVWXLIFYHKIXERHEGXYEPW JVSQXLI-RHMVIGX'SWXWWSYVGIHIXEMPIHMRXLI7SYVGIWWIGXMSR 8LI(ITEVXQIRX-RHMVIGX'SWXVITVIWIRXWMRXIVREPGLEVKIW JVSQXLI6IGPEMQIH;EXIV(MWXVMFYXMSR7]WXIQ 6;(7 *YRH -RPIX7MPZIVEHS+SPJ'SYVWI*YRH-;(7*YRH1G(S[IPP 1SYRXEMR+SPJ6IGLEVKI*YRH+EMRI]6ERGL*YRHERH 4'<2+8**YRHJSVGIRXVEPSTIVEXMSRWYRHIVXLI;EXIVERH ;EXIV6IGPEQEXMSR*YRHW 2SR(MZMWMSREP9WIW 2SR(MZMWMSREP9WIWEVIMXIQWXLEX[IVIFYHKIXIHMRGMX][MHIQEGVSPIZIPLSPHMRKEGGSYRXW%WI\TIRHMXYVIWSGGYVMRXLIETTPMGEFPI HMZMWMSRWFYHKIXXVERWJIVWEVIGSQTPIXIHXSQSZIXLIRIIHIHFYHKIXJVSQXLIQEGVSPIZIPLSPHMRKEGGSYRXWXSXLIVIWTIGXMZI HMZMWMSRW8LIVIJSVIXLI*=EHSTXIHFYHKIXERHTVMSV]IEVW’ FYHKIXERHEGXYEPWXLEXEVIHMWTPE]IHMRXLIKVETLWEVIJSV GSQTEVMWSRTYVTSWIWSRP]EWXLII\TIRHMXYVIWEVIEGXYEPP]VIGSVHIHERHVITSVXIHEWTEVXSJXLIETTPMGEFPIHMZMWMSR’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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 201 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 203 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds '-4 *=XS*= MRQMPPMSRW '-4LEWEREHSTXIHFYHKIXSJQMPPMSRMREYXLSVM^IH XVERWJIVWXSXLI'-4*YRHXSTE]JSVKIRIVEP[EXIVERH[EXIV VIGPEQEXMSRGETMXEPTVSNIGXW)\EQTPIWSJTVSNIGXWMRGPYHIXLI QSHMJMGEXMSRERHMQTVSZIQIRXSJXLI1YPXM'MX]7YF6IKMSREP 3TIVEXMRK+VSYT 763+ JEGMPMX]IRLERGIQIRXW[EXIV HMWXVMFYXMSRERHXVIEXQIRXW]WXIQMQTVSZIQIRXWERHXLI VIGLEVKMRKSJVIKMSREPVIGLEVKIFEWMRW8LI'-48VERWJIVW3YX FYHKIXZEVMIWEGGSVHMRKXSXLI'-4TVSNIGXWFIMRKFYMPXIEGL ]IEV '-48IGLRSPSK] *=XS*= MRQMPPMSRW '-48IGLRSPSK]LEWEREHSTXIHFYHKIXSJQMPPMSRMR EYXLSVM^IHXVERWJIVWXSXLI'-4*YRHXSTE]JSVKIRIVEP[EXIV ERH[EXIVVIGPEQEXMSRXIGLRSPSK]TVSNIGXW8LIPEVKIXVERWJIV JSV*=VITVIWIRXWXLI;EXIVERH;EXIV6IGPEQEXMSR *YRHW TVSTSVXMSREXIWLEVISJJYRHMRKJSVXLI9XMPMX]&MPPMRK 1EREKIQIRX7]WXIQMQTPIQIRXEXMSRTVSNIGX (IFX7IVZMGI*YRH *=XS*= MRQMPPMSRW 8LI(IFX7IVZMGI*YRH[MXLMRXLI;EXIVERH;EXIV 6IGPEQEXMSR*YRHWEHSTXIHFYHKIXJSV*=MW QMPPMSRHYIXSETVSGIHYVEPGLERKIMQTPIQIRXIHMRXLI VIGSVHMRKJSV[EXIVERHWI[IVFSRHWMR*= ,MWXSVMGEPP](IFX7IVZMGI*YRH[EWERMRXIVREPXVERWJIVSJ14' &SRHWFIX[IIR[EXIVERH[EXIVVIGPEQEXMSRHIFXWIVZMGI JYRHWXSXLI;EXIVERH;EXIV6IGPEQEXMSR*YRHWXSFIXXIV EGGSYRXJSVHIFXWIVZMGITE]QIRXWVIPEXIHXS[EXIVERH[EXIV VIGPEQEXMSRGETMXEPTVSNIGXW City of Scottsdale FY 2021/22 Adopted Budget - Volume One 205 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds *VERGLMWI*IIW *=XS*= MRQMPPMSRW *VERGLMWI*IIWMWEXVERWJIVSJQMPPMSRJVSQXLI;EXIVERH ;EXIV6IGPEQEXMSR*YRHWXSXLI+IRIVEP*YRHJSVYWISJXLI GMX] WVMKLXSJ[E]WERHQIHMERW8LI;EXIV6IWSYVGIW (MZMWMSRMWXVIEXIHEWER]SXLIVYXMPMX][SYPHFIMRXLMWVIKEVH 8LIERRYEPGLEVKIMWJMZITIVGIRXSJ;EXIV7IVZMGIERH;EXIV 6IGPEQEXMSR'LEVKIWVIZIRYI ;EXIVERH;EXIV6IGPEQEXMSR*YRHW)RHMRK&EPERGI 8LI;EXIVERH;EXIV6IGPEQEXMSR*YRHWIRHMRKFEPERGIMRGPYHIWVIWIVZIW[LMGLTVSXIGXWXLIGMX]’WJMRERGMEPGSRHMXMSRERHTVSZMHI JSVYRI\TIGXIHIGSRSQMGGLEPPIRKIWE7TIGMEP'SRXVEGXYEP*YRH&EPERGIHIWMKREXMSRERHER9RVIWIVZIH9RHIWMKREXIH*YRH &EPERGI+VS[XLSJIRHMRKJYRHFEPERGISGGYVW[LIRWSYVGIWI\GIIHYWIW)RHMRKJYRHFEPERGIWEVIWMQMPEVXSEGSQTER]’WRIX IUYMX] EWWIXWPIWWPMEFMPMXMIW 4VYHIRXJMWGEPQEREKIQIRXHMGXEXIWJYRHFEPERGIWWLSYPHSRP]FIYWIHJSVRSRVIGYVVMRK RSR STIVEXMSREP YWIW3RGIJYRHFEPERGIWEVIWTIRXXLI]EVISRP]VITPIRMWLIHF]JYXYVI]IEVWSYVGIWMRI\GIWWSJYWIW8LIGMX]’W FYHKIXTPERRMRKFSRHMRHIRXYVIERHEHSTXIHJMRERGMEPTSPMGMIWGEPPJSVXLIIWXEFPMWLQIRXSJVIWIVZIWEWTEVXSJXLIVIWSYVGI EPPSGEXMSRPMQMXWIXXMRKTVSGIWW8LMWTVSGIWWEPPS[WXLIGMX]XSWIXEWMHIWEZMRKWFIJSVIEPPSGEXIHSVWTIRXEWFYHKIXIHYWIW8LI WTIGMJMGQEOIYTSJXLIGMX]’W;EXIVERH;EXIV6IGPEQEXMSR*YRHWFEPERGIMWEWJSPPS[W 3TIVEXMRK6IWIVZI *=XS*= MRQMPPMSRW 3TIVEXMRK6IWIVZISJQMPPMSRMWTVSNIGXIHJSVXLIIRHSJ *=8LMWVIWIVZIMWMRXIRHIHXSIRWYVIEHIUYEXI JYRHMRKJSVSTIVEXMSRWJSVEQMRMQYQSJHE]WERHE QE\MQYQTIVMSHSJHE]WEWHIXEMPIHMR*MRERGMEP4SPMG] 2S3TIVEXMRKVIWIVZIWWLEPPFIQEMRXEMRIHXSTVSZMHI GSRXMRKIRG]JYRHMRKERHYWIJPI\MFMPMX]MRXLIIZIRXSJ YRI\TIGXIHHIGPMRIWMRVIZIRYISVMRGVIEWIWMRGSWXW 206 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 207 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Solid Waste Fund BUDGET BY FUND | Solid Waste Fund Overview Fund Purpose This fund accounts for the transactions related to the city’s commercial and residential refuse, recycling, brush and bulk collections business activities. The operating sources and uses are accounted for in this fund while the capital expenditures are accounted for in a separate Solid Waste Capital Fund. The operating sources, uses and ending fund balance of the Solid Waste Fund are described in the following sections. Solid Waste Fund Sources (% to Total) $26.4 Million Solid Waste Fund Uses (% to Total) $27.1 Million Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 209 Table of Contents BUDGET BY FUND | Solid Waste Fund Summary A c t u al 2 0 1 9 /2 0 Adopted 2 0 2 0 /2 1 Forecast 2 0 2 0 /2 1 Adopted 2 0 2 1 /2 2 Beginning Fund Balance Operating Reserve Undesignated, Unreserved Fund Balance Total Beginning Fund Balance 5,548,995 1,680,778 7,229,773 5,199,352 567,336 5,766,688 5,214,439 986,361 6,200,800 4,073,551 3,109,151 7,182,702 Revenues Solid Waste Service Charges - Residential Solid Waste Service Charges - Commercial Interest Earnings Reimbursements from Outside Sources 19,446,731 3,203,348 144,292 - 21,900,739 3,418,223 128,882 - 21,900,739 3,418,223 128,882 42,400 23,181,765 3,190,296 48,936 - Subtotal 22,794,372 25,447,844 25,490,244 26,420,997 - - 871,645 - Subtotal - - 871,645 - 22,794,372 25,447,844 26,361,889 26,420,997 20,814,114 843,350 431,095 1,238,341 - 22,149,648 981,653 8,000 453,514 1,230,236 24,000 (311,538) - 20,631,576 975,151 8,000 453,514 1,230,236 1,468,226 14,068 24,578,488 1,030,834 8,000 1,210,226 25,760 (320,000) - 23,326,900 24,535,513 24,780,771 26,533,308 23,326,900 24,535,513 24,780,771 26,533,308 477,500 18,944 275,000 18,409 580,807 18,409 465,807 88,602 496,444 293,409 599,216 554,409 Total Uses 23,823,344 24,828,922 25,379,987 27,087,717 Sources Over/(Under) Uses (1,028,973) 618,922 981,902 (666,720) E n d i n g F u n d B al an c e Operating Reserve Undesignated, Unreserved Fund Balance T o t al E n d i n g F u n d B al an c e 5,214,439 986,361 6,200,800 4,033,235 2,352,375 6,385,610 4,073,551 3,109,151 7,182,702 4,361,640 2,154,342 6,515,982 Transfers In CIP (a) Total Sources Expenditures Public Works City Treasurer Administrative Services Citywide Direct Cost Allocation (b) Citywide Indirect Cost Allocation Fuel and Maint and Repair (c) Leave Accrual Payments Savings from Vacant Positions Utilities (c) Subtotal TOTAL OPERATING BUDGET Transfers Out CIP CIP Technology Subtotal (a) In FY 2020/21, savings were transferred from a Capital Improvement Plan (CIP) project that came in below the forecasted amount. Beginning in FY 2021/22, the Citywide Direct Cost Allocation from the Solid Waste Fund to the Transportation Fund will be elimiated. Alley Maintenance performed by the Transportation and Streets Department is no longer needed as residential collections will no longer occur in the alleyways. (c) Initially budgeted at the division level. At the start of the fiscal year the budget will move to a macro level and then be transferred back to the divisions monthly as expenses occur. (b) 210 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Solid Waste Fund Five-Year Financial Forecast Adopted 2 0 2 1 /2 2 Forecast 2 0 2 2 /2 3 Forecast 2 0 2 3 /2 4 Forecast 2 0 2 4 /2 5 Forecast 2 0 2 5 /2 6 Beginning Fund Balance Operating Reserve Undesignated, Unreserved Fund Balance Total Beginning Fund Balance 4,073,551 3,109,151 7,182,702 4,361,640 2,154,342 6,515,982 4,476,493 1,562,989 6,039,482 4,648,751 888,231 5,536,982 4,830,937 644,545 5,475,482 Revenues Solid Waste Service Charges - Residential Solid Waste Service Charges - Commercial Interest Earnings Reimbursements from Outside Sources 23,181,765 3,190,296 48,936 - 24,101,000 3,285,600 29,300 - 25,056,900 3,384,400 34,300 - 26,051,100 3,485,700 44,300 - 27,084,900 3,590,000 63,800 - Subtotal 26,420,997 27,415,900 28,475,600 29,581,100 30,738,700 - - - - - Subtotal - - - - - Total Sources 26,420,997 27,415,900 28,475,600 29,581,100 30,738,700 Expenditures Public Works City Treasurer Administrative Services Citywide Direct Cost Allocation Citywide Indirect Cost Allocation Fuel and Maint and Repair Leave Accrual Payments Savings from Vacant Positions Utilities 24,578,488 1,030,834 8,000 1,210,226 25,760 (320,000) - 25,190,900 1,062,600 8,000 1,270,700 26,200 (326,400) - 26,146,500 1,096,800 8,400 1,334,300 26,800 (332,900) - 27,159,400 1,132,800 8,800 1,401,000 27,500 (341,300) - 28,173,900 1,168,600 9,300 1,471,000 28,100 (349,800) - 26,533,308 27,232,000 28,279,900 29,388,200 30,501,100 26,533,308 27,232,000 28,279,900 29,388,200 30,501,100 465,807 88,602 450,800 209,600 630,800 67,400 225,000 29,400 217,800 16,200 554,409 660,400 698,200 254,400 234,000 Total Uses 27,087,717 27,892,400 28,978,100 29,642,600 30,735,100 Sources Over/(Under) Uses (666,720) (476,500) (502,500) (61,500) 3,600 E n d i n g F u n d B al an c e Operating Reserve Undesignated, Unreserved Fund Balance T o t al E n d i n g F u n d B al an c e 4,361,640 2,154,342 6,515,982 4,476,493 1,562,989 6,039,482 4,648,751 888,231 5,536,982 4,830,937 644,545 5,475,482 5,013,879 465,203 5,479,082 City of Scottsdale FY 2021/22 Adopted Budget - Volume One 211 Transfers In CIP Subtotal TOTAL OPERATING BUDGET Transfers Out CIP CIP Technology Subtotal Table of Contents BUDGET BY FUND | Solid Waste Fund 7SPMH;EWXI*YRH7SYVGIW Solid Waste Fund sources for FY 2021/22 equal $26.4 million which is an increase of $1.0 million from the FY 2020/21 adopted budget. The sources include Solid Waste Service Charges for both residential and commercial customers as well as Interest Earnings and occasionally Reimbursement from Outside Sources. 7SPMH;EWXI7IVZMGI'LEVKIW6IWMHIRXMEP *=XS*= MRQMPPMSRW 7SPMH;EWXI7IVZMGI'LEVKIW–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– 'SQQIVGMEPMRGPYHIWSPMH [EWXIWIVZMGIGLEVKIWJSVGSQQIVGMEPGYWXSQIVW'SQQIVGMEP GYWXSQIVWEVIGLEVKIHFEWIHYTSRXLIWM^ISJXLIGSRXEMRIV ERHXLIRYQFIVSJTMGOYTWTIVQSRXL3XLIV7SPMH;EWXI 7IVZMGI'LEVKIW'SQQIVGMEPVIZIRYIMRGPYHIWGSQQIVGMEP VSPPSJJGLEVKIWMRMXMEXMSRGLEVKIWPEXIGLEVKIWERH GSQQIVGMEPVIG]GPIHQEXIVMEPWJIIW*IIWERHGLEVKIWEVI VIZMI[IHERRYEPP]XSHIXIVQMRIMJXLI]GSZIVXLIGSWXWSJXLI WIVZMGIWTVSZMHIH8LI*=EHSTXIHFYHKIXMW QMPPMSREHIGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIX 212 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Solid Waste Fund -RXIVIWX)EVRMRKW *=XS*= -RXIVIWX)EVRMRKWVIZIRYIEHSTXIHJSV*=MW HIGVIEWMRKJVSQXLI*=EHSTXIHFYHKIX -RXIVIWXEEVRMRKWEVIKIRIVEXIHSRXLI7SPMH;EWXI*YRH GEWLFEPERGIXLVSYKLSYXXLI]IEV8LMWVIZIRYIMWEJYRGXMSR SJXLIVIPEXMSRWLMTFIX[IIRXLIEZEMPEFPIGEWLFEPERGIERH MRXIVIWXVEXI8LIGMX]IEVRWMRXIVIWXSRJYRHWXLVSYKLZEVMSYW MRZIWXQIRXZILMGPIWMREGGSVHERGI[MXL%VM^SRE6IZMWIH 7XEXYXIWERH'MX]3VHMRERGI8LIGMX]’WMRZIWXQIRXTSPMG] WXVIWWIWWEJIX]EFSZI]MIPH 6IMQFYVWIQIRXJVSQ3YXWMHI7SYVGIW *=XS*= Reimbursements from Outside Sources often represents an insurance recovery for damaged equipment. The adopted FY 2021/22 budget for Reimbursements from Outside Sources is $0.0 million as this revenue source is uncommon. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 213 Table of Contents BUDGET BY FUND | Solid Waste Fund 8VERWJIVW-R 8VERWJIVW-RMWXLIEYXLSVM^IHQSZIQIRXSJGEWLSVSXLIVVIWSYVGIWJVSQSXLIVJYRHW8LI*=7SPMH;EWXI*YRHEHSTXIH FYHKIXMWQMPPMSRMR8VERWJIVW-R '-4 *=XS*= MRQMPPMSRW FY 2020/21 Transfers In represent savings from a completed Capital Improvement Plan (CIP) project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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Solid Waste Fund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he Citywide Direct Cost Allocation represents charges for the direct cost of alley maintenance performed by the Street Operations Department for the benefit of Solid Waste operations. Beginning in FY 2021/22, the Citywide Direct Cost Allocation in the Transportation Fund will be eliminated. Alley Maintenance performed by the Transportation and Streets Department is no longer needed by Solid Waste Management as residential collections will no longer occur out of the alleyways. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 215 Table of Contents BUDGET BY FUND | Solid Waste Fund 'MX][MHI-RHMVIGX'SWX%PPSGEXMSR *=XS*= MRQMPPMSRW 'MX][MHI-RHMVIGX'SWX%PPSGEXMSRMRGPYHIWVIMQFYVWIQIRXXS XLI+IRIVEP*YRHJSVGIRXVEPM^IHWIVZMGIWTVSZMHIHXSXLI7SPMH ;EWXI*YRHJSVTE]VSPPEGGSYRXWTE]EFPILYQERVIWSYVGIW MRJSVQEXMSRXIGLRSPSK]GMX]EHQMRMWXVEXMSRIXG8LI*= EHSTXIHFYHKIXMWQMPPMSR[LMGLVIQEMRW VIPEXMZIP]JPEXXSXLI*=EHSTXIHFYHKIX 2SR(MZMWMSREP9WIW Non-Divisional Uses are items that were budgeted in citywide macro level holding accounts. As expenditures occur in the applicable divisions, budget transfers are completed to move the needed budget from the macro level holding accounts to the respective divisions. Therefore, the FY 2020/21 year-end forecast and prior years’ budget and actuals that are displayed in the graphs are for comparison purposes only as the expenditures are actually recorded and reported as part of the applicable division’s uses. Beginning in FY 2020/21 due to an administrative change, most non-divisional uses are initially placed into the divisions instead of at a macro level. Then moving the budget to a macro level holding account at the beginning of the fiscal year and completing budget transfers to move the needed budget back to the applicable divisions as expenditures occur. The administrative change is in an effort to have more meaningful year-over-year comparisons going forward. *YIPERH1EMRXERH6ITEMV *=XS*= MRQMPPMSRW &IKMRRMRKMR*=*YIPERH1EMRXERH6ITEMVMW FYHKIXIHEXXLIHMZMWMSRPIZIPERHXLIREXXLIFIKMRRMRKSJXLI JMWGEP]IEVMWQSZIHXSEQEGVSEGGSYRX&YHKIXMRKSRE QEGVSPIZIPMWEXSSPYWIHF]XLI&YHKIX(ITEVXQIRXXSQSVI EGGYVEXIP]XVEGOLS[I\TIRWIWEVISGGYVVMRKF]IEGLHMZMWMSR *YIPERH1EMRXIRERGIERH6ITEMVMRGPYHIWI\TIRWIWVIPEXIHXS ZILMGPIERHIUYMTQIRXVITEMVWERHJYIPYWEKI8LIEHSTXIH*= *YIPERH1EMRXERH6ITEMVMWFYHKIXIHEX6QMPPMSR EXXLIHMZMWMSRPIZIP 216 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Solid Waste Fund 0IEZI%GGVYEP4E]QIRXW *=XS*= 0IEZI%GGVYEP4E]QIRXWMRGPYHIEGGYQYPEXIHQIHMGEPERHSV ZEGEXMSRPIEZITEMHSYXEXXLIXMQISJVIXMVIQIRXSVWITEVEXMSR JVSQXLIGMX]*=PIEZIEGGVYEPTE]QIRXWFYHKIXSJ MRGPYHIWFYHKIXIHJSVQIHMGEPPIEZIEGGVYEP TE]SYXWERHFYHKIXIHJSVZEGEXMSRPIEZIEGGVYEP TE]SYXW8LI*=]IEVIRHJSVIGEWXERH*= *=EGXYEPWHMWTPE]IHEVIVIGSVHIHERHVITSVXIHEW TEVXSJXLIHMZMWMSR WI\TIRHMXYVIW 7EZMRKWJVSQ:EGERX4SWMXMSRW *=XS*= MRQMPPMSRW 8LIEQSYRXSJWEZMRKWIWXMQEXIHXSFIEGLMIZIHJVSQZEGERX TSWMXMSRW8LI*=7SPMH;EWXI*YRHIWXMQEXIJSV ZEGERG]WEZMRKWMW  QMPPMSR 9XMPMXMIW *=XS*= &IKMRRMRKMR*=9XMPMXMIWEVIFYHKIXIHEXXLIHMZMWMSR PIZIPERHXLIREXXLIFIKMRRMRKSJXLI]IEVEVIQSZIHXSE QEGVSEGGSYRX&YHKIXMRKSREQEGVSPIZIPMWEXSSPYWIHF] XLI&YHKIX(ITEVXQIRXXSQSVIEGGYVEXIP]XVEGOLS[ I\TIRWIWEVISGGYVVMRKF]IEGLHMZMWMSR9XMPMXMIWMRGPYHIGMX] I\TIRWIWSR[EXIVIPIGXVMGWI[IVKEWWSPMH[EWXIERH VIG]GPMRKWIVZMGIW8LI*=9XMPMXMIWFYHKIXMW [LMGLMWVIPEXMZIP]JPEXJVSQXLI*=EHSTXIHFYHKIX City of Scottsdale FY 2021/22 Adopted Budget - Volume One 217 Table of Contents BUDGET BY FUND | Solid Waste Fund 8VERWJIVW3YX 8VERWJIVW3YXEVIXLIEYXLSVM^IHQSZIQIRXSJGEWLXSSXLIVJYRHWERHSVGETMXEPTVSNIGXW '-4 *=XS*= MRQMPPMSRW The FY 2021/22 CIP Transfer Out of $0.5 million is to begin the Alley Conversion effort by replacing existing 300-gallon sized solid waste containers in residential alleys with new 90-gallon size trash containers that will be rolled to the front curb for service. '-48IGLRSPSK] *=XS*= CIP Technology includes $88,602 to help cover the Solid Waste Fund's portion of citywide technology capital projects during FY 2021/22. The large transfer amount in FY 2018/19 was for Mail Postage Inserter replacement equipment. The large transfer for FY 2022/23 represents the Solid Waste Fund's proportionate share of funding for the Utility Billing Management System implementation project. 218 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Solid Waste Fund 7SPMH;EWXI*YRH)RHMRK&EPERGI *YRHFEPERGIVIWIVZIWTVSXIGXXLIGMX]’WJMRERGMEPGSRHMXMSRERHTVSZMHIJSVYRI\TIGXIHIGSRSQMGGLEPPIRKIW+VS[XLSJJYRH FEPERGISGGYVW[LIRWSYVGIWI\GIIHYWIW4VYHIRXJMWGEPQEREKIQIRXHMGXEXIWJYRHFEPERGIWWLSYPHSRP]FIYWIHJSV RSRVIGYVVMRK RSRSTIVEXMSREP I\TIRHMXYVIW3RGIJYRHFEPERGIWEVIWTIRXXLI]EVISRP]VITPIRMWLIHF]JYXYVI]IEVWSYVGIWMR I\GIWWSJYWIW8LIGMX]’WFYHKIXTPERRMRKFSRHMRHIRXYVIERHEHSTXIHJMRERGMEPTSPMGMIWGEPPJSVXLIIWXEFPMWLQIRXSJVIWIVZIWEW TEVXSJXLIVIWSYVGIEPPSGEXMSRPMQMXWIXXMRKTVSGIWW8LMWTVSGIWWEPPS[WXLIGMX]XSWIXEWMHIWEZMRKWFIJSVIFIMRKEPPSGEXIHSV WTIRXEWFYHKIXIHI\TIRHMXYVIW8LIWTIGMJMGQEOIYTSJXLIGMX]’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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 219 Table of Contents 220 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Aviation Fund BUDGET BY FUND | Aviation Fund Overview Fund Purpose This fund accounts for the transactions related to the city’s aviation business activity at the Scottsdale Airport, which includes operating sources and uses. Capital expenditures are accounted for in a separate Aviation Capital Fund. Aviation Fund Sources (% to Total) $6.3 Million Aviation Fund Uses (% to Total) $5.8 Million Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 221 Table of Contents 02 - Adopted FY 2021-22 Aviation Fund BUDGET BY FUND | Aviation Fund Summary Ac t u a l 2019/ 20 Adopted 2020/ 21 Forecast 2020/ 21 Adopted 2021/ 22 1,275,500 486,420 1,736,045 6,066,268 9 ,5 6 4 ,2 3 3 905,384 521,563 1,601,016 3 ,0 2 7 ,9 6 3 940,227 520,652 1,601,016 351,172 3 ,4 1 3 ,0 6 7 1,010,500 498,660 1,846,467 1,336,142 4 ,6 9 1 ,7 6 9 Subtotal 5,164,241 178,051 128,197 184,597 16,983 5, 672, 069 5,391,621 176,467 175,000 151,861 5, 894, 949 5,881,621 176,467 125,000 151,861 6, 334, 949 5,935,079 177,348 150,000 59,026 6, 321, 453 Subtotal 824,099 824, 099 - - - 6 ,4 9 6 ,1 6 8 5 ,8 9 4 ,9 4 9 6 ,3 3 4 ,9 4 9 6 ,3 2 1 ,4 5 3 Subtotal 2,540,883 356,641 204,085 3, 101, 609 2,565,186 444,281 183,834 8,500 (26,107) 3, 175, 694 2,551,993 444,281 183,834 49,591 77,977 8,064 (15,210) 3, 300, 530 2,850,985 424,874 190,311 9,252 (35,000) 3, 440, 422 Subtotal 1,722,744 1, 722, 744 1,721,994 1, 721, 994 1,721,994 1, 721, 994 1,724,244 1, 724, 244 4,824,352 4,897,688 5,022,524 5,164,666 6,991,532 7,351 824,099 7, 822, 982 26,843 6,880 33, 723 26,843 6,880 33, 723 604,680 33,623 638, 303 Total Uses 1 2 ,6 4 7 ,3 3 4 4 ,9 3 1 ,4 1 1 5 ,0 5 6 ,2 4 7 5 ,8 0 2 ,9 6 9 Sources Over/(Under) Uses (6 , 1 5 1 , 1 6 6 ) 9 6 3 ,5 3 8 1 ,2 7 8 ,7 0 2 5 1 8 ,4 8 4 Ending Fund Balance Fleet Replacement Reserve Debt Service Reserve Operating Reserve Repair/Replacement Reserve Undesignated, Unreserved Fund Balance Total Ending Fund Balance 940,227 520,652 1,601,016 351,172 3 ,4 1 3 ,0 6 7 1,010,500 523,496 1,846,467 611,038 3 ,9 9 1 ,5 0 1 1,010,500 498,660 1,846,467 1,336,142 4 ,6 9 1 ,7 6 9 1,196,500 1,073,100 1,132,600 1,769,800 38,253 5 ,2 1 0 ,2 5 3 Beginning Fund Balance Fleet Replacement Reserve GO Debt Service Reserve - Non Preserve Operating Reserve Repair/Replacement Reserve Undesignated, Unreserved Fund Balance Total Beginning Fund Balance Revenues Airport Fees Property Rental Jet Fuel Interest Earnings Miscellaneous Transfers In Debt Svc MPC Bonds(a) Total Sources E x p e n di tu r e s Community and Economic Development Citywide Direct Cost Allocation Citywide Indirect Cost Allocation Fuel and Maint and Repair (b) Utilities (b) Leave Accrual Payments Savings from Vacant Positions D e b t Se r v i c e Contracts Payable TOTAL OPERATING BUDGET Transfers Out CIP CIP Technology Debt Svc MPC Bonds(a) Subtotal (a) Beginning in FY 2020/21, an accounting change was made to the reporting of debt service. Initially budgeted at the division level. At the start of the fiscal year the budget will move to a macro level and then be transferred back to the division monthly as expenses occur. (b) 222 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents 02 - Adopted FY 2021-22 Aviation Fund BUDGET BY FUND | Aviation Fund Five-Year Financial Forecast Adopted 2021/ 22 Forecast 2022/ 23 Forecast 2023/ 24 Forecast 2024/ 25 Forecast 2025/ 26 1,010,500 498,660 1,846,467 1,336,142 4 ,6 9 1 ,7 6 9 1,196,500 1,073,100 1,132,600 1,769,800 38,253 5 ,2 1 0 ,2 5 3 1,213,000 1,343,800 1,136,000 1,888,300 52,253 5 ,6 3 3 ,3 5 3 1,291,900 1,747,200 1,169,600 1,931,400 80,253 6 ,2 2 0 ,3 5 3 1,430,000 2,079,100 1,204,300 1,977,100 92,053 6 ,7 8 2 ,5 5 3 Subtotal 5,935,079 177,348 150,000 59,026 6, 321, 453 5,993,400 178,100 151,500 35,500 6, 358, 500 6,052,600 178,800 153,000 41,500 6, 425, 900 6,112,000 179,800 154,500 53,700 6, 500, 000 6,172,200 180,500 156,100 77,200 6, 586, 000 Subtotal - - - - - 6 ,3 2 1 ,4 5 3 6 ,3 5 8 ,5 0 0 6 ,4 2 5 ,9 0 0 6 ,5 0 0 ,0 0 0 6 ,5 8 6 ,0 0 0 Subtotal 2,850,985 424,874 190,311 9,252 (35,000) 3, 440, 422 2,832,900 446,100 199,800 9,500 (35,700) 3, 452, 600 2,903,700 468,400 209,800 9,600 (36,400) 3, 555, 100 2,977,200 491,800 220,300 9,800 (37,300) 3, 661, 800 3,050,200 516,400 231,300 10,100 (38,300) 3, 769, 700 Subtotal 1,724,244 1, 724, 244 1,719,200 1, 719, 200 1,722,200 1, 722, 200 1,722,700 1, 722, 700 1,720,700 1, 720, 700 5,164,666 5,171,800 5,277,300 5,384,500 5,490,400 604,680 33,623 638, 303 752,300 11,300 763, 600 536,100 25,500 561, 600 542,800 10,500 553, 300 500,700 4,800 505, 500 Total Uses 5 ,8 0 2 ,9 6 9 5 ,9 3 5 ,4 0 0 5 ,8 3 8 ,9 0 0 5 ,9 3 7 ,8 0 0 5 ,9 9 5 ,9 0 0 Sources Over/(Under) Uses 5 1 8 ,4 8 4 4 2 3 ,1 0 0 5 8 7 ,0 0 0 5 6 2 ,2 0 0 5 9 0 ,1 0 0 Ending Fund Balance Fleet Replacement Reserve Debt Service Reserve Operating Reserve Repair/Replacement Reserve Undesignated, Unreserved Fund Balance Total Ending Fund Balance 1,196,500 1,073,100 1,132,600 1,769,800 38,253 5 ,2 1 0 ,2 5 3 1,213,000 1,343,800 1,136,000 1,888,300 52,253 5 ,6 3 3 ,3 5 3 1,291,900 1,747,200 1,169,600 1,931,400 80,253 6 ,2 2 0 ,3 5 3 1,430,000 2,079,100 1,204,300 1,977,100 92,053 6 ,7 8 2 ,5 5 3 1,475,800 2,554,800 1,239,800 2,003,900 98,353 7 ,3 7 2 ,6 5 3 Beginning Fund Balance Fleet Replacement Reserve GO Debt Service Reserve - Non Preserve Operating Reserve Repair/Replacement Reserve Undesignated, Unreserved Fund Balance Total Beginning Fund Balance Revenues Airport Fees Property Rental Jet Fuel Interest Earnings Miscellaneous Transfers In Debt Svc MPC Bonds Total Sources E x p e n di tu r e s Community and Economic Development Citywide Direct Cost Allocation Citywide Indirect Cost Allocation Fuel and Maint and Repair Utilities Leave Accrual Payments Savings from Vacant Positions D e b t Se r v i c e Contracts Payable TOTAL OPERATING BUDGET Transfers Out CIP CIP Technology Debt Svc MPC Bonds Subtotal City of Scottsdale FY 2021/22 Adopted Budget - Volume One 223 Table of Contents BUDGET BY FUND | Aviation Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Aviation Fund .IX*YIP *=XS*= MRQMPPMSRW %NIXJYIPXE\SJGIRXWMWGLEVKIHXSIZIV]KEPPSRSJJYIP TYVGLEWIHEXXLIEMVTSVX8LIEHSTXIH*=.IX*YIP FYHKIXMWQMPPMSR[LMGLVIQEMRWJPEX[LIRGSQTEVIHXS XLI*=EHSTXIHFYHKIX -RXIVIWX)EVRMRKW *=XS*= -RXIVIWXIEVRMRKWEVIKIRIVEXIHSRMHPI%ZMEXMSR*YRHGEWL FEPERGIWXLVSYKLSYXXLI]IEV8LMWVIZIRYIMWEJYRGXMSRSJXLI VIPEXMSRWLMTFIX[IIRXLIEZEMPEFPIGEWLFEPERGIERHMRXIVIWX VEXI8LIGMX]IEVRWMRXIVIWXSRJYRHWXLVSYKLZEVMSYW MRZIWXQIRXZILMGPIWMREGGSVHERGI[MXL%VM^SRE6IZMWIH 7XEXYXIWERH'MX]3VHMRERGI8LIGMX]’WMRZIWXQIRXTSPMG] WXVIWWIWWEJIX]EFSZI]MIPH 1MWGIPPERISYW *=XS*= 1MWGIPPERISYWMRGPYHIWSXLIVX]TIWSJSRIXMQIVIZIRYIXLEX QE]SVQE]RSXFIVIGIMZIHIEGL]IEVWYGLEWXLI*= TVSGIIHWJVSQEREMVTSVXXVYGOWSPHEXEREYGXMSRERHXLI*= VIMQFYVWIQIRXJSVIPIGXVMGMX]GLEVKIWHYVMRK GSRWXVYGXMSRSJXLI%ZMEXMSR&YWMRIWW'IRXIV City of Scottsdale FY 2021/22 Adopted Budget - Volume One 225 Table of Contents BUDGET BY FUND | Aviation Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Aviation Fund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’WMRHMVIGXGSWXWEVI EPPSGEXIHXSXLI)RXIVTVMWI*YRHWFEWIHSRVIPEXMZIFIRIJMXW VIGIMZIH8LIGMX][MHIMRHMVIGXGSWXEPPSGEXMSRJSVXLI*= EHSTXIHFYHKIXMWQMPPMSR[LMGLVIQEMRWJPEX JVSQXLI*=EHSTXIHFYHKIX 2SR(MZMWMSREP9WIW 2SR(MZMWMSREP9WIWEVIMXIQWXLEX[IVIFYHKIXIHMRGMX][MHIQEGVSPIZIPLSPHMRKEGGSYRXW%WI\TIRHMXYVIWSGGYVMRXLIETTPMGEFPI HMZMWMSRWFYHKIXXVERWJIVWEVIGSQTPIXIHXSQSZIXLIRIIHIHFYHKIXJVSQXLIQEGVSPIZIPLSPHMRKEGGSYRXWXSXLIVIWTIGXMZI HMZMWMSRW8LIVIJSVIXLI*=]IEVIRHJSVIGEWXERHTVMSV]IEVW’ FYHKIXERHEGXYEPWXLEXEVIHMWTPE]IHMRXLIKVETLWEVIJSV GSQTEVMWSRTYVTSWIWSRP]EWXLII\TIRHMXYVIWEVIEGXYEPP]VIGSVHIHERHVITSVXIHEWTEVXSJXLIETTPMGEFPIHMZMWMSR’WYWIW &IKMRRMRKMR*=HYIXSEREHQMRMWXVEXMZIGLERKIQSWXRSRHMZMWMSREPYWIWEVIMRMXMEPP]TPEGIHMRXSXLIHMZMWMSRWMRWXIEHSJ EXEQEGVSPIZIP8LIRQSZMRKXLIFYHKIXXSEQEGVSPIZIPLSPHMRKEGGSYRXEXXLIFIKMRRMRKSJXLIJMWGEP]IEVERHGSQTPIXMRKFYHKIX XVERWJIVWXSQSZIXLIRIIHIHFYHKIXFEGOXSXLIETTPMGEFPIHMZMWMSRWEWI\TIRHMXYVIWSGGYV8LIEHQMRMWXVEXMZIGLERKIMWMRER IJJSVXXSLEZIQSVIQIERMRKJYP]IEVSZIV]IEVGSQTEVMWSRW City of Scottsdale FY 2021/22 Adopted Budget - Volume One 227 Table of Contents BUDGET BY FUND | Aviation Fund *YIPERH1EMRXERH6ITEMV *=XS*= MRQMPPMSRW &IKMRRMRKMR*=*YIPERH1EMRXERH6ITEMVEVI FYHKIXIHEXXLIHMZMWMSRPIZIPERHXLIREXXLIFIKMRRMRKSJXLI JMWGEP]IEVEVIQSZIHXSEQEGVSEGGSYRX&YHKIXMRKSRE QEGVSPIZIPMWEXSSPYWIHF]XLIFYHKIXHITEVXQIRXXSQSVI EGGYVEXIP]XVEGOLS[I\TIRWIWEVISGGYVVMRKF]IEGLHMZMWMSR *YIPERH1EMRXERH6ITEMVMRGPYHIWI\TIRWIWVIPEXIHXSZILMGPI ERHIUYMTQIRXVITEMVWERHJYIPYWEKI8LIEHSTXIH*= *YIPERH1EMRXERH6ITEMVMWFYHKIXIHEXQMPPMSR EXXLIHMZMWMSRPIZIP 9XMPMXMIW *=XS*= MRQMPPMSRW &IKMRRMRKMR*=9XMPMXMIWEVIFYHKIXIHEXXLIHMZMWMSR PIZIPERHXLIREXXLIFIKMRRMRKSJXLI]IEVEVIQSZIHXSE QEGVSEGGSYRX&YHKIXMRKSREQEGVSPIZIPMWEXSSPYWIHF] XLI&YHKIX(ITEVXQIRXXSQSVIEGGYVEXIP]XVEGOLS[ I\TIRWIWEVISGGYVVMRKF]IEGLHMZMWMSR9XMPMXMIWMRGPYHIGMX] I\TIRWIWSR[EXIVIPIGXVMGWI[IVKEWWSPMH[EWXIERH VIG]GPMRKWIVZMGIW8LI*=9XMPMXMIWFYHKIXMW QMPPMSR[LMGLVITVIWIRXWEHIGVIEWISJQMPPMSRJVSQXLI *=EHSTXIHFYHKIX 0IEZI%GGVYEP4E]QIRXW *=XS*= 8LIWITE]QIRXWMRGPYHIEGGYQYPEXIHQIHMGEPERHSVZEGEXMSR PIEZITEMHSYXEXXLIXMQISJVIXMVIQIRXSVWITEVEXMSRJVSQXLI GMX]*=PIEZIEGGVYEPTE]QIRXWSJMRGPYHI FYHKIXIHJSVQIHMGEPPIEZIEGGVYEPTE]SYXWERH FYHKIXIHJSVZEGEXMSRPIEZIEGGVYEPTE]SYXW8LI*= ]IEVIRHJSVIGEWXERH*=*=EGXYEPW HMWTPE]IHEVIVIGSVHIHERHVITSVXIHEWTEVXSJXLIHMZMWMSR W I\TIRHMXYVIW 228 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Aviation Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 229 Table of Contents BUDGET BY FUND | Aviation Fund 8VERWJIVW3YX 8VERWJIVW3YXEVIXLIEYXLSVM^IHQSZIQIRXSJGEWLXSSXLIVJYRHWERHSVGETMXEPTVSNIGXW1SVIWTIGMJMGMRJSVQEXMSRMWHIXEMPIH FIPS[ '-4 *=XS*= MRQMPPMSRW 8VERWJIVW3YX'-4EVIYWIHXSJYRHGETMXEPTVSNIGXWVIPEXIHXS XLI%MVTSVX8LI*='-4EHSTXIHFYHKIXMW QMPPMSR*=MRGPYHIWEXVERWJIVXSXLI'ETMXEP -QTVSZIQIRX4PER '-4 JSVXLIHIWMKRERHGSRWXVYGXMSRSJ EMVGVEJXFS\LERKEVWERHTEZIQIRXTVIWIVZEXMSREXXLIEMVTSVX XLEX[EWFYHKIXIHFYXRSXTVSGIWWIHMR*= '-48IGLRSPSK] *=XS*= '-48IGLRSPSK]MWXLIEYXLSVM^IHXVERWJIVXS'-4XSJYRH XIGLRSPSK]VIPEXIHGETMXEPTVSNIGXW8LI*=EHSTXIH FYHKIXMW (IFX7ZG14'&SRHW *=XS*= MRQMPPMSRW (IFX7ZG14'&SRHW[EWERMRXIVREPXVERWJIVFIX[IIREMVTSVX JYRHWXSVITE]XLIHIFXWIVZMGIJVSQXLI*=MWWYERGI SJ1YRMGMTEP'SVTSVEXMSR&SRHW 14' MRSVHIVXSJMRERGIXLI %MVTSVX8IVQMREP%VIE6IHIZIPSTQIRXGETMXEPMQTVSZIQIRX TVSNIGX&IKMRRMRKMR*=HYIXSEREGGSYRXMRKGLERKI QEHIXSXLIVITSVXMRKSJHIFXWIVZMGIXLIMRXIVREPXVERWJIV[MPP RSXSGGYV 230 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Aviation Fund %ZMEXMSR*YRH)RHMRK&EPERGI *YRHFEPERGITVSXIGXWXLIGMX]’WJMRERGMEPGSRHMXMSRERHTVSZMHIWJSVYRI\TIGXIHIGSRSQMGGLEPPIRKIW8LIGMX]’WFYHKIXTPERRMRK ERHEHSTXIHJMRERGMEPTSPMGMIWGEPPJSVXLIIWXEFPMWLQIRXSJVIWIVZIWEWTEVXSJXLIVIWSYVGIEPPSGEXMSRPMQMXWIXXMRKTVSGIWW8LMW TVSGIWWEPPS[WXLIGMX]XSWIXEWMHIWEZMRKWFIJSVIEPPSGEXIHSVWTIRXEWFYHKIXIHI\TIRHMXYVIW8LIWTIGMJMGQEOIYTSJXLIGMX]’W %ZMEXMSR*YRHIRHMRKFEPERGIERHVIWIVZIWEVIRSXIHMRXLIJSPPS[MRK *PIIX6ITPEGIQIRX6IWIVZI *=XS*= MRQMPPMSRW 8LI*PIIX6ITPEGIQIRX6IWIVZIMWMRXIRHIHXSIRWYVI EHIUYEXIJYRHMRKJSVXLIVITPEGIQIRXSJJMVIIUYMTQIRX WTIGMJMGXSJMVISTIVEXMSRWHIHMGEXIHXSXLIEMVTSVX8LI*= *PIIX6ITPEGIQIRX6IWIVZIIRHMRKJYRHFEPERGIMW QMPPMSR (IFX7IVZMGI6IWIVZI *=XS*= MRQMPPMSRW 8LI(IFX7IVZMGI6IWIVZI[EWIWXEFPMWLIHXSWIXEWMHIJYRHW JSVXLIVITE]QIRXSJHIFXWIVZMGI8LI(IFX7IVZMGI6IWIVZI JSV*=MWTVSNIGXIHEXQMPPMSR City of Scottsdale FY 2021/22 Adopted Budget - Volume One 231 Table of Contents BUDGET BY FUND | Aviation Fund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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Hashknife Pony Express Arrival Courtesy of the Scottsdale Historical Society and Scottsdale Public Library Table of Contents BUDGET BY FUND | Internal Service Funds Overview BUDGET BY FUND | Internal Service Funds Overview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’ FYHKIXW -RXIVREP7IVZMGI*YRHW7SYVGIW XS8SXEP  1MPPMSR -RXIVREP7IVZMGI*YRHW9WIW XS8SXEP 1MPPMSR Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 233 Table of Contents 234 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Healthcare Self Insurance Fund BUDGET BY FUND | Healthcare Self Insurance Fund Overview *YRH4YVTSWI 8LI,IEPXLGEVI7IPJ-RWYVERGI*YRHMWYWIHXSEGGSYRXJSVXLIGMX]’WWIPJMRWYVIHQIHMGEPERHHIRXEPFIRIJMXW6IZIRYIXSXLMWJYRHMW HIVMZIHJVSQTVIQMYQWGLEVKIHXSFSXLXLIGMX]ERHIQTPS]IIW8LITVIQMYQWEVIGSPPIGXIHJSVXLIGMX]’WTSVXMSRF]GLEVKMRKXLI HMZMWMSRWERHXLVSYKLTE]VSPPHIHYGXMSRWJSVXLIIQTPS]II’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ounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 235 Table of Contents BUDGET BY FUND | Healthcare Self Insurance Fund Summary Actual 2019/20 Adopted 2020/21 Forecast 2020/21 Adopted 2021/22 2,177,679 2,471,945 2,758,782 4,056,274 11,464,680 2,479,047 2,812,550 2,944,482 3,303,076 11,539,155 2,263,463 2,568,330 2,939,225 6,396,582 14,167,600 2,437,275 2,765,353 3,042,786 7,570,687 15,816,101 Subtotal 24,460,782 7,463,164 819,626 780,485 244,045 260,134 34,028,236 24,773,410 8,144,856 868,735 866,252 292,517 321,300 35,267,070 24,773,410 8,144,856 868,735 866,252 292,517 321,300 35,267,070 24,644,493 7,759,038 886,110 883,577 288,054 258,924 34,720,196 Subtotal 87,430 87,430 165,700 165,700 165,700 165,700 100,000 100,000 34,115,666 35,432,770 35,432,770 34,820,196 28,141,562 1,379,468 773,501 578,003 264,762 201,298 74,152 31,412,746 32,495,477 1,460,184 801,459 579,480 345,081 183,488 86,593 35,951,762 30,325,477 1,460,184 801,459 579,480 345,081 185,995 86,593 33,784,269 32,873,753 1,460,184 801,459 579,480 344,875 192,494 86,593 36,338,838 31,412,746 35,951,762 33,784,269 36,338,838 31,412,746 35,951,762 33,784,269 36,338,838 2,702,920 (518,992) 1,648,501 (1,518,642) Beginning Fund Balance IBNR Reserve Operating Contingency Premium Stabilization Reserve Undesignated, Unreserved Fund Balance Total Beginning Fund Balance Revenues Employer Contribution - Medical Employee Contributions - Medical Employer Contribution - Dental Employee Contributions - Dental Miscellaneous Disabled Retiree Contributions Transfers In Operating Total Sources Expenditures Medical Claims Dental Claims Insurance & Bond Premiums Administrative Fees Live Life Well Program City Administration Behavioral Health Insurance Claims Subtotal TOTAL OPERATING BUDGET Total Uses Sources Over/(Under) Uses (a) Ending Fund Balance IBNR Reserve 2,263,463 2,604,365 2,437,275 2,633,492 Operating Contingency 2,568,330 2,954,143 2,765,353 2,987,053 Premium Stabilization Reserve 2,939,225 3,042,786 3,042,786 2,995,596 6,396,582 2,418,869 7,570,687 5,681,318 Undesignated, Unreserved Fund Balance(a) Total Ending Fund Balance 14,167,600 11,020,163 15,816,101 14,297,459 (a) FY 2021/22 includes a premium holiday for both city and employee contributions. The premium holiday will be funded by the Undesignated, Unreserved Fund Balance. 236 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Healthcare Self Insurance Fund Five-Year Financial Forecast Adopted 2021/22 Forecast 2022/23 Forecast 2023/24 Forecast 2024/25 Forecast 2025/26 2,437,275 2,765,353 3,042,786 7,570,687 15,816,101 2,633,492 2,987,053 2,995,596 5,681,318 14,297,459 2,731,804 3,098,479 3,295,221 5,714,855 14,840,359 2,853,387 3,236,209 3,486,656 6,369,207 15,945,459 3,000,624 3,402,935 3,689,444 7,288,356 17,381,359 Subtotal 24,644,493 7,759,038 886,110 883,577 288,054 258,924 34,720,196 27,205,600 8,591,000 903,800 901,200 292,300 274,500 38,168,400 28,838,000 9,106,400 921,900 919,300 296,500 290,900 40,373,000 30,568,200 9,652,800 940,300 937,700 300,800 308,400 42,708,200 32,402,400 10,232,000 959,200 956,400 305,400 326,800 45,182,200 Subtotal 100,000 100,000 105,000 105,000 110,300 110,300 115,800 115,800 121,600 121,600 34,820,196 38,273,400 40,483,300 42,824,000 45,303,800 32,873,753 1,460,184 801,459 579,480 344,875 192,494 86,593 36,338,838 34,110,700 1,504,000 849,600 601,900 345,600 226,800 91,900 37,730,500 35,648,700 1,549,100 900,500 625,400 345,900 211,400 97,200 39,378,200 37,518,600 1,595,600 954,400 649,700 346,400 220,200 103,200 41,388,100 39,759,400 1,643,400 1,011,900 675,100 346,700 254,000 109,200 43,799,700 36,338,838 37,730,500 39,378,200 41,388,100 43,799,700 36,338,838 37,730,500 39,378,200 41,388,100 43,799,700 (1,518,642) 542,900 1,105,100 1,435,900 1,504,100 Beginning Fund Balance IBNR Reserve Operating Contingency Premium Stabilization Reserve Undesignated, Unreserved Fund Balance Total Beginning Fund Balance Revenues Employer Contribution - Medical Employee Contributions - Medical Employer Contribution - Dental Employee Contributions - Dental Miscellaneous Disabled Retiree Contributions Transfers In Operating Total Sources Expenditures Medical Claims Dental Claims Insurance & Bond Premiums Administrative Fees Live Life Well Program City Administration Behavioral Health Insurance Claims TOTAL OPERATING BUDGET Total Uses Sources Over/(Under) Uses (a) Subtotal Ending Fund Balance IBNR Reserve 2,633,492 2,731,804 2,853,387 3,000,624 3,176,512 Operating Contingency 2,987,053 3,098,479 3,236,209 3,402,935 3,602,044 Premium Stabilization Reserve 2,995,596 3,295,221 3,486,656 3,689,444 3,904,282 5,681,318 5,714,855 6,369,207 7,288,356 8,202,621 Undesignated, Unreserved Fund Balance(a) Total Ending Fund Balance 14,297,459 14,840,359 15,945,459 17,381,359 18,885,459 (a) FY 2021/22 includes a premium holiday for both city and employee contributions. The premium holiday will be funded by the Undesignated, Unreserved Fund Balance. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 237 Table of Contents BUDGET BUDGETBYBYFUND FUND| |Healthcare General Fund Self Insurance Ending Balance Fund Healthcare Self Insurance Fund Sources Healthcare Self Insurance Fund sources for FY 2021/22 equal $34.8 million, which is a decrease of $0.6 million from the FY 2020/21 adopted budget mostly due to a premium holiday for city and employee contributions. Sources include city and employee contributions for medical and dental premiums, Miscellaneous revenues, Public Safety Disabled Retiree Contributions, and Transfers In. Employer Contribution - Medical FY 2017/18 to FY 2023/24 (in millions) Employer Contribution - Medical represents the city's contribution towards employee healthcare premiums. The city's premium cost sharing varies for the four healthcare plans offered. The city contributes 80 percent of the employee only premium for the richest plan and 90 percent of the lowest cost plan. The FY 2021/22 adopted budget of $24.6 million represents a decrease of $0.2 million from the FY 2020/21 adopted budget due to a premium holiday for employer contributions. Employee Contributions - Medical FY 2017/18 to FY 2023/24 (in millions) Employee Contributions - Medical captures the employee portion of healthcare premiums collected through payroll deductions, and continuation of healthcare coverage (Consolidated Omnibus Budget Reconciliation Act - COBRA). The FY 2021/22 adopted budget of $7.8 million represents a decrease of $0.3 million from the FY 2020/21 adopted budget due to the premium holiday for employee contributions. 238 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Healthcare Self Insurance Fund Employer Contribution - Dental FY 2017/18 to FY 2023/24 (in millions) Employer Contribution - Dental is comprised of the city's contribution to the dental premiums. The city contributes 100 percent of the employee only premium cost for the Health Maintenance Organization (HMO) dental plan and 88 percent of the employee only portion of the premium cost for the Preferred Provider Organization (PPO) dental plan. The FY 2021/22 adopted budget of $0.9 million remains flat compared to the FY 2020/21 adopted budget. Employee Contributions - Dental FY 2017/18 to FY 2023/24 (in millions) Employee Contributions - Dental captures the employee portion of dental premiums collected through payroll deductions, as well as COBRA elections. The FY 2021/22 adopted budget of $0.9 million remains flat compared to the FY 2020/21 adopted budget. Miscellaneous FY 2017/18 to FY 2023/24 (in millions) Miscellaneous revenues include state subsidy contributions for qualifying employees as well as reimbursements on medical claims over the city's stop loss limit. The FY 2021/22 adopted budget of $0.3 million remains flat compared to the FY 2020/21 adopted budget. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 239 Exhibit "1" of Ordinance No. 4351 Page 7 of 14 Table of Contents BUDGET BUDGETBYBYFUND FUND| |Healthcare General Fund Self Insurance Ending Balance Fund Disabled Retiree Contributions FY 2017/18 to FY 2023/24 (in millions) Disabled Retiree Contributions captures the Public Safety disabled retiree healthcare premiums received through direct collections at the same rate as an active employee. The FY 2021/22 adopted budget of $0.3 million remains flat compared to the FY 2020/21 adopted budget. Transfers In Transfers In is the authorized movement of cash or other resources from other funds. Operating FY 2017/18 to FY 2023/24 (in millions) Operating includes a transfer in from the General Fund per City Council direction to subsidize the annual costs that exceeded premium collections for Public Safety disabled retirees. Total operating transfers in for FY 2021/22 is $0.1 million, which is $0.1 million lower than the FY 2020/21 adopted budget. Healthcare Self Insurance Fund Uses The direct operating expenditures of the Healthcare Self Insurance Fund include: Medical Claims, Dental Claims, Insurance & Bond Premiums, Administrative Fees, health related programs, and Behavioral Health Insurance Claims. 240 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Healthcare Self Insurance Fund Medical Claims FY 2017/18 to FY 2023/24 (in millions) Medical Claims includes all medical claims expenses for members of the plans, including employees and their families, COBRA participants, and Public Safety disabled retirees. The FY 2021/22 adopted budget of $32.9 million represents an increase of $0.4 million from the FY 2020/21 adopted budget mostly due to the increasing costs of healthcare. Dental Claims FY 2017/18 to FY 2023/24 (in millions) Dental Claims includes all dental claims expenses for members of the plans, including employees and their families and COBRA participants. The adopted FY 2021/22 budget is $1.5 million, which remains flat from the FY 2020/21 adopted budget. Insurance & Bond Premiums FY 2017/18 to FY 2023/24 (in millions) Insurance & Bond Premiums include the stop-loss insurance purchased to limit the city's exposure to large dollar claims. This type of coverage is used to ensure catastrophic claims do not upset the financial reserves of the self funded plan. The adopted FY 2021/22 budget of $0.8 million remains flat when compared to the FY 2020/21 adopted budget. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 241 Table of Contents BUDGET BUDGETBYBYFUND FUND| |Healthcare General Fund Self Insurance Ending Balance Fund Administrative Fees FY 2017/18 to FY 2023/24 (in millions) Administrative Fees are the costs incurred for administering the healthcare and dental plans. The FY 2021/22 adopted budget of $0.6 million is flat compared to the FY 2020/21 adopted budget. Live Life Well Program FY 2017/18 to FY 2023/24 (in millions) Live Life Well Program includes incentives to employees to encourage participation in various health and wellness events, challenges, activities, and classes. The FY 2021/22 adopted budget of $0.3 million includes $0.2 million for a wellness incentive to employees enrolled in a medical plan that complete an annual wellness exam and health assessment. City Administration FY 2017/18 to FY 2023/24 (in millions) The city's administrative expenses incurred are to coordinate healthcare, behavioral, dental, and wellness plans. The adopted FY 2021/22 budget of $0.2 million remains flat compared to the FY 2020/21 adopted budget. 242 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Healthcare Self Insurance Fund Behavioral Health Insurance Claims FY 2017/18 to FY 2023/24 (in millions) Behavioral Health Insurance Claims includes all behavioral claims expenses. The FY 2021/22 adopted budget of $0.1 million remains flat compared to the FY 2020/21 adopted budget. Healthcare Self Insurance Ending Fund Balance The Healthcare Self Insurance Fund ending balance is maintained to provide for coverage of self insured benefits. The Healthcare Self Insurance Fund has three different reserves: IBNR (incurred but not reported) Reserve, Operating Contingency, and Premium Stabilization Reserve. The Healthcare Self Insurance Fund also includes an Undesignated, Unreserved Fund Balance. IBNR Reserve FY 2017/18 to FY 2023/24 (in millions) Reserve for incurred but not reported (IBNR) claims. The IBNR Reserve represents the liability that occurs for claims incurred but paid after the end of a fiscal year and it is calculated as the sum of 7.7 percent of Medical Claims and seven percent of Dental Claims. The projected FY 2021/22 IBNR Reserve is $2.6 million, which is flat compared to the FY 2020/21 adopted budget. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 243 Table of Contents BUDGET BUDGETBYBYFUND FUND| |Healthcare General Fund Self Insurance Ending Balance Fund Operating Contingency FY 2017/18 to FY 2023/24 (in millions) Contingency funds are utilized only after all other budget options have been considered and require City Council approval. The Operating Contingency is calculated as 8.7 percent of Medical and Dental Claims. The FY 2021/22 adopted budget is $3.0 million. Premium Stabilization Reserve FY 2017/18 to FY 2023/24 (in millions) The purpose of Premium Stabilization Reserve is to ensure revenue from premiums exceed medical and dental claims, and administrative expenses paid by the healthcare plan. The Premium Stabilization Reserve is calculated as 8.7 percent of the employer and employee contributions. The FY 2021/22 adopted budget is $3.0 million. Undesignated, Unreserved Fund Balance FY 2017/18 to FY 2023/24 (in millions) The Undesignated, Unreserved Fund Balance accounts for any remaining funds after the designation of all other reserves/uses. Under prudent fiscal management practices, this balance should most appropriately be used for one-time uses, not to fund new or expand programs with ongoing operating expenses. The FY 2021/22 premium holiday for both city and employee medical contributions will be funded by the Undesignated, Unreserved Fund Balance. The FY 2021/22 ending Undesignated, Unreserved Fund Balance is $5.7 million. 244 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Fleet Management Fund BUDGET BY FUND | Fleet Management Fund Overview *YRH4YVTSWI 8LMWJYRHMWYWIHXSEGGSYRXJSVXLII\TIRHMXYVIWEWWSGMEXIH[MXLTYVGLEWMRKERHQEMRXEMRMRKXLIGMX]’WIUYMTQIRXERH ZILMGPIW6ITPEGIQIRXERHSTIVEXMSRSJIUYMTQIRXERHZILMGPIWEVIGLEVKIHXSXLIGMX]HMZMWMSRWEWMRXIVREPSTIVEXMRKGSWXW FEWIHSRXLIUYERXMX]ERHX]TISJIUYMTQIRXERHZILMGPIWYWIH8LIHMZMWMSRGLEVKIWFIGSQIVIZIRYIXSXLI*PIIX 1EREKIQIRX*YRH *PIIX1EREKIQIRX*YRH7SYVGIW XS8SXEP  1MPPMSR *PIIX1EREKIQIRX*YRH9WIW XS8SXEP 1MPPMSR Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 245 Table of Contents BUDGET BY FUND | Fleet Management Fund Summary A c t u al 2019/20 Ad op te d 2020/21 F o r e c as t 2020/21 Ad op te d 2021/22 6,037,739 750,000 2,314,665 9 ,1 0 2 ,4 0 4 8,062,599 8 ,0 6 2 ,5 9 9 8,052,709 8 ,0 5 2 ,7 0 9 9,850,219 9 ,8 5 0 ,2 1 9 9,734,421 9,295,700 2,928,762 777,593 544,415 5,951,625 8,023,791 3,541,229 490,000 462,877 5,951,625 8,023,791 3,541,229 2,185,629 462,877 10,038,360 8,972,196 3,646,872 514,500 467,884 23,280,891 18,469,522 20,165,151 23,639,812 2 3 ,2 8 0 ,8 9 1 1 8 ,4 6 9 ,5 2 2 2 0 ,1 6 5 ,1 5 1 2 3 ,6 3 9 ,8 1 2 507,961 8,721,862 627,339 2,677,975 28,501 9,626,243 - 499,315 8,043,166 623,477 3,541,229 32,268 6,574,849 24,000 - 369,009 7,884,219 687,744 3,541,530 20,037 4,998,871 63,921 - 671,357 8,728,422 768,987 3,542,162 60,828 15,650,037 26,945 (170,000) 22,189,881 19,338,304 17,565,331 29,278,738 22,189,881 19,338,304 17,565,331 29,278,738 2,122,649 18,057 1,756,178 16,533 785,777 16,533 780,000 76,064 2,140,706 1,772,711 802,310 856,064 T o t al U s e s 2 4 ,3 3 0 ,5 8 7 2 1 ,1 1 1 ,0 1 5 1 8 ,3 6 7 ,6 4 1 3 0 ,1 3 4 ,8 0 2 S o u r c e s O v e r / ( Un d e r ) Us e s (1 ,0 4 9 ,6 9 5 ) (2 ,6 4 1 ,4 9 3 ) 1 ,7 9 7 ,5 1 0 (6 ,4 9 4 ,9 9 0 ) 6,910,195 729,498 413,016 8 ,0 5 2 ,7 0 9 825,000 4,596,106 5 ,4 2 1 ,1 0 6 746,270 9,103,949 9 ,8 5 0 ,2 1 9 3,355,229 3 ,3 5 5 ,2 2 9 B e g i n n i n g F u n d B al an c e Designated For Future Acquisition Operating Contingency Undesignated, Unreserved Fund Balance (a) T o t al B e g i n n i n g F u n d B al an c e R e ve nue s Vehicle Acquisitions Maintenance & Operations Fuel Reimbursements from Outside Sources (b) Miscellaneous Subtotal T o t al S o u r c e s Ex p e n d i t u r e s Fleet Management Administration Fleet Management Operations Fleet Management Parts Supply Fuel Motorpool Vehicle Acquisitions (c) Fuel and Maint and Repair (d) Leave Accrual Payments Savings from Vacant Positions Subtotal TOTAL OPERATING BUDGET T r an s f e r s O u t CIP CIP Technology Subtotal E n d i n g F u n d B al an c e Designated For Future Acquisition (e) Operating Contingency Undesignated, Unreserved Fund Balance (a) T o t al E n d i n g F u n d B al an c e (a) Beginning in FY 2020/21, the Designated For Future Acquisition and Operating Contingency are consolidated into the Undesignated, Unreserved Fund Balance. (b) Reimbursements from Outside Sources includes an insurance payment in Forecast FY 2020/21 for damaged vehicles due to a fire in January 2021. (c) FY 2021/22 includes vehicle acquisition deferrals from FY 2020/21. Additionally, manufacturing cutbacks and parts shortages caused a delay in deliveries, therefore many scheduled vehicle purchases will now take place in FY 2021/22. (d) Initially budgeted at the division level. At the start of the fiscal year the budget will move to a macro level and then be transferred back to the division monthly as expenses occur. (e) FY 2020/21 Operating Contingency was used for increased Maintenance and Repair costs due to Vehicle Acquisition deferrals. 246 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Fleet Management Fund Five-Year Financial Forecast Ad op te d 2021/22 F o r e c as t 2022/23 F o r e c as t 2023/24 F o r e c as t 2024/25 F o r e c as t 2025/26 9,850,219 9 ,8 5 0 ,2 1 9 3,355,229 3 ,3 5 5 ,2 2 9 3,389,329 3 ,3 8 9 ,3 2 9 3,580,329 3 ,5 8 0 ,3 2 9 4,033,329 4 ,0 3 3 ,3 2 9 10,038,360 8,972,196 3,646,872 514,500 467,884 11,430,100 9,869,000 3,822,500 540,200 468,400 11,836,300 10,314,400 4,005,700 567,200 468,900 12,256,300 10,780,600 4,197,300 595,600 469,400 12,691,200 11,267,800 4,399,000 625,400 469,400 23,639,812 26,130,200 27,192,500 28,299,200 29,452,800 2 3 ,6 3 9 ,8 1 2 2 6 ,1 3 0 ,2 0 0 2 7 ,1 9 2 ,5 0 0 2 8 ,2 9 9 ,2 0 0 2 9 ,4 5 2 ,8 0 0 671,357 8,728,422 768,987 3,542,162 60,828 15,650,037 26,945 (170,000) 702,600 9,050,000 803,100 3,633,400 67,500 11,457,800 27,500 (173,400) 732,500 9,345,600 835,800 3,726,800 70,300 11,877,000 28,000 (176,900) 757,000 9,649,300 869,900 3,823,400 73,100 12,300,500 28,800 (181,300) 777,600 9,951,800 904,900 3,922,900 76,200 12,739,300 29,400 (185,800) 29,278,738 25,568,500 26,439,100 27,320,700 28,216,300 29,278,738 25,568,500 26,439,100 27,320,700 28,216,300 780,000 76,064 500,000 27,600 500,000 62,400 500,000 25,500 500,000 12,900 856,064 527,600 562,400 525,500 512,900 T o t al U s e s 3 0 ,1 3 4 ,8 0 2 2 6 ,0 9 6 ,1 0 0 2 7 ,0 0 1 ,5 0 0 2 7 ,8 4 6 ,2 0 0 2 8 ,7 2 9 ,2 0 0 S o u r c e s O v e r / ( Un d e r ) Us e s (6 ,4 9 4 ,9 9 0 ) 3 4 ,1 0 0 1 9 1 ,0 0 0 4 5 3 ,0 0 0 7 2 3 ,6 0 0 E n d i n g F u n d B al an c e Designated For Future Acquisition Operating Contingency Undesignated, Unreserved Fund Balance T o t al E n d i n g F u n d B al an c e 3,355,229 3 ,3 5 5 ,2 2 9 3,389,329 3 ,3 8 9 ,3 2 9 3,580,329 3 ,5 8 0 ,3 2 9 4,033,329 4 ,0 3 3 ,3 2 9 4,756,929 4 ,7 5 6 ,9 2 9 B e g i n n i n g F u n d B al an c e Designated For Future Acquisition Operating Contingency Undesignated, Unreserved Fund Balance T o t al B e g i n n i n g F u n d B al an c e R e ve nue s Vehicle Acquisitions Maintenance & Operations Fuel Reimbursements from Outside Sources (a) Miscellaneous Subtotal T o t al S o u r c e s Ex p e n d i t u r e s Fleet Management Administration Fleet Management Operations Fleet Management Parts Supply Fuel Motorpool Vehicle Acquisitions (b) Fuel and Maint and Repair (c) Leave Accrual Payments Savings from Vacant Positions Subtotal TOTAL OPERATING BUDGET T r an s f e r s O u t CIP CIP Technology Subtotal (a) Reimbursements from Outside Sources includes an insurance payment in Forecast FY 2020/21 for damaged vehicles due to a fire in January 2021. FY 2021/22 includes vehicle acquisition deferrals from FY 2020/21. Additionally, manufacturing cutbacks and parts shortages caused a delay in deliveries, therefore many scheduled vehicle purchases will now take place in FY 2021/22. (c) Initially budgeted at the division level. At the start of the fiscal year the budget will move to a macro level and then be transferred back to the division monthly as expenses occur. (b) City of Scottsdale FY 2021/22 Adopted Budget - Volume One 247 Table of Contents BUDGET BY FUND | Fleet Management Fund *PIIX1EREKIQIRX*YRH7SYVGIW Fleet Management Sources for FY 2021/22 equal $23.6 million which is an increase of $5.2 million from the FY 2020/21 adopted budget. The Fleet Management Fund includes revenue from rates charged to city division as internal operating costs for Vehicle Acquisitions, Maintenance & Operations, and Fuel. Reimbursements from Outside Sources and Miscellaneous are also revenue received in the fund. :ILMGPI%GUYMWMXMSRW FY 2017/18 to FY 2023/24 (in millions) Vehicle Acquisitions represents the replacement fees charged to divisions sufficient for the acquisition and replacement of city vehicles and equipment. The amount collected is to ensure sufficient funding exists for vehicle/equipment acquisition and replacement while also considering future needs. The goal is to minimize large projected increases/ decreases each year for the replacement fees charged to the divisions. Vehicle Acquisition rates make up 43 percent of the FY 2021/22 sources at $10.0 million, which is an increase of about $4.1 million from the FY 2020/21 adopted budget. The increase is due to a deferment of the replacement of nonessential vehicles and equipment in FY 2020/21 and to return the budget to prior year levels of acquisition. 1EMRXIRERGI 3TIVEXMSRW FY 2017/18 to FY 2023/24 (in millions) Maintenance & Operations sources originate from charges to other city divisions based on the usage of city vehicles and equipment. The Maintenance & Operations revenue for FY 2021/22 totals $9.0 million, which is an increase of $1.0 million from the FY 2020/21 adopted budget. The increase is due to returning the budget to prior year levels of Maintenance & Operations as the trolley service, with the exception of one route, has resumed. 248 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Fleet Management Fund *YIP FY 2017/18 to FY 2023/24 (in millions) Fuel represents the charges to other city divisions based on the fuel consumption of city vehicles and equipment. Rates are determined based on historical data as well as forecasted future consumption. Included in this methodology are local and national fuel cost trends. The FY 2021/22 adopted budget is $3.6 million, which is an increase of $0.1 million when compared to the FY 2020/21 adopted budget. 6IMQFYVWIQIRXWJVSQ3YXWMHI7SYVGIW FY 2017/18 to FY 2023/24 (in millions) Reimbursement from Outside Sources revenue is generated from any insurance recoveries received and reimbursements for fuel taxes and vehicle parts. Reimbursements from Outside Sources is budgeted at $0.5 million for FY 2021/22, which is flat from the FY 2020/21 adopted budget. 1MWGIPPERISYW FY 2017/18 to FY 2023/24 (in millions) Miscellaneous is generated from the liquidation of surplus property. The FY 2021/22 adopted budget is $0.5 million, which is flat when compared to the FY 2020/21 adopted budget. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 249 Table of Contents BUDGET BY FUND | Fleet Management Fund *PIIX1EREKIQIRX*YRH9WIW Fleet Management Uses for FY 2021/22 equal $30.1 million which is an increase of $9.0 million from the FY 2020/21 adopted budget. The increase will not be passed on to the divisions through internal service charges in an effort to bring the Undesignated, Unreserved Fund Balance to a more appropriate level. The direct operating uses for the Fleet Management Fund are summarized below by Fleet Management Administration, Fleet Management Operations, Fleet Management Parts Supply, Fuel, Motorpool, and Vehicle Acquisitions. *PIIX1EREKIQIRX%HQMRMWXVEXMSR FY 2017/18 to FY 2023/24 (in millions) Fleet Management Administration includes all costs related to supporting the management and administrative personnel that are dedicated to directing and overseeing the fleet operation of the city. The FY 2021/22 adopted budget is $0.7 million, which is an increase of $0.2 million from the FY 2020/21 adopted budget. *PIIX1EREKIQIRX3TIVEXMSRW FY 2017/18 to FY 2023/24 (in millions) Fleet Management Operations includes costs related to supporting technical personnel that perform the maintenance and repair functions of the city’s fleet operation, the funding for replacement parts, and the use of outside vendors when necessary. The FY 2021/22 adopted budget of $8.7 million is a $0.7 million increase over the FY 2020/21 adopted budget. The increase is due to returning the budget to prior year levels of Maintenance & Operations as the trolley service, with the exception of one route, has resumed. 250 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Fleet Management Fund *PIIX1EREKIQIRX4EVXW7YTTP] FY 2017/18 to FY 2023/24 (in millions) Fleet Management Parts Supply includes all costs related to supporting the specialized personnel that are dedicated to maintaining the parts segment of the city’s fleet operation, as well as the costs of all required supplies and tools. The FY 2021/22 adopted budget is $0.8 million, which is an increase of $0.1 million from the FY 2020/21 adopted budget. *YIP FY 2017/18 to FY 2023/24 (in millions) Fuel includes all costs related to the purchase of fuel, as well as costs for equipment, maintenance and services necessary to maintain the provision of fuel in the city’s fleet operation. The FY 2021/22 adopted budget is $3.5 million, which is flat when compared to the FY 2020/21 adopted budget. 1SXSVTSSP FY 2017/18 to FY 2023/24 Motorpool includes all costs related to the care of the city’s motorpool vehicles including fuel and maintenance. The FY 2021/22 adopted budget of $60,828 is a $28,560 increase to the FY 2020/21 adopted budget. The increase is due to the addition of fleet replacement expenses for motorpool vehicles. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 251 Table of Contents BUDGET BY FUND | Fleet Management Fund :ILMGPI%GUYMWMXMSRW FY 2017/18 to FY 2023/24 (in millions) Vehicle Acquisitions include all costs related to the purchase or replacement of vehicles within the city's fleet. The FY 2021/22 adopted budget of $15.7 million is a $9.1 million increase from the FY 2020/21 adopted budget due to the deferment of replacement of non-essential vehicles and equipment from FY 2020/21. 2SR(MZMWMSREP9WIW Non-Divisional Uses are items budgeted in citywide macro level holding accounts. As expenditures occur in the applicable divisions, budget transfers are completed to move the needed budget from the macro level holding accounts to the respective divisions. Therefore, the FY 2020/21 year-end forecast and prior years’ budget and actuals that are displayed in the graphs are for comparison purposes only as the expenditures are actually recorded and reported as part of the applicable division’s uses. Beginning in FY 2020/21 due to an administrative change, most non-divisional uses are initially placed into the divisions instead of at a macro level. Then moving the budget to a macro level holding account at the beginning of the fiscal year and completing budget transfers to move the needed budget back to the applicable divisions as expenditures occur. The administrative change is in an effort to have more meaningful year-over-year comparisons going forward. *YIPERH1EMRXERH6ITEMV FY 2017/18 to FY 2023/24 Beginning in FY 2019/20, Fuel and Maint and Repair are budgeted at the division level and then at the beginning of the fiscal year are moved to a macro account. Budgeting on a macro level is a tool used by the budget department to more accurately track how expenses are occurring by each division. Fuel and Maint and Repair includes expenses related to vehicle and equipment repairs and fuel usage. The adopted FY 2021/22 Fuel and Maint and Repair is budgeted at $0.2 million at the division level. 252 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Fleet Management Fund 0IEZI%GGVYEP4E]QIRXW FY 2017/18 to FY 2023/24 These payments include accumulated medical and/or vacation leave paid out at the time of retirement or separation from the city. FY 2021/22 leave accrual payments of $26,945 include $10,000 budgeted for medical leave accrual payouts and $16,945 budgeted for vacation leave accrual payouts. The FY 2020/21 year-end forecast and FY 2017/18 - FY 2019/20 actuals displayed are recorded and reported as part of the division's expenditures. 7EZMRKWJVSQ:EGERX4SWMXMSRW FY 2017/18 to FY 2023/24 The amount of savings achieved from vacant positions for FY 2021/22 is estimated at ($0.2) million. The FY 2020/21 savings were already accounted for in the citywide effort to delay filling of vacant positions until January 2021. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 253 Table of Contents BUDGET BY FUND | Fleet Management Fund 8VERWJIVW3YX Transfers Out are the authorized movement of cash to other funds and/or capital projects. Fleet Management Transfers Out for FY 2021/22 equal $0.9 million which is a decrease of $0.9 million from the FY 2020/21 adopted budget as the Fleet Fuel Site Upgrade Capital Improvement Plan (CIP) project has been completed. '-4 FY 2017/18 to FY 2023/24 (in millions) The FY 2021/22 CIP adopted budget of $0.8 million will be primarily used to fund capital projects that include implementing electric vehicle (EV) infrastructure in anticipation of the addition of electric vehicles to the city fleet as well as fleet management software with technology that will provide vehicle life cycles, maintenance and operations monitoring. '-48IGLRSPSK] FY 2017/18 to FY 2023/24 The CIP Technology budget of $76,064 is planned to help cover Fleet Management's portion of citywide technology capital projects during FY 2021/22 including the Enterprise Resource Planning (ERP) System implementation project. 254 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Fleet Management Fund *PIIX1EREKIQIRX*YRH)RHMRK&EPERGI Fund balance protects the city’s financial condition and provides for unexpected economic challenges. Growth of fund balance occurs when sources exceed uses. The city’s budget planning and adopted financial policies call for the establishment of reserves as part of the resource allocation/limit setting process. This process allows the city to set aside savings before allocated or spent as budgeted expenditures. Beginning in FY 2020/21, a procedural change was enacted to include Designated for Future Acquisitions in the Undesignated, Unreserved Fund Balance. In FY 2021/22, Operating Contingency was eliminated based on the lack of historical use. (IWMKREXIH*SV*YXYVI%GUYMWMXMSR FY 2017/18 to FY 2023/24 (in millions) The Designated for Future Acquisition was a reserve driven primarily by the city's vehicle and equipment replacement schedule. Beginning in FY 2020/21, the Designated for Future Acquisition is consolidated into the Undesignated, Unreserved Fund Balance. 3TIVEXMRK'SRXMRKIRG] FY 2017/18 to FY 2023/24 (in millions) The Operating Contingency was established to provide contingency funding and use flexibility in the event of unforeseen circumstances. Beginning in FY 2021/22, Operating Contingency was eliminated based on the lack of historical use. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 255 Table of Contents BUDGET BY FUND | Fleet Management Fund 9RHIWMKREXIH9RVIWIVZIH*YRH&EPERGI FY 2017/18 to FY 2023/24 (in millions) Undesignated, Unreserved Fund Balance accounts for any funds remaining after the designation of all other reserves/ uses. The FY 2021/22 ending undesignated, unreserved fund balance is $3.4 million. The current year balance is $1.2 million less than the FY 2020/21 adopted budget. The decrease is the result from an intentional reduction in Vehicle Acquisition rates charged to divisions as an effort to bring the Undesignated, Unreserved Fund Balance to a more appropriate level. 256 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Risk Management Fund BUDGET BY FUND | Risk Management Fund Overview *YRH4YVTSWI 8LI6MWO1EREKIQIRX*YRHMWYWIHXSEGGSYRXJSVXLIGMX]’WWIPJMRWYVERGIWEJIX]ERHVMWOQEREKIQIRXJYRGXMSRW6IZIRYI XSXLMWJYRHMWHIVMZIHJVSQMRXIVREPGLEVKIWXSGMX]HMZMWMSRWERHMWGETXYVIHEWMRXIVREPVEXIW4E]QIRXWJSVYRIQTPS]QIRX [SVOIVW’ GSQTIRWEXMSRERHTVSTIVX]ERHPMEFMPMX]GPEMQWEVIQEHIJVSQXLMWJYRH 6MWO1EREKIQIRX*YRH7SYVGIW XS8SXEP  1MPPMSR 6MWO1EREKIQIRX*YRH9WIW XS8SXEP 1MPPMSR Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 257 Table of Contents BUDGET BY FUND | Risk Management Fund Summary Actual 2019/20 Adopted 2020/21 Forecast 2020/21 Adopted 2021/22 Beginning Fund Balance Operating Contingency Operating Reserve Total Beginning Fund Balance 2,500,000 19,685,252 22, 185, 252 2,500,000 19,775,391 22, 275, 391 2,500,000 19,924,010 22, 424, 010 2,500,000 23,743,871 26, 243, 871 Revenues Self Insurance (Property and Workers Comp) Reimbursements from Outside Sources Miscellaneous Property Tax Unemployment Claims 10,499,969 841,489 410,140 251,471 109,828 11,000,000 625,000 150,000 1,829,000 100,000 11,000,000 1,961,942 374,000 1,829,000 100,000 11,000,000 575,000 330,000 290,000 37,870 12, 112, 898 13, 704, 000 15, 264, 942 12, 232, 870 12, 112, 898 13, 704, 000 15, 264, 942 12, 232, 870 2,242,427 3,386,063 1,189,573 1,206,754 21,234 28,123 3,545,625 - 3,112,000 3,064,703 755,000 1,313,508 29,000 35,000 3,357,500 - 2,371,000 2,019,703 2,500,942 1,041,814 29,000 120,000 3,357,500 414 2,915,155 2,887,503 1,010,000 1,698,246 50,000 50,003 3,720,000 - 11, 619, 799 11, 666, 711 11, 440, 373 12, 330, 907 11,619,799 11,666,711 11,440,373 12,330,907 Subtotal Total Sources E xp en di t u r es Insurance & Bond Premiums Liability Physical Damage Risk Management Safety Grants Program Unemployment Workers Compensation Fuel and Maint and Repair (a) Subtotal TOTAL OPERATING BUDGET Transfers Out CIP Technology 254,341 4,708 4,708 21,413 254, 341 4, 708 4, 708 21, 413 11, 874, 140 11, 671, 419 11, 445, 081 12, 352, 320 Sources Over/(Under) Uses 238, 758 2, 032, 581 3, 819, 861 ( 119, 450) Ending Fund Balance Operating Contingency Operating Reserve Total Ending Fund Balance 1,681,500 20,742,510 22, 424, 010 2,500,000 21,807,972 24, 307, 972 2,482,193 23,761,678 26, 243, 871 2,500,000 23,624,421 26, 124, 421 Subtotal Total Uses (a) Initially budgeted at the division level. At the start of the fiscal year the budget will move to a macro level and then be transferred back to the division monthly as expenses occur. 258 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Risk Management Fund Five-Year Financial Forecast Adopted 2021/22 Forecast 2022/23 Forecast 2023/24 Forecast 2024/25 Forecast 2025/26 Beginning Fund Balance Operating Contingency Operating Reserve Total Beginning Fund Balance 2,500,000 23,743,871 26, 243, 871 2,500,000 23,624,421 26, 124, 421 2,500,000 24,563,621 27, 063, 621 2,500,000 25,613,821 28, 113, 821 2,500,000 27,221,421 29, 721, 421 Revenues Self Insurance (Property and Workers Comp) Reimbursements from Outside Sources Miscellaneous Property Tax Unemployment Claims 11,000,000 575,000 330,000 290,000 37,870 12,700,000 575,000 290,000 330,000 39,800 13,400,000 525,000 290,000 330,000 41,800 14,500,000 525,000 290,000 330,000 43,800 15,300,000 475,000 290,000 330,000 46,000 12, 232, 870 13, 934, 800 14, 586, 800 15, 688, 800 16, 441, 000 12, 232, 870 13, 934, 800 14, 586, 800 15, 688, 800 16, 441, 000 2,915,155 2,887,503 1,010,000 1,698,246 50,000 50,003 3,720,000 - 3,352,400 2,945,300 1,030,200 1,767,100 51,000 51,000 3,791,400 - 3,662,300 3,004,200 1,050,800 1,831,300 52,100 52,000 3,867,200 - 3,942,500 3,079,300 1,077,100 1,903,300 53,300 53,300 3,963,900 - 4,433,300 3,156,300 1,104,000 1,973,500 54,600 54,700 4,062,900 - 12, 330, 907 12, 988, 400 13, 519, 900 14, 072, 700 14, 839, 300 12,330,907 12,988,400 13,519,900 14,072,700 14,839,300 Subtotal Total Sources E xp en di t u r es Insurance & Bond Premiums Liability Physical Damage Risk Management Safety Grants Program Unemployment Workers Compensation Fuel and Maint and Repair Subtotal TOTAL OPERATING BUDGET Transfers Out CIP Technology 21,413 7,200 16,700 8,500 5,700 21, 413 7, 200 16, 700 8, 500 5, 700 Total Uses 12, 352, 320 12, 995, 600 13, 536, 600 14, 081, 200 14, 845, 000 Sources Over/(Under) Uses ( 119, 450) 939, 200 1, 050, 200 1, 607, 600 1, 596, 000 Ending Fund Balance Operating Contingency Operating Reserve Total Ending Fund Balance 2,500,000 23,624,421 26, 124, 421 2,500,000 24,563,621 27, 063, 621 2,500,000 25,613,821 28, 113, 821 2,500,000 27,221,421 29, 721, 421 2,500,000 28,817,421 31, 317, 421 City of Scottsdale FY 2021/22 Adopted Budget - Volume One 259 Subtotal Table of Contents BUDGET BY FUND | Risk Management Fund Risk Management Fund Sources Sources received in the Risk Management Fund consist of Self Insurance (Property and Workers Comp), Reimbursements from Outside Sources, Miscellaneous, Property Tax, and Unemployment Claims. More specific information on these sources is detailed below: Self Insurance (Property and Workers Comp) FY 2017/18 to FY 2023/24 (in millions) Self Insurance (Property and Workers Comp) represent this fund’s operating resources, which are derived from internal charges for services to other city divisions. The fund covers excess insurance premiums, administrative charges and claim payments for general and auto liability/physical damages, workers’ compensation and property damage. The FY 2021/22 adopted budget for Self Insurance (Property and Workers Comp) is $11.0 million, which remains flat from the FY 2020/21 adopted budget. The increase in FY 2022/23 - FY 2025/26 assumes the need to charge divisions more due to increased costs while maintaining the Loss Trust Fund Board's preferred 85 percent confidence level of the most recent actuarial assessment in the fund balance. Reimbursements from Outside Sources FY 2017/18 to FY 2023/24 (in millions) Reimbursements from Outside Sources represents reimbursements received from insurance claims. The primary component of this source is subrogation where the city seeks reimbursement from third party insurance companies for various types of claims. Reimbursements from Outside Sources for FY 2021/22 are $0.6 million, which remains flat when compared the FY 2020/21 adopted budget. There was a large reimbursement received in FY 2020/21 related to a claim for a fire that damaged and totaled several solid waste trucks. 260 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Risk Management Fund 1MWGIPPERISYW FY 2017/18 to FY 2023/24 (in millions) Miscellaneous revenue represents special event reimbursements related to services provided by off-duty police officers. When an off-duty police officer is contracted for services certain insurance requirements must be met. If the event producer does not meet the specified insurance thresholds, additional costs are billed to cover potential city liability. When the Public Safety - Police Division receives these reimbursements, they are then deposited into the city's Risk Management Fund. Also included is subrogation recoveries which are claim amounts paid by third parties that are recovered by the city for damage occurring on or to city property. Miscellaneous revenue for FY 2021/22 is budgeted at $0.3 million which is $0.1 million higher than the FY 2020/21 adopted budget in order to bring the budget more in line with historic actual levels. Property Tax FY 2017/18 to FY 2023/24 (in millions) Property Tax represents a reimbursement to the city’s Risk Management Fund for the liability tort settlements and judgments approved by City Council and paid during the most recently completed calendar year. The inclusion of the tort claim reimbursements in the city’s primary tax levy is allowed per a March 20, 1986 Arizona Attorney General opinion. The tort expenses are paid from the Risk Management Fund, therefore the reimbursement becomes revenue to this fund. The budgeted tort claims for FY 2021/22 is $0.3 million, $1.5 million lower than the FY 2020/21 adopted budget, which included the settlement of several large, unforeseen occurrences. 9RIQTPS]QIRX'PEMQW FY 2017/18 to FY 2023/24 Unemployment Claims includes charges to all positions for unemployment insurance. The FY 2021/22 adopted budget of $37,870 was reduced from the FY 2020/21 adopted budget of $100,000 to bring the Unemployment Claims budget more in line with the revenue needed to cover unemployment expenses based of historical data. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 261 Table of Contents BUDGET BY FUND | Risk Management Fund Risk Management Fund Uses The direct operating expenditures of the Risk Management Fund are divided into the following major expenditure categories: Insurance & Bond Premiums, Liability, Physical Damage, Risk Management, Safety Grants Program, Unemployment and Workers Compensation. Also included are cash Transfers Out to the CIP. Insurance & Bond Premiums FY 2017/18 to FY 2023/24 (in millions) Insurance & Bond Premiums includes various citywide insurance policies for umbrella type coverage offering protection against large or ongoing claims. The adopted budget for FY 2021/22 is $2.9 million, which is $0.2 million less than the FY 2020/21 adopted budget of $3.1 million. Liability FY 2017/18 to FY 2023/24 (in millions) Liability primarily includes claim payments and legal costs for all activity not related to physical damage or workers compensation claims. The adopted budget for FY 2021/22 is $2.9 million, which is $0.2 less than the FY 2020/21 adopted budget. 262 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Risk Management Fund Physical Damage FY 2017/18 to FY 2023/24 (in millions) Physical Damage is a claim used to pay for physical damage to city property or city vehicles. The adopted budget for FY 2021/22 is $1.0 million, which is an increase of $0.2 million when compared to the FY 2020/21 adopted budget. The budget was adjusted to align with previous actual expenditures which continue to increase due to weather related and catastrophic events. There was a large claim in FY 2020/21 for a fire that damaged and totaled several solid waste trucks. FY 2017/18 - FY 2019/20 had higher than anticipated damage to vehicles. Risk Management FY 2017/18 to FY 2023/24 (in millions) The Risk Management operating budget is for day to day operations of the department. The adopted budget for FY 2021/22 is $1.7 million, which is $0.4 million greater than the FY 2020/21 adopted budget. Safety Grants Program FY 2017/18 to FY 2023/24 The Safety Grants Program is for city divisions to request funds to pay for office furniture/equipment, office operating supplies, and protective clothing that would enhance safety or reduce a known loss in the workplace. In order to receive these funds certain criteria must be met and no other funding source available. The budgeted expenditure for FY 2021/22 is $50,000, which is an increase of $21,000 compared to the FY 2020/21 adopted budget. FY 2017/18 and FY 2018/19 show low levels of department requests for Safety Grants to help pay for operating supplies intended to reduce loss exposure. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 263 Table of Contents BUDGET BY FUND | Risk Management Fund 9RIQTPS]QIRX FY 2017/18 to FY 2023/24 9RIQTPS]QIRXVITVIWIRXWGPEMQW[LMGLGERFITEMHXS XIVQMREXIHGMX]IQTPS]IIW[LSUYEPMJ]8LIEHSTXIHFYHKIX JSV*=MW[LMGLMWKVIEXIVXLERXLI *=EHSTXIHFYHKIX8LI*=JSVIGEWX IWXMQEXIWELMKLIVPIZIPSJI\TIRWIWHYIXSERXMGMTEXIHPEVKI RYQFIVYRIQTPS]QIRXGPEMQWVIWYPXMRKJVSQXLI'3:-( TERHIQMG Workers Compensation FY 2017/18 to FY 2023/24 (in millions) Workers Compensation represents claims paid to current city employees in the event of an injury, illness, or disease occurring in the course of city employment. The adopted budget for FY 2021/22 is $3.7 million which is $0.3 million greater than the FY 2020/21 adopted budget due to higher forecasted worker compensation expenses related to rising medical costs, including delayed medical expenses due to the COVID-19 pandemic. 264 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Risk Management Fund Non-Divisional Uses Non-Divisional Uses are items that were budgeted in citywide macro level holding accounts. As expenditures occur in the applicable divisions, budget transfers are completed to move the needed budget from the macro level holding accounts to the respective divisions. Therefore, the FY 2020/21 year-end forecast and prior years’ budget and actuals that are displayed in the graphs are for comparison purposes only as the expenditures are actually recorded and reported as part of the applicable division’s uses. Beginning in FY 2020/21 due to an administrative change, most non-divisional uses are initially placed into the divisions instead of at a macro level then moving the budget to a macro level holding account at the beginning of the fiscal year and completing budget transfers to move the needed budget back to the applicable divisions as expenditures occur. The administrative change is in an effort to have more meaningful year-over-year comparisons. Fuel and Maint and Repair FY 2017/18 to FY 2023/24 Beginning in FY 2019/20, Fuel and Maint and Repair are budgeted at the division level and then at the beginning of the fiscal year are moved to a macro account. Budgeting on a macro level is a tool used by the budget department to more accurately track how expenses are occurring by each division. Fuel and Maint and Repair includes expenses related to vehicle and equipment repairs and fuel usage. The actuals in FY 2020/21 represent a vehicle that was turned in mid-year due to low-use to assist with cost-savings for the city's motor pool. Transfers Out Transfers Out is the authorized movement of cash or other resources to other funds and/or capital projects. CIP Technology FY 2017/18 to FY 2023/24 (in thousands) The CIP Technology budget of $21,413 in FY 2021/22 is planned to help cover the Risk Management's portion of citywide technology replacement capital projects. FY 2019/20 included budget for a new modern risk management platform to effectively manage liability and workers compensation claims. The expense was lower than originally anticipated. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 265 Table of Contents BUDGET BY FUND | Risk Management Fund Risk Management Fund Ending Balance Fund balance protects the city's financial condition and provides for unexpected economic challenges. The Loss Trust Fund Board, per Financial Policy No. 41, set a target to maintain a Risk Management reserve fund balance equivalent to the actuary's 85 percent confidence level of the most recent actuarial assessment. Each year the projected balance is actuarially determined based on current actual losses and potential outstanding claims. The specific make-up of the city's Risk Management Fund ending balance is noted in the following: Operating Contingency FY 2017/18 to FY 2023/24 (in millions) Operating Contingency includes $2.5 million of budget authorization in the event that unforeseen expenses occur during the fiscal year. Contingency funds are utilized only after all budget options have been examined and requires City Council approval. Operating Reserve FY 2017/18 to FY 2023/24 (in millions) The projected FY 2021/22 Operating Reserve is approximately $23.6 million, which is an increase of $1.8 million from the FY 2020/21 adopted budget. 266 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | PC Replacement Fund BUDGET BY FUND | PC Replacement Fund Overview *YRH4YVTSWI 8LI4'6ITPEGIQIRXJYRHMWYWIHXSEGGSYRXJSVXLII\TIRHMXYVIWEWWSGMEXIH[MXLTYVGLEWMRKXLIGMX]’WGSQTYXIVW QSRMXSVWERHTVMRXIVW8LIVITPEGIQIRXSJGSQTYXIVWQSRMXSVWERHTVMRXIVW LEVH[EVI MWGLEVKIHXSXLIGMX]HMZMWMSRWEW ERMRXIVREPSTIVEXMRKGSWXFEWIHSRXLIUYERXMX]ERHX]TISJLEVH[EVIYWIH8LIHMZMWMSRW GLEVKIWFIGSQIVIZIRYIXSXLI 4'6ITPEGIQIRX*YRH 4'6ITPEGIQIRX*YRH7SYVGIW XS8SXEP  1MPPMSR 4'6ITPEGIQIRX*YRH9WIW XS8SXEP 1MPPMSR Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 267 Undesignated, Unreserved Fund Balance The FY 2018/19 ending fund balance includes an Undesignated, Unreserved Fund Balance of $1.6 million, which represents an accumulation of one-time sources and it is most appropriately used for one-time expenditures. Under prudent fiscal management practices, this amount should not be used to fund new or expanded programs with ongoing operating expenses. Table of Contents BUDGET BY FUND | PC Replacement Fund Summary %GXYEP  %HSTXIH  *SVIGEWX  %HSTXIH               1,042,529  752,850  752,850  750,000      1,128,671  868,508  868,508  1,186,447 838%034)6%8-2+&9(+)8     8SXEP9WIW         &IKMRRMRK*YRH&EPERGI 3TIVEXMRK'SRXMRKIRG] 9RHIWMKREXIH9RVIWIVZIH*YRH&EPERGI 8SXEP&IKMRRMRK*YRH&EPERGI 6IZIRYIW 4'6ITPEGIQIRX*IIW E Subtotal 8SXEP7SYVGIW )\TIRHMXYVIW 'SQTYXIV,EVH[EVI%GUYMWMXMSR Subtotal 7SYVGIW3ZIV 9RHIV 9WIW )RHMRK*YRH&EPERGI F     3TIVEXMRK'SRXMRKIRG] 9RHIWMKREXIH9RVIWIVZIH*YRH&EPERGI     8SXEP)RHMRK*YRH&EPERGI     E &IKMRRMRKMR*=XLI4'6ITPEGIQIRX*IIWMRXIVREPWIVZMGIGLEVKI[EWVIHYGIHMRSVHIVXSYXMPM^IEZEMPEFPI9RHIWMKREXIH9RVIWIVZIH *YRH&EPERGI F &IKMRRMRKMR*=XLI3TIVEXMRK'SRXMRKIRG][EWVIHYGIHXSFIXXIVEPMKR[MXLLMWXSVMGEPYWEKI 268 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | PC Replacement Fund Five-Year Financial Forecast %HSTXIH  *SVIGEWX  *SVIGEWX  *SVIGEWX  *SVIGEWX                  750,000  760,000  770,000  780,000  790,000       1,186,447  652,200  801,800  1,377,200  1,489,700 838%034)6%8-2+&9(+)8      8SXEP9WIW      7SYVGIW3ZIV 9RHIV 9WIW      &IKMRRMRK*YRH&EPERGI 3TIVEXMRK'SRXMRKIRG] 9RHIWMKREXIH9RVIWIVZIH*YRH&EPERGI 8SXEP&IKMRRMRK*YRH&EPERGI 6IZIRYIW 4'6ITPEGIQIRX*IIW E Subtotal 8SXEP7SYVGIW )\TIRHMXYVIW 'SQTYXIV,EVH[EVI%GUYMWMXMSR Subtotal )RHMRK*YRH&EPERGI F      3TIVEXMRK'SRXMRKIRG] 9RHIWMKREXIH9RVIWIVZIH*YRH&EPERGI      8SXEP)RHMRK*YRH&EPERGI      E &IKMRRMRKMR*=XLI4'6ITPEGIQIRX*IIWMRXIVREPWIVZMGIGLEVKI[EWVIHYGIHMRSVHIVXSYXMPM^IEZEMPEFPI9RHIWMKREXIH9RVIWIVZIH*YRH&EPERGI F &IKMRRMRKMR*=XLI3TIVEXMRK'SRXMRKIRG][EWVIHYGIHXSFIXXIVEPMKR[MXLLMWXSVMGEPYWEKI City of Scottsdale FY 2021/22 Adopted Budget - Volume One 269 Table of Contents BUDGET BY FUND | PC Replacement Fund 4'6ITPEGIQIRX*YRH7SYVGIW 8LI4'6ITPEGIQIRX*YRHMRGPYHIWVIZIRYIJVSQVEXIWGLEVKIHXSXLIGMX]HMZMWMSRWEWMRXIVREPSTIVEXMRKGSWXWXSIEGLTVSKVEQ FEWIHSRXLIUYERXMX]ERHX]TISJLEVH[EVIYWIH8LISRP]WSYVGISJVIZIRYIXSXLMWJYRHMWXLI4'6ITPEGIQIRX*IIWHIXEMPIH FIPS[ 4'6ITPEGIQIRX*IIW *=XS*= MRQMPPMSRW 4'6ITPEGIQIRX*IIWVITVIWIRXWXLIVEXIWGLEVKIHXSSXLIV GMX]JYRHWERHHMZMWMSRWJSVXLIEGUYMWMXMSRERHVITPEGIQIRXSJ GMX]GSQTYXIVLEVH[EVI8LIEQSYRXGSPPIGXIHIRWYVIW WYJJMGMIRXJYRHMRKMWEZEMPEFPIJSVLEVH[EVIEGUYMWMXMSRERH VITPEGIQIRX[LMPIEPWSGSRWMHIVMRKJYXYVIRIIHW8LIKSEPMW XSQMRMQM^IPEVKIJPYGXYEXMSRWXSXLIVEXIWXLEXEVIGLEVKIHXS XLIHMZMWMSRWIEGL]IEV8LIVIZIRYIJSV*=MW QMPPMSR[LMGLMWJPEXJVSQXLI*=EHSTXIHFYHKIX &IKMRRMRKMR*=XLI4'6ITPEGIQIRX*IIWMRXIVREP WIVZMGIGLEVKI[EWVIHYGIHMRSVHIVXSYXMPM^IEZEMPEFPI 9RHIWMKREXIH9RVIWIVZIH*YRH&EPERGI PC Replacement Fund Uses 8LIHMVIGXSTIVEXMRKI\TIRHMXYVIWSJXLI4'6ITPEGIQIRX*YRHEVIFYHKIXIHMRXLIGETMXEPSYXPE]GEXIKSV] 'SQTYXIV,EVH[EVI%GUYMWMXMSR *=XS*= MRQMPPMSRW 'SQTYXIV,EVH[EVI%GUYMWMXMSRMRGPYHIWXLITYVGLEWISJ HIWOXSTGSQTYXIVWPETXSTWVYKKIHM^IHPETXSTWQSRMXSVW ERHTVMRXIVW8LIGSQTYXIVLEVH[EVIMRZIRXSV]JSVXLI IRXMVIGMX]MWEKKVIKEXIHEWSRIEWWIXERHMWXLYWGPEWWMJMIH EWEGETMXEPEWWIXSRXLIGMX]’WFEPERGIWLIIX8LIEHSTXIH *='SQTYXIV,EVH[EVI%GUYMWMXMSRFYHKIXMW QMPPMSR[LMGLMWQMPPMSRLMKLIVXLERXLI*= EHSTXIHFYHKIX8LII\TIRHMXYVIWZEV]JVSQ]IEVXS]IEV HITIRHMRKSRXLIVITPEGIQIRXWGLIHYPI 270 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | PC Replacement Fund PC Replacement Fund Ending Balance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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One 271 Table of Contents 272 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents All Arabian Horse Show at Paradise Park Courtesy of the Scottsdale Historical Society and Scottsdale Public Library Table of Contents BUDGET BY FUND | Grant Funds BUDGET BY FUND | Grant Funds Overview *YRH4YVTSWI 8LI+VERX*YRHWVIGIMZIERHI\TIRHXLIGMX]’WJIHIVEPWXEXIERHPSGEPKVERXW8LIEQSYRXSJKVERXWVIGIMZIHMWKIRIVEPP] FEWIHYTSRETTPMGEXMSRXSKVERXMRKEKIRGMIWF]XLIGMX]ERHXLVSYKLIRXMXPIQIRXKVERXWERHEVIGSRXMRKIRXYTSREZEMPEFMPMX] SJJYRHMRKF]XLIKVERXSVW+VERXVIZIRYIWQE]FIYWIHSRP]JSVXLIWXEXIHTYVTSWIMRXLIETTVSZIHKVERXEKVIIQIRXERHEVI WYFNIGXXSKVERXSVI\TIRHMXYVIKYMHIPMRIWERHEYHMXW8LIGMX][MPPSRP]I\TIRHKVERXJYRHWXLEXLEZIFIIRETTVSTVMEXIP] E[EVHIHF]XLIKVERXMRKEKIRG]ERHEGGITXIHMREGGSVHERGI[MXLXLIGMX]’WKVERXTSPMG] +VERX*YRHW7SYVGIW XS8SXEP  1MPPMSR +VERX*YRHW9WIW XS8SXEP 1MPPMSR Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 273 Table of Contents BUDGET BY FUND | Grant Funds Summary Adopted 2 0 2 1 /2 2 Revenues American Rescue Plan Act CDBG & CDBG Rehab Revolving Loan Housing Choice Voucher Program Grants HOME Investment Partnership 14,622,406 2,356,520 6,393,013 2,954,740 1,274,956 Subtotal Other Activity Grant Anticipated Grant Contingency 27, 601, 635 7,339,309 2,000,000 Subtotal 9, 339, 309 Total Sources 36, 940, 944 Expenditures American Rescue Plan Act CDBG & CDBG Rehab Revolving Loan Housing Choice Voucher Program Grants Home Investment Partnership 14,622,406 2,328,592 6,393,013 2,896,954 1,274,956 Subtotal TOTAL OPERATING BUDGET 27,515,921 Other Activity Grant Anticipated Grant Contingency 7,339,309 2,000,000 Subtotal Transfers Out CIP CIP Technology Sources Over/(Under) Uses 274 9, 339, 309 57,786 27,928 Subtotal Total Uses 27, 515, 921 85, 714 36, 940, 944 - City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Grant Funds +VERX*YRHW7SYVGIW Scottsdale pursues grant funding to leverage city funds to address priority program and service needs. The major areas of grant revenue consist of the American Rescue Plan Act, Community Development Block Grant (CDBG), Housing Choice Voucher (HCV) Program (formally known as "Section 8"), HOME Investment Partnership (HOME) funds, miscellaneous federal, state, local grants and anticipated grants. The revenues by grant are detailed in the following sections below: %QIVMGER6IWGYI4PER%GX FY 2017/18 to FY 2023/24 (in millions) To assist in recovery following the economic impact of the COVID-19 pandemic, Scottsdale received $29.2 million in federal funds over two fiscal years from the American Rescue Plan Act (ARPA). The FY 2021/22 revenue of $14.6 million is the first half of the city's ARPA funding allocation. 'SQQYRMX](IZIPSTQIRX&PSGO+VERX '(&+   '(&+6ILEF6IZSPZMRK0SER FY 2017/18 to FY 2023/24 (in millions) The City of Scottsdale receives Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). CDBG funds are provided on a formula basis to entitlement communities to develop viable urban communities by providing decent housing, suitable living environments and/or by expanding economic opportunities, primarily for low to moderate income persons. Staff estimates the CDBG and CDBG Rehab Revolving Loan Funds, including prior year’s carryover for FY 2021/22 at $2.4 million. These fund amounts will vary depending on when the funds are received during the fiscal year. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 275 Table of Contents BUDGET BY FUND | Grant Funds ,SYWing'LSMGI:SYGLIVProgram FY 2017/18 to FY 2023/24 (in millions) The Housing Choice Voucher (HCV) Program is funded through the U.S. Department of Housing and Urban Development (HUD). This program offers rental assistance which is based upon the household’s income. Families must be income eligible based on the Program Income Guidelines. The program provides affordable and safe housing opportunities for lower-income families, senior citizens and persons with disabilities. Staff estimates the HCV allocations, including prior year’s carryover for FY 2021/22 at $6.4 million. The actual amounts will vary depending on when the funds are received during the fiscal year. +VERXW FY 2017/18 to FY 2023/24 (in millions) Miscellaneous federal, state and local grants include grants for law enforcement, fire services, community services, transportation and preservation projects. Additional grant funding was received from the AZCares Fund to assist with costs of public health and public safety personnel expenses in FY 2019/20 and FY 2020/21. The adopted budget for these grants is $3.0 million for FY 2021/22. ,OME Investment Partnership FY 2017/18 to FY 2023/24 (in millions) HOME Funds are received through the Maricopa County Home Consortium. Staff estimates the HOME allocation, including prior year’s carryover for FY 2021/22 at $1.3 million. HOME Funds actual amounts will vary depending on when the funds are received during the fiscal year. The actuals for FY 2017/18 were less than $50,000 and were received to pay Habitat for Humanity and other related programs. However, those organizations did not complete the housing projects in that year as planned. 276 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Grant Funds +VERXW%RXMGMTEXIH FY 2017/18 to FY 2023/24 (in millions) These are anticipated grants that may be received throughout the fiscal year to aid in the support of a specified function, or which are to be used for general purposes. Grants Anticipated for FY 2021/22 totals $7.3 million. +VERX'SRXMRKIRG] FY 2017/18 to FY 2023/24 (in millions) Grant Contingency provides for unexpected grant awards in the event that unforeseen expenses occur during the fiscal year while conducting operations. For FY 2021/22 the adopted budget is $2.0 million. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 277 Table of Contents BUDGET BY FUND | Grant Funds +VERX*YRHW9WIW Scottsdale seeks grant funding to leverage city funds to address priority program and service needs. The major areas of grant uses consist of the American Rescue Plan Act, Community Development Block Grant (CDBG), Housing Choice Voucher (HCV) Program (formally known as "Section 8"), HOME Investment Partnership (HOME) funds, miscellaneous federal, state, local grants and anticipated grants. The expenditures by grant are detailed in the following sections below: %QIVMGER6IWGYI4PER%GX FY 2017/18 to FY 2023/24 (in millions) To assist in recovery following the economic impact of the COVID-19 pandemic, Scottsdale received $29.2 million in federal funds over two fiscal years from the American Rescue Plan Act (ARPA). While the city has not yet determined how this money will be used, the FY 2021/22 budget of $14.6 million includes spending authority for the first half of the city's ARPA funding allocation. 'SQQYRMX](IZIPSTQIRX&PSGO+VERX '(&+   '(&+6ILEF6IZSPZMRK0SER FY 2017/18 to FY 2023/24 (in millions) The City of Scottsdale receives Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). CDBG funds are provided on a formula basis to entitlement communities to develop viable urban communities by providing decent housing, suitable living environments and/or by expanding economic opportunities, primarily for low to moderate income persons. Staff estimates the CDBG and CDBG Rehab Revolving Loan Funds, including prior year’s carryover for FY 2021/22 at $2.3 million. These fund amounts will vary depending on when the funds are received during the fiscal year. 278 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Grant Funds ,SYWing'LSMGI:SYGLIVProgram FY 2017/18 to FY 2023/24 (in millions) The Housing Choice Voucher (HCV) Program is funded through the U.S. Department of Housing and Urban Development (HUD). This program offers rental assistance which is based upon the household’s income. Families must be income eligible based on the Program Income Guidelines. The program provides affordable and safe housing opportunities for lower-income families, senior citizens and persons with disabilities. Staff estimates the HVC allocations, including prior year’s carryover for including prior year’s carryover for FY 2021/22 at $6.4 million. The actual amounts will vary depending on when the funds are received during the fiscal year. +VERXW FY 2017/18 to FY 2023/24 (in millions) Miscellaneous federal, state and local grants include grants for law enforcement, fire services, community services, transportation and preservation projects. Additional grant funding was received from the AZCares Fund, to assist with costs of public health and public safety personnel expenses in FY 2019/20 and FY 2020/21. The adopted budget for these grants is $2.9 million for FY 2021/22. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 279 Table of Contents BUDGET BY FUND | Grant Funds ,OME Investment Partnership FY 2017/18 to FY 2023/24 (in millions) HOME Funds are used to provide affordable housing, expand the capacity of non-profit housing providers, strengthen the ability of local governments to provide housing, and leverage private-sector participation in housing. The FY 2021/22 adopted budget is $1.3 million, which is $0.6 million greater than compared to the FY 2020/21 adopted budget. HOME Funds expenditure actual amounts will vary depending on the timing of disbursements during the fiscal year. +VERXW%RXMGMTEXIH FY 2017/18 to FY 2023/24 (in millions) These are anticipated grants that may be received throughout the fiscal year to aid in the support of a specified function or general purposes. Grants Anticipated for FY 2021/22 totals $7.3 million. +VERX'SRXMRKIRG] FY 2017/18 to FY 2023/24 (in millions) Grant Contingency provides for unexpected grant awards in the event that unforeseen expenses occur during the fiscal year while conducting operations. For FY 2021/22 the adopted budget is $2.0 million. 280 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Grant Funds 8VERWJIVW3YX Transfers Out is the authorized movement of cash or other resources to other funds and/or capital projects. '-4 FY 2017/18 to FY 2023/24 The Transfers Out CIP adopted budget for FY 2021/22 of $57,786 and will be used to partially cover the expansion and revitalization of the Civic Center Library Sky Room to house library programs. '-48IGLRSPSK] *=XS*= CIP Technology helps cover the portion of citywide technology capital projects. The FY 2021/22 adopted budget of $27,928 is a shared cost for a part of a citywide Enterprise Resource Planning System, as well as server and network infrastructure. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 281 Table of Contents 282 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | SpecialFund Districts Fund BUDGET BY FUND | Special Districts Overview Fund Purpose The Special Districts Fund is used to account for proceeds received by property owners in return for the city providing agreed-upon increased levels of municipal services beyond the standard level of core city services as allowed by statute. More specifically, the fund is used to account for the city’s streetlight districts. Special Districts Fund Sources (% to Total) $0.5 Million Special Districts Fund Uses (% to Total) $0.6 Million Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 283 Table of Contents BUDGET BY FUND | Special Districts Fund Summary Beginning Fund Balance Streetlight Districts Total Beginning Fund Balance Revenues Streetlight Districts Subtotal Total Sources Expenditures Streetlight Districts Actual 2019/20 Adopted 2020/21 Forecast 2020/21 Adopted 2021/22 10,797 10,797 57,021 57,021 73,493 73,493 51,390 51,390 617,681 553,252 526,791 530,438 617,681 553,252 526,791 530,438 617,681 553,252 526,791 530,438 554,985 610,273 548,894 581,828 554,985 610,273 548,894 581,828 554,985 610,273 548,894 581,828 Total Uses 554,985 610,273 548,894 581,828 Sources Over/(Under) Uses 62,696 (57,021) (22,103) (51,390) Ending Fund Balance Streetlight Districts Total Ending Fund Balance 73,493 73,493 - 51,390 51,390 - Subtotal TOTAL OPERATING BUDGET 284 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Special Districts Fund Five-Year Financial Forecast Beginning Fund Balance Streetlight Districts Total Beginning Fund Balance Revenues Streetlight Districts Subtotal Total Sources Expenditures Streetlight Districts Adopted 2021/22 Forecast 2022/23 Forecast 2023/24 Forecast 2024/25 Forecast 2025/26 51,390 51,390 - - - - 530,438 593,500 605,300 617,400 629,800 530,438 593,500 605,300 617,400 629,800 530,438 593,500 605,300 617,400 629,800 581,828 593,500 605,300 617,400 629,800 581,828 593,500 605,300 617,400 629,800 581,828 593,500 605,300 617,400 629,800 Total Uses 581,828 593,500 605,300 617,400 629,800 Sources Over/(Under) Uses (51,390) - - - - Ending Fund Balance Streetlight Districts Total Ending Fund Balance - - - - - Subtotal TOTAL OPERATING BUDGET City of Scottsdale FY 2021/22 Adopted Budget - Volume One 285 Table of Contents BUDGET BY FUND | Special Districts Fund 7TIGMEP(MWXVMGXW7SYVGIW 7TIGMEP(MWXVMGXW7SYVGIWJSV*=IUYEPQMPPMSR[LMGLMWJPEXGSQTEVIHXSXLI*=EHSTXIHFYHKIX7SYVGIW MRGPYHI7XVIIXPMKLX(MWXVMGXWVIZIRYI[LMGLMWHIVMZIHJVSQXLIPIZ]EWWIWWIHSRTVSTIVX]S[RIVW[MXLMRXLIGMX] WWXVIIXPMKLXHMWXVMGXW 7XVIIXPMKLX(MWXVMGXW *=XS*= MRQMPPMSRW 7XVIIXPMKLX(MWXVMGXWVIZIRYIVITVIWIRXWXLIPIZ]EWWIWWIHSR TVSTIVX]S[RIVW[MXLMRIEGLSJXLIGMX]’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ity of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Special Districts Fund 7TIGMEP(MWXVMGXW*YRH&EPERGI Growth of fund balance occurs when sources exceed uses. %R]JYRHFEPERGIEGLMIZIHHYVMRKEJMWGEP]IEVMWXLIRVIFYHKIXIH XLIJSPPS[MRK JMWGEP ]IEVXSYPXMQEXIP] OIITXLIVIWIVZI XSEFEPERGI %LMWXSVMGEP WYQQEV] SJXLIGMX]’W7TIGMEP (MWXVMGXW FYRHending bEPERGIMWEWJSPPS[W 7XVIIXPMKLX(MWXVMGXW *=XS*= MRXLSYWERHW 8LI*=7XVIIXPMKLX(MWXVMGXWIRHMRKJYRHFEPERGIMW TVSNIGXIHXSFI8LIIRHMRKFEPERGIJVSQXLI*= ]IEVIRHJSVIGEWXEQSYRXMWGEVVMIHJSV[EVHXS*= ERHMWEZEMPEFPIXSFIVIFYHKIXIHXSYPXMQEXIP]VIHYGIXLI I\MWXMRKVIWIVZIXSEFEPERGI City of Scottsdale FY 2021/22 Adopted Budget - Volume One 287 Table of Contents 288 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents Cattle Drive Courtesy of the Scottsdale Historical Society and Scottsdale Public Library Table of Contents BUDGET BY FUND | Capital Improvement Plan Funds Adopted Budget $1,785.3 Million (a) Operating Budgets $685.0M (a) (a) (b) Grants & Special Districts $28.1M Capital Improvement Plan $821.2M Contingencies / Reserves $251.0M General Fund $346.6M Grant Funds $27.5M Community Facilities $104.8M General Fund $65.8M Special Revenue Funds $71.4M Special Districts Fund $0.6M Drainage / Flood Control $19.4M Special Revenue Funds $20.6M Debt Service Fund $88.6M Preservation $42.5M Debt Service Fund $8.4M Enterprise Funds $159.2M Public Safety $28.9M Enterprise Funds $83.8M Internal Service Funds $19.2M (a) $79.1M (b) Service Facilities $40.1M Internal Service Funds $34.8M Transportation $258.6M Grant Funds $9.3M Water Management $326.9M Capital Improvement $28.3M Adopted Budget and Operating Budgets include Internal Service Funds offsets (reductions) of $60.0M Internal Service Funds Budget prior to Internal Service Funds offsets of $60.0M Rounding differences may occur. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 289 Table of Contents BUDGET BY FUND | Capital Improvement Plan Funds Summary Beginning Fund Balance (a) Ac t u a l 2019/ 20 284,475,534 Adopted 2020/ 21 234,291,615 Fo r e c a s t 2020/ 21 305,479,928 Adopted 2021/ 22 302,492,206 Revenues Bond Proceeds Other Revenue Charges for Service/Other Taxes - Local Utilities & Enterprises Interest Earnings Building Permit Fees & Charges 43,468,000 1,973,935 12,415,394 9,262,899 10,188,479 5,117,310 49,439 40,000,000 20,789,900 53,781,054 14,222,084 6,150,000 4,440,940 65,000 55,000,000 4,254,875 5,170,953 15,686,156 6,150,000 4,440,940 3,659,495 75,000,000 30,892,260 21,834,310 12,920,190 6,150,000 1,786,422 65,000 Transfers In Airpark Cultural Trust Aviation Fund AZ Cares Funding Contributions Downtown Cultural Trust Fleet Fund General Fund Grants Fund Intergovernmental Funds Preservation Sales Tax Fund Risk Management Fund Solid Waste Fund Special Programs Fund Stormwater Fee Fund Transportation Sales Tax (0.10%) Fund Transportation Sales Tax (0.20%) Fund Water & Water Reclamation Funds Subtotal Subtotal Total Sources 82,475,456 139,448,978 94,362,419 148,648,182 6,998,883 2,500,000 150,000 2,140,706 13,643,071 6,463 1,038,463 254,341 496,444 522,000 3,230,136 3,879,645 14,955,342 27,428,904 33,723 1,772,711 4,687,996 6,120 5,750,035 4,708 293,409 2,035,696 10,627,187 36,141,450 311,163 33,723 400,000 185,000 802,310 10,149,444 6,120 16,000 4,360,330 4,708 599,216 1,635,696 11,869,613 36,141,450 638,303 856,064 16,880,314 85,714 3,579,322 21,413 554,409 1,296,579 3,653,600 20,518,890 47,944,056 77,244,398 61,353,035 66,514,773 96,028,664 159,719,854 200,802,013 160,877,192 244,676,846 466,357,120 547,169,052 Total Fund Balance and New Sources 444,195,387 435,093,628 (a) Prior year unexpended sources and uses of funds are estimated and included in the Beginning Fund Balance. 290 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Capital Improvement Plan Funds Summary E x p e n di tu r e s Community Facilities Drainage / Flood Control Preservation Public Safety Service Facilities Transportation Water Management Prior Year Unexpended Ac t u a l 2019/ 20 Adopted 2020/ 21 Fo r e c a s t 2020/ 21 Adopted 2021/ 22 38,019,136 6,354,888 1,038,463 9,520,541 5,940,426 19,685,148 46,396,414 - 41,215,561 23,812,956 45,680,826 22,106,509 24,025,228 213,542,531 320,478,494 - 25,962,082 6,454,051 4,360,330 9,764,195 9,704,085 36,565,387 59,796,728 - 104,798,562 19,404,292 42,543,999 28,927,181 40,113,769 258,597,420 326,851,815 - Subtotal 126,955,015 - (2 5 1 ,7 0 7 ,1 0 0 ) 690,862,106 152,606,858 - (2 8 4 ,4 3 0 ,7 7 8 ) Subtotal: Unexpended at Year End - 439,155,006 - 536,806,260 7,038,591 1,123,180 21 380,733 340,750 675,558 412 1,200,000 1,001,199 7,256,385 32,786 50,000 871,645 82,443 1,113,104 34,053 1,817,639 7,256,385 100,000 6,706,922 Less: Estimated Capital Improvement Expenditures Transfers Out G.O. Bonds Fund Grants Fund In Lieu Fees Fund Intergovernmental Funds MPC Bonds - Stadium MPC Bonds - Water Solid Waste Fund Special Programs Fund Stadium Capital Improvement Fund Stormwater Fee Fund Tourism Development Fund Transportation Sales Tax (0.20%) Fund Water & Water Reclamation Funds Subtotal Total Uses 821,237,038 11,760,445 7,256,385 11,258,055 6,806,922 138,715,460 258,963,485 163,864,913 291,237,700 Ending Fund Balance (a) Aviation Funds Contingency 225,104 250,000 450,000 CIP Stormwater Utility Bill Fee Contingency 1,000,000 1,000,000 1,000,000 1,000,000 General Fund Contingency 6,142,924 5,000,000 3,284,340 5,000,000 Grant Contingency 7,845,986 8,300,000 5,000,000 8,600,000 Greater Airpark Special Improvements Contingency 2,000,000 2,000,000 2,000,000 Old Town Special Improvements Contingency 3,200,000 3,200,000 3,200,000 Sewer Rates Contingency 2,000,000 2,000,000 2,000,000 2,000,000 Transportation 0.2% Sales Tax Contingency 3,000,000 2,939,000 3,000,000 Water Rates Contingency 3,000,000 3,000,000 3,000,000 3,000,000 Reserved: Reserved Fund Balance 305,479,928 176,130,143 302,492,206 255,931,352 Total Ending Fund Balance 305,479,928 176,130,143 302,492,206 255,931,352 (a) Contingencies are unfunded and allow for the expenditure of unanticipated revenue that are not included in the beginning or ending fund balance. City Council approval is required before use of capital contingencies. 291 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Capital Improvement Plan Funds Five-Year Financial Forecast Beginning Fund Balance (a) Adopted 2021/ 22 302,492,206 Fo r e c a s t 2022/ 23 255,931,352 Fo r e c a s t 2023/ 24 176,947,119 Fo r e c a s t 2024/ 25 155,531,821 Fo r e c a s t 2025/ 26 153,305,886 Revenues Bond Proceeds Other Revenue Charges for Service/Other Taxes - Local Utilities & Enterprises Interest Earnings Building Permit Fees & Charges 75,000,000 30,892,260 21,834,310 12,920,190 6,150,000 1,786,422 65,000 25,000,000 9,268,900 41,179,500 13,280,400 6,150,000 1,030,900 65,000 30,000,000 11,098,700 90,223,900 13,620,600 6,150,000 1,177,000 65,000 25,000,000 1,983,800 40,613,500 14,035,900 6,150,000 1,529,100 65,000 45,000,000 1,084,200 84,865,200 14,463,400 6,150,000 2,300,700 65,000 Transfers In Airpark Cultural Trust Aviation Fund AZ Cares Funding Contributions Downtown Cultural Trust Fleet Fund General Fund Grants Fund Intergovernmental Funds Preservation Sales Tax Fund Risk Management Fund Solid Waste Fund Special Programs Fund Stormwater Fee Fund Transportation Sales Tax (0.10%) Fund Transportation Sales Tax (0.20%) Fund Water & Water Reclamation Funds Subtotal 95,974,700 152,335,200 89,377,300 153,928,500 638,303 856,064 16,880,314 85,714 3,579,322 21,413 554,409 1,296,579 3,653,600 20,518,890 47,944,056 763,600 527,600 6,329,800 10,000 713,100 7,200 660,400 40,000 3,654,800 12,702,000 39,688,800 561,600 562,400 5,018,000 22,900 550,000 16,700 698,200 20,000 3,651,800 13,124,900 45,466,800 553,300 525,500 3,824,100 9,800 543,600 8,500 254,400 40,000 3,649,800 13,400,800 55,145,700 505,500 512,900 4,586,100 3,700 1,874,500 5,700 234,000 20,000 3,653,800 13,764,400 52,122,700 96,028,664 65,097,300 69,693,300 77,955,500 77,283,300 244,676,846 161,072,000 222,028,500 167,332,800 231,211,800 Total Fund Balance and New Sources 547,169,052 417,003,352 398,975,619 (a) Prior year unexpended sources and uses of funds are estimated and included in the Beginning Fund Balance. 322,864,621 384,517,686 Total Sources Subtotal 148,648,182 292 City of Scottsdale FY 2021/22 Adopted Budget - Volume One Table of Contents BUDGET BY FUND | Capital Improvement Plan Funds Five-Year Financial Forecast E x p e n di tu r e s Community Facilities Drainage / Flood Control Preservation Public Safety Service Facilities Transportation Water Management Prior Year Unexpended (a) Adopted 2021/ 22 Fo r e c a s t 2022/ 23 Fo r e c a s t 2023/ 24 Fo r e c a s t 2024/ 25 Fo r e c a s t 2025/ 26 104,798,562 19,404,292 42,543,999 28,927,181 40,113,769 258,597,420 326,851,815 - 7,832,614 12,885,251 450,000 40,540,727 28,763,526 50,825,345 64,996,000 536,806,260 21,145,961 30,975,811 2,238,650 22,309,880 126,628,734 45,316,100 509,215,190 9,450,586 2,712,250 1,812,719 14,265,651 33,154,637 35,763,000 520,001,528 1,600,000 30,724,750 236,000 932,065 23,060,652 48,696,000 452,837,936 Subtotal Less: Estimated Capital Improvement Expenditures (2 8 4 ,4 3 0 ,7 7 8 ) (2 3 3 ,8 8 4 ,5 3 3 ) (2 3 7 ,8 2 8 ,7 9 8 ) (1 6 4 ,3 2 2 ,4 3 5 ) (2 2 1 ,7 8 8 ,2 7 2 ) Subtotal: Unexpended at Year End 536,806,260 509,215,190 520,001,528 452,837,936 336,299,131 100,000 6,706,922 6,171,700 5,615,000 5,236,300 4,846,300 Transfers Out G.O. Bonds Fund Grants Fund In Lieu Fees Fund Intergovernmental Funds MPC Bonds - Stadium MPC Bonds - Water Solid Waste Fund Special Programs Fund Stadium Capital Improvement Fund Stormwater Fee Fund Tourism Development Fund Transportation Sales Tax (0.20%) Fund Water & Water Reclamation Funds Total Uses Subtotal 821,237,038 743,099,723 757,830,326 617,160,371 558,087,403 6,806,922 6,171,700 5,615,000 5,236,300 4,846,300 291,237,700 240,056,233 243,443,798 169,558,735 226,634,572 Ending Fund Balance (b) Aviation Funds Contingency 450,000 450,000 450,000 450,000 450,000 CIP Stormwater Utility Bill Fee Contingency 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 General Fund Contingency 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 Grant Contingency 8,600,000 8,600,000 8,600,000 8,600,000 8,600,000 Greater Airpark Special Improvements Contingency 2,000,000 Old Town Special Improvements Contingency 3,200,000 Sewer Rates Contingency 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Transportation 0.2% Sales Tax Contingency 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Water Rates Contingency 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Reserved: Reserved Fund Balance 255,931,352 176,947,119 155,531,821 153,305,886 157,883,114 Total Ending Fund Balance 255,931,352 176,947,119 155,531,821 153,305,886 157,883,114 (a) Prior year unexpended uses are based on annual cashflow estimates. (b) Contingencies are unfunded and allow for the expenditure of unanticipated revenue that are not included in the beginning or ending fund balance. City Council approval is required before use of capital contingencies. City of Scottsdale FY 2021/22 Adopted Budget - Volume One 293 Table of Contents 294 City of Scottsdale FY 2021/22 Adopted Budget - Volume One