BUDGET SUMMARY VOLUME ONE FY 2024/25 Budget Adopted FY 2024/25 Budget City of Scottsdale, Arizona Volume One Budget Summary City Council David D. Ortega, Mayor Barry Graham, Vice Mayor Kathy Littlefield Tammy Caputi Tom Durham Betty Janik Solange Whitehead Administrative Staff Jim Thompson, City Manager Ana Lia Johnson, Acting Budget Director Sonia Andrews, City Treasurer/CFO Trey Nilles, Sr. Budget Analyst Greg Caton, Assistant City Manager Linna Zhou, Sr. Budget Analyst Bill Murphy, Assistant City Manager JunJun Rose, Budget Analyst Brent Stockwell, Assistant City Manager Savita Swaroop, Dept. Systems Analyst/Prog. III TABLE OF CONTENTS FY 2024/25 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 Financial Overview ........................................................................................................................................ 21 Overview Executive Summary ....................................................................................................................................... 23 Final Budget Transmittal ............................................................................................................................... 33 Budget Adoption Ordinance .......................................................................................................................... 35 Property Tax Levy Ordinance ........................................................................................................................ 55 Proposed Budget Transmittal ....................................................................................................................... 57 Distinguished Budget Presentation Award ................................................................................................... 67 Top Digital Cities Award ............................................................................................................................... 68 Budget Development Process ....................................................................................................................... 69 Budget Calendar ............................................................................................................................................ 79 Adopted Comprehensive Financial Policies and Governing Guidance .......................................................... 80 Fund Accounting - Fund Types...................................................................................................................... 97 Budget by Fund Total Budget Overview .................................................................................................................................. 99 Total Appropriation ..................................................................................................................................... 103 General Fund ............................................................................................................................................... 107 Ambulance Service ......................................................................................................................... 112 Special Revenue Funds ............................................................................................................................... 135 Preservation Fund ........................................................................................................................... 137 Special Programs Fund................................................................................................................... 145 Stadium Facility Fund ..................................................................................................................... 161 Tourism Development Fund ........................................................................................................... 169 TABLE OF CONTENTS Destination Marketing .................................................................................................................172 Transportation Fund ....................................................................................................................... 183 Debt Service Fund ....................................................................................................................................... 195 Bonded Debt ................................................................................................................................... 203 Debt Service Expense .................................................................................................................... 210 Long-Term Debt Outstanding ......................................................................................................... 212 Enterprise Funds ......................................................................................................................................... 213 Water and Water Reclamation Funds ............................................................................................. 215 Solid Waste Fund ............................................................................................................................ 237 Aviation Fund .................................................................................................................................. 251 Internal Service Funds ................................................................................................................................. 265 Healthcare Self Insurance Fund ..................................................................................................... 267 Fleet Management Fund ................................................................................................................. 277 Risk Management Fund .................................................................................................................. 289 PC Replacement Fund .................................................................................................................... 301 Grants & Special Districts Funds Grant Funds .................................................................................................................................... 307 Special Districts Fund ..................................................................................................................... 315 Table of Contents REPORT TO OUR COMMUNITY for Fiscal Year 2023/24 Scottsdale: Building Community in the Desert Scottsdale’s dedication to building a community known for outstanding livability, community prosperity and distinctive character is evident in thoughtfully designed civic spaces and engaging programs. These resources invite residents of many backgrounds and experiences to gather, connect and engage. Each park, plaza and public venue is a testament to Scottsdale’s commitment to strengthening community bonds and celebrating the unique spirit of the city through placemaking. This focus is guided by General Plan 2035, which was approved by voters in November of 2021, and envisions Scottsdale as a city that provides exceptional experience, outstanding livability, community prosperity and distinctive character. Scottsdale’s General Plan 2035 comprises seven different community values, which provide focus to this year’s achievements and next year’s objectives. Continue reading to learn how Scottsdale is striving to fulfill the community’s aspirations and ensuring a sustainable and successful future for residents. 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. Connecting the Community through Civic Center and Old Town Events 25,000+ visitors attended events at Scottsdale Center for the Performing Arts 130,000 people attended the 2024 Spring Training season 11,400 children and their parents sat in for storytelling at Civic Center Library Respect Character and Culture Scottsdale protects and enhances the community’s unique features 30+ residents graduated the Government 101 Citizen Academy Learn more at ScottsdaleAZ.gov, search “get involved” Highlighted Accomplishments • This year’s Arabian Horse Show saw its highest participation ever recorded, with 250,000 attendees. This longstanding event, running for 68 years in Scottsdale, supports charitable organizations including Phoenix Children’s Hospital and March of Dimes with its proceeds. • The Development Review Board approved amendments to the Old Town Scottsdale Urban Design & Architectural Guidelines to ensure the community’s aesthetic vision for Scottsdale’s downtown area aligns with recent City Council-adopted amendments to the Old Town Scottsdale Character Area Plan and the city’s Zoning Ordinance. Hashknife Pony Express Looking Forward • In 2024/25, the city will once again conduct the National Community Survey, a biennial effort to gather community wide feedback through a random sample survey. Results are used throughout the organization to improve service and identify emerging priorities. 1 Table of Contents Conserve and Preserve the Environment Scottsdale leads in the stewardship of the Sonoran Desert environment Highlighted Accomplishments • The Parks and Recreation team participated in the Tree City USA program for the 42nd consecutive year, planting 471 trees for a total of over 24,000 trees across Scottsdale. The 48 square miles of Scottsdale’s McDowell Sonoran Preserve is the equivalent to 36 of New York City’s Central Park • Scottsdale residents have saved 9.3 million gallons of water, thanks to the WaterSmart portal leak detection system. This tool monitors water usage, alerts customers to potential leaks, and optimizes water conservation. Looking Forward • The Solid Waste Transfer Station will be upgraded to enable businesses to divert green waste from the landfill by bringing it to the transfer station, where it will be repurposed for mulch or compost. These diversion initiatives support sustainability by reducing landfill waste and provide resources for residents. Learn more at ScottsdaleAZ.gov, search “preserve” NOT TO SCALE Collaborate and Engage Scottsdale fosters transparent, responsive and collaborative community involvement Highlighted Accomplishments • T  he Protect and Preserve Scottsdale Task Force provided a final recommendation to City Council on a financial strategy to maintain open spaces in the city. • Scottsdale was named the Top Digital City for 2023 by the Center for Digital Government (CDG) for cities of our size. This award is an annual recognition given to cities across the United States that demonstrate exemplary use of technology to improve public service, enhance transparency, and engage citizens effectively. Scottsdale 101 Citizens Academy • The Neighborhood College program provides residents and HOAs with resources, information, and tools to become active community leaders. During 2023, 20 classes were held both in-person and virtually, with 642 participants. Looking Forward • There will be public engagement opportunities about sustainability in Fall 2024. Topics for discussion will include energy, water, waste, air quality and extreme heat. Reporting issues is EZ 2 Residents made 39,184 requests using Scottsdale EZ last year. The number one request? Residential container repair. Have a broken recycling container or other issues? Report it at ScottsdaleAZ.gov, search “EZ”. Table of Contents Foster Well-Being 6:07 minutes average police response time. Scottsdale promotes a culture of physical and mental health, safety and well-being 5:22 minutes average fire response time. Highlighted Accomplishments • Through the Bridge Housing Program, Human Services achieved an 86 percent success rate providing a safe and stable place to stay for seniors and families with minor children who have been displaced from their Scottsdale home. The program includes supportive services to assist participants with securing stable housing within 120 days and has served 168 participants since its start. • Scottsdale Police Department hosted the largest department event in history, a Town Hall to address the dinnertime burglaries. 1,500 residents attended the event in-person, and another 2,000 joined the session online! Looking Forward • The construction of the Thomas A. Hontz Police and Fire Training Facility is scheduled to be completed in Fall 2024. This public safety facility is a Bond 2019 project. • An ambulance program will launch services in January 2025. The addition of ambulatory training to the fire department will improve the level of emergency medical care for Scottsdale residents. Connect the Community Scottsdale connects all community members through safe and efficient mobility options Fire Department public education and outreach connected with 45,000 people. Scottsdale libraries welcomed more than 109,519 visitors. 322 volunteers with Vista del Camino & Paiute neighborhood centers. 20,001 food boxes provided at senior and community centers. Scottsdale’s McDowell Sonoran Preserve had 815,000 visits. Advance Innovation and Prosperity Scottsdale embraces a diverse and innovative economy Highlighted Accomplishments Highlighted Accomplishments • The Council’s policy decisions and the infrastructure initiatives led by the Transportation and Streets Department have resulted in a nearly 66 percent decrease in serious vehicular collisions over the last 30 years, accompanied by a reduction in fatal collisions. Initiatives include roundabouts, enhancements at intersections, safety upgrades and the strategic diversion of city traffic to freeways. • In support of the Buy Local initiative, Scottsdale sponsored participants for the ImpactAZ 2025 program, resulting in public education workshops to assist local businesses with bidding and contracting procedures that will allow them to do business with the city. • Scottsdale received the gold-level Bicycle Friendly Community award from the League of American Bicyclists for the 4th year in a row. Achieving the gold level has many requirements which span across five categories, known as “the 5 Es”: engineering, education, encouragement, evaluation and planning, and equity and accessibility. Looking Forward • The construction of a pedestrian tunnel will provide residents with a safe route under Chaparral Road connecting Chaparral and Camelback parks. This project exemplifies ongoing infrastructure efforts aimed at enhancing pedestrian safety and reducing injuries from vehicular accidents. Looking Forward • The High Performance and Innovation Team relaunched as the Scottsdale Innovation team. In Fiscal Year 2024/25, this team has secured new funding to launch innovative pilot projects throughout the city. The funding will provide seed funds to develop projects using innovative technologies, programs and services. • The Scottsdale College Promise agreement was approved by City Council in June of 2024, giving way to the creation of a scholarship fund for Scottsdale high school graduates and Scottsdale residents. Looking ahead, the city will work with its educational partners to develop an accompanying internship program to encourage public service career pathways for students. 3 Table of Contents Revitalize Responsibly Scottsdale vigorously evaluates the short and long-term impacts of development and redevelopment decisions Highlighted Accomplishments • On May 6, 2024, the City Council passed ordinance changes to address negative impacts of vacation rentals. These include prohibiting minors from renting properties, adding promoters as a responsible party, and giving police authority to ask non-residents to leave a property after a nuisance party is declared. Looking Forward The typical Scottsdale household pays less for monthly water, wastewater, trash and recycling services than the average rates for other Valley cities. Source: 2024 Comparative Cost of Services $74 $106 $116 $147 CHANDLER SCOTTSDALE AVERAGE * MESA Values are rounded to the nearest dollar. Bills may vary based on actual usage and size of property *Average of the eight largest cities in the Valley • The Special Noise Violations Ordinance staff working group continues to address sound concerns while balancing special events and business needs with residents’ quality of life. A City Council Work Study has been completed, and a draft ordinance is in progress to be presented to the public for community input this fall. The ordinance seeks to maintain a vibrant entertainment culture while managing impacts of sound on nearby residential neighborhoods. Resources and Expenses Scottsdale is required by law to adopt a budget each year and cannot spend more than the total budgeted amount. This includes all city funds for the fiscal year ending June 30. City Council adopted the Fiscal Year 2024/25 budget in June 2024. The city’s financial statements are audited annually by an independent auditor. 2023/24 BUDGET Taxes and Service Charges are collected to support city services and pay for debt service. Capital set aside for future projects that is not to be spent by year-end. Starting in 2025, the amount budgeted for capital projects is expected to be spent by year-end. Fund Balances consist of accumulated surpluses from prior years held in contingency and reserve. Total Resources Available $1,056.2 2024/25 BUDGET $1,261.5 BUDGET $739.1 2024/25 BUDGET $761.7 $1,368.9 $1,006.5 $1,068.4 $1,295.0 $964.3 $3,027.0 $2,556.5 Resources (in millions of dollars) Learn more at ScottsdaleAZ.gov, search “finance” 4 2023/24 Operating Budget pays for city services and the employees that provide those services. Capital Budget is used to construct major facilities and infrastructure including building and roads. $425.3 $464.7 Contingency & Reserves are set aside for emergency use. $2,533.3 $2,294.8 Total Expenses Approved Expenses (in millions of dollars) Rounding differences may occur Table of Contents CITY ORGANIZATION An Introduction to Our Leadership 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 Learn more at ScottsdaleAZ.gov, search “about” Mayor & City Council Citizen Advisory Groups BOARDS AND COMMISSIONS CITY TREASURER Accounting Budget Business Services Finance Purchasing City Attorney Presiding Judge CITY COURT Scottsdale has 21 boards and commissions. For more info, go to ScottsdaleAZ.gov/boards City Treasurer / CFO Charter Officers City Auditor City Manager CITY MANAGER City Manager’s Office ADMINISTRATIVE SERVICES Communications -Citizen Service -Diversity & Inclusion -Government Relations Human Resources COMMUNITY & ADMINISTRATIVE ECONOMIC SERVICES DEVELOPMENT Information Technology Aviation Economic Development Planning & Development Services Tourism & Events COMMUNITY SERVICES Human Services Libraries Parks & Recreation Planning & Business Operations Preserve WestWorld WATER Water Quality Reclamation Services Planning & Engineering Technology & Administration Water Services Pipeline & Treatment Agreements CITY MANAGER Emergency Management City Clerk Assistant City Manager Assistant City Manager Police Chief Executive Leadership Assistant City Manager CITY ATTORNEY Civil Prosecution Risk Management Victim Services Fire Chief CITY AUDITOR CITY CLERK Council Support Election Services Records Management POLICE Uniformed Services Investigative Services Operational Services FIRE Operations Services Professional Services Fire & Life Safety PUBLIC WORKS Capital Projects Facilities Fleet Solid Waste Transportation & Streets 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 residents oversee city government and set policy, approve programs, appropriate funds, enact laws, select charter officers, and appoint the members of the city’s advisory boards and commissions. 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 first term as mayor 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 citizen-driven government, economic vitality and community wellness. 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 McDowell Sonoran Conservancy. He is a past president of the Scottsdale Sunrise Rotary Club. Mayor Ortega and his wife, Rosemary Gannon, have been married for 44 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 Caputi began her first term on the 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 a Bachelor of Arts degree in Economics Councilwoman from Wellesley College in Tammy Caputi 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. TCaputi@ScottsdaleAZ.gov | 480-312-7402 6 Councilmember Durham began his first term on the 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 history. After graduating from Cornell College, Councilmember he attended New York Tom Durham 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 is a retired Episcopal deacon, and they have two sons who live in the Midwest. TDurham@ScottsdaleAZ.gov | 480-312-7456 Table of Contents Councilmember Graham began his first term on the City Council in January 2023. He grew up in northern Scottsdale and was an allstate athlete at Chaparral High School. Today he lives in southern Scottsdale where he and his wife, Farrah, are raising their twin sons. He is a Certified Public Accountant (CPA) for one Vice Mayor of the most prestigious Barry Graham accounting firms in Arizona. He specializes in auditing the financial statements and analyzing the performance of private businesses, most of which are based in Arizona. Barry spent several years after high school in Massachusetts, earning undergraduate degrees from Boston University in Economics and International Relations. While working as an analyst in the Massachusetts State Legislature, Barry graduated from the University of Massachusetts with a Master of Science in Accounting where he delivered the commencement address. Barry has served as a precinct committeeman since 2012 and was twice-elected treasurer of his political party’s local legislative district. BGraham@scottsdaleaz.gov | 480-312-7454 Kathy Littlefield began her third term on the City Council in January 2023. 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 2015) and continues to manage …and continues to manage their successful Councilwoman Scottsdale-based company, Kathy Littlefield NetXpert Systems, Inc. dba Flight Skills. 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. Councilwoman Janik began her first term on the 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 research concentrated Councilwoman on dissolving blood Betty Janik 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 over 50 years. They have three grown children, all physicians, and nine delightful grandchildren. BJanik@ScottsdaleAZ.gov | 480-312-2374 Councilwoman Whitehead began her second term on the City Council in January 2023. She came to Scottsdale in 1996 from San Diego for ‘just six months’, fell in love with everything Arizona and never went back. She is an electrical engineer, a Granite Reef Senior Center volunteer, and a Councilwoman former Scottsdale Preserve Solange Whitehead Commissioner. During her tenure, Scottsdale has increased protections for the McDowell Sonoran Preserve, dedicated new parks, expanded water conservation programs, and increased funding for the city’s infrastructure and public safety. Councilwoman Whitehead and her husband have three grown children and spend a lot of time outdoors. SWhitehead@ScottsdaleAZ.gov | 480-312-7423 KLittlefield@ScottsdaleAZ.gov | 480-312-7412 7 Table of Contents Charter Officers 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 manager, city attorney, city auditor, city clerk, city treasurer/chief financial officer, 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. Highlighted Recognition Scottsdale Airport Receives FAA WesternPacific Region Outstanding Airport Award The Federal Aviation Administration (FAA) is responsible for managing air traffic in U.S. airspace. The award recognizes airports that excel in various aspects of airport management and development. Scottsdale was lauded for its dedication to operational excellence and innovation, safety and community engagement in completing substantial improvement and construction projects. 171,675 take offs and landings occurred at Scottsdale Airport in 2023, making it one of the busiest singlerunway general aviation airports in the state, and among many reasons Scottsdale Airport was inducted into the Scottsdale History Hall of Fame in 2023. Civic Center Wins the Crescordia Award Jim Thompson City Manager JThompson@ScottsdaleAZ.gov 480-312-2800 Sherry R. Scott City Attorney SScott@ScottsdaleAZ.gov 480-312-2405 Arizona Forward awarded Scottsdale Civic Center the Crescordia award for “Civic Buildings, Structures, and Landscape Design.” This award recognizes outstanding achievements in various categories of environmental design, including civic buildings, structures, and landscape design, highlighting projects that exemplify exceptional sustainability and harmony with the environment. Designed with sustainability in mind, the project features bioswales for stormwater management, permeable pavements with underground water systems, roof water collection at the East Bowl to support existing trees, and new low-water plants. Scottsdale Water Achieves Excellence and Receives 15 Awards from AZ Water Association Lai Cluff Acting City Auditor LCluff@ScottsdaleAZ.gov 480-312-7851 Sonia Andrews City Treasurer & Chief Financial Officer SAndrews@ScottsdaleAZ.gov 480-312-2364 8 Ben Lane City Clerk BLane@ScottsdaleAZ.gov 480-312-2412 Marianne Bayardi Presiding Judge MBayardi@ScottsdaleAZ.gov 480-312-7604 Scottsdale Water won the Water Distribution System of the Year award for the Large System category, showing Scottsdale’s sophisticated water delivery system. Team members not only surpass industry metrics but also play a crucial role in enhancing the public outreach program. Scott Piros of the Gainey Ranch Treatment Facility won the Small Treatment Plant Supervisor of the Year. Scott was recognized with the award for enhancing preventive maintenance processes, boosting operator engagement, and applying proactive methods to address treatment issues. Finally, Scottsdale Water’s facilities and departments won thirteen of the association’s Safety awards. This recognition is given to those who create safe working environments and protect the health and well-being of employees and the public. Find more recognitions and rankings at ScottsdaleAZ.gov, search “recognition and rankings” 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. Our community 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 and pickleball courts, parks, pools, and hundreds of miles of 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 is home to more than 244,000 residents enjoying the rich diversity of experiences offered within the city’s 185 square miles. Juneteenth Celebration Veterans Day – Boy Scouts of America Western Week – Dancers Dogs Day Out - Tail Waggin’ Tales Scottsdale Public Library 9 Western Heritage, Extraordinary Living Table of Contents Business Scottsdale features a diverse economy with key sectors like IT services, finance, healthcare innovation, logistics, tourism and corporate headquarters. The city has over 31,000 companies and more than 220,000 jobs. Notable business districts include Old Town Scottsdale, a charming glimpse into the city’s history with its Western-themed storefronts, galleries and restaurants. The Scottsdale Airpark, to the north, is the city’s largest employment area, housing corporate headquarters, technology firms and aviation-related businesses. In southern Scottsdale, the McDowell Road Corridor provides access to freeways, Sky Harbor International Airport and SkySong, ASU’s Innovation Center, where companies can collaborate and innovate. Tourism With its excellent weather, stunning landscapes and a bustling calendar of events, Scottsdale attracts nearly 11 million visitors each year. Scottsdale’s visitors contribute an estimated $3.5 billion annually to the local economy and additionally, they generate nearly $73.8 million in tax revenue, representing more than 20 percent of the city’s total tax income. Scottsdale’s destination marketing organization, Experience Scottsdale and city staff used the newly updated Tourism and Events Strategic Plan to improve experiences for tourists and residents. Scottsdale created targeted promotions for the Arts District and Museum of the West and successfully launched the Fall in Love campaign for the Civic Center renovation with over 70 events held in October and November 2023. Partnerships with Old Town businesses enhanced annual events such as Scottsdazzle and Western Week. The Tourism Development Commission funded 38 events, with a marketing impact valued at $2.3 million, nearly double the funding provided at $1.2 million. The Commission’s funding comes from the “Bed Tax” and is a crucial part of maintaining Scottsdale’s appeal as a destination. Special Events Every year, residents, visitors and TV viewers alike enjoy Scottsdale’s world-class sporting and cultural events. Scottsdale resorts host Fiesta Bowl teams, while Old Town becomes a hub for sports enthusiasts. The BarrettJackson Collector Car Auction headlines a week of automotive attractions, featuring over 40 hours of live TV coverage. Scottsdale’s events season includes the festive Parada del Sol Historic Parade and Trail’s End Festival and the Scottsdale Arabian Horse Show—one of the nation’s largest. In March, Major League Baseball takes center stage as Old Town Scottsdale becomes the spring training home of the San Francisco Giants. With the NCAA Men’s Final Four in Arizona, Scottsdale’s Waterfront became a fan destination attracting 23,000 visitors to its basketball-themed installation, the Canaley-Oop. With the help of the Local Organizing Committee, Scottsdale transformed the Marshall Way Bridge with a sports court, “live” NCAA tournament bracket board, a 13-foot cactus hoop basketball statue and hosted three event days. Scottsdale’s Waterfront NCAA Men’s Final Four Installation 10 Western Week Table of Contents Scottsdale Top Attractions Taliesin West McCormick-Stillman Railroad Park Indian Bend Wash Greenbelt Scottsdale Airport/Airpark Scottsdale Fashion Square Scottsdale Waterfront 1 Civic Center WestWorld 2 3 4 5 TPC Scottsdale 6 7 Preserve Gateway and Scottsdale’s McDowell Sonoran Preserve Pinnacle Peak Park 12 9 10 11 8 Scottsdale’s Museum of the West 13 Scottsdale Stadium 11 Table of Contents Connecting Residents to Physical and Digital Civic Spaces As a world class desert city and destination, Scottsdale invests in public spaces that connect and engage residents with the city and each other. Scottsdale is a community of choices, welcoming to, and inclusive of, diverse cultures and lifestyles and seeks to create both physical and digital civic spaces for our residents. Premier Community Spaces The newly remodeled and award-winning Scottsdale Civic Center is a vibrant testament to the city’s commitment to public engagement. Realizing the vision developed by the community, Civic Center returned as a signature venue, perfect for events and gatherings, casual strolls and relaxation in the historic heart of Scottsdale. Approved by voters in the 2019 Bond election, this project includes a new 360 Stage with surrounding lawns, splash pad and new water features and landscaping, saving 400,000 gallons of water. Residents can enjoy new outdoor activities, events and concerts as well as enjoy the world-class public art and access key community spaces such as the Civic Center Library, City Hall, Scottsdale Museum of Public Arts and the Scottsdale Center for Performing Arts. Scottsdale Civic Center, Photo by Aero Drone Visions Innovative Digital Civic Engagement To foster community engagement, the City of Scottsdale developed innovative digital platforms that enable residents to connect and provide feedback on important issues. Through the use of QR codes strategically placed in physical locations, residents can easily access Hello Scottsdale, a mobile/SMS engagement platform, to voice their opinions on various matters. Moreover, Scottsdale boasts a robust online presence, with 110,000 followers across social media channels, 13,000 subscribers to the city’s weekly e-newsletter and 6,258 residents actively participating in the city’s questionnaire platform, Polco. These digital spaces allow Scottsdale more avenues of contact and communication so residents can stay up to date in the community and provide important feedback. Through digital and physical spaces, Scottsdale progresses as a sophisticated city while maintaining our small-town charm. Books to Boogie Event 12 Jazz Ambassadors Event Table of Contents DEMOGRAPHICS Scottsdale by the Numbers: A Demographic Summary Source: U.S. Census Quickfacts 1951 2,021 1960 10,026 1970 67,841 1980 88,364 Scottsdale is the 48th largest city in the U.S. by area. U.S. Census Bureau Quickfacts and City of Scottsdale 1990 2000 130,069 202,705 2010 217,365 2021 2022 242,753 2023 243,050 244,394 Over 6,000 people directly serve the residents of Scottsdale. Source: U.S. Census Bureau Quickfacts and City of Scottsdale 6 Appointed Charter Officers 6 Council Members 1 Mayor 168 Board & Commission Members SCOTTSDALE’S 244,394 2,719 RESIDENTS Employees ARE SERVED BY 31 miles long 4,501 184.5 square miles Volunteers Scottsdale’s elevation rises by nearly 4,000 feet from south to north. Source: City of Scottsdale and Scottsdale Airport Weather Station 1,510 ft 1,150 ft Lowest point 67° 44° 83° 59° 87° 63° 103° 80° 4,877 ft Highest Point (Butte Peak) Scottsdale Airport Change in Elevation 11.4 miles wide 13 Table of Contents Scottsdale Residents Scottsdale’s median age of 48.7 is more than 10 years older than the U.S. median age of 38.5. Median Age (US): 38.5 | Median Age (Scottsdale) 48.7 Age Under 5 7,686 5–19 29,213 20–24 12,953 1 in 5 Scottsdale residents is a person of color. 25–54 92,365 55–74 67,540 While most Scottsdale residents speak English, 1 in 8 can also speak another language. Hispanic or Latino: 10.4% Other languages 2,099 (0.9%) Asian: 5.2% 5,116 (2.2%) English and another language AfricanAmerican: 2.1% 30,597 (13.2%) NativeAmerican: 0.7% Indo-European languages 9,637 (4.1%) White: 83% 3 in 5 Scottsdale residents over age 25 have earned a bachelor’s degree or higher. Less than High School Graduate 21,258 (11%) High School Graduate 14 English only 201,903 (86.8%) Asian and Pacific Islander languages Two or more races: 3.1% 5,201 (3%) 75+ 32,388 46,798 (25%) Associate Degree/ Some College 116,035 (61%) Bachelor’s Degree or higher Spanish 13,745 (5.9%) Table of Contents Scottsdale has the highest median housing price of any of the large cities and towns in the Valley. $327,700 $340,200 $ $ $ Glendale Mesa Phoenix $310,000 $382,100 $383,600 Tempe Peoria $ Almost 3 in 4 Scottsdale residents live in single unit housing $651,000 $423,900 $ $ $ $ $454,300 Chandler Gilbert Scottsdale More than half of all Scottsdale households make more than $100,000 a year. Population in single unit housing 23.0% 175,793 (73.8%) less than $49,999 (26,599) 52.2% $100,000 or more (60,468) 24.8% $50,000-$99,999 (28,759) Population in multi-unit housing 60,393 (25.4%) Population in other housing (Mobile Home, Boat, RV, Van, etc.): 2,028 (0.9%) The majority of housing units in Scottsdale are owner occupied. 84.7% occupied housing (115,826) 56.8% owner occupied (77,574) 1.4% homeowner vacancy rate 28.0% renter occupied (38,252) 5.6% rental vacancy rate 15.3% seasonal & vacant units (20,839) 136,665 total housing units Source: U.S. Census Bureau 15 Table of Contents 7,459 Healthcare and finance firms lead the list of top employers. employees Source: City of Scottsdale Economic Development Department (2024) 3,133 employees 2,753 employees 2,719 employees 2,565 employees 1,752 1,559 employees City of Scottsdale Full-time Employees and Their Funding Sources employees 1,410 employees 1,345 employees 1,284 employees More people come to work in Scottsdale each day than leave to work in other communities. Source: U.S. Census Inflow/Outflow Analysis (2020) Scottsdale businesses and organizations have 199,995 employees Non-Public Safety General Fund 850 (35%) 31,332 work/live in Scottsdale 168,663 workers enter Public Safety 1,021 (42%) Aviation 15 (<1%) Enterprise Funds* Other Funds Solid Waste 104 (4%) Water 235 (10%) 225 (9%) *An Enterprise Fund operates similarly to a private business. Instead of taxes, revenues are generated from user fees or charges which cover all operating and capital expenses 77,184 work elsewhere 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 SIMPLY BETTER SERVICE for Fiscal Year 2023/24 Scottsdale employees provide Simply Better Service that helps keep the community clean and healthy. Learn more at ScottsdaleAZ.gov, search “about” 17 Table of Contents Scottsdale employees provide Simply Better Service that help keep our World-Class Community safe. 18 Table of Contents Scottsdale employees provide Simply Better Service that enhance the quality of life of residents and visitors. 19 Table of Contents Scottsdale has a vibrant business community and is a destination for arts, dining and tourism. 20 Table of Contents FINANCIAL OVERVIEW for Fiscal Year 2024/25 Making Cents of Numbers The City of Scottsdale implements the priorities of the residents through funding of programs and services. The budget is the highest form of policy by the City Council and is presented in multiple formats to accommodate a variety of audiences. The city invites Scottsdale residents to provide input annually throughout the budget development and adoption. Scottsdale is always looking to improve while ensuring providing Simply Better Service for a World-Class community. Community Feedback September - January April Prepare Propose Departments work to forecast and refine forthcoming budget requests Proposed Budget is presented to City Council May June Review & Adopt Adopt City Council sets the rates and fees for the fiscal year. Residents can provide their thoughts City Council adopts the final budget. Residents can provide their thoughts Adopted Budget (all funds) Scottsdale’s budget is balanced as the city has more resources available than it is using Total Resources $2,556.5 (in millions of dollars) Total Uses $2,294.8 (in millions of dollars) Scottsdale’s Budgets Scottsdale’s annual budget includes two main components, one is for capital projects that become long-time assets and the other is for city operations, which fund services for the public. Capital Budget Funds long-term investments in the city such as building, acquisition and improvement of infrastructure and facilities. Operating Budget Funds the day-to-day city operations and services. Top Uses of Funds FY 2024/25 Budget $1,091.1 (in millions of dollars) Water Management $451.1 Transportation $250.3 Service Facilities $133.3 All other uses of funds: $256.4 Top Uses of Funds FY 2024/25 Water Resources $243.6 $1,203.7 Public Safety $216.8 Budget (in millions of dollars) Public Works $124.1 All other uses of funds: $619.2 21 Table of Contents Where Do My Property Taxes Go? Total: $68.2 million SCHOOLS/EDUCATION MARICOPA COUNTY 57% 18% CITY SERVICES SPECIAL DISTRICTS CITY DEBT SERVICES 8% 10% 7% Some property tax numbers may vary based on location in Scottsdale Scottsdale has one of the lowest property and sales tax rates in the Valley. Property tax on a $300,000 house Sales tax on a $30,000 car $257 $279 $427 $448 MESA SCOTTSDALE AVERAGE * GLENDALE $450 $525 $583 $870 CHANDLER & GILBERT SCOTTSDALE AVERAGE * GLENDALE This year, Scottsdale’s property tax rate dropped by 5.1%! *Average of the eight largest cities in the Valley. The housing figures are reflective of the assessed value Where Do My Sales Taxes Go? Total: 8.05% State Sales Tax 5.6% City of Scottsdale Sales Tax 1.75% County Sales Tax 0.7% 0.35% 0.20% for land acquisition (expires 2025) 0.15% for land improvements (expires 2034) 22 PUBLIC SAFETY AND OTHER CITY SERVICES PRESERVE 1.10% TRANSPORTATION 0.30% 0.10% minimum public safety requirement 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 2024/25. This Executive Summary complements that information highlighting items, issues and trends that shaped the budget. The adopted FY 2024/25 budget anticipates a decline in sales tax revenues from the state’s elimination of the residential rental tax offset by continued consumer spending, although at a slower pace as inflation risks persist despite being down considerably. Scottsdale’s economy and tourism activities continue to be resilient, however with future uncertain economic conditions and anticipated reductions in state shared revenues, we must ensure the split between ongoing sustainable revenues and one-time revenues is appropriate. CITY COUNCIL POLICY DECISIONS The following are the major policy items included in the city’s adopted FY 2024/25 budget: • $42.1 million General Fund transferred to the CIP ensuring compliance with Scottsdale’s Financial Policies Appendix A – Budgeting Governing Guidance. • $8.0 million General Fund for the cost of implementing a comprehensive classification and compensation study ($11.3 million all funds). • $2.8 million General Fund ($4.1 million all funds) for the citywide pay for performance program to eligible employees. • $4.7 million General Fund for market adjustment ($5.9 million all funds). • $0.4 million General Fund decrease ($0.6 million all funds) mostly from PSPRS retirement rate adjustments. • $1.0 million General Fund ($1.1 million all funds) for the vacation buyback program for eligible employees. • $5.6 million to establish Phase I of ambulance transportation operations. This includes hiring 29 additional staff. • $1.4 million to equip and staff the newly constructed Fire Station 612. This includes hiring 22 additional staff. STAFFING CHANGES The city’s total FTE count for FY 2024/25 is 2,700.45 which is a net increase of 61.56 FTE from the prior year adopted budget. 23 Table of Contents OVERVIEW | Executive Summary A grant-funded Police Forensic Scientist I position was added after the FY 2023/24 budget was adopted. The positions that were added in FY 2024/25 were spread across divisions where needs had been identified. For example: • Administrative Services: 1) a Human Resources Analyst (1.00 FTE) position; and 2) a Human Resources Supervisor (1.00 FTE) position who will be responsible for Strategic Human Resources Initiatives. • Public Safety - Fire: 1) the staffing of Fire Station 612 which will include seven Firefighters (7.00 FTE Sworn), eight Fire Captains (8.00 FTE Sworn), four Fire Engineers (4.00 FTE Sworn), and three Battalion Chiefs (3.00 FTE Sworn); 2) the staffing for Phase I of the new ambulance service which includes the addition of 20 Firefighters (20.00 FTE Sworn), one Fire Captain (1.00 FTE Sworn), one Fire Captain (1.00 FTE Non-Sworn), one Equipment Coordinator (1.00 FTE), one Senior Administrative Assistant (1.00 FTE), one Warehouse Supervisor (1.00 FTE), one Systems Integrator (1.00 FTE), one Medical Director (1.00 FTE), one Ambulance Billing Specialist (1.00 FTE), and an Ambulance Transportation Manager (1.00 FTE); and 3) staff associated with the training facility, which includes: two Fire Captains (2.00 FTE Sworn), one Training Specialist (1.00 FTE), one Equipment Coordinator (1.00 FTE), and a Senior Administrative Assistant (1.00 FTE). • Public Works: a Fleet Technician III position to work on the increased number of Fire Department vehicles, including ambulances. These staffing changes are summarized in the following schedule, using full-time equivalent positions (FTEs). FY 2023/24 Adopted FTEs 2,638.89 PUBLIC SAFETY - Police PUBLIC SAFETY - FIRE POLICE FORENSIC SCIENTIST I (a) 1.00 AMBULANCE BILLING MANAGER 1.00 1.00 AMBULANCE TRANSPORTATION MANAGER 1.00 ADMINISTRATIVE ASSISTANT SR 2.00 CITY MANAGER EMERGENCY MANAGEMENT COORD 1.50 EQUIPMENT COORD/RADIO TECH 2.00 EMERGENCY MANAGER 1.00 FIRE BATTALION CHIEF (56) - (SWORN) 3.00 2.50 FIRE CAPTAIN (40) - (SWORN) 3.00 FIRE CAPTAIN (56) - (SWORN) 9.00 ADMINISTRATIVE SERVICES HUMAN RESOURCES ANALYST 1.00 FIRE ENGINEER (56) - (SWORN) 4.00 HUMAN RESOURCES SUPERVISOR 1.00 FIREFIGHTER (56) - (SWORN) 27.00 2.00 MEDICAL DIRECTOR 1.00 SYSTEMS INTEGRATOR 1.00 COMMUNITY SERVICES (b) LIFEGUARD/INSTRUCTOR 1.32 TRAINING SPECIALIST 1.00 POOL MANAGER ASSISTANT 0.24 WAREHOUSE SUPERVISOR 1.00 1.56 EMERGENCY MANAGEMENT COORD (1.00) EMERGENCY MANAGER (1.50) PUBLIC WORKS FLEET TECHNICIAN III 1.00 53.50 1.00 (a) (b) Net Change from adopted FY2023/24(a) 61.56 FY 2024/25 Adopted FTEs 2,700.45 A grant funded Police Forensic Scientist I position was added after the FY 2023/24 budget adoption. 1.32 FTE hours reclassified within the Community Services Division throughout FY 2023/24. 24 Table of Contents OVERVIEW | Executive Summary HOW THE ADOPTED BUDGET WILL AFFECT CITIZENS’ PROPERTY TAX RATES The FY 2024/25 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 $1.2 million for tort liability claim payments made during calendar year 2023. For FY 2024/25, the city’s total primary property tax levy of $39.6 million is a decrease of $0.2 million over the FY 2023/24 levy of $39.4 million. The decrease is due to a reduction in the amount needed for tort claims, partly offset by the two percent statutory adjustment, and new construction. The FY 2023/24 primary property tax rate of $0.5150 per $100 of assessed valuation will decrease by $0.0192 to $0.4958 in FY 2024/25. For FY 2024/25, the city’s secondary property tax levy will also decrease $0.8 million from the FY 2023/24 adopted budget of $35.6 million to $34.8 million. The decrease is due to the use of accumulated fund balance in FY 2023/24 and a reduction in debt requirements, offset by refunds for Qasimyar vs Maricopa County judgement, tort liability claim payments, the two percent statutory adjustment, and new construction. The FY 2023/24 secondary tax rate of $0.4664 will decrease by $0.0306 to $0.4358 per $100 of assessed valuation in FY 2024/25. The combined tax levy is the aggregate of the primary and secondary levies. For FY 2024/25, the city’s total combined property tax levy decreased by approximately $0.4 million from $74.9 million in FY 2023/24 to $74.5 million in FY 2024/25. In FY 2024/25, citizen tax bills will reflect a combined property tax rate of $0.9316, which is $0.0498 less than the FY 2023/24 combined rate of $0.9814. 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 assessed value of $100,000 will pay approximately $93.16 in city property taxes, applying the combined property tax rate. The Maricopa County Assessor’s Office, not the City of Scottsdale, determines real property assessed values used to calculate property tax bills. CHANGES FROM PROPOSED TO ADOPTED BUDGET The budget development process is an ever changing one. Below lists the changes that were made between the proposed budget release, and this final budget. • Added funding to the Indian Bend Wash Underpass capital project as approved by City Council on April 2, 2024 ($1.5 million). • Added funding for the new Fire Station as approved by City Council on April 16, 2024 ($0.6 million). • Adjusted budgets to reflect the implementation of the Classification and Compensation Study, which resulted in the use of $1.3 million of non-General Fund contingency. The total budget appropriation did not change. • Moved Emergency Management Services from the Fire Division to the City Manager Division. Those are the adjustments during the budget process, and additional changes will be made as needed. FUND HIGHLIGHTS The remainder of this Executive Summary highlights the key elements of each fund in the FY 2024/25 budget. The General Fund is presented first and in more detail because of its size and importance. 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 2024/25 are $439.7million, approximately $3.6 million more than the FY 2023/24 adopted budget. The following bar graph summarizes the major sources. 25 Table of Contents OVERVIEW | Executive Summary Note: Rounding differences may occur That total projected increase comes from a net of several different sources. Below highlights the sources contributing significantly to the change: • $0.5 million from a projected slight increase in anticipated general fund sales tax collections. • $1.2 million from projected Electric & Gas Franchise collections explained by higher electric usage and rates. • $12.8 million net reduction from the city’s proportionate slices of state shared income tax, sales tax, and vehicle license fees mostly due to the impact of a State imposed flat tax policy. • $4.5 million mostly from a new Ambulance Service. • $1.4 million from Building Permit Fees & Charges to help cover inflationary costs and department operating costs to provide an excellent customer experience. • $0.2 million from WestWorld Equestrian Facility Fees based on anticipated events and establishing a more appropriate cost recovery formula used when developing WestWorld fees. • $0.4 million due to increased revenue from TPC Scottsdale and Baseball usage fees. • $1.0 million due to increased indirect costs for services provided by the General Fund to enterprise operations. • $7.4 million from a projected increase in interest earnings due to higher anticipated rates of return on investments. GENERAL FUND – USES The adopted FY 2024/25 General Fund uses budget is projected to be approximately $436.0 million (not including contingency, reserves, and designations), approximately $20.4 million lower than the FY 2023/24 adopted budget. The following bar graph provides a summary of the General Fund uses. 26 Table of Contents OVERVIEW | Executive Summary Note: Rounding differences may occur The General Fund adopted operating budget for next fiscal year is a $1.0 million increase from the FY 2023/24 adopted budget. Scottsdale is a people-powered service provider. As such, most expenses are related to funding for our high-performance workforce and providing pay and benefit packages that allow the city to retain and recruit employees. Significant personnel expenditures included in the adopted operating budget include: • $8.0 million General Fund for the cost of implementing a comprehensive classification and compensation. • $2.8 million General Fund for the citywide pay for performance program to eligible employees. • $4.7 million General Fund for market adjustment. • $0.4 million General Fund decrease from PSPRS retirement rate adjustments. • $1.0 million General Fund for the vacation buyback program for eligible employees While high quality staff are the engine that drives our organization, the proposed General Fund budget also includes money for these priority projects and programs across the city’s operating and administrative departments: City Court: • $0.1 million for various contractual cost increases such as public defense and psychiatric evaluations. City Treasurer: • $0.4 million for software license and fees related to the implementation of an Enterprise Resources Planning system. Administrative Services: • $0.3 million of carryover funding to continue the coordination for an Americans with Disabilities Act (ADA) Transition Plan. • $0.2 million for technology cost increases mostly related to Cloud services. Community & Economic Development: • $0.1 million carry-over of one-time funding to provide an in-depth, independent review, assessment, and benchmarking of Planning & Development Services’ rates and fees that was budgeted in FY 2022/23 but will not be completed until FY 2024/25. 27 Table of Contents OVERVIEW | Executive Summary Community Services: • $0.3 million of funding for the removal and disposal of organic waste material from WestWorld. • $0.5 million for an annual one-time contract labor request for events and custodial services at WestWorld. Public Safety - Fire: • $5.6 million of one-time and ongoing funding for a new ambulance service anticipated to start operations mid-year. Includes 29.00 FTEs. • $0.5 million of one-time and ongoing funding for staff and training for the new Fire Training Facility that will open in the Fall of 2024. • $1.4 million of one-time and ongoing funding to equip new Fire Station 612. • $0.7 million of one-time funding for training and overtime to provide backfill while sworn staff attend specialty teams training. • $0.3 million of one-time funding to upfit vehicles for new facilities. • $0.2 million for training and dispatch contract increases. Public Works: • $1.0 million carryover of the one-time funding to paint the public art wall ‘The Path Most Traveled’ on the Arizona State Loop 101. • $0.1 million to cover anticipated operating impacts from capital projects such as Fire Department Training Facility, 17-Acre Neighborhood Park at Ashler Hills Drive and 74th Way (Whisper Rock), and McCormick-Stillman Roundhouse. GENERAL FUND ENDING BALANCE The FY 2024/25 budget includes the following: Emergency Reserve – The Emergency Reserve was implemented in FY 2022/23. The reserve was added to incorporate best financial practices. The Emergency Reserve complies with Financial Policy No. 2.02. The policy states that the General Fund will maintain five percent of operating uses, excluding transfers out as an emergency reserve to cover for unexpected emergencies and events where immediate action must be taken in the best interest of the city's residents and business owners. The FY 2024/25 General Fund Emergency Reserve is $18.8 million. General Plan Initiatives – The General Plan Initiatives fund balance designation was created in FY 2022/23 to support the implementation of the new General Plan, which was approved by voters in November 2021. The FY 2024/25 General Fund General Plan Initiatives designation is $15.0 million. Innovation Initiatives – The Innovation Initiatives reserve designation was created in FY 2022/23 to support projects that benefit the community and support organizational goals and City Council initiatives. The FY 2024/25 General Fund Innovation Initiatives designation is $0.5 million. Operating Contingency – Operating Contingency for FY 2024/25 is $20.0 million of budget authorization if 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 Financial Policy No.2.01. The policy states the General Fund will maintain an operating reserve of 20 percent of General Fund operating uses, excluding transfers out, which beginning in FY 2022/23 is an increase from 10 percent to incorporate best financial practices. The Operating Reserve 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 FY 2024/25 General Fund Operating Reserve is $75.3 million. 28 Table of Contents OVERVIEW | Executive Summary PSPRS Pension Liabilities – Public Safety Personnel Retirement System (PSPRS) is an Arizona pension system for public safety personnel. The FY 2024/25 PSPRS Pension Liabilities fund balance designation is $115.7 million. 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 2024/25 fund balance designation is $9.8 million. General Fund Balance – General Fund Balance accounts for any funds remaining after the designation of all other reserves/uses. The FY 2024/25 ending 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 five Special Revenue Funds – Transportation Fund, Preservation Fund, Special Programs Fund, Tourism Development Fund, and the Stadium Facility Fund. The Transportation Fund accounts for Highway User Revenue Fund (HURF) dollars shared with cities from state gas taxes. However, most of the fund’s funding comes from the 1990 (0.20 percent) voter-approved sales tax, and partially from 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 $55.5 million. Uses total about $66.5 million of which $32.4 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, $15.9 million is dedicated for transportation capital projects per the Budget Governing Guidance (Appendix A to the adopted Financial Policies) (50 percent of the 1990 (0.20 percent) transportation sales tax revenue) and $18.1 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 $57.4 million. Approximately $38.8 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, 2025, is expected to be $154.9 million. 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 $35.5 million, annual uses of $39.1 million, which includes Council approved one-time use of fund balance for Tourism related capital projects, and a projected June 30, 2025 ending fund balance of $12.3 million. The Stadium Facility Fund is a special revenue fund created to account for activity at the Scottsdale Stadium. In June 2019, the city entered into a 25-year baseball facilities agreement with the Scottsdale Charros and the San Francisco Giants Baseball Club for the use and maintenance of the Scottsdale Stadium. This fund accounts for the contributions and uses as per the agreement. The fund currently has annual sources of $2.3 million, uses of $2.3 million and a projected June 30, 2025 ending fund balance of $5.7 million. DEBT SERVICE FUND The Debt Service Fund is designated for payment of long-term debt. Total sources are $91.1 million for FY 2024/25. 29 Table of Contents OVERVIEW | Executive Summary The $93.6 million budget for debt service payments in FY 2024/25 is approximately $2.1 million more than the FY 2023/24 Adopted Budget. ENTERPRISE FUNDS Enterprise Funds account for the city’s water and water reclamation, solid waste, and aviation services, which operate as selfsustaining operations. User fees are assessed to cover cost of services. Water and Water Reclamation Funds – The Water Fund is impacted by multiple cost factors over the five‐year planning period including: • Increasing funding for a removal of forest cover and tree density to increase water yield by decreasing evapotranspiration in the Verde River Watershed. • Increasing costs for sewer maintenance and cleaning. • Increasing electricity costs for water plan production, booster stations operations and other essential system power supply. • Operating cost increases for personnel services and benefits Increases to base fees are proposed to better reflect the recovery of fixed operating costs and adjusted to capture the demand availability designed into the system. Increases to commodity rates are proposed to generate sufficient revenues to maintain the water fund as a self-sustaining enterprise, encourage efficient water use and urge conservation. Within the commodity rates, no change is proposed for the first tier of residential rates, however increased commodity rates are proposed for tiers two through five and the volume thresholds for tiers three through five are reduced. Similarly with the commercial commodity rates, no change is proposed for the first tier, however increased commodity rates are proposed for tiers two through four and volume thresholds are reduced for tiers three and four. Overall, the water and water reclamation base fees and commodity rate changes are forecasted to generate an annual revenue increase of approximately $15.9 million. Water rates changes are effective November 1, 2024, and water reclamation rates, July 1, 2024. 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, 2024, and are expected to generate approximately $3.5 million in additional revenue. Revenue requirements for the Solid Waste Fund for FY 2024/25 were primarily impacted by inflationary effects, landfill and transfer disposal costs, and recycling market volatility and resulting costs. Total Solid Waste Fund sources are expected to be about $36.8 million, annual uses are expected to be $39.1 million, and ending fund balance is projected to be $7.50 million by June 30, 2025. 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 $10.4 million, annual uses are expected to be $9.2 million, and ending fund balance is projected to be $16.5 million by June 30, 2025. 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 the city’s vehicles, equipment, and other rolling stock. User divisions are assessed maintenance and operation costs ($8.9 million), acquisition costs ($15.2 million), and fuel costs ($6.0 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 $8.9 million estimated on June 30, 2025, represents funds previously collected for maintenance, operations and vehicle/equipment acquisitions that will be expended in future years. 30 Table of Contents OVERVIEW | Executive Summary 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 2024/25, user divisions are assessed estimated costs of $1.0 million, leaving an estimated ending fund balance of $1.1 million on June 30, 2025. 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 $18.8 million. The estimated ending fund balance on June 30, 2025, of about $30.3 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 a 75 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 $40.1 million in healthcare costs is shared by the city, its employees and public safety disabled retirees. For FY 2024/25, the city’s portion of the shared cost was set at a lower amount than needed to utilize fund balance. FY 2024/25 presents a $0.9 million increase in uses compared to the FY 2023/24 adopted budget due to rising healthcare costs. The estimated ending fund balance on June 30, 2025 of $18.6 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) a healthcare self insurance fund balance which accounts for any remaining funds after the designation of all other reserves/uses. Under prudent fiscal management practices, the healthcare self insurance 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 $28.6 million of total grant funding there are three larger grants: Housing Choice Voucher Program (previously Section 8 Housing Grant) at $9.0 million, the Home Grant at $1.4 million, and the Community Development Block Grant (CDBG) at $2.5 million (plus $0.7 million for the Rehab Revolving Loan and another $0.7 million for Belleview Rental Operations). In addition to numerous identified smaller grants, the city includes $10.3 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 357 streetlight districts. The intention is that only the amount needed to provide the service is assessed to the customer. Sources are estimated at $0.6 million and uses are estimated at $0.6 million for FY 2024/25. 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 $1.1 billion capital budget highlights by program, along with some notable examples in each capital program area: Community Facilities ($123.3 million) – focuses on providing library improvements, parks, park improvements, multiuse paths, neighborhood enhancements, youth sports lighting, aquatic centers, library facilities and senior centers. Approximately 11.3 percent of the CIP addresses the needs of this program. Significant Community Facilities projects include the McCormick-Stillman Roundhouse; Scottsdale Stadium Renovations Phase 2; as well as the continuation and initiation of various Bond 2019 program 31 Table of Contents OVERVIEW | Executive Summary projects. Some examples are the 42 - Add a Dog Park to Thompson Peak Park; 22 – Build New Swimming Pools and Replace Building at Cactus Pool; and 23 – Repair Lakes and Irrigation at Vista del Camino Park in the Indian Bend Wash. Preservation ($5.4 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 0.5 percent of the CIP addresses this program. Significant preserve projects include the restoration of habitat, invasive plant, wildland fire prevention and safety improvements. Drainage and Flood Control ($17.0 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 1.6 percent of the CIP addresses the drainage and flood control needs of the city. Major Drainage and Flood Control projects include the Rawhide Wash project in conjunction with the Maricopa County Flood Control District and the City of Phoenix, and the Granite Reef Wash project. Public Safety ($88.9 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 8.2 percent of the CIP addresses the public safety needs of the city. The Public Safety budget includes key projects such as the recurring purchase of Police and Fire Real Replacement; Renovate Fire Station 606; and various Bond 2019 program projects. Some examples are the 38-Build a New Fire Department Training Facility; 40 - Renovate and Expand the Civic Center Jail and Downtown Police Facility to Meet Demand; and the 27 - Modernize and Expand the Police and Fire Training Facility. Service Facilities ($140.1 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 12.8 percent of the CIP addresses this program. Service Facilities projects include Facilities Upgrade and Replacement Program; Network and Server Infrastructure Replacement Program; an Enterprise Resource Planning System; Continuous Fleet Replacement; and the continuation of various Bond 2019 program projects. Some examples are the 63-Build Parking Structures in Old Town Scottsdale and solar system installation and upgrade projects. Transportation ($256.3 million) – addresses multi-modal transportation needs. Approximately 23.5 percent of the CIP addresses the transportation needs of the city. Significant Transportation projects include various pedestrian improvements; Pavement Overlay Program; Pima Road: Dynamite Boulevard to Las Piedras; Scottsdale Road: Jomax Road to Dixileta Drive; Happy Valley Road: Pima Road to Alma School Road; Shea Boulevard Intersections: Arizona State Route 101 to 136th Street; Intelligent Transportation System Infrastructure and Network Improvements; and Kilo Ramp Rehabilitation. Water Management ($460.1 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 42.2 percent of the CIP addresses the water and water reclamation needs of the city. Significant projects include the Greenway Hayden Loop Sewer Improvements, deep well recharge and recovery projects, as well the design and construction of multiple other 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 2024/25, the budget assumes the General Fund will transfer a total of $42.1 million to the CIP. 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). 32 Table of Contents 33 BlueInk Bundle ID: rePZHCOPmS Table of Contents 34 BlueInk Bundle ID: rePZHCOPmS Table of Contents 35 Table of Contents 36 Table of Contents 37 Table of Contents CITY OF SCOTTSDALE Summary Schedule of Estimated Revenues and Expenditures/Expenses Fiscal Year 2024/2025 Schedule A Fiscal Year 2024 Adopted/Adjusted Budgeted Expenditures/Expenses* 2024 Actual Expenditures/Expenses** Special Revenue Fund Debt Service Fund $82,166,664 $98,427,729 FUNDS Capital Project Grants &Special Funds Districts Funds $1,420,651,744 $24,342,156 Enterprise Internal Service Funds Funds Total All Funds $274,537,783 $51,007,139 $2,533,270,561 SCH E 1 General Fund $582,137,346 E 2 $364,234,694 $66,673,228 $91,459,254 $1,368,929,785 $16,403,702 $175,435,634 $8,457,423 $2,091,593,720 3 $251,817,269 $219,041,714 $10,646,526 $637,536,828 $2,318 $114,573,111 $61,350,409 $1,294,968,175 $39,640,195 2025 Fund Balance/Net Position at July 1 2025 Primary Property Tax Levy B 4 $38,384,363 $0 $0 $0 $0 $0 $1,255,832 2025 Secondary Property Tax Levy B 5 $0 $0 $28,615,822 $0 $0 $0 $0 $28,615,822 2025 Estimated Revenues Other than Property Taxes C 6 $385,538,930 $178,708,293 $0 $323,235,421 $29,124,668 $265,271,203 $11,438,728 $1,193,317,243 2025 Other Financing Sources D 7 $0 $0 $0 $0 $0 $0 $0 $0 2025 Other Financing (Uses) D 8 $0 $0 $0 $0 $0 $0 $0 $0 2025 Interfund Transfers In D 9 $15,814,664 $10,000 $62,517,083 $165,548,396 $0 $14,798,804 $194,500 $258,883,447 2025 Interfund Transfers (Out) D 10 $59,583,834 $104,753,208 $0 $6,128,730 $23,442 $87,805,783 $588,450 $258,883,447 2025 Line:11: Reduction for Fund Balance Reserved for Future Budget Year Expenditures 12 $691,555,226 $397,760,007 $101,779,431 $1,126,320,645 $29,126,986 $394,643,118 $74,239,469 $2,815,424,882 13 $621,671,392 $89,605,429 $101,779,431 $1,091,140,901 $29,103,544 $305,041,611 $56,506,597 $2,294,848,905 Maintained for Future Debt Retirement Maintained for Future Capital Projects 11 Maintained for Future Financial Stability 2025 Total Financial Resources Available 2025 Budgeted Expenditures/Expenses E Expenditure Limitation Comparison 1. Budgeted expenditures/expenses 2. Add/subtract : estimated net reconciling items 3. Budgeted expenditures/expenses adjusted for reconciling items 4. Less: estimated exclusions 5. Amount subject to the expenditure limitation 6. EEC expenditure limitation 2023/2024 2024/2025 $2,533,270,561 $2,294,848,905 - - 2,533,270,561 2,294,848,905 (1,951,267,847) (1,699,149,014) 582,002,714 595,699,891 $586,300,525 $613,422,568 *Includes expenditures adopted in FY 2023/2024 from Schedule E. **Incudes actual amounts as of the date the Adopted budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. 38 Table of Contents 1. 2. CITY OF SCOTTSDALE Summary of Property Tax Levy and Property Tax Rate Information Fiscal Year 2024/2025 Schedule B Fiscal Year 2023/2024 Maximum allowable primary property tax levy. A.R.S. §42-17051(A) 39,381,406 Fiscal Year 2024/2025 39,640,195 Amount received from primary property taxation in the current year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18) - 3. 4. Property tax levy amounts A. Primary property taxes 39,298,406 39,640,195 B. C. Secondary property taxes Total property tax levy amounts 35,591,731 74,890,137 34,839,617 74,479,812 Property taxes collected* A. Primary property taxes (1) 2023/2024 levy (2) Prior years' levies (3) Total primary property taxes B. 398,000 37,308,980 Secondary property taxes (1) 2023/2024 levy (2) Prior years' levies 5. 36,910,980 34,287,216 - (3) Total secondary property taxes 34,287,216 C. 71,596,196 Total property taxes collected Property tax rates A. City tax rate (1) Primary property tax rate 0.5150 0.4958 (2) Secondary property tax rate (3) Total city tax rate 0.4664 0.9814 0.4358 0.9316 B. Special assessment district tax rates Secondary property tax rates - As of the date the Adopted budget was prepared, the city was operating 357 special assessment districts (streetlight improvement districts) for which secondary property taxes are levied. For information pertaining to these special assessment districts and their tax rates, please contact the City of Scottsdale City Treasurer Division. *Includes actual property taxes collected as of the date the Adopted budget was prepared, plus estimated property tax collections for the remainder of the fiscal year. 39 Table of Contents CITY OF SCOTTSDALE Summary by Fund of Revenues Other than Property Taxes Fiscal Year 2024/2025 Schedule C Source of Revenues Budgeted Revenues 2023/2024 Actual Revenues 2023/2024* Adopted Revenues 2024/2025 GENERAL FUND** TAXES - LOCAL AUTOMOTIVE $21,114,227 $21,516,937 $21,669,534 CONSTRUCTION $14,581,826 $19,780,145 $19,082,770 DINING/ENTERTNMNT $17,306,181 $18,584,740 $17,642,330 FOOD STORES $11,319,269 $11,251,836 $11,595,180 HOTEL/MOTEL $10,631,687 $12,498,904 $10,694,437 MAJOR DEPT STORES $12,813,553 $13,949,550 $13,255,768 MISC RETAIL STORES $39,984,959 $42,720,679 $39,218,637 OTHER ACTIVITY $23,500,005 $22,873,483 $22,959,779 RENTAL $25,342,507 $22,892,759 $20,801,422 UTILITIES $5,893,665 $6,066,839 $6,082,669 ELECTRIC & GAS FRANCHISE $9,106,540 $9,929,644 $10,281,610 CABLE TV LICENSE FEE $3,700,000 $3,700,000 $3,328,440 SALT RIVER PROJECT IN LIEU $200,000 $200,000 $200,000 STORMWATER FEE $960,198 $960,198 $964,999 $196,454,617 $206,925,714 $197,777,575 STATE SHARED SALES TAX $36,543,806 $35,476,428 $37,126,139 STATE SHARED INCOME TAX $65,098,126 $64,406,192 $51,842,004 AUTO LIEU TAX $12,436,288 $12,297,413 $12,283,924 $114,078,220 $112,180,033 $101,252,067 WESTWORLD EQUESTRIAN FACILITY FEES $5,929,574 $6,129,725 $6,177,020 INTERGOVERNMENTAL AGREEMENTS $4,168,669 $4,168,669 $4,353,946 MISCELLANEOUS $1,006,918 $1,006,918 $1,077,095 PROPERTY RENTAL $5,427,428 $5,427,428 $5,640,969 $16,532,589 $16,732,740 $17,249,030 BUSINESS & LIQUOR LICENSES $2,802,228 $2,521,978 $2,667,130 FIRE CHARGES FOR SERVICES $2,736,729 $2,736,729 $7,205,507 RECREATION FEES $5,205,367 $5,205,367 $5,607,476 TOTAL LICENSE PERMITS & FEES $10,744,324 $10,464,074 $15,480,113 $4,053,645 $4,053,645 $4,094,429 $27,204 $27,204 $42,868 TOTAL TAXES - LOCAL STATE SHARED REVENUES TOTAL STATE SHARED REVENUES CHARGES FOR SERVICE/OTHER TOTAL CHARGES FOR SERVICE/OTHER LICENSE PERMITS & FEES FINES FEES & FORFEITURES COURT FINES LIBRARY PARKING FINES $263,700 $263,700 $261,000 PHOTO RADAR $2,641,329 $2,641,329 $2,644,511 JAIL DORMITORY $144,000 $144,000 $146,880 $7,129,878 $7,129,878 $7,189,688 TOTAL FINES FEES & FORFEITURES 40 Table of Contents Budgeted Revenues 2023/2024 Source of Revenues INTEREST EARNINGS INTEREST EARNINGS Actual Revenues 2023/2024* Adopted Revenues 2024/2025 $8,212,914 $13,418,002 $15,593,866 $8,212,914 $13,418,002 $15,593,866 BUILDING & RELATED PERMITS $20,400,907 $20,400,907 $21,769,857 TOTAL BUILDING PERMIT FEES & CHARGES $20,400,907 $20,400,907 $21,769,857 TOTAL INTEREST EARNINGS BUILDING PERMIT FEES & CHARGES INDIRECT/DIRECT COST ALLOCATIONS INDIRECT COSTS $7,796,474 $7,796,474 $8,786,469 DIRECT COST ALLOCATION (FIRE) $419,300 $419,300 $440,265 TOTAL INDIRECT/DIRECT COST ALLOCATIONS $8,215,774 $8,215,774 $9,226,734 $381,769,223 $395,467,122 $385,538,930 AUTOMOTIVE $6,718,161 $6,826,586 $6,894,851 CONSTRUCTION $4,639,673 $6,155,848 $6,071,791 DINING/ENTERTNMNT $5,506,511 $5,879,426 $5,613,468 FOOD STORES $3,601,586 $3,581,918 $3,689,376 HOTEL/MOTEL $3,382,809 $3,625,306 $3,402,775 MAJOR DEPT STORES $4,077,037 $4,408,372 $4,217,745 MISC RETAIL STORES $12,722,486 $13,490,440 $12,478,658 OTHER ACTIVITY $6,648,668 $6,465,933 $6,437,240 RENTAL $8,063,526 $7,913,252 $6,618,635 UTILITIES $1,875,258 $1,925,766 $1,935,395 INTEREST EARNINGS $2,234,571 $2,234,571 $4,901,570 TOTAL PRESERVATION FUNDS $59,470,286 $62,507,418 $62,261,504 AUTOMOTIVE $3,630,801 $3,900,906 $3,672,200 CONSTRUCTION $2,507,492 $3,517,627 $3,455,900 DINING/ENTERTNMNT $2,975,970 $3,359,672 $3,193,700 FOOD STORES $1,946,462 $2,046,810 $2,102,900 HOTEL/MOTEL $1,828,225 $2,071,603 $1,937,400 MAJOR DEPT STORES $2,203,418 $2,519,070 $2,343,200 MISC RETAIL STORES $6,875,814 $7,708,823 $6,947,100 OTHER ACTIVITY $3,593,243 $3,694,819 $3,254,600 RENTAL $4,357,899 $4,521,858 $3,771,400 UTILITIES $1,013,475 $1,100,438 $1,041,500 HIGHWAY USER TAX $18,848,335 $18,643,354 $19,344,049 LOCAL TRANSPORTATION ASSISTANCE FUND $610,000 $610,000 $610,000 INTERGOVERNMENTAL AGREEMENTS $87,800 $87,800 $89,556 MISCELLANEOUS $21,200 $21,200 $31,200 PROPERTY RENTAL $5,844 $5,844 $5,844 TOTAL GENERAL FUND** SPECIAL REVENUE FUNDS PRESERVATION FUNDS TRANSPORTATION FUND INTEREST EARNINGS $1,522,193 $2,786,681 $3,747,159 TOTAL TRANSPORTATION FUND $52,028,171 $56,596,505 $55,547,708 $31,561,346 TOURISM DEVELOPMENT FUND TRANSIENT OCCUPANCY TAX $31,448,488 $34,120,374 MISCELLANEOUS $25,000 $25,000 $25,000 PROPERTY RENTAL $3,066,671 $3,508,481 $3,245,605 INTEREST EARNINGS $504,510 $504,510 $35,044,669 $38,158,365 TOTAL TOURISM DEVELOPMENT FUND $687,414 $35,519,365 41 Table of Contents Budgeted Revenues 2023/2024 Source of Revenues Actual Revenues 2023/2024* Adopted Revenues 2024/2025 SPECIAL PROGRAMS FUND ELECTRIC & GAS FRANCHISE $262,000 $262,000 $265,000 STORMWATER FEE - CIP $6,721,382 $6,721,382 $7,896,004 WESTWORLD EQUESTRIAN FACILITY FEES $1,223,354 $1,223,354 $1,233,438 INTERGOVERNMENTAL AGREEMENTS $1,115,540 $837,956 $503,937 MISCELLANEOUS $4,113,088 $7,165,684 $5,070,037 PROPERTY RENTAL $365,153 $278,568 $282,651 CONTRIBUTIONS & DONATIONS $704,051 $464,203 $1,093,133 BUSINESS & LIQUOR LICENSES $50,160 $50,160 $50,160 RECREATION FEES $3,045,528 $3,033,025 $3,255,853 COURT FINES $1,860,508 $1,860,508 $2,611,154 LIBRARY $115,000 $115,000 $117,300 POLICE FEES $95,400 $95,400 $95,400 INTEREST EARNINGS $84,888 $84,888 $236,834 BUILDING & RELATED PERMITS $77,320 $77,320 $415,663 $19,833,372 $22,269,448 $23,126,564 MISCELLANEOUS $282,066 $282,066 $288,441 PROPERTY RENTAL TOTAL SPECIAL PROGRAMS FUND STADIUM FACILITY FUND $1,042,848 $1,042,848 $1,049,798 CONTRIBUTIONS & DONATIONS $725,000 $725,000 $726,950 INTEREST EARNINGS $134,247 $134,247 $187,963 TOTAL STADIUM FACILITY FUND $2,184,161 $2,184,161 $2,253,152 $168,560,659 $181,715,897 $178,708,293 $538,728 $538,728 $570,133 $538,728 $538,728 $570,133 MISCELLANEOUS $582,000 $582,000 $573,919 PROPERTY RENTAL $64,200 $64,200 $65,651 TOTAL SPECIAL REVENUE FUNDS GRANTS & SPECIAL DISTRICTS FUNDS SPECIAL DISTRICTS FUND STREETLIGHT DISTRICTS TOTAL SPECIAL DISTRICTS FUND GRANT FUNDS CONTRIBUTIONS & DONATIONS $3,259,390 $3,259,390 $3,696,252 FEDERAL GRANTS $19,589,308 $19,589,308 $22,531,760 STATE GRANTS $300,000 $300,000 $1,686,953 TOTAL GRANT FUNDS $23,794,898 $23,794,898 $28,554,535 $24,333,626 $24,333,626 $29,124,668 TOTAL GRANTS & SPECIAL DISTRICTS FUNDS 42 Table of Contents Source of Revenues CAPITAL IMPROVEMENT PROJECT FUNDS ESTIMATED UNEXPENDED PRIOR YEAR Budgeted Revenues 2023/2024 Actual Revenues 2023/2024* Adopted Revenues 2024/2025 $1,006,533,095 $0 $0 AUTOMOTIVE $1,919,476 $1,919,476 $1,970,000 CONSTRUCTION $1,325,620 $1,325,620 $1,734,800 DINING/ENTERTNMNT $1,573,291 $1,573,291 $1,603,700 FOOD STORES $1,029,025 $1,029,025 $1,054,100 HOTEL/MOTEL $966,518 $966,518 $1,853,600 MAJOR DEPT STORES $1,164,869 $1,164,869 $1,205,100 MISC RETAIL STORES $3,634,995 $3,634,995 $3,565,300 OTHER ACTIVITY $1,899,620 $1,899,620 $1,839,200 RENTAL $2,303,864 $2,303,864 $1,876,800 UTILITIES $535,787 $535,787 $525,200 OTHER WATER REVENUE $2,750,000 $2,750,000 $8,250,000 OTHER WATER RECLAMATION REVENUE $2,650,000 $2,650,000 $6,150,000 NON-POTABLE WATER SERVICE CHARGES INTERGOVERNMENTAL AGREEMENTS MISCELLANEOUS CONTRIBUTIONS & DONATIONS $2,100,000 $2,100,000 $2,100,000 $110,082,462 $110,082,462 $29,598,502 $1,491,000 $1,491,000 $0 $0 $0 $2,454,955 $4,731,141 $6,062,149 $10,151,780 $65,000 $242,880 $65,000 FEDERAL GRANTS $4,122,395 $7,926,845 $7,237,384 BOND PROCEEDS $0 $0 $240,000,000 $1,150,878,158 $149,658,401 $323,235,421 INTEREST EARNINGS BUILDING & RELATED PERMITS TOTAL CAPITAL IMPROVEMENT PROJECT FUNDS ENTERPRISE FUNDS AVIATION FUND JET FUEL AIRPORT FEES PROPERTY RENTAL INTEREST EARNINGS $223,000 $223,000 $233,000 $9,174,872 $9,174,872 $8,958,864 $188,586 $188,586 $191,458 $162,396 $162,396 $448,314 $9,748,854 $9,748,854 $9,831,636 $340,527 $340,527 $338,612 WATER SERVICE FEES $123,359,867 $123,359,867 $135,292,948 SEWER SERVICE FEES $51,636,995 $48,576,178 $55,625,122 NON-POTABLE WATER SERVICE CHARGES $16,905,462 $16,905,462 $16,760,212 MISCELLANEOUS $4,432,368 $9,316,037 $5,185,203 PROPERTY RENTAL $210,188 $210,188 $221,851 $5,550 $5,550 $5,500 $3,648,499 $3,648,499 $4,383,299 $801,903 $801,903 $818,408 $201,341,359 $203,164,211 $218,631,155 TOTAL AVIATION FUND WATER & WATER RECLAMATION FUNDS STORMWATER FEE CONTRIBUTIONS & DONATIONS INTEREST EARNINGS INDIRECT COSTS TOTAL WATER & WATER RECLAMATION FUNDS SOLID WASTE FUND SOLID WASTE SERVICE CHARGES - COMMERCIAL $4,046,242 $4,046,242 $4,635,583 SOLID WASTE SERVICE CHARGES - RESIDENTIAL $28,878,985 $28,878,985 $31,832,858 INTEREST EARNINGS $255,503 $255,503 $339,971 TOTAL SOLID WASTE FUND $33,180,730 $33,180,730 $36,808,412 $244,270,943 $246,093,795 $265,271,203 TOTAL ENTERPRISE FUNDS 43 Table of Contents Budgeted Revenues 2023/2024 Source of Revenues INTERNAL SERVICE FUNDS Actual Revenues 2023/2024* Adopted Revenues 2024/2025 FLEET MANAGEMENT FUND INTERNAL SERVICE OFFSETS ($22,750,676) ($22,750,676) ($29,928,423) $6,019,338 FUEL $6,351,853 $5,474,353 MAINTENANCE & OPERATIONS $9,298,220 $10,398,220 $8,850,827 RENTAL RATES $14,303,617 $14,303,617 $15,158,258 MISCELLANEOUS $468,951 $468,951 $482,128 REIMBURSEMENTS FROM OUTSIDE SOURCES $556,432 $556,432 $567,561 $8,228,397 $8,450,897 $1,149,689 INTERNAL SERVICE OFFSETS ($850,000) ($850,000) ($950,007) PC REPLACEMENT $850,000 $850,000 $950,007 $0 $0 $0 TOTAL FLEET MANAGEMENT FUND PC REPLACEMENT FUND TOTAL PC REPLACEMENT FUND SELF INSURANCE FUNDS - HEALTH INTERNAL SERVICE OFFSETS ($30,191,547) ($30,191,547) ($29,452,240) DISABLED RETIREE CONTRIBUTIONS $239,379 $199,379 $205,434 EMPLOYEE CONTRIBUTIONS - DENTAL $793,935 $793,935 $807,431 EMPLOYEE CONTRIBUTIONS - MEDICAL $7,599,568 $7,699,896 $8,208,052 EMPLOYER CONTRIBUTION - DENTAL $962,436 $962,436 $962,436 EMPLOYER CONTRIBUTION - MEDICAL $29,229,111 $28,489,804 $28,489,804 $251,100 $251,100 $253,122 $8,883,982 $8,205,003 $9,474,039 INTERNAL SERVICE OFFSETS ($16,560,677) ($16,560,677) ($18,857,984) SELF INSURANCE (PROPERTY AND WORKERS COMP) $16,508,600 $16,508,600 $18,803,303 UNEMPLOYMENT CLAIMS $52,077 $52,077 $54,681 MISCELLANEOUS $290,000 $290,000 $290,000 REIMBURSEMENTS FROM OUTSIDE SOURCES $525,000 $525,000 $525,000 $815,000 $815,000 $815,000 $17,927,379 $17,470,900 $11,438,728 $1,987,739,988 $1,014,739,741 $1,193,317,243 MISCELLANEOUS TOTAL SELF INSURANCE FUNDS - HEALTH SELF INSURANCE FUNDS - RISK TOTAL SELF INSURANCE FUNDS - RISK TOTAL INTERNAL SERVICE FUNDS TOTAL ALL FUNDS *Includes actual revenues recognized on the modified accrual or accrual basis as of the date the Adopted budget was prepared, plus estimated revenues for the remainder of the fiscal year. ** There are $0 voluntary contributions estimated to be received pursuant to A.R.S § 48-242. 44 Table of Contents CITY OF SCOTTSDALE Summary by Fund Type of Other Financing Sources/(Uses) and Interfund Transfers Fiscal Year 2024/2025 Schedule D Other Financing Sources/(Uses) Adopted Interfund Transfers 2024/2025 2024/2025 Fund IN OUT $0 $15,814,664 $59,583,834 $0 $15,814,664 $59,583,834 $0 $0 $23,442 $0 $0 $23,442 GENERAL FUND GENERAL FUND TOTAL GENERAL FUND GRANTS & SPECIAL DISTRICTS FUNDS GRANT FUNDS TOTAL GRANTS & SPECIAL DISTRICTS FUNDS SPECIAL REVENUE FUNDS PRESERVATION FUNDS $0 $0 $44,184,080 SPECIAL PROGRAMS FUND $0 $10,000 $8,600,769 STADIUM FACILITY FUND $0 $0 $660,000 TOURISM DEVELOPMENT FUND $0 $0 $17,244,049 TRANSPORTATION FUND $0 $0 $34,064,310 $0 $10,000 $104,753,208 $0 $62,517,083 $0 $0 $62,517,083 $0 $0 $165,548,396 $6,128,730 $0 $165,548,396 $6,128,730 AVIATION FUND $0 $599,100 $3,495,577 SOLID WASTE FUND $0 $0 $5,577,360 WATER & WATER RECLAMATION FUNDS $0 $14,199,704 $78,732,846 $0 $14,798,804 $87,805,783 FLEET MANAGEMENT FUND $0 $0 $567,909 SELF INSURANCE FUNDS - HEALTH $0 $194,500 $0 SELF INSURANCE FUNDS - RISK $0 $0 $20,541 $0 $194,500 $588,450 $0 $258,883,447 $258,883,447 TOTAL SPECIAL REVENUE FUNDS DEBT SERVICE FUNDS DEBT TOTAL DEBT SERVICE FUNDS CAPITAL IMPROVEMENT PROJECT FUNDS CAPITAL IMPROVEMENT PROGRAM TOTAL CAPITAL IMPROVEMENT PROJECT FUNDS ENTERPRISE FUNDS TOTAL ENTERPRISE FUNDS INTERNAL SERVICE FUNDS TOTAL INTERNAL SERVICE FUNDS TOTAL ALL FUNDS 45 Table of Contents CITY OF SCOTTSDALE Summary by Division of Expenditures/Expenses Within Each Fund Type Fiscal Year 2024/2025 Schedule E Adopted Budget Expenditures 2023/2024 Fund/Divisions Expenditure Adjustments Approved 2023/2024 Actual Expenditures 2023/2024* Adopted Budget Expenditures 2024/2025 GENERAL FUND MAYOR AND CITY COUNCIL $1,112,601 ($27,063) $1,085,538 $1,228,149 CITY ATTORNEY CITY AUDITOR $8,589,399 $6,687 $8,596,086 $9,016,837 $1,313,021 ($7,335) $1,305,686 $1,420,460 CITY CLERK $1,103,865 $11,340 $1,115,205 $1,457,536 CITY COURT $5,655,776 ($96,371) $5,559,405 $6,095,604 CITY MANAGER $2,228,807 ($286,931) $1,941,876 $2,943,560 CITY TREASURER $12,585,220 ($607,957) $11,977,263 $13,642,181 ADMINISTRATIVE SERVICES $25,956,820 ($1,035,696) $24,921,124 $26,947,123 COMMUNITY AND ECONOMIC DEVELOPMENT $26,455,848 ($1,244,824) $25,211,024 $26,117,112 COMMUNITY SERVICES $50,821,650 ($2,184,106) $48,637,544 $52,771,541 PUBLIC SAFETY - FIRE $64,767,849 $1,495,112 $66,262,961 $72,897,636 PUBLIC SAFETY - POLICE $144,301,971 ($5,152,658) $139,149,313 $136,918,706 PUBLIC WORKS $28,329,379 ($5,929,063) $22,400,316 $30,020,050 CLASS AND COMP STUDY $6,818,554 ($6,818,554) $0 $0 $452,103 $0 $452,103 $458,404 ESTIMATED DIVISION SAVINGS ($9,000,000) $5,183,173 ($3,816,827) ($10,773,000) FUEL AND MAINT AND REPAIR $0 $3,247,163 $3,247,163 $0 $2,813,988 ($1,745,658) $1,068,330 $4,325,738 $0 DEBT SERVICE LEAVE ACCRUAL PAYMENTS / PARENTAL LEAVE POST EMPLOYMENT MEDICAL $0 $196,950 $196,950 UTILITIES $0 $4,923,634 $4,923,634 $0 $1,105,014 ($1,105,014) $0 $926,833 CONTINGENCY / RESERVE APPROPRIATION $206,725,481 $35,058,380 $0 $245,256,922 TOTAL GENERAL FUND $582,137,346 $23,881,209 $364,234,694 $621,671,392 $582,137,346 $23,881,209 $364,234,694 $621,671,392 VACATION TRADE TOTAL GENERAL FUND SPECIAL REVENUE FUNDS SPECIAL PROGRAMS FUND MAYOR AND CITY COUNCIL CITY COURT COMMUNITY AND ECONOMIC DEVELOPMENT $231,000 ($205,531) $25,469 $58,806 $2,065,560 ($38,871) $2,026,689 $2,151,916 $719,220 ($482,943) $236,277 $688,822 $4,389,994 ($807,783) $3,582,211 $6,563,780 PUBLIC SAFETY - FIRE $757,094 ($19,371) $737,723 $844,837 PUBLIC SAFETY - POLICE $3,942,212 ($35,887) $3,906,325 $5,063,949 PUBLIC WORKS $165,810 $0 $165,810 $255,805 DEBT SERVICE $58,549 $0 $58,549 $57,729 CONTINGENCY / RESERVE APPROPRIATION $1,500,000 $0 $0 $1,320,809 TOTAL SPECIAL PROGRAMS FUND $13,829,439 ($1,590,386) $10,739,053 $17,006,453 $1,654,006 COMMUNITY SERVICES STADIUM FACILITY FUND COMMUNITY SERVICES $887,919 ($2,006) $885,913 DEBT SERVICE $17,375 ($17,375) $0 $0 $0 $0 $0 $2,242,032 $905,294 ($19,381) $885,913 $3,896,038 CONTINGENCY / RESERVE APPROPRIATION TOTAL STADIUM FACILITY FUND 46 Table of Contents Fund/Divisions TOURISM DEVELOPMENT FUND COMMUNITY AND ECONOMIC DEVELOPMENT Adopted Budget Expenditures 2023/2024 Expenditure Adjustments Approved 2023/2024 Actual Expenditures 2023/2024* Adopted Budget Expenditures 2024/2025 $22,011,914 $1,407,226 $23,419,140 CLASS AND COMP STUDY $18,205 ($18,205) $0 $0 LEAVE ACCRUAL PAYMENTS / PARENTAL LEAVE $1,058 $0 $1,058 $1,082 VACATION TRADE $21,864,126 $5,046 ($5,046) $0 $0 CONTINGENCY / RESERVE APPROPRIATION $9,359,883 $160,255 $0 $10,423,034 TOTAL TOURISM DEVELOPMENT FUND $31,396,106 $1,544,230 $23,420,198 $32,288,242 TRANSPORTATION FUND ADMINISTRATIVE SERVICES $18,800 $0 $18,800 $18,800 COMMUNITY SERVICES $2,255,183 $793 $2,255,976 $2,166,854 PUBLIC WORKS $30,358,469 $29,894,026 ($2,629,331) $27,264,695 CLASS AND COMP STUDY $248,635 ($248,635) $0 $0 ESTIMATED DIVISION SAVINGS ($360,000) $360,000 $0 ($368,136) $0 $1,174,054 $1,174,054 $0 $209,626 ($70,930) $138,696 $214,364 FUEL AND MAINT AND REPAIR LEAVE ACCRUAL PAYMENTS / PARENTAL LEAVE POST EMPLOYMENT MEDICAL $0 $22,360 $22,360 $0 UTILITIES $0 $753,483 $753,483 $0 VACATION TRADE $39,025 ($39,025) $0 $29,515 CONTINGENCY / RESERVE APPROPRIATION $3,730,530 $0 $0 $3,994,830 TOTAL TRANSPORTATION FUND $36,035,825 ($677,231) $31,628,064 $36,414,696 $82,166,664 ($742,768) $66,673,228 $89,605,429 $865,128 $0 $865,128 $1,072,040 $0 $10,000 $10,000 $0 COMMUNITY SERVICES $13,206,296 ($894,088) $12,312,208 $16,086,623 PUBLIC SAFETY - FIRE $560,505 $289,000 $849,505 $101,000 PUBLIC SAFETY - POLICE $1,055,111 $733,042 $1,788,153 $938,950 CONTINGENCY / RESERVE APPROPRIATION $8,076,408 ($1,948,817) $0 $10,332,480 TOTAL GRANT FUNDS $23,763,448 ($1,810,863) $15,824,994 $28,531,093 NON DIVISIONAL $578,708 $0 $578,708 $572,451 TOTAL SPECIAL DISTRICTS FUND $578,708 $0 $578,708 $572,451 $24,342,156 ($1,810,863) $16,403,702 $29,103,544 $93,647,344 TOTAL SPECIAL REVENUE FUNDS GRANTS & SPECIAL DISTRICTS FUNDS GRANT FUNDS ADMINISTRATIVE SERVICES COMMUNITY AND ECONOMIC DEVELOPMENT SPECIAL DISTRICTS FUND TOTAL GRANTS & SPECIAL DISTRICTS FUNDS DEBT SERVICE FUNDS DEBT DEBT SERVICE $91,459,254 $0 $91,459,254 CONTINGENCY / RESERVE APPROPRIATION $6,968,475 $3,678,051 $0 $8,132,087 TOTAL DEBT $98,427,729 $3,678,051 $91,459,254 $101,779,431 $98,427,729 $3,678,051 $91,459,254 $101,779,431 TOTAL DEBT SERVICE FUNDS 47 Table of Contents Adopted Budget Expenditures 2023/2024 Fund/Divisions ENTERPRISE FUNDS Expenditure Adjustments Approved 2023/2024 Actual Expenditures 2023/2024* Adopted Budget Expenditures 2024/2025 SOLID WASTE FUND CITY TREASURER $1,031,593 ($23,390) $1,008,203 $8,000 $0 $8,000 $8,000 $29,009,258 ($2,223,315) $26,785,943 $30,715,551 $277,211 ($277,211) $0 $0 DEBT SERVICE $430,715 ($430,715) $0 $0 ESTIMATED DIVISION SAVINGS ($325,000) ($42,092) ($367,092) ($332,345) ADMINISTRATIVE SERVICES PUBLIC WORKS CLASS AND COMP STUDY FUEL AND MAINT AND REPAIR INDIRECT/DIRECT COST ALLOCATION LEAVE ACCRUAL PAYMENTS / PARENTAL LEAVE $1,002,905 $0 $1,984,001 $1,984,001 $0 $1,785,696 $0 $1,785,696 $2,037,592 $46,880 ($25,346) $21,534 $47,939 POST EMPLOYMENT MEDICAL $0 $26,000 $26,000 $0 UTILITIES $0 $34,991 $34,991 $0 $43,561 ($43,561) $0 $34,238 CONTINGENCY / RESERVE APPROPRIATION $5,342,418 $523,498 $0 $5,734,298 TOTAL SOLID WASTE FUND $37,650,332 ($497,140) $31,287,276 $39,248,178 $2,605,385 ($152,333) $2,453,052 $2,407,057 VACATION TRADE WATER & WATER RECLAMATION FUNDS CITY TREASURER ADMINISTRATIVE SERVICES WATER RESOURCES CLASS AND COMP STUDY DEBT SERVICE FUEL AND MAINT AND REPAIR INDIRECT/DIRECT COST ALLOCATION LEAVE ACCRUAL PAYMENTS / PARENTAL LEAVE POST EMPLOYMENT MEDICAL VACATION TRADE $729,338 ($73,899) $655,439 $709,908 $100,909,490 ($1,369,064) $99,540,426 $107,353,417 $745,370 ($745,370) $0 $0 $28,545,978 $0 $28,545,978 $29,382,531 $0 $509,367 $509,367 $0 $6,685,230 $0 $6,685,230 $7,395,899 $53,232 $0 $53,232 $54,434 $0 $145,392 $145,392 $0 $70,424 ($70,424) $0 $65,997 CONTINGENCY / RESERVE APPROPRIATION $82,160,525 $7,345,633 $0 $96,234,928 TOTAL WATER & WATER RECLAMATION FUNDS $222,504,972 $5,589,302 $138,588,116 $243,604,171 $3,315,174 ($159,810) $3,155,364 $3,343,715 $47,878 ($47,878) $0 $0 $1,722,244 $0 $1,722,244 $1,722,744 $0 $44,872 $44,872 $0 $546,752 $0 $546,752 $609,316 AVIATION FUND COMMUNITY AND ECONOMIC DEVELOPMENT CLASS AND COMP STUDY DEBT SERVICE FUEL AND MAINT AND REPAIR INDIRECT/DIRECT COST ALLOCATION LEAVE ACCRUAL PAYMENTS / PARENTAL LEAVE $3,493 $0 $3,493 $3,572 POST EMPLOYMENT MEDICAL $0 $3,900 $3,900 $0 UTILITIES $0 $83,617 $83,617 $0 VACATION TRADE $4,000 ($4,000) $0 $1,541 CONTINGENCY / RESERVE APPROPRIATION $8,742,938 $6,511,165 $0 $16,508,374 TOTAL AVIATION FUND $14,382,479 $6,431,866 $5,560,242 $22,189,262 $274,537,783 $11,524,028 $175,435,634 $305,041,611 TOTAL ENTERPRISE FUNDS 48 Table of Contents Fund/Divisions INTERNAL SERVICE FUNDS Adopted Budget Expenditures 2023/2024 Expenditure Adjustments Approved 2023/2024 Actual Expenditures 2023/2024* Adopted Budget Expenditures 2024/2025 SELF INSURANCE FUNDS - RISK CITY ATTORNEY $17,559,732 $1,052 $17,560,784 $19,468,792 ADMINISTRATIVE SERVICES $50,000 $0 $50,000 $52,500 CLASS AND COMP STUDY $36,268 ($36,268) $0 $0 ($16,560,677) $0 ($16,560,677) ($18,857,984) $2,482 ($1,447) $1,035 $2,538 $0 $2,860 $2,860 $0 $3,963 ($3,963) $0 $4,474 CONTINGENCY / RESERVE APPROPRIATION $28,483,062 $467,812 $0 $30,312,728 TOTAL SELF INSURANCE FUNDS - RISK $29,574,830 $430,046 $1,054,002 $30,983,048 INTERNAL SERVICE OFFSETS LEAVE ACCRUAL PAYMENTS / PARENTAL LEAVE POST EMPLOYMENT MEDICAL VACATION TRADE FLEET MANAGEMENT FUND PUBLIC WORKS $22,790,188 ($352,817) $22,437,371 $32,770,222 CLASS AND COMP STUDY $142,273 ($142,273) $0 $0 ESTIMATED DIVISION SAVINGS ($300,000) $300,000 $0 ($306,780) FUEL AND MAINT AND REPAIR $0 $47,855 $47,855 $0 INTERNAL SERVICE OFFSETS ($22,750,676) $0 ($22,750,676) ($29,928,423) $111,959 ($30,249) $81,710 $114,489 $0 $13,780 $13,780 $0 $6,256 ($6,256) $0 $7,438 LEAVE ACCRUAL PAYMENTS / PARENTAL LEAVE POST EMPLOYMENT MEDICAL VACATION TRADE CONTINGENCY / RESERVE APPROPRIATION $3,000,000 $0 $0 $1,897,123 TOTAL FLEET MANAGEMENT FUND $3,000,000 ($169,960) ($169,960) $4,554,069 ADMINISTRATIVE SERVICES $768,170 $0 $768,170 $1,637,100 INTERNAL SERVICE OFFSETS ($850,000) $0 ($850,000) ($950,007) CONTINGENCY / RESERVE APPROPRIATION $100,000 $0 $0 $100,000 TOTAL PC REPLACEMENT FUND $18,170 $0 ($81,830) $787,093 $39,220,582 ($1,373,824) $37,846,758 $40,146,439 $3,359 ($3,359) $0 $0 ($30,191,547) $0 ($30,191,547) ($29,452,240) CONTINGENCY / RESERVE APPROPRIATION $9,381,745 ($296,357) $0 $9,488,188 TOTAL SELF INSURANCE FUNDS - HEALTH $18,414,139 ($1,673,540) $7,655,211 $20,182,387 $51,007,139 ($1,413,454) $8,457,423 $56,506,597 $1,068,380,341 PC REPLACEMENT FUND SELF INSURANCE FUNDS - HEALTH ADMINISTRATIVE SERVICES CLASS AND COMP STUDY INTERNAL SERVICE OFFSETS TOTAL INTERNAL SERVICE FUNDS CAPITAL PROJECT FUNDS CAPITAL IMPROVEMENT PROGRAM CAPITAL PROJECTS $1,368,929,785 $0 $1,368,929,785 CONTINGENCY / RESERVE APPROPRIATION $51,721,959 $0 $0 $22,760,560 TOTAL CAPITAL IMPROVEMENT PROGRAM $1,420,651,744 $0 $1,368,929,785 $1,091,140,901 $1,420,651,744 $0 $1,368,929,785 $1,091,140,901 $2,533,270,561 $35,116,203 $2,091,593,720 $2,294,848,905 TOTAL CAPITAL PROJECT FUNDS TOTAL ALL FUNDS *Includes actual expenditures recognized on the modified accrual or accrual basis as of the date the Adopted budget was prepared, plus estimated expenditures for the remainder of the fiscal year. 49 Table of Contents CITY OF SCOTTSDALE Summary by Division of Expenditures/Expenses Fiscal Year 2024/2025 Schedule F Adopted Budget Expenditures 2023/2024 Division/Fund Expenditure Adjustments Approved 2023/2024 Actual Expenditures 2023/2024* Adopted Budget Expenditures 2024/2025 MAYOR AND CITY COUNCIL GENERAL FUND $1,112,601 ($27,063) $1,085,538 $231,000 ($205,531) $25,469 $58,806 $1,343,601 ($232,594) $1,111,007 $1,286,955 GENERAL FUND $8,589,399 $6,687 $8,596,086 $9,016,837 INTERNAL SERVICE FUND - SELF INSURANCE - RISK $17,559,732 $1,052 $17,560,784 $19,468,792 $26,149,131 $7,739 $26,156,870 $28,485,629 $1,313,021 ($7,335) $1,305,686 $1,420,460 $1,313,021 ($7,335) $1,305,686 $1,420,460 $1,103,865 $11,340 $1,115,205 $1,457,536 $1,103,865 $11,340 $1,115,205 $1,457,536 GENERAL FUND $5,655,776 ($96,371) $5,559,405 $6,095,604 SPECIAL REVENUE FUND - SPECIAL PROGRAMS $2,065,560 ($38,871) $2,026,689 $2,151,916 $7,721,336 ($135,242) $7,586,094 $8,247,520 $2,228,807 ($286,931) $1,941,876 $2,943,560 $2,228,807 ($286,931) $1,941,876 $2,943,560 GENERAL FUND $12,585,220 ($607,957) $11,977,263 $13,642,181 ENTERPRISE FUND - SOLID WASTE $1,031,593 ($23,390) $1,008,203 $1,002,905 ENTERPRISE FUND - WATER & WATER RECLAMATION $2,605,385 ($152,333) $2,453,052 $2,407,057 $16,222,198 ($783,680) $15,438,518 $17,052,143 SPECIAL REVENUE FUND - SPECIAL PROGRAMS TOTAL MAYOR AND CITY COUNCIL $1,228,149 CITY ATTORNEY TOTAL CITY ATTORNEY CITY AUDITOR GENERAL FUND TOTAL CITY AUDITOR CITY CLERK GENERAL FUND TOTAL CITY CLERK CITY COURT TOTAL CITY COURT CITY MANAGER GENERAL FUND TOTAL CITY MANAGER CITY TREASURER TOTAL CITY TREASURER ADMINISTRATIVE SERVICES GENERAL FUND $25,956,820 ($1,035,696) $24,921,124 $26,947,123 GRANTS & SPECIAL DISTRICTS FUND - GRANT $865,128 $0 $865,128 $1,072,040 SPECIAL REVENUE FUND - TRANSPORTATION $18,800 $0 $18,800 $18,800 ENTERPRISE FUND - SOLID WASTE ENTERPRISE FUND - WATER & WATER RECLAMATION INTERNAL SERVICE FUND - PC REPLACEMENT INTERNAL SERVICE FUND - SELF INSURANCE - HEALTH INTERNAL SERVICE FUND - SELF INSURANCE - RISK $8,000 $0 $8,000 $8,000 $729,338 ($73,899) $655,439 $709,908 $768,170 $0 $768,170 $1,637,100 $39,220,582 ($1,373,824) $37,846,758 $40,146,439 $50,000 $0 $50,000 $52,500 $67,616,838 ($2,483,419) $65,133,419 $70,591,910 $26,455,848 ($1,244,824) $25,211,024 $26,117,112 $0 $10,000 $10,000 $0 $719,220 ($482,943) $236,277 $688,822 SPECIAL REVENUE FUND - TOURISM DEVELOPMENT $22,011,914 $1,407,226 $23,419,140 $21,864,126 ENTERPRISE FUND - AVIATION $3,315,174 ($159,810) $3,155,364 $3,343,715 $52,502,156 ($470,351) $52,031,805 $52,013,775 TOTAL ADMINISTRATIVE SERVICES COMMUNITY AND ECONOMIC DEVELOPMENT GENERAL FUND GRANTS & SPECIAL DISTRICTS FUND - GRANT SPECIAL REVENUE FUND - SPECIAL PROGRAMS TOTAL COMMUNITY AND ECONOMIC DEVELOPMENT 50 Table of Contents Adopted Budget Expenditures 2023/2024 Division/Fund COMMUNITY SERVICES Expenditure Adjustments Approved 2023/2024 Actual Expenditures 2023/2024* Adopted Budget Expenditures 2024/2025 GENERAL FUND $50,821,650 ($2,184,106) $48,637,544 $52,771,541 GRANTS & SPECIAL DISTRICTS FUND - GRANT $13,206,296 ($894,088) $12,312,208 $16,086,623 SPECIAL REVENUE FUND - SPECIAL PROGRAMS $4,389,994 ($807,783) $3,582,211 $6,563,780 SPECIAL REVENUE FUND - STADIUM FACILITY $887,919 ($2,006) $885,913 $1,654,006 SPECIAL REVENUE FUND - TRANSPORTATION $2,255,183 $793 $2,255,976 $2,166,854 $71,561,042 ($3,887,190) $67,673,852 $79,242,804 TOTAL COMMUNITY SERVICES PUBLIC SAFETY - FIRE GENERAL FUND $64,767,849 $1,495,112 $66,262,961 $72,897,636 GRANTS & SPECIAL DISTRICTS FUND - GRANT $560,505 $289,000 $849,505 $101,000 SPECIAL REVENUE FUND - SPECIAL PROGRAMS $757,094 ($19,371) $737,723 $844,837 $66,085,448 $1,764,741 $67,850,189 $73,843,473 $136,918,706 TOTAL PUBLIC SAFETY - FIRE PUBLIC SAFETY - POLICE GENERAL FUND $144,301,971 ($5,152,658) $139,149,313 GRANTS & SPECIAL DISTRICTS FUND - GRANT $1,055,111 $733,042 $1,788,153 $938,950 SPECIAL REVENUE FUND - SPECIAL PROGRAMS $3,942,212 ($35,887) $3,906,325 $5,063,949 $149,299,294 ($4,455,503) $144,843,791 $142,921,605 $28,329,379 ($5,929,063) $22,400,316 $30,020,050 $165,810 $0 $165,810 $255,805 SPECIAL REVENUE FUND - TRANSPORTATION $29,894,026 ($2,629,331) $27,264,695 $30,358,469 ENTERPRISE FUND - SOLID WASTE $29,009,258 ($2,223,315) $26,785,943 $30,715,551 INTERNAL SERVICE FUND - FLEET MANAGEMENT $22,790,188 ($352,817) $22,437,371 $32,770,222 $110,188,661 ($11,134,526) $99,054,135 $124,120,097 $100,909,490 ($1,369,064) $99,540,426 $107,353,417 $100,909,490 ($1,369,064) $99,540,426 $107,353,417 $1,368,929,785 $0 $1,368,929,785 $1,068,380,341 $8,337,753 ($8,337,753) $0 $0 CONTINGENCY / RESERVE APPROPRIATION $425,293,424 $51,499,620 $0 $464,738,393 DEBT SERVICE $122,686,218 ($448,090) $122,238,128 $125,268,752 ESTIMATED DIVISION SAVINGS ($9,985,000) $5,801,081 ($4,183,919) ($11,780,261) $0 $7,007,312 $7,007,312 $0 $9,017,678 $0 $9,017,678 $10,042,807 ($70,352,900) $0 ($70,352,900) ($79,188,654) $3,242,718 ($1,873,630) $1,369,088 $4,764,156 $578,708 $0 $578,708 $572,451 POST EMPLOYMENT MEDICAL $0 $411,242 $411,242 $0 UTILITIES $0 $5,795,725 $5,795,725 $0 $1,277,289 ($1,277,289) $0 $1,070,036 $1,859,025,673 $58,578,218 $1,440,810,847 $1,583,868,021 $2,533,270,561 $35,116,203 $2,091,593,720 $2,294,848,905 TOTAL PUBLIC SAFETY - POLICE PUBLIC WORKS GENERAL FUND SPECIAL REVENUE FUND - SPECIAL PROGRAMS TOTAL PUBLIC WORKS WATER RESOURCES ENTERPRISE FUND - WATER & WATER RECLAMATION TOTAL WATER RESOURCES OTHER CAPITAL PROJECTS CLASS AND COMP STUDY FUEL AND MAINT AND REPAIR INDIRECT/DIRECT COST ALLOCATION INTERNAL SERVICE OFFSETS LEAVE ACCRUAL PAYMENTS / PARENTAL LEAVE NON DIVISIONAL VACATION TRADE TOTAL OTHER TOTAL ALL FUNDS *Includes actual expenditures recognized on the modified accrual or accrual basis as of the date the Adopted budget was prepared, plus estimated expenditures for the remainder of the fiscal year. 51 Table of Contents CITY OF SCOTTSDALE Full-Time Employees and Personnel Compensation Fiscal Year 2024/2025 Schedule G Full-Time Equivalent (FTE) 2024/2025 Fund Employee Salaries and Hourly Costs 2024/2025 Retirement Costs 2024/2025 Healthcare Costs 2024/2025 Other Benefit Costs 2024/2025 Total Adopted Personnel Compensation 2024/2025 GENERAL FUND GENERAL FUND 2,094.73 $199,583,964 $43,923,294 $24,244,535 $17,134,022 $284,885,815 2,094.73 $199,583,964 $43,923,294 $24,244,535 $17,134,022 $284,885,815 18.00 $1,666,423 $185,560 $251,196 $112,381 $2,215,560 18.00 $1,666,423 $185,560 $251,196 $112,381 $2,215,560 SPECIAL PROGRAMS FUND 59.03 $4,295,146 $783,216 $542,050 $287,253 $5,907,665 STADIUM FACILITY FUND 3.00 $213,941 $23,682 $28,044 $14,422 $280,089 TOURISM DEVELOPMENT FUND 4.69 $524,399 $58,478 $79,800 $35,039 $697,716 TRANSPORTATION FUND 92.98 $8,247,566 $877,224 $1,147,570 $784,436 $11,056,796 159.70 $13,281,052 $1,742,600 $1,797,464 $1,121,150 $17,942,266 AVIATION FUND 15.48 $1,413,828 $157,737 $127,716 $113,229 $1,812,510 SOLID WASTE FUND 106.40 $9,189,883 $914,385 $1,225,886 $645,005 $11,975,159 241.14 $23,634,051 $2,573,562 $2,906,566 $2,201,871 $31,316,050 363.02 $34,237,762 $3,645,684 $4,260,168 $2,960,105 $45,103,719 FLEET MANAGEMENT FUND 54.00 $4,680,571 $493,427 $690,498 $427,068 $6,291,564 SELF INSURANCE FUNDS - HEALTH 0.00 $331,070 $0 $0 $0 $331,070 SELF INSURANCE FUNDS - RISK 11.00 $1,310,980 $128,582 $142,044 $78,844 $1,660,450 65.00 $6,322,621 $622,009 $832,542 $505,912 $8,283,084 - $4,230,951 $479,165 $528,750 $298,047 $5,536,913 2,700.45 $259,322,773 $50,598,312 $31,914,655 $22,131,617 $363,967,357 TOTAL GENERAL FUND GRANTS & SPECIAL DISTRICTS FUNDS GRANT FUNDS TOTAL GRANTS & SPECIAL DISTRICTS FUNDS SPECIAL REVENUE FUNDS TOTAL SPECIAL REVENUE FUNDS ENTERPRISE FUNDS WATER & WATER RECLAMATION FUNDS TOTAL ENTERPRISE FUNDS INTERNAL SERVICE FUNDS TOTAL INTERNAL SERVICE FUNDS CAPITAL PROJECT MANAGEMENT CHARGED TO CAPITAL TOTAL ALL FUNDS 52 Table of Contents 53 54 2,693,389 24,433,457 27,126,846 58,797,505 9,860,188 68,657,693 10,917,706 57,710,870 3,768,810 19,179,935 91,577,321 111,242,740 76,396,000 187,638,740 429,592,292 31,891,769 29,925,878 61,817,647 44,318,030 27,077,766 71,395,795 4,828,571 147,501,241 12,005,242 395,248 164,730,303 93,868,622 178,603,219 272,471,841 661,548,609 - 11,269,416 11,269,416 5,742,364 5,742,364 5,366,780 5,366,780 27,668,588 15,653,688 43,322,276 FY 2024/25 Request 6,405,159 73,618,719 80,023,879 Net Carryforward Appropriation (a) 1,091,140,901 205,111,362 254,999,219 460,110,581 15,746,277 205,212,111 15,774,052 19,575,183 256,307,624 103,115,535 36,937,954 140,053,488 34,585,158 54,359,335 88,944,493 5,366,780 5,366,780 17,011,780 17,011,780 34,073,747 89,272,407 123,346,155 Total 2024/25 Apppropriation 530,038,660 60,610,500 78,976,000 139,586,500 10,921,190 149,414,368 1,500,000 40,034,641 201,870,199 31,113,617 23,413,716 54,527,333 12,547,416 10,694,502 23,241,918 - 71,541,029 71,541,029 1,825,835 37,445,846 39,271,681 Forecast 2025/26 238,697,932 40,085,433 89,758,238 129,843,671 13,215,524 23,656,185 1,500,000 2,790,624 41,162,333 13,905,622 14,856,412 28,762,034 7,278,739 2,964,507 10,243,246 - 13,799,697 13,799,697 5,886,951 9,000,000 14,886,951 Forecast 2026/27 221,383,880 37,779,130 107,991,000 145,770,130 15,972,566 25,475,794 1,500,000 798,836 43,747,196 5,317,300 13,372,464 18,689,764 1,010,439 2,507,900 3,518,339 - 5,407,134 5,407,134 4,251,317 4,251,317 Forecast 2027/28 163,149,542 35,693,000 51,483,500 87,176,500 13,855,670 24,084,242 1,500,000 600,000 40,039,912 5,507,300 17,165,307 22,672,607 919,729 2,401,400 3,321,129 - 1,000,000 1,000,000 8,939,394 8,939,394 Forecast 2028/29 2,244,410,915 379,279,425 583,207,957 962,487,382 69,711,227 427,842,700 21,774,052 63,799,284 583,127,264 158,959,374 105,745,853 264,705,226 56,341,481 72,927,644 129,269,125 5,366,780 5,366,780 108,759,640 108,759,640 54,977,244 135,718,253 190,695,498 Total 5-Year Program Under Arizona law, unused funds from one fiscal year can only be spent in the following fiscal year if the Council formally reappropriates the funds as part of the new budget. Since many capital projects extend across fiscal years during planning, design, and construction, it's essential to reappropriate funds to ensure completion. Importantly, this process doesn't increase total project costs. (a) Note: Rounding diffrences may occur. Grand Total Community Facilities Neighborhood & Community Parks/Park Improvements Community Facilities Total Drainage/Flood Control Drainage/Flood Control Drainage/Flood Control Total Preservation Preservation/Preservation Improvements Preservation Total Public Safety Fire Protection Police Public Safety Total Service Facilities Municipal Facilities/Improvements Technology Improvements Service Facilities Total Transportation Aviation/Aviation Improvements Streets/Street Improvements Traffic/Traffic Reduction Transit/Multi-Modal Improvements Transportation Total Water Management Wastewater Improvements Water Improvements Water Management Total Program Adopted Five-Year Capital Improvement Plan FY 2024/25 - FY 2028/29 Program Summary Table of Contents Table of Contents 55 Table of Contents 56 Table of Contents BlueInk Bundle ID: zxkqF70b5f 57 Table of Contents 58 BlueInk Bundle ID: zxkqF70b5f Table of Contents 59 BlueInk Bundle ID: zxkqF70b5f Table of Contents 60 BlueInk Bundle ID: zxkqF70b5f Table of Contents BlueInk Bundle ID: zxkqF70b5f 61 Table of Contents 62 BlueInk Bundle ID: zxkqF70b5f Table of Contents 63 BlueInk Bundle ID: zxkqF70b5f Table of Contents 64 BlueInk Bundle ID: zxkqF70b5f Table of Contents 65 BlueInk Bundle ID: zxkqF70b5f Table of Contents 66 BlueInk Bundle ID: zxkqF70b5f Table of Contents GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Scottsdale Arizona For the Fiscal Year Beginning July 01, 2023 Executive Director Budget Award for Fiscal Year 2023/24 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, 2023. 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. 67 Table of Contents The Center for Digital Government presented Scottsdale the 2023 Top Digital Cities award in the 250,000-499,999 population category. Scottsdale was recognized for its dedication to serving our community through innovative technology. This award is presented to communities demonstrating exceptional cybersecurity, transparency, digital privacy rights, digital equity, and innovative solutions for social challenges. The Digital Privacy administrative regulation safeguards public trust in the city’s use of new and emerging technologies to protect digital privacy rights by enabling residents to determine when, how, and to what extent information about them is communicated to others. 68 Table of Contents OVERVIEW | Budget Development Process CITY OF SCOTTSDALE’S BUDGET DEVELOPMENT PROCESS RECOMMENDED BUDGET PRACTICES The City of Scottsdale’s budget development process incorporates the recommended practices from the Government Finance Officers Association (GFOA). GFOA, founded in 1906, represents public finance officials throughout the United States and Canada. The association’s more than 20,000 members are federal, state/provincial, and local finance officials deeply involved in planning, financing, and implementing thousands of governmental operations in each of their jurisdictions. The focus of GFOA is to advance excellence in public finance in areas such as: budgeting, accounting, financial reporting, debt management, and public fund investing. GFOA recommends a set of best practices for budgeting that are designed to improve effectiveness, transparency, and accountability. The following are excerpts of the Recommended Budget Practices: A framework for improved state and local government budgeting1. A. 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 includes 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. B. 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. 69 Table of Contents OVERVIEW | Budget Development Process C. 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 GFOA’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 GFOA’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. 70 Table of Contents OVERVIEW | Budget Development Process 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. 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 leadership staff. They provide an organizational-wide 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 department director, budget and research administrator, budget/research analyst principal and senior budget analysts. The team is responsible for preparing the multi-fund shortrange 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 bi-weekly meetings with the 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. From March through May, the city treasurer updates City Council on the development of the budget process during their monthly meetings. 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 (mid-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 71 Table of Contents OVERVIEW | Budget Development Process critical in the process as that will ultimately define the expenditure limitations for the forthcoming budget year. The multiyear 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 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 highest-ranking 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. 72 Table of Contents OVERVIEW | Budget Development Process 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/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, and financial policies. 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. 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 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 73 Table of Contents OVERVIEW | Budget Development Process goals, accomplishing strategic objectives and making efficient use of limited resources. Two employee values, “thoughtful innovation” and “accountable integrity,” 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 values of “dedicated service”, and ”collaborative teamwork” 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. 74 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 Budget Process Review & Adjustment 75 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 department 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 and 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 Annual Comprehensive Financial Report are: • • • • • • Certain revenues, expenditures and transfers are not included in the budget, but are accrued and reported in the Annual Comprehensive 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 Annual Comprehensive 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 Annual Comprehensive 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 Annual Comprehensive 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 Annual Comprehensive 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 Annual Comprehensive Financial Report. For budget purposes the Risk Management Fund presents claim expenditures on a short-term basis while in the Annual Comprehensive 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, Internal Service, Grants and the Capital Improvement Plan. OPERATING AND CAPITAL BUDGET RELATIONSHIP The City of Scottsdale’s Budget for FY 2024/25 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, the signed budget adoption and property tax levy ordinances, final state forms, executive summary and adopted financial policies. Volume One also contains a budget by fund section, which includes five-year financial forecasts that cover the period FY 2024/25 through FY 2028/29. 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 76 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 a 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, Stadium Facility, 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 fiveyear 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 77 Table of Contents OVERVIEW | Budget Development Process the operating budget Financial Update and Financial Report. The CIP budget status is also shared quarterly. Staff monitor and 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-9cc8- 5f37e6e2f21e_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 78 Table of Contents OVERVIEW | Budget Calendar BUDGET PLANNING AND DEVELOPMENT FISCAL YEAR 2024/25 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 Updates 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 79 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance Comprehensive Financial Policies The City of Scottsdale’s (city) mission is to provide simply better service for a world-class community. A vital component to achieving this mission is to carefully account for public funds, to manage finances wisely, and to plan for the adequate funding of services desired by the public, including the provision and maintenance of public facilities. These Comprehensive Financial Policies (Policies) establish the standards for stewardship over the city’s financial resources and provide guidance for sound fiscal planning, budgeting, accounting, and financial reporting to support the city’s mission and financial goals. The city’s financial goals are broad and represent the financial position the city seeks to attain: ▪ ▪ ▪ ▪ To deliver quality services in an affordable, efficient, and cost-effective basis providing full value for each tax dollar. To maintain an adequate financial base to sustain a sufficient level of municipal services, thereby preserving the quality of life in Scottsdale. To have the ability to withstand local and regional economic fluctuations, to adjust to changes in the service requirements of our community, and to respond to changes in Federal and State priorities and funding as they affect the city's residents and business owners. To maintain a high bond credit rating to ensure the city’s access to the bond markets and to provide assurance to the city's taxpayers that the city government is well managed and financially sound. All divisions will participate in the responsibility of meeting policy goals and ensuring the long-term financial health of the city. Future service plans and program initiatives will be developed to reflect current policy directives, projected resources, and future service requirements. These Policies are adopted by council resolution each year. By their nature, policies must change and evolve over time as the city grows and to respond to changes in law, new industry standards, or best practices. Accordingly, these Policies will be subject to annual review and recommendation for revisions, if any, will be presented to the Scottsdale City Council (council) for approval. In addition to these Policies, the city maintains internal Administrative Regulations (AR) to provide city manager directives for staff, where necessary. ARs are written orders or directives issued by the city manager intended to articulate citywide policies and procedures. These are referenced throughout these Policies, where applicable. Policy 1 Fiscal Planning and Budgeting Fiscal planning refers to the process of identifying resources and allocating those resources among numerous and complex competing purposes. The primary vehicle for this planning is the preparation, monitoring, and analysis of the city’s budget. The purpose of this policy is to provide guidance on the city’s budget process and development to ensure sound financial management and application of best practices in budgeting and fiscal planning. Accompanying the Policies are a set of budget governing guidance which provides direction for allocating certain annual city resources through the budget process to meet council priorities and goals. These guidelines are attached as Appendix A Budget Governing Guidance. 1.01 Budget Period. The city will budget revenues and expenditures for all funds on a fiscal year basis which begins July 1 and ends on the following June 30. 1.02 Budget Adoption. Pursuant to Article 3, Section 2 and Article 6, Sections 3 and 5 of the Scottsdale City Charter, the city manager shall submit to the 80 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance council a proposed annual operating budget and five-year capital improvement plan. The full council will solicit resident input and review the operating and capital budget recommendations from a division, program, and goals perspective. The council shall adopt the budget for the following fiscal year at the first regular meeting in June. 1.03 Budget Basis. The annual operating budget and five-year capital improvement plan will be prepared on a basis consistent with Generally Accepted Accounting Principles (GAAP)1 whereby Governmental Funds (General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds) are budgeted on a modified accrual basis and Proprietary Funds (Enterprise Funds and Internal Service Funds)1 are budgeted on a full accrual basis except for the following: a) Amortized lease revenues and associated b) c) d) e) 1.04 1.05 interest Payroll accruals and accrued compensated absences Change in fair value of investments Depreciation and amortization expenditures Long-term revenue and expenditure activity Alignment with Goals and Performance Measurement. The budget will be developed in accordance with council’s established goals and priorities, the needs of the community, and local, state, and federal laws. Performance management will be utilized to align council goals and organization strategic efforts. The annual budget will include department goals, objectives, and performance measures to show that intended goals and objectives are achieved in an efficient and effective manner. Long-Range Financial Forecasts. To promote long-term strategic thinking and demonstrate the city’s ability to adapt to changes in the economy, operating requirements, and capital demands, the city will prepare a balanced five-year financial forecast that will incorporate both revenue and expenditure estimates and reserve requirements for the city’s primary funds. The five-year forecast will identify revenues and expenditures that are anticipated to be sustainable over the five-year period. The five-year forecast will be updated annually and provided to executive leadership during the city’s budget process. 1.06 Expenditure Limitation Review. The city shall ensure that its expenditures adopted through the annual budget process are below the expenditure limitation established by the state. At a minimum of every five years, the city treasurer shall report to the council the expenditure limitation capacity of the city. In the event that projections through the budget process result in the city reaching or exceeding ninety percent (90%) of the expenditure limitation, the city treasurer shall provide council with formal notification and recommendations for council action. 1.07 Balanced Budget. The budget shall be considered balanced if all sources of revenue, as estimated, are equal to, or exceed, the total of amounts proposed to be used in the operating budget for the current fiscal year, by fund. To the extent unencumbered balances from the preceding fiscal year are required to achieve a balanced budget, use of unencumbered balances from the preceding fiscal year will be only as authorized by council. The budget will not use one-time (nonrecurring) sources to fund continuing (recurring) uses or use external borrowing for operational requirements. The budget will incorporate the best available estimates of revenues and expenditures. 1.08 Cost Allocation. The city shall establish an indirect cost allocation plan to determine the administrative service and other indirect staff support provided to divisions, programs, and funds. Administrative costs incurred in the General Fund to support operations of the Enterprise Funds (Water, Wastewater, Solid Waste, and Aviation) will be recovered through the indirect cost allocation plan. GAAP and fund types are all defined by the Governmental Accounting Standards Board (GASB) as defined by the Statements of Governmental Accounting Standards. 1 81 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance 1.09 Contingency. The city’s annual budget will include contingency appropriations to provide for unanticipated increases in service delivery costs and unexpected needs that may arise throughout the fiscal year. Use of contingency appropriation will require identifying a funding source and should be utilized only after all budget sources have been examined for available funds. The contingency appropriation can only be expended upon separate council approval. 1.10 Budget Control. The city shall establish appropriate management controls to monitor expenditure budgets to ensure they do not exceed authorizations. For operating budgets, this control shall be exercised at the division/fund level. For capital budgets, this control shall be at the project level. See Policy 3 Expenditure Management for further policy guidance on budget controls. 1.11 Budget Amendments. The city can amend appropriations for line items, funds, projects, or divisions if total expenditures do not exceed the final appropriation budget adopted by council. Requests for amendments within the same division, fund, and account categories (personnel services, contractual services, commodities, and capital outlays) must be approved by the division’s executive director and the city’s budget director. Pursuant to Article 6, Section 11 of the Scottsdale City Charter and as clarified by these Policies, amendments requiring the transfer of contingency appropriation or the transfer of appropriation between general classification of expenditures such as between operating and capital budgets, funds, divisions, account categories, and between capital projects can be made at the direction of the city manager subject to council approval. 1.12 projects. Such action will not be taken arbitrarily or without knowledge of the council. 1.12 Unspent Appropriations. Unspent appropriations for programs and major projects may be considered for re-appropriation in the subsequent fiscal year. Such carryover of appropriation shall be included in the proposed budget to be authorized by the council. 1.13 Distinguished Budget Award. The city will prepare a budget in accordance with the Government Finance Officers Association policies and best practices established by the “Government Finance Officers Association Distinguished Budget Award” program. Staff will submit the budget document to the Government Finance Officers Association each year for review in the award program. Policy 2 Reserves and Fund Balance Maintaining adequate reserves is critical to ensure the city’s financial stability through economic downturns, catastrophic events, natural disasters, and other unforeseen emergencies and events. Adequate reserves are also essential in preserving the city’s high bond ratings and achieving the city’s financial goals. The purpose of this policy is to establish reserve targets and fund balance, the conditions under which reserves and fund balance may be spent, and the method by which reserves and fund balance will be restored. Reserves should only be used after all other budget sources have been examined. 2.01 Budget Deficit. If a deficit is projected during the fiscal year, the city will take steps to reduce expenditures or increase revenues before considering using fund balance or reserves. The city manager may institute a cessation during the fiscal year on hiring, promotions, transfers, capital equipment purchases, and capital 82 General Fund Operating Reserves. The General Fund is the city’s main operating fund that pays for public safety, community services, parks, libraries, and other general city operations. The General Fund is considered to have a high level of risk due to its dependence on economically sensitive revenues. The General Fund is the main funding source when responding to city-wide emergencies and unexpected events. In consideration of these risks and other driving factors, the city will maintain an “Operating Reserve” in the General Fund of 20 percent of operating uses, excluding transfers out, to Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance not depend on the General Fund to fund operating and capital costs. The city will maintain “Operating Reserves” in its Enterprise Funds as follows to provide for emergencies, unexpected declines in revenues and other unanticipated events. Use of these reserves require council approval, and the city shall strive to restore the reserves to the defined level within the next two fiscal years following the fiscal year in which the funds were used. provide stability and flexibility to respond to unexpected events. The reserve is intended for unexpected events (such as a significant unexpected loss of revenues, unexpected mandates, or large-scale emergencies) whose impact is significant. Use of this reserve requires council approval and must be replenished to the required General Fund Operating Reserve policy level of 20 percent within the next two fiscal years following the fiscal year in which the funds were used. 2.02 2.03 2.04 General Fund Emergency Reserves. The city will maintain an “Emergency Reserve” in the General Fund of 5 percent of operating uses, excluding transfers out. The reserve is intended for unexpected emergencies and events where immediate action must be taken in the best interest of the city’s residents and business owners. Use of reserves must be appropriated by council action. However, the city manager may approve the use of this reserve in the event that immediate expenditure of funds is needed to protect the health, safety, and welfare of the city. When this occurs, the city manager will provide a report for council approval as soon as practical on the usage of these funds. The city will strive to restore the reserves to the required General Fund Emergency Reserve policy level of 5 percent within the next fiscal year following the fiscal year in which the funds were used. Transportation Fund Operating Reserves. The city will maintain an “Operating Reserve” in the Transportation Fund of 10 percent of operating uses, excluding transfers out, to provide funding to deal with fluctuations in economic cycles and unexpected one-time operating requirements. Use of this reserve requires council approval, and the city shall strive to restore the reserves to the required Transportation Fund Operating Reserve policy level of 10 percent within the next two fiscal years following the fiscal year in which the funds were used. Enterprise Fund Operating Reserves. Enterprise Funds (Water, Wastewater, Solid Waste, and Aviation) are intended to be self-supporting and a) Water and Wastewater Funds - 25 percent of operating uses, excluding transfers out and debt service. b) Aviation Fund - 25 percent of operating uses, excluding transfers out and debt service. c) Solid Waste Fund - 15 percent of operating uses, excluding transfers out and debt service. 2.05 Water and Wastewater Asset Replacement Reserves. The city will maintain a “Water and Wastewater Asset Replacement Reserve” equal to 2 percent of the undepreciated book value of tangible fixed assets. The reserve may be used to provide funding for the repair and maintenance of critical infrastructure. Use of this reserve requires council approval and the city shall strive to restore the reserve to the defined level within the next two fiscal years following the fiscal year in which the funds were used. 2.06 Governmental Debt Service Reserves. The city will maintain “Debt Service Reserves” in the General Obligation Bond Debt Service Fund for secondary property tax supported debt of no more than 10 percent of the amount of annual principal and interest needed to service the outstanding debt. The city will maintain “Debt Service Reserves” for governmental debt supported by excise taxes, dedicated taxes, or revenues, at a minimum of 25 percent of the next fiscal year’s debt service. 2.07 Self-Insurance Reserves. The city will maintain “Self-Insurance Reserves” 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 83 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance actuarial firm shall be retained on an annual basis to project and develop losses to recommend appropriate reserve levels. The Loss Trust Fund Board’s target is to maintain a minimum Risk Management reserve fund balance equivalent to the actuary’s 75 percent confidence interval of projected total outstanding claims liability. 2.08 Other Reserves and Fund Balance. The city may maintain other reserves or fund balance as deemed necessary to ensure adequate resources to cover future expenditures. 2.09 Expending Order of Fund Balance. In accordance with Resolution No. 8751 adopted by the council on June 28, 2011 (Resolution No. 8751), when an expenditure is incurred for purposes for which committed, assigned, and unassigned balances are available, as a general rule, the city will first reduce the committed amounts, followed by assigned amounts, and then unassigned. 2.10 Commitment of Fund Balance. In accordance with Resolution No. 8751, for committed fund balance, formal action by the city council through resolution is required to establish, modify, or rescind committed fund balance. Such council resolutions must occur before the end of the applicable fiscal year. 2.11 Assignment of Fund Balance. In accordance with Resolution No. 8751, the city council authorized the city treasurer or designee, to assign fund balance for specific purposes. 3.01 Policy 3 Expenditure Management Division or department management is expected to manage their expenditures wisely and to look for efficient and effective ways to deliver services— including alternative means of service delivery—to residents and businesses while meeting council goals. This policy provides guidance and standards to ensure careful management of expenditures in accordance with legal requirements and to ensure sound financial management practices and accountability for public funds. 84 Operating Expenditure Management. a) Budget Level Control. Operating expenditures will be controlled by an annual appropriated budget at the division/fund level. A division cannot spend more than the budget appropriated for the division or fund unless additional appropriation is approved by council through a budget transfer or amendment process. If a transfer of appropriation between expenditure categories is necessary, council approval is required. Requests for new, on-going programs made outside the budget process will be discouraged and only accepted when approved by the city manager and the related budget authority must also be approved by council. b) Transfer of Appropriation. In accordance with Article 6, Section 11 of the Scottsdale City Charter, the city manager, subject to approval of the council, may transfer any unencumbered or unrestricted appropriation balance between general classifications of expenditures within a division/department or fund or from one division/department or fund to another. c) Position Control. A system will be used to facilitate position control. The number of fulltime and regular part-time employees on the payroll shall not exceed the total number of full-time equivalents (FTEs) authorized by council through the budget process. The budget will identify the resources required to support the authorized staffing. Personnel additions outside of the budget process are discouraged and only accepted when approved by the city manager and the related budget authority must also be approved by council. d) Health Benefits. Benefits and compensation will be administered in accordance with policy given by council. As part of a costcontainment strategy, total costs for health insurance premiums will be shared between the employer, employees, and public safety Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance authority exists due to inactivity or upon project completion. Before fiscal year-end, any unspent funding for inactive or completed projects will revert to the fund balance of the funding source. disabled retirees. Total premiums will be evaluated on an annual basis to ensure they are reasonable and competitive and that total premiums are expected to provide adequate funding of anticipated claims and a reasonable level of loss reserves. 3.02 d) Balanced CIP Budget. For each year of the CIP, total anticipated expenditures and commitments will not exceed projected starting fund balance plus total anticipated revenues for that year. Capital Expenditure Management. a) Capital Improvement Plan (CIP). The CIP is a planning and fiscal management tool used by the city for long-term planning for capital improvements. The five-year CIP will be updated annually, including anticipated spending as well as funding sources, and submitted to council for review and adoption. The first year of the adopted CIP will be the capital budget for that fiscal year. CIP projects are defined typically as multi-year efforts which may include purchases or construction of infrastructure or equipment which results in a new capitalized asset costing more than $50,000 and having a useful life of five years or more. e) Pay-as-you-go. The city shall incorporate “pay-as-you-go” funding in the annual CIP. Pay-as-you-go funding should account for a minimum of 25 percent of the CIP for each five-year planning period, except for capital improvement programs funded by voter approved debt where the amount of debt is authorized by voters. Pay-as-you-go funding is defined as all sources of revenue other than city debt issuance, i.e., fund balance, dedicated revenues, contributions, grants etc. f) b) Project Review and Selection. Proposed CIP projects will include a detailed project description, identification of need and funding sources, full cost estimates, anticipated time schedule, full operating impacts, and other information necessary for proper evaluation of the city’s investment in, and the ability to fund, the projects. Proposed CIP projects will be reviewed and prioritized by a cross-divisional team to ensure they are consistent with the council goals. c) Funding of CIP Projects. CIP projects must have sufficient budget authority and a funding source identified in the five-year CIP plan to meet the entire amount of the commitment. Future operating and maintenance costs associated with new capital improvements approved by council will be forecasted and included in the operating budget and five-year financial plan. Capital projects will be monitored to ensure that no unnecessary budget appropriation 3.03 Approval for Capital Project Cost Increases. Cost increases to capital projects greater than 10 percent and $1.0 million as a result of scope increases or other cost increases require council presentation or a written update to council, and council approval. In unique circumstances, the city manager and budget director, based on additional review, may require council discussion or presentation and council approval for increases that do not meet the policy’s threshold of 10 percent and $1.0 million. Financial Obligations and Commitments. Divisions contemplating entering into financial obligations and commitments for new programs, projects, or services and requiring future budget appropriations over $1.0 million that is currently not in the five-year CIP or operating forecast requires city manager approval and council presentation and approval before entering into the financial obligation or commitment. 85 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance reasonable and justifiable direct and indirect cost components. Policy 4 Revenue Management The revenue management policy establishes the city’s revenue principles and practices for ensuring financial stability and sustainability and achieving the city’s financial goals of maintaining an adequate financial base for municipal services. 4.01 Custody. In accordance with Scottsdale Revised Code Chapter 2 Article IV, Section 2-131, the city treasurer shall control receipts and have custody of all the money of the city. 4.02 Revenue Collection. The city will maintain effective internal controls and formal procedures to ensure the proper billing, collection, and accounting of all receipts and receivables. The city will vigilantly pursue collecting all revenues, late penalties, and related interest as authorized by the Arizona Revised Statutes and city policies. 4.03 Revenue Base. The city will strive to maintain a diversified and stable General Fund revenue base to shelter it from economic changes or short-term fluctuations by exploring appropriate and allowable sources of revenues for funding programs and projects which may include revenues from assessments, contracts, grants and contributions, taxes, and fees. 4.04 Dedicated Revenues. Revenues will not be dedicated for specific purposes, unless approved by council, required by law, or restricted by an outside party. All non-restricted revenues (except for Proprietary Fund revenues) will be deposited in the General Fund. 4.05 User Fees and Charges. For services that largely or solely benefit individuals, the city shall recover full or partial cost of service delivery through user fees and charges. New fees and fee increases must be approved by council before implementation. 4.06 Fleet and IT Replacement Rates. The use or replacement of Fleet and Information Technology (PC, phones, and copier systems) will be accounted for through the use of a direct or a “rental” rate structure. The rates will be revised annually to ensure that charges to operating divisions are sufficient for operation and replacement of vehicles and other equipment. Replacement costs will be based upon equipment lifecycle financial analysis. 4.07 Development Impact Fees. Development impact fees, as permitted by state law, for capital expenses attributable to new development will be reviewed periodically with an engineering assessment to ensure that fees recover all direct development-related expenses and be approved by council. 4.08 Unanticipated One-Time Non-Operating Revenues. Use of significant unanticipated onetime, non-operating revenues (except for grants) such as the sale of land, requires council presentation and approval. Policy 5 Grants Management Grant funding will be considered to leverage city funds. This policy provides guidance to ensure careful review of grant opportunities and their fiscal impact, prior to determining whether an application should be made for these grant funds. The city also maintains AR #255, which governs the Grant Acquisition and Administration process. 5.01 The city will periodically evaluate the full cost of providing a service for which fees are charged. The calculation of full cost will include all 86 Grant Application. The city shall apply for only those grants that are consistent with the goals and priority needs of the city. The potential for incurring ongoing costs, including the assumption of support for grant-funded positions from local revenues, will be considered prior to applying for a grant. Application or acceptance of grants meeting the parameters of AR #255 are subject to council approval. Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance 5.02 Match Requirements. All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet the city’s goals. If there is a cash match requirement, the source of funding shall be identified prior to application. 5.03 Budget Control. The city should avoid relying on grant funding to support on-going programs. All grant program initiatives will be evaluated as part of the budget process. In the event of reduced grant funding, or inconsistent and/or fluctuating grants, city resources may be substituted only after all program priorities and alternatives are considered during the budget process. Policy 6 Capital Asset Maintenance and Replacement Proper preventative maintenance, repair, renewal, and replacement are essential to protecting the city’s investment in its capital assets and ensuring the continued performance and use of these assets for the provision of services to our residents. Deferring essential maintenance or replacement can impact service delivery and increase long term costs. This policy provides guidance to ensure a system for assessing capital assets and providing adequate funding for the maintenance, repair, renewal, and replacement of capital assets. The city also maintains AR #226, which governs Capital Assets: Acquisition, Inventory and Disposal. 6.01 Maintenance and Replacement Plans. Periodic physical inventories and assessments for all types of capital assets should be conducted to determine the condition, use, repair, and replacement needs of the assets. A multi-year maintenance and replacement plan should be maintained for critical assets. 6.02 On-going Funding. The city will establish an ongoing source of funds to provide for and avoid deferral of critical capital asset maintenance, repair, renewal, and replacement needs. 6.03 Fleet and Equipment Reserves. Replacement funds or reserves for certain fleet vehicles, certain computer equipment, and other asset categories will be determined as part of the annual budget process, as deemed necessary, to ensure adequate funding for systematic replacement and operational needs. Policy 7 Cash and Investment Management The city has a fiduciary responsibility over public funds, including the on-going managing and monitoring of treasury and investment activities. This policy provides guidance and standards of care for the proper management of the city’s cash and investments. The city also maintains AR #268, which ensures a system of internal controls and governs the city’s cash collection, handling, training, and procedures program. 7.01 Investment Policy. The city shall maintain and comply with a separate written Investment Policy that has been approved by the council. The city treasurer, as chief investment officer, or his/her designee shall invest all funds of the city according to the approved Investment Policy. City funds will be managed in a prudent and diligent manner with an emphasis on safety of principal, liquidity, and financial returns on principal, in that order. The city treasurer shall provide the council with quarterly investment reports. 7.02 Management of Funds. The city will collect, deposit, invest, and disburse all funds on a schedule that insures optimum cash flow liquidity and investment of public funds. Bond funds will be segregated from all other funds for arbitrage and accounting purposes. To optimize investment performance, the city will consolidate cash balances from various funds for investment purposes. 7.03 Financial Institutions. The city will conduct its treasury and investment activities with qualified financial institution(s) that have balance sheet strength, high credit quality, and dedicated government operations that can fully serve the city’s complex treasury and investment needs. 87 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance f) Availability and sufficiency of pledged Arrangements with financial institutions will be based on written contracts. The city and financial institution(s) will adhere to state laws and city code for the proper collateralization of public deposits. 7.04 Custody of Investments. Ownership of the city’s investment securities will be protected through third party custody safekeeping. Arrangements with third party custodian services will be based on written contracts. revenues for current and future debt service; g) Debt coverage and other ratios, debt security, reserve requirements, and proposed debt covenants. 8.02 Policy 8 Debt Management The city utilizes debt to finance needed capital projects too large to fund with current resources or where the issuance of debt provides financial or economic benefits to the city’s residents and business owners. The issuance of debt obligations (bonds, notes, certificates of participation, capital leases, and other debt instruments) has a significant impact on the city’s finances and must be carefully considered and managed to ensure prudent financial management, mitigation of risks, and preservation of the city’s high bond ratings. This policy provides guidelines for the appropriate uses of debt, establishing debt management goals, ensuring compliance with federal, state, and local laws, and maintaining the city’s high bond ratings. 8.01 Evaluation for Issuance of Debt Obligations. The city treasurer shall evaluate and consider various conditions, including but not limited to the following, when analyzing, reviewing, and recommending the issuance of debt obligations: a) Appropriate use of debt; b) Financing and funding alternatives; c) Acquisition and construction cash flow projections; d) Impact on the General Fund and other operating funds; Conditions for Issuance of Debt Obligations. The issuance of all debt obligations is subject to approval by the city treasurer and council. In addition, the issuance of debt obligations is subject to but not limited to the following requirements: a) Debt financing shall not be obtained to fund operations. b) Capital projects to be financed should first be developed and approved in accordance with the capital improvement process. c) The city treasurer will seek input from the city’s external financial advisor, bond counsel and the City of Scottsdale Municipal Property Corporation (MPC)2 Board (if related to MPC debt) carefully consider the debt service structure, timing, terms, and other such matters concerning each debt issuance. d) The debt portfolio’s principal and interest payments should generally be structured to result in level debt service or to align with the useful life of the assets, unless an alternate structure is warranted. Deferral of principal is discouraged. e) The weighted average maturity of the debt issuance should generally be no greater than the reasonably expected average economic life of all the assets being financed. f) Debt proceeds will reasonably be utilized within three years, and in approved circumstances five-years, in compliance with Internal Revenue Service (IRS) regulations. g) Debt obligations must comply with all applicable federal, state, and local laws, regulations, and covenants. e) Debt burden on tax base or user fees; The MPC is a non-profit corporation created in 1967 by the city as a financing mechanism for the purpose of financing the construction or acquisition of capital improvement projects for lease to and use by the city. The MPC is governed by a board of directors consisting of citizens from the community approved by the city council. MPC bonds are secured by the city's lease payments which are in turn secured by city excise tax and other undesignated general fund revenues. These bonds may be issued without a vote of the citizens. 2 88 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance 8.03 8.04 Outside Professional Services. The city treasurer (and city attorney for bond counsel services) shall be responsible for the solicitation, selection, and securing of professional services required to assist the city in the issuance and administration of its debt obligations. The city shall use an external financial advisor on all debt issuances. The external financial advisor will have a fiduciary responsibility to the city, will have the proper experience and qualifications to advise the city, and will comply with all applicable municipal advisor rules and regulations promulgated by the Securities and Exchange Commission (SEC) and Municipal Securities Rulemaking Board (MSRB). The financial advisory relationship will be evidenced through a written contract. The solicitation and selection of outside professionals shall be done in conformance with the city’s procurement code and competitive selection process for professional service contracts. Types of Debt Obligations: General Obligation (G.O.) Bonds. a) G.O. Bonds are voter authorized debt supported by (secondary) property tax revenues. The issuance of G.O. Bonds shall be carefully considered and used only for public projects benefitting a broad public interest. b) Issuances will be managed to match debt issuance proceeds to CIP cash flow requirements. c) The city will not exceed $1.50 combined (primary and secondary) property tax rate per $100 net assessed limited property value unless otherwise directed by the council. d) Outstanding G.O. Bonds are limited by the Arizona Constitution to 20 percent of net assessed full cash property value for projects involving water, sewer, streets, transportation, public safety artificial light, parks, open space, and recreational facility improvements, and 6 percent of net assessed full cash property value for any other general municipal-purpose projects. e) The city will maintain appropriate debt service reserves as stated in Policy 2. Excise Tax/Revenue Secured Obligations. a) Non-voter authorized debt (i.e., MPC, Excise Tax Obligations, Revenue Obligations, and other non-voter authorized debt) will be used only when a dedicated non-property tax source (e.g., excise taxes and utility revenues) can be identified to pay or reimburse the General Fund for paying debt service expenses. b) Issuances will be managed to match debt issuance proceeds to CIP cash flow requirements. c) The General Fund excise tax debt service should not exceed 10 percent of the General Fund’s current or future annual operating revenue in order to control fixed costs and ensure expenditure flexibility. d) The city treasurer shall perform a five-year analysis of debt coverage and other ratios, debt security, and reserve requirements for each debt issuance. e) Careful consideration of the intended use of the financed facilities, including private activity use, must be evaluated when determining the appropriate debt structure. f) McDowell Sonoran Preserve (Preserve) debt service will be funded by the dedicated 0.35 percent privilege tax. The city will strive to maintain a dedicated debt service ratio of at least 1.5:1 for senior lien debt to ensure the city’s ability to pay for Preserve debt from this elastic revenue source. g) The city will maintain appropriate Debt Service Reserves as stated in Policy 2. Improvement District (ID) Bonds. a) IDs are a funding mechanism primarily used for existing neighborhoods desiring improvements to public infrastructure that specifically benefit the neighborhood such as street paving, improvements to sidewalks, curbs, gutters, sewers, ditches, drains, offstreet parking, street lighting, undergrounding utility facilities, etc. b) ID bonds, as authorized by state statutes for certain ID improvements, shall not have maturities longer than ten years and are 89 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance secured by a first lien on the property benefited. ID bonds will be utilized only when it is expected that the debt will be issued for their full term. c) ID debt will be permitted only when the net assessed full cash property value of the district, as reported by the Maricopa County Assessor’s Office, to debt ratio (prior to improvements being installed) is a minimum of 3:1 prior to issuance of debt and 5:1 or higher after construction of improvements. Should the net assessed full cash property value to debt ratio not meet the minimum requirements, property values may be determined by an appraisal paid for by the applicant and administered by the city. Community Facility District (CFD) Bonds. a) CFDs are special taxing districts created to provide a funding mechanism to finance construction, acquisition, operation, and maintenance of public infrastructure that benefits real property within the CFD. b) CFDs have statutory taxing and borrowing authority within the city. For that reason, council must fully understand the benefits, potential drawbacks, risks, and legal exposures, to ensure the financial protection of the city and its property owners and taxpayers, and to ensure the success of the CFD, when considering each CFD formation. The city will maintain a separate written CFD policy to establish policy directions, application, and formation procedures. c) CFDs should be considered primarily in connection with the financing and funding of major public infrastructure that conforms to council goals, the city’s general plan, infrastructure plans, or capital improvement plans. d) The city treasurer will carefully assess the proposed financing plan, financial assurances, overlapping tax and financial burden on property owners, and other factors for each proposed CFD formation. e) CFD debt will be permitted only when the net assessed full cash property value of the district, as reported by the Maricopa County Assessor’s Office, to debt ratio (prior to improvements being installed) is a minimum of 3:1 prior to issuance of debt and 5:1 or higher after construction of improvements. f) Voter approval is required for the CFD to issue G.O. bonds. g) The landowner/developer shall also contribute $0.25 in public infrastructure improvement costs for each dollar of public infrastructure improvement debt to be financed by the CFD. 8.05 Refunding Bonds. Refunding bonds are issued to retire all or a portion of an outstanding bond issue. Typically, this is done to achieve lower interest costs, reduce debt service payments, or to restructure the debt to meet the city’s goals. When making a determination on refunding bonds, the city treasurer will consider the following conditions: a) A present value analysis must be prepared to identify the economic effects of the potential refunding. b) For refunding transactions undertaken solely to achieve cost savings, the target net present value savings as a percent of par, shall be at least 3 percent of the refunded par amount, net of transaction expenses, and in excess of $1,000,000. c) Modification of restrictive covenants or existing debt structure to the benefit of the city. 8.06 Investment of Bond Proceeds. The city treasurer will direct the investment of bond proceeds in accordance with permitted investments for each bond issue and with the city’s separately written Investment Policy. Bond interest earnings will be limited to funding changes to the bond financed CIP, as approved by the city treasurer or be applied to debt service payments on the bonds issued. The investment of bond proceeds shall comply with all applicable federal, state, and indenture restrictions. 8.07 Use of Bond Proceeds. The city shall not give or loan its bond proceeds to any individual, association, or corporation unless legally authorized and approved by council. 90 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance 8.08 8.09 Lending of City’s Credit. The city shall not loan, give its credit, or guarantee loans for private developers or private party financing arrangements. Issuance and Post Issuance Compliance and Continuing Disclosure Undertakings. The city will comply with arbitrage rebate requirements of Internal Revenue Code Section 148 and related Treasury Regulations and shall maintain and comply with separately written procedures for taxexempt bonds (Written Policies Relating to Issuance and Post-Issuance Compliance Procedures for Tax-Advantaged Obligations of the City of Scottsdale, Arizona) to ensure tax-exempt bonds remain in compliance with federal tax requirements. Additionally, the city will comply with Rule 15c2-12 of the Securities and Exchange Act of 1934 adopted by the SEC for reporting significant events and shall maintain and comply with separately written procedures for continuing disclosure compliance (Continuing Disclosure Compliance Procedures Regarding the Securities and Exchange Commission Rule 15c2-12 for the City of Scottsdale, Arizona). nexus between the charges and cost of the benefits received. 9.02 Rates and Fees. The city will establish rates and fees at levels that recover the total direct and indirect costs for operating and capital requirements, including debt service and debt coverage requirements for water, wastewater, solid waste, and general aviation services. All existing enterprise rates and charges will be reviewed annually and developed pursuant to a multi-year financial plan that strives to gradually implement user rate adjustments to avoid acute fluctuations. 9.03 Enterprise Rate Stabilization. In order to ensure long-term stability of the city’s enterprise systems and rates, the city will develop its rates to include future capital needs. In conjunction with debt issuances, funds in excess of reserves and operating requirements will be used to supplement "pay as you go” capital expenditures to avoid significant and unplanned rate adjustments. 9.04 Operating Reserves. The city will maintain “Operating Reserves” in its Enterprise Funds as stated in Policy 2 to provide for emergencies, unexpected declines in revenues, and other unanticipated events. 9.05 Water and Wastewater Asset Replacement Reserve. The city will maintain a “Water and Wastewater Asset Replacement Reserve” in its Enterprise Fund as stated in Policy 2 to provide funding for the repair and maintenance of critical assets. 9.06 Debt Financing. Debt financing will be used for capital projects too large to fund with current resources and when a debt issuance is affordable and appropriate to facilitate “intergenerational equity,” wherein projects with longer lives are paid over several generations through debt service payments. The Enterprise Funds shall incorporate “pay-as-you-go” funding in the annual CIP. Pay-as-you-go funding should account for a minimum of 25 percent of the CIP, for each five-year planning period. Pay-as-you-go 91 Policy 9 Enterprise Funds The city’s Enterprise Fund operations (Water, Wastewater, Solid Waste, and Aviation) are self-supporting operations that generate revenues to fully recover the cost of service. The city invests significantly in its enterprise systems and operations to ensure safe and reliable service to our residents and businesses. This policy provides guidance for the proper management, stewardship, and safeguarding of the Enterprise Fund assets and resources and to ensure financial stability and sustainability of the city’s enterprise systems. Enterprise Funds will comply with all Policies where applicable. 9.01 Enterprise Funds. Separate funds will be established and maintained to properly account for each enterprise operation. Enterprise Funds will not be used to subsidize the operations of other non-Enterprise Funds. Interfund charges will be assessed for the administrative support of the enterprise activity based on a rational Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance 9.07 9.08 funding is defined as all sources of revenue other than city debt issuance, i.e., fund balance, dedicated revenues, contributions, grants, etc. tourism-related event support, tourism research, tourism-related capital projects and other eligible uses as determined by city ordinance and state law. Debt Coverage Ratio Target. Bond covenants may exist that require maintaining a minimum debt coverage ratio. In order to maintain the city’s high bond rating, the city will recommend rates based on a target debt coverage ratio, net revenues divided by the annual debt service, of at least 2.0 times for Water and Wastewater and 1.5 times for Aviation and Solid Waste. For financial planning purposes, the debt coverage ratios will be calculated with operating transfers and without consideration of capital related transfers and development fee revenues. As approved by council ordinance and in compliance with state law, the annual allocation of the second 50 percent of bed taxes is as follows3: a) Twelve percent for the General Fund; b) Nine percent for tourism-related events and event development; c) Four percent for tourism-related administration and research; d) Twenty-five percent, plus the lease payments on the Princess Resort, or the balance of the remaining Tourism Development Fund revenues, for tourismrelated operating expenses, capital projects and/or operating impacts that are directly associated with tourism-related capital projects, in the form of one-time commitments or multi-year annual commitments, not to exceed $600,000 per commitment unless otherwise approved by council. Enterprise Debt Service Reserves. The city treasurer may require a Debt Service Reserve for debt supported by dedicated revenues, at a minimum of 25 percent of the next fiscal year’s debt service. Policy 10 Tourism Development Fund The city assesses a 5 percent transient tax for lodging (bed tax) on businesses charging for lodging on a daily, weekly, or any other basis for less than 30 consecutive days. The purpose of this policy is to comply with state law and city elections as well as provide for the proper allocation of the transient tax for lodging in accordance with Scottsdale Ordinance No. 4534. 10.01 Deposits to the Tourism Development Fund. 100 percent of the bed tax received by the city shall be deposited into the Special Revenue Fund for Tourism Development (Tourism Development Fund). Additionally, the Tourism Development Fund shall receive 100 percent of Princess Hotel lease revenues. 10.02 Allocation of Bed Taxes. As approved by the voters, 50 percent of the bed tax revenues shall be used for destination marketing to promote tourism and 50 percent shall be divided among 10.03 Unused Funds. Subject to council approval, at the end of each fiscal year, any unused funds from the second 50 percent as referenced in 10.02 above will be available for use in following years for any of the non-marketing tourism categories (except the General Fund category) and may be allocated without limitations, except that they may not be leveraged for multi-year annual commitments, such as debt service payments. 10.04 Allocation Priority. In the event of a decrease in Tourism Development Fund revenues, debt service is the priority and will be met first. Three percent of the bed tax was grandfathered in and is not subject to the A.R.S. § 9-500.06 restrictions on the use of bed tax funds for the promotion of tourism, and thus is only restricted by city election. 3 92 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance Policy 11 Economic Development Policy 12 Risk Management The city may utilize public funds to encourage private development projects that have a direct benefit to the city, subject to state law and Scottsdale City Charter restrictions. The city strives to expand and diversify its economic base by attracting, retaining, and expanding targeted industries to the city as identified in the city’s Economic Development Strategic Plan. The purpose of this policy is to provide guidance on the use of public funds in economic development to focus on job opportunities and other community benefits that diversify and strengthen the local economy and align with the Scottsdale General Plan. Risk management has become increasingly important to guard against economic loss and ensure public safety in a time of increasing public liability and litigation. This policy outlines how risk management is an on-going process of identifying, assessing, and prioritizing of risks, followed by the application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events. 11.01 Compliance with State Law and the Scottsdale City Charter. Use of public funds in development agreements and contracts for economic development shall be applied consistent with state law and the Scottsdale City Charter and prove to have a clearly identified public purpose and direct benefit to the city. 11.02 11.03 Evaluation of Costs and Financial Impacts. Development agreements and contracts for economic development will be carefully evaluated to ensure financial and cost impacts are fully understood. Such costs and financial impacts will be forecasted and included in the operating budget, five-year financial plan, and/or the CIP. Restricted Use of Public Funds for Economic Development. The city shall not give or loan its credit in aid of, nor make any donation, grant, or payment of any public funds, by subsidy or otherwise, to any individual, association, or corporation except where there is a clearly identified public purpose and the city either receives direct consideration substantially equal to its expenditure or provides direct assistance to those in need. 12.01 Mitigation of Risks. The city shall make diligent efforts to prevent or mitigate the loss of city assets and to reduce the city's exposure to liability claims through on-going risk assessments, training, safety reviews, loss prevention, and the transfer of risk when prudent. 12.02 Self-Insurance. The city has elected to manage its exposure to risk, and third-party liability claims through self-insurance, in addition to purchasing excess workers’ compensation, property, and casualty insurance. 12.03 Risk Exposure Controls. The city will utilize additional risk control measures to further control its exposure to risk. Measures include, but are not limited to, hold harmless provisions, indemnification language, and in many cases requiring contractors or vendors to procure additional insurance to address the various exposures presented to the city by their activities. 12.04 Self-Insurance Reserves. Financial reserves shall be maintained at a level which, together with any excess insurance, will adequately protect the city’s assets and defend its elected officials, officers, and directors against financial loss. The Risk Management Department relies on an annual actuarial study to identify probable losses and is used as a basis for determining self-insurance fund balances based on historical loss data. See Policy 2 for additional information. 12.05 Annual Report. Each year, the Risk Management Department will prepare an annual report depicting a summary of the revenues and 93 Use of public funds for economic development shall be in accordance with council’s established goals and priorities and subject to council approval. Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance expenses received in relation to the workers’ compensation, property, and casualty program for the fiscal year. 12.06 12.07 Cost Allocations. Cost allocations to various funds will be based on an analysis of contributing factors, such as claims experience, reserve requirements, cost of risk management, and mitigation, etc. compliance regulations. 13.02 13.03 Financial Records. The city treasurer maintains the official financial records of the city, to include the general ledger, the city’s budget documents, debt-related documents, etc. Compliance. The city’s accounting and financial reporting systems will be maintained in conformance with all state and federal laws, General Accepted Accounting Principles (GAAP), and standards of the Governmental Accounting Standards Board (GASB). Internal Controls. A system of internal accounting controls and procedures will be maintained to provide reasonable assurance of the safeguarding of assets, the proper recording of financial transactions of the city, and laws and Monthly Financial Reports. The city treasurer shall issue timely monthly financial reports to council in accordance with the Scottsdale City Charter. 13.05 Audit. Prior to the end of the fiscal year, the council shall designate certified public accountants who shall perform an independent audit of the city’s financial statements in accordance with generally accepted governmental auditing standards. The certified public accountants shall be independent of the city government, having no personal interest, direct or indirect, in the fiscal affairs of the city government or any of its officers. The certified public accountants shall submit their reports to the council. All such audit reports shall be a matter of public record. 13.06 Annual Financial Report. The city will prepare an Annual Comprehensive Financial Report (ACFR) in accordance with the principles and guidelines established by the Government Finance Officers Association “Certificate of Achievement for Excellence in Financial Reporting” program. Staff will submit the ACFR each year for review in the award program. 13.07 Expenditure Limitation Report. The city treasurer will prepare an Annual Expenditure Limitation Report (AELR) and submit the AELR each year to the State Auditor General in accordance with A.R.S. § 41-1279.07. Accounting, auditing, and financial reporting form the foundation for financial transparency and accountability. This policy provides guidance on the city’s accounting, auditing, and reporting functions to ensure timely, accurate, and comprehensive information is provided to the council, management, residents, investors, creditors, and other interested parties. 13.01 applicable 13.04 Liability Tort Settlements and Judgments. Annually, the city shall include liability tort settlements and judgments authorized by the State of Arizona’s Property Tax Oversight Commission into the primary property tax creating a reimbursement revenue to the Risk Management Fund. Policy 13 Accounting, Auditing, and Financial Reporting with 13.08 Policy 14 Pension Funding An adequately funded pension plan not only provides assurance to employees but also achieves taxpayer and member intergenerational equity by not placing an unfair burden on future taxpayers and members. This policy provides guidance for pension funding to ensure the city maintains adequate assets to fund benefits payable in its pension plans. 94 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance 14.01 Annual Required Contributions. The city shall fund the full amount of the Annual Required Contribution (ARC) each year as determined by the actuarial valuation report for its defined benefit contribution plans. The ARC is the amount necessary to be contributed by an employer to adequately fund a public pension plan. 14.02 Funding Policy. The city shall maintain and comply with a separate written pension funding policy for its Public Safety Personnel Retirement System that is approved by the council annually in accordance with A.R.S. § 38-863.01. 14.03 Funding Status. It is the intent of the city to maintain adequate assets to fund benefits payable in its defined benefit plans. In the event the funded status falls to an unacceptable level, the city shall strive to make additional contributions above the ARC to restore the funded status to an acceptable level. 14.04 Use of Debt. Pension obligation bonds add a level of risk that should be analyzed thoroughly, and the city shall not rely on pension obligation bonds to reduce unfunded pension liabilities. 95 Table of Contents OVERVIEW | Adopted Comprehensive Financial Policies and Governing Guidance Appendix A Budget Governing Guidance The following represents budget governing guidance which provides direction for allocating city resources to fund operating or capital expenditures. The below guidance may be changed during the annual budget process to respond to council priorities or to better align resources with operating or capital needs as recommended by the city manager and city treasurer. Changes to the below guidance must be approved by the council through the budget process. 1) Funding for General Fund CIP. a) 50 percent of the unrestricted portion of construction privilege tax revenues. b) 100 percent of General Fund interest earnings. c) Any additional funding as recommended through the budget process. 2) General Fund Operating Surplus. Year-end General Fund operating surpluses not needed to restore contingency, reserves, or designations or to cover unforeseen shortfalls in the budget will be considered for one-time operating needs or transferred to the General Fund CIP in the following fiscal year’s budget development process. 3) Funding for Public Safety Accidental Disabled Retirees. A General Fund transfer will be made to the Benefits Healthcare Self-Insurance Fund to subsidize the cost of providing healthcare benefits to sworn public safety accidental disabled retirees. 4) Transportation Fund Operating Surpluses. Year-end Transportation Fund operating surpluses not needed to restore contingency or reserves or to cover unforeseen shortfalls in the budget will be considered for one-time operating needs or transferred to the Transportation Fund CIP in the following fiscal year’s budget development process. 5) Allocation of Dedicated 0.2 Percent Transportation Privilege Tax. No less than 50 percent of the dedicated 0.2 percent privilege tax revenue for transportation improvements will be allocated to the capital budget for planning, design, construction, and acquisition costs associated with building, renovating, or enhancing capital projects for streets, highways, traffic control, and transit. 96 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. 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 five Special Revenue Funds: Transportation, Tourism Development, Preservation, Stadium Facility, 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. 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 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. 97 Table of Contents FY 2024/25 Proposed Budget 98 Table of Contents Budget by Fund Total Budget Overview BUDGET BY FUND | Total Budget Overview Adopted Budget $2,294.8 Million (a) Operating Budgets $743.0M (a) Grants & Special Districts $18.8M Capital Improvement Plan $1,068.3M Contingencies / Reserves $464.7M General Fund $376.0M Grant Funds $18.2M Community Facilities $123.3M General Fund $245.3M Special Revenue Funds $71.6M Special Districts Fund $0.6M Drainage / Flood Control $16.0M Special Revenue Funds $18.0M Debt Service Fund $125.3M Preservation $5.4M Debt Service Fund $8.1M Enterprise Funds $155.5M Public Safety $88.9M Enterprise Funds $118.5M Internal Service Funds $ 14.7M(a) $ 93.9M(b) Service Facilities $133.3M Internal Service Funds $41.8M Transportation $250.3M Grant Funds $10.3M Water Management $451.1M Capital Improvement $22.8M (a) (b) Adopted Budget and Operating Budgets include Internal Service Funds offsets (reductions) of $79.2M Internal Service Funds Budget prior to Internal Service Funds offsets of $79.2M Rounding differences may occur. 99 Table of Contents BUDGET BY FUND | Total Budget Overview Fund Balance and Revenue by Fund Type The total City of Scottsdale FY 2024/25 adopted budget is funded by $2,556.5 million in revenue and fund balance. The total amount of fund balance available is $1,295.0 million, and the estimated revenue, $1,261.5 million, which includes, $323.2 million in Capital Improvement Funds, $423.9 million in General Fund, $265.3 million in Enterprise Funds and $249.1 million in other funds. A complete detail of revenues can be found on the Total Appropriation schedule. Total Budget Appropriation by Fund Type The total City of Scottsdale FY 2024/25 adopted budget appropriation is $2,294.8 million, which includes $464.7 million in contingencies/reserves. The Capital Improvement Plan and its associated contingencies/reserves account for the largest portion of the annual budget appropriation at $1,091.1million. Rounding differences may occur. 100 Table of Contents BUDGET BY FUND | Total Budget Overview Total Operating Budget Appropriation by Expense Type The total operating budget appropriation is $1,203.7 million, and includes $442.0 million in contingencies/reserves, or 37 percent of the budget. The largest expense type is Personnel Services at 29 percent or $346.1 million. *Includes Internal Service Offsets and Indirect Costs. Total Capital Improvement Plan Appropriation by Program The total Capital Improvement Plan appropriation is $1,091.1 million, and includes $22.8 million in contingencies/reserves. The largest program is Water Management at 42.2 percent or $460.1 million, followed by Transportation at 23.5 percent or $256.3 million. Rounding differences may occur. 101 102 10,646,526 89,506,158 9,812,850 15,254,103 11,001,439 1,768,285 28,988,589 19,592,095 Debt Service Fund Enterprise Funds Water & Water Reclamation Solid Waste Aviation Internal Service Funds Fleet Management PC Replacement Risk Management Healthcare Self-Insurance 1,294,968,175 637,536,828 1,261,517,428 323,235,421 28,554,535 570,133 1,149,689 2,015,000 9,474,039 218,631,155 36,808,412 9,831,636 28,615,822 55,547,708 62,261,504 23,126,564 35,519,365 2,253,152 258,883,447 165,548,396 - 194,500 14,199,704 599,100 62,517,083 10,000 - 15,814,664 Transfers In 346,077,412 - 2,215,560 - 5,984,784 1,660,450 331,070 30,112,348 11,642,814 1,772,510 - 10,688,660 5,817,265 697,716 280,089 274,874,146 Personnel Services 394,396,569 Rounding differences may occur. - 15,749,821 572,451 2,268,987 17,535,061 39,815,369 66,837,952 18,865,797 3,177,069 93,647,344 18,398,441 7,154,401 20,819,622 253,238 89,301,016 Contractual & Debt Service *Other includes Internal Service Offsets and Indirect Costs. **Total Budget Appropriation excludes Transfers Out and assumes the use of reserve and contingency appropriations. Total All Funds Capital Improvement Fund 2,318 37,522,152 136,812,488 23,115,378 15,846,168 5,745,527 Special Revenue Funds Transportation Preservation Special Programs Tourism Development Stadium Facility 423,923,293 Revenue 68,386,499 - 144,232 - 9,205,547 332,793 - 42,613,044 967,677 58,800 - 1,628,215 2,279,730 8,870 70,679 11,076,912 Commodities 89,000 - 15,126,051 1,637,100 - 410,000 63,193 - 1,704,550 434,248 339,000 1,050,000 1,162,396 464,738,393 T ot a l B udge t Appr opr i a t i on** 1,090,395,879 22,760,560 10,332,480 - 1,897,123 100,000 30,312,728 9,488,188 96,234,928 5,734,298 16,508,374 8,132,087 3,994,830 1,320,809 10,423,034 2,242,032 245,256,922 Capital Contingencies / Outlays Reserves 1,068,380,341 Uses - - - 6,128,730 23,442 - 567,909 20,541 - 78,732,846 5,577,360 3,495,577 - 34,064,310 44,184,080 8,600,769 17,244,049 660,000 59,583,834 Transfers Out 2,294,848,905 ( 69,145,847) 258,883,447 - - (29,928,423) (950,007) (18,857,984) (29,452,240) 7,395,899 2,037,592 609,316 Other* 261,636,698 29,051,014 - 7,029,150 981,192 9,078,247 1,795,724 - - 22,590,854 154,889,912 20,644,721 1,833,242 3,442,641 10,300,000 Ending Balance Grants & Special Districts Funds Grants Special Districts 251,817,269 General Fund Beginning Balance Sources Table of Contents BUDGET BY FUND | Total Budget Overview Table of Contents BUDGET BY FUND | Total Appropriation Description Be ginni ng Fund Bal ance Special General Fund Revenue Funds 251 ,81 7,269 219 ,04 1,71 4 Sales Tax 166,613,974 89,079,834 Sales Tax - Public Safety (0.10%) 16,388,552 Electric & Gas Franchise 10,281,610 Cable TV License Fee 3,328,440 Stormwater Fee 964,999 Salt River Project In Lieu 200,000 Debt Service F und Enterprise Funds Internal Service Funds Grants & Special Districts Fund 1 0,64 6,526 114 ,57 3,111 61,35 0,409 2,318 Capital Improvement Funds 63 7,536,82 8 Total 1,294,96 8,175 Revenues Taxes - L ocal 233,000 17,227,800 273,154,608 16,388,552 265,000 10,546,610 3,328,440 338,612 1,303,611 200,000 Stormwater Fee - CIP 7,896,004 Transient Occupancy Tax 31,561,346 - 7,896,004 31,561,346 State Shared Revenues State Shared Income Tax 51,842,004 51,842,004 State Shared Sales Tax 37,126,139 37,126,139 Auto Lieu Tax 12,283,924 12,283,924 Charges For Serv ice/Ot her Intergovernmental 4,353,946 3,296,693 Property Rental 5,640,969 4,466,496 Miscellaneous 1,077,095 2,711,478 Westworld Equestrian Facility Fees 6,177,020 1,233,438 - 1,820,083 Contributions & Donations 413,309 - 5,185,203 29,598,502 37,249,141 573,919 - 10,572,945 2,990,252 2,454,955 7,270,790 65,651 1,025,250 10,586,425 7,410,458 5,500 P roperty Tax Property Tax 38,384,363 28,615,822 1,200,000 68,200,185 Interest Earnings Interest Earnings 15,593,866 9,760,940 5,171,584 10,151,780 40,678,170 7,237,384 21,829,617 Other Revenue Grants - - 14,592,233 Special Districts 570,133 Property Rental 570,133 117,402 117,402 Reimbursements from Outside Sources - 1,092,561 - 1,092,561 65,000 22,250,520 Buildi ng P ermi t Fees & Ch arges Building Permit Fees & Charges 21,769,857 415,663 Recreation Fees 5,607,476 3,255,853 Fire Charges For Services 7,205,507 Business & Liquor Licenses 2,667,130 License P ermits & Fees - 8,863,329 7,205,507 50,160 2,717,290 Indi rect/Direct Cost Al locations Indirect Costs 8,786,469 Direct Cost Allocation (Fire) 440,265 818,408 9,604,877 440,265 Fi nes Fees & Forfei tures Court Fines 4,094,429 Photo Radar 2,644,511 Parking Fines 261,000 Library 42,868 Jail Dormitory 146,880 Police Fees 2,611,154 6,705,583 2,644,511 261,000 117,300 160,168 146,880 95,400 95,400 Taxes- From Other Agencies Local Transportation Assistance Fund Highway User Tax 610,000 610,000 19,344,049 19,344,049 Other Fi nancing Sources Bond Proceeds - 240,000,000 240,000,000 143,542,948 Utili ti es & Enterpri ses Water Service Charges 135,292,948 8,250,000 Non-Potable Water Service Charges 16,760,212 2,100,000 18,860,212 Water Reclamation Service Charges 55,625,122 6,150,000 61,775,122 Airport Fees 8,958,864 Refuse/Recycling 36,468,441 8,958,864 36,468,441 103 Table of Contents BUDGET BY FUND | Total Appropriation Special General Fund Revenue Funds Description Debt Service F und Enterprise Funds Internal Service Funds Grants & Special Districts Fund Capital Improvement Funds Total Internal Servi ce Charges Fleet Management 30,028,423 30,028,423 Less Internal Service Funds Offset (79,188,654) (79,188,654) Self Insurance 57,531,141 57,531,141 PC Replacement 950,007 Subt ota l 423 ,92 3,293 178 ,70 8,29 3 2 8,61 5,822 265 ,27 1,203 12,63 8,728 950,007 18,79 2,188 323 ,23 5,421 1,25 1,184 ,948 Other Activity Grant Anticipated 6,332,480 Grant Contingency 4,000,000 Subt ota l - - - - - 10,33 2,480 - 194,500 - 6,332,480 4,000,000 - 10,332 ,48 0 Transfers In From Enterprise Franchise Fees 9,995,402 From Operating 5,819,262 9,995,402 10,000 From Debt Svc GO Bonds 38,817,300 From Debt Svc MPC Bonds 23,699,783 6,023,762 38,817,300 599,100 24,298,883 From General Fund 24,267,853 24,267,853 From Special Programs Fund 620,000 620,000 From Tourism Development Fund 6,450,000 6,450,000 From Transportation Sales Tax (0.20%) Fund 31,464,310 31,464,310 From Grants Fund 23,442 23,442 From Risk Management Fund 20,541 20,541 7,227,254 From Stormwater Fee Fund 7,227,254 From Preservation Sales Tax Fund 5,366,780 5,366,780 From HURF 2,600,000 2,600,000 60,666,470 60,666,470 From Debt Service 9,610,227 9,610,227 From Water & Water Reclamation Funds From AWT 3,689,477 From RWDS 900,000 3,689,477 900,000 From Aviation Fund 2,896,477 2,896,477 From Solid Waste Fund 23,377,360 23,377,360 From Fleet Fund 567,909 Subt ota l 15,81 4,664 10,00 0 62 ,51 7,083 14,79 8,804 194 ,500 Source s Tot al 439 ,73 7,957 178 ,71 8,29 3 9 1,13 2,905 280 ,07 0,007 12,83 3,228 104 29,12 4,668 567,909 165 ,548 ,39 6 25 8,883 ,447 488 ,78 3,817 1,52 0,400 ,875 Table of Contents BUDGET BY FUND | Total Appropriation Special General Fund Revenue Funds Description Debt Service F und Enterprise Funds Internal Service Funds Grants & Special Districts Fund Capital Improvement Funds Total Expendi tures Mayor and City Council 1,228,149 City Clerk 1,457,536 City Attorney 9,016,837 City Auditor 1,420,460 City Court 6,095,604 58,806 - 1,286,955 - 28,485,629 1,457,536 19,468,792 1,420,460 2,151,916 8,247,520 City Manager 2,943,560 - Public Works 30,020,050 30,614,274 30,715,551 3,373,715 32,770,222 - 2,943,560 - 124,120,097 - 52,043,775 Community and Economic Development 26,117,112 22,552,948 Public Safety - Fire 72,897,636 844,837 101,000 73,843,473 Public Safety - Police 136,918,706 5,063,949 938,950 142,921,605 - 17,052,143 City Treasurer 13,642,181 - Community Services 52,771,541 10,384,640 Administrative Services 26,947,123 18,800 3,409,962 717,908 Water Resources 41,836,039 16,086,623 79,242,804 1,072,040 70,591,910 107,673,309 107,673,309 Citywide Indirect Cost Allocation 8,784,134 8,784,134 Department Indirect Cost 818,408 818,408 Citywide Direct Cost Allocation 440,265 Leave Accrual Payments / Parental Leave Savings from Vacant Positions Utilities Vacation Trade 440,265 4,325,738 215,446 616,205 117,027 5,274,416 (10,773,000) (368,136) (1,576,047) (306,780) (13,023,963) - - 383,550 926,833 29,515 101,776 11,912 1,070,036 383,550 Special Districts 572,451 Less Internal Service Funds Offset 572,451 (79,188,654) Subt ota l 375 ,95 6,066 71,56 6,995 - 458,404 57,729 1 55,458 ,736 14 ,70 8,558 (79,188,654) 18,77 1,064 - 636,46 1,419 Debt Servi ce Contracts Payable GO Debt Service - Non Preserve 516,133 31,101,005 31,101,005 GO Debt Service - Preserve 38,849,117 38,849,117 MPC Excise Debt 23,697,222 23,697,222 MPC Bonds Debt Service-Sewer 7,009,413 7,009,413 MPC Bonds Debt Service-Water 15,969,718 15,969,718 2,561,900 2024 Rev Bond Debt Svc-Water 2,561,900 2024 Rev Bond Debt Svc-Sewer 3,841,500 3,841,500 MPC Bonds Debt Svc - Airport 1,722,744 1,722,744 Subt ota l 458 ,40 4 57 ,729 93 ,64 7,344 31,10 5,275 - - - 125,26 8,752 Community Facilities 123,346,155 123,346,155 Drainage/Flood Control 16,011,780 16,011,780 Public Safety 88,944,493 88,944,493 Service Facilities 133,300,960 133,300,960 Transportation 250,299,592 250,299,592 Preservation 5,366,780 5,366,780 451,110,581 451,110,581 1,068,38 0,341 1,06 8,380 ,341 Capit al Water Management Subt ota l - - - - - - 105 Table of Contents BUDGET BY FUND | Total Appropriation Special General Fund Revenue Funds Description Debt Service F und Enterprise Funds Internal Service Funds Grants & Special Districts Fund Capital Improvement Funds Total Other Acti vi ty Emergency Reserve 18,820,080 18,820,080 General Plan Initiatives 15,000,000 15,000,000 Innovation Initiatives 500,000 Operating Contingency 20,000,000 4,752,843 5,246,340 6,751,851 36,751,034 Operating Reserve 75,280,320 3,241,987 35,513,297 27,812,728 141,848,332 PSPRS Pension Liabilities 115,656,522 Stadium Lifecycle 500,000 115,656,522 2,242,032 2,242,032 Grant Anticipated 6,332,480 Grant Contingency 4,000,000 Debt Service Reserve - Appropriation Contingency 1,320,809 Destination Marketing 6,423,034 6,332,480 3,558,032 9,968,300 7,558,032 9,968,300 1,320,809 6,423,034 GO Debt Service Reserve - Non Preserve 3,106,262 Debt Stabilization Reserve 5,025,825 - 3,106,262 5,025,825 General Fund Contingency 5,752,528 5,752,528 Transportation 0.2% Sales Tax Contingency 3,000,000 3,000,000 CIP Stormwater Utility Bill Fee Contingency 1,000,000 1,000,000 Water & WasteWater Asset Replacement Reserve 47,661,000 Water Drought Reserve 5,000,000 47,661,000 5,000,000 Water Rates Contingency 5,000,000 5,000,000 Sewer Rates Contingency 4,000,000 4,000,000 Fleet Replacement Reserve 3,755,000 3,755,000 Future Capital Replacement 11,333,663 11,333,663 Aviation Funds Contingency 450,000 Electric Vehicle Contingency 1,000,000 450,000 1,000,000 IBNR Reserve 2,868,895 2,868,895 Premium Stabilization Reserve 3,364,565 3,364,565 Subt ota l TOTAL B UDGET 245 ,25 6,922 17,98 0,705 8,13 2,08 7 11 8,477,60 0 4 1,798,03 9 10 ,33 2,480 22,76 0,560 46 4,73 8,393 621 ,67 1,392 89,60 5,429 101 ,77 9,431 305 ,04 1,61 1 56 ,50 6,597 29,10 3,544 1,09 1,140,90 1 2,294 ,848 ,90 5 46,401,831 Transfers Out To CIP 17,800,000 To CIP Construction Sales Tax 8,673,987 8,673,987 To CIP Excess Interest 15,593,866 15,593,866 To Debt Svc MPC Bonds 17,311,481 6,388,302 204,500 5,819,262 To Operating To CIP Technology 67,512,298 38,817,300 To CIP Stormwater 7,227,254 23,442 132,237,571 599,100 24,298,883 6,023,762 99,259 To Debt Svc GO Bonds 500,000 1,628,009 88,450 - 1,815,718 38,817,300 7,227,254 To AWT 3,689,477 3,689,477 To Debt Service Fund 4,381,497 4,381,497 To Franchise Fees 9,995,402 9,995,402 To Water & Water Reclamation Funds 6,128,730 6,128,730 Subt ota l 59,58 3,834 104 ,75 3,208 - 8 7,80 5,783 588 ,450 23 ,44 2 6,12 8,730 25 8,883,44 7 Uses Tot al 681 ,25 5,226 194 ,35 8,63 7 10 1,779 ,431 39 2,847,39 4 57 ,09 5,047 29,12 6,986 1,09 7,269,63 1 2,553 ,732 ,35 2 Source s Ove r/( Under) Use s (a) (1,033,33 1,477) (24 1,517,26 9) (15,640 ,34 4) (10,646 ,52 6) (11 2,777,38 7) (44,261 ,81 9) (2,31 8) (608,48 5,814) Endi ng Fund Ba lance (a ) 10,30 0,000 203 ,40 1,370 (0) 1,795,72 4 17 ,08 8,590 0 29,051 ,01 4 26 1,636 ,698 Endi ng Fund Ba lance (b) 255 ,55 6,922 221 ,38 2,07 5 8,13 2,087 120 ,27 3,324 58,88 6,629 10,33 2,480 51 ,811 ,57 4 72 6,375 ,091 (a) Includes use of reserve appropriations. (b) Does not include use of reserve appropriations. 106 Table of Contents BUDGET BY FUND | General Fund Overview BUDGET BY FUND | General Fund FUND PURPOSE The General Fund exists to account for the activity associated with traditional local government services such as police, fire, parks and recreation, planning and economic development, and general city administration. Under Arizona State law, each city and town must maintain a General Fund. The General Fund is the largest operating fund and includes the most diverse operations. Because its use is unrestricted, the General Fund is typically the fund of most interest and significance to citizens. General Fund Sources (% to Total) $439.7 Million General Fund Uses (% to Total) $436.0 Million Rounding differences may occur. 107 Table of Contents BUDGET BY FUND | General Fund Summary Beginning Fund Balance Emergency Reserve General Plan Initiatives Innovation Initiatives Operating Contingency Operating Reserve PSPRS Pension Liabilities Cavasson Infrastructure Reimbursement General Fund Balance Total Beginning Fund Balance 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 State Shared Revenues State Shared Income Tax State Shared Sales Tax Auto Lieu Tax Property Tax Property Tax Building Permit Fees & Charges Building Permit Fees & Charges Charges For Service/Other Westworld Equestrian Facility Fees Property Rental Intergovernmental Miscellaneous Interest Earnings Interest Earnings License Permits & Fees Fire Charges For Services Recreation Fees 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 Other Revenue Miscellaneous(a) Grants Subtotal Transfers In Enterprise Franchise Fees Operating Loan Repayment - Transfer Station Subtotal Total Sources Ac t u a l 2 0 2 2 /2 3 Adopted 2 0 2 3 /2 4 Forecast 2 0 2 3 /2 4 Adopted 2 0 2 4 /2 5 16,377,415 15,000,000 500,000 10,000,000 65,747,066 98,136,217 9,800,000 500,000 216, 060, 698 16,362,003 15,000,000 500,000 15,000,000 65,448,013 114,746,372 14,600,000 500,000 242, 156, 388 16,115,226 15,000,000 500,000 8,094,483 64,460,905 145,119,493 5,000,000 500,000 254, 790, 107 18,211,735 15,000,000 500,000 15,000,000 72,846,939 119,958,595 9,800,000 500,000 251, 817, 269 181,553,250 17,871,476 9,863,679 3,625,332 961,975 199,734 166,134,814 16,353,065 9,106,540 3,700,000 960,198 200,000 174,915,059 17,220,813 9,929,644 3,700,000 960,198 200,000 166,613,974 16,388,552 10,281,610 3,328,440 964,999 200,000 46,050,622 35,883,972 12,041,882 65,098,126 36,543,806 12,436,288 64,406,192 35,476,428 12,297,413 51,842,004 37,126,139 12,283,924 35,769,009 37,177,572 36,910,980 38,384,363 17,570,042 20,400,907 20,400,907 21,769,857 6,428,099 4,515,593 4,205,261 1,894,234 5,929,574 5,427,428 4,168,669 1,006,918 6,129,725 5,427,428 4,168,669 1,006,918 6,177,020 5,640,969 4,353,946 1,077,095 6,863,167 8,212,914 13,418,002 15,593,866 2,803,855 5,207,459 2,814,656 2,736,729 5,205,367 2,802,228 2,736,729 5,205,367 2,521,978 7,205,507 5,607,476 2,667,130 6,759,411 431,738 7,796,474 419,300 7,796,474 419,300 8,786,469 440,265 3,322,607 3,169,888 211,102 234,502 52,506 4,053,645 2,641,329 263,700 144,000 27,204 4,053,645 2,641,329 263,700 144,000 27,204 4,094,429 2,644,511 261,000 146,880 42,868 21,184,144 5,834 - - - 431, 495, 027 418, 946, 795 432, 378, 102 423, 923, 293 8,659,793 10,768,700 - 9,422,892 7,729,244 - 9,422,892 7,849,870 - 9,995,402 5,819,262 - 19, 428, 493 17, 152, 136 17, 272, 762 15, 814, 664 450, 923, 521 436, 098, 931 449, 650, 864 439, 737, 957 108 Table of Contents BUDGET BY FUND | General Fund Summary Ac t u a l 2 0 2 2 /2 3 Adopted 2 0 2 3 /2 4 Forecast 2 0 2 3 /2 4 Adopted 2 0 2 4 /2 5 905,434 7,516,681 1,193,626 1,070,204 4,837,705 1,922,839 10,133,778 22,147,678 23,181,315 47,349,671 55,454,530 122,018,214 24,157,063 - 1,112,601 8,589,399 1,313,021 1,103,865 5,655,776 2,228,807 12,585,220 25,956,820 26,455,848 50,821,650 64,767,849 144,301,971 28,329,379 6,818,554 2,813,988 (9,000,000) 1,105,014 1,076,148 8,596,086 1,310,249 1,082,153 5,559,405 1,679,250 11,519,987 24,491,450 25,508,354 48,957,087 67,065,958 139,640,573 27,295,891 - 1,228,149 9,016,837 1,420,460 1,457,536 6,095,604 2,943,560 13,642,181 26,947,123 26,117,112 52,771,541 72,897,636 136,918,706 30,020,050 4,325,738 (10,773,000) 926,833 Subtotal 321, 888, 739 374, 959, 762 363, 782, 591 375, 956, 066 415,786 452,103 452,103 458,404 Subtotal 415, 786 452, 103 452, 103 458, 404 322,304,524 375,411,865 364,234,694 376,414,470 62,317,058 8,399,236 6,863,167 12,243,461 66,665 53,659,834 6,628,103 8,212,914 12,337,084 180,038 53,659,834 8,794,050 13,418,002 12,337,084 180,038 17,800,000 8,673,987 15,593,866 17,311,481 204,500 89, 889, 587 81, 017, 973 88, 389, 008 59, 583, 834 Total Uses 412, 194, 112 456, 429, 838 452, 623, 702 435, 998, 304 Sources Over/(Under) Uses 38, 729, 409 (20, 330, 907) (2, 972, 838) 3, 739, 653 Ending Fund Balance Emergency Reserve General Plan Initiatives Innovation Initiatives Operating Contingency Operating Reserve PSPRS Pension Liabilities Cavasson Infrastructure Reimbursement General Fund Balance Total Ending Fund Balance 16,115,226 15,000,000 500,000 8,094,483 64,460,905 140,319,493 9,800,000 500,000 254, 790, 107 18,770,593 15,000,000 500,000 15,000,000 75,082,373 82,372,515 14,600,000 500,000 221, 825, 481 18,211,735 15,000,000 500,000 15,000,000 72,846,939 119,958,595 9,800,000 500,000 251, 817, 269 18,820,080 15,000,000 500,000 20,000,000 75,280,320 115,656,522 9,800,000 500,000 255, 556, 922 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 Public Safety - Fire(b)(c) Public Safety - Police(b)(d) Public Works Operating Impacts Class and Comp Study (e) Leave Accrual Payments / Parental Leave Savings from Vacant Positions Vacation Trade D eb t Ser v i c e Contracts Payable TOTAL OPERATING BUDGET Transfers Out CIP(f) CIP Construction Sales Tax CIP Excess Interest Debt Svc MPC Bonds Operating Subtotal (a) One-time proceeds from 94th Street and Bell Road land sale in FY 2022/23. Scottsdale was awarded $29.2 million of the American Rescue Plan Act (ARPA), an economic stimulus bill signed into law by the President in March 2021. Public Safety - Fire and Police payroll expenses were transferred to the ARPA Fund (grant) in FY 2021/22 ($14.6 million) and FY 2022/2023 ($14.6 million); thereby freeing up General Fund dollars. (c) Beginning in FY 2024/25 includes budget for the new Ambulance Service. Refer to the Ambulance Service schedule for details. (d) FY 2023/24 includes a $10.0 million payment to PSPRS for Public Safety - Police to pay down the unfunded liability. (e) Anticipated cost to implement the Classification and Compensation Study recommendations. (f) FY 2024/25 includes a $17.8million loan to the Solid Waste CIP Fund to support enhancements and expansion of the transfer station facility to support the implementation of the new General Plan which was approved by voters in November 2021. (b) 109 Table of Contents BUDGET BY FUND | General Fund Five-Year Financial Forecast Beginning Fund Balance Emergency Reserve General Plan Initiatives Innovation Initiatives Operating Contingency Operating Reserve PSPRS Pension Liabilities Cavasson Infrastructure Reimbursement General Fund Balance Total Beginning Fund Balance 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 State Shared Revenues State Shared Income Tax State Shared Sales Tax Auto Lieu Tax Property Tax Property Tax Building Permit Fees & Charges Building Permit Fees & Charges Charges For Service/Other Westworld Equestrian Facility Fees Property Rental Intergovernmental Miscellaneous Interest Earnings Interest Earnings License Permits & Fees Fire Charges For Services Recreation Fees 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 Other Revenue Miscellaneous Grants Subtotal Transfers In Enterprise Franchise Fees Operating Loan Repayment - Transfer Station(a) Total Sources Subtotal Adopted 2 0 2 4 /2 5 Forecast 2 0 2 5 /2 6 Forecast 2 0 2 6 /2 7 Forecast 2 0 2 7 /2 8 Forecast 2 0 2 8 /2 9 18,211,735 15,000,000 500,000 15,000,000 72,846,939 119,958,595 9,800,000 500,000 251, 817, 269 18,820,080 15,000,000 500,000 20,000,000 75,280,320 115,656,522 9,800,000 500,000 255, 556, 922 20,073,588 15,000,000 500,000 20,000,000 80,294,350 114,388,884 9,800,000 500,000 260, 556, 822 21,110,173 15,000,000 500,000 20,000,000 84,440,691 105,396,758 9,800,000 500,000 256, 747, 622 22,431,623 15,000,000 500,000 20,000,000 89,726,494 79,180,305 9,800,000 500,000 237, 138, 422 166,613,974 16,388,552 10,281,610 3,328,440 964,999 200,000 161,448,000 15,866,400 10,487,200 3,311,800 969,800 200,000 164,433,900 16,157,800 10,697,000 3,278,700 974,700 200,000 167,607,100 16,464,000 10,911,000 3,245,900 979,500 200,000 173,088,000 17,022,800 11,129,100 3,213,400 984,400 200,000 51,842,004 37,126,139 12,283,924 46,332,700 38,602,600 12,406,800 48,132,800 40,225,700 12,532,100 50,266,900 41,546,800 12,657,400 52,603,900 42,911,200 12,784,000 38,384,363 39,585,900 40,793,400 42,018,800 43,262,600 21,769,857 21,937,900 22,104,200 22,274,200 22,447,900 6,177,020 5,640,969 4,353,946 1,077,095 6,220,200 5,638,900 4,432,700 1,080,100 6,263,700 5,673,000 4,512,800 1,083,300 6,309,600 5,707,300 4,594,600 1,026,400 6,356,200 5,742,700 4,676,700 1,021,400 15,593,866 16,586,500 15,942,700 15,145,600 14,388,300 7,205,507 5,607,476 2,667,130 12,427,900 5,717,700 2,663,400 16,363,000 5,829,900 2,684,900 16,773,800 5,944,400 2,707,100 16,910,300 6,051,500 2,729,600 8,786,469 440,265 9,128,500 462,300 9,472,000 485,400 10,047,600 509,700 10,348,900 535,100 4,094,429 2,644,511 261,000 146,880 42,868 4,114,000 2,644,500 261,000 149,800 43,700 4,133,200 2,644,500 261,000 152,800 44,700 4,137,700 2,644,500 261,000 155,900 45,500 4,142,400 2,644,500 261,000 159,000 46,400 - - - - - 423, 923, 293 422, 720, 300 435, 077, 200 444, 182, 300 455, 661, 300 9,995,402 5,819,262 - 10,763,300 5,946,200 2,086,900 11,597,500 6,076,600 2,086,900 12,468,300 6,227,400 2,086,900 13,338,600 6,360,600 2,086,900 15, 814, 664 18, 796, 400 19, 761, 000 20, 782, 600 21, 786, 100 439, 737, 957 441, 516, 700 454, 838, 200 464, 964, 900 477, 447, 400 110 Table of Contents BUDGET BY FUND | General Fund Five-Year Financial Forecast Adopted 2 0 2 4 /2 5 Forecast 2 0 2 5 /2 6 Forecast 2 0 2 6 /2 7 Forecast 2 0 2 7 /2 8 Forecast 2 0 2 8 /2 9 1,228,149 9,016,837 1,420,460 1,457,536 6,095,604 2,943,560 13,642,181 26,947,123 26,117,112 52,771,541 72,897,636 136,918,706 30,020,050 4,325,738 (10,773,000) 926,833 1,271,700 9,344,600 1,489,800 1,223,100 6,473,400 3,044,600 14,186,600 27,603,100 26,843,200 54,265,400 81,051,800 145,614,800 29,848,900 2,437,700 5,234,900 (9,856,800) 926,800 1,315,800 9,659,700 1,551,600 1,570,200 6,819,600 3,137,900 14,750,100 28,590,400 29,253,500 56,300,600 88,293,200 151,291,900 30,683,200 3,750,000 4,956,100 (8,939,500) 926,800 1,401,600 10,304,900 1,658,500 1,358,400 7,283,200 3,334,000 15,461,000 30,237,000 28,560,300 59,842,700 93,410,400 161,541,400 31,819,600 3,961,300 4,702,900 (7,688,400) 926,800 1,406,300 10,268,000 1,678,500 1,672,600 7,310,800 3,346,300 15,649,300 30,359,000 28,884,500 60,459,700 94,678,400 163,180,400 32,398,500 4,265,600 4,125,700 (7,842,200) 926,800 Subtotal 375, 956, 066 401, 003, 600 423, 911, 100 448, 115, 600 452, 768, 200 458,404 481,400 505,400 530,800 557,200 Subtotal 458, 404 481, 400 505, 400 530, 800 557, 200 376,414,470 401,485,000 424,416,500 448,646,400 453,325,400 17,800,000 8,673,987 15,593,866 17,311,481 204,500 8,181,400 16,585,500 10,045,300 219,600 7,772,300 15,942,700 10,280,400 235,500 7,383,700 15,145,600 13,145,500 252,900 7,014,500 14,388,300 14,028,600 252,900 59, 583, 834 35, 031, 800 34, 230, 900 35, 927, 700 35, 684, 300 435, 998, 304 436, 516, 800 458, 647, 400 484, 574, 100 489, 009, 700 3, 739, 653 4, 999, 900 (3, 809, 200) (19, 609, 200) (11, 562, 300) 18,820,080 15,000,000 500,000 20,000,000 75,280,320 115,656,522 9,800,000 500,000 255, 556, 922 20,073,588 15,000,000 500,000 20,000,000 80,294,350 114,388,884 9,800,000 500,000 260, 556, 822 21,110,173 15,000,000 500,000 20,000,000 84,440,691 105,396,758 9,800,000 500,000 256, 747, 622 22,431,623 15,000,000 500,000 20,000,000 89,726,494 79,180,305 9,800,000 500,000 237, 138, 422 22,665,592 15,000,000 500,000 20,000,000 90,662,369 66,448,161 9,800,000 500,000 225, 576, 122 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 Public Safety - Fire(b) Public Safety - Police Public Works Operating Impacts Class and Comp Study Leave Accrual Payments / Parental Leave Savings from Vacant Positions Vacation Trade D eb t Ser v i c e Contracts Payable TOTAL OPERATING BUDGET Transfers Out CIP(c) CIP Construction Sales Tax CIP Excess Interest Debt Svc MPC Bonds Operating Subtotal Total Uses Sources Over/(Under) Uses Ending Fund Balance Emergency Reserve General Plan Initiatives Innovation Initiatives Operating Contingency Operating Reserve PSPRS Pension Liabilities Cavasson Infrastructure Reimbursement General Fund Balance Total Ending Fund Balance (a) Repayment of a $17.8 million loan to the Solid Waste CIP Fund to support enhancements and expansion of the transfer station facility. Beginning in FY 2024/25 includes budget for the new Ambulance Service. Refer to the Ambulance Service schedule for details. (c) FY 2024/25 includes a $17.8million loan to the Solid Waste CIP Fund to support enhancements and expansion of the transfer station facility to support the implementation of the new General Plan which was approved by voters in November 2021. (b) 111 Table of Contents BUDGET BY FUND | Ambulance Service CITY OF SCOTTSDALE AMBULANCE SERVICE Forecast 2023/24 Revenues Ambulance Service A d o p te d 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 - 4,850,858 10,048,200 14,957,400 15,373,300 15,714,600 - 4,850,858 10,048,200 14,957,400 15,373,300 15,714,600 - 4,850,858 10,048,200 14,957,400 15,373,300 15,714,600 1,602,700 3,844,428 1,138,489 791,990 31,599 180,000 6,507,900 2,680,800 1,932,500 2,378,100 9,449,200 3,682,100 2,575,000 2,491,100 10,019,300 3,687,200 2,324,900 - 10,373,500 3,859,800 2,383,100 - 1,602,700 5,986,506 13,499,300 18,197,400 16,031,400 16,616,400 T o ta l Us e s 1,602,700 5,986,506 13,499,300 18,197,400 16,031,400 16,616,400 Sources Over/(Under) Uses ( 1,602,700) ( 1,135,648) ( 3,451,100) ( 3,240,000) ( 658,100) ( 901,800) 499,360 956,423 1,350,742 1,378,700 1,429,010 ( 1,635,008) ( 4,407,523) ( 4,590,742) ( 2,036,800) ( 2,330,810) S ub to ta l Total Sources Expenditures Personnel Services Contractual Services Commodities Capital Outlays Vehicle Purchases (a) S ub to ta l Indirect Costs Indirect Costs Sources Over/(Under) Uses Including Indirect Costs ( 1,602,700) Note: The operating budget for the new Ambulance Service is included in the General Fund Five-Year Plan. (a) A total of 12 ambulances will be purchased in three years: FY 2023/24, FY 2025/26 and FY 2026/27. These purchases are recorded and planned for in the Capital Improvement Plan. Future excess proceeds from the ambulance transportation service will be used to payback the $6.4 million of General Fund utilized for these expenses. 112 Table of Contents BUDGET BY FUND | General Fund GENERAL FUND SOURCES General Fund Sources include revenues and transfers in from other funds such as the Special Programs, Tourism Development, and Water and Water Reclamation Funds. For FY 2024/25 estimated General Fund revenues and transfers in equal $439.7 million, an increase of approximately $3.6 million, or 0.8 percent, from the FY 2023/24 adopted budget of $436.1 million. The increase is primarily due to higher interest rates. 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. SALES TAX (1.00%) FY 2020/21 to FY 2026/27 (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. Sales Tax (1.00%) 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. The FY 2024/25 adopted budget is $166.6 million, which is approximately $0.5 million higher than the FY 2023/24 adopted budget of $166.1 million due to inflation adjustment. 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. SALES TAX - PUBLIC SAFETY (0.10%) FY 2020/21 to FY 2026/27 (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%) adopted budget for FY 2024/25 is $16.4 million, which is flat compared from the FY 2023/24 adopted budget. This designated sales tax covers 7.8 percent of the FY 2024/25 Public Safety Police and Fire General Fund budgets combined. *36)'%78 &9(+)8 %'89%0*36)'%78 113 Table of Contents BUDGET BY FUND | General Fund ELECTRIC & GAS FRANCHISE FY 2020/21 to FY 2026/27 (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 2024/25 adopted budget for Electric & Gas Franchise totals $10.3 million, which is an increase of approximately $1.2 million from the FY 2023/24 adopted budget, mostly explained by higher electric usage and rates. CABLE TV LICENSE FEE FY 2020/21 to FY 2026/27 (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 2024/25 adopted budget is $3.3 million, which is a decrease of $0.4 million from the FY 2023/24 adopted budget, mostly due to the anticipated decrease in the number of cable TV customers as a result of the growing demand for streaming services. STORMWATER FEE FY 2020/21 to FY 2026/27 (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 2024/25 adopted budget totals $1.0 million, which remains flat from the FY 2023/24 adopted budget. *36)'%78 114 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | General Fund SALT RIVER PROJECT IN LIEU FY 2020/21 to FY 2026/27 (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. The FY 2024/25 adopted budget is $0.2 million, which remains flat compared to the FY 2023/24 adopted budget. STATE SHARED INCOME TAX FY 2020/21 to FY 2026/27 (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, a portion of the state income tax collections are shared with cities and towns. Effective January 1, 2023, the percentage was increased from 15 percent to 18 percent to help offset the impacts to local governments of the State institution of a flat income tax. 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 for FY 2024/25 is budgeted at $51.8 million, a decrease of $13.3 million from the FY 2023/24 adopted budget of $65.1 million. *36)'%78 &9(+)8 %'89%0*36)'%78 115 Table of Contents BUDGET BY FUND | General Fund STATE SHARED SALES TAX FY 2020/21 to FY 2026/27 (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 percent shared and 60 percent non-shared (retained by the State). Of the shared portion, 25 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 2024/25 adopted budget is $37.1 million, which is an increase of $0.6 million compared to the FY 2023/24 adopted budget of $36.5 million, mostly due to inflation and continued strong consumer spending. AUTO LIEU TAX FY 2020/21 to FY 2026/27 (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 any municipal public purpose. The FY 2024/25 adopted budget is $12.3 million, which is a decrease of $0.1 million compared to the FY 2023/24 adopted budget. PROPERTY TAX FY 2020/21 to FY 2026/27 (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 nine percent of the total adopted FY 2024/25 General Fund sources. The FY 2024/25 adopted primary property tax rate of $0.4958 cents per $100 of assessed valuation represents a $0.0192 cents decrease from the FY 2023/24 primary property tax rate. The FY 2024/25 adopted budget is $38.4 million, an increase of $1.2 million compared to the FY 2023/24 adopted budget, due to the two percent statutory allowable increase and new construction. *36)'%78 116 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | General Fund BUILDING PERMIT FEES & CHARGES FY 2020/21 to FY 2026/27 (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 building, electrical, mechanical, and plumbing permits; and 4) the inspection of buildings/structures in the construction phase. The FY 2024/25 adopted budget is $21.8 million, which is an increase of $1.4 million from the FY 2023/24 adopted budget due to anticipated higher revenues from development projects. WESTWORLD EQUESTRIAN FACILITY FEES FY 2020/21 to FY 2026/27 (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 at WestWorld. The FY 2024/25 adopted budget is mostly based on future confirmed bookings, and it is estimated to be $6.2 million, which is an increase of approximately $0.3 million from the FY 2023/24 adopted budget, due to the increase in RV rental and feed/bedding sales. INTERGOVERNMENTAL FY 2020/21 to FY 2026/27 (in millions) Intergovernmental revenue sources include payments for School Resource Officers (SRO) from the Public Safety Division to service local area schools, a Salt River PimaMaricopa Indian Community agreement for providing crime laboratory services, and payments for Fire insurances premium credits. The FY 2024/25 adopted budgeted is $4.4 million, which is an increase of $0.2 million from the FY 2023/24 adopted budget due to labor market adjustments. *36)'%78 &9(+)8 %'89%0*36)'%78 117 Table of Contents BUDGET BY FUND | General Fund PROPERTY RENTAL FY 2020/21 to FY 2026/27 (in millions) Property Rental revenues are rental fees on facilities such as baseball fields, as well as funding received from the Tournament Players Club (TPC) for a percent of revenue on gross sales agreements. The FY 2024/25 adopted budget is estimated to be $5.6 million, which is an increase of $0.2 million from the FY 2023/24 adopted budget mostly due to aligning anticipated revenue from the TPC to prior year actuals. MISCELLANEOUS FY 2020/21 to FY 2026/27 (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 one-time Development Contribution, Recovery of Expense, Other Sale of Property, Passport Fees, Copies of Materials, etc. FY 2021/22 and FY 2022/23 represent one-time proceeds from Museum Square and 94th Street and Bell Road land sales, respectively. The FY 2024/25 adopted budget is $1.0 million which is flat compared to FY 2023/24 adopted budget. RECREATION FEES FY 2020/21 to FY 2026/27 (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 periodically and adjusted as needed to meet cost recovery targets as approved by City Council. The FY 2024/25 adopted budget of $5.6 million is $0.4 million higher than the FY 2023/24 adopted budget of $5.2 million mostly due to increased activities in community facilities and higher enrollments in community programs. *36)'%78 118 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | General Fund FIRE CHARGES FOR SERVICES FY 2020/21 to FY 2026/27 (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, and payments for ambulance emergency transportation service. In addition, the Public Safety - Fire Division collects fees for Cardiopulmonary Resuscitation (CPR) classes, permits, and incident reports. The FY 2024/25 adopted budget is $7.2 million and includes funding for the Phase 1 implementation of an ambulance transportation service that is anticipated to start operations in January 2025. Refer to the Ambulance Service schedule for more details. BUSINESS & LIQUOR LICENSES FY 2020/21 to FY 2026/27 (in millions) Business & Liquor Licenses includes the licensing of business activity and associated fees for the licensure and regulation of specific activities such as short-term rental. The FY 2024/25 adopted budget is $2.7 million, which is $0.1 million lower than the FY 2023/24 adopted budget. The decrease is primarily due to less short-term rental business licenses being renewed. INDIRECT COSTS FY 2020/21 to FY 2026/27 (in millions) Indirect Costs are payments for services provided by the General Fund to other operating areas within the city. These services include: Accounting, Human Resources, Information Technology, etc. The FY 2024/25 adopted budget for indirect cost is $8.8 million, which increased $1.0 million from the FY 2023/24 adopted budget primarily due to higher personnel costs. *36)'%78 &9(+)8 %'89%0*36)'%78 119 Table of Contents BUDGET BY FUND | General Fund DIRECT COST ALLOCATION (FIRE) FY 2020/21 to FY 2026/27 (in millions) Direct Cost Allocation (Fire) is the direct cost of fire services at the Scottsdale Airport. The FY 2024/25 adopted budget is $0.4 million, which remains flat when compared to the FY 2023/24 adopted budget. The revenue is received from the Aviation Fund. COURT FINES FY 2020/21 to FY 2026/27 (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. The FY 2024/25 adopted budget is $4.1 million, which is flat compared to the FY 2023/24 adopted budget. PHOTO RADAR FY 2020/21 to FY 2026/27 (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. The FY 2024/25 adopted budget is $2.6 million, which remains flat from the FY 2023/24 adopted budget. 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. *36)'%78 120 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | General Fund PARKING FINES FY 2020/21 to FY 2026/27 (in millions) Parking Fines are the General Fund portion of parking fees assessed per City Ordinance. The FY 2024/25 adopted budget is $0.3 million, which is flat from the FY 2023/24 adopted budget. Other portions of the fines are included in the Special Programs Fund for Court Enhancement and Judicial Collections Enhancement. JAIL DORMITORY FY 2020/21 to FY 2026/27 (in millions) The Jail Dormitory program, which allows offenders adjudicated outside of Scottsdale the opportunity to serve their sentence in the city’s jail, started operations in FY 2020/21 with a nightly fee of $250. The fee is comparable to the average of two fees set by the Maricopa County Sheriff's Office. The FY 2024/25 adopted revenue is $0.1 million which remains flat compared to the FY 2023/24 adopted budget. LIBRARY FY 2020/21 to FY 2026/27 Library fees is revenue collected from meeting room rentals at any of the four library branches and from when library materials are lost. Late fees were eliminated in FY 2020/21 and beginning in FY2022/23, the revenue related to library materials was moved to the Special Programs Fund. The library fee adopted budget for FY 2024/25 is $42,868, which will be recorded in the Special Programs Fund. *36)'%78 &9(+)8 %'89%0*36)'%78 121 Table of Contents BUDGET BY FUND | General Fund INTEREST EARNINGS FY 2020/21 to FY 2026/27 (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. The FY 2024/25 adopted budget is $15.6 million, which an increase of $7.4 million from the FY 2023/24 adopted budget. The increase of interest earnings is due to rising interest rates. Per the Budget Governing Guidance, Appendix A of the Comprehensive Financial Policies, 100 percent of net interest income is transferred to the CIP. TRANSFERS IN Transfers In is the authorized movement of cash or other resources from other funds. The FY 2024/25 General Fund adopted budget includes $15.8 million in Transfers In. TRANSFERS IN FY 2020/21 to FY 2026/27 (in millions) The FY 2024/25 adopted budget for Transfers In is $15.8 million and includes: 1) a total of $5.8 million from the Tourism Development Fund: $3.8 million to comply with Financial Policy No.10.02 which allocates 12 percent of the transient lodging/ bed tax revenues to the General Fund; $1.0 million to payback the General Fund contribution for the Scottsdale Stadium renovation phase two; $0.8 million to support city tourism venue operations in Parks and Recreation, Scottsdale Stadium, and WestWorld; and $0.2 million to support the Short-Term Rental and the Police Park Range Unit programs; and 2) $10.0 million from the Water and Water Reclamation Fund for the Enterprise Franchise Fees, which is five percent of Water Services and Water Reclamation Charges. The city charges all utility companies, including the city's Water and Water Reclamation Fund, for the use of right-of-ways and medians. GENERAL FUND USES The General Fund uses are presented by the following divisions, additional non-divisional operating categories, debt service and transfers out. The decrease in FY 2024/25 is mainly due to lower transfers out to the CIP to support diverse capital projects. *36)'%78 122 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | General Fund MAYOR AND CITY COUNCIL FY 2020/21 to FY 2026/27 (in millions) Mayor and City Council includes the voter elected mayor, six Council members and operational support staff. The FY 2024/25 adopted budget is $1.2 million, an increase of $0.1 million from the FY 2023/24 adopted budget. CITY ATTORNEY FY 2020/21 to FY 2026/27 (in millions) The City Attorney is the city’s chief legal advisor and includes Civil, Prosecution, Risk Management and Victim Services departments. The FY 2024/25 adopted budget of $9.0 million is $0.4 million greater than the FY 2023/24 adopted budget of $8.6 million, mainly due to a FY 2024/25 pay for performance, market adjustments and implementation of a classification and compensation study applied to eligible employees. CITY AUDITOR FY 2020/21 to FY 2026/27 (in millions) The City Auditor conducts audits to independently evaluate the operational efficiency and effectiveness, compliance and accountability of the city. The FY 2024/25 adopted budget is $1.4 million which is $0.1 million increase compared to the FY 2023/24 adopted budget. *36)'%78 &9(+)8 %'89%0*36)'%78 123 Table of Contents BUDGET BY FUND | General Fund CITY CLERK FY 2020/21 to FY 2026/27 (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. Elections for Mayor and Council occur in the fall of even-numbered years and the city races appear on the State's Primary and General Election ballots. Cost savings are achieved by combining city elections on state ballots. The FY 2024/25 adopted budget of $1.5 million which is $0.4 million higher than the FY 2023/24 adopted budget, includes additional funding as is an election year. Election related expenses include: advertising, Spanish translations, informational pamphlets, and intergovernmental agreements. CITY COURT FY 2020/21 to FY 2026/27 (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 $6.1 million budgeted for FY 2024/25, which is an increase of $0.4 million when compared to the FY 2023/24 adopted budget mostly due to a FY 2024/25 pay for performance, market adjustments and implementation of a classification and compensation study applied to eligible employees. *36)'%78 124 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | General Fund CITY MANAGER FY 2020/21 to FY 2026/27 (in millions) The City Manager Division provides the organizational leadership necessary to successfully implement the policy direction of the City Council, communicate that direction to the organization, ensure the efficient, effective and economical delivery of services to citizens, build relationships with other governments, and foster diversity. The FY 2024/25 adopted budget of $2.9 million, which is an increase of $0.7 million from the FY 2023/24 adopted budget, is related to a FY 2024/25 pay for performance, market adjustment and implementation of a classification and compensation study applied to eligible employees, and the transfer of the Emergency Management Department from the Public Safety Fire Division. CITY TREASURER FY 2020/21 to FY 2026/27 (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, City Treasurer and Finance, Business Services and Purchasing departments. The FY 2024/25 adopted budget of $13.6 million represents an increase of $1.0 million from the FY 2023/24 adopted budget. The increase is related to: 1) a FY 2024/25 pay for performance, market adjustment and implementation of a classification and compensation study applied to eligible employees; and 2) an increase in software operating expenses related to the implementation of an Enterprise Resources Planning system. ADMINISTRATIVE SERVICES FY 2020/21 to FY 2026/27 (in millions) Administrative Services is comprised of the Communication, Government Relations, Human Resources, and the Information Technology departments. These departments are responsible for a wide breadth of activities including the accurate and timely sharing of information; creating and maintaining effective working relationships with other governments; 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 2024/25 Administrative Services budget of $26.9 million is $1.0 million higher than the FY 2023/24 adopted budget. The increase is mostly due to the addition of 2.00 FTE to support Human Resources initiatives, and a pay for performance, market adjustment and implementation of a classification and compensation study applied to eligible employees. *36)'%78 &9(+)8 %'89%0*36)'%78 125 Table of Contents BUDGET BY FUND | General Fund COMMUNITY AND ECONOMIC DEVELOPMENT FY 2020/21 to FY 2026/27 (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 in this division include Economic Development, Planning and Development Services, and Tourism and Events. The FY 2024/25 budget is $26.1 million, which is a decrease of $0.3 million from the FY 2023/24 adopted budget primarily due to the removal of onetime funding no longer needed, which is partly offset by a pay for performance, market adjustment and implementation of a classification and compensation study applied to eligible employees. COMMUNITY SERVICES FY 2020/21 to FY 2026/27 (in millions) Community Services is comprised of six departments: Human Services, Library Systems, Parks & Recreation, Planning and Business Operations, Preserve Management and WestWorld. Each of these departments work to improve the quality of life of Scottsdale residents and visitors. The FY 2024/25 adopted budget of $52.8 million is a $2.0 million increase from the FY 2023/24 adopted budget. The increase is primarily related to the addition of 1.56 FTE, and a FY 2024/25 pay for performance, market adjustment and implementation of a classification and compensation study applied to eligible employees. PUBLIC SAFETY - FIRE FY 2020/21 to FY 2026/27 (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 2024/25 adopted budget of $72.9 million is $8.1 million higher than the FY 2023/24 adopted budget. The increase is due to: 1) the addition of a new ambulance service operated out of the Scottsdale Fire Department; 2) increased staffing for Fire Station 612 and for training purposes; 3) a FY 2024/25 pay for performance, market adjustments and implementation of a classification and compensation study applied to eligible employees; 4) higher fleet maintenance, repair, and replacement costs as a result of inflation and supply chain challenges; and 5) various contract increases. *36)'%78 126 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | General Fund PUBLIC SAFETY - POLICE FY 2020/21 to FY 2026/27 (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 the Office of the Police Chief. The FY 2024/25 adopted budget of $136.9 million is $7.4 million lower than the FY 2023/24 adopted budget of $144.3 million. The decrease is primarily related to the removal of FY 2023/24 one time funding for the paydown of Public Safety Personnel Retirement System (PSPRS) unfunded liabilities that will not be pursued in FY 2024/25; the decrease would have been larger but is partially offset by a FY 2024/25 Step Program for sworn personnel and a pay for performance, market adjustments and implementation of a classification and compensation study applied to eligible employees. PUBLIC WORKS FY 2020/21 to FY 2026/27 (in millions) Public Works includes Capital Project Management (CPM) which oversees the design and construction of capital improvement projects and the city's real estate services area, and Facilities Management which includes the repair and maintenance of just over three million square feet of cityowned facilities, as well as strategic space planning and contract administration. The FY 2024/25 adopted budget of $30.0 million is an increase of $1.7 million when compared to the FY 2023/24 adopted budget of $28.3 million. The increase is related to a FY 2024/25 pay for performance, market adjustments and implementation of a classification and compensation study applied to eligible employees. 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 2023/24 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. *36)'%78 &9(+)8 %'89%0*36)'%78 127 Table of Contents BUDGET BY FUND | General Fund FUEL AND MAINT AND REPAIR FY 2020/21 to FY 2026/27 (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 FY 2024/25 Fuel and Maint and Repair adopted budgeted is $6.5 million. OPERATING IMPACTS FY 2020/21 to FY 2026/27 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 2024/25 and years prior, operating impacts have been included at the division level. FY 2025/26 through FY 2026/27 are forecasted based on the adopted CIP Five Year Plan. UTILITIES FY 2020/21 to FY 2026/27 (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 2024/25 Utilities budget is $10.8 million which is an increase of $0.3 million when compared to the FY 2023/24 adopted budget. *36)'%78 128 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | General Fund CLASS AND COMP STUDY FY 2020/21 to FY 2026/27 (in millions) The Class and Comp Study represents the costs for implementing the recommendations from the Public Service Personnel Consultants Classification and Compensation study that was completed at the end of FY 2023/24. The implementation of the Class and Comp Study is budgeted at the division level for FY 2024/25 and future years. LEAVE ACCRUAL PAYMENTS / PARENTAL LEAVE FY 2020/21 to FY 2026/27 (in millions) Leave Accrual Payments include accumulated medical and/or vacation leave paid out at the time of retirement or separation from the city. Parental Leave allows for a four-week paid leave for new parents. The total FY 2024/25 Leave Accrual Payments / Parental Leave budget is $4.3 million, which includes $2.1 million budgeted for medical leave accrual payouts, $1.7 million budgeted for vacation accrual payouts, and $0.5 million budget for parental leave. SAVINGS FROM VACANT POSITIONS FY 2020/21 to FY 2026/27 (in millions) The amount of savings accrued from vacant positions for FY 2024/25 is estimated at ($10.8) million. The significant amount of annual vacancy savings accrued since FY 2021/22 reflect challenges in the labor market, and are the result of more resignations and retirements within the city than anticipated. *36)'%78 &9(+)8 %'89%0*36)'%78 129 Table of Contents BUDGET BY FUND | General Fund VACATION TRADE FY 2020/21 to FY 2026/27 (in millions) Through the Vacation Trade Program employees who have been employed by the city for five years or more, and have used at least 80 hours of vacation, may elect to trade up to 40 hours of vacation time for cash. The program was not offered in FY 2020/21 and in FY 2021/22. The FY 2024/25 Vacation Trade adopted budget is 0.9 million. 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. CONTRACTS PAYABLE FY 2020/21 to FY 2026/27 (in millions) Contracts Payable is primarily contractual debt related to land lease at WestWorld and Tournament Players Club (TPC) from the Bureau of Reclamation. The FY 2024/25 Contracts Payable budget is $0.5 million. *36)'%78 130 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | General Fund CIP FY 2020/21 to FY 2026/27 (in millions) Transfers Out to the Capital Improvement Plan (CIP) in FY 2024/25 is $42.1 million, which ensures compliance with the Budget Governing Guidance, Appendix A of the Comprehensive Financial Policies: $8.7 million or 50 percent of the construction sales tax, and $15.6 million or 100 percent of interest income. Transfers Out to the CIP also includes a $17.8 million loan to the Solid Waste CIP Fund to support the enhancements and expansion of the transfer station facility to be repaid at three percent. DEBT SVC MPC BONDS FY 2020/21 to FY 2026/27 (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 2024/25 a total of $17.3 million will be transferred to the Debt Service Fund for MPC bonds issued. OPERATING FY 2020/21 to FY 2026/27 (in millions) The FY 2024/25 Operating Transfers Out budget of $0.2 million is to the Healthcare Self Insurance Fund to subsidize the cost of providing disabled public safety retiree healthcare benefits, per City Council direction. Per City Council approval, FY 2020/21 includes moving 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. *36)'%78 &9(+)8 %'89%0*36)'%78 131 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: EMERGENCY RESERVE FY 2020/21 to FY 2026/27 (in millions) The Emergency Reserve was added in FY 2022/23 to incorporate best financial practices. Emergency Reserve complies with Financial Policy No. 2.02. The policy states that the General Fund will maintain five percent of operating uses, excluding transfers out as an emergency reserve to cover for unexpected emergencies and events where immediate action must be taken in the best interest of the city's residents and business owners. The FY 2024/25 General Fund Emergency Reserve is $18.8 million. GENERAL PLAN INITIATIVES FY 2020/21 to FY 2026/27 (in millions) The General Plan Initiatives fund balance designation was created in FY 2022/23 to support the implementation of the new General Plan, which was approved by voters in November 2021. The FY 2024/25 General Fund General Plan Initiatives designation is $15.0 million. *36)'%78 132 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | General Fund INNOVATION INITIATIVES FY 2020/21 to FY 2026/27 (in millions) The Innovation Initiatives reserve designation was created in FY 2022/23 to support projects that benefit the community and support organizational goals and City Council initiatives. The FY 2024/25 General Fund Innovation Initiatives designation is $0.5 million. OPERATING CONTINGENCY FY 2020/21 to FY 2026/27 (in millions) Operating Contingency for FY 2024/25 is set at $20.0 million of budget authorization in the event that unforeseen expenses occur during the fiscal year, and includes $5.0 million to cover any potential Public Safety - Fire Certificate of Necessity (CON) costs. Contingency funds are utilized only after all budget options have been considered and required City Council approval. OPERATING RESERVE FY 2020/21 to FY 2026/27 (in millions) The Operating Reserve complies with Financial Policy No. 2.01. The policy states the General Fund will maintain an operating reserve of 20 percent of General Fund operating uses, excluding transfers out, which beginning in FY 2022/23 is an increase from 10 percent to incorporate best financial practices. The Operating Reserve is to only be used for unforeseen emergencies or catastrophic impacts to the city. Maintaining a sufficient General Fund Reserve level is financially prudent. The FY 2024/25 General Fund Operating Reserve is $75.3 million. *36)'%78 &9(+)8 %'89%0*36)'%78 133 Table of Contents BUDGET BY FUND | General Fund PSPRS PENSION LIABILITIES FY 2020/21 to FY 2026/27 (in millions) Public Safety Personnel Retirement System (PSPRS) is an Arizona pension system for public safety personnel. The PSPRS Pension Liabilities designation is to address the unfunded liability and shore-up the city's portion of the pension program for public safety personnel. The FY 2024/25 PSPRS Pension Liabilities fund balance designation is $115.7 million. CAVASSON INFRASTRUCTURE REIMBURSEMENT FY 2020/21 to FY 2026/27 (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 2024/25 Cavasson Infrastructure Reimbursement fund balance designation is $9.8 million. GENERAL FUND BALANCE FY 2020/21 to FY 2026/27 (in millions) General Fund Balance accounts for any funds remaining after the designation of all other reserves/uses. The FY 2024/25 General 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. *36)'%78 134 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Special Revenue Funds Overview BUDGET BY FUND | Special Revenue Funds Overview SPECIAL REVENUE FUNDS DESCRIPTION Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Examples of restricted revenues that must be spent on specific purposes are Sales Tax - Transportation (0.20%), Sales Tax - Preservation (0.35%), Highway User Tax, Transient Occupancy Tax, and special programs such as the Police 30-Day Tow program. The sections to follow discuss each of the funds in more detail. Special Revenue Funds Sources (% to Total) $178.7 Million Special Revenue Funds Uses (% to Total) $176.4 Million Rounding differences may occur. 135 Table of Contents FY 2024/25 Proposed Budget 136 Table of Contents BUDGET BY FUND | Preservation Fund BUDGET BY FUND | Preservation Fund Overview FUND PURPOSE The Preservation Fund accounts for the portion of the city’s Sales Tax – Preservation (0.35 percent) dedicated to the purchase of about 30,500 acres of land within the McDowell Sonoran Preserve. In 1995, voters approved increasing the city’s sales tax rate by 0.20 percent for the purchase of land within the McDowell Sonoran Preserve. In May 2004, voters approved an additional 0.15 percent in the city’s sales tax rate dedicated to the McDowell Sonoran Preserve land acquisition. Differing from the 1995 tax, the 2004 tax also allows for the construction of essential preserve related necessities such as proposed trailheads. The 1995 Sales Tax – Preservation of 0.20 percent is due to sunset in 2025 and the 2004 Sales Tax – Preservation of 0.15 is due to sunset in 2034. Revenue collections and contractual debt associated with purchased land are accounted for in this fund. A Transfer Out is made to the Debt Service Fund and Capital Improvement Plan (CIP) to pay debt service payments associated with bonds issued for land purchases and capital preserve projects. Preservation Fund Sources (% to Total) $62.3 Million Preservation Fund Uses (% to Total) $44.2 Million Rounding differences may occur. 137 Table of Contents Preservation BUDGET BY FUND | Preservation Fund Summary Actual 2022/23 Adopted 2023/24 Forecast 2023/24 Adopted 2024/25 33,439,242 46,388,023 79, 827, 265 35,354,537 71,615,507 106, 970, 044 35,354,537 74,581,668 109, 936, 205 38,817,300 97,995,188 136, 812, 488 Sales Tax - Preservation (0.20%)(a) 35,742,997 32,706,126 34,441,626 32,777,105 (b) 26,807,278 24,529,589 25,831,221 24,582,829 1,739,925 2,234,571 2,234,571 Beginning Fund Balance Debt Service Reserve Restricted for Capital Total Beginning Fund Balance R e ve n u e s Sales Tax - Preservation (0.15%) Interest Earnings 64, 290, 200 Subtotal 229 - - - 64, 290, 429 59, 470, 286 62, 507, 418 62, 261, 504 2, 791, 218 - - - - - - - - - - - - 742,482 33,439,006 35,354,537 276,598 35,354,537 5,366,780 38,817,300 34, 181, 488 35, 354, 537 35, 631, 135 44, 184, 080 Total Uses 34, 181, 488 35, 354, 537 35, 631, 135 44, 184, 080 Sources Over/(Under) Uses 30, 108, 941 24, 115, 749 26, 876, 283 18, 077, 424 Tran sf ers I n CIP Total Sources 229 E x p e n di t u r e s Land and Capital Improvements Subtotal TOTAL OPERATING BUDGET T r a n s f e r s Ou t CIP Debt Svc GO Bonds(c) Subtotal 59, 470, 286 - 62, 507, 418 4,901,570 Subtotal - 62, 261, 504 - Ending Fund Balance Debt Service Reserve 35,354,537 38,849,700 38,817,300 24,670,700 Restricted for Capital 74,581,668 92,236,093 97,995,188 130,219,212 Total Ending Fund Balance 109, 936, 205 131, 085, 793 136, 812, 488 154, 889, 912 (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 June 2025. June 2025 tax returns reported in July 2025, delinquent tax returns, and audits may result in additional funds after expiration date. (b) The 2004 voter approved 0.15 percent of the city's sales tax dedicated to the purchase of land within the McDowell Sonoran Preserve and construction of essential presever related necessities will sunset earlier than originally anticipated. (c) The debt service will be paid off in 2029. 138 Table of Contents Preservation BUDGET BY FUND | Preservation Fund Five-Year Financial Forecast Adopted 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 38,817,300 97,995,188 136, 812, 488 24,670,700 130,219,212 154, 889, 912 18,798,800 64,902,112 83, 700, 912 18,659,800 72,938,912 91, 598, 712 97,064,400 3,261,012 100, 325, 412 Sales Tax - Preservation (0.20%)(a) 32,777,105 - - - - (b) 24,582,829 23,799,500 24,236,600 24,696,100 - 4,901,570 4,682,200 2,460,000 2,690,400 1,472,500 Beginning Fund Balance Debt Service Reserve Restricted for Capital Total Beginning Fund Balance R e ve n u e s Sales Tax - Preservation (0.15%) Interest Earnings Subtotal 62, 261, 504 Subtotal - - - - - 62, 261, 504 28, 481, 700 26, 696, 600 27, 386, 500 1, 472, 500 - 75,000,000 - - - - 75, 000, 000 - - - - 75,000,000 - - - 5,366,780 38,817,300 24,670,700 18,798,800 18,659,800 97,064,400 44, 184, 080 24, 670, 700 18, 798, 800 18, 659, 800 97, 064, 400 Total Uses 44, 184, 080 99, 670, 700 18, 798, 800 18, 659, 800 97, 064, 400 Sources Over/(Under) Uses 18, 077, 424 (71, 189, 000) 7, 897, 800 8, 726, 700 (95, 591, 900) Tran sf ers I n CIP Total Sources - 28, 481, 700 - 26, 696, 600 - 27, 386, 500 - 1, 472, 500 - E x p e n di t u r e s Land and Capital Improvements(c) Subtotal TOTAL OPERATING BUDGET T r a n s f e r s Ou t CIP Debt Svc GO Bonds(d) Subtotal Ending Fund Balance Debt Service Reserve 24,670,700 18,798,800 18,659,800 97,064,400 Restricted for Capital 130,219,212 64,902,112 72,938,912 3,261,012 4,733,512 Total Ending Fund Balance 154, 889, 912 83, 700, 912 91, 598, 712 100, 325, 412 4, 733, 512 (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 June 2025. June 2025 tax returns reported in July 2025, delinquent tax returns, and audits may result in additional funds after expiration date. (b) The 2004 voter approved 0.15 percent of the city's sales tax dedicated to the purchase of land within the McDowell Sonoran Preserve and construction of essential presever related necessities will sunset earlier than originally anticipated. (c) Amount and timing of expenditures are preliminary and subject to change upon proposal of capital projects to City Council's consideration and approval. As such, this amount is not included in the five-year Capital Improvement Plan. Sonoran Preserve and construction of essential presever related necessities will sunset earlier than originally anticipated. (d) The debt service will be paid off in 2029. 139 Table of Contents BUDGET BY FUND | Preservation Fund 46)7)6:%8-32*92(7396')7 8LI4VIWIVZEXMSR*YRHWSYVGIWJSV*=EVIFYHKIXIHEXQMPPMSRERMRGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIX8LIWEQIQIXLSHSPSK]JSVHIZIPSTMRKXLIWEPIWXE\JSVIGEWXMRXLI+IRIVEP*YRHMWEPWSYWIHJSVXLI4VIWIVZEXMSR *YRH 7%0)78%<46)7)6:%8-32  *=XS*= MRQMPPMSRW 7EPIW8E\4VIWIVZEXMSR  VITVIWIRXWXLIZSXIV ETTVSZIHTIVGIRXSJXLIGMX]’WWEPIWXE\HIHMGEXIHXSXLI TYVGLEWISJPERH[MXLMRXLI1G(S[IPP7SRSVER4VIWIVZISJ [LMGL[MPPWYRWIXMRXLI]IEV8LI*=EHSTXIH FYHKIXSJQMPPMSRVITVIWIRXWEWPMKLXMRGVIEWISJ QMPPMSRJVSQXLI*=EHSTXIHFYHKIX.YRIXE\ VIXYVRWVITSVXIHMR.YP]HIPMRUYIRXXE\VIXYVRWERH EYHMXWQE]VIWYPXMREHHMXMSREPJYRHWVIGIMZIHEJXIVXLI I\TMVEXMSRSJXLIXE\ 7%0)78%<46)7)6:%8-32  *=XS*= MRQMPPMSRW 7EPIW8E\4VIWIVZEXMSR  VITVIWIRXWXLIZSXIV ETTVSZIHTIVGIRXSJXLIGMX]’WWEPIWXE\HIHMGEXIHXSXLI TYVGLEWISJPERH[MXLMRXLI1G(S[IPP7SRSVER4VIWIVZITPYW GSRWXVYGXMSRSJIWWIRXMEPTVIWIVZIVIPEXIHRIGIWWMXMIWWYGLEW XVEMPLIEHW8LIWIJYRHWEVIHYIXSWYRWIXMRXLI]IEV8LI *=EHSTXIHFYHKIXSJQMPPMSRVITVIWIRXWER MRGVIEWISJQMPPMSRSZIVXLI*=EHSTXIHFYHKIX *36)'%78 140 &9(+)8 %'89%0*36)'%78 Table of Contents -28)6)78)%62-2+7 BUDGET BY FUND | Preservation Fund *=XS*= MRQMPPMSRW -RXIVIWX)EVRMRKWMWEJYRGXMSRSJXLIVIPEXMSRWLMTFIX[IIRXLI EZEMPEFPIGEWLFEPERGIERHMRXIVIWXVEXI8LIGMX]IEVRW MRXIVIWXSRJYRHWXLVSYKLZEVMSYWMRZIWXQIRXWMREGGSVHERGI [MXL%VM^SRE6IZMWIH7XEXYXIWERH'MX]3VHMRERGI8LIGMX]’W MRZIWXQIRXTSPMG]WXVIWWIWWEJIX]EFSZI]MIPH8LI*= EHSTXIHFYHKIXSJQMPPMSRERMRGVIEWISJQMPPMSR JVSQ*=EHSTXIHFYHKIXHYIXSVMWMRKMRXIVIWXVEXIW 46)7)6:%8-32*92(97)7 8LI4VIWIVZEXMSR*YRHYWIWEVITVIWIRXIHEW0ERHERH'ETMXEP-QTVSZIQIRXWXSXLI4VIWIVZIERH8VERWJIVW3YXXSSXLIVJYRHW 0%2(%2('%4-8%0-1463:)1)287 *=XS*= MRQMPPMSRW %QSYRXERHXMQMRKSJI\TIRHMXYVIWJSVTVIWIVZEXMSRVIPEXIH PERHERHGETMXEPMQTVSZIQIRXWEVITVIPMQMREV]ERHWYFNIGXXS GLERKIYTSRTVSTSWEPSJGETMXEPTVSNIGXWXS'MX]'SYRGMP W GSRWMHIVEXMSRERHETTVSZEP%WWYGLXLMWEQSYRXMWRSX MRGPYHIHMRXLIJMZI]IEV'ETMXEP-QTVSZIQIRX4PER 86%27*)67398 8VERWJIVW3YXMWXLIEYXLSVM^IHQSZIQIRXSJGEWLSVSXLIVVIWSYVGIWXSSXLIVJYRHWERHSVGETMXEPTVSNIGXW8VERWJIVW3YXMR*= MWQMPPMSR[LMGLMWERMRGVIEWISJQMPPMSRJVSQXLI*=EHSTXIHFYHKIXERHMWTVSZMHIHMRJYVXLIVHIXEMP FIPS[ *36)'%78 &9(+)8 %'89%0*36)'%78 141 Table of Contents '-4 BUDGET BY FUND | Preservation Fund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able of Contents ()&87)6:-')6)7)6:) BUDGET BY FUND | Preservation Fund *=XS*= MRQMPPMSRW 4IV*MRERGMEP4SPMG]2SXLI(IFX7IVZMGI6IWIVZIMWIUYEP XSXLIRI\XJMWGEP]IEV WHIFXWIVZMGI8LI(IFX7IVZMGI 0MEFMPMXMIWFEPERGIJSV*=MWQMPPMSR8LIWI HIWMKREXIHJYRHW[MPPFIYWIHXSTE]JYXYVIHIFXWIVZMGI TE]QIRXW 6)786-'8)(*36'%4-8%0 *=XS*= MRQMPPMSRW 6IWXVMGXIHJSV'ETMXEPEGGSYRXWJSVER]JYRHWVIQEMRMRKEJXIV XLIHIWMKREXMSRSJEPPSXLIVVIWIVZIWYWIW8LI6IWXVMGXIHJSV 'ETMXEPJSV*=MWQMPPMSR *36)'%78 &9(+)8 %'89%0*36)'%78 143 Table of Contents FY 2024/25 Proposed Budget 144 Table of Contents BUDGET BY FUND | Special Programs Fund BUDGET BY FUND | Special Programs Fund Overview 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) $23.1 Million Special Programs Fund Uses (% to Total) $24.3 Million Rounding differences may occur. 145 Table of Contents BUDGET BY FUND | Special Programs Fund Summary Actual 20 22 / 23 Ado p t e d 20 23 / 24 Forecast 20 23 / 24 Ado p t e d 20 24 / 25 1,500,000 2,784,826 8,573,441 3,371,659 4,449,149 10,800 478,433 1,937,539 127,950 2 1 ,7 3 3 , 7 9 6 1,500,000 6,685,849 1,008,878 5,620,531 11,601 476,078 2,721,253 250,547 1 6 ,7 7 4 , 7 3 7 1,500,000 6,938,105 275 3,830,747 5,662,554 11,120 802,724 2,924,488 352,818 2 0 ,5 2 2 , 8 3 1 1,500,000 5,950,353 275 5,495,435 7,085,732 12,651 808,171 3,290,941 471,820 2 3 ,1 1 5 , 3 7 8 S u b t o ta l 1,860,838 2,500 5,556,845 5,890,170 21,000 809,236 3,335,069 384,344 1 7 , 8 6 0 ,0 0 3 1,826,716 6,880,382 5,969,850 244,900 743,170 3,826,542 341,812 19, 83 3, 372 1,826,716 9,508,693 5,527,730 27,000 743,170 4,292,778 343,361 2 2 ,2 6 9 , 4 4 8 2,729,308 8,265,004 6,086,759 94,208 757,676 4,846,331 347,278 2 3 ,1 2 6 , 5 6 4 S u b t o ta l 539,607 11,833 5 5 1 ,4 4 0 63,689 6 3, 689 10,544 16,890 27, 434 10,000 10,000 18 , 4 11 , 4 43 1 9 ,8 9 7 , 0 6 1 2 2 ,2 9 6 , 8 8 2 2 3 ,1 3 6 , 5 6 4 Beginning Fund Balance Appropriation Contingency(a) Reserve - AZ CARES(b) Reserve - City Court Reserve - City Manager Reserve - Community And Economic Development Reserve - Community Services Reserve - Mayor And City Council Reserve - Public Safety - Fire Reserve - Public Safety - Police Reserve - Public Works Total Beginning Fund Balance Re v e nue s City Court City Manager Community and Economic Development Community Services Mayor and City Council Public Safety - Fire Public Safety - Police Public Works Transfers In CIP Operating 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 balances. (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 Program Fund in FY 2020/21 to ensure governmental accounting standards are being met and the funding is being used for the specific purposes directed by City Council. The remaining AZCares funding was transferred to the General Fund in FY 2022/23, where the remaining work of Scottsdale AZCares program was completed. 146 Table of Contents BUDGET BY FUND | Special Programs Fund Summary Actual 20 22 / 23 Ado p t e d 20 23 / 24 Forecast 20 23 / 24 Ado p t e d 20 24 / 25 S u b t o ta l 1,804,342 2,225 121,449 3,834,478 20,680 484,945 2,308,120 213 8 , 5 7 6 ,4 5 2 2,065,560 719,220 4,389,994 231,000 757,094 3,942,212 165,810 12, 27 0, 890 2,026,689 236,277 3,582,211 25,469 737,723 3,906,325 165,810 1 0 ,6 8 0 , 5 0 4 2,151,916 688,822 6,563,780 58,806 844,837 5,063,949 255,805 1 5 ,6 2 7 , 9 1 5 S u b t o ta l 63,339 6 3 ,3 3 9 58,549 5 8, 549 58,549 58, 549 57,729 57,729 8,639,791 12,329,439 10,739,053 15,685,644 2,481,832 5,042,761 576,755 2,881,269 1 0 , 9 8 2 ,6 1 6 1,107,779 6,054,632 766,869 53,689 7, 98 2, 969 2,136,891 6,054,632 766,869 6,890 8 ,9 6 5 , 2 8 2 620,000 7,227,254 753,515 8 ,6 0 0 , 7 6 9 Total Uses 1 9 ,6 2 2 , 4 0 8 2 0 ,3 1 2 , 4 0 8 1 9 ,7 0 4 , 3 3 5 2 4 ,2 8 6 , 4 1 3 S o u r c e s O v e r / ( Un d e r ) U s e s ( 1 ,2 1 0 , 9 6 5 ) ( 4 1 5 ,3 4 7 ) 2 ,5 9 2 ,5 4 7 (1 , 1 4 9 , 8 4 9 ) Appropriation Contingency(a) Reserve - City Court Reserve - City Manager 673,500 6,938,105 275 1,500,000 5,659,225 - 1,500,000 5,950,353 275 1,320,809 6,527,745 275 Reserve - Community And Economic Development 3,830,747 404,969 5,495,435 5,185,612 Reserve - Community Services Reserve - Mayor And City Council 5,662,554 11,120 6,853,954 25,501 7,085,732 12,651 5,923,946 48,054 Reserve - Public Safety - Fire 802,724 462,154 808,171 721,009 Reserve - Public Safety - Police Reserve - Public Works 2,924,488 352,818 2,585,584 368,000 3,290,941 471,820 3,053,325 505,564 2 0 ,5 2 2 ,8 3 1 1 6 ,3 5 9 , 3 8 7 2 3 ,1 1 5 , 3 7 8 2 1 ,9 6 5 , 5 3 0 E x p e n d i t u re s City Court City Manager Community and Economic Development Community Services Mayor and City Council Public Safety - Fire Public Safety - Police Public Works Debt Service Contracts Payable TOTAL OPERATING BUDGET Transfers Out CIP CIP Stormwater Debt Svc MPC Bonds Operating S u b t o ta l Ending Fund Balance Total Ending Fund Balance (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 balances. 147 Table of Contents BUDGET BY FUND | Special Programs Fund Five-Year Financial Forecast Ado p t e d 20 24 / 25 Forecast 20 25 / 26 Forecast 20 26 / 27 Forecast 20 27 / 28 Forecast 20 28 / 29 1,500,000 5,950,353 275 5,495,435 7,085,732 12,651 808,171 3,290,941 471,820 2 3 ,1 1 5 ,3 7 8 1,500,000 6,527,745 275 5,185,612 5,923,946 48,054 721,009 3,053,325 505,564 2 1 ,9 6 5 , 5 3 0 1,500,000 7,182,745 275 4,770,612 6,073,846 82,254 607,309 2,788,525 539,164 2 2 ,0 4 4 , 7 3 0 1,500,000 7,875,245 275 4,495,612 6,575,246 116,054 465,609 2,486,825 574,964 2 2 ,5 8 9 , 8 3 0 1,500,000 8,446,245 275 4,220,512 7,129,646 149,554 258,809 2,077,125 612,964 22 , 8 95 , 1 30 S u b t o ta l 2,729,308 8,265,004 6,086,759 94,208 757,676 4,846,331 347,278 2 3 ,1 2 6 ,5 6 4 2,745,100 8,312,000 7,267,000 93,500 772,800 4,718,100 345,000 2 4 ,2 5 3 ,5 0 0 2,753,000 8,099,600 7,368,700 93,800 788,300 4,930,600 345,000 2 4 ,3 7 9 ,0 0 0 2,748,300 8,147,500 7,457,500 94,300 804,000 5,148,100 345,000 2 4 ,7 4 4 ,7 0 0 2,744,400 8,195,800 7,555,100 94,800 820,100 5,272,900 345,000 2 5 ,0 2 8 , 1 0 0 S u b t o ta l 10,000 1 0 ,0 0 0 10,000 1 0 ,0 0 0 10,000 1 0 ,0 0 0 10,000 1 0 ,0 0 0 10,000 1 0 ,0 0 0 2 3 ,1 3 6 , 5 6 4 2 4 ,2 6 3 , 5 0 0 2 4 ,3 8 9 , 0 0 0 2 4 ,7 5 4 , 7 0 0 25 , 0 38 , 1 00 Beginning Fund Balance Appropriation Contingency(a) Reserve - AZ CARES(b) Reserve - City Court Reserve - City Manager Reserve - Community And Economic Development Reserve - Community Services Reserve - Mayor And City Council Reserve - Public Safety - Fire Reserve - Public Safety - Police Reserve - Public Works Total Beginning Fund Balance Re v e nue s City Court City Manager Community and Economic Development Community Services Mayor and City Council Public Safety - Fire Public Safety - Police Public Works Transfers In CIP Operating 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 balances. 148 Table of Contents BUDGET BY FUND | Special Programs Fund Five-Year Financial Forecast Ado p t e d 20 24 / 25 Forecast 20 25 / 26 Forecast 20 26 / 27 Forecast 20 27 / 28 Forecast 20 28 / 29 S u b t o ta l 2,151,916 688,822 6,563,780 58,806 844,837 5,063,949 255,805 1 5 ,6 2 7 ,9 1 5 2,090,100 794,000 7,022,800 59,300 886,500 4,962,900 255,800 1 6 ,0 7 1 ,4 0 0 2,060,500 394,000 6,768,700 60,000 930,000 5,212,300 255,800 1 5 ,6 8 1 ,3 0 0 2,177,300 394,100 6,815,400 60,800 1,010,800 5,537,800 255,800 1 6 ,2 5 2 ,0 0 0 2,194,000 394,100 7,306,500 61,700 1,027,800 5,740,500 255,800 1 6 ,9 8 0 , 4 0 0 S u b t o ta l 57,729 5 7 ,7 2 9 55,600 5 5 ,6 0 0 53,400 5 3 ,4 0 0 51,200 5 1 ,2 0 0 49,000 4 9 ,0 0 0 15,685,644 16,127,000 15,734,700 16,303,200 17,029,400 620,000 7,227,254 753,515 8 ,6 0 0 ,7 6 9 20,000 7,278,200 759,100 8 ,0 5 7 ,3 0 0 20,000 7,325,600 763,600 8 ,1 0 9 ,2 0 0 20,000 7,374,200 752,000 8 ,1 4 6 ,2 0 0 20,000 7,419,300 769,200 8 ,2 0 8 , 5 0 0 Total Uses 2 4 ,2 8 6 , 4 1 3 2 4 ,1 8 4 , 3 0 0 2 3 ,8 4 3 , 9 0 0 2 4 ,4 4 9 , 4 0 0 25 , 2 37 , 9 00 S o u r c e s O v e r / ( Un d e r ) U s e s ( 1 ,1 4 9 , 8 4 9 ) 7 9 ,2 0 0 5 4 5 ,1 0 0 3 0 5 ,3 0 0 ( 1 9 9 ,8 0 0 ) Appropriation Contingency(a) Reserve - City Court Reserve - City Manager 1,320,809 6,527,745 275 1,500,000 7,182,745 275 1,500,000 7,875,245 275 1,500,000 8,446,245 275 1,500,000 8,996,645 275 Reserve - Community And Economic Development 5,185,612 4,770,612 4,495,612 4,220,512 3,945,412 Reserve - Community Services Reserve - Mayor And City Council 5,923,946 48,054 6,073,846 82,254 6,575,246 116,054 7,129,646 149,554 7,276,546 182,654 E x p e n d i t u re s City Court City Manager Community and Economic Development Community Services Mayor and City Council Public Safety - Fire Public Safety - Police Public Works Debt Service Contracts Payable TOTAL OPERATING BUDGET Transfers Out CIP CIP Stormwater Debt Svc MPC Bonds Operating S u b t o ta l Ending Fund Balance Reserve - Public Safety - Fire 721,009 607,309 465,609 258,809 51,109 Reserve - Public Safety - Police Reserve - Public Works 3,053,325 505,564 2,788,525 539,164 2,486,825 574,964 2,077,125 612,964 1,589,525 653,164 2 1 , 9 6 5 ,5 3 0 2 2 , 0 4 4 ,7 3 0 2 2 , 5 8 9 ,8 3 0 2 2 , 8 9 5 ,1 3 0 22 , 6 95 , 3 30 Total Ending Fund Balance (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 balances. 149 Table of Contents BUDGET BY FUND | Special Programs Fund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’WEFMPMX]XSGSPPIGXERH QEREKIQSRMIW8LI*=FYHKIXJSVVIWXVMGXIH'MX] 'SYVXVIZIRYISJQMPPMSRMWERMRGVIEWISJQMPPMSR [LIRGSQTEVIHXSXLI*=EHSTXIHFYHKIX8LI MRGVIEWIMWQEMRP]HYIXSYTHEXIWXSXLI'SYVX WVEXIWERHJIIW WGLIHYPI *36)'%78 150 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Special Programs Fund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able of Contents BUDGET BY FUND | Special Programs Fund 49&0-'7%*)8=*-6) *=XS*= MRXLSYWERHW %PEVKITSVXMSRSJ4YFPMG7EJIX]*MVIVIZIRYIMWKIRIVEXIH JVSQXLI%>7QEVXERH7EJI%>%GXSV4VSTSWMXMSR 4VSTSWMXMSREPPS[IHXLIPIKEPM^EXMSRXE\EXMSRERH VIGVIEXMSREPYWISJGERREFMWJSVEHYPXWEKIHERHSZIVEW ETTVSZIHEXXLIKIRIVEPIPIGXMSR1SRMIWVIGIMZIHF] PSGEPPE[IRJSVGIQIRXEKIRGMIWEVII\TIGXIHXSGSZIVTIEGI SJJMGIVXVEMRMRKEGEHIQMIWERHW[SVRTIVWSRRIPGSWXW3XLIV 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able of Contents BUDGET BY FUND | Special Programs Fund '-8='3968 *=XS*= MRQMPPMSRW 'MX]'SYVXEHSTXIHFYHKIXJSV*=MWQMPPMSRERH MRGPYHIWXLIJSPPS[MRKWTIGMJMGYWIW IRLERGIQIRXWXSXLI 'SYVX’WXIGLRSPSKMGEPSTIVEXMSREPERHWIGYVMX]JEGMPMXMIWEW EPPS[IHYRHIVXLI'SYVX)RLERGIQIRX*YRH ')* IWXEFPMWLIH F]7GSXXWHEPI'MX]3VHMRERGI2SWIGXMSR  EHHMXMSREPI\TIRHMXYVIWEWEPPS[IHF].YHMGMEP'SPPIGXMSRW )RLERGIQIRX*YRH .')* ERH*MPPXLI+ET *8+ IWXEFPMWLIH F]%VM^SRE6IZMWIH7XEXYXIW %67  %  & ERH7IREXI &MPP 7& JSVXLIQEMRXIRERGIERHIRLERGIQIRXSJXLI 'SYVX’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able of Contents BUDGET BY FUND | Special Programs Fund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able of Contents BUDGET BY FUND | Special Programs Fund 49&0-'7%*)8=430-') *=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’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able of Contents BUDGET BY FUND | Special Programs Fund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able of Contents BUDGET BY FUND | Special Programs Fund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able of Contents BUDGET BY FUND | Special Programs Fund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able of Contents BUDGET BY FUND | Stadium Facility Fund BUDGET BY FUND | Stadium Facility Fund Overview FUND PURPOSE The Stadium Facility Fund is a special revenue fund created to account for activity at the Scottsdale Stadium. In June 2019, the city entered into a 25-year baseball facilities agreement with the Scottsdale Charros and the San Francisco Giants Baseball Club for the use and maintenance of the Scottsdale Stadium. This fund accounts for the contributions and uses as per the agreement. Stadium Facility Fund Sources (% to Total) $2.3 Million Stadium Facility Fund Uses (% to Total) $2.3 Million Rounding differences may occur. 161 Table of Contents BUDGET BY FUND | Stadium Facility Fund Summary A c tu a l 2 0 2 2 /2 3 Adopted 2 0 2 3 /2 4 Forecast 2 0 2 3 /2 4 Proposed 2 0 2 4 /2 5 B e g i n n i n g Fu n d B a l a n c e Stadium Lifecycle Stadium Facility Fund Balance Total Beginning Fund Balance 3,328,726 1,509,688 4, 838, 414 2,858,201 1,873,268 4, 731, 469 3,094,822 2,012,457 5, 107, 279 3,104,069 2,641,458 5, 745, 527 Revenues Charros Capital Contribution Giants Capital Contribution Giants Stadium Lifecycle Giants Stadium Maintenance Giants Stadium Operations Stadium Events 135,000 375,000 85,543 193,349 605,678 664,162 135,000 525,000 134,247 172,500 519,566 697,848 135,000 525,000 134,247 172,500 519,566 697,848 135,000 525,000 187,963 176,399 531,790 697,000 2, 058, 732 2, 184, 161 2, 184, 161 2, 253, 152 2, 058, 732 2, 184, 161 2, 184, 161 2, 253, 152 268,162 535,533 263,210 212,962 262,762 431,044 194,113 - 260,756 431,044 194,113 - 280,089 253,238 70,679 1,050,000 Subtotal 1, 279, 867 887, 919 885, 913 1, 654, 006 - 17,375 - - Subtotal - 17, 375 - - 1,279,867 905,294 885,913 1,654,006 Subtotal Total Sources E x p e n d i tu r e s Personnel Services Contractual Services Commodities Capital Outlays Debt Service Contracts Payable(a) TOTAL OPERATING BUDGET T ra n s f e rs O u t Debt Svc MPC Bonds 510,000 660,000 660,000 660,000 510, 000 660, 000 660, 000 660, 000 Total Uses 1, 789, 867 1, 565, 294 1, 545, 913 2, 314, 006 Sources Over/(Under) Uses 268, 865 618, 867 638, 248 ( 60, 854) E n d i n g Fu n d B a l a n c e Stadium Lifecycle Stadium Facility Fund Balance Total Ending Fund Balance 3,094,822 2,012,457 5, 107, 279 2,867,448 2,482,888 5, 350, 336 3,104,069 2,641,458 5, 745, 527 2,242,032 3,442,641 5, 684, 673 Subtotal (a) The payment of a 60-month lease-to-own contract for mowing equipment was recorded in this fund for FY 2023/24. The payment is recorded directly in the Debt Service Fund. 162 Table of Contents BUDGET BY FUND | Stadium Facility Fund Five-Year Financial Forecast Proposed 2 0 2 4 /2 5 Forecast 2 0 2 5 /2 6 Forecast 2 0 2 6 /2 7 Forecast 2 0 2 7 /2 8 Forecast 2 0 2 8 /2 9 B e g i n n i n g Fu n d B a l a n c e Stadium Lifecycle Stadium Facility Fund Balance Total Beginning Fund Balance 3,104,069 2,641,458 5, 745, 527 2,242,032 3,442,641 5, 684, 673 2,391,432 4,248,941 6, 640, 373 2,501,132 5,060,541 7, 561, 673 2,354,132 5,865,641 8, 219, 773 Revenues Charros Capital Contribution Giants Capital Contribution Giants Stadium Lifecycle Giants Stadium Maintenance Giants Stadium Operations Stadium Events 135,000 525,000 187,963 176,399 531,790 697,000 135,000 525,000 199,400 179,900 542,400 710,200 135,000 525,000 199,700 183,500 553,200 723,700 135,000 525,000 203,000 187,100 564,100 737,500 135,000 600,000 206,600 190,900 575,500 751,600 2, 253, 152 2, 291, 900 2, 320, 100 2, 351, 700 2, 459, 600 Total Sources 2, 253, 152 2, 291, 900 2, 320, 100 2, 351, 700 2, 459, 600 E x p e n d i tu r e s Personnel Services Contractual Services Commodities Capital Outlays 280,089 253,238 70,679 1,050,000 294,600 259,500 72,100 50,000 310,000 265,200 73,600 90,000 336,600 271,600 75,400 350,000 340,700 277,500 77,000 350,000 Subtotal 1, 654, 006 676, 200 738, 800 1, 033, 600 1, 045, 200 - - - - - Subtotal - - - - - 1,654,006 676,200 738,800 1,033,600 1,045,200 660,000 660,000 660,000 660,000 735,000 660, 000 660, 000 660, 000 660, 000 735, 000 Total Uses 2, 314, 006 1, 336, 200 1, 398, 800 1, 693, 600 1, 780, 200 Sources Over/(Under) Uses ( 60, 854) 955, 700 921, 300 658, 100 679, 400 E n d i n g Fu n d B a l a n c e Stadium Lifecycle Stadium Facility Fund Balance Total Ending Fund Balance 2,242,032 3,442,641 5, 684, 673 2,391,432 4,248,941 6, 640, 373 2,501,132 5,060,541 7, 561, 673 2,354,132 5,865,641 8, 219, 773 2,210,732 6,688,441 8, 899, 173 Subtotal Debt Service Contracts Payable TOTAL OPERATING BUDGET T ra n s f e rs O u t Debt Svc MPC Bonds Subtotal 163 Table of Contents BUDGET BY FUND | Stadium Facility Fund 78%(-91*%'-0-8=*92(7396')7 8LI7XEHMYQ*EGMPMX]*YRHWSYVGIWJSV*=EVIFYHKIXIHEXQMPPMSRERMRGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIX ',%6637'%4-8%0'3286-&98-32 *=XS*= MRQMPPMSRW 'LEVVSW'ETMXEP'SRXVMFYXMSRVITVIWIRXWXLI7GSXXWHEPI 'LEVVSWSVKERM^EXMSR WERRYEPGSRXVEGXYEPGSRXVMFYXMSRYWIH JSVHIFXWIVZMGIXSLIPTJYRHXLIWXEHMYQVILEFMPMXEXMSRERH MQTVSZIQIRXTVSNIGX4IVXLIFEWIFEPPJEGMPMXMIWEKVIIQIRXXLI 'LEVVSWWLEPPTE]ERRYEPGETMXEPGSRXVMFYXMSRWSJQMPPMSR JSV]IEVW +-%287'%4-8%0'3286-&98-32 *=XS*= MRQMPPMSRW +MERXW'ETMXEP'SRXVMFYXMSRVITVIWIRXWXLI7ER*VERGMWGS +MERXWSVKERM^EXMSR WERRYEPGSRXVEGXYEPGSRXVMFYXMSRYWIHJSV HIFXWIVZMGIXSLIPTJYRHXLIWXEHMYQVILEFMPMXEXMSRERH MQTVSZIQIRXTVSNIGX4IVXLIFEWIFEPPJEGMPMXMIWEKVIIQIRXXLI GSRXVMFYXMSRVEXI[MPPKSYTXSQMPPMSRWXEVXMRKMR*= ERHXSQMPPMSRWXEVXMRKMR*=YRXMPXLI IRHSJXLIGSRXVEGX%RMRMXMEPTE]QIRXSJQMPPMSR[EW QEHIMR*= *36)'%78 164 &9(+)8 %'89%0*36)'%78 Table of Contents +-%28778%(-910-*)'='0) BUDGET BY FUND | Stadium Facility Fund *=XS*= MRQMPPMSRW 8LI+MERXW7XEHMYQ0MJIG]GPIVIZIRYIMWYWIHJSVXLI QEMRXIRERGIERHSTIVEXMSRSJXLI7XEHMYQPMJIG]GPI MQTVSZIQIRXWERHWQEPPTVSNIGXW4IVXLITEVXMGMTEXMSR EKVIIQIRXXLI7ER*VERGMWGS+MERXW[SYPHTE]XLIGMX]E QMPPMSRERRYEPGSRXVMFYXMSRJSV]IEVW-RPMIYSJXLIERRYEP TE]QIRXXLI+MERXWTEMHERYTJVSRXPMJIG]GPIGSRXVMFYXMSRSJ QMPPMSRMR*=8LI*=FYHKIXIHVIZIRYI EQSYRXSJQMPPMSRMWXLIIWXMQEXIHMRXIVIWXVIZIRYIXLI GMX]I\TIGXWXSGSPPIGXSRXLIFEPERGISJXLIYTJVSRXPMJIG]GPI GSRXVMFYXMSR +-%28778%(-911%-28)2%2') *=XS*= MRQMPPMSRW +MERXW7XEHMYQ1EMRXIRERGIMWVIZIRYIVIGIMZIHJVSQXLI7ER *VERGMWGS+MERXWERHXLI7GSXXWHEPI'LEVVSWTIVXLIJMRERGMEP TEVXMGMTEXMSREKVIIQIRXXSFIYWIHXS[EVHWQEMRXEMRMRKXLI FEWIFEPPJEGMPMXMIWERHQMRSVJEGMPMX]MQTVSZIQIRXVIUYIWXIHF] XLIXIEQ8LITSVXMSRTEMHJSVF]XLI7ER*VERGMWGS+MERXWMW EHNYWXIHERRYEPP]FEWIHSRXLI'SRWYQIV4VMGI-RHI\8LI*= EHSTXIHFYHKIXSJQMPPMSRMWJPEX[LIRGSQTEVIH XSXLI*=EHSTXIHFYHKIX8LIEGXYEPVIZIRYIMR*= EPWSMRGPYHIWXLI*=TE]QIRXHYIXSXMQMRK SJXLIVIGIMTX +-%28778%(-9134)6%8-327 *=XS*= MRQMPPMSRW +MERXW7XEHMYQ3TIVEXMSRWMWVIZIRYIVIGIMZIHJVSQXLI7ER *VERGMWGS+MERXWERHXLI7GSXXWHEPI'LEVVSWTIVXLIJMRERGMEP TEVXMGMTEXMSREKVIIQIRXXSFIYWIHXS[EVHWSTIVEXMRKXLI FEWIFEPPJEGMPMXMIWMRGPYHMRKGPIERMRKERHYXMPMX]GSWXW8LI TSVXMSRTEMHJSVF]XLI7ER*VERGMWGS+MERXWMWEHNYWXIH ERRYEPP]FEWIHSRXLI'SRWYQIV4VMGI-RHI\8LI*= EHSTXIHFYHKIXEQSYRXMWQMPPMSR *36)'%78 &9(+)8 %'89%0*36)'%78 165 Table of Contents 78%(-91):)287 BUDGET BY FUND | Stadium Facility Fund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able of Contents '3286%'89%07)6:-')7 BUDGET BY FUND | Stadium Facility Fund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two]IEVWERHEPPPERHERHGSQTYXIV IUYMTQIRXMRGPYHIHMRXLIGMX] WGSQTSWMXIMRZIRXSV] VIKEVHPIWWSJZEPYI8LI*=EHSTXIHFYHKIXSJ QMPPMSRTVSZMHIWJYRHMRKJSVVIWIEPMRKXLIWIEXMRKFS[PEXXLI 7GSXXWHEPI7XEHMYQ *36)'%78 &9(+)8 %'89%0*36)'%78 167 Table of Contents BUDGET BY FUND | Stadium Facility Fund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able of Contents BUDGET BY FUND | Tourism Development Fund BUDGET BY FUND | Tourism Development Fund Overview FUND PURPOSE The Tourism Development Fund is a special revenue fund created to account for Transient Occupancy Tax revenues, Property Rental from Fairmont Scottsdale Princess Hotel lease payments, and other related miscellaneous revenues. All Tourism Development Fund revenues must be used for tourism related activities. Ordinance No.4330, approved by Scottsdale City Council in March 2018, identifies the authorized expenditures to be made from this fund. Tourism Development Fund Sources (% to Total) $35.5 Million Tourism Development Fund Uses (% to Total) $39.1 Million Rounding differences may occur. 169 Table of Contents Tourism BUDGET BY FUND | Tourism Development Fund Summary A c tu a l 2 0 2 2 /2 3 Adopted 2 0 2 3 /2 4 Forecast 2 0 2 3 /2 4 Adopted 2 0 2 4 /2 5 B e g i n n i n g Fu n d B a l a n c e Destination Marketing Operating Contingency Tourism Development Fund Balance Total Beginning Fund Balance 5,645,782 2,500,000 7,925,170 16, 070, 952 6,859,883 2,500,000 9,194,526 18, 554, 409 7,276,338 2,500,000 11,538,505 21, 314, 843 6,026,858 4,000,000 5,819,310 15, 846, 168 Revenues Transient Occupancy Tax Property Rental Interest Earnings Miscellaneous 36,492,379 3,543,920 310,378 45,251 31,448,488 3,066,671 504,510 25,000 34,120,374 3,508,481 504,510 25,000 31,561,346 3,245,605 687,414 25,000 Subtotal 40, 391, 928 35, 044, 669 38, 158, 365 35, 519, 365 - T ra n s f e rs I n CIP(a) Operating(b) Subtotal Total Sources - - 1,737,042 533,038 - - - 533, 038 - 1, 737, 042 - 40, 924, 966 35, 044, 669 39, 895, 407 35, 519, 365 16,096,285 14,151,820 15,354,168 14,202,606 E x p e n d i tu r e s Destination Marketing - 45%(c) Destination Marketing - 5% 87,134 1,372,424 1,572,424 1,372,424 16, 183, 419 15, 524, 244 16, 926, 592 15, 575, 030 750,000 2,583,580 1,652,979 975,326 - 750,000 2,830,364 1,673,675 1,233,631 18,205 750,000 2,830,364 1,673,675 1,238,509 - 750,000 2,840,521 1,439,000 1,259,575 - - 1,058 5,046 1,058 - 1,082 - (c) Subtotal Canal Convergence Events Event Retention and Development Other Commitments Administration and Research Class and Comp Study (d) Leave Accrual Payments / Parental Leave Vacation Trade Subtotal TOTAL OPERATING BUDGET T ra n s f e rs O u t CIP Debt Svc MPC Bonds Operating(b) Operating - 12% to General Fund Subtotal 22, 145, 305 22, 036, 223 23, 420, 198 21, 865, 208 22,145,305 22,036,223 23,420,198 21,865,208 5,114,781 4,041,904 8,703,120 4,984,034 3,889,565 9,175,840 4,984,034 3,689,565 6,450,000 4,974,787 2,031,900 4,379,085 3,773,819 4,094,445 3,787,362 13, 535, 770 21, 350, 538 21, 943, 884 17, 244, 049 Total Uses 35, 681, 075 43, 386, 761 45, 364, 082 39, 109, 257 Sources Over/(Under) Uses 5, 243, 891 ( 8, 342, 092) ( 5, 468, 675) ( 3, 589, 892) E n d i n g Fu n d B a l a n c e Destination Marketing Operating Contingency Tourism Development Fund Balance Total Ending Fund Balance 7,276,338 1,300,000 12,738,505 21, 314, 843 6,976,808 2,500,000 735,509 10, 212, 317 7,526,858 1,993,280 6,326,030 15, 846, 168 6,423,034 4,000,000 1,833,242 12, 256, 276 (a) In FY 2022/23, savings from the WestWorld Tent Refurbishment capital project were transferred back to the original funding source. An inter-funds transfer was processed in FY 2022/23 to correct the allocation of bed tax collections to ensure it is recorded per Financial Policy No.10. (c) See Destination Marketing schedule for more detail. (d) Anticipated cost to implement the Classification and Compensation Study recommendations. (b) 170 Table of Contents Tourism BUDGET BY FUND | Tourism Development Fund Five-Year Financial Forecast Adopted 2 0 2 4 /2 5 Forecast 2 0 2 5 /2 6 Forecast 2 0 2 6 /2 7 Forecast 2 0 2 7 /2 8 B e g i n n i n g Fu n d B a l a n c e Destination Marketing Operating Contingency Tourism Development Fund Balance Total Beginning Fund Balance 6,026,858 4,000,000 5,819,310 15, 846, 168 6,423,034 4,000,000 1,833,242 12, 256, 276 6,623,734 4,000,000 4,822,642 15, 446, 376 6,821,234 4,000,000 8,301,442 19, 122, 676 7,024,934 4,000,000 12,059,842 23, 084, 776 Revenues Transient Occupancy Tax Property Rental Interest Earnings Miscellaneous 31,561,346 3,245,605 687,414 25,000 32,508,200 3,343,000 725,700 25,000 33,483,400 3,443,300 717,900 25,000 34,488,000 3,546,600 698,100 25,000 35,522,600 3,653,000 676,800 25,000 Subtotal Forecast 2 0 2 8 /2 9 35, 519, 365 36, 601, 900 37, 669, 600 38, 757, 700 39, 877, 400 T ra n s f e rs I n CIP - - - - - Operating - - - - - - - - - - 35, 519, 365 36, 601, 900 37, 669, 600 38, 757, 700 39, 877, 400 14,202,606 14,628,700 15,067,500 15,519,600 15,985,200 Subtotal Total Sources E x p e n d i tu r e s Destination Marketing - 45%(a) Destination Marketing - 5% (a) Subtotal Canal Convergence Events Event Retention and Development Other Commitments Administration and Research Class and Comp Study Leave Accrual Payments / Parental Leave Vacation Trade Subtotal TOTAL OPERATING BUDGET T ra n s f e rs O u t CIP Debt Svc MPC Bonds Operating Operating - 12% to General Fund 1,625,400 1,674,200 1,724,400 1,776,100 16, 254, 100 16, 741, 700 17, 244, 000 17, 761, 300 750,000 2,840,521 1,439,000 1,259,575 - 750,000 2,925,700 1,100,000 1,299,300 - 750,000 3,013,500 1,100,000 1,338,200 - 750,000 3,103,900 1,100,000 1,378,300 - 750,000 3,197,000 1,100,000 1,419,700 - 1,082 - 1,100 - 1,100 - 1,200 - 1,200 - 21, 865, 208 22, 330, 200 22, 944, 500 23, 577, 400 24, 229, 200 21,865,208 22,330,200 22,944,500 23,577,400 24,229,200 6,450,000 4,974,787 2,031,900 150,000 4,985,400 2,045,216 4,972,200 2,058,592 4,990,800 2,088,840 4,933,200 2,097,888 3,787,362 3,900,984 4,018,008 4,138,560 4,262,712 17, 244, 049 11, 081, 600 11, 048, 800 11, 218, 200 11, 293, 800 Total Uses 39, 109, 257 33, 411, 800 33, 993, 300 34, 795, 600 35, 523, 000 Sources Over/(Under) Uses ( 3, 589, 892) 3, 190, 100 3, 676, 300 3, 962, 100 4, 354, 400 E n d i n g Fu n d B a l a n c e Destination Marketing Operating Contingency Tourism Development Fund Balance Total Ending Fund Balance 6,423,034 4,000,000 1,833,242 12, 256, 276 6,623,734 4,000,000 4,822,642 15, 446, 376 6,821,234 4,000,000 8,301,442 19, 122, 676 7,024,934 4,000,000 12,059,842 23, 084, 776 7,232,034 4,000,000 16,207,142 27, 439, 176 (a) Subtotal 1,372,424 15, 575, 030 See Destination Marketing schedule for more detail. 171 Table of Contents BUDGET BY FUND | Destination Marketing CITY OF SCOTTSDALE DESTINATION MARKETING Actual 2022/23 Beginning Fund Balance Destination Marketing Adopted 2023/24 F o re c a s t 2023/24 Adopted 2024/25 F o re c a s t 2025/26 F o re c a s t 2026/27 F o re c a s t 2027/28 F o re c a s t 2028/29 Operating Contingency Total Beginning Fund Balance 5,645,782 - 6,859,883 - 7,276,338 - 6,026,858 1,500,000 6,423,034 1,500,000 6,623,734 1,500,000 6,821,234 1,500,000 7,024,934 1,500,000 5, 645, 782 6, 859, 883 7, 276, 338 7, 526, 858 7, 923, 034 8, 123, 734 8, 321, 234 8, 524, 934 Revenues Transient Occupancy Tax Interest Earnings Miscellaneous 18,246,189 83,690 17,134 15,724,244 116,925 - 17,060,187 116,925 - 15,780,673 190,533 - 16,254,100 200,700 - 16,741,700 197,500 - 17,244,000 203,700 - 17,761,300 207,100 - (a) Subtotal Total Sources Expenditures Dest. Marketing - 45% Dest. Marketing - 5% Destination Marketing(b) Choose Scottsdale Marketing Scottsdale Stadium Marketing Tourism-match Event Adver Fund Westworld Marketing Dest. Marketing - 5% TOTAL OPERATING BUDGET 18, 347, 013 15, 841, 169 17, 177, 112 15, 971, 206 16, 454, 800 16, 939, 200 17, 447, 700 17, 968, 400 18, 347, 013 15, 841, 169 17, 177, 112 15, 971, 206 16, 454, 800 16, 939, 200 17, 447, 700 17, 968, 400 16,096,285 14,151,820 15,354,168 14,202,606 14,628,700 15,067,500 15,519,600 15,985,200 87,134 1,372,424 1,572,424 1,087,424 1,340,400 1,389,200 1,439,400 1,491,100 87, 134 1, 372, 424 1, 572, 424 50,000 50,000 110,000 75,000 1, 372, 424 50,000 50,000 110,000 75,000 1, 625, 400 50,000 50,000 110,000 75,000 1, 674, 200 50,000 50,000 110,000 75,000 1, 724, 400 50,000 50,000 110,000 75,000 1, 776, 100 16,183,419 15,524,244 16,926,592 15,575,030 16,254,100 16,741,700 17,244,000 17,761,300 Transfers Out 533,038 200,000 - - - - - - 533, 038 200, 000 - - - - - - T o t a l U se s 16, 716, 457 15, 724, 244 16, 926, 592 15, 575, 030 16, 254, 100 16, 741, 700 17, 244, 000 17, 761, 300 Sources Over/(Under) Uses 1, 630, 556 116, 925 250, 520 396, 176 200, 700 197, 500 203, 700 207, 100 Operating(c) Subtotal Ending Fund Balance Destination Marketing 7,276,338 6,976,808 7,526,858 6,423,034 6,623,734 6,821,234 7,024,934 7,232,034 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Operating Contingency(a) Total Ending Fund Balance 7, 276, 338 6, 976, 808 7, 526, 858 7, 923, 034 8, 123, 734 8, 321, 234 8, 524, 934 8, 732, 034 (a) A $1.5 million Operating Contingency was established in FY 2024/25 to provide budget authorization in the event of unforeseen expenses occurring during the year. (b) Unallocated in-house destination marketing expense appropriation. The use of this funding will be discussed with the Tourism Development Commission. (c) An inter-funds transfer was processed in FY 2022/23 to correct the allocation of bed tax collections to ensure it is recorded appropriately per Financial Policy No.10. The adopted budget in FY 2023/24 to the General Fund for destination marketing purposes did not happen. Instead, the expenses were recoded directly in this fund for transparency purposes. 172 Table of Contents BUDGET BY FUND | Tourism Development Fund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able of Contents BUDGET BY FUND | Tourism Development Fund -28)6)78)%62-2+7 *=XS*= MRQMPPMSRW -RXIVIWX)EVRMRKWEVIKIRIVEXIHSRMHPI8SYVMWQ(IZIPSTQIRX *YRHGEWLFEPERGIWXLVSYKLSYXXLI]IEV8LMWVIZIRYIMWE JYRGXMSRSJXLIVIPEXMSRWLMTFIX[IIRXLIGMX]’WEZEMPEFPIGEWL FEPERGIERHXLIMRXIVIWXVEXI8LIGMX]IEVRWMRXIVIWXSRJYRHW XLVSYKLZEVMSYWMRZIWXQIRXZILMGPIWMREGGSVHERGI[MXL %VM^SRE6IZMWIH7XEXYXIWERH'MX]3VHMRERGI8LIGMX]’W MRZIWXQIRXTSPMG]WXVIWWIWWEJIX]EFSZI]MIPH-RXIVIWX IEVRMRKWETTPMGEFPIXSFSRHTVSGIIHWERHXLI'ETMXEP -QTVSZIQIRX4PER '-4 EGGVYIXSXLI'-4FYHKIXERHEVIRSX MRGPYHIHMR8SYVMWQ(IZIPSTQIRX*YRHVIZIRYIW-RXIVIWX )EVRMRKWVIZIRYIMWFYHKIXIHEXQMPPMSRMR*= 1-7')00%2)397 *=XS*= 1MWGIPPERISYWMRGPYHIWEHHMXMSREPWSYVGIWXLEXQE]FI GSPPIGXIHERHEVIRSXEXXVMFYXEFPIXSSRISJXLIWTIGMJMG WSYVGIWTVIZMSYWP]RSXIH&IKMRRMRKMR*=EWIVMIWSJ QMGVSIZIRXWEVISJJIVIHJSV7GSXXWHE^^PI8LI*= 1MWGIPPERISYWFYHKIXMWWIXEX 86%27*)67-2 8VERWJIVW-RMWXLIEYXLSVM^IHQSZIQIRXSJGEWLSVSXLIVVIWSYVGIWJVSQSXLIVJYRHWERHSVGETMXEPTVSNIGXW *36)'%78 174 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Tourism Development Fund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able of Contents BUDGET BY FUND | Tourism Development Fund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able of Contents BUDGET BY FUND | Tourism Development Fund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’ FYHKIXERHEGXYEPWXLEXEVIHMWTPE]IHMRXLIKVETLWEVIJSV GSQTEVMWSRTYVTSWIWSRP]EWXLII\TIRHMXYVIWEVIEGXYEPP]VIGSVHIHERHVITSVXIHEWTEVXSJXLIETTPMGEFPIHMZMWMSR’WYWIW1SWX RSRHMZMWMSREPYWIWEVIMRMXMEPP]TPEGIHMRXSXLIHMZMWMSRWMRWXIEHSJEXEQEGVSPIZIPXLIRQSZMRKXLIFYHKIXXSEQEGVSPIZIPLSPHMRK EGGSYRXEXXLIFIKMRRMRKSJXLIJMWGEP]IEVERHGSQTPIXMRKFYHKIXXVERWJIVWXSQSZIXLIRIIHIHFYHKIXFEGOXSXLIETTPMGEFPI HMZMWMSRWEWI\TIRHMXYVIWSGGYV *36)'%78 &9(+)8 %'89%0*36)'%78 177 Table of Contents BUDGET BY FUND | Tourism Development Fund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able of Contents BUDGET BY FUND | Tourism Development Fund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able of Contents BUDGET BY FUND | Tourism Development Fund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’WJMRERGMEPGSRHMXMSRERHTVSZMHIWJSVYRI\TIGXIHIGSRSQMGGLEPPIRKIW8LIWTIGMJMGQEOIYTSJXLI 8SYVMWQ(IZIPSTQIRX*YRHIRHMRKFEPERGIMWRSXIHFIPS[ *36)'%78 180 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Tourism Development Fund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able of Contents FY 2024/25 Proposed Budget 182 Table of Contents BUDGET BY FUND | Transportation Fund BUDGET BY FUND | Transportation Fund Overview FUND PURPOSE The State of Arizona requires the city to establish and maintain an accounting for Highway User Tax revenue. The Transportation Fund receives and expends the city’s allocation of the Arizona Highway User Tax which is allocated based on the official U.S. Census Bureau population estimate, as directed by Statute. These monies must be used for street construction, reconstruction, or maintenance. The fund also accounts for other transportation related revenues as well as for the 1989 voter approved Sales Tax - Transportation of 0.20 percent, which is dedicated funding for transportation improvements and operations. Note: Beginning October 2019, the 2018 voter approved Sales Tax – Transportation of 0.10 percent of the city’s sales tax dedicated solely to the Arterial Life Cycle Program transportation capital project is being recorded directly in the Capital Improvement Plan versus a Transfer Out to CIP from the Transportation Fund. Transportation Fund Sources (% to Total) $55.5 Million Transportation Fund Uses (% to Total) $66.5 Million Rounding differences may occur. 183 Table of Contents BUDGET BY FUND | Transportation Fund Summary Actual 2022/23 Beginning Fund Balance Operating Contingency Operating Reserve Transportation Fund Balance Total Beginning Fund Balance R e ve nue s Sales Tax - Transportation (0.20%) Highway User Tax (a) Interest Earnings Local Transportation Assistance Fund Intergovernmental Miscellaneous Property Rental Subtotal Total Sources Ex p e n d i t u r e s Public Works City Treasurer(b) Community Services Administrative Services Class and Comp Study (c) Fuel and Maint and Repair (d) Leave Accrual Payments / Parental Leave Operating Impacts Post Employment Medical Savings from Vacant Positions Utilities (d) Vacation Trade Subtotal TOTAL OPERATING BUDGET Transfers Out CIP CIP Technology Subtotal Ad op te d 2023/24 Forecast 2023/24 Ad op te d 2024/25 500,000 2,239,936 34,496,851 3 7 ,2 3 6 ,7 8 7 500,000 2,890,691 37,722,292 4 1 ,1 1 2 ,9 8 3 500,000 2,902,913 44,111,277 4 7 ,5 1 4 ,1 9 0 1,000,000 3,230,530 33,291,622 3 7 ,5 2 2 ,1 5 2 34,604,608 18,110,950 1,454,877 30,932,799 18,848,335 1,522,193 33,319,181 18,643,354 2,786,681 31,719,900 19,344,049 3,747,159 610,192 248,234 193,673 10,266 610,000 87,800 21,200 5,844 610,000 87,800 21,200 5,844 610,000 89,556 31,200 5,844 55,232,800 52,028,171 55,474,060 55,547,708 5 5 ,2 3 2 ,8 0 0 5 2 ,0 2 8 ,1 7 1 5 5 ,4 7 4 ,0 6 0 5 5 ,5 4 7 ,7 0 8 22,472,588 70,284 29,894,026 - 27,264,695 - 30,358,469 - 2,157,726 18,800 - 2,255,183 18,800 248,635 2,255,976 18,800 - 2,166,854 18,800 - - - 1,174,054 - - 209,626 (360,000) - 138,696 22,360 753,483 214,364 (368,136) - - 39,025 - 29,515 24,719,398 32,305,295 31,628,064 32,419,866 24,719,398 32,305,295 31,628,064 32,419,866 20,152,304 83,696 33,566,400 271,634 33,566,400 271,634 33,965,051 99,259 20,236,000 33,838,034 33,838,034 34,064,310 Total Uses 4 4 ,9 5 5 ,3 9 8 6 6 ,1 4 3 ,3 2 9 6 5 ,4 6 6 ,0 9 8 6 6 ,4 8 4 ,1 7 6 S o u r c e s O v e r / ( Un d e r ) U s e s 1 0 ,2 7 7 ,4 0 2 (1 4 ,1 1 5 ,1 5 8 ) (9 ,9 9 2 ,0 3 8 ) (1 0 ,9 3 6 ,4 6 8 ) Ending Fund Balance Operating Contingency 250,000 500,000 500,000 752,843 Operating Reserve 2,902,913 3,230,530 3,230,530 3,241,987 Transportation Fund Balance 44,361,277 23,267,295 33,791,622 22,590,854 Total Ending Fund Balance 4 7 ,5 1 4 ,1 9 0 2 6 ,9 9 7 ,8 2 5 3 7 ,5 2 2 ,1 5 2 2 6 ,5 8 5 ,6 8 4 (a) Increase in Interest Earnings is due to rising interest rates. (b) Starting in FY 2023/24, the City Treasurer Division no longer expenses staff salary to the Transportation Fund. (c) Anticipated cost to implement the Classification and Compensation Study recommendations. (d) Budget adopted at the division level. At the start of the fiscal year the budget moves to a non-divisional account and then is transferred back to the divisions monthly as expenses occur. 184 Table of Contents BUDGET BY FUND | Transportation Fund Five-Year Financial Forecast Beginning Fund Balance Operating Contingency Operating Reserve Transportation Fund Balance Total Beginning Fund Balance R e ve nue s Sales Tax - Transportation (0.20%) Highway User Tax Interest Earnings Local Transportation Assistance Fund Intergovernmental Miscellaneous Property Rental Subtotal Ad op te d 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 1,000,000 3,230,530 33,291,622 3 7 ,5 2 2 ,1 5 2 1,000,000 3,241,987 22,343,697 2 6 ,5 8 5 ,6 8 4 1,000,000 3,372,210 20,104,174 2 4 ,4 7 6 ,3 8 4 1,000,000 3,507,770 8,809,714 1 3 ,3 1 7 ,4 8 4 1,000,000 3,675,300 1,908,684 6 ,5 8 3 ,9 8 4 31,719,900 19,344,049 3,747,159 30,691,200 20,059,800 3,589,800 31,250,800 20,260,400 3,293,400 31,839,300 20,463,000 3,128,700 32,914,100 20,667,600 2,972,300 610,000 89,556 31,200 5,844 610,000 91,300 31,200 5,800 610,000 93,200 26,200 - 610,000 95,000 1,200 - 610,000 96,900 1,200 - Forecast 2028/29 55,547,708 55,079,100 55,534,000 56,137,200 57,262,100 Total Sources 5 5 ,5 4 7 ,7 0 8 5 5 ,0 7 9 ,1 0 0 5 5 ,5 3 4 ,0 0 0 5 6 ,1 3 7 ,2 0 0 5 7 ,2 6 2 ,1 0 0 Ex p e n d i t u r e s Public Works City Treasurer 30,358,469 - 31,470,600 - 32,559,400 - 34,136,700 - 34,889,000 - Community Services Administrative Services Class and Comp Study 2,166,854 18,800 - 2,231,700 19,700 - 2,066,500 20,700 - 2,123,500 21,800 - 2,170,600 22,900 - Fuel and Maint and Repair Leave Accrual Payments / Parental Leave Operating Impacts Post Employment Medical Savings from Vacant Positions Utilities Vacation Trade Subtotal TOTAL OPERATING BUDGET Transfers Out CIP CIP Technology Subtotal - - - - - 214,364 (368,136) - 219,400 127,800 (376,600) - 224,100 562,400 (384,900) - 229,000 606,000 (393,400) - 234,200 606,000 (402,400) - 29,515 29,500 29,500 29,500 29,500 32,419,866 33,722,100 35,077,700 36,753,100 37,549,800 32,419,866 33,722,100 35,077,700 36,753,100 37,549,800 33,965,051 99,259 23,409,500 56,800 31,527,900 87,300 26,009,700 107,900 21,215,300 232,000 34,064,310 23,466,300 31,615,200 26,117,600 21,447,300 Total Uses 6 6 ,4 8 4 ,1 7 6 5 7 ,1 8 8 ,4 0 0 6 6 ,6 9 2 ,9 0 0 6 2 ,8 7 0 ,7 0 0 5 8 ,9 9 7 ,1 0 0 S o u r c e s O v e r / ( Un d e r ) U s e s (1 0 ,9 3 6 ,4 6 8 ) (2 ,1 0 9 ,3 0 0 ) (1 1 ,1 5 8 ,9 0 0 ) (6 ,7 3 3 ,5 0 0 ) (1 ,7 3 5 ,0 0 0 ) Ending Fund Balance Operating Contingency Operating Reserve Transportation Fund Balance Total Ending Fund Balance 752,843 3,241,987 22,590,854 2 6 ,5 8 5 ,6 8 4 1,000,000 3,372,210 20,104,174 2 4 ,4 7 6 ,3 8 4 1,000,000 3,507,770 8,809,714 1 3 ,3 1 7 ,4 8 4 1,000,000 3,675,300 1,908,684 6 ,5 8 3 ,9 8 4 1,000,000 3,754,970 94,014 4 ,8 4 8 ,9 8 4 185 Table of Contents BUDGET BY FUND | Transportation Fund 86%274368%8-32*92(7396')7 8VERWTSVXEXMSR*YRHWSYVGIWJSV*=IUYEPQMPPMSR[LMGLMWERMRGVIEWISJQMPPMSRJVSQXLI*=EHSTXIH FYHKIXTVMQEVMP]VIPEXIHXSWXVSRKGSRWYQIVHIQERHERHWTIRHMRKVIJPIGXIHQSWXP]MR7EPIW8E\8VERWTSVXEXMSR  VIZIRYIEW [IPPEWMRGVIEWIHMRXIVIWXVEXIW8LIWEQIQIXLSHSPSK]JSVHIZIPSTMRKXLI7EPIW8E\FYHKIXIHMRXLI+IRIVEP*YRHMWEPWSYWIHJSV XLI8VERWTSVXEXMSR*YRH 7%0)78%<86%274368%8-32  *=XS*= MRQMPPMSRW 7EPIW8E\8VERWTSVXEXMSR  VITVIWIRXWXLITIVGIRX SJXLIGMX]’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able of Contents -28)6)78)%62-2+7 BUDGET BY FUND | Transportation Fund *=XS*= MRQMPPMSRW -RXIVIWX)EVRMRKWEVIKIRIVEXIHSRMHPI+IRIVEP*YRHGEWL FEPERGIWXLVSYKLSYXXLI]IEV8LMWVIZIRYIMWEJYRGXMSRSJXLI VIPEXMSRWLMTFIX[IIRXLIGMX]’WEZEMPEFPIGEWLFEPERGIERHXLI MRXIVIWXVEXI8LIGMX]IEVRWMRXIVIWXSRJYRHWXLVSYKLZEVMSYW MRZIWXQIRXZILMGPIWMREGGSVHERGI[MXL%VM^SRE6IZMWIH 7XEXYXIWERH'MX]3VHMRERGI8LIGMX]’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’WEPPSGEXMSRSJXLILEPJ GIRXWEPIWXE\JSVXVERWTSVXEXMSRMQTVSZIQIRXWETTVSZIHMR 4VSTSWMXMSRF]1EVMGSTE'SYRX]ZSXIVWMR2SZIQFIV 8LMWVIZIRYIXLVSYKLXLI8VERWTSVXEXMSR*YRHJYRHWXLI %QIVMGER W[MXL(MWEFMPMXMIW%GX %(% 'EF'SRRIGXMSR6MHIW TVSKVEQ[LMGLEHHVIWWIWXLIXVERWTSVXEXMSRRIIHWSJTISTPI [MXLHMWEFMPMXMIW[MXLMRXLIGMX]8LI*=FYHKIXMW QMPPMSR[LMGLMWJPEX[LIRGSQTEVIHXSXLI*= EHSTXIHFYHKIX *36)'%78 &9(+)8 %'89%0*36)'%78 187 Table of Contents BUDGET BY FUND | Transportation Fund 1-7')00%2)397 *=XS*= 1MWGIPPERISYWMRGPYHIWZEVMSYWVIZIRYIWXLIGMX]VIGIMZIWMR XLI8VERWTSVXEXMSR*YRHHYVMRKER]KMZIR]IEVXLEXEVIRSX EXXVMFYXEFPIXSSRISJXLIWTIGMJMGVIZIRYIGEXIKSVMIW TVIZMSYWP]RSXIH8LI*=FYHKIXSJ VITVIWIRXWEWPMKLXMRGVIEWIJVSQXLI*=EHSTXIH FYHKIX 4634)68=6)28%0 *=XS*= 4VSTIVX]6IRXEPVITVIWIRXWVIZIRYIVIGIMZIHJVSQE XVERWTSVXEXMSRWIVZMGIWFYWMRIWWYWISJSJJMGIWTEGIEXXLI 7SYXL'SVTSVEXMSR=EVH8LIEHSTXIH*=FYHKIXJSV 4VSTIVX]6IRXEPMW 86%274368%8-32*92(97)7 8LI8VERWTSVXEXMSR*YRHYWIWJSV*=MWQMPPMSRERHVITVIWIRXWI\TIRWIWF]HMZMWMSREHHMXMSREPRSRHMZMWMSREP STIVEXMRKGEXIKSVMIWERHXVERWJIVWSYXXSXLI'-4 *36)'%78 188 &9(+)8 %'89%0*36)'%78 Table of Contents 49&0-';36/7 BUDGET BY FUND | Transportation Fund *=XS*= MRQMPPMSRW 8LII\TIRHMXYVIWJSV4YFPMG;SVOWMRGPYHIEPPI]QEMRXIRERGI WXVIIXWGPIERMRKPMKLXMRKQEMRXIRERGIERHXVEJJMGWMKREP QEMRXIRERGI8LIEHSTXIH*=4YFPMG;SVOWFYHKIXSJ QMPPMSRMWERMRGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIXSJQMPPMSR8LIMRGVIEWIMW QEMRP]HYIXSXLILMKLIVERXMGMTEXIHGSWXWEGVSWWEPP GSQQSHMXMIWHYIXSKPSFEPGSRHMXMSRWWYTTP]GLEMR GLEPPIRKIWERHXLI*=TE]JSVTIVJSVQERGIQEVOIX EHNYWXQIRXERHMQTPIQIRXEXMSRSJEGPEWWMJMGEXMSRERH GSQTIRWEXMSRWXYH]ETTPMIHJSVIPMKMFPIIQTPS]IIW '-8=86)%796)6 *=XS*= 8LMWFYHKIX[EWYWIHXSTEVXMEPP]JYRHE7V&YHKIX%REP]WX TSWMXMSR[MXLMRXLI'MX]8VIEWYVIV(MZMWMSR8LITSWMXMSRMW TVMQEVMP]HIHMGEXIHXSWYTTSVXMRKXLIGSQTPI\STIVEXMRKERH GETMXEPJMRERGMEPRIIHW[MXLMRXLI8VERWTSVXEXMSR*YRH8LI*= EHSTXIHFYHKIXMWEWXLMWTSWMXMSRLEWFIGSQI JYPP]JYRHIHF]XLI+IRIVEP*YRH '31192-8=7)6:-')7 *=XS*= MRQMPPMSRW 'SQQYRMX]7IVZMGIWVITVIWIRXWXLIGSRXVEGXIHPERHWGETMRKSJ medians and right-of-ways. The FY 2024/25 adopted budget of QMPPMSRVITVIWIRXWEHIGVIEWISJQMPPMSR[LIR GSQTEVIHXSXLI*=EHSTXIHFYHKIX8LIHIGVIEWIMW GEYWIHF]XLIVIQSZEPSJSRIXMQIJYRHMRKJSVMVVMKEXMSR VITPEGIQIRXRI[KVERMXIERHVIZIKIXEXMSREPSRK7GSXXWHEPI 6SEHXLEX[EWETTVSZIHJSV*=FYXMWRSXRIGIWWEV] MR*= *36)'%78 &9(+)8 %'89%0*36)'%78 189 Table of Contents BUDGET BY FUND | Transportation Fund %(1-2-786%8-:)7)6:-')7 *=XS*= %HQMRMWXVEXMZI7IVZMGIWMRGPYHIWWSJX[EVIWYTTSVXIHF]XLI 8VERWTSVXEXMSR*YRH[LMGLMWEHQMRMWXIVIHF]XLI-RJSVQEXMSR 8IGLRSPSK] -8 (ITEVXQIRX8LI*=EHSTXIHFYHKIX MW 232(-:-7-32%097)7 2SR(MZMWMSREP9WIWEVIMXIQWXLEX[IVIFYHKIXIHMRGMX][MHIQEGVSPIZIPLSPHMRKEGGSYRXW%WI\TIRHMXYVIWSGGYVMRXLIETTPMGEFPI HMZMWMSRWFYHKIXXVERWJIVWEVIGSQTPIXIHXSQSZIXLIRIIHIHFYHKIXJVSQXLIQEGVSPIZIPLSPHMRKEGGSYRXWXSXLIVIWTIGXMZI HMZMWMSRW8LIVIJSVIXLI*=]IEVIRHJSVIGEWXERHTVMSV]IEVW’ FYHKIXERHEGXYEPWXLEXEVIHMWTPE]IHMRXLIKVETLWEVIJSV GSQTEVMWSRTYVTSWIWSRP]EWXLII\TIRHMXYVIWEVIEGXYEPP]VIGSVHIHERHVITSVXIHEWTEVXSJXLIETTPMGEFPIHMZMWMSR’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able of Contents *9)0%2(1%-28%2(6)4%-6 BUDGET BY FUND | Transportation Fund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able of Contents 7%:-2+7*631:%'%28437-8-327 BUDGET BY FUND | Transportation Fund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able of Contents BUDGET BY FUND | Transportation Fund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’WJMRERGMEPGSRHMXMSRERHTVSZMHIJSVYRI\TIGXIHIGSRSQMGGLEPPIRKIW 8LIWTIGMJMGQEOIYTSJXLIGMX]’W8VERWTSVXEXMSR*YRH)RHMRK&EPERGIMWRSXIHMRXLIJSPPS[MRK *36)'%78 &9(+)8 %'89%0*36)'%78 193 Table of Contents 34)6%8-2+'328-2+)2'= BUDGET BY FUND | Transportation Fund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able of Contents BUDGET BY FUND | Debt Service Fund FUND PURPOSE The Debt Service Fund accounts for the accumulation of resources 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) $91.1 Million Debt Service Fund Uses (% to Total) $93.6 Million Rounding differences may occur. 195 Table of Contents BUDGET BY FUND | Debt Service Fund Summary Actual 20 22 / 23 Beginning Fund Balance Debt Stabilization Reserve GO Debt Service Reserve - Non Preserve Total Beginning Fund Balance Ado p t e d 20 23 / 24 Forecast 20 23 / 24 Ado p t e d 20 24 / 25 5,055,080 8,713,394 13,768,474 5,055,080 3,613,394 8,668,474 5,055,080 7,291,445 12,346,525 5,055,081 5,591,445 10,646,526 Subtotal 30,062,303 740,758 114,735 3,324 3 0 , 9 2 1 ,1 2 0 35,656,731 35, 65 6, 731 35,656,731 3 5 ,6 5 6 , 7 3 1 28,615,822 2 8 ,6 1 5 , 8 2 2 Subtotal 33,439,006 18,623,269 5 2 , 0 6 2 ,2 7 5 35,354,537 18,747,987 54, 10 2, 524 35,354,537 18,747,987 54,102,524 38,817,300 23,699,783 62,517,083 82 , 9 83 , 3 95 89,759,255 89,759,255 91,132,905 32,339,745 33,439,006 18,626,593 8 4 , 4 0 5 ,3 4 4 37,356,731 35,354,537 18,747,986 91, 45 9, 254 37,356,731 35,354,537 18,747,986 9 1 ,4 5 9 , 2 5 4 31,101,005 38,849,117 23,697,222 9 3 ,6 4 7 , 3 4 4 84,405,344 91,459,254 91,459,254 93,647,344 Total Uses 84,405,344 91,459,254 91,459,254 93,647,344 Sources Over/(Under) Uses (1,421,949) (1,699,999) (1,699,999) (2,514,439) Ending Fund Balance Debt Stabilization Reserve GO Debt Service Reserve - Non Preserve Total Ending Fund Balance 5,055,080 7,291,445 12,346,525 5,055,081 1,913,394 6,968,475 5,055,081 5,591,445 10,646,526 5,025,825 3,106,262 8,132,087 Re v e nue s Property Tax Bond Premium(a) Bond Proceeds Interest Income Non-pooled Transfers In Debt Svc GO Bonds Debt Svc MPC Bonds Total Sources Debt Service GO Debt Service - Non Preserve GO Debt Service - Preserve MPC Excise Debt Subtotal TOTAL OPERATING BUDGET (a) The Bond Premium recorded in FY 2022/23 represents the portion of the Cost of Issuance for General Obligation Bonds, Series 2023 and Taxable Series 2023 that was paid directly from the excess premium accumulated during the issuance of the bond. This figure is inclusive of the underwriter's discount. 196 Table of Contents BUDGET BY FUND | Debt Service Fund Five-Year Financial Forecast Ado p t e d 20 24 / 25 Beginning Fund Balance Debt Stabilization Reserve GO Debt Service Reserve - Non Preserve Total Beginning Fund Balance Forecast 20 25 / 26 Forecast 20 26 / 27 Forecast 20 27 / 28 Forecast 20 28 / 29 5,055,081 5,591,445 10 , 6 46 , 5 26 5,025,825 3,106,262 8,132,087 5,028,325 3,289,062 8,317,387 5,030,825 3,577,662 8,608,487 5,030,925 3,335,762 8,366,687 Subtotal 28,615,822 2 8 ,6 1 5 ,8 2 2 33,349,300 3 3 ,3 4 9 ,3 0 0 37,855,500 37,855,500 37,336,700 37,336,700 28,846,400 2 8 ,8 4 6 , 4 0 0 Subtotal 38,817,300 23,699,783 6 2 ,5 1 7 ,0 8 3 24,670,700 16,449,800 4 1 ,1 2 0 ,5 0 0 18,798,800 16,676,200 35,475,000 18,659,800 19,548,300 38,208,100 97,064,400 20,466,000 1 1 7 ,5 3 0 , 4 0 0 91,132,905 74,469,800 73,330,500 75,544,800 146,376,800 31,101,005 38,849,117 23,697,222 9 3 ,6 4 7 ,3 4 4 33,166,500 24,670,700 16,447,300 7 4 ,2 8 4 , 5 0 0 37,566,900 18,798,800 16,673,700 73,039,400 37,578,600 18,659,800 19,548,200 75,786,600 27,752,900 97,064,400 20,465,800 1 4 5 ,2 8 3 , 1 0 0 93,647,344 74,284,500 73,039,400 75,786,600 145,283,100 Total Uses 93 , 6 47 , 3 44 74,284,500 73,039,400 75,786,600 145,283,100 Sources Over/(Under) Uses ( 2 , 5 14 , 4 39) 185,300 291,100 (2 4 1 , 8 0 0 ) 1,093,700 Ending Fund Balance Debt Stabilization Reserve GO Debt Service Reserve - Non Preserve Total Ending Fund Balance 5,025,825 3,106,262 8,132,087 5,028,325 3,289,062 8,317,387 5,030,825 3,577,662 8,608,487 5,030,925 3,335,762 8,366,687 5,031,125 4,429,262 9,460,387 Re v e nue s Property Tax Bond Premium Bond Proceeds Interest Income Non-pooled Transfers In Debt Svc GO Bonds Debt Svc MPC Bonds Total Sources Debt Service GO Debt Service - Non Preserve GO Debt Service - Preserve MPC Excise Debt Subtotal TOTAL OPERATING BUDGET 197 Table of Contents BUDGET BY FUND | Debt Service Fund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able of Contents ()&87:'+3&32(7 BUDGET BY FUND | Debt Service Fund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able of Contents BUDGET BY FUND | Debt Service Fund ()&87)6:-')*92(97)7 (IFX7IVZMGIMWXLITE]QIRXSJTVMRGMTEPMRXIVIWXERHVIPEXIHWIVZMGIGLEVKIWSRSFPMKEXMSRWVIWYPXMRKJVSQXLIMWWYERGISJFSRHW 8LI*=EHSTXIHFYHKIXMRGPYHIWQMPPMSRMR(IFX7IVZMGI +3()&87)6:-')23246)7)6:) *=XS*= MRQMPPMSRW +3(IFX7IVZMGI2SR4VIWIVZIMWZSXIVEYXLSVM^IH+IRIVEP 3FPMKEXMSRHIFXMWWYIHJSVGETMXEPTVSNIGXWRSXEWWSGMEXIH[MXL XLI1G(S[IPP7SRSVER4VIWIVZI+IRIVEP3FPMKEXMSRHIFXMW VITEMHF]4VSTIVX]8E\ WIGSRHEV] 9RHIVWXEXIPE[GMXMIWERH XS[RWEVIEPPS[IHXSPIZ]E7IGSRHEV]4VSTIVX]8E\JSVXLI WSPITYVTSWISJVIXMVMRKXLITVMRGMTEPERHMRXIVIWXSR+IRIVEP 3FPMKEXMSRMRHIFXIHRIWW*SV*=XLI+IRIVEP 3FPMKEXMSR&SRHWHIFXWIVZMGIMWJSVIGEWXIHEXQMPPMSR [LMGLMWEQMPPMSRHIGVIEWI[LIRGSQTEVIHXSXLI*= EHSTXIHFYHKIX +3()&87)6:-')46)7)6:) *=XS*= MRQMPPMSRW +3(IFX7IVZMGI4VIWIVZIVITVIWIRXW+IRIVEP3FPMKEXMSRHIFX MWWYERGIWVIPEXIHXSPERHEGUYMWMXMSRMRXLI1G(S[IPP 1SYRXEMR7SRSVER4VIWIVZI4VIWIVZIHIFXMWVITEMHF]E HIHMGEXIHTIVGIRXWEPIWXE\EYXLSVM^IHF]ZSXIVWMR ERHETIVGIRXWEPIWXE\EYXLSVM^IHF]ZSXIVWMR+3 (IFX7IVZMGI4VIWIVZIMWFYHKIXIHEXQMPPMSRMR*= [LMGLMWERMRGVIEWISJQMPPMSRSZIVXLI*= EHSTXIHFYHKIX8LIMRGVIEWIVIJPIGXWLMKLIV TE]QIRXWJSVXLI+36IJYRHMRK4VIWIVZI&SRHW8LI PEVKIEGXYEPMR*=[EWHYIXSTE]QIRXWXSXLI VIJYRHMRKIWGVS[EKIRXERHGSWXWSJMWWYERGIMRGSRRIGXMSR [MXLXLIHIJIEWIQIRXSJ+3(IFX *36)'%78 200 &9(+)8 %'89%0*36)'%78 Table of Contents 14')<'-7)()&8 BUDGET BY FUND | Debt Service Fund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’WJMRERGMEPGSRHMXMSRERHTVSZMHIJSVYRI\TIGXIHIGSRSQMGGLEPPIRKIW 8LI(IFX7IVZMGI*YRHIRHMRKFEPERGIZEVMIWTVMQEVMP]HYIXSXLIXMQMRKSJHIFXMWWYERGIWERHVIPEXIHVITE]QIRXWGLIHYPIW +VS[XLSJJYRHFEPERGISGGYVW[LIRWSYVGIWI\GIIHYWIW8LIWTIGMJMGQEOIYTSJXLIGMX]’W(IFX7IVZMGI*YRHIRHMRKFEPERGIMW RSXIHMRXLIJSPPS[MRK *36)'%78 &9(+)8 %'89%0*36)'%78 201 Table of Contents ()&878%&-0->%8-326)7)6:) BUDGET BY FUND | Debt Service Fund *=XS*= MRQMPPMSRW (IFX7XEFMPM^EXMSR6IWIVZISJQMPPMSRMWTVSNIGXIHJSV*= 8LI(IFX7XEFMPM^EXMSR6IWIVZIFEPERGIZEVMIW TVMQEVMP]HYIXSXLIXMQMRKSJHIFXMWWYERGIWERHVIPEXIH VITE]QIRXWGLIHYPIWEWWSGMEXIH[MXLXLI14')\GMWI(IFX ;LMPIXLIVIMWRSPIKEPVIUYMVIQIRXXSLSPHXLMWVIWIVZIEXE GIVXEMRPIZIPXLI'MX]'SYRGMPLEWMRHMGEXIHXLEXMXWLSYPHFI QEMRXEMRIHXSTVSXIGXXLIGMX]JVSQYRI\TIGXIHJMRERGMEP GLEPPIRKIW +3()&87)6:-')6)7)6:)23246)7)6:) *=XS*= MRQMPPMSRW +3(IFX7IVZMGI6IWIVZI– 2SR4VIWIVZIVIWIVZIMWTVSNIGXIH EXQMPPMSRJSV*=8LI+3(IFX7IVZMGI6IWIVZI– 2SR4VIWIVZIFEPERGIZEVMIWTVMQEVMP]HYIXSXLIXMQMRKSJ HIFXMWWYERGIWERHVIPEXIHVITE]QIRXWGLIHYPIWEWWSGMEXIH [MXL+3(IFX7IVZMGI4IV*MRERGMEP4SPMG]2SXLI WIGSRHEV]TVSTIVX]XE\WYTTSVXIHHIFXVIWIVZIWLSYPHFIRS QSVIXLERTIVGIRXSJXLIEQSYRXSJERRYEPTVMRGMTEPERH MRXIVIWXRIIHIHXSWIVZMGIXLISYXWXERHMRKHIFX *36)'%78 202 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Bonded Debt The city issues debt to finance capital project construction. This section of the budget document provides summary information regarding the amount of debt outstanding, description of bond types, property tax debt limitation, primary and secondary property tax history, debt repayment, pledged revenue coverage, long-term debt principal and interest through maturity, Scottsdale's bond rating, and debt management. Outstanding Debt by Type The adopted FY 2024/25 budget includes outstanding debt by type and planned issuances as follows: New Issuance Proposed for FY 2024/25 $90,000,000 $150,000,000 $240,000,000 G.O Bonds – NonPreserve G.O Bonds - Preserve Excise Tax Supported Water and Sewer Revenue Supported Aviation Revenue Supported Contracts Payable Total – City Debt Principal and Interest Payments for FY 2024/25 $31,098,100 $38,847,300 $18,842,900 $35,181,150 $1,721,250 $352,687 $126,043,387 Outstanding Debt at 7/1/25 $249,117,700 $149,397,340 $134,225,000 $276,353,000 $16,560,000 $4,421,855 $830,074,895 Outstanding on 7/1/2025 - $833,992,855 Contracts Payable $4,421,855 Property Tax Supported GO Bonds $249,117,700 Preserve Tax Supported GO Bonds $149,397,300 Community Facility District Tax Supported GO Bonds $3,918,000 Excise Tax Supported Bonds $134,225,000 Water and Sewer Revenue Supported Bonds $276,353,000 Aviation Revenue Supported Bonds $16,560,000 203 Table of Contents BUDGET BY FUND | Bonded Debt Description of Bond Types - Including Principal and Interest Payments through Maturity in Millions Property Tax Supported General Obligation Bonds (Existing and Proposed) – The city issues General Obligation Bonds for improvements to streets, bridges, transportation systems, parks and trails, drainage systems and public safety and municipal facilities. General Obligation Bonds require voter approval. Secondary property taxes assessed are collected to repay General Obligation Bonds. $40.0 $30.0 $20.0 $10.0 $0.0 FY25 FY26 FY27 FY28 FY29 FY30 Principal FY31 FY32 FY33 FY34 FY35 Interest Preserve Tax Supported General Bonds – The city issues General Obligation Bonds for Sonoran McDowell Preserve land and land improvements. General Obligation Bonds require voter approval. Preserve excise tax revenues are pledged to repay the preserve bonds. $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 FY25 FY26 FY27 FY28 FY29 FY30 Principal FY31 FY32 FY33 FY34 FY35 Interest Excise Tax Supported Bonds – The city has debt secured by a pledge of all unrestricted excise taxes, transaction, franchise, privilege and business taxes, State-shared sales and income taxes, fees for licenses and permits and State revenue sharing, and fines and forfeitures, issued through the Municipal Property Corporation (MPC). These obligations were issued to fund the Museum of the West, TPC land and land improvements, WestWorld Land, Skysong Land, Flood Control, and other city improvements. $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 FY25 FY26 FY27 FY28 FY29 FY30 Principal FY31 Interest 204 FY32 FY33 FY34 FY35 Table of Contents BUDGET BY FUND | Bonded Debt Water and Sewer Revenue Supported Bonds (Existing and Proposed) – Water and sewer revenue bonds are issued through the Municipal Property Corporation (MPC), pledging city excise tax revenue but are repaid with water and sewer revenues. $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 FY25 FY26 FY27 FY28 FY29 FY30 Principal FY31 FY32 FY33 FY34 FY35 Interest Aviation Revenue Supported Bonds – Aviation revenue bonds are issued through the Municipal Property Corporation (MPC), pledging city excise tax revenues but are repaid with aviation revenues. $2.0 $1.5 $1.0 $0.5 $0.0 FY25 FY26 FY27 FY28 FY29 FY30 Principal FY31 FY32 FY33 FY34 FY35 FY34 FY35 Interest Contracts Payable – The city has lease purchase agreements for the financing of equipment. $80 Thousands $60 $40 $20 $0 FY25 FY26 FY27 FY28 FY29 Principal FY30 FY31 FY32 FY33 Interest 205 Table of Contents BUDGET BY FUND | Bonded Debt Community Facility District (CFD) Tax Supported Debt – The city has two CFDs (DC Ranch and Scottsdale Waterfront Commercial). CFD bonds are repaid from a special purpose tax levied on the properties within the Districts. The city has no liability for CFD debt. $1.6 $1.2 $0.8 $0.4 $0.0 FY25 FY26 FY27 FY28 FY29 FY30 Principal FY31 FY32 FY33 FY34 FY35 Interest Debt Repayment Fiscal Year End 2024/25 Forecast Debt paydown reflects how quickly the city expects to repay outstanding debt. A more rapid repayment period reduces risks from future loss of revenues and is an indicator of repayment strength. Rapid repayment also allows debt capacity to be released and made available for future capital needs. The city’s debt paydown is strong with 70 percent of total debt repaid in 10 years and 87 percent repaid in 15 years. Principal Outstanding - Forecasted $1,200 in millions $1,000 $800 $600 $400 $200 $- 206 Water and Sewer Revenue Supported Bonds Proposed FY29 Water and Sewer Revenue Supported Bonds Proposed FY28 Water and Sewer Revenue Supported Bonds Proposed FY26 Property Tax Supported GO Bonds Proposed FY 27 Property Tax Supported GO Bonds Proposed FY 25 Contracts Payable Community Facility District Tax Supported GO Bonds Excise Tax Supported Bonds Aviation Revenue Supported Bonds Water and Sewer Revenue Supported Bonds Preserve Tax Supported GO Bonds Property Tax Supported GO Bonds Table of Contents BUDGET BY FUND | Bonded Debt Property Tax Debt Limitation The Arizona Constitution, (Article 9, Section 8), provides that the general obligation bonded indebtedness for a city for general municipal purposes may not exceed six percent of the assessed valuation of the taxable property in that city. In addition to the six percent limitation for general municipal purpose bonds, cities may issue general obligation bonds up to an additional 20 percent 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, public safety, law enforcement, fire and emergency services facilities and streets and transportation facilities. General Obligation Bonds Issued to Provide Water, Sewers, Artificial Light, Parks, Playgrounds and Recreational Facilities, Open Space Preserves, Public Safety, and Streets and Transportation Facilities 20% Constitutional Limit $2,826,612,551 Less General Obligation (296,226,800) Bonds 20% Bonds Outstanding Excess Premium (11,227,803) Available 20% Limitation Borrowing Capacity $2,519,157,947 General Obligation Bonds Issued for All Other Purposes 6% Constitutional Limit $847,983,765 Less General Obligation Bonds (7,288,200) 6% Bonds Outstanding Excess Premium (833,037) Available 6% Limitation $839,862,529 Borrowing Capacity Primary and Secondary Property Tax Rates History: Tax rates per $100 assessed valuation The primary property tax revenues are used by the General Fund for services such as Police, Fire, Community Services, and many other governmental purposes. The secondary property tax revenues are used to repay debt service on general obligation bonds. Fiscal Year 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Forecast Primary Tax Rate $0.5198 $0.5273 $0.5039 $0.4970 $0.5150 $0.4958 Secondary Tax Rate $0.5214 $0.5043 $0.5042 $0.4101 $0.4664 $0.4358 Total Tax Rate $1.0412 $1.0316 $1.0081 $0.9071 $0.9814 $0.9316 Adopted Financial Policy Section 8.04 General Obligation Bonds: The city will not exceed $1.50 combined (primary and secondary) property tax rate per $100 net assessed limited property value unless otherwise directed by the council. Pledged Revenue Coverage – Municipal Property Corporation* The Municipal Property Corporation (MPC) is a non-profit corporation created by the city as a financing conduit for the purpose of financing the construction or acquisition of city capital improvement projects. In order to obtain the funds 207 Table of Contents BUDGET BY FUND | Bonded Debt necessary for the construction or acquisition of facilities, the MPC issues bonds and then leases the facilities to the city for lease-rental payments which equal the semiannual debt service payments on the MPC bonds. 10.00 8.00 6.00 4.00 2.00 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Forecast Forecast Forecast Forecast Coverage Debt Covenant *Includes debt service payments paid out of the general fund, the special programs fund, the tourism development fund, the stadium facility fund and the water and sewer enterprise funds. Scottsdale's Bond Rating Scottsdale General Obligation Bonds continue to maintain the highest possible rating from the three major national bond rating agencies, Moody's Investors Services, Standard & Poor's Rating Services, and Fitch Ratings, 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, and pools at lower interest rates. Because the ratings are high, Scottsdale's General Obligation Bonds are highly desirable and therefore increase the value of existing bonds for investors. S ummar y of Cur r e nt Ra tings : Moody' s I nve s tor s S e r vic e s S tandar d & Poor ' s Ratings S e r vic e s Fitc h Ratings General Obligation (GO) Municipal Property Corporation (MPC) Aaa AAA AAA Aa1 AAA AA+ Scottsdale Preserve Authority (SPA) Aa2 AA+ AA+ Water & Sewer Revenue (W&S) Aaa AAA AAA 208 Table of Contents BUDGET BY FUND | Bonded Debt Debt Management Scottsdale's primary debt management objectives are to minimize the cost of borrowing to taxpayers while assuring that total indebtedness does not exceed available resources and conforms to Arizona legal requirements. The necessity to incur debt in order to finance the capital program requires the obligation to manage the debt program effectively. As a result, the level of outstanding debt and the city's capacity to incur and repay additional debt require careful examination. Proper debt management provides for the protection and eventual enhancement of bond ratings; and compliance with debt instrument provisions and required disclosures to investors, underwriters, and rating agencies. Financial Policy No. 8 is used when evaluating the purpose, necessity and condition under which decisions are made to issue debt. Financial Policy No. 8 is also meant to supplement the legal framework of public debt law provided by the Arizona Constitution, State statutes, federal tax laws, and the city's bond resolutions and covenants. 209 Table of Contents BUDGET BY FUND | Debt Service Expense Debt Service Expense - All Funds Debt Service Fund General Obligation (G.O.) Bonds - Property Tax (Secondary) Supported 2015 G.O. Refunding Bonds ($86.4M Apr 2015) 2017 G.O. Refunding Bonds ($26.8M May 2017) 2017C G.O. Various Purpose Bonds ($25.5M Dec 2017) 2021 G.O. Various Purpose Bonds (Taxable) ($19.8M Feb 2021) 2021 G.O. Various Purpose Bonds (Tax-Exempt) ($31.4M Feb 2021) 2023 G.O. Various Purpose Bonds (Taxable) ($39.5M Jan 2023) 2023 G.O. Various Purpose Bonds (Tax-Exempt) ($34.2M Jan 2023) Future G.O. Various Purpose Bonds ($90.0M Dec 2025) Future G.O. Various Purpose Bonds ($95.0M Dec 2027) Fiscal Agent Fees and Arbitrage Fees Preserve General Obligation Bonds - Preserve Sales Tax Supported 2012 G.O. Refunding Bonds Preserve ($44.5M Jul 2012) 2013 G.O. Bonds Preserve ($75.0M Feb 2013) 2014 G.O. Bonds Preserve ($14.0M May 2014) 2015 G.O. Refunding Bonds Preserve ($74.0M Apr 2015) 2017 G.O. Refunding Bonds Preserve ($13.2M May 2017) 2017A G.O. Bonds Preserve ($17.4M Mar 2017) 2017B G.O. Preserve Acquisition Refinancing Bonds ($18.5M May 2017) 2020 G.O. Taxable Refunding Bonds Preserve ($167.9M Dec 2020) Fiscal Agent Fees and Arbitrage Fees Forecast 2023/24 Adopted 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 9,774,800 4,280,149 2,310,000 1,217,624 2,006,500 3,583,525 3,225,750 6,586,392 4,578,830 3,300 37,566,870 9,838,400 4,366,424 4,562,324 1,218,624 2,006,300 3,483,525 3,130,750 6,583,522 6,947,254 3,800 37,578,599 1,219,224 2,003,900 3,383,525 3,035,750 6,592,132 6,952,303 3,600 27,752,757 20,304,250 3,911,892 2,417,000 1,221,324 2,004,500 3,905,775 3,589,500 9,335,650 4,039,967 2,934,000 1,219,624 2,005,500 3,809,775 3,415,750 4,337,839 9,590,200 4,126,317 2,635,250 1,221,324 2,004,500 3,683,525 3,320,750 6,581,609 2,490 37,356,731 2,900 31,101,005 2,900 33,166,375 5,531,100 2,550,000 744,900 12,785,250 1,494,623 820,600 6,079,500 5,344,904 3,660 35,354,537 747,900 946,250 1,481,048 820,600 746,750 961,800 1,449,698 820,600 972,600 1,433,116 2,645,600 951,600 1,431,091 2,644,350 7,349,591 14,303,600 34,851,489 1,830 38,849,117 20,689,937 1,900 24,670,685 13,746,428 1,100 18,798,843 13,631,557 1,100 18,659,698 75,410,264 900 97,064,355 Municipal Property Corporation (MPC) Bonds - Excise Tax Supported 2006 MPC Refunding Bonds SkySong (GF/ST) ($42.8M Nov 2006) 2006 MPC Refunding Bonds WW/TPC Land Acquisition 80-acres (GF/ST) ($30.5M Nov 2006) 2014 MPC Refunding Bonds TPC (GF/ST) ($5.3M May 2014) 2014 MPC Refunding Bonds WW/TPC Land Acq 52 and 17-acres (GF/ST) ($17.4M May 2014) 2015A MPC (Taxable) TPC Golf Surcharge (GF/ST) ($12.4M Jan 2015) 2015A MPC (Taxable) TPC Golf Surcharge (TDF) ($2.2M Jan 2015) 2015A MPC Museum (TDF) ($12.2M Jan 2015) 2019A MPC Crossroads Flood Control (SF) ($9.3M Oct 2019) 2019B MPC (Taxable) Stadium Improvements (Charros Contribution) ($2.1M Oct 2019) 2019B MPC (Taxable) Stadium Improvements (Giants Contribution) ($8.4M Oct 2019) 2019B MPC (Taxable) Stadium Improvements (TDF) ($22.8M Oct 2019) 2021B MPC Refunding Bonds (Taxable) McDowell Golf (SPF) ($0.9M Feb 2021) 2021B MPC Refunding Bonds (Taxable) Museum (TDF) ($0.8M Feb 2021) 2021B MPC Refunding Bonds (Taxable) SFS Garage Payoff (GF/ST) ($14.1M Feb 2021) 2021B MPC Refunding Bonds (Taxable) TNEC (GF/ST) ($15.1M Feb 2021) 2021B MPC Refunding Bonds (Taxable) TNEC (TDF) ($10.5M Feb 2021) 2021B MPC Refunding Bonds (Taxable) TPC (GF/ST) ($2.6M Feb 2021) 2021B MPC Refunding Bonds (Taxable) WW/TPC Land Acq 52- and 17-acres (GF/ST) ($10.4M Feb 2021) 2021B MPC Refunding Bonds (Taxable) WW/TPC Land Acquisition 80-acres (TDF) ($16.3M Feb 2021) Fiscal Agent Fees and Arbitrage Fees 2,816,000 2,579,500 594,050 1,934,913 161,713 900,000 859,363 666,750 135,000 525,000 1,530,680 100,119 22,815 2,576,167 1,283,136 1,200,000 77,165 305,241 471,177 9,200 2,817,250 2,584,750 1,738,800 5,657,663 163,513 900,000 854,613 668,750 135,000 525,000 1,527,113 84,765 22,756 2,646,480 1,289,529 1,200,000 80,994 320,567 470,332 9,350 2,819,250 2,640,250 2,811,750 2,738,250 2,815,000 2,796,250 2,813,250 2,850,750 164,113 900,000 858,613 664,750 135,000 525,000 1,530,078 94,316 27,666 2,731,235 1,291,321 1,200,000 78,710 311,443 469,044 6,500 164,250 900,000 170,863 665,000 135,000 525,000 1,531,528 98,637 702,506 2,830,102 1,338,583 1,200,000 78,347 310,008 467,326 6,500 162,588 900,000 890,863 664,250 135,000 525,000 1,529,868 87,665 163,044 900,000 889,263 667,500 135,000 525,000 1,526,588 101,681 2,900,240 1,448,905 1,200,000 608,257 2,407,668 470,004 6,500 3,389,139 1,200,000 969,275 3,836,534 492,298 6,500 Municipal Property Corporation (MPC) Bonds - Excise Tax Supported - Subtotal by Funding Source General Fund/Excise Tax (GF/ST) Special Revenue/Stormwater Fee (SF) Tourism Development Fund (TDF) Special Program (McDowell Golf) (SPF) Giants/Charros Contribution Subtotal Municipal Property Corporation (MPC) Bonds - Excise Tax Supported 12,337,084 666,750 4,984,034 100,119 660,000 18,747,986 17,308,895 668,750 4,974,813 84,765 660,000 23,697,222 10,042,822 664,750 4,985,400 94,316 660,000 16,447,287 10,277,790 665,000 4,972,222 98,637 660,000 16,673,649 13,145,408 664,250 4,990,734 87,665 660,000 19,548,057 14,028,492 667,500 5,008,148 101,681 660,000 20,465,821 Total Debt Service Funds 91,459,254 93,647,344 74,284,347 73,039,362 75,786,353 145,282,933 General Fund Service Concession Agreements BOR Administration/WestWorld BOR Administration/TPC Subtotal General Fund Service Concession Agreements 218,287 218,287 436,575 229,202 229,202 458,404 240,662 240,662 481,324 252,695 252,695 505,390 265,330 265,330 530,660 278,596 278,596 557,193 Contracts Payable John Deere Mowing Equipment Subtotal General Fund Contracts Payable 15,529 15,529 15,529 15,529 15,529 15,529 10,354 10,354 - - Total General Fund 452,104 473,933 496,853 515,744 530,660 557,193 Special Revenue Funds Contracts Payable Underground Utility Improvement District John Deere Mowing Equipment Subtotal Special Revenue Funds Contracts Payable 57,729 17,375 75,104 55,545 17,375 72,919 53,360 17,375 70,735 51,176 11,583 62,759 48,991 46,807 48,991 46,807 Police Department Investigative Equipment Police Department Protective Equipment Police Department Protective Equipment Subtotal General Fund Contracts Payable 306,145 78,888 92,713 477,746 - - - - - Total Special Revenue Funds 552,850 72,919 70,735 62,759 48,991 46,807 210 Final Pmt 2028 2029 2027 2040 2040 2042 2042 2044 2046 2024 2024 2026 2028 2034 2034 2024 2034 2034 2030 2027 2027 2034 2034 2034 2039 2039 2039 2039 2033 2027 2028 2033 2033 2031 2031 2035 2032 2035 2027 2033 2027 2024 2024 2024 Table of Contents BUDGET BY FUND | Debt Service Expense Debt Service Expense - All Funds Municipal Property Corporation (MPC) Bonds - Water and Sewer Funds 2006 MPC Refunding Bonds Water ($82.8M Nov 2006) 2006 MPC Refunding Bonds Water Reclamation ($9.9M Nov 2006) 2015 MPC Refunding Bonds Water ($71.5M Mar 2015) 2015 MPC Refunding Bonds Water Reclamation ($22.1M Mar 2015) 2015A MPC Water Reclamation ($18.5M Jan 2015) 2017 MPC Refunding Bonds Water ($47.7M Mar 2017) 2017 MPC Refunding Bonds Water Reclamation ($47.7M Mar 2017) 2017A MPC Water ($39.1M May 2017) 2021A Refunding Bonds Water ($1.8M Feb 2021) 2021A Refunding Bonds Water Reclamation ($6.1M Feb 2021) 2021B MPC Refunding Bonds (Taxable) Water ($38.2M Feb 2021) 2021B MPC Refunding Bonds (Taxable) Water Reclamation ($26.2M Feb 2021) Future MPC Water/Sewer Bonds ($150.0M Dec 2025) Future MPC Water/Sewer Bonds ($90.0M Dec 2027) Future MPC Water/Sewer Bonds ($35.0M Dec 2028) Fiscal Agent Fees and Arbitrage Fees Municipal Property Corporation (MPC) Bonds - Aviation Fund 2017B MPC ($23.5M 2017) Fiscal Agent Fees and Arbitrage Fees Forecast 2023/24 Adopted 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 5,810,151 692,349 5,794,291 690,459 5,767,262 687,238 258,913 1,861,766 2,755,709 2,823,356 89,782 306,218 5,170,959 3,536,784 14,575,000 5,200,000 1,351,213 2,919,460 4,321,265 2,827,006 89,782 306,218 960,789 657,259 13,776,000 8,742,000 3,498,000 12,500 45,915,992 10,987,464 1,309,286 4,175,760 1,292,490 1,300,413 1,618,374 2,395,451 2,824,356 89,782 306,218 1,328,117 908,467 5,865,773 698,977 4,159,532 1,287,468 1,295,413 1,694,740 2,508,485 2,826,606 89,782 306,218 1,328,025 908,352 6,400,400 5,838,297 695,703 4,169,460 1,290,540 1,298,413 1,774,473 2,626,502 2,824,606 89,782 306,218 1,326,294 907,116 14,992,000 9,800 28,545,978 12,760 29,382,530 13,100 38,152,504 11,600 43,092,587 1,348,913 1,947,849 2,883,126 2,827,606 89,782 306,218 4,592,206 3,141,081 14,193,000 8,992,000 1,493,000 12,500 48,312,031 1,720,744 1,500 1,722,244 1,721,244 1,500 1,722,744 1,719,244 1,500 1,720,744 1,719,744 1,500 1,721,244 1,717,494 1,500 1,718,994 1,717,494 1,500 1,718,994 122,732,430 125,299,470 114,725,183 118,431,696 126,397,029 193,521,918 Final Pmt 2030 2030 2026 2026 2034 2034 2034 2037 2030 2030 2036 2036 2043 2045 2046 2037 211 Table of Contents BUDGET BY FUND | Long-Term Debt Outstanding Balance at 6 /3 0 /2 4 Debt Service Fund General Obligation (G.O.) Bonds - Property Tax (Secondary) Supported 2015 G.O. Refunding Bonds ($86.4M Apr 2015) 2017 G.O. Refunding Bonds ($26.8M May 2017) 2017C G.O. Various Purpose Bonds ($25.5M Dec 2017) 2021 G.O. Various Purpose Bonds (Taxable) ($19.8M Feb 2021) 2021 G.O. Various Purpose Bonds (Tax-Exempt) ($31.4M Feb 2021) 2023 G.O. Various Purpose Bonds (Taxable) ($39.5M Jan 2023) 2023 G.O. Various Purpose Bonds (Tax-Exempt) ($34.2M Jan 2023) Future G.O. Various Purpose Bonds ($90.0M Dec 2025) Future G.O. Various Purpose Bonds ($95.0M Dec 2027) Total General Obligation Bonds Balance at 6 /3 0 /2 5 Balance at 6 /3 0 /2 6 35,020,000 18,809,860 7,180,000 16,860,000 26,450,000 37,510,000 32,200,000 27,005,000 15,602,660 4,605,000 15,945,000 25,175,000 35,485,000 30,300,000 90,000,000 18,495,000 12,172,310 2,200,000 15,010,000 23,850,000 33,485,000 28,400,000 87,531,888 174,029,860 244,117,660 221,144,198 Balance at 6 /3 0 /2 7 Balance at 6 /3 0 /2 8 Balance at 6 /3 0 /2 9 9,460,000 8,416,610 14,060,000 22,470,000 31,485,000 26,500,000 84,566,327 95,000,000 291,957,937 4,386,850 13,090,000 21,035,000 29,485,000 24,600,000 81,447,704 92,394,770 266,439,324 12,100,000 19,545,000 27,485,000 22,700,000 78,176,020 89,264,456 249,270,476 Preserve General Obligation Bonds - Preserve Sales Tax Supported 2012 G.O. Refunding Bonds Preserve ($44.5M Jul 2012) 2013 G.O. Bonds Preserve ($75.0M Feb 2013) 2014 G.O. Bonds Preserve ($14.0M May 2014) 2015 G.O. Refunding Bonds Preserve ($74.0M Apr 2015) 2017 G.O. Refunding Bonds Preserve ($13.2M May 2017) 2017A G.O. Bonds Preserve ($17.4M Mar 2017) 2020 G.O. Taxable Refunding Bonds Preserve ($167.9M Dec 2020) Total Preserve General Obligation Bonds 1,430,000 3,485,000 11,280,140 17,410,000 151,475,000 185,080,140 725,000 2,670,000 10,267,340 17,410,000 118,325,000 149,397,340 1,815,000 9,242,690 17,410,000 99,135,000 127,602,690 915,000 8,183,390 15,585,000 86,730,000 111,413,390 7,073,150 13,670,000 74,325,000 95,068,150 Municipal Property Corporation (MPC) Bonds - Excise Tax Supported 2006 MPC Refunding Bonds SkySong 2006 MPC Refunding Bonds WW/TPC Land Acquisition 80-acres 2014 MPC Refunding Bonds TPC 2014 MPC Refunding Bonds WW/TPC Land Acq 52 and 17-acres 2015A MPC (Taxable) TPC Golf Surcharge 2015A MPC Museum 2019A MPC Crossroads Flood Control 2019B MPC (Taxable) Stadium Improvements 2021B MPC Refunding Bonds (Taxable) McDowell Golf 2021B MPC Refunding Bonds (Taxable) Museum 2021B MPC Refunding Bonds (Taxable) SFS Garage Payoff 2021B MPC Refunding Bonds (Taxable) TNEC 2021B MPC Refunding Bonds (Taxable) TPC 2021B MPC Refunding Bonds (Taxable) WW/TPC Land Acq 52- and 17-acres 2021B MPC Refunding Bonds (Taxable) WW/TPC Land Acquisition 80-acres Total Municipal Property Corporation (MPC) Bonds - Excise Tax Supported 21,145,000 13,895,000 1,675,000 5,450,000 8,690,000 6,795,000 7,735,000 26,640,000 755,000 730,000 10,820,000 21,870,000 2,441,500 9,663,500 15,210,000 153,515,000 19,385,000 12,005,000 7,955,000 6,175,000 7,355,000 25,150,000 680,000 715,000 8,275,000 19,665,000 2,394,100 9,475,900 14,995,000 134,225,000 17,535,000 9,965,000 7,190,000 5,520,000 6,960,000 23,625,000 595,000 695,000 5,630,000 17,445,000 2,348,700 9,296,300 14,780,000 121,585,000 15,600,000 7,725,000 6,400,000 5,520,000 6,545,000 22,065,000 505,000 2,865,000 15,160,000 2,303,300 9,116,700 14,565,000 108,370,000 13,565,000 5,315,000 5,585,000 4,800,000 6,110,000 20,470,000 425,000 12,740,000 1,727,500 6,837,500 14,345,000 91,920,000 11,430,000 2,730,000 4,740,000 4,060,000 5,650,000 18,840,000 330,000 8,350,000 783,600 3,101,400 14,100,000 74,115,000 Total Debt Service Funds 512, 625, 000 527, 740, 000 470, 331, 888 511, 741, 327 453, 427, 474 323, 385, 476 1,823,581 2,544,228 4,367,809 1,667,322 2,416,796 4,084,118 1,493,353 2,272,805 3,766,159 1,300,392 2,111,023 3,411,415 1,087,078 1,930,134 3,017,212 851,965 1,728,743 2,580,708 39,757 39,757 25,218 25,218 10,239 10,239 Ge n e r a l F u n d Service Concession Agreements BOR Administration/WestWorld BOR Administration/TPC Subtotal General Fund Service Concession Agreements C o n t ra c t s P a ya b l e John Deere Mowing Equipment Subtotal General Fund Contracts Payable T o t a l Ge n e r a l F u n d - - - - Fi n al P a y m en t Da t e 2028 2029 2027 2040 2040 2042 2042 2044 2046 2024 2024 2026 2028 2029 2029 2029 2034 2030 2027 2027 2034 2034 2039 2039 2033 2027 2028 2033 2031 2031 2035 2032 2035 2027 4, 407, 566 4, 109, 336 3, 776, 397 3, 411, 415 3, 017, 212 2, 580, 708 Special Revenue Funds C o n t ra c t s P a ya b l e Underground Utility Improvement District John Deere Mowing Equipment Subtotal Special Revenue Funds Contracts Payable 322,495 44,481 366,975 284,304 28,214 312,519 246,114 11,455 257,569 207,924 207,924 169,734 169,734 131,544 131,544 Total Special Revenue Funds 366, 975 312, 519 257, 569 207, 924 169, 734 131, 544 Municipal Property Corporation (MPC) Bonds - Water and Sewer Funds 2006 MPC Refunding Bonds Water 2006 MPC Refunding Bonds Water Reclamation 2015 MPC Refunding Bonds Water 2015 MPC Refunding Bonds Water Reclamation 2015A MPC Water Reclamation 2017 MPC Refunding Bonds Water 2017 MPC Refunding Bonds Water Reclamation 2017A MPC Water 2021A Refunding Bonds Water 2021A Refunding Bonds Water Reclamation 2021B MPC Refunding Bonds (Taxable) Water 2021B MPC Refunding Bonds (Taxable) Water Reclamation Future MPC Water/Sewer Bonds ($150.0M Dec 2025) Future MPC Water/Sewer Bonds ($90.0M Dec 2027) Future MPC Water/Sewer Bonds ($35.0M Dec 2028) Total Municipal Property Corporation (MPC) Bonds - Water & Sewer Revenue Supported 29,481,856 3,513,144 7,743,279 2,396,721 10,295,000 15,055,488 22,284,512 29,155,000 1,795,640 6,124,360 35,091,900 24,003,100 150,000,000 336,940,000 25,090,176 2,989,824 3,970,912 1,229,088 9,355,000 14,029,344 20,765,656 27,415,000 1,795,640 6,124,360 34,302,100 23,462,900 141,661,000 90,000,000 402,191,000 20,506,387 2,443,613 8,365,000 12,872,160 19,052,840 25,590,000 1,795,640 6,124,360 33,509,300 22,920,700 133,322,000 87,400,000 373,902,000 15,721,556 1,873,444 8,365,000 11,569,824 17,125,176 23,675,000 1,795,640 6,124,360 28,865,500 19,744,500 124,947,000 82,400,000 35,000,000 377,207,000 10,713,342 1,276,658 7,275,000 10,116,288 14,973,712 21,660,000 1,795,640 6,124,360 24,750,300 16,929,700 116,572,000 77,400,000 33,054,000 342,641,000 5,481,748 653,252 6,150,000 7,618,464 11,276,536 19,565,000 1,795,640 6,124,360 24,215,900 16,564,100 108,197,000 72,400,000 31,108,000 311,150,000 2030 2030 2026 2026 2034 2034 2034 2037 2030 2030 2036 2036 2043 2045 2046 Municipal Property Corporation (MPC) Bonds - Aviation Fund 2017B MPC ($23.5M 2017) Total Municipal Property Corporation (MPC) Bonds - Aviation Revenue Supported 17,600,000 17,600,000 16,560,000 16,560,000 15,470,000 15,470,000 14,325,000 14,325,000 13,125,000 13,125,000 11,865,000 11,865,000 2037 871, 939, 542 950, 912, 855 863, 737, 854 906, 892, 666 812, 380, 420 649, 112, 728 T o t a l O u t s t a n d i n g D eb t - A l l F u n d s 212 2033 2027 Table of Contents BUDGET BY FUND | Enterprise Funds Overview BUDGET BY FUND | Enterprise Funds Overview ENTERPRISE FUNDS DESCRIPTION Scottsdale uses separate Enterprise Funds to account for the activity of the proprietary funds. The individual funds are Water and Water Reclamation, Solid Waste, and Aviation. In aggregate, the Enterprise Funds are the city’s second largest source of revenues, which are derived from user fees and charges. User fees and charges are established to promote efficiency by shifting costs to specific users of services and avoiding general taxation. The applicable revenues of the individual funds, along with each fund’s purpose, are described in the sections that follow. Enterprise Funds Sources (% to Total) $280.1 Million Enterprise Funds Uses (% to Total) $274.4 Million Rounding differences may occur. 213 Table of Contents FY 2024/25 Proposed Budget 214 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) $232.8 Million Water & Water Reclamation Funds Uses (% to Total) $226.1 Million Rounding differences may occur. 215 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds Summary A ct u a l 2022/23 B e g i n n i n g F u n d B a l a n ce Debt Service Reserve (a) Operating Contingency (b) Operating Reserve Water & WasteWater Asset Replacement Reserve Water Drought Reserve (c) Water & WasteWater Fund Balance T o t a l B e g i n n i n g F u n d B a l a n ce R e ve n u e s Water Service Charges Water Reclamation Service Charges Non-Potable Water Service Charges Miscellaneous Interest Earnings Indirect Costs Stormwater Fee Property Rental Contributions & Donations T r a ns f e r s I n AWT Debt Service RWDS T o t a l S o u r ce s Subtotal Subtotal A d o p te d 2023/24 F o r e ca s t 2023/24 A d o p te d 2024/25 4,604,688 20,413,305 46,239,707 3,000,000 31,974,023 106,231,723 5,000,000 24,721,786 42,933,575 5,000,000 77,655,361 5,000,000 25,377,768 45,397,287 5,000,000 24,707,632 105,482,687 7,345,633 5,000,000 27,949,618 44,210,907 5,000,000 89,506,158 113,012,755 48,120,265 15,060,811 4,883,767 2,056,099 801,903 334,755 208,451 4,000 123,359,867 51,636,995 16,905,462 4,432,368 3,648,499 801,903 340,527 210,188 5,550 123,359,867 48,576,178 16,905,462 9,339,950 3,648,499 801,903 340,527 210,188 5,550 135,292,948 55,625,122 16,760,212 5,185,203 4,383,299 818,408 338,612 221,851 5,500 184,482,806 201,341,359 203,188,124 218,631,155 3,704,813 7,581,321 900,000 3,455,128 3,963,028 900,000 3,455,128 3,963,028 900,000 3,689,477 9,610,227 900,000 12,186,134 8,318,156 8,318,156 14,199,704 196,668,940 209,659,515 211,506,280 232,830,859 (a) Debt Service Reserve was projected to be zero in FY 2023/24 as Sewer Revenue Bonds sunsetted in FY 2022/23. New Water and Sewer Revenue Bonds are anticipated to be issued in FY 2024/25. (b) Operating Contingency was added in FY 2023/24 to align with other operating funds. New Water and Sewer Reserve Bonds are anticipated to be issued in FY 2024/25. (c) Water Drought Reserve was increased to $5.0 million in FY 2023/24 as the Bureau of Reclamation declared a Tier 2a shortage for the Colorado River system for 2023. 216 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds Summary Ex p e n d i t u r e s City Treasurer Administrative Services Water Resources Citywide Indirect Cost Allocation Department Indirect Cost (a) Class and Comp Study (b) Fuel and Maint and Repair Leave Accrual Payments / Parental Leave Post Employment Medical Vacation Trade Savings from Vacant Positions Utilities D e b t S e r vi ce (c) 2024 Rev Bond Debt Svc-Sewer (c) 2024 Rev Bond Debt Svc-Water MPC Bonds Debt Service-Sewer MPC Bonds Debt Service-Water 2008 Rev Bond Debt Svc-Sewer (c) A ct u a l 2022/23 Subtotal Subtotal TOTAL OPERATING BUDGET T r a ns f e r s O u t AWT CIP CIP Technology Debt Service Fund (c) Franchise Fees Other T o ta l U s e s S o u r ce s O ve r / ( U n d e r ) U s e s En d i n g F u n d B a l a n ce Debt Service Reserve (c) Operating Contingency (d) Operating Reserve Water & WasteWater Asset Replacement Reserve Water Drought Reserve (e) Water & WasteWater Fund Balance T o t a l En d i n g F u n d B a l a n ce Subtotal 2,367,588 480,680 74,267,894 5,253,417 801,903 16,261,334 A d o p te d 2023/24 2,605,385 729,338 85,562,038 5,883,327 801,903 745,370 542,434 70,424 (1,177,100) 16,035,350 F o r e ca s t 2023/24 2,453,052 655,439 83,411,816 5,883,327 801,903 509,367 438,527 145,392 (292,035) 16,035,350 A d o p te d 2024/25 2,407,057 709,908 89,783,309 6,577,491 818,408 554,694 65,997 (1,203,702) 18,273,550 99,432,816 111,798,469 110,042,138 117,986,712 7,403,644 21,001,717 4,605,088 7,516,900 21,029,078 - 7,516,900 21,029,078 - 3,841,500 2,561,900 7,009,413 15,969,718 - 33,010,449 28,545,978 28,545,978 29,382,531 132,443,265 140,344,447 138,588,116 147,369,243 3,704,813 37,839,263 11,463,241 3,307,601 8,659,793 - 3,455,128 48,921,942 2,944,082 9,422,892 65,860 3,455,128 73,006,731 2,944,082 9,422,892 65,860 3,689,477 59,249,640 1,416,830 4,381,497 9,995,402 - 64,974,711 64,809,904 88,894,693 78,732,846 197,417,976 205,154,351 227,482,809 226,102,089 (749,036) 4,505,164 (15,976,529) 6,728,770 25,377,768 45,397,287 3,000,000 31,707,632 105,482,687 5,000,000 27,949,618 44,210,907 5,000,000 82,160,525 7,345,633 5,000,000 27,949,618 44,210,907 5,000,000 89,506,158 9,538,125 4,539,124 29,496,679 47,661,000 5,000,000 96,234,928 (a) Anticipated cost to implement the Classification and Compensation Study recommendations. Budget adopted at the division level. At the start of the fiscal year, the budget moves to a non-divisional account and then is transferred back to the division monthly as expenses occur. (c) 2008 Sewer Revenue Bonds sunsetted in FY 2022/23. 2024 Water and Sewer Revenue Bonds are anticipated to be issued in FY 2024/25. (d) Operating Contingency was added in FY 2023/24 to align with other operating funds. (e) Water Drought Reserve was increased to $5.0 million in FY 2023/24 as the Bureau of Reclamation declared a Tier 2a shortage for the Colorado River system for 2023. (b) 217 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds Five Year Forecast B e g i n n i n g F u n d B a l a n ce Debt Service Reserve Operating Contingency Operating Reserve Water & WasteWater Asset Replacement Reserve Water Drought Reserve Water & WasteWater Fund Balance T o t a l B e g i n n i n g F u n d B a l a n ce R e ve n u e s Water Service Charges Water Reclamation Service Charges Non-Potable Water Service Charges Miscellaneous Interest Earnings Indirect Costs Stormwater Fee Property Rental Contributions & Donations T r a ns f e r s I n AWT Debt Service RWDS T o t a l S o u r ce s Subtotal Subtotal A d o p te d 2024/25 F o r e ca s t 2025/26 F o r e ca s t 2026/27 F o r e ca s t 2027/28 F o r e ca s t 2028/29 7,345,633 5,000,000 27,949,618 44,210,907 5,000,000 89,506,158 9,538,125 4,539,124 29,496,679 47,661,000 5,000,000 96,234,928 10,773,175 4,179,903 30,492,150 50,988,000 5,000,000 101,433,228 12,078,025 3,813,728 31,111,175 53,880,000 5,000,000 105,882,928 11,479,025 3,440,353 32,057,650 56,943,000 5,000,000 108,920,028 135,292,948 55,625,122 16,760,212 5,185,203 4,383,299 818,408 338,612 221,851 5,500 142,000,900 59,280,300 17,183,700 2,953,300 4,611,400 834,800 340,300 229,800 5,500 149,043,100 62,138,700 17,618,400 2,500,500 4,589,200 851,500 342,000 238,100 5,500 156,436,400 65,139,200 18,065,400 2,533,700 4,359,800 868,500 343,700 246,500 5,500 164,198,400 68,288,300 18,524,600 2,567,800 4,141,800 885,900 345,400 255,400 5,500 218,631,155 227,440,000 237,327,000 247,998,700 259,213,100 3,689,477 9,610,227 900,000 3,790,500 8,256,100 900,000 3,891,600 7,135,500 900,000 4,033,700 6,130,000 900,000 4,094,000 5,008,800 900,000 14,199,704 12,946,600 11,927,100 11,063,700 10,002,800 232,830,859 240,386,600 249,254,100 259,062,400 269,215,900 218 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds Five Year Forecast Ex p e n d i t u r e s City Treasurer Administrative Services Water Resources Citywide Indirect Cost Allocation Department Indirect Cost Leave Accrual Payments / Parental Leave Operating Impacts Vacation Trade Savings from Vacant Positions Utilities D e b t S e r vi ce 2024 Rev Bond Debt Svc-Sewer 2024 Rev Bond Debt Svc-Water MPC Bonds Debt Service-Sewer MPC Bonds Debt Service-Water A d o p te d 2024/25 Subtotal Subtotal TOTAL OPERATING BUDGET T r a ns f e r s O u t AWT CIP CIP Technology Debt Service Fund Franchise Fees Subtotal 2,407,057 709,908 89,783,309 6,577,491 818,408 554,694 65,997 (1,203,702) 18,273,550 F o r e ca s t 2025/26 2,497,800 736,400 92,807,700 6,906,300 834,900 567,300 66,000 (1,231,400) 18,783,600 F o r e ca s t 2026/27 2,589,300 760,000 94,255,100 7,251,700 851,400 579,800 40,000 66,000 (1,258,400) 19,309,800 F o r e ca s t 2027/28 2,745,300 808,700 96,930,600 7,614,300 868,500 592,600 40,000 66,000 (1,286,100) 19,850,700 F o r e ca s t 2028/29 2,769,600 810,000 98,030,200 7,994,900 885,900 606,400 185,000 66,000 (1,315,800) 20,408,900 117,986,712 121,968,600 124,444,700 128,230,600 130,441,100 3,841,500 2,561,900 7,009,413 15,969,718 8,997,500 5,997,500 7,129,200 16,028,300 8,747,500 11,030,500 7,554,300 15,760,400 10,025,500 14,657,000 8,373,800 15,255,800 11,780,500 14,240,000 7,327,100 12,568,500 29,382,531 38,152,500 43,092,700 48,312,100 45,916,100 147,369,243 160,121,100 167,537,400 176,542,700 176,357,200 3,689,477 59,249,640 1,416,830 4,381,497 9,995,402 3,790,500 54,777,800 2,031,200 3,704,400 10,763,300 3,891,600 57,707,200 766,300 3,304,400 11,597,500 4,033,700 57,657,600 2,521,300 2,801,700 12,468,300 4,094,000 70,313,300 502,900 2,241,100 13,338,600 78,732,846 75,067,200 77,267,000 79,482,600 90,489,900 226,102,089 235,188,300 244,804,400 256,025,300 266,847,100 S o u r ce s O ve r / ( U n d e r ) U s e s 6,728,770 5,198,300 4,449,700 3,037,100 2,368,800 En d i n g F u n d B a l a n ce Debt Service Reserve Operating Contingency Operating Reserve Water & WasteWater Asset Replacement Reserve Water Drought Reserve Water & WasteWater Fund Balance T o t a l En d i n g F u n d B a l a n ce 9,538,125 4,539,124 29,496,679 47,661,000 5,000,000 96,234,928 10,773,175 4,179,903 30,492,150 50,988,000 5,000,000 101,433,228 12,078,025 3,813,728 31,111,175 53,880,000 5,000,000 105,882,928 11,479,025 3,440,353 32,057,650 56,943,000 5,000,000 108,920,028 11,479,025 3,059,528 32,610,275 59,140,000 5,000,000 111,288,828 T o ta l U s e s 219 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds ;%8)6%2(;%8)66)'0%1%8-32*92(77396')7 ;EXIVERH;EXIV6IGPEQEXMSR*YRHW7SYVGIWJSV*=IUYEPQMPPMSR[LMGLMWERMRGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIX8LIWSYVGIWMRGPYHI;EXIV7IVZMGI'LEVKIW;EXIV6IGPEQEXMSR7IVZMGI'LEVKIW2SR4SXEFPI;EXIV 7IVZMGI'LEVKIW1MWGIPPERISYW-RXIVIWX)EVRMRKW-RHMVIGX'SWXW7XSVQ[EXIV*II4VSTIVX]6IRXEP'SRXVMFYXMSRW (SREXMSRWERH 8VERWJIVW-R ;%8)67)6:-')',%6+)7 *=XS*= MRQMPPMSRW ;EXIV7IVZMGI'LEVKIWVIZIRYIMRGPYHIWFEWIJIIWEGGSVHMRK XSQIXIVWM^IERHQSRXLP]ZSPYQIXVMGGLEVKIWFEWIHSRXLI 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able of Contents BUDGET BY FUND | Water and Water Reclamation Funds -28)6)78)%62-2+7 *=XS*= MRQMPPMSRW -RXIVIWXIEVRMRKWEVIKIRIVEXIHSR;EXIVERH;EXIV 6IGPEQEXMSR*YRHWGEWLFEPERGIWXLVSYKLSYXXLI]IEV8LMW VIZIRYIMWEJYRGXMSRSJXLIVIPEXMSRWLMTFIX[IIRXLIEZEMPEFPI GEWLFEPERGIERHMRXIVIWXVEXI8LIGMX]IEVRWMRXIVIWXSR JYRHWXLVSYKLZEVMSYWMRZIWXQIRXZILMGPIWMREGGSVHERGI[MXL %VM^SRE6IZMWIH7XEXYXIWERH'MX]3VHMRERGI8LIGMX]’W 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%'89%0*36)'%78 227 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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able of Contents BUDGET BY FUND | Water and Water Reclamation Funds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able of Contents BUDGET BY FUND | Water and Water Reclamation Funds 6):&32(()&87:';%8)6 *=XS*= MRQMPPMSRW ;EXIV6IZIRYI&SRHWJYRHMRKMWHIVMZIHJVSQETYFPMGZSXI EYXLSVM^MRKXLIYWISJVIZIRYIKIRIVEXIHJVSQ[EXIV VIGPEQEXMSRVEXIWERHJIIWTEMHF]7GSXXWHEPIVIWMHIRXWERH FYWMRIWWIWJSVGETMXEPTVSNIGXW;EXIV6IZIRYI&SRHW VITVIWIRXXLIVITE]QIRXSJFSRHWERHJMWGEPEKIRXJIIW EWWSGMEXIH[MXL[EXIVVIGPEQEXMSRGETMXEPTVSNIGXW WEXIV6IZIRYI&SRHWTE]QIRXWEVIFYHKIXIHJSV QMPPMSRERHEVITPERRIHXSFIMWWYIHMR(IGIQFIV 14'&32(7()&87)6:-')7);)6 *=XS*= MRQMPPMSRW 14'&SRHW(IFX7IVZMGI7I[IVVITVIWIRXWXLIVITE]QIRXSJ 1YRMGMTEP4VSTIVX]'SVTSVEXMSRFSRHWERHJMWGEPEKIRXJIIW EWWSGMEXIH[MXL[EXIVVIGPEQEXMSRGETMXEPTVSNIGXW8LI JYRHMRKMWHIVMZIHJVSQVIZIRYIKIRIVEXIHJVSQ[EXIV VIGPEQEXMSRVEXIWERHJIIWTEMHF]7GSXXWHEPIVIWMHIRXWERH FYWMRIWWIWXSXLI'MX]SJ7GSXXWHEPI1YRMGMTEP4VSTIVX] 'SVTSVEXMSRERSRTVSJMXGSVTSVEXMSRGVIEXIHF]XLIGMX]MR XSJMRERGIXLIGSRWXVYGXMSRSVEGUYMWMXMSRSJGIVXEMR GETMXEPMQTVSZIQIRXTVSNIGXW14'&SRHW(IFX7IVZMGI7I[IV MWFYHKIXIHEXQMPPMSRMR*=EWPMKLXHIGVIEWI JVSQXLI*=EHSTXIHFYHKIXFEWIHSRXLI 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budget for Debt Service Fund is $4.4 million. (IFX7IVZMGI6IWIVZI[EW TVSNIGXIHXSFI^IVSMR*=EW7I[IV6IZIRYI&SRHW WYRWIXMR*=2I[;EXIVERH7I[IVVIZIRYIFSRHW EVITPERRIHXSFIMWWYIHMR(IGIQFIV *36)'%78 232 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds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’WJMRERGMEP GSRHMXMSRERHTVSZMHIJSVYRI\TIGXIHIGSRSQMGGLEPPIRKIWE7TIGMEP'SRXVEGXYEP*YRH&EPERGIHIWMKREXMSRERHER9RVIWIVZIH 9RHIWMKREXIH*YRH&EPERGI+VS[XLSJIRHMRKJYRHFEPERGISGGYVW[LIRWSYVGIWI\GIIHYWIW)RHMRKJYRHFEPERGIWEVIWMQMPEVXS EGSQTER]’WRIXIUYMX] EWWIXWPIWWPMEFMPMXMIW 4VYHIRXJMWGEPQEREKIQIRXHMGXEXIWJYRHFEPERGIWWLSYPHSRP]FIYWIHJSV RSRVIGYVVMRK RSRSTIVEXMSREP YWIW3RGIJYRHFEPERGIWEVIWTIRXXLI]EVISRP]VITPIRMWLIHF]JYXYVI]IEVWSYVGIWMRI\GIWWSJ YWIW8LIGMX]’WFYHKIXTPERRMRKFSRHMRHIRXYVIERHEHSTXIHJMRERGMEPTSPMGMIWGEPPJSVXLIIWXEFPMWLQIRXSJVIWIVZIWEWTEVXSJXLI VIWSYVGIEPPSGEXMSRPMQMXWIXXMRKTVSGIWW8LMWTVSGIWWEPPS[WXLIGMX]XSWIXEWMHIWEZMRKWFIJSVIEPPSGEXIHSVWTIRXEWFYHKIXIH YWIW8LIWTIGMJMGQEOIYTSJXLIGMX]’W;EXIVERH;EXIV6IGPEQEXMSR*YRHWFEPERGIMWEWJSPPS[W *36)'%78 &9(+)8 %'89%0*36)'%78 233 Table of Contents BUDGET BY FUND | Water and Water Reclamation Funds ()&87)6:-')6)7)6:) *=XS*= MRQMPPMSRW (IFX7IVZMGI6IWIVZIMWVIUYMVIHTIVXLIXIVQSJXLIVIZIRYI FSRHMRHIRXYVIXSIRWYVIXLEXJYRHWEVIWIXEWMHIEW GSPPEXIVEPJSVXLI&SRHWHIFXWIVZMGITE]QIRXWFY 2024/25 budget for Debt Service Reserve is $9.5 million. (IFX7IVZMGI 6IWIVZIwas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able of Contents BUDGET BY FUND | Water and Water Reclamation Funds ;%8)6 ;%78);%8)6%77)86)40%')1)28 6)7)6:) *=XS*= MRQMPPMSRW ;EXIV ;EWXI[EXIV%WWIX6ITPEGIQIRX6IWIVZISJ QMPPMSRMWTVSNIGXIHJSVXLIIRHSJ*=8LMWVIWIVZIMW VIUYMVIHTIVXLIXIVQSJXLIVIZIRYIFSRHMRHIRXYVIXSIRWYVI XLEXJYRHWEVIWIXEWMHIXSTVIWIVZIXLIEWWIXW[LMGLMRXYVR EVIXLIGSPPEXIVEPJSVXLI7I[IV6IZIRYI&SRHW8LIVIWLEPPFI HITSWMXIHEREQSYRXIUYEPXSEXPIEWXX[STIVGIRXSJXLI VIZIRYIWVIGIMZIHHYVMRKXLI]IEVMRXSXLIVIWIVZIYRXMPWYGL XMQIEWXLIVIWIVZIIUYEPWX[STIVGIRXSJXLIZEPYISJXSXEP XERKMFPIEWWIXW8LIVIWIVZIQE]FIYWIHMRXMQIWSJYRYWYEP GMVGYQWXERGIWJSVVITPEGIQIRXSVI\XIRWMSRSJXLIEWWIXW ;%8)6(639+,86)7)6:) *=XS*= MRQMPPMSRW 8LI;EXIV(VSYKLX6IWIVZIIRHMRKJYRHFEPERGIMWMRGVIEWIH XSQMPPMSRJSV*=MRERXMGMTEXMSRSJERSRKSMRK HVSYKLX8LI'SPSVEHS6MZIVFEWMRMWMRE8MIV7LSVXEKIJSV GEPIRHEV]IEV8LIERRSYRGIQIRXGEQIJVSQXLI&YVIEY SJ6IGPEQEXMSRFEWIHSRTVSNIGXMSRWJSV0EOI1IEH[EXIV PIZIPW8LIWLSVXEKIHIGPEVEXMSRQIERWVIHYGIH[EXIVJSV WSQIWXEOILSPHIVW[LSVIGIMZI[EXIVJVSQXLI'IRXVEP%VM^SRE 4VSNIGX '%4 XLSWIWXEOILSPHIVW[LSVIGIMZIETSVXMSRSJ XLIMV[EXIVJVSQ'%4MRGPYHIQYRMGMTEPMXMIWEKVMGYPXYVIXVMFIW ERHSXLIVW8LMW;EXIV(VSYKLX6IWIVZI[MPPIRWYVIXLIGMX]MW TVITEVIHJSVYRI\TIGXIHGSWXMRGVIEWIWVIPEXIH[EXIV TYVGLEWIWERHSXLIVYRJSVIWIIRI\TIRWIW ;%8)6 ;%78);%8)6*92(&%0%2') *=XS*= MRQMPPMSRW ;EXIV ;EWXI;EXIV*YRH&EPERGIVITVIWIRXWXLIGYQYPEXMZI ;EXIVERH;EXIV6IGPEQEXMSR*YRHWWSYVGIWRSXHIWMKREXIH JSVEWTIGMJMGTYVTSWI8LIFEPERGIVITVIWIRXWER EGGYQYPEXMSRSJSRIXMQIWSYVGIWERHMXMWQSWXETTVSTVMEXIP] YWIHJSVSRIXMQIYWIW9RHIVTVYHIRXJMWGEPQEREKIQIRX TVEGXMGIWXLMWEQSYRXWLSYPHRSXFIYWIHXSJYRHRI[SV I\TERHIHTVSKVEQW[MXLSRKSMRKSTIVEXMRKYWIW *36)'%78 &9(+)8 %'89%0*36)'%78 235 Table of Contents FY 2024/25 Proposed Budget 236 Table of Contents BUDGET BY FUND | Solid Waste Fund BUDGET BY FUND | Solid Waste Fund Overview FUND PURPOSE The Solid Waste 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) $36.8 Million Solid Waste Fund Uses (% to Total) $39.1 Million Rounding differences may occur. 237 Table of Contents BUDGET BY FUND | Solid Waste Fund Summary Actual 20 22 /23 Beginning Fund Balance Adopted 20 23 /24 Forecast 20 23 /24 Adopted 20 24 /25 - 572,825 527,825 - - 600,000 600,000 1,000,000 4,361,640 6,147,140 10 , 50 8, 7 80 4,397,569 4,318,258 9 , 88 8, 65 2 4,377,734 5,191,721 10, 6 97 , 28 0 4,693,091 4,119,759 9, 8 12, 8 50 27,102,869 3,976,017 149,016 935 31 , 228, 837 28,878,985 4,046,242 255,503 33, 180 , 730 28,878,985 4,046,242 255,503 33, 180, 730 31,832,858 4,635,583 339,971 3 6, 808, 412 Total Sources 31 , 22 8, 8 37 33 , 180 , 73 0 3 3, 1 80 , 73 0 3 6, 80 8, 4 12 Expenditures Public Works 26,846,489 29,009,258 26,418,851 30,715,551 City Treasurer Administrative Services Citywide Indirect Cost Allocation Class and Comp Study (c) 930,625 8,000 1,399,781 - 1,031,593 8,000 1,785,696 277,211 1,008,203 8,000 1,785,696 - 1,002,905 8,000 2,037,592 - - - 1,984,001 - 29 , 184, 895 46,880 (325,000) 43,561 31, 877 , 199 21,534 26,000 34,991 31, 287, 276 47,939 (332,345) 34,238 3 3, 513, 880 - 430,715 - - Debt Service Reserve(a) Operating Contingency(b) Operating Reserve Capital Replacement Reserve Total Beginning Fund Balance Revenues Solid Waste Service Charges - Residential Solid Waste Service Charges - Commercial Interest Earnings Miscellaneous Fuel and Maint and Repair (d) Leave Accrual Payments / Parental Leave Post Employment Medical Savings from Vacant Positions Utilities Vacation Trade Debt Service Future Issuance Solid Waste(e) Subtotal Subtotal - 430 , 715 - - TOTAL OPERATING BUDGET Subtotal 29,184,895 32,307,914 31,287,276 33,513,880 Transfers Out CIP CIP Technology General Fund Loan Repayment 1,645,807 209,634 - 2,566,007 211,877 - 2,566,007 211,877 - 5,442,219 135,141 - 1 , 855, 441 2, 777 , 884 2, 777, 884 5, 577, 360 31 , 04 0, 3 36 35 , 085 , 79 8 3 4, 0 65 , 16 0 3 9, 09 1, 2 40 18 8, 5 01 ( 1 , 90 5, 0 68) (8 8 4 , 4 3 0 ) (2 , 2 8 2 , 8 2 8 ) - 572,825 572,825 - - 600,000 600,000 707,216 Subtotal Total Uses Sources Over/(Under) Uses Ending Fund Balance Debt Service Reserve(a) (b) Operating Contingency Operating Reserve 4,377,734 4,169,593 4,693,091 5,027,082 Capital Replacement Reserve 6,319,546 2,641,166 3,946,934 1,795,724 1 0, 6 97 , 28 0 7, 9 83, 5 84 9 , 81 2, 8 50 7 , 530 , 02 2 Total Ending Fund Balance (a) Debt Service Reserve added in FY 2023/24 for a formerly planned debt issuance per Financial Policy 2.06. Funding will now be provided via a $17.8 million loan from the General Fund in order to reduce debt issuance costs. (b) Operating Contingency was added in FY 2023/24 to be used for potential recycling market volatility, transfer fee increases, and landfill increases. (c) Anticipated cost to implement the Classification and Compensation Study recommendations. (d) Budget adopted at the division level. At the start of the fiscal year the budget moves to a non-divisional account and then is transferred back to the divisions monthly as expenses occur. (e) FY 2023/24 Future Debt Issuance for the Solid Waste Transfer Station capital project has been shifted to a $17.8 million loan from the General Fund in order to reduce debt issuance costs. 238 Table of Contents BUDGET BY FUND | Solid Waste Fund Five-Year Financial Forecast Adopted 20 24 /25 Beginning Fund Balance Debt Service Reserve Operating Contingency Operating Reserve Capital Replacement Reserve Total Beginning Fund Balance Revenues Solid Waste Service Charges - Residential Solid Waste Service Charges - Commercial Interest Earnings Miscellaneous Subtotal Total Sources Forecast 20 25 /26 Forecast 20 26 /27 - - 1,000,000 4,693,091 4,119,759 9 , 81 2, 8 50 Forecast 20 27 /28 Forecast 20 28 /29 - - - 1,000,000 1,000,000 1,000,000 1,000,000 5,027,082 1,502,940 7 , 53 0, 02 2 5,237,130 2,820,492 9, 0 57 , 62 2 5,521,995 4,162,927 1 0, 6 84, 9 22 5,808,525 5,906,897 12 , 71 5, 4 22 31,832,858 4,635,583 339,971 36, 808, 41 2 33,593,400 4,855,300 359,000 38, 807, 700 35,453,900 5,096,300 357,100 4 0 ,9 0 7 , 3 0 0 37,417,300 5,363,900 339,200 43, 120, 4 00 39,489,100 5,663,100 322,300 4 5 , 4 7 4 ,5 0 0 36 , 80 8, 4 12 38 , 807 , 70 0 4 0, 9 07 , 30 0 4 3, 12 0, 4 00 45 , 47 4, 5 00 30,715,551 32,042,700 33,865,700 35,676,200 36,131,800 1,002,905 8,000 2,037,592 - 1,041,500 8,400 2,078,300 - 1,082,100 8,800 2,119,900 - 1,145,400 9,300 2,162,300 - 1,157,500 9,700 2,205,600 - Expenditures Public Works(a) City Treasurer Administrative Services Citywide Indirect Cost Allocation Class and Comp Study - - - - - Subtotal 47,939 (332,345) 34,238 33, 513, 88 0 49,100 (340,000) 34,200 34, 914, 200 50,100 (347,500) 34,200 3 6 ,8 1 3 , 3 0 0 51,200 (355,100) 34,200 38, 723, 5 00 52,400 (363,300) 34,200 3 9 , 2 2 7 ,9 0 0 - - - - - Subtotal - - - - - TOTAL OPERATING BUDGET 33,513,880 34,914,200 36,813,300 38,723,500 39,227,900 Transfers Out CIP CIP Technology General Fund Loan Repayment(b) 5,442,219 135,141 - 200,000 79,000 2,086,900 280,000 99,800 2,086,900 140,000 139,500 2,086,900 255,000 187,700 2,086,900 5, 577, 36 0 2, 365, 900 2 ,4 6 6 , 7 0 0 2, 366, 4 00 2, 529, 6 00 Total Uses 39 , 09 1, 2 40 37 , 280 , 10 0 3 9, 2 80 , 00 0 4 1, 08 9, 9 00 41 , 75 7, 5 00 Sources Over/(Under) Uses (2 , 2 8 2 , 8 2 8 ) 1, 5 27 , 60 0 1, 6 27, 3 00 2 , 03 0, 5 00 3, 7 17 , 00 0 Fuel and Maint and Repair Leave Accrual Payments / Parental Leave Post Employment Medical Savings from Vacant Positions Utilities Vacation Trade Debt Service Future Issuance Solid Waste(b) Subtotal Ending Fund Balance Debt Service Reserve - - - - - Operating Contingency 707,216 1,000,000 1,000,000 1,000,000 1,000,000 5,884,185 Operating Reserve 5,027,082 5,237,130 5,521,995 5,808,525 9,548,237 Capital Replacement Reserve 1,795,724 2,820,492 4,162,927 5,906,897 16 , 43 2, 4 22 7, 5 30 , 02 2 9, 0 57, 6 22 10 , 68 4, 9 22 12 , 715 , 42 2 Total Ending Fund Balance (a) In FY 2026/27 and FY 2027/28, two $500,000 expenditures are included for equipment purchases. (b) FY 2023/24 Future Debt Issuance for the Solid Waste Transfer Station capital project has been shifted to a $17.8 million loan from the General Fund in order to reduce debt issuance costs. 239 Table of Contents BUDGET BY FUND | Solid Waste Fund 730-(;%78)*92(7396')7 7SPMH;EWXI*YRHWSYVGIWJSV*=IUYEPQMPPMSR[LMGLMWERMRGVIEWISJQMPPMSRJVSQXLI*=EHSTXIH FYHKIX8LIWSYVGIWMRGPYHI7SPMH;EWXI7IVZMGI'LEVKIWJSVFSXLVIWMHIRXMEPERHGSQQIVGMEPGYWXSQIVW-RXIVIWX)EVRMRKWERH SGGEWMSREPP]1MWGIPPERISYW6IZIRYIW 730-(;%78)7)6:-')',%6+)76)7-()28-%0 *=XS*= MRQMPPMSRW 7SPMH;EWXI7IVZMGI'LEVKIW– 6IWMHIRXMEPMRGPYHIWWSPMH [EWXIWIVZMGIGLEVKIWERHVIG]GPIHQEXIVMEPJIIWJSV VIWMHIRXMEPGYWXSQIVW6IWMHIRXMEPGYWXSQIVWEVIFMPPIHEJPEX JIITIVQSRXLERHXLIJIIWEVIVIZMI[IHERRYEPP]XSHIXIVQMRI MJXLI]GSZIVXLIGSWXWSJXLIWIVZMGIWTVSZMHIH3XLIV7SPMH ;EWXI7IVZMGI'LEVKIW6IWMHIRXMEPVIZIRYIMRGPYHIW VIWMHIRXMEPVIJYWIERHVIG]GPIGSRXEMRIVGLEVKIWMRMXMEXMSR GLEVKIWERHPEXIGLEVKIW8LI*=EHSTXIHFYHKIXMW QMPPMSRERMRGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIXMWHYITVMQEVMP]XSMRGVIEWIWMRPERHJMPP HMWTSWEPGSWXWVIG]GPMRKTVSGIWWMRKJIIERHMRGVIEWIWMR PERHJMPPXMTTMRKGSWXW 730-(;%78)7)6:-')',%6+)7'311)6'-%0 *=XS*= MRQMPPMSRW 7SPMH;EWXI7IVZMGI'LEVKIW– 'SQQIVGMEPMRGPYHIWSPMH [EWXIWIVZMGIGLEVKIWJSVGSQQIVGMEPGYWXSQIVW'SQQIVGMEP GYWXSQIVWEVIGLEVKIHFEWIHYTSRXLIWM^ISJXLIGSRXEMRIV ERHXLIRYQFIVSJTMGOYTWTIVQSRXL3XLIV7SPMH;EWXI 7IVZMGI'LEVKIW'SQQIVGMEPVIZIRYIMRGPYHIWGSQQIVGMEP VSPPSJJGLEVKIWMRMXMEXMSRGLEVKIWPEXIGLEVKIWERH GSQQIVGMEPVIG]GPIHQEXIVMEPWJIIW*IIWERHGLEVKIWEVI VIZMI[IHERRYEPP]XSHIXIVQMRIMJXLI]GSZIVXLIGSWXWSJXLI WIVZMGIWTVSZMHIH8LI*=EHSTXIHFYHKIXMW QMPPMSRERMRGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIX *36)'%78 240 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Solid Waste Fund -28)6)78)%62-2+7 *=XS*= MRQMPPMSRW -RXIVIWX)EVRMRKWVIZIRYIEHSTXIHJSV*=MW QMPPMSRERMRGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIX-RXIVIWX)EVRMRKWEVIKIRIVEXIHSRXLI7SPMH ;EWXI*YRHGEWLFEPERGIXLVSYKLSYXXLI]IEV8LMWVIZIRYIMW EJYRGXMSRSJXLIVIPEXMSRWLMTFIX[IIRXLIEZEMPEFPIGEWL FEPERGIERHMRXIVIWXVEXIW8LIGMX]IEVRWMRXIVIWXSRJYRHW XLVSYKLZEVMSYWMRZIWXQIRXZILMGPIWMREGGSVHERGI[MXL %VM^SRE6IZMWIH7XEXYXIWERH'MX]3VHMRERGI8LIGMX]’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able of Contents BUDGET BY FUND | Solid Waste Fund 49&0-';36/7 *=XS*= MRQMPPMSRW 4YFPMG;SVOWTVSZMHIWWSPMH[EWXIGSPPIGXMSRXVERWTSVXEXMSR HMWTSWEPGSQTPMERGIERHIHYGEXMSR8LIKSEPMWXSTVSZMHI XLIWIWIVZMGIWEXXLIPS[IWXTVEGXMGEPVEXI[MXLXLILMKLIWX TSWWMFPIGYWXSQIVWEXMWJEGXMSR8LI*=EHSTXIH FYHKIXSJQMPPMSRMWQMPPMSRQSVIXLERXLI*= EHSTXIHFYHKIXHYIXSXLIMRGVIEWIMRGSWXW EWWSGMEXIH[MXLPERHJMPPHMWTSWEPGSWXWVIG]GPMRKTVSGIWWMRK JIIERHMRGVIEWIWMRPERHJMPPXMTTMRKGSWXW%PWSGSRXVMFYXMRKXS XLIMRGVIEWIMWE*=TE]JSVTIVJSVQERGIQEVOIX EHNYWXQIRXWERHMQTPIQIRXEXMSRSJEGPEWWMJMGEXMSRERH GSQTIRWEXMSRWXYH]ETTPMIHXSIPMKMFPIIQTPS]IIW '-8=86)%796)6 *=XS*= MRQMPPMSRW )\TIRWIWVIPEXIHXSYXMPMX]FMPPMRKWIVZMGIWVIQMXXERGI TVSGIWWMRKVIZIRYIVIGSZIV]ERHWSPMH[EWXIVIPEXIH TE]QIRXWEVILERHPIHF]XLI'MX]8VIEWYVIV8LIWXEJJ[LS TIVJSVQXLIWIWIVZMGIWLEZIEWIXTIVGIRXEKISJXLIMV TIVWSRRIPWIVZMGIWERHVIPEXIHI\TIRWIWEPPSGEXIHXLI7SPMH ;EWXI*YRH8LI*=EHSTXIHFYHKIXMWQMPPMSR [LMGLVIQEMRWVIPEXMZIP]JPEX[LIRGSQTEVIHXSXLI*= EHSTXIHFYHKIX %(1-2-786%8-:)7)6:-')7 *=XS*= 8LMWFYHKIXMWYWIHJSVWSJX[EVI[LMGLMWTEVXMEPP]JYRHIHF] XLI7SPMH;EWXI*YRHERHEHQMRMWXIVIHF]XLI-RJSVQEXMSR 8IGLRSPSK] -8 (ITEVXQIRX8LI*=%HQMRMWXVEXMZI 7IVZMGIWEHSTXIHFYHKIXMW *36)'%78 242 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Solid Waste Fund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’ FYHKIXERHEGXYEPWXLEXEVIHMWTPE]IHMRXLIKVETLWEVIJSV GSQTEVMWSRTYVTSWIWSRP]EWXLII\TIRHMXYVIWEVIEGXYEPP]VIGSVHIHERHVITSVXIHEWTEVXSJXLIETTPMGEFPIHMZMWMSR’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able of Contents BUDGET BY FUND | Solid Waste Fund *9)0%2(1%-28%2(6)4%-6 *=XS*= MRQMPPMSRW *YIPERH1EMRXERH6ITEMVMWFYHKIXIHEXXLIHMZMWMSRPIZIPERH XLIREXXLIFIKMRRMRKSJXLIJMWGEP]IEVEVIQSZIHXSEQEGVS EGGSYRX&YHKIXMRKSREQEGVSPIZIPMWEXSSPYWIHF]XLI FYHKIXHITEVXQIRXXSQSVIEGGYVEXIP]XVEGOLS[I\TIRWIWEVI SGGYVVMRKF]IEGLHMZMWMSR*YIPERH1EMRXERH6ITEMVMRGPYHIW I\TIRWIWVIPEXIHXSZILMGPIERHIUYMTQIRXVITEMVWERHJYIP YWEKI 0)%:)%''69%04%=1)2874%6)28%00)%:) *=XS*= 0IEZI%GGVYEP4E]QIRXWMRGPYHIEGGYQYPEXIHQIHMGEPERHSV ZEGEXMSRPIEZITEMHSYXEXXLIXMQISJVIXMVIQIRXSVWITEVEXMSR JVSQXLIGMX]4EVIRXEP0IEZIEPPS[WJSVEJSYV[IIOTEMHPIEZI JSVRI[TEVIRXW8LIXSXEP*=0IEZI%GGVYEP 4E]QIRXW4EVIRXEP0IEZIFYHKIXMW[LMGLMRGPYHIW FYHKIXIHJSVQIHMGEPPIEZIEGGVYEPTE]SYXW FYHKIXIHJSVZEGEXMSREGGVYEPTE]SYXWERHFYHKIXIH JSVTEVIRXEPPIEZI 7%:-2+7*631:%'%28437-8-327 *=XS*= MRQMPPMSRW 8LIEQSYRXSJWEZMRKWEGLMIZIHJVSQZEGERXTSWMXMSRWJSV*= MWIWXMQEXIHEX  QMPPMSR *36)'%78 244 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Solid Waste Fund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able of Contents BUDGET BY FUND | Solid Waste Fund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able of Contents BUDGET BY FUND | Solid Waste Fund '-48)',2303+= *=XS*= '-48IGLRSPSK]MRGPYHIWXSLIPTGSZIVXLI7SPMH ;EWXI*YRH WTSVXMSRSJGMX][MHIXIGLRSPSK]GETMXEPTVSNIGXW HYVMRK*= +)2)6%0*92(03%26)4%=1)28 *=XS*= MRQMPPMSRW +IRIVEP*YRH0SER6ITE]QIRXMWEWLMJXJVSQ*YXYVI(IFX -WWYERGIJSVXLI7SPMH;EWXI8VERWJIV7XEXMSRGETMXEPTVSNIGXXS EQMPPMSRHMVIGXPSERJVSQXLI+IRIVEP*YRHMRSVHIVXS VIHYGIHIFXMWWYERGIGSWXW8LIPSER[MPPFIKMRXSFIVITEMHMR *=MRGPYHMRKEXLVIITIVGIRXERRYEPMRXIVIWXVEXI 730-(;%78)*92()2(-2+&%0%2') *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]’W7SPMH;EWXI*YRHIRHMRKFEPERGIMWRSXIHMRXLIJSPPS[MRK *36)'%78 &9(+)8 %'89%0*36)'%78 247 Table of Contents BUDGET BY FUND | Solid Waste Fund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able of Contents BUDGET BY FUND | Solid Waste Fund '%4-8%06)40%')1)286)7)6:)*92(&%0%2') *=XS*= MRQMPPMSRW 8LI*='ETMXEP6ITPEGIQIRX6IWIVZI*YRH&EPERGIMW QMPPMSR8LMWFEPERGIVITVIWIRXWEREGGYQYPEXMSRSJSRI XMQIWSYVGIWERHMXMWQSWXETTVSTVMEXIP]YWIHJSVSRIXMQI YWIW9RHIVTVYHIRXJMWGEPQEREKIQIRXTVEGXMGIWXLMWEQSYRX WLSYPHRSXFIYWIHXSJYRHRI[SVI\TERHIHTVSKVEQW[MXL SRKSMRKSTIVEXMRKI\TIRWIW *36)'%78 &9(+)8 %'89%0*36)'%78 249 Table of Contents FY 2024/25 Proposed Budget 250 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) $10.4 Million Aviation Fund Uses (% to Total) $9.2 Million Rounding differences may occur. 251 Table of Contents BUDGET BY FUND | Aviation Fund Summary A c t ua l 2 0 2 2 /2 3 A d o p te d 2 0 2 3 /2 4 F o r e c a st 2 0 2 3 /2 4 A d o p te d 2 0 2 4 /2 5 1,196,500 2,199,611 1,132,600 2,303,409 6,832,120 430,561 960,739 5,220,800 922,308 2,806,413 10,340,821 430,561 1,396,300 5,220,800 897,747 3,618,619 11,564,027 430,675 1,890,800 11,973,129 959,499 15,254,103 9,154,141 134,640 260,385 182,624 905,993 9,174,872 162,396 223,000 188,586 - 9,174,872 162,396 223,000 188,586 - 8,958,864 448,314 233,000 191,458 - 10,637,783 9,748,854 9,748,854 9,831,636 8,940 695,358 - 648,600 599,100 704,298 - 648,600 599,100 11,342,081 9,748,854 10,397,454 10,430,736 3,053,036 431,738 106,213 - 3,195,174 419,300 127,452 47,878 163,493 4,000 (40,000) 3,096,652 419,300 127,452 44,872 66,105 83,617 - 3,373,715 440,265 169,051 13,572 1,541 (40,000) S ub t o t a l 3,590,987 3,917,297 3,837,998 3,958,144 1,719,244 1,722,244 1,722,244 1,722,744 S ub t o t a l 1,719,244 1,722,244 1,722,244 1,722,744 5,310,231 5,639,541 5,560,242 5,680,888 593,304 11,281 695,358 461,635 36,901 - 461,635 36,901 648,600 2,820,439 76,038 599,100 1,299,943 498,536 1,147,136 3,495,577 T o ta l Use s 6,610,174 6,138,077 6,707,378 9,176,465 S o ur c e s O v e r / ( U nd e r ) U s e s 4,731,907 3,610,777 3,690,076 1,254,271 Ending Fund Balance Debt Service Reserve Fleet Replacement Reserve Future Capital Replacement Operating Reserve Aviation Fund Balance Total Ending Fund Balance 430,561 1,396,300 5,220,800 897,747 3,618,619 11,564,027 430,675 1,890,800 5,442,139 979,324 5,208,660 13,951,598 430,675 1,890,800 11,973,129 959,499 15,254,103 430,175 3,755,000 11,333,663 989,536 16,508,374 B e g i nni ng F und B a l a nc e Debt Service Reserve Fleet Replacement Reserve Future Capital Replacement Operating Reserve Aviation Fund Balance T o t a l B e g i nni ng F und B a l a nc e R e v e nue s Airport Fees Interest Earnings Jet Fuel Property Rental Miscellaneous (a) (b) S ub t o t a l T r a ns f e r s I n CIP Debt Svc MPC Bonds (c) S ub t o t a l T o t a l S o ur c e s Expenditures Community and Economic Development Citywide Direct Cost Allocation Citywide Indirect Cost Allocation Class and Comp Study (d) Fuel and Maint and Repair (e) Leave Accrual Payments / Parental Leave Utilities (e) Vacation Trade Savings from Vacant Positions De b t S e r v ic e MPC Bonds Debt Svc - Airport TOTAL OPERATING BUDGET T r a ns f e r s O ut CIP CIP Technology Debt Svc MPC Bonds(c) S ub t o t a l a) Increase in Interest Earnings is due to rising interest rates. Adjustment to align with fund balance calculation used in the Annual Financial Report. (c) Intra-funds transfer for debt service. (d) Anticipated cost to implement the Classification and Compensation Study recommendations. (e) Budget adopted at the division level. At the start of the fiscal year the budget will move to a non-divisional account and then be transferred back to the division monthly as expenses occur. (b) 252 Table of Contents BUDGET BY FUND | Aviation Fund Five-Year Financial Forecast A d o p te d 2 0 2 4 /2 5 F o r e c a st 2 0 2 5 /2 6 F o r e c a st 2 0 2 6 /2 7 F o r e c a st 2 0 2 7 /2 8 F o r e c a st 2 0 2 8 /2 9 B e g i nni ng F und B a l a nc e Debt Service Reserve Fleet Replacement Reserve Future Capital Replacement Operating Reserve Aviation Fund Balance T o t a l B e g i nni ng F und B a l a nc e 430,675 1,890,800 11,973,129 959,499 15,254,103 430,175 3,755,000 11,333,663 989,536 16,508,374 430,300 3,755,000 14,936,674 1,004,700 20,126,674 429,750 3,755,000 18,382,899 1,039,225 23,606,874 429,750 3,755,000 21,531,474 1,093,150 26,809,374 R e v e nue s Airport Fees Interest Earnings Jet Fuel Property Rental Miscellaneous 8,958,864 448,314 233,000 191,458 - 9,026,000 470,900 235,300 193,200 - 9,115,800 467,200 237,700 195,200 - 9,206,600 443,900 240,100 197,100 - 9,298,600 421,700 242,500 198,900 - S ub t o t a l 9,831,636 9,925,400 10,015,900 10,087,700 10,161,700 599,100 547,100 492,600 435,500 375,400 S ub t o t a l 599,100 547,100 492,600 435,500 375,400 10,430,736 10,472,500 10,508,500 10,523,200 10,537,100 3,373,715 440,265 169,051 13,572 1,541 (40,000) 3,403,600 462,300 177,500 13,900 1,500 (40,000) 3,509,400 485,400 186,400 14,200 1,500 (40,000) 3,691,200 509,700 195,700 14,500 1,500 (40,000) 3,730,100 205,500 14,800 1,500 (40,000) S ub t o t a l 3,958,144 4,018,800 4,156,900 4,372,600 3,911,900 1,722,744 1,720,700 1,721,200 1,719,000 1,719,000 S ub t o t a l 1,722,744 1,720,700 1,721,200 1,719,000 1,719,000 5,680,888 5,739,500 5,878,100 6,091,600 5,630,900 2,820,439 76,038 599,100 514,900 52,700 547,100 600,700 56,900 492,600 773,800 19,800 435,500 1,044,300 35,400 375,400 3,495,577 1,114,700 1,150,200 1,229,100 1,455,100 T o ta l Use s 9,176,465 6,854,200 7,028,300 7,320,700 7,086,000 S o ur c e s O v e r / ( U nd e r ) U s e s 1,254,271 3,618,300 3,480,200 3,202,500 3,451,100 Ending Fund Balance Debt Service Reserve Fleet Replacement Reserve Future Capital Replacement Operating Reserve Aviation Fund Balance Total Ending Fund Balance 430,175 3,755,000 11,333,663 989,536 16,508,374 430,300 3,755,000 14,936,674 1,004,700 20,126,674 429,750 3,755,000 18,382,899 1,039,225 23,606,874 429,750 3,755,000 21,531,474 1,093,150 26,809,374 429,750 3,755,000 25,097,749 977,975 30,260,474 T r a ns f e r s I n CIP Debt Svc MPC Bonds(a) T o t a l S o ur c e s Expenditures Community and Economic Development Citywide Direct Cost Allocation Citywide Indirect Cost Allocation Class and Comp Study Fuel and Maint and Repair Leave Accrual Payments / Parental Leave Utilities Vacation Trade Savings from Vacant Positions De b t S e r v ic e MPC Bonds Debt Svc - Airport TOTAL OPERATING BUDGET T r a ns f e r s O ut CIP CIP Technology Debt Svc MPC Bonds(a) (a) S ub t o t a l Intra-funds transfer for debt service. 253 Table of Contents BUDGET BY FUND | Aviation Fund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’WMRZIWXQIRXTSPMG] WXVIWWIWWEJIX]EFSZI]MIPH-RXIVIWX)EVRMRKWMWFYHKIXIHEX QMPPMSRMR*= *36)'%78 254 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Aviation Fund .)8*9)0 *=XS*= MRQMPPMSRW %NIXJYIPXE\SJGIRXWMWGLEVKIHXSIZIV]KEPPSRSJJYIP TYVGLEWIHEXXLIEMVTSVX8LI*=.IX*YIPEHSTXIH FYHKIXMWQMPPMSR[LMGLVIQEMRWVIPEXMZIP]JPEX[LIR GSQTEVIHXSXLI*=EHSTXIHFYHKIX 4634)68=6)28%0 *=XS*= MRQMPPMSRW 4VSTIVX]6IRXEPMRGPYHIWXLIERRYEPQMPPMSREQSVXM^EXMSR TE]QIRXSJE]IEVPERHPIEWIJSVXLIGSRWXVYGXMSRERH STIVEXMSRSJETEVOERHVMHIJEGMPMX]EXXLIEMVTSVXXLEXWYRWIXW MREW[IPPEWXLIVIRXSJE[IPPWMXIVEHMSWLSTERHEJMVI WXEXMSRQEREKIHF]SXLIVGMX]HMZMWMSRW8LI*= EHSTXIHFYHKIXJSV4VSTIVX]6IRXEPMWQMPPMSR[LMGL VIQEMRWVIPEXMZIP]JPEXJVSQXLI*=EHSTXIHFYHKIX 86%27*)67-2 8VERWJIVW-RMWXLIEYXLSVM^IHQSZIQIRXSJGEWLSVSXLIVVIWSYVGIWJVSQSXLIVJYRHWERHSVGETMXEPTVSNIGXW *36)'%78 &9(+)8 %'89%0*36)'%78 255 Table of Contents BUDGET BY FUND | Aviation Fund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able of Contents BUDGET BY FUND | Aviation Fund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’WMRHMVIGXGSWXWEVIEPPSGEXIHXSXLI)RXIVTVMWI *YRHWFEWIHSRVIPEXMZIFIRIJMXWVIGIMZIH8LIGMX][MHI MRHMVIGXGSWXEPPSGEXMSRJSVXLI*=EHSTXIHFYHKIXMW QMPPMSR[LMGLMWQMPPMSRLMKLIVXLERXLI*= EHSTXIHFYHKIX *36)'%78 &9(+)8 %'89%0*36)'%78 257 Table of Contents BUDGET BY FUND | Aviation Fund ()&87)6:-') (IFX7IVZMGIMWXLITE]QIRXSJTVMRGMTEPMRXIVIWXERHVIPEXIHWIVZMGIGLEVKIWSRSFPMKEXMSRWVIWYPXMRKJVSQXLIMWWYERGISJFSRHW 14'&32(7()&87:'%-64368 *=XS*= MRQMPPMSRW 'SRXVEGXW4E]EFPIVITVIWIRXWXLIVITE]QIRXSJ1YRMGMTEP 4VSTIVX]'SVTSVEXMSR 14' FSRHWEPSRK[MXLXLIETTPMGEFPI ERRYEPJMWGEPEKIRXJIIW8LI*=EHSTXIHFYHKIXMW QMPPMSR8LIFSRHW[IVIYWIHJSVXLI%MVTSVX8IVQMREP %VIE6IHIZIPSTQIRXGETMXEPTVSNIGX 232(-:-7-32%097)7 2SR(MZMWMSREP9WIWEVIMXIQWXLEX[IVIFYHKIXIHMRGMX][MHIQEGVSPIZIPLSPHMRKEGGSYRXW%WI\TIRHMXYVIWSGGYVMRXLIETTPMGEFPI HMZMWMSRWFYHKIXXVERWJIVWEVIGSQTPIXIHXSQSZIXLIRIIHIHFYHKIXJVSQXLIQEGVSPIZIPLSPHMRKEGGSYRXWXSXLIVIWTIGXMZI HMZMWMSRW8LIVIJSVIXLI*=]IEVIRHJSVIGEWXERHTVMSV]IEVW’ FYHKIXERHEGXYEPWXLEXEVIHMWTPE]IHMRXLIKVETLWEVIJSV GSQTEVMWSRTYVTSWIWSRP]EWXLII\TIRHMXYVIWEVIEGXYEPP]VIGSVHIHERHVITSVXIHEWTEVXSJXLIETTPMGEFPIHMZMWMSR’WYWIW1SWX RSRHMZMWMSREPYWIWEVIMRMXMEPP]TPEGIHMRXSXLIHMZMWMSRWMRWXIEHSJEXEQEGVSPIZIP8LIRQSZMRKXLIFYHKIXXSEQEGVSPIZIP LSPHMRKEGGSYRXEXXLIFIKMRRMRKSJXLIJMWGEP]IEVERHGSQTPIXMRKFYHKIXXVERWJIVWXSQSZIXLIRIIHIHFYHKIXFEGOXSXLI ETTPMGEFPIHMZMWMSRWEWI\TIRHMXYVIWSGGYV '0%77%2('314789(= *=XS*= 8LI'PEWWERH'SQT7XYH]VIJPIGXWXLIERXMGMTEXIHGSWXXS MQTPIQIRXXLIVIGSQQIRHEXMSRWJVSQXLI4YFPMG7IVZMGI 4IVWSRRIP'SRWYPXERXW'PEWWMJMGEXMSRERH'SQTIRWEXMSRWXYH] XLEXXSSOTPEGIMRPEXI *36)'%78 258 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Aviation Fund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able of Contents BUDGET BY FUND | Aviation Fund :%'%8-3286%() *=XS*= 8LVSYKLXLI:EGEXMSR8VEHI4VSKVEQIQTPS]IIW[LSLEZI FIIRIQTPS]IHF]XLIGMX]JSVJMZI]IEVWSVQSVIERHLEZI YWIHEXPIEWXLSYVWSJZEGEXMSRQE]IPIGXXSXVEHIYTXS LSYVWSJZEGEXMSRXMQIJSVGEWL8LITVSKVEQ[EWRSXSJJIVIH MR*=ERHMR*=8LI*=:EGEXMSR 8VEHIEHSTXIHFYHKIXMW 7%:-2+7*631:%'%28437-8-327 *=XS*= 8LIEQSYRXSJWEZMRKWEGLMIZIHJVSQZEGERXTSWMXMSRWJSV*= MWIWXMQEXIHEX  [LMGLMRGPYHIWERXMGMTEXIH VIXMVIQIRXW[MXLMRXLIGMX]ERHXLIMQTEGXSJGLEPPIRKIWMRXLI PEFSVQEVOIX 86%27*)67398 8VERWJIVW3YXEVIXLIEYXLSVM^IHQSZIQIRXSJGEWLXSSXLIVJYRHWERHSVGETMXEPTVSNIGXW1SVIWTIGMJMGMRJSVQEXMSRMWHIXEMPIH FIPS[ *36)'%78 260 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Aviation Fund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able of Contents BUDGET BY FUND | Aviation Fund %:-%8-32*92()2(-2+&%0%2') *YRHFEPERGITVSXIGXWXLIGMX]’WJMRERGMEPGSRHMXMSRERHTVSZMHIWJSVYRI\TIGXIHIGSRSQMGGLEPPIRKIW8LIGMX]’WFYHKIXTPERRMRK ERHEHSTXIHJMRERGMEPTSPMGMIWGEPPJSVXLIIWXEFPMWLQIRXSJVIWIVZIWEWTEVXSJXLIVIWSYVGIEPPSGEXMSRPMQMXWIXXMRKTVSGIWW8LMW TVSGIWWEPPS[WXLIGMX]XSWIXEWMHIWEZMRKWFIJSVIXLI]EVIEPPSGEXIHSVWTIRXEWFYHKIXIHI\TIRHMXYVIW8LIWTIGMJMGQEOIYTSJ XLIGMX]’W%ZMEXMSR*YRHIRHMRKFEPERGIERHVIWIVZIWEVIRSXIHMRXLIJSPPS[MRK ()&87)6:-')6)7)6:) *=XS*= MRQMPPMSRW 8LI(IFX7IVZMGI6IWIVZI[EWIWXEFPMWLIHMR*=F] *MRERGMEP4SPMG]2SXSWIXEWMHIJYRHWJSVXLIVITE]QIRX SJHIFXWIVZMGI8LI*=(IFX7IVZMGI6IWIVZIMW QMPPMSR *0))86)40%')1)286)7)6:) *=XS*= MRQMPPMSRW 8LI*PIIX6ITPEGIQIRX6IWIVZIMWMRXIRHIHXSIRWYVI EHIUYEXIJYRHMRKJSVXLIVITPEGIQIRXSJEZMEXMSRZILMGPIWERH LIEZ]IUYMTQIRX8LI*=*PIIX6ITPEGIQIRX6IWIVZI IRHMRKJYRHFEPERGIMWQMPPMSR *36)'%78 262 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Aviation Fund *9896)'%4-8%06)40%')1)28 *=XS*= MRQMPPMSRW 8LI*YXYVI'ETMXEP6ITPEGIQIRX6IWIVZIIRWYVIWEHIUYEXI JYRHMRKJSVIQIVKIRG]VITEMVERHVITPEGIQIRXRIIHWEXXLI EMVTSVX8LIFEPERGIJSVXLI*YXYVI'ETMXEP6ITPEGIQIRX 6IWIVZIMR*=MWQMPPMSR 34)6%8-2+6)7)6:) *=XS*= MRQMPPMSRW 3TIVEXMRK6IWIVZITIV*MRERGMEP4SPMG]2SMWMRXIRHIHXS TVSZMHIJSVIQIVKIRGMIWYRI\TIGXIHHIGPMRIWMRVIZIRYIWERH SXLIVYRERXMGMTEXIHIZIRXWSVSTTSVXYRMXMIWERHMXMW GEPGYPEXIHEWTIVGIRXSJSTIVEXMRKYWIWI\GPYHMRKXVERWJIVW SYXERHHIFXWIVZMGI8LI*=IRHMRKJYRHFEPERGI MRGPYHIWER3TIVEXMRK6IWIVZISJQMPPMSR %:-%8-32*92(&%0%2') *=XS*= MRQMPPMSRW 8LI%ZMEXMSR*YRH&EPERGIEGGSYRXWJSVER]VIQEMRMRKJYRHW EJXIVXLIHIWMKREXMSRSJEPPSXLIVVIWIVZIWYWIW9RHIVTVYHIRX JMWGEPQEREKIQIRXTVEGXMGIWXLMWFEPERGIWLSYPHQSWX ETTVSTVMEXIP]FIYWIHJSVSRIXMQIYWIWRSXXSJYRHRI[SVXS I\TERHTVSKVEQW[MXLSRKSMRKSTIVEXMRKI\TIRWIW8LIVIMW RSERXMGMTEXIH%ZMEXMSR*YRH&EPERGIJSV*= *36)'%78 &9(+)8 %'89%0*36)'%78 263 Table of Contents FY 2024/25 Proposed Budget 264 Table of Contents BUDGET BY FUND | Internal Service Funds Overview INTERNAL SERVICE FUNDS DESCRIPTION Internal Service Funds 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. Users of internal services are charged for those services based on use. Scottsdale has four separate Internal Service Funds to account for the activity of this fund type: Fleet Management, PC Replacement, Risk Management and Healthcare Self Insurance. Internal Service Offsets are included to avoid duplicating the budget, since the charges for these services are already included in the divisions’ budgets. Internal Service Funds Sources (% to Total) $92.0 Million Internal Service Funds Uses (% to Total) $94.5 Million Rounding differences may occur. 265 Table of Contents FY 2024/25 Proposed Budget 266 Table of Contents BUDGET BYBUDGET FUND | BY Healthcare FUND |Self Ambulance Insurance Service Fund BUDGET BY FUND | Healthcare Self Insurance Fund Overview FUND PURPOSE The Healthcare Self Insurance Fund is used to account for the city’s self insured medical and dental benefits. Revenue to this fund is derived from premiums charged to both the city and employees. The premiums are collected for the city’s portion by charging the divisions and through payroll deductions for the employee’s portion. Revenue is also collected through premium charges to Public Safety disabled retirees (including, per City Council direction, a subsidy transfer from the General Fund to cover Public Safety disabled retirees costs that exceed the premium charges) as well as state subsidies on healthcare contributions, Consolidated Omnibus Budget Reconciliation Act (COBRA), and stop loss insurance recoveries. This fund provides payment of actual healthcare expenses (medical, behavioral, prescription and dental claims) as well as claims administration and other benefit plan expenses. Healthcare Self Insurance Fund Sources (% to Total) $39.1 Million Healthcare Self Insurance Fund Uses (% to Total) $40.1 Million Rounding differences may occur. 267 Table of Contents BUDGET BY FUND | Healthcare Self Insurance Fund Summary A c tu a l 2 0 2 2 /2 3 Adopted 2 0 2 3 /2 4 Forecast 2 0 2 3 /2 4 Adopted 2 0 2 4 /2 5 2,633,492 2,987,053 2,995,596 10,296,168 18, 912, 309 2,569,600 2,915,070 3,163,047 11,126,173 19, 773, 890 2,585,262 2,933,236 3,111,771 10,241,996 18, 872, 265 2,701,435 3,065,299 3,318,654 10,506,707 19, 592, 095 26,120,701 7,831,466 805,353 739,360 261,543 270,602 29,229,111 7,599,568 962,436 793,935 251,100 239,379 28,489,804 7,699,896 962,436 793,935 251,100 199,379 28,489,804 8,208,052 962,436 807,431 253,122 205,434 Subtotal 36, 029, 026 39, 075, 529 38, 396, 550 38, 926, 279 55,351 170,038 170,038 194,500 Subtotal 55, 351 170, 038 170, 038 194, 500 36, 084, 377 39, 245, 567 38, 566, 588 39, 120, 779 32,169,560 1,545,800 1,244,075 576,656 245,354 190,740 152,236 - 35,028,489 1,651,894 1,333,720 579,480 335,597 204,709 86,693 3,359 33,586,041 1,647,286 1,333,720 579,480 335,597 202,882 161,752 - 35,735,548 1,675,114 1,403,967 601,901 336,718 230,049 163,142 - 36, 124, 421 39, 223, 941 37, 846, 758 40, 146, 439 36,124,421 39,223,941 37,846,758 40,146,439 36, 124, 421 39, 223, 941 37, 846, 758 40, 146, 439 ( 40, 044) 21, 626 719, 830 ( 1, 025, 660) 2,585,262 2,933,236 3,111,771 10,241,996 18, 872, 265 2,812,827 3,191,193 3,377,725 10,413,771 19, 795, 516 2,701,435 3,065,299 3,318,654 10,506,707 19, 592, 095 2,868,895 3,254,728 3,364,565 9,078,247 18, 566, 435 B e g i n n i n g Fu n d B a l a n c e IBNR Reserve Operating Contingency Premium Stabilization Reserve Healthcare Self Insurance Fund Balance Total Beginning Fund Balance Revenues Employer Contribution - Medical(a) Employee Contributions - Medical Employer Contribution - Dental(a) Employee Contributions - Dental Miscellaneous Disabled Retiree Contributions T ra n s f e rs I n Operating Total Sources E x p e n d i tu r e s Medical Claims Dental Claims Insurance & Bond Premiums Administrative Fees Live Life Well Program City Administration Behavioral Health Insurance Claims Class and Comp Study(b) TOTAL OPERATING BUDGET Total Uses Subtotal Sources Over/(Under) Uses E n d i n g Fu n d B a l a n c e IBNR Reserve Operating Contingency Premium Stabilization Reserve Healthcare Self Insurance Fund Balance Total Ending Fund Balance (a) Employer Contribution rates for Medical and Dental remain flat from FY 2023/24 to FY 2024/25. The premium increases anticipated for FY 2024/25 will be absorbed by fund balance. (b) Anticipated cost to implement the Classification and Compensation Study recommendations. 268 Table of Contents BUDGET BY FUND | Healthcare Self Insurance Fund Five-Year Financial Forecast Adopted 2 0 2 4 /2 5 Forecast 2 0 2 5 /2 6 Forecast 2 0 2 6 /2 7 Forecast 2 0 2 7 /2 8 Forecast 2 0 2 8 /2 9 2,701,435 3,065,299 3,318,654 10,506,707 19, 592, 095 2,868,895 3,254,728 3,364,565 9,078,247 18, 566, 435 3,012,356 3,417,482 3,532,113 7,534,684 17, 496, 635 3,162,968 3,588,350 3,708,053 5,921,964 16, 381, 335 3,321,134 3,767,787 3,892,806 4,231,708 15, 213, 435 28,489,804 8,208,052 962,436 807,431 253,122 205,434 29,932,900 8,618,400 1,010,600 823,600 255,100 213,500 31,449,000 9,049,400 1,061,100 840,100 257,400 221,700 33,041,900 9,501,800 1,114,100 856,900 259,300 230,200 34,715,700 9,977,000 1,169,800 874,000 261,700 238,700 Subtotal 38, 926, 279 40, 854, 100 42, 878, 700 45, 004, 200 47, 236, 900 194,500 209,600 225,500 242,900 242,900 Subtotal 194, 500 209, 600 225, 500 242, 900 242, 900 39, 120, 779 41, 063, 700 43, 104, 200 45, 247, 100 47, 479, 800 35,735,548 1,675,114 1,403,967 601,901 336,718 230,049 163,142 - 37,522,500 1,758,900 1,478,000 625,400 337,000 240,200 171,500 - 39,398,600 1,846,800 1,555,700 649,700 337,400 251,000 180,300 - 41,368,700 1,939,200 1,638,000 675,100 337,900 266,400 189,700 - 43,437,200 2,036,100 1,724,300 701,700 338,400 269,800 199,600 - 40, 146, 439 42, 133, 500 44, 219, 500 46, 415, 000 48, 707, 100 40,146,439 42,133,500 44,219,500 46,415,000 48,707,100 Total Uses 40, 146, 439 42, 133, 500 44, 219, 500 46, 415, 000 48, 707, 100 Sources Over/(Under) Uses ( 1, 025, 660) ( 1, 069, 800) ( 1, 115, 300) ( 1, 167, 900) ( 1, 227, 300) E n d i n g Fu n d B a l a n c e IBNR Reserve Operating Contingency Premium Stabilization Reserve Healthcare Self Insurance Fund Balance Total Ending Fund Balance 2,868,895 3,254,728 3,364,565 9,078,247 18, 566, 435 3,012,356 3,417,482 3,532,113 7,534,684 17, 496, 635 3,162,968 3,588,350 3,708,053 5,921,964 16, 381, 335 3,321,134 3,767,787 3,892,806 4,231,708 15, 213, 435 3,487,191 3,956,177 4,086,842 2,455,925 13, 986, 135 B e g i n n i n g Fu n d B a l a n c e IBNR Reserve Operating Contingency Premium Stabilization Reserve Healthcare Self Insurance Fund Balance Total Beginning Fund Balance Revenues Employer Contribution - Medical(a) Employee Contributions - Medical Employer Contribution - Dental(a) Employee Contributions - Dental Miscellaneous Disabled Retiree Contributions T ra n s f e rs I n Operating Total Sources E x p e n d i tu r e s Medical Claims Dental Claims Insurance & Bond Premiums Administrative Fees Live Life Well Program City Administration Behavioral Health Insurance Claims Class and Comp Study Subtotal TOTAL OPERATING BUDGET (a) Employer Contribution rates for Medical and Dental remain flat from FY 2023/24 to FY 2024/25. The premium increases anticipated for FY 2024/25 will be absorbed by fund balance. 269 Table of Contents BUDGET BYBUDGET FUND | BY Healthcare FUND |Self Ambulance Insurance Service Fund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able of Contents BUDGET BYBUDGET FUND | BY Healthcare FUND |Self Ambulance Insurance Service Fund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able of Contents BUDGET BYBUDGET FUND | BY Healthcare FUND |Self Ambulance Insurance Service Fund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able of Contents BUDGET BYBUDGET FUND | BY Healthcare FUND |Self Ambulance Insurance Service Fund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able of Contents BUDGET BYBUDGET FUND | BY Healthcare FUND |Self Ambulance Insurance Service Fund %(1-2-786%8-:)*))7 *=XS*= MRQMPPMSRW %HQMRMWXVEXMZI*IIWEVIXLIGSWXWMRGYVVIHJSVEHQMRMWXIVMRK XLILIEPXLGEVIERHHIRXEPTPERW8LI*=EHSTXIH FYHKIXSJQMPPMSRMWJPEXGSQTEVIHXSXLI*= EHSTXIHFYHKIX 0-:)0-*);)00463+6%1 *=XS*= MRQMPPMSRW 0MZI0MJI;IPP4VSKVEQMRGPYHIWMRGIRXMZIWXSIQTPS]IIWXS IRGSYVEKITEVXMGMTEXMSRMRZEVMSYWLIEPXLERH[IPPRIWWIZIRXW GLEPPIRKIWEGXMZMXMIWERHGPEWWIW8LI*=EHSTXIH FYHKIXSJQMPPMSRMRGPYHIWQMPPMSRJSVE[IPPRIWW MRGIRXMZIXSIQTPS]IIWIRVSPPIHMREQIHMGEPTPERXLEX GSQTPIXIERERRYEP[IPPRIWWI\EQERHLIEPXLEWWIWWQIRX '-8=%(1-2-786%8-32 *=XS*= MRQMPPMSRW 8LIGMX] WEHQMRMWXVEXMZII\TIRWIWMRGYVVIHEVIXSGSSVHMREXI LIEPXLGEVIFILEZMSVEPHIRXEPERH[IPPRIWWTPERW8LI*= EHSTXIHFYHKIXJSVEHQMRMWXVEXMZII\TIRWIWMW QMPPMSR *36)'%78 274 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BYBUDGET FUND | BY Healthcare FUND |Self Ambulance Insurance Service Fund &),%:-36%0,)%08,-2796%2')'0%-17 *=XS*= MRQMPPMSRW &ILEZMSVEP,IEPXL-RWYVERGI'PEMQWMRGPYHIWEPPFILEZMSVEP GPEMQWI\TIRWIW8LI*=EHSTXIHFYHKIXSJ QMPPMSRMWQMPPMSRLMKLIVXLERXLI*=EHSTXIH FYHKIXFEWIHSRPEXIWXYWEKISJWIVZMGIW ,)%08,'%6)7)0*-2796%2'))2(-2+*92(&%0%2') 8LI,IEPXLGEVI7IPJ-RWYVERGI*YRHIRHMRKFEPERGIMWQEMRXEMRIHXSTVSZMHIJSVGSZIVEKISJWIPJMRWYVIHFIRIJMXW8LI,IEPXLGEVI 7IPJ-RWYVERGI*YRHLEWXLVIIHMJJIVIRXVIWIVZIW-&26 MRGYVVIHFYXRSXVITSVXIH 6IWIVZI3TIVEXMRK'SRXMRKIRG]ERH4VIQMYQ 7XEFMPM^EXMSR6IWIVZI8LI,IEPXLGEVI7IPJ-RWYVERGI*YRHEPWSMRGPYHIWE,IEPXLGEVI7IPJ-RWYVERGI*YRH&EPERGI -&266)7)6:) *=XS*= MRQMPPMSRW 6IWIVZIJSVMRGYVVIHFYXRSXVITSVXIH -&26 GPEMQW8LI-&26 6IWIVZIVITVIWIRXWXLIPMEFMPMX]XLEXSGGYVWJSVGPEMQWMRGYVVIH FYXTEMHEJXIVXLIIRHSJEJMWGEP]IEVERHMXMWGEPGYPEXIHEW XLIWYQSJTIVGIRXSJ1IHMGEP'PEMQWERHTIVGIRXSJ (IRXEP'PEMQW8LITVSNIGXIH*=-&266IWIVZIMW QMPPMSR *36)'%78 &9(+)8 %'89%0*36)'%78 275 Table of Contents BUDGET BYBUDGET FUND | BY Healthcare FUND |Self Ambulance Insurance Service Fund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able of Contents BUDGET BY FUND | Fleet Management Fund Overview BUDGET BY FUND | Fleet Management Fund FUND PURPOSE The Fleet Management Fund is used to account for the expenditures associated with purchasing and maintaining the city’s equipment and vehicles. Replacement and operation of equipment and vehicles are charged to the city divisions as internal operating costs based on the quantity and type of equipment and vehicles used. The division charges are treated as revenue to the Fleet Management Fund. Fleet Management Fund Sources (% to Total) $31.1 Million Fleet Management Fund Uses (% to Total) $33.2 Million Rounding differences may occur. 277 Table of Contents BUDGET BY FUND | Fleet Management Fund Summary Actual 2022/23 Beginning Fund Balance Electric Vehicle Contingency (a) Ad op te d 2023/24 Forecast 2023/24 Ad op te d 2024/25 - - - 1,000,000 Operating Contingency Fleet Management Fund Balance Total Beginning Fund Balance - 3,000,000 3,000,000 1,000,000 9,805,949 9 ,8 0 5 ,9 4 9 6,881,940 9 ,8 8 1 ,9 4 0 8,016,702 1 1 ,0 1 6 ,7 0 2 9,001,439 1 1 ,0 0 1 ,4 3 9 R e ve nue s Rental Rates Fuel Maintenance & Operations Reimbursements from Outside Sources Miscellaneous 14,459,813 4,594,333 10,317,305 490,463 597,348 14,303,617 6,351,853 9,298,220 556,432 468,951 14,303,617 5,474,353 10,398,220 556,432 468,951 15,158,258 6,019,338 8,850,827 567,561 482,128 (b) Subtotal 3 0 ,4 5 9 ,2 6 2 1,900,000 - - - Subtotal 1 ,9 0 0 ,0 0 0 - - - Total Sources 3 2 ,3 5 9 ,2 6 2 3 0 ,9 7 9 ,0 7 3 3 1 ,2 0 1 ,5 7 3 3 1 ,0 7 8 ,1 1 2 Expenditures Fleet Management Administration Fleet Management Operations Fleet Management Parts Supply Fuel Motorpool (d) Vehicle Acquisitions 770,725 9,450,017 716,472 4,487,001 75,486 6,050,316 764,604 9,618,499 782,080 5,173,184 79,091 6,372,730 746,718 9,479,602 708,536 5,073,328 56,978 6,372,209 947,624 10,799,395 743,753 5,019,543 77,608 15,182,299 - 142,273 - - - - 47,855 - - 111,959 (300,000) 6,256 81,710 13,780 - 114,489 (306,780) 7,438 Transfers In CIP (c) Class and Comp Study (e) Fuel and Maint and Repair (f) Leave Accrual Payments / Parental Leave Operating Impacts Post Employment Medical Savings from Vacant Positions Vacation Trade Subtotal TOTAL OPERATING BUDGET Transfers Out CIP CIP Technology Subtotal 3 0 ,9 7 9 ,0 7 3 3 1 ,2 0 1 ,5 7 3 3 1 ,0 7 8 ,1 1 2 2 1 ,5 5 0 ,0 1 7 2 2 ,7 5 0 ,6 7 6 2 2 ,5 8 0 ,7 1 6 3 2 ,5 8 5 ,3 6 9 21,550,017 22,750,676 22,580,716 32,585,369 9,570,894 27,598 8,533,883 102,237 8,533,883 102,237 500,000 67,909 9 ,5 9 8 ,4 9 2 8 ,6 3 6 ,1 2 0 8 ,6 3 6 ,1 2 0 5 6 7 ,9 0 9 Total Uses 3 1 ,1 4 8 ,5 0 9 3 1 ,3 8 6 ,7 9 6 3 1 ,2 1 6 ,8 3 6 3 3 ,1 5 3 ,2 7 8 Sources Over/(Under) Uses 1 ,2 1 0 ,7 5 3 (4 0 7 ,7 2 3 ) (1 5 ,2 6 3 ) (2 ,0 7 5 ,1 6 6 ) 1,000,000 Ending Fund Balance Electric Vehicle Contingency(a) - - - - 3,000,000 3,000,000 897,123 Operating Contingency Undesignated, Unreserved Fund Balance 11,016,702 6,474,217 8,001,439 7,029,150 Total Ending Fund Balance 1 1 ,0 1 6 ,7 0 2 9 ,4 7 4 ,2 1 7 1 1 ,0 0 1 ,4 3 9 8 ,9 2 6 ,2 7 3 (a) For FY 2024/25, the Electric Vehicle Contingency was established to address potential cost differences in procuring electric vehicles over traditional fuel vehicles. (b) FY 2023/24 Operating Contingency was added to be used for increased Maintenance and Repair costs fue to vehicle acquisition deferrals, fuel fluctuations, and supply chain challenges. (c) In FY 2022/23, the North Corporation Yard Garage capital project was completed and $1.9 million of funding was returned to the Fleet Management Fund. (d) FY 2022/23 and FY 2023/24 included manufacturing cutbacks and parts shortages which caused delays in deliveries; therefore, many scheduled vehicle purchases were shifted to the CIP to accommodate long lead times to order vehicle. This funding was returned to the operating budget for FY 2024/25.. (e) Anticipated cost to implement the Classification and Compensation Study recommendations. (f) Budget adopted at the division level. At the start of the fiscal year the budget moves to a non-divisional account and then is transferred back to the divisions monthly as expenses occur. (b) 278 Table of Contents BUDGET BY FUND | Fleet Management Fund Five-Year Financial Forecast Ad op te d 2024/25 Beginning Fund Balance Electric Vehicle Contingency Operating Contingency Forecast 2025/26 1,000,000 (a) Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 897,123 1,000,000 1,000,000 1,000,000 Fleet Management Fund Balance Total Beginning Fund Balance 9,001,439 1 1 ,0 0 1 ,4 3 9 7,029,150 8 ,9 2 6 ,2 7 3 4,926,273 6 ,9 2 6 ,2 7 3 3,112,373 5 ,1 1 2 ,3 7 3 1,289,273 3 ,2 8 9 ,2 7 3 R e ve nue s Rental Rates Fuel Maintenance & Operations Reimbursements from Outside Sources Miscellaneous 15,158,258 6,019,338 8,850,827 567,561 482,128 16,067,800 6,037,700 9,328,800 578,900 495,600 17,031,800 6,158,500 9,832,500 590,500 509,600 18,053,700 6,281,600 10,363,500 602,300 524,000 19,137,000 6,407,300 10,923,100 614,300 538,800 Subtotal 3 1 ,0 7 8 ,1 1 2 - - - - - Subtotal - - - - - Total Sources 3 1 ,0 7 8 ,1 1 2 3 2 ,5 0 8 ,8 0 0 3 4 ,1 2 2 ,9 0 0 3 5 ,8 2 5 ,1 0 0 3 7 ,6 2 0 ,5 0 0 Expenditures Fleet Management Administration Fleet Management Operations Fleet Management Parts Supply Fuel Motorpool Vehicle Acquisitions 947,624 10,799,395 743,753 5,019,543 77,608 15,182,299 984,700 11,228,200 780,500 5,135,100 81,400 15,940,000 1,018,500 11,665,500 816,500 5,238,200 85,400 16,735,100 1,084,700 12,286,800 883,100 5,353,300 89,600 17,570,300 1,090,000 12,546,000 893,700 5,476,400 93,900 18,447,200 - - - - - - - - - - 114,489 (306,780) 7,438 117,100 27,000 (313,800) 7,400 119,800 27,000 (320,700) 7,400 122,300 27,000 (327,800) 7,400 125,200 27,000 (335,300) 7,400 Transfers In CIP Class and Comp Study Fuel and Maint and Repair Leave Accrual Payments / Parental Leave Operating Impacts Post Employment Medical Savings from Vacant Positions Vacation Trade Subtotal TOTAL OPERATING BUDGET Transfers Out CIP CIP Technology Subtotal 3 2 ,5 0 8 ,8 0 0 3 4 ,1 2 2 ,9 0 0 3 5 ,8 2 5 ,1 0 0 3 7 ,6 2 0 ,5 0 0 3 2 ,5 8 5 ,3 6 9 3 3 ,9 8 7 ,6 0 0 3 5 ,3 9 2 ,7 0 0 3 7 ,0 9 6 ,7 0 0 3 8 ,3 7 1 ,5 0 0 32,585,369 33,987,600 35,392,700 37,096,700 38,371,500 500,000 67,909 500,000 21,200 500,000 44,100 500,000 51,500 500,000 113,300 5 6 7 ,9 0 9 5 2 1 ,2 0 0 5 4 4 ,1 0 0 5 5 1 ,5 0 0 6 1 3 ,3 0 0 Total Uses 3 3 ,1 5 3 ,2 7 8 3 4 ,5 0 8 ,8 0 0 3 5 ,9 3 6 ,8 0 0 3 7 ,6 4 8 ,2 0 0 3 8 ,9 8 4 ,8 0 0 Sources Over/(Under) Uses (2 ,0 7 5 ,1 6 6 ) (2 ,0 0 0 ,0 0 0 ) (1 ,8 1 3 ,9 0 0 ) (1 ,8 2 3 ,1 0 0 ) (1 ,3 6 4 ,3 0 0 ) 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 897,123 1,000,000 1,000,000 1,000,000 924,973 Ending Fund Balance Electric Vehicle Contingency(a) Operating Contingency Undesignated, Unreserved Fund Balance 7,029,150 4,926,273 3,112,373 1,289,273 0 Total Ending Fund Balance 8 ,9 2 6 ,2 7 3 6 ,9 2 6 ,2 7 3 5 ,1 1 2 ,3 7 3 3 ,2 8 9 ,2 7 3 1 ,9 2 4 ,9 7 3 (a) FY 2023/24 Operating Contingency was added to be used for increased Maintenance and Repair costs fue to vehicle acquisition deferrals, fuel fluctuations, and supply chain challenges. 279 Table of Contents BUDGET BY FUND | Fleet Management Fund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able of Contents BUDGET BY FUND | Fleet Management Fund 1%-28)2%2') 34)6%8-327 *=XS*= MRQMPPMSRW 1EMRXIRERGI 3TIVEXMSRWWSYVGIWSVMKMREXIJVSQGLEVKIWXS SXLIVGMX]HMZMWMSRWFEWIHSRXLIYWEKISJGMX]ZILMGPIWERH IUYMTQIRX8LI1EMRXIRERGI 3TIVEXMSRWVIZIRYIJSV*= XSXEPWQMPPMSR[LMGLMWEHIGVIEWISJQMPPMSR JVSQXLI*=EHSTXIHFYHKIX 6)-1&967)1)287*6313987-()7396')7 *=XS*= MRQMPPMSRW 6IMQFYVWIQIRXWJVSQ3YXWMHI7SYVGIWVIZIRYIMWKIRIVEXIH JVSQER]MRWYVERGIVIGSZIVMIWVIGIMZIHERHVIMQFYVWIQIRXW JSVJYIPXE\IWERHZILMGPITEVXW6IMQFYVWIQIRXWJVSQ3YXWMHI 7SYVGIWMWFYHKIXIHEXQMPPMSRJSV*=[LMGLMW JPEXJVSQXLI*=EHSTXIHFYHKIX 1-7')00%2)397 *=XS*= MRQMPPMSRW 1MWGIPPERISYWMWKIRIVEXIHJVSQXLIPMUYMHEXMSRSJWYVTPYW TVSTIVX]-R*=XLI1MWGIPPERISYWVIZIRYI I\TIVMIRGIHEPSWWKIRIVEXIHJVSQXLIHMJJIVIRGIMRXLI GEVV]MRKZEPYISJXLIEWWIXWZIVWYWXLITVSGIIHWVIGIMZIHJVSQ XLIWEPISJZILMGPIWERHIUYMTQIRX8LI*=EHSTXIH FYHKIXMWQMPPMSR[LMGLMWJPEX[LIRGSQTEVIHXSXLI*= EHSTXIHFYHKIX *36)'%78 &9(+)8 %'89%0*36)'%78 281 Table of Contents BUDGET BY FUND | Fleet Management Fund 86%27*)67-2 8VERWJIVW-REVIXLIEYXLSVM^IHQSZIQIRXSJGEWLSVSXLIVVIWSYVGIWJVSQSXLIVJYRHW8LIVIEVIRS8VERWJIVW-RERXMGMTEXIHMR*=  '-4 *=XS*= MRQMPPMSRW 8LI8VERWJIVW-RJSV*=VITVIWIRXLEPJSJXLI2SVXL 'SVTSVEXMSR=EVH+EVEKIGETMXEPTVSNIGXJYRHMRKFIMRKVIXYVRIH XSXLISVMKMREPWSYVGIWMRGIXLI8VERWTSVXEXMSR*YRH[EW MRWXIEHYWIHXSJYRHXLIVIQEMRHIVSJXLITVSNIGX *0))81%2%+)1)28*92(97)7 *PIIX1EREKIQIRX9WIWJSV*=IUYEPQMPPMSR[LMGLMWERMRGVIEWISJQMPPMSRJVSQXLI*=EHSTXIH FYHKIX8LIHMVIGXSTIVEXMRKYWIWJSVXLI*PIIX1EREKIQIRX*YRHEVIWYQQEVM^IHFIPS[F]*PIIX1EREKIQIRX%HQMRMWXVEXMSR *PIIX1EREKIQIRX3TIVEXMSRW*PIIX1EREKIQIRX4EVXW7YTTP]*YIP1SXSVTSSPERH:ILMGPI%GUYMWMXMSRW *0))81%2%+)1)28%(1-2-786%8-32 *=XS*= MRQMPPMSRW *PIIX1EREKIQIRX%HQMRMWXVEXMSRMRGPYHIWEPPGSWXWVIPEXIHXS WYTTSVXMRKXLIQEREKIQIRXERHEHQMRMWXVEXMZITIVWSRRIPXLEX EVIHIHMGEXIHXSHMVIGXMRKERHSZIVWIIMRKXLIJPIIXSTIVEXMSRSJ XLIGMX]8LI*=EHSTXIHFYHKIXMWQMPPMSR[LMGL MWERMRGVIEWISJQMPPMSR[LIRGSQTEVIHXSXLI*= EHSTXIHFYHKIX *36)'%78 282 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Fleet Management Fund *0))81%2%+)1)2834)6%8-327 *=XS*= MRQMPPMSRW *PIIX1EREKIQIRX3TIVEXMSRWMRGPYHIWGSWXWVIPEXIHXS WYTTSVXMRKXIGLRMGEPTIVWSRRIPXLEXTIVJSVQXLIQEMRXIRERGI ERHVITEMVJYRGXMSRWSJXLIGMX]’WJPIIXSTIVEXMSRXLIJYRHMRK JSVVITPEGIQIRXTEVXWERHXLIYWISJSYXWMHIZIRHSVW[LIR RIGIWWEV]8LI*=EHSTXIHFYHKIXSJQMPPMSRMW EQMPPMSRMRGVIEWISZIVXLI*=EHSTXIHFYHKIX 8LIMRGVIEWIMWHYIXSLMKLIVXLERERXMGMTEXIHJPIIX QEMRXIRERGIGSWXWHYIXSWYTTP]GLEMRGLEPPIRKIWERH MRJPEXMSR *0))81%2%+)1)284%68779440= *=XS*= MRQMPPMSRW *PIIX1EREKIQIRX4EVXW7YTTP]MRGPYHIWEPPGSWXWVIPEXIHXS WYTTSVXMRKXLIWTIGMEPM^IHTIVWSRRIPXLEXEVIHIHMGEXIHXS QEMRXEMRMRKXLITEVXWWIKQIRXSJXLIGMX]’WJPIIXSTIVEXMSREW [IPPEWXLIGSWXWSJEPPVIUYMVIHWYTTPMIWERHXSSPW8LI*= EHSTXIHFYHKIXMWQMPPMSR[LMGLMWEHIGVIEWISJ QMPPMSR[LIRGSQTEVIHXSXLI*=EHSTXIH FYHKIX *9)0 *=XS*= MRQMPPMSRW *YIPMRGPYHIWEPPGSWXWVIPEXIHXSXLITYVGLEWISJJYIPEW[IPP EWGSWXWJSVIUYMTQIRXQEMRXIRERGIERHWIVZMGIWRIGIWWEV] XSQEMRXEMRXLITVSZMWMSRSJJYIPMRXLIGMX]’WJPIIXSTIVEXMSR 8LI*=EHSTXIHFYHKIXMWQMPPMSREHIGVIEWISJ QMPPMSRGSQTEVIHXSXLI*=EHSTXIHFYHKIX *36)'%78 &9(+)8 %'89%0*36)'%78 283 Table of Contents BUDGET BY FUND | Fleet Management Fund 138364330 *=XS*= 1SXSVTSSPMRGPYHIWEPPGSWXWVIPEXIHXSXLIGEVISJXLIGMX]’W QSXSVTSSPZILMGPIWMRGPYHMRKJYIPERHQEMRXIRERGI8LI*= EHSTXIHFYHKIXSJMWEHIGVIEWIXS XLI*=EHSTXIHFYHKIX8LIHIGVIEWIMWHYIXSXLI VIHYGXMSRSJJPIIXVITPEGIQIRXI\TIRWIWJSVQSXSVTSSP ZILMGPIW :),-'0)%'59-7-8-327 *=XS*= MRQMPPMSRW :ILMGPI%GUYMWMXMSRWMRGPYHIEPPGSWXWVIPEXIHXSXLITYVGLEWI SVVITPEGIQIRXSJZILMGPIW[MXLMRXLIGMX] WJPIIX8LI*= EHSTXIHFYHKIXSJQMPPMSRMWERQMPPMSR MRGVIEWIJVSQXLI*=EHSTXIHFYHKIXHYIXSQSZMRK ZILMGPIEGUYMWMXMSRWERHIUYMTQIRX[MXLI\XIRHIHTVSHYGXMSR PIEHXMQIWERHLMKLGSWXWJVSQXLI'ETMXEP-QTVSZIQIRX 4PERFEGOXSXLISTIVEXMRKFYHKIX 232(-:-7-32%097)7 2SR(MZMWMSREP9WIWEVIMXIQWXLEX[IVIFYHKIXIHMRGMX][MHIQEGVSPIZIPLSPHMRKEGGSYRXW%WI\TIRHMXYVIWSGGYVMRXLIETTPMGEFPI HMZMWMSRWFYHKIXXVERWJIVWEVIGSQTPIXIHXSQSZIXLIRIIHIHFYHKIXJVSQXLIQEGVSPIZIPLSPHMRKEGGSYRXWXSXLIVIWTIGXMZI HMZMWMSRW8LIVIJSVIXLI*=]IEVIRHJSVIGEWXERHTVMSV]IEVW’ FYHKIXERHEGXYEPWXLEXEVIHMWTPE]IHMRXLIKVETLWEVIJSV GSQTEVMWSRTYVTSWIWSRP]EWXLII\TIRHMXYVIWEVIEGXYEPP]VIGSVHIHERHVITSVXIHEWTEVXSJXLIETTPMGEFPIHMZMWMSR’WYWIW &IKMRRMRKMR*=HYIXSEREHQMRMWXVEXMZIGLERKIQSWXRSRHMZMWMSREPYWIWEVIMRMXMEPP]TPEGIHMRXSXLIHMZMWMSRWMRWXIEHSJ EXEQEGVSPIZIPXLIRQSZMRKXLIFYHKIXXSEQEGVSPIZIPLSPHMRKEGGSYRXEXXLIFIKMRRMRKSJXLIJMWGEP]IEVERHGSQTPIXMRKFYHKIX XVERWJIVWXSQSZIXLIRIIHIHFYHKIXFEGOXSXLIETTPMGEFPIHMZMWMSRWEWI\TIRHMXYVIWSGGYV8LIEHQMRMWXVEXMZIGLERKIMWMRER IJJSVXXSLEZIQSVIQIERMRKJYP]IEVSZIV]IEVGSQTEVMWSRW *36)'%78 284 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Fleet Management Fund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able of Contents BUDGET BY FUND | Fleet Management Fund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able of Contents BUDGET BY FUND | Fleet Management Fund '-4 *=XS*= MRQMPPMSRW 8LI*='-4EHSTXIHFYHKIXSJQMPPMSR[MPPFI TVMQEVMP]YWIHXSJYRHGETMXEPTVSNIGXWXLEXMRGPYHIXLI 'SRXMRYSYW*PIIX6ITPEGIQIRXERHXLI*PIIX)PIGXVMG:ILMGPI ): -RJVEWXVYGXYVI-QTPIQIRXEXMSR(YIXSI\XIRHIH TVSHYGXMSRPIEHXMQIWZILMGPIEGUYMWMXMSRW[IVIVIGSVHIHMR XLI'-4MR*=ERH*= '-48)',2303+= *=XS*= 8LI'-48IGLRSPSK]FYHKIXSJMWTPERRIHXSLIPT GSZIV*PIIX1EREKIQIRX WTSVXMSRSJGMX][MHIXIGLRSPSK] GETMXEPTVSNIGXWHYVMRK*= *0))81%2%+)1)28*92()2(-2+&%0%2') *YRHFEPERGITVSXIGXWXLIGMX]’WJMRERGMEPGSRHMXMSRERHTVSZMHIWJSVYRI\TIGXIHIGSRSQMGGLEPPIRKIW+VS[XLSJJYRHFEPERGI SGGYVW[LIRWSYVGIWI\GIIHYWIW8LIGMX]’WFYHKIXTPERRMRKERHEHSTXIHJMRERGMEPTSPMGMIWGEPPJSVXLIIWXEFPMWLQIRXSJVIWIVZIW EWTEVXSJXLIVIWSYVGIEPPSGEXMSRPMQMXWIXXMRKTVSGIWW8LMWTVSGIWWEPPS[WXLIGMX]XSWIXEWMHIWEZMRKWFIJSVIEPPSGEXIHSVWTIRX EWFYHKIXIHI\TIRHMXYVIW-R*=3TIVEXMRK'SRXMRKIRG][EWVIMRWXEXIHXSFIYWIHJSVMRGVIEWIH1EMRXIRERGIERH6ITEMV GSWXWHYIXS:ILMGPI%GUYMWMXMSRHIJIVVEPWJYIPJPYGXYEXMSRWERHWYTTP]GLEMRWLMJXW *36)'%78 &9(+)8 %'89%0*36)'%78 287 Table of Contents BUDGET BY FUND | Fleet Management Fund 34)6%8-2+'328-2+)2'= *=XS*= MRQMPPMSRW 8LI3TIVEXMRK'SRXMRKIRG][EWVIMRWXEXIHXSFIYWIHJSV MRGVIEWIH1EMRXIRERGIERH6ITEMVGSWXWHYIXS:ILMGPI %GUYMWMXMSRHIJIVVEPWJYIPJPYGXYEXMSRWERHWYTTP]GLEMRWLMJXW 8LI*=EHSTXIHFYHKIXMWQMPPMSR *0))8*92(&%0%2') *=XS*= MRQMPPMSRW *PIIX*YRH&EPERGIEGGSYRXWJSVER]JYRHWVIQEMRMRKEJXIVXLI HIWMKREXMSRSJEPPSXLIVVIWIVZIWYWIW8LI*=IRHMRK *PIIX*YRH&EPERGIMWQMPPMSR[LMGLMWQMPPMSRKVIEXIV XLERXLI*=EHSTXIHFYHKIX *36)'%78 288 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Risk Management Fund FUND PURPOSE The Risk Management Fund is used to account for the city’s self insurance, safety and risk management functions. Revenue to this fund is derived from internal charges to city divisions and is captured as internal rates. Payments for unemployment, workers’ compensation, and property and liability claims are made from this fund. Risk Management Fund Sources (% to Total) $20.9 Million Risk Management Fund Uses (% to Total) $19.5 Million Rounding differences may occur. 289 Table of Contents BUDGET BY FUND | Risk Management Fund Summary Actual 20 22 /2 3 A do p t e d 20 23 /2 4 Forecast 20 23 /2 4 A do p t e d 20 24 /2 5 1,300,000 23,085,409 24,385,409 2,500,000 24,087,435 26,587,435 2,500,000 24,555,196 27,055,196 2,500,000 26,488,589 28,988,589 15,437,357 536,000 581,820 706,483 52,058 17, 313, 719 16,508,600 2,201,944 525,000 290,000 52,077 19, 577, 621 16,508,600 2,201,944 525,000 290,000 52,077 19, 577, 621 18,803,303 1,200,000 525,000 290,000 54,681 20, 872, 984 17,313,719 19,577,621 19,577,621 20,872,984 4,281,033 2,078,100 1,207,047 1,848,719 280,371 4,304 4,937,108 14, 636, 683 5,195,439 3,459,874 1,390,023 2,021,447 114,500 50,000 5,378,449 36,268 2,482 3,963 17, 652, 445 5,195,439 3,459,874 1,390,023 2,022,499 114,500 50,000 5,378,449 1,035 2,860 17, 614, 679 5,357,665 4,239,988 1,520,028 2,477,246 143,407 52,500 5,730,458 2,538 4,474 19, 528, 304 14,636,683 17,652,445 17,614,679 19,528,304 7,249 7, 249 29,549 29, 549 29,549 29, 549 20,541 20, 541 T o t a l U se s 14,643,932 17,681,994 17,644,228 19,548,845 Sources Over/(Under) Uses 2,669,787 1,895,627 1,933,393 1,324,139 Ending Fund Balance Operating Contingency Operating Reserve Total Ending Fund Balance 2,500,000 24,555,196 27,055,196 2,500,000 25,983,062 28,483,062 2,500,000 26,488,589 28,988,589 2,500,000 27,812,728 30,312,728 Beginning Fund Balance Operating Contingency Operating Reserve Total Beginning Fund Balance R e ve n u e s Self Insurance (Property and Workers Comp) Property Tax Reimbursements from Outside Sources Miscellaneous(a) Unemployment Claims S u bt o t a l Total Sources E x p e n d i t u re s Insurance & Bond Premiums Liability Physical Damage Safety and Risk Management Safety Grants Program Unemployment Workers Compensation Class and Comp Study (b) Leave Accrual Payments / Parental Leave Post Employment Medical Vacation Trade S u bt o t a l TOTAL OPERATING BUDGET Transfers Out CIP Technology S u bt o t a l (a) (b) The increased revenues in FY 2022/23 is largely due to an unusually high number of subrogation recoveries. Anticipated cost to implement the Classification and Compensation Study recommendations. 290 Table of Contents BUDGET BY FUND | Risk Management Fund Five-Year Financial Forecast A do p t e d 20 24 /2 5 Forecast 20 25 /2 6 Forecast 20 26 /2 7 Forecast 20 27 /2 8 Forecast 20 28 /2 9 2,500,000 26,488,589 28,988,589 2,500,000 27,812,728 30,312,728 2,500,000 28,295,828 30,795,828 2,500,000 28,992,028 31,492,028 2,500,000 29,894,928 3 2 ,3 9 4 ,9 2 8 18,803,303 1,200,000 525,000 290,000 54,681 20, 872, 984 19,628,400 550,000 475,000 290,000 57,400 21, 000, 800 20,647,600 550,000 475,000 290,000 60,300 22, 022, 900 22,149,600 550,000 475,000 290,000 63,300 23, 527, 900 22,152,500 550,000 475,000 290,000 66,500 23, 534, 000 20,872,984 21,000,800 22,022,900 23,527,900 2 3 ,5 3 4 ,0 0 0 5,357,665 4,239,988 1,520,028 2,477,246 143,407 52,500 5,730,458 2,538 4,474 19, 528, 304 6,128,900 4,337,600 1,555,000 2,420,200 146,800 55,100 5,858,900 2,600 4,500 20, 509, 600 6,594,400 4,433,100 1,589,300 2,496,700 150,000 57,900 5,984,300 2,700 4,500 21, 312, 900 7,483,000 4,530,800 1,624,200 2,630,700 153,200 60,800 6,118,600 2,700 4,500 22, 608, 500 8,705,300 4,635,000 1,661,500 2,643,600 156,700 63,800 6,249,900 2,800 4,500 24, 123, 100 19,528,304 20,509,600 21,312,900 22,608,500 24,123,100 20,541 20, 541 8,100 8, 100 13,800 13, 800 16,500 16, 500 30,100 30, 100 T o t a l U se s 19,548,845 20,517,700 21,326,700 22,625,000 2 4 ,1 5 3 ,2 0 0 Sources Over/(Under) Uses 1,324,139 483,100 696,200 902,900 ( 6 1 9 ,2 0 0 ) Ending Fund Balance Operating Contingency Operating Reserve Total Ending Fund Balance 2,500,000 27,812,728 30,312,728 2,500,000 28,295,828 30,795,828 2,500,000 28,992,028 31,492,028 2,500,000 29,894,928 32,394,928 2,500,000 29,275,728 3 1 ,7 7 5 ,7 2 8 Beginning Fund Balance Operating Contingency Operating Reserve Total Beginning Fund Balance R e ve n u e s Self Insurance (Property and Workers Comp) Property Tax(a) Reimbursements from Outside Sources Miscellaneous Unemployment Claims S u bt o t a l Total Sources E x p e n d i t u re s Insurance & Bond Premiums Liability Physical Damage Safety and Risk Management Safety Grants Program Unemployment Workers Compensation Class and Comp Study Leave Accrual Payments / Parental Leave Post Employment Medical Vacation Trade S u bt o t a l TOTAL OPERATING BUDGET Transfers Out CIP Technology S u bt o t a l (a) Anticipated decreases in Property Tax are due to expected reductions in the volume and scale of involuntary tort claims. 291 Table of Contents BUDGET BY FUND | Risk Management Fund 6-7/1%2%+)1)28*92(7396')7 7SYVGIWVIGIMZIHMRXLI6MWO1EREKIQIRX*YRHGSRWMWXSJ7IPJ-RWYVERGI 4VSTIVX]ERH;SVOIVW'SQT 4VSTIVX]8E\ 6IMQFYVWIQIRXWJVSQ3YXWMHI7SYVGIW1MWGIPPERISYWERH9RIQTPS]QIRX'PEMQW1SVIWTIGMJMGMRJSVQEXMSRSRXLIWIWSYVGIWMW HIXEMPIHFIPS[ 7)0*-2796%2') 4634)68=%2(;36/)67 '314 *=XS*= MRQMPPMSRW 7IPJ-RWYVERGI 4VSTIVX]ERH;SVOIVW'SQT VITVIWIRXXLMW JYRH’WTVMQEV]STIVEXMRKVIWSYVGIW[LMGLEVIHIVMZIHJVSQ MRXIVREPGLEVKIWJSVWIVZMGIWXSSXLIVGMX]HMZMWMSRW8LIJYRH GSZIVWI\GIWWMRWYVERGITVIQMYQWEHQMRMWXVEXMZIGLEVKIW ERHGPEMQTE]QIRXWJSVKIRIVEPERHEYXSPMEFMPMX]TL]WMGEP HEQEKIW[SVOIVW’ GSQTIRWEXMSRERHTVSTIVX]HEQEKI8LI *=EHSTXIHFYHKIXJSV7IPJ-RWYVERGI 4VSTIVX]ERH ;SVOIVW'SQT MWQMPPMSR[LMGLVITVIWIRXWERMRGVIEWI SJQMPPMSRJVSQXLI*=EHSTXIHFYHKIXHYIXSER ERRYEPIZEPYEXMSRXSHIXIVQMRIXLI-RXIVREP7IVZMGI6EXIW GLEVKIHXSIZIV]HITEVXQIRX8LIGSRXMRYIHMRGVIEWIWMR*= *=EWWYQIXLIRIIHXSGLEVKIHMZMWMSRW QSVIHYIXSMRGVIEWIHGSWXW[LMPIQEMRXEMRMRKXLI0SWW8VYWX *YRH&SEVH WTVIJIVVIHTIVGIRXGSRJMHIRGIPIZIPSJXLIQSWX VIGIRXEGXYEVMEPEWWIWWQIRXMRXLIJYRHFEPERGI 4634)68=8%< *=XS*= MRQMPPMSRW 4VSTIVX]8E\VITVIWIRXWEVIMQFYVWIQIRXXSXLIGMX]’W6MWO 1EREKIQIRX*YRHJSVXLIPMEFMPMX]XSVXWIXXPIQIRXWERH NYHKQIRXWETTVSZIHF]'MX]'SYRGMPERHTEMHHYVMRKXLIQSWX VIGIRXP]GSQTPIXIHGEPIRHEV]IEV8LIMRGPYWMSRSJXLIXSVX GPEMQVIMQFYVWIQIRXWMRXLIGMX]’WTVMQEV]XE\PIZ]MWEPPS[IH TIVE1EVGL%VM^SRE%XXSVRI]+IRIVEPSTMRMSR8LI XSVXI\TIRWIWEVITEMHJVSQXLI6MWO1EREKIQIRX*YRH XLIVIJSVIXLIVIMQFYVWIQIRXFIGSQIWVIZIRYIXSXLMWJYRH 8LIFYHKIXIHXSVXGPEMQWJSV*=MWQMPPMSR[LMGL VITVIWIRXWEHIGVIEWISJQMPPMSRHYIXSXLIWIXXPIQIRXSJ WIZIVEPPEVKIYRJSVIWIIRSGGYVVIRGIWMR*= *36)'%78 292 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Risk Management Fund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able of Contents BUDGET BY FUND | Risk Management Fund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able of Contents BUDGET BY FUND | Risk Management Fund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able of Contents BUDGET BY FUND | Risk Management Fund 92)1403=1)28 *=XS*= 9RIQTPS]QIRXMWGSQTSWIHSJGPEMQWTEMHXSUYEPMJ]MRK XIVQMREXIHGMX]IQTPS]IIW8LIEHSTXIHFYHKIXJSV*= MW[LMGLVIQEMRWVIPEXMZIP]JPEXGSQTEVIHXS XLI*=EHSTXIHFYHKIX8LI*=EGXYEPW VITVIWIRXELMKLIVPIZIPSJI\TIRWIWHYIXSERMRGVIEWIH RYQFIVSJYRIQTPS]QIRXGPEMQWVIWYPXMRKJVSQXLI'3:-( TERHIQMG *=XS*= MRQMPPMSRW ;36/)67'314)27%8-32 ;SVOIVW'SQTIRWEXMSRMWGSQTSWIHSJGPEMQWTEMHXSGYVVIRX GMX]IQTPS]IIWMRXLIIZIRXSJERMRNYV]MPPRIWWSVHMWIEWI SGGYVVMRKMRXLIGSYVWISJGMX]IQTPS]QIRX8LIEHSTXIH FYHKIXJSV*=MWQMPPMSR[LMGLMWQMPPMSR KVIEXIVXLERXLI*=EHSTXIHFYHKIX8LIMRGVIEWIMR FYHKIXMWHYIXSLMKLIVJSVIGEWXIH[SVOIVGSQTIRWEXMSR I\TIRWIWVIPEXIHXSVMWMRKQIHMGEPGSWXWERHTEVXMEPHMWEFMPMX] GSMRGMHMRK[MXLEGXYEVMEPJSVIGEWXW 232(-:-7-32%097)7 2SR(MZMWMSREP9WIWEVIMXIQWXLEX[IVIFYHKIXIHMRGMX][MHIQEGVSPIZIPLSPHMRKEGGSYRXW%WI\TIRHMXYVIWSGGYVMRXLIETTPMGEFPI HMZMWMSRWFYHKIXXVERWJIVWEVIGSQTPIXIHXSQSZIXLIRIIHIHFYHKIXJVSQXLIQEGVSPIZIPLSPHMRKEGGSYRXWXSXLIVIWTIGXMZI HMZMWMSRW8LIVIJSVIXLI*=]IEVIRHJSVIGEWXERHTVMSV]IEVW’ FYHKIXERHEGXYEPWXLEXEVIHMWTPE]IHMRXLIKVETLWEVIJSV GSQTEVMWSRTYVTSWIWSRP]EWXLII\TIRHMXYVIWEVIEGXYEPP]VIGSVHIHERHVITSVXIHEWTEVXSJXLIETTPMGEFPIHMZMWMSR’WYWIW &IKMRRMRKMR*=HYIXSEREHQMRMWXVEXMZIGLERKIQSWXRSRHMZMWMSREPYWIWEVIMRMXMEPP]TPEGIHMRXSXLIHMZMWMSRWMRWXIEHSJ EXEQEGVSPIZIPXLIRQSZMRKXLIFYHKIXXSEQEGVSPIZIPLSPHMRKEGGSYRXEXXLIFIKMRRMRKSJXLIJMWGEP]IEVERHGSQTPIXMRKFYHKIX XVERWJIVWXSQSZIXLIRIIHIHFYHKIXFEGOXSXLIETTPMGEFPIHMZMWMSRWEWI\TIRHMXYVIWSGGYV8LIEHQMRMWXVEXMZIGLERKIMWMRER IJJSVXXSLEZIQSVIQIERMRKJYP]IEVSZIV]IEVGSQTEVMWSRW *36)'%78 296 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Risk Management Fund '0%77%2('314789(= *=XS*= 8LI'PEWWERH'SQT7XYH]VITVIWIRXWXLIGSWXWJSV MQTPIQIRXMRKXLIVIGSQQIRHEXMSRWJVSQXLI4YFPMG7IVZMGI 4IVWSRRIP'SRWYPXERXW'PEWWMJMGEXMSRERH'SQTIRWEXMSRWXYH] XLEX[EWGSQTPIXIHEXXLIIRHSJ*=8LI MQTPIQIRXEXMSRSJXLI'PEWWERH'SQT7XYH]MWFYHKIXIHEX XLIHMZMWMSRPIZIPJSV*= 0)%:)%''69%04%=1)2874%6)28%00)%:) *=XS*= 0IEZI%GGVYEP4E]QIRXWMRGPYHIEGGYQYPEXIHQIHMGEPERHSV ZEGEXMSRPIEZITEMHSYXEXXLIXMQISJVIXMVIQIRXSVWITEVEXMSR JVSQXLIGMX]4EVIRXEP0IEZIEPPS[WJSVEJSYV[IIOTEMHPIEZI JSVRI[TEVIRXW8LIXSXEP*=0IEZI%GGVYEP 4E]QIRXW4EVIRXEP0IEZIFYHKIXMW :%'%8-3286%() *=XS*= 8LVSYKLXLI:EGEXMSR8VEHI4VSKVEQIQTPS]IIW[LSLEZI FIIRIQTPS]IHF]XLIGMX]JSVJMZI]IEVWSVQSVIERHLEZI YWIHEXPIEWXLSYVWSJZEGEXMSRQE]IPIGXXSXVEHIYTXS LSYVWSJZEGEXMSRXMQIJSVGEWL8LITVSKVEQ[EWRSXSJJIVIH MR*=ERHMR*=8LI*=:EGEXMSR 8VEHIEHSTXIHFYHKIXMW *36)'%78 &9(+)8 %'89%0*36)'%78 297 Table of Contents BUDGET BY FUND | Risk Management Fund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able of Contents BUDGET BY FUND | Risk Management Fund 34)6%8-2+6)7)6:) *=XS*= MRQMPPMSRW 8LITVSNIGXIH*=3TIVEXMRK6IWIVZIMWETTVS\MQEXIP] QMPPMSR[LMGLMWERMRGVIEWISJQMPPMSRJVSQXLI*= EHSTXIHFYHKIX *36)'%78 &9(+)8 %'89%0*36)'%78 299 Table of Contents FY 2024/25 Proposed Budget 300 Table of Contents BUDGET BY FUND | PC Replacement Fund FUND PURPOSE The PC Replacement fund is used to account for the expenditures associated with purchasing the city’s computers, monitors, and printers. The replacement of computers, monitors, and printers (hardware) is charged to the city divisions as an internal operating cost based on the quantity and type of hardware used. The divisions' charges become revenue to the PC Replacement Fund. PC Replacement Fund Sources (% to Total) $1.0 Million PC Replacement Fund Uses (% to Total) $1.6 Million Rounding differences may occur. 301 Table of Contents BUDGET BY FUND | PC Replacement Fund Summary Actual 2022/23 Ad o p t ed 2023/24 Forecast 2023/24 Ad o p t ed 2024/25 Beginning Fund Balance Operating Contingency PC Replacement Fund Balance 100,000 1,441,514 100,000 1,461,172 100,000 1,586,455 100,000 1,668,285 Total Beginning Fund Balance 1, 541, 514 1,561,172 1,686,455 1,768,285 750,000 750,000 850,000 8 5 0 ,0 0 0 850,000 8 5 0 ,0 0 0 950,007 9 5 0 ,0 0 7 750,000 850,000 850,000 950,007 605,059 605,059 768,170 7 6 8 ,1 7 0 768,170 7 6 8 ,1 7 0 1,637,100 1 ,6 3 7 ,1 0 0 605,059 768,170 768,170 1,637,100 Total Uses 605,059 768,170 768,170 1, 637, 100 Sources Over/(Under) Uses 144,941 81,830 81,830 (687,093) Ending Fund Balance Operating Contingency PC Replacement Fund Balance 100,000 1,586,455 100,000 1,543,002 100,000 1,668,285 100,000 981,192 Total Ending Fund Balance 1,686,455 1,643,002 1,768,285 1,081,192 Revenues PC Replacement Fees (a) Su b to t a l Total Sources Expenditures Computer Hardware Acquisition Su b to t a l TOTAL OPERATING BUDGET (a) Beginning in FY 2024/25, the PC Replacement Fees internal service charge is intentionally lowered to utilize available PC Replacement Fund Balance. 302 Table of Contents BUDGET BY FUND | PC Replacement Fund Five-Year Financial Forecast Ad o p t ed 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 Beginning Fund Balance Operating Contingency PC Replacement Fund Balance 100,000 1,668,285 100,000 981,192 100,000 573,392 100,000 297,592 100,000 164,092 Total Beginning Fund Balance 1,768,285 1,081,192 673,392 397,592 264,092 950,007 9 5 0 ,0 0 7 1,036,300 1 ,0 3 6 ,3 0 0 1,128,900 1 ,1 2 8 ,9 0 0 1,224,900 1 ,2 2 4 ,9 0 0 1,322,500 1,322,500 950, 007 1, 036, 300 1,128,900 1,224,900 1, 322, 500 1,637,100 1,637,100 1,444,100 1 ,4 4 4 ,1 0 0 1,404,700 1 ,4 0 4 ,7 0 0 1,358,400 1 ,3 5 8 ,4 0 0 1,437,900 1 ,4 3 7 ,9 0 0 1,637,100 1,444,100 1,404,700 1,358,400 1,437,900 Total Uses 1, 637, 100 1,444,100 1,404,700 1,358,400 1, 437, 900 Sources Over/(Under) Uses (687,093) (407,800) (275,800) (133,500) (115,400) Ending Fund Balance Operating Contingency PC Replacement Fund Balance 100,000 981,192 100,000 573,392 100,000 297,592 100,000 164,092 100,000 48,692 Total Ending Fund Balance 1, 081, 192 673,392 397,592 264,092 148,692 Revenues PC Replacement Fees (a) Su b to t a l Total Sources Expenditures Computer Hardware Acquisition Su b to t a l TOTAL OPERATING BUDGET (a) Beginning in FY 2024/25, the PC Replacement Fees internal service charge is intentionally lowered to utilize available PC Replacement Fund Balance. 303 Table of Contents BUDGET BY FUND | PC Replacement Fund 4'6)40%')1)28*92(7396')7 8LI4'6ITPEGIQIRX*YRHMRGPYHIWVIZIRYIJVSQVEXIWGLEVKIHXSXLIGMX]HMZMWMSRWEWMRXIVREPSTIVEXMRKGSWXWXSIEGLTVSKVEQ FEWIHSRXLIUYERXMX]ERHX]TISJLEVH[EVIYWIH8LISRP]WSYVGISJVIZIRYIXSXLMWJYRHMWXLI4'6ITPEGIQIRX*IIWHIXEMPIH FIPS[ 4'6)40%')1)28*))7 *=XS*= MRQMPPMSRW 4'6ITPEGIQIRX*IIWVITVIWIRXWXLIVEXIWGLEVKIHXSSXLIV GMX]JYRHWERHHMZMWMSRWJSVXLIEGUYMWMXMSRERHVITPEGIQIRXSJ GMX]GSQTYXIVLEVH[EVI8LIEQSYRXGSPPIGXIHIRWYVIW WYJJMGMIRXJYRHMRKMWEZEMPEFPIJSVLEVH[EVIEGUYMWMXMSRERH VITPEGIQIRX[LMPIEPWSGSRWMHIVMRKJYXYVIRIIHW8LIKSEPMW XSQMRMQM^IPEVKIJPYGXYEXMSRWXSXLIVEXIWXLEXEVIGLEVKIHXS XLIHMZMWMSRWIEGL]IEV8LIVIZIRYIJSV*=MW QMPPMSR[LMGLMWQMPPMSRLMKLIVXLERXLI*= EHSTXIHFYHKIX. PC REPLACEMENT FUND USES 8LIHMVIGXSTIVEXMRKI\TIRHMXYVIWSJXLI4'6ITPEGIQIRX*YRHEVIFYHKIXIHMRXLIGETMXEPSYXPE]GEXIKSV] '31498)6,%6(;%6)%'59-7-8-32 *=XS*= MRQMPPMSRW 'SQTYXIV,EVH[EVI%GUYMWMXMSRMRGPYHIWXLITYVGLEWISJ HIWOXSTGSQTYXIVWPETXSTWVYKKIHM^IHPETXSTWQSRMXSVW ERHTVMRXIVW8LIGSQTYXIVLEVH[EVIMRZIRXSV]JSVXLIIRXMVI GMX]MWEKKVIKEXIHEWSRIEWWIXERHMWXLYWGPEWWMJMIHEWE GETMXEPEWWIXSRXLIGMX]’WFEPERGIWLIIX8LI*= 'SQTYXIV,EVH[EVI%GUYMWMXMSREHSTXIHFYHKIXMW QMPPMSR[LMGLMWQMPPMSRLMKLIVXLERXLI*= EHSTXIHFYHKIX8LII\TIRHMXYVIWZEV]JVSQ]IEVXS]IEV HITIRHMRKSRXLIVITPEGIQIRXWGLIHYPI *36)'%78 304 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | PC Replacement Fund PC REPLACEMENT FUND ENDING BALANCE 8LI4'6ITPEGIQIRX*YRHIRHMRKFEPERGIZEVMIWTVMQEVMP]HYIXSXLILEVH[EVIVITPEGIQIRXWGLIHYPI8LIJYRHFEPERGIEXXLIIRH SJIEGL]IEVMRGPYHIWXLIEGGYQYPEXIHFEPERGIXSFIYWIHJSVJYXYVI]IEVLEVH[EVITYVGLEWIW8LI4'6ITPEGIQIRX*YRHIRHMRK FEPERGIMRGPYHIW3TIVEXMRK'SRXMRKIRG]ERH4'6ITPEGIQIRX*YRH&EPERGI 34)6%8-2+'328-2+)2'= *=XS*= MRQMPPMSRW 3TIVEXMRK'SRXMRKIRG]MWWIXEXQMPPMSRSJFYHKIX EYXLSVM^EXMSRXSSJJWIXYRJSVIWIIRI\TIRWIWXLEXSGGYVHYVMRK XLIJMWGEP]IEV&IKMRRMRKMR*=XLI3TIVEXMRK 'SRXMRKIRG][EWVIHYGIHJVSQQMPPMSRXSQMPPMSRXS FIXXIVEPMKR[MXLLMWXSVMGEPYWEKI'SRXMRKIRG]JYRHWEVI YXMPM^IHSRP]EJXIVEPPFYHKIXSTXMSRWLEZIFIIRGSRWMHIVIHERH VIUYMVIW'MX]'SYRGMPETTVSZEP 4'6)40%')1)28*92(&%0%2') *=XS*= MRQMPPMSRW 4'6ITPEGIQIRX*YRH&EPERGIEGGSYRXWJSV4'6ITPEGIQIRX *YRHVIQEMRMRKEJXIVXLIHIWMKREXMSRSJEPPSXLIVVIWIVZIW GSRXMRKIRGMIW8LI*=IRHMRKJYRHFEPERGIMW QMPPMSR8LMWFEPERGIVITVIWIRXWEREGGYQYPEXMSRSJWSYVGIWXS FIYWIHJSVJYXYVI]IEVLEVH[EVITYVGLEWIW%VIHYGXMSRSJ JYRHFEPERGIFIKMRRMRKMR*=VIJPIGXWXLIIJJSVXWXS YXMPM^IJYRHFEPERGIF]EPMKRMRKXLI4'6ITPEGIQIRX*IIWERH 'SQTYXIV,EVH[EVI%GUYMWMXMSRW[MXLERXMGMTEXIHVITPEGIQIRX WGLIHYPIWXLVSYKLSYXXLIGMX] *36)'%78 &9(+)8 %'89%0*36)'%78 305 Table of Contents FY 2024/25 Proposed Budget 306 Table of Contents BUDGET BY FUND | BUDGET BY FUND | Grant FundsGrant Overview Funds FUND PURPOSE The Grant Funds receive and expend the city’s federal, state, and local grants. The amount of grants received is generally based upon application to granting agencies by the city and through entitlement grants and are contingent upon availability of funding by the grantors. Grant revenues may be used only for the stated purpose in the approved grant agreement and are subject to grantor expenditure guidelines and audits. The city will only expend grant funds that have been appropriately awarded by the granting agency and accepted in accordance with the city’s grant policy. Grant Funds Sources (% to Total) $28.6 Million Grant Funds Uses (% to Total) $28.6 Million Rounding differences may occur. 307 Table of Contents BUDGET BY FUND | Grant Funds Summary Adopted 2023/24 Adopted 2024/25 S u bt o t a l 6,977,318 4,127,777 2,465,567 2,147,828 1 5 ,7 1 8 , 4 9 0 8,970,468 4,553,150 3,259,617 1,438,820 18,222,055 S u bt o t a l 4,076,408 4,000,000 8,076,408 6,332,480 4,000,000 10,332,480 23,794,898 28, 554, 535 6,977,318 4,127,777 2,434,117 2,147,828 1 5 ,6 8 7 , 0 4 0 8,970,467 4,553,150 3,236,176 1,438,820 18,198,613 15,687,040 18,198,613 S u bt o t a l 4,076,408 4,000,000 8,076,408 6,332,480 4,000,000 10,332,480 S u bt o t a l 31,450 31,450 23,442 23, 442 23,794,898 28, 554, 535 R ev e n u e s Housing Choice Voucher Program Grants CDBG Home Investment Partnership Other Activity Grant Anticipated Grant Contingency Total Sources E x p e n d it u r e s Housing Choice Voucher Program Grants CDBG Home Investment Partnership S u bt o t a l TOTAL OPERATING BUDGET Other Activity Grant Anticipated Grant Contingency Transfers Out CIP Total Uses Sources Over/(Under) Uses 308 - - Table of Contents BUDGET BY FUND | Grant Funds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’WMRGSQI*EQMPMIWQYWX FIMRGSQIIPMKMFPIFEWIHSRXLI4VSKVEQ-RGSQI+YMHIPMRIW 8LITVSKVEQTVSZMHIWEJJSVHEFPIERHWEJILSYWMRK STTSVXYRMXMIWJSVPS[IVMRGSQIJEQMPMIWWIRMSVGMXM^IRWERH TIVWSRW[MXLHMWEFMPMXMIW7XEJJIWXMQEXIWXLI,':EPPSGEXMSRW MRGPYHMRKTVMSV]IEV’WGEVV]SZIVJSV*=EXQMPPMSR 8LIEGXYEPEQSYRXW[MPPZEV]HITIRHMRKSR[LIRXLIJYRHWEVI VIGIMZIHHYVMRKXLIJMWGEP]IEV +6%287 *=XS*= MRQMPPMSRW 1MWGIPPERISYWJIHIVEPWXEXIERHPSGEPKVERXWMRGPYHIKVERXW JSVPE[IRJSVGIQIRXJMVIWIVZMGIWGSQQYRMX]WIVZMGIW XVERWTSVXEXMSRERHTVIWIVZEXMSRTVSNIGXW%HHMXMSREPKVERX JYRHMRK[EWVIGIMZIHJVSQXLI%>'EVIW*YRHXSEWWMWX[MXL GSWXWSJTYFPMGLIEPXLERHTYFPMGWEJIX]TIVWSRRIPI\TIRWIWMR *=8LI*=EHSTXIHFYHKIXJSV+VERXWMW QMPPMSR *36)'%78 &9(+)8 %'89%0*36)'%78 309 Table of Contents BUDGET BY FUND | Grant Funds '31192-8=():)0341)28&03'/+6%28 '(&+  '(&+6),%&6):30:-2+03%2 *=XS*= MRQMPPMSRW 8LI'MX]SJ7GSXXWHEPIVIGIMZIW'SQQYRMX](IZIPSTQIRX&PSGO +VERX '(&+ JYRHWJVSQXLI97(ITEVXQIRXSJ,SYWMRKERH 9VFER(IZIPSTQIRX ,9( '(&+JYRHWEVITVSZMHIHSRE JSVQYPEFEWMWXSIRXMXPIQIRXGSQQYRMXMIWXSHIZIPSTZMEFPI YVFERGSQQYRMXMIWF]TVSZMHMRKHIGIRXLSYWMRKWYMXEFPIPMZMRK IRZMVSRQIRXWERHSVF]I\TERHMRKIGSRSQMGSTTSVXYRMXMIW TVMQEVMP]JSVPS[XSQSHIVEXIMRGSQITIVWSRW7XEJJIWXMQEXIW XLI'(&+ERH'(&+6ILEF6IZSPZMRK0SER*YRHWMRGPYHMRK TVMSV]IEV’WGEVV]SZIVJSV*=EXQMPPMSR8LIWI JYRHEQSYRXW[MPPZEV]HITIRHMRKSR[LIRXLIJYRHWEVI VIGIMZIHHYVMRKXLIJMWGEP]IEV8LMWEPWSMRGPYHIWQMPPMSR MRFYHKIXJSV&IPPIZMI[6IRXEP3TIVEXMSRW ,31)-2:)781)284%682)67,-4 *=XS*= MRQMPPMSRW ,31)-RZIWXQIRX4EVXRIVWLMT*YRHWEVIVIGIMZIHXLVSYKLXLI 1EVMGSTE'SYRX],SQI'SRWSVXMYQ7XEJJIWXMQEXIWXLI ,31)EPPSGEXMSRMRGPYHMRKTVMSV]IEV’WGEVV]SZIVJSV*= EXQMPPMSR,31)*YRHWEGXYEPEQSYRXW[MPPZEV] HITIRHMRKSR[LIRXLIJYRHWEVIVIGIMZIHHYVMRKXLIJMWGEP ]IEV +6%287%28-'-4%8)( *=XS*= MRQMPPMSRW 8LIWIEVIERXMGMTEXIHKVERXWXLEXQE]FIVIGIMZIHXLVSYKLSYX XLIJMWGEP]IEVXSEMHMRXLIWYTTSVXSJEWTIGMJMIHJYRGXMSRSV YWIHJSVKIRIVEPTYVTSWIW+VERXW%RXMGMTEXIHJSV*= XSXEPWQMPPMSR *36)'%78 310 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Grant Funds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’WMRGSQI*EQMPMIWQYWX FIMRGSQIIPMKMFPIFEWIHSRXLI4VSKVEQ-RGSQI+YMHIPMRIW 8LITVSKVEQTVSZMHIWEJJSVHEFPIERHWEJILSYWMRK STTSVXYRMXMIWJSVPS[IVMRGSQIJEQMPMIWWIRMSVGMXM^IRWERH TIVWSRW[MXLHMWEFMPMXMIW7XEJJIWXMQEXIWXLI,:'EPPSGEXMSRW MRGPYHMRKTVMSV]IEV’WGEVV]SZIVMR*=EXQMPPMSR 8LIEGXYEPEQSYRXW[MPPZEV]HITIRHMRKSR[LIRXLIJYRHWEVI VIGIMZIHHYVMRKXLIJMWGEP]IEV *36)'%78 &9(+)8 %'89%0*36)'%78 311 Table of Contents BUDGET BY FUND | Grant Funds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’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able of Contents BUDGET BY FUND | Grant Funds +6%287%28-'-4%8)( *=XS*= MRQMPPMSRW 8LIWIEVIERXMGMTEXIHKVERXWXLEXQE]FIVIGIMZIHXLVSYKLSYX XLIJMWGEP]IEVXSEMHMRXLIWYTTSVXSJEWTIGMJMIHJYRGXMSRSV KIRIVEPTYVTSWIW+VERXW%RXMGMTEXIHJSV*=XSXEPW QMPPMSR +6%28'328-2+)2'= *=XS*= MRQMPPMSRW +VERX'SRXMRKIRG]TVSZMHIWJSVYRI\TIGXIHKVERXE[EVHWMR XLIIZIRXXLEXYRJSVIWIIRI\TIRWIWSGGYVHYVMRKXLIJMWGEP ]IEV[LMPIGSRHYGXMRKSTIVEXMSRW*SV*=XLIEHSTXIH FYHKIXMWQMPPMSR 86%27*)67398 8VERWJIVW3YXMWXLIEYXLSVM^IHQSZIQIRXSJGEWLSVSXLIVVIWSYVGIWXSSXLIVJYRHWERHSVGETMXEPTVSNIGXW *36)'%78 &9(+)8 %'89%0*36)'%78 313 Table of Contents BUDGET BY FUND | Grant Funds '-4 *=XS*= 8LI*='-4EHSTXIHFYHKIXSJ[MPPFIYWIHXS JYRHGETMXEPTVSNIGXW '-48)',2303+= *=XS*= '-48IGLRSPSK]LIPTWGSZIVXLITSVXMSRSJGMX][MHIXIGLRSPSK] GETMXEPTVSNIGXW8LI*='-48IGLRSPSK]EHSTXIH FYHKIXMW *36)'%78 314 &9(+)8 %'89%0*36)'%78 Table of Contents BUDGET BY FUND | Special Districts Fund FUND PURPOSE The Special Districts Fund is used to account for proceeds received from 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) $0.6 Million Special Districts Fund Uses (% to Total) $0.6 Million Rounding differences may occur. 315 Table of Contents BUDGET BY FUND | Special Districts Fund Summary Actual 2022/ 23 Beginning Fund Balance Streetlight Districts Total Beginning Fund Balance 46,442 46, 442 Re ve n u e s Streetlight Districts Adopted 2023/ 24 Forecast 2023/ 24 39,980 39, 980 42,298 42, 298 Adopted 2024/ 25 2,318 2, 318 524,574 538,728 538,728 570,133 524, 574 538, 728 538, 728 570, 133 Total Sources 524, 574 538, 728 538, 728 570, 133 E x p e n dit u r e s Streetlight Districts 528,718 578,708 578,708 572,451 528, 718 578, 708 578, 708 572, 451 528,718 578,708 578,708 572,451 Total Uses 528, 718 578, 708 578, 708 572, 451 Sources Over/(Under) Uses ( 4, 144) ( 39, 980) ( 39, 980) ( 2, 318) Ending Fund Balance Streetlight Districts Total Ending Fund Balance 42,298 42, 298 - 2,318 2, 318 - Subtotal Subtotal TOTAL OPERATING BUDGET 316 Table of Contents BUDGET BY FUND | Special Districts Fund Five-Year Financial Forecast Adopted 2024/ 25 Beginning Fund Balance Streetlight Districts Total Beginning Fund Balance Re ve n u e s Streetlight Districts Forecast 2025/ 26 2,318 2, 318 Forecast 2026/ 27 - Forecast 2027/ 28 - Forecast 2028/ 29 - - 570,133 583,900 595,600 607,500 619,600 570, 133 583, 900 595, 600 607, 500 619, 600 Total Sources 570, 133 583, 900 595, 600 607, 500 619, 600 E x p e n dit u r e s Streetlight Districts 572,451 583,900 595,600 607,500 619,600 572, 451 583, 900 595, 600 607, 500 619, 600 572,451 583,900 595,600 607,500 619,600 Total Uses 572, 451 583, 900 595, 600 607, 500 619, 600 Sources Over/(Under) Uses ( 2, 318) - - - - Ending Fund Balance Streetlight Districts Total Ending Fund Balance - - - - - Subtotal Subtotal TOTAL OPERATING BUDGET 317 Table of Contents BUDGET BY FUND | Special Districts Fund 74)'-%0(-786-'877396')7 7TIGMEP(MWXVMGXW7SYVGIWJSV*=IUYEPQMPPMSR[LMGLMWVIPEXMZIP]JPEXGSQTEVIHXSXLI*=EHSTXIHFYHKIX 7SYVGIWMRGPYHI7XVIIXPMKLX(MWXVMGXWVIZIRYI[LMGLMWHIVMZIHJVSQXLIPIZ]EWWIWWIHSRTVSTIVX]S[RIVW[MXLMRXLIGMX] WWXVIIXPMKLX HMWXVMGXW 786))80-+,8(-786-'87 *=XS*= MRQMPPMSRW 7XVIIXPMKLX(MWXVMGXWVIZIRYIVITVIWIRXWXLIPIZ]EWWIWWIHSR TVSTIVX]S[RIVW[MXLMRIEGLSJXLIGMX]’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able of Contents BUDGET BY FUND | Special Districts Fund 74)'-%0(-786-'87*92(&%0%2') +VS[XLSJJYRHFEPERGISGGYVW[LIRWSYVGIWI\GIIHYWIW%R]JYRHFEPERGIEGLMIZIHHYVMRKEJMWGEP]IEVMWXLIRVIFYHKIXIHXLI JSPPS[MRKJMWGEP]IEVXSYPXMQEXIP]OIITXLIVIWIVZIEXEFEPERGI%LMWXSVMGEPWYQQEV]SJXLIGMX]’W7TIGMEP(MWXVMGXW*YRHIRHMRK FEPERGIMWEWJSPPS[W 786))80-+,8(-786-'87 *=XS*= MRXLSYWERHW 8LI*=7XVIIXPMKLX(MWXVMGXWIRHMRKJYRHFEPERGIMW TVSNIGXIHXSFI8LIIRHMRKFEPERGIJVSQXLI*= ]IEVIRHJSVIGEWXEQSYRXSJMWGEVVMIHJSV[EVHXS*= ERHMWEZEMPEFPIXSFIVIFYHKIXIHYPXMQEXIP] VIHYGMRKXLII\MWXMRKVIWIVZIXSEFEPERGI *36)'%78 &9(+)8 %'89%0*36)'%78 319 Table of Contents FY 2024/25 Proposed Budget 320