2013 Budget Presentation Assembly Worksession October 12, 2012 - PowerPoint PPT Presentation

2013 Budget Presentation Assembly Worksession October 12, 2012 Presented by: Mayor Dan Sullivan Lucinda Mahoney, CFO George Vakalis, Municipal Manager Marilyn Banzhaf, Acting Budget Manager October 12, 2012

Agenda  Plan A and Plan B Overview  Policy Discussion of Revenue Options • 2012 SOA ASD limit • 2013 ASD tax capacity  General Government • Revenue Forecast • Expenditures by Department • 6 Year Plan ‐ Overview  Capital

Plan A and Plan B   Plan A Plan B • Significant reductions to services • Description included in 2013 to balance budget Budget Book page 2 ‐ 4 • Detail support in Budget book • Use of excess tax capacity of $13.5M that cannot be used by ASD • Introduced to Assembly on • $12M for general government, 10/9/2012 $1.5M for contribution to ASD • Restores most services from Plan A • “S” version details provided to Assembly on Oct. 12, 2012

2013 Budget ‐ Overview 2013 Plan B Plan B 2012 Cont. Delta 2013 2013 Continuation Delta to Delta to Budget to 2012 Plan A Plan B Millions $$ Budget 2012 2012 Expenditures $ 454.6 $ 477.8 $ 23.2 $ 448.6 $ 462.1 $ 7.5 5% 1.7% Revenue Property Taxes $ 241.6 $ 249.2 $ 7.6 $ 249.2 $ 262.2 $ 20.6 3% 8.5% * ** Other Local Revenues $ 171.7 $ 169.8 $ (1.9) $ 172.2 $ 172.7 $ 1.0 ‐ 1% 0.6% IGC $ 29.3 $ 29.1 $ (0.2) $ 30.2 $ 30.2 $ 0.9 ‐ 1% 3.1% Fund Balance (Program generated) $ 11.9 $ ‐ $ (11.9) $ (3.0) $ (3.0) $ (14.9) ‐ 100% ‐ 125.2% $ 454.6 $ 448.1 $ (6.5) $ 448.6 $ 462.1 $ 7.5 ‐ 1% 1.7% Surplus/Gap $ ‐ $ 29.7 $ 29.7 $ ‐ * Under Tax cap by $200k ** Assumes $13.5 M of Tax capacity that cannot be used by ASD

Policy Decision – Use of Funding Sources   2012 Fund Balance  2013 Tax Cap Re ‐ Alignment 2012 Over collection of ASD Prop Taxes $7M to $8M • Known 1Q 2013 • SB 182 ‐ SOA contributing more to local education • AR 2012 ‐ 81 on Assembly agenda for Nov. 12 • $13.7M additional tax capacity • One time funding for one time costs • One time opportunity; use it or lose it • Recommendations on next page • Sustainable, ongoing support of operating costs

2012 Over Collection of ASD Prop Taxes ($7 to $8M) List of One Time Spending Recommendations  Fund 181 – Building Permits $4 M  CAMA system $5 M  Legal Reserve Fund $1 M  Police Academy (vs. Forfeiture funds) $.5 M  Fire Academy $.5 M  AWARN Radio System $2.7M

Property Taxes 600 Estimated Tax impact for 500 $100k home (MOA + ASD)* 400 • 2013 Plan A ‐ $8.00 234 234 239 ASD • 2013 Plan B ‐ $49.00 300 million’s MOA 200 262 249 242 *Assumes no change to 100 assessed value 0 2012 2013A 2013B Prop Assessed Mill Tax MOA ASD Total Tax Change value Rate $100,000 Change $ millions 2012 242 239 481 31,529 15.26 1,526 2013A 249 234 483 0.5% 31,529 15.33 1,533 $ 8 2013B 262 234 496 3% 31,529 15.74 1,574 $ 49

Expenditures ‐ Overview 2013 Cont. Plan B Plan B 2012 2013 2013 Continuation Delta to Delta Delta to Budget Plan A Plan B Budget 2012 to 2012 2012 Millions $$ Labor 247.2 262.8 $ 15.6 $ 246.0 $ 257.0 $ 9.8 10% 4.0% Debt Service 56.8 57.1 $ 0.3 $ 51.8 $ 51.8 $ (5.0) 0% ‐ 8.8% Non Labor/Other 150.6 157.9 $ 7.3 $ 150.5 $ 153.3 $ 2.7 5% 1.8% Total 454.6 477.8 $ 23.2 $ 448.3 $ 462.1 $ 7.5 5% 1.6% Continuation Budget Changes: Labor Increases ‐ $15.6 Million or 10% Salaries $5.4 PIP Education $1.7 Health Insurance $3.4 Retire, SS, MC $2.4 Un ‐ Cap Labor $0.6 Non Labor P&F Pension $4.0

Positions ‐ Overview 2012 Budget Positions 2,274 2013 Proposed Positions - Plan A 2,087 2,205 2013 Proposed Positions - Plan B Plan A Plan B Position Changes by Department Filled Vacant Total Filled Vacant Total Community Dev (3) (3) (6) (3) (3) (6) Employee Relations (1) 5 4 (1) 5 4 Finance (6) (3) (9) (3) (3) (6) Fire (12) (9) (21) (1) (9) (10) Health & Human Srvs ‐ (3) (3) ‐ (2) (2) ‐ (3) (3) ‐ (3) (3) Info Tech Internal Audit 1 ‐ 1 1 ‐ 1 Library (7) (4) (11) ‐ ‐ ‐ Muni Attorney (2) (3) (5) (2) (3) (5) Municipal Manager ‐ 2 2 ‐ 2 2 Parks and Rec (16) (36) (52) (10) (2) (12) Police (29) (19) (48) ‐ (19) (19) Public Transportation (17) ‐ (17) ‐ ‐ ‐ (1) (4) (5) (1) 2 1 Public Works Purchasing ‐ (2) (2) ‐ (2) (2)

Revenue ‐ Overview 2012 1Q Budget $ millions 413.4 Less: SOA One time revenue sharing ‐ 6 Property Tax 7.5 Auto Tax 1.7 MESA/MUSA 1.7 Hotel Motel 1.6 Pilt 0.8 Fee Increases: Ambulence Fee Increase 1.5 Misc. ‐ 0.8 See AM Support for details 2013 Plan A 421.4 Property taxes 13.5 Eagle River Parks/Rec SA ‐ 0.4 Bus Fare due to adding back routes 0.5 2013 Plan B 435

Service Impacts by Department ‐ Police 2012 Bud 2013 Cont 2013 2013 Plan A Plan B $ millions Labor $70.6 $76.4 $70.7 $74.1 Non-Labor $21.8 $24.1 $23.4 $23.8 Reductions ‐ Plan A Reductions ‐ Plan B 000’s Police $ 6,534 $ 2,658 ‐ Reduce 19 vacant positions in patrol, detectives, Internal Affairs $ 2,260 $ 2,260 ‐ Reduce 29 filled positions, mainly new recruits; patrol, detectives, $ 3,479 $ ‐ ‐ Non ‐ Labor reductions; materials, supplies, services $ 795 $ 398 ‐ Add Police Academy (partial funding from forfeiture funds) $ (500)

Service Impacts by Department – Fire: Plan A $ millions 2012 Bud 2013 Cont 2013 2013 Plan B Plan A Labor $61.8 $65.1 $60.6 $62.1 000’s Non-Labor $24.3 $26.5 $25.5 $25.8 Reductions ‐ Plan A Fire $ 5,109 ‐ Reduce staffing level by 10 vacant positions to SAFER grant minimum. No impact on current service $ 1,472 ‐ Reduce overtime resulting in fewer engines/equipment available. Close Station 15 (South Port), Truck 11 (Eagle River). $ 2,321 ‐ Reduce firefighters by 11 positions in May 2013 upon expiration of SAFER grant. Close Station 10 (Rabbit Creek) and Station 14 (Tudor). $ 713 ‐ Reduced contract, materials supplies $ 603

Service Impacts by Department – Fire: Plan B $ millions 2012 Bud 2013 Cont 2013 2013 Plan B Plan A Labor $61.8 $65.1 $60.6 $61.9 Non-Labor $24.3 $26.5 $25.5 $25.8 000’s PLAN B ‐ ALL STATIONS REMAIN OPEN Reductions ‐ Plan B $ 3,596 ‐ Reduce staffing level by 10 vacant positions to SAFER grant minimum. No impact on current service $ 1,472 ‐ Reduce overtime by placing Tender 9 and Truck 11 out of service due to staff shortfall as required $ 1,690 ‐ Reduce firefighters by 11 positions in May 2013 upon expiration of SAFER grant. Close Station 10 (Rabbit Creek) and Station 14 (Tudor). ‐ Reduced contract, materials supplies, fuel $ 434

ISO Rating and Response Times   ISO Rating Based on the following: ISO Impact to Insurance Premiums • 10% Alarms and Dispatch • State Farm does not use at all. Factors evaluated include: • 40% Water Supply • Losses within a zip code • 50% Fire Department • Owner’s history  Anchorage is rated 2 (1 best, 10 worst) • Distance from hydrant/station  Last ISO rating was within the past few years and may not be rated for many • Allstate changes premiums when years in the future the rating exceeds 5 and considers: • Location • Past losses • Credit score

Service Impacts by Department – Parks and Rec $ millions 2012 Bud 2013 Cont 2013 2013 Plan B Plan A Labor $10.2 $10.9 $8.9 $10.0 Non-Labor $11.1 $11.5 $10.3 $11.0 000’s Reductions ‐ Plan A Reductions ‐ Plan B Parks and Rec (net of revenues) $ 2,727 $ 1,559 ‐ Reduce Horticulture Program from $2.1M to $1.6M $ 496 $ 515 ‐ Reduce Park Maintenance $ 355 $ 113 ‐ Reduce Rec center hours $ 515 $ 204 ‐ Reduce Rec center program $ 318 $ 214 ‐ Unfund three Community work service officers $ 318 $ 318 ‐ Reduce contributions to Arc, Camp Fire, YEP,B&G Club $ 688 $ 158 ‐ Suspend public swim programs at Service High $ 37 $ 37

Service Impacts by Department – Public Works $ millions 2012 Bud 2013 Cont 2013 2013 Plan B Plan A Labor $29.7 $31.0 $30.8 $31.0 Non-Labor $80.6 $81.0 $74.4 $75.4 000’s Reductions ‐ Plan A Reductions ‐ Plan B Public Works $ 1,950 $ 690 ‐ Reduce "as needed" residential contract snow hauling $ 370 $ ‐ ‐ Reduce street maintenance: 6 seasonal part time positions, reduced overtime, reduce garden program, supplies, efficiencies with NPDES, professional services, increase GIS positions $ 1,080 $ 540 ‐ Reduced facility maintenance $ 500 $ 150

Service Impacts by Department – Community Development $ millions 2012 Bud 2013 Cont 2013 2013 Plan Plan A B Labor $12.7 $13.4 $12.6 $12.6 Non-Labor $1.1 $1.1 $1.0 $1.0 000’s Reductions ‐ Plan A Reductions ‐ Plan B $ millions Community Development $ 754 $ 754 ‐ 2 vacant planning positions (Plan Spvs Land use review & Jr. Admin Officer) $ 219 $ 219 ‐ 1 filled Land Use Enforcement Senior Planner; transfer person to another position $ 124 $ 124 ‐ 1 vacant senior planner $ 137 $ 137 ‐ Unfund GIS filled position $ 87 $ 87 ‐ 1 filled Associate long range planner $ 123 $ 123 ‐ Add new Plan reviewer/front counter permit technician $ (81) $ (81) ‐ 1 vacant senior transportation planner $ 145 $ 145