Click to edit Master title style City Financial Policies FY 2014 Six Plus Six Financial Report FY 2015 to FY 2019 Five Year Forecast Sher eryl Sculley lley, City ity Manag anager Ben G en Gorzell ll, Chief ief F Financ inancia ial l Offic icer er Mar aría a Villag Villagómez, Budg dget et Dir irec ecto tor City Council “B” Session May 14, 2014 FY 2014 Six Plus Six Report & Five Year Financial Forecast 1 City of San Antonio
Ag e nda 1. F ina nc ia l Po lic ie s Pre se nte d b y Be n Go rze ll, – Chie f F ina nc ia l Offic e r 2. F Y 2014 Six Plus Six F ina nc ia l Re po rt, Mid-Ye a r Budg e t Adjustme nt & F Y 2015 to F Y 2019 F ive Ye a r F ina nc ia l F o re c a st Pre se nte d b y Ma ría Villa g ó me z, – Budg e t Dire c to r FY 2014 Six Plus Six Report & Five Year Financial Forecast 2 City of San Antonio
F inanc ial Po lic ie s • T o da y’ s pre se nta tio n pro vide s City Co unc il with re c o mme nde d upda te s to fina nc ia l po lic ie s • Re c o mme nda tio ns to b e inc lude d in F Y 2015 Budg e t FY 2014 Six Plus Six Report & Five Year Financial Forecast 3 City of San Antonio
Munic ipal Bo nd Rating & I mplic atio ns • Munic ipa l b o nds issue d to fina nc e Ca pita l Pro je c ts • I nte re st a mo unt pa id o n de b t impa c te d b y ma rke t c o nditio ns a nd c re dit a na lysis o f ma jo r ra ting a g e nc ie s: – Sta nda rd & Po o r’ s – F itc h, a nd – Mo o dy’ s FY 2014 Six Plus Six Report & Five Year Financial Forecast 4 City of San Antonio
Ge ne ral Ob lig atio n Rating Ag e nc y Crite ria • Mo o dy’ s a nd S&P re vise d ra ting c rite ria in 2013 – mo re e mpha sis o n City de b t a nd pe nsio ns – mo re tra nspa re nc y a nd q ua ntita tive c rite ria • Stric te r c rite ria de mo nstra te d b y re c e nt do wng ra de s o f c itie s like Pho e nix, Chic a g o , a nd I ndia na po lis FY 2014 Six Plus Six Report & Five Year Financial Forecast 5 City of San Antonio
City o f Sa n Anto nio Bo nd Ra ting s Current Ratings of Fitch Moody's* S&P City of San Antonio Debt Prime AAA Aaa AAA • Ge ne ra l AA+ Aa1 AA+ Ob lig a tio n De b t: High AA Aa2 AA grade AAA AA- Aa3 AA- – * Mo o dy’ s with A+ A1 A+ Upper Ne g ative Outlo o k A A2 A medium grade A- A3 A- • Re ve nue a nd BBB+ Baa1 BBB+ Lower Othe r Bo nds: BBB Baa2 BBB medium A1,A+ to AA,AA1 grade BBB- Baa3 BBB- FY 2014 Six Plus Six Report & Five Year Financial Forecast 6 City of San Antonio
Ge ne ral Ob lig atio n Rating Ag e nc y Crite ria • While Mo o dy’ s c o nfirme d Sa n Anto nio ’ s AAA GO Bo nd ra ting , the ra ting a g e nc y put the City o n no tic e with ne g a tive o utlo o k – Cite d de pa rture fro m c re dit funda me nta ls – Cite d lo we r Ge ne ra l F und e nding b a la nc e a s a c ha lle ng e to ma inta in c urre nt b o nd ra ting FY 2014 Six Plus Six Report & Five Year Financial Forecast 7 City of San Antonio
Ge ne ral Ob lig atio n Rating s • Sa n Anto nio is o nly to p -te n City to ho ld “AAA” GO Bo nd Ra ting – All 3 ra ting a g e nc ie s • I f City’ s ra ting dro ps, c a pa c ity fo r ne w c a pita l impro ve me nt de c re a se s 1 : – 1 le ve l dro p - $6 to $13 Millio n in Gro ss Co st – 2 le ve ls dro p - $19 to $26 Millio n in Gro ss Co st – 3 le ve ls dro p - $38 to $45 Millio n in Gro ss Co st 1) Impact of Rating Levels on $1 Billion of Debt FY 2014 Six Plus Six Report & Five Year Financial Forecast 8 City of San Antonio
Ge ne ral F und – F und Balanc e $250 $233 $230 $217 $207 $206 $49 $61 $187 $200 $27 $30 $58 $162 $160 $50 $141 $150 $31 $31 $118 $101 $100 $87 $71 $108 $52 $99 $49 $20 $100 $14 $80 $103 $76 $61 $50 $88 $88 $89 $85 $79 $80 $68 $48 $29 $23 $23 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 2014 Estimate* Budgeted Reserve Available Other Reserves * Unaudited. [1] For 2014, other reserves are not budgeted [2] Other Reserves include Reserve for Encumbrances, Inventories of Materials and Supplies, Prepaids, and Designations. [3] Beginning FY 2011, the City implemented GASB 54, which restructured financial reporting by adding certain funds (Parks Acquisition, Economic Development Incentive, Job Training, etc.) and removing the Public Education Government Channel fund. FY 2014 Six Plus Six Report & Five Year Financial Forecast 9 City of San Antonio
Re c o mme nde d Update s 1. I nc re a se Ge ne ra l F und Budg e te d F ina nc ia l Re se rve s fro m 9 to 10% 2. E sta b lish a 1 to 3% ta rg e t fo r 2 Ye a r Budg e t/ Pla n 3. Ma na g e Cro wdo ut within Ge ne ra l F und, b a la nc e b e twe e n Pub lic Sa fe ty a nd No n Pub lic Sa fe ty b udg e ts FY 2014 Six Plus Six Report & Five Year Financial Forecast 10 10 City of San Antonio
Re c o mme nde d Update s 4. Ma na g e Struc tura l Ba la nc e in Ge ne ra l F und Alig n re c urring re ve nue s – with re c urring e xpe nse s Alig n o ne -time re ve nue s – with o ne -time e xpe nse s 5. Mo de ra te ly c o nse rva tive re ve nue pro je c tio ns b a se d o n c urre nt e c o no mic c o nditio ns a nd histo ric a l tre nds FY 2014 Six Plus Six Report & Five Year Financial Forecast 11 11 City of San Antonio
Re c o mme nde d Update s 6. E sta b lish $1 Millio n c o nting e nc y re se rve fo r Ge ne ra l F und; a nd $3 Millio n c o nting e nc y re se rve fo r c a pita l b udg e t Use o f the se c o nting e nc ie s will b e sub je c t to City – Co unc il vo te thro ug h a n a do pte d o rdina nc e 7. Addre ss I nte rna l Se rvic e F und De fic its within 3 to 5 ye a rs 8. Ava ila b le fund b a la nc e ta rg e t o f 15% FY 2014 Six Plus Six Report & Five Year Financial Forecast 12 12 City of San Antonio
Click to edit Master title style FY 2014 Six 2014 Six Plus us Six Six Fin inan ancia ial Repor eport FY 2014 Six Plus Six Report & Five Year Financial Forecast 13 13 City of San Antonio
F Y 2014 Ado pte d Budg e t $2.3 Billion Consolidate d Budge t Re str ic te d F unds • Airpo rt F und Ge ne r al F und • De ve lo pme nt Se rvic e s $692 Suppo rts mo st • Ho te l Oc c upa nc y T a x Million b a sic City $988 • So lid Wa ste se rvic e s: Po lic e , • Sto rm Wa te r Million F ire , Stre e ts, Pa rks, L ib ra ry, Co de $570 Capital Pr o gr am Million • 2012 b o nd pro je c ts • Airpo rt pro je c ts • Co nve ntio n Ce nte r E xpa nsio n FY 2014 Six Plus Six Report & Five Year Financial Forecast 14 14 City of San Antonio
und Ge ne r al F Pre paring fo r F Y 2015 Budg e t • F Y 2014 pro je c te d ye a r-e nd fina nc ia l po sitio n is $44 Millio n b e tte r tha n a t b udg e t a do ptio n – Almo st ha lf due to o ne -time CPS re ve nue s • Cha lle ng e s e xist fo r F Y 2015 – Pro je c te d $27 to $34 Millio n de fic it – Rising e mplo ye e he a lthc a re c o sts – Ma inta ining AAA b o nd ra ting – Unfunde d ne e ds (stre e ts, pa rks, ma inte na nc e o f c ity fa c ilitie s) – Ma inta ining he a lthy e nding b a la nc e FY 2014 Six Plus Six Report & Five Year Financial Forecast 15 15 City of San Antonio
GE NE RAL F UND AVAIL ABL E RE SOURCE S DIST RIBUT E D OVE R MAJOR SPE NDING ARE AS ($ IN MIL L IONS) Other Resources $207, 21.0% Othe r Ope ra ting Property Tax De pts - $233 Million Histo ric Pre se rva tio n Revenues Ce nte r City $254 Pla nning E c o no mic De ve lo pme nt 25.7% One -T ime Pro je c ts Do wnto wn Ope ra tio ns T ra nsfe rs Anima l Ca re Parks & Rec He a lth Police* & Fire $44 Co de E nfo rc e me nt $657 Public Works Munic ipa l Co urt Ag e nc ie s $54 Huma n Se rvic e s L ib ra ry CPS No n-De pa rtme nta l Administra tio n: Sales Tax Revenues *City Atto rne y Revenues $292 *City Cle rk *Huma n Re so urc e s $235 29.5% *F ina nc e & Budg e t 23.8% *City Ma na g e r * Po lic e Budge t inc lude s Par ks Po lic e *Ma yo r a nd Co unc il FY 2014 ADOPTED BUDGET: $988 Million FY 2014 Six Plus Six Report & Five Year Financial Forecast 16 16 City of San Antonio
und Ge ne r al F Y 2014 2 nd Quarte r F F inanc ial Status • F ina nc ia l upda te fo r FY 2014 R EVENUE F Y 2014 is po sitive ; $961.6 M F Y 2014 Budg e t fina nc ia l c ha lle ng e s $996.0 M F Y 2014 E stima te e xist fo r F Y 2015 $34.4 M Var ianc e • $34.4 Millio n o r 3.6% in mo re re ve nue FY 2014 E XPENSE • $3.9 Millio n o r 0.4% in $988.3 M F Y 2014 Budg e t mo re spe nding $992.2 M F Y 2014 E stima te $3.9 M Var ianc e FY 2014 Six Plus Six Report & Five Year Financial Forecast 17 17 City of San Antonio
und Re ve nue s Ge ne r al F F Y 2014 Six Plus Six Pro je c tio ns • E stima te d $34.4 Million in Additiona l Re ve nue CPS 80% o f $34.4 Millio n $20.2 M $6.4 M a ttrib uta b le to Colder Weather Rate Inc. unse a so na b ly c old S AL S E we athe r a nd CPS T AX $8.7 M r ate inc r e ase P ROPE Y RT ($2.2 M) T AX O T R HE $0.6 M ($10) $0 $10 $20 $30 FY 2014 Six Plus Six Report & Five Year Financial Forecast 18 18 City of San Antonio
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