TENTATIVE/ PROPOSED BUDGET Fiscal Year 2020–2021 Presented by: Dr. Ronald R. Heezen , Executive Director Fred James , CPA, Deputy Director/CFO Floresto Cabias , CPA, Assistant Finance Director 1
FY 2020-2021 Budget Strategy Reen engi ginee eering f g for an Evolving Future 2 Tentative / Proposed Budget FINANCIAL SERVICES 2
Historical Background The Great Recession General Fund: o Consolidated Sales Tax (CTX) Current year is expected to drop by as much as 14% from budget in the amount of $3.4M from $24.2M to $20.7M Matches the downward trend seen during the last recession, bringing revenues to 2014 levels o Property Tax Drop to around 10% for 3 straight years due to: • Drop in Assessed Property Values • High foreclosures Remain at that level for 2 years before rising • 3% Residential • 8% Commercial • Limited by CPI growth Tentative / Proposed Budget FINANCIAL SERVICES 3
Historical Background (Cont.) The Great Recession o Capital Projects Fund Established and to be used as a Rainy Day fund under catastrophic circumstances o There was no shut down of the economy High unemployment rate for several years Tentative / Proposed Budget FINANCIAL SERVICES 4
Revenues Economic Impact – Current FY 2019-20 General Fund: o Consolidated Sales Tax (CTX) Current year is expected to drop by as much as 15% from budget in amount of $3.6M from $24.2M to $20.7M o Property Tax We expect to collect all budgeted current year property tax revenue for FY 2019-20 of $44.9M Tentative / Proposed Budget FINANCIAL SERVICES 5
Revenues (Cont.) Economic Impact – Budget FY 2020-21 General Fund: o Consolidated Sales Tax (CTX) Budgeted CTX is expected to drop an additional 14.2% ($2.9M) from the estimated Current Year actual of $20.7M to $17.8M o Property Tax Collection of all budgeted current year property tax revenue for FY 2020-21 is questionable • Budgeted amount - $49.3M an increase of $4.4M over Current Year budget o Expected and continued high unemployment rate Tentative / Proposed Budget FINANCIAL SERVICES 6
Consolidated Sales Tax Economic Impact Consolidated Tax 19-20 Consolidated Tax 20-21 % Increase % Increase FY19 FY20 Over FY18 FY20 FY21 Over FY19 85% July 1,826,540.60 1,911,539.33 4.65% 1,911,539.33 1,624,808.43 -15.00% 85% August 1,832,910.32 1,977,855.19 7.91% 1,977,855.19 1,681,176.91 -15.00% 85% September 2,021,329.13 2,129,047.65 5.33% 2,129,047.65 1,809,690.50 -15.00% 85% October 1,795,589.90 1,975,666.37 10.03% 1,975,666.37 1,679,316.41 -15.00% 85% November 1,917,307.97 1,989,189.12 3.75% 1,989,189.12 1,690,810.75 -15.00% 85% December 2,221,539.92 2,445,754.63 10.09% 2,445,754.63 2,078,891.44 -15.00% 85% January 1,810,148.73 1,923,222.53 6.25% 1,923,222.53 1,634,739.15 -15.00% 85% February 1,721,369.96 1,734,892.48 0.79% 1,734,892.48 1,474,658.61 -15.00% -35.86% 60% 90% March 2,215,572.16 1,421,123.23 1,421,123.23 1,279,010.91 -10.00% -35.86% 60% 90% April 1,928,303.84 1,236,862.17 1,236,862.17 1,113,175.95 -10.00% -51.89% 45% 90% May 1,995,526.81 959,985.49 959,985.49 863,986.94 -10.00% -51.89% 45% 90% June 2,157,180.02 1,037,751.79 1,037,751.79 933,976.61 -10.00% 23,443,319.36 20,742,889.98 -11.52% 20,742,889.98 17,864,242.62 -13.88% Tentative / Proposed Budget FINANCIAL SERVICES 7
Total Available Resources – All Funds Total – $97. 7.2M 2M: 26% 26% Source ces Property Tax – $49.3M [PERCEN ENTAGE] E] Consolidated Sales Tax – $17.8M 51 51% [PERCEN ENTAGE] E] Fines and Forfeits/Misc. – $1.9M 2% 2% 18% Intergovernmental Revenue – $1.8M Charges for Services – $0.6M Beginning Fund Balance – $25.8M Tentative / Proposed Budget FINANCIAL SERVICES 8
Assessed Value Assesse Asse sed Valua luation n FY 2011-2021 Property tax is b s base sed d on Asse ssessed 80 Valua uation (AV) o of pr property 70 2020 60 2020-202 2021 A AV: $75.2 .2B, a an 8% i increase o over 50 llions) 201 019-2020 2020 Billi 40 In B (In 30 Property t tax repre resents 69 % % of f tota tal re revenues ($49. ($49.3M) 20 10 - 2010-11 2012-13 2014-15 2016-17 2018-19 2020-21 Fiscal Ye Year Tentative / Proposed Budget FINANCIAL SERVICES 9
Property Tax Revenues Pr Property T Tax ax Reven enues es F FY 201 011-2021 Pro roperty t taxe xes 60 FY 2 2021 21 – $49.3 .3M B M Budgeted FY 2 2020 020 – $44.9 .9M B M Budgeted 50 FY 2 2019 19 – $43. 43.0M Ac Actual FY 2 2018 18 – $40. 40.6M 6M Ac Actual 40 llions) FY 2 2017 17 – $38. 38.6M Ac Actual 30 FY 2 201 016 – $37.9 .9M A M Actual Mill In Mi FY 2 2015 15 – $36. 36.7M Ac Actual (In 20 FY 2 201 014 – $36. 36.7M Ac Actual FY 2 201 013 – $36. 36.2M Ac Actual 10 FY 2 2012 12 – $39. 39.6M Ac Actual FY 2 201 011 – $43. 43.4M Ac Actual - 2011 2013 2015 2017 2019 2021 Fis iscal Y Year ar Tentative / Proposed Budget FINANCIAL SERVICES 10
The District’s Property Tax Rate Tax ax r rat ate: G : Gener eneral al Fund und $.0 .0942 Total al t tax ax rat ate: e: $.0 .0942 p per er $100 A AV Pr Proper erty t tax ax r rat ate p e per er $100K p pays ab about ut $32. 32.97 y yearly o or $2. 2.75 m 75 monthly Tentative / Proposed Budget FINANCIAL SERVICES 11
Consolidated Sales Tax Revenue Consolidat ated Sales Tax Reven enue e FY 2011-2021 CTX is is a combin ination of of Cit ity/County R Relief ( (sales) a and 25 miscella llaneou ous t taxes d distribu buted to most C Clar ark County public e entities a according t to Stat ate f formula la 202 2020-2021 e estima mate: $ : $17.8 .8M, a , a decrease se o of $6. $6.4M 20 CTX revenue a accounts f s for 6.0 .0% % of all r all revenues llions) 15 CTX r X revenue is v volat latile le Mill In Mi All o ll other r revenues ac account f for: (In 10 Grants a and G Gifts, F Fines s and F Forfeits, I s, Interest, , Contracts 5 $4.3 .3M or or 1 11.5% of of the bu budget - 2011 2013 2015 2017 2019 2021 Fiscal Ye Year Tentative / Proposed Budget FINANCIAL SERVICES 12
Total Uses of Available Resources – All Funds .01 01% [PERCEN ENTAGE] E] Total – $97. 7.2M 2M: 4% 4% Use ses an and d Fund Bal Balance — General Fund – $70.1M [PERCEN ENTAGE] E] Capital Projects Fund – $4.1M Special Revenue Funds – $2.6M Debt Service Fund – $.01M 72% 72% Ending Fund Balance – $20.4M Tentative / Proposed Budget FINANCIAL SERVICES 13
General Fund The Gene neral F Fund und i is the o e oper perating fund for t the Di e District. It is is u used to ac account for al all fin inancia ial r resources exce cept for or t thos hose r required to b o be a acco ccounted f for or in n ano nother f fund und. 14 14 Tentative / Proposed Budget FINANCIAL SERVICES 14
Total Available Resources – General Fund Total – $85. 5.1M 1M: Source ces 51 51% 19 19% Property T Pr Tax ax – $49.3M Consolidat ated Sales Tax – $17. 7.8M Fines a and Forfeit its/Mis Misc. – $1.2M Charges ges for S Services es – $0.6M [PERCEN ENTAGE] E] Beginni ning ng F Fun und Balanc nce – $16.2M 27% 2% 2% Tentative / Proposed Budget FINANCIAL SERVICES 15
Total Uses of Available Resources – General Fund Total – $85. 5.1M 1M: [PERCEN ENTAGE] E] Uses s Expenditures – $70.1M 82% 82% Ending Fund Balance – $15.0M * Ending Fund Balance is 18% of Total Available Resources Tentative / Proposed Budget FINANCIAL SERVICES 16
General Fund – By Function Total E l Expe pendi ditures b by Function – $70. $70.1M: Program m Deliver ery S Services es – $28. $28.1M 1M 25% 25% 40% 40% Program S Supp upport S Services – $2 $24. 4.6M 6M Administra rative S Support S Servi vices – $1 $17.4M 4M 35% 35% Tentative / Proposed Budget FINANCIAL SERVICES 17
General Fund – By Activity Total l Ex Expenditures b by A y Act ctivity – $70. 70.1M 1M: Source ces 15 15% Sal alar aries an and Benefit its – $44.3M 22% 22% Ser Services and Su d Supplies – $15.3M 63% 63% Librar ary y Materials als – $10.5M Tentative / Proposed Budget FINANCIAL SERVICES 18
Expenditure Decreases Genera ral F l Fund e expenditure res d decreased b by $2. 2.7M 7M (3.7% 7%): Sal alar aries an and b ben enef efits d dec ecreas ased b by $1. 1.5M (3.3 .3%): : Primarily d due ue to freezing vacant nt po positions and nd pot otent ntial c concessions ons t to reduc uce s salary incre reases and health h insura rance c costs Services a and s supplies d decre creased b by $898K $898K (5. (5.5% 5%): ): Conc Co ncerted e effort t to limit c cont ntracts to essential services Li Library m materials i increased by y $322 322K (3. 3.0% 0%) Tentative / Proposed Budget FINANCIAL SERVICES 19
Ending Fund Balance Gener eneral al F Fund und Bud udget End nding F Fun und B Balanc nce of $15 15.0M is s 21 21% of F f FY 2020 2020-202 2021 e expenditu tures, but 1 t 18% 8% of f Tota tal A Available R Resource ces Necessary to pr provide liquidity for c cash o out utflows Acts as a cus ushion d dur uring econo nomic d downt nturns Tentative / Proposed Budget FINANCIAL SERVICES 20
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