CITY OF COTTONWOODFY 2014 Proposed Budget Overview

City Council Chambers June 17, 2013 @ 6:00 P.M.

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Topics of discussion

Glossary of Acronyms FY 2014 Budget Summary

Personnel Programs <$35K Capital

Major Revenues Update Funding Outside Agencies Water & Wastewater Rates Financing Needs Reserve Funds Status Future Meetings & Questions

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Glossary of Acronyms

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Glossary of Acronyms

ADOT – Arizona Department of Transportation ADEQ – Arizona Department of Environmental

Quality ASRS – Arizona State Retirement System ADWR – Arizona Department of Water Resources AZ - Arizona CAF – Capital Accumulation Fund CATS – Cottonwood Area Transit System CDBG – Community Development Block Grant CIP – Capital Improvements Plan/Program COLA – Cost Of Living Adjustment DOJ – Department of Justice DPS – Department of Public Safety DS – Debt Service DUI – Driving Under the Influence

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Glossary of Acronyms

E-MOD – Experience Modifier EMS – Emergency Medical Services FAA – Federal Aviation Administration FmHA – Farmers Home Administration FY – Fiscal Year GADA – Greater Arizona Development Authority GF - General Fund GOHS – Governor’s Office of Highway Safety HURF – Highway User Revenue Fund IGA – Inter-Governmental Agreement IT – Information Technology LP – Lease Purchase LTAF – Local Transportation Assistance Fund MPC – Municipal Property Corporation

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Glossary of Acronyms

MP Room – Multi Purpose Room O&M – Operation & Maintenance P&Z – Planning & Zoning PANT – Prescott Area Narcotics Taskforce PSPRS – Public Safety Personnel Retirement System SAFER – Staffing for Adequate Fire and Emergency

Response SCBA – Self Contained Breathing Apparatus Sp Ops – Special Operations SRO – School Resource Officer VLT – Vehicle License Tax WIFA – Water Infrastructure Finance Authority WWTP – Wastewater Treatment Plant YC – Yavapai County

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FY 2014 Budget Summary

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2014 Budget SummaryPersonnel

•Currently no additional staffing is in the budget

Dept Job DescriptionRequested

RangeRange Parameters

Est. Salary (min +5%)

BenefitsEst. Annual

Costs

NEW PERSONNEL

Admin Marketing Coordinator/PIO 18 37,333 43,227 55,016 39,200 15,680 $54,880

Fire Assistant Fire Chief 33 77,613 89,867 114,373 81,494 32,597 $114,091

Police Communication Specialist 15 32,250 37,342 47,525 33,863 13,545 $47,408

Police Communication Specialist 15 32,250 37,342 47,525 33,863 13,545 $47,408

Police Records Clerk 13 29,252 33,870 43,106 30,715 12,286 $43,000

Police Communications Supervisor 20 41,160 47,658 60,655 43,218 17,287 $60,505

Utilities Electrical Technician 15 32,250 37,342 47,525 33,863 13,545 $47,408

296,213 118,485 414,699

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2014 Budget SummaryPersonnel

Items currently included: Cost Of Living Adjustment (COLA) – 1.7%

Longevity - $45,000

Merit program fully funded this fiscal year

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2014 Budget SummaryPersonnel

Health insurance premiums increased by 6.5% City continues to fund a portion of dependent

coverage No health insurance cost shift to employees

Reserve the right to adjust during the year

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2014 Budget SummaryPersonnel

Dental Coverage Employer Employer TotalVoluntary Vision

CoverageEmployer Employer Total

Employee $42.00 $0.00 $42.00 Employee $0.00 $9.21 $9.21

Employee + Spouse $71.40 $12.60 $84.00 Employee + Spouse $0.00 $13.90 $13.90

Employee + Child(ren) $63.60 $5.40 $69.00 Employee + Child(ren) $0.00 $14.88 $14.88

Employee + Family $81.00 $26.00 $107.00 Employee + Family $0.00 $23.78 $23.78

* All these costs are monthly based

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2014 Budget SummaryPersonnel

Arizona State Retirement – 0.40% increase FY 2014 – 11.14% to 11.54%

PSPRS Fire – 2.18% increase FY 2014 – 14.63% to 16.81%

PSPRS Police – 4.98% increase FY 2014 – 24.90% to 29.88%

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2014 Budget SummaryPrograms

New Programs for FY 2014 Shared Safety Consultant

New Program Requests FY2014FY2014

ApprovedDog Park Shade Structure $3,000

Boys & Girls Club $25,000

Old Town Center for the Arts $20,000

Finance

Fixed Asset Audit $20,000

Human Resources

Safety Consultant(In Budget) $25,000 $25,000

Police Dept.

C.A.L.E.A Accreditation 10,400

Public Works

Service Contract for traffic signal 10,000

Transfer Station Increase - 80,000

Wood Chipping 1,000

Maintenance

Replace door Hardware Public Safety Building $8,000

Completion of City Skate Park 31,500

HVAC air filter line item account only reduced op supplies3,000

City wide Fire Extgr, alarm and sprinkler contract 3,000 Total Program Requests General Fund $239,900 $25,000

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2014 Budget Summary <$35K Capital Outlay

Department Item Description AmountFire Self Contained Breathing Appartus - SCBA $150,000

EKG Monitor/Defibrillators (2) 60,000Staff Vehicle Replacement 50,000Thermal Imaging Cameras (2) 30,000Office Furniture Replacment 10,000

Police Patrol Vehicles (2) 91,388

Water Utility Trucks (2) 55,000Pickup Trucks (2) 56,000Handheld Thermal Imaging Device 8,500

Total Capital Budgeted - FY 2014 $510,888

FY 2013 Lease Purchase Funding

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2014 Budget Summary <$35K Capital Outlay

New Requests FY 2014 FY 2014 FY 2014Under $35,000 Requests Approved

AdminDesktop Computers 1,800 Black Hills Round-about Statute Partnership 25,000 CouncilUpdate Portal Signs to the City 15,400 City ClerkDesktop Computers 1,800 Police Dept.Domain Controller Server 6,700 Phone System Upgrade 29,000 Computer Replacement Program 18,000 Core Switch Replacement 1,650 Duty Weapons 4,000 Weapons Maintenance Parts 1,500 Simmunition Equipment 3,000 Evidence Building Fire Alarm 4,300 Body Worn Cameras 58,600 Rifles 3,000 - Steel Targets for the Range 2,000 Safety Sound Suppressors 5,000 Tasers 13,700 Mobile Radios 4,700 Multi-purpose Rooms Tables/Chairs 8,500 Laser Lidar Radar purchase 3,915 Police K9 Upgrade (high heat notification system) 3,000

New Requests FY 2014 FY 2014 FY 2014Under $35,000 Requests Approved

Economic DevelopmentBAC Laptops 1,500 FireComputer & Software Replacement Program 10,000 Officer & Station Equip 10,000 Physical Fitness Eq (including for new stations) 4,000 Communications/Radio/MCT' Infr 20,000 Emergency Operations Center Equip. (LP) 10,000 10,000 Parks & RecHand-held radio Equipment 3,000 Recreation CenterRec Cntr - 5-year Cap Repl Fund 25,000 Comm. DevDesktop Computers 1,500 Public WorksRe-Sealing of Library & Public Safety Bldgs 11,900

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2014 Budget Summary <$35K Capital Outlay

New Requests FY 2014 FY 2014 FY 2014Under $35,000 Requests Approved

MaintenanceTurf Mower Decks 19,000 New Gator for Riverfront Park 16,000 Skate Park Construction 29,600 Elm/Viejo park Const Proj - INFO MORGAN 25,000 StreetsStreet Light at 6th & Aspen 6,000 LibraryCarpet 35,000 AirportReconstruction of Airport Security gates 20,000 Sewer - O&MWastewater Treatment Basin Lighting 9,000 Water - O&MWater system operator’s laptop 7,000 Trailer Mounted Generator 45,000 Arsenic Remediation Regeneration Trailer 57,570 Water/Sewer - ADMINUsed Truck 30,000 Total Under $35,000 Capital Requests 585,635 10,000

There is $147,340 reserved for capital, programs, and operations.

Concern that departments cut too deep

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Major revenues update

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2014 Budget Summary

Revenue Fiscal Year HighestSource Notes 2011 2012 2013 2014 Collection Year

Local Sales Tax 1 $10,319,948 $10,551,049 $10,928,269 $11,332,615 $10,102,433 2008State Shared Income Tax 2 $1,057,034 $950,774 $1,150,590 $1,256,780 $1,623,403 2009State Shared Sales Tax $833,600 $880,250 $941,980 $973,380 $1,032,214 2007Motor Vehicle Tax $582,707 $602,832 $585,370 $586,200 $695,836 2006Bed Tax $101,677 $104,143 $108,000 $110,000 $120,484 2009HURF 3 $806,385 $713,231 $794,145 $794,630 $979,659 2007

1 - Sales Tax hihgest number in 2008 was at the 2.2% rate. At the current 3% it would be $13,766,0452 - Collection from 2007 (Pre-economic downturn)3 - State is hindering this revenue

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2014 Budget Summary

The Good Current GF reserve policies are being maintained Local economy showing signs of improvement Local sales tax is budgeted for small increase 3.7%

The Bad Fund Balance Policy not being followed in other funds Costs growing faster than revenues Too many demands on the City for support

Outside agencies Schools County

State still holding HURF hostage LTAF has not returned Loss of current Dispatch partners

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Funding Outside Agencies

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Funding Outside Agencies

Core Services – organizations providing a core or mandatory service on behalf of the City, that the City would otherwise have to provide.

Value Added Benefit Service – organizations providing an ongoing service that provides a value added benefit to the community, though not mandatory, would probably be provided by the City in some manner.

Program Funding – organizations, not considered providing the services described above, seeking funding for a specific program, or event.

Building Better Community Grants - $15,000 is budgeted

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Funding Outside Agencies

Organization FY 2013 FY 2014

Old Town Association $13,000 $10,000

Senior Center $45,000 $45,000

Veterans Van $2,500 $2,000

Humane Society $40,000 $41,200

Catholic Charities $10,000 - $15,000

$10,000 - $15,000

Chamber of Commerce

Estimate $108,000

Proposed $110,000

New Requests

Old Town Center for Arts

$0 $20,000 request

Boys & Girls Club Received $10,000

$25,000 request

These organizations will be presenting on Thursday prior to wrap-up.

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Water & Wastewater Rates

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Water & Wastewater Rates

There is a strong need for rate adjustments Water - Lack of Debt Service Coverage – Should be

1.35X Continue to look for efficiencies in both systems Moody’s & S&P statements are on-line

Moody’s downgraded Cottonwood May 11, 2011 S&P downgraded Cottonwood June 12, 2013 Syncora issued a Notice of Noncompliance to our Water

Bonds Trustee - Bank of New York Trust Co.

Rate Study presentation was on June 11th

Notice of Intent to Increase Water & Sewer Rates will be presented tomorrow

Any implementation is anticipated by October 1st

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Financing Needs

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Financing Needs

HURF $4,700,000

possible MPC bond

12th Street and Mingus Street Improvements

• Currently this is the only anticipated borrowing

• Refunding of the Water Bonds are not in the budget since the decision was made to wait until the City got closer to the call dates of the bonds, and improved bond coverage. That being November 2014 and January 2016

• We are contemplating bonding for:• Communication Center• City Hall Complex

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Reserve Funds Status

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GF Reserve Funds Status

60 Days Coverage $2,268,830 Capital Accumulation Fund $1,000,000 Undesignated Reserves

$100,000 1% Sales Tax GF Capital $324,750 0.2% Sales Tax PS Capital Fund

$0 Reserve for Capital / Programs $147,340 Longevity Plan $45,000

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Future Meetings

Wednesday, June 19th at 6 p.m.

Thursday, June 20th at 4:00 p.m.

Questions????