Budget UpdateJanuary 14, 2010

01/14/2010 1

Non-Construction Local Sales Tax

Month3 Year

AverageFY2010 Budget

FY2010 Actual % of Budget

Projected FYE Surplus/(Deficit)

July 7.6% $1,958,600 $1,937,633 7.5% ($275,134)August 7.9% 2,022,100 1,814,964 7.1% (1,473,599)September 8.3% 2,129,200 1,894,114 7.4% (1,949,338)October 8.1% 2,086,300 1,866,362 7.3% (2,143,095)November 2,218,500 December 2,464,500 January 1,994,200 February 2,084,100 March 2,370,500 April 2,140,100 May 2,101,400 June 2,142,400

Total 31.9% $25,711,900 $7,513,073 29.2% ($2,143,095)

01/14/2010 2

FY2010 Budget Update

01/14/2010

FY2010 Budget Update

3

Construction Local Sales Tax

Month3 Year

AverageFY2010 Budget

FY2010 Actual % of Budget

Projected FYE Surplus/(Deficit)

July 9.4% $540,353 $587,144 10.2% $500,004 August 10.3% 597,499 349,390 6.1% (1,021,619)September 10.7% 615,074 527,280 9.1% (952,346)October 9.6% 556,540 330,782 5.7% (1,287,295)November 547,150 December 559,189 January 332,308 February 396,478 March 417,781 April 395,739 May 393,361 June 422,728

Total 40.0% $5,774,200 $1,794,595 31.1% ($1,287,295)

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FY2010 Budget Update

501/14/2010

Department FTE

City Attorney 2 City Clerk 1 Communications 3 Community and Recreation Services 5.8 Community Development 1 Fire Education Specialist 1 Information Technology 1 Public Works 2 Total 16.8

FY2010 Budget Update

Reductions January 2010

January Action

Eliminate 16.8 positions $300,500

  Reduce open swim at Surprise Aquatic Center 25,000

  Weekend only operations at Hollyhock Pool 21,000

Reduce Hollyhock Library operations 50% 20,000

Reduce Tennis Facility operating hours 12,500

  Reduction to Fourth of July event 15,000

Subtotal $394,000

01/14/2010 6

FY2010 Budget Update

January Action (Continued)

Subtotal from previous $394,000

  Reduce Sierra Montana operating hours 3,100

  Reduce mailing of Recreation Times 10,000

  Reduce labor distribution for special events 35,000

  Adjust budgets to department estimates 684,300

Total January Action $1,126,400

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FY2010 Budget Update

801/14/2010

Department FTE

City Attorney 3 City Clerk 1 City Court 1 City Manager 3 Communications 3 Community and Recreation Services 9.8 Community Development 18 Fire (Inspection to Building Safety) 6 Human Resources 2 Information Technology 2 Finance/Management and Budget 6 Public Works 15.5 Transportation 6 Total 76.3

FY2010 Budget Update

Reductions February 2009 - January 2010

01/14/2010 9

FY2010 Budget Update

9% decrease overall29% decrease in management

Includes 16.8 FTE eliminated January FY2010

Compensation and Benefit Changes to Employees Car allowances eliminated—directors and above

including City Manager and City Attorney Eliminated 457 or PEHP employer contribution—0.5% Eliminated potential 457 employer match—1% Reduce PTO payout by ½ in FY2009 Eliminated PTO payout in FY2010 Reduced PTO drop (80 hours to 40 or 120 to 60) Implemented $25 per month employee insurance

contribution

10/6/2009 10

Payroll Issues

FY2010 Expenditures Adjustments

Previous Operating Actions $1,225,600

Greenway Road 900,000

Bell Road Lighting and Landscaping 210,000

  Jerry Street Project grant 234,000

January Action 1,126,400

Vacant positions (to date) 749,400

Projected Total Adjustments @ January 14th $4,445,400

01/14/2010 11

FY2010 Budget Update

FY2011 Identified Negative Budget Impacts

State Share Income Tax $2,800,000

State Shared Sales Tax $678,600-1,017,900

Local Sales Tax 741,400Health Insurance increase (12% estimate) 770,600 Employer pension contribution increase 242,200

Total Negative Impacts $5,232,800 - 5,572,100

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FY2010 Budget Update

FY2011 Identified Reductions

Previous actions $1,929,600

Vacant positions 677,100

Full revenue recovery of Court 209,800

Street Light Improvement Districts 100,000

Total Identified Reductions $2,916,500

01/14/2010 13

FY2010 Budget Update

FY2011 Identified Budget Shortfall

Identified negative impacts ($5,232,800 - 5,572,100)

Identified reductions 2,916,500

Total FY2011 Shortfall ($2,316,300 - 2,655,600)

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FY2010 Budget Update

01/14/2010 15

FY2010 Budget Update

Estimated FY2011 Shortfall Comparison

State of Arizona 30%Tempe 16.1%Phoenix 12.8%Buckeye 9.3%Surprise 3.7%

FY2011 Potential Options

-Holiday Reduction (per holiday) $171,300

-Furloughs (per day) $91,400

-Pay reductions (per 1% decrease) $478,200-Increase employee insurance contribution (per 1% of increase) $64,200

-Increase sales tax (per 0.1%) $1,071,300

  -Implement food tax (per 1%) $900,000-1,200,000

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FY2010 Budget Update

01/14/2010 17

FY2010 Budget Update

Assumptions State shared revenue formulas unchanged State does not charge for other services Car sales and VLT tax Recession does not deepen Pavement Management and Vehicle

Replacement funded with CIP funds

01/14/2010 18

FY2010 Budget Update

FY2010 Budget Update

10/6/2009 19

Questions?Questions?