FY2013 BUDGET & CAPITAL IMPROVEMENTS PROGRAM
City of Falls Church
FY2013 BUDGET & CAPITAL IMPROVEMENTS PROGRAM March 12, 2012 March 12, 2012
1
Vision A Special Place Outstanding Government & Public Outreach
Innovation Successful Development
FY2013 Budget
Environmental Harmony
March 12, 2012
Neighborhood Preservation & Community Life
World Class Schools Sound Finances Diversity 2
FY13 Budget Priorities • Meeting Council Budget Guidance & Policies • Successful Development • Outstanding Government • World Class Schools • Infrastructure Investment March 12, 2012
3
Council Budget Guidance •
Expenditure growth matched with economic growth – No change to Real Estate Tax Rate: $1.27
•
Focus on Infrastructure – $15.6 million in Capital Projects (FY2013) • $4.7 million grant funded • $0.7 million “pay as you go”
• •
Comply with City policy on debt service limits & fund balance Employee compensation: competitive & sustainable – 3% salary increase over FY2009 base level – Employee compensation lags behind region
•
Pensions – City Pensions: “ARC” is fully funded – VRS: reviewing General Assembly actions on Saturday
March 12, 2012
4
FY2013 REVENUES
March 12, 2012
5
Service Fees & Recovered Costs 6%
FY2013 Revenues Other 3%
State & Federal 6% Licenses & Permits 1% BPOL 4% Sales & Use Taxes 5%
Meals, Utility & Other Taxes 9% Personal Property Taxes 6% March 12, 2012
Real Estate Taxes 60%
6
Revenue Summary Adopted Proposed $ % FY2012 FY2013 Change Change Real Estate Taxes $ 39,276,000 $41,319,000 $ 2,043,000 5.2% Personal Property 3,569,518 3,911,500 341,982 9.6% Meals, Utility & Other Taxes 5,974,941 6,336,600 361,659 6.1% Sales Tax 3,300,000 3,795,000 495,000 15.0% Business Licenses 2,722,941 3,023,000 300,059 11.0% Building Permits 542,641 534,260 (8,381) -1.5% State & Federal 4,017,377 4,298,022 280,645 7.0% Service Charges 4,426,195 4,401,397 (24,798) -0.6% Other 1,211,000 1,768,600 557,600 46.0% Total $ 65,040,613 $69,387,379 $ 4,346,766 6.7%
March 12, 2012
7
Calendar Year 2012 Assessed Values: Up 4% Overall
Single Family: Townhouses: Condominiums: Commercial: Apartments:
March 12, 2012
2012 + 4% + 4% + 2% + 5% + 5%
8
Median Household Property Tax Bill $8,000 $7,030 $7,000
$6,410 $6,067
$5,977
2006
2007
$6,000
$5,766
$5,830
2008
2009
$6,622
$5,000 $4,000 $3,000 $2,000 $1,000 $0
March 12, 2012
2010
2011
2012
9
Operating Revenue Trends (FY06 - FY11 Actual; FY12-FY13 Budget) $45,000,000
$40,000,000
$35,000,000
Real Estate Revenues All Other Revenue
$30,000,000
$25,000,000
$20,000,000 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 March 12, 2012
10
FY2013 EXPENDITURES
March 12, 2012
11
FY2013 Expenditures Debt Service 7%
CIP 1%
Reserves 2%
Community Development 5% Health & Welfare 3% Recreation, Parks & Culture 6%
Education 42%
Public Works 8%
Public Safety 14% Judicial Services 3% March 12, 2012
Administration 9% 12
Expenditure Summary (General Fund)
Adopted FY2012 General Government* Debt Service
Proposed FY2013
$ Change
% Change
$ 29,773,227 $ 31,081,749 $ 1,308,522
4.4%
3,922,568
4,429,749
507,181
12.9%
27,861,600
29,903,800
2,042,200
7.3%
Capital, Grants & Reserves
1,222,076
2,872,081
1,650,005
135.0%
Fund Balance Restoration
2,261,142
1,100,000
(1,161,142)
-51.4%
School Transfer
Total
March 12, 2012
$ 65,040,613 $ 69,387,379 $ 4,346,766
6.7%
13
New Initiatives (General Fund)
• Planning & Economic Development – 2 positions in Development Services • Increase capacity for Economic Opportunity Area Plans & Comprehensive Plan Update • Zoning Code updates • Goal: encourage high quality development in commercial districts
• Finance – Part-time accountant position
March 12, 2012
14
New Initiatives (General Fund)
• Public Safety – Police vehicle purchase – Part-time Fire Marshal
• Recreation and Parks – New van (replaces 1994 model)
• Library – Books, Electronic Resources – Maintenance and New Furniture
March 12, 2012
15
New Initiatives (General Fund)
• Facilities Manager – Increase capacity in contract management, project management for City’s 11 buildings
• Information Technology – Upgrades to Servers – Operating Systems/ Software
• Employee Training – Professional Development – IT skills; safety; project management March 12, 2012
16
GF Positions Over Time 220 205 200
199
206
200
203
206 200
183 180
179
182
160
140
120
100 2004
March 12, 2012
2005
2006
2007
2008
2009
2010
2011
2012
2013
17
Personnel Salaries and Benefits FY08-FY11 Actual; FY12&13 Budget $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 Total
$10,000,000 $8,000,000
Regular Salaries Retirement
$6,000,000
Health Care
$4,000,000 $2,000,000 $0 FY2008 March 12, 2012
FY2009
FY2010
FY2011
FY2012
2013 18
Compensation • Health Care: No Change Premiums – Increased co-pay and deductibles in FY12
• City Pensions: – Budget fully funds the “ARC” (Actuarially Required Contribution) – 10% increase, relative to FY12
March 12, 2012
19
Employee Compensation: Salaries • • • • • •
Compensation lags behind the region Down $1.8 m (13%) FY09 through FY2012 FY2013: 3% increase over FY2009 base FY2012 Bonus not included FY2013 Salary effectively flat Pension contributions impact home pay - 5% Basic Plan - 7% Police Plan
March 12, 2012
20
Regional Compensation Changes FY10 through FY13 (proposed) 12
10
FY10
8
FY11
6
FY12
4
FY13
FY 10-13 Total
2
0 City of Falls Church
March 12, 2012
County of Arlington
County of Fairfax
City of Alexandria
21
School Budget
March 12, 2012
22
FY2013-2017 Capital Improvements Program
March 12, 2012
23
CIP Overarching Themes • Investment in infrastructure • Restoration of a strong financial foundation – Fund Balance – Capital Reserves – Debt service with policy limits
March 12, 2012
24
CIP Funding Category Comparisons FY13-17 Information Technology-2% Public Works/ Development ServicesTransportation 20%
Public WorksStormwater 20%
March 12, 2012
(General Governm ent & Schools)
Recreation and Parks 3%
Public Safety 1%
General GovernmentFacilities 27%
School Facilities 27%
25
FY2013 Key Projects • Parks Master Plan & Field Lights $310K • Facilities Improvement – Schools $4.485 M – General Government $4.19 M
• Stormwater- $1.3 M – EPA regulations – Priority Projects for flood mitigation and water quality improvement (Watershed Management Plan)
• Transportation- $4.67 M – Pedestrian Plan Implementation – Federal and State Funding, with local match March 12, 2012
26
Five Year CIP PROJECT INFORMATION TECHNOLOGY
FY2013
Five Year
$550,000
$1,057,500
$0
$250,000
$8,676,500
$26,982,649
ENVIRONMENT
$1,415,000
$10,215,000
TRANSPORTATION**
$4,674,316
$10,213,816
$310,000
$1,523,500
$15,625,816
$50,242,465
PUBLIC SAFETY PUBLIC FACILITIES (includes gen govt. & schools)
PARKS & RECREATION TOTAL
** Includes 11 cents commercial tax overlay beginning FY2014 March 12, 2012
27
CAPITAL IMPROVEMENTS PROGRAM FUNDING SOURCE Grants/Other Funded Debt Conditional (grant/revenue)** Pay as you go (PAUG) TOTAL
March 12, 2012
FY2013
Five Year
$ 4,627,989 $ 6,540,489 10,626,500
29,038,649
0
11,792,000
731,327
2,871,327
$15,625,816 $50,242,465
28
Financial Policy Compliance Fund Balance • FY13 Budget: $1.8 million allocation for: – “pays as you go funding. $730k – restoration of fund balance. $1.1 million
• FY13: City will reach policy target for fund balance – 17% of expenditures
• After FY13, recommend $1.3 million per year for: – “pay as you go” – capital reserves – debt service for projects in the CIP
March 12, 2012
29
Fund Balance (Year-End Balances, By Fiscal Year) 14,000,000
12,000,000
10,000,000
8,000,000
6,000,000 Fund Balance
4,000,000
17% Target 12% Floor
2,000,000
0 2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Target Ratio: Fund Balance equal to 17% of Expenses March 12, 2012
30
Policy Compliance Debt Service
• FY13 Debt Service $507,000 increase, relative to FY12 7% of annual expenditures
• Five Year CIP By FY17: $1,900,000 increase in debt service, relative to FY12 8.3% of Annual Expenditures March 12, 2012
31
Debt Service $10,000,000 $9,000,000 $8,000,000 $7,000,000
12% Policy Limit $6,000,000
New Existing
$5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0
Ratio: Annual Debt Service to Annual Expenditures
FY11 March 12, 2012
FY12
FY13
FY14
FY15
FY16
FY17
32
Utility Funds • Sewer Rate increase of 9.1% is proposed • No Water Rate increase
March 12, 2012
33
Water & Sewer CIP Key Projects FY2013-2017 • Sewer $11.5M – Sewer Line Replacement – WWTP Capacity Expansion – Fairfax Wastewater Treatment Plant Upgrades
• Water $45.6M – – – – –
Kirby Rd Water Main McLean PS Improvements Scotts Run PS Modification Dolley Madison-McLean Water Main Water Main Replacement Program
March 12, 2012
34
Schedule • March 15 Work Session – Financial overview & multi-year forecasts
• Monday and Thursday Work Sessions • March 17 and April 14: 10 a.m. Town Hall Meetings • March 26, April 9, April 23: Public Hearings • April 23: Adoption of FY2013 Budget • July 1, 2012: FY13 Budget in effect March 12, 2012
35
Recommendation
• Advertise Public Hearings • Advertise real property tax rate at $1.27 – Option for Discussion: Advertise a rate of $1.29 Maintain flexibility to accelerate CIP Or fund other initiatives
March 12, 2012
36
FY13 Budget Priorities • Meeting Council Budget Guidance & Policies • Successful Development • Outstanding Government • World Class Schools • Infrastructure Investment March 12, 2012
37
FY2013 BUDGET & CAPITAL IMPROVEMENTS PROGRAM March 12, 2012 March 12, 2012
1
Vision A Special Place Outstanding Government & Public Outreach
Innovation Successful Development
FY2013 Budget
Environmental Harmony
March 12, 2012
Neighborhood Preservation & Community Life
World Class Schools Sound Finances Diversity 2
FY13 Budget Priorities • Meeting Council Budget Guidance & Policies • Successful Development • Outstanding Government • World Class Schools • Infrastructure Investment March 12, 2012
3
Council Budget Guidance •
Expenditure growth matched with economic growth – No change to Real Estate Tax Rate: $1.27
•
Focus on Infrastructure – $15.6 million in Capital Projects (FY2013) • $4.7 million grant funded • $0.7 million “pay as you go”
• •
Comply with City policy on debt service limits & fund balance Employee compensation: competitive & sustainable – 3% salary increase over FY2009 base level – Employee compensation lags behind region
•
Pensions – City Pensions: “ARC” is fully funded – VRS: reviewing General Assembly actions on Saturday
March 12, 2012
4
FY2013 REVENUES
March 12, 2012
5
Service Fees & Recovered Costs 6%
FY2013 Revenues Other 3%
State & Federal 6% Licenses & Permits 1% BPOL 4% Sales & Use Taxes 5%
Meals, Utility & Other Taxes 9% Personal Property Taxes 6% March 12, 2012
Real Estate Taxes 60%
6
Revenue Summary Adopted Proposed $ % FY2012 FY2013 Change Change Real Estate Taxes $ 39,276,000 $41,319,000 $ 2,043,000 5.2% Personal Property 3,569,518 3,911,500 341,982 9.6% Meals, Utility & Other Taxes 5,974,941 6,336,600 361,659 6.1% Sales Tax 3,300,000 3,795,000 495,000 15.0% Business Licenses 2,722,941 3,023,000 300,059 11.0% Building Permits 542,641 534,260 (8,381) -1.5% State & Federal 4,017,377 4,298,022 280,645 7.0% Service Charges 4,426,195 4,401,397 (24,798) -0.6% Other 1,211,000 1,768,600 557,600 46.0% Total $ 65,040,613 $69,387,379 $ 4,346,766 6.7%
March 12, 2012
7
Calendar Year 2012 Assessed Values: Up 4% Overall
Single Family: Townhouses: Condominiums: Commercial: Apartments:
March 12, 2012
2012 + 4% + 4% + 2% + 5% + 5%
8
Median Household Property Tax Bill $8,000 $7,030 $7,000
$6,410 $6,067
$5,977
2006
2007
$6,000
$5,766
$5,830
2008
2009
$6,622
$5,000 $4,000 $3,000 $2,000 $1,000 $0
March 12, 2012
2010
2011
2012
9
Operating Revenue Trends (FY06 - FY11 Actual; FY12-FY13 Budget) $45,000,000
$40,000,000
$35,000,000
Real Estate Revenues All Other Revenue
$30,000,000
$25,000,000
$20,000,000 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 March 12, 2012
10
FY2013 EXPENDITURES
March 12, 2012
11
FY2013 Expenditures Debt Service 7%
CIP 1%
Reserves 2%
Community Development 5% Health & Welfare 3% Recreation, Parks & Culture 6%
Education 42%
Public Works 8%
Public Safety 14% Judicial Services 3% March 12, 2012
Administration 9% 12
Expenditure Summary (General Fund)
Adopted FY2012 General Government* Debt Service
Proposed FY2013
$ Change
% Change
$ 29,773,227 $ 31,081,749 $ 1,308,522
4.4%
3,922,568
4,429,749
507,181
12.9%
27,861,600
29,903,800
2,042,200
7.3%
Capital, Grants & Reserves
1,222,076
2,872,081
1,650,005
135.0%
Fund Balance Restoration
2,261,142
1,100,000
(1,161,142)
-51.4%
School Transfer
Total
March 12, 2012
$ 65,040,613 $ 69,387,379 $ 4,346,766
6.7%
13
New Initiatives (General Fund)
• Planning & Economic Development – 2 positions in Development Services • Increase capacity for Economic Opportunity Area Plans & Comprehensive Plan Update • Zoning Code updates • Goal: encourage high quality development in commercial districts
• Finance – Part-time accountant position
March 12, 2012
14
New Initiatives (General Fund)
• Public Safety – Police vehicle purchase – Part-time Fire Marshal
• Recreation and Parks – New van (replaces 1994 model)
• Library – Books, Electronic Resources – Maintenance and New Furniture
March 12, 2012
15
New Initiatives (General Fund)
• Facilities Manager – Increase capacity in contract management, project management for City’s 11 buildings
• Information Technology – Upgrades to Servers – Operating Systems/ Software
• Employee Training – Professional Development – IT skills; safety; project management March 12, 2012
16
GF Positions Over Time 220 205 200
199
206
200
203
206 200
183 180
179
182
160
140
120
100 2004
March 12, 2012
2005
2006
2007
2008
2009
2010
2011
2012
2013
17
Personnel Salaries and Benefits FY08-FY11 Actual; FY12&13 Budget $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 Total
$10,000,000 $8,000,000
Regular Salaries Retirement
$6,000,000
Health Care
$4,000,000 $2,000,000 $0 FY2008 March 12, 2012
FY2009
FY2010
FY2011
FY2012
2013 18
Compensation • Health Care: No Change Premiums – Increased co-pay and deductibles in FY12
• City Pensions: – Budget fully funds the “ARC” (Actuarially Required Contribution) – 10% increase, relative to FY12
March 12, 2012
19
Employee Compensation: Salaries • • • • • •
Compensation lags behind the region Down $1.8 m (13%) FY09 through FY2012 FY2013: 3% increase over FY2009 base FY2012 Bonus not included FY2013 Salary effectively flat Pension contributions impact home pay - 5% Basic Plan - 7% Police Plan
March 12, 2012
20
Regional Compensation Changes FY10 through FY13 (proposed) 12
10
FY10
8
FY11
6
FY12
4
FY13
FY 10-13 Total
2
0 City of Falls Church
March 12, 2012
County of Arlington
County of Fairfax
City of Alexandria
21
School Budget
March 12, 2012
22
FY2013-2017 Capital Improvements Program
March 12, 2012
23
CIP Overarching Themes • Investment in infrastructure • Restoration of a strong financial foundation – Fund Balance – Capital Reserves – Debt service with policy limits
March 12, 2012
24
CIP Funding Category Comparisons FY13-17 Information Technology-2% Public Works/ Development ServicesTransportation 20%
Public WorksStormwater 20%
March 12, 2012
(General Governm ent & Schools)
Recreation and Parks 3%
Public Safety 1%
General GovernmentFacilities 27%
School Facilities 27%
25
FY2013 Key Projects • Parks Master Plan & Field Lights $310K • Facilities Improvement – Schools $4.485 M – General Government $4.19 M
• Stormwater- $1.3 M – EPA regulations – Priority Projects for flood mitigation and water quality improvement (Watershed Management Plan)
• Transportation- $4.67 M – Pedestrian Plan Implementation – Federal and State Funding, with local match March 12, 2012
26
Five Year CIP PROJECT INFORMATION TECHNOLOGY
FY2013
Five Year
$550,000
$1,057,500
$0
$250,000
$8,676,500
$26,982,649
ENVIRONMENT
$1,415,000
$10,215,000
TRANSPORTATION**
$4,674,316
$10,213,816
$310,000
$1,523,500
$15,625,816
$50,242,465
PUBLIC SAFETY PUBLIC FACILITIES (includes gen govt. & schools)
PARKS & RECREATION TOTAL
** Includes 11 cents commercial tax overlay beginning FY2014 March 12, 2012
27
CAPITAL IMPROVEMENTS PROGRAM FUNDING SOURCE Grants/Other Funded Debt Conditional (grant/revenue)** Pay as you go (PAUG) TOTAL
March 12, 2012
FY2013
Five Year
$ 4,627,989 $ 6,540,489 10,626,500
29,038,649
0
11,792,000
731,327
2,871,327
$15,625,816 $50,242,465
28
Financial Policy Compliance Fund Balance • FY13 Budget: $1.8 million allocation for: – “pays as you go funding. $730k – restoration of fund balance. $1.1 million
• FY13: City will reach policy target for fund balance – 17% of expenditures
• After FY13, recommend $1.3 million per year for: – “pay as you go” – capital reserves – debt service for projects in the CIP
March 12, 2012
29
Fund Balance (Year-End Balances, By Fiscal Year) 14,000,000
12,000,000
10,000,000
8,000,000
6,000,000 Fund Balance
4,000,000
17% Target 12% Floor
2,000,000
0 2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Target Ratio: Fund Balance equal to 17% of Expenses March 12, 2012
30
Policy Compliance Debt Service
• FY13 Debt Service $507,000 increase, relative to FY12 7% of annual expenditures
• Five Year CIP By FY17: $1,900,000 increase in debt service, relative to FY12 8.3% of Annual Expenditures March 12, 2012
31
Debt Service $10,000,000 $9,000,000 $8,000,000 $7,000,000
12% Policy Limit $6,000,000
New Existing
$5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0
Ratio: Annual Debt Service to Annual Expenditures
FY11 March 12, 2012
FY12
FY13
FY14
FY15
FY16
FY17
32
Utility Funds • Sewer Rate increase of 9.1% is proposed • No Water Rate increase
March 12, 2012
33
Water & Sewer CIP Key Projects FY2013-2017 • Sewer $11.5M – Sewer Line Replacement – WWTP Capacity Expansion – Fairfax Wastewater Treatment Plant Upgrades
• Water $45.6M – – – – –
Kirby Rd Water Main McLean PS Improvements Scotts Run PS Modification Dolley Madison-McLean Water Main Water Main Replacement Program
March 12, 2012
34
Schedule • March 15 Work Session – Financial overview & multi-year forecasts
• Monday and Thursday Work Sessions • March 17 and April 14: 10 a.m. Town Hall Meetings • March 26, April 9, April 23: Public Hearings • April 23: Adoption of FY2013 Budget • July 1, 2012: FY13 Budget in effect March 12, 2012
35
Recommendation
• Advertise Public Hearings • Advertise real property tax rate at $1.27 – Option for Discussion: Advertise a rate of $1.29 Maintain flexibility to accelerate CIP Or fund other initiatives
March 12, 2012
36
FY13 Budget Priorities • Meeting Council Budget Guidance & Policies • Successful Development • Outstanding Government • World Class Schools • Infrastructure Investment March 12, 2012
37
