Priority Planning Session

1. Priority Planning Session • March 11, 2011

2. Overview • FY 2011 • How did we get here – Historical Review • Business Plan • BAR • Budget Balancing Initiative/Challenge Grant Update • FY 2012 • Economic Forecast • Multi-Year Forecast • Surveys • Emerging Issues • City Council Priorities • Budget Calendar

3. Historical Review

4. Historical Review • FY 2009 • Real estate market plummets nation-wide • City unemployment high of 8.3% in June 2009 • FY 2009 sales tax receipts 6% ($2.9m) below budget • Property taxes remain strong for the fiscal year

5. Historical Review (cont.) • FY 2010: • Property taxes: (0.4%) decrease over FY 2009 • Sales taxes: 1.7% increase over FY 2009 collections, largely due to the entertainment district and Cowboys Stadium • FY 2011: • Property tax collections: (7.5%) decrease from FY 2010 Budget • Sales taxes: 3.3% increase from FY 2010 Budget • Total revenue decrease of $5.4m from FY 2009 Budget across all operating funds

6. Historical Review (cont.) • FY 2011 (cont.) • General Fund expenditures: (3.2%) decrease from FY 2009 Budget (net of FY 2011 one-time expenditures) • $4.8m in Challenge Grants • FY 2010 and 2011 reduced 70 positions from FY 2009 • FY 2012 outlook • ($2.5m) projected deficit • $2.4m continuation of Challenge Grant program

7. Highlights of the Business Plan

8. Highlights of the Business Plan • Departments managing 115 projects in FY 2011 • Projects allocated by priority creating greater alignment • Department collaboration for multiple projects • Better linking of performance and project status • Business Plan is evolving

9. Highlights of the Business Plan • Highlights: • Neighborhood Planning Efforts • BEC • Reach • Volunteer Hours

10. Highlights of the Business Plan • Highlights: • Johnson Creek • Fire Apparatus • I-30 / Collins Property • Airport Security • E-builder • Energy Efficiency Update • TechComm

11. 1st Quarter BAR

12. 1st Quarter BAR Revenue Outlook • The General Fund is projecting to be approximately $1 million better than budget in revenues. The revenue sources below are projected to vary from budget as noted : • Sales taxes, $900,000 • Property taxes, ($200,000) • Gas well inspections/Re-inspections, $770,000 • Franchise fees, ($440,000) (landfill royalties)

13. 1st Quarter BAR Expenditure Outlook • The General Fund is projecting to be approximately $628,000 under budget in expenditures, primarily due to: • Fire under by $137,000 • Community Services under by $149,000 • Police under by $219,000 • Other departments under by $123,000 • 52 General Fund vacancies

14. 1st Quarter BAR - General Fund

15. 1st Quarter BAR - Water Utilities • Revenues: $2.2 million under budget • Total water charges: ($1.1 million) • Total sewer charges: ($915,000) • Expenditures: $4 million under budget • Debt service: ($1.2 million) • Chemical supplies: ($1.2 million) • Personnel: ($560,000)

16. 1st Quarter BAR - Water Utilities

17. 1st Quarter BAR • All other funds are at or under budget in expenditures.

18. Budget Balancing Initiatives / • Challenge Grants

19. Budget Balancing Initiatives/Challenge Grants • Revenue Enhancement • Centralized Cashiering • Call Center Consolidation • Workforce Pooling • Organizational Restructuring • Competitive Services

20. Budget Balancing Initiatives/Challenge Grants • Energy Management • Workforce Ambassadors • Neighborhood Enhancement • Economic Development/Job Creation • Procurement/ Partnerships • Our Community, Our Kids

21. Budget Balancing Initiatives/Challenge Grants • Budget: a total of $4.8 million transfer from Business Continuity Reserve (BCR) to General Fund in FY 2011 • $1.2m identified to date to address FY 2012 Challenge Grants • $3.6m still needs to be identified

22. Budget Balancing Initiatives/Challenge Grants • Graffiti abatement • Environmental education program • Police response policies • Ventana Grille

23. Economic Forecast

24. Economic Forecast • City monitors national, state, and local economic data • Used in planning processes • Arlington looking better than state, nation • National recovery is projected to strengthen throughout 2011 and into 2012

25. Multi-Year Forecast

26. Multi-Year Forecast Assumptions • AV down 2% in FY 2012, flat in FY 2013, 2% increase FY 2014 going forward • Sales tax – up 2% from FY 2010 actual in FY 2012 (FY 2011 revenue is impacted by Super Bowl), 3% increase FY 2013 going forward • Half of Challenge Grants carried forward in FY 2012, eliminated in FY 2013 going forward • No compensation increase in FY 2012, 3% increase in FY 2013 going forward • 8% increase in health insurance beginning in FY 2012 and going forward • TMRS increase of $500,000 through FY 2016 • Additional $750,000 to cover COPS grant in FY 2012 & FY 2013 • No funding for Fire apparatus included in out years • 1% increase in supply costs per year, no staffing increases included

27. Multi-Year Forecast

28. FY 2011 Citizen Survey

29. FY 2011 Citizen Survey

30. FY 2011 Citizen Survey

31. FY 2011 Citizen Survey

32. FY 2011 Citizen Survey

33. FY 2011 Citizen Survey

34. FY 2011 Citizen Survey

35. FY 2011 Citizen Survey

36. FY 2011 Citizen Survey

37. FY 2011 City Survey

38. FY 2011 City Survey

39. FY 2011 City Survey

40. FY 2011 City Survey

41. COA Value

42. COA Value

43. COA Value The Citizens of Arlington are getting good value for their money!

44. Emerging Issues

45. Emerging Issues • Legislative impacts • Franchise Fees • School funding • Public safety communication equipment • Air quality

46. Council Priorities

47. Council Priorities

48. FY 2012 Budget Calendar

49. 2012 Budget Calendar

50. Questions