GFOAZ Conference Public & Budget Session

1. GFOAZ Conference Public & Budget Session Prepared by:  Julie A. Ghetti, MPA, CPA August 12, 2011

2. TOWN OF FOUNTAIN HILLS • Adopted Annual Budget for FY2012 = $38.3M • General Fund = $12.6M • Population = 22,489 • Authorized FTE’s for FY2011/12 = 59 (down from 88 in FY08 • Services Provided by 7 Departments: • Police and Fire/EMS (contracted) • Recreation, Parks, Community Center • Public Works, Streets, Code Enforcement, Building Safety • Administration, Municipal Court, Town Council August 12, 2011

3. FY2011/12 MAJOR ISSUES • Local Economy – lack of commercial property • Lack of primary property tax • Dependence upon sales tax and shared revenues • Legislative • 2010 census and growth of surrounding communities August 12, 2011

4. Budget Update • 2010 census population showed 8.2% drop from 2005 census • 54 of 91 communities grew in population, some as much as 173% • Amount needed to bring budget back in balance is $513,000 in the General Fund and $100,000 in the HURF fund August 12, 2011

5. Budget Solutions • Proposed solutions must be aligned with the following three principles: • Be permanent and sustainable • There are likely to be more declines in the future due to legislative action, increased population in other communities • The Town has to adjust to the new fiscal reality • Preserve organizational integrity • The ability to perpetually provide the high level of service that the citizens have come to expect • Be equitable • Does not rely on one source or citizens group • Spreads the burden among various publics August 12, 2011

6. Available Tools • Increase revenues • Decrease expenditures August 12, 2011

7. Increase Revenues August 12, 2011

8. Decrease Expenditures August 12, 2011

9. What Did We Do? • Reduced Town contribution to community contracts • Restructured annual debt payment for MPC bonds • Utilized fund balance to pay off MPC bonds for Town Hall August 12, 2011

10. $6.6M $4.5M $4.5M Revenue reduction = $2.1M over the past three years Projection into the future shows $2.1M will not return August 12, 2011

11. JANUARY 2011 Balanced Budget $12.6M MARCH 2011 Budget Gap $513K $12.1M August 12, 2011

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15. Proposal to Increase Telecom Tax August 12, 2011

16. 15 YEAR CHART Assumes no increase in revenues - Assumes new revenue and no increase in level of service - August 12, 2011

17. FY2011/12 MISSTEPS • No central public information office to disseminate information • New laws affecting fee schedule • Lack of public involvement August 12, 2011

18. FY2011/12 BUDGET SUCCESSES • Makeup of Executive Budget Committee – new proposals came forward • Coordination of goals with Strategic Plan • Involvement with Boards and Commissions • Expanded use of volunteers • Use of charts and graphs to avoid more cuts August 12, 2011

19. TRANSPARENCY • Two public budget open houses • Updated draft budgets on web • Televised three budget work study sessions • Replayed budget work study sessions through the month of July August 12, 2011

20. Questions? August 12, 2011