Budget Informational Meeting Great Falls Council of Councils Meeting May 27, 2014

Budget Informational Budget Informational MeetingMeeting

Great Falls Council of Councils Meeting

May 27, 2014

Budget Drivers FY15Budget Drivers FY15 (and (and beyond)beyond)Slow property tax growth Department reliance on General

Fund Subsidy Electric City Power SettlementCapital Planning – Facility

◦Deferred Maintenance◦Some equipment (fire trucks)

The PlanThe Plan↑ ↑ Economic Development↔ Stabilize the budget ↓ General Fund Support↑ Capital Planning - Facility↑ Debt/Operational FlexibilityBudget process overhaul

◦ Service review ◦ Fee review◦ Fund review◦ Quarterly budget meetings

Determine Resident Priorities

New Taxable RevenuesNew Taxable Revenues

General Fund SubsidiesGeneral Fund SubsidiesSupport Area 2011 2012 2013 2014

City County Health $250,000 $250,000 $250,000 $250,000City Band $4,500 $4,500 $4,500 $0GFDA $100,000 $50,000 $0 $0Tennis Court $0 $4,000 $4,000 $0Natural Resources $264,918 $264,918 $264,918 $164,918Planning $199,951 $168,148 $158,825 $100,000Swimming Pools $414,389 $414,389 $414,389 $214,389Recreation Center $153,729 $153,729 $153,729 $59,226Multisport $0 $0 $0 $0IT $11,772 $11,772 $12,695 $0Engineering $126,287 $126,287 $126,287 $63,143Civic Center Events $214,727 $214,727 $214,727 $114,727Golf Course $100,000 $100,000 $0 $0

Deficit and Cash Flow Deficit and Cash Flow (now)(now)

General Obligation Note $1.2 million

Accrued Payables (interest) $9,133Due to other City Funds $5.4 millionWater Credit $1.2 millionAdvances to other Funds Securities $1.4 million

$9.2 million

Settlement FundingSettlement FundingPayment #1 Balance

As of (3/31/14)

Central Garage $905,000 $2,883,802Information Tech $200,000 $157,481Fiscal Services $325,000 ($63,647)Engineering $250,000 $235,185Public Work Admin $100,000 $230,607Insurance & Safety $200,000 $239,676Hazard Removal $100,000 $1,845Economic Revolving $420,000 $280,141

$2,500,000 $3,965,090General Fund ($1,258,040)

Payment #2Tax Revenue $750,000

Total $3,250,000

ECP General Fund Impact?ECP General Fund Impact?

General Fund General Fund Undesignated Undesignated Fund BalanceFund Balance

9

Projected Fund Balance End FY14 $2,164,958 (or 8.4%)

FY15 12%

17%

Moody’s CommentsMoody’s CommentsSTRENGTHS

A sizeable and stable tax base

Strong management team that is seeking to minimize or eliminate enterprise risks

Manageable direct debt burden with rapid repayment

CHALLENGES

Weak financial position as a result of a recent legal settlement involving its electric enterprise

Below-average socioeconomic measures

City’s Rating

General Fund Revenues FY14General Fund Revenues FY14

General Fund Expenditures General Fund Expenditures FY14FY14

GF Break Down - GF Break Down - DepartmentsDepartments

Recovery ProcessRecovery ProcessBudget stabilityRestore Fund Balance - Policy

(17%)Review fees citywideLimit General Fund support Prioritize Services

◦No new services/limited program expansion

Partnerships

Recovery Process Con’tRecovery Process Con’tRebuild Public Trust

◦Educate citizenryRealign City Services

◦Demonstrate that we’ve done everything possible operationally before…

◦Focus on Department Core Services What do we want to be the best at?

Capital Investment◦Facility plan under development ◦Equipment plan stable

Future BudgetsFuture BudgetsAssumptions

◦Little support for another levy◦Slow growth – slow tax revenue

TIFs/Abatements

◦Service Menu Too Full The more government does…

Deferred Maintenance/Capital◦Bond Levees for large capital and

equipment