1

“Back to Basics” Budget Overview

2013-2014 Biennium

City of Tacoma

Community Budget Input Meeting T.C. Broadnax, City Manager

2 City of Tacoma

In this Presentation…

• Budget Development - “Back to Basics”

• Your City Budget

• City Budget summary

• Expenditures

• Revenue sources

• 2012 Budget Summary

• 2013-2014 Development Process

3 City of Tacoma

Back to Basics: 3 C’s

• Core Service • Continuous Improvement • Credibility

4

Your City Budget

5 City of Tacoma

2011-2012 Adopted Budget

$2.73 Billion – Total Consolidated Budget : All Funds

$1.44 Billion – Utilities and Other Enterprise Funds

$546.4 Million – Internal Service & Trust Funds

$349.1 Million – Special Revenue, Debt and Capital Funds

$398.6 Million – General Fund

6 City of Tacoma

Utilities and Other Enterprise Funds

• Power and Click - $787.3 M

• Water/Wastewater/Surface Water - $382.2 M

• Solid Waste - $145.4 M

• Rail - $40.4 M

• Other Enterprise Funds - $86 M

$1.44 Billion – Utilities and Other Enterprise Funds $1.44 Billion – Utilities and Other Enterprise Funds

7 City of Tacoma

Internal Service and Trust Funds

$546.4 Million – Internal Service & Trust Funds

• Internal Services

– Healthcare/Benefits/Retirement Funds: $394.6 M

– Finance: $5.8 M

– Information Technology (IT): $51.3 M

– Radio: $6.4 M

– Other Internal Services and Trust Funds: $88.3 M

8 City of Tacoma

Special Revenue, Debt and Capital Funds

$441.1 Million – Debt and Capital Funds $349.1 Million – Special Revenue, Debt and Capital Funds

• Special Revenue Funds – Streets and ROW: $147.8 M

– Fire Emergency Medical Services: $27.3 M

– Building and Land Use Service: $2.1 M

– Other Special Purpose and Grant Funds: $82 M

• Debt and Capital: – Debt Service/Bond Issue: $14.4M

– Capital Assets and Projects: $75.5 M

9 City of Tacoma

General Fund Departments

Police $142.7 M

36%

Fire $101.5M

25%

Public Works $30.9M

8%

Library $24.5M

6%

Human Rights and Human Services

$14.6M 4%

Community and Economic Development

$13.2M 3%

Municipal Court $6.7 M

2%

Other $64.5 M

16%

$398.6 Million – General Fund

10 City of Tacoma

Property Tax, $101.34 , 25%

Sales Tax, $83.66 , 21%

Business Tax, $77.93 , 20%

Utility Tax, $88.44 , 22%

Other Revenues, $47.21 , 12%

Police Protection $142.66, 36%

Fire Protection $101.47, 25%

Public Works $30.85, 8%

Library $24.54, 6%

HRHS, $14.6, 4%

Municipal Court, $6.70 , 2%

Other Services, $64.50 , 16%

All dollar values are in millions.

Total General Fund Adopted Budget:

$398,572,364

General Fund Available Resources Distributed over Major Spending Areas

CED $13.2, 3%

11 City of Tacoma

City of Tacoma, $3.12, 20%

Tacoma School Dist #10, $7.04,

45%

State, $2.41, 15%

Pierce County, $1.42, 9%

Metro Parks, $1.11, 7%

Port of Tacoma, $0.18, 1% EMS, $0.50, 3%

Property Tax - How Much Goes to the City?

Levy Rate per $1,000 of AV Taxes on $200,000 Home

Total other governments: $12.16 $2,432

Total Tacoma including EMS: $3.62 $724

Total property tax levy per $1,000 of AV: $15.78 $3,156

12

Major Program Areas

13 City of Tacoma

$136.4 $146.2 $142.7 $142.9

2007-2008* 2009-2010* 2011-2012 Adopted 2011-2012 Current

Tacoma Police Department (TPD) Budget and Personnel History

City of Tacoma

FTEs 433 446 443 409

TPD Change in FTEs and Budget (in millions)

*2007/08 and 2009/10 Actual Expenditures **FTE reflected above are employees that work in TPD, though funding may come from other departments or funds

14 City of Tacoma

General Fund: TPD

Labor Benefits, $22,692,918 ,

16%

Labor Overtime, $2,367,458 , 2%

Labor Regular, $64,646,744 ,

45%

M&O, $3,061,228 , 2%

Fixed Costs, $13,085,343 ,

9%

Assessments, $3,443,195 , 2%

LESA,

$15,950,984 11%

Jail/Property Rm,

$14,224,931 , 10%

Contribution to Traffic,

$3,472,719 , 3%

Total Current 2011-2012 Budget: $142,945,519

15 City of Tacoma

$89.0 $92.2 $101.5

$93.8

2007-2008* 2009-2010* 2011-2012 Adopted 2011-2012 Current

TFD Change in FTEs and Budget (in millions)

Tacoma Fire Department Budget and Personnel History

City of Tacoma

444 443 446 421 FTEs**

*2007/08 and 2009/10 Actual Expenditures **FTE reflected above are employees that work in TFD, though funding may come from other departments or funds

16 City of Tacoma

General Fund: TFD

Labor Regular, $59,109,013

63%

Labor Benefits, $23,462,722

25%

Labor Overtime, $1,532,500

2% M&O,

$3,689,064 4%

Fixed Costs, $3,784,241

4%

Assessments, $2,232,272

2%

Total Current 2011-2012 Budget: $93,809,812

17 City of Tacoma

Public Works General Government Funds

Parking Capital Fund

$1.4M

ROW Street $235k

BLUS Fund $6.4M

Police Facility Fund $242k

Paths & Trails

$2.6M

Muni Facility Fund

$15.3M

Traffic Fund $278k

Asphalt Plant

$3.1M

Equipt. Rental Fund

$22.1M

Street Fund $180.7M

General Fund $25.8M

Total 2011-2012 General Government Budget : $258,159,747 (Excludes Enterprise Funds)

18 City of Tacoma

$51.7 $58.9

$30.9 $25.8

2007-2008* 2009-2010* 2011-2012 Adopted 2011-2012 Current

Public Works Department Change in FTEs and Budget (in millions)

Public Works Budget and Personnel History

423 437 342 315 FTEs**

*2007/08 and 2009/10 Actual Expenditures **FTE reflected above are employees that work in Public Works except utilities, though funding may come from other departments or funds *** The Permit Center was transferred to CED during 2010, but reflected in 2011-12 adopted budget. Other shifts include Street, Traffic

Engineering, Education, and Enforcement, and Parking Fund

19 City of Tacoma

General Fund: Public Works

Labor Benefits, $2,325,414 , 8% Labor Overtime,

$120,000 , 0.4%

Labor Regular, $5,174,085 , 18%

Fixed Costs, $1,428,492 , 5%

M&O , $1,185,399 , 4%

Transfer to Streets,

$18,599,276 , 65%

Total 2011-2012 Current Before Assessments in General Fund*: $28,832,665

*Public Works service sends $3,002,024 in assessments. General Fund costs after assessments are $25,830,641.

20 City of Tacoma

Public Works Street Fund

Street Construction $2.6M

Street Engineering $14.8M

Street Maintenance $17.3M

Street Special Revenue Fund $146M

General Fund Supported

Non - General Fund Supported

Total Street Fund 2011-2012: $180.7M

21 City of Tacoma

Library Budget and Personnel History

$23.7 $22.5

$24.5 $24.5

2007-2008* 2009-2010* 2011-2012 Adopted 2011-2012 Current

130 129 128 116 FTEs**

Library Department Change in FTEs and Budget (in millions)

*2007/08 and 2009/10 Actual Expenditures **FTE reflected above are employees that work in Library, though funding may come from other departments or funds

22 City of Tacoma

Library Program Areas

Labor Regular, $11.6 , 48%

Labor Benefits, $5.7 , 23%

Fixed Costs, $0.7 , 3%

Maintenance and Operations, $3.2 , 13%

Materials, $3.2 , 13%

Total Current 2011-2012 Library Budget (in millions): $24.5

23 City of Tacoma

Community and Economic Development (CED) Budget and Personnel History

$11.1 $10.5

$13.2 $12.1

2007-2008* 2009-2010* 2011-2012 Adopted*** 2011-2012 Current

*2007/08 and 2009/10 Actual Expenditures **FTE reflected above are employees that work in CED, though funding may come from other departments or funds ***The Permit Center was transferred to CED during 2010, but reflected in 2011-12 adopted budget

39 42 92 84 FTEs**

CED Department Change in FTEs and Budget (in millions)

24 City of Tacoma

CED Program Areas

Labor Regular, $4.44 , 37%

Labor Benefits, $2.15 , 18%

Fixed Costs, $0.69 , 5%

Maintenance and Opertations,

$4.82 , 40%

Total Current 2011-2012 CED Budget (in millions): $12.1

25 City of Tacoma

$10.6

$12.6

$14.7

$12.1

2007-2008* 2009-2010* 2011-2012 Adopted 2011-2012 Current

Human Rights and Human Services (HRHS) Budget and Personnel History

29 34 35 30 FTEs**

HRHS Department Change in FTEs and Budget (in millions)

*2007/08 and 2009/10 Actual Expenditures **FTE reflected above are employees that work in HRHS, though funding may come from other departments or funds

26 City of Tacoma

Community and Economic Development $13.39, 45 %

Increase Employability and Self Sufficiency for Adults*

$1.01, 3 %

Meet Basic Needs* $8.23, 27 %

Prepare Children and Youth for Success* $4.62 , 16%

Government $2.89, 9 %

* The green sections outlined in black denote Human Services Funding = $13,856,457 **Duplicated annual count

2011-12 Community Funding Allocation by Category

Human Services Clients**

Children & Youth 14,561

Employability/ Self-Sufficiency

3,206

Basic Needs 381,225

TOTAL 398,992

Total 2011-2012 Community Funding Allocation (in millions): $30.15

27

2013-2014 Budget

28 City of Tacoma

• 2011-2012 Biennium – $11.8 Million projected shortfall – Recently awarded SAFER and COPS grants – Budget will be balanced by year end

• 2013-2014 Biennium – $60 million to $65 million shortfall projected for the

2013-2014 Biennium – $80 million to $85 million deficit projected for the

2015-2016 Biennium

• Expenditure reduction measures and revenue enhancements to be evaluated as part of 2013-2014 Biennial Budget

General Fund Forecast Summary

29 City of Tacoma

Forecast Overview

$150

$170

$190

$210

$230

$250

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Mill

ion

s

Revenue Expenditures

$42M Gap

$33M Gap

$39M Gap

Actuals Forecast

$30M Gap

30 City of Tacoma

Property Tax, $105.8, 24%

Sales Tax, $77.4, 17%

Business Tax, $76.7, 17%

Utility Tax, $89.1, 20%

Other Revenues, $33.5, 8%

Gap, $63.0, 14%

Police Protection,

$159.2, 36%

Fire Protection, $102.2, 23%

Public Works, $28.4, 6%

Library, $26.3, 6%

CED, $13.8, 3%

Other Services, $115.5, 26%

Revenue vs Expenditures for 2013-14

31 City of Tacoma

Major Services Areas

• Police Protection • Fire Protection • Streets, Sidewalks, and Bike Lanes • Community and Economic Development • Library Services • Human Rights and Human Services and Health

Contributions • Parks and Grounds Maintenance • Code Enforcement and Community Based

Services

32 City of Tacoma

Civic Engagement

• Community Budget Input Meetings – Accepting verbal comments, please sign in at desk

• Citizen Services Questionnaire and Ranking – Available tonight at the sign-in desk – Available online June 25 through August 31 at

www.cityoftacoma.org and at Tacoma Public Libraries

• BudgetInputBox —BIB forms available tonight at sign-in desk —BIB available online June 25 through November

2012 at www.cityoftacoma.org and at Tacoma Public Libraries

33

“Back to Basics” Budget Overview

2013-2014 Biennium

Community Input

34 City of Tacoma

Back to Basics: 3 C’s

• Core Service • Continuous Improvement • Credibility