Irving Budget Update 2010-07-07

8/9/2019 Irving Budget Update 2010-07-07

1/22

1

GeneralFund

Preliminary

Budget

Goal8:SoundGovernance

Presentedby

Bret

Starr,

Assistant

CFO

July8,2010


2/22

2

Overview

EconomicConditions

PropertyTaxEstimates

OtherRevenues

Expenditures

2


3/22

3

EconomicUpdate

3


4/22

4

EconomicConditions

Recoveryexpectedtobelongandslow

Municipalrevenues

decreased

for

another

24

36months

Stateand

Federal

budget

deficits

impact

local

governments

Reducedgrantsandaid

Increasingfines,

fees

and

unfunded

mandates


5/22

5

OtherCities

Budget

Solutions

Reduceservicestoresidents

Closefacilities

Reducehoursofoperation

Reduceservicelevels

Employeelayoffs

Employeefurloughs

Employeepay

cuts


6/22

6

IrvingBudget

Priorities

Maintaincurrentlevelsofservice

Focuson

Councils

priorities

through

the

strategic

plan

UseLean,SixSigma,andotherproductivitytoolsto

reducetimeandexpensewhiledeliveringservices

Focuson

streamlining

workforce

through

attrition

and

reorganization

Grouplikeservicesandskillstogethertoreduce

redundancies

Incentivizeemployeestotakeonadditionalskillsand

duties


7/22

7

GeneralFund

Revenues

PropertyTaxes

7


8/22

8

PropertyTax

Levy

May25th PreliminaryValue $18.08billion

NewConstruction

$336

million

Changeinexistingvalues ($80million)

EstimatedCertifiedValue $16.9billion

6.63%declinefromlastyear

ImpactonCityrevenues ($6.5million)


9/22

9

PropertyTax

Levy

Tax Year Tax Year

2009 2010 % Value

Certified Value Preliminary Value Change Change

Commercial $8,437,407,691 $8,475,344,474 0.45% $37,936,783

BPP $4,383,697,175 $4,581,935,684 4.52% $198,238,509

Residential $5,006,494,374 $5,026,158,853 0.39% $19,664,479

Total $17,827,599,240 $18,083,439,011 1.44% $255,839,771

2010 2010 % Value

Preliminary Value ESTIMATED Value Change Change

Commercial $8,475,344,474 $7,390,707,363 -12.80% ($1,084,637,111)

BPP $4,581,935,684 $4,580,125,828 -0.04% ($1,809,856)

Residential $5,026,158,853 $4,912,922,474 -2.25% ($113,236,379)

Total $18,083,439,011 $16,883,755,665 -6.63% ($1,199,683,346)


10/22

10

PropertyTax

Value

12.44

13.37

14.2914.62

13.91 13.7914.03

15.42

17.55

18.4517.83

16.88

$8

$10

$12

$14

$16

$18

$20

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

In Billions


11/22

11

Changefrom

Preliminary

to

Certified

$10

$11

$12

$13

$14

$15

$16

$17

$18

$19

$20

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Billions

Preliminary Certified

-2.17%

--6.95% -12.40%

-

-6.83%

-7.48%

- --10.19%

-6.63%


12/22

12

PropertyTax

Distribution

TaxYear2010AdValoremComposition

BPP

25%

Residential

28%Commercial,

47%


13/22

13

GeneralFund

OtherRevenues

13


14/22

14

SalesTax

$46.74

$45.86

$36.29

$38.04

$44.31$45.10

$43.74$43.74

$41.77

$50.00

$46.85

$37.94

$30.00

$35.00

$40.00

$45.00

$50.00

$55.00

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

In Millions


15/22

15

FY1011GeneralFundRevenue

Projection

Property

Tax ($6.5

million)(6.63%reductionestimated)

SalesTax ($3million)

ElectricFranchise ($2.4

million)

Netotherrevenues $700,000

Totalrevenue

reduction ($11.2

million)

15


16/22

16

GeneralFund

Expenditures

16


17/22

17

PersonnelRelated

Savings

91vacantpositionseliminatedsince2006

$4million

in

annual

savings

to

General

Fund

Reducedgeneralgovernment/executivepositions

AddedpositionsdirectedtoCouncilpriorities

Staffingalignedwithstrategicplankeyfocusareas

Police,Fire,CodeEnforcement,AnimalServices

Additional

61

positions

held

vacant

$3.7millioninannualsavingstotheGeneralFund


18/22

18

FY10

11

General

Fund

Expenditures

Projected

Increases +$6.3

million Salary&Benefits +$2.8million

HealthInsurance +$1.5million

Retireehealth

insurance

+$700,000

RetireeSickLeaveBonus +$700,000

Nonpersonnelexpenditures +$500,000

18


19/22

19

FY10

11

General

Fund

Expenditures

Cost

Savings

$4.2

million Salarysavings $750,000

Staffingreassignments $720,000

Dependantclaim

audit

$400,000

Otherspendingreductions $1.4million

Slowdownreplacementfunding $970,000

19


20/22

20

BudgetBalancing

Strategies

Reducereplacementfundtransfers 50% $1.3million

Departmentalsavingsreview $1.4million

Budgetreductions $7.4million

Defercapital

funding

$735,000

FurtherimplementIWINplan1/1/2011 $500,000

Healthinsurancecostallocation $490,000

Salarysavings

$750,000

Total: $7million


21/22

21

BudgetBalancing

Strategies

Remainingbudget

gap

$5

million


22/22

22

Summary

Impact

of

the

recession

will

continue

over

the

next2436months

Allmajorrevenuestreamsarereduced

Generalfund

must

stand

on

its

own

resources

Notrecommendinguseoffundbalance

Continuedreductions

in

expenditures

and/or

additionalrevenueswillbenecessaryto

maintainabalancedbudgetforFY201011

22

Documents

Irving Budget Update 2010-07-07