2010-proposed Budget Presentation

CITY

of

RALEIGH

PROPOSED BUDGET 2009–2010 J.

Russell Allen, City Manager

FY10 BUDGET HIGHLIGHTS • Closes original $18 M to $22 M gap between General Fund revenues and expenditures • Reduces recurring expenses and thereby impacts service delivery • Excludes major reductions in public safety funding • Avoids employee lay-offs • Remains competitive • Reduces General Fund Capital Improvement Program • Maintains credit strength & financial integrity

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REVENUES NO INCREASE in Property Tax Rate NO INCREASE in Solid Waste Fees NO INCREASE in Stormwater Fees NO INCREASE in Privilege License Fees

3

PROPERTY TAX REVENUE

$144.0 M

$180.5 M

$182.3 M

19.3 % Increase*

1.0 % Increase

FY09* Projected

FY10 Budgeted

$151.3 M

14.2 % Increase

5.1 % Increase

FY07 Actual

FY08 Actual

*Revaluation Year

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SALES TAX REVENUE $67.2 M

9.2 % Increase

FY07 Actual

$70.3 M

4.7 % Increase

FY08 Actual

$67.2 M

$70.8 M

4.4 % Decrease

5.2 % Increase

FY09 Projected

FY10 Budgeted

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ALL

$316 M

11.5 % Increase

FY07 Actual

GENERAL FUND REVENUES $383 M

$384 M

11.5 % Increase

0.2 % Increase

FY09 Projected

FY10 Budgeted

$344 M

8.8 % Increase

FY08 Actual

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CITY PERSONNEL

-$7.8 Million • Eliminated 85 vacant General Fund positions • Eliminated 1.5% range adjustment • Deferred 1/3 reclassifications • Reduced merit pay range by 1%

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2 1 4 1

Parks and Rec

Convention Center

2 ECC

5

Police

Comm Services

5

Solid Waste

Inspections

12

Planning

Public Works

2

Finance

2

Personnel

Public Affairs/ Print Shop

City Attorney

POSITION ELIMINATIONS 27

15 7

8

HEALTH CARE

-$1.3 Million • Increased Employee Dependent Premiums 7% • Increased Deductibles • Increased Co-Insurance Maximums

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CITY-WIDE REDUCTION STRATEGIES

-$2.1 Million • Applied fuel consumption budgeting • Delayed City vehicle replacement • Restricted travel, training & registrations • Reduced operational & maintenance supplies 10

SERVICES& PROGRAMS Arts Reduced per capita funding by $ 0.50 Human Services 10% reduction Other Agency Appropriations 10% reduction to elimination

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TOTAL GENERAL FUND OPERATING BUDGET SAVINGS

-$15.1 Million

12

“P A Y – G O” G E N E R A L CAPITAL PROJECTS

$5.4 M

$5.5 M

$5.9 M $4.9 M

$5.6 M

$4.2 M

$5.1 M

$2.8 M $7.0 M

$6.6 M

$3.6 M $1.4 M

FY07 Facility Fees

FY08

FY09 Powell Bill

FY10 General Fund 13

PUBLIC UTILITIES

•Flat operating expenses •12 % position vacancies •Extended time horizon for Capital Improvement Program 14

qu W ay in Va st on rin Sa a le Ra m le ig W Ga h ilm rn in er Ch gto ar n lo tt M C e or ar ris y* vi lle Fa A * y e pe t x K tev ni ill gh e td H Ash ale ol e ly vi S ll G pri e re ng en s Ro sbo le ro sv i D lle* W ur ak ha e m Fo W rest Ch en ap del el l Ca Hi rr ll b Ze oro bu lo n

Fu

AVERAGE ANNUAL C U S T O M E R C O S T S for MUNICIPAL SERVICES

$2,500

$2,000

$1,500

$1,000

$500

$0

*FY09 data; FY10 data not available

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POTENTIAL EXPOSURES • Unknown future sales tax revenues • Impact of employee reductions on service delivery • Reduced Capital Improvement Program • FY 10 fund balance requirements • FY 11 decline in property tax growth • North Carolina legislative actions 16

TOTAL BUDGET REVENUE SUMMARY $696.2 M

Water & Sewer Charges 18% Sales Tax 10%

Property Tax 26%

Debt & Fund Balance Reserve 7% Intergovernmental (less grants) 6%

Interest, Fees & Misc 32%

Federal & State Grants 1%

(Net of Interfund Transfers)

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TOTAL BUDGET EXPENDITURE SUMMARY $696.2 M Leisure Svcs 9% Information Technology 2% General Government & External Agencies 4%

Public Safety 22%

Public Utilities 12% Public Wks & Transit 7%

Financial Mgmt 2% Comm Dev 5% Capital Imprvmts 3%

Solid Waste 4% Capital Debt Service 30%

(Net of Interfund Transfers)

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NEXT

STEPS

• Public Hearing on June 2nd • Council Work Sessions in June • Adopt FY10 Budget by July 1st

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