Fountain Hills FY2012 Budget Overview and Strategic Solutions
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This report presents the adopted annual budget for the Town of Fountain Hills for FY2012, totaling $38.3 million. It highlights significant issues such as the local economy's reliance on sales tax and legislative challenges following a population decline of 8.2% since 2005. Proposed solutions focus on sustainable revenue increases, expenditure reductions, and preserving service levels. The report emphasizes transparency through public engagement and updated budget communications, detailing the successful coordination of the Executive Budget Committee with community involvement.
Fountain Hills FY2012 Budget Overview and Strategic Solutions
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Presentation Transcript
GFOAZ Conference Public & Budget Session Prepared by: Julie A. Ghetti, MPA, CPA August 12, 2011
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
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
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
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
Available Tools • Increase revenues • Decrease expenditures August 12, 2011
Increase Revenues August 12, 2011
Decrease Expenditures August 12, 2011
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
$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
JANUARY 2011 Balanced Budget $12.6M MARCH 2011 Budget Gap $513K $12.1M August 12, 2011
Proposal to Increase Telecom Tax August 12, 2011
15 YEAR CHART Assumes no increase in revenues - Assumes new revenue and no increase in level of service - August 12, 2011
FY2011/12 MISSTEPS • No central public information office to disseminate information • New laws affecting fee schedule • Lack of public involvement August 12, 2011
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
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
Questions? August 12, 2011
