CLC Part 2

Town of Hadleyville Budget Briefing Books

TOWN OF HADLEYVILLE DEPARTMENT OF FINANCE

1245 LINCOLN BOULEVARD HADLEYVILLE, AZ 85001

BUDGET BRIEFING BOOKS

HADLEYVILLE

Town of Hadleyville Budget Briefing Books

Summary

The following budget lays out the beginning steps to creating a future budget that will not operate in

deficit while still offering some essential services to the residents of Hadleyville. It is the town’s mission

to provide services which offer the quality of life in Hadleyville that makes people want to live and raise

their children here. We are entering into three major capital construction projects that are essential to

improving the quality of life in Hadleyville. This year represents an opportunity for the Town of

Hadleyville to finalize these capital construction projects and make any final modifications to the

financing and timeline expected for these projects.

Major Factors Impacting the 2011 Budget

Economic Climate

The Town’s budget and overall financial plans are directly linked to the state of the regional and national

economies. Economic forecasters expect our Town’s economic forecast to improve slightly over the next

three years, as well as, generate other industry and revenue into the future with the right planning now.

We believe the investment in a Senior Center, Elementary School, and Water Treatment Plant will help

with the future economic improvement by providing quality services for businesses and residents in

Hadleyville.

General Town Revenue

Hadleyville has seen a decrease in general revenue categories due to families moving out of the area with

the closing of a major employer. Although, revenues are down, important fee based services are still

producing significant revenue for the Town. By improving facilities for youth, offering adult and senior

programs at the new elementary school, and building a senior center, we are estimating some potential

revenue growth opportunities for families.

Industry/Employment

We know that families cannot enjoy recreational programming for fees if the Town does not retain a

major employer. We also know the importance a major industry employer can have on the local economy

and we are actively engaged in discussion with several large companies about relocating to Hadleyville.

We anticipate that through discussion and demonstration of the value Hadleyville can bring to an

employer that within three to five years we will have a new major employer in the Town.

Continued efforts to attract new business will serve as our primary strategy for increasing revenues. In

addition, recommendations made by the Finance Department will ideally help to rectify the long-term

issues created by deficit spending.

Town of Hadleyville Budget Briefing Books

Overall Budget Information

Town Staffing

Several positions have been restructured within the Town to adapt to the needs and skills necessary for

the Town of Hadleyville to be successful. We have grown our staffing levels over the last several years

and anticipate more growth if the budget allows in the coming years.

Policing

We have added the use of speed camera/photo radar in our Town primarily as a safety precaution, but we

have seen a surprising source of revenue from this policing effort. We very much would love to see this

revenue source decline for the Town; however, in the meantime we are making sure our residents are

aware of this effort.

Maintaining Infrastructure/Capital Projects

Maintaining and enhancing the Town’s infrastructure is critical to the Town’s future. Given the Town’s

current financial commitments and the overall state of the economy we understand the difficult decisions

we face related to maintaining our planned efforts for the Water Treatment Plant, new Elementary School,

and Senior Center.

We have asked a team of experts to take a look at the Town of Hadleyville’s current and past budgets as

well as future projections to determine if the plans we have put in place are feasible in the same timeline

expected given the goal of reducing our deficit spending.

Many Town of Hadleyville staff contributed to preparing the budget. The budget process is truly one

project that involves all Town departments. The many people working together on its production

exemplify the values of teamwork, craftsmanship, and public service that guide Town staff in all of our

work throughout the year.

Financial Management Policies

Statement of Purpose

The financial integrity of the Town of Hadleyville is of utmost importance. To discuss, write, and adopt a

set of financial policies is a key element to maintaining this integrity. These financial management

policies are designed to ensure the fiscal stability of the Town of Hadleyville and to guide the

development and administration of the annual operating and capital budgets, as well as the debt program.

Written, adopted financial policies have many benefits, such as assisting the Mayor and Council and City

Manager in the financial management of the Town, saving time and energy when discussing financial

matters, promoting public confidence, and providing continuity over time as the mayor and Council and

staff members change. While these policies will be amended periodically, they will provide the

foundation and framework for many of the issues and decisions facing the Town. They will promote wise

and prudent financial management, provide the foundation for adequate funding of services desired by the

public, and help make the Town more financially stable, efficient, and effective.

Town of Hadleyville Budget Briefing Books

Objectives

The following are some objectives which should be considered when analyzing the budget documents and

make recommendations:

Basis for Budgeting

Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles. Accordingly,

all governmental fund budgets are presented on the modified accrual basis of accounting. Under this

method of accounting, revenue and other governmental fund resources are recognized in the accounting

period in which they become susceptible to accrual – this is, when they become both “measureable and

available” to finance current operating expenditures for the fiscal period. Federal grant funds follow the

required federal accounting requirements for expenditure and reimbursement of funds to the Town.

Capital Improvement Projects

All capital improvement projects must demonstrate the importance of the Town priorities, go through a

workgroup process to explore the benefits of the project, and be approved by the Town Council.

Projects may also be approved, but upon additional review and consideration, timelines and costs may be

adjusted to reflect the Town’s best interests.

Basic Services, Parks & Facilities

These services include operation and maintenance, open space and recreation facilities, neighborhood and

Town-wide parks, greenways, trails, right-of-way islands and landscaping including street trees,

playgrounds, non-reservation amenities and other similar public facilities, maintenance operations

facilities, as well as overall department administrative activities. These services primarily serve to

support individual and small-group recreation activities.

1. Assist the Mayor and Council and Town management by providing accurate and timely

information on financial conditions pertinent to the Town operations.

2. Provide sound financial principles with which to guide the important decisions of the mayor and

Council and management, which have significant fiscal impact.

3. Set forth operational principles that minimize the cost of government and financial risk, to the

extent consistent with services desired by the public.

4. Enhance the policy-making ability of the Mayor and Council by providing accurate information

on program costs.

5. Ensure the legal use of all Town funds through a sound financial system and strong internal

controls.

6. Employ revenue policies that diversify revenue sources, distribute the costs of municipal services

fairly, and provide adequate funds to operate desired programs.

Town of Hadleyville Budget Briefing Books

No cost recovery is associated with the following services, which are provided to the community from

Town Revenue:

Community Benefit – Core Programs

These services include core or basic recreation programs and activities and events and are available for a

fee and include:

Large Group Park Use – Party/Picnic/Gatherings

Youth Recreation & Classes

Adult Recreation & Classes

Senior Recreation & Classes

Development and Review of Programs and Other Revenue

The Town of Hadleyville is asking a team of experts to review additional programming revenue

opportunities for fee services.

Debt Management

Debt management will provide for the protection of bond rating, the maintenance of adequate debt

service reserves, compliance with debt covenant provisions and appropriate disclosure to investors,

underwriters and rating agencies

All debt issuance shall comply with Federal, State, and Town charter requirements and adhere to

federal arbitrage regulations.

The Town shall maintain an ongoing performance monitoring system of various outstanding bond

indebtedness issues and utilize this monitoring system as a performance criterion for the

administration of the Town’s outstanding indebtedness.

Parks

Skate Park

Hiking

Playground

Picnic areas

Trails

Bike paths

Dog Park

Outdoor courts

Play areas

Revenue 07 Actual 08 Actual 09 Actual 10 Actual 11 Projected 12 Projected 13 Projected

General Sales Tax (1.4 Percent) 27,500,000 26,614,075 23,800,000 20,450,000 18,599,840 16,128,880 15,713,360

Water Use Fees 5,500,000 5,250,000 4,825,000 4,000,000 4,250,000 4,000,000 4,000,000

Federal Funds

Community Development Block Grant 2,160,850 2,600,000 2,613,000 3,110,500 3,450,700 3,989,300 4,120,110

Water Use Grant 500,000 500,000 500,000 750,000 750,000 900,000 900,000

Parks & Recreation User Fees

Swimming Pool 133,000 130,000 125,000 125,000 115,000 120,000 120,000

Youth Programs 525,000 500,000 475,000 450,000 425,000 400,000 375,000

Adult Programs 900,000 600,000 615,000 591,000 550,000 525,000 450,000

Park Use Fees 100,000 90,000 80,000 75,000 50,000 50,000 50,000

Senior Center 150,000 150,000 150,000 125,000 100,000 100,000 100,000

Property Taxes

Sewer 6,500,000 6,500,000 6,000,000 5,900,000 5,750,000 5,600,000 5,500,000

Garbage 1,900,000 1,900,000 1,800,000 1,750,000 1,350,000 1,350,000 1,350,000

Police

Speed Camera - 125,000 250,000 250,000 225,000 200,000 200,000

Patrol 500,000 500,000 310,000 550,000 400,000 450,000 500,000

Parking Enforcement 112,000 110,000 110,000 125,000 100,000 100,000 100,000

Liscense & Permits 350,000 219,800 177,500 102,890 100,000 90,000 80,000

General Fines 110,000 165,580 117,910 147,880 150,000 140,000 130,000

General Collections from Other

Revenue Departments 12,500,000 8,000,000 6,000,000 5,000,000 3,500,000 3,100,000 2,800,000

Total 59,440,850 53,954,455 47,948,410 43,502,270 39,865,540 37,243,180 36,488,470

Town of Hadleyville

June, 2010

FY 2007 - 2013

Total Revenues by Funding Source

Town of Hadleyville Budget Briefing Books

Town of Hadleyville Budget Briefing Books

$59,440,850

$53,954,455

$47,948,410

$43,502,270

$39,865,540

$37,243,180 $36,488,470

30000000

35000000

40000000

45000000

50000000

55000000

60000000

65000000

70000000

75000000

80000000

FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13

Total Revenues And Expenditures

FY 2007 - 2013

Total Revenue

07 Actual 08 Actual 09 Actual 10 Actual Budget 11 Adopted Budget 12 Projected 13 Projected

Central Administration/Personnel 1,169,410 1,169,410 1,169,500 1,180,500 1,180,500 1,180,500 1,180,000

Transportation 12,500,000 13,000,000 13,650,000 14,890,110 14,890,110 14,890,110 14,890,110

Office of the Inspector General 313,000 313,000 313,000 320,000 325,000 325,000 325,000

Office of the Mayor/Town Council 800,000 810,000 820,000 830,000 760,000 755,000 755,000

Office of Budget and Finance 258,980 300,000 310,000 308,000 258,900 250,000 250,000

Water and Sewerage 3,560,000 3,560,000 3,308,000 3,308,000 2,305,500 2,305,500 2,200,000

Economic Security 2,986,660 3,050,610 3,199,510 3,407,000 3,407,000 3,500,000 3,500,000

Bus and Fleet Services 660,500 750,000 800,000 810,000 835,000 844,000 921,000

Electrical and Gas Utility 4,340,440 5,100,000 5,600,000 7,500,000 7,500,000 7,130,350 7,880,670

Parks and Recreation 980,170 1,100,000 1,100,000 1,350,000 1,400,000 1,400,000 1,400,000

Public Health 455,000 500,000 680,000 750,000 750,000 750,000 750,000

Emergency Management 1,351,880 1,500,000 2,400,000 2,400,000 2,400,000 3,000,000 3,300,000

Public Safety (Police, Fire, EMT) 22,000,000 23,000,000 22,000,000 22,000,000 21,600,000 21,600,000 21,600,000

Community Development 1,678,920 1,678,920 1,678,920 1,890,000 2,000,000 2,000,000 2,100,000

Public Housing 1,850,650 2,100,000 2,150,000 2,200,000 2,300,000 2,400,000 2,500,000

Commerce 751,600 800,000.00 800,000.00 900,000.00 954,680.00 981,270.00 981,270.00

50,206,630.00 52,983,610.00 54,180,510.00 57,873,110.00 56,431,510.00 56,749,960.00 57,771,780.00

Hadleyville Selected General Operating Budget (All Departments)

Town of Hadleyville Budget Briefing Books

Water Sewage Department 10 Actual Budget 11 Adopted Budget

Water Department Operating Budget

Personnel 350,000.00 350,000.00

Benefits/ERE 98,000.00 98,000.00

Overtime 50,000.00 50,000.00

Operating 250,000.00 250,000.00

Capital Outlay 1,500,000.00 750,000.00

Travel 10,000.00 7,500.00

Professional & Outside Services 450,000.00 200,000.00

Contracted Services for Maintenance 200,000.00 200,000.00

Contracted Services for Equipment Replacement 250,000.00 200,000.00

Vehicle - Department Water 600,000.00 600,000.00

Maintenance 150,000.00 150,000.00

Fuel 300,000.00 300,000.00

Repair 150,000.00 150,000.00

City Fee for City Operations 3,250,000.00 3,025,000.00

3,308,000.00 2,305,500.00

Revenue

Water Use Fees 4,500,000.00 4,250,000.00 $19.79 plus $7.15 per 1000 cubic feet used for every two (2) months of each

year with a minimum bill of $19.79 bi-monthly

Sewer/Reclamation 6,000,000.00 5,750,000.00 32.00 plus $8.70 per 1000 cubic feet bi-monthly based on the amount of

water billed in the winter months of December & January with minimum

monthly bill of $32.00 bi-monthly

Water Use Grant 750,000.00 750,000.00

Garbage 1,750,000.00 1,350,000.00

13,000,000.00 12,100,000.00

Capital Improvement Project Revenue - 9,794,500.00

Town of Hadleyville Budget Briefing Books

Economic Security Department 10 Actual Budget 11 Adopted Budget

Economic Security Department Operating Budget

Personnel 400,000.00 400,000.00

Benefits/ERE 112,000.00 112,000.00

Overtime 20,000.00 20,000.00

Operating 100,000.00 100,000.00

Capital Outlay - -

Travel 15,000.00 15,000.00

Professional & Outside Services 10,000.00 10,000.00

CDBG Grant Awards 2,750,000.00 2,750,000.00

3,407,000.00 3,407,000.00

Revenue

Community Development Block Grant 3,000,000.00 3,000,000.00

Town of Hadleyville Budget Briefing Books

Capital Water Treatment Project Year 1 Year 2 Year 3 Year 4

Water Treatment Project

Personnel 350,000.00 375,000.00 500,000.00 750,000.00

ERE/Benfits 98,000.00 105,000.00 140,000.00 210,000.00

Professional & Outside Service 1,500,000.00 6,000,000.00 5,625,600.00 2,280,000.00

Project General Contractor 350,000.00 1,000,000.00 1,000,000.00 550,000.00

Excavation 1,000,000.00 500,000.00

Concrete Build 2,500,000.00 1,000,000.00

Plumbing 1,000,000.00 1,500,000.00 980,000.00

Electrical 150,000.00 1,000,000.00 2,125,600.00 750,000.00

Capital Outlay 150,000.00 350,000.00 350,000.00 150,000.00

2,098,000.00 6,830,000.00 6,615,600.00 3,390,000.00 18,933,600.00

Town of Hadleyville Budget Briefing Books