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CITY OF DALLAS
March 2, 2012 The Honorable Mayor and Members of the City Council Responses to Budget and Bond Program Briefings Attached are responses to questions asked by the City Council regarding the preliminary outlook of the FY 2012-13 general fund budget and the potential November 2012 general obligation bond program.
c: Thomas P~ Perkins. City Attorney Craig Kinton, City Auditor C. Victor Lander, Administrative Judge Rosa Rios. Interim City Secretary A.C. Gonzalez, First Assistant City Manager Ryan S. Evans, Assistant City Manager Jill A. Jordan. P.E .. Assistant City Manager Forest Turner. Assistant City Manager Joey Zapata. Assistant City Manager leanne Chipperfield, Chief Financial Officer Jack Ireland. Director. Office of Financial Services
"Dallas - Together. we do it better!"
City Council Budget and Bond Program Questions
1. How much was saved from
agreement? During FY 2010-11 Confer agreement.
and FY 2011-12, a combined
total of about $26.2m was saved from the Meet and
How much is being added back to the budget for Meet and Confer for the third year, FY 201213?
$28.7m is being added to the FY 2012-13 budget in order to fund the following and Confer agreement: Eliminate remaining Education Incentive Retention incentive 3 Mandatory Pay - $5.5m bonus for recently hired officers - $0.3m pay in-lieu of comp time - $3.3m City Leave days - $3.4m
3% cost of living adjustment Add 2 holidays - $1.8m Full-year-funding for overtime
Reinstate wellness program - $l.Om
for Step Pay for uniform
in the FY 2012-13 Preliminary tax and sales tax revenue it is anticipated
Outlook? increase by
and Confer agreement
$27.2m above the base year before Step Pay is restored. triggers will not be met; therefore,
that the revenue
the Step Pay cost has not been added to the budget for FY 2012-13.
How much is included
in the preliminary
for street striping
and sign age? outlook.
$1.8m has been added for additional
and sign age in the FY 2012-13 preliminary
The table below shows the amounts previously FY 2007-08 Signs Markings Totals $1,462,424 $1,165,844 $2,628,268
budgeted. FY 2009-10 $848,929 $437,827 $1,286,756 FY 2010-11 $806,981 $764,212 $1,571,193 FY 2011-12 $793,431 $727,923 $1,521,354
FY 2008-09 $1,799,216 $1,558,149 $3,357,365
How much has been saved through City's cost each year since executing
privatization the contract
of the Dallas Zoo, and what has been the including the expected cost for FY 2012-13?
The City's stipend A comparison approximately
payment to Dallas Zoo Management period.
(DZM) is listed in the chart below for each year. assumes that expenses and revenues the City stipend to DZM will only
of the City's cost in FY 2008-09 to the stipend for each year shows that the City has saved
$10Am during the four-year
over the four-year
have not changed
increase based on CPI. City Net Operating FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 planned Total $10,383,696 Cost $14,395,924 $10,800,000 $10,800,000 $11,800,000 $13,800,000 $3,595,924 $3,595,924 $2,595,924 $595,924 City Stipend to DZM Variance Savings
What is the cost to the City as fuel cost increases each 1 cent? the budget for fuel considers the cost that will be paid over the 12-month unleaded, diesel, bio-dlesel, fiscal year for The City uses
various grades including approximately
and CNG. For each 1 cent change in the blended
average cost that the City pays for fuel, the impact to the City's budget is about $60,000. 6 million gallons of full per year.
How has sales tax revenue change for FY 2012-13?
year and anticipated
The table below shows the budget and actual for last year (FY 2010-11) and the budget and estimate for this year (FY 2011-12). The FY 2011-12 budget for sales tax revenue was developed when only 8 months of actual revenue had been received in FY 2010-11. FY 2010-11 budget FY 2010-11 actual FY 2011-12 budget FY 2011-12 estimate $204.8m $215.9m $215.5m $216.7m
For FY 2012-13, the preliminary possible decline information
assumes a range of possible growth from the FY 2011-12 budget
of 1.6% ($3.5m increase) or amounts. As additional
of 0.7% ($1.5m
becomes available the forecast for FY 2012-13 will be updated.
Are we taking advantage Street Services staff
funds for street striping? with Dallas County regarding possible partnership District and on a match
is in communication identifying
City staff is currently
spent in each Commissioner's
will then meet with each Commissioner
what resources they have to partner
How has the City's debt service cost increased over time? debt service fund for the last 7
The table shows the principal and interest cost for the general obligation years and the budget for FY 2011-12. Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 Budget Principal Interest Total
$ $ $ $ $ $ $ $
104,365,000 121,745,000 118,175,000 134,134,125 146,402,696 196,820,000 151,507,827 154,254,750
$ $ $ $ $ $ $
40,830,838 66,779,970 69,334,786 85,219,102 97,599,094 96,575,398 89,044,091
$ $ $ $ $ $ $ $
145,195,838 188,524,970 187,509,786 219,353,227 244,001,790 282,863,469 248,083,224 243,298,841 *
*The FY 2009-10 cost included a $27.4m one-time for the Convention this one-time payment,
to call the Certificates
Center hotel land with proceeds from the sale of the hotel revenue bonds. the FY 2009-10 cost would have been $255.5m.
10. How has the City's outstanding debt changed over time?
Both the table and graph below show the general obligation debt outstanding each of the last 7 years and projected for September 30, 2012. Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 Projected Outstanding Debt
as of September
$ $ $ $ $ $
1,327,253,000 1,423,817,000 1,668,943,000 1,898,228,000 2,000,870,000 1,938,125,000
$ 1,798,332,000 $ 1,644,077,000
0 0 0 0
r.; ..... '" '5
$1,300 05 06 07 08
11. Provide the history of the City's ad valorem tax rate split between the general fund and the
debt service fund and compare Dallas' tax rate with other cities. This table shows the City's total fiscal years. Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 General Fund 54.83 54.45 54.48 51.96 52.30 49.18 53.24 53.79 ¢ ¢ ¢ Debt Service 17.14 19.72 18.44 22.83 22.49 25.61 26.46 25.91 ¢ ¢ ¢ ¢ Total Tax Rate 71.97 74.17 72.92 74.79 74.79 74.79 79.70 79.70 ¢ ¢ ¢ property tax rate, split into general fund and debt service, for eight
¢ ¢ ¢ ¢
¢ ¢ ¢
The table below compares the property size for the same time period. on a comparison
tax rate in Dallas to that of four other Texas cities of comparable was briefed materials are posted at: BudgetComparisons-
In December 2010, the Budget, Finance & Audit Committee
of these five major cities in Texas. The prior briefing briefings/briefings1210/BFA
http://www.dallascityhall.com/committee FiveLargestCities- TX 121310. pdf. The property other cities. exemptions,
tax rate is just one of many variables that must be considered For example, and tax rate. a resident's property tax bill exemption is a calculation In Dallas, 20% of residential there is no homestead homestead
when comparing of the property
Dallas to value,
value is exempt cities.
from tax while in The tax rate consideration
both Austin and San Antonio alone does not indicate
so the full value is taxed. In addition,
the tax bill for residents
of the comparison
should be given to other revenues available to each city such as transportation utility transfers which some of the peer cities benefit from while Dallas does not. Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 Austin 44.30 44.30 41.26 40.34 40.12 42.09 45.71 48.23 Dallas Fort Worth ¢ ¢ ¢ ¢ ¢ 86.50 86.50 86.00 85.50 85.50 85.50 85.50 85.50 Houston 65.00 64.75 64.50 64.38 63.88 63.88 63.88 63.88 San Antonio
user fees and electric
¢ ¢ ¢ ¢ ¢ ¢
71.97 74.17 72.92 74.79 74.79 74.79 79.70 79.70
¢ ¢ ¢ ¢ ¢
¢ ¢ ¢ ¢
57.85 57.85 57.85 57.23 56.71 56.57 56.57 56.57
¢ ¢ ¢
¢ ¢ ¢
is the financial
for the 2012 bond program outlook"
based on the three
tax base value:
"best case", "average
The table shows the three scenarios with five years of change (growth base value. Following the change in the tax base is a range indicating Each range will be refined of a November 2012 bond program.
or decline) in the property information
capacity for the size becomes months.
available and prior to a bond program recommendation Fiscal Year 2013 2014 2015 2016 2017 Capacity Best Case 2.30% 1.40% 1.80% 2.10% 2.50% $620m to $720m Average 0.10% 0.60% 1.10% 1.60% 2.00% $450m to $550m
being made later in the upcoming Recession -2.10% -0.20% 0.50% 1.00% 1.50% $340m to $440m
13. When will there be and how much capacity will there be for a bond program after 2012? Based on current assumptions, financial including commercial 2012 capacity growth exists for a $450m to $550m November FY 2016-17. or decline A future of the tax base, the property bonds, the future Due to the many 2012 bond tax rate, size of the variables,
program to be implemented refunding commercial under forecasting opportunities
FY 2012-13 through
bond program beyond that time
will be based on many factors projects, the timing consideration of retiring for
for existing debt, the use of commercial etc.
paper based on the award schedule of beyond the one currently
paper with general obligation has not been calculated.
At this point, capacity for a bond program
a bond program beyond the November
2012 program would be unreliable.
on the O&M
that are being placed in-service. The preliminary outlook includes $4.5m for O&M for full-year funding for capital projects placed in-
service during FY 2011-12 and partial-year 13. This is a preliminary are further developed reviewed and considered
funding for capital projects Attachment
placed in-service during FY 2012being
number that will be refined through and as costs are analyzed. for increased O&M funding.
the budget process as in-service schedules A is a list of the capital projects
15. Provide outlook. See Attachment information
on the expense
in the FY 2012-13
B for detailed available,
information. as additional
and will change as additional
analysis is completed,
and prior to the City Manager's
to the City Council on August 13.
Capital Projects with Potential Operating and Maintenance City Performance Hall Cost Increases Potential Cost Increase for FY 2012-13 $227,036 $345,750 $19,597 $14,698 $18,750 $19,597 $24,669 $4,913 added square footage $13,199 $4,745 $3,559 $4,484 $7,102 $696 $6,664 $13,567 $7,715 $9,103 $5,030 $20,187 $4,745 $9,469 $7,971 $16,790 and security lighting $8,271 $1,919 $7,971 $7,971 and site improvements $4,745 $6,606 $15,056 $8,449 $3,636 additional square footage, fitness center $16,521 $7,971 $7,971 $7,971 - includes signature bridge over Mockingbird $42,876 $7,211 $7,971 $11,993 $14,204 no new square footage and equipment (medium)
Elm Fork Soccer Complex IH-20 Gateway Park Joppa/South Central Gateway Park Lower Chain of Wetlands Moore Gateway Park Santa Fe Trestle Trail Trinity Forest Trail Phase" Beckley Saner Recreation Center - renovations, Brownwood - pavilion replacement expansion Casa Linda Park - pavilion replacement Cedar Run Park - playground Cherrywood Chalk Hill Trail Corridor -Iand acquisition only - (4 miles) Park - security lighting and new loop trail (.25 miles) Churchill Recreation Center - renovations College Park - 3 security lights at parking lot, new playground College Park Pavilion - new Coombs Creek Trail - trail development Cotillion Park - pavilion replacement Cummings Danieldale - pavilion replacement Elmwood Parkway - trails and walkways Everglade Park - expand playground Five Mile Creek - trail development Fox Hollow Park - playground Friendship Park - playground Fruitdale - playground replacement replacement Fretz Recreation Center - renovations, replacement Recreation Center - renovations
Hamilton Park - open air gym renovation Hillcrest Park - trail improvements Holcomb Park - playground
Harry Stone Recreation Center - renovations - Valley View to Hillcrest Park replacement
Hulcy Park - parking and drainage improvements Jaycee Zaragoza Recreation Center - renovations, JJ Lemon - playground replacement John C Phelps - playground JP Hawn - playground replacement replacement
Katy Trail Phase III, IV, V, VI - trail development Kiest - playground (southeast)
Kidd Springs - new fitness room, interior renovation, expansion of parking area, connecting walkways Kiest park - trail, pergolia, fountain Kiestwood Trail Phase I
Capital Projects with Potential Operating Kleberg Rylie Recreation Center Expansion Kleberg Trail Corridor -land acquisition Lake Cliff - baseball Lake Highlands Trail from Femdale to Lake Highlands North Park (1.5 miles) Lawnview Playground Moore - playground - new replacement (75 to Preston) design and renovation Main Street Garden - fountain, dog park Nash Davis Recreation Center Expansion Northaven Trail - trail development Oak Cliff Cultural Center - land acquisition, Park Signage (2006) Pleasant Oaks Recreation Center - renovations Preston Ridge Trail Phase II - pedestrian Reverchon Ridgewood Park Historic Restoration, bridge Randall Park Athletic Fields and Concession Robert E Lee Roque Court Historic Restorations Belcher Recreation Center - renovations only - (4 miles) and Maintenance Cost Increases Potential Cost Increase for FY 2012-13 $12,933 $9,469 $15,284 $10,653 $12,151 $110,000 $7,971 $23,395 $28,435 $250,000 $16,128 $3,087 $6,783 $17,561 $28,907 $3,500 $6,286 $7,715 $13,050 $18,971 $7,971 $34,122 $8,449 $3,304 replacement soccer fields, parking, lighting $7,971 $5,019 $60,000 $27,110 $4,745 $45,365 new multi use court, paving and fencing $13,000 $17,374 $5,030 $6,215 $4,745 $24,186 $11,671 $9,788 replacement (Big Thicket No.2) $1,495 $1,849 $8,449 CUlture Arts and Recreanon $1,909,486 Point - dog park expansion - White Rock Lake to Deep Ellum
Oak Cliff Founders - trail, parking lot and landscaping
Royal Park - new pavilion and parking lot improvements Samuell Grand Recreation Center - renovations Samuell Grand Tennis Center Sand Springs - playground replacement Santa Fe Trail - trail development Scotland Park - playground Seaton park - loop trail Sugarberry Timberglen - playground Tietze Park - trail/walkways/fumishings Park - site improvements, - trail development Trinity Strand replacement
Umphress Pavilion - replacement Wagging Tail Dog Park Walford Park - playground, Webb Chapel Westmoreland - pavilion - pavilion Walnut Hill Recreation Center - renovations West Lawther Overlook White Rock Lake - East Lawther Traii replacement White Rock Lake - Mockingbird White Rock Lake - security lights White Rock Lake Park (Nautical Area) - playground Willie B. Johnson Recreation Center - renovations Woodland Springs Park - expand playground and equipment
Capital Projects with Potential Operating Woodall Rogers Tunnel Akard - Commerce to Elm Commerce - Akard to Ervay Greenville Ave - Belmont to Ross Main Street - Market to Griffin Bishop Ave - Neely to Colorado Bexar Street Corridor Buckner Blvd. (Phase II) Main Street - Harwood to Good Latimer Yale Blvd - SMU to Greenville Ave Yale Blvd to Mockingbird Margaret Hunt Hill Bridge Levee Drainage System- Pavaho Sump Light Rail Station Akard - Ross to Woodall Rodgers
Cost Increases Potential Cost Increase for FY 2012-13 $438,480 $3,300 $4,560 $15,000 $5,000 $30,000 $1,800 $1,200 $2,500 $7,583 $1,575 $3,300 $233,000 $50,000 Economic vibrancy $797,298 $47,751 $22,261 Education $70,012 $409,217 $813,987 Public Safety $1,223,204 $500,000 Contingency GRAND TOTAL: $500,000 $4,500,000
Fretz Park Branch Library Polk-Wisdom Library
Fire Station #27 (Douglas Ave. at NW Hwy.) New Fire Station - Keeneland & Walton Walker - Fire Station 50 Contingency
FY 2012-13 General Fund - Preliminary 3 Mandatory Outlook City 3,354,340 13,373,365 Incentive Incentive Pay Bonus 5,479,392 1,821,463 344,297 3,042,873 279,048 956,000 3,354,340 13,373,365 5,479,392 1,821,463 344,297 3,042,873 279,048 956,000 - February 1, 2012 Briefing
Lesser Impact Description Greater Impact
Meet & Confer - eliminate Leave. Meet & Confer - 3% COLA Meet & Confer - Education Meet & Confer - Retention
Meet & Confer - Add 2 holidays Meet & Confer - FYF O'I pay in-lieu of camp - Police Meet & Confer - FYF O'I pay in-lieu of camp - Fire Meet & Confer - reinstate Fire Well ness
Police and Fire Meet and Confer
Fire - O'I savings result of hiring 200 in FY12 Paramedic Training (60-120 trainees) Police savings COPS grant ends (request extension) O&M for capital projects - FS #27 and #50 Internet Crimes Against Children - grant ends
(5,800,000) 7,507,028 (4,587,252) 2,965,440 1,223,204 103,200
(5,800,000) 4,501,614 (4,587,252) 2,224,080 1,223,204 103,200
Public Safety Adjustments
Fuel (range from flat with current Electricity year budget cost to increase blended average cost of $3.93 per gallon) - FYFfor TDSP charges put in during FY12
Electricity and Fuel
Civilian Pay - eliminate 4 Mandatory City Leave Days put in place on 10/1/10
Civilian Pay - restore pay reductions AT&T Performing Arts Center
Zoo Contract increase Recreation Centers - restore funding during portions Marcus Annex Library materials - increase funding EECBGgrant ends CDBG-R grant ends for 14 centers closed of FY12 and partial closures of Fruitdale and
1,820,000 1,000,000 190,620 48,642
1,820,000 1,000,000 190,620 48,642
Quality of life contracts and other commitments
Employee Health Benefits - Range 5% to 8% expense increase. Share cost between City and employee/retiree.
Master Lease - FY12 budget included $16.9m for technology FYF needed in FY13 for payment associated with ML program Master Lease - add S25.0m in FY13 for technology equipment; Commercia! required outstanding Partial year debt cost required and 1,121,137 in FY13 1,154,685 1,154,685
Paper - debt cost associated with CP program ($170m to $3S0m) of City facilities 395,874 1,500,000 1,500,000 - FYFfor those open in FY12 and Fire) 3,276,796 1,800,000 3,276,796 1,800,000 1,500,000 (486,126)
in FY13; interest cost depends on amount of CP
Major Maintenance Building Maintenance
O&M for capital projects
partial year for those to open in FY13 (excluding Street striping and sign age
Equipment, Maintenance, etc. Total Possible Expenditure Adjustments
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