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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

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PROPERTY TAX
REVENUE

$180.5 M $182.3 M

$151.3 M
$144.0 M

14.2 % 5.1 % 19.3 % 1.0 %


Increase Increase Increase* Increase

FY07 FY08 FY09* FY10


Actual Actual Projected Budgeted
*Revaluation Year
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SALES TAX
REVENUE

$70.3 M $70.8 M
$67.2 M $67.2 M

9.2 % 4.7 % 4.4 % 5.2 %


Increase Increase Decrease Increase

FY07 FY08 FY09 FY10


Actual Actual Projected Budgeted
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ALL GENERAL FUND
REVENUES

$383 M $384 M
$344 M
$316 M

11.5 % 8.8 % 11.5 % 0.2 %


Increase Increase Increase Increase

FY07 FY08 FY09 FY10


Actual Actual Projected Budgeted

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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
City Attorney

Public Affairs/

2
Print Shop

2
Personnel

1
Finance

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Public Works

5
Planning
15

Inspections
4

Solid Waste
5

Comm Services
POSITION

Police
ELIMINATIONS

ECC
7

Convention Center
27

Parks and Rec


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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
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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

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

$5.5 M
$5.4 M
$5.9 M
$5.6 M
$4.9 M
$4.2 M
$2.8 M

$6.6 M $7.0 M $3.6 M


$5.1 M
$1.4 M

FY07 FY08 FY09 FY10


Facility Fees Powell Bill General Fund

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PUBLIC
UTILITIES

•Flat operating expenses


•12 % position vacancies
•Extended time horizon for
Capital Improvement
Program

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Fu
qu
W ay

$500
$1,000
$1,500
$2,000
$2,500

$0
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

*FY09 data; FY10 data not available


sv
i
D lle*
W ur
ak ha
e m
Fo
W rest
Ch en
AVERAGE ANNUAL

ap del
el l
Ca Hi
C U S T O M E R C O S T S for
MUNICIPAL SERVICES

rr ll
b
Ze oro
bu
lo
n
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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

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TOTAL BUDGET
REVENUE
SUMMARY
$696.2 M Water & Sewer
Charges
18%

Sales Tax
Property Tax 10%
26%

Debt & Fund


Balance Reserve
7%

Intergovernmental
(less grants)
6%

Interest, Fees & Federal & State


Misc Grants
32% 1%

(Net of Interfund Transfers)


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TOTAL BUDGET
EXPENDITURE
SUMMARY
$696.2 M
Public Safety
Leisure Svcs 22%
9%
Information
Technology
2% Public Utilities
General 12%
Government &
External Agencies
4% Public Wks &
Transit
Financial Mgmt 7%
2% Solid Waste
4%
Comm Dev
5% Capital Debt
Capital Imprvmts
Service
3%
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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