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City of Yuma's 2019-2020 Annual Budget

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City of Yuma's 2019-2020 Annual Budget City of Yuma Arizona Prepared and Presented By: John (Jay) Simonton 2019-2020 Interim City Administrator Richard W. Files Annual City Attorney Budget Lynda L. Bushong City Clerk James F. Coil, Judge PRESENTED TO: Municipal Court Kathleen Fernandez Chief Information Officer City Council Steve Irr, Chief Fire Department Douglas J. Nicholls, Mayor Gary Knight, Deputy Mayor Jeffrey A. Kramer Leslie McClendon Director of Engineering Jacob Miller Laurie L. Lineberry Mike Shelton Director of Community Development Edward C. Thomas Lisa Marlin Karen Watts Director of Financial Services Jeremiah (Jeremy) McCall Director of Utilities About the Cover Joel Olea Director of Public Works A Yuma citizen embarked on a cross country bicycle ride in 2018. Along the way he was amazed how Susan Smith, Chief communities across this great land displayed the Police Department most iconic symbol in the world, the flag of the United States of America. The vision was planted Monica Welch and through generous donations from the Director of Human Resources community by individuals and organizations, the City of Yuma now continues its deep patriotic values for the world to see. This new American flag was Deborah Wendt dedicated on July 4, 2019 and can be seen for miles Director of Parks and Recreation when entering the city from all directions. Picture by Rick Powers City of Yuma Annual Budget Fiscal Year 2019-2020 T O USE DOCUMENT This budget is divided into five sections: Overview, Fund Information, Department Information, Capital Spending and Debt Management, and the Appendix. Throughout the document, the City of Yuma is referenced as the “City.” The Overview contains the City Administrator’s budget message, which discusses the major changes in this year’s budget. It also includes budget highlights, the City’s mission, and organization chart. A flowchart depicting the budget process for both the department budgets and the Capital Improvement Program is shown. Financial policies are included in this section as well as a brief overview of the City’s revenues and funds. The Fund Information section is focused on the different funds the City utilizes. Fund summaries show the activity in each fund to include, beginning balance, revenues, expenditures/expenses, transfers, and ending balance. This summary is followed by a schedule of revenues for the respective fund and an expenditure summary showing what departments utilize that fund. Department Information provides each department’s budget message. The messages include functions of the department, goals for next year, accomplishments, and staffing level. It also displays department expenditures in two views. One table gives an overall picture of the department listed by division. The other table(s) breaks a department out by fund and then displays the information by the following categories: personal services, operating and maintenance, debt service, and capital outlay. The Capital Spending and Debt Management section covers the Capital Improvement Program budget and a discussion on how the City uses various financing tools to fund these projects. It explains the CIP process, provides information on different funding sources, lists the capital improvement projects, and summarizes the City’s outstanding debt. The Appendix contains a Glossary and six schedules. Schedule 1 lists revenue information by fund. Schedule 2 lists the department’s expenditures within each fund. These worksheets display 2017-2018 actual expenditures, 2018-2019 adjusted budget, 2018-2019 estimates, and the request for 2019-2020. Schedule 3 shows the Outside Agency listing. Every year the City provides support to various organizations within the city. This page displays their current year funding and the proposed funding for 2019-2020. Schedule 4 displays the supplemental or new positions included in the budget. Schedule 5 is the city’s staffing level and lists all the full time positions within the organization. Schedule 6 contains the City’s Salary Schedule. Schedule 7 is the City’s Budget Resolution for 2020 while Schedule 8 provides the 2019 Maximum Tax Levy Worksheet. Finally, a Glossary is provided. City of YUMA 2019-2020 Annual Budget Table of Contents OVERVIEW DEPARTMENT INFORMATION City Administrator’s Message 1 Continuing Strategic Issues 4 Office of the Mayor and Council 41 Revenues 5 Yuma Municipal Court 43 Financial Policies 6 City Administration 46 Service Delivery 8 City Attorney’s Office 52 Funds 9 Information Technology Services Dept. 56 Organization Chart 11 Finance Department 60 Budget Process 12 Human Resources Department 64 City Profile 13 Department of Community Development 66 Public Works Department 70 Utilities Department 73 Engineering Department 80 FUND INFORMATION Parks & Recreation Department 83 Police Department 91 General Fund 15 Fire Department 98 Community Investment Trust 18 Special Revenue Funds CAPITAL SPENDING & DEBT MANAGEMENT Highway User Revenue Fund 19 Local Transportation Assistance Fund 21 Capital Improvement Program 105 City Road Tax Fund 22 Capital Improvement Project Summary 108 Public Safety Tax Fund 23 Capital Improvement Projects by Fund 109 Two Percent Tax Fund 24 Capital Improvement Projects 112 Mall Maintenance Fund 25 Debt Management 116 Grant Funds 26 Table of Outstanding Debt 118 Debt Service Funds 27 Capital Projects Fund 28 Enterprise Funds APPENDIX Water Funds 30 Wastewater Funds 33 Schedule 1 – Revenues 121 Yuma Regional Communications Schedule 2 – Expenditures by System Fund 36 Fund/Department 126 Solid Waste Fund 37 Schedule 3 – Outside Agency Summary 141 Desert Hills Golf Course Fund 38 Schedule 4 – Supplemental Listing 142 Internal Service Funds Schedule 5 – Authorized Staffing Level 143 Equipment Replacement Fund 39 Schedule 6 – Salary Schedule 159 Equipment Maintenance Fund 40 Schedule 7 – Levy Limit Worksheet 160 Insurance Reserve Fund 40 Schedule 8 – Council Actions 161 Workers Compensation Fund 40 Glossary 165 ® G O V E R N M E NT FINA N C E O FF IC E R S A S S O C IAT IO N D is t ing u ished B u dg e t P res en ta tion A w a rd PRESENTED TO City of Yuma Arizona For the Fiscal Year Beginning July 1, 2018 Executive Director The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Yuma Arizona for its annual budget for the fiscal year beginning July 1, 2018. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. Overview Overview City Administrator’s Message 1 Continuing Strategic Issues 4 Revenues 5 Financial Policies 6 Service Delivery 8 Funds 9 Organization Chart 11 Budget Process 12 City Profile 13 CITY ADMINISTRATION One City Plaza Yuma, AZ 85364 928-373-5011 (phone) 928-373-5012 (fax) Mayor and City Council City of Yuma, Arizona RE: Budget Message for Fiscal Year 2019-2020 In accordance with the Yuma City Charter, I am transmitting the City Administrator’s budget for Fiscal Year 2019-20. This document has been filed with the City Clerk’s office as required and finalizes the annual review process by the City Council. The total budget for FY 2019-20 comes to $224.7 million, consisting of an operating budget of $182.8 million, up 1.71% from last year, and a capital improvement project (CIP) budget of $41.9 million, which is an increase of 3.16% from FY 2018-19. 200 Capital Projects Millions 150 Capital Outlay 100 Debt Materials and 50 Supplies Personal 0 Services 2018 Actual 2019 Budget 2019 Estimate 2020 Request 2017-2018 2018-2019 2018-2019 2019-2020 ACTUAL BUDGET ESTIMATE REQUEST Change PERSONAL SERVICES $ 76,533,363 $ 84,897,054 $ 80,618,740 $ 88,119,390 3.80% MATERIALS AND SUPPLIES 43,373,453 60,617,711 48,862,958 62,805,367 3.61% DEBT 25,137,558 25,063,706 25,063,704 25,364,360 1.20% CAPITAL OUTLAY 4,884,054 8,977,554 4,901,562 6,497,779 -27.62% TOTAL OPERATIONAL 149,928,428 179,556,024 159,446,964 182,786,895 1.80% CAPITAL PROJECTS 14,805,148 40,624,817 27,784,149 41,909,592 3.16% TOTAL BUDGET $ 164,733,576 $ 220,180,841 $ 187,231,113 $ 224,696,487 2.05% 1 Highlights of the FY2020 Budget Personnel Costs The most notable difference in the 2020 budget is the inclusion of a fundamental pay scale change for public safety officers and firefighters. These employees will now enjoy an annual step plan, replacing the pay range system in use since 2001. These step increases will cause personnel costs to increase more quickly in the future with hopes to mitigate the loss of trained, experienced employees to the metro Phoenix area. All remaining employees continue with the same pay range plan, but a labor market survey conducted during FY 2019 will be applied for the 2020 fiscal year. To make the pay increases more affordable, the survey results will be applied over the next two fiscal years. The City incurred much smaller increases in retirement rates for the new fiscal year, reflecting the improved performance of the retirement systems’ investment portfolios. We will continue to monitor the public safety retirement system for any legislative changes that could mitigate costs and to work to avoid any such changes that will expand the system and increase its burden on the City’s taxpayers. The budget again includes additional monies to handle the minimum wage increase but still does not have funding allocated to alleviate any of the compression caused by the minimum wage increase.
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